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Marten Transport Announces Third Quarter Results
Source: Nasdaq GlobeNewswire / 17 Oct 2024 16:01:20 America/New_York
MONDOVI, Wis., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $3.8 million, or 5 cents per diluted share, for the third quarter ended September 30, 2024, compared with $13.6 million, or 17 cents per diluted share, for the third quarter of 2023. For the nine-month period ended September 30, 2024, net income was $21.3 million, or 26 cents per diluted share, compared with $58.0 million, or 71 cents per diluted share, for the 2023 nine-month period.
Operating revenue was $237.4 million for the third quarter of 2024 compared with $279.5 million for the third quarter of 2023. Excluding fuel surcharges, operating revenue was $207.9 million for the 2024 quarter compared with $239.1 million for the 2023 quarter. Fuel surcharge revenue decreased to $29.5 million for the 2024 quarter from $40.5 million for the 2023 quarter.
Operating revenue was $733.3 million for the first nine months of 2024 compared with $863.2 million for the first nine months of 2023. Excluding fuel surcharges, operating revenue was $637.1 million for the 2024 period compared with $742.6 million for the 2023 period. Fuel surcharge revenue decreased to $96.1 million for the 2024 period compared with $120.6 million for the 2023 period.
Operating income was $4.3 million for the third quarter of 2024 compared with $17.2 million for the third quarter of 2023.
Operating income was $26.5 million for the first nine months of 2024 compared with $74.5 million for the first nine months of 2023.
Operating expenses as a percentage of operating revenue were 98.2% for the 2024 quarter and 93.8% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 97.9% for the 2024 quarter and 92.8% for the 2023 quarter.
Operating expenses as a percentage of operating revenue were 96.4% for the first nine months of 2024 and 91.4% for the first nine months of 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 95.8% for the 2024 period and 90.0% for the 2023 period.
Executive Chairman Randolph L. Marten stated, “Our earnings were heavily pressured by the considerable duration and depth of the freight market recession’s oversupply and weak demand - and the cumulative impact of inflationary operating costs and freight rate reductions, which has also led to freight network disruptions. Our unique multifaceted business model’s value is highlighted by the operating results this year for our dedicated, brokerage and MRTN de Mexico operations.”
“This quarter was the first quarter with sequential improvement in our combined truckload and dedicated rate per total mile since the fourth quarter of 2022.”
“We are seeing increased interest by our customers to secure dedicated capacity. The recent addition of new multi-year dedicated programs for an additional 133 drivers, which I mentioned in our second quarter earnings release, has increased to 149 drivers, who we expect to be substantially in service by the end of this year. Additionally, we extended each of our contracts for dedicated programs due in the third quarter covering 337 of our drivers.”
“We are focused on minimizing the freight market’s impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market moves toward equilibrium.”
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, 2023. 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 SHEETSSeptember 30, December 31, (In thousands, except share information) 2024 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 42,990 $ 53,213 Receivables: Trade, net 93,539 105,501 Other 6,893 10,356 Prepaid expenses and other 26,853 27,512 Total current assets 170,275 196,582 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,192,736 1,162,336 Accumulated depreciation (364,712 ) (370,103 ) Net property and equipment 828,024 792,233 Other noncurrent assets 1,705 1,524 Total assets $ 1,000,004 $ 990,339 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 47,282 $ 36,516 Insurance and claims accruals 42,946 47,017 Accrued and other current liabilities 26,521 26,709 Total current liabilities 116,749 110,242 Deferred income taxes 116,443 122,462 Noncurrent operating lease liabilities 351 249 Total liabilities 233,543 232,953 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; 81,447,838 shares at September 30, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding 814 813 Additional paid-in capital 52,225 49,789 Retained earnings 713,422 706,784 Total stockholders’ equity 766,461 757,386 Total liabilities and stockholders’ equity $ 1,000,004 $ 990,339 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) 2024 2023 2024 2023 Operating revenue $ 237,366 $ 279,538 $ 733,276 $ 863,233 Operating expenses (income): Salaries, wages and benefits 83,442 92,620 258,723 287,468 Purchased transportation 44,862 49,673 129,911 152,075 Fuel and fuel taxes 35,781 48,695 114,151 137,706 Supplies and maintenance 16,464 17,896 49,006 51,291 Depreciation 27,392 29,017 84,125 87,974 Operating taxes and licenses 2,505 2,821 7,619 8,345 Insurance and claims 13,759 13,254 37,975 40,805 Communications and utilities 2,166 2,584 6,834 7,625 Gain on disposition of revenue equipment (881 ) (3,014 ) (4,584 ) (11,810 ) Other 7,607 8,762 23,023 27,301 Total operating expenses 233,097 262,308 706,783 788,780 Operating income 4,269 17,230 26,493 74,453 Other (922 ) (1,017 ) (2,732 ) (2,938 ) Income before income taxes 5,191 18,247 29,225 77,391 Income taxes expense 1,437 4,649 7,936 19,417 Net income $ 3,754 $ 13,598 $ 21,289 $ 57,974 Basic earnings per common share $ 0.05 $ 0.17 $ 0.26 $ 0.71 Diluted earnings per common share $ 0.05 $ 0.17 $ 0.26 $ 0.71 Dividends declared per common share $ 0.06 $ 0.06 $ 0.18 $ 0.18 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) 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 93,278 $ 96,516 $ (3,238 ) (3.4 )% Truckload fuel surcharge revenue 15,146 17,711 (2,565 ) (14.5 ) Total Truckload revenue 108,424 114,227 (5,803 ) (5.1 ) Dedicated revenue, net of fuel surcharge revenue 62,898 82,963 (20,065 ) (24.2 ) Dedicated fuel surcharge revenue 12,123 18,834 (6,711 ) (35.6 ) Total Dedicated revenue 75,021 101,797 (26,776 ) (26.3 ) Intermodal revenue, net of fuel surcharge revenue 12,289 18,122 (5,833 ) (32.2 ) Intermodal fuel surcharge revenue 2,220 3,925 (1,705 ) (43.4 ) Total Intermodal revenue 14,509 22,047 (7,538 ) (34.2 ) Brokerage revenue 39,412 41,467 (2,055 ) (5.0 ) Total operating revenue $ 237,366 $ 279,538 $ (42,172 ) (15.1 )% Operating income/(loss): Truckload $ (142 ) $ 2,738 $ (2,880 ) (105.2 )% Dedicated 3,056 11,286 (8,230 ) (72.9 ) Intermodal (1,542 ) (1,074 ) (468 ) (43.6 ) Brokerage 2,897 4,280 (1,383 ) (32.3 ) Total operating income $ 4,269 $ 17,230 $ (12,961 ) (75.2 )% Operating ratio: Truckload 100.1 % 97.6 % Dedicated 95.9 88.9 Intermodal 110.6 104.9 Brokerage 92.6 89.7 Consolidated operating ratio 98.2 % 93.8 % Operating ratio, net of fuel surcharges: Truckload 100.2 % 97.2 % Dedicated 95.1 86.4 Intermodal 112.5 105.9 Brokerage 92.6 89.7 Consolidated operating ratio, net of fuel surcharges 97.9 % 92.8 % 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) 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 284,346 $ 300,104 $ (15,758 ) (5.3 )% Truckload fuel surcharge revenue 48,152 51,887 (3,735 ) (7.2 ) Total Truckload revenue 332,498 351,991 (19,493 ) (5.5 ) Dedicated revenue, net of fuel surcharge revenue 202,080 257,231 (55,151 ) (21.4 ) Dedicated fuel surcharge revenue 40,667 56,000 (15,333 ) (27.4 ) Total Dedicated revenue 242,747 313,231 (70,484 ) (22.5 ) Intermodal revenue, net of fuel surcharge revenue 38,230 60,277 (22,047 ) (36.6 ) Intermodal fuel surcharge revenue 7,315 12,724 (5,409 ) (42.5 ) Total Intermodal revenue 45,545 73,001 (27,456 ) (37.6 ) Brokerage revenue 112,486 125,010 (12,524 ) (10.0 ) Total operating revenue $ 733,276 $ 863,233 $ (129,957 ) (15.1 )% Operating income/(loss): Truckload $ 1,462 $ 22,348 $ (20,886 ) (93.5 )% Dedicated 18,964 39,143 (20,179 ) (51.6 ) Intermodal (2,420 ) (452 ) (1,968 ) (435.4 ) Brokerage 8,487 13,414 (4,927 ) (36.7 ) Total operating income $ 26,493 $ 74,453 $ (47,960 ) (64.4 )% Operating ratio: Truckload 99.6 % 93.7 % Dedicated 92.2 87.5 Intermodal 105.3 100.6 Brokerage 92.5 89.3 Consolidated operating ratio 96.4 % 91.4 % Operating ratio, net of fuel surcharges: Truckload 99.5 % 92.6 % Dedicated 90.6 84.8 Intermodal 106.3 100.7 Brokerage 92.5 89.3 Consolidated operating ratio, net of fuel surcharges 95.8 % 90.0 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Nine Months Ended September 30, Ended September 30, 2024 2023 2024 2023 Truckload Segment: Revenue (in thousands) $ 108,424 $ 114,227 $ 332,498 $ 351,991 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,187 $ 4,285 $ 4,090 $ 4,442 Average tractors(1) 1,695 1,714 1,776 1,732 Average miles per trip 533 529 533 515 Non-revenue miles percentage(2) 12.2 % 12.1 % 12.1 % 12.4 % Total miles (in thousands) 39,288 39,093 119,838 116,651 Dedicated Segment: Revenue (in thousands) $ 75,021 $ 101,797 $ 242,747 $ 313,231 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,693 $ 3,900 $ 3,744 $ 3,949 Average tractors(1) 1,296 1,619 1,379 1,670 Average miles per trip 311 339 321 335 Non-revenue miles percentage(2) 1.3 % 1.3 % 1.2 % 1.2 % Total miles (in thousands) 26,571 33,039 83,882 101,948 Intermodal Segment: Revenue (in thousands) $ 14,509 $ 22,047 $ 45,545 $ 73,001 Loads 4,119 6,327 13,172 19,871 Average tractors 104 154 117 168 Brokerage Segment: Revenue (in thousands) $ 39,412 $ 41,467 $ 112,486 $ 125,010 Loads 24,628 24,077 67,389 67,483 At September 30, 2024 and September 30, 2023: Total tractors(1) 3,080 3,454 Average age of company tractors (in years) 1.8 1.8 Total trailers 5,456 5,726 Average age of company trailers (in years) 5.2 4.4 Ratio of trailers to tractors(1) 1.8 1.7 Total refrigerated containers 786 788 Three Months Nine Months Ended September 30, Ended September 30, (In thousands) 2024 2023 2024 2023 Net cash provided by operating activities $ 29,478 $ 28,132 $ 111,021 $ 126,333 Net cash used for investing activities (59,222 ) (35,831 ) (107,247 ) (124,470 ) Net cash used for financing activities (4,465 ) (4,762 ) (13,997 ) (14,396 ) Weighted average shares outstanding: Basic 81,437 81,306 81,389 81,260 Diluted 81,492 81,454 81,460 81,414 (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 94 and 99 tractors as of September 30, 2024 and 2023, respectively. (2) Represents the percentage of miles for which the company is not compensated.