Matson Investor Presentation Deck slide image

Matson Investor Presentation Deck

15 Appendix -Non-GAAP Measures 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, Earnings Before Interest Expense, Interest Income, Income Taxes, Depreciation and Amortization ("EBITDA"), Return on Invested Capital ("ROIC"), Return on Equity ("ROE"), Total Debt-to-EBITDA and Net Debt-to-EBITDA. ($ in millions, except ROIC and ROE) (6) Total debt Less: total cash and cash equivalents Net debt. Net income Add: loss from discontinued operations Add: income tax expense Add: interestexpense Subtract: interest income Add: depreciation and amortization EBITDA Net income (A) Add: loss from discontinued operations Subtract: interest income (tax-effected) Add: interest expense (tax-effected) Total return (B) Average total debt + (6) Average shareholders' equity (C) Total invested capital (D) ROIC = (B)/(D) ROE = (A)/(C) (4) (4) LTM as of 09/30/22 Investor Presentation | November 2022 $531.8 $ 629.0 (242.8) (282.4) 289.0 346.6 $ 1,380.4 346.4 19.0 (1.3) 163.0 1,907.5 $ 1,380.4 (1.0) 15.2 1,394.6 2021 57.8% 75.8% $927.4 243.9 22.6 156.4 1,350.3 17.9 945.3 2020 $ 760.1 (14.4) 745.7 47.1% 70.6% $ 193.1 65.9 27.4 $927.4 $ 193.1 137.3 423.7 20.4 213.5 2019 12.3% 21.9% $958.4 $856.4 (21.2) (19.6) 937.2 836.8 25.1 22.5 (1) $ 82.7 $ 109.0 134.0 264.3 For the years ended December 31, 2018 2017 2016 16.7 99.4 (2) 5.9% 10.6% 38.7 18.7 130.9 297.3 14.2 123.2 $857.1 $ 738.9 $ 429.9 (19.8) (13.9) (25.5) 837.3 725.0 404.4 (3) $ 82.7¹) $109.02) $231.0(3) 7.8% 15.2% $231.0 (105.8) 24.2 146.6 296.0 14.9 245.9 $81.4 17.8% 39.4% 49.1 24.1 135.4 290.0 $81.4 2015 15.1 96.5 $ 589.5 $694.6 $859.3 $907.4 $856.8 $798.0 $584.4 $401.8 1,821.7 1,314.3 883.5 780.5 716.3 586.1 472.8 407.1 2,411.2 2,008.9 1,742.8 1,687.9 1,573.1 1,384.1 1,057.2 808.9 $ 103.0 74.8 18.5 105.8 302.1 $103.0 10.7 113.7 2014 $ 373.6 (293.4) 80.2 $70.8 51.9 17.3 90.1 230.1 $70.8 10.0 80.8 $329.9 351.0 680.9 9.1% 14.1% 11.9% 17.2% 25.3% 20.2% 2013 $286.1 $319.1 (114.5) (19.9) 171.6 299.2 $53.7 32.2 14.4 91.0 191.3 $53.7 9.0 62.7 $302.6 309.1 611.7 2012 10.3% 17.4% $45.9 6.1 33.0 11.7 95.4 192.1 $45.9 6.1 7.2 59.2 $319.1 (5) (5) 279.9 599.0 (5) 9.9% 16.4% (1) Includes a non-cash tax benefit of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Cuts and Jobs Act (the "Tax Act"). (2) Includes a non-cash tax expense of $2.9 million related to discrete adjustments as a result of applying the provisions of the Tax Act. (3) Includes the benefit of a one-time, non-cash adjustment of $154.0 million related to the enactment of the Tax Act. (4) The effective tax rates each year in the period 2012-2021 and LTM 3Q22 were 38.8%, 37.5%, 42.3%, 42.1%, 37.6%, (84.5%), 26.2%, 23.3%, 25.4%, 20.8% and 20.1%, respectively. The effective tax rates for 2017, 2018 and 2019 excluding adjustments related to the Tax Act, would have been 38.5%, 24.2% and 26.0%, respectively. (5) The 2012 calculation is based on total invested capital as of December 31, 2012 due to the timing of the separation from Alexander & Baldwin. (6) Total debt is presented before any reduction for deferred loan fees as required by U.S. GAAP. Matson.
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