Marten Transport Ltd (MRTN) Reports Q3 2023 Earnings: Net Income Drops to $13.6 Million
Marten Transport Ltd (NASDAQ:MRTN) reports Q3 2023 net income of $13.6 million, down from $25.6 million in Q3 2022.
Operating revenue for Q3 2023 was $279.5 million, a decrease from $324.4 million in the same period last year.
Operating income for the third quarter was $17.2 million, compared to $33.8 million in Q3 2022.
Operating expenses as a percentage of operating revenue increased to 93.8% for Q3 2023 from 89.6% for Q3 2022.
On October 18, 2023, Marten Transport Ltd (NASDAQ:MRTN) released its earnings report for the third quarter ended September 30, 2023. The company reported a net income of $13.6 million, or 17 cents per diluted share, a significant decrease from $25.6 million, or 32 cents per diluted share, for the same period in 2022. For the nine-month period ended September 30, 2023, net income was $58.0 million, compared with $84.8 million for the 2022 nine-month period.
Financial Performance
Operating revenue for the third quarter was $279.5 million, down from $324.4 million for the same period in 2022. Excluding fuel surcharges, operating revenue was $239.1 million for the 2023 quarter compared with $269.3 million for the 2022 quarter. Fuel surcharge revenue decreased to $40.5 million for the 2023 quarter from $55.1 million for the 2022 quarter.
Operating income for the third quarter was $17.2 million, a significant decrease from $33.8 million for the same period in 2022. Operating expenses as a percentage of operating revenue increased to 93.8% for the 2023 quarter from 89.6% for the 2022 quarter.
Company's Challenges and Outlook
Executive Chairman Randolph L. Marten commented on the company's performance, stating,
Our earnings this quarter were significantly pressured by the industry-wide weak demand, cumulative impact of reduced freight rates with the resulting freight network disruption, and inflationary operating costs within the current freight market recession. Additionally, the record heat and rising fuel prices each month of the third quarter led to an increase in our mile-adjusted net fuel expense of $3.9 million, or 4 cents per diluted share, from this years second quarter to third quarter."
Despite these challenges, Marten Transport Ltd (NASDAQ:MRTN) remains focused on minimizing the current freight markets impact on its operations and positioning its premium service solutions for profitable growth opportunities.
Financial Tables Summary
The company's consolidated condensed balance sheets show total assets of $997.2 million as of September 30, 2023, up from $965.7 million as of December 31, 2022. The consolidated condensed statements of operations reveal a net income of $13.6 million for Q3 2023, down from $25.6 million for Q3 2022.
The segment information shows a decrease in operating revenue across all segments, with the Truckload segment reporting a revenue of $114.2 million, down from $129.4 million in Q3 2022. The Dedicated segment reported a revenue of $101.8 million, down from $110.2 million in Q3 2022. The Intermodal segment reported a revenue of $22 million, down from $31.9 million in Q3 2022. The Brokerage segment reported a revenue of $41.5 million, down from $52.9 million in Q3 2022.
This article first appeared on GuruFocus.
