Marten Transport Announces First Quarter Results

GlobeNewswire

MONDOVI, Wis., April 21, 2016 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for the quarter ended March 31, 2016.  Net income improved 2.4% over 2015 first quarter earnings of $8.0 million, or 24 cents per diluted share, excluding a $3.7 million gain on the disposition of a facility.  Net income for the 2015 quarter, including the gain, was $10.2 million, or 30 cents per diluted share.  The disposition was part of Marten’s ongoing program to expand and update the footprint of its facilities. 

Operating revenue, net of both fuel surcharges and revenue from the Company’s dry container service discontinued in March 2015, improved 8.9%, to $151.9 million, for the first quarter of 2016 from $139.4 million for the first quarter of 2015.  Operating revenue increased to $161.9 million for the 2016 quarter from $161.3 million for the 2015 quarter, despite substantially lower fuel surcharges due to decreased fuel prices in 2016.  Fuel surcharge revenue decreased to $10.0 million for the first quarter of 2016 from $20.6 million for the 2015 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.7% for the first quarter of 2016.  The operating ratio, net of both the gain on the facility disposition and fuel surcharges, was 90.3% for the first quarter of 2015.

Chairman and Chief Executive Officer Randolph L. Marten said, “In the face of pricing pressures and a soft freight market since last year’s second quarter, we have continued to demonstrate disciplined execution of our unique, multifaceted and diverse business model.  We successfully grew our average number of truckload and dedicated tractors by 384 tractors, or 16.5%, year over year, and paid off our December 31, 2015 debt balance of $37.9 million during the quarter.  We believe that we are well-positioned to profitably capitalize on further growth opportunities within each of our transportation service platforms in 2016.”

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 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)  
           
      March 31,    December 31,  
(In thousands, except share information)     2016       2015    
           
ASSETS          
Current assets:          
Cash and cash equivalents   $ 1,156     $   434    
Receivables:                  
Trade, net     65,285       70,597    
Other     4,719       10,885    
Prepaid expenses and other     16,829       18,134    
Total current assets     87,989       100,050    
                   
Property and equipment:                  
Revenue equipment, buildings and land,                  
  office equipment and other     723,457       724,597    
Accumulated depreciation     (204,410 )     (196,588 )  
Net property and equipment     519,047       528,009    
Other assets     3,356       3,469    
                   
Total assets   $ 610,392     $ 631,528    
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
Current liabilities:                  
Accounts payable and accrued liabilities   $ 44,431     $ 33,641    
Insurance and claims accruals     17,105       16,235    
                   
Total current liabilities     61,536       49,876    
Long-term debt      –       37,867    
Deferred income taxes     138,044       134,364    
Total liabilities     199,580       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; 32,419,481 shares                  
  at March 31, 2016, and 32,759,806 shares at                  
  December 31, 2015, issued and outstanding     324       328    
Additional paid-in capital     70,481       76,468    
Retained earnings     340,007       332,625    
Total stockholders’ equity     410,812       409,421    
Total liabilities and stockholders’ equity   $ 610,392     $ 631,528    

 

MARTEN TRANSPORT, LTD.  
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
(Unaudited)  
           
      Three Months    
      Ended March 31,     
(In thousands, except per share information)     2016       2015    
                   
Operating revenue   $ 161,929     $ 161,287    
                   
Operating expenses (income):                  
Salaries, wages and benefits     54,830       48,808    
Purchased transportation     28,035       29,504    
Fuel and fuel taxes     19,630       26,476    
Supplies and maintenance     10,499       10,442    
Depreciation     20,047       17,827    
Operating taxes and licenses     2,185       1,876    
Insurance and claims     7,355       8,090    
Communications and utilities     1,620       1,528    
Gain on disposition of revenue equipment     (1,434 )     (1,161 )  
Gain on disposition of facility     –       (3,712 )  
Other     5,037       4,298    
                   
Total operating expenses     147,804       143,976    
                   
Operating income     14,125       17,311    
                   
Other     215       15    
                   
Income before income taxes     13,910       17,296    
                   
Provision for income taxes     5,717       7,108    
                   
Net income   $ 8,193     $ 10,188    
                   
Basic earnings per common share   $ 0.25     $ 0.30    
                   
Diluted earnings per common share   $ 0.25     $ 0.30    
                   
Dividends declared per common share   $ 0.025     $ 0.025    

 

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)     2016       2015       2016 vs. 2015    2016 vs. 2015  
Operating revenue:                  
Truckload revenue, net of fuel                  
  surcharge revenue   $ 82,942     $ 86,811     $   (3,869 )     (4.5 )%  
Truckload fuel surcharge revenue     7,112       14,590       (7,478 )     (51.3 )  
Total Truckload revenue     90,054       101,401       (11,347 )     (11.2 )  
                                   
Dedicated revenue, net of fuel                                  
  surcharge revenue     35,510       19,863       15,647       78.8    
Dedicated fuel surcharge revenue     1,587       2,591       (1,004 )     (38.7 )  
Total Dedicated revenue     37,097       22,454       14,643       65.2    
                                   
Intermodal revenue, net of fuel                                  
  surcharge revenue     15,854       17,019       (1,165 )     (6.8 )  
Intermodal fuel surcharge revenue     1,347       3,373       (2,026 )     (60.1 )  
Total Intermodal revenue     17,201       20,392       (3,191 )     (15.6 )  
                                   
Brokerage revenue     17,577       17,040       537       3.2    
                                   
Total operating revenue   $ 161,929     $ 161,287     $ 642       0.4 %  
                                   
Operating income:                                  
Truckload   $ 6,940     $ 9,602     $   (2,662 )     (27.7 )%  
Dedicated     4,324       2,004       2,320       115.8    
Intermodal     1,929       1,251       678       54.2    
Brokerage     932       742       190       25.6    
Total operating income before gain                                  
  on disposition of facility     14,125       13,599       526       3.9    
Gain on disposition of facility      –       3,712       (3,712 )     (100.0 )  
Total operating income   $ 14,125     $ 17,311     $   (3,186 )     (18.4 )%  
                                   
Operating ratio:                                  
Truckload     92.3 %     90.5 %                  
Dedicated     88.3       91.1                    
Intermodal     88.8       93.9                    
Brokerage     94.7       95.6                    
Consolidated operating ratio before gain                                  
  on disposition of facility     91.3 %     91.6 %                  
Consolidated operating ratio     91.3 %     89.3 %                  

  

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
 
    Three Months
    Ended March 31,
        2016        2015  
Truckload Segment:      
  Revenue (in thousands)   $    90,054   $   101,401  
  Average revenue, net of fuel surcharges, per tractor per week(1)   $ 3,366   $  3,606  
  Average tractors(1)       1,896       1,872  
  Average miles per trip       642       705  
  Non-revenue miles percentage(2)       9.6 %     9.2 %
  Total miles (in thousands)       44,471       47,530  
       
Dedicated Segment:      
  Revenue (in thousands)   $    37,097   $    22,454  
  Average revenue, net of fuel surcharges, per tractor per week(1)   $ 3,375   $ 3,442  
  Average tractors(1)       809       449  
  Average miles per trip       314       375  
  Non-revenue miles percentage(2)       0.8 %     2.3 %
  Total miles (in thousands)       18,521       11,075  
       
Intermodal Segment:      
  Revenue (in thousands)   $    17,201   $    20,392  
  Loads       8,696       9,367  
  Average tractors       76       96  
       
Brokerage Segment:      
  Revenue (in thousands)   $    17,577   $    17,040  
  Loads       12,951       10,850  
       
At March 31, 2016 and March 31, 2015:      
  Total tractors(1)       2,784       2,422  
  Average age of company tractors (in years)       1.6       1.8  
  Total trailers       4,725       4,327  
  Average age of company trailers (in years)        2.7       2.6  
  Ratio of trailers to tractors(1)       1.7       1.8  
       
       
    Three Months
    Ended March 31,
(In thousands)       2016     2015  
       
Net cash provided by operating activities   $    55,065   $    53,162  
Net cash used for investing activities       9,553       6,762  
Net cash used for financing activities    44,790      24, 823    
       
Weighted average shares outstanding:      
  Basic        32,454        33,458  
  Diluted       32,639       33,761  
       

(1) Includes tractors driven by both company-employed drivers and independent contractors.  Independent contractors provided 79 and 54 tractors as of March 31, 2016 and 2015, respectively.               

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

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

Source: TransportationLogistics

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