Marten Transport Announces First Quarter Results

Net Income Increases 52.8%


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.


            

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