Matson, Inc. (MATX) Bundle
A Brief History of Matson, Inc.
Overview
Matson, Inc. is a leading provider of ocean transportation and logistics services in the Pacific region, with a history dating back to 1882. The company has evolved significantly over the years, expanding its services and fleet to meet the demands of global trade.
Recent Financial Performance
As of September 30, 2024, Matson reported significant increases in revenue and net income compared to previous periods. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Revenue | $320.8 million | $268.4 million | 19.5% |
| Net Income | $21.6 million | $1.5 million | 1,340% |
| Operating Income | $19.5 million | ($1.0 million) | 2,050% |
| Basic Earnings per Share | $5.98 | $3.42 | 74.9% |
Revenue Segmentation
Matson's revenue is primarily derived from two segments: Ocean Transportation and Logistics. For the nine months ended September 30, 2024, the following breakdown was noted:
| Segment | Revenue (in millions) | Change from 2023 |
|---|---|---|
| Ocean Transportation | $2,067.6 | 12.5% |
| Logistics | $463.9 | (1.0%) |
Operational Highlights
In the Ocean Transportation segment, Matson experienced a notable increase in freight rates, particularly in China, contributing to a 92.0% increase in operating income for Q3 2024 compared to the same quarter in 2023. The logistics segment, despite a slight decline in revenue, maintained a stable operating income margin.
Debt and Liquidity Position
As of September 30, 2024, Matson's total debt was reported at $410.6 million, a decrease of $30 million compared to December 31, 2023. The company’s liquidity remains strong, with cash and cash equivalents totaling $270.3 million, up from $134.0 million at the end of 2023.
| Metric | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Total Debt | $410.6 million | $440.6 million | ($30 million) |
| Cash and Cash Equivalents | $270.3 million | $134.0 million | $136.3 million |
Future Outlook
Matson continues to invest in its fleet and infrastructure to enhance its service capabilities. The company is focusing on sustainable practices and expanding its market presence in the Pacific region, which is expected to drive future growth.
A Who Owns Matson, Inc. (MATX)
Shareholder Structure
As of 2024, Matson, Inc. (MATX) exhibits a diverse ownership structure primarily composed of institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares (in millions) | Ownership Percentage (%) |
|---|---|---|
| Institutional Investors | 20.5 | 59.6 |
| Individual Investors | 7.0 | 20.3 |
| Company Insiders | 6.9 | 19.9 |
| Total | 34.4 | 100.0 |
Institutional Ownership
Institutional investors hold a significant portion of Matson, Inc.'s shares, amounting to approximately 59.6% of the total shares outstanding. Major institutional shareholders include:
- The Vanguard Group, Inc. - 12.3% ownership
- BlackRock, Inc. - 10.5% ownership
- State Street Corporation - 9.1% ownership
- Other Institutional Investors - 27.7% ownership combined
Insider Ownership
Company insiders, including executives and board members, collectively own approximately 19.9% of Matson, Inc. The following details the ownership of key insiders:
| Insider Name | Title | Ownership (in millions of shares) |
|---|---|---|
| Matthew J. Cox | Chairman & CEO | 2.5 |
| Eric B. H. Tan | Chief Financial Officer | 1.8 |
| Other Executives | Various | 2.6 |
Recent Ownership Changes
Over the past year, Matson, Inc. has experienced some notable changes in its shareholder composition:
- Institutional ownership increased by 3.2% due to strong performance in the stock market.
- Insider ownership saw a slight decrease of 1.1% as some insiders sold shares to diversify their portfolios.
- Individual investor ownership remained relatively stable.
Stock Performance and Market Capitalization
As of September 30, 2024, Matson, Inc. reported a market capitalization of approximately $2.6 billion. The stock has shown a year-to-date increase of 25%, reflecting strong operational performance and a robust demand for shipping services.
Financial Overview
Matson, Inc. reported the following key financial metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Operating Revenue | $2.53 billion |
| Net Income | $348.4 million |
| Earnings Per Share (EPS) | $10.28 |
| Total Assets | $4.44 billion |
| Total Liabilities | $1.31 billion |
These financial results underscore Matson's strong position in the transportation and logistics sector, contributing to its appeal among institutional investors.
Matson, Inc. (MATX) Mission Statement
Overview
Matson, Inc. focuses on providing high-quality transportation services for customers in the Pacific region. The company emphasizes reliability, safety, and efficiency in its operations, aiming to be the preferred logistics partner for businesses and communities it serves.
Core Values
- Customer Commitment: Prioritizing customer needs and providing tailored solutions.
- Integrity: Conducting business with honesty and transparency.
- Teamwork: Fostering a collaborative environment among employees and partners.
- Innovation: Continuously seeking innovative solutions to improve service delivery.
Financial Performance
As of September 30, 2024, Matson, Inc. reported significant growth in its financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Operating Revenue | $962.0 million | $827.5 million | +16.3% |
| Operating Costs and Expenses | $(719.7) million | $(695.4) million | +3.5% |
| Operating Income | $242.3 million | $132.1 million | +83.4% |
| Net Income | $199.1 million | $119.9 million | +66.1% |
Operational Highlights
In the nine months ending September 30, 2024, Matson reported the following operational metrics:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Ocean Transportation Revenue | $2,067.6 million | $1,837.3 million | +12.5% |
| Operating Income | $403.8 million | $267.5 million | +51.0% |
| Basic Earnings Per Share | $10.28 | $6.59 | +56.0% |
| Diluted Earnings Per Share | $10.13 | $6.56 | +54.4% |
Market Position
Matson, Inc. has established a strong market presence within the Pacific region, focusing on the following:
- Hawaii Container Volume: 105,900 FEUs in 2024, down from 108,600 FEUs in 2023.
- Alaska Container Volume: Increased to 62,500 FEUs in 2024 from 62,200 FEUs in 2023.
- China Container Volume: Increased to 106,700 FEUs in 2024 from 105,800 FEUs in 2023.
Strategic Goals
Matson aims to enhance its operational efficiency and expand its service offerings by focusing on:
- Fleet Modernization: Continuing investment in new vessels to improve capacity and reduce emissions.
- Technology Integration: Leveraging technology to optimize logistics and supply chain management.
- Sustainability Initiatives: Committing to environmentally responsible practices in operations.
How Matson, Inc. (MATX) Works
Business Segments
Matson, Inc. operates primarily through two segments: Ocean Transportation and Logistics. The Ocean Transportation segment provides vital services to non-contiguous economies like Hawaii, Alaska, and Guam, along with international services connecting Asia and the U.S. mainland.
Financial Performance
For the three months ended September 30, 2024, Matson reported:
| Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Operating Revenue | $962.0 million | $827.5 million | $134.5 million (16.3%) |
| Operating Costs and Expenses | ($719.7 million) | ($695.4 million) | ($24.3 million) (3.5%) |
| Operating Income | $242.3 million | $132.1 million | $110.2 million (83.4%) |
| Net Income | $199.1 million | $119.9 million | $79.2 million (66.1%) |
| Basic Earnings Per Share | $5.98 | $3.42 | $2.56 (74.9%) |
| Diluted Earnings Per Share | $5.89 | $3.40 | $2.49 (73.2%) |
Ocean Transportation Segment
In the Ocean Transportation segment, revenue increased by $129.3 million, or 19.3%, during Q3 2024 compared to Q3 2023, primarily due to higher freight rates in China and increased domestic trade volumes.
For the nine months ended September 30, 2024, key figures include:
| Metric | 2024 (9M) | 2023 (9M) | Change |
|---|---|---|---|
| Operating Revenue | $2,531.5 million | $2,305.7 million | $225.8 million (9.8%) |
| Operating Costs and Expenses | ($2,127.7 million) | ($2,038.2 million) | ($89.5 million) (4.4%) |
| Operating Income | $403.8 million | $267.5 million | $136.3 million (51.0%) |
| Net Income | $348.4 million | $234.7 million | $113.7 million (48.4%) |
Logistics Segment
Logistics revenue saw a slight increase in Q3 2024, totaling $163.3 million, up from $158.1 million in Q3 2023. The operating income for this segment was $15.4 million, compared to $13.9 million in the same period last year.
Volume Statistics
Volume metrics for the Ocean Transportation segment as of September 30, 2024 include:
| Volume Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Hawaii Containers | 36,200 FEUs | 37,000 FEUs | (800 FEUs) (2.2%) |
| Alaska Containers | 22,200 FEUs | 21,900 FEUs | 300 FEUs (1.4%) |
| China Containers | 40,000 FEUs | 39,000 FEUs | 1,000 FEUs (2.6%) | Guam Containers | 4,800 FEUs | 5,300 FEUs | (500 FEUs) (9.4%) |
Investment and Capital Expenditures
As of September 30, 2024, Matson's Capital Construction Fund (CCF) had:
| CCF Metric | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $635.4 million | $599.4 million |
| Assigned Accounts Receivable | $228.3 million | $218.1 million |
Debt Profile
As of September 30, 2024, the total debt was:
| Debt Type | 2024 | 2023 | Change |
|---|---|---|---|
| Fixed Interest Debt | $410.6 million | $440.6 million | ($30.0 million) |
| Variable Interest Debt | $0.0 million | $0.0 million | $0.0 million |
Shareholder Equity
As of September 30, 2024, Matson's equity consisted of:
| Equity Metric | Amount |
|---|---|
| Common Stock | $24.9 million |
| Retained Earnings | $2,251.3 million |
| Total Equity | $2,556.7 million |
How Matson, Inc. (MATX) Makes Money
Revenue Streams
Matson, Inc. generates revenue primarily through two main segments: Ocean Transportation and Logistics.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change |
|---|---|---|---|
| Ocean Transportation | $798.7 million | $669.4 million | +19.3% |
| Logistics | $163.3 million | $158.1 million | +3.3% |
| Total Operating Revenue | $962.0 million | $827.5 million | +16.3% |
Ocean Transportation
In the Ocean Transportation segment, the company earns revenue from:
- Ocean Transportation services
- Terminal and related services
- Fuel sales
- Vessel management services
For the nine months ended September 30, 2024, Ocean Transportation revenue was $2,067.6 million compared to $1,837.3 million in 2023, marking a 12.5% increase.
Logistics Services
The Logistics segment includes:
- Transportation brokerage
- Freight forwarding
- Supply chain management
- Warehousing and distribution
Logistics revenue for the nine months ended September 30, 2024, was $463.9 million, a slight decrease from $468.4 million in 2023.
Operating Costs and Expenses
Matson's operating costs and expenses for Q3 2024 were $719.7 million, compared to $695.4 million in Q3 2023. This represents an increase of 3.5%.
| Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Operating Costs | $654.3 million | $624.1 million | +4.8% |
| Income from SSAT | $6.9 million | $1.3 million | +430.8% |
| Selling, General and Administrative | $72.3 million | $72.6 million | -0.4% |
Net Income and Earnings Per Share
Net income for Q3 2024 was $199.1 million, an increase from $119.9 million in Q3 2023. The basic earnings per share rose to $5.98 from $3.42 in the previous year.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $199.1 million | $119.9 million | +66.1% |
| Basic EPS | $5.98 | $3.42 | +74.9% |
| Diluted EPS | $5.89 | $3.40 | +73.2% |
Key Performance Indicators
For the nine months ended September 30, 2024, Matson's operating income was $403.8 million, compared to $267.5 million in 2023. This reflects a growth of 51.0%.
Cash Flow and Investments
As of September 30, 2024, Matson reported cash and cash equivalents of $270.3 million, a significant increase from $134.0 million at the end of 2023.
| Cash and Liquidity Metrics | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Cash and Cash Equivalents | $270.3 million | $134.0 million | +101.5% |
| Restricted Cash | $2.4 million | $2.3 million | +4.3% |
| Accounts Receivable | $311.1 million | $279.4 million | +11.3% | CCF Cash and Investments | $635.4 million | $599.4 million | +6.0% |
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Article updated on 8 Nov 2024
Resources:
- Matson, Inc. (MATX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Matson, Inc. (MATX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Matson, Inc. (MATX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.