- 4Q23 EPS of $1.78
- Full Year 2023 EPS of $8.32
- Full Year 2023 Net Income and EBITDA of $297.1 million and $516.7
million, respectively
- 2024 Consolidated Operating Income expected to approximate 2023
level
- 1Q24 Consolidated Operating Income expected to be lower than
1Q23 level
HONOLULU, Feb. 20,
2024 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX), a leading U.S. carrier in the Pacific,
today reported net income of $62.4 million, or $1.78 per diluted share, for the quarter ended
December 31, 2023. Net income for the quarter ended
December 31, 2022 was $78.0 million, or $2.10 per diluted share. Consolidated
revenue for the fourth quarter 2023 was $788.9 million compared with $801.6 million for the fourth quarter
2022.
"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. Logistics operating income in the quarter also
declined year-over-year, which contributed to the year-over-year
decline in consolidated operating income. For the full year
2023, our consolidated operating income declined primarily due to
lower volume and freight rates in our China service as the Transpacific marketplace
transitioned from the pandemic period."
Mr. Cox added, "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 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, leading to year-over-year growth in
Ocean Transportation operating income. For Logistics in 2024,
we expect challenging business conditions for transportation
brokerage at least through the first half of the year, which we
expect to lead to lower year-over-year business segment operating
income. As such, for 2024 we expect consolidated operating
income to approximate the level achieved last year."
Fourth Quarter 2023 Discussion and Outlook for 2024
Ocean Transportation: The Company's container
volume in the Hawaii service in
the fourth quarter 2023 was 1.9 percent lower
year-over-year. The decrease was primarily due to lower
general demand. According to UHERO's most recent forecast
report[1], the Hawaii economy is projected to grow modestly
despite challenged growth in visitor arrivals primarily due to
reduced tourism to Maui as a
result of the wildfires last year and sluggish recovery of
international tourism. The Company expects volume in 2024 to
be comparable to the level in 2023, reflecting modest economic
growth in Hawaii and stable market
share.
In China, the Company's
container volume in the fourth quarter 2023 increased
23.3 percent year-over-year. The increase was primarily
due to higher demand for the China
service resulting in higher volumes for both CLX and CLX+.
The Company achieved lower freight rates in the fourth quarter 2023
as compared to the prior year period. Currently in the
Transpacific marketplace, the Company continues to see steady U.S.
consumer demand, which the Company expects to lead to similar
demand for Matson's CLX and CLX+ services in 2024 as in 2023.
The Company also expects average freight rates in 2024 to be
modestly higher than the levels achieved in 2023.
In Guam, the Company's
container volume in the fourth quarter 2023 increased
2.0 percent year-over-year primarily due to higher 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.
For 2024, the Company expects volume to approximate the level
achieved last year.
In Alaska, the Company's
container volume for the fourth quarter 2023 decreased
0.6 percent year-over-year 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. 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 fourth quarter 2023 from the Company's
SSAT joint venture investment was $4.1 million, or $3.1 million higher than the fourth quarter
2022. 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.
Absent a significant change in trajectory of the U.S. economy,
the Company expects trade dynamics across all its tradelanes in
2024 to be comparable to 2023 as consumer-related spending activity
is expected to remain stable. As such, the Company expects
full year 2024 Ocean Transportation operating income to be higher
than the $294.8 million achieved in
2023. In the first quarter 2024, the Company expects Ocean
Transportation operating income to be lower than the $27.8 million achieved in the first quarter
2023.
Logistics: In the fourth quarter 2023, operating
income for the Company's Logistics segment was $8.9 million, or $3.9 million lower compared to the level
achieved in the fourth quarter 2022. The decrease was
primarily due to a lower contribution from transportation
brokerage. For 2024, the Company expects challenging business
conditions for transportation brokerage at least through the first
half of the year, which the Company expects to lead to operating
income being lower in 2024 than the level achieved in 2023.
For the first quarter 2024, the Company expects Logistics operating
income to be lower than the $10.9
million achieved in the first quarter 2023.
Consolidated Operating Income: For full year 2024,
the Company expects consolidated operating income to approximate
the $342.8 million achieved in 2023
and expects comparable seasonality to the prior year. For the
first quarter 2024, the Company expects consolidated operating
income to be lower than the $38.7
million achieved in the first 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 $35 million.
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
other component costs related to the Company's pension and
post-retirement plans.
Income Taxes: In the fourth quarter 2023, the
Company's effective tax rate was 26.0 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 full year 2023, the Company made capital expenditure payments
excluding new builds of $195.5
million, capitalized vessel construction expenditures of
$52.9 million, and dry-docking
payments of $24.1 million. For
the full year 2024, the Company expects to make other capital
expenditure payments, including maintenance capital expenditures,
of approximately $180 to $200 million, new vessel construction
expenditures (including capitalized interest and owner's items) of
approximately $75 million, and
dry-docking payments of approximately $35
million.
Results By
Segment
|
Ocean Transportation
— Three months ended December 31, 2023 compared with
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
639.7
|
|
$
|
633.0
|
|
$
|
6.7
|
|
1.1
|
%
|
Operating costs and
expenses
|
|
|
(573.3)
|
|
|
(553.2)
|
|
|
(20.1)
|
|
3.6
|
%
|
Operating
income
|
|
$
|
66.4
|
|
$
|
79.8
|
|
$
|
(13.4)
|
|
(16.8)
|
%
|
Operating income
margin
|
|
|
10.4
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
35,400
|
|
|
36,100
|
|
|
(700)
|
|
(1.9)
|
%
|
Hawaii
automobiles
|
|
|
10,100
|
|
|
10,800
|
|
|
(700)
|
|
(6.5)
|
%
|
Alaska
containers
|
|
|
17,800
|
|
|
17,900
|
|
|
(100)
|
|
(0.6)
|
%
|
China
containers
|
|
|
34,900
|
|
|
28,300
|
|
|
6,600
|
|
23.3
|
%
|
Guam
containers
|
|
|
5,000
|
|
|
4,900
|
|
|
100
|
|
2.0
|
%
|
Other containers
(2)
|
|
|
4,700
|
|
|
5,000
|
|
|
(300)
|
|
(6.0)
|
%
|
____________________
|
(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 increased $6.7 million, or 1.1 percent, during
the three months ended December 31, 2023, compared with the
three months ended December 31, 2022. The increase was
primarily due to higher volume in China and higher revenue in Alaska and Hawaii, partially offset by lower freight
rates in China and lower
fuel-related surcharge revenue.
On a year-over-year FEU basis, Hawaii container volume decreased
1.9 percent primarily due to lower general demand;
Alaska volume decreased
0.6 percent due to lower export seafood volume from the AAX,
partially offset by higher northbound volume due to an additional
sailing and higher southbound volume due to higher domestic seafood
volume; China volume was
23.3 percent higher primarily due to higher demand resulting
in higher volumes for both CLX and CLX+; Guam volume was 2.0 percent higher
primarily due to higher general demand; and Other containers volume
decreased 6.0 percent.
Ocean Transportation operating income decreased $13.4 million during the three months ended
December 31, 2023, compared with the three months ended
December 31, 2022. The decrease was primarily due to
lower freight rates in China and
higher operating costs and expenses including fuel-related
expenses, partially offset by higher volume in China and higher contributions from
Alaska and Hawaii.
The Company's SSAT terminal joint venture investment contributed
$4.1 million during the three
months ended December 31, 2023, compared to a contribution of
$1.0 million during the three
months ended December 31, 2022. The increase was
primarily driven by higher lift revenue, partially offset by lower
demurrage revenue.
Ocean Transportation
— Year ended December 31, 2023 compared with
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
2,477.0
|
|
$
|
3,544.6
|
|
$
|
(1,067.6)
|
|
(30.1)
|
%
|
Operating costs and
expenses
|
|
|
(2,182.2)
|
|
|
(2,263.4)
|
|
|
81.2
|
|
(3.6)
|
%
|
Operating
income
|
|
$
|
294.8
|
|
$
|
1,281.2
|
|
$
|
(986.4)
|
|
(77.0)
|
%
|
Operating income
margin
|
|
|
11.9
|
%
|
|
36.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
144,000
|
|
|
148,500
|
|
|
(4,500)
|
|
(3.0)
|
%
|
Hawaii
automobiles
|
|
|
39,400
|
|
|
41,300
|
|
|
(1,900)
|
|
(4.6)
|
%
|
Alaska
containers
|
|
|
80,000
|
|
|
84,900
|
|
|
(4,900)
|
|
(5.8)
|
%
|
China
containers
|
|
|
140,700
|
|
|
163,100
|
|
|
(22,400)
|
|
(13.7)
|
%
|
Guam
containers
|
|
|
20,100
|
|
|
21,100
|
|
|
(1,000)
|
|
(4.7)
|
%
|
Other containers
(2)
|
|
|
17,500
|
|
|
22,500
|
|
|
(5,000)
|
|
(22.2)
|
%
|
____________________
|
(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 decreased $1,067.6 million, or 30.1 percent,
during the year ended December 31, 2023, compared with the
year ended December 31, 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
3.0 percent primarily due to lower general westbound demand
and lower eastbound volume; Alaska
volume decreased 5.8 percent due to lower export seafood
volume from the AAX; China volume
was 13.7 percent lower primarily due to CCX volume in the
first nine months of 2022 (the CCX service was discontinued in the
third quarter 2022); Guam volume
was 4.7 percent lower primarily due to lower general demand;
and Other containers volume decreased 22.2 percent.
Ocean Transportation operating income decreased $986.4 million during the year ended
December 31, 2023, compared with the year ended
December 31, 2022. The decrease was primarily due to
lower freight rates and volume in China and a lower contribution from SSAT,
partially offset by lower operating costs and expenses including
fuel-related expenses primarily related to the discontinuation of
the CCX service and lower fuel costs and the timing of fuel-related
surcharge collections.
The Company's SSAT terminal joint venture investment contributed
$2.2 million during the year
ended December 31, 2023, compared to a contribution of
$83.1 million during the year
ended December 31, 2022. The decrease was primarily
driven by lower demurrage revenue.
Logistics — Three
months ended December 31, 2023 compared with
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
149.2
|
|
$
|
168.6
|
|
$
|
(19.4)
|
|
(11.5)
|
%
|
Operating costs and
expenses
|
|
|
(140.3)
|
|
|
(155.8)
|
|
|
15.5
|
|
(9.9)
|
%
|
Operating
income
|
|
$
|
8.9
|
|
$
|
12.8
|
|
$
|
(3.9)
|
|
(30.5)
|
%
|
Operating income
margin
|
|
|
6.0
|
%
|
|
7.6
|
%
|
|
|
|
|
|
Logistics revenue decreased $19.4 million, or 11.5 percent, during
the three months ended December 31, 2023, compared with the
three months ended December 31, 2022. The decrease was
primarily due to lower revenue in transportation brokerage.
Logistics operating income decreased $3.9 million, or 30.5 percent, during
the three months ended December 31, 2023, compared with the
three months ended December 31, 2022. The decrease was
primarily due to a lower contribution from transportation
brokerage.
Logistics — Year
ended December 31, 2023 compared with 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2023
|
|
2022
|
|
Change
|
|
Logistics
revenue
|
|
$
|
617.6
|
|
$
|
798.4
|
|
$
|
(180.8)
|
|
(22.6)
|
%
|
Operating costs and
expenses
|
|
|
(569.6)
|
|
|
(726.0)
|
|
|
156.4
|
|
(21.5)
|
%
|
Operating
income
|
|
$
|
48.0
|
|
$
|
72.4
|
|
$
|
(24.4)
|
|
(33.7)
|
%
|
Operating income
margin
|
|
|
7.8
|
%
|
|
9.1
|
%
|
|
|
|
|
|
Logistics revenue decreased $180.8 million, or 22.6 percent, during
the year ended December 31, 2023, compared with the year ended
December 31, 2022. The decrease was primarily due to
lower revenue in transportation brokerage.
Logistics operating income decreased $24.4 million, or 33.7 percent, during
the year ended December 31, 2023, compared with the year ended
December 31, 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 $115.8 million from $249.8 million at December 31, 2022
to $134.0 million at December 31, 2023, which
excludes $599.4 million in cash
and interest deposited in the Capital Construction Fund.
Matson generated net cash from operating activities of $510.5 million during the year ended
December 31, 2023, compared to $1,271.9 million during the year ended
December 31, 2022. Capital expenditures totaled
$248.4 million for the year
ended December 31, 2023, compared with $209.3 million for the year ended
December 31, 2022. Total debt decreased by $76.9 million during the year to
$440.6 million as of
December 31, 2023, of which $400.9 million was classified as long-term
debt.[2] As of December 31, 2023,
Matson had available borrowings under its revolving credit facility
of $644.2 million.
During the fourth quarter 2023, Matson repurchased approximately
0.5 million shares for a total cost of $47.9 million. As of the end of the
fourth quarter 2023, there were approximately 2.5 million
shares remaining in its share repurchase program. For the
full year 2023, Matson repurchased approximately 2.1 million shares
for a total cost of $158.2
million. Matson's Board of Directors also declared a
cash dividend of $0.32 per share
payable on March 7, 2024 to all shareholders of record as of
the close of business on February 8, 2024.
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 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 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 activity; trade dynamics; economic growth and drivers in
Hawaii, Alaska and Guam; market share; tourism levels; recovery
from the Maui wildfires;
unemployment rates; job growth; inflation levels; supply chain
disruptions; contribution from and lift volume at SSAT; business
conditions for transportation brokerage; timing, amount and sources
of milestone payments; contributions to the CCF; vessel transit
times; fleet deployment; timing of liquified natural gas
installations on certain vessels; refleeting initiatives; timing
and amount of tax refunds; energy-related exploration and
production activity; infrastructure investments by the Federal
government; oil prices; organic growth opportunities; and the
timing, manner and voume 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 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
|
|
Years Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions, except per
share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
639.7
|
|
$
|
633.0
|
|
$
|
2,477.0
|
|
$
|
3,544.6
|
Logistics
|
|
|
149.2
|
|
|
168.6
|
|
|
617.6
|
|
|
798.4
|
Total Operating
Revenue
|
|
|
788.9
|
|
|
801.6
|
|
|
3,094.6
|
|
|
4,343.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(644.4)
|
|
|
(641.0)
|
|
|
(2,470.7)
|
|
|
(2,811.5)
|
Income from
SSAT
|
|
|
4.1
|
|
|
1.0
|
|
|
2.2
|
|
|
83.1
|
Selling, general and
administrative
|
|
|
(73.3)
|
|
|
(69.0)
|
|
|
(283.3)
|
|
|
(261.0)
|
Total Costs and
Expenses
|
|
|
(713.6)
|
|
|
(709.0)
|
|
|
(2,751.8)
|
|
|
(2,989.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
75.3
|
|
|
92.6
|
|
|
342.8
|
|
|
1,353.6
|
Interest
income
|
|
|
9.8
|
|
|
6.9
|
|
|
36.0
|
|
|
8.2
|
Interest
expense
|
|
|
(2.4)
|
|
|
(3.7)
|
|
|
(12.2)
|
|
|
(18.0)
|
Other income
(expense), net
|
|
|
1.6
|
|
|
2.2
|
|
|
6.4
|
|
|
8.5
|
Income before
Taxes
|
|
|
84.3
|
|
|
98.0
|
|
|
373.0
|
|
|
1,352.3
|
Income
taxes
|
|
|
(21.9)
|
|
|
(20.0)
|
|
|
(75.9)
|
|
|
(288.4)
|
Net Income
|
|
$
|
62.4
|
|
$
|
78.0
|
|
$
|
297.1
|
|
$
|
1,063.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
1.80
|
|
$
|
2.11
|
|
$
|
8.42
|
|
$
|
27.28
|
Diluted Earnings Per
Share
|
|
$
|
1.78
|
|
$
|
2.10
|
|
$
|
8.32
|
|
$
|
27.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34.7
|
|
|
36.9
|
|
|
35.3
|
|
|
39.0
|
Diluted
|
|
|
35.1
|
|
|
37.2
|
|
|
35.7
|
|
|
39.3
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
134.0
|
|
$
|
249.8
|
Other current
assets
|
|
|
468.3
|
|
|
509.8
|
Total current
assets
|
|
|
602.3
|
|
|
759.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
85.5
|
|
|
81.2
|
Property and
equipment, net
|
|
|
2,089.9
|
|
|
1,962.5
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
176.4
|
|
|
174.9
|
Capital Construction
Fund
|
|
|
599.4
|
|
|
518.2
|
Other long-term
assets
|
|
|
413.3
|
|
|
505.8
|
Total long-term
assets
|
|
|
3,692.3
|
|
|
3,570.4
|
Total
assets
|
|
$
|
4,294.6
|
|
$
|
4,330.0
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
39.7
|
|
$
|
76.9
|
Other current
liabilities
|
|
|
522.6
|
|
|
504.7
|
Total current
liabilities
|
|
|
562.3
|
|
|
581.6
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
389.3
|
|
|
427.7
|
Deferred income
taxes
|
|
|
669.3
|
|
|
646.5
|
Other long-term
liabilities
|
|
|
273.0
|
|
|
377.3
|
Total long-term
liabilities
|
|
|
1,331.6
|
|
|
1,451.5
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,400.7
|
|
|
2,296.9
|
Total liabilities and
shareholders' equity
|
|
$
|
4,294.6
|
|
$
|
4,330.0
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(In millions)
|
|
2023
|
|
2022
|
|
2021
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
297.1
|
|
$
|
1,063.9
|
|
$
|
927.4
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
144.4
|
|
|
141.3
|
|
|
135.9
|
|
Amortization of
operating lease right of use assets
|
|
|
142.0
|
|
|
153.0
|
|
|
103.3
|
|
Deferred income
taxes
|
|
|
19.6
|
|
|
90.2
|
|
|
33.2
|
|
Loss (Gain) on
disposal of property and equipment
|
|
|
0.6
|
|
|
(1.5)
|
|
|
(0.8)
|
|
Share-based
compensation expense
|
|
|
23.8
|
|
|
18.3
|
|
|
19.3
|
|
Income from
SSAT
|
|
|
(2.2)
|
|
|
(83.1)
|
|
|
(56.3)
|
|
Distributions from
SSAT
|
|
|
—
|
|
|
47.3
|
|
|
46.9
|
|
Other
|
|
|
(2.7)
|
|
|
—
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(10.9)
|
|
|
74.6
|
|
|
(90.3)
|
|
Deferred dry-docking
payments
|
|
|
(24.1)
|
|
|
(25.7)
|
|
|
(36.3)
|
|
Deferred dry-docking
amortization
|
|
|
25.3
|
|
|
24.9
|
|
|
24.3
|
|
Prepaid expenses and
other assets
|
|
|
33.5
|
|
|
(45.2)
|
|
|
(48.1)
|
|
Accounts payable,
accruals and other liabilities
|
|
|
10.9
|
|
|
(31.7)
|
|
|
39.6
|
|
Operating lease
liabilities
|
|
|
(144.8)
|
|
|
(154.1)
|
|
|
(99.7)
|
|
Other long-term
liabilities
|
|
|
(2.0)
|
|
|
(0.3)
|
|
|
(14.3)
|
|
Net cash provided by
operating activities
|
|
|
510.5
|
|
|
1,271.9
|
|
|
984.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(52.9)
|
|
|
(62.4)
|
|
|
(14.9)
|
|
Capital expenditures
(excluding vessel construction expenditures)
|
|
|
(195.5)
|
|
|
(146.9)
|
|
|
(310.4)
|
|
Proceeds from disposal
of property and equipment
|
|
|
1.2
|
|
|
1.2
|
|
|
1.9
|
|
Payments for
intangible asset acquisitions
|
|
|
(12.4)
|
|
|
(3.0)
|
|
|
—
|
|
Cash and interest
deposits into Capital Construction Fund
|
|
|
(128.5)
|
|
|
(582.8)
|
|
|
(31.2)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
49.9
|
|
|
64.6
|
|
|
31.2
|
|
Net cash used in
investing activities
|
|
|
(338.2)
|
|
|
(729.3)
|
|
|
(323.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(76.9)
|
|
|
(111.5)
|
|
|
(59.3)
|
|
Proceeds from
revolving credit facility
|
|
|
—
|
|
|
—
|
|
|
304.3
|
|
Repayments of
revolving credit facility
|
|
|
—
|
|
|
—
|
|
|
(376.1)
|
|
Payment of financing
costs
|
|
|
—
|
|
|
—
|
|
|
(3.0)
|
|
Dividends
paid
|
|
|
(45.0)
|
|
|
(48.0)
|
|
|
(45.9)
|
|
Repurchase of Matson
common stock
|
|
|
(155.2)
|
|
|
(397.0)
|
|
|
(198.3)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(12.6)
|
|
|
(20.1)
|
|
|
(14.4)
|
|
Net cash used in
financing activities
|
|
|
(289.7)
|
|
|
(576.6)
|
|
|
(392.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase
in Cash, Cash Equivalents and Restricted Cash
|
|
|
(117.4)
|
|
|
(34.0)
|
|
|
268.0
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Year
|
|
|
253.7
|
|
|
287.7
|
|
|
19.7
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Year
|
|
$
|
136.3
|
|
$
|
253.7
|
|
$
|
287.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents, and Restricted Cash, at End of the
Year:
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
134.0
|
|
$
|
249.8
|
|
$
|
282.4
|
|
Restricted
Cash
|
|
|
2.3
|
|
|
3.9
|
|
|
5.3
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
136.3
|
|
$
|
253.7
|
|
$
|
287.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
11.1
|
|
$
|
16.2
|
|
$
|
19.3
|
|
Income tax paid, net
of income tax refunds
|
|
$
|
7.5
|
|
$
|
215.2
|
|
$
|
241.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
10.8
|
|
$
|
5.5
|
|
$
|
6.4
|
|
Non-cash payments for
intangible asset acquisitions
|
|
$
|
2.7
|
|
$
|
2.2
|
|
$
|
—
|
|
MATSON, INC.
AND SUBSIDIARIES
|
Net Income to
EBITDA Reconciliations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
Net Income
|
|
|
$
|
62.4
|
|
$
|
78.0
|
|
$
|
(15.6)
|
Subtract:
|
Interest
income
|
|
|
(9.8)
|
|
|
(6.9)
|
|
|
(2.9)
|
Add:
|
Interest
expense
|
|
|
2.4
|
|
|
3.7
|
|
|
(1.3)
|
Add:
|
Income taxes
|
|
|
21.9
|
|
|
20.0
|
|
|
1.9
|
Add:
|
Depreciation and
amortization
|
|
|
35.8
|
|
|
35.3
|
|
|
0.5
|
Add:
|
Dry-dock
amortization
|
|
|
6.7
|
|
|
6.3
|
|
|
0.4
|
EBITDA (1)
|
|
|
$
|
119.4
|
|
$
|
136.4
|
|
$
|
(17.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
December 31,
|
(In millions)
|
|
|
2023
|
|
2022
|
|
Change
|
Net Income
|
|
|
$
|
297.1
|
|
$
|
1,063.9
|
|
$
|
(766.8)
|
Subtract:
|
Interest
income
|
|
|
(36.0)
|
|
|
(8.2)
|
|
|
(27.8)
|
Add:
|
Interest
expense
|
|
|
12.2
|
|
|
18.0
|
|
|
(5.8)
|
Add:
|
Income taxes
|
|
|
75.9
|
|
|
288.4
|
|
|
(212.5)
|
Add:
|
Depreciation and
amortization
|
|
|
142.2
|
|
|
139.2
|
|
|
3.0
|
Add:
|
Dry-dock
amortization
|
|
|
25.3
|
|
|
24.9
|
|
|
0.4
|
EBITDA (1)
|
|
|
$
|
516.7
|
|
$
|
1,526.2
|
|
$
|
(1,009.5)
|
____________________
|
(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 December 15, 2023:
https://uhero.hawaii.edu/wp-content/uploads/2023/12/23Q4_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.