- 1Q23 EPS of $0.94
- 1Q23 Net Income and EBITDA of $34.0
million and $81.7 million,
respectively
- Year-over-year decrease in 1Q23 consolidated operating income
driven primarily by lower contribution from China service
- Repurchased approximately 0.7 million shares in 1Q23
HONOLULU, May 4, 2023
/PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE:
MATX), a leading U.S. carrier in the Pacific, today reported net
income of $34.0 million, or
$0.94 per diluted share, for the
quarter ended March 31, 2023. Net income for the quarter
ended March 31, 2022 was $339.2 million, or $8.23 per diluted share. Consolidated
revenue for the first quarter 2023 was $704.8 million compared with $1,165.5 million for the first quarter
2022.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/2069450/MATSON_LOGO.jpg)
"Despite being down from the extraordinary pandemic driven
demand level over the last two years, Matson's Ocean Transportation
and Logistics business segments performed well in a challenging
business environment," said Chairman and Chief Executive Officer
Matt Cox. "Within Ocean
Transportation, our China service
generated lower year-over-year volume and freight rates, which were
the primary contributors to the year-over-year decline in our
consolidated operating income. During the first quarter,
retail customers continued to conservatively manage inventories
amid weakening consumer demand, increasing interest rates and
economic uncertainty. Currently in the Transpacific
marketplace, business conditions are mixed with general improvement
in tradelane capacity and some improvement in retailer inventories,
but we continue to see conservative management of inventories by
retail customers in light of economic uncertainty. As such,
we expect our CLX and CLX+ services in the second quarter to
reflect freight demand levels below normalized conditions with
lower year-over-year volumes and rates. Absent an economic
'hard landing' in the U.S., we continue to 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 expect to continue to earn a
significant rate premium to the Shanghai Containerized Freight
Index reflecting our fast and reliable ocean services and unmatched
destination services."
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 modest year-over-year decline in Hawaii volume was primarily due to lower
eastbound volume. The year-over-year volume declines in
Guam and Alaska were primarily driven by lower
retail-related demand and lower seafood volume, respectively.
In Logistics, operating income decreased year-over-year primarily
due to lower contributions from supply chain management and
transportation brokerage."
"We expect Matson's consolidated operating income in the second
quarter of 2023 to be higher than the first quarter. We
expect normal seasonality to return to our domestic tradelanes and
Logistics and our China service to
experience freight demand levels below normalized conditions," said
Mr. Cox. "In the near-term, we expect continued economic
growth in Alaska to be supportive
of improved freight demand and in Hawaii and Guam we expect muted freight demand, but
recognize the uncertainty in the macroeconomic environment.
We continued to repurchase shares during the first quarter, and we
remain committed to the return of excess capital to
shareholders. As such, we recently announced that our Board
approved an additional three million shares for our share
repurchase program."
First Quarter 2023 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the first quarter 2023 was 0.8 percent lower
year-over-year. The decrease was primarily due to lower
eastbound volume. 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 muted freight demand in Hawaii despite continued improvement in the
Hawaii economy supported by
strength in tourism and a low unemployment rate. There are
also negative trends as a result of higher inflation and higher
interest rates that create uncertainty in the economic growth
trajectory.
In China, the Company's
container volume in the first quarter 2023 decreased
35.4 percent year-over-year. The decrease was primarily
due to (i) CCX volume in the first quarter 2022 (CCX service was
discontinued in the third quarter 2022) and (ii) lower demand for
the CLX and CLX+ services. Matson continued to realize a
significant rate premium over the Shanghai Containerized Freight
Index ("SCFI") in the first quarter 2023 but achieved average
freight rates that were lower than in the year ago period.
Currently in the Transpacific marketplace, business conditions are
mixed with general improvement in tradelane capacity and retailer
inventories, but we continue to see retail customers conservatively
manage inventories in light of continued economic
uncertainty. As such, the Company expects its CLX and CLX+
services in the second quarter to reflect freight demand levels
below normalized conditions with lower year-over-year volumes and
rates. Absent an economic "hard landing" in the U.S., the
Company continues to 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, the Company expects to continue to earn a significant
rate premium to the SCFI reflecting our fast and reliable ocean
services and unmatched destination services.
In Guam, the Company's
container volume in the first quarter 2023 decreased
10.9 percent year-over-year primarily due to lower
retail-related demand. In the near-term, the Company expects
muted freight demand despite continued improvement in the
Guam economy with increasing
tourism and a low unemployment rate. There are also negative
trends as a result of higher inflation and higher interest rates
that create uncertainty in the economic growth trajectory.
In Alaska, the Company's
container volume for the first quarter 2023 decreased
4.8 percent year-over-year due to (i) lower export
seafood volume from the Alaska-Asia Express service ("AAX")
primarily due to three less sailings and (ii) lower southbound
volume primarily due to lower domestic seafood and household goods
volume, partially offset by higher northbound volume primarily due
to two additional sailings. 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 and higher interest rates that create uncertainty in the
economic growth trajectory.
The contribution in the first quarter 2023 from the Company's
SSAT joint venture investment was $(1.8) million, or
$35.8 million lower than the
first quarter 2022. The decrease was primarily driven by
lower other terminal revenue and lower lift volume.
Logistics: In the first quarter 2023, operating
income for the Company's Logistics segment was $10.9 million, or $5.5 million lower compared to the level
achieved in the first quarter 2022. The decrease was
primarily due to lower contributions from supply chain management,
consistent with lower demand in the Transpacific tradelane, and
transportation brokerage.
Results By
Segment
|
|
Ocean Transportation
— Three months ended March 31, 2023 compared with
2022
|
|
|
|
Three Months Ended
March 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
551.0
|
|
$
|
943.9
|
|
$
|
(392.9)
|
|
(41.6)
|
%
|
Operating costs and
expenses
|
|
|
(523.2)
|
|
|
(527.7)
|
|
|
4.5
|
|
(0.9)
|
%
|
Operating
income
|
|
$
|
27.8
|
|
$
|
416.2
|
|
$
|
(388.4)
|
|
(93.3)
|
%
|
Operating income
margin
|
|
|
5.0
|
%
|
|
44.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
35,200
|
|
|
35,500
|
|
|
(300)
|
|
(0.8)
|
%
|
Hawaii
automobiles
|
|
|
9,400
|
|
|
8,600
|
|
|
800
|
|
9.3
|
%
|
Alaska
containers
|
|
|
19,800
|
|
|
20,800
|
|
|
(1,000)
|
|
(4.8)
|
%
|
China
containers
|
|
|
30,100
|
|
|
46,600
|
|
|
(16,500)
|
|
(35.4)
|
%
|
Guam
containers
|
|
|
4,900
|
|
|
5,500
|
|
|
(600)
|
|
(10.9)
|
%
|
Other containers
(2)
|
|
|
4,100
|
|
|
5,300
|
|
|
(1,200)
|
|
(22.6)
|
%
|
|
|
|
|
|
|
(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 41.6 percent, during
the three months ended March 31, 2023, compared with the three
months ended March 31, 2022. The decrease was primarily
due to lower average freight rates and volume in China, partially offset by higher fuel-related
surcharge revenue.
On a year-over-year FEU basis, Hawaii container volume decreased
0.8 percent primarily due to lower eastbound volume;
Alaska volume decreased
4.8 percent due to (i) lower export seafood volume from the
AAX primarily due to three less sailings and (ii) lower southbound
volume primarily due to lower domestic seafood and household goods
volume, partially offset by higher northbound volume primarily due
to two additional sailings; China
volume was 35.4 percent lower primarily due to (a) CCX volume
in the first quarter 2022 (CCX service was discontinued in the
third quarter 2022) and (b) lower demand for the CLX and CLX+
services; Guam volume was
10.9 percent lower primarily due to lower retail-related
demand; and Other containers volume decreased
22.6 percent.
Ocean Transportation operating income decreased $388.4 million during the three months ended
March 31, 2023, compared with the three months ended
March 31, 2022. The decrease was primarily due to lower
freight rates and volume in China
and a lower contribution from SSAT, partially offset by lower
operating costs and expenses (including fuel-related expenses)
primarily related to the discontinuation of the CCX service.
The Company's SSAT terminal joint venture investment contributed
$(1.8) million during the three months ended March 31,
2023, compared to a contribution of $34.0 million during the three months ended
March 31, 2022. The decrease was primarily driven by
lower other terminal revenue and lower lift volume.
Logistics — Three
months ended March 31, 2023 compared with 2022
|
|
|
|
Three Months Ended
March 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
153.8
|
|
$
|
221.6
|
|
$
|
(67.8)
|
|
(30.6)
|
%
|
Operating costs and
expenses
|
|
|
(142.9)
|
|
|
(205.2)
|
|
|
62.3
|
|
(30.4)
|
%
|
Operating
income
|
|
$
|
10.9
|
|
$
|
16.4
|
|
$
|
(5.5)
|
|
(33.5)
|
%
|
Operating income
margin
|
|
|
7.1
|
%
|
|
7.4
|
%
|
|
|
|
|
|
Logistics revenue decreased $67.8 million, or 30.6 percent, during
the three months ended March 31, 2023, compared with the three
months ended March 31, 2022. The decrease was primarily
due to lower revenue in transportation brokerage and supply chain
management.
Logistics operating income decreased $5.5 million, or 33.5 percent, during
the three months ended March 31, 2023, compared with the three
months ended March 31, 2022. The decrease was primarily
due to lower contributions from supply chain management, consistent
with lower demand in the Transpacific tradelane, and transportation
brokerage.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $161.3 million from $249.8 million at December 31, 2022
to $88.5 million at March 31, 2023, which excludes
$623.7 million in cash and
interest deposited in the Capital Construction Fund. Matson
generated net cash from operating activities of $96.7 million during the three months ended
March 31, 2023, compared to
$273.9 million during the three
months ended March 31, 2022.
Capital expenditures totaled $35.9
million for the three months ended March 31, 2023, compared with $46.8 million for the three months ended
March 31, 2022. Total debt
decreased by $40.8 million during the
three months to $476.7 million as of
March 31, 2023, of which $430.4 million was classified as long-term
debt.1 As of March 31, 2023,
Matson had available borrowings under its revolving credit facility
of $642.1 million.
During the first quarter 2023, Matson repurchased approximately
0.7 million shares for a total cost of $42.1 million. As of the end of the
first quarter 2023, there were approximately 0.9 million
shares remaining in its share repurchase program. As
previously announced, Matson's Board of Directors approved adding
three million shares to the existing nine million share repurchase
program and extending the program to December 31, 2025. Matson's Board of
Directors also declared a cash dividend of $0.31 per share payable on June 1, 2023
to all shareholders of record as of the close of business on
May 11, 2023.
1 Total debt is presented before any reduction
for deferred loan fees as required by GAAP.
Teleconference and Webcast
A conference call is scheduled on May 4, 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 first
quarter results.
|
|
Date of Conference
Call:
|
Thursday, May 4,
2023
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 10:30 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/BIf4c1f30d251f4af5aad4bf7307788646
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 ports in Alaska 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, rate and freight demand levels; retailer
inventories; tradelane and vessel capacity; consumer demand levels;
vessel transit times; interest rates; inflation; economic
uncertainty; trade dynamics; business conditions in the
Transpacific marketplace; 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 profitability levels at SSAT; freight forwarding demand;
intermodal and highway brokerage demand and capacity; accessorial
fees; timing of liquified natural gas installations on certain
vessels; timing and amount of tax refunds; capital allocation
plans; refleeting initiatives; energy-related exploration and
product activity; and the timing, manner and volume of repurchases
of common shares pursuant to the repurchase program. 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 Annual Report on Form 10-K for the year
ended December 31, 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
|
|
|
March 31,
|
(In millions, except per
share amounts)
|
|
2023
|
|
2022
|
Operating
Revenue:
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
551.0
|
|
$
|
943.9
|
Logistics
|
|
|
153.8
|
|
|
221.6
|
Total Operating
Revenue
|
|
|
704.8
|
|
|
1,165.5
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
Operating
costs
|
|
|
(597.5)
|
|
|
(703.7)
|
(Loss) Income from
SSAT
|
|
|
(1.8)
|
|
|
34.0
|
Selling, general and
administrative
|
|
|
(66.8)
|
|
|
(63.2)
|
Total Costs and
Expenses
|
|
|
(666.1)
|
|
|
(732.9)
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
38.7
|
|
|
432.6
|
Interest
income
|
|
|
8.2
|
|
|
—
|
Interest
expense
|
|
|
(4.5)
|
|
|
(4.8)
|
Other income
(expense), net
|
|
|
1.8
|
|
|
2.0
|
Income before
Taxes
|
|
|
44.2
|
|
|
429.8
|
Income
taxes
|
|
|
(10.2)
|
|
|
(90.6)
|
Net Income
|
|
$
|
34.0
|
|
$
|
339.2
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
0.94
|
|
$
|
8.29
|
Diluted Earnings Per
Share
|
|
$
|
0.94
|
|
$
|
8.23
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
36.1
|
|
|
40.9
|
Diluted
|
|
|
36.3
|
|
|
41.2
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
March 31,
|
|
December 31,
|
(In millions)
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
88.5
|
|
$
|
249.8
|
Other current
assets
|
|
|
478.2
|
|
|
509.8
|
Total current
assets
|
|
|
566.7
|
|
|
759.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
81.5
|
|
|
81.2
|
Property and
equipment, net
|
|
|
1,967.1
|
|
|
1,962.5
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
188.1
|
|
|
174.9
|
Capital Construction
Fund
|
|
|
623.7
|
|
|
518.2
|
Other long-term
assets
|
|
|
472.4
|
|
|
505.8
|
Total long-term
assets
|
|
|
3,660.6
|
|
|
3,570.4
|
Total
assets
|
|
$
|
4,227.3
|
|
$
|
4,330.0
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
46.3
|
|
$
|
76.9
|
Other current
liabilities
|
|
|
489.5
|
|
|
504.7
|
Total current
liabilities
|
|
|
535.8
|
|
|
581.6
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
417.9
|
|
|
427.7
|
Deferred income
taxes
|
|
|
645.5
|
|
|
646.5
|
Other long-term
liabilities
|
|
|
357.8
|
|
|
377.3
|
Total long-term
liabilities
|
|
|
1,421.2
|
|
|
1,451.5
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,270.3
|
|
|
2,296.9
|
Total liabilities and
shareholders' equity
|
|
$
|
4,227.3
|
|
$
|
4,330.0
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
(In
millions)
|
|
2023
|
|
2022
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
34.0
|
|
$
|
339.2
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
35.8
|
|
|
35.6
|
|
Amortization of
operating lease right of use assets
|
|
|
39.6
|
|
|
36.2
|
|
Deferred income
taxes
|
|
|
(1.4)
|
|
|
6.6
|
|
Share-based
compensation expense
|
|
|
4.6
|
|
|
4.7
|
|
Loss (income) from
SSAT
|
|
|
1.8
|
|
|
(34.0)
|
|
Other
|
|
|
(0.1)
|
|
|
(0.2)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(14.5)
|
|
|
(27.7)
|
|
Deferred dry-docking
payments
|
|
|
(2.4)
|
|
|
(8.6)
|
|
Deferred dry-docking
amortization
|
|
|
6.2
|
|
|
6.7
|
|
Prepaid expenses and
other assets
|
|
|
45.7
|
|
|
(31.5)
|
|
Accounts payable,
accruals and other liabilities
|
|
|
(8.4)
|
|
|
(16.2)
|
|
Operating lease
liabilities
|
|
|
(39.4)
|
|
|
(35.4)
|
|
Other long-term
liabilities
|
|
|
(4.8)
|
|
|
(1.5)
|
|
Net cash provided by
operating activities
|
|
|
96.7
|
|
|
273.9
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(0.4)
|
|
|
(9.4)
|
|
Other capital
expenditures
|
|
|
(35.5)
|
|
|
(37.4)
|
|
Proceeds from disposal
of property and equipment
|
|
|
0.3
|
|
|
0.4
|
|
Payment for asset
acquisition
|
|
|
(12.4)
|
|
|
—
|
|
Cash deposits and
interest into the Capital Construction Fund
|
|
|
(105.5)
|
|
|
(10.7)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
—
|
|
|
10.7
|
|
Net cash used in
investing activities
|
|
|
(153.5)
|
|
|
(46.4)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(40.8)
|
|
|
(14.4)
|
|
Dividends
paid
|
|
|
(11.3)
|
|
|
(12.9)
|
|
Repurchase of Matson
common stock
|
|
|
(40.0)
|
|
|
(70.4)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(12.4)
|
|
|
(19.4)
|
|
Net cash used in
financing activities
|
|
|
(104.5)
|
|
|
(117.1)
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase
in Cash, Cash Equivalents and Restricted Cash
|
|
|
(161.3)
|
|
|
110.4
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Period
|
|
|
253.7
|
|
|
287.7
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Period
|
|
$
|
92.4
|
|
$
|
398.1
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash, End of the Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
88.5
|
|
$
|
392.8
|
|
Restricted
Cash
|
|
|
3.9
|
|
|
5.3
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
92.4
|
|
$
|
398.1
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest (including debt prepaid fees)
|
|
$
|
5.0
|
|
$
|
4.5
|
|
Income tax payments
(refunds), net
|
|
$
|
(30.3)
|
|
$
|
103.1
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
5.1
|
|
$
|
7.1
|
|
Non-cash payment for
asset acquisition
|
|
$
|
4.1
|
|
$
|
—
|
|
MATSON, INC.
AND SUBSIDIARIES
|
Net Income to
EBITDA Reconciliations
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
Last Twelve
|
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
|
Months
|
|
Net Income
|
|
|
$
|
34.0
|
|
$
|
339.2
|
|
$
|
(305.2)
|
|
$
|
758.7
|
|
Subtract:
|
Interest
income
|
|
|
(8.2)
|
|
|
—
|
|
|
(8.2)
|
|
|
(16.4)
|
|
Add:
|
Interest
expense
|
|
|
4.5
|
|
|
4.8
|
|
|
(0.3)
|
|
|
17.7
|
|
Add:
|
Income taxes
|
|
|
10.2
|
|
|
90.6
|
|
|
(80.4)
|
|
|
208.0
|
|
Add:
|
Depreciation and
amortization
|
|
|
35.0
|
|
|
35.1
|
|
|
(0.1)
|
|
|
139.1
|
|
Add:
|
Dry-dock
amortization
|
|
|
6.2
|
|
|
6.7
|
|
|
(0.5)
|
|
|
24.4
|
|
EBITDA (1)
|
|
|
$
|
81.7
|
|
$
|
476.4
|
|
$
|
(394.7)
|
|
$
|
1,131.5
|
|
|
|
|
|
|
|
(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.