Matson, Inc. · NYSE:MATX
Matson — Q2 2021 Earnings Presentation
19 slides from Matson's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
1 Second Quarter 2021 Earnings Conference Call Second Quarter 2021 Earnings Conference Call July 29, 2021
Slide 2: Forward-Looking Statements
2 Second Quarter 2021 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 July 29, 2021. We believe that our expectat
Slide 3: Opening Remarks
3 Second Quarter 2021 Earnings Conference Call Opening Remarks • Recap of Matson’s 2Q21 results: – Matson’s Ocean Transportation and Logistics businesses continued to perform well as the U.S. economy further recovers from the pandemic – Ocean Transportation: • China strength – CLX+ voyages and incre
Slide 4: Driving Organic Growth by Leveraging Matson Brand
4 Second Quarter 2021 Earnings Conference Call Driving Organic Growth by Leveraging Matson Brand Service Date Introduced Key Features China-Long Beach Express+ (CLX+) May 2020 • Weekly service consisting of six chartered vessels • Second fastest end-to-end transit in the Transpacific only behind our
Slide 5: Hawaii Service Second Quarter 2021 Performance
5 Second Quarter 2021 Earnings Conference Call Hawaii Service Second Quarter 2021 Performance • Container volume increased 9.9% YoY – Higher retail and hospitality-related demand due to the reopening of the Hawaii economy versus the pandemic lows in the year ago period – Partially offset by Pasha dr
Slide 6: Hawaii Service – Current Business Trends
6 Second Quarter 2021 Earnings Conference Call Hawaii Service – Current Business Trends Select Hawaii Economic Indicators (1) Source: https://files.hawaii.gov/dbedt/news/nr-21-23.pdf (2) Source: https://www.hawaiitourismauthority.org/media/7583/june-21.xlsx (3) Source: https://uhero.hawaii.edu/wp-co
Slide 7: China Service Second Quarter 2021 Performance
7 Second Quarter 2021 Earnings Conference Call China Service Second Quarter 2021 Performance Container Volume (FEU Basis) 8,000 13,000 18,000 23,000 28,000 33,000 38,000 43,000 48,000 Q1 Q2 Q3 Q4 2020 2021 Note: 2Q 2020 volume figure includes volume related to seven CLX+ voyages. 3Q 2020, 4Q 2020, 1
Slide 8: China Service – Current Business Trends
8 Second Quarter 2021 Earnings Conference Call China Service – Current Business Trends 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Jan. 2020 Apr. 2020 Jul. 2020 Oct. 2020 Jan. 2021 Apr. 2021 U.S. Retail Trade Inventories/Sales (Adjusted) Source: https://www.census.gov/mtis/www/data/text/timeseries1
Slide 9: Guam Service Second Quarter 2021 Performance
9 Second Quarter 2021 Earnings Conference Call Guam Service Second Quarter 2021 Performance Container Volume (FEU Basis) 3,000 3,500 4,000 4,500 5,000 5,500 6,000 Q1 Q2 Q3 Q4 2020 2021 35.7% • Container volume increased 35.7% YoY – Higher retail-related demand compared to pandemic low in year ago pe
Slide 10: Alaska Service Second Quarter 2021 Performance
10 Second Quarter 2021 Earnings Conference Call Alaska Service Second Quarter 2021 Performance • Container volume increased 15.2% YoY – Higher northbound volume compared to pandemic low in year ago period • Elevated demand for retail-related goods – Higher southbound volume – Addition of AAX volume
Slide 11: SSAT Joint Venture Second Quarter 2021 Performance
11 Second Quarter 2021 Earnings Conference Call SSAT Joint Venture Second Quarter 2021 Performance Equity in Income of Joint Venture $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 Current Business Trends • Terminal joint venture contribution was $12.8 million,
Slide 12: Matson Logistics Second Quarter 2021 Performance
12 Second Quarter 2021 Earnings Conference Call Matson Logistics Second Quarter 2021 Performance Operating Income $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 $ 14.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 • Operating income of $12.9 million; YoY change of $4.0 million – Higher contributions from transpo
Slide 13: Financial Results – Summary Income Statement
13 Second Quarter 2021 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics.
Slide 14: Cash Generation and Uses of Cash
14 Second Quarter 2021 Earnings Conference Call Cash Generation and Uses of Cash ($ 50.0) $ 50.0 $ 150.0 $ 250.0 $ 350.0 $ 450.0 $ 550.0 $ 650.0 Cash Flow from Operations Paydown of Borrowings, net Maint. Capex New Vessel Capex (1) Dividends Other Cash Flows Net Increase in Cash $ in millions Last T
Slide 15: Financial Results – Summary Balance Sheet
15 Second Quarter 2021 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $661.5 million(1) – $37.4 million of debt reduction in 2Q21 • Net Debt of $644.1 million(2) See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics. (1) Total Debt is present
Slide 16: Update on 2021 Capital Expenditures
16 Second Quarter 2021 Earnings Conference Call Update on 2021 Capital Expenditures From 4Q20 Earnings Call 2Q21 Update Comments Maintenance capital expenditures $60 – 70 million $60 – 70 million Scrubber installation payments Approximately $20 million Approximately $20 million • Includes payments o
Slide 17: Appendix
17 Second Quarter 2021 Earnings Conference Call Appendix
Slide 18: Appendix – Non-GAAP Measures
18 Second Quarter 2021 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, he
Slide 19: Appendix – Leveraging the Matson Brand
19 Second Quarter 2021 Earnings Conference Call Appendix – Leveraging the Matson Brand