MONDOVI, Wis., April 21, 2016 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.2 million, or 25 cents per diluted share, for the quarter ended March 31, 2016. Net income improved 2.4% over 2015 first quarter earnings of $8.0 million, or 24 cents per diluted share, excluding a $3.7 million gain on the disposition of a facility. Net income for the 2015 quarter, including the gain, was $10.2 million, or 30 cents per diluted share. The disposition was part of Marten’s ongoing program to expand and update the footprint of its facilities.
Operating revenue, net of both fuel surcharges and revenue from the Company’s dry container service discontinued in March 2015, improved 8.9%, to $151.9 million, for the first quarter of 2016 from $139.4 million for the first quarter of 2015. Operating revenue increased to $161.9 million for the 2016 quarter from $161.3 million for the 2015 quarter, despite substantially lower fuel surcharges due to decreased fuel prices in 2016. Fuel surcharge revenue decreased to $10.0 million for the first quarter of 2016 from $20.6 million for the 2015 quarter.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.7% for the first quarter of 2016. The operating ratio, net of both the gain on the facility disposition and fuel surcharges, was 90.3% for the first quarter of 2015.
Chairman and Chief Executive Officer Randolph L. Marten said, “In the face of pricing pressures and a soft freight market since last year’s second quarter, we have continued to demonstrate disciplined execution of our unique, multifaceted and diverse business model. We successfully grew our average number of truckload and dedicated tractors by 384 tractors, or 16.5%, year over year, and paid off our December 31, 2015 debt balance of $37.9 million during the quarter. We believe that we are well-positioned to profitably capitalize on further growth opportunities within each of our transportation service platforms in 2016.”
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. 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, 2015. 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) | 2016 | 2015 | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 1,156 | $ | 434 | |||||
| Receivables: | |||||||||
| Trade, net | 65,285 | 70,597 | |||||||
| Other | 4,719 | 10,885 | |||||||
| Prepaid expenses and other | 16,829 | 18,134 | |||||||
| Total current assets | 87,989 | 100,050 | |||||||
| Property and equipment: | |||||||||
| Revenue equipment, buildings and land, | |||||||||
| office equipment and other | 723,457 | 724,597 | |||||||
| Accumulated depreciation | (204,410 | ) | (196,588 | ) | |||||
| Net property and equipment | 519,047 | 528,009 | |||||||
| Other assets | 3,356 | 3,469 | |||||||
| Total assets | $ | 610,392 | $ | 631,528 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued liabilities | $ | 44,431 | $ | 33,641 | |||||
| Insurance and claims accruals | 17,105 | 16,235 | |||||||
| Total current liabilities | 61,536 | 49,876 | |||||||
| Long-term debt | - | 37,867 | |||||||
| Deferred income taxes | 138,044 | 134,364 | |||||||
| Total liabilities | 199,580 | 222,107 | |||||||
| 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; | |||||||||
| 96,000,000 shares authorized; 32,419,481 shares | |||||||||
| at March 31, 2016, and 32,759,806 shares at | |||||||||
| December 31, 2015, issued and outstanding | 324 | 328 | |||||||
| Additional paid-in capital | 70,481 | 76,468 | |||||||
| Retained earnings | 340,007 | 332,625 | |||||||
| Total stockholders’ equity | 410,812 | 409,421 | |||||||
| Total liabilities and stockholders’ equity | $ | 610,392 | $ | 631,528 | |||||
| MARTEN TRANSPORT, LTD. | |||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| Three Months | |||||||||
| Ended March 31, | |||||||||
| (In thousands, except per share information) | 2016 | 2015 | |||||||
| Operating revenue | $ | 161,929 | $ | 161,287 | |||||
| Operating expenses (income): | |||||||||
| Salaries, wages and benefits | 54,830 | 48,808 | |||||||
| Purchased transportation | 28,035 | 29,504 | |||||||
| Fuel and fuel taxes | 19,630 | 26,476 | |||||||
| Supplies and maintenance | 10,499 | 10,442 | |||||||
| Depreciation | 20,047 | 17,827 | |||||||
| Operating taxes and licenses | 2,185 | 1,876 | |||||||
| Insurance and claims | 7,355 | 8,090 | |||||||
| Communications and utilities | 1,620 | 1,528 | |||||||
| Gain on disposition of revenue equipment | (1,434 | ) | (1,161 | ) | |||||
| Gain on disposition of facility | - | (3,712 | ) | ||||||
| Other | 5,037 | 4,298 | |||||||
| Total operating expenses | 147,804 | 143,976 | |||||||
| Operating income | 14,125 | 17,311 | |||||||
| Other | 215 | 15 | |||||||
| Income before income taxes | 13,910 | 17,296 | |||||||
| Provision for income taxes | 5,717 | 7,108 | |||||||
| Net income | $ | 8,193 | $ | 10,188 | |||||
| Basic earnings per common share | $ | 0.25 | $ | 0.30 | |||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.30 | |||||
| Dividends declared per common share | $ | 0.025 | $ | 0.025 | |||||
| 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) | 2016 | 2015 | 2016 vs. 2015 | 2016 vs. 2015 | |||||||||||||
| Operating revenue: | |||||||||||||||||
| Truckload revenue, net of fuel | |||||||||||||||||
| surcharge revenue | $ | 82,942 | $ | 86,811 | $ | (3,869 | ) | (4.5 | )% | ||||||||
| Truckload fuel surcharge revenue | 7,112 | 14,590 | (7,478 | ) | (51.3 | ) | |||||||||||
| Total Truckload revenue | 90,054 | 101,401 | (11,347 | ) | (11.2 | ) | |||||||||||
| Dedicated revenue, net of fuel | |||||||||||||||||
| surcharge revenue | 35,510 | 19,863 | 15,647 | 78.8 | |||||||||||||
| Dedicated fuel surcharge revenue | 1,587 | 2,591 | (1,004 | ) | (38.7 | ) | |||||||||||
| Total Dedicated revenue | 37,097 | 22,454 | 14,643 | 65.2 | |||||||||||||
| Intermodal revenue, net of fuel | |||||||||||||||||
| surcharge revenue | 15,854 | 17,019 | (1,165 | ) | (6.8 | ) | |||||||||||
| Intermodal fuel surcharge revenue | 1,347 | 3,373 | (2,026 | ) | (60.1 | ) | |||||||||||
| Total Intermodal revenue | 17,201 | 20,392 | (3,191 | ) | (15.6 | ) | |||||||||||
| Brokerage revenue | 17,577 | 17,040 | 537 | 3.2 | |||||||||||||
| Total operating revenue | $ | 161,929 | $ | 161,287 | $ | 642 | 0.4 | % | |||||||||
| Operating income: | |||||||||||||||||
| Truckload | $ | 6,940 | $ | 9,602 | $ | (2,662 | ) | (27.7 | )% | ||||||||
| Dedicated | 4,324 | 2,004 | 2,320 | 115.8 | |||||||||||||
| Intermodal | 1,929 | 1,251 | 678 | 54.2 | |||||||||||||
| Brokerage | 932 | 742 | 190 | 25.6 | |||||||||||||
| Total operating income before gain | |||||||||||||||||
| on disposition of facility | 14,125 | 13,599 | 526 | 3.9 | |||||||||||||
| Gain on disposition of facility | - | 3,712 | (3,712 | ) | (100.0 | ) | |||||||||||
| Total operating income | $ | 14,125 | $ | 17,311 | $ | (3,186 | ) | (18.4 | )% | ||||||||
| Operating ratio: | |||||||||||||||||
| Truckload | 92.3 | % | 90.5 | % | |||||||||||||
| Dedicated | 88.3 | 91.1 | |||||||||||||||
| Intermodal | 88.8 | 93.9 | |||||||||||||||
| Brokerage | 94.7 | 95.6 | |||||||||||||||
| Consolidated operating ratio before gain | |||||||||||||||||
| on disposition of facility | 91.3 | % | 91.6 | % | |||||||||||||
| Consolidated operating ratio | 91.3 | % | 89.3 | % | |||||||||||||
| MARTEN TRANSPORT, LTD. | |||||||
| OPERATING STATISTICS | |||||||
| (Unaudited) | |||||||
| Three Months | |||||||
| Ended March 31, | |||||||
| 2016 | 2015 | ||||||
| Truckload Segment: | |||||||
| Revenue (in thousands) | $ | 90,054 | $ | 101,401 | |||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,366 | $ | 3,606 | |||
| Average tractors(1) | 1,896 | 1,872 | |||||
| Average miles per trip | 642 | 705 | |||||
| Non-revenue miles percentage(2) | 9.6 | % | 9.2 | % | |||
| Total miles (in thousands) | 44,471 | 47,530 | |||||
| Dedicated Segment: | |||||||
| Revenue (in thousands) | $ | 37,097 | $ | 22,454 | |||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,375 | $ | 3,442 | |||
| Average tractors(1) | 809 | 449 | |||||
| Average miles per trip | 314 | 375 | |||||
| Non-revenue miles percentage(2) | 0.8 | % | 2.3 | % | |||
| Total miles (in thousands) | 18,521 | 11,075 | |||||
| Intermodal Segment: | |||||||
| Revenue (in thousands) | $ | 17,201 | $ | 20,392 | |||
| Loads | 8,696 | 9,367 | |||||
| Average tractors | 76 | 96 | |||||
| Brokerage Segment: | |||||||
| Revenue (in thousands) | $ | 17,577 | $ | 17,040 | |||
| Loads | 12,951 | 10,850 | |||||
| At March 31, 2016 and March 31, 2015: | |||||||
| Total tractors(1) | 2,784 | 2,422 | |||||
| Average age of company tractors (in years) | 1.6 | 1.8 | |||||
| Total trailers | 4,725 | 4,327 | |||||
| Average age of company trailers (in years) | 2.7 | 2.6 | |||||
| Ratio of trailers to tractors(1) | 1.7 | 1.8 | |||||
| Three Months | |||||||
| Ended March 31, | |||||||
| (In thousands) | 2016 | 2015 | |||||
| Net cash provided by operating activities | $ | 55,065 | $ | 53,162 | |||
| Net cash used for investing activities | 9,553 | 6,762 | |||||
| Net cash used for financing activities | 44,790 | 24, 823 | |||||
| Weighted average shares outstanding: | |||||||
| Basic | 32,454 | 33,458 | |||||
| Diluted | 32,639 | 33,761 | |||||
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 79 and 54 tractors as of March 31, 2016 and 2015, respectively.
(2) Represents the percentage of miles for which the company is not compensated.