-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M107pBp2/EKwVx1yyAO3lk1vpxcZt2zdCl+BdfhzBYtjjlfViY75v/fVsClq/Ahh Hd1wwmpqVY5TmxS3nYgdXg== 0000912057-96-025415.txt : 19961113 0000912057-96-025415.hdr.sgml : 19961113 ACCESSION NUMBER: 0000912057-96-025415 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARTEN TRANSPORT LTD CENTRAL INDEX KEY: 0000799167 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 391140809 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15010 FILM NUMBER: 96657863 BUSINESS ADDRESS: STREET 1: 129 MARTEN ST CITY: MONDOVI STATE: WI ZIP: 54755 BUSINESS PHONE: 7159264216 MAIL ADDRESS: STREET 1: 3400 PLAZA VII STREET 2: 45 SOUTH SEVENTH ST CITY: MINNEAPOLIS STATE: MN ZIP: 55402 10-Q 1 FORM 10Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For Quarter Ended: September 30, 1996 Commission File Number: 0-15010 MARTEN TRANSPORT, LTD. (Exact name of registrant as specified in its charter) Delaware 39-1140809 -------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 129 Marten Street, Mondovi, Wisconsin 54755 - ------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 715-926-4216 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ------- ------- The number of shares outstanding of the registrant's Common Stock, par value $.01 per share, was 2,959,616 as of September 30, 1996. PART I: FINANCIAL INFORMATION Item 1. Financial Statements MARTEN TRANSPORT, LTD. CONDENSED BALANCE SHEETS (In thousands, except share information) (Unaudited)
September 30, December 31, 1996 1995 ------------- ------------ ASSETS Current assets: Cash and cash equivalents. . . . . . . . . . . . . . . . $ 3,076 $ 3,330 Receivables. . . . . . . . . . . . . . . . . . . . . . . 19,568 17,463 Prepaid expenses . . . . . . . . . . . . . . . . . . . . 5,758 5,949 Deferred income taxes. . . . . . . . . . . . . . . . . . 4,160 2,766 -------- -------- Total current assets . . . . . . . . . . . . . . . . . 32,562 29,508 Property and equipment: Revenue equipment, building and land, office equipment, and other. . . . . . . . . . . . . . 139,917 132,894 Accumulated depreciation . . . . . . . . . . . . . . . . (35,947) (39,261) -------- -------- Net property and equipment . . . . . . . . . . . . . . 103,970 93,633 -------- -------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . $136,532 $123,141 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities: Accounts payable and accrued liabilities . . . . . . . . $ 12,401 $ 10,637 Insurance and claims accruals. . . . . . . . . . . . . . 13,995 11,794 Current maturities of long-term debt . . . . . . . . . . 19,080 17,914 -------- -------- Total current liabilities. . . . . . . . . . . . . . . 45,476 40,345 Long-term debt, less current maturities. . . . . . . . . . 31,134 27,079 Deferred income taxes. . . . . . . . . . . . . . . . . . . 20,037 17,475 -------- -------- Total liabilities. . . . . . . . . . . . . . . . . . . 96,647 84,899 Shareholders' investment: Common stock, $.01 par value per share, 10,000,000 shares authorized, 2,959,616 and 2,941,616 shares issued and outstanding. . . . . . . . . . . . . . . . . . . . 30 29 Additional paid-in capital . . . . . . . . . . . . . . . 9,581 9,410 Retained earnings. . . . . . . . . . . . . . . . . . . . 30,274 28,803 -------- -------- Total shareholders' investment . . . . . . . . . . . . 39,885 38,242 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT . . . . . . . . . . . . . . $136,532 $123,141 -------- -------- -------- --------
The accompanying notes are an integral part of these balance sheets. MARTEN TRANSPORT, LTD. CONDENSED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
Three Months Nine Months Ended September 30, Ended September 30, 1996 1995 1996 1995 ---- ---- ---- ---- OPERATING REVENUE. . . . . . . . . . . . . . . . . . . . . . $ 37,593 $ 35,889 $108,181 $102,677 OPERATING EXPENSES: Salaries, wages and benefits . . . . . . . . . . . . . . . 12,756 12,807 37,659 37,409 Purchased transportation . . . . . . . . . . . . . . . . . 5,111 3,006 13,731 7,093 Fuel and fuel taxes. . . . . . . . . . . . . . . . . . . . 6,273 6,234 19,060 18,241 Supplies and maintenance . . . . . . . . . . . . . . . . . 3,496 3,665 10,467 10,297 Depreciation . . . . . . . . . . . . . . . . . . . . . . . 4,069 3,604 11,851 10,763 Operating taxes and licenses . . . . . . . . . . . . . . . 917 871 2,527 2,246 Insurance and claims . . . . . . . . . . . . . . . . . . . 1,676 1,627 5,521 4,767 Communications and utilities . . . . . . . . . . . . . . . 391 424 1,259 1,232 Gain on disposition of revenue equipment. . . . . . . . . . . . . . . . . . . . . . . . (416) (422) (2,009) (1,905) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,011 1,050 3,122 3,518 -------- -------- -------- -------- Total operating expenses . . . . . . . . . . . . . . . 35,284 32,866 103,188 93,661 -------- -------- -------- -------- OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . 2,309 3,023 4,993 9,016 OTHER EXPENSES (INCOME): Interest expense . . . . . . . . . . . . . . . . . . . . . 908 812 2,623 2,392 Interest income and other. . . . . . . . . . . . . . . . . (30) (20) (82) (156) -------- -------- -------- -------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . 1,431 2,231 2,452 6,780 PROVISION FOR INCOME TAXES . . . . . . . . . . . . . . . . . 573 892 981 2,712 -------- -------- -------- -------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . $ 858 $ 1,339 $ 1,471 $ 4,068 -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE . . . . . . . . . . . . . . . . . . . . . $ 0.29 $ 0.45 $ 0.50 $ 1.37 -------- -------- -------- -------- -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding. . . . . . . . . . . . . . . 2,964 2,966 2,963 2,966 -------- -------- -------- -------- -------- -------- -------- --------
The accompanying notes are an integral part of these statements. MARTEN TRANSPORT, LTD. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Nine Months Ended September 30, 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Operations: Net income . . . . . . . . . . . . . . . . . . . . . . . $ 1,471 $ 4,068 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation . . . . . . . . . . . . . . . . . . . . 11,851 10,763 Gain on disposition of revenue equipment. . . . . . . . . . . . . . . . . . . . . (2,009) (1,905) Deferred tax provision . . . . . . . . . . . . . . . 1,168 2,008 Changes in other current operating items. . . . . . . . . . . . . . . . . . 2,051 777 ------- ------- Net cash provided by operating activities . . . . . . . . . . . . . 14,532 15,711 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions: Revenue equipment, net . . . . . . . . . . . . . . . . . (19,810) (15,762) Building and land, office equipment, and other additions, net . . . . . . . . . . . . . . . (369) (2,161) ------- ------- Net cash used for investing activities . . . . . . . . . . . . . . . . . . (20,179) (17,923) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock . . . . . . . . . . . . . . . . . 172 74 Long-term borrowings . . . . . . . . . . . . . . . . . . . 21,191 15,845 Repayment of long-term borrowings. . . . . . . . . . . . . (15,970) (13,032) ------- ------- Net cash provided by financing activities . . . . . . . . . . . . . 5,393 2,887 ------- ------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . (254) 675 CASH AND CASH EQUIVALENTS: Beginning of period. . . . . . . . . . . . . . . . . . . . 3,330 3,129 ------- ------- End of period. . . . . . . . . . . . . . . . . . . . . . . $ 3,076 $ 3,804 ------- ------- ------- ------- CASH PAID (RECEIVED) FOR: Interest . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,636 $ 2,351 ------- ------- ------- ------- Income taxes . . . . . . . . . . . . . . . . . . . . . . . $ (554) $ (558) ------- ------- ------- -------
The accompanying notes are an integral part of these statements. NOTES TO FINANCIAL STATEMENTS (Unaudited) (1) Financial Statements The accompanying unaudited condensed financial statements reflect, in the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial condition, results of operations, and cash flows as of September 30, 1996. The results of operations for any interim period are not necessarily indicative of results for the full year. The unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1995. (2) Stock Option Exercises Options were exercised for 18,000 shares and 11,666 shares of Company stock under the Company's stock option plans during the nine months ended September 30, 1996, and September 30, 1995, respectively. (3) Change in Estimated Useful Life The Company changed the estimated useful life of certain revenue equipment as of July 1, 1995. The change resulted in a decrease in depreciation expense of $144,000 and an increase in net income of $86,000 or $0.03 per share for the three months ended September 30, 1995. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. RESULTS OF OPERATIONS Operating revenue for the third quarter of 1996 increased 4.7 percent over the same period last year. Operating revenue for the nine months ended September 30, 1996, increased 5.4 percent over the same period in 1995. These increases resulted from the transportation of additional freight associated with moderate additions to the Company's fleet. Fuel surcharges implemented to offset an increase in the cost of diesel fuel represented 0.6 percent of revenue for the first nine months of 1996. Operating expenses as a percent of revenue for the third quarter of 1996 were 93.9 percent, compared with 91.6 percent for the third quarter of 1995. This ratio for the first nine months of 1996 was 95.4 percent, compared with 91.2 percent in 1995. Operating expenses in 1996 increased 7.4 percent and 10.2 percent for the third quarter and the first nine months, respectively. The transportation of additional freight caused many of the expense categories to increase. The Company continued to increase the number of independent contractor-owned vehicles in 1996, causing an increase in purchased transportation expense. Marten's use of additional independent contractors decreased salaries, wages and benefits expense and fuel and fuel tax expense relative to revenue, as these expenses are assumed by independent contractors. Fuel and fuel tax expense in 1996 increased due to higher diesel fuel prices. Depreciation expense increased due to the continued expansion of Marten's fleet. Interest expense for the third quarter of 1996 increased 11.8 percent over the same period in 1995. Interest expense for the first nine months of 1996 increased 9.7 percent over 1995. These increases are due to additional long- term debt associated with revenue equipment purchases. The Company recorded net income of $858,000, or 29 cents per share for the third quarter of 1996, compared with net income of $1,339,000, or 45 cents per share in 1995. Net income for the nine months ended September 30, 1996, was $1,471,000, or 50 cents per share, compared with $4,068,000, or $1.37 per share in 1995. These decreases are attributed to increased operating expenses without a corresponding increase in average freight rates. CAPITAL RESOURCES AND LIQUIDITY Marten continued to invest in new, more efficient revenue equipment in 1996. These purchases were funded using cash flow from operations and long-term debt collateralized by the new equipment. The Company has historically operated with a working capital deficit caused primarily by current maturities of long-term debt related to revenue equipment purchases. Marten's operating profits, short turnover in accounts receivable and cash management practices have funded working capital needs. Short-term borrowings have not been and are not expected to be used to meet working capital requirements. The Company's working capital deficit at September 30, 1996, increased to $12.9 million from $10.8 million at December 31, 1995, due primarily to additional accruals for insurance and claims expense. Management believes the Company's liquidity is adequate to meet anticipated near-term operating requirements. The Company is committed to purchase an additional $10 million of new revenue equipment, net of trade-in allowances, during the remainder of 1996. PART II. OTHER INFORMATION ITEM 1. Legal Proceedings: None ITEM 2. Change in Securities: None ITEM 3. Defaults Upon Senior Securities: None ITEM 4. Submission of Matters to a Vote of Security Holders: None ITEM 5. Other Information: None ITEM 6. Exhibits and Reports on Form 8-K: a) Exhibits: Item No. Item Method of Filing -------- ---- ---------------- 27.1 Financial Data Schedule . . . . Filed herewith. b) Reports on Form 8-K: No reports on Form 8-K have been filed during the quarter ended September 30, 1996. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. MARTEN TRANSPORT, LTD. (Registrant) Dated: November 12, 1996 By: /s/ Darrell D. Rubel ----------------------------------- Darrell D. Rubel Executive Vice President and Treasurer (Chief Financial Officer) MARTEN TRANSPORT, LTD. EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-Q For the Fiscal Quarter Ended September 30, 1996 Item No. Item Method of Filing -------- ---- ---------------- 27.1 Financial Data Schedule . . . . . . . Filed herewith. EX-27.1 2 EXHIBIT 27.1 (FDS)
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED STATEMENTS OF INCOME AND THE CONDENSED BALANCE SHEETS, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 3,076,000 0 19,568,000 0 0 32,562,000 139,917,000 35,947,000 136,532,000 45,476,000 31,134,000 0 0 30,000 39,855,000 136,532,000 108,181,000 108,181,000 0 103,188,000 0 0 2,623,000 2,452,000 981,000 1,471,000 0 0 0 1,471,000 0.50 0.50
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