- 1Q24 EPS of $1.04 versus
$0.94 in 1Q23
- 1Q24 Net Income of $36.1 million versus $34.0 million in 1Q23
- 1Q24 Consolidated Operating Income of $36.9 million versus $38.7
million in 1Q23
- 1Q24 EBITDA of $82.8 million
versus $81.7 million in 1Q23
- Repurchased approximately 0.4 million shares in 1Q24
- Raising outlook for Full Year 2024 Consolidated Operating
Income
HONOLULU, April 30,
2024 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX), a leading U.S. carrier in the Pacific,
today reported net income of $36.1 million, or $1.04 per diluted share, for the quarter ended
March 31, 2024. Net income for the quarter ended
March 31, 2023 was $34.0 million, or $0.94 per diluted share. Consolidated
revenue for the first quarter 2024 was $722.1 million compared with $704.8 million for the first quarter
2023.
Matt Cox, Matson's Chairman and
Chief Executive Officer, commented, "We are off to a solid start
for the year with Ocean Transportation performing better than
expected and Logistics meeting expectations in the first
quarter. Within Ocean Transportation, our China service experienced healthy demand
coming out of a more traditional post-Lunar New Year period with a
gradual recovery of volume after factories reopened and workers
returned compared to a more accelerated increase in volume
experienced post-Lunar New Year last year. In our domestic
ocean tradelanes, we achieved a comparable level of demand in
Guam as compared to 2023, and we
saw modestly lower year-over-year volumes in Hawaii and Alaska primarily due to lower general demand
and an additional northbound sailing in the year ago period,
respectively. Logistics operating income in the first quarter
declined year-over-year due to continued market softness in
transportation brokerage."
Mr. Cox added, "Currently in the Transpacific marketplace, we
continue to see steady U.S. consumer demand, which we expect to
lead to improving demand for Matson's CLX and MAX services in 2024
as compared to 2023. Absent a significant change in the
trajectory of the U.S. economy, we expect trade demand dynamics
across most of our domestic tradelanes in 2024 to be comparable to
2023 as consumer-related spending is expected to remain largely
stable. For Ocean Transportation in 2024, we expect operating
income to be higher than the prior year's result and higher than
the previous outlook. For Logistics in 2024, we continue to
expect challenging business conditions for transportation brokerage
and expect lower year-over-year operating income. As such, we
now expect full year consolidated operating income to be modestly
higher than the level achieved in 2023."
First Quarter 2024 Discussion and Outlook for 2024
Ocean Transportation: The Company's container
volume in the Hawaii service in
the first quarter 2024 was 1.7 percent lower year-over-year.
The decrease was primarily due to lower general demand.
According to UHERO's most recent forecast report1, the
Hawaii economy is projected to
grow modestly supported by low unemployment and an increase in
construction activity and jobs for large federal and state projects
as well as home building on Oahu. Visitor arrivals are
projected to increase modestly as the tourism industry continues to
recover from the Maui wildfires
last year in addition to the continued gradual return of
international visitors. The Company expects volume in 2024 to
approach the level achieved in 2023, reflecting modest economic
growth in Hawaii and stable market
share.
In China, the Company's
container volume in the first quarter 2024 decreased
4.0 percent year-over-year. The decrease was primarily
due to a more traditional post-Lunar New Year period with a gradual
recovery of volume after factories reopened and workers returned
compared to a more accelerated increase in volume experienced
post-Lunar New Year last year. The Company achieved higher
freight rates in the first quarter 2024 as compared to the year ago
period. Currently in the Transpacific marketplace, the
Company continues to see steady U.S. consumer demand, which it
expects to lead to improving demand for its CLX and MAX services in
2024 as compared to 2023. The Company also expects average
freight rates in 2024 to be higher than the levels achieved in
2023.
In Guam, the Company's
container volume in the first quarter 2024 was flat
year-over-year. In the near-term, the Company expects
continued improvement in the Guam
economy with a low unemployment rate and a modest increase in
tourism. For 2024, the Company expects volume to approximate
the level achieved last year.
In Alaska, the Company's
container volume for the first quarter 2024 decreased
5.1 percent year-over-year primarily due to one less
northbound sailing. In the near-term, the Company expects
continued economic growth in Alaska supported by a low unemployment rate,
jobs growth and lower levels of inflation. For 2024, the
Company expects volume to approximate the level achieved last
year.
The contribution in the first quarter 2024 from the Company's
SSAT joint venture investment was $0.4 million, or $2.2 million higher than the first quarter
2023. The increase was primarily due to higher lift
volume. For 2024, the Company expects the contribution from
SSAT to be higher than the levels achieved in 2023 due to an
expected increase in lift volumes.
As a result of first quarter performance and the outlook trends
noted above, the Company expects full year 2024 Ocean
Transportation operating income to be higher than the $294.8 million achieved in 2023 and higher
than the previous outlook. In the second quarter 2024, the
Company expects Ocean Transportation operating income to be
moderately higher than the level achieved in the second quarter
2023.
Logistics: In the first quarter 2024, operating
income for the Company's Logistics segment was $9.3 million, or $1.6 million lower compared to the level
achieved in the first quarter 2023. The decrease was
primarily due to continued market softness in transportation
brokerage. For 2024, the Company expects challenging business
conditions for transportation brokerage and expects operating
income to be lower than the $48.0
million achieved in 2023. In the second quarter 2024,
the Company expects operating income to be lower than the level
achieved in the second quarter 2023.
Consolidated Operating Income: For full year 2024,
the Company expects consolidated operating income to be modestly
higher than the $342.8 million
achieved in 2023 and expects comparable seasonality to the prior
year. For the second quarter 2024, the Company expects
consolidated operating income to be modestly higher than the
$96.7 million achieved in the
second quarter 2023.
Depreciation and Amortization: For the full year
2024, the Company expects depreciation and amortization expense to
be approximately $180 million, inclusive of dry-docking
amortization of approximately $27 million.
Interest Income: The Company expects interest
income for the full year 2024 to be approximately
$45 million. The increase in expected interest income
from the prior outlook is due to the receipt on April 19, 2024 of $10.2
million in interest income earned on the federal tax refund
related to the Company's 2021 federal tax return.
Interest Expense: The Company expects interest
expense for the full year 2024 to be approximately
$8 million.
Other Income (Expense): The Company expects full
year 2024 other income (expense) to be approximately
$7 million in income, which is attributable to the
amortization of certain components of net periodic benefit costs or
gains related to the Company's pension and post-retirement
plans.
Income Taxes: In the first quarter 2024, the
Company's effective tax rate was 20.3 percent. For the
full year 2024, the Company expects its effective tax rate to be
approximately 22.0 percent.
Capital and Vessel Dry-docking Expenditures: For
the first quarter 2024, the Company made capital expenditure
payments excluding vessel construction expenditures of $54.2 million, capitalized vessel
construction expenditures of $1.1 million, and dry-docking payments of
$5.2 million. For the full
year 2024, the Company expects to make other capital expenditure
payments, including maintenance capital expenditures, of
approximately $110 to
$120 million, new vessel construction expenditures (including
capitalized interest and owner's items) of approximately
$75 million, LNG installations and reengining on existing
vessels of approximately $70 to
$80 million, and dry-docking payments
of approximately $35 million.
Results By
Segment
Ocean Transportation
— Three months ended March 31, 2024 compared with
2023
|
|
|
Three Months Ended
March 31,
|
|
(Dollars in millions)
|
|
2024
|
|
2023
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
579.0
|
|
$
|
551.0
|
|
$
|
28.0
|
|
5.1
|
%
|
Operating costs and
expenses
|
|
|
(551.4)
|
|
|
(523.2)
|
|
|
(28.2)
|
|
5.4
|
%
|
Operating
income
|
|
$
|
27.6
|
|
$
|
27.8
|
|
$
|
(0.2)
|
|
(0.7)
|
%
|
Operating income
margin
|
|
|
4.8
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
34,600
|
|
|
35,200
|
|
|
(600)
|
|
(1.7)
|
%
|
Hawaii
automobiles
|
|
|
6,400
|
|
|
9,400
|
|
|
(3,000)
|
|
(31.9)
|
%
|
Alaska
containers
|
|
|
18,800
|
|
|
19,800
|
|
|
(1,000)
|
|
(5.1)
|
%
|
China
containers
|
|
|
28,900
|
|
|
30,100
|
|
|
(1,200)
|
|
(4.0)
|
%
|
Guam
containers
|
|
|
4,900
|
|
|
4,900
|
|
|
—
|
|
—
|
%
|
Other containers
(2)
|
|
|
3,600
|
|
|
4,100
|
|
|
(500)
|
|
(12.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 increased $28.0 million, or 5.1 percent, during
the three months ended March 31, 2024, compared with the three
months ended March 31, 2023. The increase was primarily
due to higher freight rates in China and the domestic tradelanes, partially
offset by lower volume in China,
Hawaii, and Alaska, and lower fuel-related surcharge
revenue.
On a year-over-year FEU basis, Hawaii container volume decreased
1.7 percent primarily due to lower general demand;
Alaska volume decreased
5.1 percent primarily due to one less northbound sailing;
China volume was 4.0 percent
lower primarily due to a more traditional post-Lunar New Year
period with a gradual recovery of volume after factories reopened
and workers returned compared to a more accelerated increase in
volume experienced post-Lunar New Year last year; Guam volume was flat; and Other containers
volume decreased 12.2 percent.
Ocean Transportation operating income decreased $0.2 million, or 0.7 percent, during the
three months ended March 31, 2024, compared with the three
months ended March 31, 2023. The decrease was primarily
due to higher vessel operating costs, including fuel-related
expenses, and the timing of fuel-related surcharge collections,
partially offset by higher freight rates in China.
The Company's SSAT terminal joint venture investment contributed
$0.4 million during the three months
ended March 31, 2024, compared to a
loss of $1.8 million during the three
months ended March 31, 2023.
The increase was primarily driven by higher lift volume.
Logistics — Three
months ended March 31, 2024 compared with 2023
|
|
|
|
Three Months Ended
March 31,
|
|
(Dollars in millions)
|
|
2024
|
|
2023
|
|
Change
|
|
Logistics
revenue
|
|
$
|
143.1
|
|
$
|
153.8
|
|
$
|
(10.7)
|
|
(7.0)
|
%
|
Operating costs and
expenses
|
|
|
(133.8)
|
|
|
(142.9)
|
|
|
9.1
|
|
(6.4)
|
%
|
Operating
income
|
|
$
|
9.3
|
|
$
|
10.9
|
|
$
|
(1.6)
|
|
(14.7)
|
%
|
Operating income
margin
|
|
|
6.5
|
%
|
|
7.1
|
%
|
|
|
|
|
|
Logistics revenue decreased $10.7 million, or 7.0 percent, during
the three months ended March 31, 2024, compared with the three
months ended March 31, 2023. The decrease was primarily
due to lower revenue in transportation brokerage.
Logistics operating income decreased $1.6 million, or 14.7 percent, during
the three months ended March 31, 2024, compared with the three
months ended March 31, 2023. The decrease was primarily
due to a lower contribution from transportation brokerage.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $108.1 million from $134.0
million at December 31, 2023
to $25.9 million at March 31, 2024. As of March 31, 2024, the Company's Capital
Construction Fund had a balance of $606.8
million consisting of cash and cash equivalents and
investments in fixed-rate U.S. Treasuries. Matson generated
net cash from operating activities of $36.6
million during the three months ended March 31, 2024, compared to $96.7 million during the three months ended
March 31, 2023. Capital
expenditures totaled $55.3 million
for the three months ended March 31,
2024, compared with $35.9
million for the three months ended March 31, 2023. Total debt decreased by
$10.1 million during the three months
to $430.5 million as of March 31, 2024, of which $390.8 million was classified as long-term
debt.2 As of March 31,
2024, Matson had available borrowings under its revolving
credit facility of $644.2
million.
During the first quarter 2024, Matson repurchased approximately
0.4 million shares for a total cost of $48.9 million. As of the end of the
first quarter 2024, there were approximately 2.0 million
shares remaining in the Company's share repurchase program.
Matson's Board of Directors also declared a cash dividend of
$0.32 per share payable on
June 6, 2024 to all shareholders of record as of the close of
business on May 9, 2024.
On April 19, 2024, Matson received
a federal tax refund related to the Company's 2021 federal tax
return of $118.6 million as well as
$10.2 million in interest income
earned on the tax refund.
Teleconference and Webcast
A conference call is scheduled on April 30, 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 first
quarter results.
Date of Conference Call: Tuesday, April
30, 2024
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/BI7848e398977d44feb1ab2582b428fff1
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 outlook; operating income;
depreciation and amortization, including dry-docking amortization;
interest income; interest expense; other income (expense); tax
rate; capital and vessel dry-docking expenditures; cash flow
expectations and uses of cash and cash flows; volume, freight rates
and demand; seasonality trends; consumer demand; consumer-related
spending; trade dynamics; economic growth and drivers in
Hawaii, Alaska and Guam; market share; tourism levels; recovery
from the Maui wildfires;
unemployment rates; job growth; construction activity; inflation
levels; contribution from and lift volume at SSAT; business
conditions for transportation brokerage; vessel transit times;
timing of liquified natural gas installations on certain vessels;
refleeting initiatives; timing and amount of milestone payments and
related costs; and the timing, manner and volume of repurchases of
common stock 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 changes in its application,
or the Company were determined not to be a United States citizen under the Jones Act;
changes in macroeconomic conditions, geopolitical developments, or
governmental policies; our ability to offer a differentiated
service in China for which
customers are willing to pay a significant premium; new or
increased competition; our relationship with customers and vendors
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 regulations and
stakeholder expectations related to sustainability matters; timely
or successful completion of fleet upgrade initiatives; the
Company's vessel construction agreements with Philly Shipyard; the
occurrence of weather, natural disasters, maritime accidents, spill
events and other physical and operating risks; transitional and
other risks arising from climate change; actual or threatened
health epidemics, outbreaks of disease, pandemics or other major
health crises; significant operating agreements and leases that may
not be renewed/replaced on favorable or acceptable terms; any
unanticipated dry-docking or repair costs; 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, actual or threatened terrorist
attacks, efforts to combat terrorism and other acts of violence;
consummating and integrating acquisitions; work stoppages or other
labor disruptions caused by our unionized workers and other workers
or their unions in related industries; 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, disruptions of the credit
markets, changes in interest rates and our future financial
performance; our ability to access the debt capital markets;
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,
2023 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)
|
|
2024
|
|
2023
|
Operating
Revenue:
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
579.0
|
|
$
|
551.0
|
Logistics
|
|
|
143.1
|
|
|
153.8
|
Total Operating
Revenue
|
|
|
722.1
|
|
|
704.8
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
Operating
costs
|
|
|
(612.2)
|
|
|
(597.5)
|
Income (Loss) from
SSAT
|
|
|
0.4
|
|
|
(1.8)
|
Selling, general and
administrative
|
|
|
(73.4)
|
|
|
(66.8)
|
Total Costs and
Expenses
|
|
|
(685.2)
|
|
|
(666.1)
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
36.9
|
|
|
38.7
|
Interest
income
|
|
|
8.8
|
|
|
8.2
|
Interest
expense
|
|
|
(2.2)
|
|
|
(4.5)
|
Other income
(expense), net
|
|
|
1.8
|
|
|
1.8
|
Income before
Taxes
|
|
|
45.3
|
|
|
44.2
|
Income
taxes
|
|
|
(9.2)
|
|
|
(10.2)
|
Net Income
|
|
$
|
36.1
|
|
$
|
34.0
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
1.05
|
|
$
|
0.94
|
Diluted Earnings Per
Share
|
|
$
|
1.04
|
|
$
|
0.94
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
34.4
|
|
|
36.1
|
Diluted
|
|
|
34.6
|
|
|
36.3
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
March 31,
|
|
December 31,
|
(In millions)
|
|
2024
|
|
2023
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25.9
|
|
$
|
134.0
|
Other current
assets
|
|
|
486.1
|
|
|
468.3
|
Total current
assets
|
|
|
512.0
|
|
|
602.3
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
85.2
|
|
|
85.5
|
Property and
equipment, net
|
|
|
2,115.7
|
|
|
2,089.9
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
172.5
|
|
|
176.4
|
Capital Construction
Fund
|
|
|
606.8
|
|
|
599.4
|
Other long-term
assets
|
|
|
399.9
|
|
|
413.3
|
Total long-term
assets
|
|
|
3,707.9
|
|
|
3,692.3
|
Total
assets
|
|
$
|
4,219.9
|
|
$
|
4,294.6
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
39.7
|
|
$
|
39.7
|
Other current
liabilities
|
|
|
490.8
|
|
|
522.6
|
Total current
liabilities
|
|
|
530.5
|
|
|
562.3
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
379.4
|
|
|
389.3
|
Deferred income
taxes
|
|
|
674.8
|
|
|
669.3
|
Other long-term
liabilities
|
|
|
261.4
|
|
|
273.0
|
Total long-term
liabilities
|
|
|
1,315.6
|
|
|
1,331.6
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,373.8
|
|
|
2,400.7
|
Total liabilities and
shareholders' equity
|
|
$
|
4,219.9
|
|
$
|
4,294.6
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
(In millions)
|
|
2024
|
|
2023
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
36.1
|
|
$
|
34.0
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
37.6
|
|
|
35.8
|
|
Amortization of
operating lease right of use assets
|
|
|
33.9
|
|
|
39.6
|
|
Deferred income
taxes
|
|
|
2.3
|
|
|
(1.4)
|
|
Share-based
compensation expense
|
|
|
5.7
|
|
|
4.6
|
|
(Income) loss from
SSAT
|
|
|
(0.4)
|
|
|
1.8
|
|
Distributions from
SSAT
|
|
|
14.0
|
|
|
—
|
|
Other
|
|
|
(2.1)
|
|
|
(0.1)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(23.7)
|
|
|
(14.5)
|
|
Deferred dry-docking
payments
|
|
|
(5.2)
|
|
|
(2.4)
|
|
Deferred dry-docking
amortization
|
|
|
6.8
|
|
|
6.2
|
|
Prepaid expenses and
other assets
|
|
|
2.4
|
|
|
45.7
|
|
Accounts payable,
accruals and other liabilities
|
|
|
(34.3)
|
|
|
(8.4)
|
|
Operating lease
liabilities
|
|
|
(34.6)
|
|
|
(39.4)
|
|
Other long-term
liabilities
|
|
|
(1.9)
|
|
|
(4.8)
|
|
Net cash provided by
operating activities
|
|
|
36.6
|
|
|
96.7
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(1.1)
|
|
|
(0.4)
|
|
Capital expenditures
(excluding vessel construction expenditures)
|
|
|
(54.2)
|
|
|
(35.5)
|
|
Proceeds from disposal
of property and equipment, net
|
|
|
2.3
|
|
|
0.3
|
|
Payment for intangible
asset acquisition
|
|
|
—
|
|
|
(12.4)
|
|
Cash deposits and
interest into the Capital Construction Fund, net
|
|
|
(6.0)
|
|
|
(105.5)
|
|
Net cash used in
investing activities
|
|
|
(59.0)
|
|
|
(153.5)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(10.1)
|
|
|
(40.8)
|
|
Dividends
paid
|
|
|
(11.1)
|
|
|
(11.3)
|
|
Repurchase of Matson
common stock
|
|
|
(47.3)
|
|
|
(40.0)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(17.2)
|
|
|
(12.4)
|
|
Net cash used in
financing activities
|
|
|
(85.7)
|
|
|
(104.5)
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash,
Cash Equivalents and Restricted Cash
|
|
|
(108.1)
|
|
|
(161.3)
|
|
Cash and Cash
Equivalents, and Restricted Cash, Beginning of the
Period
|
|
|
136.3
|
|
|
253.7
|
|
Cash and Cash
Equivalents, and Restricted Cash, End of the Period
|
|
$
|
28.2
|
|
$
|
92.4
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash, End of the Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
25.9
|
|
$
|
88.5
|
|
Restricted
Cash
|
|
|
2.3
|
|
|
3.9
|
|
Total Cash and Cash
Equivalents, and Restricted Cash, End of the Period
|
|
$
|
28.2
|
|
$
|
92.4
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
0.5
|
|
$
|
5.0
|
|
Income tax payments
(refunds), net
|
|
$
|
1.1
|
|
$
|
(30.3)
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
16.0
|
|
$
|
5.1
|
|
Non-cash payment for
intangible asset acquisition
|
|
$
|
—
|
|
$
|
4.1
|
|
MATSON, INC.
AND SUBSIDIARIES
Net Income to
EBITDA Reconciliations
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
Last Twelve
|
(In millions)
|
|
|
2024
|
|
2023
|
|
Change
|
|
Months
|
Net Income
|
|
|
$
|
36.1
|
|
$
|
34.0
|
|
$
|
2.1
|
|
$
|
299.2
|
Subtract:
|
Interest
income
|
|
|
(8.8)
|
|
|
(8.2)
|
|
|
(0.6)
|
|
|
(36.6)
|
Add:
|
Interest
expense
|
|
|
2.2
|
|
|
4.5
|
|
|
(2.3)
|
|
|
9.9
|
Add:
|
Income taxes
|
|
|
9.2
|
|
|
10.2
|
|
|
(1.0)
|
|
|
74.9
|
Add:
|
Depreciation and
amortization
|
|
|
37.3
|
|
|
35.0
|
|
|
2.3
|
|
|
144.5
|
Add:
|
Dry-dock
amortization
|
|
|
6.8
|
|
|
6.2
|
|
|
0.6
|
|
|
25.9
|
EBITDA (1)
|
|
|
$
|
82.8
|
|
$
|
81.7
|
|
$
|
1.1
|
|
$
|
517.8
|
|
|
|
|
|
(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 February 23, 2024:
https://uhero.hawaii.edu/wp-content/uploads/2024/02/24Q1_Forecast.pdf
|
2 Total debt
is presented before any reduction for deferred loan fees as
required by GAAP.
|
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SOURCE Matson, Inc.