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Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 20, 2017 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for each of the quarters ended March 31, 2017 and March 31, 2016.

Operating revenue improved 6.9% to $173.2 million for the first quarter of 2017 from $161.9 million for the first quarter of 2016. Operating revenue, net of fuel surcharges, improved 3.1% to $156.6 million for the 2017 quarter from $151.9 million for the 2016 quarter. Fuel surcharge revenue increased to $16.6 million for the first quarter of 2017 from $10.0 million for the 2016 quarter.

Operating expenses as a percentage of operating revenue was 92.0% for the first quarter of 2017 and 91.3% for the first quarter of 2016. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 91.1% for the 2017 quarter compared with 90.7% for the 2016 quarter.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our continuing earnings strength and by our organic growth in operating revenue across all four of our business segments, despite the continuing challenge of an unfavorable freight environment. This was also the ninth quarter in a row with year-over-year improvement in operating income for each of our dedicated, intermodal and brokerage segments. These top- and bottom-line results highlight the continued smart and disciplined execution of our unique multifaceted business model by our dedicated and experienced workforce. We are confident in our ability to capitalize profitably on further 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, 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 925 dry trailers operating as of March 31, 2017. 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, 2016. 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) 2017 2016
ASSETS
Current assets:
Cash and cash equivalents $9,065 $488
Receivables:
Trade, net 69,808 69,199
Other 3,714 4,436
Prepaid expenses and other 17,102 19,307
Total current assets 99,689 93,430
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 768,856 759,553
Accumulated depreciation (209,226) (201,728)
Net property and equipment 559,630 557,825
Other assets 1,966 2,493
Total assets $661,285 $653,748
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $43,981 $41,230
Insurance and claims accruals 20,582 19,440
Total current liabilities 64,563 60,670
Long-term debt - 7,886
Deferred income taxes 151,270 147,854
Total liabilities 215,833 216,410
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; 32,684,955 shares
at March 31, 2017, and 32,634,915 shares at
December 31, 2016, issued and outstanding 327 326
Additional paid-in capital 74,891 74,175
Retained earnings 370,234 362,837
Total stockholders’ equity 445,452 437,338
Total liabilities and stockholders’ equity $661,285 $653,748

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Ended March 31,
(In thousands, except per share information) 2017 2016
Operating revenue $173,159 $161,929
Operating expenses (income):
Salaries, wages and benefits 56,400 54,830
Purchased transportation 29,362 28,035
Fuel and fuel taxes 25,956 19,630
Supplies and maintenance 10,990 10,499
Depreciation 21,383 20,047
Operating taxes and licenses 2,247 2,185
Insurance and claims 8,914 7,355
Communications and utilities 1,581 1,620
Gain on disposition of revenue equipment (1,103) (1,434)
Other 3,491 5,037
Total operating expenses 159,221 147,804
Operating income 13,938 14,125
Other 141 215
Income before income taxes 13,797 13,910
Provision for income taxes 5,583 5,717
Net income $8,214 $8,193
Basic earnings per common share $0.25 $0.25
Diluted earnings per common share $0.25 $0.25
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) 2017 2016 2017 vs. 2016 2017 vs. 2016
Operating revenue:
Truckload revenue, net of fuel
surcharge revenue $84,811 $82,942 $1,869 2.3%
Truckload fuel surcharge revenue 10,847 7,112 3,735 52.5
Total Truckload revenue 95,658 90,054 5,604 6.2
Dedicated revenue, net of fuel
surcharge revenue 36,899 35,510 1,389 3.9
Dedicated fuel surcharge revenue 3,378 1,587 1,791 112.9
Total Dedicated revenue 40,277 37,097 3,180 8.6
Intermodal revenue, net of fuel
surcharge revenue 16,811 15,854 957 6.0
Intermodal fuel surcharge revenue 2,375 1,347 1,028 76.3
Total Intermodal revenue 19,186 17,201 1,985 11.5
Brokerage revenue 18,038 17,577 461 2.6
Total operating revenue $173,159 $161,929 $11,230 6.9%
Operating income:
Truckload $5,974 $6,940 $(966) (13.9)%
Dedicated 4,487 4,324 163 3.8
Intermodal 2,149 1,929 220 11.4
Brokerage 1,328 932 396 42.5
Total operating income $13,938 $14,125 $(187) (1.3)%
Operating ratio:
Truckload 93.8% 92.3%
Dedicated 88.9 88.3
Intermodal 88.8 88.8
Brokerage 92.6 94.7
Consolidated operating ratio 92.0% 91.3%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months
Ended March 31,
2017 2016
Truckload Segment:
Revenue (in thousands) $95,658 $90,054
Average revenue, net of fuel surcharges,
per tractor per week(1)
$3,416 $3,366
Average tractors(1) 1,931 1,896
Average miles per trip 615 642
Non-revenue miles percentage(2) 9.6% 9.6%
Total miles (in thousands) 46,060 44,471
Dedicated Segment:
Revenue (in thousands) $40,277 $37,097
Average revenue, net of fuel surcharges,
per tractor per week(1)
$3,462 $3,375
Average tractors(1) 829 809
Average miles per trip 299 314
Non-revenue miles percentage(2) 0.7% 0.8%
Total miles (in thousands) 18,579 18,521
Intermodal Segment:
Revenue (in thousands) $19,186 $17,201
Loads 9,584 8,696
Average tractors 77 76
Brokerage Segment:
Revenue (in thousands) $18,038 $17,577
Loads 13,354 12,951
At March 31, 2017 and March 31, 2016:
Total tractors(1) 2,827 2,784
Average age of company tractors (in years) 1.5 1.6
Total trailers 4,955 4,725
Average age of company trailers (in years) 2.8 2.7
Ratio of trailers to tractors(1) 1.8 1.7
Three Months
Ended March 31,
(In thousands) 2017 2016
Net cash provided by operating activities $37,674 $55,065
Net cash used for investing activities (20,962) (9,553)
Net cash used for financing activities (8,135) (44,790)
Weighted average shares outstanding:
Basic 32,655 32,454
Diluted 32,843 32,639

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 67 and 79 tractors as of March 31, 2017 and 2016, 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.