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Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 19, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 2.1% increase in net income to $8.5 million, or 26 cents per diluted share, for the second quarter ended June 30, 2016, from $8.4 million, or 25 cents per diluted share, for the second quarter of 2015. For the six-month period ended June 30, 2016, net income was $16.7 million, or 51 cents per diluted share. Net income for the first six months of 2015 was $18.5 million, or 55 cents per diluted share, and, excluding a $3.7 million facility disposition gain, was $16.4 million, or 48 cents per diluted share.

Operating revenue improved to $166.1 million for the second quarter of 2016 from $163.6 million for the second quarter of 2015, and increased to $328.0 million for the first six months of 2016 from $324.9 million for the first six months of 2015, despite substantially lower fuel surcharges due to decreased fuel prices in 2016. Operating revenue, net of fuel surcharges, improved 6.2% to $152.9 million for the 2016 quarter from $143.9 million for the 2015 quarter, and increased 7.1% to $304.8 million for the 2016 six-month period from $284.6 million for the 2015 six-month period. Fuel surcharge revenue decreased to $13.2 million for the second quarter of 2016 from $19.7 million for the 2015 quarter, and decreased to $23.3 million for the 2016 six-month period from $40.2 million for the 2015 six-month period.

Operating expenses as a percentage of operating revenue was 91.1% for the second quarter of 2016 and 91.3% for the second quarter of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.3% for the second quarter of 2016 and 90.2% for the second quarter of 2015.

Operating expenses as a percentage of operating revenue was 91.2% for the first six months of 2016 and 90.3% for the first six months of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.5% for the 2016 six-month period. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, was 90.2% for the 2015 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We have continued to demonstrate the strength of our multifaceted and diverse business model which drove growth in our top line revenue and profitability despite pricing pressures and a soft freight market. We successfully grew our average number of truckload and dedicated tractors by 362 tractors, or 15.4%, in the first half of this year over the first half of 2015. We are confident in our ability to capitalize on further profitable growth opportunities with our unique business model and the dedicated people who have built it with their smart, hard work.”

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 include our discussion of the Company’s prospects for future growth and 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)
June 30, December 31,
(In thousands, except share information) 2016 2015
ASSETS
Current assets:
Cash and cash equivalents $ 208 $ 434
Receivables:
Trade, net 66,076 70,597
Other 3,065 10,885
Prepaid expenses and other 17,122 18,134
Total current assets 86,471 100,050
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 744,234 724,597
Accumulated depreciation (206,317) (196,588)
Net property and equipment 537,917 528,009
Other assets 3,168 3,469
Total assets $ 627,556 $ 631,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 45,129 $ 33,641
Insurance and claims accruals 17,400 16,235
Total current liabilities 62,529 49,876
Long-term debt 4,376 37,867
Deferred income taxes 141,194 134,364
Total liabilities 208,099 222,107
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; 32,466,081 shares
at June 30, 2016, and 32,759,806 shares at
December 31, 2015, issued and outstanding 325 328
Additional paid-in capital 71,405 76,468
Retained earnings 347,727 332,625
Total stockholders’ equity 419,457 409,421
Total liabilities and stockholders’ equity $ 627,556 $ 631,528

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) 2016 2015 2016 2015
Operating revenue $166,090 $163,588 $328,019 $324,875
Operating expenses (income):
Salaries, wages and benefits 56,196 50,964 111,026 99,772
Purchased transportation 26,187 28,083 54,222 57,587
Fuel and fuel taxes 23,930 28,281 43,560 54,757
Supplies and maintenance 10,908 10,942 21,407 21,384
Depreciation 20,368 18,311 40,415 36,138
Operating taxes and licenses 2,250 2,014 4,435 3,890
Insurance and claims 7,696 6,778 15,051 14,868
Communications and utilities 1,497 1,388 3,117 2,916
Gain on disposition of revenue equipment (2,703) (1,787) (4,137) (2,948)
Gain on disposition of facility - - - (3,712)
Other 4,985 4,453 10,022 8,751
Total operating expenses 151,314 149,427 299,118 293,403
Operating income 14,776 14,161 28,901 31,472
Other 237 6 452 21
Income before income taxes 14,539 14,155 28,449 31,451
Provision for income taxes 6,008 5,798 11,725 12,906
Net income $8,531 $8,357 $16,724 $18,545
Basic earnings per common share $0.26 $0.25 $0.52 $0.55
Diluted earnings per common share $0.26 $0.25 $0.51 $0.55
Dividends declared per common share $0.025 $0.025 $0.05 $0.05

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) 2016 2015 2016 vs. 2015 2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue $85,103 $88,822 $ (3,719) (4.2)%
Truckload fuel surcharge revenue 8,933 13,929 (4,996) (35.9)
Total Truckload revenue 94,036 102,751 (8,715) (8.5)
Dedicated revenue, net of fuel
surcharge revenue 36,654 22,601 14,053 62.2
Dedicated fuel surcharge revenue 2,621 2,803 (182) (6.5)
Total Dedicated revenue 39,275 25,404 13,871 54.6
Intermodal revenue, net of fuel
surcharge revenue 16,118 16,101 17 0.1
Intermodal fuel surcharge revenue 1,664 2,945 (1,281) (43.5)
Total Intermodal revenue 17,782 19,046 (1,264) (6.6)
Brokerage revenue 14,997 16,387 (1,390) (8.5)
Total operating revenue $166,090 $163,588 $2,502 1.5%
Operating income:
Truckload $6,951 $9,808 $ (2,857) (29.1)%
Dedicated 5,134 2,563 2,571 100.3
Intermodal 1,822 969 853 88.0
Brokerage 869 821 48 5.8
Total operating income $14,776 $14,161 $615 4.3%
Operating ratio:
Truckload 92.6% 90.5%
Dedicated 86.9 89.9
Intermodal 89.8 94.9
Brokerage 94.2 95.0
Consolidated operating ratio 91.1% 91.3%

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) 2016 2015 2016 vs. 2015 2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue $168,045 $175,633 $ (7,588) (4.3)%
Truckload fuel surcharge revenue 16,045 28,519 (12,474) (43.7)
Total Truckload revenue 184,090 204,152 (20,062) (9.8)
Dedicated revenue, net of fuel
surcharge revenue 72,164 42,464 29,700 69.9
Dedicated fuel surcharge revenue 4,208 5,394 (1,186) (22.0)
Total Dedicated revenue 76,372 47,858 28,514 59.6
Intermodal revenue, net of fuel
surcharge revenue 31,972 33,120 (1,148) (3.5)
Intermodal fuel surcharge revenue 3,011 6,318 (3,307) (52.3)
Total Intermodal revenue 34,983 39,438 (4,455) (11.3)
Brokerage revenue 32,574 33,427 (853) (2.6)
Total operating revenue $328,019 $324,875 $3,144 1.0%
Operating income:
Truckload $13,891 $19,410 $ (5,519) (28.4)%
Dedicated 9,458 4,567 4,891 107.1
Intermodal 3,751 2,220 1,531 69.0
Brokerage 1,801 1,563 238 15.2
Total operating income before gain
on disposition of facility 28,901 27,760 1,141 4.1
Gain on disposition of facility - 3,712 (3,712) (100.0)
Total operating income $28,901 $31,472 $ (2,571) (8.2)%
Operating ratio:
Truckload 92.5% 90.5%
Dedicated 87.6 90.5
Intermodal 89.3 94.4
Brokerage 94.5 95.3
Consolidated operating ratio before gain
on disposition of facility 91.2% 91.5%
Consolidated operating ratio 91.2% 90.3%


MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three MonthsSix Months
Ended June 30,Ended June 30,
2016 2015 2016 2015
Truckload Segment:
Revenue (in thousands)$ 94,036 $ 102,751 $ 184,090 $ 204,152
Average revenue, net of fuel surcharges, per tractor per week(1)$3,444 $3,623 $3,405 $3,615
Average tractors(1) 1,901 1,886 1,898 1,879
Average miles per trip 625 679 634 692
Non-revenue miles percentage(2) 9.1% 9.5% 9.3% 9.4%
Total miles (in thousands) 46,290 47,829 90,761 95,359
Dedicated Segment:
Revenue (in thousands)$ 39,275 $ 25,404 $ 76,372 $ 47,858
Average revenue, net of fuel surcharges, per tractor per week(1)$ 3,431 $3,493 $3,403 $3,469
Average tractors(1) 822 498 816 473
Average miles per trip 302 368 308 371
Non-revenue miles percentage(2) 0.8% 1.4% 0.8% 1.9%
Total miles (in thousands) 18,951 12,274 37,472 23,349
Intermodal Segment:
Revenue (in thousands)$ 17,782 $ 19,046 $ 34,983 $ 39,438
Loads 8,755 8,867 17,451 18,234
Average tractors 77 91 77 94
Brokerage Segment:
Revenue (in thousands)$ 14,997 $ 16,387 $ 32,574 $ 33,427
Loads 11,428 10,774 24,379 21,624
At June 30, 2016 and June 30, 2015:
Total tractors(1) 2,785 2,605
Average age of company tractors (in years) 1.6 1.6
Total trailers 4,856 4,397
Average age of company trailers (in years) 2.7 2.6
Ratio of trailers to tractors(1) 1.7 1.7
Three MonthsSix Months
Ended June 30,Ended June 30,
(In thousands) 2016 2015 2016 2015
Net cash provided by operating activities$ 25,056 $ 18,614 $ 80,121 $ 71,776
Net cash (used for) investing activities (30,125) (36,573) (39,678) (43,335)
Net cash provided by (used for) financing activities 4,121 758 (40,669) (24,065)
Weighted average shares outstanding:
Basic 32,441 33,582 32,448 33,521
Diluted 32,633 33,853 32,634 33,802

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 77 and 58 tractors as of June 30, 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.