Matson, Inc. (NYSE:MATX) Q4 2023 Earnings Call Transcript

Grant Smith: Hey guys. This is Grant on for Jack. Thank you for taking my questions. Matt, you mentioned natural extension to Matson brand. Previously, I think you guys have talked about that likely coming within the Logistics segment. Could you maybe just kind of update us on what you are seeing related to logistics M&A targets and/or maybe are you seeing opportunities in other tradelanes like South China on the Ocean Transportation side, perhaps as it relates to the events in the Red Sea. Thanks.

Matt Cox: Yes, sure. Thanks for the question. I would say that when we look at brand extensions, I would say we would look to our past to look at both organic growth initiatives, whether it’s our fleet of 53-foot rail boxes growth in those rail services in and out of Mexico, for example, is a new vertical. That’s an organic growth initiative. We have done some small tuck-in acquisitions in the Alaska service. And while we see valuations as continue to be elevated in logistics businesses or base their financial forecasts on elevated profit forecast that were borne out of the pandemic boom. We do keep a watchful eye on good quality businesses that fit our investment profile. I would say right now, there is – well, we are going to keep a close eye on it.

We think valuations are still relatively elevated and beyond our underwriting capability. To your point about China, we expanded our service offering, connecting with partners to have direct services from Vietnam, which connect over Shanghai to meet our CLX or our MAX services. We expect continued growth in working with partners to expand the origins of our business out of China into nearby markets. So, those are just a couple of examples of ways in which we expect to continue to grow over time.

Grant Smith: Okay. Great. Thank you, guys for your time.

Joel Wine: Okay. Thank you.

Matt Cox: Thank you, Grant.

Operator: Thank you. And that does conclude the Q&A session for today. I would now like to turn the conference back over to Matt Cox, CEO, for our closing remarks. Please go ahead.

Matt Cox: Okay. Thanks operator. Thanks for tuning in today. We look forward to catching up with everyone at the first quarter call. Aloha.

Operator: This does conclude today’s conference call. Thank you all for joining. You may disconnect.