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Marten Transport Announces Second Quarter Results
Source: Nasdaq GlobeNewswire / 19 Jul 2023 16:01:45 America/New_York
MONDOVI, Wis., July 19, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $21.9 million, or 27 cents per diluted share, for the second quarter ended June 30, 2023, compared with $31.7 million, or 39 cents per diluted share, for the second quarter of 2022. For the six-month period ended June 30, 2023, net income was $44.4 million, or 55 cents per diluted share, compared with $59.2 million, or 72 cents per diluted share, for the 2022 six-month period.
Operating revenue was $285.7 million for the second quarter of 2023 compared with $329.6 million for the second quarter of 2022. Excluding fuel surcharges, operating revenue was $248.6 million for the 2023 quarter compared with $269.1 million for the 2022 quarter. Fuel surcharge revenue decreased to $37.0 million for the 2023 quarter from $60.4 million for the 2022 quarter due to significantly lower fuel prices.
Operating revenue was $583.7 million for the first six months of 2023 compared with $616.8 million for the first six months of 2022. Excluding fuel surcharges, operating revenue was $503.6 million for the 2023 period compared with $514.4 million for the 2022 period. Fuel surcharge revenue decreased to $80.1 million for the 2023 period compared with $102.4 million for the 2022 period.
Operating income was $28.2 million for the second quarter of 2023 compared with $40.9 million for the second quarter of 2022 – the highest amount for any quarter in Marten’s history.
Operating income was $57.2 million for the first six months of 2023 compared with $76.8 million for the first six months of 2022.
Operating expenses as a percentage of operating revenue were 90.1% for the 2023 quarter and 87.6% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.7% for the 2023 quarter and 84.8% for the 2022 quarter – the best ratio for any quarter since Marten became a public company in 1986.
Operating expenses as a percentage of operating revenue were 90.2% for the first six months of 2023 and 87.6% for the first six months of 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 period and 85.1% for the 2022 period.
Executive Chairman Randolph L. Marten stated, “While the soft freight market demand, excess capacity and inflationary costs continue to put considerable pressure on industry pricing, volumes and margins, we recorded our second-highest second quarter operating revenue and net income in our history.”
“The disciplined execution of our unique business model by our talented people utilizing our adaptive and proprietary operating technology, along with our emphasis on operating efficiencies and cost controls, are key strengths to our minimizing the current impact of the weak freight market on our operations -- and are also strengths that we will maintain as we invest in and position our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers.”
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 SHEETS June 30, December 31, (In thousands, except share information) 2023 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 80,528 $ 80,600 Receivables: Trade, net 111,577 120,702 Other 10,646 7,218 Prepaid expenses and other 29,208 27,320 Total current assets 231,959 235,840 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,122,659 1,074,832 Accumulated depreciation (352,139 ) (346,665 ) Net property and equipment 770,520 728,167 Other noncurrent assets 1,605 1,672 Total assets $ 1,004,084 $ 965,679 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 36,107 $ 37,299 Insurance and claims accruals 47,665 45,747 Accrued and other current liabilities 47,248 41,264 Total current liabilities 131,020 124,310 Deferred income taxes 132,737 137,041 Noncurrent operating lease liabilities 307 409 Total liabilities 264,064 261,760 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; 81,301,468 shares at June 30, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding 813 811 Additional paid-in capital 48,663 47,188 Retained earnings 690,544 655,920 Total stockholders’ equity 740,020 703,919 Total liabilities and stockholders’ equity $ 1,004,084 $ 965,679 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) 2023 2022 2023 2022 Operating revenue $ 285,672 $ 329,565 $ 583,695 $ 616,846 Operating expenses (income): Salaries, wages and benefits 96,332 96,460 194,848 185,809 Purchased transportation 48,299 67,480 102,402 124,790 Fuel and fuel taxes 42,215 61,337 89,011 105,705 Supplies and maintenance 17,408 13,352 33,395 25,665 Depreciation 29,427 26,865 58,957 53,008 Operating taxes and licenses 2,756 2,663 5,524 5,303 Insurance and claims 12,481 13,443 27,551 26,147 Communications and utilities 2,510 2,239 5,041 4,504 Gain on disposition of revenue equipment (3,550 ) (4,812 ) (8,796 ) (9,352 ) Other 9,581 9,601 18,539 18,472 Total operating expenses 257,459 288,628 526,472 540,051 Operating income 28,213 40,937 57,223 76,795 Other (1,077 ) (36 ) (1,921 ) (43 ) Income before income taxes 29,290 40,973 59,144 76,838 Income taxes expense 7,416 9,312 14,768 17,644 Net income $ 21,874 $ 31,661 $ 44,376 $ 59,194 Basic earnings per common share $ 0.27 $ 0.39 $ 0.55 $ 0.72 Diluted earnings per common share $ 0.27 $ 0.39 $ 0.55 $ 0.72 Dividends declared per common share $ 0.06 $ 0.06 $ 0.12 $ 0.12 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) 2023 2022 2023 vs. 2022 2023 vs. 2022 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 101,268 $ 101,808 $ (540 ) (0.5 )% Truckload fuel surcharge revenue 15,870 25,164 (9,294 ) (36.9 ) Total Truckload revenue 117,138 126,972 (9,834 ) (7.7 ) Dedicated revenue, net of fuel surcharge revenue 87,437 84,389 3,048 3.6 Dedicated fuel surcharge revenue 17,548 25,966 (8,418 ) (32.4 ) Total Dedicated revenue 104,985 110,355 (5,370 ) (4.9 ) Intermodal revenue, net of fuel surcharge revenue 18,754 27,681 (8,927 ) (32.2 ) Intermodal fuel surcharge revenue 3,611 9,286 (5,675 ) (61.1 ) Total Intermodal revenue 22,365 36,967 (14,602 ) (39.5 ) Brokerage revenue 41,184 55,271 (14,087 ) (25.5 ) Total operating revenue $ 285,672 $ 329,565 $ (43,893 ) (13.3 )% Operating income: Truckload $ 9,569 $ 16,088 $ (6,519 ) (40.5 )% Dedicated 14,173 14,039 134 1.0 Intermodal (165 ) 4,097 (4,262 ) (104.0 ) Brokerage 4,636 6,713 (2,077 ) (30.9 ) Total operating income $ 28,213 $ 40,937 $ (12,724 ) (31.1 )% Operating ratio: Truckload 91.8 % 87.3 % Dedicated 86.5 87.3 Intermodal 100.7 88.9 Brokerage 88.7 87.9 Consolidated operating ratio 90.1 % 87.6 % Operating ratio, net of fuel surcharges: Truckload 90.6 % 84.2 % Dedicated 83.8 83.4 Intermodal 100.9 85.2 Brokerage 88.7 87.9 Consolidated operating ratio, net of fuel surcharges 88.7 % 84.8 % 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) 2023 2022 2023 vs. 2022 2023 vs. 2022 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 203,588 $ 196,978 $ 6,610 3.4 % Truckload fuel surcharge revenue 34,176 42,784 (8,608 ) (20.1 ) Total Truckload revenue 237,764 239,762 (1,998 ) (0.8 ) Dedicated revenue, net of fuel surcharge revenue 174,268 162,810 11,458 7.0 Dedicated fuel surcharge revenue 37,166 44,305 (7,139 ) (16.1 ) Total Dedicated revenue 211,434 207,115 4,319 2.1 Intermodal revenue, net of fuel surcharge revenue 42,155 53,286 (11,131 ) (20.9 ) Intermodal fuel surcharge revenue 8,799 15,323 (6,524 ) (42.6 ) Total Intermodal revenue 50,954 68,609 (17,655 ) (25.7 ) Brokerage revenue 83,543 101,360 (17,817 ) (17.6 ) Total operating revenue $ 583,695 $ 616,846 $ (33,151 ) (5.4 )% Operating income: Truckload $ 19,610 $ 31,659 $ (12,049 ) (38.1 )% Dedicated 27,857 24,684 3,173 12.9 Intermodal 622 9,133 (8,511 ) (93.2 ) Brokerage 9,134 11,319 (2,185 ) (19.3 ) Total operating income $ 57,223 $ 76,795 $ (19,572 ) (25.5 )% Operating ratio: Truckload 91.8 % 86.8 % Dedicated 86.8 88.1 Intermodal 98.8 86.7 Brokerage 89.1 88.8 Consolidated operating ratio 90.2 % 87.6 % Operating ratio, net of fuel surcharges: Truckload 90.4 % 83.9 % Dedicated 84.0 84.8 Intermodal 98.5 82.9 Brokerage 89.1 88.8 Consolidated operating ratio, net of fuel surcharges 88.6 % 85.1 % MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited) Three Months Six Months Ended June 30, Ended June 30, 2023 2022 2023 2022 Truckload Segment: Revenue (in thousands) $ 117,138 $ 126,972 $ 237,764 $ 239,762 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,472 $ 5,080 $ 4,521 $ 5,030 Average tractors(1) 1,742 1,542 1,742 1,515 Average miles per trip 505 509 507 514 Non-revenue miles percentage(2) 12.4 % 10.7 % 12.5 % 10.6 % Total miles (in thousands) 39,321 36,752 77,558 72,124 Dedicated Segment: Revenue (in thousands) $ 104,985 $ 110,355 $ 211,434 $ 207,115 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,986 $ 4,072 $ 3,973 $ 3,962 Average tractors(1) 1,687 1,594 1,696 1,589 Average miles per trip 332 341 332 341 Non-revenue miles percentage(2) 1.3 % 1.0 % 1.2 % 1.1 % Total miles (in thousands) 34,833 34,134 68,909 66,887 Intermodal Segment: Revenue (in thousands) $ 22,365 $ 36,967 $ 50,954 $ 68,609 Loads 6,267 8,703 13,544 16,997 Average tractors 170 175 175 169 Brokerage Segment: Revenue (in thousands) $ 41,184 $ 55,271 $ 83,543 $ 101,360 Loads 22,718 25,322 43,406 45,006 At June 30, 2023 and June 30, 2022: Total tractors(1) 3,516 3,395 Average age of company tractors (in years) 1.7 1.6 Total trailers 5,786 5,521 Average age of company trailers (in years) 4.2 3.6 Ratio of trailers to tractors(1) 1.6 1.6 Total refrigerated containers 791 784 Three Months Six Months Ended June 30, Ended June 30, (In thousands) 2023 2022 2023 2022 Net cash provided by operating activities $ 48,969 $ 58,730 $ 98,201 $ 98,670 Net cash (used for) investing activities (60,359 ) (35,413 ) (88,639 ) (35,004 ) Net cash (used for) financing activities (4,370 ) (21,470 ) (9,634 ) (52,287 ) Weighted average shares outstanding: Basic 81,263 81,689 81,236 82,310 Diluted 81,412 82,015 81,394 82,617 (1 ) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 98 and 85 tractors as of June 30, 2023 and 2022, respectively. (2 ) Represents the percentage of miles for which the company is not compensated. 
