Matson, Inc. · NYSE:MATX
Matson — Q1 2018 Earnings Presentation
16 slides from Matson's earnings presentation, May 1, 2018
Slide 1: First Quarter 2018 Earnings Conference Call
Matson First Quarter 2018 Earnings Conference Call May 1, 2018
Slide 2: First Quarter 2018 Earnings Conference Call Matson.
First Quarter 2018 Earnings Conference Call Matson.
Slide 3: Hawaii Service
Hawaii Service First Quarter 2018 Performance Container volume decreased 1.9% YoY Primarily due to lower eastbound volume 1 sailing at end of 1Q18 pushed into Q2 Stable market share Modest uptick in economic conditions in Hawaii Core westbound volume essentially flat YoY Construction-related volumes
Slide 4: Hawaii Economic Indicators
Hawaii Economic Indicators Real GDP Growth Construction Jobs Growth Real Building Permits Growth “We continue to have a fairly sanguine view of [construction] industry prospects, given the substantial number of residential projects still in the pipeline and ongoing public infrastructure work. Our ou
Slide 5: China Expedited Service (CLX)
China Expedited Service (CLX) First Quarter 2018 Performance Container volume decreased 22.2% YoY Nearly 2/3 of decline due to two fewer sailings: 1 sailing at end of 1Q18 pushed into Q2 1 dry-dock return voyage in 1Q17 Lower volume during Lunar New Year period Continued to realize a sizeable rate p
Slide 6: Guam Service
Guam Service First Quarter 2018 Performance Container volume decreased 9.3% YoY Continued competitive pressure from APL Market was essentially flat YoY Container Volume (FEU Basis) Full Year 2018 Outlook Expect heightened competitive environment and lower volume Matson’s significant transit advantag
Slide 7: Alaska Service
Alaska Service First Quarter 2018 Performance Container volume increased 10.1% YoY primarily due to higher NB volume TOTE dry-dock volume 1 sailing at end of 4Q17 pushed into January Early signs of Alaska economy beginning to stabilize Container Volume (FEU Basis) Full Year 2018 Outlook Expect FY 20
Slide 8: SSAT Joint Venture
SSAT Joint Venture First Quarter 2018 Performance Terminal joint venture contribution was $10.5 million, $5.6 million higher than last year Nearly half of increase related to increased lift volume Balance of YoY increase related to one-time items Equity in Income of Joint Venture Full Year 2018 Outl
Slide 9: Matson Logistics
Matson Logistics First Quarter 2018 Performance Operating income increased $2.3 million YoY to $4.2 million Improved performance across most service lines Tight truck market plays to Matson Logistics’ strengths in customer service Span Alaska marked improvement YoY as economy is showing signs of sta
Slide 10: Financial Results – Summary Income Statement
Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics. (1) Includes a non-cash tax adjustment of $3.3 million resulting from a reduction in the alternative minimum tax receivable under the Tax Cuts and Jobs Act. Quarters Ended 3/31 D
Slide 11: Financial Results – Summary Balance Sheet
Financial Results – Summary Balance Sheet Total debt of $903.6 million Net debt of $889.0 million Net debt-to-LTM EBITDA of 2.9x See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics. Debt Levels ($ in millions) ASSETS Cash and cash equivalents $ 13.7 $ 19.8 Other current asset
Slide 12: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash (1) Includes capitalized interest and owner’s items. ($ 50.0) $ 0.0 $ 50.0 $ 100.0 $ 150.0 $ 200.0 $ 250.0 $ 300.0 $ 350.0 $ 400.0 $ 450.0 Cash Flow from Operations Net Borrowings CCF Withdrawal Maint. Capex New Vessel Capex (1) Dividends Share Repurchase Other Net d
Slide 13: New Vessel Payments and Percent of Completion
New Vessel Payments and Percent of Completion Vessel Construction Expenditures Actual and Estimated Vessel Progress Payments FY 2018 ($ in millions) 1Q Cash Capital Expenditures $ 54.0 Capitalized Interest 3.7 Capitalized Vessel Construction Expenditures $ 57.7 Cumulative through 12/31/17 Fiscal Yea
Slide 14: 2018 Outlook
2018 Outlook Outlook Items FY 2018 2Q 2018 Operating income: Ocean Transportation Modestly higher than $128.8 million achieved in FY 2017 To approach 2Q17 level of $39.0 million Logistics Moderately higher than $20.6 million achieved in FY 2017 Moderately higher than 2Q17 level of $6.9 million Depre
Slide 15: Matson Addendum
Matson Addendum
Slide 16: Addendum – Non-GAAP Measures
Addendum – 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, help investors understand our ability to incur and