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Marten Transport Announces First Quarter Results
Source: Nasdaq GlobeNewswire / 18 Apr 2023 16:01:39 America/New_York
MONDOVI, Wis., April 18, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $22.5 million, or 28 cents per diluted share, for the first quarter ended March 31, 2023, compared with $27.5 million, or 33 cents per diluted share, for the first quarter of 2022.
Operating revenue improved 3.7% to $298.0 million for the first quarter of 2023 from $287.3 million for the first quarter of 2022. Excluding fuel surcharges, operating revenue improved 3.9% to $254.9 million for the 2023 quarter from $245.3 million for the 2022 quarter. Fuel surcharge revenue increased to $43.1 million for the 2023 quarter from $42.0 million for the 2022 quarter.
Operating income was $29.0 million for the first quarter of 2023 compared with $35.9 million for the first quarter of 2022 – at the time the highest amount for any quarter in Marten’s history.
Operating expenses as a percentage of operating revenue were 90.3% for the 2023 quarter and 87.5% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 quarter and 85.4% for the 2022 quarter – at the time the best ratio for any quarter since Marten became a public company in 1986.
Executive Chairman Randolph L. Marten stated, “Our bright and determined people executing our unique business model produced solid operating results despite the impact of widespread severe winter weather and a freight market which has considerably softened from the exceptionally tight conditions during the first half of last year. The market has become unsustainable for the smaller carriers who comprise a significant portion of total capacity, and who are expected to continue the recent increased industry exit rate.”
“We believe that we are well-positioned to capitalize on profitable organic growth opportunities across our five distinct but complementary business platforms with our emphasis on premium service, data-driven operating efficiencies and cost controls – and, as a result, to expand the total capacity we provide transporting and distributing the essential food, beverages and other consumer goods to support at a fair price our diverse and growing customer base.”
Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, 2022. 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, Doug Petit, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETSMarch 31, December 31, (In thousands, except share information) 2023 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 96,288 $ 80,600 Receivables: Trade, net 115,430 120,702 Other 7,988 7,218 Prepaid expenses and other 24,206 27,320 Total current assets 243,912 235,840 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,082,361 1,074,832 Accumulated depreciation (348,641 ) (346,665 ) Net property and equipment 733,720 728,167 Other noncurrent assets 1,641 1,672 Total assets $ 979,273 $ 965,679 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 41,558 $ 37,299 Insurance and claims accruals 48,967 45,747 Accrued and other current liabilities 29,077 41,264 Total current liabilities 119,602 124,310 Deferred income taxes 137,825 137,041 Noncurrent operating lease liabilities 335 409 Total liabilities 257,762 261,760 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; 81,233,741 shares at March 31, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding 812 811 Additional paid-in capital 47,151 47,188 Retained earnings 673,548 655,920 Total stockholders’ equity 721,511 703,919 Total liabilities and stockholders’ equity $ 979,273 $ 965,679 MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Ended March 31, (In thousands, except per share information) 2023 2022 Operating revenue $ 298,023 $ 287,281 Operating expenses (income): Salaries, wages and benefits 98,516 89,349 Purchased transportation 54,103 57,310 Fuel and fuel taxes 46,796 44,368 Supplies and maintenance 15,987 12,313 Depreciation 29,530 26,143 Operating taxes and licenses 2,768 2,640 Insurance and claims 15,070 12,704 Communications and utilities 2,531 2,265 Gain on disposition of revenue equipment (5,246 ) (4,540 ) Other 8,958 8,871 Total operating expenses 269,013 251,423 Operating income 29,010 35,858 Other (844 ) (7 ) Income before income taxes 29,854 35,865 Income taxes expense 7,352 8,332 Net income $ 22,502 $ 27,533 Basic earnings per common share $ 0.28 $ 0.33 Diluted earnings per common share $ 0.28 $ 0.33 Dividends declared per common share $ 0.06 $ 0.06 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) 2023 2022 2023 vs. 2022 2023 vs. 2022 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 102,320 $ 95,170 $ 7,150 7.5 % Truckload fuel surcharge revenue 18,306 17,620 686 3.9 Total Truckload revenue 120,626 112,790 7,836 6.9 Dedicated revenue, net of fuel surcharge revenue 86,831 78,421 8,410 10.7 Dedicated fuel surcharge revenue 19,618 18,339 1,279 7.0 Total Dedicated revenue 106,449 96,760 9,689 10.0 Intermodal revenue, net of fuel surcharge revenue 23,401 25,605 (2,204 ) (8.6 ) Intermodal fuel surcharge revenue 5,188 6,037 (849 ) (14.1 ) Total Intermodal revenue 28,589 31,642 (3,053 ) (9.6 ) Brokerage revenue 42,359 46,089 (3,730 ) (8.1 ) Total operating revenue $ 298,023 $ 287,281 $ 10,742 3.7 % Operating income: Truckload $ 10,041 $ 15,571 $ (5,530 ) (35.5 )% Dedicated 13,684 10,645 3,039 28.5 Intermodal 787 5,036 (4,249 ) (84.4 ) Brokerage 4,498 4,606 (108 ) (2.3 ) Total operating income $ 29,010 $ 35,858 $ (6,848 ) (19.1 )% Operating ratio: Truckload 91.7 % 86.2 % Dedicated 87.1 89.0 Intermodal 97.2 84.1 Brokerage 89.4 90.0 Consolidated operating ratio 90.3 % 87.5 % Operating ratio, net of fuel surcharges: Truckload 90.2 % 83.6 % Dedicated 84.2 86.4 Intermodal 96.6 80.3 Brokerage 89.4 90.0 Consolidated operating ratio, net of fuel surcharges 88.6 % 85.4 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Ended March 31, 2023 2022 Truckload Segment: Revenue (in thousands) $ 120,626 $ 112,790 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,571 $ 4,977 Average tractors(1) 1,741 1,487 Average miles per trip 510 520 Non-revenue miles percentage(2) 12.7 % 10.4 % Total miles (in thousands) 38,237 35,372 Dedicated Segment: Revenue (in thousands) $ 106,449 $ 96,760 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,960 $ 3,851 Average tractors(1) 1,705 1,584 Average miles per trip 333 341 Non-revenue miles percentage(2) 1.1 % 1.2 % Total miles (in thousands) 34,076 32,753 Intermodal Segment: Revenue (in thousands) $ 28,589 $ 31,642 Loads 7,277 8,294 Average tractors 180 162 Brokerage Segment: Revenue (in thousands) $ 42,359 $ 46,089 Loads 20,688 19,684 At March 31, 2023 and March 31, 2022: Total tractors(1) 3,571 3,274 Average age of company tractors (in years) 1.7 1.6 Total trailers 5,741 5,428 Average age of company trailers (in years) 4.1 3.5 Ratio of trailers to tractors(1) 1.6 1.7 Total refrigerated containers 802 729 Three Months Ended March 31, (In thousands) 2023 2022 Net cash provided by operating activities $ 49,232 $ 39,940 Net cash (used for)/provided by investing activities (28,280 ) 409 Net cash (used for) financing activities (5,264 ) (30,817 ) Weighted average shares outstanding: Basic 81,210 82,938 Diluted 81,376 83,246 (1 ) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 95 and 87 tractors as of March 31, 2023 and 2022, respectively. (2 ) Represents the percentage of miles for which the company is not compensated. 
