EX-99.1 2 ex_140855.htm EXHIBIT 99.1

ex_140855.htm

Exhibit 99.1

MARTEN TRANSPORT ANNOUNCES FIRST QUARTER RESULTS

   Net income improves 31.1% in first quarter of 2019

MONDOVI, Wis., April 16, 2019 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 31.1% improvement in net income to $13.5 million, or 25 cents per diluted share, for the first quarter ended March 31, 2019, from $10.3 million, or 19 cents per diluted share, for the first quarter of 2018.

Operating revenue improved 6.5% to $199.0 million for the first quarter of 2019 from $187.0 million for the first quarter of 2018, and improved 12.3% to $799.7 million for the trailing twelve months ended March 31, 2019 from $711.9 million for the similar period ended March 31, 2018. Excluding fuel surcharges, operating revenue improved 7.1% to $175.5 million for the 2019 quarter from $163.8 million for the 2018 quarter. Fuel surcharge revenue increased slightly to $23.6 million from $23.1 million over the same periods.

Operating income improved 30.4% to $17.7 million for the first quarter of 2019 from $13.6 million for the first quarter of 2018, and improved 31.8% to $74.5 million for the trailing twelve months ended March 31, 2019 from $56.5 million for the similar period ended March 31, 2018.

Operating expenses as a percentage of operating revenue improved to 91.1% for the first quarter of 2019 from 92.7% for the first quarter of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.9% from 91.7% over the same periods.

Operating expenses as a percentage of operating revenue improved to 90.7% for the trailing twelve months ended March 31, 2019 from 92.1% for the similar period ended March 31, 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.3% from 91.1% over the same periods.

	Operating Results Comparison
	Net income and diluted earnings per common share presented below for the TTM ended Mar. 31, 2018 exclude a $56.5 million deferred income tax benefit in the fourth quarter of 2017. Net income including the benefit for the TTM ended Mar. 31, 2018 was $92.4 million, or $1.68 per diluted share.
											Percentage												Percentage
											Change												Change
											Three Months				Trailing								Trailing Twelve
			Three Months								Ended				Twelve Months								Months Ended
			Ended Mar. 31,								Mar. 31,				Ended Mar. 31,								Mar. 31,
	(Dollars in thousands, except share information)		2019				2018				2019 vs. 2018				2019				2018				2019 vs. 2018
	Operating revenue		$	199,023			$	186,960				6.5	%		$	799,657			$	711,921				12.3	%
	Operating income		$	17,733			$	13,594				30.4	%		$	74,487			$	56,518				31.8	%
	Net income		$	13,546			$	10,331				31.1	%		$	58,242			$	35,936				62.1	%
	Diluted earnings per common share		$	0.25			$	0.19				31.2	%		$	1.06			$	0.65				61.6	%
	Operating ratio, excluding fuel surcharges			89.9	%			91.7	%							89.3	%			91.1	%

Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased to report our continued strong top- and bottom-line results for this quarter, which produced our best-ever first-quarter operating revenue, operating income and net income. Our 30.4% year-over-year improvement in operating income for the first quarter consistently furthers our 31.8% operating income increase in the last twelve months. We expect to see strong demand throughout 2019 for our premium services with our diversified base of over 650 customers. We added 65 Truckload and 51 Dedicated tractors during the first quarter, and we expect to build on this success in recruiting and retaining the industry’s top, experienced drivers to increase our capacity to service our existing and new customers. In addition, we enhanced our balance sheet position with $85.5 million in cash at March 31, 2019, up from $56.8 million at the beginning of the year.”

“A number of our customer agreements included a shift beginning mid-first quarter last year from line haul to fuel surcharge revenue, which reduced our Dedicated and Truckload revenue excluding fuel surcharges by $2.9 million and $782,000, respectively, for this year’s first quarter, and by $1.4 million and $282,000, respectively, for the first quarter of 2018. Our fuel surcharge revenue increased in both periods by the same amounts.”

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of 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 and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,596 dry vans operating as of March 31, 2019. 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 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, 2018. 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

		March 31,				December 31,
(In thousands, except share information)		2019				2018
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	85,526			$	56,763
Receivables:
Trade, net			84,443				83,033
Other			5,273				3,808
Prepaid expenses and other			18,025				19,924
Total current assets			193,267				163,528
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			819,809				816,430
Accumulated depreciation			(241,658	)			(228,200	)
Net property and equipment			578,151				588,230
Other noncurrent assets			3,109				2,146
Total assets		$	774,527			$	753,904
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	18,512			$	15,704
Insurance and claims accruals			29,381				28,103
Accrued and other current liabilities			31,649				28,166
Total current liabilities			79,542				71,973
Deferred income taxes			106,796				105,977
Noncurrent operating lease liabilities			452				-
Total liabilities			186,790				177,950
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; 54,572,289 shares at March 31, 2019, and 54,466,691 shares at December 31, 2018, issued and outstanding			546				545
Additional paid-in capital			76,687				76,814
Retained earnings			510,504				498,595
Total stockholders’ equity			587,737				575,954
Total liabilities and stockholders’ equity		$	774,527			$	753,904

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

		Three Months
		Ended March 31,
(In thousands, except per share information)		2019				2018
Operating revenue		$	199,023			$	186,960
Operating expenses (income):
Salaries, wages and benefits			63,524				58,822
Purchased transportation			38,249				35,026
Fuel and fuel taxes			27,677				29,044
Supplies and maintenance			11,121				10,436
Depreciation			22,543				21,815
Operating taxes and licenses			2,333				2,287
Insurance and claims			9,875				10,290
Communications and utilities			1,950				1,683
Gain on disposition of revenue equipment			(1,548	)			(1,211	)
Other			5,566				5,174
Total operating expenses			181,290				173,366
Operating income			17,733				13,594
Other			(278	)			(189	)
Income before income taxes			18,011				13,783
Income taxes expense			4,465				3,452
Net income		$	13,546			$	10,331
Basic earnings per common share		$	0.25			$	0.19
Diluted earnings per common share		$	0.25			$	0.19
Dividends declared per common share		$	0.03			$	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)		2019				2018				2019 vs. 2018				2019 vs. 2018
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	80,167			$	80,216			$	(49	)			(0.1	)%
Truckload fuel surcharge revenue			11,555				12,801				(1,246	)			(9.7	)
Total Truckload revenue			91,722				93,017				(1,295	)			(1.4	)
Dedicated revenue, net of fuel surcharge revenue			48,924				42,364				6,560				15.5
Dedicated fuel surcharge revenue			8,801				6,469				2,332				36.0
Total Dedicated revenue			57,725				48,833				8,892				18.2
Intermodal revenue, net of fuel surcharge revenue			19,755				20,808				(1,053	)			(5.1	)
Intermodal fuel surcharge revenue			3,216				3,844				(628	)			(16.3	)
Total Intermodal revenue			22,971				24,652				(1,681	)			(6.8	)
Brokerage revenue			26,605				20,458				6,147				30.0
Total operating revenue		$	199,023			$	186,960			$	12,063				6.5	%
Operating income:
Truckload		$	7,555			$	6,815			$	740				10.9	%
Dedicated			5,515				2,488				3,027				121.7
Intermodal			2,394				2,978				(584	)			(19.6	)
Brokerage			2,269				1,313				956				72.8
Total operating income		$	17,733			$	13,594			$	4,139				30.4	%
Operating ratio:
Truckload			91.8	%			92.7	%
Dedicated			90.4				94.9
Intermodal			89.6				87.9
Brokerage			91.5				93.6
Consolidated operating ratio			91.1	%			92.7	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

		Three Months
		Ended March 31,
		2019				2018
Truckload Segment:
Revenue (in thousands)		$	91,722			$	93,017
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,859			$	3,679
Average tractors(1)			1,616				1,696
Average miles per trip			562				603
Non-revenue miles percentage(2)			11.3	%			6.8	%
Total miles (in thousands)			37,236				40,582
Dedicated Segment:
Revenue (in thousands)		$	57,725			$	48,833
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,382			$	3,267
Average tractors(1)			1,125				1,009
Average miles per trip			322				297
Non-revenue miles percentage(2)			0.6	%			1.1	%
Total miles (in thousands)			23,643				21,135
Intermodal Segment:
Revenue (in thousands)		$	22,971			$	24,652
Loads			9,251				10,737
Average tractors			87				82
Brokerage Segment:
Revenue (in thousands)		$	26,605			$	20,458
Loads			15,266				11,889
At March 31, 2019 and March 31, 2018:
Total tractors(1)			2,867				2,785
Average age of company tractors (in years)			1.8				1.6
Total trailers			5,313				5,308
Average age of company trailers (in years)			2.5				2.6
Ratio of trailers to tractors(1)			1.9				1.9

		Three Months
		Ended March 31,
(In thousands)		2019				2018
Net cash provided by operating activities		$	36,803			$	23,182
Net cash (used for) investing activities			(5,911	)			(27,392	)
Net cash (used for) financing activities			(2,129	)			(1,183	)
Weighted average shares outstanding:
Basic			54,553				54,572
Diluted			55,046				55,095

(1)  Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 46 and 55 tractors as of March 31, 2019 and 2018, respectively. 

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