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Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 20, 2017 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 7.2% increase in net income to $9.1 million, or 17 cents per diluted share, for the second quarter ended June 30, 2017, from $8.5 million, or 16 cents per diluted share, for the second quarter of 2016. Net income increased 3.8% to $17.4 million, or 32 cents per diluted share, for the first six months of 2017 from $16.7 million, or 31 cents per diluted share, for the 2016 six-month period.

Operating revenue increased to $171.5 million for the second quarter of 2017 from $166.1 million for the second quarter of 2016, and increased to $344.7 million for the first six months of 2017 from $328.0 million for the 2016 six-month period. Operating revenue, net of fuel surcharges, improved 2.0% to $155.9 million for the 2017 quarter from $152.9 million for the 2016 quarter, and improved 2.5% to $312.5 million for the 2017 six-month period from $304.8 million for the 2016 six-month period. Fuel surcharge revenue increased to $15.6 million for the 2017 quarter from $13.2 million for the 2016 quarter, and increased to $32.2 million for the first six months of 2017 from $23.3 million for the 2016 six-month period.

Operating expenses as a percentage of operating revenue improved to 90.9% for the second quarter of 2017 from 91.1% for the second quarter of 2016. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 90.0% for the second quarter of 2017 from 90.3% for the second quarter of 2016.

Operating expenses as a percentage of operating revenue was 91.4% for the 2017 six-month period and 91.2% for the 2016 six-month period. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.6% for the 2017 six-month period and 90.5% for the 2016 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our growth in revenue and profitability driven by our continued disciplined execution of Marten’s unique multifaceted business model. Excluding the one-time facility disposition gain in our first quarter of 2015, we earned the highest net income in our history in this quarter and achieved our best operating ratio, net of fuel surcharges, over the last ten quarters. With our dedicated and experienced workforce and our diversified transportation service solutions, we are confident in our ability to capitalize on further profitable growth opportunities across all of our business units.”

On July 7, 2017, we effected a five-for-three stock split of our common stock, $.01 par value, in the form of a 66 ⅔% stock dividend. Our consolidated condensed financial statements have been adjusted to give retroactive effect to the stock split for all periods presented.

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 933 dry trailers operating as of June 30, 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)
June 30, December 31,
(In thousands, except share information) 2017 2016
ASSETS
Current assets:
Cash and cash equivalents $10,058 $488
Receivables:
Trade, net 67,174 69,199
Other 5,657 4,436
Prepaid expenses and other 17,635 19,307
Total current assets 100,524 93,430
Property and equipment:
Revenue equipment, buildings and land, office equipment and other 775,149 759,553
Accumulated depreciation (206,943) (201,728)
Net property and equipment 568,206 557,825
Other assets 1,854 2,493
Total assets $670,584 $653,748
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $46,103 $41,230
Insurance and claims accruals 21,811 19,440
Total current liabilities 67,914 60,670
Long-term debt - 7,886
Deferred income taxes 148,046 147,854
Total liabilities 215,960 216,410
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; 54,514,421 shares at June 30, 2017, and 54,391,525 shares at December 31, 2016, issued and outstanding 545 544
Additional paid-in capital 75,740 74,175
Retained earnings 378,339 362,619
Total stockholders’ equity 454,624 437,338
Total liabilities and stockholders’ equity $670,584 $653,748


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) 2017 2016 2017 2016
Operating revenue $171,511 $166,090 $344,670 $328,019
Operating expenses (income):
Salaries, wages and benefits 56,715 56,196 113,115 111,026
Purchased transportation 27,516 26,187 56,878 54,222
Fuel and fuel taxes 25,007 23,930 50,963 43,560
Supplies and maintenance 10,541 10,908 21,531 21,407
Depreciation 21,306 20,368 42,689 40,415
Operating taxes and licenses 2,252 2,250 4,499 4,435
Insurance and claims 8,848 7,696 17,762 15,051
Communications and utilities 1,487 1,497 3,068 3,117
Gain on disposition of revenue equipment (1,871) (2,703) (2,974) (4,137)
Other 4,141 4,985 7,632 10,022
Total operating expenses 155,942 151,314 315,163 299,118
Operating income 15,569 14,776 29,507 28,901
Other 125 237 266 452
Income before income taxes 15,444 14,539 29,241 28,449
Provision for income taxes 6,303 6,008 11,886 11,725
Net income $9,141 $8,531 $17,355 $16,724
Basic earnings per common share $0.17 $0.16 $0.32 $0.31
Diluted earnings per common share $0.17 $0.16 $0.32 $0.31
Dividends declared per common share $0.015 $0.015 $0.03 $0.03


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) 2017 2016 2017 vs. 2016 2017 vs. 2016
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $84,480 $85,103 $(623) (0.7)%
Truckload fuel surcharge revenue 10,434 8,933 1,501 16.8
Total Truckload revenue 94,914 94,036 878 0.9
Dedicated revenue, net of fuel surcharge revenue 38,601 36,654 1,947 5.3
Dedicated fuel surcharge revenue 2,901 2,621 280 10.7
Total Dedicated revenue 41,502 39,275 2,227 5.7
Intermodal revenue, net of fuel surcharge revenue 16,877 16,118 759 4.7
Intermodal fuel surcharge revenue 2,238 1,664 574 34.5
Total Intermodal revenue 19,115 17,782 1,333 7.5
Brokerage revenue 15,980 14,997 983 6.6
Total operating revenue $171,511 $166,090 $5,421 3.3%
Operating income:
Truckload $7,511 $6,951 $560 8.1%
Dedicated 5,074 5,134 (60) (1.2)
Intermodal 2,040 1,822 218 12.0
Brokerage 944 869 75 8.6
Total operating income $15,569 $14,776 $793 5.4%
Operating ratio:
Truckload 92.1% 92.6%
Dedicated 87.8 86.9
Intermodal 89.3 89.8
Brokerage 94.1 94.2
Consolidated operating ratio 90.9% 91.1%


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) 2017 2016 2017 vs. 2016 2017 vs. 2016
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $169,291 $168,045 $1,246 0.7%
Truckload fuel surcharge revenue 21,281 16,045 5,236 32.6
Total Truckload revenue 190,572 184,090 6,482 3.5
Dedicated revenue, net of fuel surcharge revenue 75,500 72,164 3,336 4.6
Dedicated fuel surcharge revenue 6,279 4,208 2,071 49.2
Total Dedicated revenue 81,779 76,372 5,407 7.1
Intermodal revenue, net of fuel surcharge revenue 33,688 31,972 1,716 5.4
Intermodal fuel surcharge revenue 4,613 3,011 1,602 53.2
Total Intermodal revenue 38,301 34,983 3,318 9.5
Brokerage revenue 34,018 32,574 1,444 4.4
Total operating revenue $344,670 $328,019 $16,651 5.1%
Operating income:
Truckload $13,485 $13,891 $(406) (2.9)%
Dedicated 9,561 9,458 103 1.1
Intermodal 4,189 3,751 438 11.7
Brokerage 2,272 1,801 471 26.2
Total operating income $29,507 $28,901 $606 2.1%
Operating ratio:
Truckload 92.9% 92.5%
Dedicated 88.3 87.6
Intermodal 89.1 89.3
Brokerage 93.3 94.5
Consolidated operating ratio 91.4% 91.2%


MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2017 2016 2017 2016
Truckload Segment:
Revenue (in thousands) $94,914 $94,036 $190,572 $184,090
Average revenue, net of fuel surcharges, per tractor per week(1) $3,467 $3,444 $3,441 $3,405
Average tractors(1) 1,875 1,901 1,903 1,898
Average miles per trip 589 625 602 634
Non-revenue miles percentage(2) 9.0% 9.1% 9.3% 9.3%
Total miles (in thousands) 45,736 46,290 91,796 90,761
Dedicated Segment:
Revenue (in thousands) $41,502 $39,275 $81,779 $76,372
Average revenue, net of fuel surcharges, per tractor per week(1) $3,488 $3,431 $3,475 $3,403
Average tractors(1) 851 822 840 816
Average miles per trip 292 302 296 308
Non-revenue miles percentage(2) 0.7% 0.8% 0.7% 0.8%
Total miles (in thousands) 19,357 18,951 37,936 37,472
Intermodal Segment:
Revenue (in thousands) $19,115 $17,782 $38,301 $34,983
Loads 9,793 8,755 19,377 17,451
Average tractors 81 77 79 77
Brokerage Segment:
Revenue (in thousands) $15,980 $14,997 $34,018 $32,574
Loads 11,578 11,428 24,932 24,379
At June 30, 2017 and June 30, 2016:
Total tractors(1) 2,711 2,785
Average age of company tractors (in years) 1.5 1.6
Total trailers 4,925 4,856
Average age of company trailers (in years) 2.8 2.7
Ratio of trailers to tractors(1) 1.8 1.7


Three Months Six Months
Ended June 30, Ended June 30,
(In thousands) 2017 2016 2017 2016
Net cash provided by operating activities $27,546 $25,086 $65,220 $80,151
Net cash (used for) investing activities (26,003) (30,125) (46,965) (39,678)
Net cash provided by (used for) financing activities (550) 4,091 (8,685) (40,699)
Weighted average shares outstanding:
Basic 54,493 54,069 54,459 54,079
Diluted 54,802 54,389 54,772 54,391

(1 ) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 63 and 77 tractors as of June 30, 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.

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