Matson, Inc. (NYSE:MATX) Q2 2024 Results Conference Call August 1, 2024 4:30 PM ET

Company Participants

Justin Schoenberg - IR
Matt Cox - Chairman and CEO
Joel Wine - EVP, CFO

Conference Call Participants

Ben Nolan - Stifel
Jake Lacks - Wolfe Research
Daniel Imbro - Stephens Inc.

Operator

[Call Started Abruptly] conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Justin Schoenberg. Please go ahead.

Justin Schoenberg

Thank you, Karen. Joining me on the call today are Matt Cox, Chairman and Chief Executive Officer; and Joel Wine, Executive Vice President and Chief Financial Officer. Slides from this presentation are available for download at our Web site, www.matson.com, under the Investors tab. Before we begin, I would like to remind you that during the course of this call, we’ll make forward-looking statements within the meaning of the Federal Securities Laws regarding expectations, predictions, projections and future events. We believe that our expectations and assumptions are reasonable. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release, the presentation slides and this conference call. These risk factors are described in our press release and presentation and are more fully detailed in the captioned Risk Factors on Pages 13 to 25 of our Form 10-K filed on February 23, 2024 and in our subsequent filings with the SEC. Please also note that the date of this conference call is August 1, 2024 and any forward-looking statements that we make today are based on assumptions and predictions. We undertake no obligation to comment on these forward-looking statements. I will now turn the call over to Matt.

Matt Cox

Okay, Justin. Thanks. Thanks to those on the call. Starting on Slide 3. Matson's ocean transportation and logistics business segment performed well, higher year-over-year operating income in the second quarter. In ocean transportation, operating income increased year-over-year. Our China service saw significantly higher year-over-year rates and was the primary driver of consolidated operating income. We had higher year-over-year volumes in Alaska, primarily due to two additional sailings. Hawaii and Guam saw lower year-over-year volume. In logistics, operating income increased year-over-year on the strength of supply chain management. As a result of our performance in the second quarter and the expected strength of our China service in the back half of the year, we are raising our outlook in ‘24. Joel will go into more detail on our updated outlook later in the presentation. I'll now go through the second quarter performance of our tradelanes, SSAT and logistics, so please turn to the next slide. Container volume in our Hawaii service decreased 3.6% in the second quarter year-over-year. The decrease was primarily due to lower general demand. Tourist arrivals in the second quarter were lower, primarily due to significantly lower visitor traffic to Maui as a result of the wildfires last year. I will go through our full year outlook on the next slide, so please turn to Slide 5.