Exhibit 99.1
MARTEN TRANSPORT, LTD. ANNOUNCES
FOURTH QUARTER FINANCIAL RESULTS
MONDOVI, Wis., January 30, 2004/PR Newswire/ – Marten Transport, Ltd. (Nasdaq/NMS:MRTN) announced today its financial results for the quarter and year ended December 31, 2003.
For the quarter ended December 31, 2003, operating revenue increased 11.7%, to $85.2 million from $76.3 million for the same quarter of 2002. For the year ended December 31, 2003, operating revenue increased 14.2%, to $334.7 million from $293.1 million for 2002. Operating revenue included fuel surcharges of $3.1 million and $14.1 million for the quarter and year ended December 31, 2003, compared with $2.6 million and $5.5 million for the quarter and year ended December 31, 2002. Excluding fuel surcharge revenue, the increase in revenue was 11.3% for the quarter and 11.5% for the year. The Company measures revenue, before fuel surcharges, or “freight revenue,” in addition to operating revenue, because management believes removing this sometimes volatile source of revenue affords a more consistent basis for comparing results of operations from period to period.
For the quarter ended December 31, 2003, net income increased to $3.5 million from $579,000 for the same quarter of 2002. For the year ended December 31, 2003, net income increased 98.3%, to $11.8 million from $6.0 million for 2002.
For the quarter ended December 31, 2003, net income per diluted share increased to $0.24 from $0.06 for the same quarter of 2002, on a 46.5% increase in weighted average shares outstanding attributable primarily to the Company’s public offering of common stock completed during the 2003 third quarter. For the year ended December 31, 2003, net income per diluted share increased 67.2%, to $1.02 from $0.61 for 2002, on an 18.5% increase in weighted average shares attributable primarily to the stock offering. Diluted earnings per share amounts give retroactive effect in all periods to the Company’s three-for-two stock splits effected in the form of 50% stock dividends paid on July 24, 2003, and December 5, 2003.
Chairman and President Randolph L. Marten stated, “We were pleased with the company’s operating performance during the quarter, as both freight rates and miles per tractor improved compared with the same quarter of 2002. Average operating revenue per tractor per week increased 6.1%, to $2,955 from $2,784 in the fourth quarter of 2002. Average freight revenue per tractor per week increased 5.8%, to $2,846 from $2,690 in the fourth quarter of 2002. Our operating ratio (operating expenses as a percentage of operating revenue) improved to 93.3% for the quarter compared with 98.2% for the same quarter last year.
Our strong balance sheet continued to afford us significant financial flexibility. At December 31, 2003, we had approximately $19.2 million of marketable securities, $27.9 million of long-term debt, and $144.5 million in stockholders’ equity.”
The Company will host a conference call on Monday, February 2, 2004, at 3:30 p.m. Central Time. The public will be able to listen and participate in the call telephonically by dialing 877-576-2752 and entering the following code: 5051838. For additional information on accessing the
call and for statistical and financial information regarding the Company that is expected to be discussed during the conference call, please visit our website at www.marten.com.
Marten Transport, Ltd. is one of the leading temperature-sensitive truckload carriers in the United States. The Company specializes in transporting food and other consumer packaged goods that require a temperature-sensitive or insulated environment. Marten offers nationwide service, concentrating on expedited movements for high-volume customers. The Company’s common stock is traded on the Nasdaq National Market under the symbol MRTN.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that constitute forward-looking statements are usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” or similar expressions. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant assumptions, risks, and uncertainties. The following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess tractor and trailer capacity in the trucking industry; surplus inventories; recessionary economic cycles and downturns in customers’ business cycles; a decrease in shipping activity with the Company by one or more major customers; increases or rapid fluctuations in fuel prices and fluctuations in fuel and other surcharge collection, as well as in interest rates, fuel taxes, tolls, and license and registration fees; volatility in the resale value of the Company’s used equipment and the price of new equipment; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; the frequency and severity of accidents; increases in insurance premiums and deductible amounts relating to accident, cargo, workers’ compensation, health, and other claims; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; and regulatory requirements that increase costs or decrease efficiency, including, but not limited to, the effects of revised hours-of-service requirements for drivers effective January 4, 2004. Readers should review and consider the various disclosures made by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission.
CONTACT: Tom Langenfeld of BlueFire Partners for Marten Transport, Ltd., 612-344-1038, or Randy Marten, President of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
|
| Three Months |
| Years |
| ||||||||
(In thousands, except per share information) |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating revenue |
| $ | 85,237 |
| $ | 76,331 |
| $ | 334,667 |
| $ | 293,096 |
|
Operating expenses (income): |
|
|
|
|
|
|
|
|
| ||||
Salaries, wages and benefits |
| 25,840 |
| 23,079 |
| 101,023 |
| 89,941 |
| ||||
Purchased transportation |
| 17,210 |
| 17,296 |
| 71,133 |
| 67,359 |
| ||||
Fuel and fuel taxes |
| 14,399 |
| 12,300 |
| 56,371 |
| 43,339 |
| ||||
Supplies and maintenance |
| 6,246 |
| 5,746 |
| 24,838 |
| 21,792 |
| ||||
Depreciation |
| 7,706 |
| 7,060 |
| 30,046 |
| 27,706 |
| ||||
Operating taxes and licenses |
| 1,520 |
| 1,456 |
| 5,697 |
| 5,136 |
| ||||
Insurance and claims |
| 4,006 |
| 4,287 |
| 15,206 |
| 14,870 |
| ||||
Communications and utilities |
| 907 |
| 782 |
| 3,326 |
| 3,002 |
| ||||
Loss (gain) on disposition of revenue equipment |
| (330 | ) | 139 |
| (640 | ) | 26 |
| ||||
Other |
| 1,987 |
| 2,810 |
| 7,331 |
| 8,064 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
| 79,491 |
| 74,955 |
| 314,331 |
| 281,235 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
| 5,746 |
| 1,376 |
| 20,336 |
| 11,861 |
| ||||
Other expenses (income): |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| 542 |
| 820 |
| 2,753 |
| 3,479 |
| ||||
Interest income |
| (396 | ) | (378 | ) | (1,517 | ) | (1,252 | ) | ||||
|
| 146 |
| 442 |
| 1,236 |
| 2,227 |
| ||||
Income before income taxes |
| 5,600 |
| 934 |
| 19,100 |
| 9,634 |
| ||||
Provision for income taxes |
| 2,128 |
| 355 |
| 7,258 |
| 3,661 |
| ||||
Net income |
| $ | 3,472 |
| $ | 579 |
| $ | 11,842 |
| $ | 5,973 |
|
Basic earnings per common share (1) |
| $ | 0.25 |
| $ | 0.06 |
| $ | 1.07 |
| $ | 0.63 |
|
Diluted earnings per common share (1) |
| $ | 0.24 |
| $ | 0.06 |
| $ | 1.02 |
| $ | 0.61 |
|
(1) Basic and diluted earnings per share reflect the Company’s three-for-two stock splits effected in the form of 50% stock dividends paid on July 24, 2003 and December 5, 2003.
MARTEN TRANSPORT, LTD.
BALANCE SHEETS
(Unaudited)
|
| December 31, |
| ||||
(In thousands, except share and per share information) |
| 2003 |
| 2002 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Marketable securities |
| $ | 19,219 |
| $ | — |
|
Receivables: |
|
|
|
|
| ||
Trade, less allowances of $793 and $892, respectively |
| 34,582 |
| 30,627 |
| ||
Other |
| 7,337 |
| 6,561 |
| ||
Prepaid expenses and other |
| 10,034 |
| 7,832 |
| ||
Deferred income taxes |
| 3,048 |
| 4,311 |
| ||
Total current assets |
| 74,220 |
| 49,331 |
| ||
Property and equipment: |
|
|
|
|
| ||
Revenue equipment |
| 247,822 |
| 233,490 |
| ||
Buildings and land |
| 8,013 |
| 8,003 |
| ||
Office equipment and other |
| 7,667 |
| 7,338 |
| ||
Less accumulated depreciation |
| (93,684 | ) | (89,003 | ) | ||
Net property and equipment |
| 169,818 |
| 159,828 |
| ||
Other assets |
| 5,557 |
| 6,859 |
| ||
|
| $ | 249,595 |
| $ | 216,018 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Checks issued in excess of cash balances |
| $ | 549 |
| $ | 130 |
|
Accounts payable |
| 3,683 |
| 4,919 |
| ||
Insurance and claims accruals |
| 12,052 |
| 12,915 |
| ||
Accrued liabilities |
| 13,379 |
| 10,625 |
| ||
Current maturities of long-term debt |
| 5,000 |
| 3,571 |
| ||
Total current liabilities |
| 34,663 |
| 32,160 |
| ||
Long-term debt, less current maturities |
| 22,857 |
| 60,058 |
| ||
Deferred income taxes |
| 47,541 |
| 44,580 |
| ||
Total liabilities |
| 105,061 |
| 136,798 |
| ||
Commitments and contingencies |
|
|
|
|
| ||
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; 23,000,000 shares authorized; 13,759,776 shares, at December 31, 2003, and 9,544,488 shares, at December 31, 2002, issued and outstanding (1) |
| 138 |
| 95 |
| ||
Additional paid-in capital |
| 64,265 |
| 10,822 |
| ||
Retained earnings |
| 80,131 |
| 68,303 |
| ||
Total stockholders’ equity |
| 144,534 |
| 79,220 |
| ||
|
| $ | 249,595 |
| $ | 216,018 |
|
(1) Shares outstanding reflect the Company’s three-for-two stock splits effected in the form of 50% stock dividends paid on July 24, 2003 and December 5, 2003.
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating Statistics: |
|
|
|
|
|
|
|
|
| ||||
For period: |
|
|
|
|
|
|
|
|
| ||||
Average operating revenue per total mile |
| $ | 1.29 |
| $ | 1.26 |
| $ | 1.28 |
| $ | 1.23 |
|
Average freight revenue per total mile (1) |
| $ | 1.24 |
| $ | 1.22 |
| $ | 1.23 |
| $ | 1.21 |
|
Average miles per tractor (2) |
| 30,058 |
| 29,044 |
| 120,441 |
| 118,624 |
| ||||
Average operating revenue per tractor per week (2) |
| $ | 2,955 |
| $ | 2,784 |
| $ | 2,955 |
| $ | 2,809 |
|
Average freight revenue per tractor per week (1) (2) |
| $ | 2,846 |
| $ | 2,690 |
| $ | 2,831 |
| $ | 2,756 |
|
Average miles per trip |
| 1,023 |
| 985 |
| 1,008 |
| 968 |
| ||||
Non-revenue miles percentage (3) |
| 6.7 | % | 6.5 | % | 6.7 | % | 6.6 | % | ||||
Total miles – company-employed drivers (in thousands) |
| 46,363 |
| 40,493 |
| 181,254 |
| 158,038 |
| ||||
Total miles – independent contractors (in thousands) |
| 19,595 |
| 20,085 |
| 80,312 |
| 79,375 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
At December 31, 2003, and December 31, 2002: |
|
|
|
|
|
|
|
|
| ||||
Total tractors (2) |
| 2,181 |
| 2,078 |
|
|
|
|
| ||||
Average age of company tractors (in years) |
| 1.9 |
| 1.9 |
|
|
|
|
| ||||
Total trailers |
| 2,835 |
| 2,676 |
|
|
|
|
| ||||
Average age of company trailers (in years) |
| 3.9 |
| 4.1 |
|
|
|
|
| ||||
Ratio of trailers to tractors (2) |
| 1.3 |
| 1.3 |
|
|
|
|
| ||||
Ratio of tractors to non-driver personnel (2) |
| 5.3 |
| 5.6 |
|
|
|
|
|
|
| Three Months Ended |
| Year Ended |
| ||||||||
(In thousands) |
| 2003 |
| 2002 |
| 2003 |
| 2002 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 4,727 |
| $ | 5,867 |
| $ | 39,194 |
| $ | 38,148 |
|
Net cash used for investing activities |
| 13,795 |
| 11,524 |
| 38,094 |
| 29,375 |
| ||||
(1) Excludes fuel surcharge revenue.
(2) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 585 and 611 tractors as of December 31, 2003, and 2002, respectively.
(3) Represents the percentage of miles for which the Company is not compensated.