MARTEN TRANSPORT : ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS - Form 8-K

MARTEN TRANSPORT ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS

Reports highest operating revenue and operating income for any quarter and year in Marten's history

MONDOVI, Wis., January 25, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 26.1% improvement in net income to $24.7 million, or 30 cents per diluted share, for the fourth quarter ended December 31, 2021, from $19.6 million, or 24 cents per diluted share, for the fourth quarter of 2020. The fourth-quarter earnings also improved sequentially from 2021 third-quarter net income of $21.3 million, or 26 cents per diluted share. For the year ended December 31, 2021, net income improved 22.9% to $85.4 million, or $1.02 per diluted share, from $69.5 million, or 84 cents per diluted share, for 2020.

Operating Results Comparison
		Percentage			Percentage			Percentage			Percentage
		Increase			Increase			Increase			Increase
		Three Months			Year			Year			Year
		Ended			Ended			Ended			Ended
		December 31,			December 31,			December 31,			December 31,
		2021 vs. 2020			2021 vs. 2020			2020 vs. 2019			2019 vs. 2018
Operating revenue			17.4	%			11.4	%			3.7	%			7.1	%
Operating revenue, net of fuel surcharges			12.5	%			8.3	%			6.8	%			8.6	%
Operating income			20.0	%			19.8	%			21.9	%			8.7	%
Net income			26.1	%			22.9	%			13.8	%			11.0	%

Operating revenue for each of the quarter and year ended December 31, 2021 was the highest amount for any quarter and year in Marten's 76-year history. Operating revenue improved 17.4% to $266.9 million for the fourth quarter of 2021 from $227.3 million for the fourth quarter of 2020, and improved 11.4% to $973.6 million for 2021 from $874.4 million for 2020. Excluding fuel surcharges, operating revenue improved 12.5% to $232.9 million for the 2021 quarter from $207.0 million for the 2020 quarter, and improved 8.3% to $855.9 million for 2021 from $790.6 million for 2020. Fuel surcharge revenue increased to $34.0 million for the 2021 quarter from $20.4 million for the 2020 quarter, and increased to $117.7 million for 2021 from $83.8 million for 2020 due to significantly higher fuel prices.

Operating income for each of the quarter and year ended December 31, 2021 was also the highest amount for any quarter and year in Marten's history. Operating income improved 20.0% to $30.7 million for the fourth quarter of 2021 from $25.6 million for the fourth quarter of 2020. Operating income improved 19.8% to $111.7 million for 2021 from $93.2 million for 2020.

Operating expenses as a percentage of operating revenue improved to 88.5% for the fourth quarter of 2021 from 88.8% for the fourth quarter of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.8% from 87.7%.

Operating expenses as a percentage of operating revenue improved to 88.5% for 2021 from 89.3% for 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0%, the best ratio for any year since Marten became a public company in 1986, from 88.2%.

Executive Chairman Randolph L. Marten stated, "Marten's bright and determined people consistently produce strong profitable growth, to be continued…"

Operating Results throughout the Pandemic - Percentage Increase Over Same Quarter of Prior Year
		Q2 2020			Q3 2020			Q4 2020			Q1 2021			Q2 2021			Q3 2021			Q4 2021
Operating revenue			0.1	%			0.5	%			4.7	%			2.0	%			9.4	%			16.3	%			17.4	%
Operating revenue, net of fuel surcharges			4.7	%			3.8	%			8.8	%			2.5	%			5.0	%			12.8	%			12.5	%
Operating income			26.6	%			21.8	%			36.0	%			33.1	%			12.9	%			16.8	%			20.0	%
Net income			19.4	%			8.8	%			24.5	%			31.3	%			18.1	%			17.9	%			26.1	%

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 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, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. 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 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, 2020 and in Part II, Item 1A of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. 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, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

		December 31,			December 31,
(In thousands, except share information)		2021			2020
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	56,995			$	66,127
Receivables:
Trade, net			99,003				83,426
Other			6,971				4,202
Prepaid expenses and other			23,980				21,903
Total current assets			186,949				175,658
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			956,476				930,123
Accumulated depreciation			(274,199	)			(275,950	)
Net property and equipment			682,277				654,173
Other noncurrent assets			1,464				1,805
Total assets		$	870,690			$	831,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	20,150			$	25,702
Insurance and claims accruals			42,014				39,595
Accrued and other current liabilities			31,395				24,497
Total current liabilities			93,559				89,794
Deferred income taxes			125,163				121,098
Noncurrent operating lease liabilities			291				411
Total liabilities			219,013				211,303
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; 83,034,404 shares at December 31, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding			830				827
Additional paid-in capital			85,718				85,070
Retained earnings			565,129				534,436
Total stockholders' equity			651,677				620,333
Total liabilities and stockholders' equity		$	870,690			$	831,636

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

		Three Months			Year
		Ended December 31,			Ended December 31,
(In thousands, except per share information)		2021			2020			2021			2020
Operating revenue		$	266,876			$	227,333			$	973,644			$	874,374
Operating expenses (income):
Salaries, wages and benefits			88,577				79,121				317,962				300,155
Purchased transportation			54,592				40,937				193,221				154,613
Fuel and fuel taxes			36,435				24,700				131,288				98,133
Supplies and maintenance			11,592				11,314				45,459				47,815
Depreciation			25,964				25,914				102,562				102,893
Operating taxes and licenses			2,498				2,837				10,534				10,840
Insurance and claims			10,649				12,294				41,987				47,454
Communications and utilities			2,030				2,050				8,350				8,011
Gain on disposition of revenue equipment			(4,436	)			(2,834	)			(16,295	)			(8,733	)
Gain on disposition of facility			-				-				-				(1,718	)
Other			8,298				5,442				26,887				21,665
Total operating expenses			236,199				201,775				861,955				781,128
Operating income			30,677				25,558				111,689				93,246
Other			(16	)			(13	)			(43	)			(140	)
Income before income taxes			30,693				25,571				111,732				93,386
Income taxes expense			5,963				5,967				26,304				23,886
Net income		$	24,730			$	19,604			$	85,428			$	69,500
Basic earnings per common share		$	0.30			$	0.24			$	1.03			$	0.84
Diluted earnings per common share		$	0.30			$	0.24			$	1.02			$	0.84
Dividends declared per common share		$	0.04			$	0.54			$	0.66			$	0.633

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Three Months			Three Months			Three Months
		Ended			Ended			Ended
		December 31,			December 31,			December 31,
(Dollars in thousands)		2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	91,848			$	87,460			$	4,388				5.0	%
Truckload fuel surcharge revenue			14,345				8,733				5,612				64.3
Total Truckload revenue			106,193				96,193				10,000				10.4
Dedicated revenue, net of fuel surcharge revenue			73,928				71,313				2,615				3.7
Dedicated fuel surcharge revenue			14,994				9,670				5,324				55.1
Total Dedicated revenue			88,922				80,983				7,939				9.8
Intermodal revenue, net of fuel surcharge revenue			23,275				20,817				2,458				11.8
Intermodal fuel surcharge revenue			4,627				1,959				2,668				136.2
Total Intermodal revenue			27,902				22,776				5,126				22.5
Brokerage revenue			43,859				27,381				16,478				60.2
Total operating revenue		$	266,876			$	227,333			$	39,543				17.4	%
Operating income:
Truckload		$	14,750			$	11,270			$	3,480				30.9	%
Dedicated			8,321				9,900				(1,579	)			(15.9	)
Intermodal			3,328				2,166				1,162				53.6
Brokerage			4,278				2,222				2,056				92.5
Total operating income		$	30,677			$	25,558			$	5,119				20.0	%
Operating ratio:
Truckload			86.1	%			88.3	%
Dedicated			90.6				87.8
Intermodal			88.1				90.5
Brokerage			90.2				91.9
Consolidated operating ratio			88.5	%			88.8	%

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Year			Year			Year
		Ended			Ended			Ended
		December 31,			December 31,			December 31,
(Dollars in thousands)		2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	346,289			$	342,357			$	3,932				1.1	%
Truckload fuel surcharge revenue			50,377				36,791				13,586				36.9
Total Truckload revenue			396,666				379,148				17,518				4.6
Dedicated revenue, net of fuel surcharge revenue			276,883				271,550				5,333				2.0
Dedicated fuel surcharge revenue			52,559				38,234				14,325				37.5
Total Dedicated revenue			329,442				309,784				19,658				6.3
Intermodal revenue, net of fuel surcharge revenue			87,468				79,944				7,524				9.4
Intermodal fuel surcharge revenue			14,777				8,789				5,988				68.1
Total Intermodal revenue			102,245				88,733				13,512				15.2
Brokerage revenue			145,291				96,709				48,582				50.2
Total operating revenue		$	973,644			$	874,374			$	99,270				11.4	%
Operating income:
Truckload		$	51,032			$	39,637			$	11,395				28.7	%
Dedicated			36,395				40,909				(4,514	)			(11.0	)
Intermodal			9,479				5,730				3,749				65.4
Brokerage			14,783				6,970				7,813				112.1
Total operating income		$	111,689			$	93,246			$	18,443				19.8	%
Operating ratio:
Truckload			87.1	%			89.5	%
Dedicated			89.0				86.8
Intermodal			90.7				93.5
Brokerage			89.8				92.8
Consolidated operating ratio			88.5	%			89.3	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

		Three Months			Year
		Ended December 31,			Ended December 31,
		2021			2020			2021			2020
Truckload Segment:
Revenue (in thousands)		$	106,193			$	96,193			$	396,666			$	379,148
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,663			$	4,116			$	4,315			$	3,926
Average tractors(1)			1,499				1,617				1,539				1,668
Average miles per trip			515				526				516				547
Non-revenue miles percentage(2)			10.4	%			10.4	%			10.1	%			10.7	%
Total miles (in thousands)			35,679				40,185				147,192				165,267
Dedicated Segment:
Revenue (in thousands)		$	88,922			$	80,983			$	329,442			$	309,784
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,592			$	3,350			$	3,377			$	3,316
Average tractors(1)			1,566				1,620				1,572				1,566
Average miles per trip			330				303				322				305
Non-revenue miles percentage(2)			1.2	%			0.7	%			1.0	%			0.7	%
Total miles (in thousands)			32,491				34,044				128,256				132,597
Intermodal Segment:
Revenue (in thousands)		$	27,902			$	22,776			$	102,245			$	88,733
Loads			8,102				8,708				32,987				36,444
Average tractors			152				125				143				106
Brokerage Segment:
Revenue (in thousands)		$	43,859			$	27,381			$	145,291			$	96,709
Loads			19,345				13,928				66,512				58,986
At December 31, 2021 and December 31, 2020:
Total tractors(1)			3,204				3,331
Average age of company tractors (in years)			1.4				1.6
Total trailers			5,299				5,395
Average age of company trailers (in years)			3.3				3.0
Ratio of trailers to tractors(1)			1.7				1.6
Total refrigerated containers			634				433

		Three Months			Year
		Ended December 31,			Ended December 31,
(In thousands)		2021			2020			2021			2020
Net cash provided by operating activities		$	43,295			$	34,891			$	171,204			$	189,598
Net cash (used for) investing activities			(21,592	)			(12,577	)			(123,734	)			(106,325	)
Net cash (used for) financing activities			(48,608	)			(44,466	)			(56,602	)			(48,607	)
Weighted average shares outstanding:
Basic			82,983				82,690				82,872				82,527
Diluted			83,420				83,311				83,408				83,164

(1)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 93 and 143 tractors as of December 31, 2021 and 2020, respectively.
(2)	Represents the percentage of miles for which the company is not compensated.