EX-99.1 2 ex_581843.htm EXHIBIT 99.1 ex_581843.htm

Exhibit 99.1

 

MARTEN TRANSPORT ANNOUNCES THIRD QUARTER RESULTS

 

MONDOVI, Wis., October 18, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $13.6 million, or 17 cents per diluted share, for the third quarter ended September 30, 2023, compared with $25.6 million, or 32 cents per diluted share, for the third quarter of 2022. For the nine-month period ended September 30, 2023, net income was $58.0 million, or 71 cents per diluted share, compared with $84.8 million, or $1.03 per diluted share, for the 2022 nine-month period.

 

Operating revenue was $279.5 million for the third quarter of 2023 compared with $324.4 million for the third quarter of 2022. Excluding fuel surcharges, operating revenue was $239.1 million for the 2023 quarter compared with $269.3 million for the 2022 quarter. Fuel surcharge revenue decreased to $40.5 million for the 2023 quarter from $55.1 million for the 2022 quarter.

 

Operating revenue was $863.2 million for the first nine months of 2023 compared with $941.3 million for the first nine months of 2022. Excluding fuel surcharges, operating revenue was $742.6 million for the 2023 period compared with $783.8 million for the 2022 period. Fuel surcharge revenue decreased to $120.6 million for the 2023 period from $157.5 million for the 2022 period.

 

Operating income was $17.2 million for the third quarter of 2023 compared with $33.8 million for the third quarter of 2022. For the first nine months of 2023, operating income was $74.5 million compared with $110.6 million for the first nine months of 2022.

 

Operating expenses as a percentage of operating revenue were 93.8% for the 2023 quarter and 89.6% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 92.8% for the 2023 quarter and 87.5% for the 2022 quarter.

 

Operating expenses as a percentage of operating revenue were 91.4% for the first nine months of 2023 and 88.3% for the first nine months of 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 90.0% for the 2023 period and 85.9% for the 2022 period.

 

Executive Chairman Randolph L. Marten stated, “Our earnings this quarter were significantly pressured by the industry-wide weak demand, cumulative impact of reduced freight rates with the resulting freight network disruption, and inflationary operating costs within the current freight market recession. Additionally, the record heat and rising fuel prices each month of the third quarter led to an increase in our mile-adjusted net fuel expense of $3.9 million, or 4 cents per diluted share, from this year’s second quarter to third quarter.”

 

“We are focused on both minimizing the current freight market’s impact on our operations, and investing in and positioning our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers - with fair compensation for our services. To that end, we have not agreed to any rate reductions since early August.”

 

Current Investor Presentation

 

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, Mexico and Canada, 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 Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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, Chief Executive Officer, Doug Petit, 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

 

   

September 30,

    

December 31,

  

(In thousands, except share information)

  

2023

    

2022

  
   

(Unaudited)

          

ASSETS

                

Current assets:

                

Cash and cash equivalents

   $ 68,067     $ 80,600  

Receivables:

                

Trade, net

     117,820       120,702  

Other

     11,695       7,218  

Prepaid expenses and other

     27,004       27,320  

Total current assets

     224,586       235,840  
                 

Property and equipment:

                

Revenue equipment, buildings and land, office equipment and other

     1,129,415       1,074,832  

Accumulated depreciation

     (358,414

)

     (346,665

)

Net property and equipment

     771,001       728,167  

Other noncurrent assets

     1,617       1,672  

Total assets

   $ 997,204     $ 965,679  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

                

Current liabilities:

                

Accounts payable

   $ 42,042     $ 37,299  

Insurance and claims accruals

     46,282       45,747  

Accrued and other current liabilities

     33,320       41,264  

Total current liabilities

     121,644       124,310  

Deferred income taxes

     125,887       137,041  

Noncurrent operating lease liabilities

     316       409  

Total liabilities

     247,847       261,760  
                 

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; 81,308,968 shares at September 30, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding

     813       811  

Additional paid-in capital

     49,280       47,188  

Retained earnings

     699,264       655,920  

Total stockholders’ equity

     749,357       703,919  

Total liabilities and stockholders’ equity

   $ 997,204     $ 965,679  

 

 
 

 

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

   

Three Months

    

Nine Months

  
   

Ended September 30,

    

Ended September 30,

  

(In thousands, except per share information)

  

2023

    

2022

    

2023

    

2022

  
                                 

Operating revenue

   $ 279,538     $ 324,448     $ 863,233     $ 941,294  
                                 

Operating expenses (income):

                                

Salaries, wages and benefits

     92,620       99,773       287,468       285,582  

Purchased transportation

     49,673       64,403       152,075       189,193  

Fuel and fuel taxes

     48,695       57,299       137,706       163,004  

Supplies and maintenance

     17,896       14,855       51,291       40,520  

Depreciation

     29,017       28,381       87,974       81,389  

Operating taxes and licenses

     2,821       2,748       8,345       8,051  

Insurance and claims

     13,254       11,949       40,805       38,096  

Communications and utilities

     2,584       2,135       7,625       6,639  

Gain on disposition of revenue equipment

     (3,014

)

     (1,070

)

     (11,810

)

     (10,422

)

Other

     8,762       10,209       27,301       28,681  
                                 

Total operating expenses

     262,308       290,682       788,780       830,733  
                                 

Operating income

     17,230       33,766       74,453       110,561  
                                 

Other

     (1,017

)

     (264

)

     (2,938

)

     (307

)
                                 

Income before income taxes

     18,247       34,030       77,391       110,868  
                                 

Income taxes expense

     4,649       8,384       19,417       26,028  
                                 

Net income

   $ 13,598     $ 25,646     $ 57,974     $ 84,840  
                                 

Basic earnings per common share

   $ 0.17     $ 0.32     $ 0.71     $ 1.04  
                                 

Diluted earnings per common share

   $ 0.17     $ 0.32     $ 0.71     $ 1.03  
                                 

Dividends declared per common share

   $ 0.06     $ 0.06     $ 0.18     $ 0.18  

 

 
 

 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

                   

Dollar

    

Percentage

  
                   

Change

    

Change

  
   

Three Months

    

Three Months

    

Three Months

  
   

Ended

    

Ended

    

Ended

  
   

September 30,

    

September 30,

    

September 30,

  

(Dollars in thousands)

  

2023

    

2022

    

2023 vs. 2022

    

2023 vs. 2022

  

Operating revenue:

                                

Truckload revenue, net of fuel surcharge revenue

   $ 96,516     $ 105,905     $ (9,389

)

     (8.9

)%

Truckload fuel surcharge revenue

     17,711       23,471       (5,760

)

     (24.5

)

Total Truckload revenue

     114,227       129,376       (15,149

)

     (11.7

)
                                 

Dedicated revenue, net of fuel surcharge revenue

     82,963       86,178       (3,215

)

     (3.7

)

Dedicated fuel surcharge revenue

     18,834       24,039       (5,205

)

     (21.7

)

Total Dedicated revenue

     101,797       110,217       (8,420

)

     (7.6

)
                                 

Intermodal revenue, net of fuel surcharge revenue

     18,122       24,303       (6,181

)

     (25.4

)

Intermodal fuel surcharge revenue

     3,925       7,600       (3,675

)

     (48.4

)

Total Intermodal revenue

     22,047       31,903       (9,856

)

     (30.9

)
                                 

Brokerage revenue

     41,467       52,952       (11,485

)

     (21.7

)
                                 

Total operating revenue

   $ 279,538     $ 324,448     $ (44,910

)

     (13.8

)%
                                 

Operating income/(loss):

                                

Truckload

   $ 2,738     $ 14,319     $ (11,581

)

     (80.9

)%

Dedicated

     11,286       13,005       (1,719

)

     (13.2

)

Intermodal

     (1,074

)

     778       (1,852

)

     (238.0

)

Brokerage

     4,280       5,664       (1,384

)

     (24.4

)

Total operating income

   $ 17,230     $ 33,766     $ (16,536

)

     (49.0

)%
                                 

Operating ratio:

                                

Truckload

     97.6

%

     88.9

%

                

Dedicated

     88.9       88.2                  

Intermodal

     104.9       97.6                  

Brokerage

     89.7       89.3                  

Consolidated operating ratio

     93.8

%

     89.6

%

                
                                 

Operating ratio, net of fuel surcharges:

                                

Truckload

     97.2

%

     86.5

%

                

Dedicated

     86.4       84.9                  

Intermodal

     105.9       96.8                  

Brokerage

     89.7       89.3                  

Consolidated operating ratio, net of fuel surcharges

     92.8

%

     87.5

%

                

 

 
 

 

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

 

                   

Dollar

    

Percentage

  
                   

Change

    

Change

  
   

Nine Months

    

Nine Months

    

Nine Months

  
   

Ended

    

Ended

    

Ended

  
   

September 30,

    

September 30,

    

September 30,

  

(Dollars in thousands)

  

2023

    

2022

    

2023 vs. 2022

    

2023 vs. 2022

  

Operating revenue:

                                

Truckload revenue, net of fuel surcharge revenue

   $ 300,104     $ 302,883     $ (2,779

)

     (0.9

)%

Truckload fuel surcharge revenue

     51,887       66,255       (14,368

)

     (21.7

)

Total Truckload revenue

     351,991       369,138       (17,147

)

     (4.6

)
                                 

Dedicated revenue, net of fuel surcharge revenue

     257,231       248,988       8,243       3.3  

Dedicated fuel surcharge revenue

     56,000       68,344       (12,344

)

     (18.1

)

Total Dedicated revenue

     313,231       317,332       (4,101

)

     (1.3

)
                                 

Intermodal revenue, net of fuel surcharge revenue

     60,277       77,589       (17,312

)

     (22.3

)

Intermodal fuel surcharge revenue

     12,724       22,923       (10,199

)

     (44.5

)

Total Intermodal revenue

     73,001       100,512       (27,511

)

     (27.4

)
                                 

Brokerage revenue

     125,010       154,312       (29,302

)

     (19.0

)
                                 

Total operating revenue

   $ 863,233     $ 941,294     $ (78,061

)

     (8.3

)%
                                 

Operating income/(loss):

                                

Truckload

   $ 22,348     $ 45,978     $ (23,630

)

     (51.4

)%

Dedicated

     39,143       37,689       1,454       3.9  

Intermodal

     (452

)

     9,911       (10,363

)

     (104.6

)

Brokerage

     13,414       16,983       (3,569

)

     (21.0

)

Total operating income

   $ 74,453     $ 110,561     $ (36,108

)

     (32.7

)%
                                 

Operating ratio:

                                

Truckload

     93.7

%

     87.5

%

                

Dedicated

     87.5       88.1                  

Intermodal

     100.6       90.1                  

Brokerage

     89.3       89.0                  

Consolidated operating ratio

     91.4

%

     88.3

%

                
                                 

Operating ratio, net of fuel surcharges:

                                

Truckload

     92.6

%

     84.8

%

                

Dedicated

     84.8       84.9                  

Intermodal

     100.7       87.2                  

Brokerage

     89.3       89.0                  

Consolidated operating ratio, net of fuel surcharges

     90.0

%

     85.9

%

                

 

 
 

 

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

 

   

Three Months

    

Nine Months

  
   

Ended September 30,

    

Ended September 30,

  
   

2023

    

2022

    

2023

    

2022

  

Truckload Segment:

                                

Revenue (in thousands)

   $ 114,227     $ 129,376     $ 351,991     $ 369,138  

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

   $ 4,285     $ 4,889     $ 4,442     $ 4,980  

Average tractors(1)

     1,714       1,648       1,732       1,560  

Average miles per trip

     529       508       515       512  

Non-revenue miles percentage(2)

     12.1

%

     11.3

%

     12.4

%

     10.8

%

Total miles (in thousands)

     39,093       38,441       116,651       110,565  
                                 

Dedicated Segment:

                                

Revenue (in thousands)

   $ 101,797     $ 110,217     $ 313,231     $ 317,332  

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

   $ 3,900     $ 4,006     $ 3,949     $ 3,977  

Average tractors(1)

     1,619       1,637       1,670       1,605  

Average miles per trip

     339       337       335       340  

Non-revenue miles percentage(2)

     1.3

%

     1.2

%

     1.2

%

     1.1

%

Total miles (in thousands)

     33,039       34,513       101,948       101,400  
                                 

Intermodal Segment:

                                

Revenue (in thousands)

   $ 22,047     $ 31,903     $ 73,001     $ 100,512  

Loads

     6,327       7,610       19,871       24,607  

Average tractors

     154       182       168       173  
                                 

Brokerage Segment:

                                

Revenue (in thousands)

   $ 41,467     $ 52,952     $ 125,010     $ 154,312  

Loads

     24,077       24,896       67,483       69,902  
                                 

At September 30, 2023 and September 30, 2022:

                                

Total tractors(1)

     3,454       3,575                  

Average age of company tractors (in years)

     1.8       1.7                  

Total trailers

     5,726       5,679                  

Average age of company trailers (in years)

     4.4       3.8                  

Ratio of trailers to tractors(1)

     1.7       1.6                  

Total refrigerated containers

     788       803                  

 

   

Three Months

    

Nine Months

  
   

Ended September 30,

    

Ended September 30,

  

(In thousands)

  

2023

    

2022

    

2023

    

2022

  
                                 

Net cash provided by operating activities

   $ 28,132     $ 64,551     $ 126,333     $ 163,221  

Net cash (used for) investing activities

     (35,831

)

     (57,412

)

     (124,470

)

     (92,416

)

Net cash (used for) financing activities

     (4,762

)

     (4,021

)

     (14,396

)

     (56,308

)
                                 

Weighted average shares outstanding:

                                

Basic

     81,306       81,061       81,260       81,889  

Diluted

     81,454       81,347       81,414       82,155  

 

(1) 

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 99 and 90 tractors as of September 30, 2023 and 2022, respectively. 
 

 

(2)

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