Exhibit 99.1
MARTEN TRANSPORT, LTD. ANNOUNCES
THIRD QUARTER FINANCIAL RESULTS
MONDOVI, Wis., October 17, 2003/PR Newswire/ - Marten Transport, Ltd.
(Nasdaq/NMS:MRTN) announced today its financial results for the quarter and nine
months ended September 30, 2003.
For the quarter ended September 30, 2003, operating revenue increased 14.9%, to
$85.9 million from $74.7 million for the same quarter of 2002. For the nine
months ended September 30, 2003, operating revenue increased 15.1%, to $249.4
million from $216.8 million for the same period of 2002. Operating revenue
included fuel surcharges of $3.1 million and $11.0 million for the quarter and
nine months ended September 30, 2003, compared with $1.5 million and $2.9
million for the quarter and nine months ended September 30, 2002. Excluding fuel
surcharge revenue, the increase in revenue was 13.1% for the quarter and 11.5%
for the nine months. The Company measures revenue, before fuel surcharges, or
"freight revenue," in addition to operating revenue, because management believes
removing this sometimes volatile source of revenue affords a more consistent
basis for comparing results of operations from period to period.
For the quarter ended September 30, 2003, net income increased 84.3%, to $3.4
million from $1.9 million for the same quarter of 2002. For the nine months
ended September 30, 2003, net income increased 55.2%, to $8.4 million from $5.4
million for the same period of 2002.
For the quarter ended September 30, 2003, net income per diluted share increased
53.6%, to $0.43 from $0.28 for the same quarter of 2002, on a 22.1% increase in
weighted average shares attributable primarily to the Company's public offering
of common stock completed during the 2003 third quarter. For the nine months
ended September 30, 2003, net income per diluted share increased 42.2%, to $1.18
from $0.83 for the same period of 2002, on a 8.9% increase in weighted average
shares attributable primarily to the stock offering. Diluted earnings per share
give retroactive effect in all periods to the Company's three-for-two stock
split effected in the form of a 50% stock dividend paid on July 24, 2003.
Chairman and President Randolph L. Marten stated, "The third quarter was very
strong for our Company. Our financial results improved as a result of stronger
shipping demand, disciplined freight selection by our operations personnel, and
continued cost control efforts. Average operating revenue per tractor per week
increased 6.6% to $2,993 from $2,809 in the third quarter of 2002. Average
freight revenue per tractor per week increased 4.8% to $2,886 from $2,753 in the
third quarter of 2002. Our operating ratio (operating expenses as a percentage
of operating revenue) improved to 93.1% for the quarter compared with 95.3% for
the same quarter last year. Excluding fuel surcharges from both revenue and fuel
expense, our operating ratio would have been 92.9 % in the 2003 quarter and
95.2% in the 2002 quarter.
Our balance sheet improved as well. During the quarter we completed a stock
offering that resulted in net proceeds to the Company of approximately $52.1
million and raised our stockholders' equity to $140.4 million. At the end of the
quarter we had approximately $31
million of cash and $31 million of long-term debt, making our balance sheet
essentially debt-free on a net basis."
The Company will host a conference call on Monday, October 20, at 3:30 p.m.
Central Time. The public will be able to listen and participate in the call
telephonically by dialing 877-576-2752 and entering the following code: 3442884.
For additional information on accessing the call and for statistical and
financial information regarding the Company that is expected to be discussed
during the conference call, please visit our website at www.marten.com.
Marten Transport, Ltd. is one of the leading temperature-sensitive truckload
carriers in the United States. The Company specializes in transporting food and
other consumer packaged goods that require a temperature-sensitive or insulated
environment. Marten offers nationwide service, concentrating on expedited
movements for high-volume customers. The Company's common stock is traded on the
Nasdaq National Market under the symbol MRTN.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements that constitute
forward-looking statements are usually identified by words such as
"anticipates," "believes," "estimates," "projects," "expects," or similar
expressions. Such statements are based upon the current beliefs and expectations
of the Company's management and are subject to significant assumptions, risks,
and uncertainties. The following factors, among others, could cause actual
results to differ materially from those in forward-looking statements: excess
tractor and trailer capacity in the trucking industry; surplus inventories;
recessionary economic cycles and downturns in customers' business cycles; a
decrease in shipping activity with the Company by one or more major customers;
increases or rapid fluctuations in fuel prices, interest rates, fuel taxes,
tolls, and license and registration fees; volatility in the resale value of the
Company's used equipment and the price of new equipment; increases in
compensation for and difficulty in attracting and retaining qualified drivers
and independent contractors; the frequency and severity of accidents; increases
in insurance premiums and deductible amounts relating to accident, cargo,
workers' compensation, health, and other claims; seasonal factors such as harsh
weather conditions that increase operating costs; competition from trucking,
rail, and intermodal competitors; and regulatory requirements that increase
costs or decrease efficiency, including, but not limited to, the effects of
revised hours-of-service requirements for drivers effective January 4, 2004.
Readers should review and consider the various disclosures made by the Company
in its press releases, stockholder reports, and public filings, as well as the
factors explained in greater detail in the Company's prospectus dated August 14,
2003 related to its public offering of common stock.
CONTACT: Tom Langenfeld of BlueFire Partners for Marten Transport, Ltd.,
612-344-1038, or Randy Marten, President of Marten Transport, Ltd., 715-926-4216
MARTEN TRANSPORT, LTD.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------ -------------------------
2003 2002 2003 2002
---------- ------------ ----------- -----------
(In thousands, except per share information)
OPERATING REVENUE.................................... $ 85,903 $ 74,736 $ 249,430 $ 216,765
---------- ------------ ------------ -----------
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits..................... 26,225 22,192 75,183 66,862
Purchased transportation......................... 18,106 17,815 53,923 50,063
Fuel and fuel taxes.............................. 14,253 11,202 41,972 31,039
Supplies and maintenance......................... 6,503 5,538 18,592 16,046
Depreciation..................................... 7,616 6,988 22,340 20,646
Operating taxes and licenses..................... 1,406 1,264 4,177 3,680
Insurance and claims............................. 3,782 3,796 11,200 10,583
Communications and utilities..................... 825 758 2,419 2,220
Gain on disposition of revenue equipment......... (154) (40) (310) (113)
Other............................................ 1,450 1,743 5,344 5,254
---------- ------------ ------------ -----------
Total operating expenses.................... 80,012 71,256 234,840 206,280
---------- ------------ ------------ -----------
OPERATING INCOME..................................... 5,891 3,480 14,590 10,485
OTHER EXPENSES (INCOME):
Interest expense................................. 679 819 2,211 2,659
Interest income.................................. (330) (346) (1,121) (874)
----------- ------------ ------------ -----------
INCOME BEFORE INCOME TAXES........................... 5,542 3,007 13,500 8,700
PROVISION FOR INCOME TAXES........................... 2,106 1,143 5,130 3,306
----------- ------------ ------------ -----------
NET INCOME........................................... $ 3,436 $ 1,864 $ 8,370 $ 5,394
=========== ============ ============ ===========
BASIC EARNINGS PER COMMON SHARE(1)................... $ 0.45 $ 0.29 $ 1.23 $ 0.85
========== ============ ============ ===========
DILUTED EARNINGS PER COMMON SHARE(1)...................$ 0.43 $ 0.28 $ 1.18 $ 0.83
========== ============ ============ ===========
(1) Basic and diluted earnings per share reflect the Company's three-for-two
stock split effected in the form of a 50% stock dividend paid on July 24, 2003.
MARTEN TRANSPORT, LTD.
CONDENSED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2003 2002
--------------- -------------
(In thousands, except share and per share information)
ASSETS
Current assets:
Cash and cash equivalents............................................. $ 30,695 $ --
Receivables:
Trade, net......................................................... 33,960 30,627
Other.............................................................. 5,303 6,561
Prepaid expenses and other............................................ 7,306 7,832
Deferred income taxes................................................. 4,048 4,311
--------------- -------------
Total current assets....................................... 81,312 49,331
--------------- -------------
Property and equipment:
Revenue equipment, buildings and land,
office equipment, and other........................................ 261,133 248,831
Accumulated depreciation.............................................. (98,022) (89,003)
--------------- -------------
Net property and equipment................................. 163,111 159,828
Other assets............................................................. 5,845 6,859
--------------- -------------
TOTAL ASSETS........................................ $ 250,268 $ 216,018
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash balances.............................. $ -- $ 130
Accounts payable and accrued liabilities.............................. 18,296 15,544
Insurance and claims accruals......................................... 12,195 12,915
Current maturities of long-term debt.................................. 5,000 3,571
--------------- -------------
Total current liabilities.................................. 35,491 32,160
Long-term debt, less current maturities.................................. 26,429 60,058
Deferred income taxes.................................................... 47,901 44,580
--------------- -------------
Total liabilities.......................................... 109,821 136,798
--------------- -------------
Stockholders' equity:
Common stock, $.01 par value per share,
23,000,000 shares authorized, 9,134,223
and 6,362,992 shares issued and outstanding(1)..................... 91 63
Additional paid-in capital............................................ 63,651 10,822
Retained earnings..................................................... 76,705 68,335
--------------- -------------
Total stockholders' equity................................. 140,447 79,220
--------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY................................ $ 250,268 $ 216,018
=============== =============
(1) Shares outstanding reflect the Company's three-for-two stock split effected
in the form of a 50% stock dividend paid on July 24, 2003.
MARTEN TRANSPORT, LTD.
Operating STATISTICS
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2003 2002 2003 2002
----------- ---------- ----------- ------------
Operating Statistics:
For period:
Average operating revenue per total mile............. $ 1.28 $ 1.24 $ 1.28 $ 1.23
Average freight revenue per total mile(1)........... $ 1.23 $ 1.22 $ 1.22 $ 1.21
Average miles per tractor(2)........................ 30,829 29,768 90,387 89,629
Average operating revenue per tractor per week(2)... $ 2,993 $ 2,809 $ 2,955 $ 2,817
Average freight revenue per tractor per week(1)(2).. $ 2,886 $ 2,753 $ 2,825 $ 2,779
Average miles per trip.............................. 1,009 959 1,003 962
Non-revenue miles percentage(3)..................... 6.8% 6.7% 6.7% 6.7%
Total miles - company-employed drivers
(in thousands).................................. 46,842 39,347 134,891 117,545
Total miles - independent contractors
(in thousands).................................. 20,477 20,911 60,717 59,290
At September 30, 2003, and September 30, 2002:
Total tractors(2)................................... 2,193 2,087
Average age of company tractors (in years).......... 2.2 2.0
Total trailers...................................... 2,800 2,731
Average age of company trailers (in years).......... 3.9 4.0
Ratio of trailers to tractors(2).................... 1.3 1.3
Ratio of tractors to non-driver personnel(2) ....... 5.5 5.7
Three Months Nine Months
Ended September 30, Ended September 30,
2003 2002 2003 2002
---------- ---------- ------------ -----------
(In thousands)
Net cash provided by operating activities............ $ 10,099 $ 15,502 $ 34,467 $ 32,281
Net cash used for investing activities............... 11,485 11,502 24,299 17,851
(1) Excludes fuel surcharge revenue.
(2) Includes tractors driven by both company-employed drivers and independent
contractors. Independent contractors provided 595 and 614 tractors as of
September 30, 2003, and 2002, respectively.
(3) Represents the percentage of miles for which the Company is not
compensated.