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Matson
🇺🇸 NYSE:MATX
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•
Dec 31, 2019

Matson Q4 2019 Earnings Report

Matson's fourth quarter earnings decreased compared to the same period last year, but China tradelane service outperformed and Hawaii service saw a modest rebound.

Key Takeaways

Matson reported a decrease in net income for Q4 2019, with EPS at $0.36 compared to $0.48 in Q4 2018. Consolidated revenue also decreased to $540.7 million from $564.9 million in the same quarter of the previous year. The results were below expectations despite solid contributions from China and Alaska tradelanes, and Logistics.

Q4 2019 EPS was $0.36.

Full Year 2019 EPS was $1.91.

Full Year 2019 Net Income and EBITDA were $82.7 million and $264.3 million, respectively.

2020 Net Income is expected to be flat with the 2019 level, with an expected negative impact from COVID-19.

Total Revenue
$541M
Previous year: $565M
-4.3%
EPS
$0.36
Previous year: $0.48
-25.0%
Hawaii Containers Volume
37.3K
Previous year: 36.9K
+1.1%
Hawaii Automobiles Volume
13.5K
Previous year: 16.4K
-17.7%
Alaska Containers Volume
14.8K
Previous year: 14.9K
-0.7%
Gross Profit
$75.2M
Previous year: $80.6M
-6.7%
Cash and Equivalents
$21.2M
Previous year: $19.6M
+8.2%
Total Assets
$2.85B
Previous year: $2.43B
+17.1%

Matson

Matson

Matson Revenue by Segment

Forward Guidance

The Company expects net income in 2020 to be flat year-over-year and expects consolidated operating income and EBITDA in 2020 to be approximately $143 million and $280 million, respectively, including approximately $15 million negative impact from COVID-19.

Positive Outlook

  • Improved consolidated financial performance led by the reduction in fleet deployment to nine vessels in our Hawaii tradelane service.
  • Financial benefits from our other infrastructure-related investments.
  • Expect net income to be flat and EBITDA to be higher than the levels achieved in 2019.
  • Specifically, we expect EBITDA in 2020 to be approximately $280 million.
  • Reaffirm $30 million in financial benefits in 2020 from new vessels and infrastructure investments

Challenges Ahead

  • Negative financial impact from COVID-19 on our CLX service, at SSAT and in Logistics of approximately $15 million in aggregate.
  • Expect challenging conditions in the first half of the year as a result of COVID-19.
  • Expect volume in 2020 to be modestly lower than the prior year and average freight rates in 2020 to approximate the levels achieved in 2019 for China.
  • The Company expects the contribution from SSAT to be lower due to lower lift volume primarily driven by the negative effects of COVID-19.
  • The Company expects Logistics operating income to be lower than the level achieved in 2019 of $38.3 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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