EX-99 2 ex99-1.htm EXHIBIT 99.1 Marten Transport Announces Fourth Quarter and Year End Results

Exhibit 99.1

 

Marten Transport Announces Fourth Quarter and Year End Results

 

Reports Highest Net Income in Company History on 10.6% Increase in 2013

 

MONDOVI, Wis., Jan. 21, 2014 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported the highest net income for any year in its history. For the year ended December 31, 2013, net income improved 10.6% to a record $30.1 million, or 90 cents per diluted share, from $27.3 million, or 82 cents per diluted share, in 2012. For the fourth quarter of 2013, net income decreased to $7.3 million, or 22 cents per diluted share, from $7.7 million, or 23 cents per diluted share, in the fourth quarter of 2012.

 

Operating revenue, consisting of revenue from truckload and logistics operations, decreased slightly to $166.2 million in the fourth quarter of 2013 from $166.4 million in the fourth quarter of 2012, and increased to $659.2 million in 2013 from $638.5 million in 2012. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 5.6% to $134.5 million in the 2013 quarter from $127.4 million in the 2012 quarter, and increased 7.8% to $524.8 million in 2013 from $486.7 million in 2012. Fuel surcharge revenue decreased to $31.7 million in the fourth quarter of 2013 from $32.2 million in the 2012 quarter, and increased to $127.7 million in 2013 from $121.1 million in 2012. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the fourth quarter of 2013 compared with $6.7 million in the 2012 quarter. MWL revenue included in 2013 decreased by $24.0 million from 2012 with the deconsolidation.

 

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.6% in the fourth quarter of 2013, compared to the 90.2% ratio achieved in the fourth quarter of 2012. The ratio improved to 90.2% in 2013 from 91.1% in 2012. The ratio in 2013 was the Company's best since 2005 and the fourth consecutive year with improved results.

 

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased to announce our highest net income for any year in our history. These results were earned in a challenging rate environment with significant industry headwinds including higher equipment and maintenance costs, pay inflation to drivers within a contracting driver market and revised hours of service regulations. We continued to grow our business with our total truckload, intermodal and broker loads up 7.5% in the fourth quarter of 2013 and up 10.2% in 2013 over the prior year's periods – and expect continued growth in 2014, principally with our dedicated truckload, intermodal and Mexico operations. We also continue to drive improvements in revenue per tractor, which increased 3.9% in the fourth quarter of 2013 and 3.8% in 2013 over the prior year's periods. We believe that we are better positioned than ever for future performance growth with our diverse service infrastructure and the dedicated people who have built it with their smart, hard work.

 

"We are also pleased to have received a 2013 SmartWay Excellence Award from the U.S. Environmental Protection Agency. The Excellence Award is reserved for the top one percent of SmartWay Partners and recognizes industry leadership in freight supply chain environmental performance and energy efficiency."

 

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.

 

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.

 

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. 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, 2012. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 
 
 

  

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

 

   

December 31,

    

December 31,

  
   

2013

    

2012

  

(In thousands, except share information)

                
                 

ASSETS

                

Current assets:

                

Cash and cash equivalents

   $ 13,650     $ 3,473  

Receivables:

                

Trade, net

     70,869       66,239  

Other

     4,142       7,177  

Prepaid expenses and other

     15,274       15,490  

Deferred income taxes

     3,415       3,155  

Total current assets

     107,350       95,534  

Property and equipment:

                

Revenue equipment, buildings and land, office equipment and other

     579,925       551,136  

Accumulated depreciation

     (164,916 )     (156,660 )

Net property and equipment

     415,009       394,476  

Other assets

     3,443       613  

TOTAL ASSETS

   $ 525,802     $ 490,623  
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

                

Current liabilities:

                

Accounts payable and accrued liabilities

   $ 38,624     $ 33,062  

Insurance and claims accruals

     14,404       13,838  

Total current liabilities

     53,028       46,900  

Long-term debt, less current maturities

     --       2,726  

Deferred income taxes

     113,637       109,074  

Total liabilities

     166,665       158,700  
                 

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; 33,301,048 shares at December 31, 2013, and 33,164,428 shares at December 31, 2012, issued and outstanding

     333       332  

Additional paid-in capital

     85,077       82,679  

Retained earnings

     273,727       246,349  

Total Marten Transport, Ltd. stockholders' equity

     359,137       329,360  

Noncontrolling interest

     --       2,563  

Total stockholders' equity

     359,137       331,923  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

   $ 525,802     $ 490,623  

 

 

 
 
 

 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited) 

 

   

Three Months

    

Year

  
   

Ended December 31,

   

Ended December 31,

 

(In thousands, except per share information)

  

2013

    

2012

    

2013

    

2012

  
                                 

OPERATING REVENUE

   $ 166,224     $ 166,412     $ 659,214     $ 638,456  
                                 

OPERATING EXPENSES (INCOME):

                                

Salaries, wages and benefits

     43,534       43,221       171,314       163,242  

Purchased transportation

     30,987       32,248       123,436       124,269  

Fuel and fuel taxes

     39,804       41,937       163,270       163,596  

Supplies and maintenance

     10,755       9,961       40,582       39,919  

Depreciation

     16,321       15,790       64,476       60,904  

Operating taxes and licenses

     1,704       1,848       7,110       6,741  

Insurance and claims

     6,321       4,902       23,681       20,718  

Communications and utilities

     1,362       1,302       5,212       4,939  

Gain on disposition of revenue equipment

     (848 )     (1,249 )     (5,972 )     (5,302 )

Other

     3,601       3,241       14,110       13,577  
                                 

Total operating expenses

     153,541       153,201       607,219       592,603  
                                 

OPERATING INCOME

     12,683       13,211       51,995       45,853  
                                 

OTHER

     (94 )     (8 )     (392 )     (48 )
                                 

INCOME BEFORE INCOME TAXES

     12,777       13,219       52,387       45,901  

Less: Income before income taxes attributable to noncontrolling interest

     --       30       84       497  
                                 

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.

     12,777       13,189       52,303       45,404  
                                 

PROVISION FOR INCOME TAXES

     5,476       5,470       22,156       18,137  
                                 

NET INCOME

   $ 7,301     $ 7,719     $ 30,147     $ 27,267  
                                 

BASIC EARNINGS PER COMMON SHARE

   $ 0.22     $ 0.23     $ 0.91     $ 0.82  
                                 

DILUTED EARNINGS PER COMMON SHARE

   $ 0.22     $ 0.23     $ 0.90     $ 0.82  
                                 

DIVIDENDS PAID PER COMMON SHARE

   $ 0.025     $ 0.517     $ 0.083     $ 0.563  

 

 
 
 

 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

   

Three Months

    

Dollar

Change Three Months

   

Percentage

Change

Three Months

  
   

Ended

    

Ended

    

Ended

  
   

December 31,

    

December 31,

   

December 31,

  

(Dollars in thousands)

  

2013

    

2012

    

2013 vs. 2012

   

2013 vs. 2012

  

Operating revenue:

                                

Truckload revenue, net of fuel surcharge revenue

   $ 102,218     $ 98,099     $ 4,119       4.2 %

Truckload fuel surcharge revenue

     26,195       27,635       (1,440 )     (5.2 )

Total Truckload revenue

     128,413       125,734       2,679       2.1  
                                 

Logistics revenue, net of intermodal fuel surcharge revenue

     32,308       36,071       (3,763 )     (10.4 )

Intermodal fuel surcharge revenue

     5,503       4,607       896       19.4  

Total Logistics revenue

     37,811       40,678       (2,867 )     (7.0 )
                                 

Total operating revenue

   $ 166,224     $ 166,412     $ (188 )     (0.1 )%
                                 

Operating income:

                                

Truckload

   $ 11,222     $ 10,766     $ 456       4.2 %

Logistics

     1,461       2,445       (984 )     (40.2 )

Total operating income

   $ 12,683     $ 13,211     $ (528 )     (4.0 )%
                                 

Operating ratio:

                                

Truckload

     91.3 %     91.4 %                

Logistics

     96.1       94.0                  

Consolidated operating ratio

     92.4 %     92.1 %                

 

 

 
 
 

 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

                   

Dollar

   

Percentage

  
                   

Change

   

Change

  
   

Year

   

Year

   

Year

 
   

Ended

   

Ended

   

Ended

 
   

December 31,

   

December 31,

   

December 31,

 

(Dollars in thousands)

  

2013

    

2012

    

2013 vs. 2012

   

2013 vs. 2012

 

Operating revenue:

                                

Truckload revenue, net of fuel surcharge revenue

   $ 400,324     $ 378,383     $ 21,941       5.8 %

Truckload fuel surcharge revenue

     106,955       104,940       2,015       1.9  

Total Truckload revenue

     507,279       483,323       23,956       5.0  
                                 

Logistics revenue, net of intermodal fuel surcharge revenue

     131,186       138,960       (7,774 )     (5.6 )

Intermodal fuel surcharge revenue

     20,749       16,173       4,576       28.3  

Total Logistics revenue

     151,935       155,133       (3,198 )     (2.1 )
                                 

Total operating revenue

   $ 659,214     $ 638,456     $ 20,758       3.3 %
                                 

Operating income:

                                

Truckload

   $ 44,865     $ 36,805     $ 8,060       21.9 %

Logistics

     7,130       9,048       (1,918 )     (21.2 )

Total operating income

   $ 51,995     $ 45,853     $ 6,142       13.4 %
                                 

Operating ratio:

                                

Truckload

     91.2 %     92.4 %                

Logistics

     95.3       94.2                  

Consolidated operating ratio

     92.1 %     92.8 %                

 

 

 
 
 

 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited) 

 

   

Three Months

    

Year

  
   

Ended December 31,

    

Ended December 31,

  
   

2013

    

2012

    

2013

    

2012

  

Truckload Segment:

                                

Total Truckload revenue (in thousands)

   $ 128,413     $ 125,734     $ 507,279     $ 483,323  

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

   $ 3,522     $ 3,389     $ 3,465     $ 3,339  

Average tractors(1)

     2,209       2,202       2,216       2,167  

Average miles per trip

     596       623       603       624  

Non-revenue miles percentage(2)

     9.4 %     11.4 %     10.3 %     11.3 %

Total miles – company-employed drivers (in thousands)

     55,982       56,042       225,194       215,742  

Total miles – independent contractors (in thousands)

     1,315       897       4,974       4,583  
                                 

Logistics Segment:

                                

Total Logistics revenue (in thousands)

   $ 37,811     $ 40,678     $ 151,935     $ 155,133  

Brokerage:

                                

Marten Transport

                                

Revenue (in thousands)

   $ 12,850     $ 13,421     $ 52,746     $ 53,161  

Loads

     8,673       8,403       35,140       32,533  

MWL

                                

Revenue (in thousands)

   $ --     $ 6,742     $ 6,676     $ 30,648  

Loads

     --       3,641       3,758       16,120  

Intermodal:

                                

Revenue (in thousands)

   $ 24,961     $ 20,515     $ 92,513     $ 71,324  

Loads

     10,973       7,961       38,316       27,488  

Average tractors

     89       73       83       63  
                                 

At December 31, 2013 and December 31, 2012:

                                

Total tractors(1)

     2,255       2,252                  

Average age of company tractors (in years)

     1.9       2.0                  

Total trailers

     4,105       4,170                  

Average age of company trailers (in years)

     2.4       2.2                  

Ratio of trailers to tractors(1)

     1.8       1.9                  

 

 

   

Three Months

    

Year

  
   

Ended December 31,

    

Ended December 31,

  

(In thousands)

  

2013

    

2012

    

2013

    

2012

  
                                 

Net cash provided by operating activities

   $ 23,338     $ 22,750     $ 89,187     $ 85,539  

Net cash used for investing activities

     9,994       10,509       74,722       88,115  
                                 

Weighted average shares outstanding:

                                

Basic

     33,265       33,125       33,221       33,095  

Diluted

     33,525       33,235       33,429       33,225  

 

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 49 and 36 tractors as of December 31, 2013, and 2012, respectively.

         

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

CONTACT: Tim Kohl, President,

                      and Jim Hinnendael, Chief Financial Officer,

                      of Marten Transport, Ltd., 715-926-4216