Marten Transport Announces Third Quarter Results

MONDOVI, Wis., Oct. 15, 2013 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported the highest net income for any quarter in the company's history. Net income improved 22.4% to $8.0 million, or 24 cents per diluted share, for the third quarter ended September 30, 2013, from $6.5 million, or 20 cents per diluted share, for the third quarter of 2012. For the nine-month period ended September 30, 2013, net income increased 16.9% to $22.8 million, or 68 cents per diluted share, from $19.5 million, or 59 cents per diluted share, for the 2012 nine-month period.

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $167.1 million for the third quarter of 2013 from $163.6 million for the third quarter of 2012, and increased to $493.0 million for the 2013 nine-month period from $472.0 million for the 2012 nine-month period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 7.0% to $134.5 million for the 2013 quarter from $125.8 million for the 2012 quarter, and increased 8.6% to $390.3 million for the 2013 nine-month period from $359.3 million for the 2012 nine-month period. Fuel surcharge revenue increased to $32.6 million for the third quarter of 2013 from $30.3 million for the 2012 quarter, and increased to $96.0 million for the 2013 nine-month period from $88.9 million for the 2012 nine-month period. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the third quarter of 2013 compared with $7.6 million in the 2012 quarter. MWL revenue included in the first nine months of 2013 decreased by $17.2 million from the first nine months of last year with the deconsolidation.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 89.9% for the third quarter of 2013 from 92.6% for the third quarter of 2012. The ratio improved to 90.1% for the 2013 nine-month period from 91.5% for the 2012 nine-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased to announce our highest net income for any quarter in our history as well as our fourteenth consecutive year-over-year increase in quarterly profitability. We believe our continued growth and profitability are directly related to the strong positioning of our truckload operations, as well as the diversification of our service offerings in intermodal and brokerage. Our total truckload, intermodal and broker loads increased 11.9% in the third quarter of 2013 over the prior year's quarter. We continue to drive improvements in tractor utilization and revenue per tractor, which increased 3.3% over the third quarter of 2012 – on top of a 7.3% increase in the third quarter of 2012 over the 2011 quarter. These continued improvements helped us achieve an operating ratio excluding fuel surcharge of 89.9% for the third quarter of 2013, our second best ratio over the past 28 quarters."

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.

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.

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, 2012. 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)
September 30, December 31,
(In thousands, except share information) 2013 2012
ASSETS
Current assets:
Cash and cash equivalents $1,072 $3,473
Receivables:
Trade, net 72,659 66,239
Other 4,678 7,177
Prepaid expenses and other 12,748 15,490
Deferred income taxes 3,468 3,155
Total current assets 94,625 95,534
Property and equipment:
Revenue equipment, buildings and land, office equipment and other 583,445 551,136
Accumulated depreciation (163,171) (156,660)
Net property and equipment 420,274 394,476
Other assets 3,527 613
TOTAL ASSETS $518,426 $490,623
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $38,140 $33,062
Insurance and claims accruals 13,824 13,838
Total current liabilities 51,964 46,900
Long-term debt, less current maturities 821 2,726
Deferred income taxes 114,082 109,074
Total liabilities 166,867 158,700
Stockholders' equity:
Marten Transport, Ltd. 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; 48,000,000 shares authorized; 33,229,969 shares at September 30, 2013, and 33,164,428 shares at December 31, 2012, issued and outstanding 332 332
Additional paid-in capital 83,969 82,679
Retained earnings 267,258 246,349
Total Marten Transport, Ltd. stockholders' equity 351,559 329,360
Noncontrolling interest -- 2,563
Total stockholders' equity 351,559 331,923
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $518,426 $490,623
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Nine Months
(In thousands, except per share information) Ended September 30, Ended September 30,
2013 2012 2013 2012
OPERATING REVENUE $167,103 $163,606 $492,990 $472,044
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits 43,310 42,352 127,780 120,021
Purchased transportation 30,136 32,428 92,449 92,021
Fuel and fuel taxes 42,547 43,020 123,466 121,659
Supplies and maintenance 10,296 10,581 29,827 29,958
Depreciation 16,248 15,537 48,155 45,114
Operating taxes and licenses 1,811 1,694 5,406 4,893
Insurance and claims 5,741 4,809 17,360 15,816
Communications and utilities 1,305 1,265 3,850 3,637
Gain on disposition of revenue equipment (1,472) (1,349) (5,124) (4,053)
Other 3,528 3,429 10,509 10,336
Total operating expenses 153,450 153,766 453,678 439,402
OPERATING INCOME 13,653 9,840 39,312 32,642
OTHER (130) (6) (298) (40)
INCOME BEFORE INCOME TAXES 13,783 9,846 39,610 32,682
Less: Income before income taxes attributable to noncontrolling interest -- 61 84 467
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 13,783 9,785 39,526 32,215
PROVISION FOR INCOME TAXES 5,806 3,267 16,680 12,667
NET INCOME $7,977 $6,518 $22,846 $19,548
BASIC EARNINGS PER COMMON SHARE $0.24 $0.20 $0.69 $0.59
DILUTED EARNINGS PER COMMON SHARE $0.24 $0.20 $0.68 $0.59
DIVIDENDS PAID PER COMMON SHARE $0.025 $0.017 $0.058 $0.047
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) 2013 2012 2013 vs. 2012 2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $103,145 $96,938 $6,207 6.4%
Truckload fuel surcharge revenue 27,135 25,931 1,204 4.6
Total Truckload revenue 130,280 122,869 7,411 6.0
Logistics revenue, net of intermodal fuel surcharge revenue 31,397 36,408 (5,011) (13.8)
Intermodal fuel surcharge revenue 5,426 4,329 1,097 25.3
Total Logistics revenue 36,823 40,737 (3,914) (9.6)
Total operating revenue $167,103 $163,606 $3,497 2.1%
Operating income:
Truckload $12,267 $7,938 $4,329 54.5%
Logistics 1,386 1,902 (516) (27.1)
Total operating income $13,653 $9,840 $3,813 38.8%
Operating ratio:
Truckload 90.6% 93.5%
Logistics 96.2 95.3
Consolidated operating ratio 91.8% 94.0%
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) 2013 2012 2013 vs. 2012 2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $298,106 $280,284 $17,822 6.4%
Truckload fuel surcharge revenue 80,760 77,305 3,455 4.5
Total Truckload revenue 378,866 357,589 21,277 6.0
Logistics revenue, net of intermodal fuel surcharge revenue 98,878 102,889 (4,011) (3.9)
Intermodal fuel surcharge revenue 15,246 11,566 3,680 31.8
Total Logistics revenue 114,124 114,455 (331) (0.3)
Total operating revenue $492,990 $472,044 $20,946 4.4%
Operating income:
Truckload $33,643 $26,039 $7,604 29.2%
Logistics 5,669 6,603 (934) (14.1)
Total operating income $39,312 $32,642 $6,670 20.4%
Operating ratio:
Truckload 91.1% 92.7%
Logistics 95.0 94.2
Consolidated operating ratio 92.0% 93.1%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2013 2012 2013 2012
Truckload Segment:
Total Truckload revenue (in thousands) $130,280 $122,869 $378,866 $357,589
Average truckload revenue, net of fuel surcharges, per tractor per week(1) $3,509 $3,398 $3,446 $3,322
Average tractors(1) 2,237 2,171 2,218 2,155
Average miles per trip 593 630 605 624
Non-revenue miles percentage(2) 10.4% 11.4% 10.5% 11.2%
Total miles – company-employed drivers (in thousands) 57,286 54,903 169,212 159,700
Total miles – independent contractors (in thousands) 1,345 1,067 3,659 3,686
Logistics Segment:
Total Logistics revenue (in thousands) $36,823 $40,737 $114,124 $114,455
Brokerage:
Marten Transport
Revenue (in thousands) $12,614 $13,076 $39,896 $39,740
Loads 8,435 8,172 26,467 24,130
MWL
Revenue (in thousands) $ -- $7,576 $6,676 $23,906
Loads -- 4,260 3,758 12,479
Intermodal:
Revenue (in thousands) $24,209 $20,085 $67,552 $50,809
Loads 9,837 7,642 27,343 19,527
Average tractors 81 68 81 59
At September 30, 2013 and September 30, 2012:
Total tractors(1) 2,301 2,267
Average age of company tractors (in years) 1.9 2.0
Total trailers 4,159 4,166
Average age of company trailers (in years) 2.4 2.2
Ratio of trailers to tractors(1) 1.8 1.8
Three Months Nine Months
Ended September 30, Ended September 30,
(In thousands) 2013 2012 2013 2012
Net cash provided by operating activities $18,039 $22,777 $65,849 $62,789
Net cash used for investing activities 10,312 22,302 64,728 77,606
Weighted average shares outstanding:
Basic 33,226 33,107 33,206 33,085
Diluted 33,475 33,223 33,389 33,225
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 52 and 43 tractors as of September 30, 2013, and 2012, respectively.
(2) Represents the percentage of miles for which the company is not compensated.

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