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Marten Transport Announces Third Quarter Results

MONDOVI, Wis., Oct. 20, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported net income of $8.4 million, or 26 cents per diluted share, for the third quarter ended September 30, 2016, compared with $8.4 million, or 25 cents per diluted share, for the third quarter of 2015. For the nine-month period ended September 30, 2016, net income was $25.2 million, or 77 cents per diluted share. Net income for the first nine months of 2015 was $27.0 million, or 80 cents per diluted share, and, excluding a $3.7 million facility disposition gain, was $24.8 million, or 73 cents per diluted share.

Operating revenue was $170.5 million for the third quarter of 2016 compared with $171.3 million for the third quarter of 2015, and increased to $498.5 million for the first nine months of 2016 from $496.2 million for the first nine months of 2015, despite substantially lower fuel surcharges due to decreased fuel prices in 2016. Operating revenue, net of fuel surcharges, improved 1.2% to $155.8 million for the 2016 quarter from $154.0 million for the 2015 quarter, and increased 5.0% to $460.5 million for the 2016 nine-month period from $438.6 million for the 2015 nine-month period. Fuel surcharge revenue decreased to $14.7 million for the third quarter of 2016 from $17.4 million for the 2015 quarter, and decreased to $37.9 million for the 2016 nine-month period from $57.6 million for the 2015 nine-month period.

Operating expenses as a percentage of operating revenue improved to 91.3% for the third quarter of 2016 from 91.6% for the third quarter of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 90.5% for the third quarter of 2016 from 90.7% for the third quarter of 2015.

Operating expenses as a percentage of operating revenue was 91.2% for the first nine months of 2016 and 90.8% for the first nine months of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.5% for the 2016 nine-month period. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, was 90.4% for the 2015 nine-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “The balanced strength of our multifaceted and diverse business model and the smart, disciplined work of our people drove increased results despite a continued soft freight market with excess capacity, which we expect to continue into 2017. This quarter we achieved our sixth consecutive year-over-year increase in quarterly profitability within each of our dedicated, intermodal and brokerage segments. We successfully grew our average number of truckload and dedicated tractors by 283 tractors, or 11.6%, in this year’s first nine months over the first nine months of 2015. We believe that we are well-positioned to capitalize on further profitable growth opportunities with our unique business model.”

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 891 dry trailers operating as of September 30, 2016. 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)
September 30, December 31,
(In thousands, except share information) 2016 2015
ASSETS
Current assets:
Cash and cash equivalents$ 175 $ 434
Receivables:
Trade, net 69,874 70,597
Other 3,939 10,885
Prepaid expenses and other 16,715 18,134
Total current assets 90,703 100,050
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 754,448 724,597
Accumulated depreciation (202,092) (196,588)
Net property and equipment 552,356 528,009
Other assets 2,881 3,469
Total assets$ 645,940 $ 631,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$ 46,121 $ 33,641
Insurance and claims accruals 17,761 16,235
Checks issued in excess of cash balances 199 -
Total current liabilities 64,081 49,876
Long-term debt 8,549 37,867
Deferred income taxes 144,610 134,364
Total liabilities 217,240 222,107
Stockholders’ equity:
Preferred stock, $.01 par value per share;
2,000,000 shares authorized; no shares
issued and outstanding - -
Common stock, $.01 par value per share;
96,000,000 shares authorized; 32,571,400 shares
at September 30, 2016, and 32,759,806 shares at
December 31, 2015, issued and outstanding 326 328
Additional paid-in capital 73,024 76,468
Retained earnings 355,350 332,625
Total stockholders’ equity 428,700 409,421
Total liabilities and stockholders’ equity$ 645,940 $ 631,528


MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
(In thousands, except per share information) 2016 2015 2016 2015
Operating revenue$ 170,464 $ 171,346 $ 498,483 $ 496,221
Operating expenses (income):
Salaries, wages and benefits 57,090 55,129 168,116 154,901
Purchased transportation 27,775 30,756 81,997 88,343
Fuel and fuel taxes 24,845 26,556 68,405 81,313
Supplies and maintenance 11,618 11,351 33,025 32,735
Depreciation 20,790 19,331 61,205 55,469
Operating taxes and licenses 2,297 2,295 6,732 6,185
Insurance and claims 8,194 7,105 23,245 21,973
Communications and utilities 1,584 1,431 4,701 4,347
Gain on disposition of revenue equipment (3,325) (1,895) (7,462) (4,843)
Gain on disposition of facility - - - (3,712)
Other 4,727 4,933 14,749 13,684
Total operating expenses 155,595 156,992 454,713 450,395
Operating income 14,869 14,354 43,770 45,826
Other 342 126 794 147
Income before income taxes 14,527 14,228 42,976 45,679
Provision for income taxes 6,090 5,818 17,815 18,724
Net income$ 8,437 $ 8,410 $ 25,161 $ 26,955
Basic earnings per common share$ 0.26 $ 0.25 $ 0.77 $ 0.80
Diluted earnings per common share$ 0.26 $ 0.25 $ 0.77 $ 0.80
Dividends declared per common share$ 0.025 $ 0.025 $ 0.075 $ 0.075

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
DollarPercentage
ChangeChange
Three MonthsThree MonthsThree Months
EndedEndedEnded
September 30, September 30, September 30,
(Dollars in thousands) 2016 2015 2016 vs. 20152016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue$ 85,469 $ 86,594 $ (1,125) (1.3)%
Truckload fuel surcharge revenue 9,726 11,777 (2,051) (17.4)
Total Truckload revenue 95,195 98,371 (3,176) (3.2)
Dedicated revenue, net of fuel
surcharge revenue 37,669 31,477 6,192 19.7
Dedicated fuel surcharge revenue 2,967 2,937 30 1.0
Total Dedicated revenue 40,636 34,414 6,222 18.1
Intermodal revenue, net of fuel
surcharge revenue 16,381 17,158 (777) (4.5)
Intermodal fuel surcharge revenue 1,979 2,673 (694) (26.0)
Total Intermodal revenue 18,360 19,831 (1,471) (7.4)
Brokerage revenue 16,273 18,730 (2,457) (13.1)
Total operating revenue $170,464 $171,346 $(882) (0.5)%
Operating income:
Truckload$ 6,509 $ 8,204 $ (1,695) (20.7)%
Dedicated 5,505 3,929 1,576 40.1
Intermodal 1,645 1,152 493 42.8
Brokerage 1,210 1,069 141 13.2
Total operating income$ 14,869 $ 14,354 $ 515 3.6%
Operating ratio:
Truckload 93.2% 91.7%
Dedicated 86.5 88.6
Intermodal 91.0 94.2
Brokerage 92.6 94.3
Consolidated operating ratio 91.3% 91.6%


MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
DollarPercentage
ChangeChange
Nine MonthsNine MonthsNine Months
EndedEndedEnded
September 30, September 30, September 30,
(Dollars in thousands) 2016 2015 2016 vs. 20152016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue$ 253,514 $ 262,227 $ (8,713) (3.3)%
Truckload fuel surcharge revenue 25,771 40,296 (14,525) (36.0)
Total Truckload revenue 279,285 302,523 (23,238) (7.7)
Dedicated revenue, net of fuel
surcharge revenue 109,833 73,941 35,892 48.5
Dedicated fuel surcharge revenue 7,175 8,331 (1,156) (13.9)
Total Dedicated revenue 117,008 82,272 34,736 42.2
Intermodal revenue, net of fuel
surcharge revenue 48,353 50,278 (1,925) (3.8)
Intermodal fuel surcharge revenue 4,990 8,991 (4,001) (44.5)
Total Intermodal revenue 53,343 59,269 (5,926) (10.0)
Brokerage revenue 48,847 52,157 (3,310) (6.3)
Total operating revenue$ 498,483 $ 496,221 $ 2,262 0.5%
Operating income:
Truckload$ 20,400 $ 27,614 $ (7,214) (26.1)%
Dedicated 14,963 8,496 6,467 76.1
Intermodal 5,396 3,372 2,024 60.0
Brokerage 3,011 2,632 379 14.4
Total operating income before gain
on disposition of facility 43,770 42,114 1,656 3.9
Gain on disposition of facility - 3,712 (3,712) (100.0)
Total operating income$ 43,770 $ 45,826 $ (2,056) (4.5)%
Operating ratio:
Truckload 92.7% 90.9%
Dedicated 87.2 89.7
Intermodal 89.9 94.3
Brokerage 93.8 95.0
Consolidated operating ratio before gain
on disposition of facility 91.2% 91.5%
Consolidated operating ratio 91.2% 90.8%



MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three MonthsNine Months
Ended September 30,Ended September 30,
2016 2015 2016 2015
Truckload Segment:
Revenue (in thousands)$95,195 $98,371 $279,285 $302,523
Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,440 $ 3,492 $ 3,417 $ 3,573
Average tractors(1) 1,890 1,887 1,896 1,882
Average miles per trip 617 643 628 675
Non-revenue miles percentage(2) 9.2% 9.3% 9.3% 9.3%
Total miles (in thousands) 46,734 45,811 137,495 141,170
Dedicated Segment:
Revenue (in thousands)$40,636 $34,414 $117,008 $82,272
Average revenue, net of fuel surcharges, per tractor per week(1)$ 3,471 $ 3,416 $ 3,426 $ 3,446
Average tractors(1) 826 701 819 550
Average miles per trip 295 341 304 358
Non-revenue miles percentage(2) 0.7% 1.2% 0.8% 1.6%
Total miles (in thousands) 19,035 16,533 56,507 39,882
Intermodal Segment:
Revenue (in thousands)$18,360 $19,831 $53,343 $59,269
Loads 9,223 9,531 26,674 27,765
Average tractors 75 86 76 91
Brokerage Segment:
Revenue (in thousands)$16,273 $18,730 $48,847 $52,157
Loads 12,416 13,208 36,795 34,832
At September 30, 2016 and September 30, 2015:
Total tractors(1) 2,770 2,685
Average age of company tractors (in years) 1.5 1.5
Total trailers 4,880 4,511
Average age of company trailers (in years) 2.7 2.6
Ratio of trailers to tractors(1) 1.8 1.7
Three MonthsNine Months
Ended September 30,Ended September 30,
(In thousands) 2016 2015 2016 2015
Net cash provided by operating activities$24,020 $29,646 $104,141 $101,422
Net cash (used for) investing activities (29,164) (60,191) (68,842) (103,526)
Net cash provided by (used for) financing activities 5,111 26,191 (35,558) 2,126
Weighted average shares outstanding:
Basic 32,531 33,622 32,476 33,555
Diluted 32,715 33,846 32,653 33,816

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 72 and 64 tractors as of September 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.