Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES THIRD QUARTER RESULTS
MONDOVI, Wis., October 20, 2009 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) announced today its financial and operating results for the quarter ended September 30, 2009.
For the third quarter of 2009, our net income was $3.5 million, or 16 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same quarter of 2008. For the nine-month period of 2009, net income was $12.0 million, or 55 cents per diluted share, compared with $12.2 million, or 56 cents per diluted share, for the same nine-month period of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 20.8% to $129.4 million in the third quarter of 2009 from $163.4 million in the 2008 quarter and decreased 19.2% to $377.2 million in the nine-month period of 2009 from $466.7 million in the 2008 nine-month period. The decreases were primarily due to fuel surcharge revenue decreasing to $15.7 million in the quarter from $41.3 million in the 2008 quarter and to $39.1 million in the 2009 nine-month period from $109.4 million in the 2008 nine-month period, caused by significantly lower fuel prices in the 2009 periods. Our operating revenue was negatively impacted by the harsh operating environment with reduced freight volumes, excess capacity furthered by lenders’ and lessors’ unwillingness to liquidate insolvent carriers, and an unprecedented increase in shipper bid packages resulting in a non-sustainable rate environment. Operating revenue, net of fuel surcharge revenue, decreased 6.9% to $113.7 million in the 2009 quarter from $122.1 million in the 2008 quarter and decreased 5.4% to $338.1 million in the 2009 nine-month period from $357.3 million in the 2008 nine-month period, primarily due to a decrease in average miles per tractor.
Operating expenses decreased 19.6% to $122.9 million in the third quarter of 2009 from $152.8 million in the 2008 quarter and decreased 19.9% to $355.9 million in the 2009 nine-month period from $444.3 million in the 2008 nine-month period. The operating expense decreases were primarily due to decreases in fuel and fuel taxes over both periods. Fuel and fuel taxes decreased 48.1% to $26.6 million in the third quarter of 2009 from $51.2 million in the 2008 quarter and decreased 49.8% to $72.7 million in the 2009 nine-month period from $144.9 million in the 2008 nine-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.
Our operating ratio (operating expenses as a percentage of operating revenue) was 94.9% for the third quarter of 2009 compared with 93.6% for the same quarter in 2008 and improved to 94.4% for the nine-month period of 2009 from 95.2% for the 2008 nine-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, “With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, from management to the hard-working drivers and other employees, we are confident that we are well-positioned for growth. We continue to expand our logistics, regional and Mexican operations while focusing on superior customer service, profitable freight selection
and aggressive cost controls. We believe that many of the benefits of our strategic initiatives and cost controls have not yet been fully realized.
“Our logistics business continued to expand at a solid pace. Logistics revenue, net of intermodal fuel surcharges, grew to $27.4 million in the third quarter, an increase of 16.6% over the 2008 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 11.3% to $75.2 million, compared to $67.6 million in 2008. Logistics revenue consists of revenue from our internal brokerage and intermodal operations and revenue associated with our 45% interest in MW Logistics, LLC, a third-party provider of logistics services.
“Finally, we are pleased to be named to the Forbes.com list of America’s 200 Best Small Companies for the fourth time in the last five years.”
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 growth. 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)
|
| September 30, |
| December 31, |
| ||
(In thousands, except share information) |
| 2009 |
| 2008 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 7,891 |
| $ | 2,395 |
|
Marketable securities |
| 4,750 |
| 2,604 |
| ||
Receivables: |
|
|
|
|
| ||
Trade, net |
| 49,879 |
| 50,143 |
| ||
Other |
| 6,612 |
| 7,385 |
| ||
Prepaid expenses and other |
| 10,534 |
| 13,705 |
| ||
Deferred income taxes |
| 6,593 |
| 6,140 |
| ||
Total current assets |
| 86,259 |
| 82,372 |
| ||
|
|
|
|
|
| ||
Property and equipment: |
|
|
|
|
| ||
Revenue equipment, buildings and land, office equipment and other |
| 482,581 |
| 451,172 |
| ||
Accumulated depreciation |
| (150,084 | ) | (136,871 | ) | ||
Net property and equipment |
| 332,497 |
| 314,301 |
| ||
Other assets |
| 559 |
| 770 |
| ||
TOTAL ASSETS |
| $ | 419,315 |
| $ | 397,443 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Checks issued in excess of cash balances |
| $ | 1,241 |
| $ | 1,807 |
|
Accounts payable and accrued liabilities |
| 38,235 |
| 32,894 |
| ||
Insurance and claims accruals |
| 20,679 |
| 21,386 |
| ||
Current maturities of long-term debt |
| 1,428 |
| 1,428 |
| ||
Total current liabilities |
| 61,583 |
| 57,515 |
| ||
Long-term debt, less current maturities |
| — |
| 1,429 |
| ||
Deferred income taxes |
| 87,039 |
| 81,048 |
| ||
Total liabilities |
| 148,622 |
| 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 September 30, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding |
| 219 |
| 218 |
| ||
Additional paid-in capital |
| 76,351 |
| 75,305 |
| ||
Retained earnings |
| 192,215 |
| 180,213 |
| ||
Total Marten Transport, Ltd. stockholders’ equity |
| 268,785 |
| 255,736 |
| ||
Noncontrolling interest |
| 1,908 |
| 1,715 |
| ||
Total stockholders’ equity |
| 270,693 |
| 257,451 |
| ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
| $ | 419,315 |
| $ | 397,443 |
|
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
| Three Months |
| Nine Months |
| ||||||||
|
| Ended September 30, |
| Ended September 30, |
| ||||||||
(In thousands, except per share information) |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OPERATING REVENUE |
| $ | 129,395 |
| $ | 163,377 |
| $ | 377,154 |
| $ | 466,745 |
|
|
|
|
|
|
|
|
|
|
| ||||
OPERATING EXPENSES (INCOME): |
|
|
|
|
|
|
|
|
| ||||
Salaries, wages and benefits |
| 34,257 |
| 39,885 |
| 106,118 |
| 114,322 |
| ||||
Purchased transportation |
| 29,192 |
| 29,125 |
| 77,877 |
| 88,414 |
| ||||
Fuel and fuel taxes |
| 26,580 |
| 51,215 |
| 72,718 |
| 144,929 |
| ||||
Supplies and maintenance |
| 9,630 |
| 9,588 |
| 29,006 |
| 28,298 |
| ||||
Depreciation |
| 13,272 |
| 12,396 |
| 40,091 |
| 36,704 |
| ||||
Operating taxes and licenses |
| 1,591 |
| 1,588 |
| 4,969 |
| 5,062 |
| ||||
Insurance and claims |
| 5,356 |
| 5,770 |
| 15,555 |
| 17,988 |
| ||||
Communications and utilities |
| 1,011 |
| 837 |
| 3,078 |
| 2,707 |
| ||||
Gain on disposition of revenue equipment |
| (596 | ) | (453 | ) | (1,595 | ) | (2,439 | ) | ||||
Other |
| 2,566 |
| 2,898 |
| 8,047 |
| 8,322 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
| 122,859 |
| 152,849 |
| 355,864 |
| 444,307 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OPERATING INCOME |
| 6,536 |
| 10,528 |
| 21,290 |
| 22,438 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OTHER EXPENSES (INCOME): |
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| 35 |
| 196 |
| 133 |
| 1,032 |
| ||||
Interest income |
| (51 | ) | (38 | ) | (114 | ) | (152 | ) | ||||
|
| (16 | ) | 158 |
| 19 |
| 880 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAXES |
| 6,552 |
| 10,370 |
| 21,271 |
| 21,558 |
| ||||
Less: Income before income taxes attributable to noncontrolling interest |
| 93 |
| 317 |
| 354 |
| 922 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. |
| 6,459 |
| 10,053 |
| 20,917 |
| 20,636 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
PROVISION FOR INCOME TAXES |
| 2,987 |
| 3,926 |
| 8,915 |
| 8,387 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
NET INCOME |
| $ | 3,472 |
| $ | 6,127 |
| $ | 12,002 |
| $ | 12,249 |
|
|
|
|
|
|
|
|
|
|
| ||||
BASIC EARNINGS PER COMMON SHARE |
| $ | 0.16 |
| $ | 0.28 |
| $ | 0.55 |
| $ | 0.56 |
|
|
|
|
|
|
|
|
|
|
| ||||
DILUTED EARNINGS PER COMMON SHARE |
| $ | 0.16 |
| $ | 0.28 |
| $ | 0.55 |
| $ | 0.56 |
|
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 |
| $ | 86,324 |
| $ | 98,600 |
| $ | (12,276 | ) | (12.5 | )% |
Truckload fuel surcharge revenue |
| 13,942 |
| 38,442 |
| (24,500 | ) | (63.7 | ) | |||
Total Truckload revenue |
| 100,266 |
| 137,042 |
| (36,776 | ) | (26.8 | ) | |||
|
|
|
|
|
|
|
|
|
| |||
Logistics revenue, net of intermodal fuel surcharge revenue |
| 27,362 |
| 23,472 |
| 3,890 |
| 16.6 |
| |||
Intermodal fuel surcharge revenue |
| 1,767 |
| 2,863 |
| (1,096 | ) | (38.3 | ) | |||
Total Logistics revenue |
| 29,129 |
| 26,335 |
| 2,794 |
| 10.6 |
| |||
|
|
|
|
|
|
|
|
|
| |||
Total operating revenue |
| $ | 129,395 |
| $ | 163,377 |
| $ | (33,982 | ) | (20.8 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating income: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| $ | 5,047 |
| $ | 8,619 |
| $ | (3,572 | ) | (41.4 | )% |
Logistics |
| 1,489 |
| 1,909 |
| (420 | ) | (22.0 | ) | |||
Total operating income |
| $ | 6,536 |
| $ | 10,528 |
| $ | (3,992 | ) | (37.9 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating ratio: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| 95.0 | % | 93.7 | % |
|
| (1.4 | )% | |||
Logistics |
| 94.9 |
| 92.8 |
|
|
| (2.3 | ) | |||
Consolidated operating ratio |
| 94.9 | % | 93.6 | % |
|
| (1.4 | )% | |||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
| Nine Months |
| Dollar |
| Percentage |
| |||||
(Dollars in thousands) |
| 2009 |
| 2008 |
| 2009 vs. 2008 |
| 2009 vs. 2008 |
| |||
Operating revenue: |
|
|
|
|
|
|
|
|
| |||
Truckload revenue, net of fuel surcharge revenue |
| $ | 262,828 |
| $ | 289,737 |
| $ | (26,909 | ) | (9.3 | )% |
Truckload fuel surcharge revenue |
| 35,065 |
| 102,508 |
| (67,443 | ) | (65.8 | ) | |||
Total Truckload revenue |
| 297,893 |
| 392,245 |
| (94,352 | ) | (24.1 | ) | |||
|
|
|
|
|
|
|
|
|
| |||
Logistics revenue, net of intermodal fuel surcharge revenue |
| 75,237 |
| 67,583 |
| 7,654 |
| 11.3 |
| |||
Intermodal fuel surcharge revenue |
| 4,024 |
| 6,917 |
| (2,893 | ) | (41.8 | ) | |||
Total Logistics revenue |
| 79,261 |
| 74,500 |
| 4,761 |
| 6.4 |
| |||
|
|
|
|
|
|
|
|
|
| |||
Total operating revenue |
| $ | 377,154 |
| $ | 466,745 |
| $ | (89,591 | ) | (19.2 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating income: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| $ | 16,577 |
| $ | 16,980 |
| $ | (403 | ) | (2.4 | )% |
Logistics |
| 4,713 |
| 5,458 |
| (745 | ) | (13.6 | ) | |||
Total operating income |
| $ | 21,290 |
| $ | 22,438 |
| $ | (1,148 | ) | (5.1 | )% |
|
|
|
|
|
|
|
|
|
| |||
Operating ratio: |
|
|
|
|
|
|
|
|
| |||
Truckload |
| 94.4 | % | 95.7 | % |
|
| 1.4 | % | |||
Logistics |
| 94.1 |
| 92.7 |
|
|
| (1.5 | ) | |||
Consolidated operating ratio |
| 94.4 | % | 95.2 | % |
|
| 0.8 | % | |||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
| Three Months |
| Nine Months |
| ||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Truckload Segment: |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 100,266 |
| $ | 137,042 |
| $ | 297,893 |
| $ | 392,245 |
|
Average truckload revenue, net of fuel surcharges, per total mile |
| $ | 1.490 |
| $ | 1.531 |
| $ | 1.505 |
| $ | 1.502 |
|
Average miles per tractor(1) |
| 24,039 |
| 27,736 |
| 72,955 |
| 81,977 |
| ||||
Average truckload revenue, net of fuel surcharges, per tractor per week(1) |
| $ | 2,725 |
| $ | 3,231 |
| $ | 2,816 |
| $ | 3,146 |
|
Average tractors (1) |
| 2,410 |
| 2,322 |
| 2,393 |
| 2,353 |
| ||||
Average miles per trip |
| 728 |
| 835 |
| 781 |
| 863 |
| ||||
Non-revenue miles percentage(2) |
| 9.7 | % | 8.0 | % | 9.3 | % | 8.0 | % | ||||
Total miles – company-employed drivers (in thousands) |
| 51,818 |
| 56,897 |
| 156,487 |
| 166,794 |
| ||||
Total miles – independent contractors (in thousands) |
| 6,120 |
| 7,510 |
| 18,108 |
| 26,058 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Logistics Segment: |
|
|
|
|
|
|
|
|
| ||||
Brokerage: |
|
|
|
|
|
|
|
|
| ||||
Marten Transport |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 9,796 |
| $ | 6,751 |
| $ | 25,117 |
| $ | 18,365 |
|
Loads |
| 5,416 |
| 3,027 |
| 13,568 |
| 8,475 |
| ||||
MWL |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 8,371 |
| $ | 9,151 |
| $ | 23,363 |
| $ | 29,248 |
|
Loads |
| 4,775 |
| 4,458 |
| 13,594 |
| 14,601 |
| ||||
Intermodal: |
|
|
|
|
|
|
|
|
| ||||
Revenue (in thousands) |
| $ | 10,962 |
| $ | 10,433 |
| $ | 30,781 |
| $ | 26,887 |
|
Loads |
| 4,929 |
| 3,237 |
| 13,238 |
| 8,163 |
| ||||
Average tractors |
| 65 |
| 61 |
| 61 |
| 51 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
At September 30, 2009, and September 30, 2008: |
|
|
|
|
|
|
|
|
| ||||
Total tractors(1) |
| 2,459 |
| 2,377 |
|
|
|
|
| ||||
Average age of company tractors (in years) |
| 2.3 |
| 2.2 |
|
|
|
|
| ||||
Total trailers |
| 4,055 |
| 4,249 |
|
|
|
|
| ||||
Average age of company trailers (in years) |
| 3.3 |
| 2.9 |
|
|
|
|
| ||||
Ratio of trailers to tractors(1) |
| 1.6 |
| 1.8 |
|
|
|
|
| ||||
Ratio of tractors to non-driver personnel(1) |
| 4.3 |
| 4.7 |
|
|
|
|
| ||||
|
|
|
|
|
| ||||||||
|
| Three Months |
| Nine Months |
| ||||||||
(In thousands) |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 20,679 |
| $ | 28,516 |
| $ | 63,207 |
| $ | 50,234 |
|
Net cash used for investing activities |
| 20,810 |
| 17,678 |
| 56,109 |
| 14,908 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 21,885 |
| 21,798 |
| 21,865 |
| 21,773 |
| ||||
Diluted |
| 21,988 |
| 21,952 |
| 21,982 |
| 21,926 |
| ||||
(1) |
| Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 205 and 209 tractors as of September 30, 2009, and 2008, respectively. |
|
|
|
(2) |
| Represents the percentage of miles for which the company is not compensated. |