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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Marten Transport Announces Third Quarter Results

October 17, 2019

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. Percen Percent Percent tage age age Change Change Change Three Nine Trailin Months Months g Twelve Ended Ended Months Ended Septem Septemb Septemb ber er 30, er 30, 30, 2019 2019 2019 vs. vs. vs. 2018 2018 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.

CONTACTS: Tim Kohl, 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

September December 30, 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 547 545 and outstanding 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 Percent age Change Change Three Months Three Three Months Months Ended Ended Ended September 30, September Septemb 30, er 30, ---------------------- 2019 vs. 2019 (Dollars in thousands) 2019 2018 2018 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 Percent age Change Change Nine Months Nine Nine Months Months Ended Ended Ended September 30, September Septemb 30, er 30, ---------------------- 2019 vs. 2019 (Dollars in thousands) 2019 2018 2018 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 $ 3,723 $ 3,925 $ 3,818 $ 3,797 week(1) 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 $ 3,392 $ 3,287 $ 3,412 $ 3,279 week(1) 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.