EX-99.1 2 ex_544765.htm EXHIBIT 99.1

Exhibit 99.1

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS

MONDOVI, Wis., July 19, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $21.9 million, or 27 cents per diluted share, for the second quarter ended June 30, 2023, compared with $31.7 million, or 39 cents per diluted share, for the second quarter of 2022. For the six-month period ended June 30, 2023, net income was $44.4 million, or 55 cents per diluted share, compared with $59.2 million, or 72 cents per diluted share, for the 2022 six-month period.

Operating revenue was $285.7 million for the second quarter of 2023 compared with $329.6 million for the second quarter of 2022. Excluding fuel surcharges, operating revenue was $248.6 million for the 2023 quarter compared with $269.1 million for the 2022 quarter. Fuel surcharge revenue decreased to $37.0 million for the 2023 quarter from $60.4 million for the 2022 quarter due to significantly lower fuel prices.

Operating revenue was $583.7 million for the first six months of 2023 compared with $616.8 million for the first six months of 2022. Excluding fuel surcharges, operating revenue was $503.6 million for the 2023 period compared with $514.4 million for the 2022 period. Fuel surcharge revenue decreased to $80.1 million for the 2023 period compared with $102.4 million for the 2022 period.

Operating income was $28.2 million for the second quarter of 2023 compared with $40.9 million for the second quarter of 2022 – the highest amount for any quarter in Marten’s history.

Operating income was $57.2 million for the first six months of 2023 compared with $76.8 million for the first six months of 2022.

Operating expenses as a percentage of operating revenue were 90.1% for the 2023 quarter and 87.6% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.7% for the 2023 quarter and 84.8% for the 2022 quarter – the best ratio for any quarter since Marten became a public company in 1986.

Operating expenses as a percentage of operating revenue were 90.2% for the first six months of 2023 and 87.6% for the first six months of 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 period and 85.1% for the 2022 period.

Executive Chairman Randolph L. Marten stated, “While the soft freight market demand, excess capacity and inflationary costs continue to put considerable pressure on industry pricing, volumes and margins, we recorded our second-highest second quarter operating revenue and net income in our history.”

“The disciplined execution of our unique business model by our talented people utilizing our adaptive and proprietary operating technology, along with our emphasis on operating efficiencies and cost controls, are key strengths to our minimizing the current impact of the weak freight market on our operations -- and are also strengths that we will maintain as we invest in and position our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers.”

Current Investor Presentation

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, Mexico and Canada, 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, 2022. 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, Doug Petit, 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

|  | June 30, |  |  | December 31, |
(In thousands, except share information) |  | 2023 |  |  | 2022 |
|  | (Unaudited) |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 80,528 |  |  | $ | 80,600 |
Receivables: |  |  |  |  |  |  |  |
Trade, net |  |  | 111,577 |  |  |  | 120,702 |
Other |  |  | 10,646 |  |  |  | 7,218 |
Prepaid expenses and other |  |  | 29,208 |  |  |  | 27,320 |
Total current assets |  |  | 231,959 |  |  |  | 235,840 |
Property and equipment: |  |  |  |  |  |  |  |
Revenue equipment, buildings and land, office equipment and other |  |  | 1,122,659 |  |  |  | 1,074,832 |
Accumulated depreciation |  |  | (352,139 | ) |  |  | (346,665 | )
Net property and equipment |  |  | 770,520 |  |  |  | 728,167 |
Other noncurrent assets |  |  | 1,605 |  |  |  | 1,672 |
Total assets |  | $ | 1,004,084 |  |  | $ | 965,679 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 36,107 |  |  | $ | 37,299 |
Insurance and claims accruals |  |  | 47,665 |  |  |  | 45,747 |
Accrued and other current liabilities |  |  | 47,248 |  |  |  | 41,264 |
Total current liabilities |  |  | 131,020 |  |  |  | 124,310 |
Deferred income taxes |  |  | 132,737 |  |  |  | 137,041 |
Noncurrent operating lease liabilities |  |  | 307 |  |  |  | 409 |
Total liabilities |  |  | 264,064 |  |  |  | 261,760 |
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; 81,301,468 shares at June 30, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding |  |  | 813 |  |  |  | 811 |
Additional paid-in capital |  |  | 48,663 |  |  |  | 47,188 |
Retained earnings |  |  | 690,544 |  |  |  | 655,920 |
Total stockholders’ equity |  |  | 740,020 |  |  |  | 703,919 |
Total liabilities and stockholders’ equity |  | $ | 1,004,084 |  |  | $ | 965,679 |

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

|  | Three Months |  |  | Six Months |
|  | Ended June 30, |  |  | Ended June 30, |
(In thousands, except per share information) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Operating revenue |  | $ | 285,672 |  |  | $ | 329,565 |  |  | $ | 583,695 |  |  | $ | 616,846 |
Operating expenses (income): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries, wages and benefits |  |  | 96,332 |  |  |  | 96,460 |  |  |  | 194,848 |  |  |  | 185,809 |
Purchased transportation |  |  | 48,299 |  |  |  | 67,480 |  |  |  | 102,402 |  |  |  | 124,790 |
Fuel and fuel taxes |  |  | 42,215 |  |  |  | 61,337 |  |  |  | 89,011 |  |  |  | 105,705 |
Supplies and maintenance |  |  | 17,408 |  |  |  | 13,352 |  |  |  | 33,395 |  |  |  | 25,665 |
Depreciation |  |  | 29,427 |  |  |  | 26,865 |  |  |  | 58,957 |  |  |  | 53,008 |
Operating taxes and licenses |  |  | 2,756 |  |  |  | 2,663 |  |  |  | 5,524 |  |  |  | 5,303 |
Insurance and claims |  |  | 12,481 |  |  |  | 13,443 |  |  |  | 27,551 |  |  |  | 26,147 |
Communications and utilities |  |  | 2,510 |  |  |  | 2,239 |  |  |  | 5,041 |  |  |  | 4,504 |
Gain on disposition of revenue equipment |  |  | (3,550 | ) |  |  | (4,812 | ) |  |  | (8,796 | ) |  |  | (9,352 | )
Other |  |  | 9,581 |  |  |  | 9,601 |  |  |  | 18,539 |  |  |  | 18,472 |
Total operating expenses |  |  | 257,459 |  |  |  | 288,628 |  |  |  | 526,472 |  |  |  | 540,051 |
Operating income |  |  | 28,213 |  |  |  | 40,937 |  |  |  | 57,223 |  |  |  | 76,795 |
Other |  |  | (1,077 | ) |  |  | (36 | ) |  |  | (1,921 | ) |  |  | (43 | )
Income before income taxes |  |  | 29,290 |  |  |  | 40,973 |  |  |  | 59,144 |  |  |  | 76,838 |
Income taxes expense |  |  | 7,416 |  |  |  | 9,312 |  |  |  | 14,768 |  |  |  | 17,644 |
Net income |  | $ | 21,874 |  |  | $ | 31,661 |  |  | $ | 44,376 |  |  | $ | 59,194 |
Basic earnings per common share |  | $ | 0.27 |  |  | $ | 0.39 |  |  | $ | 0.55 |  |  | $ | 0.72 |
Diluted earnings per common share |  | $ | 0.27 |  |  | $ | 0.39 |  |  | $ | 0.55 |  |  | $ | 0.72 |
Dividends declared per common share |  | $ | 0.06 |  |  | $ | 0.06 |  |  | $ | 0.12 |  |  | $ | 0.12 |

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

|  |  |  |  |  |  |  |  |  | Dollar |  |  | Percentage |
|  |  |  |  |  |  |  |  |  | Change |  |  | Change |
|  | Three Months |  |  | Three Months |  |  | Three Months |
|  | Ended |  |  | Ended |  |  | Ended |
|  | June 30, |  |  | June 30, |  |  | June 30, |
(Dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 vs. 2022 |  |  | 2023 vs. 2022 |
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload revenue, net of fuel surcharge revenue |  | $ | 101,268 |  |  | $ | 101,808 |  |  | $ | (540 | ) |  |  | (0.5 | )%
Truckload fuel surcharge revenue |  |  | 15,870 |  |  |  | 25,164 |  |  |  | (9,294 | ) |  |  | (36.9 | )
Total Truckload revenue |  |  | 117,138 |  |  |  | 126,972 |  |  |  | (9,834 | ) |  |  | (7.7 | )
Dedicated revenue, net of fuel surcharge revenue |  |  | 87,437 |  |  |  | 84,389 |  |  |  | 3,048 |  |  |  | 3.6 |
Dedicated fuel surcharge revenue |  |  | 17,548 |  |  |  | 25,966 |  |  |  | (8,418 | ) |  |  | (32.4 | )
Total Dedicated revenue |  |  | 104,985 |  |  |  | 110,355 |  |  |  | (5,370 | ) |  |  | (4.9 | )
Intermodal revenue, net of fuel surcharge revenue |  |  | 18,754 |  |  |  | 27,681 |  |  |  | (8,927 | ) |  |  | (32.2 | )
Intermodal fuel surcharge revenue |  |  | 3,611 |  |  |  | 9,286 |  |  |  | (5,675 | ) |  |  | (61.1 | )
Total Intermodal revenue |  |  | 22,365 |  |  |  | 36,967 |  |  |  | (14,602 | ) |  |  | (39.5 | )
Brokerage revenue |  |  | 41,184 |  |  |  | 55,271 |  |  |  | (14,087 | ) |  |  | (25.5 | )
Total operating revenue |  | $ | 285,672 |  |  | $ | 329,565 |  |  | $ | (43,893 | ) |  |  | (13.3 | )%
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  | $ | 9,569 |  |  | $ | 16,088 |  |  | $ | (6,519 | ) |  |  | (40.5 | )%
Dedicated |  |  | 14,173 |  |  |  | 14,039 |  |  |  | 134 |  |  |  | 1.0 |
Intermodal |  |  | (165 | ) |  |  | 4,097 |  |  |  | (4,262 | ) |  |  | (104.0 | )
Brokerage |  |  | 4,636 |  |  |  | 6,713 |  |  |  | (2,077 | ) |  |  | (30.9 | )
Total operating income |  | $ | 28,213 |  |  | $ | 40,937 |  |  | $ | (12,724 | ) |  |  | (31.1 | )%
Operating ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 91.8 | % |  |  | 87.3 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 86.5 |  |  |  | 87.3 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 100.7 |  |  |  | 88.9 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 88.7 |  |  |  | 87.9 |  |  |  |  |  |  |  |  |
Consolidated operating ratio |  |  | 90.1 | % |  |  | 87.6 | % |  |  |  |  |  |  |  |
Operating ratio, net of fuel surcharges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 90.6 | % |  |  | 84.2 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 83.8 |  |  |  | 83.4 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 100.9 |  |  |  | 85.2 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 88.7 |  |  |  | 87.9 |  |  |  |  |  |  |  |  |
Consolidated operating ratio, net of fuel surcharges |  |  | 88.7 | % |  |  | 84.8 | % |  |  |  |  |  |  |  |

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

|  |  |  |  |  |  |  |  |  | Dollar |  |  | Percentage |
|  |  |  |  |  |  |  |  |  | Change |  |  | Change |
|  | Six Months |  |  | Six Months |  |  | Six Months |
|  | Ended |  |  | Ended |  |  | Ended |
|  | June 30, |  |  | June 30, |  |  | June 30, |
(Dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2023 vs. 2022 |  |  | 2023 vs. 2022 |
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload revenue, net of fuel surcharge revenue |  | $ | 203,588 |  |  | $ | 196,978 |  |  | $ | 6,610 |  |  |  | 3.4 | %
Truckload fuel surcharge revenue |  |  | 34,176 |  |  |  | 42,784 |  |  |  | (8,608 | ) |  |  | (20.1 | )
Total Truckload revenue |  |  | 237,764 |  |  |  | 239,762 |  |  |  | (1,998 | ) |  |  | (0.8 | )
Dedicated revenue, net of fuel surcharge revenue |  |  | 174,268 |  |  |  | 162,810 |  |  |  | 11,458 |  |  |  | 7.0 |
Dedicated fuel surcharge revenue |  |  | 37,166 |  |  |  | 44,305 |  |  |  | (7,139 | ) |  |  | (16.1 | )
Total Dedicated revenue |  |  | 211,434 |  |  |  | 207,115 |  |  |  | 4,319 |  |  |  | 2.1 |
Intermodal revenue, net of fuel surcharge revenue |  |  | 42,155 |  |  |  | 53,286 |  |  |  | (11,131 | ) |  |  | (20.9 | )
Intermodal fuel surcharge revenue |  |  | 8,799 |  |  |  | 15,323 |  |  |  | (6,524 | ) |  |  | (42.6 | )
Total Intermodal revenue |  |  | 50,954 |  |  |  | 68,609 |  |  |  | (17,655 | ) |  |  | (25.7 | )
Brokerage revenue |  |  | 83,543 |  |  |  | 101,360 |  |  |  | (17,817 | ) |  |  | (17.6 | )
Total operating revenue |  | $ | 583,695 |  |  | $ | 616,846 |  |  | $ | (33,151 | ) |  |  | (5.4 | )%
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  | $ | 19,610 |  |  | $ | 31,659 |  |  | $ | (12,049 | ) |  |  | (38.1 | )%
Dedicated |  |  | 27,857 |  |  |  | 24,684 |  |  |  | 3,173 |  |  |  | 12.9 |
Intermodal |  |  | 622 |  |  |  | 9,133 |  |  |  | (8,511 | ) |  |  | (93.2 | )
Brokerage |  |  | 9,134 |  |  |  | 11,319 |  |  |  | (2,185 | ) |  |  | (19.3 | )
Total operating income |  | $ | 57,223 |  |  | $ | 76,795 |  |  | $ | (19,572 | ) |  |  | (25.5 | )%
Operating ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 91.8 | % |  |  | 86.8 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 86.8 |  |  |  | 88.1 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 98.8 |  |  |  | 86.7 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 89.1 |  |  |  | 88.8 |  |  |  |  |  |  |  |  |
Consolidated operating ratio |  |  | 90.2 | % |  |  | 87.6 | % |  |  |  |  |  |  |  |
Operating ratio, net of fuel surcharges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Truckload |  |  | 90.4 | % |  |  | 83.9 | % |  |  |  |  |  |  |  |
Dedicated |  |  | 84.0 |  |  |  | 84.8 |  |  |  |  |  |  |  |  |
Intermodal |  |  | 98.5 |  |  |  | 82.9 |  |  |  |  |  |  |  |  |
Brokerage |  |  | 89.1 |  |  |  | 88.8 |  |  |  |  |  |  |  |  |
Consolidated operating ratio, net of fuel surcharges |  |  | 88.6 | % |  |  | 85.1 | % |  |  |  |  |  |  |  |

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

|  | Three Months |  |  | Six Months |
|  | Ended June 30, |  |  | Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Truckload Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 117,138 |  |  | $ | 126,972 |  |  | $ | 237,764 |  |  | $ | 239,762 |
Average revenue, net of fuel surcharges, per tractor per week(1) |  | $ | 4,472 |  |  | $ | 5,080 |  |  | $ | 4,521 |  |  | $ | 5,030 |
Average tractors(1) |  |  | 1,742 |  |  |  | 1,542 |  |  |  | 1,742 |  |  |  | 1,515 |
Average miles per trip |  |  | 505 |  |  |  | 509 |  |  |  | 507 |  |  |  | 514 |
Non-revenue miles percentage(2) |  |  | 12.4 | % |  |  | 10.7 | % |  |  | 12.5 | % |  |  | 10.6 | %
Total miles (in thousands) |  |  | 39,321 |  |  |  | 36,752 |  |  |  | 77,558 |  |  |  | 72,124 |
Dedicated Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 104,985 |  |  | $ | 110,355 |  |  | $ | 211,434 |  |  | $ | 207,115 |
Average revenue, net of fuel surcharges, per tractor per week(1) |  | $ | 3,986 |  |  | $ | 4,072 |  |  | $ | 3,973 |  |  | $ | 3,962 |
Average tractors(1) |  |  | 1,687 |  |  |  | 1,594 |  |  |  | 1,696 |  |  |  | 1,589 |
Average miles per trip |  |  | 332 |  |  |  | 341 |  |  |  | 332 |  |  |  | 341 |
Non-revenue miles percentage(2) |  |  | 1.3 | % |  |  | 1.0 | % |  |  | 1.2 | % |  |  | 1.1 | %
Total miles (in thousands) |  |  | 34,833 |  |  |  | 34,134 |  |  |  | 68,909 |  |  |  | 66,887 |
Intermodal Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 22,365 |  |  | $ | 36,967 |  |  | $ | 50,954 |  |  | $ | 68,609 |
Loads |  |  | 6,267 |  |  |  | 8,703 |  |  |  | 13,544 |  |  |  | 16,997 |
Average tractors |  |  | 170 |  |  |  | 175 |  |  |  | 175 |  |  |  | 169 |
Brokerage Segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue (in thousands) |  | $ | 41,184 |  |  | $ | 55,271 |  |  | $ | 83,543 |  |  | $ | 101,360 |
Loads |  |  | 22,718 |  |  |  | 25,322 |  |  |  | 43,406 |  |  |  | 45,006 |
At June 30, 2023 and June 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total tractors(1) |  |  | 3,516 |  |  |  | 3,395 |  |  |  |  |  |  |  |  |
Average age of company tractors (in years) |  |  | 1.7 |  |  |  | 1.6 |  |  |  |  |  |  |  |  |
Total trailers |  |  | 5,786 |  |  |  | 5,521 |  |  |  |  |  |  |  |  |
Average age of company trailers (in years) |  |  | 4.2 |  |  |  | 3.6 |  |  |  |  |  |  |  |  |
Ratio of trailers to tractors(1) |  |  | 1.6 |  |  |  | 1.6 |  |  |  |  |  |  |  |  |
Total refrigerated containers |  |  | 791 |  |  |  | 784 |  |  |  |  |  |  |  |  |

|  | Three Months |  |  | Six Months |
|  | Ended June 30, |  |  | Ended June 30, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Net cash provided by operating activities |  | $ | 48,969 |  |  | $ | 58,730 |  |  | $ | 98,201 |  |  | $ | 98,670 |
Net cash (used for) investing activities |  |  | (60,359 | ) |  |  | (35,413 | ) |  |  | (88,639 | ) |  |  | (35,004 | )
Net cash (used for) financing activities |  |  | (4,370 | ) |  |  | (21,470 | ) |  |  | (9,634 | ) |  |  | (52,287 | )
Weighted average shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 81,263 |  |  |  | 81,689 |  |  |  | 81,236 |  |  |  | 82,310 |
Diluted |  |  | 81,412 |  |  |  | 82,015 |  |  |  | 81,394 |  |  |  | 82,617 |

(1) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 98 and 85 tractors as of June 30, 2023 and 2022, respectively.
(2) | Represents the percentage of miles for which the company is not compensated.