Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call August 1, 2024 1 Second Quarter 2024 Earnings Conference Call
Slide 2: Forward-Looking Statements
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 August 1, 2024. We believe that our expectations and assumptions are reasonable. Actual re
Slide 3: Opening Remarks
Opening Remarks • Our Ocean Transportation and Logistics business segments performed well with higher YoY operating income in 2Q24 • Ocean Transportation 2Q24: – Our China service experienced significantly higher YoY freight rates and was the primary driver of the increase in consolidated operating
Slide 4: Hawaii Service
Hawaii Service Second Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 3.6% YoY due to lower general demand 41,000 • Tourist arrivals in 2Q24 were lower YoY 39,000 – Maui tourism remains impacted by last year’s wildfires 37,000 (3.6)% 35,000 Full Year 2024 Outlook 3
Slide 5: Hawaii Service – Current Business Trends
Hawaii Service – Current Business Trends Select Hawaii Economic Indicators UHERO Projections (3) Unemployment Rate and Visitor Arrivals by Air 2024P 2025P 2026P 10.0% 1,000 Real GDP 1.5% 3.0% 2.5% 9.0% 900 Construction Jobs Growth 5.7% 1.1% 1.3% 8.0% 800 Population Growth (0.2)% 0.0% 0.1% Visitor Ar
Slide 6: China Service
China Service Second Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 3.0% YoY 43,000 – Continued to see high level of demand from 3.0% e-commerce and garments verticals 38,000 • Significantly higher average freight rates YoY 33,000 28,000 23,000 18,000 13,000 8,000
Slide 7: China Service – Current Business Trends
China Service – Current Business Trends • 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 2Q24 – Supply and demand dynamics in 2Q24 were not consistent with a norma
Slide 8: Guam Service
Guam Service Second Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 6.1% YoY 5,500 – One less sailing compared to last year 5,000 (6.1)% 4,500 Full Year 2024 Outlook 4,000 • Expect continued improvement in the economy underpinned by a low unemployment rate • Expect
Slide 9: Alaska Service
Alaska Service Second Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 4.9% YoY 24,000 – Two additional northbound sailings compared to last year 22,000 4.9% 20,000 18,000 Full Year 2024 Outlook 16,000 • Expect continued economic growth in Alaska 14,000 supported by
Slide 10: SSAT Joint Venture
SSAT Joint Venture Second Quarter 2024 Performance Equity in Income of Joint Venture • Terminal joint venture contribution was $1.2 $ 5.0 million; YoY increase of $2.6 million $ 4.0 – Primarily due to higher lift volumes $ 3.0 Full Year 2024 Outlook $ 2.0 $ in millions • Expect contribution to be mo
Slide 11: Matson Logistics
Matson Logistics Second Quarter 2024 Performance Operating Income • Operating income of $15.6 million; YoY increase $ 18.0 of approximately $1.3 million $ 16.0 – Higher contribution from supply chain management $ 14.0 Full Year 2024 Outlook $ 12.0 $ in millions $ 10.0 • Expect modest improvement in
Slide 12: Financial Results – Summary Income Statement
Financial Results – Summary Income Statement Year-to-Date Second Quarter YTD Ended 6/30 Δ Quarter Ended 6/30 Δ ($ in millions, except per share data) 2024 2023 $ % 2024 2023 $ % Revenue Ocean Transportation $ 1,268.9 $ 1,167.9 $ 101.0 8.6% $ 689.9 $ 616.9 $ 73.0 11.8% Logistics 300.6 310.3 ( 9.7) (3
Slide 13: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Last Twelve Months Ended June 30, 2024 $700.0 $608.5 ($41.7) $600.0 ($206.9) $500.0 $ in millions $400.0 ($40.3) ($24.6) ($44.7) $300.0 ($192.8) $200.0 $100.0 ($12.8) $44.7 $0.0 Cash Flow from Paydown of Maint. New Vessel Capital Dividends Share Other Net change in O
Slide 14: Financial Results – Summary Balance Sheet
Financial Results – Summary Balance Sheet June 30, December 31, Share Repurchase ($ in millions) 2024 2023 ASSETS • 2Q24: ~0.6 million shares repurchased for Cash and cash equivalents $ 168.2 $ 134.0 total cost of $72.2 million Other current assets 378.0 468.3 • 1H24: ~1.0 million shares repurchased
Slide 15: 2024 Outlook
2024 Outlook 3Q & 4Q Outlook by Business Segment FY 2024 Outlook Items Ocean Transportation – Operating Income Depreciation and Approximately $180 million, including $27 million in dry-dock Amortization amortization To be meaningfully higher than the 3Q24 $118.2 million achieved in 3Q23 Interest Inc
Slide 16: Revised Capital Expenditures Outlook
Revised Capital Expenditures Outlook ($ in millions) FY 2024 Comments Maintenance and other capital $110 – 120 expenditures Expenditures for LNG $85 – 95 • Manukai currently in drydock for installation of new engine and equipment installations and reengining to operate on LNG and conventional fuels
Slide 17: Appendix
Appendix 17 Second Quarter 2024 Earnings Conference Call
Slide 18: Appendix – Non-GAAP Measures
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, help investors understand our ability to incur and