Reports highest operating income for any quarter in Company history

MONDOVI, Wis., July 16, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 19.4% improvement in net income to $18.1 million, or 33 cents per diluted share, for the second quarter ended June 30, 2020, from $15.2 million, or 28 cents per diluted share, for the second quarter of 2019. For the first six months of 2020, net income improved 10.8% to $31.9 million, or 58 cents per diluted share, from $28.7 million, or 52 cents per diluted share, for the first six months of 2019.

Marten Transport also announced today that its Board of Directors has declared a three-for-two stock split of the company’s common stock and a regular quarterly cash dividend of $0.04 per share of common stock. The stock split, while maintaining the current quarterly cash dividend amount per share, effectively increases the cash payout to stockholders by 50%.

	Operating Results Comparison
						Percentage			Percentage
						Increase			Increase
						Three Months			Six Months
						Ended			Ended
						June 30,			June 30,
						2020 vs. 2019			2020 vs. 2019
	Operating revenue					0.1	%		4.8	%
	Operating revenue, net of fuel surcharges					4.7	%		7.4	%
	Operating income					26.6	%		14.9	%
	Net income					19.4	%		10.8	%

Operating revenue improved to $212.4 million for the second quarter of 2020 from $212.1 million for the second quarter of 2019, and improved 4.8% to $431.0 million for the first six months of 2020 from $411.1 million for the first six months of 2019. Excluding fuel surcharges, operating revenue improved 4.7% to $194.0 million for the 2020 quarter from $185.4 million for the 2019 quarter, and improved 7.4% to $387.4 million for the first six months of 2020 from $360.8 million for the first six months of 2019. Fuel surcharge revenue decreased to $18.3 million for the 2020 quarter from $26.7 million for the 2019 quarter and decreased to $43.6 million for the first six months of 2020 from $50.3 million for the first six months of 2019 due to significantly lower fuel prices.

Operating income improved 26.6% to a record $25.3 million for the second quarter of 2020 from $19.9 million for the second quarter of 2019. This quarter’s operating income was the highest for any quarter in Marten’s history, and was also a record excluding a $3.0 million, or 4 cents per diluted share, benefit from reduced net fuel expense as a percentage of revenue from the second quarter of 2019 to 2020. Operating income improved 14.9% to $43.3 million for the first six months of 2020 from $37.7 million for the first six months of 2019.

Operating expenses as a percentage of operating revenue improved to 88.1% for the second quarter of 2020 from 90.6% for the second quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 89.2%.

Operating expenses as a percentage of operating revenue improved to 90.0% for the first six months of 2020 from 90.8% for the first six months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.8% from 89.6%.

Chairman and Chief Executive Officer Randolph L. Marten said, “To each of our over 4,100 talented, hard-working drivers, maintenance personnel and employees across all functions and regions, you should be extremely proud of the strong results that you consistently drive, and of the record operating income in the second quarter that you earned. I sure am. Within an environment of significantly fluctuating customer freight volumes, we improved our Truckload miles per tractor by 4.8% over the second quarter of 2019 through our adaptive, continual redeployment of our drivers to match the changing freight demand by lane while minimizing empty miles. We plan on pursuing profitable growth opportunities in the second half of this year. We embrace our responsibility to keep our valued employees safe and healthy as they each contribute to our transporting and distributing the food, beverages and other consumer goods essential to millions of people in North America.”

“I am also pleased to announce this stock split which reflects our continued strong financial condition. The increased number of outstanding shares should increase trading activity, or float, in our common stock while our stockholders benefit from the 50% increase in our quarterly dividend cash payout.”

The three-for-two stock split of the company’s common stock will be effected in the form of a stock dividend payable on August 13, 2020 to stockholders of record as of July 30, 2020. Holders of the company’s common stock will receive an additional one-half share for each outstanding share of common stock held as of the record date. The stock split will increase the number of outstanding shares of common stock from approximately 55.1 million to approximately 82.7 million shares.

The regular quarterly cash dividend of $0.04 per share of common stock will be payable on September 30, 2020 to stockholders of record at the close of business on September 16, 2020. This is Marten’s 41^st consecutive quarterly cash dividend. With the payment of this dividend, Marten will have paid a total of $93.6 million in cash dividends, including special dividends totaling $52.1 million in 2019 and 2012, since the dividend program was implemented in 2010. 

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across the Company’s five distinct business platforms - Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico. Marten is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company 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 a discussion of the Company’s prospects for future growth and current expectations concerning future payment of dividends. 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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 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

		June 30,				December 31,
(In thousands, except share information)		2020				2019
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	75,323			$	31,461
Receivables:
Trade, net			83,854				90,712
Other			12,639				11,055
Prepaid expenses and other			22,906				20,938
Total current assets			194,722				154,166
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			920,608				904,237
Accumulated depreciation			(276,412	)			(263,843	)
Net property and equipment			644,196				640,394
Other noncurrent assets			1,916				2,026
Total assets		$	840,834			$	796,586
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	26,176			$	22,917
Insurance and claims accruals			35,834				31,729
Accrued and other current liabilities			25,569				21,680
Total current liabilities			87,579				76,326
Deferred income taxes			123,285				122,022
Noncurrent operating lease liabilities			572				649
Total liabilities			211,436				198,997
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; 192,000,000 shares authorized; 55,107,805 shares at June 30, 2020, and 54,703,466 shares at December 31, 2019, issued and outstanding			551				547
Additional paid-in capital			83,816				79,465
Retained earnings			545,031				517,577
Total stockholders’ equity			629,398				597,589
Total liabilities and stockholders’ equity		$	840,834			$	796,586

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)		2020				2019				2020				2019
Operating revenue		$	212,384			$	212,090			$	431,030			$	411,113
Operating expenses (income):
Salaries, wages and benefits			73,476				68,613				146,237				132,137
Purchased transportation			36,165				38,668				76,610				76,917
Fuel and fuel taxes			20,868				30,952				49,165				58,629
Supplies and maintenance			11,833				11,502				24,061				22,623
Depreciation			25,972				23,462				51,399				46,005
Operating taxes and licenses			2,615				2,438				5,254				4,771
Insurance and claims			11,633				9,862				23,917				19,737
Communications and utilities			1,977				1,950				3,962				3,900
Gain on disposition of revenue equipment			(2,216	)			(1,230	)			(3,771	)			(2,778	)
Other			4,805				5,929				10,908				11,495
Total operating expenses			187,128				192,146				387,742				373,436
Operating income			25,256				19,944				43,288				37,677
Other			(13	)			(395	)			(110	)			(673	)
Income before income taxes			25,269				20,339				43,398				38,350
Income taxes expense			7,135				5,149				11,546				9,614
Net income		$	18,134			$	15,190			$	31,852			$	28,736
Basic earnings per common share		$	0.33			$	0.28			$	0.58			$	0.53
Diluted earnings per common share		$	0.33			$	0.28			$	0.58			$	0.52
Dividends declared per common share		$	0.04			$	0.03			$	0.08			$	0.06

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)		2020				2019				2020 vs. 2019				2020 vs. 2019
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	85,966			$	83,215			$	2,751				3.3	%
Truckload fuel surcharge revenue			8,234				12,807				(4,573	)			(35.7	)
Total Truckload revenue			94,200				96,022				(1,822	)			(1.9	)
Dedicated revenue, net of fuel surcharge revenue			67,076				56,160				10,916				19.4
Dedicated fuel surcharge revenue			8,351				10,850				(2,499	)			(23.0	)
Total Dedicated revenue			75,427				67,010				8,417				12.6
Intermodal revenue, net of fuel surcharge revenue			18,542				17,527				1,015				5.8
Intermodal fuel surcharge revenue			1,759				3,076				(1,317	)			(42.8	)
Total Intermodal revenue			20,301				20,603				(302	)			(1.5	)
Brokerage revenue			22,456				28,455				(5,999	)			(21.1	)
Total operating revenue		$	212,384			$	212,090			$	294				0.1	%
Operating income:
Truckload		$	11,036			$	8,045			$	2,991				37.2	%
Dedicated			11,452				7,700				3,752				48.7
Intermodal			954				1,536				(582	)			(37.9	)
Brokerage			1,814				2,663				(849	)			(31.9	)
Total operating income		$	25,256			$	19,944			$	5,312				26.6	%
Operating ratio:
Truckload			88.3	%			91.6	%
Dedicated			84.8				88.5
Intermodal			95.3				92.5
Brokerage			91.9				90.6
Consolidated operating ratio			88.1	%			90.6	%

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)		2020				2019				2020 vs. 2019				2020 vs. 2019
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	169,823			$	163,382			$	6,441				3.9	%
Truckload fuel surcharge revenue			19,509				24,362				(4,853	)			(19.9	)
Total Truckload revenue			189,332				187,744				1,588				0.8
Dedicated revenue, net of fuel surcharge revenue			131,235				105,084				26,151				24.9
Dedicated fuel surcharge revenue			19,229				19,651				(422	)			(2.1	)
Total Dedicated revenue			150,464				124,735				25,729				20.6
Intermodal revenue, net of fuel surcharge revenue			39,136				37,282				1,854				5.0
Intermodal fuel surcharge revenue			4,845				6,292				(1,447	)			(23.0	)
Total Intermodal revenue			43,981				43,574				407				0.9
Brokerage revenue			47,253				55,060				(7,807	)			(14.2	)
Total operating revenue		$	431,030			$	411,113			$	19,917				4.8	%
Operating income:
Truckload		$	17,821			$	15,600			$	2,221				14.2	%
Dedicated			19,985				13,215				6,770				51.2
Intermodal			2,260				3,930				(1,670	)			(42.5	)
Brokerage			3,222				4,932				(1,710	)			(34.7	)
Total operating income		$	43,288			$	37,677			$	5,611				14.9	%
Operating ratio:
Truckload			90.6	%			91.7	%
Dedicated			86.7				89.4
Intermodal			94.9				91.0
Brokerage			93.2				91.0
Consolidated operating ratio			90.0	%			90.8	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2020				2019				2020				2019
Truckload Segment:
Revenue (in thousands)		$	94,200			$	96,022			$	189,332			$	187,744
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,829			$	3,876			$	3,821			$	3,867
Average tractors(1)			1,727				1,652				1,710				1,634
Average miles per trip			557				532				558				546
Non-revenue miles percentage(2)			10.9	%			11.1	%			11.0	%			11.2	%
Total miles (in thousands)			42,833				39,077				83,872				76,313
Dedicated Segment:
Revenue (in thousands)		$	75,427			$	67,010			$	150,464			$	124,735
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,314			$	3,460			$	3,309			$	3,424
Average tractors(1)			1,557				1,248				1,525				1,187
Average miles per trip			307				314				306				318
Non-revenue miles percentage(2)			0.8	%			0.7	%			0.8	%			0.7	%
Total miles (in thousands)			33,174				27,198				64,710				50,841
Intermodal Segment:
Revenue (in thousands)		$	20,301			$	20,603			$	43,981			$	43,574
Loads			8,693				8,430				18,430				17,681
Average tractors			98				81				99				84
Brokerage Segment:
Revenue (in thousands)		$	22,456			$	28,455			$	47,253			$	55,060
Loads			15,280				16,185				31,388				31,451
At June 30, 2020 and June 30, 2019:
Total tractors(1)			3,313				3,047
Average age of company tractors (in years)			1.8				1.9
Total trailers			5,364				5,437
Average age of company trailers (in years)			2.7				2.6
Ratio of trailers to tractors(1)			1.6				1.8

   

		Three Months								Six Months
		Ended June 30,								Ended June 30,
(In thousands)		2020				2019				2020				2019
Net cash provided by operating activities		$	60,587			$	37,473			$	104,067			$	75,101
Net cash (used for) investing activities			(22,558	)			(39,034	)			(59,190	)			(45,770	)
Net cash provided by (used for) financing activities			1,158				(1,173	)			(1,015	)			(3,302	)
Weighted average shares outstanding:
Basic			55,018				54,616				54,914				54,585
Diluted			55,422				55,081				55,345				55,055

     

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 124 and 55 tractors as of June 30, 2020 and 2019, respectively.
(2	)	Represents the percentage of miles for which the company is not compensated.

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