EX-99.1 2 ex_103633.htm EXHIBIT 99.1

Exhibit 99.1

Marten Transport Announces Fourth Quarter and Year End Results

MONDOVI, Wis., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $65.1 million, or $1.18 per diluted share, for the fourth quarter ended December 31, 2017 – results that include a deferred income taxes benefit of $56.5 million related to the federal Tax Cuts and Jobs Act of 2017. Excluding that benefit, net income improved 3.7% to $8.6 million, or 16 cents per diluted share, for the fourth quarter of 2017 from $8.3 million, or 15 cents per diluted share, for the fourth quarter of 2016. Net income was $90.3 million, or $1.65 per diluted share, for the year ended December 31, 2017. Excluding the deferred income taxes benefit, 2017 net income improved 1.1% to $33.8 million, or 62 cents per diluted share, from $33.5 million, or 61 cents per diluted share, for 2016.

Earnings Impact of Deferred Income Taxes Benefit |
|  | Three Months |  |  | Year |
|  | Ended |  |  | Ended |
(In thousands, except share information) |  | Dec. 31, 2017 |  |  | Dec. 31, 2017 |
Net income: |  |  |  |  |  |  |  |
Excluding deferred income taxes benefit |  | $ | 8,609 |  |  | $ | 33,819 |
Deferred income taxes benefit |  |  | 56,465 |  |  |  | 56,465 |
Net income |  | $ | 65,074 |  |  | $ | 90,284 |
Diluted earnings per common share*: |  |  |  |  |  |  |  |
Excluding deferred income taxes benefit |  | $ | 0.16 |  |  | $ | 0.62 |
Deferred income taxes benefit |  |  | 1.03 |  |  |  | 1.03 |
Diluted earnings per common share |  | $ | 1.18 |  |  | $ | 1.65 |
*Differences in rounding exist for the diluted earnings per common share amounts for the three months ended Dec. 31, 2017. |

Operating revenue improved 5.9% to $182.8 million for the fourth quarter of 2017 from $172.7 million for the fourth quarter of 2016, and improved 4.0% to $698.1 million for 2017 from $671.1 million for 2016. Excluding fuel surcharges, operating revenue improved 3.9% to $163.4 million for the 2017 quarter from $157.4 million for the 2016 quarter, and improved 2.1% to $631.0 million for 2017 from $617.9 million for 2016. Fuel surcharge revenue increased to $19.3 million for the fourth quarter of 2017 from $15.3 million for the 2016 quarter, and increased to $67.1 million for 2017 from $53.2 million for 2016.

Operating expenses as a percentage of operating revenue was 92.2% for the fourth quarter of 2017 and 91.6% for the fourth quarter of 2016. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 91.2% for the fourth quarter of 2017 compared to 90.8% for the fourth quarter of 2016.

Operating expenses as a percentage of operating revenue was 91.9% for 2017 and 91.3% for 2016. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 91.0% for 2017 compared to 90.6% for 2016.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased to report improvements in both our top- and bottom-line results for the quarter and year, results our people achieved while overcoming significantly less gain on disposition of our revenue equipment in 2017. We fully capitalized on the strengthening freight environment to better our average revenue per tractor by 7.1% in our Truckload operations and by 2.5% in our Dedicated operations from the 2016 to the 2017 quarter, along with revenue increases in both our Intermodal and Brokerage operations. We continue to earn awards of new Dedicated business and expect our number of Dedicated tractors to increase to over 1,150 by June 2018. We also improved our balance sheet position with $15.8 million in cash at the end of 2017 from $7.9 million in debt at the beginning of the year. We expect to further capitalize on profitable growth opportunities with our diversified platform, cost control emphasis, modern fleet, strong balance sheet and the smart, hard work of our people.”

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 966 dry trailers operating as of December 31, 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.

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

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)

|  | December 31, |  |  | December 31, |
(In thousands, except share information) |  | 2017 |  |  | 2016 |
ASSETS |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 15,791 |  |  | $ | 488 |
Receivables: |  |  |  |  |  |  |  |
Trade, net |  |  | 74,886 |  |  |  | 69,199 |
Other |  |  | 6,131 |  |  |  | 4,436 |
Prepaid expenses and other |  |  | 19,810 |  |  |  | 19,307 |
Total current assets |  |  | 116,618 |  |  |  | 93,430 |
Property and equipment: |  |  |  |  |  |  |  |
Revenue equipment, buildings and land, office equipment and other |  |  | 783,648 |  |  |  | 759,553 |
Accumulated depreciation |  |  | (211,728 | ) |  |  | (201,728 | )
Net property and equipment |  |  | 571,920 |  |  |  | 557,825 |
Other assets |  |  | 1,865 |  |  |  | 2,493 |
Total assets |  | $ | 690,403 |  |  | $ | 653,748 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 38,100 |  |  | $ | 41,230 |
Insurance and claims accruals |  |  | 26,177 |  |  |  | 19,440 |
Total current liabilities |  |  | 64,277 |  |  |  | 60,670 |
Long-term debt |  |  | - |  |  |  | 7,886 |
Deferred income taxes |  |  | 100,626 |  |  |  | 147,854 |
Total liabilities |  |  | 164,903 |  |  |  | 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; 54,533,455 shares at December 31, 2017, and 54,391,525 shares at December 31, 2016, issued and outstanding |  |  | 545 |  |  |  | 544 |
Additional paid-in capital |  |  | 76,413 |  |  |  | 74,175 |
Retained earnings |  |  | 448,542 |  |  |  | 362,619 |
Total stockholders’ equity |  |  | 525,500 |  |  |  | 437,338 |
Total liabilities and stockholders’ equity |  | $ | 690,403 |  |  | $ | 653,748 |

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

|  | Three Months |  |  | Year |
|  | Ended December 31, |  |  | Ended December 31, |
(In thousands, except per share information) |  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Operating revenue |  | $ | 182,771 |  |  | $ | 172,661 |  |  | $ | 698,120 |  |  | $ | 671,144 |
Operating expenses (income): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries, wages and benefits |  |  | 59,382 |  |  |  | 56,711 |  |  |  | 226,091 |  |  |  | 224,827 |
Purchased transportation |  |  | 32,803 |  |  |  | 28,722 |  |  |  | 118,349 |  |  |  | 110,719 |
Fuel and fuel taxes |  |  | 28,284 |  |  |  | 25,670 |  |  |  | 105,390 |  |  |  | 94,075 |
Supplies and maintenance |  |  | 9,701 |  |  |  | 10,887 |  |  |  | 41,613 |  |  |  | 43,912 |
Depreciation |  |  | 21,245 |  |  |  | 21,240 |  |  |  | 85,120 |  |  |  | 82,445 |
Operating taxes and licenses |  |  | 2,180 |  |  |  | 2,367 |  |  |  | 8,993 |  |  |  | 9,099 |
Insurance and claims |  |  | 9,487 |  |  |  | 8,978 |  |  |  | 38,585 |  |  |  | 32,223 |
Communications and utilities |  |  | 1,516 |  |  |  | 1,586 |  |  |  | 6,047 |  |  |  | 6,287 |
Gain on disposition of revenue equipment |  |  | (617 | ) |  |  | (3,040 | ) |  |  | (5,499 | ) |  |  | (10,502 | )
Other |  |  | 4,457 |  |  |  | 5,007 |  |  |  | 16,569 |  |  |  | 19,756 |
Total operating expenses |  |  | 168,438 |  |  |  | 158,128 |  |  |  | 641,258 |  |  |  | 612,841 |
Operating income |  |  | 14,333 |  |  |  | 14,533 |  |  |  | 56,862 |  |  |  | 58,303 |
Other |  |  | 109 |  |  |  | 443 |  |  |  | 389 |  |  |  | 1,237 |
Income before income taxes |  |  | 14,224 |  |  |  | 14,090 |  |  |  | 56,473 |  |  |  | 57,066 |
Income taxes (benefit) expense |  |  | (50,850 | ) |  |  | 5,787 |  |  |  | (33,811 | ) |  |  | 23,602 |
Net income |  | $ | 65,074 |  |  | $ | 8,303 |  |  | $ | 90,284 |  |  | $ | 33,464 |
Basic earnings per common share |  | $ | 1.19 |  |  | $ | 0.15 |  |  | $ | 1.66 |  |  | $ | 0.62 |
Diluted earnings per common share |  | $ | 1.18 |  |  | $ | 0.15 |  |  | $ | 1.65 |  |  | $ | 0.61 |
Dividends declared per common share |  | $ | 0.025 |  |  | $ | 0.015 |  |  | $ | 0.08 |  |  | $ | 0.06 |

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

|  |  |  |  |  |  |  |  |  | Dollar |  |  | Percentage |
|  |  |  |  |  |  |  |  |  | Change |  |  | Change |
|  | Three Months |  |  | Three Months |  |  | Three Months |
|  | Ended |  |  | Ended |  |  | Ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
(Dollars in thousands) |  | 2017 |  |  | 2016 |  |  | 2017 vs. 2016 |  |  | 2017 vs. 2016 |
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload revenue, net of fuel surcharge revenue |  | $ | 85,469 |  |  | $ | 86,453 |  |  | $ | (984 | ) |  |  | (1.1 | )%
Truckload fuel surcharge revenue |  |  | 12,161 |  |  |  | 10,113 |  |  |  | 2,048 |  |  |  | 20.3 |
Total Truckload revenue |  |  | 97,630 |  |  |  | 96,566 |  |  |  | 1,064 |  |  |  | 1.1 |
Dedicated revenue, net of fuel surcharge revenue |  |  | 39,037 |  |  |  | 37,174 |  |  |  | 1,863 |  |  |  | 5.0 |
Dedicated fuel surcharge revenue |  |  | 3,916 |  |  |  | 3,188 |  |  |  | 728 |  |  |  | 22.8 |
Total Dedicated revenue |  |  | 42,953 |  |  |  | 40,362 |  |  |  | 2,591 |  |  |  | 6.4 |
Intermodal revenue, net of fuel surcharge revenue |  |  | 19,171 |  |  |  | 16,155 |  |  |  | 3,016 |  |  |  | 18.7 |
Intermodal fuel surcharge revenue |  |  | 3,254 |  |  |  | 1,992 |  |  |  | 1,262 |  |  |  | 63.4 |
Total Intermodal revenue |  |  | 22,425 |  |  |  | 18,147 |  |  |  | 4,278 |  |  |  | 23.6 |
Brokerage revenue |  |  | 19,763 |  |  |  | 17,586 |  |  |  | 2,177 |  |  |  | 12.4 |
Total operating revenue |  | $ | 182,771 |  |  | $ | 172,661 |  |  | $ | 10,110 |  |  |  | 5.9 | %
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  | $ | 7,077 |  |  | $ | 7,038 |  |  | $ | 39 |  |  |  | 0.6 | %
Dedicated |  |  | 2,999 |  |  |  | 4,587 |  |  |  | (1,588 | ) |  |  | (34.6 | )
Intermodal |  |  | 2,526 |  |  |  | 1,735 |  |  |  | 791 |  |  |  | 45.6 |
Brokerage |  |  | 1,731 |  |  |  | 1,173 |  |  |  | 558 |  |  |  | 47.6 |
Total operating income |  | $ | 14,333 |  |  | $ | 14,533 |  |  | $ | (200 | ) |  |  | (1.4 | )%
Operating ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 92.8 | % |  |  | 92.7 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 93.0 |  |  |  | 88.6 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 88.7 |  |  |  | 90.4 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 91.2 |  |  |  | 93.3 |  |  |  |  |  |  |  |  |
Consolidated operating ratio |  |  | 92.2 | % |  |  | 91.6 | % |  |  |  |  |  |  |  |

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

|  |  |  |  |  |  |  |  |  | Dollar |  |  | Percentage |
|  |  |  |  |  |  |  |  |  | Change |  |  | Change |
|  | Year |  |  | Year |  |  | Year |
|  | Ended |  |  | Ended |  |  | Ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
(Dollars in thousands) |  | 2017 |  |  | 2016 |  |  | 2017 vs. 2016 |  |  | 2017 vs. 2016 |
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload revenue, net of fuel surcharge revenue |  | $ | 336,596 |  |  | $ | 339,967 |  |  | $ | (3,371 | ) |  |  | (1.0 | )%
Truckload fuel surcharge revenue |  |  | 43,614 |  |  |  | 35,884 |  |  |  | 7,730 |  |  |  | 21.5 |
Total Truckload revenue |  |  | 380,210 |  |  |  | 375,851 |  |  |  | 4,359 |  |  |  | 1.2 |
Dedicated revenue, net of fuel surcharge revenue |  |  | 153,691 |  |  |  | 147,007 |  |  |  | 6,684 |  |  |  | 4.5 |
Dedicated fuel surcharge revenue |  |  | 13,190 |  |  |  | 10,363 |  |  |  | 2,827 |  |  |  | 27.3 |
Total Dedicated revenue |  |  | 166,881 |  |  |  | 157,370 |  |  |  | 9,511 |  |  |  | 6.0 |
Intermodal revenue, net of fuel surcharge revenue |  |  | 70,282 |  |  |  | 64,508 |  |  |  | 5,774 |  |  |  | 9.0 |
Intermodal fuel surcharge revenue |  |  | 10,339 |  |  |  | 6,982 |  |  |  | 3,357 |  |  |  | 48.1 |
Total Intermodal revenue |  |  | 80,621 |  |  |  | 71,490 |  |  |  | 9,131 |  |  |  | 12.8 |
Brokerage revenue |  |  | 70,408 |  |  |  | 66,433 |  |  |  | 3,975 |  |  |  | 6.0 |
Total operating revenue |  | $ | 698,120 |  |  | $ | 671,144 |  |  | $ | 26,976 |  |  |  | 4.0 | %
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  | $ | 26,326 |  |  | $ | 27,438 |  |  | $ | (1,112 | ) |  |  | (4.1 | )%
Dedicated |  |  | 17,074 |  |  |  | 19,550 |  |  |  | (2,476 | ) |  |  | (12.7 | )
Intermodal |  |  | 8,303 |  |  |  | 7,131 |  |  |  | 1,172 |  |  |  | 16.4 |
Brokerage |  |  | 5,159 |  |  |  | 4,184 |  |  |  | 975 |  |  |  | 23.3 |
Total operating income |  | $ | 56,862 |  |  | $ | 58,303 |  |  | $ | (1,441 | ) |  |  | (2.5 | )%
Operating ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 93.1 | % |  |  | 92.7 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 89.8 |  |  |  | 87.6 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 89.7 |  |  |  | 90.0 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 92.7 |  |  |  | 93.7 |  |  |  |  |  |  |  |  |
Consolidated operating ratio |  |  | 91.9 | % |  |  | 91.3 | % |  |  |  |  |  |  |  |

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

|  | Three Months |  |  | Year |
|  | Ended December 31, |  |  | Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Truckload Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 97,630 |  |  | $ | 96,566 |  |  | $ | 380,210 |  |  | $ | 375,851 |
Average revenue, net of fuel surcharges, per tractor per week(1) |  | $ | 3,700 |  |  | $ | 3,456 |  |  | $ | 3,514 |  |  | $ | 3,427 |
Average tractors(1) |  |  | 1,758 |  |  |  | 1,903 |  |  |  | 1,837 |  |  |  | 1,898 |
Average miles per trip |  |  | 601 |  |  |  | 608 |  |  |  | 599 |  |  |  | 623 |
Non-revenue miles percentage(2) |  |  | 6.2 | % |  |  | 9.1 | % |  |  | 8.3 | % |  |  | 9.2 | %
Total miles (in thousands) |  |  | 43,624 |  |  |  | 46,786 |  |  |  | 178,760 |  |  |  | 184,281 |
Dedicated Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 42,953 |  |  | $ | 40,362 |  |  | $ | 166,881 |  |  | $ | 157,370 |
Average revenue, net of fuel surcharges, per tractor per week(1) |  | $ | 3,535 |  |  | $ | 3,448 |  |  | $ | 3,481 |  |  | $ | 3,432 |
Average tractors(1) |  |  | 840 |  |  |  | 820 |  |  |  | 847 |  |  |  | 819 |
Average miles per trip |  |  | 296 |  |  |  | 295 |  |  |  | 297 |  |  |  | 301 |
Non-revenue miles percentage(2) |  |  | 1.1 | % |  |  | 0.8 | % |  |  | 0.8 | % |  |  | 0.8 | %
Total miles (in thousands) |  |  | 19,461 |  |  |  | 18,826 |  |  |  | 77,102 |  |  |  | 75,333 |
Intermodal Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 22,425 |  |  | $ | 18,147 |  |  | $ | 80,621 |  |  | $ | 71,490 |
Loads |  |  | 10,554 |  |  |  | 9,273 |  |  |  | 40,196 |  |  |  | 35,947 |
Average tractors |  |  | 78 |  |  |  | 76 |  |  |  | 79 |  |  |  | 76 |
Brokerage Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 19,763 |  |  | $ | 17,586 |  |  | $ | 70,408 |  |  | $ | 66,433 |
Loads |  |  | 11,667 |  |  |  | 12,926 |  |  |  | 48,271 |  |  |  | 49,721 |
At December 31, 2017 and December 31, 2016: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total tractors(1) |  |  | 2,738 |  |  |  | 2,785 |  |  |  |  |  |  |  |  |
Average age of company tractors (in years) |  |  | 1.5 |  |  |  | 1.4 |  |  |  |  |  |  |  |  |
Total trailers |  |  | 4,909 |  |  |  | 4,854 |  |  |  |  |  |  |  |  |
Average age of company trailers (in years) |  |  | 2.8 |  |  |  | 2.7 |  |  |  |  |  |  |  |  |
Ratio of trailers to tractors(1) |  |  | 1.8 |  |  |  | 1.7 |  |  |  |  |  |  |  |  |

|  | Three Months |  |  | Year |
|  | Ended December 31, |  |  | Ended December 31, |
(In thousands) |  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Net cash provided by operating activities |  | $ | 27,169 |  |  | $ | 29,531 |  |  | $ | 121,879 |  |  | $ | 133,801 |
Net cash (used for) investing activities |  |  | (11,303 | ) |  |  | (28,448 | ) |  |  | (95,318 | ) |  |  | (97,290 | )
Net cash (used for) financing activities |  |  | (1,234 | ) |  |  | (770 | ) |  |  | (11,258 | ) |  |  | (36,457 | )
Weighted average shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 54,529 |  |  |  | 54,329 |  |  |  | 54,492 |  |  |  | 54,177 |
Diluted |  |  | 54,979 |  |  |  | 54,616 |  |  |  | 54,850 |  |  |  | 54,461 |

(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 60 and 68 tractors as of December 31, 2017 and 2016, respectively. |

(2) Represents the percentage of miles for which the company is not compensated. |