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Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 20, 2017 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 7.2% increase in net income to $9.1 million, or 17 cents per diluted share, for the second quarter ended June 30, 2017, from $8.5 million, or 16 cents per diluted share, for the second quarter of 2016.  Net income increased 3.8% to $17.4 million, or 32 cents per diluted share, for the first six months of 2017 from $16.7 million, or 31 cents per diluted share, for the 2016 six-month period. 

Operating revenue increased to $171.5 million for the second quarter of 2017 from $166.1 million for the second quarter of 2016, and increased to $344.7 million for the first six months of 2017 from $328.0 million for the 2016 six-month period.  Operating revenue, net of fuel surcharges, improved 2.0% to $155.9 million for the 2017 quarter from $152.9 million for the 2016 quarter, and improved 2.5% to $312.5 million for the 2017 six-month period from $304.8 million for the 2016 six-month period.  Fuel surcharge revenue increased to $15.6 million for the 2017 quarter from $13.2 million for the 2016 quarter, and increased to $32.2 million for the first six months of 2017 from $23.3 million for the 2016 six-month period. 

Operating expenses as a percentage of operating revenue improved to 90.9% for the second quarter of 2017 from 91.1% for the second quarter of 2016.  Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 90.0% for the second quarter of 2017 from 90.3% for the second quarter of 2016.  

Operating expenses as a percentage of operating revenue was 91.4% for the 2017 six-month period and 91.2% for the 2016 six-month period.  Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.6% for the 2017 six-month period and 90.5% for the 2016 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our growth in revenue and profitability driven by our continued disciplined execution of Marten’s unique multifaceted business model.  Excluding the one-time facility disposition gain in our first quarter of 2015, we earned the highest net income in our history in this quarter and achieved our best operating ratio, net of fuel surcharges, over the last ten quarters.  With our dedicated and experienced workforce and our diversified transportation service solutions, we are confident in our ability to capitalize on further profitable growth opportunities across all of our business units.”

On July 7, 2017, we effected a five-for-three stock split of our common stock, $.01 par value, in the form of a 66 ⅔% stock dividend.  Our consolidated condensed financial statements have been adjusted to give retroactive effect to the stock split for all periods presented.

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment.  Marten’s dry freight services are expanding, with 933 dry trailers operating as of June 30, 2017.  Marten offers service in the United States, Canada and Mexico, concentrating on expedited movements for high-volume customers.  Marten’s common stock is traded on the Nasdaq Global Select Market under the symbol MRTN.

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These statements include our discussion of the Company’s prospects for future growth and by their nature involve substantial risks and uncertainties, and actual results may differ materially from those expressed in such forward-looking statements.  Important factors known to the Company that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.  The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.


 
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
 
    June 30,     December 31,  
(In thousands, except share information)   2017     2016  
                 
ASSETS                
Current assets:                
Cash and cash equivalents   $ 10,058     $ 488  
Receivables:                
Trade, net     67,174       69,199  
Other     5,657       4,436  
Prepaid expenses and other     17,635       19,307  
Total current assets     100,524       93,430  
                 
Property and equipment:                
Revenue equipment, buildings and land, office equipment and other     775,149       759,553  
Accumulated depreciation     (206,943 )     (201,728 )
Net property and equipment     568,206       557,825  
Other assets     1,854       2,493  
Total assets   $ 670,584     $ 653,748  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable and accrued liabilities   $ 46,103     $ 41,230  
Insurance and claims accruals     21,811       19,440  
Total current liabilities     67,914       60,670  
Long-term debt     -       7,886  
Deferred income taxes     148,046       147,854  
Total liabilities     215,960       216,410  
                 
Stockholders’ equity:                
Preferred stock, $.01 par value per share; 2,000,000 shares authorized; no shares issued and outstanding     -       -  
Common stock, $.01 par value per share; 96,000,000 shares authorized; 54,514,421 shares at June 30, 2017, and 54,391,525 shares at December 31, 2016, issued and outstanding     545       544  
Additional paid-in capital     75,740       74,175  
Retained earnings     378,339       362,619  
Total stockholders’ equity     454,624       437,338  
Total liabilities and stockholders’ equity   $ 670,584     $ 653,748  
                 

/EIN News/ --   


 
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Three Months     Six Months  
    Ended June 30,     Ended June 30,  
(In thousands, except per share information)   2017     2016     2017     2016  
                                 
Operating revenue   $ 171,511     $ 166,090     $ 344,670     $ 328,019  
                                 
Operating expenses (income):                                
Salaries, wages and benefits     56,715       56,196       113,115       111,026  
Purchased transportation     27,516       26,187       56,878       54,222  
Fuel and fuel taxes     25,007       23,930       50,963       43,560  
Supplies and maintenance     10,541       10,908       21,531       21,407  
Depreciation     21,306       20,368       42,689       40,415  
Operating taxes and licenses     2,252       2,250       4,499       4,435  
Insurance and claims     8,848       7,696       17,762       15,051  
Communications and utilities     1,487       1,497       3,068       3,117  
Gain on disposition of revenue equipment     (1,871 )     (2,703 )     (2,974 )     (4,137 )
Other     4,141       4,985       7,632       10,022  
                                 
Total operating expenses     155,942       151,314       315,163       299,118  
                                 
Operating income     15,569       14,776       29,507       28,901  
                                 
Other     125       237       266       452  
                                 
Income before income taxes     15,444       14,539       29,241       28,449  
                                 
Provision for income taxes     6,303       6,008       11,886       11,725  
                                 
Net income   $ 9,141     $ 8,531     $ 17,355     $ 16,724  
                                 
Basic earnings per common share   $ 0.17     $ 0.16     $ 0.32     $ 0.31  
                                 
Diluted earnings per common share   $ 0.17     $ 0.16     $ 0.32     $ 0.31  
                                 
Dividends declared per common share   $ 0.015     $ 0.015     $ 0.03     $ 0.03  
                                 

  


 
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
 
                    Dollar     Percentage  
                    Change     Change  
    Three Months     Three Months     Three Months  
    Ended     Ended     Ended  
    June 30,     June 30,     June 30,  
(Dollars in thousands)   2017     2016     2017 vs. 2016     2017 vs. 2016  
Operating revenue:                                
Truckload revenue, net of fuel surcharge revenue   $ 84,480     $ 85,103     $ (623 )     (0.7 )%
Truckload fuel surcharge revenue     10,434       8,933       1,501       16.8  
Total Truckload revenue     94,914       94,036       878       0.9  
                                 
Dedicated revenue, net of fuel surcharge revenue     38,601       36,654       1,947       5.3  
Dedicated fuel surcharge revenue     2,901       2,621       280       10.7  
Total Dedicated revenue     41,502       39,275       2,227       5.7  
                                 
Intermodal revenue, net of fuel surcharge revenue     16,877       16,118       759       4.7  
Intermodal fuel surcharge revenue     2,238       1,664       574       34.5  
Total Intermodal revenue     19,115       17,782       1,333       7.5  
                                 
Brokerage revenue     15,980       14,997       983       6.6  
                                 
Total operating revenue   $ 171,511     $ 166,090     $ 5,421       3.3 %
                                 
Operating income:                                
Truckload   $ 7,511     $ 6,951     $ 560       8.1 %
Dedicated     5,074       5,134       (60     (1.2 )
Intermodal     2,040       1,822       218       12.0  
Brokerage     944       869       75       8.6  
Total operating income   $ 15,569     $ 14,776     $ 793       5.4 %
                                 
Operating ratio:                                
Truckload     92.1 %     92.6 %                
Dedicated     87.8       86.9                  
Intermodal     89.3       89.8                  
Brokerage     94.1       94.2                  
                                 
Consolidated operating ratio     90.9 %     91.1 %                
                                 

  


 
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
 
                    Dollar     Percentage  
                    Change     Change  
    Six Months     Six Months     Six Months  
    Ended     Ended     Ended  
    June 30,     June 30,     June 30,  
(Dollars in thousands)   2017     2016     2017 vs. 2016     2017 vs. 2016  
Operating revenue:                                
Truckload revenue, net of fuel surcharge revenue   $ 169,291     $ 168,045     $ 1,246       0.7 %
Truckload fuel surcharge revenue     21,281       16,045       5,236       32.6  
Total Truckload revenue     190,572       184,090       6,482       3.5  
                                 
Dedicated revenue, net of fuel surcharge revenue     75,500       72,164       3,336       4.6  
Dedicated fuel surcharge revenue     6,279       4,208       2,071       49.2  
Total Dedicated revenue     81,779       76,372       5,407       7.1  
                                 
Intermodal revenue, net of fuel surcharge revenue     33,688       31,972       1,716       5.4  
Intermodal fuel surcharge revenue     4,613       3,011       1,602       53.2  
Total Intermodal revenue     38,301       34,983       3,318       9.5  
                                 
Brokerage revenue     34,018       32,574       1,444       4.4  
                                 
Total operating revenue   $ 344,670     $ 328,019     $ 16,651       5.1 %
                                 
Operating income:                                
Truckload   $ 13,485     $ 13,891     $ (406 )     (2.9 )%
Dedicated     9,561       9,458       103       1.1  
Intermodal     4,189       3,751       438       11.7  
Brokerage     2,272       1,801       471       26.2  
Total operating income   $ 29,507     $ 28,901     $ 606       2.1 %
                                 
Operating ratio:                                
Truckload     92.9 %     92.5 %                
Dedicated     88.3       87.6                  
Intermodal     89.1       89.3                  
Brokerage     93.3       94.5                  
                                 
Consolidated operating ratio     91.4 %     91.2 %                
                                 

   


 
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
 
    Three Months     Six Months  
    Ended June 30,     Ended June 30,  
    2017     2016     2017     2016  
Truckload Segment:                                
Revenue (in thousands)   $ 94,914     $ 94,036     $ 190,572     $ 184,090  
Average revenue, net of fuel surcharges, per tractor per week(1)   $ 3,467     $ 3,444     $ 3,441     $ 3,405  
Average tractors(1)     1,875       1,901       1,903       1,898  
Average miles per trip     589       625       602       634  
Non-revenue miles percentage(2)     9.0 %     9.1 %     9.3 %     9.3 %
Total miles (in thousands)     45,736       46,290       91,796       90,761  
                                 
Dedicated Segment:                                
Revenue (in thousands)   $ 41,502     $ 39,275     $ 81,779     $ 76,372  
Average revenue, net of fuel surcharges, per tractor per week(1)   $ 3,488     $ 3,431     $ 3,475     $ 3,403  
Average tractors(1)     851       822       840       816  
Average miles per trip     292       302       296       308  
Non-revenue miles percentage(2)     0.7 %     0.8 %     0.7 %     0.8 %
Total miles (in thousands)     19,357       18,951       37,936       37,472  
                                 
Intermodal Segment:                                
Revenue (in thousands)   $ 19,115     $ 17,782     $ 38,301     $ 34,983  
Loads     9,793       8,755       19,377       17,451  
Average tractors     81       77       79       77  
                                 
Brokerage Segment:                                
Revenue (in thousands)   $ 15,980     $ 14,997     $ 34,018     $ 32,574  
Loads     11,578       11,428       24,932       24,379  
                                 
At June 30, 2017 and June 30, 2016:                                
Total tractors(1)     2,711       2,785                  
Average age of company tractors (in years)     1.5       1.6                  
Total trailers     4,925       4,856                  
Average age of company trailers (in years)     2.8       2.7                  
Ratio of trailers to tractors(1)     1.8       1.7                  


    Three Months     Six Months  
    Ended June 30,     Ended June 30,  
(In thousands)   2017     2016     2017     2016  
                                 
Net cash provided by operating activities                                                 $ 27,546     $ 25,086     $ 65,220     $ 80,151  
Net cash (used for) investing activities     (26,003 )     (30,125 )     (46,965 )     (39,678 )
Net cash provided by (used for) financing activities     (550     4,091       (8,685 )     (40,699 )
                                 
Weighted average shares outstanding:                                
Basic     54,493       54,069       54,459       54,079  
Diluted     54,802       54,389       54,772       54,391  

              

(1 )   Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 63 and 77 tractors as of June 30, 2017 and 2016, respectively. 
   
(2)   Represents the percentage of miles for which the company is not compensated.

 

CONTACTS: Tim Kohl, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

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