Matson(US:MATX)2020-11-02 21:14Financial Performance - Operating revenue for Q3 2020 was $645.2 million, a 12.8% increase from $572.1 million in Q3 2019[89] - Operating income for Q3 2020 rose to $98.4 million, representing a 78.3% increase compared to $55.2 million in Q3 2019[89] - Net income for Q3 2020 was $70.9 million, a 95.9% increase from $36.2 million in Q3 2019[89] - Basic earnings per share for Q3 2020 were $1.65, up 96.4% from $0.84 in Q3 2019[89] - Operating revenue for the nine months ended September 30, 2020, was $1,683.2 million, a 1.3% increase from $1,662.4 million in the same period of 2019[93] - Operating income for the nine months ended September 30, 2020, was $162.6 million, a 56.8% increase from $103.7 million in 2019[93] - The company expects strong financial performance to continue into Q4 2020[88] Container Volume - Container volume in China increased by 124.7% year-over-year, primarily due to the CLX+ service and increased capacity[82] - China container volume surged by 66.7%, reaching 78,500 FEUs, primarily due to the CLX+ service, while Hawaii container volume decreased by 1.1%[109] Revenue Segments - Ocean Transportation revenue increased by $59.5 million, or 4.8%, to $1,310.0 million for the nine months ended September 30, 2020, compared to $1,250.5 million in the same period of 2019[107] - Operating income for Ocean Transportation rose by $63.7 million, or 87.3%, to $136.7 million, with an operating income margin of 10.4% for the nine months ended September 30, 2020[110] - Logistics segment operating income was $11.9 million, a $0.6 million increase from Q3 2019, driven by improved performance across all business lines[87] - Logistics revenue for the three months ended September 30, 2020, increased by $12.0 million, or 8.9%, to $146.9 million, driven by higher transportation brokerage revenue[112] Debt and Cash Flow - Total debt decreased by $134.8 million during the nine months ended September 30, 2020, primarily due to increased net cash from operating activities and new fixed interest debt issuance[122] - Net cash provided by operating activities increased by $90.4 million to $270.8 million for the nine months ended September 30, 2020, compared to $180.4 million in the same period of 2019[117] - Cash and cash equivalents decreased by $8.5 million to $12.7 million as of September 30, 2020, compared to $21.2 million at the end of 2019[116] - The Company had $518.9 million of remaining borrowing availability under the revolving credit facility as of September 30, 2020[123] - The Company had a working capital deficiency of $164.0 million as of September 30, 2020, compared to $147.1 million at December 31, 2019, indicating an increase in deficiency[124] Joint Ventures and Investments - The contribution from the SSAT joint venture was $7.7 million in Q3 2020, down from $8.4 million in Q3 2019[86] - The Company's SSAT terminal joint venture investment contributed $15.4 million during the nine months ended September 30, 2020, down from $17.8 million in the same period of 2019[111] Dividends and Market Risk - The Company's third quarter 2020 cash dividend was $0.23 per share, paid on September 3, 2020, with another dividend of the same amount declared for December 3, 2020[128] - There were no material changes to the Company's market risk position as of the latest reporting period[129]