Marten Transport Announces Second Quarter Results


MONDOVI, Wis., July 18, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $7.9 million, or 10 cents per diluted share, for the second quarter ended June 30, 2024, compared with $21.9 million, or 27 cents per diluted share, for the second quarter of 2023. For the six-month period ended June 30, 2024, net income was $17.5 million, or 22 cents per diluted share, compared with $44.4 million, or 55 cents per diluted share, for the 2023 six-month period.

Operating revenue was $246.2 million for the second quarter of 2024 compared with $285.7 million for the second quarter of 2023. Excluding fuel surcharges, operating revenue was $213.5 million for the 2024 quarter compared with $248.6 million for the 2023 quarter. Fuel surcharge revenue decreased to $32.7 million for the 2024 quarter from $37.0 million for the 2023 quarter.

Operating revenue was $495.9 million for the first six months of 2024 compared with $583.7 million for the first six months of 2023. Excluding fuel surcharges, operating revenue was $429.3 million for the 2024 period compared with $503.6 million for the 2023 period. Fuel surcharge revenue decreased to $66.6 million for the 2024 period compared with $80.1 million for the 2023 period.

Operating income was $10.0 million for the second quarter of 2024 compared with $28.2 million for the second quarter of 2023.

Operating income was $22.2 million for the first six months of 2024 compared with $57.2 million for the first six months of 2023.

Operating expenses as a percentage of operating revenue were 95.9% for the 2024 quarter and 90.1% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 95.3% for the 2024 quarter and 88.7% for the 2023 quarter.

Operating expenses as a percentage of operating revenue were 95.5% for the first six months of 2024 and 90.2% for the first six months of 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 94.8% for the 2024 period and 88.6% for the 2023 period.

Executive Chairman Randolph L. Marten stated, “Our earnings were heavily pressured by the freight market recession’s oversupply and weak demand, inflationary operating costs, and cumulative impact of freight rate reductions leading to freight network disruptions. Our unique multifaceted business model’s value is highlighted by the operating results for our dedicated, brokerage and MRTN de Mexico operations through the first half of this year.”

“We are focused on minimizing the freight market’s impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market moves toward equilibrium from its current recessionary late stages. Accordingly, we have not agreed to rate reductions since last August.”

“We are seeing increased interest by our customers to secure dedicated capacity and have recently added new multi-year dedicated programs for an additional 133 drivers starting in the third quarter.”

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, 2023. 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
      
  June 30, December 31, 
(In thousands, except share information) 2024 2023 
   (Unaudited)    
ASSETS       
Current assets:       
Cash and cash equivalents $77,199 $53,213 
Receivables:       
Trade, net  99,926  105,501 
Other  11,450  10,356 
Prepaid expenses and other  30,995  27,512 
Total current assets  219,570  196,582 
        
Property and equipment:       
Revenue equipment, buildings and land, office equipment and other  1,149,771  1,162,336 
Accumulated depreciation  (360,974)  (370,103) 
Net property and equipment  788,797  792,233 
Other noncurrent assets  1,520  1,524 
Total assets $1,009,887 $990,339 
        
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current liabilities:       
Accounts payable $47,214 $36,516 
Insurance and claims accruals  44,296  47,017 
Accrued and other current liabilities  27,466  26,709 
Total current liabilities  118,976  110,242 
Deferred income taxes  123,938  122,462 
Noncurrent operating lease liabilities  220  249 
Total liabilities  243,134  232,953 
        
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; 81,414,959 shares at June 30, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding  814  813 
Additional paid-in capital  51,385  49,789 
Retained earnings  714,554  706,784 
Total stockholders’ equity  766,753  757,386 
Total liabilities and stockholders’ equity $1,009,887 $990,339 
        


MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
       
  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
(In thousands, except per share information) 2024  2023  2024  2023 
                 
Operating revenue $246,238  $285,672  $495,910  $583,695 
                 
Operating expenses (income):                
Salaries, wages and benefits  86,519   96,332   175,281   194,848 
Purchased transportation  43,235   48,299   85,049   102,402 
Fuel and fuel taxes  38,809   42,215   78,370   89,011 
Supplies and maintenance  16,472   17,408   32,542   33,395 
Depreciation  28,206   29,427   56,733   58,957 
Operating taxes and licenses  2,539   2,756   5,114   5,524 
Insurance and claims  12,559   12,481   24,216   27,551 
Communications and utilities  2,297   2,510   4,668   5,041 
Gain on disposition of revenue equipment  (2,532)  (3,550)  (3,703)  (8,796)
Other  8,160   9,581   15,416   18,539 
                 
Total operating expenses  236,264   257,459   473,686   526,472 
                 
Operating income  9,974   28,213   22,224   57,223 
                 
Other  (1,014)  (1,077)  (1,810)  (1,921)
                 
Income before income taxes  10,988   29,290   24,034   59,144 
                 
Income taxes expense  3,099   7,416   6,499   14,768 
                 
Net income $7,889  $21,874  $17,535  $44,376 
                 
Basic earnings per common share $0.10  $0.27  $0.22  $0.55 
                 
Diluted earnings per common share $0.10  $0.27  $0.22  $0.55 
                 
Dividends declared per common share $0.06  $0.06  $0.12  $0.12 
                 

        

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
               
          Dollar  Percentage 
          Change  Change 
  Three Months  Three Months  Three Months 
  Ended  Ended  Ended 
  June 30,  June 30,  June 30, 
(Dollars in thousands) 2024  2023  2024 vs. 2023  2024 vs. 2023 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $96,046  $101,268  $(5,222)  (5.2)%
Truckload fuel surcharge revenue  16,477   15,870   607   3.8 
Total Truckload revenue  112,523   117,138   (4,615)  (3.9)
                 
Dedicated revenue, net of fuel surcharge revenue  67,444   87,437   (19,993)  (22.9)
Dedicated fuel surcharge revenue  13,822   17,548   (3,726)  (21.2)
Total Dedicated revenue  81,266   104,985   (23,719)  (22.6)
                 
Intermodal revenue, net of fuel surcharge revenue  12,660   18,754   (6,094)  (32.5)
Intermodal fuel surcharge revenue  2,404   3,611   (1,207)  (33.4)
Total Intermodal revenue  15,064   22,365   (7,301)  (32.6)
                 
Brokerage revenue  37,385   41,184   (3,799)  (9.2)
                 
Total operating revenue $246,238  $285,672  $(39,434)  (13.8)%
                 
Operating income/(loss):                
Truckload $1,115  $9,569  $(8,454)  (88.3)%
Dedicated  6,650   14,173   (7,523)  (53.1)
Intermodal  (684)  (165)  (519)  (314.5)
Brokerage  2,893   4,636   (1,743)  (37.6)
Total operating income $9,974  $28,213  $(18,239)  (64.6)%
                 
Operating ratio:                
Truckload  99.0%  91.8%        
Dedicated  91.8   86.5         
Intermodal  104.5   100.7         
Brokerage  92.3   88.7         
Consolidated operating ratio  95.9%  90.1%        
                 
Operating ratio, net of fuel surcharges:                
Truckload  98.8%  90.6%        
Dedicated  90.1   83.8         
Intermodal  105.4   100.9         
Brokerage  92.3   88.7         
Consolidated operating ratio, net of fuel surcharges  95.3%  88.7%        
                 


MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
               
          Dollar  Percentage 
          Change  Change 
  Six Months  Six Months  Six Months 
  Ended  Ended  Ended 
  June 30,  June 30,  June 30, 
(Dollars in thousands) 2024  2023  2024 vs. 2023  2024 vs. 2023 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $191,068  $203,588  $(12,520)  (6.1)%
Truckload fuel surcharge revenue  33,006   34,176   (1,170)  (3.4)
Total Truckload revenue  224,074   237,764   (13,690)  (5.8)
                 
Dedicated revenue, net of fuel surcharge revenue  139,182   174,268   (35,086)  (20.1)
Dedicated fuel surcharge revenue  28,544   37,166   (8,622)  (23.2)
Total Dedicated revenue  167,726   211,434   (43,708)  (20.7)
                 
Intermodal revenue, net of fuel surcharge revenue  25,941   42,155   (16,214)  (38.5)
Intermodal fuel surcharge revenue  5,095   8,799   (3,704)  (42.1)
Total Intermodal revenue  31,036   50,954   (19,918)  (39.1)
                 
Brokerage revenue  73,074   83,543   (10,469)  (12.5)
                 
Total operating revenue $495,910  $583,695  $(87,785)  (15.0)%
                 
Operating income/(loss):                
Truckload $1,604  $19,610  $(18,006)  (91.8)%
Dedicated  15,908   27,857   (11,949)  (42.9)
Intermodal  (878)  622   (1,500)  (241.2)
Brokerage  5,590   9,134   (3,544)  (38.8)
Total operating income $22,224  $57,223  $(34,999)  (61.2)%
                 
Operating ratio:                
Truckload  99.3%  91.8%        
Dedicated  90.5   86.8         
Intermodal  102.8   98.8         
Brokerage  92.4   89.1         
Consolidated operating ratio  95.5%  90.2%        
                 
Operating ratio, net of fuel surcharges:                
Truckload  99.2%  90.4%        
Dedicated  88.6   84.0         
Intermodal  103.4   98.5         
Brokerage  92.4   89.1         
Consolidated operating ratio, net of fuel surcharges  94.8%  88.6%        
                 

       

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
       
  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
  2024  2023  2024  2023 
Truckload Segment:                
Revenue (in thousands) $112,523  $117,138  $224,074  $237,764 
Average revenue, net of fuel surcharges, per tractor per week(1) $4,093  $4,472  $4,044  $4,521 
Average tractors(1)  1,805   1,742   1,817   1,742 
Average miles per trip  528   505   533   507 
Non-revenue miles percentage(2)  11.6%  12.4%  12.1%  12.5%
Total miles (in thousands)  40,847   39,321   80,550   77,558 
                 
Dedicated Segment:                
Revenue (in thousands) $81,266  $104,985  $167,726  $211,434 
Average revenue, net of fuel surcharges, per tractor per week(1) $3,754  $3,986  $3,768  $3,973 
Average tractors(1)  1,382   1,687   1,421   1,696 
Average miles per trip  323   332   326   332 
Non-revenue miles percentage(2)  1.1%  1.3%  1.1%  1.2%
Total miles (in thousands)  28,231   34,833   57,311   68,909 
                 
Intermodal Segment:                
Revenue (in thousands) $15,064  $22,365  $31,036  $50,954 
Loads  4,464   6,267   9,053   13,544 
Average tractors  121   170   123   175 
                 
Brokerage Segment:                
Revenue (in thousands) $37,385  $41,184  $73,074  $83,543 
Loads  22,700   22,718   42,761   43,406 
                 
At June 30, 2024 and June 30, 2023:                
Total tractors(1)  3,126   3,516         
Average age of company tractors (in years)  1.8   1.7         
Total trailers  5,539   5,786         
Average age of company trailers (in years)  5.0   4.2         
Ratio of trailers to tractors(1)  1.8   1.6         
Total refrigerated containers  787   791         


  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
(In thousands) 2024  2023  2024  2023 
                 
Net cash provided by operating activities $35,821  $48,969  $81,543  $98,201 
Net cash used for investing activities  (27,776)  (60,359)  (48,025)  (88,639)
Net cash used for financing activities  (4,576)  (4,370)  (9,532)  (9,634)
                 
Weighted average shares outstanding:                
Basic  81,381   81,263   81,365   81,236 
Diluted  81,446   81,412   81,442   81,394 


(1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 90 and 98 tractors as of June 30, 2024 and 2023, respectively.
  
(2)Represents the percentage of miles for which the company is not compensated.