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Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 14, 2015 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 92.7% increase in net income to $10.2 million, or 30 cents per diluted share, for the first quarter ended March 31, 2015, from $5.3 million, or 16 cents per diluted share, for the first quarter of 2014. Results for the first quarter of 2015 included a gain on the disposition of a facility of $3.7 million, or 6 cents per diluted share. The disposition is part of the Company's ongoing program to expand and update the footprint of its facilities throughout the United States.

Operating revenue, consisting of revenue from truckload, dedicated, intermodal and brokerage operations, increased 1.2% to $161.3 million for the first quarter of 2015 from $159.4 million for the first quarter of 2014. Operating revenue, net of fuel surcharges, improved 10.3% to $140.7 million for the 2015 quarter from $127.5 million for the 2014 quarter. Fuel surcharge revenue decreased to $20.6 million for the first quarter of 2015 from $31.9 million for the 2014 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.7% for the first quarter of 2015 from 93.2% for the first quarter of 2014. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, improved to 90.3% for the first quarter of 2015.

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased with our strong performance in the first quarter and believe we can leverage the solid foundation provided by our truckload, dedicated, intermodal and brokerage operations to take advantage of the current and expected tightening capacity for continued profitable growth. We are also encouraged by the growth of our dedicated operations, with our segment operating revenue, net of fuel surcharges, growing 85.2% to $19.9 million for the first quarter of 2015 from $10.7 million for last year's first quarter. Our dedicated offering addresses our customers' desire for customized transportation solutions tailored to meet their individual requirements as well as our drivers' desire for consistent hours and routes in close proximity to their homes."

"We have also continued to make great strides in the profitability of our intermodal operations, improving our operating ratio, net of fuel surcharges, to 92.6% for the first quarter of 2015 from 94.7% for last year's fourth quarter. We expect this positive trend to continue in 2015 as we continue to see the benefit of rate increases, lane selectivity and improvements in rail service, along with our disposal of the overhead-intensive containers that were used in a portion of our intermodal operations."

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, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
March
31,
December 31,
(In thousands, except share information) 2015 2014
ASSETS
Current assets:
Cash and cash equivalents $ 21,700 $ 123
Receivables:
Trade, net 68,686 72,263
Other 3,475 17,740
Prepaid expenses and other 15,168 16,860
Deferred income taxes 3,145 3,199
Total current assets 112,174 110,185
Property and equipment:
Revenue equipment, buildings and land, office equipment and other 651,229 645,972
Accumulated depreciation (186,371) (180,223)
Net property and equipment 464,858 465,749
Other assets 3,581 3,726
TOTAL ASSETS $ 580,613 $ 579,660
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash balances $ -- $ 745
Accounts payable and accrued liabilities 41,985 29,775
Insurance and claims accruals 14,832 13,998
Total current liabilities 56,817 44,518
Long-term debt -- 24,373
Deferred income taxes 125,095 122,843
Total liabilities 181,912 191,734
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; 48,000,000 shares authorized; 33,503,392 shares at March 31, 2015, and 33,418,829 shares at December 31, 2014, issued and outstanding 335 334
Additional paid-in capital 88,793 87,370
Retained earnings 309,573 300,222
Total stockholders' equity 398,701 387,926
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 580,613 $ 579,660
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Ended March 31,
(In thousands, except per share information) 2015 2014
OPERATING REVENUE $ 161,287 $ 159,409
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits 48,808 43,732
Purchased transportation 29,504 28,130
Fuel and fuel taxes 26,476 39,826
Supplies and maintenance 10,442 10,435
Depreciation 17,827 16,371
Operating taxes and licenses 1,876 1,713
Insurance and claims 8,090 6,125
Communications and utilities 1,528 1,433
Gain on disposition of revenue equipment (1,161) (663)
Gain on disposition of facility (3,712) --
Other 4,298 3,667
Total operating expenses 143,976 150,769
OPERATING INCOME 17,311 8,640
OTHER 15 (98)
INCOME BEFORE INCOME TAXES 17,296 8,738
PROVISION FOR INCOME TAXES 7,108 3,451
NET INCOME $ 10,188 $ 5,287
BASIC EARNINGS PER COMMON SHARE $ 0.30 $ 0.16
DILUTED EARNINGS PER COMMON SHARE $ 0.30 $ 0.16
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) 2015 2014 2015 vs. 2014 2015 vs. 2014
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $ 86,811 $ 86,802 $ 9 --%
Truckload fuel surcharge revenue 14,590 23,712 (9,122) (38.5)
Total Truckload revenue 101,401 110,514 (9,113) (8.2)
Dedicated revenue, net of fuel surcharge revenue 19,863 10,728 9,135 85.2
Dedicated fuel surcharge revenue 2,591 2,822 (231) (8.2)
Total Dedicated revenue 22,454 13,550 8,904 65.7
Intermodal revenue, net of fuel surcharge revenue 17,019 18,354 (1,335) (7.3)
Intermodal fuel surcharge revenue 3,373 5,336 (1,963) (36.8)
Total Intermodal revenue 20,392 23,690 (3,298) (13.9)
Brokerage revenue 17,040 11,655 5,385 46.2
Total operating revenue $ 161,287 $ 159,409 $ 1,878 1.2%
Operating income:
Truckload $ 9,602 $ 6,178 $ 3,424 55.4%
Dedicated 2,004 1,322 682 51.6
Intermodal 1,251 483 768 159.0
Brokerage 742 657 85 12.9
Total operating income before gain on disposition of facility 13,599 8,640 4,959 57.4
Gain on disposition of facility 3,712 -- 3,712 N/A
Total operating income $ 17,311 $ 8,640 $ 8,671 100.4%
Operating ratio:
Truckload 90.5% 94.4%
Dedicated 91.1 90.2
Intermodal 93.9 98.0
Brokerage 95.6 94.4
Consolidated operating ratio before gain on disposition of facility 91.6% 94.6%
Consolidated operating ratio 89.3% 94.6%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31,
2015 2014
Truckload Segment:
Revenue (in thousands) $ 101,401 $ 110,514
Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,606 $ 3,507
Average tractors(1) 1,872 1,925
Average miles per trip 705 683
Non-revenue miles percentage(2) 9.2% 9.3%
Total miles (in thousands) 47,530 49,503
Dedicated Segment:
Revenue (in thousands) $ 22,454 $ 13,550
Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,442 $ 3,447
Average tractors(1) 449 242
Average miles per trip 375 338
Non-revenue miles percentage(2) 2.3% 1.3%
Total miles (in thousands) 11,075 5,916
Intermodal Segment:
Revenue (in thousands) $ 20,392 $ 23,690
Loads 9,367 10,523
Average tractors 96 98
Brokerage Segment:
Revenue (in thousands) $ 17,040 $ 11,655
Loads 10,850 7,708
At March 31, 2015 and March 31, 2014:
Total tractors(1) 2,422 2,275
Average age of company tractors (in years) 1.8 1.9
Total trailers 4,327 4,163
Average age of company trailers (in years) 2.6 2.5
Ratio of trailers to tractors(1) 1.8 1.8
Three Months
Ended March 31,
2015 2014
(In thousands)
Net cash provided by operating activities $ 53,162 $ 27,508
Net cash used for investing activities 6,762 21,384
Weighted average shares outstanding:
Basic 33,458 33,340
Diluted 33,761 33,631
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 54 and 41 tractors as of March 31, 2015, and 2014, respectively.
(2) Represents the percentage of miles for which the company is not compensated.

Source:Marten Transport, Ltd.