Marten Transport Announces First Quarter Results

Print
| Source: Marten Transport, Ltd.

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.

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