Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 19, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 2.1% increase in net income to $8.5 million, or 26 cents per diluted share, for the second quarter ended June 30, 2016, from $8.4 million, or 25 cents per diluted share, for the second quarter of 2015. For the six-month period ended June 30, 2016, net income was $16.7 million, or 51 cents per diluted share. Net income for the first six months of 2015 was $18.5 million, or 55 cents per diluted share, and, excluding a $3.7 million facility disposition gain, was $16.4 million, or 48 cents per diluted share.

Operating revenue improved to $166.1 million for the second quarter of 2016 from $163.6 million for the second quarter of 2015, and increased to $328.0 million for the first six months of 2016 from $324.9 million for the first six months of 2015, despite substantially lower fuel surcharges due to decreased fuel prices in 2016. Operating revenue, net of fuel surcharges, improved 6.2% to $152.9 million for the 2016 quarter from $143.9 million for the 2015 quarter, and increased 7.1% to $304.8 million for the 2016 six-month period from $284.6 million for the 2015 six-month period. Fuel surcharge revenue decreased to $13.2 million for the second quarter of 2016 from $19.7 million for the 2015 quarter, and decreased to $23.3 million for the 2016 six-month period from $40.2 million for the 2015 six-month period.

Operating expenses as a percentage of operating revenue was 91.1% for the second quarter of 2016 and 91.3% for the second quarter of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.3% for the second quarter of 2016 and 90.2% for the second quarter of 2015.

Operating expenses as a percentage of operating revenue was 91.2% for the first six months of 2016 and 90.3% for the first six months of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.5% for the 2016 six-month period. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, was 90.2% for the 2015 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We have continued to demonstrate the strength of our multifaceted and diverse business model which drove growth in our top line revenue and profitability despite pricing pressures and a soft freight market. We successfully grew our average number of truckload and dedicated tractors by 362 tractors, or 15.4%, in the first half of this year over the first half of 2015. We are confident in our ability to capitalize on further profitable growth opportunities with our unique business model and the dedicated people who have built it with their smart, hard work.”

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. 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, 2015. 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)

	June 30,			December 31,
(In thousands, except share information)	2016			2015

ASSETS
Current assets:
Cash and cash equivalents	$	208		$	434
Receivables:
Trade, net		66,076			70,597
Other		3,065			10,885
Prepaid expenses and other		17,122			18,134
Total current assets		86,471			100,050

Property and equipment:
Revenue equipment, buildings and land,
office equipment and other		744,234			724,597
Accumulated depreciation		(206,317	)		(196,588	)
Net property and equipment		537,917			528,009
Other assets		3,168			3,469

Total assets	$	627,556		$	631,528

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	45,129		$	33,641
Insurance and claims accruals		17,400			16,235
Total current liabilities		62,529			49,876
Long-term debt		4,376			37,867
Deferred income taxes		141,194			134,364
Total liabilities		208,099			222,107


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; 32,466,081 shares
at June 30, 2016, and 32,759,806 shares at
December 31, 2015, issued and outstanding		325			328
Additional paid-in capital		71,405			76,468
Retained earnings		347,727			332,625
Total stockholders’ equity		419,457			409,421

Total liabilities and stockholders’ equity	$	627,556		$	631,528

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)	2016			2015			2016			2015

Operating revenue	$	166,090		$	163,588		$	328,019		$	324,875
Operating expenses (income):
Salaries, wages and benefits		56,196			50,964			111,026			99,772
Purchased transportation		26,187			28,083			54,222			57,587
Fuel and fuel taxes		23,930			28,281			43,560			54,757
Supplies and maintenance		10,908			10,942			21,407			21,384
Depreciation		20,368			18,311			40,415			36,138
Operating taxes and licenses		2,250			2,014			4,435			3,890
Insurance and claims		7,696			6,778			15,051			14,868
Communications and utilities		1,497			1,388			3,117			2,916
Gain on disposition of revenue equipment		(2,703	)		(1,787	)		(4,137	)		(2,948	)
Gain on disposition of facility		-			-			-			(3,712	)
Other		4,985			4,453			10,022			8,751

Total operating expenses		151,314			149,427			299,118			293,403

Operating income		14,776			14,161			28,901			31,472

Other		237			6			452			21

Income before income taxes		14,539			14,155			28,449			31,451

Provision for income taxes		6,008			5,798			11,725			12,906

Net income	$	8,531		$	8,357		$	16,724		$	18,545

Basic earnings per common share	$	0.26		$	0.25		$	0.52		$	0.55

Diluted earnings per common share	$	0.26		$	0.25		$	0.51		$	0.55

Dividends declared per common share	$	0.025		$	0.025		$	0.05		$	0.05

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)	2016			2015			2016 vs. 2015			2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue	$	85,103		$	88,822		$	(3,719	)		(4.2	)%
Truckload fuel surcharge revenue		8,933			13,929			(4,996	)		(35.9	)
Total Truckload revenue		94,036			102,751			(8,715	)		(8.5	)

Dedicated revenue, net of fuel
surcharge revenue		36,654			22,601			14,053			62.2
Dedicated fuel surcharge revenue		2,621			2,803			(182	)		(6.5	)
Total Dedicated revenue		39,275			25,404			13,871			54.6

Intermodal revenue, net of fuel
surcharge revenue		16,118			16,101			17			0.1
Intermodal fuel surcharge revenue		1,664			2,945			(1,281	)		(43.5	)
Total Intermodal revenue		17,782			19,046			(1,264	)		(6.6	)

Brokerage revenue		14,997			16,387			(1,390	)		(8.5	)

Total operating revenue	$	166,090		$	163,588		$	2,502			1.5	%

Operating income:
Truckload	$	6,951		$	9,808		$	(2,857	)		(29.1	)%
Dedicated		5,134			2,563			2,571			100.3
Intermodal		1,822			969			853			88.0
Brokerage		869			821			48			5.8
Total operating income	$	14,776		$	14,161		$	615			4.3	%

Operating ratio:
Truckload		92.6	%		90.5	%
Dedicated		86.9			89.9
Intermodal		89.8			94.9
Brokerage		94.2			95.0
Consolidated operating ratio		91.1	%		91.3	%

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)	2016			2015			2016 vs. 2015			2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue	$	168,045		$	175,633		$	(7,588	)		(4.3	)%
Truckload fuel surcharge revenue		16,045			28,519			(12,474	)		(43.7	)
Total Truckload revenue		184,090			204,152			(20,062	)		(9.8	)

Dedicated revenue, net of fuel
surcharge revenue		72,164			42,464			29,700			69.9
Dedicated fuel surcharge revenue		4,208			5,394			(1,186	)		(22.0	)
Total Dedicated revenue		76,372			47,858			28,514			59.6

Intermodal revenue, net of fuel
surcharge revenue		31,972			33,120			(1,148	)		(3.5	)
Intermodal fuel surcharge revenue		3,011			6,318			(3,307	)		(52.3	)
Total Intermodal revenue		34,983			39,438			(4,455	)		(11.3	)

Brokerage revenue		32,574			33,427			(853	)		(2.6	)

Total operating revenue	$	328,019		$	324,875		$	3,144			1.0	%

Operating income:
Truckload	$	13,891		$	19,410		$	(5,519	)		(28.4	)%
Dedicated		9,458			4,567			4,891			107.1
Intermodal		3,751			2,220			1,531			69.0
Brokerage		1,801			1,563			238			15.2
Total operating income before gain
on disposition of facility		28,901			27,760			1,141			4.1
Gain on disposition of facility		-			3,712			(3,712	)		(100.0	)
Total operating income	$	28,901		$	31,472		$	(2,571	)		(8.2	)%

Operating ratio:
Truckload		92.5	%		90.5	%
Dedicated		87.6			90.5
Intermodal		89.3			94.4
Brokerage		94.5			95.3
Consolidated operating ratio before gain
on disposition of facility		91.2	%		91.5	%
Consolidated operating ratio		91.2	%		90.3	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

	Three Months						Six Months
	Ended June 30,						Ended June 30,
		2016			2015			2016			2015
Truckload Segment:
Revenue (in thousands)	$	94,036		$	102,751		$	184,090		$	204,152
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,444		$	3,623		$	3,405		$	3,615
Average tractors⁽¹⁾		1,901			1,886			1,898			1,879
Average miles per trip		625			679			634			692
Non-revenue miles percentage⁽²⁾		9.1	%		9.5	%		9.3	%		9.4	%
Total miles (in thousands)		46,290			47,829			90,761			95,359

Dedicated Segment:
Revenue (in thousands)	$	39,275		$	25,404		$	76,372		$	47,858
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,431		$	3,493		$	3,403		$	3,469
Average tractors⁽¹⁾		822			498			816			473
Average miles per trip		302			368			308			371
Non-revenue miles percentage⁽²⁾		0.8	%		1.4	%		0.8	%		1.9	%
Total miles (in thousands)		18,951			12,274			37,472			23,349

Intermodal Segment:
Revenue (in thousands)	$	17,782		$	19,046		$	34,983		$	39,438
Loads		8,755			8,867			17,451			18,234
Average tractors		77			91			77			94

Brokerage Segment:
Revenue (in thousands)	$	14,997		$	16,387		$	32,574		$	33,427
Loads		11,428			10,774			24,379			21,624

At June 30, 2016 and June 30, 2015:
Total tractors⁽¹⁾		2,785			2,605
Average age of company tractors (in years)		1.6			1.6
Total trailers		4,856			4,397
Average age of company trailers (in years)		2.7			2.6
Ratio of trailers to tractors⁽¹⁾		1.7			1.7

	Three Months						Six Months
	Ended June 30,						Ended June 30,
(In thousands)		2016			2015			2016			2015

Net cash provided by operating activities	$	25,056		$	18,614		$	80,121		$	71,776
Net cash (used for) investing activities		(30,125	)		(36,573	)		(39,678	)		(43,335	)
Net cash provided by (used for) financing activities		4,121			758			(40,669	)		(24,065	)

Weighted average shares outstanding:
Basic		32,441			33,582			32,448			33,521
Diluted		32,633			33,853			32,634			33,802

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 77 and 58 tractors as of June 30, 2016 and 2015, respectively.

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

CONTACTS: 
Tim Kohl, President, 
and 
Jim Hinnendael, 
Executive Vice President 
and Chief Financial Officer, 
of Marten Transport, Ltd., 
715-926-4216.

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Marten Transport Announces Second Quarter Results

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