-----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, OmRcmqgvqvyqchfQ9TvYF6FpfE7kCss8iAn4bzwFK3w+v9d5UMuHssWNZch/jrRf +v8n1UIB163GLjQa4IlooA== 0000912057-97-016564.txt : 19970513 0000912057-97-016564.hdr.sgml : 19970513 ACCESSION NUMBER: 0000912057-97-016564 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970512 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: 97599995 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: March 31, 1997 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 March 31, 1997. PART I: FINANCIAL INFORMATION Item 1. Financial Statements. MARTEN TRANSPORT, LTD. CONDENSED BALANCE SHEETS (In thousands, except share information) (Unaudited) March 31, December 31, 1997 1996 ----------- ------------ ASSETS Current assets: Cash and cash equivalents . . . . . . . . . . . $ 2,867 $ 3,028 Receivables . . . . . . . . . . . . . . . . . . 18,352 19,433 Prepaid expenses. . . . . . . . . . . . . . . . 6,620 6,339 Deferred income taxes . . . . . . . . . . . . . 3,222 3,456 -------- -------- Total current assets. . . . . . . . . . . . 31,061 32,256 Property and equipment: Revenue equipment, building and land, office equipment, and other . . . . . . . . . 145,144 140,824 Accumulated depreciation . . . . . . . . . . . (36,688) (34,945) -------- -------- Net property and equipment. . . . . . . . . 108,456 105,879 -------- -------- TOTAL ASSETS. . . . . . . . . . . . . $139,517 $138,135 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities: Accounts payable and accrued liabilities. . . . $ 10,240 $ 11,024 Insurance and claims accruals . . . . . . . . . 12,881 13,558 Current maturities of long-term debt. . . . . . 21,179 20,100 -------- -------- Total current liabilities . . . . . . . . . 44,300 44,682 Long-term debt, less current maturities . . . . . 34,598 33,505 Deferred income taxes. . . . . . . . . . . . . . . 20,125 19,904 -------- -------- Total liabilities . . . . . . . . . . . . . 99,023 98,091 Shareholders' investment: Common stock, $.01 par value per share, 10,000,000 shares authorized, 2,959,616 shares issued and outstanding . . . . . . . . . . . . . . . 30 30 Additional paid-in capital. . . . . . . . . . . 9,581 9,581 Retained earnings . . . . . . . . . . . . . . . 30,883 30,433 -------- -------- Total shareholders' investment. . . . . . . . . . . . . . . . . 40,494 40,044 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT. . . . . . . $139,517 $138,135 -------- -------- -------- -------- 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, 1997 1996 ---- ---- OPERATING REVENUE. . . . . . . . . . . . . . . . . . $38,553 $34,609 OPERATING EXPENSES: Salaries, wages and benefits . . . . . . . . . . . 12,465 12,383 Purchased transportation . . . . . . . . . . . . . 6,854 4,003 Fuel and fuel taxes. . . . . . . . . . . . . . . . 6,472 6,125 Supplies and maintenance . . . . . . . . . . . . . 3,260 3,708 Depreciation . . . . . . . . . . . . . . . . . . . 4,202 3,837 Operating taxes and licenses . . . . . . . . . . . 803 784 Insurance and claims . . . . . . . . . . . . . . . 1,100 2,013 Communications and utilities . . . . . . . . . . . 521 446 Gain on disposition of revenue equipment. . . . . . . . . . . . . . . . . . . . (63) (1,128) Other. . . . . . . . . . . . . . . . . . . . . . . 1,180 1,116 ------- ------- Total operating expenses . . . . . . . . . . 36,794 33,287 ------- ------- OPERATING INCOME . . . . . . . . . . . . . . . . . . 1,759 1,322 OTHER EXPENSES (INCOME): Interest expense . . . . . . . . . . . . . . . . . 1,028 845 Interest income and other. . . . . . . . . . . . . (20) (24) ------- ------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . 751 501 PROVISION FOR INCOME TAXES . . . . . . . . . . . . . 301 200 ------- ------- NET INCOME . . . . . . . . . . . . . . . . . . . . . $ 450 $ 301 ------- ------- ------- ------- NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE . . . . . . . . . . . . . . . . . $ 0.15 $ 0.10 ------- ------- ------- ------- Weighted average common and common equivalent shares outstanding. . . . . . . . . . . 2,967 2,962 ------- ------- ------- ------- 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, 1997 1996 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Operations: Net income . . . . . . . . . . . . . . . . . . . $ 450 $ 301 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation . . . . . . . . . . . . . . . 4,202 3,837 Gain on disposition of revenue equipment . . . . . . . . . . . . . . . . (63) (1,128) Deferred tax provision. . . . . . . . . . . 455 446 Changes in other current operating items . . . . . . . . . . . . . (661) (1,853) ------- ------- Net cash provided by operating activities. . . . . . . . . 4,383 1,603 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions: Revenue equipment, net . . . . . . . . . . . . . (6,611) (5,246) Building and land, office equipment, and other additions, net . . . . . . . . . . . (105) (191) ------- ------- Net cash used for investing activities. . . . . . . . . . . . . . (6,716) (5,437) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES: Long-term borrowings . . . . . . . . . . . . . . . 7,795 9,054 Repayment of long-term borrowings. . . . . . . . . (5,623) (5,639) ------- ------- Net cash provided by financing activities. . . . . . . . . 2,172 3,415 ------- ------- DECREASE IN CASH AND CASH EQUIVALENTS. . . . . . . . (161) (419) CASH AND CASH EQUIVALENTS: Beginning of period. . . . . . . . . . . . . . . . 3,028 3,330 ------- ------- End of period. . . . . . . . . . . . . . . . . . . $2,867 $2,911 ------- ------- ------- ------- CASH PAID (RECEIVED) FOR: Interest . . . . . . . . . . . . . . . . . . . . . $1,012 $ 860 ------- ------- ------- ------- Income taxes . . . . . . . . . . . . . . . . . . . $ (23) $ (348) ------- ------- ------- ------- 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 (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial condition, results of operations, and cash flows as of March 31, 1997. 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, 1996. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. RESULTS OF OPERATIONS Operating revenue for the first quarter of 1997 increased 11.4 percent over the first quarter of 1996. This increase was primarily the result of transporting additional freight associated with moderate additions to the Company's fleet. Additionally, fuel surcharges implemented to partially offset an increase in the cost of diesel fuel represented 1.7 percent of revenue in the first quarter of 1997. Operating expenses for the first quarter of 1997 were 95.4 percent of operating revenue, versus 96.2 percent for the same period in 1996. Most expense categories increased in 1997 due to the transportation of additional freight and an increase in the Company's fleet. Purchased transportation expense also increased due to a higher number of independent contractor-owned vehicles. Marten's use of independent contractor-owned vehicles reduces the following expenses relative to revenue: salaries, wages and benefits expense, fuel and fuel taxes expense, and supplies and maintenance expense. The independent contractors assume these expenses. Fuel and fuel tax expense increased due to higher average diesel fuel prices in the first quarter of 1997 compared with the same period in 1996. Insurance and claims expense decreased due to continued favorable accident experience combined with adequate loss reserves. The significant decrease in gains on disposition of revenue equipment was primarily caused by a decrease in the market value realized for used equipment. Interest expense for the three months ended March 31, 1997, increased over the same period in 1996 primarily due to additional long-term debt associated with revenue equipment purchases. Marten recorded net income of $450,000, or 15 cents per share, for the first quarter of 1997. This compares with net income of $301,000, or 10 cents per share, for the first quarter of 1996. The improvement in net income resulted from continued growth of revenue and management's control of expenses. CAPITAL RESOURCES AND LIQUIDITY Marten continued to replace its fleet with new, more efficient revenue equipment in 1997. These purchases were funded using cash flow from operations and long- term debt collateralized by the new equipment. The Company has committed to purchase an additional $12 million of new revenue equipment, net of trade-in allowances, during the remainder of 1997. Management expects to fund these expenditures using cash flow from operations and additional long-term debt. The working capital deficit at March 31, 1997, increased to $13.2 million from $12.4 million at December 31, 1996. This change was due primarily to an increase in long-term debt causing a corresponding increase in current maturities. Marten has historically operated with a working capital deficit caused primarily by current maturities of long-term debt related to the acquisition of revenue equipment. The Company's operating profits, short turnover in accounts receivable and cash management practices have adequately funded working capital requirements. Marten has not used short-term borrowings to meet working capital needs and does not anticipate the use of such borrowings in 1997. Management believes the Company's liquidity is adequate to meet expected near-term operating requirements. PART II. OTHER INFORMATION ITEM 1. Legal Proceedings. There are no material pending legal, governmental, administrative or other proceedings to which the Company is a party or of which any of its property is subject. 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) Exhibit 27.1 Financial Data Schedule. b) No reports on Form 8-K have been filed during the quarter ended March 31, 1997. 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 12, 1997 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, 1997 Item No. Item Method of Filing -------- ---- ---------------- 27.1 Financial Data Schedule . . . . . . . . Filed herewith electronically. EX-27.1 2 FINANCIAL DATA SCHEDULE
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-31-1997 JAN-01-1997 MAR-31-1997 2,867,000 0 18,352,000 0 0 31,061,000 145,144,000 36,688,000 139,517,000 44,300,000 34,598,000 0 0 30,000 40,464,000 139,517,000 38,553,000 38,553,000 0 36,794,000 0 0 1,028,000 751,000 301,000 450,000 0 0 0 450,000 0.15 0.15
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