MONDOVI, Wis., April 19, 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.

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