- 2Q23 EPS of $2.26
- 2Q23 Net Income and EBITDA of $80.8 million and $140.5 million, respectively
- Year-over-year decrease in 2Q23 consolidated operating income
driven primarily by lower contribution from China service
- Repurchased approximately 0.6 million shares in 2Q23
HONOLULU, Aug. 1, 2023
/PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE:
MATX), a leading U.S. carrier in the Pacific, today reported net
income of $80.8 million, or
$2.26 per diluted share, for the
quarter ended June 30, 2023. Net income for the quarter
ended June 30, 2022 was $380.7 million, or $9.49 per diluted share. Consolidated
revenue for the second quarter 2023 was $773.4 million compared with $1,261.1 million for the second quarter
2022.
![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 despite a challenging business environment and
sluggish economic growth," said Chairman and Chief Executive
Officer Matt Cox. "Within
Ocean Transportation, our China
service saw higher sequential quarterly freight demand but
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. Currently in the Transpacific
marketplace, we are seeing modest reductions in deployed capacity
and retail inventories are in a relatively better position than
earlier in the year, but retailers continue to carefully manage
inventory levels in the face of lower consumer demand. We
further expect the tradelane to experience a muted peak season, but
for Matson, we expect our China
service to be near full during the traditional peak season.
Absent an economic 'hard landing' in the U.S., we continue to
expect trade dynamics to gradually improve for the remainder of the
year as the Transpacific marketplace transitions to a more
normalized level of consumer demand and retail inventory stocking
levels. 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 year-over-year decline in Hawaii volume was primarily due to lower
retail-related volume. The year-over-year volume declines in
Guam and Alaska were primarily driven by lower general
demand and lower seafood volume, respectively. In Logistics,
operating income decreased year-over-year primarily due to lower
contributions from transportation brokerage and supply chain
management."
"We expect Matson's consolidated operating income in the third
quarter of 2023 to be higher than the level achieved in the second
quarter. We also expect the fourth quarter consolidated
operating income to approach the level achieved in the first
quarter of 2023," said Mr. Cox.
Second Quarter 2023 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the second quarter 2023 was 7.1 percent lower
year-over-year. The decrease was primarily due to lower
retail-related volume. During the quarter, the Company saw
retail customers continue to manage inventories to weaker consumer
demand levels despite continued economic growth in Hawaii supported by a low unemployment rate
and relatively strong visitor arrivals. In the second half of
2023, Matson expects continued improvement in the Hawaii economy supported by continued growth
in visitor arrivals and a low unemployment rate.
In China, the Company's
container volume in the second quarter 2023 decreased
24.6 percent year-over-year. The decrease was primarily
due to (i) CCX volume in the second quarter 2022 (CCX service was
discontinued in the third quarter 2022), (ii) lower capacity in the
CLX service due to the dry-docking of Daniel K. Inouye and (iii) one less CLX+
sailing. Matson continued to realize a significant rate
premium over the Shanghai Containerized Freight Index ("SCFI") in
the second quarter 2023 but achieved average freight rates that
were lower than in the year ago period. Currently in the
Transpacific marketplace, the Company is seeing modest reductions
in deployed capacity and retail inventories are in a relatively
better position than earlier in the year, but retailers continue to
carefully manage inventory levels in the face of lower consumer
demand. The Company further expects the tradelane to
experience a muted peak season, but for Matson, the Company expects
its China service to be near full
during the traditional peak season. Absent an economic "hard
landing" in the U.S., the Company continues to expect trade
dynamics to gradually improve for the remainder of the year as the
Transpacific marketplace transitions to a more normalized level of
consumer demand and retail inventory stocking levels.
Regardless of the economic environment, the Company expects to
continue to earn a significant rate premium to the SCFI reflecting
its fast and reliable ocean services and unmatched destination
services.
In Guam, the Company's
container volume in the second quarter 2023 decreased
7.5 percent year-over-year primarily due to lower general
demand. In the second half of 2023, the Company expects
continued improvement in the Guam
economy with a low unemployment rate and a modest increase in
tourism from low levels.
In Alaska, the Company's
container volume for the second quarter 2023 decreased
7.2 percent year-over-year due to (i) lower export
seafood volume from the Alaska-Asia Express service ("AAX"), (ii)
lower northbound volume due to one less sailing and (iii) lower
southbound volume primarily due to lower household goods and
domestic seafood volume. In the second half of 2023, the
Company expects the Alaska economy
to continue to benefit from low unemployment and increased
energy-related exploration and production activity as a result of
elevated oil prices.
The contribution in the second quarter 2023 from the Company's
SSAT joint venture investment was $(1.4) million, or
$26.1 million lower than the
second quarter 2022. The decrease was primarily driven by
lower demurrage revenue and lower lift volume.
Logistics: In the second quarter 2023, operating
income for the Company's Logistics segment was $14.3 million, or $8.8 million lower compared to the level
achieved in the second quarter 2022. The decrease was
primarily due to lower contributions from transportation brokerage
and supply chain management.
Results By Segment
Ocean Transportation — Three months ended June 30, 2023
compared with 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
616.9
|
|
$
|
1,049.2
|
|
$
|
(432.3)
|
|
(41.2)
|
%
|
Operating costs and
expenses
|
|
|
(534.5)
|
|
|
(579.2)
|
|
|
44.7
|
|
(7.7)
|
%
|
Operating
income
|
|
$
|
82.4
|
|
$
|
470.0
|
|
$
|
(387.6)
|
|
(82.5)
|
%
|
Operating income
margin
|
|
|
13.4
|
%
|
|
44.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
36,400
|
|
|
39,200
|
|
|
(2,800)
|
|
(7.1)
|
%
|
Hawaii
automobiles
|
|
|
9,800
|
|
|
10,600
|
|
|
(800)
|
|
(7.5)
|
%
|
Alaska
containers
|
|
|
20,500
|
|
|
22,100
|
|
|
(1,600)
|
|
(7.2)
|
%
|
China
containers
|
|
|
36,700
|
|
|
48,700
|
|
|
(12,000)
|
|
(24.6)
|
%
|
Guam
containers
|
|
|
4,900
|
|
|
5,300
|
|
|
(400)
|
|
(7.5)
|
%
|
Other containers
(2)
|
|
|
4,400
|
|
|
6,200
|
|
|
(1,800)
|
|
(29.0)
|
%
|
____________
(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 $432.3 million, or 41.2 percent, during
the three months ended June 30, 2023, compared with the three
months ended June 30, 2022. The decrease was primarily
due to lower average freight rates and volume in China.
On a year-over-year FEU basis, Hawaii container volume decreased
7.1 percent primarily due to lower retail-related volume;
Alaska volume decreased
7.2 percent due to (i) lower export seafood volume from the
AAX, (ii) lower northbound volume due to one less sailing and (iii)
lower southbound volume primarily due to lower household goods and
domestic seafood volume; China
volume was 24.6 percent lower primarily due to (a) CCX volume
in the second quarter 2022 (CCX service was discontinued in the
third quarter 2022), (b) lower capacity in the CLX service due to
the dry-docking of Daniel K.
Inouye and (c) one less CLX+ sailing; Guam volume was 7.5 percent lower
primarily due to lower general demand; and Other containers volume
decreased 29.0 percent.
Ocean Transportation operating income decreased $387.6 million during the three months ended
June 30, 2023, compared with the three months ended
June 30, 2022. The decrease was primarily due to lower
freight rates and volume in China
and a lower contribution from SSAT, partially offset by (i) lower
operating costs and expenses (including fuel-related expenses)
primarily related to the discontinuation of the CCX service and
(ii) lower fuel costs and the timing of fuel-related surcharge
collections.
The Company's SSAT terminal joint venture investment contributed
$(1.4) million during the three months ended June 30,
2023, compared to a contribution of $24.7 million during the three months ended
June 30, 2022. The decrease was primarily driven by
lower demurrage revenue and lower lift volume.
Ocean Transportation — Six months ended June 30, 2023
compared with 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,167.9
|
|
$
|
1,993.1
|
|
$
|
(825.2)
|
|
(41.4)
|
%
|
Operating costs and
expenses
|
|
|
(1,057.7)
|
|
|
(1,106.9)
|
|
|
49.2
|
|
(4.4)
|
%
|
Operating
income
|
|
$
|
110.2
|
|
$
|
886.2
|
|
$
|
(776.0)
|
|
(87.6)
|
%
|
Operating income
margin
|
|
|
9.4
|
%
|
|
44.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
71,600
|
|
|
74,700
|
|
|
(3,100)
|
|
(4.1)
|
%
|
Hawaii
automobiles
|
|
|
19,200
|
|
|
19,200
|
|
|
—
|
|
—
|
%
|
Alaska
containers
|
|
|
40,300
|
|
|
42,900
|
|
|
(2,600)
|
|
(6.1)
|
%
|
China
containers
|
|
|
66,800
|
|
|
95,300
|
|
|
(28,500)
|
|
(29.9)
|
%
|
Guam
containers
|
|
|
9,800
|
|
|
10,800
|
|
|
(1,000)
|
|
(9.3)
|
%
|
Other containers
(2)
|
|
|
8,500
|
|
|
11,500
|
|
|
(3,000)
|
|
(26.1)
|
%
|
____________
(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 $825.2 million, or 41.4 percent, during
the six months ended June 30, 2023, compared with the six
months ended June 30, 2022. The decrease was primarily
due to lower average freight rates and volume in China.
On a year-over-year FEU basis, Hawaii container volume decreased
4.1 percent primarily due to lower eastbound and
retail-related volume; Alaska
volume decreased 6.1 percent due to (i) lower export seafood
volume from the AAX including the impact of three less sailings and
(ii) lower southbound volume primarily due to lower household goods
and domestic seafood volume, partially offset by higher northbound
volume primarily due to an additional sailing; China volume was 29.9 percent lower
primarily due to (a) CCX volume in the first half of 2022 (CCX
service was discontinued in the third quarter 2022), (b) lower
demand for the CLX and CLX+ services including one less CLX+
sailing and (c) lower capacity in the CLX service due to the
dry-docking of Daniel K. Inouye; Guam volume was
9.3 percent lower primarily due to lower retail-related
demand; and Other containers volume decreased
26.1 percent.
Ocean Transportation operating income decreased $776.0 million during the six months ended
June 30, 2023, compared with the six months ended
June 30, 2022. The decrease was primarily due to lower
freight rates and volume in China
and a lower contribution from SSAT, partially offset by (i) lower
operating costs and expenses (including fuel-related expenses)
primarily related to the discontinuation of the CCX service and
(ii) lower fuel costs and the timing of fuel-related surcharge
collections.
The Company's SSAT terminal joint venture investment contributed
$(3.2) million during the six months ended June 30, 2023,
compared to a contribution of $58.7 million during the six months ended
June 30, 2022. The decrease was primarily driven by
lower demurrage revenue and lower lift volume.
Logistics — Three months ended June 30, 2023 compared
with 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
156.5
|
|
$
|
211.9
|
|
$
|
(55.4)
|
|
(26.1)
|
%
|
Operating costs and
expenses
|
|
|
(142.2)
|
|
|
(188.8)
|
|
|
46.6
|
|
(24.7)
|
%
|
Operating
income
|
|
$
|
14.3
|
|
$
|
23.1
|
|
$
|
(8.8)
|
|
(38.1)
|
%
|
Operating income
margin
|
|
|
9.1
|
%
|
|
10.9
|
%
|
|
|
|
|
|
Logistics revenue decreased $55.4 million, or 26.1 percent, during
the three months ended June 30, 2023, compared with the three
months ended June 30, 2022. The decrease was primarily
due to lower revenue in transportation brokerage and supply chain
management.
Logistics operating income decreased $8.8 million, or 38.1 percent, during
the three months ended June 30, 2023, compared with the three
months ended June 30, 2022. The decrease was primarily
due to lower contributions from transportation brokerage and supply
chain management.
Logistics — Six months ended June 30, 2023 compared with
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
310.3
|
|
$
|
433.5
|
|
$
|
(123.2)
|
|
(28.4)
|
%
|
Operating costs and
expenses
|
|
|
(285.1)
|
|
|
(394.0)
|
|
|
108.9
|
|
(27.6)
|
%
|
Operating
income
|
|
$
|
25.2
|
|
$
|
39.5
|
|
$
|
(14.3)
|
|
(36.2)
|
%
|
Operating income
margin
|
|
|
8.1
|
%
|
|
9.1
|
%
|
|
|
|
|
|
Logistics revenue decreased $123.2 million, or 28.4 percent, during
the six months ended June 30, 2023, compared with the six
months ended June 30, 2022. The decrease was primarily
due to lower revenue in transportation brokerage and supply chain
management.
Logistics operating income decreased $14.3 million, or 36.2 percent, during
the six months ended June 30, 2023, compared with the six
months ended June 30, 2022. The decrease was primarily
due to lower contributions from transportation brokerage and supply
chain management.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $127.8 million from $249.8 million at December 31, 2022
to $122.0 million at June 30, 2023, which excludes
$583.9 million in cash and
interest deposited in the Capital Construction Fund. Matson
generated net cash from operating activities of $246.5 million during the six months ended
June 30, 2023, compared to
$691.1 million during the six months
ended June 30, 2022. Capital
expenditures totaled $126.3 million
for the six months ended June 30,
2023, compared with $79.8
million for the six months ended June
30, 2022. Total debt decreased by $55.1 million during the six months to
$462.4 million as of June 30, 2023, of which $420.7 million was classified as long-term
debt.1 As of June 30,
2023, Matson had available borrowings under its revolving
credit facility of $642.5 million.
During the second quarter 2023, Matson repurchased approximately
0.6 million shares for a total cost of $42.4 million. As of the end of the
second quarter 2023, there were approximately 3.3 million
shares remaining in its share repurchase program. Matson's
Board of Directors also declared a cash dividend of $0.32 per share payable on September 7,
2023 to all shareholders of record as of the close of business on
August 3, 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 August 1, 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 second
quarter results.
|
|
Date of Conference
Call:
|
Tuesday, August 1,
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/BI2405370e930a41939d6774bd4e7cc3dc
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; operating income; volume, rate and freight demand levels;
seasonality trends; retail inventories; deployed capacity in the
Transpacific; consumer demand; Matson's capacity utilization in the
peak season; vessel transit times; trade dynamics; e-commerce
growth; air freight capacity; Matson's rate premium to the Shanghai
Containerized Freight Index; economic growth and drivers in
Hawaii, Alaska and Guam; tourism levels; unemployment rates;
interest rates; inflation; lift volume at SSAT; freight forwarding
demand; intermodal and highway brokerage demand and capacity;
accessorial fees; timing and amount of tax refunds; timing of
milestone payments; tax rates; capital allocation plans;
energy-related exploration and production activity; oil prices; and
timing of return of annual financial outlook. 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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
(In millions, except per
share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
616.9
|
|
$
|
1,049.2
|
|
$
|
1,167.9
|
|
$
|
1,993.1
|
Logistics
|
|
|
156.5
|
|
|
211.9
|
|
|
310.3
|
|
|
433.5
|
Total Operating
Revenue
|
|
|
773.4
|
|
|
1,261.1
|
|
|
1,478.2
|
|
|
2,426.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(604.7)
|
|
|
(728.4)
|
|
|
(1,202.2)
|
|
|
(1,432.1)
|
(Loss) Income from
SSAT
|
|
|
(1.4)
|
|
|
24.7
|
|
|
(3.2)
|
|
|
58.7
|
Selling, general and
administrative
|
|
|
(70.6)
|
|
|
(64.3)
|
|
|
(137.4)
|
|
|
(127.5)
|
Total Costs and
Expenses
|
|
|
(676.7)
|
|
|
(768.0)
|
|
|
(1,342.8)
|
|
|
(1,500.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
96.7
|
|
|
493.1
|
|
|
135.4
|
|
|
925.7
|
Interest
income
|
|
|
8.7
|
|
|
—
|
|
|
16.9
|
|
|
—
|
Interest
expense
|
|
|
(2.9)
|
|
|
(4.5)
|
|
|
(7.4)
|
|
|
(9.3)
|
Other income
(expense), net
|
|
|
1.8
|
|
|
1.8
|
|
|
3.6
|
|
|
3.8
|
Income before
Taxes
|
|
|
104.3
|
|
|
490.4
|
|
|
148.5
|
|
|
920.2
|
Income
taxes
|
|
|
(23.5)
|
|
|
(109.7)
|
|
|
(33.7)
|
|
|
(200.3)
|
Net Income
|
|
$
|
80.8
|
|
$
|
380.7
|
|
$
|
114.8
|
|
$
|
719.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
2.28
|
|
$
|
9.54
|
|
$
|
3.21
|
|
$
|
17.82
|
Diluted Earnings Per
Share
|
|
$
|
2.26
|
|
$
|
9.49
|
|
$
|
3.19
|
|
$
|
17.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
35.5
|
|
|
39.9
|
|
|
35.8
|
|
|
40.4
|
Diluted
|
|
|
35.7
|
|
|
40.1
|
|
|
36.0
|
|
|
40.7
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
(In millions)
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
122.0
|
|
$
|
249.8
|
Other current
assets
|
|
|
455.8
|
|
|
509.8
|
Total current
assets
|
|
|
577.8
|
|
|
759.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
80.1
|
|
|
81.2
|
Property and
equipment, net
|
|
|
2,029.0
|
|
|
1,962.5
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
184.4
|
|
|
174.9
|
Capital Construction
Fund
|
|
|
583.9
|
|
|
518.2
|
Other long-term
assets
|
|
|
435.1
|
|
|
505.8
|
Total long-term
assets
|
|
|
3,640.3
|
|
|
3,570.4
|
Total
assets
|
|
$
|
4,218.1
|
|
$
|
4,330.0
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
41.7
|
|
$
|
76.9
|
Other current
liabilities
|
|
|
507.3
|
|
|
504.7
|
Total current
liabilities
|
|
|
549.0
|
|
|
581.6
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
408.5
|
|
|
427.7
|
Deferred income
taxes
|
|
|
643.9
|
|
|
646.5
|
Other long-term
liabilities
|
|
|
326.7
|
|
|
377.3
|
Total long-term
liabilities
|
|
|
1,379.1
|
|
|
1,451.5
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,290.0
|
|
|
2,296.9
|
Total liabilities and
shareholders' equity
|
|
$
|
4,218.1
|
|
$
|
4,330.0
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(In millions)
|
|
2023
|
|
2022
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
114.8
|
|
$
|
719.9
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
72.1
|
|
|
71.1
|
|
Amortization of
operating lease right of use assets
|
|
|
75.7
|
|
|
75.3
|
|
Deferred income
taxes
|
|
|
(3.0)
|
|
|
9.4
|
|
Share-based
compensation expense
|
|
|
9.8
|
|
|
10.5
|
|
Loss (income) from
SSAT
|
|
|
3.2
|
|
|
(58.7)
|
|
Distributions from
SSAT
|
|
|
—
|
|
|
26.3
|
|
Other
|
|
|
(1.7)
|
|
|
(0.7)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(16.8)
|
|
|
(37.6)
|
|
Deferred dry-docking
payments
|
|
|
(8.9)
|
|
|
(14.7)
|
|
Deferred dry-docking
amortization
|
|
|
12.4
|
|
|
12.9
|
|
Prepaid expenses and
other assets
|
|
|
68.3
|
|
|
(48.3)
|
|
Accounts payable,
accruals and other liabilities
|
|
|
3.6
|
|
|
4.5
|
|
Operating lease
liabilities
|
|
|
(76.3)
|
|
|
(74.2)
|
|
Other long-term
liabilities
|
|
|
(6.7)
|
|
|
(4.6)
|
|
Net cash provided by
operating activities
|
|
|
246.5
|
|
|
691.1
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(50.8)
|
|
|
(11.4)
|
|
Other capital
expenditures
|
|
|
(75.5)
|
|
|
(68.4)
|
|
Proceeds from disposal
of property and equipment, net
|
|
|
0.1
|
|
|
0.8
|
|
Payment for intangible
asset acquisition
|
|
|
(12.4)
|
|
|
—
|
|
Cash deposits and
interest into the Capital Construction Fund
|
|
|
(113.1)
|
|
|
(10.7)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
49.9
|
|
|
10.7
|
|
Net cash used in
investing activities
|
|
|
(201.8)
|
|
|
(79.0)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(55.1)
|
|
|
(32.5)
|
|
Dividends
paid
|
|
|
(22.4)
|
|
|
(25.0)
|
|
Repurchase of Matson
common stock
|
|
|
(82.5)
|
|
|
(208.5)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(12.5)
|
|
|
(19.5)
|
|
Net cash used in
financing activities
|
|
|
(172.5)
|
|
|
(285.5)
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase
in Cash, Cash Equivalents and Restricted Cash
|
|
|
(127.8)
|
|
|
326.6
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Period
|
|
|
253.7
|
|
|
287.7
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Period
|
|
$
|
125.9
|
|
$
|
614.3
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash, End of the Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
122.0
|
|
$
|
609.0
|
|
Restricted
Cash
|
|
|
3.9
|
|
|
5.3
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
125.9
|
|
$
|
614.3
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest (including debt prepaid fees)
|
|
$
|
7.1
|
|
$
|
8.4
|
|
Income tax payments
(refunds), net
|
|
$
|
(28.8)
|
|
$
|
211.7
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
8.4
|
|
$
|
6.1
|
|
Non-cash payment for
intangible asset acquisition
|
|
$
|
4.1
|
|
$
|
—
|
|
Accrued
dividends
|
|
$
|
11.2
|
|
$
|
12.4
|
|
MATSON, INC.
AND SUBSIDIARIES
|
Net Income to EBITDA
Reconciliations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
June 30,
|
|
Last Twelve
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
|
Months
|
Net Income
|
|
|
$
|
80.8
|
|
$
|
380.7
|
|
$
|
(299.9)
|
|
$
|
458.8
|
Subtract:
|
Interest
income
|
|
|
(8.7)
|
|
|
—
|
|
|
(8.7)
|
|
|
(25.1)
|
Add:
|
Interest
expense
|
|
|
2.9
|
|
|
4.5
|
|
|
(1.6)
|
|
|
16.1
|
Add:
|
Income taxes
|
|
|
23.5
|
|
|
109.7
|
|
|
(86.2)
|
|
|
121.8
|
Add:
|
Depreciation and
amortization
|
|
|
35.8
|
|
|
34.9
|
|
|
0.9
|
|
|
140.0
|
Add:
|
Dry-dock
amortization
|
|
|
6.2
|
|
|
6.2
|
|
|
—
|
|
|
24.4
|
EBITDA (1)
|
|
|
$
|
140.5
|
|
$
|
536.0
|
|
$
|
(395.5)
|
|
$
|
736.0
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
Net Income
|
|
|
$
|
114.8
|
|
$
|
719.9
|
|
$
|
(605.1)
|
|
|
|
Subtract:
|
Interest
income
|
|
|
(16.9)
|
|
|
—
|
|
|
(16.9)
|
|
|
|
Add:
|
Interest
expense
|
|
|
7.4
|
|
|
9.3
|
|
|
(1.9)
|
|
|
|
Add:
|
Income taxes
|
|
|
33.7
|
|
|
200.3
|
|
|
(166.6)
|
|
|
|
Add:
|
Depreciation and
amortization
|
|
|
70.8
|
|
|
70.0
|
|
|
0.8
|
|
|
|
Add:
|
Dry-dock
amortization
|
|
|
12.4
|
|
|
12.9
|
|
|
(0.5)
|
|
|
|
EBITDA (1)
|
|
|
$
|
222.2
|
|
$
|
1,012.4
|
|
$
|
(790.2)
|
|
|
|
____________
(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.