EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

Exhibit 99.1

 

 

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS

 

MONDOVI, Wis., July 14, 2015 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 5.4% increase in net income to $8.4 million, or 25 cents per diluted share, for the second quarter ended June 30, 2015, from $7.9 million, or 24 cents per diluted share, for the second quarter of 2014. For the six-month period ended June 30, 2015, net income increased 40.4% to $18.5 million, or 55 cents per diluted share, compared with $13.2 million, or 39 cents per diluted share, for the first six months of 2014. As previously reported, results for the first six months of 2015 included a gain on the disposition of a facility of $3.7 million, or 6 cents per diluted share, which occurred as part of the Company’s ongoing program to expand and update the footprint of its facilities throughout the United States.

 

Operating revenue, net of fuel surcharges, improved 6.1% to $143.9 million for the second quarter of 2015 from $135.7 million for the second quarter of 2014, and improved 8.1% to $284.6 million for the first six months of 2015 from $263.2 million for the first six months of 2014. These improvements were primarily due to the continued growth of Marten’s dedicated operations. Operating revenue was $163.6 million for the 2015 quarter compared with $168.4 million for the 2014 quarter, and was $324.9 million for the 2015 six-month period compared with $327.8 million for the 2014 six-month period. Fuel surcharge revenue decreased to $19.7 million for the second quarter of 2015 from $32.7 million for the 2014 quarter, and decreased to $40.2 million for the 2015 six-month period from $64.6 million for the 2014 six-month period.

 

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 90.2% for the second quarter of 2015 from 90.5% for the second quarter of 2014. The ratio improved to 88.9% for the 2015 six-month period from 91.8% for the 2014 six-month period. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, improved to 90.2% for the six-month period ended June 30, 2015.

 

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our continued growth in both our profitability and tractor fleet size, with our average truckload and dedicated tractor count up 201 tractors, or 9.2%, over last year’s second quarter. Looking forward to the third quarter and beyond, we secured multi-year dedicated contracts for an additional 279 tractors in this year’s second quarter. We believe the demand for our customized dedicated transportation solutions will continue to result in further growth and remain confident about our position to capitalize on growth opportunities across all of our business units.”

 

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.

 

Beginning with the fourth quarter of 2014, Marten Transport moved from two to four financial reporting segments. Marten now reports its operating results in Truckload, Dedicated, Intermodal and Brokerage segments instead of the previously reported Truckload and Logistics segments. The reporting of prior periods has been updated to reflect this change.

 

 
 

 

  

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, 2014. 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)

                              

 

    June 30,     December 31,  

(In thousands, except share information)

 

2015

   

2014

 
                 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 4,499     $ 123  

Receivables:

               

Trade, net

    68,898       72,263  

Other

    8,814       17,740  

Prepaid expenses and other

    15,912       16,860  

Deferred income taxes

    3,091       3,199  

Total current assets

    101,214       110,185  
                 

Property and equipment:

               

Revenue equipment, buildings and land, office equipment and other

    700,123       645,972  

Accumulated depreciation

    (190,330 )     (180,223 )

Net property and equipment

    509,793       465,749  

Other assets

    3,606       3,726  
                 

Total assets

  $ 614,613     $ 579,660  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Checks issued in excess of cash balances

  $ -     $ 745  

Accounts payable and accrued liabilities

    65,221       29,775  

Insurance and claims accruals

    13,645       13,998  

Total current liabilities

    78,866       44,518  

Long-term debt

    -       24,373  

Deferred income taxes

    127,347       122,843  

Total liabilities

    206,213       191,734  
                 

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; 33,618,595 shares at June 30, 2015, and 33,418,829 shares at December 31, 2014, issued and outstanding

    336       334  

Additional paid-in capital

    90,975       87,370  

Retained earnings

    317,089       300,222  

Total stockholders’ equity

    408,400       387,926  

Total liabilities and stockholders’ equity

  $ 614,613     $ 579,660  

 

 
 

 

  

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)

 

2015

   

2014

   

2015

   

2014

 
                                 

Operating revenue

  $ 163,588     $ 168,423     $ 324,875     $ 327,832  
                                 

Operating expenses (income):

                               

Salaries, wages and benefits

    50,964       44,667       99,772       88,399  

Purchased transportation

    28,083       30,739       57,587       58,869  

Fuel and fuel taxes

    28,281       40,494       54,757       80,320  

Supplies and maintenance

    10,942       10,351       21,384       20,786  

Depreciation

    18,311       16,865       36,138       33,236  

Operating taxes and licenses

    2,014       1,728       3,890       3,441  

Insurance and claims

    6,778       6,663       14,868       12,788  

Communications and utilities

    1,388       1,311       2,916       2,744  

Gain on disposition of revenue equipment

    (1,787 )     (1,278 )     (2,948 )     (1,941 )

Gain on disposition of facility

    -       -       (3,712 )     -  

Other

    4,453       3,951       8,751       7,618  
                                 

Total operating expenses

    149,427       155,491       293,403       306,260  
                                 

Operating income

    14,161       12,932       31,472       21,572  
                                 

Other

    6       (612 )     21       (710 )
                                 

Income before income taxes

    14,155       13,544       31,451       22,282  
                                 

Provision for income taxes

    5,798       5,618       12,906       9,069  
                                 

Net income

  $ 8,357     $ 7,926     $ 18,545     $ 13,213  
                                 

Basic earnings per common share

  $ 0.25     $ 0.24     $ 0.55     $ 0.40  
                                 

Diluted earnings per common share

  $ 0.25     $ 0.24     $ 0.55     $ 0.39  
                                 

Dividends declared per common share

  $ 0.025     $ 0.025     $ 0.050     $ 0.050  

 

 
 

 

 

 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)

 

2015

   

2014

   

2015 vs. 2014

   

2015 vs. 2014

 

Operating revenue:

                               

Truckload revenue, net of fuel surcharge revenue

  $ 88,822     $ 90,316     $ (1,494 )     (1.7 )%

Truckload fuel surcharge revenue

    13,929       23,699       (9,770 )     (41.2 )

Total Truckload revenue

    102,751       114,015       (11,264 )     (9.9 )
                                 

Dedicated revenue, net of fuel surcharge revenue

    22,601       11,845       10,756       90.8  

Dedicated fuel surcharge revenue

    2,803       3,245       (442 )     (13.6 )

Total Dedicated revenue

    25,404       15,090       10,314       68.3  
                                 

Intermodal revenue, net of fuel surcharge revenue

    16,101       20,406       (4,305 )     (21.1 )

Intermodal fuel surcharge revenue

    2,945       5,800       (2,855 )     (49.2 )

Total Intermodal revenue

    19,046       26,206       (7,160 )     (27.3 )
                                 

Brokerage revenue

    16,387       13,112       3,275       25.0  
                                 

Total operating revenue

  $ 163,588     $ 168,423     $ (4,835 )     (2.9 )%
                                 

Operating income:

                               

Truckload

  $ 9,808     $ 10,410     $ (602 )     (5.8 )%

Dedicated

    2,563       1,433       1,130       78.9  

Intermodal

    969       483       486       100.6  

Brokerage

    821       606       215       35.5  

Total operating income

  $ 14,161     $ 12,932     $ 1,229       9.5 %
                                 

Operating ratio:

                               

Truckload

    90.5 %     90.9 %                

Dedicated

    89.9       90.5                  

Intermodal

    94.9       98.2                  

Brokerage

    95.0       95.4                  
                                 

Consolidated operating ratio

    91.3 %     92.3 %                

 

 
 

 

 

 

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)

 

2015

   

2014

   

2015 vs. 2014

   

2015 vs. 2014

 

Operating revenue:

                               

Truckload revenue, net of fuel surcharge revenue

  $ 175,633     $ 177,118     $ (1,485 )     (0.8 )%

Truckload fuel surcharge revenue

    28,519       47,411       (18,892 )     (39.8 )

Total Truckload revenue

    204,152       224,529       (20,377 )     (9.1 )
                                 

Dedicated revenue, net of fuel surcharge revenue

    42,464       22,573       19,891       88.1  

Dedicated fuel surcharge revenue

    5,394       6,067       (673 )     (11.1 )

Total Dedicated revenue

    47,858       28,640       19,218       67.1  
                                 

Intermodal revenue, net of fuel surcharge revenue

    33,120       38,760       (5,640 )     (14.6 )

Intermodal fuel surcharge revenue

    6,318       11,136       (4,818 )     (43.3 )

Total Intermodal revenue

    39,438       49,896       (10,458 )     (21.0 )
                                 

Brokerage revenue

    33,427       24,767       8,660       35.0  
                                 

Total operating revenue

  $ 324,875     $ 327,832     $ (2,957 )     (0.9 )%
                                 

Operating income:

                               

Truckload

  $ 19,410     $ 16,588     $ 2,822       17.0 %

Dedicated

    4,567       2,755       1,812       65.8  

Intermodal

    2,220       966       1,254       129.8  

Brokerage

    1,563       1,263       300       23.8  

Total operating income before gain on disposition of facility

    27,760       21,572       6,188       28.7  

Gain on disposition of facility

    3,712       -       3,712    

N/A

 

Total operating income

  $ 31,472     $ 21,572     $ 9,900       45.9 %
                                 

Operating ratio:

                               

Truckload

    90.5 %     92.6 %                

Dedicated

    90.5       90.4                  

Intermodal

    94.4       98.1                  

Brokerage

    95.3       94.9                  

Consolidated operating ratio before gain on disposition of facility

    91.5 %     93.4 %                
                                 

Consolidated operating ratio

    90.3 %     93.4 %                

 

 
 

 

 

 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

 

Three Months

  Six Months  

 

Ended June 30,

  Ended June 30,  

 

2015

 

2014

 

2015

  2014  

Truckload Segment:

                       

Revenue (in thousands)

$ 102,751   $ 114,015   $ 204,152   $ 224,529  

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

$ 3,623   $ 3,655   $ 3,615   $ 3,581  

Average tractors(1)

  1,886     1,901     1,879     1,913  

Average miles per trip

  679     676     692     679  

Non-revenue miles percentage(2)

  9.5 %   9.9 %   9.4 %   9.6 %

Total miles (in thousands)

  47,829     50,589     95,359     100,092  
                         

Dedicated Segment:

                       

Revenue (in thousands)

$ 25,404   $ 15,090   $ 47,858   $ 28,640  

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

$ 3,493   $ 3,234   $ 3,469   $ 3,332  

Average tractors(1)

  498     282     473     262  

Average miles per trip

  368     335     371     336  

Non-revenue miles percentage(2)

  1.4 %   1.7 %   1.9 %   1.5 %

Total miles (in thousands)

  12,274     6,608     23,349     12,524  
                         

Intermodal Segment:

                       

Revenue (in thousands)

$ 19,046   $ 26,206   $ 39,438   $ 49,896  

Loads

  8,867     12,032     18,234     22,555  

Average tractors

  91     121     94     110  
                         

Brokerage Segment:

                       

Revenue (in thousands)

$ 16,387   $ 13,112   $ 33,427   $ 24,767  

Loads

  10,774     8,611     21,624     16,319  
                         

At June 30, 2015 and June 30, 2014:

                       

Total tractors(1)

  2,605     2,311              

Average age of company tractors (in years)

  1.6     1.8              

Total trailers

  4,397     4,225              

Average age of company trailers (in years)

  2.6     2.5              

Ratio of trailers to tractors(1)

  1.7     1.8              

 

   

Three Months

    Six Months  
   

Ended June 30,

    Ended June 30,  

(In thousands)

 

2015

   

2014

   

2015

   

2014

 
                                 

Net cash provided by operating activities

  $ 18,614     $ 13,187     $ 71,776     $ 40,695  

Net cash used for investing activities

    36,573       48,149       43,335       69,533  
                                 

Weighted average shares outstanding:

                               

Basic

    33,582       33,369       33,521       33,355  

Diluted

    33,853       33,696       33,802       33,662  

 

(1)  

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 58 and 35 tractors as of June 30, 2015, and 2014, respectively.

     
(2)  

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