Matson (MATX) 4 May 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Lee Fishman.

Andrea. you, Thank

available the Chief on President are Cox, tab. presentation Matt Chief www.matson.com our Joining the under Officer; call and and Investors are this from Executive Officer. Vice download Joel Chairman at Financial website me Slides today for Wine, and Executive

risk or Before expectations, conference the fully will XX any that events. Form that statements make We that make Risk differ as future And the I'll forward-looking are SEC. are reasonable. call to we XXXX, caption X, within detailed our the we over in like caution predictions, obligation Please risk with and the presentation assumptions the the federal on press filed also call are you of those We and our XX-K XX to presentation and to and subsequent Matt. February XX, of based our course the press filings from these cause that, statements on undertake assumptions to date. this date forward-looking more statements. May you today I remind this forward-looking would of no securities forward-looking These is consider release update of in and under factors regarding the laws the to this this results XXXX, pages of now note on projections are Factors the turn our begin, in meaning call. the that and believe release, factors described to actual statements in during call, could We materially we slides expectations conference

will now by is in volumes higher operating thanks saw period. to slide Logistics, this level demand the increase consumption, compared Hawaii, afternoon. to see year-over-year Lee, In primarily goods business, year-over-year of we start Matson the In continue across both a with domestic operating our of ago to start due income Guam. Ocean elevated to year increase the performance. quick first saw our and comparable China income expedited income to quarter a ocean call a off in Alaska volume please operating with in as to the in the services. all year-over-year year lines Transportation favorable inventory services, driven restocking higher quarter and we and year-over-year our decreased go strength those was first on demand strong volume. and of recap on tradelane Ocean solid Transportation this to supply core I'll for in year-over-year, the demand the Thanks, turn primarily quarter X.X% and fundamentals X, Okay. was container Hawaii slide. our so individual eastbound in in we due And Logistics. for markets. through tradelanes, The I next lower

Our level year the hospitality-related westbound volume was demand. achieved prior elevated in to continue as comparable see to the we

comment I'll the chart During to trends. the where improvement the ahead our right of unemployment and to international arrivals in of tourist modest shows levels state's Hawaii business on beginning tourist Hawaii. rate and there Air was current trends by turn the on next were quarter, in since the Visitor XXXX The Please first Arrivals domestic XXXX. the slide,

Mainland During traffic visitors visitor unemployment the predominantly strong. improve the driven first quarter and of to continued rate XXXX, remain US by

traffic visitors later to driving level. in jobs. and XX% the and approximately March total increase of in from the level. XX% further shows Hawaii. growth rate remain unemployment recovery for tourism economic For year, With Tourism visitor XXXX the UHERO's improvement improvement GDP approximately forecast further meaningful construction in and pre-pandemic in continued to on expected strong is optimistic XXXX, domestic cautiously we the continued XXXX in international

well, and further the trending are economic growth the expectations drivers year. So for are for economic

we've tourism rates the presenting potential of disruptions the possibility the economic of affect negatively federal COVID-XX loss However, slowdowns that and risk may income. or higher variants inflation of and interest and discretionary of waves stimulus recognized incremental coupled with

try freight our at in in and for delivery the the volume service point are One conditions containers was from China goods China primarily by demand and of supply and supply China than for first higher these omitting low important was voyages loading. Shanghai, China, material is for on been led carriers mitigate is the turn considerably consumption the period. of empty I'll more Sustained to receiving the in the services. average factors year. to in ship. have business trends, ocean to the premium Matson logistical has volume chain levels Matson's Currently stay have freight in please XXXX impact slide REIT we raw Slide the on goods. the schedule. that to delayed now to timing and Matson's to to Shanghai some and so including of that tradelane, first e-commerce, of been portfolio ocean of note to continued X. five for over have in customer quarter and operation trends to challenges supply There effect inventory Freight due to Through in demand that challenges noise the due to increased chain all demand prior Moving they a calls Transpacific XXXX Freight than realize COVID-XX. on operating were and comment these actions minimal. eastbound Matson's are the X. ready higher XX.X% been of returning elevated spread challenges expedited production seeing the driven significant quarter closures There which of shortages year-over-year impacted the There are of Containerized truck play. of factory drivers number reduce rates achieved in year-ago garments quarter Index other a the current

receiving and ships departing on are managing our are time. and in empties terminals Shanghai freight Our Ningbo

continued were to to logistics And Shanghai rather moved those filled weekly back seen cancel have issues. quickly deliver COVID-related to line reservations on to from to seek bottom avoid the from that sailing The as customers ocean US China. few freight a warehouses Matson's basis expedited customers full we've solutions their is spots vessels on a Ningbo customers West goods Coast. their other but Some freight are

remain to of of yesterday. equipment China, Los elevated Long as supply XX we are continue constraints, Warehouse, container In challenges and congestion addition chain Angeles key of berth Coast. waiting and of the these and rail constraints ships supply in to on in US at issues. capacity chain as The ports West the remain number availability congestion Beach see

on Southern As shipments normal thereby to the see in in and key our to in a China chart production many import flow customers. resumed be an The and increase factories at to the stress inventory challenge at to consumption volume slide the US expect in begin infrastructure trends levels, points elevated traffic adding Lastly, California marine we for ratio. to retail continues shows replenishment remain inventory the and sales

ocean a us can to see to the current meet portfolio, management to needs. ratio well recover CCX affords for expedited their service multiple as supply discrete you manage has ocean level our and chaotic As is chain environment CLX, freight providing customers CLX+ options struggled This pre-pandemic opportunity below ground. the the and

which customer we Transport in and truck of tradelane at CCX continue and the for cargo times dedicated first availability at our berth We offer to hours CLX ocean fastest turn services, industry-leading onto XX Shippers first terminals transits operated offer our facility. offloading cargo of is arrival our unique in, off-dock the at chassis, within SSAT a and

customer X Beach at cargo of terminal at up Our CLX+ service their the and XX off-dock availability Long arrival Transport. also berths berth Pier picking freight facility at the the at and hours and operated SSAT at multi-user of facility Shippers within benefit offers

China the With the in chain of to customers. in ramp-up an service China, of advantages role supply expect important we logistics meeting and to the normal play operations needs our competitive forthcoming our manufacturing

demand in our October for least China the to remain we the year, current through of expect services and expect and a elevated most these place combination For factors we largely for at demand supply season peak the year. of

October such, we CCX keep expect least place service to peak until through XXXX at As the in season.

quarter volume XX% to demand. primarily first Guam, year-over-year, due container Slide XXXX Turning related the Matson's X. increased to In retail higher in of

recovery progresses, variant other recovery. but year remain For on as Guam, negative optimistic the traffic we tourism have the the economic we XXXX, COVID-XX economic economic we on and effects further in also potential that visitor expect cautiously future could waves as recognize improvement traffic in on factors

in Alaska, volume northbound on to increase The year-over-year. was quarter seafood now volume In benefited primarily and for southbound dry-docking primarily demand earlier to stronger year increased higher service, A XXXX due volume. and increased volume to our first related totes to retail and been due the to Slide AAX AAX season southbound Matson's container and fishing seafood X. higher Moving last XX.X% this than related year-over-year higher higher year which primarily volumes. has volume due started volume our The

oil fishing fish economic we outbreak quarter of had a an Alaska's the last that A On due season the first the exploration improving the a resumption term, prices Cruise increased activity energy summer tourism Alaska result trends of we Lines. higher several start earnings Islands. XXXX to at near year from call, from in delayed Aleutian and the In of production in indicated processing COVID-XX facilities expect and as

presenting variance remain possibility the stimulus from incremental to economic loss the rates. disruptions However, the federal of slowdowns the uncertain and recoveries, the and of on continues higher interest potential of COVID-XX trajectory or waves discretionary income effects given inflation

Turning next to XX. Slide

to see translate in terminal primarily a volume SSAT. the of Coast, $XX joint we higher to compared expect from which period. SSAT result million revenue. elevated we Currently, service quarter contribution Our first contributed higher relatively million contribution terminal other prior $X.X import a the continue high into West in venture to XXXX year the into U.S. was The

our in to demand million lines, elevated Operating $XX.X in markets. review quarter in China supply Logistics elevated than higher consumption, of call the performance now track with over Supply the I Slide The was $XX.X container primarily in Chain XX. business fundamentals of service to and see contributions Joel our came on business. and increase lines expected or result Southern to contribution restocking to a at seeing our We're we performance. of as period. in some that, our the from will financial core from Turning to the favorable volumes turn due inventory with will which all now And continued the service. of our million The continued goods income currently higher year-ago for first California, is continue to Management benefit

a turn first results. quarter Slide Matt. Thanks of review our for Okay. Please XX to

due costs increase The freight For increased Logistics operating by to considerably the contributions partially respectively. higher Transportation and of $XXX.X million and with the of CCX primarily a higher due in from higher surcharge timing the fuel-related average expenses to and quarter and income Transportation CLX+ rates offset and $XXX.X was first million Ocean year-over-year operating and quarter, services income first in Ocean in consolidated to higher contribution and $XX.X the XXX.X higher primarily operating from SSAT recovery. China volume million

noted, contributions the operating from Matt million lower prior primarily Interest all services. in income year-over-year debt higher Logistics in to the increase first period. As this year outstanding $X.X due quarter was of versus due declined the to year expense

rate of ago XX we XX was generation. XX.X% the in the how compared Lastly, the quarter year trailing cash effective shows XX.X% months flow to our tax allocated Slide period. in

via new operations XX, plan. and we existing share and program lease cash million of the including share XXth XX used $XX.X termination and million outflows, buyout the and flows March -- On repurchase operating period balance cash year debt, our cash on generated other shareholders early turn to $XXX.X shares dividends to for that Board summary of million January For a from sheet. $XXX.X the payments, $X.XXX maintenance while addition to Please of billion repurchase. this million vessel of retire ending $XX.X we share returning $XX.X $XXX.X from slide approved CapEx, flow and announced other we million X repurchase of the to CapEx on which on million million LTM

repurchased quarter, for shares the X.X we approximately $XX.X first million. total During a cost million of

remaining in As the shares end repurchase million share of first of quarter program. were the there the approximately X.X

was total Turning debt debt total levels, to and million. quarter end $XXX.X at our million our net the of our the was $XXX.X debt

the to one upsize three summarizes moved by Aloha the continue XX, CLX our to projects. tradelane, new vessel allow page re-fleeting which Moving per the of would operating review to XXX two of vessels key are; CLX containers three LNG-ready service, in of with purpose-built this status the expenditure the service CLX into new approximately the Alaska slide Alaska to capital secondly, for three Starting us construct or for construct for of Class vessels capacity smaller options and the the vessels Alaska; the vessels the which service, vessel. we currently

mentioned we call, status into on funding on for As on Inouye year also LNG the get quick installation on projects remain program. construction earnings provide update may both a we K. fund this projects to this new Manukai, the prior and on vessel the a the start head I investors Daniel capital track. want

We of to in last total a year $XX Daniel at the the next on quarter Inouye the begin expect months continue and LNG installation first roughly cost to million. to K. approximately five

and project months is Manukai cost to $XX after to the reengining Inouye million. is Daniel approximately reengining complete. approximately last project K. begin expect XX The expected We the the of

LNG Kaimana be and decision of is currently at installations Hila, Lurline, been has vessels cost projects. to The these yet for no We $XXX million. time three Matsonia. estimated to on continue three on all made installation these evaluate But total approximately this

reiterating turn the CapEx on discussed we the for XXXX last back I over we million now million to our With $XXX call. call Lastly, of that, to that will range $XXX earnings Matt. are

be issues potentially want I to to Thanks operating longer in supply today. Okay. the in here, expect. of manage our to near-term, and There now main our currently observations Joel. the supply chain are will customers. we're this than given freight we're persist through factors but expedited difficult demand a few chain with close solutions and supply The globally at likely are many number high environment for seeing a believe we demand in environment play

remains where levels picture to First, the demand for retail-related see spending elevated continue consumer positive we American goods. of

these put materialized on believe rates inflation rising we effects discretionary yet. pressure While have interest not negative income, and may

on low the near-term. Second, to pace. the manufacturers further disruptions will supply for turn, In ramp see recent elevated inventories, inventories particularly, relatively were production retail chain keep with pressure consumer expect before we goods, consumption, to need in to

of of sort disruption of some season. on freight. supply will since China amount from out, indicated will significant recent the backlog with coincide our summer particularly, have production chain months have the example, to take For this of challenges a customers This recently itself they traditional the order peak time

to nearly ahead are pulling higher upcoming possible the customers freight goods some by key input and along get opportunities pivot Within arranging cost in and to to to pretty are react exacerbating us the two are forward allowing labor manage vessels control delivery. alternative flows. contract Matson stress our equipment in system. from to We for such the their to to reasons in similar supply to chain pandemic. quickly the the volume and costs for points any fuel plans appropriately of this operating to Third, the positioned disruptions The as aspect renewals of supply competitors market. our the straightforward. environment, key impact and and labor lastly, than assets done the infrastructure own chain Fourth, new last this expected what evolving every prices is And shortages are adapt and from for we've better complex planning years

the high your difficult will to periods the and Thanks. call delivering customers operator service I And commitments. through finally, We cargo transit unparalleled a service like our and we for with competitive Transportation the in read to of highly this quality, customers that, on time questions. level provide and differentiated service long have And back availability. expedited Ocean one advantages ocean Logistics for history customer China looking and and maintaining a of service have managing our turn

Instructions] Stifel. [Operator Nolan Our with from you. question first comes Ben Thank

guys. Great. just to the I'll it couple understand. I've that wanted lot, make in and get a just a I'll then line. back and but Hey, maybe ask got start first side I and China turn over sure on I

of put sounds how far of that's happening full. things sense despite least that China or you're like you for are month still impacted April. To going So related one is sort the but in and in April specifically, despite that looked where are else and you volumes all volumes the the it hasn't appear normally impacted end to that the sort it everything that materially of lockdowns sailing Any to thus of or developing everything be of China presentation how on? like at

Yes.

we So Shanghai to your despite outerlying were see Ningbo. quarter Ben, are question in of vessels COVID all cargo the Shanghai. of it to full What the in challenges moving were trucking of part the example was there. effectively sailing that regions their customers our first first really for of were our did They instead the who

some load into Matson saw -- that week contrast to single we Ningbo, think for we're through port we that that April. full. from week we been industry -- Matson every the have the trend the vessels and to of but seeing same week again our of a were Matson's customers So ports. What let has What And Matson by diverted our effectively to shift Alliance slot number Shanghai continued every I between ships full April. been industry. has other and the me where saw for as saw

to seeing markets. was a but Shanghai canceled their carriers when other number to of and capacity other some Shanghai went say Asia that to origin ocean shifted and reallocated let's or them customers avoid that from sailing Ningbo, Busan the or all problems together ports congestion some So to

April. the by ports for it able a carriers. in other reduction remain we our there case of filled load Shanghai through was every overall In were to the was capacity week impact that other but So was included full largely

helpful. That’s Okay.

is think same April it, in And about running so volume way You're right? still than the to should ? different effectively be March a no

CCX week some three we essentially three be three a we have the have same. are -- two. week downs serve should we But have because factor and the we to than Yes. by five weeks by some that have sale There week and to other -- ups is or weeks I it mean, weeks related it's directly. weeks

bit Okay. a little And the to shifting rate service. on then just China

One of in see all and And the play of I for then rates I they reason. same you since whatever general rate don't various things on perspective even that indices out the from a bit different what quarter, little Transpacific head a sort for you scratch look guys my moment? playing to rate is how but you're ball in the at game Can the just talk altogether. maybe end is maybe again of a seeing the

for Yes. Matson I indices. general freight is the rate, make rate for rather Freight don't question others -- specifically year high but and about -- has rates, of levels. include the that certain Containerized through relatively Index, we've Shanghai what base let's observations what without some in surcharges, add-ons about what from additional reductions these Containerized that press but say about missing been talking the freight And the Index I is rates rate, as reported I congestion would can have rates all those say, trade -- of not and part would the is times are in is at Freight very freight to But small the see this rate the levels. are market Shanghai your seen the

where in the There's operate, our segment And market subset weekly. on freight we where three for know, stable in are as the overall in which focus very of that we expedited more rates. that's weekly, has again, average -- rates to three the other remained providers. environment production our So disrupted see area in say, environment, of we has -- transportation our And been all which services significantly even a rates. an then we than fit all operate a I market orderly more experience those than we cargo would larger rate on can have is that the expedited freight services you

very the we at environment rate stable have a present So moment.

Okay.

worked downtick you're wrong I that, So, okay, the expedited bit that, it. itself to market, of even broader in the hasn't it a been is it -- quite directly reading of there's of -- side a despite am Is through sort little fair? that saying

good way a it. that's Yes, to recap

that Okay. and then I'll And me of the all I'll it over talking in. -- probably have back of back sort issues then, the could then last the get and supply into you're chain seeing But or that that -- we're were been China shifted normalizing. to it just to just that exacerbates trade and increase turn about so, way I and get market it going supply are happening Coast a that again, may Coast, chain we bit? of thinking heighten on that or that that the think China problems or duration level of in Japan the that stretches issues fair problems maybe be West have from and West the some that of maybe seen easing ultimately to Is the perhaps the some alleviated pressure are means we've you in a for in

ships as the the in peak number see I think all the this back area inventory move China online, in traditional backlog to in manufacturing I waiting. in start with think into and Yes. that. part we reduction sure. and mean, temporary caused that that we'll has a it the Shanghai together do season, one comes increase, reduction When of that's building I for of do

to be of enough lot points and continuing I in it that are we've only the of fast They in can't a stuff in other think also their around And all the about and the the increase from at seasonal to crews observing train continue will But to factors, able to the move backlog around. hire open labor our continue terms you of COVID of Shanghai I'm of entirely think numbers short And begin sure a testing I the relatively -- availability on issues that have West potential in using do clear inside and Coast. economies the it's to Asia bounce reduced. the will very that, be China -- in with and thing to factors talked we're Omicron proven already we're more that China, difficult has low Southeast the issues of regard time begin that because other done. with of parts and So shortages seeing around the positions the transmittable that and parts this me be separate highly customers period other other Asia, including doesn't warehouses have rails. as personally choke chain, because But to to the traditional a not advancing continue labor features mentioned. we're supply within to of constrain,

think, are together it's are -- thrive, it's just but that I of a that's basket I factors So, a these the those and choppy choppy really some going a in think one factors, cause which all we environment. that environment tied frankly, to

helpful. you'll from just and appreciate Matt. me Jack hear I'll over it probably few it minutes. I again, And turn in That's to a

Okay.

Ben. Thanks, great. Sounds

Thank you.

Our Jack with comes Stephens. next question from Atkins

is unions the on Coast on sort thoughts as theme same This To you Cameron on of Hi. on happening do you any with negotiated, with all for a there? West the keep the as talk far Jack. what's out labor quarter Congrats to Coast that guys. have West great

Yes.

started, So the have down. formally not agreed they've negotiations to next but week sit

the I requirements its to And will side each and think, that formally beginning launch will part the the May. of other of the negotiation process. of on formal present XXth each it's

starting they without the The they're begin, history in through disruptions. there outcome is that one hard produce lot know acceptable disruption. will to a have don't own says supply an no we're an we process there and be Other chain really times we so, how and side going sometimes them and other insight. that Each any that work likely that's disruption. our hoping It's needs without everybody will orderly of else been are but its week. wants have to have formally And like way problems to next handicap and

And then another Matt Awesome. question. Okay.

service What to is winding guys consider would least at October you factors season. 'XX at of that when as are that you expectations keep CCX reiterated Matson sort looking So, that its through to down? peak service

Yes.

if in we through through believe will believe have peak market to that we that we're we the that, CCX more this strong environment through said additional that that To remains also And the We've relatively we us ability the the XXXX in year's the provide likely period. longer with and entirely into capacity keep well XXXX. stay can So, to operating most it Cameron will generally on season. it it whether in said today does, that well the remain extent we the dependent place of the CCX this environment market have be needs market.

there? the changed awesome. there. spot Okay, clarification of the mix levered past that has years versus bid China. coming the market several for Thanks spot out Is any all this the there more Matson then overall over to been to And Has season? contract philosophy around at changes during the

Sure. Yes Cameron.

You're right.

I think we over transactional operated rate shorter time both And have operated with what that's expedited. try operating we We with -- have seen XX service the service a that operate is, to a and more shorter period. different years the we're balance we've of annual last contracted a because freight

how they'll really to need don't when know or customers Our use us. much us to they'll need use

to favor. the We've full than XX as Cameron of ships would worked been full known how a less It's way have like themselves aren't you than a to. it's late order a to quite freight. time And our much that's than just our the really to, able our for ship And XX with been it's not know lower we bit have over half have a our problem, of sure that exactly CLX comfortable need so, years because historically contract quite or been customers that been other when production last have whether they'll now a our they commit year. they has start-up

exactly to the of obviously comfortable but don't change. market we segment the knowing is, We're this we've expedited manufacturing through that So What know a of there's treatment. more larger going pandemic that require treatment. this customers same, seen which requires production, are the environments expedited

that's So the period a been has that our us annual current and we have than contracted we're of approach less remain where being taking. we way, market long and of served historically freight over time way with half

there. you. thank Really insight Awesome, the appreciate

to Just quantify and far all so guess April you on did that looking move? are trends April volumes things in how really how rates I quick revisit April

haven't Yes, than have don't just rate a given maybe But really the we environment commenting markets. other uncertain commented really comments any the not really other moment around we we China ago. -- in just

we Alaska looking is Although be our should strong that Hawaii in noted commentary better.

we of each are we've what the think in very looking haven't the comments April We quantified are consistent for, our tradelines. that experience but those with in made

much guys. so you Thank quarter for Awesome. great time. the on the Congrats again

Thanks Okay. Cameron.

time, with to this turn Stifel. I'd Ben Nolan At like Instructions] it to [Operator back

right. All Hello again.

you main bit I were little to just about. And was the I know somewhat certainly The thinking or -- element better about the cost. there numbers ask there's I fixed it's a an of of that relatively and So, eye-popping way. SSAT. got out pretty step than wanted

more operating I you general, amount of on decent just if so, And in do leverage certainly and a than guess volume But here. that things is -- contributing there's SSAT. two

revenue does to have there that flow higher the any income, -- in it you're such or to is to confident lot been As has And then, permanently generating the through how more be contributor now past? a those that more as is way it things SSAT can do broadly, in through Matson changed is different and that it maybe Matson. than think a -- how net through it contributor? flow cash a any more reason flow maybe Is

I'll that. Joel. it's take Ben,

it the of time. Coast. very if not at works you ports period part of of as they're And part flow joint look that in the earnings way across first on sub usually is different West essentially SSA cash on the and contribution, off, any -- XX-month far So the the contribution, ventures there's the

As dividend to SSAT and entities to us. up cash each a periodically which then, of two it then dividend of will to the gets accumulates declare SSAT XX% the owners, comes

an coming end So, Matson like May. here one as cash but in example. an was distributions two to we that the one is as -- in quarter first you at the have instead quarter And early in might there of of because one quarter, just had example distribution we first really in timing not a here these strong accumulation the the distributions, of and the certain earnings

fluctuations. shouldn't actual cranes every entity that So, five, of the invest or bit other the of joint in equipment. in the has off Every new three, far a little the a But it venture be years, in earnings is. over year, course once seven what the quarter-to-quarter to while of

might it but earnings, five bit dramatic years. hasn't a than less in been at be it sometimes least So little the last

two say on continues But main So in -- that's earnings venture about Coast. L.A. in changes. best-of-breed Long an terminals and excellent other SSAT picture cash and down to really I'd timing. there's flow Beach. there than Beach Big the operator be Long L.A. XX has the joint no West structural

terminals the we've market. We've key that Seattle Oakland a But a the in in greater then region So, we a here of of XX% smaller of got all lifts got share in the about market. terminal share and in Tacoma Seattle, have much in the key Oakland.

to margin could little have on bit Seattle to diverting wait Beach any and than and long-term So, times Long SSAT. of short-term a that the of open trend kind L.A. customers international the are freight benefit extent that the carrier Tacoma are longer

in last some on So say, Beach. in the now you of times and times because Long that year, right wait I'd the of berth see going

business the the So we in the ports to three best entity and that's do joint a been venture going and growing service last That's key But of the of the the great I is its West think quality primary organically. grows Ben, do the to really years attracting and in way that's over customers more of by to long-term each modest time. history delivering just XX what thing. aim Coast the on customers

helpful. then, assume just rate ballpark a XX%. fair and it's And But, Is year? it the a little should was over boring. second half that, that the for last that that I the apologize stay my Okay. question, quarter Joel. of to of the in back that appreciate in -- tax as kind should I That's we you

to Yeah. We've bounce XX% recently. around XX%

in it in but foreign-derived our details the so, And our XX-K, this -- footnotes you it is last X.X% see about new biggest which us year. intangible benefited of that the driver income,

the been and range XX% to then to the the came down historically we've for XX%. XX% XX% So to year

similar to that's XX% long the lower stays as at quarter. a this of be came So range where kind end should that in XX% fashion, of as we and the out we

the But piece. was foreign-derived is XX.X%. intangible driver -- it This big that quarter income there is the

to Well, that. of sort tied Okay. and

be last still this the of will So, part question.

construction you some about in to remarks, think taxes? capital the your -- when and mentioned You contributions Joel, build decide to it Does that prepared how making fund if new ships. we all changed

income cash will significantly itself that unchanged rate No. be statement be but will itself the tax the hits influenced by rate itself flow effective that. by -- The tax the that

dollar that is it a that have get liabilities the CCF. then will for reduction it cash so will income of put a not that -- deferred What investments statement. benefit balance think for a P&L tax in -- our item. cash sheet we tax eventually happens we'll But, affect as but on down item road. dollar that benefit won't larger the reverse So But accrue the we'll

Perfect. right. Appreciate. All Thank you. Okay.

Ben. Thanks, Okay.

I to to I'm no turn CEO. like would Cox, showing questions further Chairman time. at Matt back this now the and conference

here. Thanks That's operator. enjoyable with at for us the to up We'll of everyone it -- forward an spring. look catching Aloha. quarter. have I Okay. hope next to has you end continues

conference That Thank for today's you call. participating. concludes

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