×

Marten Transport Announces Fourth Quarter and Year End Results

MONDOVI, Wis., Jan. 26, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 19.8% increase in net income to $35.7 million, or $1.06 per diluted share, for the year ended December 31, 2015 from $29.8 million, or 89 cents per diluted share, for 2014. Net income for the fourth quarter of 2015 was $8.8 million, or 26 cents per diluted share, compared with $9.0 million, or 27 cents per diluted share, for the fourth quarter of 2014, which was a record quarter for earnings. The fourth-quarter earnings improved sequentially from 2015 third-quarter net income of $8.4 million, or 25 cents per diluted share. Results for 2015 included a gain on the disposition of facilities of $392,000 for the fourth quarter and $4.1 million for the year which was part of the Company's ongoing program to expand and update the footprint of its facilities. Excluding the gain on the disposition of the facilities in 2015, diluted earnings per share was 26 cents for the fourth quarter and 99 cents for the year, and net income improved 11.7% to $33.3 million, the highest net income for any year in Marten's history.

Operating revenue, net of fuel surcharges, improved 6.6% to $154.0 million for the fourth quarter of 2015 from $144.6 million for the fourth quarter of 2014, and improved 8.2% to $592.6 million for 2015 from $547.7 million for 2014. Reflecting substantially lower fuel surcharges in 2015, operating revenue was $168.8 million for the 2015 quarter compared with $173.5 million for the 2014 quarter, and was $665.0 million for 2015 compared with $672.9 million for 2014. Fuel surcharge revenue decreased to $14.7 million for the fourth quarter of 2015 from $29.0 million for the 2014 quarter, and decreased to $72.3 million for 2015 from $125.2 million for 2014.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.1% for the fourth quarter of 2015 and 88.7% for the fourth quarter of 2014. The ratio improved to 89.7% for 2015 from 90.7% for 2014. The operating ratio, net of both the gain on the facility dispositions and fuel surcharges, improved to 90.4% for the year ended December 31, 2015.

Chairman and Chief Executive Officer Randolph L. Marten said, "We have continued to demonstrate the strength of our multifaceted business model in 2015 despite a soft freight market since the second quarter. We have increased our truckload and dedicated tractor count by 340 tractors, or 14.6%, during 2015 due to the continued expansion of our dedicated operations. In 2015, we organically grew our truckload and dedicated revenue, net of fuel surcharges, by 9.7%; our brokerage revenue by 24.8%; and our intermodal revenue, net of both fuel surcharges and revenue from our discontinued dry container service, by 14.2% while improving our operating ratio and earning the highest net income for any year in our history. We are confident in our ability to drive continued profitable growth across all of our business units in 2016."

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.

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.


MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
December 31,December 31,
(In thousands, except share information) 2015 2014
ASSETS
Current assets:
Cash and cash equivalents$434 $123
Receivables:
Trade, net 70,597 72,263
Other 10,885 17,740
Prepaid expenses and other 18,134 16,860
Total current assets 100,050 106,986
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 724,597 645,972
Accumulated depreciation (196,588) (180,223)
Net property and equipment 528,009 465,749
Other assets 3,469 3,726
Total assets$631,528 $576,461
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities$33,641 $29,775
Insurance and claims accruals 16,235 13,998
Checks issued in excess of cash balances - 745
Total current liabilities 49,876 44,518
Long-term debt 37,867 24,373
Deferred income taxes 134,364 119,644
Total liabilities 222,107 188,535
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; 32,759,806 shares
at December 31, 2015, and 33,418,829 shares at
December 31, 2014, issued and outstanding



328



334
Additional paid-in capital 76,468 87,370
Retained earnings 332,625 300,222
Total stockholders' equity 409,421 387,926
Total liabilities and stockholders' equity$631,528 $576,461


MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three MonthsYear
Ended December 31,Ended December 31,
(In thousands, except per share information) 2015 2014 2015 2014
Operating revenue$168,773 $173,547 $664,994 $672,929
Operating expenses (income):
Salaries, wages and benefits 54,554 48,630 209,455 183,464
Purchased transportation 29,687 31,234 118,030 123,017
Fuel and fuel taxes 23,269 34,213 104,582 153,931
Supplies and maintenance 10,584 10,431 43,319 41,490
Depreciation 19,854 17,754 75,323 68,243
Operating taxes and licenses 2,729 1,862 8,914 7,140
Insurance and claims 7,279 8,247 29,252 27,240
Communications and utilities 1,539 1,547 5,886 5,798
Gain on disposition of revenue equipment (741) (1,027) (5,584) (4,387)
Gain on disposition of facilities (392) - (4,104) -
Other 5,174 4,264 18,858 15,987
Total operating expenses 153,536 157,155 603,931 621,923
Operating income 15,237 16,392 61,063 51,006
Other 225 269 372 (667)
Income before income taxes 15,012 16,123 60,691 51,673
Provision for income taxes 6,222 7,154 24,946 21,839
Net income$8,790 $8,969 $35,745 $29,834
Basic earnings per common share$0.26 $0.27 $1.07 $0.89
Diluted earnings per common share$0.26 $0.27 $1.06 $0.89
Dividends declared per common share$0.025 $0.025 $0.10 $0.10

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
DollarPercentage
ChangeChange
Three MonthsThree MonthsThree Months
EndedEndedEnded
December 31,December 31,December 31,
(Dollars in thousands) 2015 2014 2015 vs. 20142015 vs. 2014
Operating revenue:
Truckload revenue, net of fuel surcharge revenue$85,874 $91,825 $(5,951) (6.5)%
Truckload fuel surcharge revenue 9,964 20,583 (10,619) (51.6)
Total Truckload revenue 95,838 112,408 (16,570) (14.7)
Dedicated revenue, net of fuel surcharge revenue 33,323 18,280 15,043 82.3
Dedicated fuel surcharge revenue 2,677 3,681 (1,004) (27.3)
Total Dedicated revenue 36,000 21,961 14,039 63.9
Intermodal revenue, net of fuel surcharge revenue 15,599 17,458 (1,859) (10.6)
Intermodal fuel surcharge revenue 2,090 4,716 (2,626) (55.7)
Total Intermodal revenue 17,689 22,174 (4,485) (20.2)
Brokerage revenue 19,246 17,004 2,242 13.2
Total operating revenue$168,773 $173,547 $(4,774) (2.8)%
Operating income:
Truckload$7,903 $12,440 $(4,537) (36.5)%
Dedicated 4,322 2,335 1,987 85.1
Intermodal 1,460 920 540 58.7
Brokerage 1,160 697 463 66.4
Total operating income before gain on disposition of facilities 14,845 16,392 (1,547) (9.4)
Gain on disposition of facilities 392 - 392 N/A
Total operating income$15,237 $16,392 $(1,155) (7.0)%
Operating ratio:
Truckload 91.8% 88.9%
Dedicated 88.0 89.4
Intermodal 91.7 95.9
Brokerage 94.0 95.9
Consolidated operating ratio before gain on disposition of facilities 91.2% 90.6%
Consolidated operating ratio 91.0% 90.6%


MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
DollarPercentage
ChangeChange
YearYearYear
EndedEndedEnded
December 31,December 31,December 31,
(Dollars in thousands) 2015 2014 2015 vs. 20142015 vs. 2014
Operating revenue:
Truckload revenue, net of fuel surcharge revenue$348,101 $358,458 $(10,357) (2.9)%
Truckload fuel surcharge revenue 50,260 89,815 (39,555) (44.0)
Total Truckload revenue 398,361 448,273 (49,912) (11.1)
Dedicated revenue, net of fuel surcharge revenue 107,264 56,609 50,655 89.5
Dedicated fuel surcharge revenue 11,008 13,743 (2,735) (19.9)
Total Dedicated revenue 118,272 70,352 47,920 68.1
Intermodal revenue, net of fuel surcharge revenue 65,877 75,447 (9,570) (12.7)
Intermodal fuel surcharge revenue 11,081 21,645 (10,564) (48.8)
Total Intermodal revenue 76,958 97,092 (20,134) (20.7)
Brokerage revenue 71,403 57,212 14,191 24.8
Total operating revenue$664,994 $672,929 $(7,935) (1.2)%
Operating income:
Truckload$35,517 $39,483 $(3,966) (10.0)%
Dedicated 12,818 7,136 5,682 79.6
Intermodal 4,832 1,735 3,097 178.5
Brokerage 3,792 2,652 1,140 43.0
Total operating income before gain on disposition of facilities 56,959 51,006 5,953 11.7
Gain on disposition of facilities 4,104 - 4,104 N/A
Total operating income$61,063 $51,006 $10,057 19.7%
Operating ratio:
Truckload 91.1% 91.2%
Dedicated 89.2 89.9
Intermodal 93.7 98.2
Brokerage 94.7 95.4
Consolidated operating ratio before gain on disposition of facilities 91.4% 92.4%
Consolidated operating ratio 90.8% 92.4%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three MonthsYear
Ended December 31,Ended December 31,
2015 2014 2015 2014
Truckload Segment:
Revenue (in thousands)$95,838 $112,408 $398,361 $448,273
Average revenue, net of fuel surcharges, per
tractor per week(1)

$

3,400

$

3,698

$

3,529

$

3,618
Average tractors(1) 1,921 1,890 1,892 1,900
Average miles per trip 639 696 666 682
Non-revenue miles percentage(2) 9.4% 8.5% 9.4% 9.3%
Total miles (in thousands) 45,098 50,009 186,268 199,168
Dedicated Segment:
Revenue (in thousands)$36,000 $21,961 $118,272 $70,352
Average revenue, net of fuel surcharges, per
tractor per week(1)

$

3,405

$

3,359

$

3,433

$

3,322
Average tractors(1) 745 414 599 327
Average miles per trip 324 346 347 337
Non-revenue miles percentage(2) 1.5% 2.8% 1.6% 2.4%
Total miles (in thousands) 17,499 10,233 57,381 31,543
Intermodal Segment:
Revenue (in thousands)$17,689 $22,174 $76,958 $97,092
Loads 8,639 10,104 36,404 44,336
Average tractors 82 105 89 110
Brokerage Segment:
Revenue (in thousands)$19,246 $17,004 $71,403 $57,212
Loads 13,228 10,714 48,060 36,712
At December 31, 2015 and December 31, 2014:
Total tractors(1) 2,740 2,420
Average age of company tractors (in years) 1.5 1.7
Total trailers 4,700 4,265
Average age of company trailers (in years) 2.6 2.5
Ratio of trailers to tractors(1) 1.7 1.8
Three MonthsYear
Ended December 31,Ended December 31,
(In thousands) 2015 2014 2015 2014
Net cash provided by operating activities$26,816 $23,588 $128,238 $81,971
Net cash used for investing activities 21,555 23,403 125,081 118,606
Weighted average shares outstanding:
Basic 33,248 33,411 33,477 33,381
Diluted 33,434 33,697 33,715 33,678
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 65 and 52 tractors as of December 31, 2015 and 2014, respectively.
(2) Represents the percentage of miles for which the company is not compensated.

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

Source:Marten Transport, Ltd.