Jerome Holland – Director-Investor Relations Matthew J. Cox – President and Chief Executive Officer Joel M. Wine – Senior Vice President and Chief Financial Officer

Good afternoon, and welcome to Matson's Second Quarter 2013 Earnings Conference Call. For your information, all participants will be in a listen-only mode during the Company's presentation. There will be an opportunity for you to ask questions at the end of today's presentation. (Operator Instructions) The conference is being recorded. I would now like to turn the call over to Jerome Holland, Director of Investor Relations. Please go ahead.

Thanks Yusif. Aloha and welcome to our second quarter 2013 Earnings Conference Call. Matt Cox, President and Chief Executive Officer; and Joel Wine, Senior Vice President and Chief Financial Officer are joining me from Honolulu today. Slides from this presentation are available for download at our website, www.matson.com, under the Investor Relations tab. Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements within the meaning of the Federal Securities Laws regarding expectations, predictions, projections or future events. We believe that our expectations and assumptions are reasonable. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements, in the press release and this conference call. These risk factors are described in our press release and are more fully detailed under the caption Risk Factors on pages 9 to 15 of our 2012 Form 10-K filed on March 1, 2013 and in our subsequent filings with the SEC. Please also note that the date of this conference call is August 7, 2013, and any forward-looking statements that we make today are based on assumptions as of this date. We undertake no obligation to update these forward-looking statements, also, references made to certain non-GAAP numbers in this presentation. A reconciliation to GAAP numbers and description of calculation methodologies is provided in the addendum. With that, I will turn the call over to Matt and Joel, who will take us through the key highlights from the second quarter of 2013 and provide an updated outlook for the balance of the year. Matt?

Thanks Jerome. And thanks to those on the call today. We had another solid quarter driven by continuing strength in our Hawaii trade, modest volume gains in our other trade lanes and a better result in logistics. These gains were offset to some degree by expected lower freight rates in our China trade and a net modest loss at SSAT, while performance in Guam held steady. Amid these positive results in June, our Board of Directors authorized a 6.7% increase in our quarterly dividend to $0.16 a share; demonstrating confidence in our ability to continue to return cash to shareholders, while investing in growing our businesses. As we look to the balance of this year, we expect overall results to modestly exceed the results achieved in the second half of 2012, reflecting a full year cycle of limited economic recovery in the markets we serve. Turning to slide 4, we show our second quarter EBITDA earnings per share and earnings per share from continuing operations. As you can see, we continued to show improvement across all 3 of these metrics as compared to last year. In the second quarter of 2013, EBITDA was $53.8 million, a $2.5 million increase from the second quarter of 2012. The increase demonstrates our ability to consistently generate cash flow from operations. Earnings per share increased from $0.18 last year to $0.47 in this quarter. However, in the second quarter of 2012, we incurred $7.5 million in losses from discontinued operations that negatively impacted the earnings per share. Looking at continuing operations, which is how we think about it internally, diluted earnings per share increased from $0.36 to $0.47 this quarter a 30.1% increase. Part of that increase was bolstered by a lower effective tax rate in the quarter as compared to last year and…

Thank you, Matt. As shown on Slide 13, Matson’s consolidated operating income for the quarter was $36.5 million, as compared to $32.5 million for the second quarter of 2012. The improvement in results was driven by higher volume on all trade lines, most notably in Hawaii and an improved result in our Logistics segment. Second quarter 2013 Ocean Transportation operating income was $34.3 million, an increase of $3.1 million over the prior year. The increase in operating income was principally due to higher volume in the Hawaii trade, the absence of $5.8 million of separation costs during the quarter, and improvements in operating expenses partially offset by higher terminal handling expense and higher general and administrative expenses. Logistics operating income was $2.2 million for the second quarter of 2013, an increase of $0.9 million over the prior year, driven by higher intermodal volume, favorable receivables collection, and lower general and administrative expenses. As we showed earlier, SSAT posted a modest loss for the quarter. These losses are embedded in the Ocean Transportation figures. The next slide on page 14 shows our year-to-date results. For the first six months of 2013, Ocean Transportation operating income was $52.8 million, an increase of $15.8 million over the prior year, driven by lower vessel operating expenses, higher volume in the Hawaii trade, and the absence of separation costs, partially offset by higher terminal handling expense associated with higher volume and higher general and administrative expenses. Logistics posted operating income results of $2.4 million for the first half of the year. On slide 15, looking at our condensed Income Statement, total revenue increased by nearly 5.7% on a year-over-year basis, while our total operating costs and expenses increased by 5.1%. One item of note, selling, general and administrative expenses rose by $5.9 million, was about…

Thanks Joe. We continued to be optimistic about our current operations and prospects. Hawaii volume growth is for solid second quarter and first half year results and we posted better results in logistics, a reflection of a lot of hard work we put into the business in terms of expense control in approving operations. We are also very excited about the expansion of terminal operations at SSAT in Northern California, which will better service Matson, will also meet the needs of the growing customer base. All of these contribute to solid earnings and cash flow generation that give us the confidence to pursue new growth opportunities, increase our dividend and make significant progress on our new build investment plans. As always, we remain focused on continuing to operate all of our businesses at high levels while positioning ourselves for a stronger future. And with that, I will turn the call back to the operator and ask for your questions.

Thank you. We will now begin the question-and-answer session. (Operator Instructions) There are no questions. I would like to turn the call back over to Matt Cox for any closing remarks.

Okay. Well, thanks everybody for your attention. We look forward to catching up with you next quarter. Aloha.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.