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MATSON ANNOUNCES PRELIMINARY 3Q23 RESULTS, PROVIDES BUSINESS UPDATE AND ANNOUNCES 3Q23 EARNINGS CALL DATE
| ● | Expects 3Q23 operating income for Ocean Transportation to be $113.0 to $118.0 million |
| ● | Expects 3Q23 operating income for Logistics to be $13.0 to $14.0 million |
| ● | Expects 3Q23 net income and diluted EPS to be $114.0 to $120.5 million and $3.23 to $3.41, respectively |
| ● | Year-over-year decrease in consolidated operating income driven primarily by lower contribution from China service |
| ● | Repurchased approximately 0.3 million shares in 3Q23 |
| ● | Announces third quarter earnings call date on October 30, 2023 |
HONOLULU, Hawaii (October 23, 2023) – Matson, Inc. ("Matson" or the "Company") (NYSE:MATX) today announces preliminary third quarter financial results, provides a business update and announces that its third quarter earnings call will be held on October 30, 2023.
"Matson's Ocean Transportation and Logistics business segments continued to perform well despite a challenging business environment and relatively difficult economic conditions impacting the U.S. consumer," said Chairman and Chief Executive Officer Matt Cox. "Within Ocean Transportation, our China service experienced solid freight demand despite the muted peak season in the Transpacific tradelane but generated lower year-over-year volume and freight rates, which were the primary contributors to the year-over-year decline in our consolidated operating income. Currently in the Transpacific marketplace, we continue to see a reduction of deployed capacity in light of lower volumes as a result of lower consumer demand for retail goods. Absent an economic ‘hard landing' in the U.S., we expect trade dynamics in 2024 to be comparable to 2023 as consumer-related spending activity is expected to remain stable. Regardless of the economic backdrop, we expect to continue to earn a significant rate premium to the Shanghai Containerized Freight Index reflecting our fast and reliable ocean services and unmatched destination services."
Mr. Cox added, "In our domestic ocean tradelanes, we saw lower year-over-year volumes in Hawaii, Alaska and Guam compared to the year ago period. The year-over-year decline in Hawaii volume was primarily due to lower general demand. The year-over-year volume declines in Guam and Alaska were primarily driven by lower general demand and lower seafood volume, respectively. In Logistics, operating income decreased year-over-year primarily due to a lower contribution from transportation brokerage. As a result, Matson expects third quarter operating income for Ocean Transportation of $113.0 to $118.0 million and Logistics operating income of $13.0 to $14.0 million. We also expect third quarter 2023 net income and diluted EPS to be $114.0 to $120.5 million and $3.23 to $3.41, respectively."
1
Third Quarter Tradelane Volume (Forty-foot equivalent units (FEU)) (1)(2):
For the three months ended September 30, 2023 compared to the three months ended September 30, 2022 and on a FEU basis:
| ● | Hawaii container volume decreased 1.9 percent primarily due to lower general demand; |
| ● | Alaska container volume decreased 9.1 percent due to (i) lower export seafood volume from the Alaska-Asia Express service ("AAX"), (ii) lower northbound volume due to lower retail-related demand and (iii) lower southbound volume due to lower domestic seafood volume; |
| ● | China container volume was 1.3 percent lower primarily due to CCX volume in 3Q22 (CCX service was discontinued in 3Q22) partially offset by higher volume in the CLX+ service; |
| ● | Guam container volume was 1.9 percent lower primarily due to lower general demand; and |
| ● | Other container volume decreased 28.3 percent. |
| (1) | Approximate volumes included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period. |
| (2) | Other containers includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan. |
Liquidity, Debt and Share Repurchases
Matson's cash and cash equivalents as of September 30, 2023 was approximately $156.0 million, which excludes $591.6 million in cash on deposit within the Capital Construction Fund (CCF). Total debt as of September 30, 2023 was $450.3 million.(3)
During the third quarter of 2023, Matson repurchased approximately 0.3 million shares for a total cost of $25.8 million. As of September 30, 2023, the Company had approximately 3.0 million shares remaining in its share repurchase program.
A slide presentation that accompanies this press release is available on the Company's website at www.matson.com, under Investors.
| (3) | Total debt is presented before any reduction for deferred loan fees as required by GAAP. |
Teleconference and Webcast
A conference call is scheduled on October 30, 2023 at 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's third quarter results.
| Date of Conference Call: | Monday, October 30, 2023 |
| Scheduled Time: | 4:30 p.m. ET / 1:30 p.m. PT / 10:30 a.m. HT |
The conference call will be broadcast live along with an additional slide presentation on the Company's website at www.matson.com, under Investors.
Participants may register for the conference call at:
https://register.vevent.com/register/BIabc974c5c766420eb206a5fbc2636f94
Registered participants will receive the conference call dial-in number and a unique PIN code to access the live event. While not required, it is recommended you join 10 minutes prior to the event starting time. A replay of the conference call will be available approximately two hours after the event by accessing the webcast link at www.matson.com, under Investors.
Posted In: MATX
