HONOLULU, July 9, 2020 /PRNewswire/ -- Matson, Inc.
(NYSE: MATX) announces preliminary second quarter financial
results, provides a business update and announces second quarter
earnings call date.
Matt Cox, Matson's Chairman and
Chief Executive Officer, commented, "Matson's businesses performed
well in the second quarter despite challenges from the COVID-19
pandemic and subsequent economic effects. The operational and
financial actions we have taken in the last few months have helped
Matson through this difficult period and have led to
opportunities. One such opportunity, the introduction of the
additional CLX vessel charter sailings, principally drove the
increase in consolidated operating income year-over-year. We
will continue to offer this supplemental 'CLX+' service through the
peak season and potentially longer as our customers' needs
dictate."
Mr. Cox added, "Overall, our performance in the second quarter
was led primarily by the strength in our China service, including chartered voyages in
addition to our normal weekly vessels that sailed at
capacity. Compared with our expectations in early May at the
time of our last earnings call, we also had better-than-expected
volume in our Hawaii tradelane as
we carried a portion of Pasha's volume due in part to the
dry-docking of one of its vessels, and we had better-than-expected
volume in our Alaska tradelane as
the local economy gradually reopened creating improved freight
demand. We also made good progress on our
previously-announced cost management initiatives. As a
result, Matson expects second quarter operating income for Ocean
Transportation of $40.5 to
$42.5 million and Logistics operating
income of $8.0 to $9.0 million. We also expect second quarter
2020 net income and diluted EPS to be $30.4 to $32.6
million and $0.70 to
$0.75, respectively."
The year-over-year improvement in Ocean Transportation operating
income was primarily due to the strength of our CLX tradelane,
including the additional CLX chartered voyages, partially offset by
declines in our domestic tradelanes. The year-over-year
decline in Logistics operating income was due to lower
contributions from transportation brokerage and freight
forwarding.
Second Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended June 30,
2020 compared to the three months ended June 30, 2019 and on a FEU basis:
- Hawaii container volume
decreased 4.0 percent primarily due to lower volume from the
state's COVID-19 mitigation efforts including restrictions on
tourism, partially offset by volume associated with the dry-docking
of one of Pasha's vessels;
- Alaska volume decreased 9.0
percent with lower northbound volume primarily due to lower demand
for retail-related goods, as an effect of the state's COVID-19
mitigation efforts, and one less sailing compared to the prior year
period, and moderately lower southbound volume;
- China volume was 68.1 percent
higher primarily due to volume from chartered voyages in addition
to the regular CLX service;
- Guam volume was 12.5 percent
lower primarily due to lower demand for retail-related goods as
COVID-19 mitigation measures remained in effect; and
- Other containers volume decreased 18.8 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 includes containers from services
in various islands in Micronesia
and the South Pacific, and Okinawa,
Japan.
Liquidity and Debt Outstanding
Total debt decreased by $34.9
million during the three months to $890.0 million as of June
30, 2020. As of June 30, 2020, Matson had
available borrowings under its revolving credit facility of
approximately $425 million. The
available borrowings at quarter end is based on the allowable
leverage level under the amended debt agreements and the definition
of EBITDA under the debt agreements. The leverage ratio under
the debt agreements as of June 30,
2020 was below 3.25x.
A slide presentation that accompanies this press release is
available on the Company's website at www.matson.com, under
Investors.
Teleconference and Webcast
A conference call is scheduled on August
5, 2020 at 4:30 p.m. EST when
Matt Cox, Chairman and Chief
Executive Officer, and Joel Wine,
Senior Vice President and Chief Financial Officer, will discuss
Matson's second quarter results.
|
|
Date of Conference
Call:
|
Wednesday August 5,
2020
|
Scheduled
Time:
|
4:30 p.m. EDT / 1:30
p.m. PDT / 10:30 a.m. HST
|
Participant Toll Free
Dial-In #:
|
1-877-312-5524
|
International Dial-In
#:
|
1-253-237-1144
|
The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors. A replay of the conference
call will be available approximately two hours after the call
through August 12, 2020 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
4396458. The slides and audio webcast of the conference call
will be archived for one full quarter on the Company's website 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 to the domestic non-contiguous economies of
Hawaii, Alaska, and Guam, and to other island economies in
Micronesia. Matson also operates a premium, expedited service
from China to Southern California and provides services to
Okinawa, Japan and various islands
in the South Pacific. 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 the continental
U.S. Its integrated, asset-light logistics services include
rail intermodal, highway brokerage, warehousing, freight
consolidation, Asia supply chain
services, and forwarding to Alaska. Additional information
about the Company is available at www.matson.com.
Forward-Looking Statements
Statements in this news release that are not historical facts
are "forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995, including without
limitation those statements regarding operating income, net income,
earnings per share, the COVID-19 pandemic and subsequent economic
effects, additional CLX vessel charter sailings, and operational
changes and cost management initiatives. These statements
involve a number of risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
relevant forward-looking statement, including but not limited to
risks and uncertainties relating to repeal, substantial amendment
or waiver of the Jones Act or its application, or our failure to
maintain our status as a United
States citizen under the Jones Act; regional, national and
international economic conditions; new or increased competition or
improvements in competitors' service levels; fuel prices, our
ability to collect fuel-related surcharges and/or the cost or
limited availability of low-sulfur fuel; delays or cost overruns
related to the installation of scrubbers; our relationship with
vendors, customers and partners and changes in related agreements;
the actions of our competitors; our ability to offer a
differentiated service in China
for which customers are willing to pay a significant premium; the
imposition of tariffs or a change in international trade policies;
the magnitude and timing of the impact of public health crises,
including COVID-19; the ability of the NASSCO shipyard to construct
and deliver Matsonia on the contemplated timeframe; any
unanticipated dry-dock or repair expenses; any delays or cost
overruns related to the modernization of terminals; consummating
and integrating acquisitions; changes in general economic and/or
industry-specific conditions; competition and growth rates within
the logistics industry; freight levels and increasing costs and
availability of truck capacity or alternative means of transporting
freight; changes in relationships with existing truck, rail, ocean
and air carriers; changes in customer base due to possible
consolidation among customers; conditions in the financial markets;
changes in our credit profile and our future financial performance;
our ability to obtain future debt financings; continuation of the
Title XI and CCF programs; the impact of future and pending
legislation, including environmental legislation; government
regulations and investigations; relations with our unions;
satisfactory negotiation and renewal of expired collective
bargaining agreements without significant disruption to Matson's
operations; war, terrorist attacks or other acts of violence; the
use of our information technology and communication systems and
cybersecurity attacks; and the occurrence of marine accidents, poor
weather or natural disasters. 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, our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020, 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.
|
|
Investor Relations
inquiries:
|
News Media
inquiries:
|
Lee
Fishman
|
Keoni
Wagner
|
Matson, Inc.
|
Matson, Inc.
|
510.628.4227
|
510.628.4534
|
lfishman@matson.com
|
kwagner@matson.com
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/matson-announces-preliminary-2q20-results-provides-business-update-and-announces-2q20-earnings-call-date-301091023.html
SOURCE Matson, Inc.