EX-99.1 2 ex_110542.htm EXHIBIT 99.1 ex_110542.htm

Exhibit 99.1

 

Marten Transport Announces First Quarter Results

 

MONDOVI, Wis., April 17, 2018 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 25.8% increase in net income to $10.3 million, or 19 cents per diluted share, for the first quarter ended March 31, 2018, from $8.2 million, or 15 cents per diluted share, for the first quarter of 2017.  The increase in earnings was primarily due to the reduction of Marten's federal income tax rate under the Tax Cuts and Jobs Act of 2017.

 

Operating revenue improved 8.0% to $187.0 million for the first quarter of 2018 from $173.2 million for the first quarter of 2017. Excluding fuel surcharges, operating revenue improved 4.7% to $163.8 million for the 2018 quarter from $156.6 million for the 2017 quarter. Fuel surcharge revenue increased to $23.1 million for the first quarter of 2018 from $16.6 million for the 2017 quarter.

 

Operating expenses as a percentage of operating revenue was 92.7% for the first quarter of 2018 and 92.0% for the first quarter of 2017. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 91.7% for the first quarter of 2018 compared with 91.1% for the first quarter of 2017.

 

Chairman and Chief Executive Officer Randolph L. Marten said, “We continue to position our operations to capitalize on the strengthened freight environment. We improved our revenue excluding fuel surcharges in our Dedicated and Intermodal operations, our primary growth areas for this year, by 17.6% over the first quarter of 2017. We expect to deliver revenue and profitability growth throughout 2018 with increased compensation for our premium services, additional freight with existing and new customers, and our continued emphasis on cost controls.”

 

“Our agreements with a number of customers included a shift during the quarter between line haul and fuel surcharge revenue, which reduced our Dedicated and Truckload revenue, net of fuel surcharges, by $106 and $13 per tractor per week, while increasing our fuel surcharge revenue by the same amounts.”

 

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,376 dry trailers operating as of March 31, 2018. 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. These statements include our discussion of the Company’s prospects for future growth and 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, 2017. 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, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

 

 

 

 

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)

 

(In thousands, except share information)

 

March 31,
2018

   

December 31,
2017

 
                 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 10,398     $ 15,791  

Receivables:

               

Trade, net

    82,090       74,886  

Other

    7,037       6,131  

Prepaid expenses and other

    19,186       19,810  

Total current assets

    118,711       116,618  
                 

Property and equipment:

               

Revenue equipment, buildings and land, office equipment and other

    808,750       783,648  

Accumulated depreciation

    (217,558

)

    (211,728

)

Net property and equipment

    591,192       571,920  

Other assets

    2,062       1,865  

Total assets

  $ 711,965     $ 690,403  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable and accrued liabilities

  $ 49,421     $ 38,100  

Insurance and claims accruals

    25,414       26,177  

Total current liabilities

    74,835       64,277  

Deferred income taxes

    101,676       100,626  

Total liabilities

    176,511       164,903  
                 

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; 96,000,000 shares authorized; 54,589,542 shares at March 31, 2018, and 54,533,455 shares at December 31, 2017, issued and outstanding

    546       545  

Additional paid-in capital

    76,915       76,413  

Retained earnings

    457,993       448,542  

Total stockholders’ equity

    535,454       525,500  

Total liabilities and stockholders’ equity

  $ 711,965     $ 690,403  

 

 

 

 

 

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

 

   

Three Months

 
   

Ended March 31,

 

(In thousands, except per share information)

 

2018

   

2017

 
                 

Operating revenue

  $ 186,960     $ 173,159  
                 

Operating expenses (income):

               

Salaries, wages and benefits

    58,822       56,400  

Purchased transportation

    35,026       29,362  

Fuel and fuel taxes

    29,044       25,956  

Supplies and maintenance

    10,436       10,990  

Depreciation

    21,815       21,383  

Operating taxes and licenses

    2,287       2,247  

Insurance and claims

    10,290       8,914  

Communications and utilities

    1,683       1,581  

Gain on disposition of revenue equipment

    (1,211

)

    (1,103

)

Other

    5,174       3,491  
                 

Total operating expenses

    173,366       159,221  
                 

Operating income

    13,594       13,938  
                 

Other

    (189

)

    141  
                 

Income before income taxes

    13,783       13,797  
                 

Income taxes expense

    3,452       5,583  
                 

Net income

  $ 10,331     $ 8,214  
                 

Basic earnings per common share

  $ 0.19     $ 0.15  
                 

Diluted earnings per common share

  $ 0.19     $ 0.15  
                 

Dividends declared per common share

  $ 0.025     $ 0.015  

 

 

 

 

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

 

                   

Dollar

   

Percentage

 
                   

Change

   

Change

 
   

Three Months

   

Three Months

   

Three Months

 
   

Ended

   

Ended

   

Ended

 
   

March 31,

   

March 31,

   

March 31,

 

(Dollars in thousands)

 

2018

   

2017

   

2018 vs. 2017

   

2018 vs. 2017

 

Operating revenue:

                               

Truckload revenue, net of fuel surcharge revenue

  $ 80,216     $ 84,811     $ (4,595

)

    (5.4

)%

Truckload fuel surcharge revenue

    12,801       10,847       1,954       18.0  

Total Truckload revenue

    93,017       95,658       (2,641

)

    (2.8

)

                                 

Dedicated revenue, net of fuel surcharge revenue

    42,364       36,899       5,465       14.8  

Dedicated fuel surcharge revenue

    6,469       3,378       3,091       91.5  

Total Dedicated revenue

    48,833       40,277       8,556       21.2  
                                 

Intermodal revenue, net of fuel surcharge revenue

    20,808       16,811       3,997       23.8  

Intermodal fuel surcharge revenue

    3,844       2,375       1,469       61.9  

Total Intermodal revenue

    24,652       19,186       5,466       28.5  
                                 

Brokerage revenue

    20,458       18,038       2,420       13.4  
                                 

Total operating revenue

  $ 186,960     $ 173,159     $ 13,801       8.0

%

                                 

Operating income:

                               

Truckload

  $ 6,815     $ 5,974     $ 841       14.1

%

Dedicated

    2,488       4,487       (1,999

)

    (44.6

)

Intermodal

    2,978       2,149       829       38.6  

Brokerage

    1,313       1,328       (15

)

    (1.1

)

Total operating income

  $ 13,594     $ 13,938     $ (344

)

    (2.5

)%

                                 

Operating ratio:

                               

Truckload

    92.7

%

    93.8

%

               

Dedicated

    94.9       88.9                  

Intermodal

    87.9       88.8                  

Brokerage

    93.6       92.6                  
                                 

Consolidated operating ratio

    92.7

%

    92.0

%

               

 

 

 

 

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

 

   

Three Months

 
   

Ended March 31,

 
   

2018

   

2017

 

Truckload Segment:

               

Revenue (in thousands)

  $ 93,017     $ 95,658  

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

  $ 3,679     $ 3,416  

Average tractors(1)

    1,696       1,931  

Average miles per trip

    603       615  

Non-revenue miles percentage(2)

    6.8

%

    9.6

%

Total miles (in thousands)

    40,582       46,060  
                 

Dedicated Segment:

               

Revenue (in thousands)

  $ 48,833     $ 40,277  

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

  $ 3,267     $ 3,462  

Average tractors(1)

    1,009       829  

Average miles per trip

    297       299  

Non-revenue miles percentage(2)

    1.1

%

    0.7

%

Total miles (in thousands)

    21,135       18,579  
                 

Intermodal Segment:

               

Revenue (in thousands)

  $ 24,652     $ 19,186  

Loads

    10,737       9,584  

Average tractors

    82       77  
                 

Brokerage Segment:

               

Revenue (in thousands)

  $ 20,458     $ 18,038  

Loads

    11,889       13,354  
                 

At March 31, 2018 and March 31, 2017:

               

Total tractors(1)

    2,785       2,827  

Average age of company tractors (in years)

    1.6       1.5  

Total trailers

    5,308       4,955  

Average age of company trailers (in years)

    2.6       2.8  

Ratio of trailers to tractors(1)

    1.9       1.8  

 

   

Three Months

 
   

Ended March 31,

 

(In thousands)

 

2018

   

2017

 
                 

Net cash provided by operating activities

  $ 23,182     $ 37,674  

Net cash (used for) investing activities

    (27,392

)

    (20,962

)

Net cash (used for) financing activities

    (1,183

)

    (8,135

)

                 

Weighted average shares outstanding:

               

Basic

    54,572       54,426  

Diluted

    55,095       54,738  

 

(1)

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 55 and 67 tractors as of March 31, 2018 and 2017, respectively. 

 

 

(2)

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