EX-99.1 2 ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Marten Transport Announces First Quarter Results

MONDOVI, Wis., April 21, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for the quarter ended March 31, 2016.  Net income improved 2.4% over 2015 first quarter earnings of $8.0 million, or 24 cents per diluted share, excluding a $3.7 million gain on the disposition of a facility.  Net income for the 2015 quarter, including the gain, was $10.2 million, or 30 cents per diluted share.  The disposition was part of Marten’s ongoing program to expand and update the footprint of its facilities. 

Operating revenue, net of both fuel surcharges and revenue from the Company’s dry container service discontinued in March 2015, improved 8.9%, to $151.9 million, for the first quarter of 2016 from $139.4 million for the first quarter of 2015.  Operating revenue increased to $161.9 million for the 2016 quarter from $161.3 million for the 2015 quarter, despite substantially lower fuel surcharges due to decreased fuel prices in 2016.  Fuel surcharge revenue decreased to $10.0 million for the first quarter of 2016 from $20.6 million for the 2015 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.7% for the first quarter of 2016.  The operating ratio, net of both the gain on the facility disposition and fuel surcharges, was 90.3% for the first quarter of 2015.

Chairman and Chief Executive Officer Randolph L. Marten said, “In the face of pricing pressures and a soft freight market since last year’s second quarter, we have continued to demonstrate disciplined execution of our unique, multifaceted and diverse business model.  We successfully grew our average number of truckload and dedicated tractors by 384 tractors, or 16.5%, year over year, and paid off our December 31, 2015 debt balance of $37.9 million during the quarter.  We believe that we are well-positioned to profitably capitalize on further growth opportunities within each of our transportation service platforms in 2016.”

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.

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, 2015.  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)		2016				2015
ASSETS
Current assets:
Cash and cash equivalents		$	1,156			$	434
Receivables:
Trade, net			65,285				70,597
Other			4,719				10,885
Prepaid expenses and other			16,829				18,134
Total current assets			87,989				100,050
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			723,457				724,597
Accumulated depreciation			(204,410	)			(196,588	)
Net property and equipment			519,047				528,009
Other assets			3,356				3,469
Total assets		$	610,392			$	631,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	44,431			$	33,641
Insurance and claims accruals			17,105				16,235
Total current liabilities			61,536				49,876
Long-term debt			-				37,867
Deferred income taxes			138,044				134,364
Total liabilities			199,580				222,107
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; 32,419,481 shares at March 31, 2016, and 32,759,806 shares at December 31, 2015, issued and outstanding			324				328
Additional paid-in capital			70,481				76,468
Retained earnings			340,007				332,625
Total stockholders’ equity			410,812				409,421
Total liabilities and stockholders’ equity		$	610,392			$	631,528

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

		Three Months
		Ended March 31,
(In thousands, except per share information)		2016				2015
Operating revenue		$	161,929			$	161,287
Operating expenses (income):
Salaries, wages and benefits			54,830				48,808
Purchased transportation			28,035				29,504
Fuel and fuel taxes			19,630				26,476
Supplies and maintenance			10,499				10,442
Depreciation			20,047				17,827
Operating taxes and licenses			2,185				1,876
Insurance and claims			7,355				8,090
Communications and utilities			1,620				1,528
Gain on disposition of revenue equipment			(1,434	)			(1,161	)
Gain on disposition of facility			-				(3,712	)
Other			5,037				4,298
Total operating expenses			147,804				143,976
Operating income			14,125				17,311
Other			215				15
Income before income taxes			13,910				17,296
Provision for income taxes			5,717				7,108
Net income		$	8,193			$	10,188
Basic earnings per common share		$	0.25			$	0.30
Diluted earnings per common share		$	0.25			$	0.30
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)		2016				2015				2016 vs. 2015				2016 vs. 2015
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	82,942			$	86,811			$	(3,869	)			(4.5	)%
Truckload fuel surcharge revenue			7,112				14,590				(7,478	)			(51.3	)
Total Truckload revenue			90,054				101,401				(11,347	)			(11.2	)
Dedicated revenue, net of fuel surcharge revenue			35,510				19,863				15,647				78.8
Dedicated fuel surcharge revenue			1,587				2,591				(1,004	)			(38.7	)
Total Dedicated revenue			37,097				22,454				14,643				65.2
Intermodal revenue, net of fuel surcharge revenue			15,854				17,019				(1,165	)			(6.8	)
Intermodal fuel surcharge revenue			1,347				3,373				(2,026	)			(60.1	)
Total Intermodal revenue			17,201				20,392				(3,191	)			(15.6	)
Brokerage revenue			17,577				17,040				537				3.2
Total operating revenue		$	161,929			$	161,287			$	642				0.4	%
Operating income:
Truckload		$	6,940			$	9,602			$	(2,662	)			(27.7	)%
Dedicated			4,324				2,004				2,320				115.8
Intermodal			1,929				1,251				678				54.2
Brokerage			932				742				190				25.6
Total operating income before gain on disposition of facility			14,125				13,599				526				3.9
Gain on disposition of facility			-				3,712				(3,712	)			(100.0	)
Total operating income		$	14,125			$	17,311			$	(3,186	)			(18.4	)%
Operating ratio:
Truckload			92.3	%			90.5	%
Dedicated			88.3				91.1
Intermodal			88.8				93.9
Brokerage			94.7				95.6
Consolidated operating ratio before gain on disposition of facility			91.3	%			91.6	%
Consolidated operating ratio			91.3	%			89.3	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

		Three Months
		Ended March 31,
		2016				2015
Truckload Segment:
Revenue (in thousands)		$	90,054			$	101,401
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,366			$	3,606
Average tractors(1)			1,896				1,872
Average miles per trip			642				705
Non-revenue miles percentage(2)			9.6	%			9.2	%
Total miles (in thousands)			44,471				47,530
Dedicated Segment:
Revenue (in thousands)		$	37,097			$	22,454
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,375			$	3,442
Average tractors(1)			809				449
Average miles per trip			314				375
Non-revenue miles percentage(2)			0.8	%			2.3	%
Total miles (in thousands)			18,521				11,075
Intermodal Segment:
Revenue (in thousands)		$	17,201			$	20,392
Loads			8,696				9,367
Average tractors			76				96
Brokerage Segment:
Revenue (in thousands)		$	17,577			$	17,040
Loads			12,951				10,850
At March 31, 2016 and March 31, 2015:
Total tractors(1)			2,784				2,422
Average age of company tractors (in years)			1.6				1.8
Total trailers			4,725				4,327
Average age of company trailers (in years)			2.7				2.6
Ratio of trailers to tractors(1)			1.7				1.8

		Three Months
		Ended March 31,
(In thousands)		2016				2015
Net cash provided by operating activities		$	55,065			$	53,162
Net cash used for investing activities			9,553				6,762
Net cash used for financing activities			44,790				24, 823
Weighted average shares outstanding:
Basic			32,454				33,458
Diluted			32,639				33,761

(1) Includes tractors driven by both company-employed drivers and independent contractors.  Independent contractors provided 79 and 54 tractors as of March 31, 2016 and 2015, 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.