Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 18, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $22.5 million, or 28 cents per diluted share, for the first quarter ended March 31, 2023, compared with $27.5 million, or 33 cents per diluted share, for the first quarter of 2022.

Operating revenue improved 3.7% to $298.0 million for the first quarter of 2023 from $287.3 million for the first quarter of 2022. Excluding fuel surcharges, operating revenue improved 3.9% to $254.9 million for the 2023 quarter from $245.3 million for the 2022 quarter. Fuel surcharge revenue increased to $43.1 million for the 2023 quarter from $42.0 million for the 2022 quarter.

Operating income was $29.0 million for the first quarter of 2023 compared with $35.9 million for the first quarter of 2022 – at the time the highest amount for any quarter in Marten’s history.

Operating expenses as a percentage of operating revenue were 90.3% for the 2023 quarter and 87.5% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 quarter and 85.4% for the 2022 quarter – at the time the best ratio for any quarter since Marten became a public company in 1986.

Executive Chairman Randolph L. Marten stated, “Our bright and determined people executing our unique business model produced solid operating results despite the impact of widespread severe winter weather and a freight market which has considerably softened from the exceptionally tight conditions during the first half of last year. The market has become unsustainable for the smaller carriers who comprise a significant portion of total capacity, and who are expected to continue the recent increased industry exit rate.”

“We believe that we are well-positioned to capitalize on profitable organic growth opportunities across our five distinct but complementary business platforms with our emphasis on premium service, data-driven operating efficiencies and cost controls – and, as a result, to expand the total capacity we provide transporting and distributing the essential food, beverages and other consumer goods to support at a fair price our diverse and growing customer base.”

Current Investor Presentation

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, Mexico and Canada, 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 Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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, Chief Executive Officer, Doug Petit, 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)		2023				2022
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	96,288			$	80,600
Receivables:
Trade, net			115,430				120,702
Other			7,988				7,218
Prepaid expenses and other			24,206				27,320
Total current assets			243,912				235,840
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			1,082,361				1,074,832
Accumulated depreciation			(348,641	)			(346,665	)
Net property and equipment			733,720				728,167
Other noncurrent assets			1,641				1,672
Total assets		$	979,273			$	965,679
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	41,558			$	37,299
Insurance and claims accruals			48,967				45,747
Accrued and other current liabilities			29,077				41,264
Total current liabilities			119,602				124,310
Deferred income taxes			137,825				137,041
Noncurrent operating lease liabilities			335				409
Total liabilities			257,762				261,760
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; 81,233,741 shares at March 31, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding			812				811
Additional paid-in capital			47,151				47,188
Retained earnings			673,548				655,920
Total stockholders’ equity			721,511				703,919
Total liabilities and stockholders’ equity		$	979,273			$	965,679

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

		Three Months
		Ended March 31,
(In thousands, except per share information)		2023				2022
Operating revenue		$	298,023			$	287,281
Operating expenses (income):
Salaries, wages and benefits			98,516				89,349
Purchased transportation			54,103				57,310
Fuel and fuel taxes			46,796				44,368
Supplies and maintenance			15,987				12,313
Depreciation			29,530				26,143
Operating taxes and licenses			2,768				2,640
Insurance and claims			15,070				12,704
Communications and utilities			2,531				2,265
Gain on disposition of revenue equipment			(5,246	)			(4,540	)
Other			8,958				8,871
Total operating expenses			269,013				251,423
Operating income			29,010				35,858
Other			(844	)			(7	)
Income before income taxes			29,854				35,865
Income taxes expense			7,352				8,332
Net income		$	22,502			$	27,533
Basic earnings per common share		$	0.28			$	0.33
Diluted earnings per common share		$	0.28			$	0.33
Dividends declared per common share		$	0.06			$	0.06

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)		2023				2022				2023 vs. 2022				2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	102,320			$	95,170			$	7,150				7.5	%
Truckload fuel surcharge revenue			18,306				17,620				686				3.9
Total Truckload revenue			120,626				112,790				7,836				6.9
Dedicated revenue, net of fuel surcharge revenue			86,831				78,421				8,410				10.7
Dedicated fuel surcharge revenue			19,618				18,339				1,279				7.0
Total Dedicated revenue			106,449				96,760				9,689				10.0
Intermodal revenue, net of fuel surcharge revenue			23,401				25,605				(2,204	)			(8.6	)
Intermodal fuel surcharge revenue			5,188				6,037				(849	)			(14.1	)
Total Intermodal revenue			28,589				31,642				(3,053	)			(9.6	)
Brokerage revenue			42,359				46,089				(3,730	)			(8.1	)
Total operating revenue		$	298,023			$	287,281			$	10,742				3.7	%
Operating income:
Truckload		$	10,041			$	15,571			$	(5,530	)			(35.5	)%
Dedicated			13,684				10,645				3,039				28.5
Intermodal			787				5,036				(4,249	)			(84.4	)
Brokerage			4,498				4,606				(108	)			(2.3	)
Total operating income		$	29,010			$	35,858			$	(6,848	)			(19.1	)%
Operating ratio:
Truckload			91.7	%			86.2	%
Dedicated			87.1				89.0
Intermodal			97.2				84.1
Brokerage			89.4				90.0
Consolidated operating ratio			90.3	%			87.5	%
Operating ratio, net of fuel surcharges:
Truckload			90.2	%			83.6	%
Dedicated			84.2				86.4
Intermodal			96.6				80.3
Brokerage			89.4				90.0
Consolidated operating ratio, net of fuel surcharges			88.6	%			85.4	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

		Three Months
		Ended March 31,
		2023				2022
Truckload Segment:
Revenue (in thousands)		$	120,626			$	112,790
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,571			$	4,977
Average tractors(1)			1,741				1,487
Average miles per trip			510				520
Non-revenue miles percentage(2)			12.7	%			10.4	%
Total miles (in thousands)			38,237				35,372
Dedicated Segment:
Revenue (in thousands)		$	106,449			$	96,760
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,960			$	3,851
Average tractors(1)			1,705				1,584
Average miles per trip			333				341
Non-revenue miles percentage(2)			1.1	%			1.2	%
Total miles (in thousands)			34,076				32,753
Intermodal Segment:
Revenue (in thousands)		$	28,589			$	31,642
Loads			7,277				8,294
Average tractors			180				162
Brokerage Segment:
Revenue (in thousands)		$	42,359			$	46,089
Loads			20,688				19,684
At March 31, 2023 and March 31, 2022:
Total tractors(1)			3,571				3,274
Average age of company tractors (in years)			1.7				1.6
Total trailers			5,741				5,428
Average age of company trailers (in years)			4.1				3.5
Ratio of trailers to tractors(1)			1.6				1.7
Total refrigerated containers			802				729

		Three Months
		Ended March 31,
(In thousands)		2023				2022
Net cash provided by operating activities		$	49,232			$	39,940
Net cash (used for)/provided by investing activities			(28,280	)			409
Net cash (used for) financing activities			(5,264	)			(30,817	)
Weighted average shares outstanding:
Basic			81,210				82,938
Diluted			81,376				83,246

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 95 and 87 tractors as of March 31, 2023 and 2022, respectively.
(2	)	Represents the percentage of miles for which the company is not compensated.