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Marten Transport Announces Third Quarter Results

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

Operating Income

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 30th.”

“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


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