EX-99 2 ex99-1.htm EXHIBIT 99.1 Marten Transport Announces Second Quarter Results

Exhibit 99.1

 

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS

 

Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported an increase in net income to $7.9 million, or 24 cents per diluted share, in the second quarter ended June 30, 2014, from $7.7 million, or 23 cents per diluted share, in the second quarter of 2013. For the six-month period ended June 30, 2014, net income was $13.2 million, or 39 cents per diluted share, compared with $14.9 million, or 45 cents per diluted share, in the 2013 six-month period.

 

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $168.4 million in the second quarter of 2014 from $161.4 million in the second quarter of 2013, and increased to $327.8 million in the 2014 six-month period from $325.9 million in the 2013 six-month period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 4.6% to $135.7 million in the 2014 quarter from $129.7 million in the 2013 quarter, and increased 2.9% to $263.2 million in the 2014 six-month period from $255.8 million in the 2013 six-month period. Fuel surcharge revenue increased to $32.7 million in the second quarter of 2014 from $31.7 million in the 2013 quarter, and increased to $64.6 million in the 2014 six-month period from $63.4 million in the 2013 six-month period. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the first six months of 2014 or in the second quarter of 2013, compared with $6.7 million in the first six months of 2013.

 

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.5% in the second quarter of 2014 compared with the 89.9% ratio achieved in the second quarter of 2013. The ratio was 91.8% in the 2014 six-month period compared with 90.2% in the 2013 six-month period.

 

Chairman and Chief Executive Officer Randolph L. Marten said, “We remain confident that we are well positioned for the remainder of 2014 and beyond with our rate initiatives that will continue through this year’s third quarter, as the operating environment is becoming more favorable with tightening capacity. We are encouraged by our strong June 2014 performance with net income for the month of $3.1 million, and our opportunity for further profitability growth with our diverse service infrastructure. We continue to drive gains in our key operating measures as our revenue per tractor increased 4.1% over the second quarter of 2013, our seventeenth consecutive quarterly increase.”

 

“We also utilized our credit facility in the second quarter of 2014 to acquire a larger regional operating facility in southern California, which we believe will give us the ability to further expand our footprint in that market.”

 

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. As a result, it was determined that MWL was no longer required to be consolidated. Accordingly, Marten deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting, effective as of that date.

 

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, 2013. 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)

 

2014

   

2013

 
                 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 956     $ 13,650  

Receivables:

               

Trade, net

    75,176       70,869  

Other

    6,459       4,142  

Prepaid expenses and other

    13,949       15,274  

Deferred income taxes

    3,545       3,415  

Total current assets

    100,085       107,350  
                 

Property and equipment:

               

Revenue equipment, buildings and land, office equipment and other

    632,693       579,925  

Accumulated depreciation

    (174,627 )     (164,916 )

Net property and equipment

    458,066       415,009  

Other assets

    3,991       3,443  

TOTAL ASSETS

  $ 562,142     $ 525,802  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable and accrued liabilities

  $ 42,063     $ 38,624  

Insurance and claims accruals

    15,012       14,404  

Total current liabilities

    57,075       53,028  

Long-term debt, less current maturities

    16,757       -  

Deferred income taxes

    115,918       113,637  

Total liabilities

    189,750       166,665  
                 

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; 33,398,329 shares at June 30, 2014, and 33,301,048 shares at December 31, 2013, issued and outstanding

    334       333  

Additional paid-in capital

    86,787       85,077  

Retained earnings

    285,271       273,727  

Total stockholders’ equity

    372,392       359,137  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

  $ 562,142     $ 525,802  

 

 

 
 

 

 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

   

Three Months

Ended June 30,

   

Six Months 
Ended June 30,

 

(In thousands, except per share information)

 

2014

   

2013

   

2014

   

2013

 
                                 

OPERATING REVENUE

  $ 168,423     $ 161,413     $ 327,832     $ 325,887  
                                 

OPERATING EXPENSES (INCOME):

                               

Salaries, wages and benefits

    44,667       42,345       88,399       84,470  

Purchased transportation

    30,739       28,129       58,869       62,313  

Fuel and fuel taxes

    40,494       40,596       80,320       80,919  

Supplies and maintenance

    10,351       9,998       20,786       19,531  

Depreciation

    16,865       16,219       33,236       31,907  

Operating taxes and licenses

    1,728       1,825       3,441       3,595  

Insurance and claims

    6,663       5,808       12,788       11,619  

Communications and utilities

    1,311       1,262       2,744       2,545  

Gain on disposition of revenue equipment

    (1,278 )     (1,237 )     (1,941 )     (3,652 )

Other

    3,951       3,347       7,618       6,981  
                                 

Total operating expenses

    155,491       148,292       306,260       300,228  
                                 

OPERATING INCOME

    12,932       13,121       21,572       25,659  
                                 

OTHER

    (612 )     (153 )     (710 )     (168 )
                                 

INCOME BEFORE INCOME TAXES

    13,544       13,274       22,282       25,827  

Less: Income before income taxes attributable to noncontrolling interest

    -       -       -       84  
                                 

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.

    13,544       13,274       22,282       25,743  
                                 

PROVISION FOR INCOME TAXES

    5,618       5,607       9,069       10,874  
                                 

NET INCOME

  $ 7,926     $ 7,667     $ 13,213     $ 14,869  
                                 

BASIC EARNINGS PER COMMON SHARE

  $ 0.24     $ 0.23     $ 0.40     $ 0.45  
                                 

DILUTED EARNINGS PER COMMON SHARE

  $ 0.24     $ 0.23     $ 0.39     $ 0.45  
                                 

DIVIDENDS DECLARED PER COMMON SHARE

  $ 0.025     $ 0.017     $ 0.050     $ 0.033  

                  

 

 
 

 

  

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)

 

2014

   

2013

   

2014 vs. 2013

   

2014 vs. 2013

 

Operating revenue:

                               

Truckload revenue, net of fuel surcharge revenue

  $ 102,161     $ 99,996     $ 2,165       2.2 %

Truckload fuel surcharge revenue

    26,944       26,856       88       0.3  

Total Truckload revenue

    129,105       126,852       2,253       1.8  
                                 

Logistics revenue, net of intermodal fuel surcharge revenue

    33,518       29,721       3,797       12.8  

Intermodal fuel surcharge revenue

    5,800       4,840       960       19.8  

Total Logistics revenue

    39,318       34,561       4,757       13.8  
                                 

Total operating revenue

  $ 168,423     $ 161,413     $ 7,010       4.3 %
                                 

Operating income:

                               

Truckload

  $ 11,843     $ 11,376     $ 467       4.1 %

Logistics

    1,089       1,745       (656 )     (37.6 )

Total operating income

  $ 12,932     $ 13,121     $ (189 )     (1.4 )%
                                 

Operating ratio:

                               

Truckload

    90.8 %     91.0 %                

Logistics

    97.2       95.0                  

Consolidated operating ratio

    92.3 %     91.9 %                

 

 

 
 

 

 

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)

 

2014

   

2013

   

2014 vs. 2013

   

2014 vs. 2013

 

Operating revenue:

                               

Truckload revenue, net of fuel surcharge revenue

  $ 199,691     $ 194,961     $ 4,730       2.4 %

Truckload fuel surcharge revenue

    53,478       53,625       (147 )     (0.3 )

Total Truckload revenue

    253,169       248,586       4,583       1.8  
                                 

Logistics revenue, net of intermodal fuel surcharge revenue

    63,527       67,481       (3,954 )     (5.9 )

Intermodal fuel surcharge revenue

    11,136       9,820       1,316       13.4  

Total Logistics revenue

    74,663       77,301       (2,638 )     (3.4 )
                                 

Total operating revenue

  $ 327,832     $ 325,887     $ 1,945       0.6 %
                                 

Operating income:

                               

Truckload

  $ 19,343     $ 21,376     $ (2,033 )     (9.5 )%

Logistics

    2,229       4,283       (2,054 )     (48.0 )

Total operating income

  $ 21,572     $ 25,659     $ (4,087 )     (15.9 )%
                                 

Operating ratio:

                               

Truckload

    92.4 %     91.4 %                

Logistics

    97.0       94.5                  

Consolidated operating ratio

    93.4 %     92.1 %                

 

 

 
 

 

 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

    Three Months
Ended June 30,
    Six Months
Ended June 30,
 

 

 

2014

   

2013

   

2014

    2013  

Truckload Segment:

                               

Total Truckload revenue (in thousands)

  $ 129,105     $ 126,852     $ 253,169     $ 248,586  

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

  $ 3,601     $ 3,459     $ 3,551     $ 3,414  

Average tractors(1)

    2,183       2,224       2,175       2,209  

Average miles per trip

    605       598       610       612  

Non-revenue miles percentage(2)

    9.0 %     10.5 %     8.7 %     10.6 %

Total miles – company-employed drivers (in thousands)

    56,140       57,031       110,502       111,926  

Total miles – independent contractors (in thousands)

    1,057       1,373       2,114       2,314  
                                 

Logistics Segment:

                               

Total Logistics revenue (in thousands)

  $ 39,318     $ 34,561     $ 74,663     $ 77,301  

Brokerage:

                               

Marten Transport Revenue (in thousands)

  $ 13,112     $ 12,813     $ 24,767     $ 27,282  

Loads

    8,611       8,602       16,319       18,032  
MWL                                

Revenue (in thousands)

  $ -     $ -     $ -     $ 6,676  

Loads

    -       -       -       3,758  

Intermodal:

                               

Revenue (in thousands)

  $ 26,206     $ 21,748     $ 49,896     $ 43,343  

Loads

    12,032       8,916       22,555       17,506  

Average tractors

    121       85       110       81  
                                 

At June 30, 2014 and June 30, 2013:

                               

Total tractors(1)

    2,311       2,317                  

Average age of company tractors (in years)

    1.8       1.9                  

Total trailers

    4,225       4,111                  

Average age of company trailers (in years)

    2.5       2.4                  

Ratio of trailers to tractors(1)

    1.8       1.8                  

 

 

   

Three Months
Ended June 30,

    Six Months
Ended June 30,
 

(In thousands)

 

2014

   

2013

   

2014

   

2013

 
                                 

Net cash provided by operating activities

  $ 13,187     $ 25,816     $ 40,695     $ 47,810  

Net cash used for investing activities

    48,149       41,331       69,533       54,416  
                                 

Weighted average shares outstanding:

                               

Basic

    33,369       33,210       33,355       33,196  

Diluted

    33,696       33,378       33,662       33,344  

 

 

(1)  Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 35 and 53 tractors as of June 30, 2014, and 2013, respectively.
   

(2)

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