| 3 Matson Overview
Appendix – Non-GAAP Measures
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 Expense, Interest Income, Income Taxes, Depreciation and
Amortization (“EBITDA”), Net Debt, Return on Invested Capital (“ROIC”) and Return on Equity (“ROE”).
For the years ended December 31,
($ in millions, except ROIC and ROE) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Total debt (6) $ 462.4 $ 517.5 $ 629.0 $ 760.1 $ 958.4 $ 856.4 $ 857.1 $ 738.9 $ 429.9 $ 373.6 $ 286.1 $ 319.1
Less: total cash and cash equivalents (122.0) (249.8) (282.4) (14.4) (21.2) (19.6) (19.8) (13.9) (25.5) (293.4) (114.5) (19.9)
Net debt 340.4 267.7 346.6 745.7 937.2 836.8 837.3 725.0 404.4 80.2 171.6 299.2
Net income $ 458.8 $ 1,063.9 $ 927.4 $ 193.1 $ 82.7 $ 109.0 $ 231.0 $ 81.4 $ 103.0 $ 70.8 $ 53.7 $ 45.9
Add: loss from discontinued operations - - - - - - - - - - - 6.1
Add: income tax expense 121.8 288.4 243.9 65.9 25.1 38.7 (105.8) 49.1 74.8 51.9 32.2 33.0
Add: interest expense 16.1 18.0 22.6 27.4 22.5 18.7 24.2 24.1 18.5 17.3 14.4 11.7
Subtract: interest income (25.1) (8.2) - - - - - - - - - -
Add: depreciation and amortization 164.4 164.1 156.4 137.3 134.0 130.9 146.6 135.4 105.8 90.1 91.0 95.4
EBITDA 736.0 1,526.2 1,350.3 423.7 264.3 297.3 296.0 290.0 302.1 230.1 191.3 192.1
Net income (A) $ 458.8 $ 1,063.9 $ 927.4 $ 193.1 $ 82.7 $ 109.0 $ 231.0 $ 81.4 $ 103.0 $ 70.8 $ 53.7 $ 45.9
Add: loss from discontinued operations - - - - - - - - - - - 6.1
Subtract: interest income (tax-effected) (4)
(19.5) (6.5) - - - - - - - - - -
Add: interest expense (tax-effected) (4)
12.6 14.2 17.9 20.4 16.7 14.2 14.9 15.1 10.7 10.0 9.0 7.2
Total return (B) 451.9 1,071.6 945.3 213.5 99.4 123.2 245.9 96.5 113.7 80.8 62.7 59.2
Average total debt (6) $ 529.5 $ 573.3 $ 694.6 $ 859.3 $ 907.4 $ 856.8 $ 798.0 $ 584.4 $ 401.8 $ 329.9 $ 302.6 $ 319.1
Average shareholders' equity (C) 2,211.8 1,982.2 1,314.3 883.5 780.5 716.3 586.1 472.8 407.1 351.0 309.1 279.9
Total invested capital (D) 2,741.3 2,555.5 2,008.9 1,742.8 1,687.9 1,573.1 1,384.1 1,057.2 808.9 680.9 611.7 599.0
ROIC = (B)/(D) 16.5% 41.9% 47.1% 12.3% 5.9% 7.8% 17.8% 9.1% 14.1% 11.9% 10.3% 9.9%
ROE = (A)/(C) 20.7% 53.7% 70.6% 21.9% 10.6% 15.2% 39.4% 17.2% 25.3% 20.2% 17.4% 16.4%
(6) Total debt is presented before any reduction for deferred loan fees as required by U.S. GAAP.
(5) The 2012 calculation is based on total invested capital as of December 31, 2012 due to the timing of the separation from Alexander & Baldwin.
LTM as of
06/30/23
(1) Includes a non-cash tax benefit of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Cuts and Jobs Act (the "Tax Act").
(2) Includes a non-cash tax expense of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Act.
(3) Includes the benefit of a one-time, non-cash adjustment of $154.0 million related to the enactment of the Tax Act.
(4) The effective tax rates each year in the period 2012-2022 and LTM 2Q23 were 38.8%, 37.5%, 42.3%, 42.1%, 37.6%, (84.5%), 26.2%, 23.3%, 25.4%, 20.8%, 21.3% and 21.0%, respectively. The
effective tax rates for 2017, 2018 and 2019 excluding adjustments related to the Tax Act, would have been 38.5%, 24.2% and 26.0%, respectively.
(2) (3)
(2) (3)
(5)
(5)
(5)
(1)
(1) |