Marten Transport Announces First Quarter Results
April 20 2017 - 4:01PM
Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income
of $8.2 million, or 25 cents per diluted share, for each of the
quarters ended March 31, 2017 and March 31, 2016.
Operating revenue improved 6.9% to $173.2
million for the first quarter of 2017 from $161.9 million for the
first quarter of 2016. Operating revenue, net of fuel
surcharges, improved 3.1% to $156.6 million for the 2017 quarter
from $151.9 million for the 2016 quarter. Fuel surcharge
revenue increased to $16.6 million for the first quarter of 2017
from $10.0 million for the 2016 quarter.
Operating expenses as a percentage of operating
revenue was 92.0% for the first quarter of 2017 and 91.3% for the
first quarter of 2016. Operating expenses as a percentage of
operating revenue, with both amounts net of fuel surcharges, was
91.1% for the 2017 quarter compared with 90.7% for the 2016
quarter.
Chairman and Chief Executive Officer Randolph L.
Marten said, “We are encouraged by our continuing earnings strength
and by our organic growth in operating revenue across all four of
our business segments, despite the continuing challenge of an
unfavorable freight environment. This was also the ninth
quarter in a row with year-over-year improvement in operating
income for each of our dedicated, intermodal and brokerage
segments. These top- and bottom-line results highlight the
continued smart and disciplined execution of our unique
multifaceted business model by our dedicated and experienced
workforce. We are confident in our ability to capitalize
profitably on further growth opportunities across all of our
business units.”
Marten Transport, with headquarters in Mondovi,
Wis., 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 925 dry trailers operating as
of March 31, 2017. 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 include our 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, 2016. 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) |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
9,065 |
|
|
$ |
488 |
|
|
Receivables: |
|
|
|
|
|
|
|
|
|
Trade, net |
|
|
69,808 |
|
|
|
69,199 |
|
|
Other |
|
|
3,714 |
|
|
|
4,436 |
|
|
Prepaid expenses and other |
|
|
17,102 |
|
|
|
19,307 |
|
|
Total current assets |
|
|
99,689 |
|
|
|
93,430 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
|
Revenue equipment, buildings and land, |
|
|
|
|
|
|
|
|
|
office equipment and other |
|
|
768,856 |
|
|
|
759,553 |
|
|
Accumulated depreciation |
|
|
(209,226 |
) |
|
|
(201,728 |
) |
|
Net property and equipment |
|
|
559,630 |
|
|
|
557,825 |
|
|
Other assets |
|
|
1,966 |
|
|
|
2,493 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
661,285 |
|
|
$ |
653,748 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
43,981 |
|
|
$ |
41,230 |
|
|
Insurance and claims accruals |
|
|
20,582 |
|
|
|
19,440 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
64,563 |
|
|
|
60,670 |
|
|
Long-term debt |
|
|
- |
|
|
|
7,886 |
|
|
Deferred income taxes |
|
|
151,270 |
|
|
|
147,854 |
|
|
Total liabilities |
|
|
215,833 |
|
|
|
216,410 |
|
|
|
|
|
|
|
|
|
|
|
|
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; 32,684,955 shares |
|
|
|
|
|
at March 31, 2017, and 32,634,915 shares at |
|
|
|
|
|
December 31, 2016, issued and outstanding |
|
|
327 |
|
|
|
326 |
|
|
Additional paid-in capital |
|
|
74,891 |
|
|
|
74,175 |
|
|
Retained earnings |
|
|
370,234 |
|
|
|
362,837 |
|
|
Total stockholders’ equity |
|
|
445,452 |
|
|
|
437,338 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
661,285 |
|
|
$ |
653,748 |
|
|
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT, LTD. |
|
|
CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
Ended March 31, |
|
|
(In
thousands, except per share information) |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue |
|
|
|
|
|
$ |
173,159 |
|
|
$ |
161,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries,
wages and benefits |
|
|
|
|
|
|
56,400 |
|
|
|
54,830 |
|
|
Purchased
transportation |
|
|
|
|
|
|
29,362 |
|
|
|
28,035 |
|
|
Fuel and
fuel taxes |
|
|
|
|
|
|
25,956 |
|
|
|
19,630 |
|
|
Supplies
and maintenance |
|
|
|
|
|
|
10,990 |
|
|
|
10,499 |
|
|
Depreciation |
|
|
|
|
|
|
21,383 |
|
|
|
20,047 |
|
|
Operating
taxes and licenses |
|
|
|
|
|
|
2,247 |
|
|
|
2,185 |
|
|
Insurance
and claims |
|
|
|
|
|
|
8,914 |
|
|
|
7,355 |
|
|
Communications and utilities |
|
|
|
|
|
|
1,581 |
|
|
|
1,620 |
|
|
Gain on
disposition of revenue equipment |
|
|
|
|
|
|
(1,103 |
) |
|
|
(1,434 |
) |
|
Other |
|
|
|
|
|
|
3,491 |
|
|
|
5,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
|
|
|
|
159,221 |
|
|
|
147,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
13,938 |
|
|
|
14,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
141 |
|
|
|
215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
|
|
|
|
13,797 |
|
|
|
13,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
|
|
5,583 |
|
|
|
5,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
$ |
8,214 |
|
|
$ |
8,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
|
|
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share |
|
|
|
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
2017 |
|
|
|
2016 |
|
|
2017 vs. 2016 |
|
2017 vs. 2016 |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
Truckload
revenue, net of fuel |
|
|
|
|
|
|
|
|
|
surcharge
revenue |
|
$ |
84,811 |
|
|
$ |
82,942 |
|
|
$ |
1,869 |
|
|
2.3 |
% |
|
Truckload
fuel surcharge revenue |
|
|
10,847 |
|
|
|
7,112 |
|
|
|
3,735 |
|
|
52.5 |
|
|
Total
Truckload revenue |
|
|
95,658 |
|
|
|
90,054 |
|
|
|
5,604 |
|
|
6.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated
revenue, net of fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
surcharge
revenue |
|
|
36,899 |
|
|
|
35,510 |
|
|
|
1,389 |
|
|
3.9 |
|
|
Dedicated
fuel surcharge revenue |
|
|
3,378 |
|
|
|
1,587 |
|
|
|
1,791 |
|
|
112.9 |
|
|
Total
Dedicated revenue |
|
|
40,277 |
|
|
|
37,097 |
|
|
|
3,180 |
|
|
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal revenue, net of fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
surcharge
revenue |
|
|
16,811 |
|
|
|
15,854 |
|
|
|
957 |
|
|
6.0 |
|
|
Intermodal fuel surcharge revenue |
|
|
2,375 |
|
|
|
1,347 |
|
|
|
1,028 |
|
|
76.3 |
|
|
Total
Intermodal revenue |
|
|
19,186 |
|
|
|
17,201 |
|
|
|
1,985 |
|
|
11.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage
revenue |
|
|
18,038 |
|
|
|
17,577 |
|
|
|
461 |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating revenue |
|
$ |
173,159 |
|
|
$ |
161,929 |
|
|
$ |
11,230 |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
$ |
5,974 |
|
|
$ |
6,940 |
|
|
$ |
(966 |
) |
|
(13.9 |
)% |
|
Dedicated |
|
|
4,487 |
|
|
|
4,324 |
|
|
|
163 |
|
|
3.8 |
|
|
Intermodal |
|
|
2,149 |
|
|
|
1,929 |
|
|
|
220 |
|
|
11.4 |
|
|
Brokerage |
|
|
1,328 |
|
|
|
932 |
|
|
|
396 |
|
|
42.5 |
|
|
Total
operating income |
|
$ |
13,938 |
|
|
$ |
14,125 |
|
|
$ |
(187 |
) |
|
(1.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
|
93.8 |
% |
|
|
92.3 |
% |
|
|
|
|
|
Dedicated |
|
|
88.9 |
|
|
|
88.3 |
|
|
|
|
|
|
Intermodal |
|
|
88.8 |
|
|
|
88.8 |
|
|
|
|
|
|
Brokerage |
|
|
92.6 |
|
|
|
94.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating ratio |
|
|
92.0 |
% |
|
|
91.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT, LTD. |
OPERATING STATISTICS |
(Unaudited) |
|
|
|
Three Months |
|
|
Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
Truckload Segment: |
|
|
|
Revenue (in thousands) |
|
$ |
95,658 |
|
$ |
90,054 |
|
Average revenue, net of fuel surcharges, per tractor
per week(1) |
|
$ |
3,416 |
|
$ |
3,366 |
|
Average tractors(1) |
|
|
1,931 |
|
|
1,896 |
|
Average miles per trip |
|
|
615 |
|
|
642 |
|
Non-revenue miles percentage(2) |
|
|
9.6 |
% |
|
9.6 |
% |
Total miles (in thousands) |
|
|
46,060 |
|
|
44,471 |
|
|
|
|
|
Dedicated Segment: |
|
|
|
Revenue (in thousands) |
|
$ |
40,277 |
|
$ |
37,097 |
|
Average revenue, net of fuel surcharges, per
tractor per week(1) |
|
$ |
3,462 |
|
$ |
3,375 |
|
Average tractors(1) |
|
|
829 |
|
|
809 |
|
Average miles per trip |
|
|
299 |
|
|
314 |
|
Non-revenue miles percentage(2) |
|
|
0.7 |
% |
|
0.8 |
% |
Total miles (in thousands) |
|
|
18,579 |
|
|
18,521 |
|
|
|
|
|
|
|
|
|
Intermodal Segment: |
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
19,186 |
|
$ |
17,201 |
|
Loads |
|
|
9,584 |
|
|
8,696 |
|
Average tractors |
|
|
77 |
|
|
76 |
|
|
|
|
|
|
|
|
|
Brokerage Segment: |
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
18,038 |
|
$ |
17,577 |
|
Loads |
|
|
13,354 |
|
|
12,951 |
|
|
|
|
|
|
|
|
|
At
March 31, 2017 and March 31, 2016: |
|
|
|
|
|
|
|
Total
tractors(1) |
|
|
2,827 |
|
|
2,784 |
|
Average
age of company tractors (in years) |
|
|
1.5 |
|
|
1.6 |
|
Total
trailers |
|
|
4,955 |
|
|
4,725 |
|
Average
age of company trailers (in years) |
|
|
2.8 |
|
|
2.7 |
|
Ratio of
trailers to tractors(1) |
|
|
1.8 |
|
|
1.7 |
|
|
|
|
|
|
|
Three Months |
|
|
Ended March 31, |
(In
thousands) |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
Net
cash provided by operating activities |
|
$ |
37,674 |
|
$ |
55,065 |
|
Net
cash used for investing activities |
|
|
(20,962 |
) |
|
(9,553 |
) |
Net
cash used for financing activities |
|
|
(8,135 |
) |
|
(44,790 |
) |
|
|
|
|
Weighted average shares outstanding: |
|
|
|
Basic |
|
|
32,655 |
|
|
32,454 |
|
Diluted |
|
|
32,843 |
|
|
32,639 |
|
|
|
|
|
(1) Includes tractors driven by both
company-employed drivers and independent contractors.
Independent contractors provided 67 and 79 tractors as of March 31,
2017 and 2016,
respectively.
(2) Represents the percentage of miles for which
the company is not compensated.
CONTACTS: Tim Kohl, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216
Marten Transport (NASDAQ:MRTN)
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