Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS;
NET INCOME INCREASES 29.1%
MONDOVI, Wis., July 21, 2009 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) announced today its financial and operating results for the quarter ended June 30, 2009.
For the second quarter of 2009, net income increased 29.1% to $4.5 million, or 20 cents per diluted share, compared with $3.5 million, or 16 cents per diluted share, for the same quarter of 2008. For the six-month period of 2009, net income increased 39.3% to $8.5 million, or 39 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same six-month period of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 21.4% to $125.8 million in the second quarter of 2009 from $160.0 million in the 2008 quarter and decreased 18.3% to $247.8 million in the six-month period of 2009 from $303.4 million in the 2008 six-month period. The decreases were primarily due to fuel surcharge revenue decreasing to $12.6 million in the quarter from $40.1 million in the 2008 quarter and to $23.4 million in the 2009 six-month period from $68.1 million in the 2008 six-month period, caused by significantly lower fuel prices in the 2009 periods. Operating revenue, net of fuel surcharge revenue, decreased 5.6% to $113.2 million in the 2009 quarter from $119.9 million in the 2008 quarter and decreased 4.6% to $224.4 million in the 2009 six-month period from $235.2 million in the 2008 six-month period, due to a decrease in average miles per tractor.
Operating expenses decreased 23.0% to $118.3 million in the second quarter of 2009 from $153.6 million in the 2008 quarter and decreased 20.1% to $233.0 million in the 2009 six-month period from $291.5 million in the 2008 six-month period. The operating expense decreases were primarily due to decreases in fuel and fuel taxes and purchased transportation over both periods. Fuel and fuel taxes decreased 53.1% to $24.3 million in the second quarter of 2009 from $51.8 million in the 2008 quarter and decreased 50.8% to $46.1 million in the 2009 six-month period from $93.7 million in the 2008 six-month period. This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to our continued emphasis on controlling tractor and trailer fuel costs. Purchased transportation decreased 17.1% to $25.9 million in the second quarter of 2009 from $31.3 million in the second quarter of 2008 and decreased 17.9% to $48.7 million in the 2009 six-month period from $59.3 million in the 2008 six-month period, primarily as a result of decreases in miles driven by, and in the amount of fuel surcharges paid to, independent contractors.
Additionally, insurance and claims expense decreased by $2.0 million from the second quarter of 2008, due to reduced physical damage claims related to our tractors and trailers and decreases in the cost of self-insured auto liability and workers’ compensation accident claims.
Consistent with the growth in our net income, our net cash from operating activities increased to $15.1 million for the second quarter of 2009 from $7.0 million in the 2008 quarter and increased to $42.5 million for the 2009 six-month period from $21.7 million in the 2008 six-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, “Despite the ongoing difficult freight environment, our ability to continue to produce positive results was clearly demonstrated in the second quarter. We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls. Most notably, our expansion of regional operations throughout the country, our continued growth of our logistics business, and our fuel efficiency initiatives have helped us improve our results.
“Our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.0% for each of the second quarter and six-month periods of 2009 from 96.0% for the second quarter of 2008 and 96.1% for the 2008 six-month period.
“I want to especially recognize the efforts of all our employees, who remain one of our key strategic strengths. Their smart, hard work and dedication to Marten Transport has continued to show tangible results in our ability to control costs and remain profitable in this difficult economy without reducing our work force or cutting our employees’ pay or benefits. With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, we believe that we are well-positioned for an economic recovery.”
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)
|
| June 30, |
| December 31, |
| ||
(In thousands, except share information) |
| 2009 |
| 2008 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 7,984 |
| $ | 2,395 |
|
Marketable securities |
| 8,710 |
| 2,604 |
| ||
Receivables: |
|
|
|
|
| ||
Trade, net |
| 48,760 |
| 50,143 |
| ||
Other |
| 7,913 |
| 7,385 |
| ||
Prepaid expenses and other |
| 11,248 |
| 13,705 |
| ||
Deferred income taxes |
| 7,300 |
| 6,140 |
| ||
Total current assets |
| 91,915 |
| 82,372 |
| ||
|
|
|
|
|
| ||
Property and equipment: |
|
|
|
|
| ||
Revenue equipment, buildings and land, office equipment and other |
| 465,596 |
| 451,172 |
| ||
Accumulated depreciation |
| (147,925 | ) | (136,871 | ) | ||
Net property and equipment |
| 317,671 |
| 314,301 |
| ||
Other assets |
| 595 |
| 770 |
| ||
TOTAL ASSETS |
| $ | 410,181 |
| $ | 397,443 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Checks issued in excess of cash balances |
| $ | 1,042 |
| $ | 1,807 |
|
Accounts payable and accrued liabilities |
| 32,593 |
| 32,894 |
| ||
Insurance and claims accruals |
| 22,041 |
| 21,386 |
| ||
Current maturities of long-term debt |
| 1,428 |
| 1,428 |
| ||
Total current liabilities |
| 57,104 |
| 57,515 |
| ||
Long-term debt, less current maturities |
| — |
| 1,429 |
| ||
Deferred income taxes |
| 85,987 |
| 81,048 |
| ||
Total liabilities |
| 143,091 |
| 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; 21,885,073 shares at June 30, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding |
| 219 |
| 218 |
| ||
Additional paid-in capital |
| 76,236 |
| 75,305 |
| ||
Retained earnings |
| 188,743 |
| 180,213 |
| ||
Total Marten Transport, Ltd. stockholders’ equity |
| 265,198 |
| 255,736 |
| ||
Noncontrolling interest |
| 1,892 |
| 1,715 |
| ||
Total stockholders’ equity |
| 267,090 |
| 257,451 |
| ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
| $ | 410,181 |
| $ | 397,443 |
|
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) |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OPERATING REVENUE |
| $ | 125,804 |
| $ | 159,994 |
| $ | 247,759 |
| $ | 303,368 |
|
|
|
|
|
|
|
|
|
|
| ||||
OPERATING EXPENSES (INCOME): |
|
|
|
|
|
|
|
|
| ||||
Salaries, wages and benefits |
| 35,759 |
| 37,755 |
| 71,861 |
| 74,437 |
| ||||
Purchased transportation |
| 25,933 |
| 31,285 |
| 48,685 |
| 59,289 |
| ||||
Fuel and fuel taxes |
| 24,272 |
| 51,785 |
| 46,138 |
| 93,714 |
| ||||
Supplies and maintenance |
| 9,558 |
| 9,378 |
| 19,376 |
| 18,710 |
| ||||
Depreciation |
| 13,386 |
| 12,346 |
| 26,819 |
| 24,308 |
| ||||
Operating taxes and licenses |
| 1,702 |
| 1,762 |
| 3,378 |
| 3,474 |
| ||||
Insurance and claims |
| 4,678 |
| 6,653 |
| 10,199 |
| 12,218 |
| ||||
Communications and utilities |
| 1,002 |
| 909 |
| 2,067 |
| 1,870 |
| ||||
Gain on disposition of revenue equipment |
| (528 | ) | (927 | ) | (999 | ) | (1,986 | ) | ||||
Other |
| 2,539 |
| 2,620 |
| 5,481 |
| 5,424 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
| 118,301 |
| 153,566 |
| 233,005 |
| 291,458 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OPERATING INCOME |
| 7,503 |
| 6,428 |
| 14,754 |
| 11,910 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OTHER EXPENSES (INCOME): |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| 34 |
| 302 |
| 98 |
| 836 |
| ||||
Interest income |
| (30 | ) | (37 | ) | (63 | ) | (114 | ) | ||||
|
| 4 |
| 265 |
| 35 |
| 722 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAXES |
| 7,499 |
| 6,163 |
| 14,719 |
| 11,188 |
| ||||
Less: Income before income taxes attributable to noncontrolling interest |
| 145 |
| 225 |
| 261 |
| 605 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. |
| 7,354 |
| 5,938 |
| 14,458 |
| 10,583 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
PROVISION FOR INCOME TAXES |
| 2,877 |
| 2,469 |
| 5,928 |
| 4,461 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
NET INCOME |
| $ | 4,477 |
| $ | 3,469 |
| $ | 8,530 |
| $ | 6,122 |
|
|
|
|
|
|
|
|
|
|
| ||||
BASIC EARNINGS PER COMMON SHARE |
| $ | 0.20 |
| $ | 0.16 |
| $ | 0.39 |
| $ | 0.28 |
|
|
|
|
|
|
|
|
|
|
| ||||
DILUTED EARNINGS PER COMMON SHARE |
| $ | 0.20 |
| $ | 0.16 |
| $ | 0.39 |
| $ | 0.28 |
|
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
| Three Months |
| Dollar |
| Percentage |
| |||||
(Dollars in thousands) |
| 2009 |
| 2008 |
| 2009 vs. 2008 |
| 2009 vs. 2008 |
| |||
Operating revenue: |
|
|
|
|
|
|
|
|
| |||
Truckload revenue, net of fuel surcharge revenue |
| $ | 87,969 |
| $ | 96,506 |
| $ | (8,537 | ) | (8.8 | )% |
Truckload fuel surcharge revenue |
| 11,286 |
| 37,568 |
| (26,282 | ) | (70.0 | ) | |||
Total Truckload revenue |
| 99,255 |
| 134,074 |
| (34,819 | ) | (26.0 | ) | |||
|
|
|
|
|
|
|
|
|
| |||
Logistics revenue, net of intermodal fuel surcharge revenue |
| 25,225 |
| 23,366 |
| 1,859 |
| 8.0 |
| |||
Intermodal fuel surcharge revenue |
| 1,324 |
| 2,554 |
| (1,230 | ) | (48.2 | ) | |||
Total Logistics revenue |
| 26,549 |
| 25,920 |
| 629 |
| 2.4 |
| |||
|
|
|
|
|
|
|
|
|
| |||
Total operating revenue |
| $ | 125,804 |
| $ | 159,994 |
| $ | (34,190 | ) | (21.4 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating income: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| $ | 5,697 |
| $ | 4,634 |
| $ | 1,063 |
| 22.9 | % |
Logistics |
| 1,806 |
| 1,794 |
| 12 |
| 0.7 |
| |||
Total operating income |
| $ | 7,503 |
| $ | 6,428 |
| $ | 1,075 |
| 16.7 | % |
|
|
|
|
|
|
|
|
|
| |||
Operating ratio: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| 94.3 | % | 96.5 | % |
|
| 2.3 | % | |||
Logistics |
| 93.2 |
| 93.1 |
|
|
| (0.1 | ) | |||
Consolidated operating ratio |
| 94.0 | % | 96.0 | % |
|
| 2.1 | % |
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
| Six Months |
| Dollar |
| Percentage |
| |||||
(Dollars in thousands) |
| 2009 |
| 2008 |
| 2009 vs. 2008 |
| 2009 vs. 2008 |
| |||
Operating revenue: |
|
|
|
|
|
|
|
|
| |||
Truckload revenue, net of fuel surcharge revenue |
| $ | 176,504 |
| $ | 191,137 |
| $ | (14,633 | ) | (7.7 | )% |
Truckload fuel surcharge revenue |
| 21,123 |
| 64,066 |
| (42,943 | ) | (67.0 | ) | |||
Total Truckload revenue |
| 197,627 |
| 255,203 |
| (57,576 | ) | (22.6 | ) | |||
|
|
|
|
|
|
|
|
|
| |||
Logistics revenue, net of intermodal fuel surcharge revenue |
| 47,875 |
| 44,111 |
| 3,764 |
| 8.5 |
| |||
Intermodal fuel surcharge revenue |
| 2,257 |
| 4,054 |
| (1,797 | ) | (44.3 | ) | |||
Total Logistics revenue |
| 50,132 |
| 48,165 |
| 1,967 |
| 4.1 |
| |||
|
|
|
|
|
|
|
|
|
| |||
Total operating revenue |
| $ | 247,759 |
| $ | 303,368 |
| $ | (55,609 | ) | (18.3 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating income: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| $ | 11,530 |
| $ | 8,361 |
| $ | 3,169 |
| 37.9 | % |
Logistics |
| 3,224 |
| 3,549 |
| (325 | ) | (9.2 | ) | |||
Total operating income |
| $ | 14,754 |
| $ | 11,910 |
| $ | 2,844 |
| 23.9 | % |
|
|
|
|
|
|
|
|
|
| |||
Operating ratio: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| 94.2 | % | 96.7 | % |
|
| 2.6 | % | |||
Logistics |
| 93.6 |
| 92.6 |
|
|
| (1.1 | ) | |||
Consolidated operating ratio |
| 94.0 | % | 96.1 | % |
|
| 2.2 | % |
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
| Three Months |
| Six Months |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Truckload Segment: |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 99,255 |
| $ | 134,074 |
| $ | 197,627 |
| $ | 255,203 |
|
Average truckload revenue, net of fuel surcharges, per total mile |
| $ | 1.501 |
| $ | 1.497 |
| $ | 1.513 |
| $ | 1.488 |
|
Average miles per tractor(1) |
| 24,581 |
| 27,162 |
| 48,922 |
| 54,245 |
| ||||
Average truckload revenue, net of fuel surcharges, per tractor per week(1) |
| $ | 2,838 |
| $ | 3,128 |
| $ | 2,863 |
| $ | 3,105 |
|
Average tractors (1) |
| 2,384 |
| 2,373 |
| 2,385 |
| 2,368 |
| ||||
Average miles per trip |
| 796 |
| 865 |
| 810 |
| 878 |
| ||||
Non-revenue miles percentage(2) |
| 9.3 | % | 7.7 | % | 9.1 | % | 7.9 | % | ||||
Total miles – company-employed drivers (in thousands) |
| 52,557 |
| 55,587 |
| 104,669 |
| 109,897 |
| ||||
Total miles – independent contractors (in thousands) |
| 6,045 |
| 8,877 |
| 11,988 |
| 18,548 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Logistics Segment: |
|
|
|
|
|
|
|
|
| ||||
Brokerage: |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 15,859 |
| $ | 16,487 |
| $ | 30,313 |
| $ | 31,711 |
|
Loads |
| 9,365 |
| 7,978 |
| 16,971 |
| 15,591 |
| ||||
Intermodal: |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 10,690 |
| $ | 9,433 |
| $ | 19,819 |
| $ | 16,454 |
|
Loads |
| 4,656 |
| 2,773 |
| 8,309 |
| 4,926 |
| ||||
Average tractors |
| 64 |
| 51 |
| 59 |
| 45 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
At June 30, 2009, and June 30, 2008: |
|
|
|
|
|
|
|
|
| ||||
Total tractors(1) |
| 2,492 |
| 2,392 |
|
|
|
|
| ||||
Average age of company tractors (in years) |
| 2.3 |
| 2.3 |
|
|
|
|
| ||||
Total trailers |
| 4,142 |
| 4,086 |
|
|
|
|
| ||||
Average age of company trailers (in years) |
| 3.3 |
| 2.7 |
|
|
|
|
| ||||
Ratio of trailers to tractors(1) |
| 1.7 |
| 1.7 |
|
|
|
|
| ||||
Ratio of tractors to non-driver personnel(1) |
| 4.4 |
| 4.8 |
|
|
|
|
|
|
| Three Months |
| Six Months |
| ||||||||
(In thousands) |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 15,112 |
| $ | 6,979 |
| $ | 42,528 |
| $ | 21,718 |
|
Net cash (used for) provided by investing activities |
| (8,818 | ) | 3,637 |
| (35,299 | ) | 2,770 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 21,871 |
| 21,764 |
| 21,855 |
| 21,760 |
| ||||
Diluted |
| 21,993 |
| 21,918 |
| 21,978 |
| 21,912 |
| ||||
(1) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 221 and 246 tractors as of June 30, 2009, and 2008, respectively. |
|
|
(2) | Represents the percentage of miles for which the company is not compensated. |