EX-99.1 2 a05-13296_1ex99d1.htm EX-99.1

Exhibit 99.1

 

MARTEN TRANSPORT RELEASES SECOND QUARTER FINANCIAL RESULTS;

NET INCOME INCREASES 40%

 

 

MONDOVI, Wis., July 20, 2005/PR Newswire/ – Marten Transport, Ltd. (Nasdaq/NMS:MRTN) announced today its financial and operating results for the quarter and six months ended June 30, 2005.

 

For the quarter ended June 30, 2005, operating revenue increased 22.7%, to $112.8 million from $91.9 million for the 2004 quarter. For the six months ended June 30, 2005, operating revenue increased 22.3%, to $215.7 million from $176.4 million for the 2004 period.  Operating revenue included fuel surcharges of $12.7 million and $22.4 million for the quarter and six months of 2005, compared with $5.6 million and $9.6 million for the quarter and six months of 2004. Operating revenue also included non-freight revenue from MW Logistics, LLC, a 45% owned affiliate, and brokerage revenue. Non-freight revenue was $4.1 million and $7.0 million for the quarter and six months of 2005, compared with $2.1 million for the 2004 quarter and six-month periods.  The Company’s freight revenue, which excludes fuel surcharge and non-freight revenue, increased 14.0% over the 2004 quarter and 13.1% over the 2004 six-month period. The Company measures revenue, before fuel surcharge and non-freight 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 June 30, 2005, net income increased 40.5%, to $6.8 million from $4.8 million for the 2004 quarter. Net income per diluted share increased to 46 cents from 33 cents for the 2004 quarter.  For the six months ended June 30, 2005, net income increased 53.4%, to $11.6 million from $7.5 million for the 2004 period.  Net income per diluted share increased to 79 cents from 52 cents for the 2004 period.

 

Chairman and President Randolph L. Marten said, “We had a strong quarter, with the key components being continued focus on customer service that allowed us to increase rates and produce solid utilization and keeping our trucks seated with drivers.  In view of the competitive driver market, I was especially pleased with our ability to find drivers to expand our company-owned fleet and enhance revenue growth.

 

“Our results were driven by a 5.7% increase in average freight revenue per tractor per week, which improved to $3,097 from $2,930 in the 2004 quarter.  Pricing was favorable as we increased our average freight revenue per total mile 8.0%, to $1.385 from $1.283 in the 2004 quarter.  For the quarter, our operating ratio (operating expenses as a percentage of operating revenue) improved to 90.0%, compared with 91.4% in the 2004 quarter.

 

“At June 30, our balance sheet reflected approximately $180.0 million in stockholders’ equity and $34.7 million in borrowed debt, for a debt-to-capitalization ratio of approximately 16.2%.

 

“We still expect fleet growth in the range of 5% to 10% for the full year of 2005.  We remain cautious because of high fuel prices, a tight driver market, and the uncertainties of year-end demand, and therefore, have not updated our 2005 operating ratio expectation of between 91% and 91.5% for the year.”

 


 

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, July 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: 7843473.  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 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 certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “intends,” and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying 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)

 

June 30,
2005

 

December 31,
2004

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

1,752

 

$

—

 

Marketable securities

 

501

 

62

 

Receivables:

 

 

 

 

 

Trade, net

 

44,785

 

39,090

 

Other

 

11,094

 

8,372

 

Prepaid expenses and other

 

10,837

 

11,869

 

Deferred income taxes

 

4,181

 

5,856

 

 

 

 

 

 

 

Total current assets

 

73,150

 

65,249

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

Revenue equipment, buildings and land, office equipment and other

 

317,881

 

302,765

 

Accumulated depreciation

 

(91,190

)

(87,067

)

 

 

 

 

 

 

Net property and equipment

 

226,691

 

215,698

 

Other assets

 

7,581

 

7,127

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

307,422

 

$

288,074

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Checks issued in excess of cash balances

 

$

—

 

$

2,849

 

Accounts payable and accrued liabilities

 

20,288

 

16,871

 

Insurance and claims accruals

 

11,798

 

13,654

 

Current maturities of long-term debt

 

5,095

 

5,000

 

 

 

 

 

 

 

Total current liabilities

 

37,181

 

38,374

 

 

 

 

 

 

 

Long-term debt, less current maturities

 

29,629

 

25,257

 

Deferred income taxes

 

60,589

 

56,522

 

 

 

 

 

 

 

Total liabilities

 

127,399

 

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; 48,000,000 shares authorized; 14,352,252 shares, at June 30, 2005, and 14,307,027 shares, at December 31, 2004, issued and outstanding

 

144

 

143

 

Additional paid-in capital

 

70,634

 

70,111

 

Retained earnings

 

109,245

 

97,667

 

 

 

 

 

 

 

Total stockholders’ equity

 

180,023

 

167,921

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

307,422

 

$

288,074

 

 


 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months

 

Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

(In thousands, except per share information)

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUE

 

$

112,800

 

$

91,907

 

$

215,706

 

$

176,437

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

31,462

 

25,370

 

60,612

 

50,697

 

Purchased transportation

 

20,738

 

19,966

 

40,641

 

37,649

 

Fuel and fuel taxes

 

24,938

 

16,603

 

46,620

 

31,472

 

Supplies and maintenance

 

6,901

 

6,024

 

13,460

 

12,102

 

Depreciation

 

9,267

 

8,061

 

18,335

 

15,924

 

Operating taxes and licenses

 

1,671

 

1,613

 

3,317

 

3,184

 

Insurance and claims

 

4,466

 

4,056

 

8,878

 

8,461

 

Communications and utilities

 

826

 

746

 

1,652

 

1,547

 

Gain on disposition of revenue equipment

 

(1,231

)

(650

)

(2,110

)

(1,178

)

Other

 

2,515

 

2,236

 

4,786

 

4,108

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

101,553

 

84,025

 

196,191

 

163,966

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

11,247

 

7,882

 

19,515

 

12,471

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Interest expense

 

543

 

504

 

1,141

 

1,027

 

Interest income

 

(419

)

(386

)

(786

)

(727

)

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

11,123

 

7,764

 

19,160

 

12,171

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

4,360

 

2,950

 

7,582

 

4,625

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

6,763

 

$

4,814

 

$

11,578

 

$

7,546

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.47

 

$

0.34

 

$

0.81

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.46

 

$

0.33

 

$

0.79

 

$

0.52

 

 


 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

For period:

 

 

 

 

 

 

 

 

 

Average operating revenue per total mile

 

$

1.627

 

$

1.400

 

$

1.586

 

$

1.362

 

Average freight revenue per total mile (1)

 

$

1.385

 

$

1.283

 

$

1.370

 

$

1.272

 

Average miles per tractor(2)

 

29,072

 

29,703

 

56,739

 

58,721

 

Average operating revenue per tractor per week(2)

 

$

3,640

 

$

3,199

 

$

3,479

 

$

3,094

 

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

 

$

3,097

 

$

2,930

 

$

3,006

 

$

2,888

 

Average miles per trip

 

937

 

998

 

959

 

1,011

 

Non-revenue miles percentage(3)

 

7.2

%

6.7

%

7.2

%

6.6

%

Total miles – company employed drivers (in thousands)

 

51,881

 

45,633

 

100,501

 

89,847

 

Total miles – independent contractors (in thousands)

 

17,429

 

20,016

 

35,547

 

39,673

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2005, and June 30, 2004:

 

 

 

 

 

 

 

 

 

Total tractors(2)

 

2,367

 

2,176

 

 

 

 

 

Average age of company tractors (in years)

 

1.5

 

1.6

 

 

 

 

 

Total trailers

 

3,317

 

3,083

 

 

 

 

 

Average age of company trailers (in years)

 

3.1

 

3.9

 

 

 

 

 

Ratio of trailers to tractors(2)

 

1.4

 

1.4

 

 

 

 

 

Ratio of tractors to non-driver personnel(2)

 

5.3

 

5.3

 

 

 

 

 

 

 

 

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

 

(In thousands)

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

15,122

 

$

18,017

 

$

27,912

 

$

26,779

 

Net cash used for investing activities

 

11,633

 

21,042

 

27,672

 

41,236

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

14,332

 

14,016

 

14,321

 

13,928

 

Diluted

 

14,615

 

14,490

 

14,625

 

14,453

 

 

(1)          Excludes revenue from fuel surcharges and non-freight revenue.

 

(2)          Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 535 and 571 tractors as of June 30, 2005, and 2004, respectively.

 

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