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Matson, Inc. Announces Third Quarter 2012 EPS Of $0.45



            Matson, Inc. Announces Third Quarter 2012 EPS Of $0.45

- Ocean transportation revenues up 9.1% year over year

- Third quarter 2012 EBITDA of $52.5 million; operating income of $34.2
million

- Year over year Transpacific rates track higher through peak season

- Total debt reduced by $44.2 million, dividend announced

PR Newswire

HONOLULU, Nov. 7, 2012

HONOLULU, Nov. 7, 2012 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported
net income of $19.1 million, or $0.45 per diluted share for the third quarter
ended September 30, 2012^^[1]. Net income for the third quarter ended
September 30, 2011 was $8.7 million, or $0.21 per diluted share. Consolidated
revenue for the third quarter 2012 was $401.4 million compared with $380.6
million reported for the third quarter 2011.

(Logo: http://photos.prnewswire.com/prnh/20120605/SF19690LOGO)

Operating income was $34.2 million for the third quarter 2012, compared to
$30.9 million for third quarter 2011. However, operating income was negatively
impacted in the third quarter 2012 by expense of $0.3 million associated with
the Company's separation from A&B; and in the third quarter 2011 by expense of
$6.1 million associated with the shutdown of the Company's CLX2 service. Net
of these expenses, operating income decreased $2.5 million in the third
quarter 2012 from the prior year period.

Matt Cox, Matson's President and Chief Executive Officer commented, "Matson
reported another steady quarter, with results mixed by trade lane. We saw
continued rate and volume strength in our expedited service from China,
continued strong Guam volume and modest volume improvement in our Hawaii
trade. These gains, while encouraging, were largely offset by increased
expenses primarily associated with vessel and barge dry-docking during the
quarter."  

Cox continued, "The hallmarks of the Matson brand – superior customer service,
financial stability and solid delivery reliability – have been earned over a
century. Our balance sheet strength and strong cash flow generation support a
strong dividend while providing ample capacity for future investments in our
people, our businesses and new markets."

For the first nine months of 2012, Matson reported net income of $30.3
million, or $0.71 per diluted share.  Net income for the first nine months of
2011 was $32.6 million, or $0.77 per diluted share.  Consolidated revenue for
the first nine months of 2012 was $1,161.7 million compared with $1,087.7
million reported for the first nine months of 2011.

Operating income for the first nine months of 2012 was $72.8 million compared
with $66.8 million in the first nine months of 2011. However, operating income
was negatively impacted in the first nine months of 2012 by expenses of $8.6
million associated with the Company's separation from A&B and $0.5 million
related to the shutdown of the Company's CLX2 service. In the first nine
months of 2011, operating income was negatively impacted by $6.1 million of
expenses associated with the shutdown of the Company's CLX2 service. Net of
these expenses, operating income increased $9.0 million in the first nine
months of 2012 from the prior year period.

By Segment

Ocean Transportation – Three months ended September 30, 2012 compared with
2011

 
                             Three Months Ended September 30
(Dollars in millions)        2012                   2011            Change
Revenue                      $    307.1             $   281.4       9.1%
Operating income^1           $    32.9              $   28.9        13.8%
Operating income margin           10.7%                 10.3%
Volume (units)^2
Hawaii containers                 35,700                35,400      0.8%
Hawaii automobiles                22,200                19,700      12.7%
China containers                  17,100                15,400      11.0%
Guam containers                   6,500                 3,400       91.2%

    

   The Company incurred additional costs related to the shutdown of CLX2  that
   did not meet the criteria to be classified as discontinued operations of
1. approximately $6.1 million for the three months ended September 30, 2011
   and therefore reduced operating income by that amount.   Costs related to
   the shutdown of CLX2 included in Income from Continuing Operations during
   the three months ended September 30, 2012 were immaterial.
   Approximate container volumes included for the period are based on the
   voyage departure date, but revenue and operating income are adjusted to
2. reflect the percentage of revenue and operating income earned during the
   reporting period for voyages that straddle the beginning or end of each
   reporting period.

Ocean transportation revenue increased $25.7 million, or 9.1 percent, during
the three months ended September 30, 2012 compared with the three months ended
September 30, 2011. The increase was due principally to net volume growth,
driven primarily by the exit of a major competitor from the Guam trade in
mid-November 2011, increases in China trade freight rates and volume,
partially offset by lower fuel surcharges resulting from lower fuel prices.

Container volume increased in all of the Company's trades in the three months
ended September 30, 2012 compared with the three months ended September 30,
2011: Hawaii container volume increased 0.8 percent due principally to a
modest increase in demand; Hawaii automobile volume increased 12.7 percent due
primarily to the timing of automobile rental fleet replacement; China
container volume increased 11.0 percent due primarily to an additional
sailing; Guam volume increased by 91.2 percent due to gains related to the
departure of a major competitor from the trade in mid-November 2011.

Ocean transportation operating income increased $4.0 million, or 13.8 percent,
during the three months ended September 30, 2012 compared with the three
months ended September 30, 2011. However, net of expense related to separation
and shutdown of CLX2, operating income decreased by $1.8 million, or 5.1
percent. The decrease in operating income was principally due to increased
costs related to vessel and barge dry-docking, higher outside transportation
costs due to increased activity in the Guam trade, higher vessel expenses and
higher general and administrative expenses. These increases were partially
offset by higher volume in the Guam trade and increased freight rates and
volume in the China trade. 

The Company's SSAT joint venture contributed $0.7 million to operating income
during the third quarter ended September 30, 2012 compared with $2.8 million
reported for the same period last year. The decline is primarily due to the
loss of volume from several major customers.

Ocean Transportation – Nine months ended September 30, 2012 compared with 2011

 
                              Nine Months Ended September 30
(Dollars in millions)         2012                2011             Change
Revenue                       $   886.1           $   794.1        11.6%
Operating income^1            $   69.9            $   61.2         14.2%
Operating income margin           7.9%                7.7%
Volume (units)^2
Hawaii containers                 102,100             105,000      (2.8%)
Hawaii automobiles                60,000              61,300       (2.1%)
China containers                  46,000              43,200       6.5%
Guam containers                   19,000              10,100       88.1%

    

   The Company incurred additional costs related to the shutdown of CLX2 that
   did not meet the criteria to be classified as discontinued operations of
1. approximately $0.5 million and $6.1 million and therefore reduced operating
   income for the nine months ended September 30, 2012 and 2011,
   respectively. 
   Approximate container volumes included for the period are based on the
   voyage departure date, but revenue and operating income are adjusted to
2. reflect the percentage of revenue and operating income earned during the
   reporting period for voyages that straddle the beginning or end of each
   reporting period.

Ocean transportation revenue increased $92.0 million, or 11.6 percent, in the
nine months ended September 30, 2012 compared with the nine months ended
September 30, 2011.  The increase was due principally to net volume growth,
driven primarily by the exit of a major competitor from the Guam trade in
mid-November 2011, an increase in freight rates and volume in the China trade,
and increased fuel surcharges resulting from higher fuel prices, partially
offset by reduced volumes in the Hawaii trade.

Container and automobile volume decreased in the Hawaii trade in the nine
months ended September 30, 2012 compared with the nine months ended September
30, 2011: Hawaii container volume decreased 2.8 percent due to market
weakness, competitive pressures, and a modest market contraction resulting
from direct foreign sourcing of cargo; Hawaii automobile volume decreased 2.1
percent due primarily to the timing of automobile rental fleet replacement.
Container volume in the China and Guam trades increased during the nine months
ended September 30, 2012 as compared to the nine months ended September 30,
2011: China container volume increased 6.5 percent due to increased demand and
a shift in direct foreign sourcing of cargo destined to Hawaii; Guam volume
was higher, increasing 88.1 percent in the nine months, due to gains related
to the departure of a major competitor from the trade in mid-November 2011.

Ocean transportation operating income increased $8.7 million, or 14.2 percent,
in the nine months ended September 30, 2012 compared with the nine months
ended September 30, 2011. However, net of expenses related to separation and
shutdown of CLX2, operating income increased by $11.7 million, or 17.4
percent.  The increase in operating income was principally due to higher
volume in the Guam trade and increased freight rates and volume in the China
trade, partially offset by decreased volume in Hawaii, increased costs related
to vessel and barge dry-docking and higher outside transportation costs due to
increased activity in the Guam trade. The Company also incurred higher
terminal handling costs due primarily to increased wharfage and container
handling rates, higher vessel expenses and higher general and administrative
expenses. 

The Company's SSAT joint venture contributed $3.1 million to operating income
during the nine months ended September 30, 2012 compared with $6.8 million
reported for the same period last year. The decline is primarily due to the
loss of volume from several major customers.

Logistics – Three months ended September 30, 2012 compared with 2011

 
                           Three Months Ended September 30
(Dollars in millions)      2012                2011       Change
Intermodal revenue         $   58.7            $  60.9    (3.6%)
Highway revenue                35.6               38.3    (7.0%)
Total Revenue              $   94.3            $  99.2    (4.9%)
Operating income           $   1.3             $  2.0     (35.0%)
Operating income margin        1.4%               2.0%

Logistics revenue decreased $4.9 million, or 4.9 percent, during the three
months ended September 30, 2012 compared with the three months ended September
30, 2011. This decrease was primarily the result of lower intermodal and
highway volume. Intermodal volume declined primarily due to the shutdown of
CLX2 and the loss of a major international ocean carrier customer, partially
offset by an increase in domestic volumes.  Highway volume decreased due to
the loss of certain full truckload customers.

Logistics operating income decreased $0.7 million, or 35.0 percent, to $1.3
million during the three months ended September 30, 2012 compared with the
three months ended September 30, 2011.  The decline in the operating income
was primarily due to lower volume in intermodal and highway, lower yield in
intermodal, partially offset by decreases in general and administrative
expenses.

Logistics – Nine months ended September 30, 2012 compared with 2011

 
                           Nine Months Ended September 30
(Dollars in millions)      2012              2011        Change
Intermodal revenue         $   170.5         $  178.3    (4.4%)
Highway revenue                105.1            115.3    (8.8%)
Total Revenue              $   275.6         $  293.6    (6.1%)
Operating income           $   2.9           $  5.6      (48.2%)
Operating income margin        1.1%             1.9%

Logistics revenue for the nine months ended September 30, 2012, decreased
$18.0 million, or 6.1 percent, compared with the nine months ended September
30, 2011.  This decrease was primarily due to lower intermodal and highway
volumes. Intermodal volume declined primarily due to the shutdown of CLX2 and
the loss of a major ocean carrier customer, partially offset by an increase in
domestic volumes. Highway volume decreased due to the loss of certain full
truckload customers.

Logistics operating income for the nine months ended September 30, 2012
decreased $2.7 million, or 48.2 percent, compared with the nine months ended
September 30, 2011.  The reduction in operating income was due to lower
volumes in the intermodal and highway businesses, partially offset by a
decrease in general and administrative expenses.

Cash Generation & Capital Allocation

Matson continued to generate strong cash flow during the third quarter 2012
and for the nine months ended September 30, 2012. EBITDA was $52.5 million in
the third quarter 2012 compared to $48.9 million in the third quarter 2011, an
increase of $3.6 million, or 7.4 percent. For the first nine months of 2012
EBITDA was $128.5 million compared to $119.8 million through nine months of
2011, an increase of $8.7 million, or 7.3 percent. 

Capital expenditures for the nine months ended September 30, 2012 totaled
$30.8 million compared with $39.5 million for the nine months ended September
30, 2011.

As previously announced, Matson's Board of Directors declared a cash dividend
of $0.15 per share payable on December 6, 2012 to shareholders of record on
November 8, 2012. 

Debt Levels

Total debt as of September 30, 2012 was $328.6 million, of which $307.2
million was long term debt. During the third quarter 2012 the Company paid
down its total debt by $44.2 million.

Teleconference and Webcast

Matson, Inc. has scheduled a conference call at 4:30 p.m. EST/1:30 p.m.
PST/11:30 a.m. HST today to discuss its third quarter performance. The call
will be broadcast live on the Company's website at www.matson.com; Investor
Relations.  A replay of the conference call will be available approximately
two hours after the call through 5:30 p.m. EST on Wednesday, November 14, 2012
by dialing 1-877-344-7529 or 1-412-317-0088 and using the conference number
10020465. The slides and audio webcast of the conference call will be archived
for one full quarter on the Company's Investor Relations page of the Company's
website.

About the Company

Founded in 1882, Matson is a leading U.S. carrier in the Pacific. Matson
provides a vital lifeline to the island economies of Hawaii, Guam and
Micronesia and premium, expedited service from China to Southern California.
The Company's fleet of 17 vessels includes containerships, combination
container and roll-on/roll-off ships and custom-designed barges. Matson
Logistics, established in 1987, extends the geographic reach of Matson's
transportation network throughout the continental U.S. Its integrated,
asset-light logistics services include rail intermodal, highway brokerage and
warehousing. Additional information about Matson, Inc. is available at the
Company's website.

GAAP to Non-GAAP Reconciliation

This press release, the Form 8-K and information to be discussed in the
conference call include non-GAAP measures. While Matson reports financial
results in accordance with U.S. generally accepted accounting principles
("GAAP"), the Company also considers other non-GAAP measures to evaluate
performance, make day-to-day operating decisions, help investors understand
our ability to incur and service debt and to make capital expenditures, and to
understand period-over-period operating results separate and apart from items
that may, or could, have a disproportional positive or negative impact on
results in any particular period. These non-GAAP measures include, but are not
limited to, Operating Income from Continuing Operations net of non-recurring
expenses or revenues (Adjusted Operating Income) at the consolidated and
segment level, EBITDA, and Adjusted EBITDA.

Forward-Looking Statements

Statements in this news release that are not historical facts are
"forward-looking statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, that involve a number of risks and
uncertainties that could cause actual results to differ materially from those
contemplated by the relevant forward-looking statement, including but not
limited to risks and uncertainties relating to regional, national and
international economic conditions; new or increased competition; fuel prices
and our ability to collect fuel surcharges; our relationship with vendors,
customers and partners and changes in related agreements; the timing of the
entry of a competitor in the Guam trade lane; conditions in the financial
markets; changes in our credit profile and our future financial performance;
the impact of future and pending legislation, including environmental
legislation; government regulations and investigations; repeal, substantial
amendment or waiver of the Jones Act or its application, or our failure to
maintain our status as a United States citizen under the Jones Act; relations
with our unions; and the occurrence of marine accidents, poor weather or
natural disasters. These forward-looking statements are not guarantees of
future performance. This release should be read in conjunction with our former
parent company's (Alexander & Baldwin, Inc.) Annual Report on Form 10-K and
our former parent company's and our other filings with the SEC through the
date of this release, which identify important factors that could affect the
forward-looking statements in this release. We do not undertake any obligation
to update our forward-looking statements.

^^[1] ^ The financial results for the third quarter and first nine months of
2012 reflect Matson's separation from its former parent corporation, Alexander
& Baldwin, Inc. ("A&B"), on June 29, 2012. The separation of Matson from A&B
was originally announced on December 1, 2011. Due to the structure of the
separation transaction, A&B's non-Matson operations have been included in
Matson's financial statements as discontinued operations.

Investor Relations inquiries: Media inquiries:

Joel M. Wine                  Jeff S. Hull

Matson, Inc.                  Matson, Inc.

510.628.4565                  510.628.4534

jwine@matson.com              jhull@matson.com

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income and Comprehensive Income

(In millions, except per-share amounts) (Unaudited)

 
                                     Three Months Ended  Nine Months Ended

                                     September 30,       September 30,
                                     2012      2011      2012        2011
Operating Revenue:
Ocean transportation                 $  307.1  $ 281.4   $ 886.1     $ 794.1
Logistics                               94.3     99.2      275.6       293.6
Total operating revenue                 401.4    380.6     1,161.7     1,087.7
Costs and Expenses:
Operating costs                         337.0    324.7     996.0       943.9
Equity in income of terminal joint      (0.7)    (2.8)     (3.1)       (6.8)
venture
Selling, general and administrative     30.6     27.8      87.4        83.8
Separation costs                        0.3      -         8.6         -
Operating costs and expenses            367.2    349.7     1,088.9     1,020.9
Operating Income                        34.2     30.9      72.8        66.8
Interest expense                        (4.0)    (1.9)     (7.9)       (5.7)
Income from Continuing Operations
                                        30.2     29.0      64.9        61.1
Before Income Taxes
Income tax expense                      11.2     10.6      28.6        22.0
Income From Continuing Operations       19.0     18.4      36.3        39.1
Income (Loss) From Discontinued         0.1      (9.7)     (6.0)       (6.5)
Operations (net of income taxes)
Net Income                           $  19.1   $ 8.7     $ 30.3      $ 32.6
Other Comprehensive Income, Net of
Tax:
Net Income                           $  19.1   $ 8.7     $ 30.3      $ 32.6
Defined benefit pension plans:
    Net loss and prior service cost     -        -         1.1         1.2
    Less: amortization of prior
service cost
                                        0.7      (0.3)     1.0         (0.3)
    included in net periodic pension
cost
    Less: amortization of net loss
included                                (2.7)    (2.5)     (3.5)       (2.8)

    in net periodic pension cost
    Other Comprehensive Income          (2.0)    (2.8)     (1.4)       (1.9)
Comprehensive Income                 $  17.1   $ 5.9     $ 28.9      $ 30.7
Basic Earnings (Loss) Per Share:
Continuing operations                $  0.45   $ 0.44    $ 0.86      $ 0.94
Discontinued operations                 -        (0.23)    (0.14)      (0.16)
Net income                           $  0.45   $ 0.21    $ 0.72      $ 0.78
Diluted Earnings (Loss) Per Share:
Continuing operations                $  0.45   $ 0.44    $ 0.85      $ 0.94
Discontinued operations                 -        (0.23)    (0.14)      (0.17)
Net income                           $  0.45   $ 0.21    $ 0.71      $ 0.77
Weighted Average Number of Shares
Outstanding:
Basic                                   42.5     41.7      42.2        41.6
Diluted                                 42.8     42.1      42.6        42.0
Cash Dividends Per Share             $  0.15   $ 0.315   $ 0.78      $ 0.945

    

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions) (Unaudited)

 
                                                   September 30,  December 31,
                                                   2012           2011
ASSETS
Current Assets:
Cash and cash equivalents                          $  11.5        $   9.8
Accounts and notes receivable, net                    166.4           167.7
Inventories                                           4.3             4.2
Deferred income taxes                                 1.3             1.3
Prepaid expenses and other assets                     26.8            25.1
Current assets related to discontinued operations     0.2             66.9
Total current assets                                  210.5           275.0
Investments in Affiliate                              59.5            56.5
Property, at cost                                     1,779.8         1,760.7
Less accumulated depreciation and amortization        (1,003.3)       (960.2)
Property – net                                        776.5           800.5
Other Assets                                          112.0           95.2
Long-term assets related to discontinued              -               1,317.1
operations
Total                                              $  1,158.5     $   2,544.3
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable and current portion of long-term     $  21.4        $   17.5
debt
Accounts payable                                      127.0           135.5
Payroll and vacation benefits                         15.9            16.0
Uninsured claims                                      7.3             6.5
Due to affiliate                                      -               2.2
Accrued and other liabilities                         22.2            8.8
Current liabilities related to discontinued           0.1             92.2
operations
Total current liabilities                             193.9           278.7
Long-term Liabilities:
Long-term debt                                        307.2           180.1
Deferred income taxes                                 248.8           255.1
Employee benefit plans                                103.3           113.0
Due to affiliate                                      -               0.5
Uninsured claims and other liabilities                33.4            24.3
Long-term liabilities related to discontinued         -               570.1
operations
Total long-term liabilities                           692.7           1,143.1
Shareholders' Equity:
Capital stock                                         31.9            34.0
Additional capital                                    251.5           238.3
Accumulated other comprehensive loss                  (42.9)          (91.9)
Retained earnings                                     31.4            953.0
Cost of treasury stock                                -               (10.9)
Total shareholders' equity                            271.9           1,122.5
Total                                              $  1,158.5     $   2,544.3

 

 

MATSON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions) (Unaudited)

 
                                                           Nine Months Ended
                                                           September 30,
                                                           2012       2011
Cash Flows Provided by Operating Activities from           $ 66.5     $ 71.3
Continuing Operations
Cash Flows from Investing Activities from Continuing
Operations:
Capital expenditures                                         (30.8)     (39.5)
Proceeds from disposal of property and other assets          0.9        1.7
Deposits into Capital Construction Fund                      (4.4)      (4.4)
Withdrawals from Capital Construction Fund                   4.4        4.4
Contribution from A&B                                        26.7       28.9
Net cash used in investing activities from continuing        (3.2)      (8.9)
operations
Cash Flows from Financing Activities from Continuing
Operations:
Proceeds from issuance of debt, net of issuance costs        185.1      48.5
Payments of debt                                             (49.9)     (40.9)
Payments on line-of-credit agreements, net                   (6.0)      (10.7)
Distribution upon Separation                                 (155.0)    -
Proceeds from issuance of capital stock                      24.8       9.0
Distribution to A&B for proceeds from issuance of capital    (21.7)     -
stock
Cash assumed by A&B upon Separation                          (2.5)      -
Dividends paid                                               (33.1)     (39.9)
Net cash used in financing activities from continuing        (58.3)     (34.0)
operations
Cash Flows from Discontinued Operations:
Cash flows used in operating activities of discontinued      (30.1)     (29.1)
operations
Cash flows used in investing activities of discontinued      (18.8)     (17.8)
operations
Cash flows from financing activities of discontinued         33.9       21.0
operations
Net cash flows used in discontinued operations               (15.0)     (25.9)
Net (Decrease) Increase in Cash and Cash Equivalents         (10.0)     2.5
Cash and cash equivalents, beginning of period               21.5       14.2
Cash and cash equivalents, end of period                   $ 11.5     $ 16.7
Other Cash Flow Information:
Interest paid                                              $ 6.5      $ 6.1
Income taxes paid                                          $ 28.2     $ 0.2
Other Non-cash Information:
Depreciation and amortization expense                      $ 56.0     $ 53.1
Accrued dividends                                          $ -        $ -
Capital expenditures included in accounts payable and      $ 0.1      $ 0.2
accrued liabilities

 

MATSON, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation

(In millions) (Unaudited)

 
Adjusted Consolidated Operating Income Reconciliation

 
                             Three Months Ended September 30,
                             2012       2011          Change
Operating Income             $  34.2    $  30.9    $  3.3
Add: Separation Cost            0.3        -          0.3
Add: Shutdown of CLX2 Cost      -          6.1        (6.1)
Adjusted Operating Income    $  34.5    $  37.0    $  (2.5)
                             Nine Months Ended September 30,
                             2012       2011          Change
Operating Income             $  72.8    $  66.8    $  6.0
Add: Separation Cost            8.6        -          8.6
Add: Shutdown of CLX2 Cost      0.5        6.1        (5.6)
Adjusted Operating Income    $  81.9    $  72.9    $  9.0
Adjusted Ocean Transportation Operating Income Reconciliation

 
                             Three Months Ended September 30,
                             2012       2011          Change
Operating Income             $  32.9    $  28.9    $  4.0
Add: Separation Cost            0.3        -          0.3
Add: Shutdown of CLX2 Cost      -          6.1        (6.1)
Adjusted Operating Income    $  33.2    $  35.0    $  (1.8)
                             Nine Months Ended September 30,
                             2012       2011          Change
Operating Income             $  69.9    $  61.2    $  8.7
Add: Separation Cost            8.6        -          8.6
Add: Shutdown of CLX2 Cost      0.5        6.1        (5.6)
Adjusted Operating Income    $  79.0    $  67.3    $  11.7

 

EBITDA Reconciliation

 
                                              Three Months Ended September 30,
                                              2012        2011          Change
Net Income                                    $  19.1     $  8.7      $ 10.4
Subtract: Income (Loss) from Disc.               0.1         (9.7)      9.8
Operations
Add: Income Tax Expense                          11.2        10.6       0.6
Add: Interest expense                            4.0         1.9        2.1
Add: Depreciation and Amortization               18.3        18.0       0.3
EBITDA(1)                                     $  52.5     $  48.9     $ 3.6
                                              Nine Months Ended September 30,
                                              2012        2011          Change
Net Income                                    $  30.3     $  32.6     $ (2.3)
Subtract: Income (Loss) from Disc.               (6.0)       (6.5)      0.5
Operations
Add: Income Tax Expense                          28.6        22.0       6.6
Add: Interest expense                            7.9         5.7        2.2
Add: Depreciation and Amortization               55.7        53.0       2.7
EBITDA(1)                                     $  128.5    $  119.8    $ 8.7

    

(1)   EBITDA is defined as the sum of net income, less income or loss from
discontinued operations, plus income tax expense, interest expense and
depreciation and amortization.  EBITDA should not be considered as an
alternative to net income (as determined in accordance with GAAP), as an
indicator of our operating performance, or to cash flows from operating
activities (as determined in accordance with GAAP) as a measure of liquidity.
Our calculation of EBITDA may not be comparable to EBITDA as calculated by
other companies, nor is this calculation identical to the EBITDA used by our
lenders to determine financial covenant compliance.

SOURCE Matson, Inc.

Website: http://www.matson.com
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