Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES FIRST QUARTER RESULTS
MONDOVI, Wis., April 20, 2010 (PRNewswire) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $3.9 million, or 18 cents per diluted share, for the first quarter ended March 31, 2010, compared with $4.1 million, or 18 cents per diluted share, for the same quarter of 2009.
Operating revenue, consisting of revenue from truckload and logistics operations, increased 3.2% to $125.8 million in the first quarter of 2010 from $122.0 million in the 2009 quarter primarily due to increased fuel surcharge revenue, which reflects higher fuel prices in the 2010 quarter, and increases in logistics revenue. Operating revenue, net of fuel surcharges, decreased 2.4% to $108.5 million in the 2010 quarter from $111.2 million in the 2009 quarter. Operating revenue included fuel surcharges of $17.3 million for the first quarter of 2010, compared with $10.8 million in the 2009 quarter.
Operating expenses increased 3.6% to $118.8 million in the first quarter of 2010 from $114.7 million in the 2009 quarter. The operating expense increase was primarily due to increases in fuel and fuel taxes and purchased transportation. Fuel and fuel taxes increased 26.2% to $27.6 million in the first quarter of 2010 from $21.9 million in the 2009 quarter. This increase was primarily attributable to higher fuel prices in the 2010 quarter. Purchased transportation increased 22.0% to $27.8 million in the first quarter of 2010 from $22.8 million in the first quarter of 2009, primarily the result of the increase in Marten’s broker and intermodal business.
The operating ratio (operating expenses as a percentage of operating revenue) increased to 94.4% for the first quarter of 2010 from 94.1% for the first quarter of 2009.
Chairman and Chief Executive Officer Randolph L. Marten said, “Despite turmoil in the economy and the exceptionally difficult freight environment, particularly beginning with the second half of last year, we were able to continue our profitable results through disciplined execution of our transformational business strategy. As the trucking industry begins to experience some slight volume improvements, we believe that we are well-positioned with our ongoing transformation into a multi-faceted business model focused on growth in our regional, intermodal and brokerage business services.
“As evidence of the success of our multi-faceted business model, our logistics revenue, net of intermodal fuel surcharges, grew to $27.6 million in the first quarter of 2010, an increase of 21.7% from $22.7 million for the 2009 quarter. 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.
“We are also pleased to have been again named to the Audit Integrity Top 100 Most Trustworthy Companies as reported by Forbes.com earlier this month. We are one of only eight companies to be named to the list for the third consecutive year. The Audit Integrity Top 100 recognizes US exchange-listed companies with market capitalizations of at least $200 million that display the highest corporate integrity as measured by the Audit Integrity Accounting and Governance Risk
rating — a measure of the transparency and reliability of a company’s financial reporting and governance practices.”
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 the Company is 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 the Company that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. The Company undertakes 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
|
| March 31, |
| December 31, |
| ||
(In thousands, except share information) |
| 2010 |
| 2009 |
| ||
|
| (Unaudited) |
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|
| ||
ASSETS |
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Current assets: |
|
|
|
|
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Cash and cash equivalents |
| $ | 4,347 |
| $ | 5,410 |
|
Marketable securities |
| 118 |
| 118 |
| ||
Receivables: |
|
|
|
|
| ||
Trade, net |
| 48,756 |
| 45,434 |
| ||
Other |
| 3,083 |
| 4,382 |
| ||
Prepaid expenses and other |
| 10,796 |
| 12,328 |
| ||
Deferred income taxes |
| 5,693 |
| 5,172 |
| ||
Total current assets |
| 72,793 |
| 72,844 |
| ||
Property and equipment: |
|
|
|
|
| ||
Revenue equipment, buildings and land, office equipment and other |
| 504,554 |
| 491,127 |
| ||
Accumulated depreciation |
| (144,465 | ) | (149,670 | ) | ||
Net property and equipment |
| 360,089 |
| 341,457 |
| ||
Other assets |
| 526 |
| 537 |
| ||
TOTAL ASSETS |
| $ | 433,408 |
| $ | 414,838 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Checks issued in excess of cash balances |
| $ | 923 |
| $ | 1,671 |
|
Accounts payable and accrued liabilities |
| 40,102 |
| 31,896 |
| ||
Insurance and claims accruals |
| 18,908 |
| 19,222 |
| ||
Current maturities of long-term debt |
| 1,428 |
| 1,428 |
| ||
Total current liabilities |
| 61,361 |
| 54,217 |
| ||
Long-term debt, less current maturities |
| 7,736 |
| 71 |
| ||
Deferred income taxes |
| 84,861 |
| 85,643 |
| ||
Total liabilities |
| 153,958 |
| 139,931 |
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Stockholders’ equity: |
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Marten Transport, Ltd. stockholders’ equity: |
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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; 21,920,575 shares at March 31, 2010, and 21,885,073 shares at December 31, 2009, issued and outstanding |
| 219 |
| 219 |
| ||
Additional paid-in capital |
| 76,987 |
| 76,477 |
| ||
Retained earnings |
| 200,372 |
| 196,480 |
| ||
Total Marten Transport, Ltd. stockholders’ equity |
| 277,578 |
| 273,176 |
| ||
Noncontrolling interest |
| 1,872 |
| 1,731 |
| ||
Total stockholders’ equity |
| 279,450 |
| 274,907 |
| ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
| $ | 433,408 |
| $ | 414,838 |
|
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
| Three Months |
| ||||
|
| Ended March 31, |
| ||||
(In thousands, except per share information) |
| 2010 |
| 2009 |
| ||
|
|
|
|
|
| ||
OPERATING REVENUE |
| $ | 125,812 |
| $ | 121,955 |
|
|
|
|
|
|
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OPERATING EXPENSES (INCOME): |
|
|
|
|
| ||
Salaries, wages and benefits |
| 32,402 |
| 36,102 |
| ||
Purchased transportation |
| 27,759 |
| 22,752 |
| ||
Fuel and fuel taxes |
| 27,593 |
| 21,866 |
| ||
Supplies and maintenance |
| 9,010 |
| 9,818 |
| ||
Depreciation |
| 13,037 |
| 13,433 |
| ||
Operating taxes and licenses |
| 1,505 |
| 1,676 |
| ||
Insurance and claims |
| 3,852 |
| 5,521 |
| ||
Communications and utilities |
| 813 |
| 1,065 |
| ||
Gain on disposition of revenue equipment |
| (199 | ) | (471 | ) | ||
Other |
| 3,006 |
| 2,942 |
| ||
|
|
|
|
|
| ||
Total operating expenses |
| 118,778 |
| 114,704 |
| ||
|
|
|
|
|
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OPERATING INCOME |
| 7,034 |
| 7,251 |
| ||
|
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NET INTEREST (INCOME) EXPENSE |
| (106 | ) | 31 |
| ||
|
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INCOME BEFORE INCOME TAXES |
| 7,140 |
| 7,220 |
| ||
Less: Income before income taxes attributable to noncontrolling interest |
| 56 |
| 116 |
| ||
|
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INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. |
| 7,084 |
| 7,104 |
| ||
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PROVISION FOR INCOME TAXES |
| 3,192 |
| 3,051 |
| ||
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NET INCOME |
| $ | 3,892 |
| $ | 4,053 |
|
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BASIC EARNINGS PER COMMON SHARE |
| $ | 0.18 |
| $ | 0.19 |
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DILUTED EARNINGS PER COMMON SHARE |
| $ | 0.18 |
| $ | 0.18 |
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MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
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| Dollar |
| Percentage |
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| Change |
| Change |
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| Three Months |
| Three Months |
| Three Months |
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| Ended |
| Ended |
| Ended |
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|
| March 31, |
| March 31, |
| March 31, |
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(Dollars in thousands) |
| 2010 |
| 2009 |
| 2010 vs. 2009 |
| 2010 vs. 2009 |
| |||
Operating revenue: |
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Truckload revenue, net of fuel surcharge revenue |
| $ | 80,920 |
| $ | 88,535 |
| $ | (7,615 | ) | (8.6 | )% |
Truckload fuel surcharge revenue |
| 15,306 |
| 9,837 |
| 5,469 |
| 55.6 |
| |||
Total Truckload revenue |
| 96,226 |
| 98,372 |
| (2,146 | ) | (2.2 | ) | |||
|
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|
|
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Logistics revenue, net of intermodal fuel surcharge revenue |
| 27,570 |
| 22,650 |
| 4,920 |
| 21.7 |
| |||
Intermodal fuel surcharge revenue |
| 2,016 |
| 933 |
| 1,083 |
| 116.1 |
| |||
Total Logistics revenue |
| 29,586 |
| 23,583 |
| 6,003 |
| 25.5 |
| |||
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Total operating revenue |
| $ | 125,812 |
| $ | 121,955 |
| $ | 3,857 |
| 3.2 | % |
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Operating income: |
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Truckload |
| $ | 5,225 |
| $ | 5,833 |
| $ | (608 | ) | (10.4 | )% |
Logistics |
| 1,809 |
| 1,418 |
| 391 |
| 27.6 |
| |||
Total operating income |
| $ | 7,034 |
| $ | 7,251 |
| $ | (217 | ) | (3.0 | )% |
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Operating ratio: |
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Truckload |
| 94.6 | % | 94.1 | % |
|
| 0.5 | % | |||
Logistics |
| 93.9 |
| 94.0 |
|
|
| (0.1 | ) | |||
Consolidated operating ratio |
| 94.4 | % | 94.1 | % |
|
| 0.3 | % | |||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
| Three Months |
| ||||
|
| Ended March 31, |
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|
| 2010 |
| 2009 |
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Truckload Segment: |
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Revenue (in thousands) |
| $ | 96,226 |
| $ | 98,372 |
|
Average truckload revenue, net of fuel surcharges, per tractor per week(1) |
| $ | 2,816 |
| $ | 2,887 |
|
Average tractors(1) |
| 2,235 |
| 2,385 |
| ||
Average miles per trip |
| 689 |
| 824 |
| ||
Non-revenue miles percentage(2) |
| 9.2 | % | 8.8 | % | ||
Total miles — company-employed drivers (in thousands) |
| 48,944 |
| 52,112 |
| ||
Total miles — independent contractors (in thousands) |
| 4,500 |
| 5,943 |
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Logistics Segment: |
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Brokerage: |
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Marten Transport |
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Revenue (in thousands) |
| $ | 10,393 |
| $ | 7,249 |
|
Loads |
| 5,602 |
| 3,854 |
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MWL |
|
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Revenue (in thousands) |
| $ | 8,168 |
| $ | 7,205 |
|
Loads |
| 4,279 |
| 3,752 |
| ||
Intermodal: |
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|
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Revenue (in thousands) |
| $ | 11,025 |
| $ | 9,129 |
|
Loads |
| 4,677 |
| 3,653 |
| ||
Average tractors |
| 62 |
| 55 |
| ||
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At March 31, 2010 and March 31, 2009: |
|
|
|
|
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Total tractors(1) |
| 2,208 |
| 2,449 |
| ||
Average age of company tractors (in years) |
| 2.3 |
| 2.2 |
| ||
Total trailers |
| 3,946 |
| 4,288 |
| ||
Average age of company trailers (in years) |
| 3.4 |
| 3.3 |
| ||
Ratio of trailers to tractors(1) |
| 1.8 |
| 1.8 |
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|
| Three Months |
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|
| Ended March 31, |
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(In thousands) |
| 2010 |
| 2009 |
| ||
|
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Net cash provided by operating activities |
| $ | 18,677 |
| $ | 27,350 |
|
Net cash used for investing activities |
| 27,066 |
| 26,481 |
| ||
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Weighted average shares outstanding: |
|
|
|
|
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Basic |
| 21,897 |
| 21,839 |
| ||
Diluted |
| 21,997 |
| 21,960 |
| ||
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 147 and 212 tractors as of March 31, 2010, and 2009, respectively.
(2) Represents the percentage of miles for which the company is not compensated.