Marten Transport Announces Third Quarter Results

Operating revenue improves 16.3% and net income improves 17.9% over 2020 quarter

Operating Income

Operating Income

Operating Income

MONDOVI, Wis., Oct. 19, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 17.9% improvement in net income to $21.3 million, or 26 cents per diluted share, for the third quarter ended September 30, 2021, from $18.0 million, or 22 cents per diluted share, for the third quarter of 2020. For the first nine months of 2021, net income improved 21.6% to $60.7 million, or 73 cents per diluted share, from $49.9 million, or 60 cents per diluted share, for the first nine months of 2020.

	Operating Results Comparison
					Percentage			Percentage			Percentage			Percentage
					Increase			Increase			Increase			Increase
					Three Months			Nine Months			Year			Year
					Ended			Ended			Ended			Ended
					September 30,			September 30,			December 31,			December 31,
					2021 vs. 2020			2021 vs. 2020			2020 vs. 2019			2019 vs. 2018
	Operating revenue				16.3	%		9.2	%		3.7	%		7.1	%
	Operating revenue, net of fuel surcharges				12.8	%		6.8	%		6.8	%		8.6	%
	Operating income				16.8	%		19.7	%		21.9	%		8.7	%
	Net income				17.9	%		21.6	%		13.8	%		11.0	%

Operating revenue improved 16.3% to a record $251.3 million for the third quarter of 2021 from $216.0 million for the third quarter of 2020, and improved 9.2% to $706.8 million for the first nine months of 2021 from $647.0 million for the first nine months of 2020. Excluding fuel surcharges, operating revenue improved 12.8% to $221.2 million for the 2021 quarter from $196.1 million for the 2020 quarter, and improved 6.8% to $623.0 million for the first nine months of 2021 from $583.6 million for the first nine months of 2020. Fuel surcharge revenue increased to $30.1 million for the 2021 quarter from $19.9 million for the 2020 quarter, and increased to $83.7 million for the first nine months of 2021 from $63.5 million for the first nine months of 2020 due to significantly higher fuel prices.

Operating income improved 16.8% to $28.5 million for the third quarter of 2021 from $24.4 million for the third quarter of 2020. Operating income improved 19.7% to $81.0 million for the first nine months of 2021 from $67.7 million for the first nine months of 2020.

Operating expenses as a percentage of operating revenue were 88.7% for each of the third quarters of 2021 and 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.1% for the third quarter of 2021 from 87.6% for the third quarter of 2020.

Operating expenses as a percentage of operating revenue improved to 88.5% for the first nine months of 2021 from 89.5% for the first nine months of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 88.4%.

Executive Chairman Randolph L. Marten said, “Marten’s talented and dedicated people continue to drive our consistent profitable growth. This quarter is yet another quarter over the last year and a half during the pandemic where we produced strong operating income improvement.”

“We have been heightening and will continue to heighten our emphasis on structurally improving our drivers’ jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. Our approach, which I mentioned in our second quarter earnings release, is working despite the unrelenting national shortage of qualified drivers. With our peoples’ smart, hard work, we began the fourth quarter with 181 more of the industry’s top drivers than we employed at the beginning of the third quarter. Additionally, we increased our number of refrigerated containers by 53 during the third quarter, expanding our fleet to 607 containers at September 30^th.”

“We are confident in our ability to continue to deliver profitable growth. Success breeds success.”

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across the Company’s five distinct business platforms - Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico. Marten is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company 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 a discussion of Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACTS: Tim Kohl, Chief Executive Officer, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS

		September 30,				December 31,
(In thousands, except share information)		2021				2020
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	83,900			$	66,127
Receivables:
Trade, net			99,686				83,426
Other			6,208				4,202
Prepaid expenses and other			22,150				21,903
Total current assets			211,944				175,658
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			957,708				930,123
Accumulated depreciation			(267,808	)			(275,950	)
Net property and equipment			689,900				654,173
Other noncurrent assets			1,539				1,805
Total assets		$	903,383			$	831,636
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	33,687			$	25,702
Insurance and claims accruals			41,128				39,595
Accrued and other current liabilities			32,667				24,497
Accrued dividends			44,789				-
Total current liabilities			152,271				89,794
Deferred income taxes			120,689				121,098
Noncurrent operating lease liabilities			336				411
Total liabilities			273,296				211,303
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; 192,000,000 shares authorized; 82,942,839 shares at September 30, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding			829				827
Additional paid-in capital			85,539				85,070
Retained earnings			543,719				534,436
Total stockholders’ equity			630,087				620,333
Total liabilities and stockholders’ equity		$	903,383			$	831,636

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)		2021				2020				2021				2020
Operating revenue		$	251,280			$	216,011			$	706,768			$	647,041
Operating expenses (income):
Salaries, wages and benefits			81,091				74,797				229,385				221,034
Purchased transportation			52,861				37,066				138,629				113,676
Fuel and fuel taxes			33,909				24,268				94,853				73,433
Supplies and maintenance			11,685				12,440				33,867				36,501
Depreciation			25,371				25,580				76,598				76,979
Operating taxes and licenses			2,606				2,749				8,036				8,003
Insurance and claims			10,501				11,243				31,338				35,160
Communications and utilities			2,181				1,999				6,320				5,961
Gain on disposition of revenue equipment			(4,536	)			(2,128	)			(11,859	)			(5,899	)
Gain on disposition of facility			-				(1,718	)			-				(1,718	)
Other			7,115				5,315				18,589				16,223
Total operating expenses			222,784				191,611				625,756				579,353
Operating income			28,496				24,400				81,012				67,688
Other			(8	)			(17	)			(27	)			(127	)
Income before income taxes			28,504				24,417				81,039				67,815
Income taxes expense			7,230				6,373				20,341				17,919
Net income		$	21,274			$	18,044			$	60,698			$	49,896
Basic earnings per common share		$	0.26			$	0.22			$	0.73			$	0.61
Diluted earnings per common share		$	0.26			$	0.22			$	0.73			$	0.60
Dividends paid per common share		$	-			$	0.04			$	0.08			$	0.093
Dividends declared per common share		$	0.54			$	0.04			$	0.62			$	0.093

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

										Dollar				Percentage
										Change				Change
		Three Months								Three Months				Three Months
		Ended								Ended				Ended
		September 30,								September 30,				September 30,
(Dollars in thousands)		2021				2020				2021 vs. 2020				2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	86,889			$	85,074			$	1,815				2.1	%
Truckload fuel surcharge revenue			12,728				8,549				4,179				48.9
Total Truckload revenue			99,617				93,623				5,994				6.4
Dedicated revenue, net of fuel surcharge revenue			68,826				69,002				(176	)			(0.3	)
Dedicated fuel surcharge revenue			13,336				9,335				4,001				42.9
Total Dedicated revenue			82,162				78,337				3,825				4.9
Intermodal revenue, net of fuel surcharge revenue			22,716				19,991				2,725				13.6
Intermodal fuel surcharge revenue			4,031				1,985				2,046				103.1
Total Intermodal revenue			26,747				21,976				4,771				21.7
Brokerage revenue			42,754				22,075				20,679				93.7
Total operating revenue		$	251,280			$	216,011			$	35,269				16.3	%
Operating income:
Truckload		$	11,670			$	10,546			$	1,124				10.7	%
Dedicated			8,521				11,024				(2,503	)			(22.7	)
Intermodal			2,840				1,304				1,536				117.8
Brokerage			5,465				1,526				3,939				258.1
Total operating income		$	28,496			$	24,400			$	4,096				16.8	%
Operating ratio:
Truckload			88.3	%			88.7	%
Dedicated			89.6				85.9
Intermodal			89.4				94.1
Brokerage			87.2				93.1
Consolidated operating ratio			88.7	%			88.7	%

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

										Dollar				Percentage
										Change				Change
		Nine Months								Nine Months				Nine Months
		Ended								Ended				Ended
		September 30,								September 30,				September 30,
(Dollars in thousands)		2021				2020				2021 vs. 2020				2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	254,441			$	254,897			$	(456	)			(0.2	)%
Truckload fuel surcharge revenue			36,032				28,058				7,974				28.4
Total Truckload revenue			290,473				282,955				7,518				2.7
Dedicated revenue, net of fuel surcharge revenue			202,955				200,237				2,718				1.4
Dedicated fuel surcharge revenue			37,565				28,564				9,001				31.5
Total Dedicated revenue			240,520				228,801				11,719				5.1
Intermodal revenue, net of fuel surcharge revenue			64,193				59,127				5,066				8.6
Intermodal fuel surcharge revenue			10,150				6,830				3,320				48.6
Total Intermodal revenue			74,343				65,957				8,386				12.7
Brokerage revenue			101,432				69,328				32,104				46.3
Total operating revenue		$	706,768			$	647,041			$	59,727				9.2	%
Operating income:
Truckload		$	36,282			$	28,367			$	7,915				27.9	%
Dedicated			28,074				31,009				(2,935	)			(9.5	)
Intermodal			6,151				3,564				2,587				72.6
Brokerage			10,505				4,748				5,757				121.3
Total operating income		$	81,012			$	67,688			$	13,324				19.7	%
Operating ratio:
Truckload			87.5	%			90.0	%
Dedicated			88.3				86.4
Intermodal			91.7				94.6
Brokerage			89.6				93.2
Consolidated operating ratio			88.5	%			89.5	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

		Three Months								Nine Months
		Ended September 30,								Ended September 30,
		2021				2020				2021				2020
Truckload Segment:
Revenue (in thousands)		$	99,617			$	93,623			$	290,473			$	282,955
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,411			$	3,955			$	4,202			$	3,865
Average tractors(1)			1,499				1,637				1,553				1,685
Average miles per trip			502				546				516				554
Non-revenue miles percentage(2)			10.1	%			10.2	%			10.0	%			10.8	%
Total miles (in thousands)			35,945				41,210				111,513				125,082
Dedicated Segment:
Revenue (in thousands)		$	82,162			$	78,337			$	240,520			$	228,801
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,438			$	3,295			$	3,305			$	3,304
Average tractors(1)			1,523				1,593				1,574				1,548
Average miles per trip			328				304				319				306
Non-revenue miles percentage(2)			1.1	%			0.7	%			1.0	%			0.7	%
Total miles (in thousands)			31,511				33,843				95,765				98,553
Intermodal Segment:
Revenue (in thousands)		$	26,747			$	21,976			$	74,343			$	65,957
Loads			8,257				9,306				24,885				27,736
Average tractors			139				99				140				99
Brokerage Segment:
Revenue (in thousands)		$	42,754			$	22,075			$	101,432			$	69,328
Loads			18,251				13,670				47,167				45,058
At September 30, 2021 and September 30, 2020:
Total tractors(1)			3,204				3,329
Average age of company tractors (in years)			1.4				1.7
Total trailers			5,291				5,368
Average age of company trailers (in years)			3.2				2.9
Ratio of trailers to tractors(1)			1.7				1.6
Total refrigerated containers			607				401

		Three Months								Nine Months
		Ended September 30,								Ended September 30,
(In thousands)		2021				2020				2021				2020
Net cash provided by operating activities		$	44,544			$	50,640			$	127,909			$	154,707
Net cash (used for) investing activities			(40,704	)			(34,558	)			(102,142	)			(93,748	)
Net cash (used for) financing activities			(612	)			(3,126	)			(7,994	)			(4,141	)
Weighted average shares outstanding:
Basic			82,907				82,672				82,835				82,472
Diluted			83,372				83,279				83,380				83,098

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 101 and 132 tractors as of September 30, 2021 and 2020, respectively.
(2	)	Represents the percentage of miles for which the company is not compensated.

A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/62731d52-45d0-495b-b904-8b9e15d654d9