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 18, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 47.8% improvement in net income to $31.7 million, or 39 cents per diluted share, for the second quarter ended June 30, 2022, from $21.4 million, or 26 cents per diluted share, for the second quarter of 2021. The 2022 second-quarter earnings also improved 15.0% sequentially from 2022 first-quarter net income of $27.5 million, or 33 cents per diluted share. For the first six months of 2022, net income improved 50.1% to $59.2 million, or 72 cents per diluted share, from $39.4 million, or 47 cents per diluted share, for the first six months of 2021.

Operating Results Comparison

Percentage

Percentage

Percentage

Percentage

Percentage

Increase

Increase

Increase

Increase

Increase

Three Months

Three Months

Year

Year

Year

Ended

Ended

Ended

Ended

Ended

June 30,

March 31,

December 31,

December 31,

December 31,

2022 vs. 2021

2022 vs. 2021

2021 vs. 2020

2020 vs. 2019

2019 vs. 2018

Operating revenue

41.8% 28.8% 11.4% 3.7% 7.1%

Operating revenue, net of fuel surcharges

32.1% 23.8% 8.3% 6.8% 8.6%

Operating income

43.5% 49.4% 19.8% 21.9% 8.7%

Net income

47.8% 52.9% 22.9% 13.8% 11.0%

Operating revenue for the second quarter of 2022 was the highest amount for any quarter in Marten's 77-year history. Operating revenue improved 41.8% to $329.6 million for the second quarter of 2022 from $232.4 million for the second quarter of 2021 - and improved 14.7% from $287.3 million for the 2022 first quarter. Excluding fuel surcharges, operating revenue improved 32.1% to $269.1 million for the 2022 quarter from $203.7 million for the 2021 quarter - and improved 9.7% from $245.3 million for the 2022 first quarter. Fuel surcharge revenue increased to $60.4 million for the 2022 quarter from $28.8 million for the 2021 quarter due to significantly higher fuel prices.

Operating revenue improved 35.4% to $616.8 million for the first six months of 2022 from $455.5 million for the first six months of 2021. Excluding fuel surcharges, operating revenue improved 28.0% to $514.4 million for the first six months of 2022 from $401.8 million for the first six months of 2021. Fuel surcharge revenue increased to $102.4 million for the first six months of 2022 from $53.7 million for the first six months of 2021.

Operating income for the second quarter of 2022 was also the highest amount for any quarter in Marten's history. Operating income improved 43.5% to $40.9 million for the second quarter of 2022 from $28.5 million for the second quarter of 2021 - and improved 14.2% from $35.9 million for the 2022 first quarter, which was up 16.9% from $30.7 million for the 2021 fourth quarter.

Operating income improved 46.2% to $76.8 million for the first six months of 2022 from $52.5 million for the first six months of 2021.

Operating expenses as a percentage of operating revenue improved to 87.6% for the second quarter of 2022 from 87.7% for the second quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 84.8% for the 2022 quarter, the best ratio for any quarter since Marten became a public company in 1986, from 86.0% for the 2021 quarter.

Operating expenses as a percentage of operating revenue improved to 87.6% for the first six months of 2022 from 88.5% for the first six months of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.1% from 86.9%.

Executive Chairman Randolph L. Marten stated, "Consistent. Strong. Profitable. Organic Growth. Marten's bright, driven people just earned our highest operating revenue and operating income for any quarter in our history, along with our best operating ratio, net of fuel surcharges, for any quarter since we became a public company in 1986 - achieving all three marks for the third time in our last five quarters."

"The unrelenting national shortage of qualified drivers is a long-term double-edged sword for our industry, simultaneously tightening the freight market while limiting fleet size. Our ability to capitalize on the high level of demand we continue to see and apply our culture of continuous operating enhancements within our unique business model has largely contributed to our performance improvements. Our approach to overcoming the driver shortage is a heightened emphasis on structurally improving our drivers' jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. The results - we continue to build on our success in expanding the capacity we provide as we began this year's third quarter with 123 more of the industry's top drivers than we employed at the beginning of the second quarter. We have now increased our number of drivers by 422, or 15.4%, since June 30, 2021."

"Also, reflecting our confidence in Marten's financial strength and commitment to enhancing stockholder value, we repurchased and retired 963,000 shares of our common stock for $16.8 million in the second quarter of 2022, in addition to the 1.3 million shares of our common stock for $25.0 million repurchased in the first quarter."

Operating Results Since the Pandemic Began - Percentage Increase Over Same Quarter of Prior Year

Q2 2022

Q1 2022

Q4 2021

Q3 2021

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Q2 2020

Operating revenue

41.8% 28.8% 17.4% 16.3% 9.4% 2.0% 4.7% 0.5% 0.1%

Operating revenue, net of fuel surcharges

32.1% 23.8% 12.5% 12.8% 5.0% 2.5% 8.8% 3.8% 4.7%

Operating income

43.5% 49.4% 20.0% 16.8% 12.9% 33.1% 36.0% 21.8% 26.6%

Net income

47.8% 52.9% 26.1% 17.9% 18.1% 31.3% 24.5% 8.8% 19.4%

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, 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, 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

June 30,

December 31,

(In thousands, except share information)

2022

2021

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 68,374 $ 56,995

Receivables:

Trade, net

138,391 99,003

Other

3,681 6,971

Prepaid expenses and other

27,437 23,980

Total current assets

237,883 186,949

Property and equipment:

Revenue equipment, buildings and land, office equipment and other

992,400 956,476

Accumulated depreciation

(310,645

)

(274,199

)

Net property and equipment

681,755 682,277

Other noncurrent assets

1,483 1,464

Total assets

$ 921,121 $ 870,690

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 48,463 $ 20,150

Insurance and claims accruals

45,689 42,014

Accrued and other current liabilities

36,565 31,395

Total current liabilities

130,717 93,559

Deferred income taxes

129,972 125,163

Noncurrent operating lease liabilities

275 291

Total liabilities

260,964 219,013

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; 81,014,564 shares at June 30, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding

810 830

Additional paid-in capital

44,867 85,718

Retained earnings

614,480 565,129

Total stockholders' equity

660,157 651,677

Total liabilities and stockholders' equity

$ 921,121 $ 870,690

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)

2022

2021

2022

2021

Operating revenue

$ 329,565 $ 232,442 $ 616,846 $ 455,488

Operating expenses (income):

Salaries, wages and benefits

96,460 75,296 185,809 148,294

Purchased transportation

67,480 45,003 124,790 85,768

Fuel and fuel taxes

61,337 32,007 105,705 60,944

Supplies and maintenance

13,352 11,167 25,665 22,182

Depreciation

26,865 25,540 53,008 51,227

Operating taxes and licenses

2,663 2,718 5,303 5,430

Insurance and claims

13,443 9,391 26,147 20,837

Communications and utilities

2,239 2,056 4,504 4,139

Gain on disposition of revenue equipment

(4,812

)

(5,339

)

(9,352

)

(7,323

)

Other

9,601 6,085 18,472 11,474

Total operating expenses

288,628 203,924 540,051 402,972

Operating income

40,937 28,518 76,795 52,516

Other

(36

)

(9

)

(43

)

(19

)

Income before income taxes

40,973 28,527 76,838 52,535

Income taxes expense

9,312 7,109 17,644 13,111

Net income

$ 31,661 $ 21,418 $ 59,194 $ 39,424

Basic earnings per common share

$ 0.39 $ 0.26 $ 0.72 $ 0.48

Diluted earnings per common share

$ 0.39 $ 0.26 $ 0.72 $ 0.47

Dividends declared per common share

$ 0.06 $ 0.04 $ 0.12 $ 0.08

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)

2022

2021

2022 vs. 2021

2022 vs. 2021

Operating revenue:

Truckload revenue, net of fuel surcharge revenue

$ 101,808 $ 83,633 $ 18,175 21.7

%

Truckload fuel surcharge revenue

25,164 12,308 12,856 104.5

Total Truckload revenue

126,972 95,941 31,031 32.3

Dedicated revenue, net of fuel surcharge revenue

84,389 67,227 17,162 25.5

Dedicated fuel surcharge revenue

25,966 12,894 13,072 101.4

Total Dedicated revenue

110,355 80,121 30,234 37.7

Intermodal revenue, net of fuel surcharge revenue

27,681 22,031 5,650 25.6

Intermodal fuel surcharge revenue

9,286 3,561 5,725 160.8

Total Intermodal revenue

36,967 25,592 11,375 44.4

Brokerage revenue

55,271 30,788 24,483 79.5

Total operating revenue

$ 329,565 $ 232,442 $ 97,123 41.8

%

Operating income:

Truckload

$ 16,088 $ 13,197 $ 2,891 21.9

%

Dedicated

14,039 10,617 3,422 32.2

Intermodal

4,097 1,850 2,247 121.5

Brokerage

6,713 2,854 3,859 135.2

Total operating income

$ 40,937 $ 28,518 $ 12,419 43.5

%

Operating ratio:

Truckload

87.3

%

86.2

%

Dedicated

87.3 86.7

Intermodal

88.9 92.8

Brokerage

87.9 90.7

Consolidated operating ratio

87.6

%

87.7

%

Operating ratio, net of fuel surcharges:

Truckload

84.2

%

84.2

%

Dedicated

83.4 84.2

Intermodal

85.2 91.6

Brokerage

87.9 90.7

Consolidated operating ratio, net of fuel surcharges

84.8

%

86.0

%

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)

2022

2021

2022 vs. 2021

2022 vs. 2021

Operating revenue:

Truckload revenue, net of fuel surcharge revenue

$ 196,978 $ 167,552 $ 29,426 17.6

%

Truckload fuel surcharge revenue

42,784 23,304 19,480 83.6

Total Truckload revenue

239,762 190,856 48,906 25.6

Dedicated revenue, net of fuel surcharge revenue

162,810 134,129 28,681 21.4

Dedicated fuel surcharge revenue

44,305 24,229 20,076 82.9

Total Dedicated revenue

207,115 158,358 48,757 30.8

Intermodal revenue, net of fuel surcharge revenue

53,286 41,477 11,809 28.5

Intermodal fuel surcharge revenue

15,323 6,119 9,204 150.4

Total Intermodal revenue

68,609 47,596 21,013 44.1

Brokerage revenue

101,360 58,678 42,682 72.7

Total operating revenue

$ 616,846 $ 455,488 $ 161,358 35.4

%

Operating income:

Truckload

$ 31,659 $ 24,612 $ 7,047 28.6

%

Dedicated

24,684 19,553 5,131 26.2

Intermodal

9,133 3,311 5,822 175.8

Brokerage

11,319 5,040 6,279 124.6

Total operating income

$ 76,795 $ 52,516 $ 24,279 46.2

%

Operating ratio:

Truckload

86.8

%

87.1

%

Dedicated

88.1 87.7

Intermodal

86.7 93.0

Brokerage

88.8 91.4

Consolidated operating ratio

87.6

%

88.5

%

Operating ratio, net of fuel surcharges:

Truckload

83.9

%

85.3

%

Dedicated

84.8 85.4

Intermodal

82.9 92.0

Brokerage

88.8 91.4

Consolidated operating ratio, net of fuel surcharges

85.1

%

86.9

%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

Three Months

Six Months

Ended June 30,

Ended June 30,

2022

2021

2022

2021

Truckload Segment:

Revenue (in thousands)

$ 126,972 $ 95,941 $ 239,762 $ 190,856

Average revenue, net of fuel surcharges, per tractor per week(1)

$ 5,080 $ 4,146 $ 5,030 $ 4,101

Average tractors(1)

1,542 1,552 1,515 1,580

Average miles per trip

509 513 514 524

Non-revenue miles percentage(2)

10.7

%

9.6

%

10.6

%

9.9

%

Total miles (in thousands)

36,752 37,285 72,124 75,568

Dedicated Segment:

Revenue (in thousands)

$ 110,355 $ 80,121 $ 207,115 $ 158,358

Average revenue, net of fuel surcharges, per tractor per week(1)

$ 4,072 $ 3,268 $ 3,962 $ 3,241

Average tractors(1)

1,594 1,582 1,589 1,601

Average miles per trip

341 323 341 315

Non-revenue miles percentage(2)

1.0

%

1.1

%

1.1

%

0.9

%

Total miles (in thousands)

34,134 32,255 66,887 64,254

Intermodal Segment:

Revenue (in thousands)

$ 36,967 $ 25,592 $ 68,609 $ 47,596

Loads

8,703 8,646 16,997 16,628

Average tractors

175 148 169 141

Brokerage Segment:

Revenue (in thousands)

$ 55,271 $ 30,788 $ 101,360 $ 58,678

Loads

25,322 14,341 45,006 28,916

At June 30, 2022 and June 30, 2021:

Total tractors(1)

3,395 3,162

Average age of company tractors (in years)

1.6 1.5

Total trailers

5,521 5,299

Average age of company trailers (in years)

3.6 3.2

Ratio of trailers to tractors(1)

1.6 1.7

Total refrigerated containers

784 554

Three Months

Six Months

Ended June 30,

Ended June 30,

(In thousands)

2022

2021

2022

2021

Net cash provided by operating activities

$ 58,730 $ 39,795 $ 98,670 $ 83,365

Net cash (used for) investing activities

(35,413

)

(44,021

)

(35,004

)

(61,438

)

Net cash (used for) financing activities

(21,470

)

(3,685

)

(52,287

)

(7,382

)

Weighted average shares outstanding:

Basic

81,689 82,840 82,310 82,799

Diluted

82,015 83,397 82,617 83,384

(1)

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 85 and 118 tractors as of June 30, 2022 and 2021, respectively.

(2)

Represents the percentage of miles for which the company is not compensated.

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Disclaimer

Marten Transport Ltd. published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2022 20:13:10 UTC.