MONDOVI, Wis., April 19, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 52.9% improvement in net income to $27.5 million, or 33 cents per diluted share, for the first quarter ended March 31, 2022, from $18.0 million, or 22 cents per diluted share, for the first quarter of 2021. The 2022 first-quarter earnings also improved 11.3% sequentially from 2021 fourth-quarter net income of $24.7 million, or 30 cents per diluted share.

    
 Operating Results Comparison  
    
   Percentage Percentage Percentage Percentage 
   Increase Increase Increase Increase 
   Three Months Year Year Year 
   Ended Ended Ended Ended 
   March 31, December 31, December 31, December 31, 
   2022 vs. 2021 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 
               
 Operating revenue 28.8%  11.4%  3.7% 7.1% 
               
 Operating revenue, net of fuel surcharges 23.8% 8.3%  6.8% 8.6% 
               
 Operating income 49.4% 19.8%  21.9% 8.7% 
               
 Net income 52.9% 22.9%  13.8% 11.0% 
     
     

Operating revenue for the first quarter of 2022 was the highest amount for any quarter in Marten’s 77-year history. Operating revenue improved 28.8% to $287.3 million for the first quarter of 2022 from $223.0 million for the first quarter of 2021 - and improved 7.6% from Marten’s previous best of $266.9 million for the 2021 fourth quarter. Excluding fuel surcharges, operating revenue improved 23.8% to $245.3 million for the 2022 quarter from $198.2 million for the 2021 quarter - and improved 5.3% from $232.9 million for the 2021 fourth quarter. Fuel surcharge revenue increased to $42.0 million for the 2022 quarter from $24.9 million for the 2021 quarter due to significantly higher fuel prices.

Operating income for the first quarter of 2022 was also the highest amount for any quarter in Marten’s history. Operating income improved 49.4% to $35.9 million for the first quarter of 2022 from $24.0 million for the first quarter of 2021 - and improved 16.9% from Marten’s previous best of $30.7 million for the 2021 fourth quarter.

Operating expenses as a percentage of operating revenue improved to 87.5% for the first quarter of 2022 from 89.2% for the first quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.4% for the 2022 quarter, the best ratio for any quarter since Marten became a public company in 1986, from 87.9% for the 2021 quarter.

Executive Chairman Randolph L. Marten stated, “Our talented and determined people capitalized on the continuing tight freight market to hit the trifecta this quarter, producing 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.”

“We also provided momentum to the rest of this year to continue our consistent, strong profitable growth. We began this year’s second quarter with 128 more of the industry’s top drivers than we employed at the beginning of the year, despite the unrelenting national shortage of qualified drivers. We also added 95 refrigerated containers during the first quarter, increasing our fleet to 729 containers as of March 31st.”

“Additionally, reflecting our confidence in Marten’s financial strength and commitment to enhancing stockholder value, we repurchased and retired 1.3 million shares of our common stock for $25 million and increased our regular quarterly cash dividend by 50% during the first quarter of 2022.”

    
 Operating Results throughout the Pandemic – Percentage Increase Over Same Quarter of Prior Year 
    
  Q1
2022		 Q4
2021		 Q3
2021		 Q2
2021		 Q1
2021		 Q4
2020		 Q3
2020		 Q2
2020		 
                  
 Operating revenue28.8% 17.4% 16.3% 9.4% 2.0% 4.7% 0.5% 0.1% 
                  
 Operating revenue, net of fuel surcharges23.8% 12.5% 12.8% 5.0% 2.5% 8.8% 3.8% 4.7% 
                  
 Operating income49.4% 20.0% 16.8% 12.9% 33.1% 36.0% 21.8% 26.6% 
                  
 Net income52.9% 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

  March 31,  December 31, 
(In thousands, except share information) 2022  2021 
   (Unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $66,527  $56,995 
Receivables:        
Trade, net  126,815   99,003 
Other  4,317   6,971 
Prepaid expenses and other  22,375   23,980 
Total current assets  220,034   186,949 
         
Property and equipment:        
Revenue equipment, buildings and land, office equipment and other  955,760   956,476 
Accumulated depreciation  (291,941)  (274,199)
Net property and equipment  663,819   682,277 
Other noncurrent assets  1,545   1,464 
Total assets $885,398  $870,690 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $29,158  $20,150 
Insurance and claims accruals  42,592   42,014 
Accrued and other current liabilities  37,632   31,395 
Total current liabilities  109,382   93,559 
Deferred income taxes  126,918   125,163 
Noncurrent operating lease liabilities  336   291 
Total liabilities  236,636   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; 81,946,875 shares at March 31, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding  819   830 
Additional paid-in capital  60,256   85,718 
Retained earnings  587,687   565,129 
Total stockholders’ equity  648,762   651,677 
Total liabilities and stockholders’ equity $885,398  $870,690 
         


MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

  Three Months 
  Ended March 31, 
(In thousands, except per share information) 2022  2021 
         
Operating revenue $287,281  $223,046 
         
Operating expenses (income):        
Salaries, wages and benefits  89,349   72,998 
Purchased transportation  57,310   40,765 
Fuel and fuel taxes  44,368   28,937 
Supplies and maintenance  12,313   11,015 
Depreciation  26,143   25,687 
Operating taxes and licenses  2,640   2,712 
Insurance and claims  12,704   11,446 
Communications and utilities  2,265   2,083 
Gain on disposition of revenue equipment  (4,540)  (1,984)
Other  8,871   5,389 
         
Total operating expenses  251,423   199,048 
         
Operating income  35,858   23,998 
         
Other  (7)  (10)
         
Income before income taxes  35,865   24,008 
         
Income taxes expense  8,332   6,002 
         
Net income $27,533  $18,006 
         
Basic earnings per common share $0.33  $0.22 
         
Diluted earnings per common share $0.33  $0.22 
         
Dividends declared per common share $0.06  $0.04 
         


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) 2022  2021  2022 vs. 2021  2022 vs. 2021 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $95,170  $83,919  $11,251   13.4%
Truckload fuel surcharge revenue  17,620   10,996   6,624   60.2 
Total Truckload revenue  112,790   94,915   17,875   18.8 
                 
Dedicated revenue, net of fuel surcharge revenue  78,421   66,902   11,519   17.2 
Dedicated fuel surcharge revenue  18,339   11,335   7,004   61.8 
Total Dedicated revenue  96,760   78,237   18,523   23.7 
                 
Intermodal revenue, net of fuel surcharge revenue  25,605   19,446   6,159   31.7 
Intermodal fuel surcharge revenue  6,037   2,558   3,479   136.0 
Total Intermodal revenue  31,642   22,004   9,638   43.8 
                 
Brokerage revenue  46,089   27,890   18,199   65.3 
                 
Total operating revenue $287,281  $223,046  $64,235   28.8%
                 
Operating income:                
Truckload $15,571  $11,415  $4,156   36.4%
Dedicated  10,645   8,936   1,709   19.1 
Intermodal  5,036   1,461   3,575   244.7 
Brokerage  4,606   2,186   2,420   110.7 
Total operating income $35,858  $23,998  $11,860   49.4%
                 
Operating ratio:                
Truckload  86.2%  88.0%        
Dedicated  89.0   88.6         
Intermodal  84.1   93.4         
Brokerage  90.0   92.2         
Consolidated operating ratio  87.5%  89.2%        

                                                

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

  Three Months 
  Ended March 31, 
  2022  2021 
Truckload Segment:        
Revenue (in thousands) $112,790  $94,915 
Average revenue, net of fuel surcharges, per tractor per week(1) $4,977  $4,057 
Average tractors(1)  1,487   1,609 
Average miles per trip  520   534 
Non-revenue miles percentage(2)  10.4%  10.3%
Total miles (in thousands)  35,372   38,283 
         
Dedicated Segment:        
Revenue (in thousands) $96,760  $78,237 
Average revenue, net of fuel surcharges, per tractor per week(1) $3,851  $3,214 
Average tractors(1)  1,584   1,619 
Average miles per trip  341   307 
Non-revenue miles percentage(2)  1.2%  0.8%
Total miles (in thousands)  32,753   31,999 
         
Intermodal Segment:        
Revenue (in thousands) $31,642  $22,004 
Loads  8,294   7,982 
Average tractors  162   134 
         
Brokerage Segment:        
Revenue (in thousands) $46,089  $27,890 
Loads  19,684   14,575 
         
At March 31, 2022 and March 31, 2021:        
Total tractors(1)  3,274   3,361 
Average age of company tractors (in years)  1.6   1.6 
Total trailers  5,428   5,344 
Average age of company trailers (in years)  3.5   3.2 
Ratio of trailers to tractors(1)  1.7   1.6 
Total refrigerated containers  729   487 


  Three Months 
  Ended March 31, 
(In thousands) 2022  2021 
         
Net cash provided by operating activities $39,940  $43,570 
Net cash provided by/(used for) investing activities  409   (17,417)
Net cash (used for) financing activities  (30,817)   (3,697)
         
Weighted average shares outstanding:        
Basic  82,938   82,758 
Diluted  83,246   83,359 


(1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 87 and 133 tractors as of March 31, 2022 and 2021, respectively. 
  
(2)Represents the percentage of miles for which the company is not compensated.

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Source: Marten Transport, Ltd.

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