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Source: Marten Transport, Ltd.

Marten Transport Announces Fourth Quarter and Year End Results

Reports Highest Net Income in Company History on 10.6% Increase in 2013

MONDOVI, Wis., Jan. 21, 2014 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported the highest net income for any year in its history. For the year ended December 31, 2013, net income improved 10.6% to a record $30.1 million, or 90 cents per diluted share, from $27.3 million, or 82 cents per diluted share, in 2012. For the fourth quarter of 2013, net income decreased to $7.3 million, or 22 cents per diluted share, from $7.7 million, or 23 cents per diluted share, in the fourth quarter of 2012.

Operating revenue, consisting of revenue from truckload and logistics operations, decreased slightly to $166.2 million in the fourth quarter of 2013 from $166.4 million in the fourth quarter of 2012, and increased to $659.2 million in 2013 from $638.5 million in 2012. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 5.6% to $134.5 million in the 2013 quarter from $127.4 million in the 2012 quarter, and increased 7.8% to $524.8 million in 2013 from $486.7 million in 2012. Fuel surcharge revenue decreased to $31.7 million in the fourth quarter of 2013 from $32.2 million in the 2012 quarter, and increased to $127.7 million in 2013 from $121.1 million in 2012. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the fourth quarter of 2013 compared with $6.7 million in the 2012 quarter. MWL revenue included in 2013 decreased by $24.0 million from 2012 with the deconsolidation.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.6% in the fourth quarter of 2013, compared to the 90.2% ratio achieved in the fourth quarter of 2012. The ratio improved to 90.2% in 2013 from 91.1% in 2012. The ratio in 2013 was the Company's best since 2005 and the fourth consecutive year with improved results.

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased to announce our highest net income for any year in our history. These results were earned in a challenging rate environment with significant industry headwinds including higher equipment and maintenance costs, pay inflation to drivers within a contracting driver market and revised hours of service regulations. We continued to grow our business with our total truckload, intermodal and broker loads up 7.5% in the fourth quarter of 2013 and up 10.2% in 2013 over the prior year's periods – and expect continued growth in 2014, principally with our dedicated truckload, intermodal and Mexico operations. We also continue to drive improvements in revenue per tractor, which increased 3.9% in the fourth quarter of 2013 and 3.8% in 2013 over the prior year's periods. We believe that we are better positioned than ever for future performance growth with our diverse service infrastructure and the dedicated people who have built it with their smart, hard work.

"We are also pleased to have received a 2013 SmartWay Excellence Award from the U.S. Environmental Protection Agency. The Excellence Award is reserved for the top one percent of SmartWay Partners and recognizes industry leadership in freight supply chain environmental performance and energy efficiency."

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.

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.

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, 2012. The Company undertakes 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)
  December 31, December 31,
  2013 2012
(In thousands, except share information)    
     
ASSETS    
Current assets:    
Cash and cash equivalents  $ 13,650  $ 3,473
Receivables:    
Trade, net 70,869 66,239
Other 4,142 7,177
Prepaid expenses and other 15,274 15,490
Deferred income taxes 3,415 3,155
Total current assets 107,350 95,534
Property and equipment:    
Revenue equipment, buildings and land, office equipment and other 579,925 551,136
Accumulated depreciation  (164,916)  (156,660)
Net property and equipment 415,009 394,476
Other assets 3,443 613
TOTAL ASSETS  $ 525,802  $ 490,623
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued liabilities  $ 38,624  $ 33,062
Insurance and claims accruals 14,404 13,838
Total current liabilities 53,028 46,900
Long-term debt, less current maturities -- 2,726
Deferred income taxes 113,637 109,074
Total liabilities 166,665 158,700
     
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; 33,301,048 shares    
at December 31, 2013, and 33,164,428 shares at    
December 31, 2012, issued and outstanding 333 332
Additional paid-in capital 85,077 82,679
Retained earnings 273,727 246,349
Total Marten Transport, Ltd. stockholders' equity 359,137 329,360
Noncontrolling interest -- 2,563
Total stockholders' equity 359,137 331,923
TOTAL LIABILITIES AND    
STOCKHOLDERS' EQUITY  $ 525,802  $ 490,623
 
 
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
         
   Three Months Year
   Ended December 31,   Ended December 31, 
(In thousands, except per share information) 2013 2012 2013 2012
         
OPERATING REVENUE  $ 166,224  $ 166,412  $ 659,214  $ 638,456
         
OPERATING EXPENSES (INCOME):        
Salaries, wages and benefits 43,534 43,221 171,314 163,242
Purchased transportation 30,987 32,248 123,436 124,269
Fuel and fuel taxes 39,804 41,937 163,270 163,596
Supplies and maintenance 10,755 9,961 40,582 39,919
Depreciation 16,321 15,790 64,476 60,904
Operating taxes and licenses 1,704 1,848 7,110 6,741
Insurance and claims 6,321 4,902 23,681 20,718
Communications and utilities 1,362 1,302 5,212 4,939
Gain on disposition of revenue equipment (848) (1,249) (5,972) (5,302)
Other 3,601 3,241 14,110 13,577
         
Total operating expenses 153,541 153,201 607,219 592,603
         
OPERATING INCOME 12,683 13,211 51,995 45,853
         
OTHER (94) (8) (392) (48)
         
INCOME BEFORE INCOME TAXES 12,777 13,219 52,387 45,901
Less: Income before income taxes attributable to noncontrolling interest -- 30 84 497
         
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 12,777 13,189 52,303 45,404
         
PROVISION FOR INCOME TAXES 5,476 5,470 22,156 18,137
         
NET INCOME  $ 7,301  $ 7,719  $ 30,147  $ 27,267
         
BASIC EARNINGS PER COMMON SHARE  $ 0.22  $ 0.23  $ 0.91  $ 0.82
         
DILUTED EARNINGS PER COMMON SHARE  $ 0.22  $ 0.23  $ 0.90  $ 0.82
         
DIVIDENDS PAID PER COMMON SHARE  $ 0.025  $ 0.517  $ 0.083  $ 0.563
 
 
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
         
       Dollar  Percentage
       Change  Change 
   Three Months  Three Months  Three Months
   Ended Ended Ended
   December 31, December 31,  December 31,
(Dollars in thousands) 2013 2012  2013 vs. 2012   2013 vs. 2012
Operating revenue:        
Truckload revenue, net of fuel surcharge revenue  $ 102,218  $ 98,099  $ 4,119 4.2%
Truckload fuel surcharge revenue 26,195 27,635 (1,440) (5.2)
Total Truckload revenue 128,413 125,734 2,679 2.1
         
Logistics revenue, net of intermodal fuel surcharge revenue 32,308 36,071 (3,763) (10.4)
Intermodal fuel surcharge revenue 5,503 4,607 896 19.4
Total Logistics revenue 37,811 40,678 (2,867) (7.0)
         
Total operating revenue  $ 166,224  $ 166,412 $ (188)  (0.1)%
         
Operating income:        
Truckload  $ 11,222  $ 10,766  $ 456 4.2%
Logistics 1,461 2,445 (984) (40.2)
Total operating income  $ 12,683  $ 13,211 $ (528) (4.0)%
         
Operating ratio:        
Truckload 91.3% 91.4%    
Logistics 96.1 94.0    
Consolidated operating ratio 92.4% 92.1%    
 
 
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
         
      Dollar  Percentage
      Change  Change
  Year  Year  Year 
  Ended  Ended  Ended 
  December 31,  December 31,  December 31, 
(Dollars in thousands) 2013 2012 2013 vs. 2012  2013 vs. 2012 
Operating revenue:        
Truckload revenue, net of fuel surcharge revenue $ 400,324 $ 378,383 $ 21,941 5.8%
Truckload fuel surcharge revenue 106,955 104,940 2,015 1.9
Total Truckload revenue 507,279 483,323 23,956 5.0
         
Logistics revenue, net of intermodal fuel surcharge revenue 131,186 138,960 (7,774) (5.6)
Intermodal fuel surcharge revenue 20,749 16,173 4,576 28.3
Total Logistics revenue 151,935 155,133 (3,198) (2.1)
         
Total operating revenue $ 659,214 $ 638,456 $ 20,758 3.3%
         
Operating income:        
Truckload $ 44,865 $ 36,805 $ 8,060 21.9%
Logistics 7,130 9,048 (1,918) (21.2)
Total operating income $ 51,995 $ 45,853 $ 6,142 13.4%
         
Operating ratio:        
Truckload 91.2% 92.4%    
Logistics 95.3 94.2    
Consolidated operating ratio 92.1% 92.8%    
 
 
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
         
   Three Months  Year
   Ended December 31,  Ended December 31,
  2013 2012 2013 2012
Truckload Segment:        
Total Truckload revenue (in thousands)  $ 128,413  $ 125,734  $ 507,279  $ 483,323
Average truckload revenue, net of fuel surcharges, per tractor per week(1)  $ 3,522  $ 3,389  $ 3,465  $ 3,339
Average tractors(1) 2,209 2,202 2,216 2,167
Average miles per trip 596 623 603 624
Non-revenue miles percentage(2) 9.4% 11.4% 10.3% 11.3%
Total miles – company-employed drivers (in thousands) 55,982 56,042 225,194 215,742
Total miles – independent contractors (in thousands) 1,315 897 4,974 4,583
         
Logistics Segment:        
Total Logistics revenue (in thousands)  $ 37,811  $ 40,678  $ 151,935  $ 155,133
Brokerage:        
Marten Transport        
Revenue (in thousands)  $ 12,850  $ 13,421  $ 52,746  $ 53,161
Loads 8,673 8,403 35,140 32,533
MWL        
Revenue (in thousands) $ --  $ 6,742  $ 6,676  $ 30,648
Loads -- 3,641 3,758 16,120
Intermodal:        
Revenue (in thousands)  $ 24,961  $ 20,515  $ 92,513  $ 71,324
Loads 10,973 7,961 38,316 27,488
Average tractors 89 73 83 63
         
At December 31, 2013 and December 31, 2012:        
Total tractors(1) 2,255 2,252    
Average age of company tractors (in years) 1.9 2.0    
Total trailers 4,105 4,170    
Average age of company trailers (in years) 2.4 2.2    
Ratio of trailers to tractors(1) 1.8 1.9    
         
   Three Months  Year
   Ended December 31,  Ended December 31,
(In thousands) 2013 2012 2013 2012
         
Net cash provided by operating activities  $ 23,338  $ 22,750  $ 89,187  $ 85,539
Net cash used for investing activities 9,994 10,509 74,722 88,115
         
Weighted average shares outstanding:        
Basic 33,265 33,125 33,221 33,095
Diluted 33,525 33,235 33,429 33,225
         
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 49 and 36 tractors as of December 31, 2013, and 2012, respectively.
         
(2) Represents the percentage of miles for which the company is not compensated.