-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, VcUtf858UQORhXFdNGGtc+2snMWosVT5U01IOmIkG3IfX3+oFaYLkk2OV3gVQ8FC 5yl7IqYDj8NhAzR3Ro+ToA== 0000912057-94-002553.txt : 19940811 0000912057-94-002553.hdr.sgml : 19940811 ACCESSION NUMBER: 0000912057-94-002553 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARTEN TRANSPORT LTD CENTRAL INDEX KEY: 0000799167 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94542486 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 10-Q 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: June 30, 1994 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 2,929,950 as of June 30, 1994. This report consists of nine (9) pages. There are no exhibits. PART I: FINANCIAL INFORMATION Item 1. Financial Statements MARTEN TRANSPORT, LTD. CONDENSED BALANCE SHEETS (Unaudited)
June 30, December 31, 1994 1993 -------- ------------- ASSETS Current assets: Cash and cash equivalents . . . . . . . . . $ 3,413,322 $ 5,339,300 Receivables . . . . . . . . . . . . . . . . 14,114,153 15,212,725 Prepaid expenses. . . . . . . . . . . . . . 3,657,820 4,626,371 Deferred income taxes . . . . . . . . . . . 2,238,651 1,909,935 ---------- ---------- Total current assets. . . . . . . . . . 23,423,946 27,088,331 Property and equipment: Revenue equipment, building and land, office equipment, and other . . . . . . . 111,045,575 105,271,774 Accumulated depreciation and amortization. . . . . . . . . . . . . . . (36,719,916) (35,708,945) ------------ ------------ Net property and equipment. . . . . . . 74,325,659 69,562,829 Other assets . . . . . . . . . . . . . . . . . 132,944 125,130 ----------- ----------- TOTAL ASSETS . . . . . . . . . . $97,882,549 $96,776,290 ----------- ----------- ----------- ----------- LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities: Current maturities of long-term debt and capital leases. . . . . . . . . . . . $14,499,389 $15,152,977 Other current liabilities . . . . . . . . . 19,142,355 15,635,511 ----------- ----------- Total current liabilities . . . . . . . 33,641,744 30,788,488 Long-term debt and capital leases, less current maturities . . . . . . . . . . 22,687,229 21,117,376 Deferred income taxes. . . . . . . . . . . . . 11,882,346 10,140,935 ----------- ----------- Total liabilities . . . . . . . . . . . 68,211,319 62,046,799 Shareholders' investment: Common stock, $.01 par value per share, 10,000,000 shares authorized, 2,929,950 and 3,429,950 shares issued and outstanding . . . . . . . . . . . . . 29,300 34,300 Additional paid-in capital. . . . . . . . . 9,281,210 10,865,010 Retained earnings . . . . . . . . . . . . . 20,360,720 23,830,181 ----------- ----------- Total shareholders' investment. . . . . . . . . . . . . . . 29,671,230 34,729,491 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT . . . . $97,882,549 $96,776,290 ----------- ----------- ----------- -----------
The accompanying notes are an integral part of these financial statements. MARTEN TRANSPORT, LTD. CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Six Months Ended June 30, Ended June 30, 1994 1993 1994 1993 ---- ---- ---- ---- OPERATING REVENUE. . . . . . . . . . $30,483,271 $28,260,023 $59,703,312 $54,103,753 OPERATING EXPENSES: Salaries, wages and benefits . . . . 11,075,655 10,130,798 21,972,851 19,770,523 Purchased transportation . . . . . . 1,358,326 909,238 2,648,449 1,677,014 Fuel and fuel taxes. . . . . . . . . 5,482,285 5,343,807 11,021,875 10,446,106 Supplies and maintenance . . . . . . 3,031,404 2,745,383 5,989,230 5,216,154 Depreciation and amortization. . . . 3,227,134 3,085,081 6,331,281 6,073,238 Operating taxes and licenses . . . . 650,276 625,003 1,268,385 1,235,646 Insurance and claims . . . . . . . . 1,387,043 1,310,128 2,750,271 2,588,746 Communications and utilities . . . . 404,075 321,411 784,953 543,992 Gain on disposition of revenue equipment. . . . . . . . . . . (614,525) (390,650) (1,129,517) (732,716) Other. . . . . . . . . . . . . . . . 1,047,060 998,204 2,065,198 1,957,136 ----------- ----------- ----------- ----------- Total operating expenses . . . 27,048,733 25,078,403 53,702,976 48,775,839 ----------- ----------- ----------- ----------- OPERATING INCOME . . . . . . . . . . . 3,434,538 3,181,620 6,000,336 5,327,914 OTHER EXPENSES (INCOME): Interest expense . . . . . . . . . . 571,003 614,796 1,173,628 1,249,601 Interest income and other. . . . . . (40,007) (36,446) (76,190) (81,728) ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES . . . . . . 2,903,542 2,603,270 4,902,898 4,160,041 PROVISION FOR INCOME TAXES . . . . . . 1,161,417 1,041,308 1,961,159 1,664,016 ----------- ----------- ----------- ----------- NET INCOME . . . . . . . . . . . . . . $ 1,742,125 $ 1,561,962 $ 2,941,739 $ 2,496,025 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE . . . . . . . . . . $ 0.51 $ 0.45 $ 0.86 $ 0.72 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average common and common equivalent shares outstanding. . . . 3,404,287 3,459,852 3,431,736 3,458,217 ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
The accompanying notes are an integral part of these financial statements. MARTEN TRANSPORT, LTD. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, 1994 1993 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Operations: Net income . . . . . . . . . . . . . . . . . . $ 2,941,739 $ 2,496,025 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization . . . . . . 6,331,281 6,073,238 Gain on disposition of revenue equipment . . . . . . . . . . . . . . . (1,129,517) (732,716) Deferred tax provision. . . . . . . . . . 1,412,695 633,990 Changes in other current operating items . . . . . . . . . . . . 5,573,967 24,160 ----------- ----------- Net cash provided by operating activities. . . . . . . . 15,130,165 8,494,697 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions: Revenue equipment, net . . . . . . . . . . . . (9,479,174) (12,901,921) Building and land, office equipment, and other additions, net . . . . . . . . . . (485,420) (983,192) Net change in other assets . . . . . . . . . . . (7,814) (12,887) ----------- ----------- Net cash used for investing activities. . . . . . . . . . . . . (9,972,408) (13,898,000) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Long-term borrowings . . . . . . . . . . . . . . 10,060,524 12,056,486 Repayment of long-term borrowings. . . . . . . . (9,144,259) (6,576,291) Common stock repurchased . . . . . . . . . . . . (8,000,000) - ----------- ----------- Net cash provided by (used for) financing activities. . . . . . . . (7,083,735) 5,480,195 ----------- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . . . . . . . . . . . . . . . . (1,925,978) 76,892 CASH AND CASH EQUIVALENTS: Beginning of period. . . . . . . . . . . . . . . 5,339,300 5,875,318 ----------- ----------- End of period. . . . . . . . . . . . . . . . . . $ 3,413,322 $ 5,952,210 ----------- ----------- ----------- ----------- CASH PAID FOR: Interest . . . . . . . . . . . . . . . . . . . . $ 1,211,508 $ 1,232,123 ----------- ----------- ----------- ----------- Income taxes . . . . . . . . . . . . . . . . . . $ 68,331 $ 1,161,734 ----------- ----------- ----------- -----------
The accompanying notes are an integral part of these financial 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 as of June 30, 1994. 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, 1993. (2) Common Stock Repurchase The Company repurchased 500,000 shares of its common stock from the estate of its former Chairman and Chief Executive Officer, Roger R. Marten, on June 21, 1994, for $16 per share. The shares have been retired, reducing shareholders' investment by $8 million. (3) Reclassifications Certain amounts in the 1993 financial statements have been reclassified to be consistent with the 1994 presentation. These reclassifications do not have a material effect on the financial statements. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. RESULTS OF OPERATIONS Operating revenue of $30.5 million for the second quarter of 1994 increased 7.9 percent over $28.3 million for the same period last year. For the six months ended June 30, 1994, operating revenue was $59.7 million, a 10.4 percent increase over $54.1 million for the same period in 1993. These increases were primarily the result of transporting additional freight resulting from continued customer demand and a moderate increase in the size of the Company's fleet. Average freight rates increased slightly during the second quarter of 1994. Management anticipates that customer demand will remain strong in 1994, causing operating revenue to exceed 1993 levels. Operating expenses as a percent of revenue for the second quarter of 1994 were 88.7 percent, which equalled the ratio for the same period a year ago. This ratio for the first six months of 1994 was 90.0 percent, compared with 90.2 percent for the first half of 1993. The transportation of additional freight combined with an increase in the Company's fleet caused all expense categories to increase. Purchased transportation expense was also impacted by an increase in the number of independent contractor-owned vehicles in 1994. Gains on the disposition of revenue equipment in 1994 increased from 1993 levels due to continued market demand for used equipment and additional revenue equipment trades. Disposals of revenue equipment in 1993 and 1994 were in accordance with Marten's planned equipment replacement program. Gains on the planned replacement of revenue equipment are expected to total $1.6 million to $2.0 million in 1994. Management expects operating expenses, as a percentage of operating revenue, to remain at current levels for the remainder of 1994. Interest expense during the three months ended June 30, 1994, decreased 7.1 percent from the same period in 1993. For the first six months of 1994, interest expense decreased 6.1 percent from 1993. These decreases are a result of lower interest rates. Management expects interest expense to increase during the remainder of 1994 due to an increase in long-term debt and an expected rise in interest rates. For the second quarter, 1994, the Company recorded net income of $1,742,125, or 51 cents per share, compared with $1,561,962, or 45 cents per share for the same period of 1993. For the six months ended June 30, 1994, the Company recorded net income of $2,941,739, or 86 cents per share, compared with $2,496,025, or 72 cents per share in 1993. The improvement in net income results from continued growth of revenue and management's control of expenses. CAPITAL RESOURCES AND LIQUIDITY The Company continued to replace and increase its fleet with new, more efficient revenue equipment during the first half of 1994. These expenditures were funded using cash flow from operations and long-term debt collateralized by the new equipment. Historically, cash flow from operations has funded working capital requirements. Cash generated from operations has been adequate, despite a working capital deficit, due to Marten's operating profits, short turnover in accounts receivable and cash management practices. The working capital deficit at June 30, 1994, increased to $10.2 million from $3.7 million at December 31, 1993. This increase primarily resulted from reduced cash balances and an increase in accounts payable and expense accruals. Marten has not used short- term borrowings to meet working capital needs and does not anticipate the use of short-term borrowings in 1994. Management believes the Company's liquidity is adequate to meet anticipated near-term operating requirements. The Company repurchased 500,000 shares of its common stock from the estate of its former Chairman and Chief Executive Officer, Roger R. Marten, for $16 per share, during the second quarter of 1994. The Company has retired these shares, reducing shareholders' investment by $8 million. The repurchase was funded using cash reserves and long-term debt. The Company is committed to purchase an additional $19 million of new revenue equipment, net of trade-in allowances, during the remainder of 1994 and 1995. 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: None b) Reports on Form 8-K: No reports on Form 8-K have been filed during the quarter ended June 30, 1994. 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: August 9, 1994 By: ___________________________________ Darrell D. Rubel Executive Vice President and Treasurer (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----