Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES FIRST QUARTER RESULTS
NET INCOME INCREASES 52.8%
MONDOVI, Wis., April 21, 2009 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) announced today its financial and operating results for the quarter ended March 31, 2009.
For the first quarter of 2009, net income increased 52.8% to $4.1 million, or 18 cents per diluted share, compared with $2.7 million, or 12 cents per diluted share, for the same quarter of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 14.9% to $122.0 million in the first quarter of 2009 from $143.4 million in the 2008 quarter. This decrease was primarily due to fuel surcharge revenue decreasing to $10.8 million in the quarter from $28.0 million in the 2008 quarter, caused by significantly lower fuel prices in the 2009 quarter. Operating revenue, net of fuel surcharges, decreased 3.6% to $111.2 million in the 2009 quarter from $115.4 million in the 2008 quarter.
Operating expenses decreased 16.8% to $114.7 million in the first quarter of 2009 from $137.9 million in the 2008 quarter. The operating expense decrease was primarily due to decreases in fuel and fuel taxes and purchased transportation. Fuel and fuel taxes decreased 47.8% to $21.9 million in the first quarter of 2009 from $41.9 million in the 2008 quarter. This improvement was primarily attributable to significantly lower fuel prices in the 2009 quarter and to our continued emphasis on controlling tractor and trailer fuel costs. Purchased transportation decreased 18.8% to $22.8 million in the first quarter of 2009 from $28.0 million in the first quarter of 2008, primarily the result of fewer miles driven by independent contractors.
Chairman and Chief Executive Officer Randolph L. Marten said, “Despite the overall turmoil in the economy and the exceptionally difficult freight environment, we continued to improve our profitability and our strong financial position in this year’s first quarter. Consistent with the growth in our net income, another fundamental measurement of our profitability, our cash from operating activities, increased to $27.4 million for the first quarter of 2009 from $14.7 million in the 2008 quarter. We are well-positioned for an economic recovery with our multi-faceted business model and our positive cash position with minimal debt.
“We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls. In particular, our regional expansion, our logistics business growth, and our fuel efficiency initiatives have helped us improve our results.
“Our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.1% for the first quarter of 2009 from 96.2% for the first quarter of 2008.
“We are also pleased to be recently named to the Audit Integrity Top 100 for the second consecutive year, as reported by Forbes.com. The Audit Integrity Top 100 recognizes U.S. exchange-listed companies with market capitalizations of at least $200 million that display the
highest corporate integrity, clear financial reporting, and transparent corporate governance as measured by Audit Integrity’s Accounting and Governance Risk ratings.”
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. 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, including that we are well-positioned for an economic recovery. These statements 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 us that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008. We undertake 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, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
| | March 31, | | December 31, | |
(In thousands, except share information) | | 2009 | | 2008 | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash | | $ | 2,176 | | $ | 2,395 | |
Marketable securities | | 14,849 | | 2,604 | |
Receivables: | | | | | |
Trade, net | | 46,433 | | 50,143 | |
Other | | 5,483 | | 7,385 | |
Prepaid expenses and other | | 11,583 | | 13,705 | |
Deferred income taxes | | 7,084 | | 6,140 | |
Total current assets | | 87,608 | | 82,372 | |
Property and equipment: | | | | | |
Revenue equipment, buildings and land, office equipment and other | | 459,589 | | 451,172 | |
Accumulated depreciation | | (143,664 | ) | (136,871 | ) |
Net property and equipment | | 315,925 | | 314,301 | |
Other assets | | 664 | | 770 | |
TOTAL ASSETS | | $ | 404,197 | | $ | 397,443 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Checks issued in excess of cash balances | | $ | 472 | | $ | 1,807 | |
Accounts payable and accrued liabilities | | 33,449 | | 32,894 | |
Insurance and claims accruals | | 21,720 | | 21,386 | |
Current maturities of long-term debt | | 1,428 | | 1,428 | |
Total current liabilities | | 57,069 | | 57,515 | |
Long-term debt, less current maturities | | 1,429 | | 1,429 | |
Deferred income taxes | | 83,698 | | 81,048 | |
Total liabilities | | 142,196 | | 139,992 | |
| | | | | |
Stockholders’ equity: | | | | | |
Marten Transport, Ltd. 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; 48,000,000 shares authorized; 21,852,228 shares at March 31, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding | | 219 | | 218 | |
Additional paid-in capital | | 75,619 | | 75,305 | |
Retained earnings | | 184,266 | | 180,213 | |
Total Marten Transport, Ltd. stockholders’ equity | | 260,104 | | 255,736 | |
Noncontrolling interest | | 1,897 | | 1,715 | |
Total stockholders’ equity | | 262,001 | | 257,451 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 404,197 | | $ | 397,443 | |
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| | Three Months | |
| | Ended March 31, | |
(In thousands, except per share information) | | 2009 | | 2008 | |
| | | | | |
OPERATING REVENUE | | $ | 121,955 | | $ | 143,374 | |
| | | | | |
OPERATING EXPENSES (INCOME): | | | | | |
Salaries, wages and benefits | | 36,102 | | 36,682 | |
Purchased transportation | | 22,752 | | 28,004 | |
Fuel and fuel taxes | | 21,866 | | 41,929 | |
Supplies and maintenance | | 9,818 | | 9,332 | |
Depreciation | | 13,433 | | 11,962 | |
Operating taxes and licenses | | 1,676 | | 1,712 | |
Insurance and claims | | 5,521 | | 5,565 | |
Communications and utilities | | 1,065 | | 961 | |
Gain on disposition of revenue equipment | | (471 | ) | (1,059 | ) |
Other | | 2,942 | | 2,804 | |
| | | | | |
Total operating expenses | | 114,704 | | 137,892 | |
| | | | | |
OPERATING INCOME | | 7,251 | | 5,482 | |
| | | | | |
OTHER EXPENSES (INCOME): | | | | | |
Interest expense | | 64 | | 534 | |
Interest income | | (33 | ) | (77 | ) |
| | 31 | | 457 | |
| | | | | |
INCOME BEFORE INCOME TAXES | | 7,220 | | 5,025 | |
Less: Income before income taxes attributable to noncontrolling interest | | 116 | | 380 | |
| | | | | |
INCOME BEFORE INCOME TAXES | | | | | |
ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. | | 7,104 | | 4,645 | |
| | | | | |
PROVISION FOR INCOME TAXES | | 3,051 | | 1,992 | |
| | | | | |
NET INCOME | | $ | 4,053 | | $ | 2,653 | |
| | | | | |
BASIC EARNINGS PER COMMON SHARE | | $ | 0.19 | | $ | 0.12 | |
| | | | | |
DILUTED EARNINGS PER COMMON SHARE | | $ | 0.18 | | $ | 0.12 | |
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
| | Three Months
Ended
March 31, | | Dollar
Change
Three Months
Ended
March 31, | | Percentage
Change
Three Months
Ended
March 31, | |
(Dollars in thousands) | | 2009 | | 2008 | | 2009 vs. 2008 | | 2009 vs. 2008 | |
Operating revenue: | | | | | | | | | |
Truckload revenue, net of fuel surcharge revenue | | $ | 88,535 | | $ | 94,631 | | $ | (6,096 | ) | (6.4 | )% |
Truckload fuel surcharge revenue | | 9,837 | | 26,498 | | (16,661 | ) | (62.9 | ) |
Total Truckload revenue | | 98,372 | | 121,129 | | (22,757 | ) | (18.8 | ) |
| | | | | | | | | |
Logistics revenue, net of intermodal fuel surcharge revenue | | 22,650 | | 20,745 | | 1,905 | | 9.2 | |
Intermodal fuel surcharge revenue | | 933 | | 1,500 | | (567 | ) | (37.8 | ) |
Total Logistics revenue | | 23,583 | | 22,245 | | 1,338 | | 6.0 | |
| | | | | | | | | |
Total operating revenue | | $ | 121,955 | | $ | 143,374 | | $ | (21,419 | ) | (14.9 | )% |
| | | | | | | | | |
Operating income: | | | | | | | | | |
Truckload | | $ | 5,833 | | $ | 3,727 | | $ | 2,106 | | 56.5 | % |
Logistics | | 1,418 | | 1,755 | | (337 | ) | (19.2 | ) |
Total operating income | | $ | 7,251 | | $ | 5,482 | | $ | 1,769 | | 32.3 | % |
| | | | | | | | | |
Operating ratio: | | | | | | | | | |
Truckload | | 94.1 | % | 96.9 | % | | | 2.9 | % |
Logistics | | 94.0 | | 92.1 | | | | (2.1 | ) |
Consolidated operating ratio | | 94.1 | % | 96.2 | % | | | 2.2 | % |
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
| | Three Months
Ended March 31, | |
| | 2009 | | 2008 | |
| | | | | |
Truckload Segment: | | | | | |
Average truckload revenue, net of fuel surcharges, per total mile | | $ | 1.525 | | $ | 1.479 | |
Average miles per tractor(1) | | 24,341 | | 27,082 | |
Average truckload revenue, net of fuel surcharges, per tractor per week(1) | | $ | 2,887 | | $ | 3,081 | |
Average tractors (1) | | 2,385 | | 2,362 | |
Average miles per trip | | 824 | | 892 | |
Non-revenue miles percentage(2) | | 8.8 | % | 8.2 | % |
Total miles — company-employed drivers (in thousands) | | 52,112 | | 54,310 | |
Total miles — independent contractors (in thousands) | | 5,943 | | 9,671 | |
| | | | | |
Logistics Segment: | | | | | |
Brokerage: | | | | | |
Revenue (in thousands) | | $ | 14,454 | | $ | 15,224 | |
Loads | | 7,606 | | 7,613 | |
Intermodal: | | | | | |
Revenue (in thousands) | | $ | 9,129 | | $ | 7,021 | |
Loads | | 3,653 | | 2,153 | |
Average tractors | | 55 | | 40 | |
| | | | | |
At March 31, 2009, and March 31, 2008: | | | | | |
Total tractors(1) | | 2,449 | | 2,420 | |
Average age of company tractors (in years) | | 2.2 | | 2.2 | |
Total trailers | | 4,288 | | 4,032 | |
Average age of company trailers (in years) | | 3.3 | | 2.7 | |
Ratio of trailers to tractors(1) | | 1.8 | | 1.7 | |
Ratio of tractors to non-driver personnel(1) | | 4.4 | | 5.1 | |
| | Three Months
Ended March 31, | |
(In thousands) | | 2009 | | 2008 | |
| | | | | |
Net cash provided by operating activities | | $ | 27,416 | | $ | 14,739 | |
Net cash used for investing activities | | 26,481 | | 867 | |
| | | | | |
Weighted average shares outstanding: | | | | | |
Basic | | 21,839 | | 21,757 | |
Diluted | | 21,960 | | 21,903 | |
| | | | | | | |
(1) | | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 212 and 295 tractors as of March 31, 2009, and 2008, respectively. |
| | |
(2) | | Represents the percentage of miles for which the company is not compensated. |
