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Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 21, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for the quarter ended March 31, 2016. Net income improved 2.4% over 2015 first quarter earnings of $8.0 million, or 24 cents per diluted share, excluding a $3.7 million gain on the disposition of a facility. Net income for the 2015 quarter, including the gain, was $10.2 million, or 30 cents per diluted share. The disposition was part of Marten’s ongoing program to expand and update the footprint of its facilities.

Operating revenue, net of both fuel surcharges and revenue from the Company’s dry container service discontinued in March 2015, improved 8.9%, to $151.9 million, for the first quarter of 2016 from $139.4 million for the first quarter of 2015. Operating revenue increased to $161.9 million for the 2016 quarter from $161.3 million for the 2015 quarter, despite substantially lower fuel surcharges due to decreased fuel prices in 2016. Fuel surcharge revenue decreased to $10.0 million for the first quarter of 2016 from $20.6 million for the 2015 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.7% for the first quarter of 2016. The operating ratio, net of both the gain on the facility disposition and fuel surcharges, was 90.3% for the first quarter of 2015.

Chairman and Chief Executive Officer Randolph L. Marten said, “In the face of pricing pressures and a soft freight market since last year’s second quarter, we have continued to demonstrate disciplined execution of our unique, multifaceted and diverse business model. We successfully grew our average number of truckload and dedicated tractors by 384 tractors, or 16.5%, year over year, and paid off our December 31, 2015 debt balance of $37.9 million during the quarter. We believe that we are well-positioned to profitably capitalize on further growth opportunities within each of our transportation service platforms 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, 2015. 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)
March 31, December 31,
(In thousands, except share information) 2016 2015
ASSETS
Current assets:
Cash and cash equivalents $1,156 $ 434
Receivables:
Trade, net 65,285 70,597
Other 4,719 10,885
Prepaid expenses and other 16,829 18,134
Total current assets 87,989 100,050
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 723,457 724,597
Accumulated depreciation (204,410) (196,588)
Net property and equipment 519,047 528,009
Other assets 3,356 3,469
Total assets $610,392 $631,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $44,431 $33,641
Insurance and claims accruals 17,105 16,235
Total current liabilities 61,536 49,876
Long-term debt - 37,867
Deferred income taxes 138,044 134,364
Total liabilities 199,580 222,107
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; 32,419,481 shares
at March 31, 2016, and 32,759,806 shares at
December 31, 2015, issued and outstanding 324 328
Additional paid-in capital 70,481 76,468
Retained earnings 340,007 332,625
Total stockholders’ equity 410,812 409,421
Total liabilities and stockholders’ equity $610,392 $631,528

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Ended March 31,
(In thousands, except per share information) 2016 2015
Operating revenue $161,929 $161,287
Operating expenses (income):
Salaries, wages and benefits 54,830 48,808
Purchased transportation 28,035 29,504
Fuel and fuel taxes 19,630 26,476
Supplies and maintenance 10,499 10,442
Depreciation 20,047 17,827
Operating taxes and licenses 2,185 1,876
Insurance and claims 7,355 8,090
Communications and utilities 1,620 1,528
Gain on disposition of revenue equipment (1,434) (1,161)
Gain on disposition of facility - (3,712)
Other 5,037 4,298
Total operating expenses 147,804 143,976
Operating income 14,125 17,311
Other 215 15
Income before income taxes 13,910 17,296
Provision for income taxes 5,717 7,108
Net income $8,193 $10,188
Basic earnings per common share $0.25 $0.30
Diluted earnings per common share $0.25 $0.30
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) 2016 2015 2016 vs. 2015 2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue $82,942 $86,811 $ (3,869) (4.5)%
Truckload fuel surcharge revenue 7,112 14,590 (7,478) (51.3)
Total Truckload revenue 90,054 101,401 (11,347) (11.2)
Dedicated revenue, net of fuel
surcharge revenue 35,510 19,863 15,647 78.8
Dedicated fuel surcharge revenue 1,587 2,591 (1,004) (38.7)
Total Dedicated revenue 37,097 22,454 14,643 65.2
Intermodal revenue, net of fuel
surcharge revenue 15,854 17,019 (1,165) (6.8)
Intermodal fuel surcharge revenue 1,347 3,373 (2,026) (60.1)
Total Intermodal revenue 17,201 20,392 (3,191) (15.6)
Brokerage revenue 17,577 17,040 537 3.2
Total operating revenue $161,929 $161,287 $642 0.4%
Operating income:
Truckload $6,940 $9,602 $ (2,662) (27.7)%
Dedicated 4,324 2,004 2,320 115.8
Intermodal 1,929 1,251 678 54.2
Brokerage 932 742 190 25.6
Total operating income before gain
on disposition of facility 14,125 13,599 526 3.9
Gain on disposition of facility - 3,712 (3,712) (100.0)
Total operating income $14,125 $17,311 $ (3,186) (18.4)%
Operating ratio:
Truckload 92.3% 90.5%
Dedicated 88.3 91.1
Intermodal 88.8 93.9
Brokerage 94.7 95.6
Consolidated operating ratio before gain
on disposition of facility 91.3% 91.6%
Consolidated operating ratio 91.3% 89.3%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31,
2016 2015
Truckload Segment:
Revenue (in thousands) $ 90,054 $ 101,401
Average revenue, net of fuel surcharges, per tractor per week(1) $3,366 $ 3,606
Average tractors(1) 1,896 1,872
Average miles per trip 642 705
Non-revenue miles percentage(2) 9.6% 9.2%
Total miles (in thousands) 44,471 47,530
Dedicated Segment:
Revenue (in thousands) $ 37,097 $ 22,454
Average revenue, net of fuel surcharges, per tractor per week(1) $3,375 $3,442
Average tractors(1) 809 449
Average miles per trip 314 375
Non-revenue miles percentage(2) 0.8% 2.3%
Total miles (in thousands) 18,521 11,075
Intermodal Segment:
Revenue (in thousands) $ 17,201 $ 20,392
Loads 8,696 9,367
Average tractors 76 96
Brokerage Segment:
Revenue (in thousands) $ 17,577 $ 17,040
Loads 12,951 10,850
At March 31, 2016 and March 31, 2015:
Total tractors(1) 2,784 2,422
Average age of company tractors (in years) 1.6 1.8
Total trailers 4,725 4,327
Average age of company trailers (in years) 2.7 2.6
Ratio of trailers to tractors(1) 1.7 1.8
Three Months
Ended March 31,
(In thousands) 2016 2015
Net cash provided by operating activities $ 55,065 $ 53,162
Net cash used for investing activities 9,553 6,762
Net cash used for financing activities 44,790 24, 823
Weighted average shares outstanding:
Basic 32,454 33,458
Diluted 32,639 33,761

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 79 and 54 tractors as of March 31, 2016 and 2015, 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.