EX-99.1 2 a05-7055_1ex99d1.htm EX-99.1

Exhibit 99.1

 

MARTEN TRANSPORT, LTD. ANNOUNCES

FIRST QUARTER FINANCIAL AND OPERATING RESULTS

NET INCOME INCREASES 76%

 

MONDOVI, Wis. – April 20, 2005 - Marten Transport, Ltd (Nasdaq/NMS:MRTN) announced today its financial and operating results for the quarter ended March 31, 2005.

 

Operating revenue for the quarter increased 21.7%, to $102.9 million from $84.5 million for the same quarter of 2004.  Operating revenue included fuel surcharges of $9.7 million, compared with $4.0 million for the same quarter of 2004.  Operating revenue also included revenue from MW Logistics, LLC, a 45% owned affiliate, of $2.9 million for the 2005 quarter, compared with no revenue for the same quarter of 2004.  The company’s freight revenue, which excludes fuel surcharge and MW Logistics revenue, increased 12.2% over the first quarter of 2004.  The Company measures revenue, before fuel surcharge and MW Logistics revenue, or “freight revenue,” in addition to operating revenue, because management believes removing these sources of revenue provides a more consistent basis for comparing results of operations from period to period.

 

For the quarter ended March 31, 2005, net income increased 76.2% to $4.8 million from $2.7 million for the same quarter of 2004.  Net income per diluted share increased to 33 cents from 19 cents for the same quarter of 2004.

 

Chairman and President Randolph L. Marten said, “We experienced solid revenue growth for the quarter, but as a profit-focused company, I’m especially pleased with our 76.2% increase in net income.  For the quarter, our operating ratio (operating expenses as a percentage of operating income) improved to 92.0%, compared to 94.6% in the first quarter of 2004.

 

“Our results were driven by a 2.5% increase in average freight revenue per tractor per week, which improved to $2,915 in the 2005 quarter from $2,845 in the 2004 quarter. The improvement in asset productivity helped us overcome the continuing challenges of a tight driver market and high fuel prices.  Pricing was strong as we increased our average freight revenue per total mile 7.4%, to $1.354 in the 2005 quarter from $1.261 in the same quarter of 2004.

 

“At March 31, our balance sheet reflected approximately $172.8 million in stockholders’ equity and $36.6 million of borrowed debt, for a debt-to-total capitalization ratio of approximately 17.5%.

 


 

“We continue to feel good about Marten’s strategy and position in the marketplace.  We expect fleet growth in the range of 5% to 10% and an operating ratio of between 91.0% and 91.5% for the full year of 2005.  In addition, we are increasing our near term investment in the business by accelerating our tractor fleet replacement.  During the quarter, we reduced the average age of our tractor fleet to 1.5 years from 1.7 years in the same quarter of 2004.  Based on our current operating performance, the market for used trucks, our liquidity, and our expectations concerning new engines, we have decided to maintain a relatively new fleet during 2005 and 2006 to allow us significant flexibility in dealing with tractor purchasing in 2007 when the EPA’s next round of diesel emissions reduction directives go into effect.  By maintaining a newer fleet, we expect to save on expenses such as increased equipment costs, potential decreased fuel efficiency, and maintenance.  As a result, we have revised our capital expenditures budget for the year to approximately $88.0 million, net of trades.”

 

The accounts of MW Logistics, LLC were included in the company’s statements of operations beginning April 1, 2004, in accordance with FASB Interpretation No. 46, as revised.  MW Logistics is a 45% owned affiliate that provides logistics services to the transportation industry.  The company previously accounted for its investment in MW Logistics’ operating results using the equity method of accounting.

 

Marten Transport will host a conference call on Thursday, April 21, 2005, at 2:00 p.m. Central Time.  The public will be able to listen and participate in the call telephonically by dialing 877-576-2752 and entering the following code: 5523047.  For additional information on accessing the call and to access any statistical and financial information regarding us that is expected to be discussed during the conference call, please visit our website at www.marten.com.

 

Marten Transport is one of the leading temperature-sensitive truckload carriers in the United States.  Marten specializes in transporting food and other consumer packaged goods that require a temperature-sensitive or insulated environment.  Marten offers nationwide service, concentrating on expedited movements for high-volume customers.  Marten’s common stock is traded on the Nasdaq National Market under the symbol MRTN.

 

This press release contains forward-looking statements that involve risk, assumptions, and uncertainties that are difficult to predict.  Statements that constitute forward-looking statements are usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” “plans,” “intends,” or similar expressions.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties.  Actual results may differ from those set forth in the forward-looking statements.  The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess tractor or trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers’ business cycles; strikes, work slow downs, or work stoppages at the company, customers, ports, or other shipping related facilities; increases or rapid fluctuations in fuel prices as well as fluctuations in surcharge collection; the volume and terms of diesel purchase commitments; interest rates, fuel taxes, tolls, and license and registration fees; increases in the prices paid for

 


 

new revenue equipment and changes in the resale value of our used equipment; increased indebtedness, and associated interest expense, arising from maintaining a new fleet of equipment; shortages in supply of new equipment from manufacturers; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; elevated experience in the frequency and severity of claims relating to accident, cargo, workers’ compensation, health, and other claims; changes in management’s estimates of liability based upon such experience and development factors; increases in insurance premiums and deductible amounts; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; and regulatory requirements that increase costs or decrease efficiency, including new emissions standards for engines. Readers should review and consider these factors along with the various disclosures by the company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission.

 

CONTACT:  Randy Marten, President of Marten Transport, Ltd., 715-926-4216

 


 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

 

(In thousands, except share information)

 

March 31,
2005

 

December 31,
2004

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

160

 

$

—

 

Marketable securities

 

166

 

62

 

Receivables:

 

 

 

 

 

Trade, net

 

43,741

 

39,090

 

Other

 

9,249

 

8,372

 

Prepaid expenses and other

 

10,505

 

11,869

 

Deferred income taxes

 

3,737

 

5,856

 

 

 

 

 

 

 

Total current assets

 

67,558

 

65,249

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

Revenue equipment, buildings and land, office equipment and other

 

312,830

 

302,765

 

Accumulated depreciation

 

(89,701

)

(87,067

)

 

 

 

 

 

 

Net property and equipment

 

223,129

 

215,698

 

 

 

 

 

 

 

Other assets

 

7,546

 

7,127

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

298,233

 

$

288,074

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Checks issued in excess of cash balances

 

$

—

 

$

2,849

 

Accounts payable and accrued liabilities

 

20,068

 

16,871

 

Insurance and claims accruals

 

11,511

 

13,654

 

Current maturities of long-term debt

 

5,117

 

5,000

 

 

 

 

 

 

 

Total current liabilities

 

36,696

 

38,374

 

 

 

 

 

 

 

Long-term debt, less current maturities

 

31,464

 

25,257

 

Deferred income taxes

 

57,261

 

56,522

 

 

 

 

 

 

 

Total liabilities

 

125,421

 

120,153

 

 

 

 

 

 

 

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; 23,000,000 shares authorized; 14,312,877 shares, at March 31, 2005, and 14,307,027 shares, at December 31, 2004, issued and outstanding

 

143

 

143

 

Additional paid-in capital

 

70,187

 

70,111

 

Retained earnings

 

102,482

 

97,667

 

 

 

 

 

 

 

Total stockholders’ equity

 

172,812

 

167,921

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

298,233

 

$

288,074

 

 


 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months

 

 

 

Ended March 31,

 

(In thousands, except per share information)

 

2005

 

2004

 

 

 

 

 

 

 

OPERATING REVENUE

 

$

102,906

 

$

84,530

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

Salaries, wages and benefits

 

29,150

 

25,327

 

Purchased transportation

 

19,903

 

17,683

 

Fuel and fuel taxes

 

21,682

 

14,869

 

Supplies and maintenance

 

6,559

 

6,078

 

Depreciation

 

9,068

 

7,863

 

Operating taxes and licenses

 

1,646

 

1,571

 

Insurance and claims

 

4,412

 

4,405

 

Communications and utilities

 

826

 

801

 

Gain on disposition of revenue equipment

 

(879

)

(528

)

Other

 

2,271

 

1,872

 

 

 

 

 

 

 

Total operating expenses

 

94,638

 

79,941

 

 

 

 

 

 

 

OPERATING INCOME

 

8,268

 

4,589

 

 

 

 

 

 

 

OTHER EXPENSES (INCOME):

 

 

 

 

 

Interest expense

 

598

 

523

 

Interest income

 

(367

)

(341

)

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

8,037

 

4,407

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

3,222

 

1,675

 

 

 

 

 

 

 

NET INCOME

 

$

4,815

 

$

2,732

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.34

 

$

0.20

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.33

 

$

0.19

 

 


 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

For period:

 

 

 

 

 

Average operating revenue per total mile

 

$

1.542

 

$

1.323

 

Average freight revenue per total mile (1)

 

$

1.354

 

$

1.261

 

Average miles per tractor(2)

 

27,673

 

29,016

 

Average operating revenue per tractor per week(2)

 

$

3,319

 

$

2,987

 

Average freight revenue per tractor per week(1) (2)

 

$

2,915

 

$

2,845

 

Average miles per trip

 

982

 

1,025

 

Non-revenue miles percentage(3)

 

7.2

%

6.6

%

Total miles – company-employed drivers (in thousands)

 

48,620

 

44,214

 

Total miles – independent contractors (in thousands)

 

18,118

 

19,657

 

 

 

 

 

 

 

At March 31, 2005, and March 31, 2004:

 

 

 

 

 

Total tractors(2)

 

2,364

 

2,181

 

Average age of company tractors (in years)

 

1.5

 

1.7

 

Total trailers

 

3,270

 

2,960

 

Average age of company trailers (in years)

 

3.1

 

3.8

 

Ratio of trailers to tractors(2)

 

1.4

 

1.4

 

Ratio of tractors to non-driver personnel(2)

 

5.5

 

5.3

 

 

 

 

Three Months Ended
March 31,

 

 

 

2005

 

2004

 

(In thousands)

 

 

 

 

 

Net cash provided by operating activities

 

$

12,790

 

$

8,762

 

Net cash used for investing activities

 

16,039

 

20,194

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

14,309

 

13,840

 

Diluted

 

14,634

 

14,421

 

 

(1)                    Excludes revenue from fuel surcharges and from MW Logistics, LLC, a 45% owned affiliate whose financial results were consolidated with the company’s effective April 1, 2004, in accordance with FASB Interpretation No. 46, as revised.

 

(2)                    Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 556 and 574 tractors as of March 31, 2005, and 2004, respectively.

 

(3)                    Represents the percentage of miles for which the Company is not compensated.