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Marten Transport Announces First Quarter Results

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MONDOVI, Wis., April 16, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 1.3% improvement in net income to $13.7 million, or 25 cents per diluted share, for the first quarter ended March 31, 2020, from $13.5 million, or 25 cents per diluted share, for the first quarter of 2019.

Operating Results Comparison



Net income used to calculate the percentage increase from 2017 to
2018 below excludes a $56.5 million deferred income tax benefit in
the fourth quarter of 2017.

Percentage

Percentage

Percentage

Increase

Increase

Increase

Three Months

Year

Year

Ended

Ended

Ended

March 31,

December 31,

December 31,

2020 vs. 2019

2019 vs. 2018

2018 vs. 2017

Operating revenue

9.9

%

7.1

%

12.8

%

Operating income

1.7

%

8.7

%

23.7

%

Net income

1.3

%

11.0

%

62.7

%

Operating revenue improved 9.9% to a record $218.6 million for the first quarter of 2020 from $199.0 million for the first quarter of 2019. Excluding fuel surcharges, operating revenue improved 10.2% to $193.4 million for the 2020 quarter from $175.5 million for the 2019 quarter. Fuel surcharge revenue increased to $25.2 million for the 2020 quarter from $23.6 million for the 2019 quarter.

Operating income improved 1.7% to $18.0 million for the first quarter of 2020 from $17.7 million for the first quarter of 2019.

Operating expenses as a percentage of operating revenue were 91.8% for the first quarter of 2020 and 91.1% for the first quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 90.7% for the 2020 quarter and 89.9% for the 2019 quarter.

Chairman and Chief Executive Officer Randolph L. Marten said, “I genuinely appreciate our talented drivers, maintenance personnel and our employees across all functions and regions whose bright, hard work consistently drives our strong operating results. Our disciplined execution of our unique multifaceted business model across our diverse and growing customer base, including our ability to quickly make data-driven decisions and adjustments utilizing our in-house operating technology, has and will continue to be one of our key strengths as we proactively navigate through these most volatile, disruptive times. We added 101 Dedicated and 73 Truckload tractors during the first quarter on top of our growth of 329 Dedicated and 101 Truckload tractors throughout 2019, all while further tightening our stringent hiring standards for experienced drivers. We embrace our responsibility to keep our valued employees safe and healthy as they each contribute to our transporting and distributing the food, beverages and other consumer goods essential to millions of people in North America.”

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across the Company’s five distinct business platforms - Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico. Marten is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company 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 a 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, 2019. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

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

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS

March 31,

December 31,

(In thousands, except share information)

2020

2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

36,136

$

31,461

Receivables:

Trade, net

94,276

90,712

Other

10,077

11,055

Prepaid expenses and other

19,058

20,938

Total current assets

159,547

154,166

Property and equipment:

Revenue equipment, buildings and land, office equipment and other

937,389

904,237

Accumulated depreciation

(274,047

)

(263,843

)

Net property and equipment

663,342

640,394

Other noncurrent assets

2,029

2,026

Total assets

$

824,918

$

796,586

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

34,821

$

22,917

Insurance and claims accruals

34,424

31,729

Accrued and other current liabilities

21,881

21,680

Total current liabilities

91,126

76,326

Deferred income taxes

123,790

122,022

Noncurrent operating lease liabilities

622

649

Total liabilities

215,538

198,997

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; 192,000,000 shares
authorized; 54,840,652 shares at March 31, 2020, and 54,703,466
shares at December 31, 2019, issued and outstanding

548

547

Additional paid-in capital

79,730

79,465

Retained earnings

529,102

517,577

Total stockholders’ equity

609,380

597,589

Total liabilities and stockholders’ equity

$

824,918

$

796,586

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months

Ended March 31,

(In thousands, except per share information)

2020

2019

Operating revenue

$

218,646

$

199,023

Operating expenses (income):

Salaries, wages and benefits

72,761

63,524

Purchased transportation

40,445

38,249

Fuel and fuel taxes

28,297

27,677

Supplies and maintenance

12,228

11,121

Depreciation

25,427

22,543

Operating taxes and licenses

2,639

2,333

Insurance and claims

12,284

9,875

Communications and utilities

1,985

1,950

Gain on disposition of revenue equipment

(1,555

)

(1,548

)

Other

6,103

5,566

Total operating expenses

200,614

181,290

Operating income

18,032

17,733

Other

(97

)

(278

)

Income before income taxes

18,129

18,011

Income taxes expense

4,411

4,465

Net income

$

13,718

$

13,546

Basic earnings per common share

$

0.25

$

0.25

Diluted earnings per common share

$

0.25

$

0.25

Dividends declared per common share

$

0.04

$

0.03

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

Dollar

Percentage

Change

Change

Three Months

Three Months

Three Months

Ended

Ended

Ended

March 31,

March 31,

March 31,

(Dollars in thousands)

2020

2019

2020 vs. 2019

2020 vs. 2019

Operating revenue:

Truckload revenue, net of fuel surcharge revenue

$

83,857

$

80,167

$

3,690

4.6

%

Truckload fuel surcharge revenue

11,275

11,555

(280

)

(2.4

)

Total Truckload revenue

95,132

91,722

3,410

3.7

Dedicated revenue, net of fuel surcharge revenue

64,159

48,924

15,235

31.1

Dedicated fuel surcharge revenue

10,878

8,801

2,077

23.6

Total Dedicated revenue

75,037

57,725

17,312

30.0

Intermodal revenue, net of fuel surcharge revenue

20,594

19,755

839

4.2

Intermodal fuel surcharge revenue

3,086

3,216

(130

)

(4.0

)

Total Intermodal revenue

23,680

22,971

709

3.1

Brokerage revenue

24,797

26,605

(1,808

)

(6.8

)

Total operating revenue

$

218,646

$

199,023

$

19,623

9.9

%

Operating income:

Truckload

$

6,785

$

7,555

$

(770

)

(10.2

)%

Dedicated

8,533

5,515

3,018

54.7

Intermodal

1,306

2,394

(1,088

)

(45.4

)

Brokerage

1,408

2,269

(861

)

(37.9

)

Total operating income

$

18,032

$

17,733

$

299

1.7

%

Operating ratio:

Truckload

92.9

%

91.8

%

Dedicated

88.6

90.4

Intermodal

94.5

89.6

Brokerage

94.3

91.5

Consolidated operating ratio

91.8

%

91.1

%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

Three Months

Ended March 31,

2020

2019

Truckload Segment:

Revenue (in thousands)

$

95,132

$

91,722

Average revenue, net of fuel surcharges, per tractor per week(1)

$

3,814

$

3,859

Average tractors(1)

1,691

1,616

Average miles per trip

559

562

Non-revenue miles percentage(2)

11.2

%

11.3

%

Total miles (in thousands)

41,039

37,236

Dedicated Segment:

Revenue (in thousands)

$

75,037

$

57,725

Average revenue, net of fuel surcharges, per tractor per week(1)

$

3,304

$

3,382

Average tractors(1)

1,494

1,125

Average miles per trip

306

322

Non-revenue miles percentage(2)

0.7

%

0.6

%

Total miles (in thousands)

31,536

23,643

Intermodal Segment:

Revenue (in thousands)

$

23,680

$

22,971

Loads

9,737

9,251

Average tractors

100

87

Brokerage Segment:

Revenue (in thousands)

$

24,797

$

26,605

Loads

16,108

15,266

At March 31, 2020 and March 31, 2019:

Total tractors(1)

3,377

2,867

Average age of company tractors (in years)

1.8

1.8

Total trailers

5,420

5,313

Average age of company trailers (in years)

2.6

2.5

Ratio of trailers to tractors(1)

1.6

1.9


Three Months

Ended March 31,

(In thousands)

2020

2019

Net cash provided by operating activities

$

43,480

$

37,628

Net cash (used for) investing activities

(36,632

)

(6,736

)

Net cash (used for) financing activities

(2,173

)

(2,129

)

Weighted average shares outstanding:

Basic

54,809

54,553

Diluted

55,243

55,046

(1

)

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 106 and 46 tractors as of March 31, 2020 and 2019, respectively.

(2

)

Represents the percentage of miles for which the company is not compensated.