- 3Q23 EPS of $3.40
- 3Q23 Net Income and EBITDA of $119.9
million and $175.1 million,
respectively
- Year-over-year decrease in 3Q23 consolidated operating income
driven primarily by lower contribution from China service
- Repurchased approximately 0.3 million shares in 3Q23
HONOLULU, Oct. 30,
2023 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX), a leading U.S. carrier in the Pacific,
today reported net income of $119.9
million, or $3.40 per diluted
share, for the quarter ended September
30, 2023. Net income for the quarter ended
September 30, 2022 was $266.0 million, or $6.89 per diluted share. Consolidated
revenue for the third quarter 2023 was $827.5 million compared with $1,114.8 million for the third quarter 2022.
"Matson's Ocean Transportation and Logistics business segments
continued to perform well despite a challenging business
environment and relatively difficult economic conditions impacting
the U.S. consumer," said Chairman and Chief Executive Officer
Matt Cox. "Within Ocean
Transportation, our China service
experienced solid freight demand despite the muted peak season in
the Transpacific tradelane 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
continue to see a reduction of deployed capacity in light of lower
volumes as a result of lower consumer demand for retail
goods. Absent an economic 'hard landing' in the U.S., we
expect trade dynamics in 2024 to be comparable to 2023 as
consumer-related spending activity is expected to remain
stable. Regardless of the economic backdrop, 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
general demand. 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 a lower
contribution from transportation brokerage."
"Looking ahead, we expect Matson's consolidated operating income
in the fourth quarter of 2023 to be higher than the level achieved
in the first quarter of 2023," said Mr. Cox.
Third Quarter 2023 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the third quarter 2023 was 1.9 percent lower
year-over-year. The decrease was primarily due to lower
general demand. In August, Maui experienced a significant economic
disruption from devastating wildfires. According to UHERO's
most recent economic report1, tourism to the
island may not fully recover in the next several years, and the
rebuilding of homes and businesses may take many years. In
the near-term, Matson expects economic growth in Hawaii to moderate as tourism and visitor
arrivals slowly rebound from the effects of the Maui wildfires.
In China, the Company's
container volume in the third quarter 2023 decreased
1.3 percent year-over-year. The decrease was primarily
due to CCX volume in the third quarter 2022 (the CCX service was
discontinued in the third quarter 2022) partially offset by higher
volume in the CLX+ service. Matson continued to realize a
significant rate premium over the Shanghai Containerized Freight
Index ("SCFI") in the third quarter 2023 but achieved average
freight rates that were lower than in the year ago period.
Currently in the Transpacific marketplace, the Company continues to
see a reduction of deployed capacity in light of lower volumes as a
result of lower consumer demand for retail goods. Absent an
economic 'hard landing' in the U.S., the Company expects trade
dynamics in 2024 to be comparable to 2023 as consumer-related
spending activity is expected to remain stable. Regardless of
the economic backdrop, Matson 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 third quarter 2023 decreased
1.9 percent year-over-year primarily due to lower general
demand. In the near-term, 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 third quarter 2023 decreased
9.1 percent year-over-year due to (i) lower export
seafood volume from the Alaska-Asia Express service ("AAX"), (ii)
lower northbound volume due to lower retail-related demand and
(iii) lower southbound volume due to lower domestic seafood
volume. In the near-term, 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 third quarter 2023 from the Company's
SSAT joint venture investment was $1.3 million, or $22.1 million lower than the third quarter
2022. The decrease was primarily driven by lower demurrage
revenue and lower lift volume.
Logistics: In the third quarter 2023, operating
income for the Company's Logistics segment was $13.9 million, or $6.2 million lower compared to the level
achieved in the third quarter 2022. The decrease was
primarily due to a lower contribution from transportation
brokerage.
Results By
Segment
|
Ocean Transportation
— Three months ended September 30, 2023 compared with
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
669.4
|
|
$
|
918.5
|
|
$
|
(249.1)
|
|
(27.1)
|
%
|
Operating costs and
expenses
|
|
|
(551.2)
|
|
|
(603.3)
|
|
|
52.1
|
|
(8.6)
|
%
|
Operating
income
|
|
$
|
118.2
|
|
$
|
315.2
|
|
$
|
(197.0)
|
|
(62.5)
|
%
|
Operating income
margin
|
|
|
17.7
|
%
|
|
34.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
37,000
|
|
|
37,700
|
|
|
(700)
|
|
(1.9)
|
%
|
Hawaii
automobiles
|
|
|
10,100
|
|
|
11,300
|
|
|
(1,200)
|
|
(10.6)
|
%
|
Alaska
containers
|
|
|
21,900
|
|
|
24,100
|
|
|
(2,200)
|
|
(9.1)
|
%
|
China
containers
|
|
|
39,000
|
|
|
39,500
|
|
|
(500)
|
|
(1.3)
|
%
|
Guam
containers
|
|
|
5,300
|
|
|
5,400
|
|
|
(100)
|
|
(1.9)
|
%
|
Other containers
(2)
|
|
|
4,300
|
|
|
6,000
|
|
|
(1,700)
|
|
(28.3)
|
%
|
_____________________
|
(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 $249.1 million, or 27.1 percent, during the three
months ended September 30, 2023,
compared with the three months ended September 30, 2022. The decrease was
primarily due to lower average freight rates in China.
On a year-over-year FEU basis, Hawaii container volume decreased
1.9 percent primarily due to lower general demand;
Alaska volume decreased
9.1 percent due to (i) lower export seafood volume from the
AAX, (ii) lower northbound volume due to lower retail-related
demand and (iii) lower southbound volume due to lower domestic
seafood volume; China volume was
1.3 percent lower primarily due to CCX volume in 3Q22 (the CCX
service was discontinued in 3Q22) partially offset by higher volume
in the CLX+ service; Guam volume
was 1.9 percent lower primarily due to lower general demand; and
Other containers volume decreased 28.3 percent.
Ocean Transportation operating income decreased $197.0 million during the three months ended
September 30, 2023, compared with the three months ended
September 30, 2022. The decrease was primarily due to
lower freight rates in China and a
lower contribution from SSAT, partially offset by (i) higher volume
in the CLX+ service and (ii) 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
$1.3 million during the three months
ended September 30, 2023, compared to
a contribution of $23.4 million
during the three months ended September
30, 2022. The decrease was primarily driven by lower
demurrage revenue and lower lift volume.
Ocean Transportation
— Nine months ended September 30, 2023 compared with
2022
|
|
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,837.3
|
|
$
|
2,911.6
|
|
$
|
(1,074.3)
|
|
(36.9)
|
%
|
Operating costs and
expenses
|
|
|
(1,608.9)
|
|
|
(1,710.2)
|
|
|
101.3
|
|
(5.9)
|
%
|
Operating
income
|
|
$
|
228.4
|
|
$
|
1,201.4
|
|
$
|
(973.0)
|
|
(81.0)
|
%
|
Operating income
margin
|
|
|
12.4
|
%
|
|
41.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
108,600
|
|
|
112,400
|
|
|
(3,800)
|
|
(3.4)
|
%
|
Hawaii
automobiles
|
|
|
29,300
|
|
|
30,500
|
|
|
(1,200)
|
|
(3.9)
|
%
|
Alaska
containers
|
|
|
62,200
|
|
|
67,000
|
|
|
(4,800)
|
|
(7.2)
|
%
|
China
containers
|
|
|
105,800
|
|
|
134,800
|
|
|
(29,000)
|
|
(21.5)
|
%
|
Guam
containers
|
|
|
15,100
|
|
|
16,200
|
|
|
(1,100)
|
|
(6.8)
|
%
|
Other containers
(2)
|
|
|
12,800
|
|
|
17,500
|
|
|
(4,700)
|
|
(26.9)
|
%
|
________________________
|
(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 $1,074.3 million, or 36.9 percent, during the
nine months ended September 30, 2023,
compared with the nine months ended September 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
3.4 percent primarily due to lower general westbound demand
and lower eastbound volume; Alaska
volume decreased 7.2 percent due to (i) lower export seafood
volume from the AAX and (ii) lower southbound volume primarily due
to lower domestic seafood volume; China volume was 21.5 percent lower
primarily due to (a) CCX volume in the first nine months of 2022
(the CCX service was discontinued in the third quarter 2022) and
(b) lower demand for the CLX and CLX+ services including three less
CLX+ sailings; Guam volume was
6.8 percent lower primarily due to lower general demand; and
Other containers volume decreased 26.9 percent.
Ocean Transportation operating income decreased $973.0 million during the nine months ended
September 30, 2023, compared with the nine months ended
September 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
$(1.9) million during the nine months
ended September 30, 2023, compared to
a contribution of $82.1 million
during the nine months ended September
30, 2022. The decrease was primarily driven by lower
demurrage revenue and lower lift volume.
Logistics — Three
months ended September 30, 2023 compared with
2022
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
158.1
|
|
$
|
196.3
|
|
$
|
(38.2)
|
|
(19.5)
|
%
|
Operating costs and
expenses
|
|
|
(144.2)
|
|
|
(176.2)
|
|
|
32.0
|
|
(18.2)
|
%
|
Operating
income
|
|
$
|
13.9
|
|
$
|
20.1
|
|
$
|
(6.2)
|
|
(30.8)
|
%
|
Operating income
margin
|
|
|
8.8
|
%
|
|
10.2
|
%
|
|
|
|
|
|
Logistics revenue decreased $38.2
million, or 19.5 percent, during the three months ended
September 30, 2023, compared with the
three months ended September 30,
2022. The decrease was primarily due to lower revenue in
transportation brokerage.
Logistics operating income decreased $6.2
million, or 30.8 percent, during the three months ended
September 30, 2023, compared with the
three months ended September 30,
2022. The decrease was primarily due to a lower contribution
from transportation brokerage.
Logistics — Nine
months ended September 30, 2023 compared with
2022
|
|
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
468.4
|
|
$
|
629.8
|
|
$
|
(161.4)
|
|
(25.6)
|
%
|
Operating costs and
expenses
|
|
|
(429.3)
|
|
|
(570.2)
|
|
|
140.9
|
|
(24.7)
|
%
|
Operating
income
|
|
$
|
39.1
|
|
$
|
59.6
|
|
$
|
(20.5)
|
|
(34.4)
|
%
|
Operating income
margin
|
|
|
8.3
|
%
|
|
9.5
|
%
|
|
|
|
|
|
Logistics revenue decreased $161.4
million, or 25.6 percent, during the nine months ended
September 30, 2023, compared with the
nine months ended September 30,
2022. The decrease was primarily due to lower revenue in
transportation brokerage and supply chain management.
Logistics operating income decreased $20.5 million, or 34.4 percent, during the nine
months ended September 30, 2023,
compared with the nine months ended September 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 $93.3 million from $249.8 million at December 31, 2022
to $156.5 million at September 30, 2023, which
excludes $591.6 million in cash
and interest deposited in the Capital Construction Fund.
Matson generated net cash from operating activities of $399.1 million during the nine months ended
September 30, 2023, compared to
$1,102.5 million during the nine
months ended September 30, 2022.
Capital expenditures totaled $187.5
million for the nine months ended September 30, 2023, compared with $125.3 million for the nine months ended
September 30, 2022. Total debt
decreased by $67.2 million during the
nine months to $450.3 million as of
September 30, 2023, of which
$410.6 million was classified as
long-term debt.2 As of
September 30, 2023, Matson had available borrowings under its
revolving credit facility of $642.6 million.
During the third quarter 2023, Matson repurchased approximately
0.3 million shares for a total cost of $25.8 million. As of the end of the
third quarter 2023, there were approximately 3.0 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 December 7,
2023 to all shareholders of record as of the close of business on
November 9, 2023.
Teleconference and Webcast
A conference call is scheduled on October 30, 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 third
quarter results.
Date of Conference
Call:
|
Monday,
October 30, 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/BIabc974c5c766420eb206a5fbc2636f94
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; deployed capacity in the Transpacific; consumer
demand; consumer-related spending activity; trade dynamics;
Matson's rate premium to the Shanghai Containerized Freight Index;
economic growth and drivers in Hawaii, Alaska and Guam; tourism levels; recovery from the
Maui wildfires; unemployment
rates; lift volume at SSAT; freight forwarding demand; intermodal
and highway brokerage demand and capacity; 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
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
(In millions, except per
share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
669.4
|
|
$
|
918.5
|
|
$
|
1,837.3
|
|
$
|
2,911.6
|
Logistics
|
|
|
158.1
|
|
|
196.3
|
|
|
468.4
|
|
|
629.8
|
Total Operating
Revenue
|
|
|
827.5
|
|
|
1,114.8
|
|
|
2,305.7
|
|
|
3,541.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(624.1)
|
|
|
(738.4)
|
|
|
(1,826.3)
|
|
|
(2,170.5)
|
Income (Loss) from
SSAT
|
|
|
1.3
|
|
|
23.4
|
|
|
(1.9)
|
|
|
82.1
|
Selling, general and
administrative
|
|
|
(72.6)
|
|
|
(64.5)
|
|
|
(210.0)
|
|
|
(192.0)
|
Total Costs and
Expenses
|
|
|
(695.4)
|
|
|
(779.5)
|
|
|
(2,038.2)
|
|
|
(2,280.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
132.1
|
|
|
335.3
|
|
|
267.5
|
|
|
1,261.0
|
Interest
income
|
|
|
9.3
|
|
|
1.3
|
|
|
26.2
|
|
|
1.3
|
Interest
expense
|
|
|
(2.4)
|
|
|
(5.0)
|
|
|
(9.8)
|
|
|
(14.3)
|
Other income
(expense), net
|
|
|
1.2
|
|
|
2.5
|
|
|
4.8
|
|
|
6.3
|
Income before
Taxes
|
|
|
140.2
|
|
|
334.1
|
|
|
288.7
|
|
|
1,254.3
|
Income
taxes
|
|
|
(20.3)
|
|
|
(68.1)
|
|
|
(54.0)
|
|
|
(268.4)
|
Net Income
|
|
$
|
119.9
|
|
$
|
266.0
|
|
$
|
234.7
|
|
$
|
985.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
3.42
|
|
$
|
6.95
|
|
$
|
6.59
|
|
$
|
24.83
|
Diluted Earnings Per
Share
|
|
$
|
3.40
|
|
$
|
6.89
|
|
$
|
6.56
|
|
$
|
24.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
35.1
|
|
|
38.3
|
|
|
35.6
|
|
|
39.7
|
Diluted
|
|
|
35.3
|
|
|
38.6
|
|
|
35.8
|
|
|
40.0
|
MATSON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
|
September 30,
|
|
December 31,
|
(In millions)
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
156.5
|
|
$
|
249.8
|
Other current
assets
|
|
|
479.3
|
|
|
509.8
|
Total current
assets
|
|
|
635.8
|
|
|
759.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
81.4
|
|
|
81.2
|
Property and
equipment, net
|
|
|
2,058.5
|
|
|
1,962.5
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
180.8
|
|
|
174.9
|
Capital Construction
Fund
|
|
|
591.6
|
|
|
518.2
|
Other long-term
assets
|
|
|
416.9
|
|
|
505.8
|
Total long-term
assets
|
|
|
3,657.0
|
|
|
3,570.4
|
Total
assets
|
|
$
|
4,292.8
|
|
$
|
4,330.0
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
39.7
|
|
$
|
76.9
|
Other current
liabilities
|
|
|
530.9
|
|
|
504.7
|
Total current
liabilities
|
|
|
570.6
|
|
|
581.6
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
398.7
|
|
|
427.7
|
Deferred income
taxes
|
|
|
639.3
|
|
|
646.5
|
Other long-term
liabilities
|
|
|
293.9
|
|
|
377.3
|
Total long-term
liabilities
|
|
|
1,331.9
|
|
|
1,451.5
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,390.3
|
|
|
2,296.9
|
Total liabilities and
shareholders' equity
|
|
$
|
4,292.8
|
|
$
|
4,330.0
|
MATSON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(In millions)
|
|
2023
|
|
2022
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
234.7
|
|
$
|
985.9
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
108.1
|
|
|
105.6
|
|
Amortization of
operating lease right of use assets
|
|
|
108.2
|
|
|
113.9
|
|
Deferred income
taxes
|
|
|
(9.3)
|
|
|
146.3
|
|
Share-based
compensation expense
|
|
|
17.6
|
|
|
15.5
|
|
Loss (income) from
SSAT
|
|
|
1.9
|
|
|
(82.1)
|
|
Distributions from
SSAT
|
|
|
—
|
|
|
40.3
|
|
Other
|
|
|
(1.7)
|
|
|
(0.2)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(37.1)
|
|
|
13.9
|
|
Deferred dry-docking
payments
|
|
|
(17.3)
|
|
|
(16.7)
|
|
Deferred dry-docking
amortization
|
|
|
18.6
|
|
|
18.6
|
|
Prepaid expenses and
other assets
|
|
|
65.8
|
|
|
(110.2)
|
|
Accounts payable,
accruals and other liabilities
|
|
|
34.4
|
|
|
(5.0)
|
|
Operating lease
liabilities
|
|
|
(109.9)
|
|
|
(113.8)
|
|
Other long-term
liabilities
|
|
|
(14.9)
|
|
|
(9.5)
|
|
Net cash provided by
operating activities
|
|
|
399.1
|
|
|
1,102.5
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(52.1)
|
|
|
(11.9)
|
|
Other capital
expenditures
|
|
|
(135.4)
|
|
|
(113.4)
|
|
Proceeds from disposal
of property and equipment, net
|
|
|
0.1
|
|
|
0.4
|
|
Payment for intangible
asset acquisition
|
|
|
(12.4)
|
|
|
(3.0)
|
|
Cash deposits and
interest into the Capital Construction Fund
|
|
|
(120.8)
|
|
|
(579.7)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
49.9
|
|
|
14.7
|
|
Net cash used in
investing activities
|
|
|
(270.7)
|
|
|
(692.9)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(67.2)
|
|
|
(97.2)
|
|
Dividends
paid
|
|
|
(33.8)
|
|
|
(36.9)
|
|
Repurchase of Matson
common stock
|
|
|
(108.2)
|
|
|
(296.9)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(12.5)
|
|
|
(19.6)
|
|
Net cash used in
financing activities
|
|
|
(221.7)
|
|
|
(450.6)
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash,
Cash Equivalents and Restricted Cash
|
|
|
(93.3)
|
|
|
(41.0)
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Period
|
|
|
253.7
|
|
|
287.7
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Period
|
|
$
|
160.4
|
|
$
|
246.7
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash, End of the Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
156.5
|
|
$
|
242.8
|
|
Restricted
Cash
|
|
|
3.9
|
|
|
3.9
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
160.4
|
|
$
|
246.7
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest (including debt prepaid fees)
|
|
$
|
9.6
|
|
$
|
13.6
|
|
Income tax payments
(refunds), net
|
|
$
|
(5.3)
|
|
$
|
212.4
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
7.8
|
|
$
|
3.9
|
|
Non-cash payment for
intangible asset acquisition
|
|
$
|
4.1
|
|
$
|
2.2
|
|
MATSON, INC.
AND SUBSIDIARIES
Net Income to EBITDA Reconciliations
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
September 30,
|
|
Last Twelve
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
|
Months
|
Net Income
|
|
|
$
|
119.9
|
|
$
|
266.0
|
|
$
|
(146.1)
|
|
$
|
312.7
|
Subtract:
|
Interest
income
|
|
|
(9.3)
|
|
|
(1.3)
|
|
|
(8.0)
|
|
|
(33.1)
|
Add:
|
Interest
expense
|
|
|
2.4
|
|
|
5.0
|
|
|
(2.6)
|
|
|
13.5
|
Add:
|
Income taxes
|
|
|
20.3
|
|
|
68.1
|
|
|
(47.8)
|
|
|
74.0
|
Add:
|
Depreciation and
amortization
|
|
|
35.6
|
|
|
33.9
|
|
|
1.7
|
|
|
141.7
|
Add:
|
Dry-dock
amortization
|
|
|
6.2
|
|
|
5.7
|
|
|
0.5
|
|
|
24.9
|
EBITDA (1)
|
|
|
$
|
175.1
|
|
$
|
377.4
|
|
$
|
(202.3)
|
|
$
|
533.7
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
September 30,
|
|
|
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
Net Income
|
|
|
$
|
234.7
|
|
$
|
985.9
|
|
$
|
(751.2)
|
|
|
|
Subtract:
|
Interest
income
|
|
|
(26.2)
|
|
|
(1.3)
|
|
|
(24.9)
|
|
|
|
Add:
|
Interest
expense
|
|
|
9.8
|
|
|
14.3
|
|
|
(4.5)
|
|
|
|
Add:
|
Income taxes
|
|
|
54.0
|
|
|
268.4
|
|
|
(214.4)
|
|
|
|
Add:
|
Depreciation and
amortization
|
|
|
106.4
|
|
|
103.9
|
|
|
2.5
|
|
|
|
Add:
|
Dry-dock
amortization
|
|
|
18.6
|
|
|
18.6
|
|
|
—
|
|
|
|
EBITDA (1)
|
|
|
$
|
397.3
|
|
$
|
1,389.8
|
|
$
|
(992.5)
|
|
|
|
____________________
|
(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.
|
1 UHERO report dated September 22, 2023:
https://uhero.hawaii.edu/wp-content/uploads/2023/09/23Q3_Forecast.pdf
2 Total debt is presented before any
reduction for deferred loan fees as required by GAAP.
View original content to download
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SOURCE Matson, Inc.