MATSON ANNOUNCES 1Q22 PRELIMINARY RESULTS, PROVIDES BUSINESS UPDATE, AND ANNOUNCES 1Q22 EARN CALL DATE

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  • 1Q22 operating income expected for Ocean Transportation $410.0 with $415.0 million

  • 1Q22 operating income expects for logistics $16.0 with $17.0 million

  • 1Q22 net revenue and diluted EPS $329.5 with $338.0 million and $8.00 with $8.20respectively

  • The year-over-year increase in consolidated operating income is mainly due to Chinese service power

  • Nearly 0.7 million shares repurchased in 1Q22

  • It announced its first quarter earnings call date on: May 3, 2022

HONOLULU, 19 April 2022 /PRNewswire/ — Matson, Inc. (“Matson” or “The Company”) (NYSE: MATX) today announced its first-quarter financial results, provided a business update, and announced that its first-quarter earnings call will take place today. May 3, 2022.

Matson Logo.  (PRNewsFoto/Matson)

Matson Logo. (PRNewsFoto/Matson)

“Matson is off to a solid start in 2022 with higher year-over-year operating revenue in both Ocean Freight and Logistics,” said the Chairman and Chief Executive Officer. Matt Cox. “Within Ocean Transport, Chinese Volume for e-commerce, clothing and other goods remained high, while service continued to see significant demand for expedited ocean services. The year-over-year increase in consolidated operating income is mainly due to Chinese service. We are currently seeing supply chain challenges in the Transpacific business zone. Chinese, primarily due to actions to reduce the spread of COVID-19, as well as ongoing supply chain restrictions and congestion on the US West Coast, increasing consumption trends and inventory restocking. Despite the short-term uncertainty presented by supply chain challenges, ChineseWe expect a combination of current supply and demand factors to remain largely in place at least through the peak season in October, with continued high demand for us. Chinese service for most of this year.”

Mr Cox said: “We continued to see stable demand on our domestic ocean trade lines, with higher volumes than in previous years. Alaska and Guamand demand Hawaii comparable to the level reached in the previous year. In logistics, operating income grew year-over-year, strengthening across all lines of business as we continue to see increased consumption of goods, stock restocking, and positive supply and demand fundamentals in our core markets. As a result, Matson expects first-quarter operating income for Ocean Freight: $410.0 with $415.0 million and Logistics activity income $16.0 with $17.0 million. In addition, first quarter 2022 net income and diluted EPS $329.5 with $338.0 million and $8.00 with $8.20respectively.”

First Quarter Commercial Line Volume (Forty feet equivalent units (FEU)) (1)(2):

for the last three months March 31, 2022 compared to the last three months March 31, 2021 and on a FEU basis:

  • Hawaii container volume decreased by 0.6 percent, mainly due to a decrease in eastbound volume;

  • Alaska volume increased 20.2 percent, primarily due to an increase in Alaska-Asia Express (“AAX”) volume, higher northbound volume and primarily higher seafood volume due to higher retail-related demand and a competitor’s dry-dock-related volume;

  • Chinese volume was 13.4 percent higher than in the previous year as a result of an increase of 5 eastward voyages;

  • Guam volume was 10.0 percent higher, primarily due to higher retail demand; and

  • Other container volume increased 32.5 percent, mainly due to the addition of China-Auckland Express (“CAX”) volume in the South Pacific.

  1. Approximate volumes included in the period are based on the journey’s departure date, but income and operating income are adjusted at the end of each reporting period to reflect the percentage of income and operating income earned during the reporting period for transit journeys.

  2. Other containers include containers serving various islands. Micronesia and the South Pacific and Okinawa, Japan.

Liquidity, Debt and Share Buybacks

Matson’s cash and cash equivalents and total debt (offered before any reductions in deferred loan fees mandated by GAAP) March 31, 2022 approximately $390.0 million and $614.7 millionrespectively.

In the first quarter of 2022, Matson repurchased approximately 0.7 million shares at a total cost. $68.6 million. as of March 31, 2022Approximately 2.8 million shares remain in the Company’s share repurchase program.

A slide presentation accompanying this press release is available on the Company’s website at: www.matson.comunder investors.

Teleconferencing and Webcast

A conference call is scheduled May 3, 2022 also 4:30 PM ET when? Matt CoxChairman of the Board of Directors and Chief Executive Officer, and Joel WineThe Vice President and Chief Financial Officer will discuss Matson’s first-quarter results.

Conference Call Date:

Tuesday, May 3, 2022

Scheduled time:

16:30 ET / 13:30 PT / 10:30 HT

Participant Toll Free Number:

1-877-312-5524

International Dialing Number:

1-253-237-1144

The conference call, along with an additional slide presentation, will be streamed live on the Company’s website at: www.matson.com, under Investors. The replay of the conference call will be available approximately two hours after the call. May 10, 2022 By calling 1-855-859-2056 or 1-404-537-3406 and using the conference number 3729448. The conference call slides and audio webcast will be archived on the Company’s website for a full quarter. www.matson.comunder investors.

About the company

Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean freight and logistics services. Matson provides a vital lifeline to the country’s non-contiguous local economies. Hawaii, Alaskaand Guamand to other island economies in Micronesia. Matson also offers premium, expedited services. Chinese with Long Beach, Californiaprovides service Okinawa, Japan and various islands in the South Pacific and provides an international export service Dutch Port to Asia. The company’s fleet of owned and leased vessels includes container ships, combined container and roll-on/roll-off vessels and specially designed barges. Founded in 1987, Matson Logistics expands the geographic coverage of Matson’s transportation network to North America. Integrated, asset-light logistics services include rail intermodal, road brokerage, warehousing, freight consolidation, Asia supply chain services and forwarding to Alaska. Additional information about the company is available at: www.matson.com

forward-looking statements

Statements in this news release that are not historical facts, including but not limited to these statements regarding performance and financial results, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. ChineseActions to reduce the spread of COVID-19, supply chain restrictions and congestion on the US West Coast, consumption trends, inventory restocking, duration of current supply and demand factors, demand for Matson’s Chinese demand for services, e-commerce, clothing and other goods, duration of CCX service, tourism levels, unemployment rates, COVID-19 volatile waves, economic recovery and Hawaii, Alaska and Guam, inflation, interest rates and discretionary income. These statements involve a range of risks and uncertainties that could cause actual results to differ materially from those projected in the relevant forward-looking statement, including, but not limited to, the risks and uncertainties associated with the repeal, material change or waiver of Jones Law or its laws. our failure to maintain our application or status United States of America citizen under the Jones Act; Changes in economic conditions or government policies, including the COVID-19 pandemic; our ability to provide a differentiated service Chinese customers are willing to pay a substantial premium; new or increased competition or improvements in competitors’ service levels; our relationship with customers, agents, vendors and partners, and changes to related agreements; fuel prices, our ability to collect fuel-related surcharges, and/or the cost or limited availability of required fuels; evolving stakeholder expectations regarding environmental, social and governance issues; timely or successful completion of fleet upgrade initiatives; the emergence of adverse weather conditions, natural disasters, marine accidents, spill events, and other physical and operational risks, including those resulting from climate change; transition and other risks from climate change; The magnitude and timing of the impact of public health crises, including COVID-19; significant operating contracts and leases that cannot be changed on favorable terms; unexpected dry dock or repair costs; joint venture relationships; doing business in a foreign shipping market, including the application of tariffs or a change in international trade policies; delays or cost overruns associated with the modernization of terminals; war, terrorist attacks or other acts of violence; completion and integration of acquisitions; freight levels and rising costs and availability of truck capacity or alternative freight carriers; relations with our unions; Satisfactory negotiation and renewal of expired collective bargaining agreements without material disruption to Matson’s operations; loss of key personnel or inadequate management of human capital; use of our information technology and communication systems and cyber security attacks; changes in our credit profile and future financial performance; our ability to obtain future debt financing; Continuation of Title XI and CCF programs; the costs and obligations of complying with numerous safety, environmental and other laws and regulations; and disputes, legal and other proceedings, and government investigations or investigations. These forward-looking statements are not a guarantee of future performance. This publication should be read in conjunction with our Annual Report on Form 10-K for the year ending. 31 December 2021 and our other filings with the SEC during this publication date that identify significant factors that may affect the forward-looking statements in this release. We undertake no obligation to update our forward-looking statements.

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SOURCE Matson, Inc.

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