EX-99.1 2 a10-2549_1ex99d1.htm EX-99.1

Exhibit 99.1

 

MARTEN TRANSPORT ANNOUNCES FOURTH QUARTER AND
YEAR END RESULTS

 

MONDOVI, Wis., January 26, 2010 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) announced today its financial and operating results for the quarter and year ended December 31, 2009.

 

For the fourth quarter of 2009, net income was $4.3 million, or 19 cents per diluted share, compared with $3.5 million, or 16 cents per diluted share, for the third quarter of 2009 and $5.8 million, or 27 cents per diluted share, for the fourth quarter of 2008.  For 2009, net income was $16.3 million, or 74 cents per diluted share, compared with $18.1 million, or 82 cents per diluted share, for 2008.

 

Operating revenue, consisting of revenue from truckload and logistics operations, decreased 8.3% to $128.7 million in the fourth quarter of 2009 from $140.4 million in the 2008 quarter and decreased 16.7% to $505.9 million in 2009 from $607.1 million in 2008. Operating revenue, net of fuel surcharge revenue, decreased 4.3% to $112.1 million in the 2009 quarter from $117.1 million in the 2008 quarter and decreased 5.1% to $450.1 million in 2009 from $474.5 million in 2008, primarily due to a decrease in average miles per tractor.  Operating revenue was adversely impacted by the exceptionally challenging operating environment with reduced freight demand, excess capacity and an unprecedented increase in renegotiated shipper bid packages during 2009 resulting in an unfavorable rate environment. The decreases in operating revenue were also due to fuel surcharge revenue decreasing to $16.6 million in the quarter from $23.2 million in the 2008 quarter and to $55.7 million in 2009 from $132.6 million in 2008, caused by significantly lower fuel prices in the 2009 periods.

 

Operating expenses decreased 7.3% to $120.7 million in the fourth quarter of 2009 from $130.1 million in the 2008 quarter and decreased 17.0% to $476.5 million in 2009 from $574.4 million in 2008. The operating expense decreases were primarily due to decreases in fuel and fuel taxes in 2009, and, to a lesser extent, the 2009 quarter. Fuel and fuel taxes decreased 12.2% to $27.2 million in the fourth quarter of 2009 from $31.0 million in the 2008 quarter and decreased 43.2% to $99.9 million in 2009 from $175.9 million in 2008. This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to a continued emphasis on controlling tractor and trailer fuel costs.

 

Marten’s operating ratio (operating expenses as a percentage of operating revenue) was 93.7% for the fourth quarter of 2009 compared with 92.7% for the same quarter of 2008 and improved to 94.2% for 2009 from 94.6% for 2008.

 

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our increased profitability from this year’s third quarter, despite a 5.3% increase in the average cost of fuel.  We were able to achieve this by improving our average truckload revenue per tractor per week and by our continued progress in managing our operating costs.  We believe that many of the benefits of our strategic initiatives, which include a transformation to a more regional network from our traditional long-haul business and further expansion into the temperature-controlled intermodal market, will be more pronounced as demand increases.  We believe that

 


 

this transformation of our services along with our competitive position, cost control emphasis, modern fleet and strong balance sheet position us well for growth.

 

“Our logistics business continued to expand at a rapid pace. Logistics revenue, net of intermodal fuel surcharges, grew to $27.9 million in the fourth quarter, an increase of 23.5% from $22.6 million for the 2008 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 14.4% to $103.2 million, compared with $90.2 million in 2008. Logistics revenue consists of revenue from our internal brokerage and intermodal operations and revenue associated with our 45% interest in MW Logistics, LLC, a third-party provider of logistics services.

 

“Lastly, I want to recognize the efforts of our employees, who remain one of Marten’s key strategic strengths and who solidly executed our business model within this difficult economy.”

 

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 the Company is well-positioned for growth. 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 the Company that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008. The Company undertakes 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

 

 

 

December 31,

 

December 31,

 

(In thousands, except share information)

 

2009

 

2008

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

5,410

 

$

2,395

 

Marketable securities

 

118

 

2,604

 

Receivables:

 

 

 

 

 

Trade, net

 

45,434

 

50,143

 

Other

 

4,382

 

7,385

 

Prepaid expenses and other

 

12,328

 

13,705

 

Deferred income taxes

 

5,172

 

6,140

 

Total current assets

 

72,844

 

82,372

 

Property and equipment:

 

 

 

 

 

Revenue equipment, buildings and land, office equipment and other

 

491,127

 

451,172

 

Accumulated depreciation

 

(149,670

)

(136,871

)

Net property and equipment

 

341,457

 

314,301

 

Other assets

 

537

 

770

 

TOTAL ASSETS

 

$

414,838

 

$

397,443

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Checks issued in excess of cash balances

 

$

1,671

 

$

1,807

 

Accounts payable and accrued liabilities

 

31,896

 

32,894

 

Insurance and claims accruals

 

19,222

 

21,386

 

Current maturities of long-term debt

 

1,428

 

1,428

 

Total current liabilities

 

54,217

 

57,515

 

Long-term debt, less current maturities

 

71

 

1,429

 

Deferred income taxes

 

85,643

 

81,048

 

Total liabilities

 

139,931

 

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 December 31, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding

 

219

 

218

 

Additional paid-in capital

 

76,477

 

75,305

 

Retained earnings

 

196,480

 

180,213

 

Total Marten Transport, Ltd. stockholders’ equity

 

273,176

 

255,736

 

Noncontrolling interest

 

1,731

 

1,715

 

Total stockholders’ equity

 

274,907

 

257,451

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

414,838

 

$

397,443

 

 


 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

 

 

 

Three Months

 

Year

 

 

 

Ended December 31,

 

Ended December 31,

 

(In thousands, except per share information)

 

2009

 

2008

 

2009

 

2008

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUE

 

$

128,720

 

$

140,354

 

$

505,874

 

$

607,099

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

32,634

 

38,294

 

138,752

 

152,616

 

Purchased transportation

 

28,700

 

24,761

 

106,577

 

113,175

 

Fuel and fuel taxes

 

27,180

 

30,963

 

99,898

 

175,892

 

Supplies and maintenance

 

9,217

 

10,080

 

38,223

 

38,378

 

Depreciation

 

12,978

 

13,001

 

53,069

 

49,705

 

Operating taxes and licenses

 

1,703

 

1,667

 

6,672

 

6,729

 

Insurance and claims

 

4,341

 

7,421

 

19,896

 

25,409

 

Communications and utilities

 

1,092

 

1,033

 

4,170

 

3,740

 

Gain on disposition of revenue equipment

 

(35

)

(225

)

(1,630

)

(2,664

)

Other

 

2,841

 

3,092

 

10,888

 

11,414

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

120,651

 

130,087

 

476,515

 

574,394

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

8,069

 

10,267

 

29,359

 

32,705

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Interest expense

 

36

 

110

 

169

 

1,142

 

Interest income

 

(23

)

(32

)

(137

)

(184

)

 

 

13

 

78

 

32

 

958

 

INCOME BEFORE INCOME TAXES

 

8,056

 

10,189

 

29,327

 

31,747

 

Less: Income before income taxes attributable to noncontrolling interest

 

230

 

198

 

584

 

1,120

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.

 

7,826

 

9,991

 

28,743

 

30,627

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

3,561

 

4,169

 

12,476

 

12,556

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

4,265

 

$

5,822

 

$

16,267

 

$

18,071

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.19

 

$

0.27

 

$

0.74

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.19

 

$

0.27

 

$

0.74

 

$

0.82

 

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

Three Months
Ended
December 31,

 

Dollar
Change
Three Months Ended
December 31,

 

Percentage
Change
Three Months
Ended
December 31,

 

(Dollars in thousands)

 

2009

 

2008

 

2009 vs. 2008

 

2009 vs. 2008

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

84,155

 

$

94,527

 

$

(10,372

)

(11.0

)%

Truckload fuel surcharge revenue

 

14,747

 

21,414

 

(6,667

)

(31.1

)

Total Truckload revenue

 

98,902

 

115,941

 

(17,039

)

(14.7

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

27,929

 

22,611

 

5,318

 

23.5

 

Intermodal fuel surcharge revenue

 

1,889

 

1,802

 

87

 

4.8

 

Total Logistics revenue

 

29,818

 

24,413

 

5,405

 

22.1

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

128,720

 

$

140,354

 

$

(11,634

)

(8.3

)%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

6,250

 

$

9,075

 

$

(2,825

)

(31.1

)%

Logistics

 

1,819

 

1,192

 

627

 

52.6

 

Total operating income

 

$

8,069

 

$

10,267

 

$

(2,198

)

(21.4

)%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

93.7

%

92.2

%

 

 

1.6

%

Logistics

 

93.9

 

95.1

 

 

 

(1.3

)

Consolidated operating ratio

 

93.7

%

92.7

%

 

 

1.1

%

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

Year
Ended
December 31,

 

Dollar
Change
Year
Ended
December 31,

 

Percentage
Change
Year
Ended
December 31,

 

(Dollars in thousands)

 

2009

 

2008

 

2009 vs. 2008

 

2009 vs. 2008

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

346,983

 

$

384,264

 

$

(37,281

)

(9.7

)%

Truckload fuel surcharge revenue

 

49,812

 

123,922

 

(74,110

)

(59.8

)

Total Truckload revenue

 

396,795

 

508,186

 

(111,391

)

(21.9

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

103,166

 

90,194

 

12,972

 

14.4

 

Intermodal fuel surcharge revenue

 

5,913

 

8,719

 

(2,806

)

(32.2

)

Total Logistics revenue

 

109,079

 

98,913

 

10,166

 

10.3

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

505,874

 

$

607,099

 

$

(101,225

)

(16.7

)%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

22,827

 

$

26,055

 

$

(3,228

)

(12.4

)%

Logistics

 

6,532

 

6,650

 

(118

)

(1.8

)

Total operating income

 

$

29,359

 

$

32,705

 

$

(3,346

)

(10.2

)%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

94.2

%

94.9

%

 

 

(0.7

)%

Logistics

 

94.0

 

93.3

 

 

 

0.8

 

Consolidated operating ratio

 

94.2

%

94.6

%

 

 

(0.4

)%

 


 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months
Ended December 31,

 

Year
Ended December 31,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Truckload Segment:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

98,902

 

$

115,941

 

$

396,795

 

$

508,186

 

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

 

$

2,841

 

$

3,058

 

$

2,822

 

$

3,124

 

Average tractors (1)

 

2,254

 

2,352

 

2,358

 

2,352

 

Average miles per trip

 

706

 

824

 

761

 

853

 

Non-revenue miles percentage(2)

 

9.2

%

8.6

%

9.2

%

8.1

%

Total miles — company-employed drivers (in thousands)

 

50,407

 

55,249

 

206,894

 

222,043

 

Total miles — independent contractors (in thousands)

 

5,307

 

6,023

 

23,415

 

32,081

 

 

 

 

 

 

 

 

 

 

 

Logistics Segment:

 

 

 

 

 

 

 

 

 

Brokerage:

 

 

 

 

 

 

 

 

 

Marten Transport

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

9,897

 

$

6,381

 

$

35,014

 

$

24,746

 

Loads

 

5,364

 

3,146

 

18,932

 

11,621

 

MWL

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

8,797

 

$

8,321

 

$

32,160

 

$

37,569

 

Loads

 

4,274

 

4,188

 

17,868

 

18,789

 

Intermodal:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

11,124

 

$

9,711

 

$

41,905

 

$

36,598

 

Loads

 

4,852

 

3,350

 

18,090

 

11,513

 

Average tractors

 

66

 

62

 

62

 

53

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2009, and December 31, 2008:

 

 

 

 

 

 

 

 

 

Total tractors(1)

 

2,264

 

2,376

 

 

 

 

 

Average age of company tractors (in years)

 

2.4

 

2.2

 

 

 

 

 

Total trailers

 

3,958

 

4,218

 

 

 

 

 

Average age of company trailers (in years)

 

3.4

 

3.1

 

 

 

 

 

Ratio of trailers to tractors(1)

 

1.7

 

1.8

 

 

 

 

 

 

 

 

Three Months
Ended December 31,

 

Year
Ended December 31,

 

(In thousands)

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

18,479

 

$

26,810

 

$

81,686

 

$

77,044

 

Net cash used for investing activities

 

21,055

 

22,694

 

77,164

 

37,602

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

21,885

 

21,830

 

21,870

 

21,787

 

Diluted

 

21,987

 

21,954

 

21,984

 

21,931

 

 

(1)

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 177 and 188 tractors as of December 31, 2009, and 2008, respectively.

 

 

(2)

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