MONDOVI, Wis., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter in its history, with the previous record for each set in this year’s second quarter. For the third quarter ended September 30, 2019, net income improved 8.7% to $16.6 million, or 30 cents per diluted share, from $15.3 million, or 28 cents per diluted share, for the third quarter of 2018. For the first nine months of 2019, net income improved 15.4% to $45.3 million, or 82 cents per diluted share, from $39.3 million, or 71 cents per diluted share, for the first nine months of 2018. Earnings for the 2019 quarter include an additional income tax benefit of $1.4 million, or 2.5 cents per diluted share, while the 2018 quarter’s earnings include an additional income tax benefit of $493,000, or one cent per diluted share, net of related operating expenses.
| Operating Results Comparison | |||||||||||
| Net income and diluted earnings per common share used to calculate the TTM percentage change below exclude a $56.5 million deferred income tax benefit in the fourth quarter of 2017. | |||||||||||
| Percentage | Percentage | Percentage | |||||||||
| Change | Change | Change | |||||||||
| Three Months | Nine Months | Trailing Twelve | |||||||||
| Ended | Ended | Months Ended | |||||||||
| September 30, | September 30, | September 30, | |||||||||
| 2019 vs. 2018 | 2019 vs. 2018 | 2019 vs. 2018 | |||||||||
| Operating revenue | 7.7 | % | 7.3 | % | 8.3 | % | |||||
| Operating income | 5.5 | % | 13.6 | % | 18.6 | % | |||||
| Net income | 8.7 | % | 15.4 | % | 27.5 | % | |||||
| Diluted earnings per common share | 8.8 | % | 15.5 | % | 27.6 | % | |||||
Operating revenue improved 7.7% to a record $215.0 million for the third quarter of 2019 from $199.6 million for the third quarter of 2018, and improved 7.3% to $626.1 million for the first nine months of 2019 from $583.6 million for the first nine months of 2018. For the trailing twelve months ended September 30, 2019, operating revenue improved 8.3% to $830.0 million from $766.4 million for the similar period ended September 30, 2018. Excluding fuel surcharges, operating revenue improved 10.0% to $188.9 million for the 2019 quarter from $171.8 million for the 2018 quarter, and improved 8.9% to $549.7 million for the first nine months of 2019 from $504.9 million for the first nine months of 2018. Fuel surcharge revenue decreased to $26.1 million for the 2019 quarter from $27.9 million for the 2018 quarter, and decreased to $76.4 million for the first nine months of 2019 from $78.8 million for the first nine months of 2018.
Operating income improved 5.5% to a record $20.0 million for the third quarter of 2019 from $19.0 million for the third quarter of 2018, and improved 13.6% to $57.7 million for the first nine months of 2019 from $50.8 million for the first nine months of 2018. For the trailing twelve months ended September 30, 2019, operating income improved 18.6% to $77.2 million from $65.1 million for the similar period ended September 30, 2018.
Operating expenses as a percentage of operating revenue were 90.7% for the third quarter of 2019, compared with 90.5% for the third quarter of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 89.4% for the 2019 quarter, compared with 88.9% for the 2018 quarter.
Operating expenses as a percentage of operating revenue improved to 90.8% for the first nine months of 2019 from 91.3% for the first nine months of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.5% from 89.9%.
Operating expenses as a percentage of operating revenue improved to 90.7% for the trailing twelve months ended September 30, 2019 from 91.5% for the similar period ended September 30, 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.4% from 90.3%.
Chairman and Chief Executive Officer Randolph L. Marten said, “We earned the highest operating revenue and operating income for any quarter in our history, exceeding the previous record for each we produced in this year’s second quarter. Our talented people consistently deliver this profitable growth through the disciplined execution of our unique multifaceted business model across our diverse customer base - and overcame the negative impact of the recent hurricane and flooding on our Southeast and Texas operations during the third quarter. We added 43 Truckload and 41 Dedicated tractors this quarter, increasing our year-to-date growth to 149 Truckload and 230 Dedicated tractors, a combined 14.2% fleet growth since the beginning of the year. We expect to continue expanding our capacity to service our customers by offering the best jobs for the industry’s best drivers.”
Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of truck-based transportation capabilities across the Company’s five distinct business platforms - Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico. Marten is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,718 dry vans operating as of September 30, 2019. The Company 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 include a discussion of the Company’s prospects for future growth and 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, 2018. 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
| September 30, | December 31, | |||||||
| (In thousands, except share information) | 2019 | 2018 | ||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 40,480 | $ | 56,763 | ||||
| Receivables: | ||||||||
| Trade, net | 85,149 | 83,033 | ||||||
| Other | 3,694 | 3,808 | ||||||
| Prepaid expenses and other | 18,576 | 19,924 | ||||||
| Total current assets | 147,899 | 163,528 | ||||||
| Property and equipment: | ||||||||
| Revenue equipment, buildings and land, office equipment and other | 891,326 | 816,430 | ||||||
| Accumulated depreciation | (261,474 | ) | (228,200 | ) | ||||
| Net property and equipment | 629,852 | 588,230 | ||||||
| Other noncurrent assets | 3,204 | 2,146 | ||||||
| Total assets | $ | 780,955 | $ | 753,904 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 27,777 | $ | 15,704 | ||||
| Insurance and claims accruals | 30,647 | 28,103 | ||||||
| Accrued and other current liabilities | 26,506 | 28,166 | ||||||
| Total current liabilities | 84,930 | 71,973 | ||||||
| Deferred income taxes | 112,454 | 105,977 | ||||||
| Noncurrent operating lease liabilities | 714 | - | ||||||
| Total liabilities | 198,098 | 177,950 | ||||||
| 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; 192,000,000 shares authorized; 54,687,065 shares at September 30, 2019, and 54,466,691 shares at December 31, 2018, issued and outstanding | 547 | 545 | ||||||
| Additional paid-in capital | 78,840 | 76,814 | ||||||
| Retained earnings | 503,470 | 498,595 | ||||||
| Total stockholders’ equity | 582,857 | 575,954 | ||||||
| Total liabilities and stockholders’ equity | $ | 780,955 | $ | 753,904 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months | Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| (In thousands, except per share information) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Operating revenue | $ | 214,973 | $ | 199,649 | $ | 626,086 | $ | 583,633 | ||||||||
| Operating expenses (income): | ||||||||||||||||
| Salaries, wages and benefits | 69,312 | 64,051 | 201,449 | 186,123 | ||||||||||||
| Purchased transportation | 40,435 | 35,867 | 117,352 | 105,941 | ||||||||||||
| Fuel and fuel taxes | 31,275 | 31,658 | 89,904 | 92,444 | ||||||||||||
| Supplies and maintenance | 12,116 | 10,574 | 34,739 | 31,261 | ||||||||||||
| Depreciation | 24,290 | 22,272 | 70,295 | 66,280 | ||||||||||||
| Operating taxes and licenses | 2,651 | 2,404 | 7,422 | 7,055 | ||||||||||||
| Insurance and claims | 9,618 | 8,567 | 29,355 | 27,798 | ||||||||||||
| Communications and utilities | 1,901 | 1,663 | 5,801 | 4,993 | ||||||||||||
| Gain on disposition of revenue equipment | (2,559 | ) | (1,835 | ) | (5,337 | ) | (5,206 | ) | ||||||||
| Other | 5,900 | 5,435 | 17,395 | 16,134 | ||||||||||||
| Total operating expenses | 194,939 | 180,656 | 568,375 | 532,823 | ||||||||||||
| Operating income | 20,034 | 18,993 | 57,711 | 50,810 | ||||||||||||
| Other | (255 | ) | (120 | ) | (928 | ) | (447 | ) | ||||||||
| Income before income taxes | 20,289 | 19,113 | 58,639 | 51,257 | ||||||||||||
| Income taxes expense | 3,702 | 3,856 | 13,316 | 11,967 | ||||||||||||
| Net income | $ | 16,587 | $ | 15,257 | $ | 45,323 | $ | 39,290 | ||||||||
| Basic earnings per common share | $ | 0.30 | $ | 0.28 | $ | 0.83 | $ | 0.72 | ||||||||
| Diluted earnings per common share | $ | 0.30 | $ | 0.28 | $ | 0.82 | $ | 0.71 | ||||||||
| Dividends declared per common share | $ | 0.68 | $ | 0.025 | $ | 0.74 | $ | 0.075 | ||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
| Dollar | Percentage | |||||||||||||||
| Change | Change | |||||||||||||||
| Three Months | Three Months | Three Months | ||||||||||||||
| Ended | Ended | Ended | ||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2019 vs. 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 82,931 | $ | 80,563 | $ | 2,368 | 2.9 | % | ||||||||
| Truckload fuel surcharge revenue | 12,056 | 13,357 | (1,301 | ) | (9.7 | ) | ||||||||||
| Total Truckload revenue | 94,987 | 93,920 | 1,067 | 1.1 | ||||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 59,281 | 48,500 | 10,781 | 22.2 | ||||||||||||
| Dedicated fuel surcharge revenue | 11,053 | 10,291 | 762 | 7.4 | ||||||||||||
| Total Dedicated revenue | 70,334 | 58,791 | 11,543 | 19.6 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 19,336 | 21,735 | (2,399 | ) | (11.0 | ) | ||||||||||
| Intermodal fuel surcharge revenue | 2,961 | 4,204 | (1,243 | ) | (29.6 | ) | ||||||||||
| Total Intermodal revenue | 22,297 | 25,939 | (3,642 | ) | (14.0 | ) | ||||||||||
| Brokerage revenue | 27,355 | 20,999 | 6,356 | 30.3 | ||||||||||||
| Total operating revenue | $ | 214,973 | $ | 199,649 | $ | 15,324 | 7.7 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 6,956 | $ | 10,026 | $ | (3,070 | ) | (30.6 | )% | |||||||
| Dedicated | 9,920 | 5,249 | 4,671 | 89.0 | ||||||||||||
| Intermodal | 1,210 | 2,507 | (1,297 | ) | (51.7 | ) | ||||||||||
| Brokerage | 1,948 | 1,211 | 737 | 60.9 | ||||||||||||
| Total operating income | $ | 20,034 | $ | 18,993 | $ | 1,041 | 5.5 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 92.7 | % | 89.3 | % | ||||||||||||
| Dedicated | 85.9 | 91.1 | ||||||||||||||
| Intermodal | 94.6 | 90.3 | ||||||||||||||
| Brokerage | 92.9 | 94.2 | ||||||||||||||
| Consolidated operating ratio | 90.7 | % | 90.5 | % | ||||||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
| Dollar | Percentage | |||||||||||||||
| Change | Change | |||||||||||||||
| Nine Months | Nine Months | Nine Months | ||||||||||||||
| Ended | Ended | Ended | ||||||||||||||
| September 30, | September 30, | September 30, | ||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2019 vs. 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 246,313 | $ | 241,304 | $ | 5,009 | 2.1 | % | ||||||||
| Truckload fuel surcharge revenue | 36,418 | 40,037 | (3,619 | ) | (9.0 | ) | ||||||||||
| Total Truckload revenue | 282,731 | 281,341 | 1,390 | 0.5 | ||||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 164,365 | 138,096 | 26,269 | 19.0 | ||||||||||||
| Dedicated fuel surcharge revenue | 30,704 | 26,499 | 4,205 | 15.9 | ||||||||||||
| Total Dedicated revenue | 195,069 | 164,595 | 30,474 | 18.5 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 56,618 | 63,834 | (7,216 | ) | (11.3 | ) | ||||||||||
| Intermodal fuel surcharge revenue | 9,253 | 12,227 | (2,974 | ) | (24.3 | ) | ||||||||||
| Total Intermodal revenue | 65,871 | 76,061 | (10,190 | ) | (13.4 | ) | ||||||||||
| Brokerage revenue | 82,415 | 61,636 | 20,779 | 33.7 | ||||||||||||
| Total operating revenue | $ | 626,086 | $ | 583,633 | $ | 42,453 | 7.3 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 22,556 | $ | 25,530 | $ | (2,974 | ) | (11.6 | )% | |||||||
| Dedicated | 23,135 | 13,321 | 9,814 | 73.7 | ||||||||||||
| Intermodal | 5,140 | 7,997 | (2,857 | ) | (35.7 | ) | ||||||||||
| Brokerage | 6,880 | 3,962 | 2,918 | 73.6 | ||||||||||||
| Total operating income | $ | 57,711 | $ | 50,810 | $ | 6,901 | 13.6 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 92.0 | % | 90.9 | % | ||||||||||||
| Dedicated | 88.1 | 91.9 | ||||||||||||||
| Intermodal | 92.2 | 89.5 | ||||||||||||||
| Brokerage | 91.7 | 93.6 | ||||||||||||||
| Consolidated operating ratio | 90.8 | % | 91.3 | % | ||||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
| Three Months | Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Truckload Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 94,987 | $ | 93,920 | $ | 282,731 | $ | 281,341 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,723 | $ | 3,925 | $ | 3,818 | $ | 3,797 | ||||||||
| Average tractors(1) | 1,695 | 1,561 | 1,654 | 1,629 | ||||||||||||
| Average miles per trip | 545 | 564 | 545 | 578 | ||||||||||||
| Non-revenue miles percentage(2) | 11.8 | % | 10.4 | % | 11.4 | % | 8.9 | % | ||||||||
| Total miles (in thousands) | 39,326 | 37,259 | 115,639 | 117,343 | ||||||||||||
| Dedicated Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 70,334 | $ | 58,791 | $ | 195,069 | $ | 164,595 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,392 | $ | 3,287 | $ | 3,412 | $ | 3,279 | ||||||||
| Average tractors(1) | 1,329 | 1,123 | 1,235 | 1,080 | ||||||||||||
| Average miles per trip | 312 | 317 | 316 | 305 | ||||||||||||
| Non-revenue miles percentage(2) | 0.7 | % | 0.6 | % | 0.7 | % | 0.8 | % | ||||||||
| Total miles (in thousands) | 28,859 | 24,362 | 79,700 | 69,244 | ||||||||||||
| Intermodal Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 22,297 | $ | 25,939 | $ | 65,871 | $ | 76,061 | ||||||||
| Loads | 8,897 | 10,573 | 26,578 | 31,932 | ||||||||||||
| Average tractors | 87 | 89 | 85 | 87 | ||||||||||||
| Brokerage Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 27,355 | $ | 20,999 | $ | 82,415 | $ | 61,636 | ||||||||
| Loads | 16,059 | 12,781 | 47,510 | 36,790 | ||||||||||||
| At September 30, 2019 and September 30, 2018: | ||||||||||||||||
| Total tractors(1) | 3,137 | 2,751 | ||||||||||||||
| Average age of company tractors (in years) | 1.8 | 1.6 | ||||||||||||||
| Total trailers | 5,562 | 5,397 | ||||||||||||||
| Average age of company trailers (in years) | 2.6 | 2.6 | ||||||||||||||
| Ratio of trailers to tractors(1) | 1.8 | 2.0 | ||||||||||||||
| Three Months | Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| (In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net cash provided by operating activities | $ | 46,101 | $ | 44,722 | $ | 119,610 | $ | 112,097 | ||||||||
| Net cash (used for) investing activities | (51,900 | ) | (29,665 | ) | (96,078 | ) | (88,842 | ) | ||||||||
| Net cash (used for) financing activities | (36,513 | ) | (1,321 | ) | (39,815 | ) | (3,307 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 54,655 | 54,661 | 54,608 | 54,615 | ||||||||||||
| Diluted | 55,134 | 55,194 | 55,078 | 55,151 | ||||||||||||
| (1) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 75 and 50 tractors as of September 30, 2019 and 2018, respectively. | |
| (2) | Represents the percentage of miles for which the company is not compensated. | |