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Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 14, 2015 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq: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.

Source:Marten Transport, Ltd.