-----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, I8v5lOTY9N6aRL8yJFmnuuCVr6ZBJwdxh8B++YSnF6d7UCD7Adip8mDDuynQ4lf/ kP1yQeFOrqZojhHhvLF5jg== 0000912057-96-009265.txt : 19960514 0000912057-96-009265.hdr.sgml : 19960514 ACCESSION NUMBER: 0000912057-96-009265 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 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: 96561825 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 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: March 31, 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 2,941,616 as of March 31, 1996. PART I: FINANCIAL INFORMATION Item 1. Financial Statements MARTEN TRANSPORT, LTD. CONDENSED BALANCE SHEETS (In thousands, except share information) (Unaudited) March 31, December 31, 1996 1995 --------- ------------ ASSETS Current assets: Cash and cash equivalents . . . . . . . . $ 2,911 $ 3,330 Receivables . . . . . . . . . . . . . . . 19,800 17,463 Prepaid expenses. . . . . . . . . . . . . 6,408 5,949 Deferred income taxes. . . . . . . . . . 3,724 2,766 -------- -------- Total current assets . . . . . . . . . 32,843 29,508 Property and equipment: Revenue equipment, building and land, office equipment, and other . . . . . . 131,510 132,894 Accumulated depreciation . . . . . . . . (35,149) (39,261) -------- -------- Net property and equipment . . . . . . 96,361 93,633 -------- -------- TOTAL ASSETS. . . . . . . . . . . $129,204 $123,141 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities: Accounts payable and accrued liabilities. $ 10,347 $ 10,637 Insurance and claims accruals . . . . . . 13,027 11,794 Current maturities of long-term debt. . . 18,348 17,914 -------- -------- Total current liabilities. . . . . . . 41,722 40,345 Long-term debt, less current maturities . . 30,060 27,079 Deferred income taxes . . . . . . . . . . . 18,879 17,475 -------- -------- Total liabilities. . . . . . . . . . . 90,661 84,899 Shareholders' investment: Common stock, $.01 par value per share, 10,000,000 shares authorized, 2,941,616 and 2,929,950 shares issued and outstanding. . . . . . . . . . . . . 29 29 Additional paid-in capital . . . . . . . . 9,410 9,410 Retained earnings. . . . . . . . . . . . . 29,104 28,803 -------- -------- Total shareholders' investment . . . . . . . . . . . . . . 38,543 38,242 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT. . . . . . $129,204 $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 Ended March 31, 1996 1995 ---- ---- OPERATING REVENUE . . . . . . . . . . . . $34,609 $31,961 OPERATING EXPENSES: Salaries, wages and benefits . . . . . 12,383 11,770 Purchased transportation . . . . . . . 4,003 1,603 Fuel and fuel taxes. . . . . . . . . . 6,125 5,724 Supplies and maintenance . . . . . . . 3,708 3,178 Depreciation . . . . . . . . . . . . . 3,837 3,518 Operating taxes and licenses . . . . . 784 714 Insurance and claims . . . . . . . . . 2,013 1,571 Communications and utilities . . . . . 446 396 Gain on disposition of revenue equipment . . . . . . . . . . . . . . (1,128) (1,041) Other. . . . . . . . . . . . . . . . . 1,116 1,218 ------- ------- Total operating expenses . . . . 33,287 28,651 ------- ------- OPERATING INCOME. . . . . . . . . . . . . 1,322 3,310 OTHER EXPENSES (INCOME): Interest expense. . . . . . . . . . . . 845 778 Interest income and other . . . . . . . (24) (19) ------- ------- INCOME BEFORE INCOME TAXES. . . . . . . . 501 2,551 PROVISION FOR INCOME TAXES. . . . . . . . 200 1,020 ------- ------- NET INCOME. . . . . . . . . . . . . . . . $ 301 $ 1,531 ------- ------- ------- ------- NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE . . . . . . . . . . . $ 0.10 $ 0.52 ------- ------- ------- ------- Weighted average common and common equivalent shares outstanding . . . . . 2,962 2,964 ------- ------- ------- ------- The accompanying notes are an integral part of these statements. MARTEN TRANSPORT, LTD. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Operations: Net income . . . . . . . . . . . . . . . $ 301 $1,531 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation . . . . . . . . . . . . 3,837 3,518 Gain on disposition of revenue equipment. . . . . . . . . . . . . (1,128) (1,041) Deferred tax provision . . . . . . . 446 756 Changes in other current operating items . . . . . . . . . (1,853) 2,279 ------ ------ Net cash provided by operating activities . . . . . 1,603 7,043 ------ ------ CASH FLOWS FROM INVESTING ACTIVITIES: Property additions: Revenue equipment, net . . . . . . . . (5,246) (7,432) Building and land, office equipment, and other additions, net . . . . . . (191) (139) ------ ------ Net cash used for investing activities . . . . . . . . . . (5,437) (7,571) ------ ------ CASH FLOWS FROM FINANCING ACTIVITIES: Long-term borrowings. . . . . . . . . . . 9,054 4,451 Repayment of long-term borrowings . . . . (5,639) (4,152) ------ ------ Net cash provided by financing activities . . . . . 3,415 299 ------ ------ DECREASE IN CASH AND CASH EQUIVALENTS. . . . (419) (229) CASH AND CASH EQUIVALENTS: Beginning of period . . . . . . . . . . . 3,330 3,129 ------ ------ End of period . . . . . . . . . . . . . . $2,911 $2,900 ------ ------ ------ ------ CASH PAID (RECEIVED) FOR: Interest. . . . . . . . . . . . . . . . . $ 860 $ 764 ------ ------ ------ ------ Income taxes. . . . . . . . . . . . . . . $ (348) $ (644) ------ ------ ------ ------ 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 March 31, 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. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. RESULTS OF OPERATIONS Operating revenue for the first quarter of 1996 increased 8.3 percent over the first quarter of 1995. This increase was due to the transportation of additional freight associated with a moderate increase in the size of the Company's fleet. Customer demand in 1996 was lower-than-expected, causing freight rates and average miles traveled per tractor to decline slightly from 1995 levels. Management anticipates that customer demand will remain at current levels during 1996. Operating expenses for the first quarter of 1996 represented 96.2 percent of operating revenue, compared with 89.6 percent for the same period in 1995. This ratio increased in 1996 due primarily to reduced equipment utilization and less-than-expected revenue growth. Operating expenses in the first quarter of 1996 increased 16.2 percent over the same period in 1995. Most expense categories increased in 1996 due to the transportation of additional freight. Marten continued to increase the number of independent contractor-owned vehicles in 1996, causing an increase in purchased transportation expense. The Company's use of independent contractor-owned vehicles reduces salaries, wages and benefits expense and fuel and fuel tax expense relative to revenue, as these expenses are assumed by the independent contractors. Fuel and fuel tax expense was negatively impacted in the first quarter of 1996 by higher diesel fuel prices. Gains on disposition of revenue equipment increased in the first quarter of 1996 due to the Company's planned equipment replacement program. Insurance and claims expense represented 5.8 percent of revenue during the first quarter of 1996, compared with 4.9 percent in the same period of 1995. This increase resulted in additional reserves for possible future claims. Interest expense for the three months ended March 31, 1996, increased 8.6 percent over the same period of 1995 due to additional long-term debt associated with revenue equipment purchases. The Company recorded net income of $301,000, or 10 cents per share for the first quarter of 1996, compared with net income of $1,531,000, or 52 cents per share in 1995. This decline can be attributed to reduced customer demand causing less-than-expected revenue growth. CAPITAL RESOURCES AND LIQUIDITY The Company continued to replace its fleet with new, more efficient equipment during the first quarter of 1996. These purchases were funded using cash flow from operations and long-term debt collateralized by the new equipment. Marten has been able to operate effectively with a working capital deficit due to the Company's operating profits, short turnover in accounts receivable and cash management practices. The working capital deficit is caused primarily by current maturities of long-term debt related to the acquisition of revenue equipment. Marten's working capital deficit at March 31, 1996, decreased to $8.9 million from $10.8 million at December 31, 1995. This decrease was due primarily to additional receivables at March 31, 1996, associated with the planned replacement of revenue equipment. Marten has not used short-term borrowings to meet working capital needs and does not anticipate the use of short-term borrowings in 1996. Management believes the Company's liquidity is adequate to meet anticipated near-term operating requirements. The Company is committed to purchase an additional $25 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 March 31, 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: May 14, 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 March 31, 1996 Item No. Item Method of Filing - -------- ---- ---------------- 27.1 Financial Data Schedule . . . . Filed herewith. EX-27.1 2 EXHIBIT 27.1
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. 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 2,911,000 0 19,800,000 0 0 32,843,000 131,510,000 35,149,000 129,204,000 41,722,000 30,060,000 0 0 29,000 38,514,000 129,204,000 34,609,000 34,609,000 0 33,287,000 0 0 845,000 501,000 200,000 301,000 0 0 0 301,000 0.10 0.10
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