MARTEN TRANSPORT : ANNOUNCES SECOND QUARTER RESULTS (Form 8-K)

MARTEN TRANSPORT ANNOUNCES SECOND QUARTER RESULTS

Reports highest operating revenue and operating income for any quarter in Marten's history - and the best operating ratio, net of fuel surcharges, for any quarter since Marten became a public company in 1986

MONDOVI, Wis., July 15, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter in Marten's history - and the best operating ratio, net of fuel surcharges, for any quarter since Marten became a public company in 1986. For the second quarter ended June 30, 2021, net income improved 18.1% to $21.4 million, or 26 cents per diluted share, from $18.1 million, or 22 cents per diluted share, for the second quarter of 2020. For the first six months of 2021, net income improved 23.8% to $39.4 million, or 47 cents per diluted share, from $31.9 million, or 38 cents per diluted share, for the first six months of 2020.

	Operating Results Comparison
			Percentage			Percentage			Percentage			Percentage
			Increase			Increase			Increase			Increase
			Three Months			Six Months			Year			Year
			Ended			Ended			Ended			Ended
			June 30,			June 30,			December 31,			December 31,
			2021 vs. 2020			2021 vs. 2020			2020 vs. 2019			2019 vs. 2018
	Operating revenue			9.4	%			5.7	%			3.7	%			7.1	%
	Operating revenue, net of fuel surcharges			5.0	%			3.7	%			6.8	%			8.6	%
	Operating income			12.9	%			21.3	%			21.9	%			8.7	%
	Net income			18.1	%			23.8	%			13.8	%			11.0	%

Operating revenue improved 9.4% to a record $232.4 million for the second quarter of 2021 from $212.4 million for the second quarter of 2020, and improved 5.7% to $455.5 million for the first six months of 2021 from $431.0 million for the first six months of 2020. Excluding fuel surcharges, operating revenue improved 5.0% to $203.7 million for the 2021 quarter from $194.0 million for the 2020 quarter, and improved 3.7% to $401.8 million for the first six months of 2021 from $387.4 million for the first six months of 2020. Fuel surcharge revenue increased to $28.8 million for the 2021 quarter from $18.3 million for the 2020 quarter, and increased to $53.7 million for the first six months of 2021 from $43.6 million for the first six months of 2020 due to significantly higher fuel prices.

Operating income improved 12.9% to a record $28.5 million for the second quarter of 2021 from $25.3 million for the second quarter of 2020. This year's second quarter operating income was $3.0 million more than Marten's previous record. Operating income improved 21.3% to $52.5 million for the first six months of 2021 from $43.3 million for the first six months of 2020.

Operating expenses as a percentage of operating revenue improved to 87.7% for the second quarter of 2021 from 88.1% for the second quarter of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.0%, the best ratio for any quarter since Marten became a public company in 1986, from 87.0%.

Operating expenses as a percentage of operating revenue improved to 88.5% for the first six months of 2021 from 90.0% for the first six months of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.9% from 88.8%.

Executive Chairman Randolph L. Marten said, 'Our talented and disciplined people capitalized on the continuing tight freight market to drive our highest operating revenue and operating income for any quarter in our history, and our best operating ratio, net of fuel surcharges, for any quarter since we became a public company in 1986. Our 21.3% operating income improvement in this year's first six months continues the consistent strong operating income growth we produced in 2020 of 21.9% and in 2019 of 8.7%, across periods that included some challenging operating environments.'

'We have been increasing and will continue to increase the compensation from our customers for our premium services within the constrained freight market largely caused by the unrelenting national shortage of qualified drivers. We are also heightening our emphasis on structurally improving our drivers' jobs and work-life balance by collaborating with our customers.'

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. 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 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

		June 30,			December 31,
(In thousands, except share information)		2021			2020
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	80,672			$	66,127
Receivables:
Trade, net			92,920				83,426
Other			4,904				4,202
Prepaid expenses and other			23,444				21,903
Total current assets			201,940				175,658
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			947,071				930,123
Accumulated depreciation			(266,342	)			(275,950	)
Net property and equipment			680,729				654,173
Other noncurrent assets			1,694				1,805
Total assets		$	884,363			$	831,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	39,279			$	25,702
Insurance and claims accruals			41,438				39,595
Accrued and other current liabilities			26,272				24,497
Total current liabilities			106,989				89,794
Deferred income taxes			123,312				121,098
Noncurrent operating lease liabilities			421				411
Total liabilities			230,722				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; 82,880,930 shares at June 30, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding			829				827
Additional paid-in capital			85,578				85,070
Retained earnings			567,234				534,436
Total stockholders' equity			653,641				620,333
Total liabilities and stockholders' equity		$	884,363			$	831,636

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

		Three Months			Six Months
		Ended June 30,			Ended June 30,
(In thousands, except per share information)		2021			2020			2021			2020
Operating revenue		$	232,442			$	212,384			$	455,488			$	431,030
Operating expenses (income):
Salaries, wages and benefits			75,296				73,476				148,294				146,237
Purchased transportation			45,003				36,165				85,768				76,610
Fuel and fuel taxes			32,007				20,868				60,944				49,165
Supplies and maintenance			11,167				11,833				22,182				24,061
Depreciation			25,540				25,972				51,227				51,399
Operating taxes and licenses			2,718				2,615				5,430				5,254
Insurance and claims			9,391				11,633				20,837				23,917
Communications and utilities			2,056				1,977				4,139				3,962
Gain on disposition of revenue equipment			(5,339	)			(2,216	)			(7,323	)			(3,771	)
Other			6,085				4,805				11,474				10,908
Total operating expenses			203,924				187,128				402,972				387,742
Operating income			28,518				25,256				52,516				43,288
Other			(9	)			(13	)			(19	)			(110	)
Income before income taxes			28,527				25,269				52,535				43,398
Income taxes expense			7,109				7,135				13,111				11,546
Net income		$	21,418			$	18,134			$	39,424			$	31,852
Basic earnings per common share		$	0.26			$	0.22			$	0.48			$	0.39
Diluted earnings per common share		$	0.26			$	0.22			$	0.47			$	0.38
Dividends declared per common share		$	0.04			$	0.027			$	0.08			$	0.053

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Three Months			Three Months			Three Months
		Ended			Ended			Ended
		June 30,			June 30,			June 30,
(Dollars in thousands)		2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	83,633			$	85,966			$	(2,333	)			(2.7	)%
Truckload fuel surcharge revenue			12,308				8,234				4,074				49.5
Total Truckload revenue			95,941				94,200				1,741				1.8
Dedicated revenue, net of fuel surcharge revenue			67,227				67,076				151				0.2
Dedicated fuel surcharge revenue			12,894				8,351				4,543				54.4
Total Dedicated revenue			80,121				75,427				4,694				6.2
Intermodal revenue, net of fuel surcharge revenue			22,031				18,542				3,489				18.8
Intermodal fuel surcharge revenue			3,561				1,759				1,802				102.4
Total Intermodal revenue			25,592				20,301				5,291				26.1
Brokerage revenue			30,788				22,456				8,332				37.1
Total operating revenue		$	232,442			$	212,384			$	20,058				9.4	%
Operating income:
Truckload		$	13,197			$	11,036			$	2,161				19.6	%
Dedicated			10,617				11,452				(835	)			(7.3	)
Intermodal			1,850				954				896				93.9
Brokerage			2,854				1,814				1,040				57.3
Total operating income		$	28,518			$	25,256			$	3,262				12.9	%
Operating ratio:
Truckload			86.2	%			88.3	%
Dedicated			86.7				84.8
Intermodal			92.8				95.3
Brokerage			90.7				91.9
Consolidated operating ratio			87.7	%			88.1	%

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Six Months			Six Months			Six Months
		Ended			Ended			Ended
		June 30,			June 30,			June 30,
(Dollars in thousands)		2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	167,552			$	169,823			$	(2,271	)			(1.3	)%
Truckload fuel surcharge revenue			23,304				19,509				3,795				19.5
Total Truckload revenue			190,856				189,332				1,524				0.8
Dedicated revenue, net of fuel surcharge revenue			134,129				131,235				2,894				2.2
Dedicated fuel surcharge revenue			24,229				19,229				5,000				26.0
Total Dedicated revenue			158,358				150,464				7,894				5.2
Intermodal revenue, net of fuel surcharge revenue			41,477				39,136				2,341				6.0
Intermodal fuel surcharge revenue			6,119				4,845				1,274				26.3
Total Intermodal revenue			47,596				43,981				3,615				8.2
Brokerage revenue			58,678				47,253				11,425				24.2
Total operating revenue		$	455,488			$	431,030			$	24,458				5.7	%
Operating income:
Truckload		$	24,612			$	17,821			$	6,791				38.1	%
Dedicated			19,553				19,985				(432	)			(2.2	)
Intermodal			3,311				2,260				1,051				46.5
Brokerage			5,040				3,222				1,818				56.4
Total operating income		$	52,516			$	43,288			$	9,228				21.3	%
Operating ratio:
Truckload			87.1	%			90.6	%
Dedicated			87.7				86.7
Intermodal			93.0				94.9
Brokerage			91.4				93.2
Consolidated operating ratio			88.5	%			90.0	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

		Three Months			Six Months
		Ended June 30,			Ended June 30,
		2021			2020			2021			2020
Truckload Segment:
Revenue (in thousands)		$	95,941			$	94,200			$	190,856			$	189,332
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,146			$	3,829			$	4,101			$	3,821
Average tractors(1)			1,552				1,727				1,580				1,710
Average miles per trip			513				557				524				558
Non-revenue miles percentage(2)			9.6	%			10.9	%			9.9	%			11.0	%
Total miles (in thousands)			37,285				42,833				75,568				83,872
Dedicated Segment:
Revenue (in thousands)		$	80,121			$	75,427			$	158,358			$	150,464
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,268			$	3,314			$	3,241			$	3,309
Average tractors(1)			1,582				1,557				1,601				1,525
Average miles per trip			323				307				315				306
Non-revenue miles percentage(2)			1.1	%			0.8	%			0.9	%			0.8	%
Total miles (in thousands)			32,255				33,174				64,254				64,710
Intermodal Segment:
Revenue (in thousands)		$	25,592			$	20,301			$	47,596			$	43,981
Loads			8,646				8,693				16,628				18,430
Average tractors			148				98				141				99
Brokerage Segment:
Revenue (in thousands)		$	30,788			$	22,456			$	58,678			$	47,253
Loads			14,341				15,280				28,916				31,388
At June 30, 2021 and June 30, 2020:
Total tractors(1)			3,162				3,313
Average age of company tractors (in years)			1.5				1.8
Total trailers			5,299				5,364
Average age of company trailers (in years)			3.2				2.7
Ratio of trailers to tractors(1)			1.7				1.6

		Three Months			Six Months
		Ended June 30,			Ended June 30,
(In thousands)		2021			2020			2021			2020
Net cash provided by operating activities		$	39,795			$	60,587			$	83,365			$	104,067
Net cash (used for) investing activities			(44,021	)			(22,558	)			(61,438	)			(59,190	)
Net cash (used for) provided by financing activities			(3,685	)			1,158				(7,382	)			(1,015	)
Weighted average shares outstanding:
Basic			82,840				82,527				82,799				82,371
Diluted			83,397				83,133				83,384				83,018

(1)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 118 and 124 tractors as of June 30, 2021 and 2020, respectively.
(2)	Represents the percentage of miles for which the company is not compensated.