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MATSON, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS

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Matson reported strong Q2 2024 results, with net income of $113.2 million ($3.31 per diluted share), up from $80.8 million in Q2 2023. Consolidated revenue increased to $847.4 million from $773.4 million year-over-year. The company's China service saw significantly higher freight rates, driving the increase in consolidated operating income. Matson expects elevated freight rates to continue during the traditional peak season. For Q3 2024, the company anticipates meaningfully higher operating income compared to Q3 2023's $132.1 million. Matson is raising its outlook for full year 2024 consolidated operating income. The company repurchased approximately 0.6 million shares in Q2 2024 and declared a cash dividend of $0.34 per share.

Matson ha riportato risultati solidi per il secondo trimestre del 2024, con un reddito netto di 113,2 milioni di dollari (3,31 dollari per azione diluita), in aumento rispetto agli 80,8 milioni di dollari registrati nel secondo trimestre del 2023. Il fatturato consolidato è aumentato a 847,4 milioni di dollari, rispetto ai 773,4 milioni di dollari dell'anno precedente. Il servizio in Cina della società ha visto tassi di trasporto significativamente più elevati, che hanno spinto l'aumento del reddito operativo consolidato. Matson si aspetta che i tassi di trasporto elevati continuino durante la tradizionale stagione di picco. Per il terzo trimestre del 2024, l'azienda prevede un reddito operativo nettamente più alto rispetto ai 132,1 milioni di dollari del terzo trimestre del 2023. Matson sta aumentando le sue previsioni per il reddito operativo consolidato per l'intero anno 2024. L'azienda ha riacquistato circa 0,6 milioni di azioni nel secondo trimestre del 2024 e ha dichiarato un dividendo in contanti di 0,34 dollari per azione.

Matson reportó resultados sólidos en el segundo trimestre de 2024, con un ingreso neto de 113,2 millones de dólares (3,31 dólares por acción diluida), un aumento desde los 80,8 millones de dólares en el segundo trimestre de 2023. Los ingresos consolidados aumentaron a 847,4 millones de dólares desde 773,4 millones de dólares en comparación con el año anterior. El servicio de la compañía en China experimentó tarifas de flete significativamente más altas, lo que impulsó el aumento en el ingreso operativo consolidado. Matson espera que las tarifas de flete elevadas continúen durante la tradicional temporada alta. Para el tercer trimestre de 2024, la empresa anticipa un ingreso operativo significativamente más alto en comparación con los 132,1 millones de dólares del tercer trimestre de 2023. Matson está aumentando sus perspectivas para el ingreso operativo consolidado del año completo 2024. La compañía recompró aproximadamente 0,6 millones de acciones en el segundo trimestre de 2024 y declaró un dividendo en efectivo de 0,34 dólares por acción.

Matson은 2024년 2분기 실적을 보고하며 순이익이 1억 1,320만 달러 (희석주당 3.31달러)로 2023년 2분기 8,080만 달러에서 증가했다고 밝혔습니다. 통합 매출은 8억 4,740만 달러로 작년의 7억 7,340만 달러에서 증가했습니다. 회사의 중국 서비스는 운임이 크게 상승하여 통합 운영 소득 증가를 견인했습니다. Matson은 운임이 높은 상태가 계속될 것으로 예상하고 있습니다, 전통적인 성수기 동안. 2024년 3분기에는 2023년 3분기의 1억 3,210만 달러에 비해 상당히 높은 운영 소득을 예상하고 있습니다. Matson은 2024년 전체 연도 통합 운영 소득 전망을 상향 조정하고 있습니다. 회사는 2024년 2분기에 약 60만 주를 재매입했으며 주당 0.34달러의 현금 배당금을 선언했습니다.

Matson a annoncé de solides résultats pour le deuxième trimestre 2024, avec un revenu net de 113,2 millions de dollars (3,31 dollars par action diluée), en hausse par rapport à 80,8 millions de dollars au deuxième trimestre 2023. Le chiffre d'affaires consolidé a augmenté à 847,4 millions de dollars, contre 773,4 millions de dollars l'année précédente. Le service de la société en Chine a connu des tarifs de fret considérablement plus élevés, ce qui a entraîné l'augmentation du revenu opérationnel consolidé. Matson s'attend à ce que les tarifs de fret élevés se poursuivent pendant la saison touristique traditionnelle. Pour le troisième trimestre 2024, l'entreprise prévoit un revenu opérationnel nettement plus élevé par rapport à 132,1 millions de dollars pour le troisième trimestre 2023. Matson augmente ses prévisions de revenu opérationnel consolidé pour l'ensemble de l'année 2024. L'entreprise a racheté environ 0,6 million d'actions au deuxième trimestre 2024 et a déclaré un dividende en espèces de 0,34 dollar par action.

Matson meldete im zweiten Quartal 2024 starke Ergebnisse mit einem Nettoeinkommen von 113,2 Millionen Dollar (3,31 Dollar pro verwässerter Aktie), im Vergleich zu 80,8 Millionen Dollar im zweiten Quartal 2023. Der konsolidierte Umsatz stieg auf 847,4 Millionen Dollar von 773,4 Millionen Dollar im Jahresvergleich. Der Dienst des Unternehmens in China verzeichnete deutlich höhere Frachtraten, was den Anstieg des konsolidierten Betriebsergebnisses vorantrieb. Matson erwartet, dass die erhöhten Frachtraten anhalten werden während der traditionellen Hochsaison. Für das dritte Quartal 2024 rechnet das Unternehmen mit deutlich höheren Betriebseinnahmen im Vergleich zu 132,1 Millionen Dollar im dritten Quartal 2023. Matson hebt die Prognose für das konsolidierte Betriebsergebnis für das gesamte Jahr 2024 an. Das Unternehmen hat im zweiten Quartal 2024 etwa 0,6 Millionen Aktien zurückgekauft und eine Bardividende von 0,34 Dollar pro Aktie erklärt.

Positive
  • Net income increased to $113.2 million in Q2 2024 from $80.8 million in Q2 2023
  • Consolidated revenue grew to $847.4 million from $773.4 million year-over-year
  • China service saw significantly higher freight rates, driving increase in consolidated operating income
  • Company expects elevated freight rates to continue during traditional peak season
  • Raising outlook for full year 2024 consolidated operating income
  • Repurchased approximately 0.6 million shares in Q2 2024
Negative
  • Hawaii container volume decreased 3.6% year-over-year due to lower general demand
  • Guam container volume decreased 6.1% year-over-year primarily due to one less sailing
  • Tourist arrivals to Hawaii decreased year-over-year, primarily due to lower visitor traffic to Maui

Insights

Matson's Q2 2024 results demonstrate strong performance, with significant improvements across key financial metrics. The company reported net income of $113.2 million, a 40% increase from Q2 2023. Earnings per share rose to $3.31, up 46.5% year-over-year. This growth was primarily driven by the company's Ocean Transportation segment, particularly its China service.

The consolidated revenue increased by 9.6% to $847.4 million, while consolidated operating income jumped 28.9% to $124.6 million. These figures indicate Matson's ability to capitalize on favorable market conditions, especially in the transpacific trade.

Of particular note is the performance of Matson's China service, which saw significantly higher freight rates. This was attributed to a supportive U.S. economic environment, strong consumer demand and tighter supply chain conditions. The company expects these elevated rates to continue through the traditional peak season in Q3 and early Q4.

Matson's domestic trade lanes showed mixed results. Alaska volumes increased due to additional sailings, while Hawaii and Guam saw lower volumes. The company's Logistics segment also performed well, with operating income increasing 9.1% year-over-year.

Looking ahead, Matson has raised its full-year 2024 outlook for Consolidated Operating Income, expecting it to be meaningfully higher in Q3 and moderately higher in Q4 compared to 2023. This positive outlook, combined with the company's strong balance sheet and ongoing share repurchase program, suggests a favorable trajectory for Matson in the near term.

Matson's Q2 2024 results reveal interesting dynamics in the logistics and shipping industry. The company's success in its China service underscores the ongoing shift from air freight to expedited ocean shipping, a trend likely to continue as e-commerce grows. This shift presents both opportunities and challenges for logistics providers.

The increase in China container volume by 3% year-over-year, coupled with significantly higher freight rates, indicates strong demand for reliable, fast ocean transit options. Matson's ability to capitalize on this demand demonstrates the value of its differentiated service offering in a competitive market.

However, the domestic tradelanes present a more complex picture. The decrease in Hawaii container volume by 3.6% and Guam volume by 6.1% suggests potential economic headwinds in these regions. The company attributes this to lower general demand and fewer sailings, which could be early indicators of economic slowdown in these markets.

The Logistics segment's performance is particularly noteworthy. Despite a marginal 0.6% increase in revenue, operating income grew by 9.1%. This improvement in profitability, primarily driven by supply chain management, highlights the importance of efficient operations and value-added services in the logistics sector.

Looking forward, Matson's expectation of continued elevated freight rates during the peak season suggests ongoing supply chain constraints and strong demand. However, the uncertainty beyond the peak season underscores the volatility in the global shipping market. Logistics providers and shippers alike should prepare for potential market shifts and focus on flexibility and efficiency to navigate the evolving landscape.

Matson's Q2 2024 results provide valuable insights into current market trends and consumer behavior. The company's performance reflects broader economic patterns that are shaping the shipping and logistics industry.

The significant increase in freight rates and volume for Matson's China service is particularly telling. This surge indicates a robust consumer demand in the U.S., despite inflationary pressures. It also suggests that supply chain bottlenecks are persisting, creating opportunities for expedited shipping services. The company's expectation that this trend will continue through the peak season aligns with forecasts of strong retail performance in the latter half of 2024.

However, the domestic market presents a more nuanced picture. The decrease in Hawaii container volume by 3.6% and the mention of "lower general demand" could be early indicators of a slowdown in consumer spending. This aligns with concerns about the impact of higher inflation and interest rates on discretionary income.

The Alaska market's positive performance, with a 4.9% increase in container volume, stands out. This growth, coupled with Matson's expectation of continued economic expansion in Alaska, suggests regional variations in economic recovery and growth across the U.S.

Matson's success in its Logistics segment, particularly in supply chain management, reflects a broader trend towards integrated, end-to-end logistics solutions. As supply chains become more complex, there's increasing demand for comprehensive management services that can navigate global uncertainties and optimize operations.

Overall, Matson's results and outlook suggest a market characterized by strong but potentially peaking demand, persistent supply chain challenges and increasing importance of specialized, high-value logistics services. These trends are likely to shape strategic decisions across the retail, e-commerce and logistics sectors in the coming months.

  • 2Q24 EPS of $3.31 versus $2.26 in 2Q23
  • 2Q24 Net Income of $113.2 million versus $80.8 million in 2Q23
  • 2Q24 Consolidated Operating Income of $124.6 million versus $96.7 million in 2Q23
  • 2Q24 EBITDA of $171.5 million versus $140.5 million in 2Q23
  • Repurchased approximately 0.6 million shares in 2Q24
  • Raising outlook for Full Year 2024 Consolidated Operating Income

HONOLULU, Hawaii, Aug. 1, 2024 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $113.2 million, or $3.31 per diluted share, for the quarter ended June 30, 2024.  Net income for the quarter ended June 30, 2023 was $80.8 million, or $2.26 per diluted share.  Consolidated revenue for the second quarter 2024 was $847.4 million compared with $773.4 million for the second quarter 2023.

"Matson performed well in the second quarter with higher year-over-year operating income in both Ocean Transportation and Logistics business segments," said Chairman and Chief Executive Officer Matt Cox.  "Within Ocean Transportation, our China service saw significantly higher year-over-year freight rates and was the primary driver of the increase in consolidated operating income.  A supportive economic and consumer demand environment in the U.S. coupled with tighter supply chain conditions led to elevated freight rates for our expedited Transpacific services.  In the near term, we expect freight rates to remain elevated as long as the underlying economic, supply chain, and geopolitical conditions persist.  Regardless of the environment, we expect the shift from air freight to expedited ocean and the continued growth of e-commerce goods to drive long-term demand for our China service, which offers fast and reliable ocean transits and unmatched destination services at a substantially better value proposition."

Mr. Cox added, "In our domestic tradelanes, we saw higher year-over-volumes in Alaska primarily due to two additional northbound sailings, while Hawaii and Guam saw lower year-over-year volumes.  Logistics operating income in the second quarter increased year-over-year on the strength of supply chain management."

"Looking ahead, we expect our China service to continue to see elevated freight rates during the traditional peak season in the third and early fourth quarters.  For our domestic tradelanes, we expect volumes to approach the levels achieved in 2023, absent a significant change in the trajectory of the U.S. economy.  For Ocean Transportation in the third quarter 2024, we expect operating income to be meaningfully higher than the $118.2 million achieved last year, and in the fourth quarter 2024, we expect Ocean Transportation operating income to be moderately higher than the $66.4 million achieved in the fourth quarter 2023.  For Logistics, we expect operating income in both the third and fourth quarters of 2024 to approximate the levels achieved last year.  As a result, we now expect Matson's consolidated third quarter 2024 operating income to be meaningfully higher than the $132.1 million achieved in the third quarter 2023, and fourth quarter 2024 consolidated operating income to be moderately higher than the $75.3 million achieved in the fourth quarter 2023."

Second Quarter 2024 Discussion and Outlook for 2024

Ocean Transportation:  The Company's container volume in the Hawaii service in the second quarter 2024 was 3.6 percent lower year-over-year.  The decrease was primarily due to lower general demand.  Tourist arrivals decreased year-over-year primarily due to significantly lower visitor traffic to Maui as a result of the wildfires last year.  The Company expects volume in 2024 to be modestly lower than the level achieved in 2023, primarily due to 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 second quarter 2024 compared to the year ago period.  The Company's container volume in the second quarter 2024 also increased 3.0 percent year-over-year.  The elevated freight rates were primarily due to a supportive economic and consumer demand environment in the U.S. coupled with tighter supply chain conditions, and were not consistent with a normalized operating environment.  The Company expects its China service to continue to see elevated rates during the traditional peak season in the third and early fourth quarters, but the freight rate trajectory after the peak season is uncertain.  In the near term, the Company expects freight rates to remain elevated as long as the underlying economic, supply chain, and geopolitical conditions persist.  The timing of when rates will eventually normalize likely depends on the duration and timing of several factors that influence supply and demand dynamics in the tradelane.  Regardless of this uncertainty, the Company expects the shift from air freight to expedited ocean and the continued growth of e-commerce goods to drive long-term demand for its China service.

In Guam, the Company's container volume in the second quarter 2024 decreased 6.1 percent year-over-year.  The decrease was primarily due to one less sailing.  In the near term, the Company expects continued improvement in the Guam economy underpinned by a low unemployment rate.  For 2024, the Company expects volume to approach the level achieved last year.

In Alaska, the Company's container volume for the second quarter 2024 increased 4.9 percent year-over-year primarily due to two additional northbound sailings.  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 second quarter 2024 from the Company's SSAT joint venture investment was $1.2 million, or $2.6 million higher than the second quarter 2023.  The increase was primarily due to higher lift volume.  For 2024, the Company expects the contribution from SSAT to be modestly higher than the levels achieved in 2023 due to an expected increase in lift volumes.

As a result of the outlook trends noted above, the Company expects third quarter 2024 operating income for Ocean Transportation to be meaningfully higher than the $118.2 million achieved last year, and in the fourth quarter 2024, the Company expects Ocean Transportation operating income to be moderately higher than the $66.4 million achieved in the fourth quarter 2023.

Logistics:  In the second quarter 2024, operating income for the Company's Logistics segment was $15.6 million, or $1.3 million higher compared to the level achieved in the second quarter 2023.  The increase was primarily due to the strength of supply chain management.  The Company expects operating income in both the third and fourth quarters of 2024 to approximate the levels achieved last year.

Consolidated Operating Income:  The Company expects Matson's third quarter 2024 consolidated operating income to be meaningfully higher than the $132.1 million achieved in the third quarter 2023, and fourth quarter 2024 consolidated operating income to be moderately 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 $45 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. 

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 second quarter 2024, the Company's effective tax rate was 20.9 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:  In the second quarter 2024, the Company made capital expenditure payments excluding vessel construction expenditures of $32.7 million, capitalized vessel construction expenditures of $37.1 million, and dry-docking payments of $12.1 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, expenditures for LNG installations and reengining on existing vessels of approximately $85 to $95 million, and dry-docking payments of approximately $35 million.

Results By Segment


Ocean Transportation — Three months ended June 30, 2024 compared with 2023




Three Months Ended June 30, 


(Dollars in millions)


2024


2023


Change


Ocean Transportation revenue


$

689.9


$

616.9


$

73.0


11.8

%

Operating costs and expenses



(580.9)



(534.5)



(46.4)


8.7

%

Operating income


$

109.0


$

82.4


$

26.6


32.3

%

Operating income margin



15.8

%


13.4

%



















Volume (Forty-foot equivalent units (FEU), except for automobiles) (1)













Hawaii containers



35,100



36,400



(1,300)


(3.6)

%

Hawaii automobiles



8,600



9,800



(1,200)


(12.2)

%

Alaska containers



21,500



20,500



1,000


4.9

%

China containers



37,800



36,700



1,100


3.0

%

Guam containers



4,600



4,900



(300)


(6.1)

%

Other containers (2)



4,400



4,400




%

_________________________

(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 $73.0 million, or 11.8 percent, during the three months ended June 30, 2024, compared with the three months ended June 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 and Alaska, partially offset by lower volume in Hawaii.

On a year-over-year FEU basis, Hawaii container volume decreased 3.6 percent primarily due to lower general demand; Alaska volume increased 4.9 percent primarily due to two additional northbound sailings; China volume was 3.0 percent higher; Guam volume decreased 6.1 percent primarily due to one less sailing; and Other containers volume was flat.

Ocean Transportation operating income increased $26.6 million, or 32.3 percent, during the three months ended June 30, 2024, compared with the three months ended June 30, 2023.  The increase was primarily due to significantly higher freight rates in China, partially offset by higher vessel operating costs (including fuel-related expenses) and higher selling, general and administrative costs.

The Company's SSAT terminal joint venture investment contributed $1.2 million during the three months ended June 30, 2024, compared to a loss of $1.4 million during the three months ended June 30, 2023.  The increase was primarily driven by higher lift volume.

Ocean Transportation — Six months ended June 30, 2024 compared with 2023




Six Months Ended June 30, 


(Dollars in millions)


2024


2023


Change


Ocean Transportation revenue


$

1,268.9


$

1,167.9


$

101.0


8.6

%

Operating costs and expenses



(1,132.3)



(1,057.7)



(74.6)


7.1

%

Operating income


$

136.6


$

110.2


$

26.4


24.0

%

Operating income margin



10.8

%


9.4

%



















Volume (Forty-foot equivalent units (FEU), except for automobiles) (1)













Hawaii containers



69,700



71,600



(1,900)


(2.7)

%

Hawaii automobiles



15,000



19,200



(4,200)


(21.9)

%

Alaska containers



40,300



40,300




%

China containers



66,700



66,800



(100)


(0.1)

%

Guam containers



9,500



9,800



(300)


(3.1)

%

Other containers (2)



8,000



8,500



(500)


(5.9)

%

_________________________

(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 $101.0 million, or 8.6 percent, during the six months ended June 30, 2024, compared with the six months ended June 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 and lower fuel-related surcharge revenue.

On a year-over-year FEU basis, Hawaii container volume decreased 2.7 percent primarily due to lower general demand; Alaska volume was flat; China volume decreased 0.1 percent; Guam volume decreased 3.1 percent primarily due to one less sailing; and Other containers volume decreased 5.9 percent.

Ocean Transportation operating income increased $26.4 million, or 24.0 percent, during the six months ended June 30, 2024, compared with the six months ended June 30, 2023.  The increase was primarily due to significantly higher freight rates in China, primarily offset by higher vessel operating costs (including fuel-related expenses) and higher selling, general and administrative costs.

The Company's SSAT terminal joint venture investment contributed $1.6 million during the six months ended June 30, 2024, compared to a loss of $3.2 million during the six months ended June 30, 2023.  The increase was primarily driven by higher lift volume.

Logistics — Three months ended June 30, 2024 compared with 2023




Three Months Ended June 30, 


(Dollars in millions)


2024


2023


Change


Logistics revenue


$

157.5


$

156.5


$

1.0


0.6

%

Operating costs and expenses



(141.9)



(142.2)



0.3


(0.2)

%

Operating income


$

15.6


$

14.3


$

1.3


9.1

%

Operating income margin



9.9

%


9.1

%






Logistics revenue increased $1.0 million, or 0.6 percent, during the three months ended June 30, 2024, compared with the three months ended June 30, 2023.  The increase was primarily due to higher revenue in supply chain management.

Logistics operating income increased $1.3 million, or 9.1 percent, during the three months ended June 30, 2024, compared with the three months ended June 30, 2023.  The increase was primarily due to a higher contribution from supply chain management.

Logistics — Six months ended June 30, 2024 compared with 2023




Six Months Ended June 30, 


(Dollars in millions)


2024


2023


Change


Logistics revenue


$

300.6


$

310.3


$

(9.7)


(3.1)

%

Operating costs and expenses



(275.7)



(285.1)



9.4


(3.3)

%

Operating income


$

24.9


$

25.2


$

(0.3)


(1.2)

%

Operating income margin



8.3

%


8.1

%






Logistics revenue decreased $9.7 million, or 3.1 percent, during the six months ended June 30, 2024, compared with the six months ended June 30, 2023.  The decrease was primarily due to lower revenue in transportation brokerage.

Logistics operating income decreased $0.3 million, or 1.2 percent, during the six months ended June 30, 2024, compared with the six months ended June 30, 2023.  The decrease was primarily due to a lower contribution from transportation brokerage, partially offset by a higher contribution from supply chain management.

Liquidity, Cash Flows and Capital Allocation

Matson's Cash and Cash Equivalents increased by $34.2 million from $134.0 million at December 31, 2023 to $168.2 million at June 30, 2024.  During the quarter, the Company received a federal tax refund related to the Company's 2021 federal tax return of $118.6 million and interest income of $10.2 million earned on the federal income tax refund.  As of June 30, 2024, the Company's Capital Construction Fund was $613.9 million consisting of cash and cash equivalents and investments in fixed-rate U.S. Treasuries.  Matson generated net cash from operating activities of $344.5 million during the six months ended June 30, 2024, compared to $246.5 million during the six months ended June 30, 2023.  Capital expenditures (including capitalized vessel construction expenditures) totaled $125.1 million for the six months ended June 30, 2024, compared with $126.3 million for the six months ended June 30, 2023.  Total debt decreased by $19.9 million during the six months to $420.7 million as of June 30, 2024, of which $381.0 million was classified as long-term debt.[1]  As of June 30, 2024, Matson had available borrowings under its revolving credit facility of $644.2 million.

During the second quarter 2024, Matson repurchased approximately 0.6 million shares for a total cost of $72.2 million.  As of the end of the second quarter 2024, there were approximately 1.4 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 September 5, 2024 to all shareholders of record as of the close of business on August 1, 2024.

1 Total debt is presented before any reduction for deferred loan fees as required by GAAP.

Teleconference and Webcast

A conference call is scheduled on August 1, 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 second quarter results.



Date of Conference Call:

Thursday, August 1, 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/BI46275cd6dd3e4e0f822264460aac8378  

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; the shift from air freight to expedited ocean; growth of e-commerce goods; demand for our China service; duration and timing of factors influencing supply and demand dynamics; economic growth and drivers in Hawaii, Alaska and Guam; population growth; discretionary income; interest rates; tourism levels; recovery from the Maui wildfires; unemployment rates; job growth; construction activity; inflation levels; contribution from and lift volume at SSAT; 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


Six Months Ended



June 30, 


June 30, 

(In millions, except per share amounts)


2024


2023


2024


2023

Operating Revenue:













Ocean Transportation


$

689.9


$

616.9


$

1,268.9


$

1,167.9

Logistics



157.5



156.5



300.6



310.3

Total Operating Revenue



847.4



773.4



1,569.5



1,478.2














Costs and Expenses:













Operating costs



(646.9)



(604.7)



(1,259.1)



(1,202.2)

Income (Loss) from SSAT



1.2



(1.4)



1.6



(3.2)

Selling, general and administrative



(77.1)



(70.6)



(150.5)



(137.4)

Total Costs and Expenses



(722.8)



(676.7)



(1,408.0)



(1,342.8)














Operating Income



124.6



96.7



161.5



135.4

Interest income



18.8



8.7



27.6



16.9

Interest expense



(2.1)



(2.9)



(4.3)



(7.4)

Other income (expense), net



1.8



1.8



3.6



3.6

Income before Taxes



143.1



104.3



188.4



148.5

Income taxes



(29.9)



(23.5)



(39.1)



(33.7)

Net Income


$

113.2


$

80.8


$

149.3


$

114.8














Basic Earnings Per Share


$

3.34


$

2.28


$

4.38


$

3.21

Diluted Earnings Per Share


$

3.31


$

2.26


$

4.33


$

3.19














Weighted Average Number of Shares Outstanding:













Basic



33.9



35.5



34.1



35.8

Diluted



34.2



35.7



34.5



36.0

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)




June 30, 


December 31, 

(In millions)


2024


2023

ASSETS







Current Assets:







Cash and cash equivalents


$

168.2


$

134.0

Other current assets



378.0



468.3

Total current assets



546.2



602.3

Long-term Assets:







Investment in SSAT



86.4



85.5

Property and equipment, net



2,151.2



2,089.9

Goodwill



327.8



327.8

Intangible assets, net



169.1



176.4

Capital Construction Fund



613.9



599.4

Other long-term assets



379.3



413.3

Total long-term assets



3,727.7



3,692.3

Total assets


$

4,273.9


$

4,294.6








LIABILITIES AND SHAREHOLDERS' EQUITY







Current Liabilities:







Current portion of debt


$

39.7


$

39.7

Other current liabilities



544.8



522.6

Total current liabilities



584.5



562.3

Long-term Liabilities:







Long-term debt, net of deferred loan fees



370.0



389.3

Deferred income taxes



679.9



669.3

Other long-term liabilities



241.0



273.0

Total long-term liabilities



1,290.9



1,331.6








Total shareholders' equity



2,398.5



2,400.7

Total liabilities and shareholders' equity


$

4,273.9


$

4,294.6

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)




Six Months Ended June 30, 


(In millions)


2024


2023


Cash Flows From Operating Activities:








Net income


$

149.3


$

114.8


Reconciling adjustments:








Depreciation and amortization



76.4



72.1


Amortization of operating lease right of use assets



68.1



75.7


Deferred income taxes



7.5



(3.0)


Share-based compensation expense



12.0



9.8


(Income) loss from SSAT



(1.6)



3.2


Distributions from SSAT



14.0




Other



(6.5)



(1.7)


Changes in assets and liabilities:








Accounts receivable, net



(28.9)



(16.8)


Deferred dry-docking payments



(17.3)



(8.9)


Deferred dry-docking amortization



13.7



12.4


Prepaid expenses and other assets



114.6



68.3


Accounts payable, accruals and other liabilities



17.4



3.6


Operating lease liabilities



(69.0)



(76.3)


Other long-term liabilities



(5.2)



(6.7)


Net cash provided by operating activities



344.5



246.5










Cash Flows From Investing Activities:








Capitalized vessel construction expenditures



(38.2)



(50.8)


Capital expenditures (excluding vessel construction expenditures)



(86.9)



(75.5)


Proceeds from disposal of property and equipment, net



3.2



0.1


Payment for intangible asset acquisition





(12.4)


Cash deposits and interest into the Capital Construction Fund, net



(45.0)



(113.1)


Withdrawals from Capital Construction Fund, net



35.8



49.9


Net cash used in investing activities



(131.1)



(201.8)










Cash Flows From Financing Activities:








Repayments of debt



(19.9)



(55.1)


Dividends paid



(22.1)



(22.4)


Repurchase of Matson common stock



(120.1)



(82.5)


Tax withholding related to net share settlements of restricted stock units



(17.0)



(12.5)


Net cash used in financing activities



(179.1)



(172.5)










Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash



34.3



(127.8)


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


$

170.6


$

125.9










Reconciliation of Cash, Cash Equivalents and Restricted Cash, End of the Period:








Cash and Cash Equivalents


$

168.2


$

122.0


Restricted Cash



2.4



3.9


Total Cash and Cash Equivalents, and Restricted Cash, End of the Period


$

170.6


$

125.9










Supplemental Cash Flow Information:








Interest paid, net of capitalized interest


$

3.5


$

7.1


Income tax payments (refunds), net


$

(114.3)


$

(28.8)










Non-cash Information:








Capital expenditures included in accounts payable, accruals and other liabilities


$

15.3


$

8.4


Non-cash payment for intangible asset acquisition


$


$

4.1


Accrued dividends


$

11.4


$

11.2


 

MATSON, INC. AND SUBSIDIARIES

Net Income to EBITDA Reconciliations

(Unaudited)





Three Months Ended







June 30, 


Last Twelve

(In millions)



2024


2023


Change


Months

Net Income



$

113.2


$

80.8


$

32.4


$

331.6

Subtract:

Interest income



(18.8)



(8.7)



(10.1)



(46.7)

Add:

Interest expense



2.1



2.9



(0.8)



9.1

Add:

Income taxes



29.9



23.5



6.4



81.3

Add:

Depreciation and amortization



38.2



35.8



2.4



146.9

Add:

Dry-dock amortization



6.9



6.2



0.7



26.6

EBITDA (1)



$

171.5


$

140.5


$

31.0


$

548.8


















Six Months Ended







June 30, 




(In millions)



2024


2023


Change




Net Income



$

149.3


$

114.8


$

34.5




Subtract:

Interest income



(27.6)



(16.9)



(10.7)




Add:

Interest expense



4.3



7.4



(3.1)




Add:

Income taxes



39.1



33.7



5.4




Add:

Depreciation and amortization



75.5



70.8



4.7




Add:

Dry-dock amortization



13.7



12.4



1.3




EBITDA (1)



$

254.3


$

222.2


$

32.1




__________________________

(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.

 



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SOURCE Matson, Inc.

FAQ

What was Matson's (MATX) earnings per share in Q2 2024?

Matson (MATX) reported earnings per share of $3.31 in Q2 2024, compared to $2.26 in Q2 2023.

How much did Matson's (MATX) consolidated revenue increase in Q2 2024?

Matson's (MATX) consolidated revenue increased to $847.4 million in Q2 2024, up from $773.4 million in Q2 2023.

What is Matson's (MATX) outlook for Q3 2024 operating income?

Matson (MATX) expects Q3 2024 consolidated operating income to be meaningfully higher than the $132.1 million achieved in Q3 2023.

How many shares did Matson (MATX) repurchase in Q2 2024?

Matson (MATX) repurchased approximately 0.6 million shares in Q2 2024.

Matsons, Inc.

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