-
Marten Transport Announces Third Quarter Results
Source: Nasdaq GlobeNewswire / 17 Oct 2022 16:01:01 America/New_York
MONDOVI, Wis., Oct. 17, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 20.6% improvement in net income to $25.6 million, or 32 cents per diluted share, for the third quarter ended September 30, 2022, from $21.3 million, or 26 cents per diluted share, for the third quarter of 2021 – the Company’s fifteenth consecutive year-over-year increase in quarterly profitability. For the first nine months of 2022, net income improved 39.8% to $84.8 million, or $1.03 per diluted share, from $60.7 million, or 73 cents per diluted share, for the first nine months of 2021.
Operating Results Comparison Percentage Percentage Percentage Percentage Percentage Percentage Increase Increase Increase Increase Increase Increase Three Months Three Months Three Months Year Year Year Ended Ended Ended Ended Ended Ended September 30, June 30, March 31, December 31, December 31, December 31, 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 Operating revenue 29.1 % 41.8 % 28.8 % 11.4 % 3.7 % 7.1 % Operating revenue, net of fuel surcharges 21.8 % 32.1 % 23.8 % 8.3 % 6.8 % 8.6 % Operating income 18.5 % 43.5 % 49.4 % 19.8 % 21.9 % 8.7 % Net income 20.6 % 47.8 % 52.9 % 22.9 % 13.8 % 11.0 % Operating revenue improved 29.1% to $324.4 million for the third quarter of 2022 from $251.3 million for the third quarter of 2021. Excluding fuel surcharges, operating revenue improved 21.8% to $269.3 million for the 2022 quarter from $221.2 million for the 2021 quarter. Fuel surcharge revenue increased to $55.1 million for the 2022 quarter from $30.1 million for the 2021 quarter due to significantly higher fuel prices.
Operating revenue improved 33.2% to $941.3 million for the first nine months of 2022 from $706.8 million for the first nine months of 2021. Excluding fuel surcharges, operating revenue improved 25.8% to $783.8 million for the 2022 period from $623.0 million for the 2021 period. Fuel surcharge revenue increased to $157.5 million for the 2022 period from $83.7 million for 2021 period.
Operating income improved 18.5% to $33.8 million for the third quarter of 2022 from $28.5 million for the third quarter of 2021, and also improved 36.5% to $110.6 million for the first nine months of 2022 from $81.0 million for the first nine months of 2021.
Operating expenses as a percentage of operating revenue were 89.6% for the third quarter of 2022 and 88.7% for the third quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 87.5% for the 2022 quarter and 87.1% for the 2021 quarter.
Operating expenses as a percentage of operating revenue improved to 88.3% for the first nine months of 2022 from 88.5% for the first nine months of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.9% from 87.0%.
Executive Chairman Randolph L. Marten stated, “The smart, hard work of our talented people executing our unique business model has produced improvements of 29.1% in top-line and 20.6% in bottom-line results over the third quarter of 2021. These results overcame significantly less gain on disposition of our revenue equipment, the negative effect of Hurricane Ian on our sizable Southeast truckload and dedicated operations, and a decrease in our intermodal volumes and margins resulting from weakness in rail service aggravated by the threat of a rail labor strike in mid-September.”
“We continue to drive strong fleet growth with our approach to overcoming the national shortage of qualified drivers of applying a heightened emphasis on structurally improving our drivers’ jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. This growth provides momentum to the coming quarters as we began this year’s fourth quarter with 199 more of the industry’s top drivers than we employed at the beginning of the third quarter – and have now increased our number of drivers by 621, or 22.6%, since June 30, 2021.”
Operating Results Since the Pandemic Began – Percentage Increase Over Same Quarter of Prior Year Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Operating revenue 29.1 % 41.8 % 28.8 % 17.4 % 16.3 % 9.4 % 2.0 % 4.7 % 0.5 % 0.1 % Operating revenue, net of fuel surcharges 21.8 % 32.1 % 23.8 % 12.5 % 12.8 % 5.0 % 2.5 % 8.8 % 3.8 % 4.7 % Operating income 18.5 % 43.5 % 49.4 % 20.0 % 16.8 % 12.9 % 33.1 % 36.0 % 21.8 % 26.6 % Net income 20.6 % 47.8 % 52.9 % 26.1 % 17.9 % 18.1 % 31.3 % 24.5 % 8.8 % 19.4 % 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 SHEETSSeptember 30, December 31, (In thousands, except share information) 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 71,492 $ 56,995 Receivables: Trade, net 124,587 99,003 Other 4,443 6,971 Prepaid expenses and other 24,787 23,980 Total current assets 225,309 186,949 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,046,476 956,476 Accumulated depreciation (334,504 ) (274,199 ) Net property and equipment 711,972 682,277 Other noncurrent assets 1,421 1,464 Total assets $ 938,702 $ 870,690 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 43,188 $ 20,150 Insurance and claims accruals 45,664 42,014 Accrued and other current liabilities 36,605 31,395 Total current liabilities 125,457 93,559 Deferred income taxes 130,594 125,163 Noncurrent operating lease liabilities 214 291 Total liabilities 256,265 219,013 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; 81,096,632 shares at September 30, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding 811 830 Additional paid-in capital 46,366 85,718 Retained earnings 635,260 565,129 Total stockholders’ equity 682,437 651,677 Total liabilities and stockholders’ equity $ 938,702 $ 870,690 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) 2022 2021 2022 2021 Operating revenue $ 324,448 $ 251,280 $ 941,294 $ 706,768 Operating expenses (income): Salaries, wages and benefits 99,773 81,091 285,582 229,385 Purchased transportation 64,403 52,861 189,193 138,629 Fuel and fuel taxes 57,299 33,909 163,004 94,853 Supplies and maintenance 14,855 11,685 40,520 33,867 Depreciation 28,381 25,371 81,389 76,598 Operating taxes and licenses 2,748 2,606 8,051 8,036 Insurance and claims 11,949 10,501 38,096 31,338 Communications and utilities 2,135 2,181 6,639 6,320 Gain on disposition of revenue equipment (1,070 ) (4,536 ) (10,422 ) (11,859 ) Other 10,209 7,115 28,681 18,589 Total operating expenses 290,682 222,784 830,733 625,756 Operating income 33,766 28,496 110,561 81,012 Other (264 ) (8 ) (307 ) (27 ) Income before income taxes 34,030 28,504 110,868 81,039 Income taxes expense 8,384 7,230 26,028 20,341 Net income $ 25,646 $ 21,274 $ 84,840 $ 60,698 Basic earnings per common share $ 0.32 $ 0.26 $ 1.04 $ 0.73 Diluted earnings per common share $ 0.32 $ 0.26 $ 1.03 $ 0.73 Dividends paid per common share $ 0.06 $ - $ 0.18 $ 0.08 Dividends declared per common share $ 0.06 $ 0.54 $ 0.18 $ 0.62 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) 2022 2021 2022 vs. 2021 2022 vs. 2021 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 105,905 $ 86,889 $ 19,016 21.9 % Truckload fuel surcharge revenue 23,471 12,728 10,743 84.4 Total Truckload revenue 129,376 99,617 29,759 29.9 Dedicated revenue, net of fuel surcharge revenue 86,178 68,826 17,352 25.2 Dedicated fuel surcharge revenue 24,039 13,336 10,703 80.3 Total Dedicated revenue 110,217 82,162 28,055 34.1 Intermodal revenue, net of fuel surcharge revenue 24,303 22,716 1,587 7.0 Intermodal fuel surcharge revenue 7,600 4,031 3,569 88.5 Total Intermodal revenue 31,903 26,747 5,156 19.3 Brokerage revenue 52,952 42,754 10,198 23.9 Total operating revenue $ 324,448 $ 251,280 $ 73,168 29.1 % Operating income: Truckload $ 14,319 $ 11,670 $ 2,649 22.7 % Dedicated 13,005 8,521 4,484 52.6 Intermodal 778 2,840 (2,062 ) (72.6 ) Brokerage 5,664 5,465 199 3.6 Total operating income $ 33,766 $ 28,496 $ 5,270 18.5 % Operating ratio: Truckload 88.9 % 88.3 % Dedicated 88.2 89.6 Intermodal 97.6 89.4 Brokerage 89.3 87.2 Consolidated operating ratio 89.6 % 88.7 % Operating ratio, net of fuel surcharges: Truckload 86.5 % 86.6 % Dedicated 84.9 87.6 Intermodal 96.8 87.5 Brokerage 89.3 87.2 Consolidated operating ratio, net of fuel surcharges 87.5 % 87.1 % 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) 2022 2021 2022 vs. 2021 2022 vs. 2021 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 302,883 $ 254,441 $ 48,442 19.0 % Truckload fuel surcharge revenue 66,255 36,032 30,223 83.9 Total Truckload revenue 369,138 290,473 78,665 27.1 Dedicated revenue, net of fuel surcharge revenue 248,988 202,955 46,033 22.7 Dedicated fuel surcharge revenue 68,344 37,565 30,779 81.9 Total Dedicated revenue 317,332 240,520 76,812 31.9 Intermodal revenue, net of fuel surcharge revenue 77,589 64,193 13,396 20.9 Intermodal fuel surcharge revenue 22,923 10,150 12,773 125.8 Total Intermodal revenue 100,512 74,343 26,169 35.2 Brokerage revenue 154,312 101,432 52,880 52.1 Total operating revenue $ 941,294 $ 706,768 $ 234,526 33.2 % Operating income: Truckload $ 45,978 $ 36,282 $ 9,696 26.7 % Dedicated 37,689 28,074 9,615 34.2 Intermodal 9,911 6,151 3,760 61.1 Brokerage 16,983 10,505 6,478 61.7 Total operating income $ 110,561 $ 81,012 $ 29,549 36.5 % Operating ratio: Truckload 87.5 % 87.5 % Dedicated 88.1 88.3 Intermodal 90.1 91.7 Brokerage 89.0 89.6 Consolidated operating ratio 88.3 % 88.5 % Operating ratio, net of fuel surcharges: Truckload 84.8 % 85.7 % Dedicated 84.9 86.2 Intermodal 87.2 90.4 Brokerage 89.0 89.6 Consolidated operating ratio, net of fuel surcharges 85.9 % 87.0 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Nine Months Ended September 30, Ended September 30, 2022 2021 2022 2021 Truckload Segment: Revenue (in thousands) $ 129,376 $ 99,617 $ 369,138 $ 290,473 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,889 $ 4,411 $ 4,980 $ 4,202 Average tractors(1) 1,648 1,499 1,560 1,553 Average miles per trip 508 502 512 516 Non-revenue miles percentage(2) 11.3 % 10.1 % 10.8 % 10.0 % Total miles (in thousands) 38,441 35,945 110,565 111,513 Dedicated Segment: Revenue (in thousands) $ 110,217 $ 82,162 $ 317,332 $ 240,520 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,006 $ 3,438 $ 3,977 $ 3,305 Average tractors(1) 1,637 1,523 1,605 1,574 Average miles per trip 337 328 340 319 Non-revenue miles percentage(2) 1.2 % 1.1 % 1.1 % 1.0 % Total miles (in thousands) 34,513 31,511 101,400 95,765 Intermodal Segment: Revenue (in thousands) $ 31,903 $ 26,747 $ 100,512 $ 74,343 Loads 7,610 8,257 24,607 24,885 Average tractors 182 139 173 140 Brokerage Segment: Revenue (in thousands) $ 52,952 $ 42,754 $ 154,312 $ 101,432 Loads 24,896 18,251 69,902 47,167 At September 30, 2022 and September 30, 2021: Total tractors(1) 3,575 3,204 Average age of company tractors (in years) 1.7 1.4 Total trailers 5,679 5,291 Average age of company trailers (in years) 3.8 3.2 Ratio of trailers to tractors(1) 1.6 1.7 Total refrigerated containers 803 607 Three Months Nine Months Ended September 30, Ended September 30, (In thousands) 2022 2021 2022 2021 Net cash provided by operating activities $ 64,551 $ 44,544 $ 163,221 $ 127,909 Net cash (used for) investing activities (57,412 ) (40,704 ) (92,416 ) (102,142 ) Net cash (used for) financing activities (4,021 ) (612 ) (56,308 ) (7,994 ) Weighted average shares outstanding: Basic 81,061 82,907 81,889 82,835 Diluted 81,347 83,372 82,155 83,380 (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 90 and 101 tractors as of September 30, 2022 and 2021, respectively. (2) Represents the percentage of miles for which the company is not compensated. 
