Exhibit 99.1
MARTEN TRANSPORT, LTD. ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
MONDOVI, Wis., April 21, 2004/PR Newswire/ – Marten Transport, Ltd. (Nasdaq/NMS:MRTN) announced today a 95.6% increase in net income for the quarter ended March 31, 2004.
For the quarter ended March 31, 2004, operating revenue increased 6.6%, to $84.5 million from $79.3 million for the same quarter of 2003. Operating revenue included fuel surcharges of $4.0 million for the quarter ended March 31, 2004, compared with $4.2 million for the same quarter of 2003. Excluding fuel surcharge revenue, the increase in revenue was 7.2%. We measure revenue, before fuel surcharges, or “freight revenue,” in addition to operating revenue, because we believe 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 March 31, 2004, net income increased 95.6%, to $2.7 million from $1.4 million for the same quarter of 2003. For the quarter ended March 31, 2004, net income per diluted share increased 35.7%, to $0.19 from $0.14 for the same quarter of 2003, on a 46.8% increase in weighted average diluted shares outstanding attributable primarily to our public offering of common stock completed during the 2003 third quarter. Diluted earnings per share give retroactive effect in all periods to the three-for-two stock splits effected in the form of a 50% stock dividend paid on July 24, 2003, and December 5, 2003.
Chairman and President Randolph L. Marten stated, “We were happy with our first quarter operating performance. We still have room for improvement – but we are more than up for the challenge. Average freight revenue per tractor per week, our main measure of asset productivity, increased 4.7%, to $2,845 from $2,716 in the first quarter of 2003. Due to strong efforts by our sales force and cooperation from customers that recognize the value of our service, our average freight revenue per total mile improved for the fourth consecutive quarter, to $1.26 from $1.21 for the first quarter of 2003. In addition, average miles per tractor increased slightly to 29,016 from 28,819 in the first quarter of 2003 and our non-revenue miles percentage improved to 6.6% from 6.8% in the first quarter of 2003. Strong freight demand, improved freight selection, and disciplined operations helped us overcome the challenges of a tight driver market, high fuel prices, and an increase in insurance and claims. As a result, our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.6% from 96.7% for the first quarter of 2003.”
We will host a conference call on Thursday, April 22, at 2:00 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: 6819143. 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.
CONTACT: Randy Marten, President of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | Three Months
Ended March 31, | |
(In thousands, except per share information) | | 2004 | | 2003 | |
| | | | | |
OPERATING REVENUE | | $ | 84,530 | | $ | 79,321 | |
| | | | | | | |
OPERATING EXPENSES (INCOME): | | | | | |
Salaries, wages and benefits | | 25,327 | | 23,680 | |
Purchased transportation | | 17,683 | | 17,764 | |
Fuel and fuel taxes | | 14,869 | | 14,340 | |
Supplies and maintenance | | 6,078 | | 5,942 | |
Depreciation | | 7,863 | | 7,289 | |
Operating taxes and licenses | | 1,571 | | 1,399 | |
Insurance and claims | | 4,405 | | 3,695 | |
Communications and utilities | | 801 | | 801 | |
Gain on disposition of revenue equipment | | (528 | ) | (87 | ) |
Other | | 1,872 | | 1,842 | |
| | | | | |
Total operating expenses | | 79,941 | | 76,665 | |
| | | | | |
OPERATING INCOME | | 4,589 | | 2,656 | |
| | | | | |
OTHER EXPENSES (INCOME): | | | | | |
Interest expense | | 523 | | 780 | |
Interest income | | (341 | ) | (377 | ) |
| | | | | |
INCOME BEFORE INCOME TAXES | | 4,407 | | 2,253 | |
| | | | | |
PROVISION FOR INCOME TAXES | | 1,675 | | 856 | |
| | | | | |
NET INCOME | | $ | 2,732 | | $ | 1,397 | |
| | | | | |
BASIC EARNINGS PER COMMON SHARE(1) | | $ | 0.20 | | $ | 0.15 | |
| | | | | |
DILUTED EARNINGS PER COMMON SHARE(1) | | $ | 0.19 | | $ | 0.14 | |
(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.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands, except share information) | | March 31,
2004 | | December 31,
2003 | |
| | | | | |
ASSETS | | | | | |
Current assets: | | | | | |
Marketable securities | | $ | 11,864 | | $ | 19,219 | |
Receivables: | | | | | |
Trade, net | | 36,144 | | 34,582 | |
Other | | 7,963 | | 7,337 | |
Prepaid expenses and other | | 10,978 | | 10,034 | |
Deferred income taxes | | 4,046 | | 3,048 | |
| | | | | |
Total current assets | | 70,995 | | 74,220 | |
| | | | | |
Property and equipment: | | | | | |
Revenue equipment, buildings and land, office equipment, and other | | 273,096 | | 263,502 | |
Accumulated depreciation | | (90,780 | ) | (93,684 | ) |
| | | | | |
Net property and equipment | | 182,316 | | 169,818 | |
| | | | | |
Other assets | | 5,918 | | 5,557 | |
| | | | | |
TOTAL ASSETS | | $ | 259,229 | | $ | 249,595 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Checks issued in excess of cash balances | | $ | 3,269 | | $ | 549 | |
Accounts payable and accrued liabilities | | 17,131 | | 17,062 | |
Insurance and claims accruals | | 12,517 | | 12,052 | |
Current maturities of long-term debt | | 5,000 | | 5,000 | |
| | | | | |
Total current liabilities | | 37,917 | | 34,663 | |
| | | | | |
Long-term debt, less current maturities | | 22,857 | | 22,857 | |
Deferred income taxes | | 48,714 | | 47,541 | |
| | | | | |
Total liabilities | | 109,488 | | 105,061 | |
| | | | | |
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; 13,999,889 shares, at March 31, 2004, and 13,759,776 shares, at December 31, 2003, issued and outstanding(1) | | 140 | | 138 | |
Additional paid-in capital | | 66,738 | | 64,265 | |
Retained earnings | | 82,863 | | 80,131 | |
| | | | | |
Total stockholders’ equity | | 149,741 | | 144,534 | |
| | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 259,229 | | $ | 249,595 | |
(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
March 31, | |
| | 2004 | | 2003 | |
| | | | | |
Operating Statistics: | | | | | |
For period: | | | | | |
Average operating revenue per total mile | | $ | 1.32 | | $ | 1.28 | |
Average freight revenue per total mile(1) | | $ | 1.26 | | $ | 1.21 | |
Average miles per tractor(2) | | 29,016 | | 28,819 | |
Average operating revenue per tractor per week(2) | | $ | 2,987 | | $ | 2,867 | |
Average freight revenue per tractor per week(1) (2) | | $ | 2,845 | | $ | 2,716 | |
Average miles per trip | | 1,025 | | 996 | |
Non-revenue miles percentage(3) | | 6.6 | % | 6.8 | % |
Total miles – company-employed drivers (in thousands) | | 44,214 | | 42,223 | |
Total miles – independent contractors (in thousands) | | 19,657 | | 19,796 | |
| | | | | |
At March 31, 2004, and March 31, 2003: | | | | | |
Total tractors(2) | | 2,181 | | 2,116 | |
Average age of company tractors (in years) | | 1.7 | | 2.0 | |
Total trailers | | 2,960 | | 2,769 | |
Average age of company trailers (in years) | | 3.8 | | 4.0 | |
Ratio of trailers to tractors(2) | | 1.4 | | 1.3 | |
Ratio of tractors to non-driver personnel(2) | | 5.3 | | 5.6 | |
| | | | | |
| | Three Months Ended
March 31, | |
(In thousands) | | 2004 | | 2003 | |
Net cash provided by operating activities | | $ | 8,762 | | $ | 10,036 | |
Net cash used for investing activities | | 20,194 | | 7,621 | |
(1) Excludes fuel surcharge revenue.
(2) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 574 and 596 tractors as of March 31, 2004, and 2003, respectively.
(3) Represents the percentage of miles for which the Company is not compensated.
