Marten Transport Announces Fourth Quarter and Year End Results Net Income of 27 Cents Per Diluted Share
- Press Release
- Source: Marten Transport, Ltd.
- On 4:05 pm EST, Tuesday January 27, 2009
MONDOVI, Wis., Jan. 27, 2009 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NasdaqGS:MRTN - News) announced today its financial and operating results for the quarter and year ended Dec. 31, 2008.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| MRTN | 17.51 | -0.07 |
For the fourth quarter, net income increased 96.4% to $5.8 million, or 27 cents per diluted share, compared with $3.0 million, or 14 cents per diluted share, for the same quarter of 2007. For 2008, net income increased 20.7% to $18.1 million, or 82 cents per diluted share, compared with $15.0 million, or 68 cents per diluted share, for 2007.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 3.1% to $140.4 million in the fourth quarter of 2008 from $144.8 million in the 2007 quarter. For 2008, operating revenue increased 8.4% to $607.1 million from $560.0 million in 2007. Truckload revenue decreased 5.9% to $115.9 million in the fourth quarter of 2008 from $123.2 million in the 2007 quarter. For 2008, truckload revenue increased 3.6% to $508.2 million from $490.5 million in 2007. Logistics revenue, which consists of revenue from brokerage and intermodal operations, increased 12.9% to $24.4 million in the fourth quarter of 2008 from $21.6 million in the 2007 quarter. For 2008, logistics revenue increased 42.4% to $98.9 million from $69.5 million in 2007.
Operating revenue included fuel surcharges of $23.2 million and $132.6 million for the fourth quarter and yearly periods of 2008, compared with $26.0 million and $87.1 million for the fourth quarter and yearly periods of 2007. Operating revenue, net of fuel surcharges, decreased 1.4% to $117.1 million in the 2008 quarter from $118.8 million in the 2007 quarter and increased by 0.3% to $474.5 million for 2008 from $472.9 million in 2007.
Chairman and Chief Executive Officer Randolph L. Marten said, ``Our ability to produce favorable results within an unfavorable freight environment was clearly demonstrated in the fourth quarter. We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls. In the fourth quarter of 2008, our total operating expenses declined 6.5% quarter-over-quarter, while operating revenue declined by only 3.1%. Our fuel expense decreased in this year's fourth quarter due to fuel prices declining significantly throughout the quarter combined with fuel cost control measures we implemented in 2008.
``We continued to increase the density in our regional markets, allowing for a shorter length of haul and overall reduced expenses. While our rates per mile in our regional operations tend to be higher, the overall transportation cost to our customers is lower as a result of their trending toward regional distribution.
``Our logistics business continued its solid growth in the fourth quarter of 2008 as well. Logistics revenue, net of intermodal fuel surcharges, grew to $22.6 million in the fourth quarter, an increase of 10.4% over the 2007 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 36.3% to $90.2 million, compared to $66.2 million in 2007. Logistics revenue consists of revenue from our internal brokerage and intermodal operations and revenue associated with our 45% interest in MW Logistics, LLC, a third-party provider of logistics services.
``In the fourth quarter we also saw an exodus of capacity as independent contractors left the market and some of the smaller carriers failed, which impacted the mix of company and independent contractor miles. The number of miles driven by independent contractors decreased 44.8% while the number of company miles stayed basically flat. Average truckload revenue, net of fuel surcharges, per total mile increased by 3.6% to $1.543 over the 2007 quarter. In furtherance of our focus on the most profitable freight, we continued to reduce our length of haul. Average miles per trip decreased by 7.5% quarter-over-quarter, which contributed to a 4.6% decrease in average miles per tractor. Our average truckload revenue, net of fuel surcharges, per tractor per week decreased by 1.2% due to the decrease in utilization, partially offset by the increase in rates.
``Purchased transportation expense decreased in the 2008 quarter compared with the 2007 quarter. The decrease in purchased transportation expense was primarily the result of fewer miles driven by independent contractors, partially offset by continuing growth in our logistics business.
``The improvement in fuel and fuel taxes expense was primarily attributable to a decrease in the average cost of fuel compared with the fourth quarter of 2007 and to fuel cost control measures we implemented throughout 2008. Over the past year, we have worked diligently to control fuel costs and usage by improving our volume purchasing arrangements and optimizing our drivers' fuel purchases with national fuel centers, focusing on shorter lengths of haul, installing and tightly managing the use of auxiliary power units in 96% of our tractors to minimize engine idling, and improving fuel usage in our trailers' refrigeration units.
``Insurance and claims expense increased approximately $1.9 million from the fourth quarter of 2007, primarily due to an increase in the cost of self-insured auto liability and workers' compensation accident claims.
``Our operating ratio (operating expenses as a percentage of operating revenue) improved to 92.7% for the fourth quarter of 2008 from 96.1% for the fourth quarter of 2007. Our operating ratio was 94.6% for 2008 compared with 95.0% for 2007.''
Mr. Marten also offered the following comments: ``Marten's already strong balance sheet grew even stronger throughout 2008. We continue to be well-positioned for an economic recovery. Our disciplined approach to controlling our operating expenses has allowed us to increase free cash flow to pay down debt. Over the last year we've paid down $41.8 million in debt in order to ensure that we retain the liquidity needed to weather the current economic downturn. At Dec. 31, 2008, our balance sheet reflected approximately $255.7 million in stockholders' equity and $2.9 million in debt, for a debt-to-capitalization ratio of approximately 1.1%, with the lowest level of debt since before our initial public offering in 1986.
``We anticipate net capital expenditures of $40 million to $60 million in 2009, which we will adjust throughout the year as we size our fleet to existing customer demand.
``Lastly, I gratefully acknowledge the people of Marten Transport who remain one of Marten's key strategic strengths and who executed our multi-faceted business model very well within the difficult operating conditions of 2008.''
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting food and other consumer packaged goods that require a temperature-sensitive or insulated environment. Marten offers nationwide service, 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. Such statements may be identified by their use of terms or phrases such as ``expects,'' ``estimates,'' ``projects,'' ``believes,'' ``anticipates,'' ``plans,'' ``intends,'' and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of the Company's management and are inherently subject to significant risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this release, forward-looking statements involve, among other things, our expectations concerning our position in the industry and net capital expenditures. The following factors, among others, could cause actual results to differ materially from those in the forward-looking statements: the risk that our perception of the cyclicality of the markets we primarily serve is incorrect or there are recessionary economic cycles and downturns in customers' business cycles; increases in the prices paid for new revenue equipment and changes in the resale value of our used equipment causing our gain on disposition to fluctuate; excess tractor or trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; our ability to maintain profitability in or continue to grow our logistics business; our ability to maintain density in the regional markets; surplus inventories; decreased availability of financing from our traditional sources; decreased cash flows; strikes, work slow downs, or work stoppages at the company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices as well as fluctuations in surcharge collection, including, but not limited to, changes in customer fuel surcharge policies and increases in fuel surcharge bases by customers; the volume and terms of diesel purchase commitments; interest rates, fuel taxes, tolls, and license and registration fees; increased indebtedness, and associated interest expense, arising from upgrading our fleet of equipment; shortages in supply of new equipment from manufacturers; changes in management's estimates of the need for new tractors and trailers; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; elevated experience in the frequency and severity of claims relating to accident, cargo, workers' compensation, health, and other claims; changes in management's estimates of liability based upon such experience and development factors; increases in insurance premiums and deductible amounts; seasonal factors such as harsh weather conditions that increase operating costs; decreases in productivity that may offset or eliminate potential savings from the installation of auxiliary power units, unexpected maintenance or other costs associated with such units, or our inability to continue to maintain idle time at the recent level; competition from trucking, rail, and intermodal competitors; and regulatory requirements that increase costs or decrease efficiency, including new emissions standards for engines and revised hours-of-service requirements for drivers, or changes in tax treatment with respect to our per diem program. Readers should review and consider these factors along with the various disclosures by the Company in its press releases, stockholder reports and filings with the Securities and Exchange Commission. The Company does not assume, and specifically disclaims, any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31, December 31,
(In thousands, except share information) 2008 2007
--------------------------
(Unaudited)
ASSETS
Current assets:
Cash $ 2,395 $ 3,618
Marketable securities 2,604 350
Receivables:
Trade, net 50,143 51,539
Other 7,385 6,175
Prepaid expenses and other 13,705 13,823
Deferred income taxes 6,140 4,653
-------------------------
Total current assets 82,372 80,158
-------------------------
Property and equipment:
Revenue equipment, buildings and
land, office equipment and other 451,172 447,430
Accumulated depreciation (136,871) (122,246)
-------------------------
Net property and equipment 314,301 325,184
Other assets 770 2,048
-------------------------
TOTAL ASSETS $ 397,443 $ 407,390
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash
balances $ 1,807 $ --
Accounts payable and accrued
liabilities 32,894 32,384
Insurance and claims accruals 21,386 17,431
Current maturities of long-term debt 1,428 5,000
-------------------------
Total current liabilities 57,515 54,815
Long-term debt, less current
maturities 1,429 39,643
Deferred income taxes 81,048 74,719
-------------------------
Total liabilities 139,992 169,177
-------------------------
Minority interest 1,715 1,283
-------------------------
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; 48,000,000 shares authorized;
21,830,071 shares at December 31,
2008, and 21,811,837 shares at
December 31, 2007, issued and
outstanding 218 218
Additional paid-in capital 75,305 74,570
Retained earnings 180,213 162,142
-------------------------
Total stockholders' equity 255,736 236,930
-------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 397,443 $ 407,390
=========================
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Year
Ended December 31, Ended December 31,
(In thousands, except ------------------------------------------
per share information) 2008 2007 2008 2007
------------------------------------------
(Unaudited)(Unaudited)(Unaudited)
OPERATING REVENUE $ 140,354 $ 144,811 $ 607,099 $ 560,017
------------------------------------------
OPERATING EXPENSES
(INCOME):
Salaries, wages and
benefits 38,294 37,988 152,616 153,774
Purchased
transportation 24,761 29,386 113,175 103,776
Fuel and fuel taxes 30,963 39,497 175,892 149,021
Supplies and
maintenance 10,080 10,257 38,378 38,621
Depreciation 13,001 11,692 49,705 47,009
Operating taxes and
licenses 1,667 1,662 6,729 6,823
Insurance and claims 7,421 5,561 25,409 22,353
Communications and
utilities 1,033 1,021 3,740 3,869
Gain on disposition of
revenue equipment (225) (503) (2,664) (3,386)
Other 3,092 2,576 11,414 10,356
------------------------------------------
Total operating
expenses 130,087 139,137 574,394 532,216
------------------------------------------
OPERATING INCOME 10,267 5,674 32,705 27,801
------------------------------------------
OTHER EXPENSES (INCOME):
Interest expense 110 759 1,142 3,823
Interest income and
other (32) (162) (184) (693)
Minority interest 198 272 1,120 802
------------------------------------------
276 869 2,078 3,932
------------------------------------------
INCOME BEFORE INCOME
TAXES 9,991 4,805 30,627 23,869
PROVISION FOR INCOME
TAXES 4,169 1,840 12,556 8,901
------------------------------------------
NET INCOME $ 5,822 $ 2,965 $ 18,071 $ 14,968
==========================================
BASIC EARNINGS PER
COMMON SHARE $ 0.27 $ 0.14 $ 0.83 $ 0.69
==========================================
DILUTED EARNINGS PER
COMMON SHARE $ 0.27 $ 0.14 $ 0.82 $ 0.68
==========================================
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar Percentage
Change Change
Three Months Three Months Three Months
Ended Ended Ended
December 31, Dec. 31, Dec. 31,
-------------------- 2008 vs. 2008 vs.
(Dollars in thousands) 2008 2007 2007 2007
--------------------------------------------
Operating revenue:
Truckload revenue, net
of fuel surcharge
revenue $ 94,527 $ 98,292 $ (3,765) (3.8)%
Truckload fuel
surcharge revenue 21,414 24,893 (3,479) (14.0)
------------------------------------------
Total Truckload
revenue 115,941 123,185 (7,244) (5.9)
------------------------------------------
Logistics revenue, net
of intermodal fuel
surcharge revenue 22,611 20,483 2,128 10.4
Intermodal fuel
surcharge revenue 1,802 1,143 659 57.7
------------------------------------------
Total Logistics
revenue 24,413 21,626 2,787 12.9
------------------------------------------
Total operating
revenue $ 140,354 $ 144,811 $ (4,457) (3.1)%
==========================================
Operating income:
Truckload $ 9,075 $ 4,169 $ 4,906 117.7%
Logistics 1,192 1,505 (313) (20.8)
------------------------------------------
Total operating
income $ 10,267 $ 5,674 $ 4,593 80.9%
==========================================
Operating ratio:
Truckload 92.2% 96.6% 4.6%
Logistics 95.1 93.0 (2.3)
-------------------- ---------
Consolidated
operating ratio 92.7% 96.1% 3.5%
==================== =========
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
Dollar Percentage
Change Change
Year Year Year
Ended Ended Ended
December 31, Dec. 31, Dec. 31,
-------------------- 2008 vs. 2008 vs.
(Dollars in thousands) 2008 2007 2007 2007
------------------------------------------
(Unaudited)
Operating revenue:
Truckload revenue, net
of fuel surcharge
revenue $ 384,264 $ 406,754 $ (22,490) (5.5)%
Truckload fuel
surcharge revenue 123,922 83,786 40,136 47.9
------------------------------------------
Total Truckload
revenue 508,186 490,540 17,646 3.6
------------------------------------------
Logistics revenue, net
of intermodal fuel
surcharge revenue 90,194 66,163 24,031 36.3
Intermodal fuel
surcharge revenue 8,719 3,314 5,405 163.1
------------------------------------------
Total Logistics
revenue 98,913 69,477 29,436 42.4
------------------------------------------
Total operating
revenue $ 607,099 $ 560,017 $ 47,082 8.4%
==========================================
Operating income:
Truckload $ 26,055 $ 22,689 $ 3,366 14.8%
Logistics 6,650 5,112 1,538 30.1
------------------------------------------
Total operating
income $ 32,705 $ 27,801 $ 4,904 17.6%
==========================================
Operating ratio:
Truckload 94.9% 95.4% 0.5%
Logistics 93.3 92.6 (0.8)
-------------------- ----------
Consolidated
operating ratio 94.6% 95.0% 0.4%
==================== ==========
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Year
Ended December 31, Ended December 31,
------------------------------------------
2008 2007 2008 2007
------------------------------------------
Truckload Segment:
Average truckload
revenue, net of fuel
surcharges, per total
mile $ 1.543 $ 1.490 $ 1.512 $ 1.480
Average miles per
tractor(1) 26,049 27,303 108,026 109,269
Average truckload
revenue, net of fuel
surcharges, per
tractor per week(1) $ 3,058 $ 3,095 $ 3,124 $ 3,101
Average tractors (1) 2,352 2,416 2,352 2,516
Average miles per trip 824 891 853 911
Non-revenue miles
percentage(2) 8.6% 7.7% 8.1% 7.6%
Total miles - company-
employed drivers (in
thousands) 55,249 55,059 222,043 228,776
Total miles -
independent
contractors (in
thousands) 6,023 10,908 32,081 46,096
Logistics Segment:
Brokerage:
Revenue (in
thousands) $ 14,702 $ 15,328 $ 62,315 $ 48,640
Loads 7,334 7,588 30,410 25,246
Intermodal:
Revenue (in
thousands) $ 9,711 $ 6,298 $ 36,598 $ 20,837
Loads 3,350 2,031 11,513 6,793
Average tractors 62 39 53 31
At December 31, 2008, and
December 31, 2007:
Total tractors(1) 2,376 2,416
Average age of company
tractors (in years) 2.2 2.0
Total trailers 4,218 3,989
Average age of company
trailers (in years) 3.1 2.7
Ratio of trailers to
tractors(1) 1.8 1.7
Ratio of tractors to
non-driver personnel(1) 4.5 5.2
Three Months Year
Ended December 31, Ended December 31,
------------------------------------------
(In thousands) 2008 2007 2008 2007
------------------------------------------
Net cash provided by
operating activities $ 26,625 $ 17,406 $ 76,356 $61,807
Net cash used for
investing activities 22,694 4,591 37,602 46,826
Weighted average shares
outstanding:
Basic 21,830 21,812 21,787 21,795
Diluted 21,954 21,951 21,931 21,961
----------------
(1) Includes tractors driven by both company-employed drivers and
independent contractors. Independent contractors provided 188
and 339 tractors as of December 31, 2008, and 2007,
respectively.
(2) Represents the percentage of miles for which the company is not
compensated.
Contact:
Marten Transport, Ltd.
Randy Marten, Chairman and Chief Executive Officer
Jim Hinnendael, Chief Financial Officer
715-926-4216
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