- 4Q22 EPS of $2.10
- Full Year 2022 EPS of $27.07
- Full Year 2022 Net Income and EBITDA of $1,063.9 million and $1,526.2 million, respectively
- Year-over-year decrease in 4Q22 consolidated operating income
driven primarily by lower contribution from China service
- Repurchased approximately 1.5 million shares and 5.0 million
shares in 4Q22 and full year 2022, respectively
HONOLULU ,
Feb. 21, 2023
/PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE:
MATX), a leading U.S. carrier in the Pacific, today reported net
income of $78.0 million, or
$2.10 per diluted share, for the
quarter ended December 31, 2022. Net income for the
quarter ended December 31, 2021 was $394.5 million, or $9.39 per diluted share. Consolidated
revenue for the fourth quarter 2022 was $801.6 million compared with $1,267.0 million for the fourth quarter
2021.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson's Ocean Transportation and Logistics business segments
performed well in a difficult business environment, and we ended
the year in a solid financial position with low leverage and over
half of our new vessel program funded while returning $445 million in cash to shareholders through
dividends and share repurchases," said Chairman and Chief Executive
Officer Matt Cox. "For the
quarter within Ocean Transportation, our China service achieved lower year-over-year
volume and freight rates which contributed to the decline in our
consolidated operating income. As we mentioned on our
November earnings call, we expected the fourth quarter of 2022 and
first quarter of 2023 to be challenging in the Transpacific
tradelane as retailers' inventories adjust to consumer demand
levels and as ocean liners reduce vessel capacity to meet lower
demand levels. Currently in the Transpacific marketplace,
business conditions remain challenging as retailers continue to
right-size inventories amid weakening consumer demand, increasing
interest rates and economic uncertainty. As such, we expect
our CLX and CLX+ services in the first quarter and first half of
the year to reflect freight demand levels below normalized
conditions with lower year-over-year volumes and a lower rate
environment. Absent an economic 'hard landing' in the U.S.,
we expect improved trade dynamics in the second half of 2023 as the
Transpacific marketplace transitions to a more normalized level of
demand. Regardless of the economic environment, we operate
the two fastest and most reliable ocean services and, as a result,
we expect to continue to earn a significant rate premium to the
Shanghai Containerized Freight
Index."
Mr. Cox added, "In our domestic ocean tradelanes, we saw lower
year-over-year volumes in Hawaii,
Alaska and Guam compared to the year ago period.
The year-over-year decline in Hawaii volume was primarily due to lower
retail- and hospitality-related demand compared to elevated
pandemic levels in the year ago period. In Logistics,
operating income decreased year-over-year primarily due to a lower
contribution from supply chain management consistent with lower
demand in the Transpacific tradelane."
"We expect Matson's financial performance in the first quarter
of 2023 to be the weakest of the year as normal seasonality returns
to our domestic tradelanes and Logistics and our China service experiences freight demand
levels below normalized conditions," said Mr. Cox. "In the
near-term, we expect continued economic growth in Hawaii, Alaska and Guam to be supportive of freight demand.
On the capital allocation front, we will continue to be disciplined
in our approach. After funding our dividend, supporting our
operations with maintenance capital, and investing in organic and
inorganic growth opportunities while maintaining an investment
grade balance sheet, we remain committed to the return of excess
capital to shareholders."
Fourth Quarter 2022 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the fourth quarter 2022 was 13.0 percent lower
year-over-year. The decrease was primarily due to (i) lower
retail- and hospitality-related demand compared to elevated
pandemic levels in the year ago period and (ii) one less
week. During the quarter, the Company saw retail customers
continue to manage inventories to weaker consumer demand levels
despite continued improvement in the Hawaii economy supported by a low unemployment
rate and relatively strong tourist arrivals, including a modest
improvement in international tourist trends. In the
near-term, Matson expects economic growth in Hawaii supported by continued strength in
tourism and a low unemployment rate, but there are negative trends
as a result of higher inflation, higher interest rates and the end
of the pandemic-era stimulus helping personal income that creates
uncertainty in the economic growth trajectory.
In China, the Company's
container volume in the fourth quarter 2022 decreased
47.2 percent year-over-year. The decrease was primarily
due to (i) lower demand for the CLX and CLX+ services, (ii) the
discontinuation of the CCX service in the third quarter 2022 and
(iii) one less week. Matson continued to realize a
significant rate premium over the Shanghai Containerized Freight
Index ("SCFI") in the fourth quarter 2022 but achieved average
freight rates that were lower than in the year ago period.
Currently in the Transpacific marketplace, business conditions
remain challenging as retailers continue to right-size inventories
amid weakening consumer demand, increasing interest rates and
economic uncertainty. As such, the Company expects its CLX
and CLX+ services in the first quarter and first half of the year
to reflect freight demand levels below normalized conditions with
lower year-over-year volumes and a lower rate environment.
Absent an economic "hard landing" in the U.S., Matson expects
improved trade dynamics in the second half of 2023 as the
Transpacific marketplace transitions to a more normalized level of
demand. Regardless of the economic environment, Matson
operates the two fastest and most reliable ocean services and, as a
result, the Company expects to continue to earn a significant rate
premium to the SCFI.
In Guam, the Company's
container volume in the fourth quarter 2022 decreased
14.0 percent year-over-year primarily due to lower
retail-related demand. In the near-term, the Company expects
continued improvement in the Guam
economy with increasing tourism and a low unemployment rate, but
there are negative trends as a result of higher inflation, higher
interest rates and the end of the pandemic-era stimulus helping
personal income that creates uncertainty in the economic growth
trajectory.
In Alaska, the Company's
container volume for the fourth quarter 2022 decreased
7.7 percent year-over-year due to (i) lower northbound
volume primarily due to one less sailing and one less week and (ii)
lower southbound volume primarily due to lower domestic seafood
volume and one less week, partially offset by higher export seafood
volume from Alaska-Asia Express ("AAX"). In the near-term,
the Company expects the Alaska
economy to benefit from low unemployment and increased
energy-related exploration and production activity as a result of
elevated oil prices, but there are negative trends as a result of
higher inflation, higher interest rates and the end of the
pandemic-era stimulus helping personal income that creates
uncertainty in the economic growth trajectory.
The contribution in the fourth quarter 2022 from the Company's
SSAT joint venture investment was $1.0 million, or $20.3 million lower than the fourth quarter
2021. The decrease was primarily driven by lower other
terminal revenue, lower lift volume and higher operating costs.
Logistics: In the fourth quarter 2022, operating
income for the Company's Logistics segment was $12.8 million, or $2.0 million lower compared to the level
achieved in the fourth quarter 2021. The decrease was
primarily due to a lower contribution from supply chain management
consistent with lower demand in the Transpacific tradelane.
Results By
Segment
|
|
Ocean Transportation
— Three months ended December 31, 2022 compared with
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
633.0
|
|
$
|
1,025.9
|
|
$
|
(392.9)
|
|
(38.3)
|
%
|
Operating costs and
expenses
|
|
|
(553.2)
|
|
|
(565.2)
|
|
|
12.0
|
|
(2.1)
|
%
|
Operating
income
|
|
$
|
79.8
|
|
$
|
460.7
|
|
$
|
(380.9)
|
|
(82.7)
|
%
|
Operating income
margin
|
|
|
12.6
|
%
|
|
44.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
36,100
|
|
|
41,500
|
|
|
(5,400)
|
|
(13.0)
|
%
|
Hawaii
automobiles
|
|
|
10,800
|
|
|
10,600
|
|
|
200
|
|
1.9
|
%
|
Alaska
containers
|
|
|
17,900
|
|
|
19,400
|
|
|
(1,500)
|
|
(7.7)
|
%
|
China
containers
|
|
|
28,300
|
|
|
53,600
|
|
|
(25,300)
|
|
(47.2)
|
%
|
Guam
containers
|
|
|
4,900
|
|
|
5,700
|
|
|
(800)
|
|
(14.0)
|
%
|
Other containers
(2)
|
|
|
5,000
|
|
|
5,600
|
|
|
(600)
|
|
(10.7)
|
%
|
_____________________
|
(1)
|
Approximate volumes
included for the period are based on the voyage departure date, but
revenue and operating income are adjusted to reflect the percentage
of revenue and operating income earned during the reporting period
for voyages in transit at the end of each reporting
period.
|
(2)
|
Includes containers
from services in various islands in Micronesia and the South
Pacific, and Okinawa, Japan.
|
Ocean Transportation revenue decreased $392.9 million, or 38.3 percent, during
the three months ended December 31, 2022, compared with the
three months ended December 31, 2021. The decrease was
primarily due to lower volume and average freight rates in
China and lower volume in
Hawaii, partially offset by higher
fuel-related surcharge revenue.
On a year-over-year FEU basis, Hawaii container volume decreased
13.0 percent primarily due to lower retail- and
hospitality-related demand and one less week; Alaska volume decreased 7.7 percent due
to (i) lower northbound volume primarily due to one less sailing
and one less week and (ii) lower southbound volume primarily due to
lower domestic seafood volume and one less week, partially offset
by higher export seafood volume from AAX; China volume was 47.2 percent lower
primarily due to (a) lower demand for the CLX and CLX+ services,
(b) the discontinuation of the CCX service in the third quarter
2022 and (c) one less week; Guam volume was 14.0 percent lower
primarily due to lower retail-related demand; and Other containers
volume decreased 10.7 percent.
Ocean Transportation operating income decreased $380.9 million during the three months ended
December 31, 2022, compared with the three months ended
December 31, 2021. The decrease was primarily due to
lower volume and average freight rates in China and a lower contribution from SSAT,
partially offset by lower operating costs and expenses primarily
related to the discontinuation of the CCX service.
The Company's SSAT terminal joint venture investment contributed
$1.0 million during the three
months ended December 31, 2022, compared to a contribution of
$21.3 million during the three
months ended December 31, 2021. The decrease was
primarily driven by lower other terminal revenue, lower lift volume
and higher operating costs.
Ocean Transportation
— Year ended December 31, 2022 compared with
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
3,544.6
|
|
$
|
3,132.8
|
|
$
|
411.8
|
|
13.1
|
%
|
Operating costs and
expenses
|
|
|
(2,263.4)
|
|
|
(1,995.1)
|
|
|
(268.3)
|
|
13.4
|
%
|
Operating
income
|
|
$
|
1,281.2
|
|
$
|
1,137.7
|
|
$
|
143.5
|
|
12.6
|
%
|
Operating income
margin
|
|
|
36.1
|
%
|
|
36.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
148,500
|
|
|
157,600
|
|
|
(9,100)
|
|
(5.8)
|
%
|
Hawaii
automobiles
|
|
|
41,300
|
|
|
46,600
|
|
|
(5,300)
|
|
(11.4)
|
%
|
Alaska
containers
|
|
|
84,900
|
|
|
78,200
|
|
|
6,700
|
|
8.6
|
%
|
China
containers
|
|
|
163,100
|
|
|
184,800
|
|
|
(21,700)
|
|
(11.7)
|
%
|
Guam
containers
|
|
|
21,100
|
|
|
21,900
|
|
|
(800)
|
|
(3.7)
|
%
|
Other containers
(2)
|
|
|
22,500
|
|
|
20,200
|
|
|
2,300
|
|
11.4
|
%
|
_____________________
|
(1)
|
Approximate volumes
included for the period are based on the voyage departure date, but
revenue and operating income are adjusted to reflect the percentage
of revenue and operating income earned during the reporting period
for voyages in transit at the end of each reporting
period.
|
(2)
|
Includes containers
from services in various islands in Micronesia and the South
Pacific, and Okinawa, Japan.
|
Ocean Transportation revenue increased $411.8 million, or 13.1 percent, during
the year ended December 31, 2022, compared with the year ended
December 31, 2021. The increase was primarily due to
higher average freight rates in China, higher fuel-related surcharge revenue
and higher volume in Alaska,
partially offset by lower volume in China and Hawaii.
On a year-over-year FEU basis, Hawaii container volume decreased
5.8 percent primarily due to lower retail-related demand and
one less week; Alaska volume
increased 8.6 percent due to (i) higher export seafood volume
from AAX, (ii) higher northbound volume primarily due to higher
retail-related demand and volume related to a competitor's
dry-docking, partially offset by one less week and (iii) higher
southbound volume primarily due to higher domestic seafood volume;
China volume was 11.7 percent
lower primarily due to (a) lower demand for the CLX and CLX+
services and (b) one less week, partially offset by incremental
volume on the CCX service; Guam
volume decreased 3.7 percent primarily due to lower retail-related
volume; and Other containers volume increased
11.4 percent.
Ocean Transportation operating income increased $143.5 million during the year ended
December 31, 2022, compared with the year ended
December 31, 2021. The increase was primarily due to
higher freight rates in China and
a higher contribution from SSAT, partially offset by lower volume
in China, higher operating costs
and expenses (including fuel-related expenses) primarily due to the
CLX+ service and higher terminal handling costs.
The Company's SSAT terminal joint venture investment contributed
$83.1 million during the year
ended December 31, 2022, compared to a contribution of
$56.3 million during the year
ended December 31, 2021. The increase was primarily
driven by higher other terminal revenue.
Logistics — Three
months ended December 31, 2022 compared with
2021
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Logistics
revenue
|
|
$
|
168.6
|
|
$
|
241.1
|
|
$
|
(72.5)
|
|
(30.1)
|
%
|
Operating costs and
expenses
|
|
|
(155.8)
|
|
|
(226.3)
|
|
|
70.5
|
|
(31.2)
|
%
|
Operating
income
|
|
$
|
12.8
|
|
$
|
14.8
|
|
$
|
(2.0)
|
|
(13.5)
|
%
|
Operating income
margin
|
|
|
7.6
|
%
|
|
6.1
|
%
|
|
|
|
|
|
Logistics revenue decreased $72.5 million, or 30.1 percent, during
the three months ended December 31, 2022, compared with the
three months ended December 31, 2021. The decrease was
primarily due to lower transportation brokerage revenue.
Logistics operating income decreased $2.0 million, or 13.5 percent, during
the three months ended December 31, 2022, compared with the
three months ended December 31, 2021. The decrease was
primarily due to a lower contribution from supply chain management
consistent with lower demand in the Transpacific tradelane.
Logistics — Year
ended December 31, 2022 compared with 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Logistics
revenue
|
|
$
|
798.4
|
|
$
|
792.5
|
|
$
|
5.9
|
|
0.7
|
%
|
Operating costs and
expenses
|
|
|
(726.0)
|
|
|
(742.7)
|
|
|
16.7
|
|
(2.2)
|
%
|
Operating
income
|
|
$
|
72.4
|
|
$
|
49.8
|
|
$
|
22.6
|
|
45.4
|
%
|
Operating income
margin
|
|
|
9.1
|
%
|
|
6.3
|
%
|
|
|
|
|
|
Logistics revenue increased $5.9 million, or 0.7 percent, during
the year ended December 31, 2022, compared with the year ended
December 31, 2021. The increase was primarily due to
higher revenue in freight forwarding, supply chain management and
warehousing, partially offset by lower transportation brokerage
revenue.
Logistics operating income increased $22.6 million, or 45.4 percent, during
the year ended December 31, 2022, compared with the year ended
December 31, 2021. The increase was primarily due to
higher contributions from transportation brokerage and freight
forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $32.6 million from $282.4 million at December 31, 2021 to $249.8 million at
December 31, 2022, which excludes $518.2 million in cash and interest deposited in
the Capital Construction Fund. Matson generated net cash from
operating activities of $1,271.9 million during the year ended
December 31, 2022, compared to $984.1 million during the year ended
December 31, 2021. Capital expenditures totaled
$209.3 million for the year
ended December 31, 2022, compared with $325.3 million for the year ended
December 31, 2021. Total debt decreased by $111.5 million during the year to
$517.5 million as of
December 31, 2022, of which $440.6 million was classified as long-term
debt. As of December 31, 2022 Matson had available
borrowings under its revolving credit facility of $642.1 million.
During the fourth quarter and full year 2022, Matson repurchased
approximately 1.5 million shares and 5.0 million shares for a
total cost of $101.9 million and
$397.0 million, respectively.
As of December 31, 2022, the Company had approximately
1.5 million shares remaining in its share repurchase
program.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.31 per share
payable on March 2, 2023 to all shareholders of record as of
the close of business on February 9, 2023.
Teleconference and Webcast
A conference call is scheduled on February 21, 2023 at
4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer,
and Joel Wine, Executive Vice
President and Chief Financial Officer, will discuss Matson's fourth
quarter and full year results.
Date of Conference
Call:
|
Tuesday,
February 21, 2023
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 11:30 a.m. HT
|
The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors.
Participants may register for the conference call at:
https://register.vevent.com/register/BIfcad646d67d34b738acd1592c030b6bc
Registered participants will receive the conference call dial-in
number and a unique PIN code to access the live event. While
not required, it is recommended you join 10 minutes prior to the
event starting time. A replay of the conference call will be
available approximately two hours after the event by accessing the
webcast link at www.matson.com, under
Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of
ocean transportation and logistics services. Matson provides
a vital lifeline of ocean freight transportation services to the
domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in
Micronesia. Matson also operates premium, expedited services
from China to Long Beach, California, provides service to
Okinawa, Japan and various islands
in the South Pacific, and operates an international export service
from Dutch Harbor to Asia.
The Company's fleet of owned and chartered vessels includes
containerships, combination container and roll-on/roll-off ships
and custom-designed barges. Matson Logistics, established in
1987, extends the geographic reach of Matson's transportation
network throughout North America
and Asia. Its integrated, asset-light logistics services
include rail intermodal, highway brokerage, warehousing, freight
consolidation, supply chain management, and freight forwarding to
Alaska. Additional information about the Company is available
at www.matson.com.
GAAP to Non-GAAP Reconciliation
This press release, the Form 8-K and the information to be
discussed in the conference call include non-GAAP measures.
While Matson reports financial results in accordance with U.S.
generally accepted accounting principles ("GAAP"), the Company also
considers other non-GAAP measures to evaluate performance, make
day-to-day operating decisions, help investors understand our
ability to incur and service debt and to make capital expenditures,
and to understand period-over-period operating results separate and
apart from items that may, or could, have a disproportional
positive or negative impact on results in any particular
period. These non-GAAP measures include, but are not limited
to, Earnings Before Interest, Income Taxes, Depreciation and
Amortization ("EBITDA").
Forward-Looking Statements
Statements in this news release that are not historical facts
are "forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995, including without
limitation those statements regarding performance and financial
results, volume and freight levels, retailers' inventories,
consumer demand levels, vessel capacity, vessel transit times,
interest rates, inflation, economic uncertainty, trade dynamics,
business conditions in the Transpacific marketplace, the rate
environment, Matson's rate premium to the Shanghai Containerized
Freight Index, timing of return to normalized seasonality, economic
growth and drivers in Hawaii,
Alaska and Guam, tourism levels, unemployment rates, lift
volume and other terminal revenue from SSAT, port congestion on the
U.S. West Coast, timing and amount of capital expenditures, costs
and timing of liquified natural gas installations on certain
vessels, capital allocation plans, refleeting initiatives,
energy-related exploration and product activity, oil prices, modal
shifts and rail congestion, repayment of certain Title XI debt,
contributions to the Capital Construction Fund, and Sand Island
terminal upgrades. These statements involve a number of risks
and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statement, including but not limited to risks and uncertainties
relating to repeal, substantial amendment or waiver of the Jones
Act or its application, or our failure to maintain our status as a
United States citizen under the
Jones Act; changes in macroeconomic conditions, geopolitical
developments, or governmental policies, including from the COVID-19
pandemic; our ability to offer a differentiated service in
China for which customers are
willing to pay a significant premium; new or increased competition
or improvements in competitors' service levels; our relationship
with customers, agents, vendors and partners and changes in related
agreements; fuel prices, our ability to collect fuel-related
surcharges and/or the cost or limited availability of required
fuels; evolving stakeholder expectations related to environmental,
social and governance matters; timely or successful completion of
fleet upgrade initiatives; the Company's vessel construction
agreements with Philly Shipyard; the occurrence of poor weather,
natural disasters, maritime accidents, spill events and other
physical and operating risks, including those arising from climate
change; transitional and other risks arising from climate change;
the magnitude and timing of the impact of public health crises,
including COVID-19; significant operating agreements and leases
that may not be replaced on favorable terms; any unanticipated
dry-dock or repair expenses; joint venture relationships;
conducting business in foreign shipping markets, including
the imposition of tariffs or a change in international trade
policies; any delays or cost overruns related to the modernization
of terminals; war, terrorist attacks or other acts of violence;
consummating and integrating acquisitions; relations with our
unions; satisfactory negotiation and renewal of expired collective
bargaining agreements without significant disruption to Matson's
operations; loss of key personnel or failure to adequately manage
human capital; the use of our information technology and
communication systems and cybersecurity attacks; changes in our
credit profile and our future financial performance; our ability to
obtain future debt financings; continuation of the Title XI and CCF
programs; costs to comply with and liability related to numerous
safety, environmental, and other laws and regulations; and
disputes, legal and other proceedings and government inquiries or
investigations. These forward-looking statements are not
guarantees of future performance. This release should be read
in conjunction with our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022 and
our other filings with the SEC through the date of this release,
which identify important factors that could affect the
forward-looking statements in this release. We do not
undertake any obligation to update our forward-looking
statements.
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions, except per
share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
633.0
|
|
$
|
1,025.9
|
|
$
|
3,544.6
|
|
$
|
3,132.8
|
Logistics
|
|
|
168.6
|
|
|
241.1
|
|
|
798.4
|
|
|
792.5
|
Total Operating
Revenue
|
|
|
801.6
|
|
|
1,267.0
|
|
|
4,343.0
|
|
|
3,925.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(641.0)
|
|
|
(748.0)
|
|
|
(2,811.5)
|
|
|
(2,557.6)
|
Income from
SSAT
|
|
|
1.0
|
|
|
21.3
|
|
|
83.1
|
|
|
56.3
|
Selling, general and
administrative
|
|
|
(69.0)
|
|
|
(64.8)
|
|
|
(261.0)
|
|
|
(236.5)
|
Total Costs and
Expenses
|
|
|
(709.0)
|
|
|
(791.5)
|
|
|
(2,989.4)
|
|
|
(2,737.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
92.6
|
|
|
475.5
|
|
|
1,353.6
|
|
|
1,187.5
|
Interest
income
|
|
|
6.9
|
|
|
—
|
|
|
8.2
|
|
|
—
|
Interest
expense
|
|
|
(3.7)
|
|
|
(4.7)
|
|
|
(18.0)
|
|
|
(22.6)
|
Other income
(expense), net
|
|
|
2.2
|
|
|
1.7
|
|
|
8.5
|
|
|
6.4
|
Income before
Taxes
|
|
|
98.0
|
|
|
472.5
|
|
|
1,352.3
|
|
|
1,171.3
|
Income
taxes
|
|
|
(20.0)
|
|
|
(78.0)
|
|
|
(288.4)
|
|
|
(243.9)
|
Net Income
|
|
$
|
78.0
|
|
$
|
394.5
|
|
$
|
1,063.9
|
|
$
|
927.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
2.11
|
|
$
|
9.51
|
|
$
|
27.28
|
|
$
|
21.67
|
Diluted Earnings Per
Share
|
|
$
|
2.10
|
|
$
|
9.39
|
|
$
|
27.07
|
|
$
|
21.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36.9
|
|
|
41.5
|
|
|
39.0
|
|
|
42.8
|
Diluted
|
|
|
37.2
|
|
|
42.0
|
|
|
39.3
|
|
|
43.2
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
249.8
|
|
$
|
282.4
|
Other current
assets
|
|
|
509.8
|
|
|
422.1
|
Total current
assets
|
|
|
759.6
|
|
|
704.5
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
81.2
|
|
|
58.7
|
Property and
equipment, net
|
|
|
1,962.5
|
|
|
1,878.3
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
174.9
|
|
|
181.1
|
Capital Construction
Fund
|
|
|
518.2
|
|
|
—
|
Other long-term
assets
|
|
|
505.8
|
|
|
542.7
|
Total long-term
assets
|
|
|
3,570.4
|
|
|
2,988.6
|
Total
assets
|
|
$
|
4,330.0
|
|
$
|
3,693.1
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
76.9
|
|
$
|
65.0
|
Other current
liabilities
|
|
|
504.7
|
|
|
547.4
|
Total current
liabilities
|
|
|
581.6
|
|
|
612.4
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
427.7
|
|
|
549.7
|
Deferred income
taxes
|
|
|
646.5
|
|
|
425.2
|
Other long-term
liabilities
|
|
|
377.3
|
|
|
438.4
|
Total long-term
liabilities
|
|
|
1,451.5
|
|
|
1,413.3
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,296.9
|
|
|
1,667.4
|
Total liabilities and
shareholders' equity
|
|
$
|
4,330.0
|
|
$
|
3,693.1
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(In
millions)
|
|
2022
|
|
2021
|
|
2020
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,063.9
|
|
$
|
927.4
|
|
$
|
193.1
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
141.3
|
|
|
135.9
|
|
|
114.9
|
|
Amortization of
operating lease right of use assets
|
|
|
153.0
|
|
|
103.3
|
|
|
74.8
|
|
Deferred income
taxes
|
|
|
90.2
|
|
|
33.2
|
|
|
52.1
|
|
(Gain) Loss on
disposal of property and equipment
|
|
|
(1.5)
|
|
|
(0.8)
|
|
|
2.8
|
|
Share-based
compensation expense
|
|
|
18.3
|
|
|
19.3
|
|
|
18.8
|
|
Income from
SSAT
|
|
|
(83.1)
|
|
|
(56.3)
|
|
|
(26.3)
|
|
Distributions from
SSAT
|
|
|
47.3
|
|
|
46.9
|
|
|
55.4
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
74.6
|
|
|
(90.3)
|
|
|
(48.0)
|
|
Deferred dry-docking
payments
|
|
|
(25.7)
|
|
|
(36.3)
|
|
|
(16.8)
|
|
Deferred dry-docking
amortization
|
|
|
24.9
|
|
|
24.3
|
|
|
25.1
|
|
Prepaid expenses and
other assets
|
|
|
(45.2)
|
|
|
(48.1)
|
|
|
21.9
|
|
Accounts payable,
accruals and other liabilities
|
|
|
(31.7)
|
|
|
39.6
|
|
|
44.8
|
|
Operating lease
liabilities
|
|
|
(154.1)
|
|
|
(99.7)
|
|
|
(75.9)
|
|
Other long-term
liabilities
|
|
|
(0.3)
|
|
|
(14.3)
|
|
|
(6.9)
|
|
Net cash provided by
operating activities
|
|
|
1,271.9
|
|
|
984.1
|
|
|
429.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(62.4)
|
|
|
(14.9)
|
|
|
(87.8)
|
|
Other capital
expenditures
|
|
|
(146.9)
|
|
|
(310.4)
|
|
|
(104.5)
|
|
Proceeds from disposal
of property and equipment, and other
|
|
|
(1.8)
|
|
|
1.9
|
|
|
15.3
|
|
Cash and interest
deposits into Capital Construction Fund
|
|
|
(582.8)
|
|
|
(31.2)
|
|
|
(132.4)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
64.6
|
|
|
31.2
|
|
|
132.4
|
|
Net cash used in
investing activities
|
|
|
(729.3)
|
|
|
(323.4)
|
|
|
(177.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
—
|
|
|
—
|
|
|
325.5
|
|
Repayments of
debt
|
|
|
(111.5)
|
|
|
(59.3)
|
|
|
(216.5)
|
|
Proceeds from
revolving credit facility
|
|
|
—
|
|
|
304.3
|
|
|
648.0
|
|
Repayments of
revolving credit facility
|
|
|
—
|
|
|
(376.1)
|
|
|
(955.3)
|
|
Payment of financing
costs
|
|
|
—
|
|
|
(3.0)
|
|
|
(18.5)
|
|
Proceeds from issuance
of common stock
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Dividends
paid
|
|
|
(48.0)
|
|
|
(45.9)
|
|
|
(39.2)
|
|
Repurchase of Matson
common stock
|
|
|
(397.0)
|
|
|
(198.3)
|
|
|
—
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(20.1)
|
|
|
(14.4)
|
|
|
(5.6)
|
|
Net cash used in
financing activities
|
|
|
(576.6)
|
|
|
(392.7)
|
|
|
(261.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase
in Cash, Cash Equivalents and Restricted Cash
|
|
|
(34.0)
|
|
|
268.0
|
|
|
(8.7)
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Year
|
|
|
287.7
|
|
|
19.7
|
|
|
28.4
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Year
|
|
$
|
253.7
|
|
$
|
287.7
|
|
$
|
19.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents, and Restricted Cash, at End of the
Year:
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
249.8
|
|
$
|
282.4
|
|
$
|
14.4
|
|
Restricted
Cash
|
|
|
3.9
|
|
|
5.3
|
|
|
5.3
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
253.7
|
|
$
|
287.7
|
|
$
|
19.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
16.2
|
|
$
|
19.3
|
|
$
|
26.2
|
|
Income tax paid, net
of income tax refunds
|
|
$
|
215.2
|
|
$
|
241.6
|
|
$
|
(16.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
5.5
|
|
$
|
6.4
|
|
$
|
24.7
|
|
MATSON, INC.
AND SUBSIDIARIES
Net Income to
EBITDA Reconciliations
(Unaudited)
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
|
|
(In millions)
|
|
|
2022
|
|
2021
|
|
Change
|
|
Net Income
|
|
|
$
|
78.0
|
|
$
|
394.5
|
|
$
|
(316.5)
|
|
Subtract:
|
Interest
income
|
|
|
(6.9)
|
|
|
—
|
|
|
(6.9)
|
|
Add:
|
Interest
expense
|
|
|
3.7
|
|
|
4.7
|
|
|
(1.0)
|
|
Add:
|
Income taxes
|
|
|
20.0
|
|
|
78.0
|
|
|
(58.0)
|
|
Add:
|
Depreciation and
amortization
|
|
|
35.3
|
|
|
34.2
|
|
|
1.1
|
|
Add:
|
Dry-dock
amortization
|
|
|
6.3
|
|
|
6.3
|
|
|
—
|
|
EBITDA (1)
|
|
|
$
|
136.4
|
|
$
|
517.7
|
|
$
|
(381.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
Ended
|
|
|
|
|
December 31,
|
|
(In millions)
|
|
|
2022
|
|
2021
|
|
Change
|
|
Net Income
|
|
|
$
|
1,063.9
|
|
$
|
927.4
|
|
$
|
136.5
|
|
Subtract:
|
Interest
income
|
|
|
(8.2)
|
|
|
—
|
|
|
(8.2)
|
|
Add:
|
Interest
expense
|
|
|
18.0
|
|
|
22.6
|
|
|
(4.6)
|
|
Add:
|
Income taxes
|
|
|
288.4
|
|
|
243.9
|
|
|
44.5
|
|
Add:
|
Depreciation and
amortization
|
|
|
139.2
|
|
|
132.1
|
|
|
7.1
|
|
Add:
|
Dry-dock
amortization
|
|
|
24.9
|
|
|
24.3
|
|
|
0.6
|
|
EBITDA (1)
|
|
|
$
|
1,526.2
|
|
$
|
1,350.3
|
|
$
|
175.9
|
|
_____________________
|
(1)
|
EBITDA is defined as
earnings before interest, income taxes, depreciation and
amortization (including deferred dry-docking amortization).
EBITDA should not be considered as an alternative to net income (as
determined in accordance with GAAP), as an indicator of our
operating performance, or to cash flows from operating activities
(as determined in accordance with GAAP) as a measure of
liquidity. Our calculation of EBITDA may not be comparable to
EBITDA as calculated by other companies, nor is this calculation
identical to the EBITDA used by our lenders to determine financial
covenant compliance.
|
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SOURCE Matson, Inc.