MONDOVI, Wis., April 21, 2009 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) announced today its financial and operating results for the quarter ended March 31, 2009.
For the first quarter of 2009, net income increased 52.8% to $4.1 million, or 18 cents per diluted share, compared with $2.7 million, or 12 cents per diluted share, for the same quarter of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 14.9% to $122.0 million in the first quarter of 2009 from $143.4 million in the 2008 quarter. This decrease was primarily due to fuel surcharge revenue decreasing to $10.8 million in the quarter from $28.0 million in the 2008 quarter, caused by significantly lower fuel prices in the 2009 quarter. Operating revenue, net of fuel surcharges, decreased 3.6% to $111.2 million in the 2009 quarter from $115.4 million in the 2008 quarter.
Operating expenses decreased 16.8% to $114.7 million in the first quarter of 2009 from $137.9 million in the 2008 quarter. The operating expense decrease was primarily due to decreases in fuel and fuel taxes and purchased transportation. Fuel and fuel taxes decreased 47.8% to $21.9 million in the first quarter of 2009 from $41.9 million in the 2008 quarter. This improvement was primarily attributable to significantly lower fuel prices in the 2009 quarter and to our continued emphasis on controlling tractor and trailer fuel costs. Purchased transportation decreased 18.8% to $22.8 million in the first quarter of 2009 from $28.0 million in the first quarter of 2008, primarily the result of fewer miles driven by independent contractors.
Chairman and Chief Executive Officer Randolph L. Marten said, "Despite the overall turmoil in the economy and the exceptionally difficult freight environment, we continued to improve our profitability and our strong financial position in this year's first quarter. Consistent with the growth in our net income, another fundamental measurement of our profitability, our cash from operating activities, increased to $27.4 million for the first quarter of 2009 from $14.7 million in the 2008 quarter. We are well-positioned for an economic recovery with our multi-faceted business model and our positive cash position with minimal debt.
"We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls. In particular, our regional expansion, our logistics business growth, and our fuel efficiency initiatives have helped us improve our results.
"Our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.1% for the first quarter of 2009 from 96.2% for the first quarter of 2008.
"We are also pleased to be recently named to the Audit Integrity Top 100 for the second consecutive year, as reported by Forbes.com. The Audit Integrity Top 100 recognizes U.S. exchange-listed companies with market capitalizations of at least $200 million that display the highest corporate integrity, clear financial reporting, and transparent corporate governance as measured by Audit Integrity's Accounting and Governance Risk ratings."
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.
MARTEN TRANSPORT, LTD. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) March 31, December 31, (In thousands, except share information) 2009 2008 ------------------------- ASSETS Current assets: Cash $ 2,176 $ 2,395 Marketable securities 14,849 2,604 Receivables: Trade, net 46,433 50,143 Other 5,483 7,385 Prepaid expenses and other 11,583 13,705 Deferred income taxes 7,084 6,140 ------------------------- Total current assets 87,608 82,372 ------------------------- Property and equipment: Revenue equipment, buildings and land, office equipment and other 459,589 451,172 Accumulated depreciation (143,664) (136,871) ------------------------- Net property and equipment 315,925 314,301 Other assets 664 770 ------------------------- TOTAL ASSETS $ 404,197 $ 397,443 ========================= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Checks issued in excess of cash balances $ 472 $ 1,807 Accounts payable and accrued liabilities 33,449 32,894 Insurance and claims accruals 21,720 21,386 Current maturities of long-term debt 1,428 1,428 ------------------------- Total current liabilities 57,069 57,515 Long-term debt, less current maturities 1,429 1,429 Deferred income taxes 83,698 81,048 ------------------------- Total liabilities 142,196 139,992 ------------------------- 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; 21,852,228 shares at March 31, 2009, and 21,830,071 shares at December 31, 2008, issued and outstanding 219 218 Additional paid-in capital 75,619 75,305 Retained earnings 184,266 180,213 ------------------------- Total Marten Transport, Ltd. stockholders' equity 260,104 255,736 Noncontrolling interest 1,897 1,715 ------------------------- Total stockholders' equity 262,001 257,451 ------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 404,197 $ 397,443 ========================= MARTEN TRANSPORT, LTD. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, ------------------------- (In thousands, except per share information) 2009 2008 ------------------------- OPERATING REVENUE $ 121,955 $ 143,374 ------------------------- OPERATING EXPENSES (INCOME): Salaries, wages and benefits 36,102 36,682 Purchased transportation 22,752 28,004 Fuel and fuel taxes 21,866 41,929 Supplies and maintenance 9,818 9,332 Depreciation 13,433 11,962 Operating taxes and licenses 1,676 1,712 Insurance and claims 5,521 5,565 Communications and utilities 1,065 961 Gain on disposition of revenue equipment (471) (1,059) Other 2,942 2,804 ------------------------- Total operating expenses 114,704 137,892 ------------------------- OPERATING INCOME 7,251 5,482 ------------------------- OTHER EXPENSES (INCOME): Interest expense 64 534 Interest income (33) (77) ------------------------- 31 457 ------------------------- INCOME BEFORE INCOME TAXES 7,220 5,025 Less: Income before income taxes attributable to noncontrolling interest 116 380 ------------------------- INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 7,104 4,645 PROVISION FOR INCOME TAXES 3,051 1,992 ------------------------- NET INCOME $ 4,053 $ 2,653 ========================= BASIC EARNINGS PER COMMON SHARE $ 0.19 $ 0.12 ========================= DILUTED EARNINGS PER COMMON SHARE $ 0.18 $ 0.12 ========================= MARTEN TRANSPORT, LTD. SEGMENT INFORMATION (Unaudited) Dollar Percentage Change Change Three Months Three Three Ended Months Months March 31, Ended Ended ------------------ March 31, March 31, (Dollars in thousands) 2009 2008 2009 vs. 2009 vs. 2008 2008 --------------------------------------- Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 88,535 $ 94,631 $ (6,096) (6.4)% Truckload fuel surcharge revenue 9,837 26,498 (16,661) (62.9) --------------------------------------- Total Truckload revenue 98,372 121,129 (22,757) (18.8) --------------------------------------- Logistics revenue, net of intermodal fuel surcharge revenue 22,650 20,745 1,905 9.2 Intermodal fuel surcharge revenue 933 1,500 (567) (37.8) --------------------------------------- Total Logistics revenue 23,583 22,245 1,338 6.0 --------------------------------------- Total operating revenue $121,955 $143,374 $(21,419) (14.9)% ======================================= Operating income: Truckload $ 5,833 $ 3,727 $ 2,106 56.5 % Logistics 1,418 1,755 (337) (19.2) --------------------------------------- Total operating income $ 7,251 $ 5,482 $ 1,769 32.3 % ======================================= Operating ratio: Truckload 94.1% 96.9% 2.9 % Logistics 94.0 92.1 (2.1) ------------------ --------- Consolidated operating ratio 94.1% 96.2% 2.2 % ================== ========= MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited) Three Months Ended March 31, ------------------------- 2009 2008 ------------------------- Truckload Segment: Average truckload revenue, net of fuel surcharges, per total mile $ 1.525 $ 1.479 Average miles per tractor(1) 24,341 27,082 Average truckload revenue, net of fuel surcharges, per tractor per week(1) $ 2,887 $ 3,081 Average tractors(1) 2,385 2,362 Average miles per trip 824 892 Non-revenue miles percentage(2) 8.8% 8.2% Total miles - company-employed drivers (in thousands) 52,112 54,310 Total miles - independent contractors (in thousands) 5,943 9,671 Logistics Segment: Brokerage: Revenue (in thousands) $ 14,454 $ 15,224 Loads 7,606 7,613 Intermodal: Revenue (in thousands) $ 9,129 $ 7,021 Loads 3,653 2,153 Average tractors 55 40 At March 31, 2009, and March 31, 2008: Total tractors(1) 2,449 2,420 Average age of company tractors (in years) 2.2 2.2 Total trailers 4,288 4,032 Average age of company trailers (in years) 3.3 2.7 Ratio of trailers to tractors(1) 1.8 1.7 Ratio of tractors to non-driver personnel(1) 4.4 5.1 Three Months Ended March 31, ------------------------- (In thousands) 2009 2008 ------------------------- Net cash provided by operating activities $ 27,416 $ 14,739 Net cash used for investing activities 26,481 867 Weighted average shares outstanding: Basic 21,839 21,757 Diluted 21,960 21,903 ------------------------- (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 212 and 295 tractors as of March 31, 2009, and 2008, respectively. (2) Represents the percentage of miles for which the company is not compensated.