Marten Transport Announces First Quarter Results


MONDOVI, Wis., April 18, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $9.6 million, or 12 cents per diluted share, for the first quarter ended March 31, 2024, compared with $22.5 million, or 28 cents per diluted share, for the first quarter of 2023.

Operating revenue was $249.7 million for the first quarter of 2024 compared with $298.0 million for the first quarter of 2023. Excluding fuel surcharges, operating revenue was $215.7 million for the 2024 quarter compared with $254.9 million for the 2023 quarter. Fuel surcharge revenue decreased to $33.9 million for the 2024 quarter from $43.1 million for the 2023 quarter.

Operating income was $12.3 million for the first quarter of 2024 compared with $29.0 million for the first quarter of 2023.

Operating expenses as a percentage of operating revenue were 95.1% for the 2024 quarter and 90.3% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 94.3% for the 2024 quarter and 88.6% for the 2023 quarter.

Executive Chairman Randolph L. Marten stated, “The freight market recession’s oversupply and weak demand, inflationary operating costs and cumulative impact of freight rate reductions and related freight network disruptions continue to significantly pressure our earnings. The value of our unique multifaceted business model is highlighted by the operating results for our dedicated and brokerage operations in the first quarter. Our operating results improved throughout the quarter after earning 2 cents per share in January, which was also impacted by widespread harsh winter weather.”

“We remain focused on minimizing the freight market’s impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market necessarily recovers from its current recessionary late stages. To that end, we have not agreed to rate reductions since last August.”

Current Investor Presentation

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company offers service in the United States, Mexico and Canada, 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 Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACTS:

Tim Kohl, Chief Executive Officer, Doug Petit, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.



MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
 March 31,
 December 31,
(In thousands, except share information)2024
 2023
 (Unaudited)     
ASSETS       
Current assets:       
Cash and cash equivalents$73,730  $53,213 
Receivables:       
Trade, net 105,247   105,501 
Other 10,380   10,356 
Prepaid expenses and other 24,665   27,512 
Total current assets 214,022   196,582 
        
Property and equipment:       
Revenue equipment, buildings and land, office equipment and other 1,155,649   1,162,336 
Accumulated depreciation (378,151)  (370,103)
Net property and equipment 777,498   792,233 
Other noncurrent assets 1,499   1,524 
Total assets$993,019  $990,339 
        
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current liabilities:       
Accounts payable$37,728  $36,516 
Insurance and claims accruals 44,297   47,017 
Accrued and other current liabilities 29,417   26,709 
Total current liabilities 111,442   110,242 
Deferred income taxes 118,946   122,462 
Noncurrent operating lease liabilities 202   249 
Total liabilities 230,590   232,953 
        
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; 81,362,709 shares at March 31, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding 814   813 
Additional paid-in capital 50,066   49,789 
Retained earnings 711,549   706,784 
Total stockholders’ equity 762,429   757,386 
Total liabilities and stockholders’ equity$993,019  $990,339 
        



MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Three Months
 
   
 Ended March 31,
 
(In thousands, except per share information)2024  2023 
        
Operating revenue$249,672  $298,023 
        
Operating expenses (income):       
Salaries, wages and benefits 88,762   98,516 
Purchased transportation 41,814   54,103 
Fuel and fuel taxes 39,561   46,796 
Supplies and maintenance 16,070   15,987 
Depreciation 28,527   29,530 
Operating taxes and licenses 2,575   2,768 
Insurance and claims 11,657   15,070 
Communications and utilities 2,371   2,531 
Gain on disposition of revenue equipment (1,171)  (5,246)
Other 7,256   8,958 
        
Total operating expenses 237,422   269,013 
        
Operating income 12,250   29,010 
        
Other (796)  (844)
        
Income before income taxes 13,046   29,854 
        
Income taxes expense 3,400   7,352 
        
Net income$9,646  $22,502 
        
Basic earnings per common share$0.12  $0.28 
        
Diluted earnings per common share$0.12  $0.28 
        
Dividends declared per common share$0.06  $0.06 
        



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)2024  2023  2024 vs. 2023  2024 vs. 2023 
Operating revenue:               
Truckload revenue, net of fuel surcharge revenue$95,022  $102,320  $(7,298)  (7.1)%
Truckload fuel surcharge revenue 16,529   18,306   (1,777)  (9.7)
Total Truckload revenue 111,551   120,626   (9,075)  (7.5)
                
Dedicated revenue, net of fuel surcharge revenue 71,738   86,831   (15,093)  (17.4)
Dedicated fuel surcharge revenue 14,722   19,618   (4,896)  (25.0)
Total Dedicated revenue 86,460   106,449   (19,989)  (18.8)
                
Intermodal revenue, net of fuel surcharge revenue 13,281   23,401   (10,120)  (43.2)
Intermodal fuel surcharge revenue 2,691   5,188   (2,497)  (48.1)
Total Intermodal revenue 15,972   28,589   (12,617)  (44.1)
                
Brokerage revenue 35,689   42,359   (6,670)  (15.7)
                
Total operating revenue$249,672  $298,023  $(48,351)  (16.2)%
                
Operating income/(loss):               
Truckload$489  $10,041  $(9,552)  (95.1)%
Dedicated 9,258   13,684   (4,426)  (32.3)
Intermodal (194)  787   (981)  (124.7)
Brokerage 2,697   4,498   (1,801)  (40.0)
Total operating income$12,250  $29,010  $(16,760)  (57.8)%
                
Operating ratio:               
Truckload 99.6%  91.7%        
Dedicated 89.3   87.1         
Intermodal 101.2   97.2         
Brokerage 92.4   89.4         
Consolidated operating ratio 95.1%  90.3%        
                
Operating ratio, net of fuel surcharges:               
Truckload 99.5%  90.2%        
Dedicated 87.1   84.2         
Intermodal 101.5   96.6         
Brokerage 92.4   89.4         
Consolidated operating ratio, net of fuel surcharges 94.3%  88.6%        



MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
 
 Three Months
 Ended March 31,
 2024  2023 
Truckload Segment:       
Revenue (in thousands)$111,551  $120,626 
Average revenue, net of fuel surcharges, per tractor per week(1)$3,996  $4,571 
Average tractors(1) 1,830   1,741 
Average miles per trip 537   510 
Non-revenue miles percentage(2) 12.6%  12.7%
Total miles (in thousands) 39,703   38,237 
        
Dedicated Segment:       
Revenue (in thousands)$86,460  $106,449 
Average revenue, net of fuel surcharges, per tractor per week(1)$3,781  $3,960 
Average tractors(1) 1,459   1,705 
Average miles per trip 329   333 
Non-revenue miles percentage(2) 1.1%  1.1%
Total miles (in thousands) 29,080   34,076 
        
Intermodal Segment:       
Revenue (in thousands)$15,972  $28,589 
Loads 4,589   7,277 
Average tractors 126   180 
        
Brokerage Segment:       
Revenue (in thousands)$35,689  $42,359 
Loads 20,061   20,688 
        
At March 31, 2024 and March 31, 2023:       
Total tractors(1) 3,406   3,571 
Average age of company tractors (in years) 1.9   1.7 
Total trailers 5,619   5,741 
Average age of company trailers (in years) 4.8   4.1 
Ratio of trailers to tractors(1) 1.6   1.6 
Total refrigerated containers 787   802 


 Three Months
 Ended March 31,
(In thousands)2024  2023 
        
Net cash provided by operating activities$45,722  $49,232 
Net cash (used for) investing activities (20,249)  (28,280)
Net cash (used for) financing activities (4,956)  (5,264)
        
Weighted average shares outstanding:       
Basic 81,350   81,210 
Diluted 81,437   81,376 


(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 96 and 95 tractors as of March 31, 2024 and 2023, respectively. 
  
(2) Represents the percentage of miles for which the company is not compensated.