Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 20, 2017 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for each of the quarters ended March 31, 2017 and March 31, 2016.

Operating revenue improved 6.9% to $173.2 million for the first quarter of 2017 from $161.9 million for the first quarter of 2016.  Operating revenue, net of fuel surcharges, improved 3.1% to $156.6 million for the 2017 quarter from $151.9 million for the 2016 quarter.  Fuel surcharge revenue increased to $16.6 million for the first quarter of 2017 from $10.0 million for the 2016 quarter.

Operating expenses as a percentage of operating revenue was 92.0% for the first quarter of 2017 and 91.3% for the first quarter of 2016.  Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 91.1% for the 2017 quarter compared with 90.7% for the 2016 quarter.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our continuing earnings strength and by our organic growth in operating revenue across all four of our business segments, despite the continuing challenge of an unfavorable freight environment.  This was also the ninth quarter in a row with year-over-year improvement in operating income for each of our dedicated, intermodal and brokerage segments.  These top- and bottom-line results highlight the continued smart and disciplined execution of our unique multifaceted business model by our dedicated and experienced workforce.  We are confident in our ability to capitalize profitably on further growth opportunities across all of our business units.”

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 925 dry trailers operating as of March 31, 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)  
           
    March 31,   December 31,    
(In thousands, except share information)     2017       2016    
                   
ASSETS                  
Current assets:          
Cash and cash equivalents   $ 9,065     $ 488    
Receivables:                  
Trade, net     69,808       69,199    
Other     3,714       4,436    
Prepaid expenses and other     17,102       19,307    
Total current assets     99,689       93,430    
                   
Property and equipment:                  
Revenue equipment, buildings and land,                  
office equipment and other     768,856       759,553    
Accumulated depreciation     (209,226 )     (201,728 )  
Net property and equipment     559,630       557,825    
Other assets     1,966       2,493    
                   
Total assets   $ 661,285     $ 653,748    
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
Current liabilities:                  
Accounts payable and accrued liabilities   $ 43,981     $ 41,230    
Insurance and claims accruals     20,582       19,440    
                   
Total current liabilities     64,563       60,670    
Long-term debt           7,886    
Deferred income taxes     151,270       147,854    
Total liabilities     215,833       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; 32,684,955 shares          
at March 31, 2017, and 32,634,915 shares at          
December 31, 2016, issued and outstanding     327       326    
Additional paid-in capital     74,891       74,175    
Retained earnings     370,234       362,837    
Total stockholders’ equity     445,452       437,338    
Total liabilities and stockholders’ equity   $ 661,285     $ 653,748    
                   

 

MARTEN TRANSPORT, LTD.
   
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
   
(Unaudited)
   
                       
            Three Months    
            Ended March 31,    
(In thousands, except per share information)             2017       2016    
                           
Operating revenue           $ 173,159     $ 161,929    
                           
Operating expenses (income):                          
Salaries, wages and benefits             56,400       54,830    
Purchased transportation             29,362       28,035    
Fuel and fuel taxes             25,956       19,630    
Supplies and maintenance             10,990       10,499    
Depreciation             21,383       20,047    
Operating taxes and licenses             2,247       2,185    
Insurance and claims             8,914       7,355    
Communications and utilities             1,581       1,620    
Gain on disposition of revenue equipment             (1,103 )     (1,434 )  
Other             3,491       5,037    
                           
Total operating expenses             159,221       147,804    
                       
Operating income             13,938       14,125    
                       
Other             141       215    
                       
Income before income taxes             13,797       13,910    
                       
Provision for income taxes             5,583       5,717    
                       
Net income           $ 8,214     $ 8,193    
                           
Basic earnings per common share           $ 0.25     $ 0.25    
                           
Diluted earnings per common share           $ 0.25     $ 0.25    
                           
Dividends declared per common share           $ 0.025     $ 0.025    
                           

 

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)     2017       2016     2017 vs. 2016   2017 vs. 2016  
Operating revenue:                  
Truckload revenue, net of fuel                  
surcharge revenue   $ 84,811     $ 82,942     $ 1,869     2.3 %  
Truckload fuel surcharge revenue     10,847       7,112       3,735     52.5    
Total Truckload revenue     95,658       90,054       5,604     6.2    
                                 
Dedicated revenue, net of fuel                                
surcharge revenue     36,899       35,510       1,389     3.9    
Dedicated fuel surcharge revenue     3,378       1,587       1,791     112.9    
Total Dedicated revenue     40,277       37,097       3,180     8.6    
                                 
Intermodal revenue, net of fuel                                
surcharge revenue     16,811       15,854       957     6.0    
Intermodal fuel surcharge revenue     2,375       1,347       1,028     76.3    
Total Intermodal revenue     19,186       17,201       1,985     11.5    
                                 
Brokerage revenue     18,038       17,577       461     2.6    
                                 
Total operating revenue   $ 173,159     $ 161,929     $ 11,230     6.9 %  
                                 
Operating income:                                
Truckload   $ 5,974     $ 6,940     $ (966 )   (13.9 )%  
Dedicated     4,487       4,324       163     3.8    
Intermodal     2,149       1,929       220     11.4    
Brokerage     1,328       932       396     42.5    
Total operating income   $ 13,938     $ 14,125     $ (187 )   (1.3 )%  
                           
Operating ratio:                          
Truckload     93.8 %     92.3 %          
Dedicated     88.9       88.3            
Intermodal     88.8       88.8            
Brokerage     92.6       94.7            
                           
Consolidated operating ratio     92.0 %     91.3 %          
                           

 

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
 
    Three Months
    Ended March 31,
      2017     2016  
Truckload Segment:      
Revenue (in thousands)   $ 95,658   $ 90,054  
Average revenue, net of fuel surcharges,
    per tractor per week(1)
  $ 3,416   $ 3,366  
Average tractors(1)     1,931     1,896  
Average miles per trip     615     642  
Non-revenue miles percentage(2)     9.6 %   9.6 %
Total miles (in thousands)     46,060     44,471  
       
Dedicated Segment:      
Revenue (in thousands)   $ 40,277   $ 37,097  
Average revenue, net of fuel surcharges,
     per tractor per week(1)
  $ 3,462   $ 3,375  
Average tractors(1)     829     809  
Average miles per trip     299     314  
Non-revenue miles percentage(2)     0.7 %   0.8 %
Total miles (in thousands)     18,579     18,521  
               
Intermodal Segment:              
Revenue (in thousands)   $ 19,186   $ 17,201  
Loads     9,584     8,696  
Average tractors     77     76  
               
Brokerage Segment:              
Revenue (in thousands)   $ 18,038   $ 17,577  
Loads     13,354     12,951  
               
At March 31, 2017 and March 31, 2016:              
Total tractors(1)     2,827     2,784  
Average age of company tractors (in years)     1.5     1.6  
Total trailers     4,955     4,725  
Average age of company trailers (in years)     2.8     2.7  
Ratio of trailers to tractors(1)     1.8     1.7  
       
    Three Months
    Ended March 31,
(In thousands)     2017     2016  
       
Net cash provided by operating activities   $ 37,674   $ 55,065  
Net cash used for investing activities     (20,962 )   (9,553 )
Net cash used for financing activities     (8,135 )   (44,790 )
       
Weighted average shares outstanding:      
Basic     32,655     32,454  
Diluted     32,843     32,639  
       

(1) Includes tractors driven by both company-employed drivers and independent contractors.  Independent contractors provided 67 and 79 tractors as of March 31, 2017 and 2016, respectively.               

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

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

Left Menu Icon
Right Menu Icon