EX-99.1 2 a10-14391_1ex99d1.htm EX-99.1

Exhibit 99.1

 

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS;

NET INCOME IMPROVES TO 23 CENTS PER DILUTED SHARE

 

MONDOVI, Wis., July 20, 2010 (PRNewswire) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 15.2% increase in net income to $5.2 million, or 23 cents per diluted share, for the second quarter ended June 30, 2010, from $4.5 million, or 20 cents per diluted share, for the second quarter of 2009.  The second-quarter earnings also improved sequentially from 2010 first-quarter net income of $3.9 million, or 18 cents per diluted share.  For the six-month period of 2010, net income increased to $9.1 million, or 41 cents per diluted share, compared with $8.5 million, or 39 cents per diluted share, for the same six-month period of 2009.

 

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $125.9 million in the second quarter of 2010 from $125.8 million in the 2009 quarter and increased to $251.7 million in the six-month period of 2010 from $247.8 million in the 2009 six-month period.  The increases were primarily due to increased fuel surcharge revenue, which reflects higher fuel prices, and increases in logistics revenue.  Operating revenue, net of fuel surcharges, decreased 5.6% to $106.9 million in the 2010 quarter from $113.2 million in the 2009 quarter and decreased 4.0% to $215.4 million in the 2010 six-month period from $224.4 million in the 2009 six-month period.  Operating revenue included fuel surcharges of $19.0 million for the second quarter of 2010, compared with $12.6 million in the 2009 quarter and $36.3 million for the 2010 six-month period, compared with $23.4 million for the 2009 six-month period.

 

The operating ratio (operating expenses as a percentage of operating revenue) improved to 92.7% for the second quarter of 2010 from 94.0% for the second quarter of 2009 and improved to 93.6% for the 2010 six-month period from 94.0% for the 2009 six-month period.  Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 91.4% for the second quarter of 2010 from 93.4% for the second quarter of 2009 and improved to 92.5% for the 2010 six-month period from 93.4% for the 2009 six-month period.

 

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our solid results.  We continue to benefit from the advances in our transformation into a multi-faceted business model, focusing on expansion of our regional operations throughout the country, the growth of our logistics business, and our fuel efficiency and cost control measures.

 

“These strategic initiatives have driven our positive results this year.  As evidence of the success of our regional operations, our average truckload revenue, net of fuel surcharges, per tractor per week increased by 4.7% in the second quarter over last year’s second quarter and by 5.5% over this year’s first quarter.  We have increased our regional operations to 40.4% of our truckload fleet as of June 30, 2010 from 20.4% as of a year earlier.  Our logistics revenue continues to be an important factor in our growth, providing an expanding percentage of our revenue.  In the second quarter of 2010, our logistics revenue, net of intermodal fuel surcharges, grew $1.1 million over the 2009 quarter and, for the 2010 six-month period, grew $6.0 million over the

 


 

2009 six-month period.  Additionally, we continue to decrease operating expenses in the face of increasing fuel prices through our aggressive cost controls.

 

“We are confident that our ongoing transformation into a multi-faceted business model will continue to work to our advantage regardless of the economic environment.”

 

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’s transformation into a multi-faceted business model will continue to work to its advantage regardless of the economic environment. 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, 2009. 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

(Unaudited)

 

 

 

June 30,

 

December 31,

 

(In thousands, except share information)

 

2010

 

2009

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,563

 

$

5,410

 

Marketable securities

 

138

 

118

 

Receivables:

 

 

 

 

 

Trade, net

 

49,644

 

45,434

 

Other

 

9,701

 

4,382

 

Prepaid expenses and other

 

10,878

 

12,328

 

Deferred income taxes

 

5,361

 

5,172

 

Total current assets

 

79,285

 

72,844

 

Property and equipment:

 

 

 

 

 

Revenue equipment, buildings and land, office equipment and other

 

494,412

 

491,127

 

Accumulated depreciation

 

(136,443

)

(149,670

)

Net property and equipment

 

357,969

 

341,457

 

Other assets

 

526

 

537

 

TOTAL ASSETS

 

$

437,780

 

$

414,838

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Checks issued in excess of cash balances

 

$

693

 

$

1,671

 

Accounts payable and accrued liabilities

 

36,066

 

31,896

 

Insurance and claims accruals

 

18,219

 

19,222

 

Current maturities of long-term debt

 

—

 

1,428

 

Total current liabilities

 

54,978

 

54,217

 

Long-term debt, less current maturities

 

13,521

 

71

 

Deferred income taxes

 

84,141

 

85,643

 

Total liabilities

 

152,640

 

139,931

 

 

 

 

 

 

 

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; 21,934,232 shares at June 30, 2010, and 21,885,073 shares at December 31, 2009, issued and outstanding

 

219

 

219

 

Additional paid-in capital

 

77,444

 

76,477

 

Retained earnings

 

205,530

 

196,480

 

Total Marten Transport, Ltd. stockholders’ equity

 

283,193

 

273,176

 

Noncontrolling interest

 

1,947

 

1,731

 

Total stockholders’ equity

 

285,140

 

274,907

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

437,780

 

$

414,838

 

 


 

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)

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUE

 

$

125,862

 

$

125,804

 

$

251,674

 

$

247,759

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

31,984

 

35,759

 

64,386

 

71,861

 

Purchased transportation

 

26,346

 

25,933

 

54,105

 

48,685

 

Fuel and fuel taxes

 

28,167

 

24,272

 

55,760

 

46,138

 

Supplies and maintenance

 

8,597

 

9,558

 

17,607

 

19,376

 

Depreciation

 

12,612

 

13,386

 

25,649

 

26,819

 

Operating taxes and licenses

 

1,574

 

1,702

 

3,079

 

3,378

 

Insurance and claims

 

3,984

 

4,678

 

7,836

 

10,199

 

Communications and utilities

 

1,054

 

1,002

 

1,867

 

2,067

 

Gain on disposition of revenue equipment

 

(429

)

(528

)

(628

)

(999

)

Other

 

2,780

 

2,539

 

5,786

 

5,481

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

116,669

 

118,301

 

235,447

 

233,005

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

9,193

 

7,503

 

16,227

 

14,754

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST EXPENSE (INCOME)

 

26

 

4

 

(80

)

35

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

9,167

 

7,499

 

16,307

 

14,719

 

Less: Income before income taxes attributable to noncontrolling interest

 

1

 

145

 

57

 

261

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.

 

9,166

 

7,354

 

16,250

 

14,458

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

4,008

 

2,877

 

7,200

 

5,928

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

5,158

 

$

4,477

 

$

9,050

 

$

8,530

 

 

 

 

 

 

 

 

 

 

 

BASIC EARNINGS PER COMMON SHARE

 

$

0.24

 

$

0.20

 

$

0.41

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

DILUTED EARNINGS PER COMMON SHARE

 

$

0.23

 

$

0.20

 

$

0.41

 

$

0.39

 

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

 

 

 

 

Dollar

 

Percentage

 

 

 

 

 

 

 

Change

 

Change

 

 

 

Three Months

 

Three Months

 

Three Months

 

 

 

Ended

 

Ended

 

Ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

(Dollars in thousands)

 

2010

 

2009

 

2010 vs. 2009

 

2010 vs. 2009

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

80,566

 

$

87,969

 

$

(7,403

)

(8.4

)%

Truckload fuel surcharge revenue

 

16,825

 

11,286

 

5,539

 

49.1

 

Total Truckload revenue

 

97,391

 

99,255

 

(1,864

)

(1.9

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

26,337

 

25,225

 

1,112

 

4.4

 

Intermodal fuel surcharge revenue

 

2,134

 

1,324

 

810

 

61.2

 

Total Logistics revenue

 

28,471

 

26,549

 

1,922

 

7.2

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

125,862

 

$

125,804

 

$

58

 

—

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

8,208

 

$

5,697

 

$

2,511

 

44.1

%

Logistics

 

985

 

1,806

 

(821

)

(45.5

)

Total operating income

 

$

9,193

 

$

7,503

 

$

1,690

 

22.5

%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

91.6

%

94.3

%

 

 

(2.9

)%

Logistics

 

96.5

 

93.2

 

 

 

3.5

 

Consolidated operating ratio

 

92.7

%

94.0

%

 

 

(1.4

)%

 


 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

 

 

 

 

 

 

Dollar

 

Percentage

 

 

 

 

 

 

 

Change

 

Change

 

 

 

Six Months

 

Six Months

 

Six Months

 

 

 

Ended

 

Ended

 

Ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

(Dollars in thousands)

 

2010

 

2009

 

2010 vs. 2009

 

2010 vs. 2009

 

Operating revenue:

 

 

 

 

 

 

 

 

 

Truckload revenue, net of fuel surcharge revenue

 

$

161,486

 

$

176,504

 

$

(15,018

)

(8.5

)%

Truckload fuel surcharge revenue

 

32,131

 

21,123

 

11,008

 

52.1

 

Total Truckload revenue

 

193,617

 

197,627

 

(4,010

)

(2.0

)

 

 

 

 

 

 

 

 

 

 

Logistics revenue, net of intermodal fuel surcharge revenue

 

53,907

 

47,875

 

6,032

 

12.6

 

Intermodal fuel surcharge revenue

 

4,150

 

2,257

 

1,893

 

83.9

 

Total Logistics revenue

 

58,057

 

50,132

 

7,925

 

15.8

 

 

 

 

 

 

 

 

 

 

 

Total operating revenue

 

$

251,674

 

$

247,759

 

$

3,915

 

1.6

%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Truckload

 

$

13,433

 

$

11,530

 

$

1,903

 

16.5

%

Logistics

 

2,794

 

3,224

 

(430

)

(13.3

)

Total operating income

 

$

16,227

 

$

14,754

 

$

1,473

 

10.0

%

 

 

 

 

 

 

 

 

 

 

Operating ratio:

 

 

 

 

 

 

 

 

 

Truckload

 

93.1

%

94.2

%

 

 

(1.2

)%

Logistics

 

95.2

 

93.6

 

 

 

1.7

 

Consolidated operating ratio

 

93.6

%

94.0

%

 

 

(0.4

)%

 


 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months

 

Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

Truckload Segment:

 

 

 

 

 

 

 

 

 

Total Truckload revenue (in thousands)

 

$

97,391

 

$

99,255

 

$

193,617

 

$

197,627

 

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

 

$

2,971

 

$

2,838

 

$

2,891

 

$

2,863

 

Average tractors(1)

 

2,086

 

2,384

 

2,160

 

2,385

 

Average miles per trip

 

657

 

796

 

673

 

810

 

Non-revenue miles percentage(2)

 

9.2

%

9.3

%

9.2

%

9.1

%

Total miles – company-employed drivers (in thousands)

 

47,763

 

52,557

 

96,707

 

104,669

 

Total miles – independent contractors (in thousands)

 

3,847

 

6,045

 

8,347

 

11,988

 

 

 

 

 

 

 

 

 

 

 

Logistics Segment:

 

 

 

 

 

 

 

 

 

Total Logistics revenue (in thousands)

 

$

28,471

 

$

26,549

 

$

58,057

 

$

50,132

 

Brokerage:

 

 

 

 

 

 

 

 

 

Marten Transport

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

9,271

 

$

8,072

 

$

19,664

 

$

15,321

 

Loads

 

5,193

 

4,298

 

10,795

 

8,152

 

MWL

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

7,968

 

$

7,787

 

$

16,136

 

$

14,992

 

Loads

 

4,690

 

5,067

 

8,969

 

8,819

 

Intermodal:

 

 

 

 

 

 

 

 

 

Revenue (in thousands)

 

$

11,232

 

$

10,690

 

$

22,257

 

$

19,819

 

Loads

 

4,746

 

4,656

 

9,423

 

8,309

 

Average tractors

 

65

 

64

 

63

 

59

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2010 and June 30, 2009:

 

 

 

 

 

 

 

 

 

Total tractors(1)

 

2,066

 

2,492

 

 

 

 

 

Average age of company tractors (in years)

 

2.2

 

2.3

 

 

 

 

 

Total trailers

 

3,853

 

4,142

 

 

 

 

 

Average age of company trailers (in years)

 

3.3

 

3.3

 

 

 

 

 

Ratio of trailers to tractors(1)

 

1.9

 

1.7

 

 

 

 

 

 

 

 

Three Months

 

Six Months

 

 

 

Ended June 30,

 

Ended June 30,

 

(In thousands)

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

5,291

 

$

15,262

 

$

23,968

 

$

42,612

 

Net cash used for investing activities

 

10,421

 

8,818

 

37,487

 

35,299

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

21,929

 

21,871

 

21,913

 

21,855

 

Diluted

 

22,033

 

21,993

 

22,012

 

21,978

 

 

(1)          Includes tractors driven by both company-employed drivers and independent contractors.  Independent contractors provided 117 and 221 tractors as of June 30, 2010, and 2009, respectively.

 

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