Marten Transport (MRTN) 8-K Marten Transport Announces Second Quarter Results

Exhibit 99.1

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS

Net income improves 22.4% in the ninth consecutive quarter of year-over-year profit growth

Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 22.4% increase in net income to $7.6 million, or 34 cents per diluted share, for the second quarter ended June 30, 2012, from $6.2 million, or 28 cents per diluted share, for the second quarter of 2011.  For the 2012 six-month period, net income increased 26.6% to $13.0 million, or 59 cents per diluted share, from $10.3 million, or 47 cents per diluted share, in the 2011 six-month period.

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $157.0 million in the second quarter of 2012 from $151.1 million in the second quarter of 2011, and increased to $308.4 million in the 2012 six-month period from $289.0 million in the 2011 six-month period. Operating revenue, net of fuel surcharges, increased 4.4% to $127.2 million in the 2012 quarter from $121.8 million in the 2011 quarter, and increased 6.6% to $249.8 million in the 2012 six-month period from $234.3 million in the 2011 six-month period.  Fuel surcharge revenue increased to $29.8 million for the second quarter of 2012 from $29.3 million in the 2011 quarter, and increased to $58.6 million for the 2012 six-month period from $54.7 million for the 2011 six-month period.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 89.6% for the second quarter of 2012 from 90.7% for the second quarter of 2011, and improved to 90.9% for the 2012 six-month period from 91.9% for the 2011 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased that the efficiencies of our regional operations continue to drive growth in our net income and improvement in our operating ratio.  We have increased our regional operations to 69.0% of our truckload fleet as of June 30, 2012, from 60.7% as of a year earlier – an increase reflected in a 5.4% improvement over last year’s second quarter in our average truckload revenue, net of fuel surcharges, per tractor per week.  Our focus on developing a multi-faceted business model with a diverse customer base has expanded our regional operations as well as our logistics business.  Our logistics revenue, net of fuel surcharge revenue, grew 6.0% in the 2012 six-month period over the same period in 2011.  These strategies helped us to achieve our ninth consecutive year-over-year increase in quarterly profitability, as well as our best operating ratio net of fuel surcharge revenue since the second quarter of 2006.”

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. 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, 2011. 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

 (Unaudited)

(In thousands, except share information)	June 30, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	5,249		$	20,821
Receivables:
Trade, net		64,114			59,385
Other		5,399			3,430
Prepaid expenses and other		14,033			15,426
Deferred income taxes		2,508			2,738
Total current assets		91,303			101,800
Property and equipment:
Revenue equipment, buildings and land, office equipment and other		547,812			523,974
Accumulated depreciation		(145,245	)		(155,774	)
Net property and equipment		402,567			368,200
Other assets		597			579
TOTAL ASSETS	$	494,467		$	470,579
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	41,463		$	33,343
Insurance and claims accruals		12,414			13,042
Total current liabilities		53,877			46,385
Deferred income taxes		106,216			103,835
Total liabilities		160,093			150,220
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; 22,071,249 shares at June 30, 2012, and 21,984,597 shares at December 31, 2011, issued and outstanding		221			220
Additional paid-in capital		81,834			80,078
Retained earnings		249,909			237,872
Total Marten Transport, Ltd. stockholders’ equity		331,964			318,170
Noncontrolling interest		2,410			2,189
Total stockholders’ equity		334,374			320,359
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	494,467		$	470,579

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share information)	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
OPERATING REVENUE	$	156,964		$	151,135		$	308,438		$	288,991
									��
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits		39,398			36,413			77,669			70,512
Purchased transportation		29,734			29,991			59,593			58,008
Fuel and fuel taxes		39,515			39,915			78,639			75,255
Supplies and maintenance		9,841			9,774			19,377			19,436
Depreciation		15,042			14,084			29,577			27,600
Operating taxes and licenses		1,617			1,516			3,199			2,933
Insurance and claims		5,185			4,412			11,007			8,713
Communications and utilities		1,161			1,106			2,372			2,228
Gain on disposition of revenue equipment		(1,179	)		(967	)		(2,704	)		(1,735	)
Other		3,367			3,532			6,907			7,073
Total operating expenses		143,681			139,776			285,636			270,023
OPERATING INCOME		13,283			11,359			22,802			18,968
NET INTEREST (INCOME) EXPENSE		(13	)		(7	)		(34	)		12
INCOME BEFORE INCOME TAXES		13,296			11,366			22,836			18,956
Less: Income before income taxes attributable to noncontrolling interest		245			253			406			390
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.		13,051			11,113			22,430			18,566
PROVISION FOR INCOME TAXES		5,467			4,919			9,400			8,277
NET INCOME	$	7,584		$	6,194		$	13,030		$	10,289
BASIC EARNINGS PER COMMON SHARE	$	0.34		$	0.28		$	0.59		$	0.47
DILUTED EARNINGS PER COMMON SHARE	$	0.34		$	0.28		$	0.59		$	0.47
DIVIDENDS PAID PER COMMON SHARE	$	0.025		$	0.02		$	0.045		$	0.04

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

	Three Months Ended June 30,						Dollar Change Three Months Ended June 30,			Percentage Change Three Months Ended June 30,
(Dollars in thousands)	2012			2011			2012 vs. 2011			2012 vs. 2011
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	94,148		$	89,637		$	4,511			5.0	%
Truckload fuel surcharge revenue		26,121			25,526			595			2.3
Total Truckload revenue		120,269			115,163			5,106			4.4
Logistics revenue, net of intermodal fuel surcharge revenue		33,045			32,203			842			2.6
Intermodal fuel surcharge revenue		3,650			3,769			(119	)		(3.2	)
Total Logistics revenue		36,695			35,972			723			2.0
Total operating revenue	$	156,964		$	151,135		$	5,829			3.9	%
Operating income:
Truckload	$	10,973		$	9,602		$	1,371			14.3	%
Logistics		2,310			1,757			553			31.5
Total operating income	$	13,283		$	11,359		$	1,924			16.9	%
Operating ratio:
Truckload		90.9	%		91.7	%					(0.9	)%
Logistics		93.7			95.1						(1.5	)
Consolidated operating ratio		91.5	%		92.5	%					(1.1	)%

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

	Six Months Ended June 30,						Dollar Change Six Months Ended June 30,		Percentage Change Six Months Ended June 30,
(Dollars in thousands)	2012			2011			2012 vs. 2011		2012 vs. 2011
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	183,346		$	171,610		$	11,736		6.8	%
Truckload fuel surcharge revenue		51,374			47,614			3,760		7.9
Total Truckload revenue		234,720			219,224			15,496		7.1
Logistics revenue, net of intermodal fuel surcharge revenue		66,481			62,721			3,760		6.0
Intermodal fuel surcharge revenue		7,237			7,046			191		2.7
Total Logistics revenue		73,718			69,767			3,951		5.7
Total operating revenue	$	308,438		$	288,991		$	19,447		6.7	%
Operating income:
Truckload	$	18,101		$	14,923		$	3,178		21.3	%
Logistics		4,701			4,045			656		16.2
Total operating income	$	22,802		$	18,968		$	3,834		20.2	%
Operating ratio:
Truckload		92.3	%		93.2	%				(1.0	)%
Logistics		93.6			94.2					(0.6	)
Consolidated operating ratio		92.6	%		93.4	%				(0.9	)%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Truckload Segment:
Total Truckload revenue (in thousands)	$	120,269		$	115,163		$	234,720		$	219,224
Average truckload revenue, net of fuel surcharges, per tractor per week(1)	$	3,371		$	3,198		$	3,284		$	3,129
Average tractors(1)		2,149			2,156			2,148			2,121
Average miles per trip		625			635			621			636
Non-revenue miles percentage(2)		11.3	%		10.8	%		11.2	%		10.5	%
Total miles – company-employed drivers (in thousands)		53,516			49,979			104,797			98,650
Total miles – independent contractors (in thousands)		1,355			1,944			2,619			4,075
Logistics Segment:
Total Logistics revenue (in thousands)	$	36,695		$	35,972		$	73,718		$	69,767
Brokerage:
Marten Transport
Revenue (in thousands)	$	12,958		$	11,834		$	26,664		$	23,679
Loads		7,872			5,988			15,958			12,149
MWL
Revenue (in thousands)	$	8,085		$	8,472		$	16,330		$	16,239
Loads		4,537			4,673			8,219			8,507
Intermodal:
Revenue (in thousands)	$	15,652		$	15,666		$	30,724		$	29,849
Loads		6,043			5,927			11,885			11,556
Average tractors		54			73			55			71
At June 30, 2012 and June 30, 2011:
Total tractors(1)		2,201			2,257
Average age of company tractors (in years)		2.0			2.5
Total trailers		4,155			4,026
Average age of company trailers (in years)		2.2			2.7
Ratio of trailers to tractors(1)		1.9			1.8

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2012		2011		2012		2011
Net cash provided by operating activities	$	20,233	$	14,465	$	40,012	$	42,456
Net cash used for investing activities		40,131		7,012		55,304		11,879
Weighted average shares outstanding:
Basic		22,066		21,984		22,050		21,974
Diluted		22,166		22,085		22,154		22,078

(1)     (2)  Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 51 and 71 tractors as of June 30, 2012, and 2011, respectively.   Represents the percentage of miles for which the company is not compensated.