Matson(US:MATX)2024-05-01 10:05Financial Performance - In the first quarter of 2024, the company's operating revenue increased by $17.3 million, or 2.5%, to $722.1 million compared to $704.8 million in the same period of 2023[101]. - The company's net income for the first quarter of 2024 was $36.1 million, reflecting an increase of $2.1 million, or 6.2%, from $34.0 million in the first quarter of 2023[101]. - Ocean Transportation revenue rose by $28.0 million, or 5.1%, to $579.0 million in the first quarter of 2024, driven by higher freight rates despite lower volumes in key markets[105]. - The Logistics segment's operating income for the first quarter of 2024 was $9.3 million, down $1.6 million from the first quarter of 2023, with expectations for continued challenges in transportation brokerage[94]. - Operating income for the Company fell by $1.6 million, or 14.7%, to $9.3 million, with an operating income margin of 6.5% for the three months ended March 31, 2024[110][112]. - The Company anticipates full year 2024 consolidated operating income to be modestly higher than $342.8 million achieved in 2023, with comparable seasonality expected[95]. Tax and Income - The effective tax rate for the first quarter of 2024 was 20.3%, down from 23.1% in the same quarter of 2023, benefiting from a foreign-derived intangible income deduction[104]. Volume and Demand - The company's container volume in Hawaii decreased by 1.7% year-over-year, while Alaska and China volumes fell by 5.1% and 4.0%, respectively, due to lower demand and seasonal factors[106]. - The contribution from the SSAT joint venture investment in the first quarter of 2024 was $0.4 million, an increase of $2.2 million compared to the first quarter of 2023, attributed to higher lift volumes[92]. Future Outlook - For the full year 2024, the company expects Ocean Transportation operating income to exceed $294.8 million achieved in 2023, with a moderately higher outlook for the second quarter[93]. - Capital expenditures for the full year 2024 are projected to be approximately $110 to $120 million, with additional vessel construction expenditures of around $75 million[100]. Cash Flow and Capital Management - Net cash provided by operating activities decreased by $60.1 million to $36.6 million for the three months ended March 31, 2024, compared to $96.7 million in the same period of 2023[114][115]. - The Company reported a working capital deficit of $18.5 million as of March 31, 2024, down from a surplus of $40.0 million at December 31, 2023[124]. - Total debt decreased by $10.1 million to $430.5 million as of March 31, 2024, primarily due to scheduled repayments of private placement term loans[122]. - Cash and cash equivalents decreased by $108.1 million to $25.9 million as of March 31, 2024, compared to $134.0 million at December 31, 2023[113]. - The Company had $644.2 million of remaining borrowing availability under the revolving credit facility as of March 31, 2024[123]. Shareholder Returns - The Company declared a cash dividend of $0.32 per share on April 25, 2024, payable on June 6, 2024[131]. - The first quarter 2023 cash dividend of $0.32 per share was paid on March 7, 2024[131]. - The Company repurchased approximately 0.4 million shares for a total cost of $48.9 million during the three months ended March 31, 2024[127]. Market Risk - There have been no material changes to the Company's market risk position since the last annual report[132].