- Expects 4Q23 operating income for Ocean Transportation to be
$61.0 to $66.0 million
- Expects 4Q23 operating income for Logistics to be $8.0 to $9.0 million
- Expects 4Q23 net income and diluted EPS to be $57.7 to $62.2 million and $1.65 to $1.78,
respectively
- Repurchased approximately 0.5 million shares in 4Q23
- Announces fourth quarter earnings call date on
February 20, 2024
HONOLULU, Hawaii, Jan. 18,
2024 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX) today announces preliminary fourth quarter
financial results, provides a business update and announces that
its fourth quarter earnings call will be held on February 20,
2024.
"Matson's Ocean Transportation and Logistics business segments
performed well in the fourth quarter, capping off a solid year for
both business segments" said Chairman and Chief Executive Officer
Matt Cox. "Our China service
experienced solid freight demand with higher year-over-year volume
but lower year-over-year freight rates, which when combined with
higher operating costs across all tradelanes resulted in a
year-over-year decline in Ocean Transportation operating income.
Currently in the Transpacific marketplace, we continue to see
steady U.S. consumer demand, which we expect to lead to similar
demand for Matson's CLX and CLX+ services in 2024 as in 2023.
Absent a significant change in the trajectory of the U.S. economy,
we expect trade dynamics across all our tradelanes in 2024 to be
comparable to 2023 as consumer-related spending activity is
expected to remain stable."
Mr. Cox added, "In our domestic ocean tradelanes, we saw lower
year-over-year volumes in Hawaii
and Alaska and higher
year-over-year volume in Guam
compared to the levels in the same period last year. The
year-over-year volume declines in Hawaii and Alaska were primarily due to lower general
demand and lower seafood volume, respectively. The year-over-year
volume increase in Guam was
primarily driven by higher general demand. In Logistics, operating
income decreased year-over-year primarily due to a lower
contribution from transportation brokerage. As a result, Matson
expects fourth quarter operating income for Ocean Transportation of
$61.0 to $66.0
million and Logistics operating income of $8.0 to $9.0
million. We also expect fourth quarter 2023 net income and
diluted EPS to be $57.7 to
$62.2 million and $1.65 to $1.78,
respectively."
Fourth Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended December 31, 2023 compared to
the three months ended December 31, 2022 and on a FEU
basis:
- Hawaii container volume
decreased 1.9 percent primarily due to lower general
demand;
- Alaska container volume
decreased 0.6 percent due to lower export seafood volume from
the Alaska-Asia Express service ("AAX"), partially offset by higher
northbound volume due to an additional sailing and higher
southbound volume due to higher domestic seafood volume;
- China container volume was
23.3 percent higher primarily due to higher demand for our
China service resulting in higher
volumes for both CLX and CLX+;
- Guam container volume was
2.0 percent higher primarily due to higher general demand;
and
- Other container volume decreased 6.0 percent.
Effective Income Tax Rate, Liquidity, Debt and Share
Repurchases
The effective income tax rate for the fourth quarter of 2023 is
estimated to be approximately 26.0 percent, which is higher than
the approximately 23 percent previously forecast primarily due to
discrete tax adjustments.
Matson's cash and cash equivalents as of December 31, 2023
was approximately $134.0 million, which excludes $599.4 million in cash on deposit within the
Capital Construction Fund ("CCF"). Total debt as of December 31, 2023 was $440.6 million.(3)
During the fourth quarter of 2023, Matson repurchased
approximately 0.5 million shares for a total cost of $47.9 million. As of December 31, 2023, the Company had approximately
2.5 million shares remaining in its share repurchase
program.
A slide presentation that accompanies this press release is
available on the Company's website at www.matson.com, under
Investors.
Teleconference and Webcast
A conference call is scheduled on February 20, 2024 at
4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer,
and Joel Wine, Executive Vice
President and Chief Financial Officer, will discuss Matson's fourth
quarter results.
|
|
Date of Conference
Call:
|
Tuesday,
February 20, 2024
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 11:30 a.m. HT
|
The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors.
Participants may register for the conference call at:
https://register.vevent.com/register/BI699bc0b39e6a47fc97bb30c15cb03937
Registered participants will receive the conference call dial-in
number and a unique PIN code to access the live event. While not
required, it is recommended you join 10 minutes prior to the event
starting time. A replay of the conference call will be available
approximately two hours after the event by accessing the webcast
link at www.matson.com, under Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of
ocean transportation and logistics services. Matson provides a
vital lifeline of ocean freight transportation services to the
domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in
Micronesia. Matson also operates
premium, expedited services from China to Long Beach,
California, provides service to Okinawa, Japan and various islands in the
South Pacific, and operates an international export service from
Dutch Harbor to Asia. The Company's fleet of owned and
chartered vessels includes containerships, combination container
and roll-on/roll-off ships and custom-designed barges. Matson
Logistics, established in 1987, extends the geographic reach of
Matson's transportation network throughout North America and Asia. Its integrated, asset-light logistics
services include rail intermodal, highway brokerage,
warehousing, freight consolidation, supply chain management, and
freight forwarding to Alaska.
Additional information about the Company is available at
www.matson.com.
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; consumer demand; consumer-related spending activity;
economic uncertainty; trade dynamics; and demand for Matson's CLX
and CLX+ services. 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 ability of Philly Shipyard to
construct and deliver the new Aloha Class vessels on the
contemplated timeframe; 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.
(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)
|
Other containers
includes containers from services in various islands in Micronesia
and the South Pacific, and Okinawa, Japan.
|
(3)
|
Total debt is presented
before any reduction for deferred loan fees as required by
GAAP.
|
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SOURCE Matson, Inc.