EX-99.1 2 a09-19440_1ex99d1.htm EX-99.1

Exhibit 99.1

 

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS;

NET INCOME INCREASES 29.1%

 

MONDOVI, Wis., July 21, 2009 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) announced today its financial and operating results for the quarter ended June 30, 2009.

 

For the second quarter of 2009, net income increased 29.1% to $4.5 million, or 20 cents per diluted share, compared with $3.5 million, or 16 cents per diluted share, for the same quarter of 2008.  For the six-month period of 2009, net income increased 39.3% to $8.5 million, or 39 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same six-month period of 2008.

 

Operating revenue, consisting of revenue from truckload and logistics operations, decreased 21.4% to $125.8 million in the second quarter of 2009 from $160.0 million in the 2008 quarter and decreased 18.3% to $247.8 million in the six-month period of 2009 from $303.4 million in the 2008 six-month period.  The decreases were primarily due to fuel surcharge revenue decreasing to $12.6 million in the quarter from $40.1 million in the 2008 quarter and to $23.4 million in the 2009 six-month period from $68.1 million in the 2008 six-month period, caused by significantly lower fuel prices in the 2009 periods.  Operating revenue, net of fuel surcharge revenue, decreased 5.6% to $113.2 million in the 2009 quarter from $119.9 million in the 2008 quarter and decreased 4.6% to $224.4 million in the 2009 six-month period from $235.2 million in the 2008 six-month period, due to a decrease in average miles per tractor.

 

Operating expenses decreased 23.0% to $118.3 million in the second quarter of 2009 from $153.6 million in the 2008 quarter and decreased 20.1% to $233.0 million in the 2009 six-month period from $291.5 million in the 2008 six-month period.  The operating expense decreases were primarily due to decreases in fuel and fuel taxes and purchased transportation over both periods.  Fuel and fuel taxes decreased 53.1% to $24.3 million in the second quarter of 2009 from $51.8 million in the 2008 quarter and decreased 50.8% to $46.1 million in the 2009 six-month period from $93.7 million in the 2008 six-month period.  This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to our continued emphasis on controlling tractor and trailer fuel costs.  Purchased transportation decreased 17.1% to $25.9 million in the second quarter of 2009 from $31.3 million in the second quarter of 2008 and decreased 17.9% to $48.7 million in the 2009 six-month period from $59.3 million in the 2008 six-month period, primarily as a result of decreases in miles driven by, and in the amount of fuel surcharges paid to, independent contractors.

 

Additionally, insurance and claims expense decreased by $2.0 million from the second quarter of 2008, due to reduced physical damage claims related to our tractors and trailers and decreases in the cost of self-insured auto liability and workers’ compensation accident claims.

 

Consistent with the growth in our net income, our net cash from operating activities increased to $15.1 million for the second quarter of 2009 from $7.0 million in the 2008 quarter and increased to $42.5 million for the 2009 six-month period from $21.7 million in the 2008 six-month period.

 


 

Chairman and Chief Executive Officer Randolph L. Marten said, “Despite the ongoing difficult freight environment, our ability to continue to produce positive results was clearly demonstrated in the second quarter.  We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls.  Most notably, our expansion of regional operations throughout the country, our continued growth of our logistics business, and our fuel efficiency initiatives have helped us improve our results.

 

“Our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.0% for each of the second quarter and six-month periods of 2009 from 96.0% for the second quarter of 2008 and 96.1% for the 2008 six-month period.

 

“I want to especially recognize the efforts of all our employees, who remain one of our key strategic strengths.  Their smart, hard work and dedication to Marten Transport has continued to show tangible results in our ability to control costs and remain profitable in this difficult economy without reducing our work force or cutting our employees’ pay or benefits.  With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, we believe that we are well-positioned for an economic recovery.”

 

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States.  Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment.  Marten offers service in the United States, Canada and Mexico, concentrating on expedited movements for high-volume customers.  Marten’s common stock is traded on the Nasdaq Global Select 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, including that we are well-positioned for an economic recovery.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially from those expressed in such forward-looking statements.  Important factors known to us that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008.  We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

CONTACTS: Tim Kohl, President, and Jim Hinnendael, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

 


 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

June 30,

 

December 31,

 

(In thousands, except share information)

 

2009

 

2008

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

7,984

 

$

2,395

 

Marketable securities

 

8,710

 

2,604

 

Receivables:

 

 

 

 

 

Trade, net

 

48,760

 

50,143

 

Other

 

7,913

 

7,385

 

Prepaid expenses and other

 

11,248

 

13,705

 

Deferred income taxes

 

7,300

 

6,140

 

Total current assets

 

91,915

 

82,372

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

Revenue equipment, buildings and land, office equipment and other

 

465,596

 

451,172

 

Accumulated depreciation

 

(147,925

)

(136,871

)

Net property and equipment

 

317,671

 

314,301

 

Other assets

 

595

 

770

 

TOTAL ASSETS

 

$

410,181

 

$

397,443

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Checks issued in excess of cash balances

 

$

1,042

 

$

1,807

 

Accounts payable and accrued liabilities

 

32,593

 

32,894

 

Insurance and claims accruals

 

22,041

 

21,386

 

Current maturities of long-term debt

 

1,428

 

1,428

 

Total current liabilities

 

57,104

 

57,515

 

Long-term debt, less current maturities

 

—

 

1,429

 

Deferred income taxes

 

85,987

 

81,048

 

Total liabilities

 

143,091

 

139,992

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Marten Transport, Ltd. 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; 21,885,073 shares at June 30, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding

 

219

 

218

 

Additional paid-in capital

 

76,236

 

75,305

 

Retained earnings

 

188,743

 

180,213

 

Total Marten Transport, Ltd. stockholders’ equity

 

265,198

 

255,736

 

Noncontrolling interest

 

1,892

 

1,715

 

Total stockholders’ equity

 

267,090

 

257,451

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

410,181

 

$

397,443

 

 


 

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)

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUE

 

$

125,804

 

$

159,994

 

$

247,759

 

$

303,368

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

35,759

 

37,755

 

71,861

 

74,437

 

Purchased transportation

 

25,933

 

31,285

 

48,685

 

59,289

 

Fuel and fuel taxes

 

24,272

 

51,785

 

46,138

 

93,714

 

Supplies and maintenance

 

9,558

 

9,378

 

19,376

 

18,710

 

Depreciation

 

13,386

 

12,346

 

26,819

 

24,308

 

Operating taxes and licenses

 

1,702

 

1,762

 

3,378

 

3,474

 

Insurance and claims

 

4,678

 

6,653

 

10,199

 

12,218

 

Communications and utilities

 

1,002

 

909

 

2,067

 

1,870

 

Gain on disposition of revenue equipment

 

(528

)

(927

)

(999

)

(1,986

)

Other

 

2,539

 

2,620

 

5,481

 

5,424

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

118,301

 

153,566

 

233,005

 

291,458

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

7,503

 

6,428

 

14,754

 

11,910

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Interest expense

 

34

 

302

 

98

 

836

 

Interest income

 

(30

)

(37

)

(63

)

(114

)

 

 

4

 

265

 

35

 

722

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

7,499

 

6,163

 

14,719

 

11,188

 

Less: Income before income taxes attributable to noncontrolling interest

 

145

 

225

 

261

 

605

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.

 

7,354

 

5,938

 

14,458

 

10,583

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

2,877

 

2,469

 

5,928

 

4,461

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

4,477

 

$

3,469

 

$

8,530

 

$

6,122

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.20

 

$

0.16

 

$

0.39

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.20

 

$

0.16

 

$

0.39

 

$

0.28

 

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

Three Months
Ended
June 30,

 

Dollar
Change
Three Months
Ended
June 30,

 

Percentage
Change
Three Months
Ended
June 30,

 

(Dollars in thousands)

 

2009

 

2008

 

2009 vs. 2008

 

2009 vs. 2008

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

87,969

 

$

96,506

 

$

(8,537

)

(8.8

)%

Truckload fuel surcharge revenue

 

11,286

 

37,568

 

(26,282

)

(70.0

)

Total Truckload revenue

 

99,255

 

134,074

 

(34,819

)

(26.0

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

25,225

 

23,366

 

1,859

 

8.0

 

Intermodal fuel surcharge revenue

 

1,324

 

2,554

 

(1,230

)

(48.2

)

Total Logistics revenue

 

26,549

 

25,920

 

629

 

2.4

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

125,804

 

$

159,994

 

$

(34,190

)

(21.4

)%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

5,697

 

$

4,634

 

$

1,063

 

22.9

%

Logistics

 

1,806

 

1,794

 

12

 

0.7

 

Total operating income

 

$

7,503

 

$

6,428

 

$

1,075

 

16.7

%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

94.3

%

96.5

%

 

 

2.3

%

Logistics

 

93.2

 

93.1

 

 

 

(0.1

)

Consolidated operating ratio

 

94.0

%

96.0

%

 

 

2.1

%

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

Six Months
Ended
June 30,

 

Dollar
Change
Six Months Ended
June 30,

 

Percentage
Change
Six Months
Ended
June 30,

 

(Dollars in thousands)

 

2009

 

2008

 

2009 vs. 2008

 

2009 vs. 2008

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

176,504

 

$

191,137

 

$

(14,633

)

(7.7

)%

Truckload fuel surcharge revenue

 

21,123

 

64,066

 

(42,943

)

(67.0

)

Total Truckload revenue

 

197,627

 

255,203

 

(57,576

)

(22.6

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

47,875

 

44,111

 

3,764

 

8.5

 

Intermodal fuel surcharge revenue

 

2,257

 

4,054

 

(1,797

)

(44.3

)

Total Logistics revenue

 

50,132

 

48,165

 

1,967

 

4.1

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

247,759

 

$

303,368

 

$

(55,609

)

(18.3

)%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

11,530

 

$

8,361

 

$

3,169

 

37.9

%

Logistics

 

3,224

 

3,549

 

(325

)

(9.2

)

Total operating income

 

$

14,754

 

$

11,910

 

$

2,844

 

23.9

%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

94.2

%

96.7

%

 

 

2.6

%

Logistics

 

93.6

 

92.6

 

 

 

(1.1

)

Consolidated operating ratio

 

94.0

%

96.1

%

 

 

2.2

%

 


 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Truckload Segment:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

99,255

 

$

134,074

 

$

197,627

 

$

255,203

 

Average truckload revenue, net of fuel surcharges, per total mile

 

$

1.501

 

$

1.497

 

$

1.513

 

$

1.488

 

Average miles per tractor(1)

 

24,581

 

27,162

 

48,922

 

54,245

 

Average truckload revenue, net of fuel surcharges, per tractor per week(1)

 

$

2,838

 

$

3,128

 

$

2,863

 

$

3,105

 

Average tractors (1)

 

2,384

 

2,373

 

2,385

 

2,368

 

Average miles per trip

 

796

 

865

 

810

 

878

 

Non-revenue miles percentage(2)

 

9.3

%

7.7

%

9.1

%

7.9

%

Total miles – company-employed drivers (in thousands)

 

52,557

 

55,587

 

104,669

 

109,897

 

Total miles – independent contractors (in thousands)

 

6,045

 

8,877

 

11,988

 

18,548

 

 

 

 

 

 

 

 

 

 

 

Logistics Segment:

 

 

 

 

 

 

 

 

 

Brokerage:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

15,859

 

$

16,487

 

$

30,313

 

$

31,711

 

Loads

 

9,365

 

7,978

 

16,971

 

15,591

 

Intermodal:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

10,690

 

$

9,433

 

$

19,819

 

$

16,454

 

Loads

 

4,656

 

2,773

 

8,309

 

4,926

 

Average tractors

 

64

 

51

 

59

 

45

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2009, and June 30, 2008:

 

 

 

 

 

 

 

 

 

Total tractors(1)

 

2,492

 

2,392

 

 

 

 

 

Average age of company tractors (in years)

 

2.3

 

2.3

 

 

 

 

 

Total trailers

 

4,142

 

4,086

 

 

 

 

 

Average age of company trailers (in years)

 

3.3

 

2.7

 

 

 

 

 

Ratio of trailers to tractors(1)

 

1.7

 

1.7

 

 

 

 

 

Ratio of tractors to non-driver personnel(1)

 

4.4

 

4.8

 

 

 

 

 

 

 

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

 

(In thousands)

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

 15,112

 

$

 6,979

 

$

 42,528

 

$

 21,718

 

Net cash (used for) provided by investing activities

 

(8,818

)

3,637

 

(35,299

)

2,770

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

21,871

 

21,764

 

21,855

 

21,760

 

Diluted

 

21,993

 

21,918

 

21,978

 

21,912

 

 

(1)

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 221 and 246 tractors as of June 30, 2009, and 2008, respectively.

 

 

(2)

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