UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 30, 2024 (
(Exact Name of Registrant as Specified in its Charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.Results of Operations and Financial Condition.
On October 30, 2024, Matson, Inc. (the “Company”) issued a press release announcing the Company’s earnings for the quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1. In addition, the Company posted an investor presentation to its website. A copy of the investor presentation is attached hereto as Exhibit 99.2.
The information in this report (including Exhibits 99.1 and 99.2) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 9.01.Financial Statements and Exhibits.
(a) - (c) Not applicable.
(d) Exhibits.
The exhibits listed below are being furnished with this Form 8-K.
99.1 | Press Release issued by Matson, Inc., dated October 30, 2024 |
99.2 | |
104 | Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MATSON, INC. | |
/s/ Joel M. Wine | |
Joel M. Wine | |
Executive Vice President and Chief Financial Officer | |
Dated: October 30, 2024 |
Exhibit 99.1
Investor Relations inquiries: | News Media inquiries: |
Justin Schoenberg | Keoni Wagner |
Matson, Inc. | Matson, Inc. |
510.628.4234 | 510.628.4534 |
jschoenberg@matson.com | kwagner@matson.com |
FOR IMMEDIATE RELEASE
MATSON, INC. ANNOUNCES THIRD QUARTER 2024 RESULTS
| ● | 3Q24 EPS of $5.89 versus $3.40 in 3Q23 |
| ● | 3Q24 Net Income of $199.1 million versus $119.9 million in 3Q23 |
| ● | 3Q24 Consolidated Operating Income of $242.3 million versus $132.1 million in 3Q23 |
| ● | 3Q24 EBITDA of $289.4 million versus $175.1 million in 3Q23 |
| ● | Repurchased approximately 0.4 million shares in 3Q24 |
| ● | Raising outlook for Full Year 2024 Consolidated Operating Income |
HONOLULU, Hawaii (October 30, 2024) – Matson, Inc. (“Matson” or the “Company”) (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $199.1 million, or $5.89 per diluted share, for the quarter ended September 30, 2024. Net income for the quarter ended September 30, 2023 was $119.9 million, or $3.40 per diluted share. Consolidated revenue for the third quarter 2024 was $962.0 million compared with $827.5 million for the third quarter 2023.
“Matson had a very strong third quarter that exceeded our expectations with higher year-over-year operating income in both Ocean Transportation and Logistics segments. Within Ocean Transportation, our China service was the primary driver of the increase in consolidated operating income year-over-year. We saw a traditional peak season with strong freight demand leading to significantly higher year-over-year freight rates for both the CLX and MAX services. A resilient U.S. economy and a stable consumer demand environment coupled with tighter supply chain conditions supported these elevated freight rates. In the near term, we expect freight rates to moderate with normal seasonality, but remain elevated as long as the underlying economic, supply chain, and geopolitical conditions persist. As we close out the year and prepare for 2025, we remain focused on continuing to deliver a differentiated value proposition as compared to air freight with CLX and MAX services as the two fastest and most reliable expedited ocean services in the Transpacific.”
Mr. Cox added, “In our domestic tradelanes, we saw higher year-over-volume in Alaska, while Hawaii and Guam saw lower year-over-year volume. Logistics operating income in the third quarter increased year-over-year due to higher contributions from supply chain management and transportation brokerage.”
“Looking ahead, we expect our China service freight rates in the fourth quarter to be significantly higher than the levels achieved in the year ago period, but lower than the average rates achieved in the third quarter as the peak season demand eases. For our domestic tradelanes in aggregate, we expect full year volume to approach the levels achieved in 2023, absent a significant change in the trajectory of the U.S. economy. For Ocean Transportation in the fourth quarter 2024, we expect operating income to be meaningfully higher than the $66.4 million achieved in the fourth quarter 2023. For Logistics, we expect operating income in the fourth quarter 2024 to be modestly higher than the level achieved last year. As a result, we now expect Matson’s consolidated fourth quarter 2024 operating income to be meaningfully higher than the $75.3 million achieved in the fourth quarter 2023.
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Third Quarter 2024 Discussion and Outlook for 2024
Ocean Transportation: The Company’s container volume in the Hawaii service in the third quarter 2024 was 2.2 percent lower year-over-year. The decrease was primarily due to lower general demand. Hawaii’s economy continues to grow slowly with stalled growth in statewide tourist arrivals due to declines in Maui tourism following last year’s wildfires and the sluggish pace of recovery in Japanese tourist arrivals which have been impacted by weakness in the yen to the U.S. dollar exchange rate. The Company expects volume for the full year 2024 to be modestly lower than the level achieved in 2023, primarily due to low-to-no growth in tourism, continued challenges in population growth and lower discretionary income as a result of higher inflation and interest rates.
In China, the Company achieved significantly higher freight rates in the third quarter 2024 compared to the year ago period. The Company’s container volume in the third quarter 2024 also increased 2.6 percent year-over-year due to two additional sailings. The elevated freight rates were primarily due to a traditional peak season with strong freight demand leading to significantly higher year-over-year freight rates for both the CLX and MAX services. A resilient U.S. economy and a stable consumer demand environment coupled with tighter supply chain conditions supported these elevated freight rates. In the near term, the Company expects its China service freight rates in the fourth quarter to remain elevated and to be significantly higher than the levels achieved in the year ago period as long as the underlying economic, supply chain, and geopolitical conditions persist. Regardless, the Company remains focused on continuing to deliver a differentiated value proposition as compared to air freight with CLX and MAX services as the two fastest and most reliable expedited ocean services in the Transpacific.
In Guam, the Company’s container volume in the third quarter 2024 decreased 9.4 percent year-over-year. The decrease was primarily due to lower demand from retail and food and beverage segments. In the near term, the Company expects the Guam economy to remain stable with a low unemployment rate, but slow growth in tourism. For the full year 2024, the Company expects volume to be lower than the level achieved last year.
In Alaska, the Company’s container volume for the third quarter 2024 increased 1.4 percent year-over-year primarily due to higher retail-related demand. 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 the full year 2024, the Company expects volume to approximate the level achieved last year.
The contribution in the third quarter 2024 from the Company’s SSAT joint venture investment was $6.9 million, or $5.6 million higher than the third 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 volume.
As a result of the outlook trends noted above, the Company expects fourth quarter 2024 operating income for Ocean Transportation to be meaningfully higher than the $66.4 million achieved in the fourth quarter 2023.
Logistics: In the third quarter 2024, operating income for the Company’s Logistics segment was $15.4 million, or $1.5 million higher compared to the level achieved in the third quarter 2023. The increase was primarily due to higher contributions from supply chain management and transportation brokerage. The Company expects operating income in the fourth quarter of 2024 to be modestly higher than the level achieved last year.
Consolidated Operating Income: The Company expects Matson’s fourth quarter 2024 consolidated operating income to be meaningfully higher than the $75.3 million achieved in the fourth quarter 2023.
Depreciation and Amortization: For 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 $47 million. This includes 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.
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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 third quarter 2024, the Company’s effective tax rate was 21.2 percent. For the fourth quarter 2024, the Company expects its effective tax rate to be approximately 22.0 percent.
Capital and Vessel Dry-docking Expenditures: In the third quarter 2024, the Company made capital expenditure payments excluding vessel construction expenditures of $58.0 million, capitalized vessel construction expenditures of $1.6 million, and dry-docking payments of $2.9 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 $77 million, expenditures for LNG installations and reengining on existing vessels of approximately $85 to $90 million, and dry-docking payments of approximately $35 million.
Results By Segment
Ocean Transportation — Three months ended September 30, 2024 compared with 2023
| | Three Months Ended September 30, |
| |||||||||
(Dollars in millions) |
| 2024 |
| 2023 |
| Change |
| |||||
Ocean Transportation revenue | | $ | 798.7 | | $ | 669.4 | | $ | 129.3 | | 19.3 | % |
Operating costs and expenses | |
| (571.8) | |
| (551.2) | |
| (20.6) | | 3.7 | % |
Operating income | | $ | 226.9 | | $ | 118.2 | | $ | 108.7 | | 92.0 | % |
Operating income margin | | | 28.4 | % | | 17.7 | % | | | | | |
| | | | | | | | | | | | |
Volume (Forty-foot equivalent units (FEU), except for automobiles) (1) | | | | | | | | | | | | |
Hawaii containers | |
| 36,200 | |
| 37,000 | |
| (800) | | (2.2) | % |
Hawaii automobiles | |
| 8,400 | |
| 10,100 | |
| (1,700) | | (16.8) | % |
Alaska containers | |
| 22,200 | |
| 21,900 | |
| 300 | | 1.4 | % |
China containers | |
| 40,000 | | | 39,000 | |
| 1,000 | | 2.6 | % |
Guam containers | |
| 4,800 | |
| 5,300 | |
| (500) | | (9.4) | % |
Other containers (2) | |
| 4,700 | |
| 4,300 | |
| 400 | | 9.3 | % |
| (1) | Approximate volume 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 $129.3 million, or 19.3 percent, during the three months ended September 30, 2024, compared with the three months ended September 30, 2023. The increase was primarily due to significantly higher freight rates in China, higher freight rates in the domestic tradelanes and higher volume in China.
On a year-over-year FEU basis, Hawaii container volume decreased 2.2 percent primarily due to lower general demand; Alaska volume increased 1.4 percent primarily due to higher retail-related demand; China volume was 2.6 percent higher due to two additional sailings; Guam volume decreased 9.4 percent primarily due to lower demand from retail and food and beverage segments; and Other containers volume increased 9.3 percent.
Ocean Transportation operating income increased $108.7 million, or 92.0 percent, during the three months ended September 30, 2024, compared with the three months ended September 30, 2023. The increase was primarily due to
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significantly higher freight rates in China and higher freight rates in the domestic tradelanes, partially offset by higher vessel operating costs.
The Company’s SSAT terminal joint venture investment contributed $6.9 million during the three months ended September 30, 2024, compared to a contribution of $1.3 million during the three months ended September 30, 2023. The increase was primarily driven by higher lift volume.
Ocean Transportation — Nine months ended September 30, 2024 compared with 2023
| | Nine Months Ended September 30, |
| |||||||||
(Dollars in millions) |
| 2024 |
| 2023 |
| Change |
| |||||
Ocean Transportation revenue | | $ | 2,067.6 | | $ | 1,837.3 | | $ | 230.3 |
| 12.5 | % |
Operating costs and expenses | |
| (1,704.1) | |
| (1,608.9) | |
| (95.2) | | 5.9 | % |
Operating income | | $ | 363.5 | | $ | 228.4 | | $ | 135.1 | | 59.2 | % |
Operating income margin | |
| 17.6 | % |
| 12.4 | % | | | | | |
| | | | | | | | | | | | |
Volume (Forty-foot equivalent units (FEU), except for automobiles) (1) | | | | | | | | | | | | |
Hawaii containers | |
| 105,900 | |
| 108,600 | |
| (2,700) | | (2.5) | % |
Hawaii automobiles | |
| 23,400 | |
| 29,300 | |
| (5,900) | | (20.1) | % |
Alaska containers | |
| 62,500 | |
| 62,200 | |
| 300 | | 0.5 | % |
China containers | |
| 106,700 | |
| 105,800 | |
| 900 | | 0.9 | % |
Guam containers | |
| 14,300 | |
| 15,100 | |
| (800) | | (5.3) | % |
Other containers (2) | |
| 12,700 | |
| 12,800 | |
| (100) | | (0.8) | % |
| (1) | Approximate volume 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 $230.3 million, or 12.5 percent, during the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. The increase was primarily due to significantly higher freight rates in China and higher freight rates in the domestic tradelanes, partially offset by lower volume in Hawaii.
On a year-over-year FEU basis, Hawaii container volume decreased 2.5 percent primarily due to lower general demand; Alaska volume increased 0.5 percent; China volume increased 0.9 percent primarily due to one additional sailing; Guam volume decreased 5.3 percent primarily due to lower general demand and one less sailing; and Other containers volume decreased 0.8 percent.
Ocean Transportation operating income increased $135.1 million, or 59.2 percent, during the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. The increase was primarily due to significantly higher freight rates in China and higher freight rates in the domestic tradelanes, partially offset by higher vessel operating costs.
The Company’s SSAT terminal joint venture investment contributed $8.5 million during the nine months ended September 30, 2024, compared to a loss of $1.9 million during the nine months ended September 30, 2023. The increase was primarily driven by higher lift volume.
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Logistics — Three months ended September 30, 2024 compared with 2023
| | Three Months Ended September 30, |
| |||||||||
(Dollars in millions) |
| 2024 |
| 2023 |
| Change |
| |||||
Logistics revenue | | $ | 163.3 | | $ | 158.1 |
| $ | 5.2 | | 3.3 | % |
Operating costs and expenses | |
| (147.9) | |
| (144.2) |
|
| (3.7) | | 2.6 | % |
Operating income | | $ | 15.4 | | $ | 13.9 |
| $ | 1.5 | | 10.8 | % |
Operating income margin | | | 9.4 | % | | 8.8 | % | | | | | |
Logistics revenue increased $5.2 million, or 3.3 percent, during the three months ended September 30, 2024, compared with the three months ended September 30, 2023. The increase was primarily due to higher revenue in freight forwarding, supply chain management, and transportation brokerage.
Logistics operating income increased $1.5 million, or 10.8 percent, during the three months ended September 30, 2024, compared with the three months ended September 30, 2023. The increase was primarily due to higher contributions from supply chain management and transportation brokerage.
Logistics — Nine months ended September 30, 2024 compared with 2023
| | Nine Months Ended September 30, |
| |||||||||
(Dollars in millions) |
| 2024 |
| 2023 |
| Change |
| |||||
Logistics revenue | | $ | 463.9 | | $ | 468.4 |
| $ | (4.5) |
| (1.0) | % |
Operating costs and expenses | |
| (423.6) | |
| (429.3) |
|
| 5.7 | | (1.3) | % |
Operating income | | $ | 40.3 | | $ | 39.1 |
| $ | 1.2 | | 3.1 | % |
Operating income margin | |
| 8.7 | % |
| 8.3 | % | | | | | |
Logistics revenue decreased $4.5 million, or 1.0 percent, during the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. The decrease was primarily due to lower revenue in transportation brokerage.
Logistics operating income increased $1.2 million, or 3.1 percent, during the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. The increase was primarily due to a higher contribution from supply chain management.
Liquidity, Cash Flows and Capital Allocation
Matson’s Cash and Cash Equivalents increased by $136.3 million from $134.0 million at December 31, 2023 to $270.3 million at September 30, 2024. As of September 30, 2024, the Company’s Capital Construction Fund was $635.4 million consisting of cash and cash equivalents and investments in fixed-rate U.S. Treasuries. Matson generated net cash from operating activities of $593.1 million during the nine months ended September 30, 2024, compared to $399.1 million during the nine months ended September 30, 2023. Capital expenditures (including capitalized vessel construction expenditures) totaled $184.7 million for the nine months ended September 30, 2024, compared with $187.5 million for the nine months ended September 30, 2023. Total debt decreased by $30.0 million during the nine months to $410.6 million as of September 30, 2024, of which $370.9 million was classified as long-term debt.1 As of September 30, 2024, Matson had available borrowings under its revolving credit facility of $644.2 million.
During the third quarter 2024, Matson repurchased approximately 0.4 million shares for a total cost of $48.1 million. As of the end of the third quarter 2024, there were approximately 1.0 million shares remaining in the Company’s share repurchase program. Matson’s Board of Directors also declared a cash dividend of $0.34 per share payable on December 5, 2024 to all shareholders of record as of the close of business on November 7, 2024.
1 Total debt is presented before any reduction for deferred loan fees as required by GAAP.
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Teleconference and Webcast
A conference call is scheduled on October 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 third quarter results.
Date of Conference Call: | Wednesday, October 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/BI3cd881662f5648948a7c2f905510e4eb
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 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; volume, freight rates and demand; economic, supply chain, and geopolitical conditions; supply and demand dynamics in the Transpacific; economic growth and drivers in Hawaii, Alaska and Guam; population growth; discretionary income; interest rates; tourism levels; recovery from the Maui wildfires; unemployment rates; jobs growth; inflation levels; contribution from and lift volume at SSAT; vessel transit times; 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
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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.
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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) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Operating Revenue: | | | | | | | | | | | | |
Ocean Transportation | | $ | 798.7 | | $ | 669.4 | | $ | 2,067.6 | | $ | 1,837.3 |
Logistics | |
| 163.3 | |
| 158.1 | |
| 463.9 | |
| 468.4 |
Total Operating Revenue | |
| 962.0 | |
| 827.5 | |
| 2,531.5 | |
| 2,305.7 |
| | | | | | | | | | | | |
Costs and Expenses: | | | | | | | | | | | | |
Operating costs | |
| (654.3) | |
| (624.1) | |
| (1,913.4) | |
| (1,826.3) |
Income (Loss) from SSAT | |
| 6.9 | |
| 1.3 | |
| 8.5 | |
| (1.9) |
Selling, general and administrative | |
| (72.3) | |
| (72.6) | |
| (222.8) | |
| (210.0) |
Total Costs and Expenses | |
| (719.7) | |
| (695.4) | |
| (2,127.7) | |
| (2,038.2) |
| | | | | | | | | | | | |
Operating Income | |
| 242.3 | |
| 132.1 | |
| 403.8 | |
| 267.5 |
Interest income | | | 10.4 | | | 9.3 | | | 38.0 | | | 26.2 |
Interest expense | |
| (1.8) | |
| (2.4) | |
| (6.1) | |
| (9.8) |
Other income (expense), net | |
| 1.9 | |
| 1.2 | |
| 5.5 | |
| 4.8 |
Income before Taxes | |
| 252.8 | |
| 140.2 | |
| 441.2 | |
| 288.7 |
Income taxes | |
| (53.7) | |
| (20.3) | |
| (92.8) | |
| (54.0) |
Net Income | | $ | 199.1 | | $ | 119.9 | | $ | 348.4 | | $ | 234.7 |
| | | | | | | | | | | | |
Basic Earnings Per Share | | $ | 5.98 | | $ | 3.42 | | $ | 10.28 | | $ | 6.59 |
Diluted Earnings Per Share | | $ | 5.89 | | $ | 3.40 | | $ | 10.13 | | $ | 6.56 |
| | | | | | | | | | | | |
Weighted Average Number of Shares Outstanding: | | | | | | | | | | | | |
Basic | |
| 33.3 | |
| 35.1 | |
| 33.9 | |
| 35.6 |
Diluted | |
| 33.8 | |
| 35.3 | |
| 34.4 | |
| 35.8 |
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MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
|
| September 30, |
| December 31, | ||
(In millions) | | 2024 | | 2023 | ||
ASSETS | | | | | | |
Current Assets: | | | | | | |
Cash and cash equivalents | | $ | 270.3 | | $ | 134.0 |
Other current assets | |
| 381.5 | |
| 468.3 |
Total current assets | |
| 651.8 | |
| 602.3 |
Long-term Assets: | | | | | | |
Investment in SSAT | |
| 93.3 | |
| 85.5 |
Property and equipment, net | |
| 2,190.6 | |
| 2,089.9 |
Goodwill | |
| 327.8 | |
| 327.8 |
Intangible assets, net | |
| 164.0 | |
| 176.4 |
Capital Construction Fund | |
| 635.4 | |
| 599.4 |
Other long-term assets | |
| 379.3 | |
| 413.3 |
Total long-term assets | | | 3,790.4 | | | 3,692.3 |
Total assets | | $ | 4,442.2 | | $ | 4,294.6 |
| | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
Current Liabilities: | | | | | | |
Current portion of debt | | $ | 39.7 | | $ | 39.7 |
Other current liabilities | |
| 538.0 | |
| 522.6 |
Total current liabilities | |
| 577.7 | |
| 562.3 |
Long-term Liabilities: | | | | | | |
Long-term debt, net of deferred loan fees | |
| 360.2 | |
| 389.3 |
Deferred income taxes | |
| 692.6 | |
| 669.3 |
Other long-term liabilities | |
| 255.0 | |
| 273.0 |
Total long-term liabilities | |
| 1,307.8 | |
| 1,331.6 |
| | | | | | |
Total shareholders’ equity | |
| 2,556.7 | |
| 2,400.7 |
Total liabilities and shareholders’ equity | | $ | 4,442.2 | | $ | 4,294.6 |
9
MATSON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| | Nine Months Ended September 30, | | ||||
(In millions) |
| 2024 |
| 2023 |
| ||
Cash Flows From Operating Activities: | | | | | | | |
Net income | | $ | 348.4 | | $ | 234.7 | |
Reconciling adjustments: | | | | | | | |
Depreciation and amortization | |
| 114.7 | |
| 108.1 | |
Amortization of operating lease right of use assets | | | 102.1 | | | 108.2 | |
Deferred income taxes | |
| 16.2 | |
| (9.3) | |
Share-based compensation expense | |
| 19.1 | |
| 17.6 | |
(Income) loss from SSAT | |
| (8.5) | |
| 1.9 | |
Distributions from SSAT | | | 14.0 | | | — | |
Other | | | (9.1) | | | (1.7) | |
Changes in assets and liabilities: | | | | | | | |
Accounts receivable, net | |
| (31.7) | |
| (37.1) | |
Deferred dry-docking payments | |
| (20.2) | |
| (17.3) | |
Deferred dry-docking amortization | |
| 21.0 | |
| 18.6 | |
Prepaid expenses and other assets | |
| 116.9 | |
| 65.8 | |
Accounts payable, accruals and other liabilities | |
| 27.6 | |
| 34.4 | |
Operating lease liabilities | | | (104.0) | | | (109.9) | |
Other long-term liabilities | |
| (13.4) | |
| (14.9) | |
Net cash provided by operating activities | |
| 593.1 | |
| 399.1 | |
| | | | | | | |
Cash Flows From Investing Activities: | | | | | | | |
Capitalized vessel construction expenditures | | | (39.8) | | | (52.1) | |
Capital expenditures (excluding vessel construction expenditures) | |
| (144.9) | |
| (135.4) | |
Proceeds from disposal of property and equipment, net | |
| 4.4 | | | 0.1 | |
Payments for asset acquisitions | | | (0.7) | | | (12.4) | |
Cash and interest deposited into the Capital Construction Fund | |
| (63.6) | |
| (120.8) | |
Withdrawals from Capital Construction Fund | | | 35.8 | | | 49.9 | |
Net cash used in investing activities | |
| (208.8) | |
| (270.7) | |
| | | | | | | |
Cash Flows From Financing Activities: | | | | | | | |
Repayments of debt | |
| (30.0) | |
| (67.2) | |
Dividends paid | | | (33.5) | |
| (33.8) | |
Repurchase of Matson common stock | | | (167.4) | |
| (108.2) | |
Tax withholding related to net share settlements of restricted stock units | | | (17.0) | | | (12.5) | |
Net cash used in financing activities | |
| (247.9) | |
| (221.7) | |
| | | | | | | |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | |
| 136.4 | |
| (93.3) | |
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 | | $ | 272.7 | | $ | 160.4 | |
| | | | | | | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period: | | | | | | | |
Cash and Cash Equivalents | | $ | 270.3 | | $ | 156.5 | |
Restricted Cash | | | 2.4 | | | 3.9 | |
Total Cash and Cash Equivalents, and Restricted Cash, End of the Period | | $ | 272.7 | | $ | 160.4 | |
| | | | | | | |
Supplemental Cash Flow Information: | | | | | | | |
Interest paid, net of capitalized interest | | $ | 5.3 | | $ | 9.6 | |
Income tax payments (refunds), net | | $ | (85.1) | | $ | (5.3) | |
| | | | | | | |
Non-cash Information: | | | | | | | |
Capital expenditures included in accounts payable, accruals and other liabilities | | $ | 26.9 | | $ | 7.8 | |
Non-cash payments for asset acquisitions | | $ | — | | $ | 4.1 | |
10
MATSON, INC. AND SUBSIDIARIES
Net Income to EBITDA Reconciliations
(Unaudited)
| | | Three Months Ended |
| | | |||||||
| | | September 30, |
| Last Twelve | ||||||||
(In millions) | |
| 2024 |
| 2023 |
| Change |
| Months | ||||
Net Income | | | $ | 199.1 | | $ | 119.9 | | $ | 79.2 | | $ | 410.8 |
Subtract: | Interest income | | | (10.4) | | | (9.3) | | | (1.1) | | | (47.8) |
Add: | Interest expense | |
| 1.8 | |
| 2.4 | |
| (0.6) | | | 8.5 |
Add: | Income taxes | |
| 53.7 | |
| 20.3 | |
| 33.4 | | | 114.7 |
Add: | Depreciation and amortization | |
| 37.9 | |
| 35.6 | |
| 2.3 | | | 149.2 |
Add: | Dry-dock amortization | |
| 7.3 | |
| 6.2 | |
| 1.1 | | | 27.7 |
EBITDA (1) | | | $ | 289.4 | | $ | 175.1 | | $ | 114.3 | | $ | 663.1 |
| | | Nine Months Ended |
| | | |||||||
| | | September 30, |
| | | |||||||
(In millions) | |
| 2024 |
| 2023 |
| Change |
| | | |||
Net Income | | | $ | 348.4 | | $ | 234.7 | | $ | 113.7 | | | |
Subtract: | Interest income | | | (38.0) | | | (26.2) | | | (11.8) | | | |
Add: | Interest expense | |
| 6.1 | |
| 9.8 | |
| (3.7) | | | |
Add: | Income taxes | |
| 92.8 | |
| 54.0 | |
| 38.8 | | | |
Add: | Depreciation and amortization | |
| 113.4 | |
| 106.4 | |
| 7.0 | | | |
Add: | Dry-dock amortization | |
| 21.0 | |
| 18.6 | |
| 2.4 | | | |
EBITDA (1) | | | $ | 543.7 | | $ | 397.3 | | $ | 146.4 | | | |
| (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. |
11
| 1 Third Quarter 2024 Earnings Conference Call Third Quarter 2024 Earnings Conference Call October 30, 2024 |
| 2 Third Quarter 2024 Earnings Conference Call Forward-Looking Statements Statements made during this presentation that set forth expectations, predictions, projections or are about future events are based on facts and situations that are known to us as of October 30, 2024. We believe that our expectations and assumptions are reasonable. Actual results may differ materially, due to risks and uncertainties, such as those described on pages 13-25 of our Form 10-K filed on February 23, 2024 and other subsequent filings by Matson with the SEC. Statements made during this presentation are not guarantees of future performance. We do not undertake any obligation to update our forward-looking statements. |
| 3 Third Quarter 2024 Earnings Conference Call Opening Remarks • Very strong 3Q24 that exceeded our expectations – Higher YoY operating income in both Ocean Transportation and Logistics • Ocean Transportation 3Q24: – China service was the primary driver of the increase in consolidated operating income YoY – Higher YoY volume in Alaska – Hawaii and Guam saw lower YoY volume • Logistics 3Q24: – Operating income increased YoY due to higher contributions from supply chain management and transportation brokerage • Raising outlook for 2024 driven primarily by expected strength of China service |
| 4 Third Quarter 2024 Earnings Conference Call Hawaii Service Third Quarter 2024 Performance • Container volume decreased 2.2% YoY due to lower general demand • Slow economic growth with stalled growth in statewide tourist arrivals Container Volume (FEU Basis) 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 Q1 Q2 Q3 Q4 2023 2024 (2.2)% Full Year 2024 Outlook • Expect volume in 2024 to be modestly lower than the level achieved last year primarily due to: – Low-to-no growth in tourism – Challenging population growth – Lower discretionary income as a result of higher inflation and interest rates |
| 5 Third Quarter 2024 Earnings Conference Call Hawaii Service – Current Business Trends UHERO Projections (3) (1) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2024-08-state.xls (2) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2024-08-maui.xls (3) Source: https://uhero.hawaii.edu/wp-content/uploads/2024/09/24Q3_Forecast.pdf 2024P 2025P 2026P Real GDP 1.0% 2.8% 2.3% Construction Jobs Growth 4.8% 2.9% 0.6% Population Growth (0.2)% 0.0% 0.1% Unemployment Rate 3.0% 2.7% 2.7% Visitor Arrivals (‘000s) % change 9,731.1 0.9% 10,118.9 4.0% 10,286.7 1.7% Select Hawaii Economic Indicators • According to UHERO, the Hawaii economy is projected to grow slowly in 2024 – Low unemployment rate – Increase in construction activity – Low growth in tourist arrivals Commentary 0 100 200 300 400 500 600 700 800 900 1,000 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Unemployment Rate Visitor Arrivals (‘000s) Unemployment Rate and Visitor Arrivals by Air Hawaii Unemployment Rate (not seasonally adjusted) (1) Hawaii Visitor Arrivals by Air (1) Maui Visitor Arrivals by Air (2) |
| 6 Third Quarter 2024 Earnings Conference Call China Service Third Quarter 2024 Performance Container Volume (FEU Basis) 8,000 13,000 18,000 23,000 28,000 33,000 38,000 43,000 Q1 Q2 Q3 Q4 2023 2024 • Container volume increased 2.6% YoY – Two additional sailings in 3Q24 • Significantly higher freight rates YoY for both the CLX and MAX 2.6% Note: two additional sailings in 3Q24. |
| 7 Third Quarter 2024 Earnings Conference Call China Service – Current Business Trends • The elevated freight rates in 3Q24 were primarily due to a traditional peak season with strong freight demand and additional factors including: – A resilient U.S. economy and a stable consumer demand environment coupled with tighter supply chain conditions • Solid U.S. retail sales during 3Q24 • E-commerce continued to grow faster than the overall retail market – Continued Red Sea disruptions – Impacts from East Coast / Gulf ILA negotiations • For 4Q24, we expect our China service freight rates to be significantly higher than the levels achieved in the year ago period, as long as the underlying economic, supply chain, and geopolitical conditions persist, but lower than the average rates achieved in 3Q24 as the peak season demand eases Our CLX and MAX services continue to be the two fastest and most reliable expedited ocean services in the Transpacific |
| 8 Third Quarter 2024 Earnings Conference Call Guam Service Third Quarter 2024 Performance Container Volume (FEU Basis) 3,000 3,500 4,000 4,500 5,000 5,500 Q1 Q2 Q3 Q4 2023 2024 • Container volume decreased 9.4% YoY – Primarily due to lower demand from retail and food and beverage segments (9.4)% Full Year 2024 Outlook • Expect Guam’s economy to remain stable with a low unemployment rate, but slow growth in tourism • Expect volume to be lower than the level achieved last year Note: an additional sailing in 2Q23. |
| 9 Third Quarter 2024 Earnings Conference Call Alaska Service Third Quarter 2024 Performance • Container volume increased 1.4% YoY due to higher retail-related demand Container Volume (FEU Basis) 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 Q1 Q2 Q3 Q4 2023 2024 Full Year 2024 Outlook • Expect continued economic growth in Alaska supported by a low unemployment rate, jobs growth and lower levels of inflation • Expect volume to be approximate the level achieved last year Note: an additional northbound sailing in 1Q23. 1.4% |
| 10 Third Quarter 2024 Earnings Conference Call SSAT Joint Venture Third Quarter 2024 Performance Equity in Income of Joint Venture ($ 3.0) ($ 2.0) ($ 1.0) $ 0.0 $ 1.0 $ 2.0 $ 3.0 $ 4.0 $ 5.0 $ 6.0 $ 7.0 $ 8.0 Q1 Q2 Q3 Q4 $ in millions 2023 2024 • Terminal joint venture contribution was $6.9 million; YoY increase of $5.6 million – Primarily due to higher lift volume Full Year 2024 Outlook • Expect contribution to be higher than 2023 due to an expected increase in lift volume |
| 11 Third Quarter 2024 Earnings Conference Call Matson Logistics Third Quarter 2024 Performance Operating Income $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 $ 16.0 $ 18.0 Q1 Q2 Q3 Q4 $ in millions 2023 2024 • Operating income of $15.4 million; YoY increase of approximately $1.5 million – Higher contributions from supply chain management and transportation brokerage Fourth Quarter 2024 Outlook • Expect operating income in 4Q24 to be modestly higher than the level achieved last year |
| 12 Third Quarter 2024 Earnings Conference Call Financial Results – Summary Income Statement See the Appendix for a reconciliation of GAAP to non-GAAP Financial Metrics. Year-to-Date Third Quarter YTD Ended 9/30 Δ Quarter Ended 9/30 Δ ($ in millions, except per share data) 2024 2023 $ % 2024 2023 $ % Revenue Ocean Transportation $ 2,067.6 $ 1,837.3 $ 230.3 12.5% $ 798.7 $ 669.4 $ 129.3 19.3% Logistics 463.9 468.4 ( 4.5) (1.0)% 163.3 158.1 5.2 3.3% Total Revenue $ 2,531.5 $ 2,305.7 $ 225.8 9.8% $ 962.0 $ 827.5 $ 134.5 16.3% Operating Income Ocean Transportation $ 363.5 $ 228.4 $ 135.1 59.2% $ 226.9 $ 118.2 $ 108.7 92.0% Logistics 40.3 39.1 1.2 3.1% 15.4 13.9 1.5 10.8% Total Operating Income $ 403.8 $ 267.5 $ 136.3 51.0% $ 242.3 $ 132.1 $ 110.2 83.4% Interest income 38.0 26.2 11.8 45.0% 10.4 9.3 1.1 11.8% Interest expense ( 6.1) ( 9.8) 3.7 (37.8)% ( 1.8) ( 2.4) 0.6 (25.0)% Other income (expense), net 5.5 4.8 0.7 14.6% 1.9 1.2 0.7 58.3% Income taxes ( 92.8) ( 54.0) ( 38.8) 71.9% ( 53.7) ( 20.3) ( 33.4) 164.5% Net Income $ 348.4 $ 234.7 $ 113.7 48.4% $ 199.1 $ 119.9 $ 79.2 66.1% 34.4 35.8 ( 1.4) (3.9)% 33.8 35.3 ( 1.5) (4.2)% GAAP EPS, diluted $ 10.13 $ 6.56 $ 3.57 54.4% $ 5.89 $ 3.40 $ 2.49 73.2% $ 134.4 $ 125.0 $ 9.4 7.5% $ 45.2 $ 41.8 $ 3.4 8.1% EBITDA $ 543.7 $ 397.3 $ 146.4 36.8% $ 289.4 $ 175.1 $ 114.3 65.3% Depreciation and Amortization (incl. dry-dock amortization) Weighted Average Number of Shares Outstanding (diluted) |
| 13 Third Quarter 2024 Earnings Conference Call Cash Generation and Uses of Cash $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Cash Flow from Operations Paydown of Borrowings, net Maint. Capex New Vessel Capex (1) Capital Construction Fund (2) Dividends Share Repurchase (3) Other Net change in cash $ in millions Last Twelve Months Ended September 30, 2024 $704.5 ($39.7) ($205.0) ($35.5) ($40.6) ($44.7) ($214.4) ($12.3) $112.3 (1) Includes capitalized interest and owner’s items. (2) Includes cash deposits into the Capital Construction Fund (CCF) and interest income on cash deposits and fixed-income securities in the CCF, net of withdrawals for milestone payments. (3) Includes taxes. |
| 14 Third Quarter 2024 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $410.6 million(1) – Reduced by $10.1 million from 2Q24 – Reduced by $30.0 million YTD (1) Total Debt is presented before any reduction for deferred loan fees as required by GAAP. Debt Levels Share Repurchase • 3Q24: ~0.4 million shares repurchased for total cost of $48.1 million • YTD: ~1.4 million shares repurchased for a total cost of $169.2 million ($ in millions) ASSETS Cash and cash equivalents $ 270.3 $ 134.0 Other current assets 381.5 468.3 Total current assets 651.8 602.3 Investment in SSAT 93.3 85.5 Property and equipment, net 2,190.6 2,089.9 Intangible assets, net 164.0 176.4 Capital Construction Fund (CCF) 635.4 599.4 Goodwill 327.8 327.8 Other long-term assets 379.3 413.3 Total assets $ 4,442.2 $ 4,294.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Current portion of debt $ 39.7 $ 39.7 Other current liabilities 538.0 522.6 Total current liabilities 577.7 562.3 Long-term debt, net of deferred loan fees 360.2 389.3 Other long-term liabilities 947.6 942.3 Total long-term liabilities 1,307.8 1,331.6 Total shareholders’ equity 2,556.7 2,400.7 Total liabilities and shareholders’ equity $ 4,442.2 $ 4,294.6 September 30, December 31, 2024 2023 |
| 15 Third Quarter 2024 Earnings Conference Call 2024 Outlook 4Q24 Outlook Ocean Transportation – Operating Income 4Q24 To be meaningfully higher than the $66.4 million achieved in 4Q23 Logistics – Operating Income 4Q24 To be modestly higher than the $8.9 million achieved in 4Q23 GAAP Effective Tax Rate Approximately 22.0% FY 2024 Outlook Items Depreciation and Amortization Approximately $180 million, including $27 million in dry-dock amortization Interest Income Approximately $47 million Interest Expense (excluding capitalized interest) Approximately $8 million Other Income/(Expense) Approximately $7 million Dry-docking Payments Approximately $35 million |
| 16 Third Quarter 2024 Earnings Conference Call Revised Capital Expenditures Outlook ($ in millions) FY 2024 Comments Maintenance and other capital expenditures $110 – 120 Expenditures for LNG installations and reengining on existing vessels $85 – 90 • Kaimana Hila LNG installation complete and exited drydock in October • No additional conversion projects planned Sub-total maintenance and other capex $195 - 210 New vessel construction milestone payments and related costs $77 • Includes owner’s items and capitalized interest expense • In October, paid ~$36 million milestone payment from cash and cash equivalents Total $272 – 287 |
| 17 Third Quarter 2024 Earnings Conference Call New Vessel Update • On September 30th, began construction on the first of three new “Aloha Class” containerships for the CLX – Upon delivery, vessels will have dual-fuel engines capable of operating on both conventional marine fuels and LNG • New vessels expected to carry ~15,000 additional containers per year in our China service • Currently expect first vessel to be delivered in 4Q26 with subsequent deliveries in 2027 Cutting of steel at the Philly Shipyard in Pennsylvania initiates the construction of our three new “Aloha Class” vessels |
| 18 Third Quarter 2024 Earnings Conference Call New Vessel Milestone Payment Schedule As of September 30th, our cash and cash equivalents and CCF combined exceed our remaining milestone payments. (1) (1) Consists of ~$457 million in fixed-rate Treasuries earning 4.53% in cash coupon and appreciation and ~$178 million in a Treasury obligations money market fund. ($ in millions as of 9/30/24) Milestone Payments Schedule 4Q24 (paid from cash and cash equivalents) $36 1Q25 82 2Q25 36 3Q25 120 4Q25 131 FY 2025 $369 FY 2026 323 FY 2027 132 FY 2028 6 Total Milestone Payments 2025-2028 $830 CCF Balance (1) $635 Cash and Cash Equivalents $270 |
| 19 Third Quarter 2024 Earnings Conference Call Appendix |
| 20 Third Quarter 2024 Earnings Conference Call Appendix – Non-GAAP Measures Matson reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”). |
