Marten Transport Announces First Quarter Results

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| Source: Marten Transport, Ltd.

MONDOVI, Wis., April 15, 2014 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported net income of $5.3 million, or 16 cents per diluted share, in the first quarter ended March 31, 2014, compared with $7.2 million, or 22 cents per diluted share, in the first quarter of 2013.

Operating revenue, consisting of revenue from truckload and logistics operations, decreased to $159.4 million in the first quarter of 2014 from $164.5 million in the first quarter of 2013. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, improved 1.2% to $127.5 million in the 2014 quarter from $126.0 million in the 2013 quarter. Fuel surcharge revenue increased to $31.9 million in the first quarter of 2014 from $31.7 million in the 2013 quarter. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the first quarter of 2014 compared with $6.7 million in the 2013 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, increased to 93.2% in the first quarter of 2014 from 90.6% in the first quarter of 2013. A reduction in the gain on disposition of revenue equipment and an increase in supplies and maintenance compared with the first quarter of 2013 increased the 2014 ratio by 210 basis points.

"Our results reflect the impact of the severe weather conditions that greatly hindered each of our operating segments in this year's first quarter," said Chairman and Chief Executive Officer Randolph L. Marten. "The conditions were unusually harsh and widespread, significantly affecting both freight volumes and operating costs."

"However, we are better positioned than ever for the remainder of 2014 and beyond based on the current freight environment and the continued improvements we are driving in freight network efficiencies within our diverse service infrastructure. As evidence of this, despite tough conditions we still increased our tractor utilization and improved our revenue per tractor 3.9% over the first quarter of 2013."

"We are pleased to again be named to Forbes magazine's list of America's 100 Most Trustworthy Companies, making us one of only four companies to be named for the fourth time in the last five years surveyed." GMI Ratings compiled the list for Forbes by evaluating more than 8,000 U.S. exchange-listed companies with market capitalizations of at least $250 million and recognized the 100 companies with the top Accounting and Governance Risk scores, which assess the integrity, transparency and reliability of companies' financial reporting and governance practices.

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, 2013. 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)
     
  March 31, December 31,
(In thousands, except share information) 2014 2013
     
ASSETS    
Current assets:    
Cash and cash equivalents  $ 19,315  $ 13,650
Receivables:    
Trade, net 70,306 70,869
Other 2,212 4,142
Prepaid expenses and other 13,366 15,274
Deferred income taxes 3,479 3,415
Total current assets 108,678 107,350
Property and equipment:    
Revenue equipment, buildings and land,    
office equipment and other 596,031 579,925
Accumulated depreciation (171,886) (164,916)
Net property and equipment 424,145 415,009
Other assets 3,489 3,443
TOTAL ASSETS  $ 536,312  $ 525,802
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued liabilities  $ 42,467  $ 38,624
Insurance and claims accruals 14,847 14,404
Total current liabilities 57,314 53,028
Deferred income taxes 114,777 113,637
Total liabilities 172,091 166,665
     
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; 33,349,150 shares    
at March 31, 2014, and 33,301,048 shares at    
December 31, 2013, issued and outstanding 333 333
Additional paid-in capital 85,708 85,077
Retained earnings 278,180 273,727
Total stockholders' equity 364,221 359,137
TOTAL LIABILITIES AND    
STOCKHOLDERS' EQUITY  $ 536,312  $ 525,802
 
 
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
     
   Three Months
   Ended March 31, 
(In thousands, except per share information) 2014 2013
     
OPERATING REVENUE  $ 159,409  $ 164,474
     
OPERATING EXPENSES (INCOME):    
Salaries, wages and benefits 43,732 42,125
Purchased transportation 28,130 34,184
Fuel and fuel taxes 39,826 40,323
Supplies and maintenance 10,435 9,533
Depreciation 16,371 15,688
Operating taxes and licenses 1,713 1,770
Insurance and claims 6,125 5,811
Communications and utilities 1,433 1,283
Gain on disposition of revenue equipment (663) (2,415)
Other 3,667 3,634
     
Total operating expenses 150,769 151,936
     
OPERATING INCOME 8,640 12,538
     
OTHER  (98) (15)
     
INCOME BEFORE INCOME TAXES 8,738 12,553
Less: Income before income taxes     
attributable to noncontrolling interest -- 84
     
INCOME BEFORE INCOME TAXES    
ATTRIBUTABLE TO MARTEN    
TRANSPORT, LTD. 8,738 12,469
     
PROVISION FOR INCOME TAXES 3,451 5,267
     
NET INCOME  $ 5,287  $ 7,202
     
BASIC EARNINGS PER COMMON SHARE  $ 0.16  $ 0.22
     
DILUTED EARNINGS PER COMMON SHARE  $ 0.16  $ 0.22
     
DIVIDENDS DECLARED PER COMMON SHARE  $ 0.025  $ 0.017
 
 
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
         
       Dollar  Percentage
       Change   Change 
   Three Months  Three Months  Three Months
   Ended  Ended   Ended
   March 31, March 31,  March 31,
(Dollars in thousands) 2014 2013  2014 vs. 2013   2014 vs. 2013
Operating revenue:        
Truckload revenue, net of fuel surcharge revenue  $ 97,530  $ 94,965 $ 2,565 2.7%
Truckload fuel surcharge revenue 26,534 26,769 (235) (0.9)
Total Truckload revenue 124,064 121,734 2,330 1.9
         
Logistics revenue, net of intermodal fuel surcharge revenue 30,009 37,760 (7,751) (20.5)
Intermodal fuel surcharge revenue 5,336 4,980 356 7.1
Total Logistics revenue 35,345 42,740 (7,395) (17.3)
         
Total operating revenue  $ 159,409  $ 164,474 $ (5,065)  (3.1)%
         
Operating income:        
Truckload $ 7,500 $ 10,000 $ (2,500) (25.0)%
Logistics 1,140 2,538 (1,398) (55.1)
Total operating income  $ 8,640  $ 12,538 $ (3,898) (31.1)%
         
Operating ratio:        
Truckload 94.0% 91.8%    
Logistics 96.8 94.1    
Consolidated operating ratio 94.6% 92.4%    
 
 
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
     
   Three Months
   Ended March 31,
  2014 2013
Truckload Segment:    
Total Truckload revenue (in thousands)  $ 124,064  $ 121,734
Average truckload revenue, net of fuel surcharges, per tractor per week(1)  $ 3,500  $ 3,368
Average tractors(1) 2,167 2,193
Average miles per trip 616 627
Non-revenue miles percentage(2) 8.5% 10.7%
Total miles – company-employed drivers (in thousands) 54,362 54,895
Total miles – independent contractors (in thousands) 1,057 941
     
Logistics Segment:    
Total Logistics revenue (in thousands)  $ 35,345  $ 42,740
Brokerage:    
Marten Transport    
Revenue (in thousands)  $ 11,655  $ 14,469
Loads 7,708 9,430
MWL    
Revenue (in thousands) $ --  $ 6,676
Loads -- 3,758
Intermodal:    
Revenue (in thousands)  $ 23,690  $ 21,595
Loads 10,523 8,590
Average tractors 98 78
     
At March 31, 2014 and March 31, 2013:    
Total tractors(1) 2,275 2,256
Average age of company tractors (in years) 1.9 1.8
Total trailers 4,163 4,115
Average age of company trailers (in years) 2.5 2.4
Ratio of trailers to tractors(1) 1.8 1.8
     
     
   Three Months
   Ended March 31,
(In thousands) 2014 2013
     
Net cash provided by operating activities  $ 27,508  $ 21,994
Net cash used for investing activities 21,384 13,085
     
Weighted average shares outstanding:    
Basic 33,340 33,182
Diluted 33,631 33,322
 
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 41 and 49 tractors as of March 31, 2014, and 2013, respectively.
(2) Represents the percentage of miles for which the company is not compensated. 
Tim Kohl, President, and
Jim Hinnendael, Chief Financial Officer
of Marten Transport, Ltd., 715-926-4216