×

Marten Transport Announces Third Quarter Results

MONDOVI, Wis., Oct. 14, 2014 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported net income of $7.7 million, or 23 cents per diluted share, for the third quarter ended September 30, 2014, compared with $8.0 million, or 24 cents per diluted share, for the third quarter of 2013. For the nine-month period ended September 30, 2014, net income was $20.9 million, or 62 cents per diluted share, compared with $22.8 million, or 68 cents per diluted share, for the 2013 nine-month period.

Operating revenue, consisting of revenue from truckload and logistics operations, increased 2.7% to $171.6 million for the third quarter of 2014 from $167.1 million for the third quarter of 2013, and increased to $499.4 million for the 2014 nine-month period from $493.0 million for the 2013 nine-month period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 4.0% to $139.9 million for the 2014 quarter from $134.5 million for the 2013 quarter, and increased 3.3% to $403.2 million for the 2014 nine-month period from $390.3 million for the 2013 nine-month period. Fuel surcharge revenue decreased to $31.6 million for the third quarter of 2014 from $32.6 million for the 2013 quarter, and increased to $96.2 million for the 2014 nine-month period from $96.0 million for the 2013 nine-month period. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the first nine months of 2014 or in the third quarter of 2013, compared with $6.7 million in the first nine months of 2013.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.7% for the third quarter of 2014, compared with the 89.9% ratio achieved in the third quarter of 2013. The ratio was 91.4% for the 2014 nine-month period, compared with 90.1% for the 2013 nine-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, "We increased our average truckload tractors by 70 tractors in the third quarter over this year's second quarter despite challenging driver recruiting and retention issues across our industry. This increase was a direct result of our continuing efforts to increase our dedicated services and to appropriately compensate our drivers for their non-driving detention time. We also overcame the increase in driver pay combined with higher tractor and trailer depreciation and adverse development in insurance and claims to improve our truckload profitability."

"Costs associated with rail service interruption and delay issues continue to constrain our intermodal operations, which had an operating loss of $151,000 for this year's third quarter compared with operating income of $769,000 for the same period of 2013. We are increasing our intermodal rates accordingly, and expect our intermodal operations to benefit from the market's continuing tight capacity once rail service improves."

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. As a result, it was determined that MWL was no longer required to be consolidated. Accordingly, Marten deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting, effective as of that date.

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, 2013. 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) 2014 2013
ASSETS
Current assets:
Cash and cash equivalents $ 187 $ 13,650
Receivables:
Trade, net 73,202 70,869
Other 4,905 4,142
Prepaid expenses and other 13,481 15,274
Deferred income taxes 3,588 3,415
Total current assets 95,363 107,350
Property and equipment:
Revenue equipment, buildings and land, office equipment and other 642,271 579,925
Accumulated depreciation (174,951) (164,916)
Net property and equipment 467,320 415,009
Other assets 3,923 3,443
TOTAL ASSETS $ 566,606 $ 525,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash balances $ 28 $ --
Accounts payable and accrued liabilities 38,709 38,624
Insurance and claims accruals 13,759 14,404
Total current liabilities 52,496 53,028
Long-term debt 24,681 --
Deferred income taxes 110,015 113,637
Total liabilities 187,192 166,665
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; 33,405,829 shares at September 30, 2014, and 33,301,048 shares at December 31, 2013, issued and outstanding 334 333
Additional paid-in capital 86,992 85,077
Retained earnings 292,088 273,727
Total stockholders' equity 379,414 359,137
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 566,606 $ 525,802
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) 2014 2013 2014 2013
OPERATING REVENUE $ 171,550 $ 167,103 $ 499,382 $ 492,990
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits 46,435 43,310 134,834 127,780
Purchased transportation 32,914 30,136 91,783 92,449
Fuel and fuel taxes 39,398 42,547 119,718 123,466
Supplies and maintenance 10,273 10,296 31,059 29,827
Depreciation 17,253 16,248 50,489 48,155
Operating taxes and licenses 1,837 1,811 5,278 5,406
Insurance and claims 6,205 5,741 18,993 17,360
Communications and utilities 1,507 1,305 4,251 3,850
Gain on disposition of revenue equipment (1,419) (1,472) (3,360) (5,124)
Other 4,105 3,528 11,723 10,509
Total operating expenses 158,508 153,450 464,768 453,678
OPERATING INCOME 13,042 13,653 34,614 39,312
OTHER (226) (130) (936) (298)
INCOME BEFORE INCOME TAXES 13,268 13,783 35,550 39,610
Less: Income before income taxes attributable to noncontrolling interest -- -- -- 84
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 13,268 13,783 35,550 39,526
PROVISION FOR INCOME TAXES 5,616 5,806 14,685 16,680
NET INCOME $ 7,652 $ 7,977 $ 20,865 $ 22,846
BASIC EARNINGS PER COMMON SHARE $ 0.23 $ 0.24 $ 0.63 $ 0.69
DILUTED EARNINGS PER COMMON SHARE $ 0.23 $ 0.24 $ 0.62 $ 0.68
DIVIDENDS DECLARED PER COMMON SHARE $ 0.025 $ 0.025 $ 0.075 $ 0.058
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) 2014 2013 2014 vs. 2013 2014 vs. 2013
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $ 105,271 $ 103,145 $ 2,126 2.1%
Truckload fuel surcharge revenue 25,816 27,135 (1,319) (4.9)
Total Truckload revenue 131,087 130,280 807 0.6
Logistics revenue, net of intermodal fuel surcharge revenue 34,670 31,397 3,273 10.4
Intermodal fuel surcharge revenue 5,793 5,426 367 6.8
Total Logistics revenue 40,463 36,823 3,640 9.9
Total operating revenue $ 171,550 $ 167,103 $ 4,447 2.7%
Operating income:
Truckload $ 12,501 $ 12,267 $ 234 1.9%
Logistics 541 1,386 (845) (61.0)
Total operating income $ 13,042 $ 13,653 $ (611) (4.5)%
Operating ratio:
Truckload 90.5% 90.6%
Logistics 98.7 96.2
Consolidated operating ratio 92.4% 91.8%
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) 2014 2013 2014 vs. 2013 2014 vs. 2013
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $ 304,962 $ 298,106 $ 6,856 2.3%
Truckload fuel surcharge revenue 79,294 80,760 (1,466) (1.8)
Total Truckload revenue 384,256 378,866 5,390 1.4
Logistics revenue, net of intermodal fuel surcharge revenue 98,197 98,878 (681) (0.7)
Intermodal fuel surcharge revenue 16,929 15,246 1,683 11.0
Total Logistics revenue 115,126 114,124 1,002 0.9
Total operating revenue $ 499,382 $ 492,990 $ 6,392 1.3%
Operating income:
Truckload $ 31,844 $ 33,643 $ (1,799) (5.3)%
Logistics 2,770 5,669 (2,899) (51.1)
Total operating income $ 34,614 $ 39,312 $ (4,698) (12.0)%
Operating ratio:
Truckload 91.7% 91.1%
Logistics 97.6 95.0
Consolidated operating ratio 93.1% 92.0%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2014 2013 2014 2013
Truckload Segment:
Total Truckload revenue (in thousands) $ 131,087 $ 130,280 $ 384,256 $ 378,866
Average truckload revenue, net of fuel surcharges, per tractor per week(1) $ 3,555 $ 3,509 $ 3,552 $ 3,446
Average tractors(1) 2,253 2,237 2,201 2,218
Average miles per trip 580 593 600 605
Non-revenue miles percentage(2) 8.6% 10.4% 8.7% 10.5%
Total miles – company-employed drivers (in thousands) 56,333 57,286 166,835 169,212
Total miles – independent contractors (in thousands) 1,520 1,345 3,634 3,659
Logistics Segment:
Total Logistics revenue (in thousands) $ 40,463 $ 36,823 $ 115,126 $ 114,124
Brokerage:
Marten Transport
Revenue (in thousands) $ 15,441 $ 12,614 $ 40,208 $ 39,896
Loads 9,679 8,435 25,998 26,467
MWL
Revenue (in thousands) $ -- $ -- $ -- $ 6,676
Loads -- -- -- 3,758
Intermodal:
Revenue (in thousands) $ 25,022 $ 24,209 $ 74,918 $ 67,552
Loads 11,677 9,837 34,232 27,343
Average tractors 116 81 112 81
At September 30, 2014 and September 30, 2013:
Total tractors(1) 2,363 2,301
Average age of company tractors (in years) 1.7 1.9
Total trailers 4,236 4,159
Average age of company trailers (in years) 2.5 2.4
Ratio of trailers to tractors(1) 1.8 1.8
Three Months Nine Months
Ended September 30, Ended September 30,
(In thousands) 2014 2013 2014 2013
Net cash provided by operating activities $ 17,688 $ 18,039 $ 58,383 $ 65,849
Net cash used for investing activities 25,670 10,312 95,203 64,728
Weighted average shares outstanding:
Basic 33,403 33,226 33,371 33,206
Diluted 33,692 33,475 33,672 33,389

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 57 and 52 tractors as of September 30, 2014, and 2013, 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.