Matson(MATX) - 2024 Q4 - Annual Report

Revenue and Income - Total operating revenue for 2024 was $3,421.8 million, an increase of 10.6$3,094.6 million in 2023[199]. - Operating income for 2024 increased by $208.5 million, or 60.8$551.3 million compared to 2023[215]. - Ocean Transportation revenue increased by $332.7 million, or 13.4$10.1 million, an increase of $1.2 million compared to Q4 2023[208]. - Net income for 2024 reached$476.4 million, up from $297.1 million in 2023, representing a 60.4$266.8 million, an increase of $132.8 million from$134.0 million in 2023[232]. - Net cash provided by operating activities increased to $767.8 million in 2024 from$510.5 million in 2023, a change of $257.3 million[233]. - The Company reported a net increase in cash, cash equivalents, and restricted cash of$130.5 million for 2024, compared to a decrease of $117.4 million in 2023[233]. - Total assets as of December 31, 2024, were$4,595.4 million, up from $4,294.6 million in 2023, indicating a 7.0$1,943.4 million in 2024 from $1,893.9 million in 2023, reflecting a 2.6$120 to $140 million for maintenance and$305 million for new vessel construction in 2025[213]. - Capital expenditures for 2024 were $214.5 million, compared to$195.5 million in 2023, reflecting investments in LNG installations and terminal equipment[234]. - The Company expects to incur total estimated capital expenditures of $425 -$445 million in 2025, including $305 million for new vessel construction milestone payments[240]. - The Company anticipates the delivery of three new Jones Act vessels, with the first expected in Q1 2027 and subsequent deliveries in Q3 2027 and Q2 2028[360]. Debt and Liabilities - Total debt decreased by$39.7 million to $400.9 million as of December 31, 2024, primarily due to scheduled debt repayments[237]. - The Company has a long-term debt net of deferred loan fees of$350.8 million as of December 31, 2024, down from $389.3 million in 2023[374]. - Debt maturities for the next five years total$175.5 million, with $225.4 million due thereafter[384]. - Other liabilities increased from$108.0 million in 2023 to $123.2 million in 2024, driven by higher employee incentives and insurance reserves[321]. Shareholder Returns and Stock Activity - During 2024, the Company repurchased approximately 1.6 million shares for a total cost of$201.0 million, with 830,527 shares remaining under the repurchase program[243]. - Dividends paid in 2024 amounted to $44.8 million, slightly down from$45.0 million in 2023[291]. - The Company recognized dividends as a liability when approved by the Board of Directors, reflecting a commitment to returning value to shareholders[332]. Tax and Interest - The effective tax rate for the full year 2025 is expected to be approximately 22.0%, up from 19.1% in Q4 2024[212]. - Interest income for the full year 2025 is expected to be around $31 million, while interest expense is projected to be approximately$7 million[211]. Impairment and Asset Evaluation - The Company evaluated its long-lived assets and determined no impairment for the years ended December 31, 2024, 2023, and 2022[251]. - The Company evaluated its goodwill for impairment and determined that the fair value of the Span Alaska reporting unit exceeded its carrying amount as of the impairment review date[280]. - The company did not record any impairment charges for long-lived assets or goodwill for the years ended December 31, 2024, 2023, and 2022[318]. Operational Challenges and Outlook - The Company anticipates challenging business conditions for transportation brokerage in 2025, leading to modestly lower operating income compared to 2024[209]. - For 2025, Ocean Transportation operating income is expected to be moderately lower than the $500.9 million achieved in 2024, depending on trade conditions in the Red Sea[207]. - For Q1 2025, the Company expects consolidated operating income to be significantly higher than$36.9 million achieved in Q1 2024, but for the full year 2025, it anticipates operating income to be moderately lower than $551.3 million achieved in 2024 if trade conditions normalize[210].