Operating revenue improves 16.3% and net income improves 17.9% over 2020 quarter

MONDOVI, Wis., Oct. 19, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 17.9% improvement in net income to $21.3 million, or 26 cents per diluted share, for the third quarter ended September 30, 2021, from $18.0 million, or 22 cents per diluted share, for the third quarter of 2020. For the first nine months of 2021, net income improved 21.6% to $60.7 million, or 73 cents per diluted share, from $49.9 million, or 60 cents per diluted share, for the first nine months of 2020.

    
 Operating Results Comparison  
    
   Percentage Percentage Percentage Percentage 
   Increase Increase Increase Increase 
   Three Months Nine Months Year Year 
   Ended Ended Ended Ended 
   September 30, September 30, December 31, December 31, 
   2021 vs. 2020 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 
               
 Operating revenue 16.3%  9.2%  3.7% 7.1% 
               
 Operating revenue, net of fuel surcharges 12.8% 6.8%  6.8% 8.6% 
               
 Operating income 16.8% 19.7%  21.9% 8.7% 
               
 Net income 17.9% 21.6%  13.8% 11.0% 
     

Operating revenue improved 16.3% to a record $251.3 million for the third quarter of 2021 from $216.0 million for the third quarter of 2020, and improved 9.2% to $706.8 million for the first nine months of 2021 from $647.0 million for the first nine months of 2020. Excluding fuel surcharges, operating revenue improved 12.8% to $221.2 million for the 2021 quarter from $196.1 million for the 2020 quarter, and improved 6.8% to $623.0 million for the first nine months of 2021 from $583.6 million for the first nine months of 2020. Fuel surcharge revenue increased to $30.1 million for the 2021 quarter from $19.9 million for the 2020 quarter, and increased to $83.7 million for the first nine months of 2021 from $63.5 million for the first nine months of 2020 due to significantly higher fuel prices.

Operating income improved 16.8% to $28.5 million for the third quarter of 2021 from $24.4 million for the third quarter of 2020. Operating income improved 19.7% to $81.0 million for the first nine months of 2021 from $67.7 million for the first nine months of 2020.

Operating expenses as a percentage of operating revenue were 88.7% for each of the third quarters of 2021 and 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.1% for the third quarter of 2021 from 87.6% for the third quarter of 2020.

Operating expenses as a percentage of operating revenue improved to 88.5% for the first nine months of 2021 from 89.5% for the first nine months of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 88.4%.

Executive Chairman Randolph L. Marten said, “Marten’s talented and dedicated people continue to drive our consistent profitable growth. This quarter is yet another quarter over the last year and a half during the pandemic where we produced strong operating income improvement.”

“We have been heightening and will continue to heighten our emphasis on structurally improving our drivers’ jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. Our approach, which I mentioned in our second quarter earnings release, is working despite the unrelenting national shortage of qualified drivers. With our peoples’ smart, hard work, we began the fourth quarter with 181 more of the industry’s top drivers than we employed at the beginning of the third quarter. Additionally, we increased our number of refrigerated containers by 53 during the third quarter, expanding our fleet to 607 containers at September 30th.”

“We are confident in our ability to continue to deliver profitable growth. Success breeds success.”

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 Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS

  September 30,  December 31, 
(In thousands, except share information) 2021  2020 
    (Unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $83,900  $66,127 
Receivables:        
Trade, net  99,686   83,426 
Other  6,208   4,202 
Prepaid expenses and other  22,150   21,903 
Total current assets  211,944   175,658 
         
Property and equipment:        
Revenue equipment, buildings and land, office equipment and other  957,708   930,123 
Accumulated depreciation  (267,808)  (275,950)
Net property and equipment  689,900   654,173 
Other noncurrent assets  1,539   1,805 
Total assets $903,383  $831,636 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $33,687  $25,702 
Insurance and claims accruals  41,128   39,595 
Accrued and other current liabilities  32,667   24,497 
Accrued dividends  44,789   - 
Total current liabilities  152,271   89,794 
Deferred income taxes  120,689   121,098 
Noncurrent operating lease liabilities  336   411 
Total liabilities  273,296   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; 82,942,839 shares at September 30, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding  829   827 
Additional paid-in capital  85,539   85,070 
Retained earnings  543,719   534,436 
Total stockholders’ equity  630,087   620,333 
Total liabilities and stockholders’ equity $903,383  $831,636 
         

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

  Three Months  Nine Months 
  Ended September 30,  Ended September 30, 
(In thousands, except per share information) 2021  2020  2021  2020 
                 
Operating revenue $251,280  $216,011  $706,768  $647,041 
                 
Operating expenses (income):                
Salaries, wages and benefits  81,091   74,797   229,385   221,034 
Purchased transportation  52,861   37,066   138,629   113,676 
Fuel and fuel taxes  33,909   24,268   94,853   73,433 
Supplies and maintenance  11,685   12,440   33,867   36,501 
Depreciation  25,371   25,580   76,598   76,979 
Operating taxes and licenses  2,606   2,749   8,036   8,003 
Insurance and claims  10,501   11,243   31,338   35,160 
Communications and utilities  2,181   1,999   6,320   5,961 
Gain on disposition of revenue equipment  (4,536)  (2,128)  (11,859)  (5,899)
Gain on disposition of facility  -   (1,718)  -   (1,718)
Other  7,115   5,315   18,589   16,223 
                 
Total operating expenses  222,784   191,611   625,756   579,353 
                 
Operating income  28,496   24,400   81,012   67,688 
                 
Other  (8)  (17)  (27)  (127)
                 
Income before income taxes  28,504   24,417   81,039   67,815 
                 
Income taxes expense  7,230   6,373   20,341   17,919 
                 
Net income $21,274  $18,044  $60,698  $49,896 
                 
Basic earnings per common share $0.26  $0.22  $0.73  $0.61 
                 
Diluted earnings per common share $0.26  $0.22  $0.73  $0.60 
                 
Dividends paid per common share $-  $0.04  $0.08  $0.093 
                 
Dividends declared per common share $0.54  $0.04  $0.62  $0.093 
                 

        

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

          Dollar  Percentage 
          Change  Change 
  Three Months  Three Months  Three Months 
  Ended  Ended  Ended 
  September 30,  September 30,  September 30, 
(Dollars in thousands) 2021  2020  2021 vs. 2020  2021 vs. 2020 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $86,889  $85,074  $1,815   2.1%
Truckload fuel surcharge revenue  12,728   8,549   4,179   48.9 
Total Truckload revenue  99,617   93,623   5,994   6.4 
                 
Dedicated revenue, net of fuel surcharge revenue  68,826   69,002   (176)  (0.3)
Dedicated fuel surcharge revenue  13,336   9,335   4,001   42.9 
Total Dedicated revenue  82,162   78,337   3,825   4.9 
                 
Intermodal revenue, net of fuel surcharge revenue  22,716   19,991   2,725   13.6 
Intermodal fuel surcharge revenue  4,031   1,985   2,046   103.1 
Total Intermodal revenue  26,747   21,976   4,771   21.7 
                 
Brokerage revenue  42,754   22,075   20,679   93.7 
                 
Total operating revenue $251,280  $216,011  $35,269   16.3%
                 
Operating income:                
Truckload $11,670  $10,546  $1,124   10.7%
Dedicated  8,521   11,024   (2,503)  (22.7)
Intermodal  2,840   1,304   1,536   117.8 
Brokerage  5,465   1,526   3,939   258.1 
Total operating income $28,496  $24,400  $4,096   16.8%
                 
Operating ratio:                
Truckload  88.3%  88.7%        
Dedicated  89.6   85.9         
Intermodal  89.4   94.1         
Brokerage  87.2   93.1         
Consolidated operating ratio  88.7%  88.7%        

                                                

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

          Dollar  Percentage 
          Change  Change 
  Nine Months  Nine Months  Nine Months 
  Ended  Ended  Ended 
  September 30,  September 30,  September 30, 
(Dollars in thousands) 2021  2020  2021 vs. 2020  2021 vs. 2020 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $254,441  $254,897  $(456)  (0.2)%
Truckload fuel surcharge revenue  36,032   28,058   7,974   28.4 
Total Truckload revenue  290,473   282,955   7,518   2.7 
                 
Dedicated revenue, net of fuel surcharge revenue  202,955   200,237   2,718   1.4 
Dedicated fuel surcharge revenue  37,565   28,564   9,001   31.5 
Total Dedicated revenue  240,520   228,801   11,719   5.1 
                 
Intermodal revenue, net of fuel surcharge revenue  64,193   59,127   5,066   8.6 
Intermodal fuel surcharge revenue  10,150   6,830   3,320   48.6 
Total Intermodal revenue  74,343   65,957   8,386   12.7 
                 
Brokerage revenue  101,432   69,328   32,104   46.3 
                 
Total operating revenue $706,768  $647,041  $59,727   9.2%
                 
Operating income:                
Truckload $36,282  $28,367  $7,915   27.9%
Dedicated  28,074   31,009   (2,935)  (9.5)
Intermodal  6,151   3,564   2,587   72.6 
Brokerage  10,505   4,748   5,757   121.3 
Total operating income $81,012  $67,688  $13,324   19.7%
                 
Operating ratio:                
Truckload  87.5%  90.0%        
Dedicated  88.3   86.4         
Intermodal  91.7   94.6         
Brokerage  89.6   93.2         
Consolidated operating ratio  88.5%  89.5%        



MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

  Three Months  Nine Months 
  Ended September 30,  Ended September 30, 
  2021  2020  2021  2020 
Truckload Segment:                
Revenue (in thousands) $99,617  $93,623  $290,473  $282,955 
Average revenue, net of fuel surcharges, per tractor per week(1) $4,411  $3,955  $4,202  $3,865 
Average tractors(1)  1,499   1,637   1,553   1,685 
Average miles per trip  502   546   516   554 
Non-revenue miles percentage(2)  10.1%  10.2%  10.0%  10.8%
Total miles (in thousands)  35,945   41,210   111,513   125,082 
                 
Dedicated Segment:                
Revenue (in thousands) $82,162  $78,337  $240,520  $228,801 
Average revenue, net of fuel surcharges, per tractor per week(1) $3,438  $3,295  $3,305  $3,304 
Average tractors(1)  1,523   1,593   1,574   1,548 
Average miles per trip  328   304   319   306 
Non-revenue miles percentage(2)  1.1%  0.7%  1.0%  0.7%
Total miles (in thousands)  31,511   33,843   95,765   98,553 
                 
Intermodal Segment:                
Revenue (in thousands) $26,747  $21,976  $74,343  $65,957 
Loads  8,257   9,306   24,885   27,736 
Average tractors  139   99   140   99 
                 
Brokerage Segment:                
Revenue (in thousands) $42,754  $22,075  $101,432  $69,328 
Loads  18,251   13,670   47,167   45,058 
                 
At September 30, 2021 and September 30, 2020:                
Total tractors(1)  3,204   3,329         
Average age of company tractors (in years)  1.4   1.7         
Total trailers  5,291   5,368         
Average age of company trailers (in years)  3.2   2.9         
Ratio of trailers to tractors(1)  1.7   1.6         
Total refrigerated containers  607   401         

        

  Three Months  Nine Months 
  Ended September 30,  Ended September 30, 
(In thousands) 2021  2020  2021  2020 
                 
Net cash provided by operating activities $44,544  $50,640  $127,909  $154,707 
Net cash (used for) investing activities  (40,704)  (34,558)  (102,142)  (93,748)
Net cash (used for) financing activities  (612)  (3,126)  (7,994)  (4,141)
                 
Weighted average shares outstanding:                
Basic  82,907   82,672   82,835   82,472 
Diluted  83,372   83,279   83,380   83,098 


(1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 101 and 132 tractors as of September 30, 2021 and 2020, respectively. 
  
(2)Represents the percentage of miles for which the company is not compensated.

A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/62731d52-45d0-495b-b904-8b9e15d654d9