Slide 1: First Quarter 2024 Earnings Conference Call
1 First Quarter 2024 Earnings Conference Call First Quarter 2024 Earnings Conference Call April 30, 2024
Slide 2: Forward-Looking Statements
2 First 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 April 30, 2024. We believe that our expectat
Slide 3: Opening Remarks
3 First Quarter 2024 Earnings Conference Call Opening Remarks • We are off to a solid start for the year with Ocean Transportation performing better than expected and Logistics meeting expectations in 1Q24 • Ocean Transportation 1Q24: – Operating income roughly flat YoY – Our China service experienc
Slide 4: Hawaii Service First Quarter 2024 Performance
4 First Quarter 2024 Earnings Conference Call Hawaii Service First Quarter 2024 Performance • Container volume decreased 1.7% YoY due to lower general demand • Tourist arrivals in 1Q24 were comparable YoY; Maui tourism remains impacted by last year’s wildfires Container Volume (FEU Basis) 25,000 27,
Slide 5: Hawaii Service – Current Business Trends
5 First Quarter 2024 Earnings Conference Call Hawaii Service – Current Business Trends UHERO Projections (3) (1) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2024-02-state.xls (2) Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2024-02-maui.xls (3) Source: https:
Slide 6: China Service First Quarter 2024 Performance
6 First Quarter 2024 Earnings Conference Call China Service First 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 decreased 4.0% YoY – Lower volumes for both CLX and MAX • Higher average freight rat
Slide 7: China Service – Current Business Trends
7 First Quarter 2024 Earnings Conference Call China Service – Current Business Trends • Our China service experienced healthy demand coming out of a more traditional post-Lunar New Year period with a gradual recovery of volume after factories reopened and workers returned – Last year had a more acce
Slide 8: Guam Service First Quarter 2024 Performance
8 First Quarter 2024 Earnings Conference Call Guam Service First 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 was flat YoY 0% Full Year 2024 Outlook • Expect continued improvement in the economy with a low unemploy
Slide 9: Alaska Service First Quarter 2024 Performance
9 First Quarter 2024 Earnings Conference Call Alaska Service First Quarter 2024 Performance • Container volume decreased 5.1% YoY – One less northbound sailing compared to last year – Adjusting for one less sailing, northbound volume was roughly flat and overall Alaska volume decreased 1.7% – volume
Slide 10: SSAT Joint Venture First Quarter 2024 Performance
10 First Quarter 2024 Earnings Conference Call SSAT Joint Venture First 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 Q1 Q2 Q3 Q4 $ in millions 2023 2024 • Terminal joint venture contribution was $0.4 million; YoY increase of $
Slide 11: Matson Logistics First Quarter 2024 Performance
11 First Quarter 2024 Earnings Conference Call Matson Logistics First Quarter 2024 Performance Operating Income $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 $ 16.0 Q1 Q2 Q3 Q4 $ in millions 2023 2024 • Operating income of $9.3 million; YoY decrease of approximately $1.6 million – Lower contrib
Slide 12: Financial Results – Summary Income Statement
12 First Quarter 2024 Earnings Conference Call Financial Results – Summary Income Statement See the Appendix for a reconciliation of GAAP to non-GAAP Financial Metrics. First Quarter Quarters Ended 3/31 Δ ($ in millions, except per share data) 2024 2023 $ % Revenue Ocean Transportation $ 579.0 $ 551
Slide 13: Cash Generation and Uses of Cash
13 First Quarter 2024 Earnings Conference Call Cash Generation and Uses of Cash ($100.0) $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 Cash Flow from Operations Capital Construction Fund (2) Net Borrowings Maint. Capex New Vessel Capex (1) Dividends Share Repurchase (3) Other Cash Outflows Net change in c
Slide 14: Financial Results – Summary Balance Sheet
14 First Quarter 2024 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $430.5 million(1) – In 1Q24, reduced total debt by $10.1 million (1) Total Debt is presented before any reduction for deferred loan fees as required by GAAP. Debt Levels Share Repurchase • 1Q24:
Slide 15: 2024 Outlook
15 First Quarter 2024 Earnings Conference Call 2024 Outlook FY 2024 Outlook Items Full Year Second Quarter Operating Income: Ocean Transportation To be higher than the $294.8 million achieved in 2023 To be moderately higher than the $82.4 million achieved in the 2Q23 Logistics To be lower than the $
Slide 16: Reaffirming Capital Expenditures Outlook
16 First Quarter 2024 Earnings Conference Call Reaffirming Capital Expenditures Outlook ($ in millions) FY 2024 FY 2025 FY 2026 Comments Maintenance and other capital expenditures $110 – 120 $100 – 110 $80 – 90 • Includes Phase II and III work at Sand Island, Honolulu LNG installations and reenginin
Slide 17: Appendix
17 First Quarter 2024 Earnings Conference Call Appendix
Slide 18: Appendix – Non-GAAP Measures
18 First 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, hel