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Marten Transport Announces Second Quarter Results

MONDOVI, Wis., July 16, 2013 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported an increase in net income to $7.7 million, or 23 cents per diluted share, for the second quarter ended June 30, 2013, from $7.6 million, or 23 cents per diluted share, for the second quarter of 2012. For the six-month period ended June 30, 2013, net income increased 14.1% to $14.9 million, or 45 cents per diluted share, from $13.0 million, or 39 cents per diluted share, in the 2012 six-month period.

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $161.4 million in the second quarter of 2013 from $157.0 million in the second quarter of 2012, and increased to $325.9 million in the 2013 six-month period from $308.4 million in the 2012 six-month period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 8.9% to $129.7 million in the 2013 quarter from $119.1 million in the 2012 quarter, and increased 9.5% to $255.8 million in the 2013 six-month period from $233.5 million in the 2012 six-month period. Fuel surcharge revenue increased to $31.7 million for the second quarter of 2013 from $29.8 million in the 2012 quarter, and increased to $63.4 million for the 2013 six-month period from $58.6 million for the 2012 six-month period. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the second quarter of 2013 compared with $8.1 million in the 2012 quarter. MWL revenue included in the first six months of 2013 decreased by $9.7 million from the first six months of last year with the deconsolidation.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 89.9% for the second quarter of 2013, second only over the past 27 quarters to the 89.6% ratio achieved in the second quarter of 2012. The ratio improved to 90.2% for the 2013 six-month period from 90.9% for the 2012 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, "We continue to grow and expand our business despite continued slow economic growth and a challenging rate environment. Our total truckload, intermodal and broker loads were up 13.2% in the second quarter of 2013 over the prior year's quarter. We believe the strong positioning of our truckload operations has continued to pay benefits, including a 2.8% increase in miles per tractor and a 2.6% increase in revenue per tractor over the second quarter of 2012. These increases were on top of the 6.0% and 5.4% improvements in these measurements in the second quarter of 2012 over the second quarter of 2011. This continued improvement in efficiency helped us achieve our thirteenth consecutive year-over-year increase in quarterly net income."

On May 13, 2013, Marten Transport announced that its Board of Directors had declared a three-for-two stock split of the company's common stock. The stock split was effected in the form of a stock dividend payable on June 14, 2013, to stockholders of record as of May 28, 2013. Holders of the company's common stock received an additional one-half share for each outstanding share of common stock held as of the record date.

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.

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.

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, 2012. 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) 2013 2012
ASSETS
Current assets:
Cash and cash equivalents $ 635 $ 3,473
Receivables:
Trade, net 68,588 66,239
Other 2,863 7,177
Prepaid expenses and other 13,836 15,490
Deferred income taxes 3,364 3,155
Total current assets 89,286 95,534
Property and equipment:
Revenue equipment, buildings and land, office equipment and other 588,038 551,136
Accumulated depreciation (160,153) (156,660)
Net property and equipment 427,885 394,476
Other assets 3,359 613
TOTAL ASSETS $ 520,530 $ 490,623
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 42,606 $ 33,062
Insurance and claims accruals 14,029 13,838
Total current liabilities 56,635 46,900
Long-term debt, less current maturities 7,387 2,726
Deferred income taxes 112,413 109,074
Total liabilities 176,435 158,700
Stockholders' equity:
Marten Transport, Ltd. 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; 48,000,000 shares authorized; 33,220,969 shares at June 30, 2013, and 33,164,428 shares at December 31, 2012, issued and outstanding 332 332
Additional paid-in capital 83,652 82,679
Retained earnings 260,111 246,349
Total Marten Transport, Ltd. stockholders' equity 344,095 329,360
Noncontrolling interest -- 2,563
Total stockholders' equity 344,095 331,923
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 520,530 $ 490,623
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) 2013 2012 2013 2012
OPERATING REVENUE $ 161,413 $ 156,964 $ 325,887 $ 308,438
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits 42,345 39,398 84,470 77,669
Purchased transportation 28,129 29,734 62,313 59,593
Fuel and fuel taxes 40,596 39,515 80,919 78,639
Supplies and maintenance 9,998 9,841 19,531 19,377
Depreciation 16,219 15,042 31,907 29,577
Operating taxes and licenses 1,825 1,617 3,595 3,199
Insurance and claims 5,808 5,185 11,619 11,007
Communications and utilities 1,262 1,161 2,545 2,372
Gain on disposition of revenue equipment (1,237) (1,179) (3,652) (2,704)
Other 3,347 3,367 6,981 6,907
Total operating expenses 148,292 143,681 300,228 285,636
OPERATING INCOME 13,121 13,283 25,659 22,802
OTHER (153) (13) (168) (34)
INCOME BEFORE INCOME TAXES 13,274 13,296 25,827 22,836
Less: Income before income taxes attributable to noncontrolling interest -- 245 84 406
INCOME BEFORE INCOME TAXES
ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 13,274 13,051 25,743 22,430
PROVISION FOR INCOME TAXES 5,607 5,467 10,874 9,400
NET INCOME $ 7,667 $ 7,584 $ 14,869 $ 13,030
BASIC EARNINGS PER COMMON SHARE $ 0.23 $ 0.23 $ 0.45 $ 0.39
DILUTED EARNINGS PER COMMON SHARE $ 0.23 $ 0.23 $ 0.45 $ 0.39
DIVIDENDS PAID PER COMMON SHARE $ 0.017 $ 0.017 $ 0.033 $ 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) 2013 2012 2013 vs. 2012 2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $ 99,996 $ 94,148 $ 5,848 6.2%
Truckload fuel surcharge revenue 26,856 26,121 735 2.8
Total Truckload revenue 126,852 120,269 6,583 5.5
Logistics revenue, net of intermodal fuel surcharge revenue 29,721 33,045 (3,324) (10.1)
Intermodal fuel surcharge revenue 4,840 3,650 1,190 32.6
Total Logistics revenue 34,561 36,695 (2,134) (5.8)
Total operating revenue $ 161,413 $ 156,964 $ 4,449 2.8%
Operating income:
Truckload $ 11,376 $ 10,973 $ 403 3.7%
Logistics 1,745 2,310 (565) (24.5)
Total operating income $ 13,121 $ 13,283 $ (162) (1.2)%
Operating ratio:
Truckload 91.0% 90.9%
Logistics 95.0 93.7
Consolidated operating ratio 91.9% 91.5%
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) 2013 2012 2013 vs. 2012 2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue $ 194,961 $ 183,346 $ 11,615 6.3%
Truckload fuel surcharge revenue 53,625 51,374 2,251 4.4
Total Truckload revenue 248,586 234,720 13,866 5.9
Logistics revenue, net of intermodal fuel surcharge revenue 67,481 66,481 1,000 1.5
Intermodal fuel surcharge revenue 9,820 7,237 2,583 35.7
Total Logistics revenue 77,301 73,718 3,583 4.9
Total operating revenue $ 325,887 $ 308,438 $ 17,449 5.7%
Operating income:
Truckload $ 21,376 $ 18,101 $ 3,275 18.1%
Logistics 4,283 4,701 (418) (8.9)
Total operating income $ 25,659 $ 22,802 $ 2,857 12.5%
Operating ratio:
Truckload 91.4% 92.3%
Logistics 94.5 93.6
Consolidated operating ratio 92.1% 92.6%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2013 2012 2013 2012
Truckload Segment:
Total Truckload revenue (in thousands) $ 126,852 $ 120,269 $ 248,586 $ 234,720
Average truckload revenue, net of fuel surcharges, per tractor per week(1) $ 3,459 $ 3,371 $ 3,414 $ 3,284
Average tractors(1) 2,224 2,149 2,209 2,148
Average miles per trip 598 625 612 621
Non-revenue miles percentage(2) 10.5% 11.3% 10.6% 11.2%
Total miles – company-employed drivers (in thousands) 57,031 53,516 111,926 104,797
Total miles – independent contractors (in thousands) 1,373 1,355 2,314 2,619
Logistics Segment:
Total Logistics revenue (in thousands) $ 34,561 $ 36,695 $ 77,301 $ 73,718
Brokerage:
Marten Transport
Revenue (in thousands) $ 12,813 $ 12,958 $ 27,282 $ 26,664
Loads 8,602 7,872 18,032 15,958
MWL
Revenue (in thousands) $ -- $ 8,085 $ 6,676 $ 16,330
Loads -- 4,537 3,758 8,219
Intermodal:
Revenue (in thousands) $ 21,748 $ 15,652 $ 43,343 $ 30,724
Loads 8,916 6,043 17,506 11,885
Average tractors 85 54 81 55
At June 30, 2013 and June 30, 2012:
Total tractors(1) 2,317 2,201
Average age of company tractors (in years) 1.9 2.0
Total trailers 4,111 4,155
Average age of company trailers (in years) 2.4 2.2
Ratio of trailers to tractors(1) 1.8 1.9
Three Months Six Months
Ended June 30, Ended June 30,
(In thousands) 2013 2012 2013 2012
Net cash provided by operating activities $ 25,816 $ 20,233 $ 47,810 $ 40,012
Net cash used for investing activities 41,331 40,131 54,416 55,304
Weighted average shares outstanding:
Basic 33,210 33,099 33,196 33,075
Diluted 33,378 33,250 33,344 33,231
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 53 and 51 tractors as of June 30, 2013, and 2012, respectively.
(2) Represents the percentage of miles for which the company is not compensated.

CONTACT: Tim Kohl President Jim Hinnendael Chief Financial Officer Marten Transport, Ltd. 715-926-4216Source:Marten Transport, Ltd.