Matson, Inc. · NYSE:MATX
Matson — Q1 2021 Earnings Presentation
17 slides from Matson's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
1 First Quarter 2021 Earnings Conference Call First Quarter 2021 Earnings Conference Call April 27, 2021
Slide 2: Forward-Looking Statements
2 First 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 April 27, 2021. We believe that our expectat
Slide 3: Opening Remarks
3 First Quarter 2021 Earnings Conference Call Opening Remarks • Recap of Matson’s 1Q21 results: – Off to a strong start to 2021 with continued solid performance in Ocean Transportation and Logistics – Ocean Transportation: • China strength – CLX+ voyages and increased capacity in the CLX service • I
Slide 4: Hawaii Service
4 First Quarter 2021 Earnings Conference Call Hawaii Service First Quarter 2021 Performance • Container volume increased 0.6% YoY – Higher demand for sustenance and home improvement goods – Partially offset by: • One less westbound sailing • Continued negative impact from low tourism activity – Lapp
Slide 5: Hawaii Service – Select Hawaii Economic Indicators
5 First Quarter 2021 Earnings Conference Call Hawaii Service – Current Business Trends Select Hawaii Economic Indicators(1) (1) Source: https://uhero.hawaii.edu/wp-content/uploads/2021/03/21Q1_Public.pdf 2019 2020P 2021P 2022P Real GDP 1.2% (7.5)% 3.7% 3.1% Construction Jobs Growth 0.3% (3.2)% 0.6%
Slide 6: China Service
6 First Quarter 2021 Earnings Conference Call China Service First Quarter 2021 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 2020 2021 Note: 2Q 2020 volume figure includes volume related to seven CLX+ voyages. 3Q 2020, 4Q 2020 and 1Q 2021
Slide 7: China Service – U.S. Retail Trade Inventories/Sales
7 First 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 U.S. Retail Trade Inventories/Sales (Adjusted) Source: https://www.census.gov/mtis/www/mrtsinv92-present.xls • April 20
Slide 8: Guam Service
8 First Quarter 2021 Earnings Conference Call Guam Service First Quarter 2021 Performance Container Volume (FEU Basis) 3,000 3,500 4,000 4,500 5,000 5,500 Q1 Q2 Q3 Q4 2020 2021 2.0% • Container volume increased 2.0% YoY – Higher demand for sustenance and home improvement goods – Partially offset by
Slide 9: Alaska Service
9 First Quarter 2021 Earnings Conference Call Alaska Service First Quarter 2021 Performance • Container volume decreased 4.9% YoY – Lower northbound volume primarily due to: • One less sailing this year • TOTE dry-dock volume in year ago period – Lower southbound volume – Partially offset by AAX vol
Slide 10: Alaska Service – Economic Outlook
10 First Quarter 2021 Earnings Conference Call Alaska Service – Current Business Trends • Expect the Alaska economy to slowly recover –Unemployment rate slightly higher than national average at 6.6% (February 2021)(1) – Retail industry most impacted by pandemic and is expected to recover slowly – Ec
Slide 11: SSAT Joint Venture Equity in Income of Joint Venture
11 First Quarter 2021 Earnings Conference Call SSAT Joint Venture First Quarter 2021 Performance Equity in Income of Joint Venture $ 0.0 $ 2.0 $ 4.0 $ 6.0 $ 8.0 $ 10.0 $ 12.0 Q1 Q2 Q3 Q4 $ in millions 2020 2021 Current Business Trends • Terminal joint venture contribution was $9.2 million, $5.2 mill
Slide 12: Matson Logistics Operating Income
12 First Quarter 2021 Earnings Conference Call Matson Logistics First 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 $6.1 million; YoY change of $1.0 million • Higher contributions from transporta
Slide 13: Financial Results – Summary Income Statement
13 First Quarter 2021 Earnings Conference Call Financial Results – Summary Income Statement See the Addendum for a reconciliation of GAAP to non-GAAP Financial Metrics.
Slide 14: Cash Generation and Uses of Cash
14 First Quarter 2021 Earnings Conference Call Cash Generation and Uses of Cash ($ 50.0) $ 50.0 $ 150.0 $ 250.0 $ 350.0 $ 450.0 $ 550.0 Cash Flow from Operations Paydown of Borrowings, net Maint. Capex New Vessel Capex (1) Dividends Other Cash Flows (2) Net Decrease in Cash $ in millions Last Twelve
Slide 15: Financial Results – Summary Balance Sheet
15 First Quarter 2021 Earnings Conference Call Financial Results – Summary Balance Sheet • Total Debt of $698.9 million(1) – $61.2 million of debt reduction in 1Q21 – Revolver balance of $25.0 million • Net Debt of $687.1 million(2) • Leverage ratio per amended debt agreements of approximately 1.25x
Slide 16: Appendix
16 First Quarter 2021 Earnings Conference Call Appendix
Slide 17: Appendix – Non-GAAP Measures
17 First 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, hel