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") and Return on Equity ("ROE"). ($ 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 | February 2023 $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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