MONDOVI, Wis., July 15, 2014 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported an increase in net income to $7.9 million, or 24 cents per diluted share, in the second quarter ended June 30, 2014, from $7.7 million, or 23 cents per diluted share, in the second quarter of 2013. For the six-month period ended June 30, 2014, net income was $13.2 million, or 39 cents per diluted share, compared with $14.9 million, or 45 cents per diluted share, in the 2013 six-month period.
Operating revenue, consisting of revenue from truckload and logistics operations, increased to $168.4 million in the second quarter of 2014 from $161.4 million in the second quarter of 2013, and increased to $327.8 million in the 2014 six-month period from $325.9 million in the 2013 six-month period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 4.6% to $135.7 million in the 2014 quarter from $129.7 million in the 2013 quarter, and increased 2.9% to $263.2 million in the 2014 six-month period from $255.8 million in the 2013 six-month period. Fuel surcharge revenue increased to $32.7 million in the second quarter of 2014 from $31.7 million in the 2013 quarter, and increased to $64.6 million in the 2014 six-month period from $63.4 million in the 2013 six-month period. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the first six months of 2014 or in the second quarter of 2013, compared with $6.7 million in the first six months of 2013.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.5% in the second quarter of 2014 compared with the 89.9% ratio achieved in the second quarter of 2013. The ratio was 91.8% in the 2014 six-month period compared with 90.2% in the 2013 six-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, "We remain confident that we are well positioned for the remainder of 2014 and beyond with our rate initiatives that will continue through this year's third quarter, as the operating environment is becoming more favorable with tightening capacity. We are encouraged by our strong June 2014 performance with net income for the month of $3.1 million, and our opportunity for further profitability growth with our diverse service infrastructure. We continue to drive gains in our key operating measures as our revenue per tractor increased 4.1% over the second quarter of 2013, our seventeenth consecutive quarterly increase."
"We also utilized our credit facility in the second quarter of 2014 to acquire a larger regional operating facility in southern California, which we believe will give us the ability to further expand our footprint in that market."
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. As a result, it was determined that MWL was no longer required to be consolidated. Accordingly, Marten deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting, effective as of that date.
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) | ||
| June 30, | December 31, | |
| (In thousands, except share information) | 2014 | 2013 |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 956 | $ 13,650 |
| Receivables: | ||
| Trade, net | 75,176 | 70,869 |
| Other | 6,459 | 4,142 |
| Prepaid expenses and other | 13,949 | 15,274 |
| Deferred income taxes | 3,545 | 3,415 |
| Total current assets | 100,085 | 107,350 |
| Property and equipment: | ||
| Revenue equipment, buildings and land, office equipment and other | 632,693 | 579,925 |
| Accumulated depreciation | (174,627) | (164,916) |
| Net property and equipment | 458,066 | 415,009 |
| Other assets | 3,991 | 3,443 |
| TOTAL ASSETS | $ 562,142 | $ 525,802 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 42,063 | $ 38,624 |
| Insurance and claims accruals | 15,012 | 14,404 |
| Total current liabilities | 57,075 | 53,028 |
| Long-term debt, less current maturities | 16,757 | -- |
| Deferred income taxes | 115,918 | 113,637 |
| Total liabilities | 189,750 | 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; 33,398,329 shares at June 30, 2014, and 33,301,048 shares at December 31, 2013, issued and outstanding | 334 | 333 |
| Additional paid-in capital | 86,787 | 85,077 |
| Retained earnings | 285,271 | 273,727 |
| Total stockholders' equity | 372,392 | 359,137 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 562,142 | $ 525,802 |
| MARTEN TRANSPORT, LTD. | ||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| (In thousands, except per share information) | 2014 | 2013 | 2014 | 2013 |
| OPERATING REVENUE | $ 168,423 | $ 161,413 | $ 327,832 | $ 325,887 |
| OPERATING EXPENSES (INCOME): | ||||
| Salaries, wages and benefits | 44,667 | 42,345 | 88,399 | 84,470 |
| Purchased transportation | 30,739 | 28,129 | 58,869 | 62,313 |
| Fuel and fuel taxes | 40,494 | 40,596 | 80,320 | 80,919 |
| Supplies and maintenance | 10,351 | 9,998 | 20,786 | 19,531 |
| Depreciation | 16,865 | 16,219 | 33,236 | 31,907 |
| Operating taxes and licenses | 1,728 | 1,825 | 3,441 | 3,595 |
| Insurance and claims | 6,663 | 5,808 | 12,788 | 11,619 |
| Communications and utilities | 1,311 | 1,262 | 2,744 | 2,545 |
| Gain on disposition of revenue equipment | (1,278) | (1,237) | (1,941) | (3,652) |
| Other | 3,951 | 3,347 | 7,618 | 6,981 |
| Total operating expenses | 155,491 | 148,292 | 306,260 | 300,228 |
| OPERATING INCOME | 12,932 | 13,121 | 21,572 | 25,659 |
| OTHER | (612) | (153) | (710) | (168) |
| INCOME BEFORE INCOME TAXES | 13,544 | 13,274 | 22,282 | 25,827 |
| Less: Income before income taxes attributable to noncontrolling interest | -- | -- | -- | 84 |
| INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. | 13,544 | 13,274 | 22,282 | 25,743 |
| PROVISION FOR INCOME TAXES | 5,618 | 5,607 | 9,069 | 10,874 |
| NET INCOME | $ 7,926 | $ 7,667 | $ 13,213 | $ 14,869 |
| BASIC EARNINGS PER COMMON SHARE | $ 0.24 | $ 0.23 | $ 0.40 | $ 0.45 |
| DILUTED EARNINGS PER COMMON SHARE | $ 0.24 | $ 0.23 | $ 0.39 | $ 0.45 |
| DIVIDENDS DECLARED PER COMMON SHARE | $ 0.025 | $ 0.017 | $ 0.050 | $ 0.033 |
| MARTEN TRANSPORT, LTD. | ||||
| SEGMENT INFORMATION | ||||
| (Unaudited) | ||||
| Dollar | Percentage | |||
| Change | Change | |||
| Three Months | Three Months | Three Months | ||
| Ended | Ended | Ended | ||
| June 30, | June 30, | June 30, | ||
| (Dollars in thousands) | 2014 | 2013 | 2014 vs. 2013 | 2014 vs. 2013 |
| Operating revenue: | ||||
| Truckload revenue, net of fuel surcharge revenue | $102,161 | $99,996 | $2,165 | 2.2% |
| Truckload fuel surcharge revenue | 26,944 | 26,856 | 88 | 0.3 |
| Total Truckload revenue | 129,105 | 126,852 | 2,253 | 1.8 |
| Logistics revenue, net of intermodal fuel surcharge revenue | 33,518 | 29,721 | 3,797 | 12.8 |
| Intermodal fuel surcharge revenue | 5,800 | 4,840 | 960 | 19.8 |
| Total Logistics revenue | 39,318 | 34,561 | 4,757 | 13.8 |
| Total operating revenue | $168,423 | $161,413 | $7,010 | 4.3% |
| Operating income: | ||||
| Truckload | $11,843 | $11,376 | $467 | 4.1% |
| Logistics | 1,089 | 1,745 | (656) | (37.6) |
| Total operating income | $12,932 | $13,121 | $(189) | (1.4)% |
| Operating ratio: | ||||
| Truckload | 90.8% | 91.0% | ||
| Logistics | 97.2 | 95.0 | ||
| Consolidated operating ratio | 92.3% | 91.9% | ||
| MARTEN TRANSPORT, LTD. | ||||
| SEGMENT INFORMATION | ||||
| (Unaudited) | ||||
| Dollar | Percentage | |||
| Change | Change | |||
| Six Months | Six Months | Six Months | ||
| Ended | Ended | Ended | ||
| June 30, | June 30, | June 30, | ||
| (Dollars in thousands) | 2014 | 2013 | 2014 vs. 2013 | 2014 vs. 2013 |
| Operating revenue: | ||||
| Truckload revenue, net of fuel surcharge revenue | $199,691 | $194,961 | $4,730 | 2.4% |
| Truckload fuel surcharge revenue | 53,478 | 53,625 | (147) | (0.3) |
| Total Truckload revenue | 253,169 | 248,586 | 4,583 | 1.8 |
| Logistics revenue, net of intermodal fuel surcharge revenue | 63,527 | 67,481 | (3,954) | (5.9) |
| Intermodal fuel surcharge revenue | 11,136 | 9,820 | 1,316 | 13.4 |
| Total Logistics revenue | 74,663 | 77,301 | (2,638) | (3.4) |
| Total operating revenue | $327,832 | $325,887 | $1,945 | 0.6% |
| Operating income: | ||||
| Truckload | $19,343 | $21,376 | $(2,033) | (9.5)% |
| Logistics | 2,229 | 4,283 | (2,054) | (48.0) |
| Total operating income | $21,572 | $25,659 | $(4,087) | (15.9)% |
| Operating ratio: | ||||
| Truckload | 92.4% | 91.4% | ||
| Logistics | 97.0 | 94.5 | ||
| Consolidated operating ratio | 93.4% | 92.1% | ||
| MARTEN TRANSPORT, LTD. | ||||
| OPERATING STATISTICS | ||||
| (Unaudited) | ||||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Truckload Segment: | ||||
| Total Truckload revenue (in thousands) | $129,105 | $126,852 | $253,169 | $248,586 |
| Average truckload revenue, net of fuel surcharges, per tractor per week(1) | $3,601 | $3,459 | $3,551 | $3,414 |
| Average tractors(1) | 2,183 | 2,224 | 2,175 | 2,209 |
| Average miles per trip | 605 | 598 | 610 | 612 |
| Non-revenue miles percentage(2) | 9.0% | 10.5% | 8.7% | 10.6% |
| Total miles – company-employed drivers (in thousands) | 56,140 | 57,031 | 110,502 | 111,926 |
| Total miles – independent contractors (in thousands) | 1,057 | 1,373 | 2,114 | 2,314 |
| Logistics Segment: | ||||
| Total Logistics revenue (in thousands) | $39,318 | $34,561 | $74,663 | $77,301 |
| Brokerage: | ||||
| Marten Transport | ||||
| Revenue (in thousands) | $13,112 | $12,813 | $24,767 | $27,282 |
| Loads | 8,611 | 8,602 | 16,319 | 18,032 |
| MWL | ||||
| Revenue (in thousands) | $-- | $-- | $-- | $6,676 |
| Loads | -- | -- | -- | 3,758 |
| Intermodal: | ||||
| Revenue (in thousands) | $26,206 | $21,748 | $49,896 | $43,343 |
| Loads | 12,032 | 8,916 | 22,555 | 17,506 |
| Average tractors | 121 | 85 | 110 | 81 |
| At June 30, 2014 and June 30, 2013: | ||||
| Total tractors(1) | 2,311 | 2,317 | ||
| Average age of company tractors (in years) | 1.8 | 1.9 | ||
| Total trailers | 4,225 | 4,111 | ||
| Average age of company trailers (in years) | 2.5 | 2.4 | ||
| Ratio of trailers to tractors(1) | 1.8 | 1.8 | ||
| Three Months | Six Months | |||
| Ended June 30, | Ended June 30, | |||
| (In thousands) | 2014 | 2013 | 2014 | 2013 |
| Net cash provided by operating activities | $13,187 | $25,816 | $40,695 | $47,810 |
| Net cash used for investing activities | 48,149 | 41,331 | 69,533 | 54,416 |
| Weighted average shares outstanding: | ||||
| Basic | 33,369 | 33,210 | 33,355 | 33,196 |
| Diluted | 33,696 | 33,378 | 33,662 | 33,344 |
| (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 35 and 53 tractors as of June 30, 2014, and 2013, respectively. | ||||
| (2) Represents the percentage of miles for which the company is not compensated. | ||||