Matson, Inc. · NYSE:MATX
Matson — Q1 2017 Earnings Presentation
16 slides from Matson's earnings presentation, May 3, 2017
Slide 1: First Quarter 2017 Earnings Conference Call
First Quarter 2017 Earnings Conference Call
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made during this call and 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 today, May 3, 2017. We believe that our expectations and assumptions are reasonab
Slide 3: Opening Remarks
Opening Remarks Matson’s core Ocean Transportation businesses performed largely as expected in 1Q2017, declining YOY Timing of fuel surcharge collections Lower volume in Hawaii, Alaska and Guam Higher vessel operating expenses related to the deployment of additional vessel in Hawaii Matson’s Logisti
Slide 4: Net Income, EBITDA, EPS – 1Q 2017
Net Income, EBITDA, EPS – 1Q 2017 See the Addendum for a reconciliation of GAAP to non-GAAP for Financial Metrics
Slide 5: Hawaii Service
Hawaii Service First Quarter 2017 Performance Modest westbound market growth Container volume declined YOY 1Q16 benefitted from volume gains related to competitor fleet deployment changes and service issues 2017 Outlook Expect modest market growth, a stable market position, and volume to approximate
Slide 6: Hawaii Economic Indicators
Hawaii Economic Indicators Indicator (% Change YOY) 2014 2015 2016 2017F 2018F Real Gross Domestic Product 1.1 3.9 2.5 2.0 1.7 Visitor Arrivals 2.4 4.5 3.1 2.2 1.1 Construction Jobs 3.5 9.0 7.3 2.0 1.6 Unemployment Rate (%) 4.4 3.6 3.2 2.9 3.0 Residential Building Permits (9.8) 59.3 (13.9) 3.7 8.4 N
Slide 7: China Expedited Service (CLX)
China Expedited Service (CLX) First Quarter 2017 Performance Container volume up 23.4 percent YOY Increased demand for Matson’s expedited service Additional sailing due to vessel return to service from dry-docking 2017 Outlook Expect continued strong demand for Matson’s highly differentiated expedit
Slide 8: Guam Service
Guam Service 2017 Outlook Expect heightened competitive environment and lower volume Matson’s significant service advantage expected to remain at 5 days from Oakland and 8 days from LA/Long Beach First Quarter 2017 Performance Modestly lower volume due to competitive losses associated with APL’s U.S
Slide 9: Alaska Service
Alaska Service 2017 Outlook Lower northbound freight volume due to ongoing economic contraction, partially offset by improved southbound seafood volume With scrubber installation complete, expect lower vessel operating and dry-dock relief expenses Overall, expect modest improvement in our Alaska tra
Slide 10: SSAT Joint Venture
SSAT Joint Venture First Quarter 2017 Performance Terminal joint venture contribution was $2.3 million higher YOY Primarily attributable to improved lift volume 2017 Outlook Expect FY2017 operating income contribution to approximate FY2016 Expect the launch of new global shipping alliances to create
Slide 11: Matson Logistics
Matson Logistics First Quarter 2017 Performance Included freight forwarding operations of Span Alaska for full quarter Impacted by economic contraction in Alaska Lower domestic intermodal and highway brokerage yields 2017 Outlook Expect full year 2017 operating income to be approximately $20 million
Slide 12: 1Q2017 Operating Income
1Q2017 Operating Income SSAT had a $4.9 million contribution in 1Q17 compared to a $2.6 million contribution in 1Q16 1Q16 1Q17 Change Revenue $366.1 $370.0 $3.9 Operating Income $33.0 $14.5 ($18.5) Oper. Income Margin 9.0% 3.9% 1Q16 1Q17 Change Revenue $88.1 $104.4 $16.3 Operating Income $1.6 $1.9 $
Slide 13: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Does not include $3.8 million in other uses of cash Net of cash acquired (2) (1)
Slide 14: 2017 Outlook
2017 Outlook Ocean Transportation operating income for 2017 is expected to be lower than the $141.3 million achieved in 2016 Primarily due to heightened competitive environment in Guam Logistics operating income for full year 2017 expected to be approximately $20 million Depreciation and amortizatio
Slide 15: Addendum
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