Marten Transport Announces Second Quarter Results
MONDOVI, Wis., July 17, 2018 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS: MRTN) today reported a 49.9% improvement in net income to $13.7 million, or 25 cents per diluted share, for the second quarter ended June 30, 2018, from $9.1 million, or 17 cents per diluted share, for the second quarter of 2017. The second quarter earnings improved 32.6% sequentially from 2018 first quarter net income of $10.3 million, or 19 cents per diluted share. Net income improved 38.5% to $24.0 million, or 44 cents per diluted share, for the first six months of 2018, from $17.4 million, or 32 cents per diluted share, for the first half of 2017.
Operating revenue improved 14.9% to $197.0 million for the second quarter of 2018 from $171.5 million for the second quarter of 2017, and improved 11.4% to $384.0 million for the first six months of 2018 from $344.7 million for the 2017 six-month period. Excluding fuel surcharges, operating revenue improved 8.5% to $169.2 million for the 2018 quarter from $155.9 million for the 2017 quarter, and improved 6.6% to $333.1 million for the first six months of 2018 from $312.5 million for the 2017 six-month period. Fuel surcharge revenue increased to $27.8 million for the 2018 quarter from $15.6 million for the 2017 quarter, and increased to $50.9 million for the first six months of 2018 from $32.2 million for the 2017 six-month period.
Operating expenses for the second quarter of 2018 were 90.8% of operating revenue, compared with 90.9% for the second quarter of 2017. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.2% for the second quarter of 2018 from 90.0% for the second quarter of 2017.
Operating expenses for the first six months of 2018 were 91.7% of operating revenue, compared with 91.4% for the 2017 six-month period. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 90.4% for the first six months of 2018 from 90.6% for the 2017 six-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, “Our improved top- and bottom-line results demonstrate the balanced strength of Marten’s unique multifaceted business model, with significant increases in the operating income produced across our four distinct operating platforms – Truckload, Dedicated, Intermodal and Brokerage. With our talented people continuing to position our operations to capitalize on the strengthening freight environment, we expect to deliver continued growth with increasing compensation for our premium services, additional freight with existing and new customers, and our emphasis on operating efficiencies and cost controls.”
“Our agreements with a number of customers included a shift beginning in this year’s first quarter from line haul to fuel surcharge revenue, which reduced our Dedicated and Truckload revenue, net of fuel surcharges, by $200 and $43 per tractor per week in the second quarter, and by $155 and $28 per tractor per week in the first half of this year. The change reduced our revenue excluding fuel surcharges by $3.8 million for the second quarter and by $5.4 million for this year’s first six months, while increasing our fuel surcharge revenue by the same amounts.”
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,523 dry trailers operating as of June 30, 2018. Marten 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 the Company’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 Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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, 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 | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| (In thousands, except share information) | 2018 | 2017 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 22,003 | $ | 15,791 | ||||
| Receivables: | ||||||||
| Trade, net | 80,492 | 74,886 | ||||||
| Other | 12,247 | 6,131 | ||||||
| Prepaid expenses and other | 19,876 | 19,810 | ||||||
| Total current assets | 134,618 | 116,618 | ||||||
| Property and equipment: | ||||||||
| Revenue equipment, buildings and land, office equipment and other | 805,723 | 783,648 | ||||||
| Accumulated depreciation | (218,071 | ) | (211,728 | ) | ||||
| Net property and equipment | 587,652 | 571,920 | ||||||
| Other assets | 2,169 | 1,865 | ||||||
| Total assets | $ | 724,439 | $ | 690,403 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 45,782 | $ | 38,100 | ||||
| Insurance and claims accruals | 25,574 | 26,177 | ||||||
| Total current liabilities | 71,356 | 64,277 | ||||||
| Deferred income taxes | 103,841 | 100,626 | ||||||
| Total liabilities | 175,197 | 164,903 | ||||||
| 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; 54,659,074 shares at June 30, 2018, and 54,533,455 shares at December 31, 2017, issued and outstanding | 547 | 545 | ||||||
| Additional paid-in capital | 78,366 | 76,413 | ||||||
| Retained earnings | 470,329 | 448,542 | ||||||
| Total stockholders’ equity | 549,242 | 525,500 | ||||||
| Total liabilities and stockholders’ equity | $ | 724,439 | $ | 690,403 | ||||
| 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) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Operating revenue | $ | 197,024 | $ | 171,511 | $ | 383,984 | $ | 344,670 | ||||||||
| Operating expenses (income): | ||||||||||||||||
| Salaries, wages and benefits | 63,250 | 56,715 | 122,072 | 113,115 | ||||||||||||
| Purchased transportation | 35,048 | 27,516 | 70,074 | 56,878 | ||||||||||||
| Fuel and fuel taxes | 31,742 | 25,007 | 60,786 | 50,963 | ||||||||||||
| Supplies and maintenance | 10,251 | 10,541 | 20,687 | 21,531 | ||||||||||||
| Depreciation | 22,193 | 21,306 | 44,008 | 42,689 | ||||||||||||
| Operating taxes and licenses | 2,364 | 2,252 | 4,651 | 4,499 | ||||||||||||
| Insurance and claims | 8,941 | 8,848 | 19,231 | 17,762 | ||||||||||||
| Communications and utilities | 1,647 | 1,487 | 3,330 | 3,068 | ||||||||||||
| Gain on disposition of revenue equipment | (2,160 | ) | (1,871 | ) | (3,371 | ) | (2,974 | ) | ||||||||
| Other | 5,525 | 4,141 | 10,699 | 7,632 | ||||||||||||
| Total operating expenses | 178,801 | 155,942 | 352,167 | 315,163 | ||||||||||||
| Operating income | 18,223 | 15,569 | 31,817 | 29,507 | ||||||||||||
| Other | (138 | ) | 125 | (327 | ) | 266 | ||||||||||
| Income before income taxes | 18,361 | 15,444 | 32,144 | 29,241 | ||||||||||||
| Income taxes expense | 4,659 | 6,303 | 8,111 | 11,886 | ||||||||||||
| Net income | $ | 13,702 | $ | 9,141 | $ | 24,033 | $ | 17,355 | ||||||||
| Basic earnings per common share | $ | 0.25 | $ | 0.17 | $ | 0.44 | $ | 0.32 | ||||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.17 | $ | 0.44 | $ | 0.32 | ||||||||
| Dividends declared per common share | $ | 0.025 | $ | 0.015 | $ | 0.05 | $ | 0.03 | ||||||||
| 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) | 2018 | 2017 | 2018 vs. 2017 | 2018 vs. 2017 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 80,525 | $ | 84,480 | $ | (3,955 | ) | (4.7 | )% | |||||||
| Truckload fuel surcharge revenue | 13,879 | 10,434 | 3,445 | 33.0 | ||||||||||||
| Total Truckload revenue | 94,404 | 94,914 | (510 | ) | (0.5 | ) | ||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 47,232 | 38,601 | 8,631 | 22.4 | ||||||||||||
| Dedicated fuel surcharge revenue | 9,739 | 2,901 | 6,838 | 235.7 | ||||||||||||
| Total Dedicated revenue | 56,971 | 41,502 | 15,469 | 37.3 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 21,291 | 16,877 | 4,414 | 26.2 | ||||||||||||
| Intermodal fuel surcharge revenue | 4,179 | 2,238 | 1,941 | 86.7 | ||||||||||||
| Total Intermodal revenue | 25,470 | 19,115 | 6,355 | 33.2 | ||||||||||||
| Brokerage revenue | 20,179 | 15,980 | 4,199 | 26.3 | ||||||||||||
| Total operating revenue | $ | 197,024 | $ | 171,511 | $ | 25,513 | 14.9 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 8,689 | $ | 7,511 | $ | 1,178 | 15.7 | % | ||||||||
| Dedicated | 5,584 | 5,074 | 510 | 10.1 | ||||||||||||
| Intermodal | 2,512 | 2,040 | 472 | 23.1 | ||||||||||||
| Brokerage | 1,438 | 944 | 494 | 52.3 | ||||||||||||
| Total operating income | $ | 18,223 | $ | 15,569 | $ | 2,654 | 17.0 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 90.8 | % | 92.1 | % | ||||||||||||
| Dedicated | 90.2 | 87.8 | ||||||||||||||
| Intermodal | 90.1 | 89.3 | ||||||||||||||
| Brokerage | 92.9 | 94.1 | ||||||||||||||
| Consolidated operating ratio | 90.8 | % | 90.9 | % | ||||||||||||
| 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) | 2018 | 2017 | 2018 vs. 2017 | 2018 vs. 2017 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 160,741 | $ | 169,291 | $ | (8,550 | ) | (5.1 | )% | |||||||
| Truckload fuel surcharge revenue | 26,680 | 21,281 | 5,399 | 25.4 | ||||||||||||
| Total Truckload revenue | 187,421 | 190,572 | (3,151 | ) | (1.7 | ) | ||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 89,596 | 75,500 | 14,096 | 18.7 | ||||||||||||
| Dedicated fuel surcharge revenue | 16,208 | 6,279 | 9,929 | 158.1 | ||||||||||||
| Total Dedicated revenue | 105,804 | 81,779 | 24,025 | 29.4 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 42,099 | 33,688 | 8,411 | 25.0 | ||||||||||||
| Intermodal fuel surcharge revenue | 8,023 | 4,613 | 3,410 | 73.9 | ||||||||||||
| Total Intermodal revenue | 50,122 | 38,301 | 11,821 | 30.9 | ||||||||||||
| Brokerage revenue | 40,637 | 34,018 | 6,619 | 19.5 | ||||||||||||
| Total operating revenue | $ | 383,984 | $ | 344,670 | $ | 39,314 | 11.4 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 15,504 | $ | 13,485 | $ | 2,019 | 15.0 | % | ||||||||
| Dedicated | 8,072 | 9,561 | (1,489 | ) | (15.6 | ) | ||||||||||
| Intermodal | 5,490 | 4,189 | 1,301 | 31.1 | ||||||||||||
| Brokerage | 2,751 | 2,272 | 479 | 21.1 | ||||||||||||
| Total operating income | $ | 31,817 | $ | 29,507 | $ | 2,310 | 7.8 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 91.7 | % | 92.9 | % | ||||||||||||
| Dedicated | 92.4 | 88.3 | ||||||||||||||
| Intermodal | 89.0 | 89.1 | ||||||||||||||
| Brokerage | 93.2 | 93.3 | ||||||||||||||
| Consolidated operating ratio | 91.7 | % | 91.4 | % | ||||||||||||
| MARTEN TRANSPORT, LTD. | ||||||||||||||||
| OPERATING STATISTICS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months | Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Truckload Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 94,404 | $ | 94,914 | $ | 187,421 | $ | 190,572 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,795 | $ | 3,467 | $ | 3,736 | $ | 3,441 | ||||||||
| Average tractors(1) | 1,632 | 1,875 | 1,664 | 1,903 | ||||||||||||
| Average miles per trip | 568 | 589 | 585 | 602 | ||||||||||||
| Non-revenue miles percentage(2) | 9.6 | % | 9.0 | % | 8.2 | % | 9.3 | % | ||||||||
| Total miles (in thousands) | 39,502 | 45,736 | 80,084 | 91,796 | ||||||||||||
| Dedicated Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 56,971 | $ | 41,502 | $ | 105,804 | $ | 81,779 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,282 | $ | 3,488 | $ | 3,275 | $ | 3,475 | ||||||||
| Average tractors(1) | 1,107 | 851 | 1,058 | 840 | ||||||||||||
| Average miles per trip | 300 | 292 | 299 | 296 | ||||||||||||
| Non-revenue miles percentage(2) | 0.7 | % | 0.7 | % | 0.9 | % | 0.7 | % | ||||||||
| Total miles (in thousands) | 23,747 | 19,357 | 44,882 | 37,936 | ||||||||||||
| Intermodal Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 25,470 | $ | 19,115 | $ | 50,122 | $ | 38,301 | ||||||||
| Loads | 10,622 | 9,793 | 21,359 | 19,377 | ||||||||||||
| Average tractors | 91 | 81 | 86 | 79 | ||||||||||||
| Brokerage Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 20,179 | $ | 15,980 | $ | 40,637 | $ | 34,018 | ||||||||
| Loads | 12,120 | 11,578 | 24,009 | 24,932 | ||||||||||||
| At June 30, 2018 and June 30, 2017: | ||||||||||||||||
| Total tractors(1) | 2,761 | 2,711 | ||||||||||||||
| Average age of company tractors (in years) | 1.6 | 1.5 | ||||||||||||||
| Total trailers | 5,402 | 4,925 | ||||||||||||||
| Average age of company trailers (in years) | 2.6 | 2.8 | ||||||||||||||
| Ratio of trailers to tractors(1) | 2.0 | 1.8 | ||||||||||||||
| Three Months | Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| (In thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Net cash provided by operating activities | $ | 44,193 | $ | 27,546 | $ | 67,375 | $ | 65,220 | ||||||||
| Net cash (used for) investing activities | (31,785 | ) | (26,003 | ) | (59,177 | ) | (46,965 | ) | ||||||||
| Net cash (used for) financing activities | (803 | ) | (550 | ) | (1,986 | ) | (8,685 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 54,613 | 54,493 | 54,592 | 54,459 | ||||||||||||
| Diluted | 55,126 | 54,802 | 55,115 | 54,772 | ||||||||||||
| (1) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 52 and 63 tractors as of June 30, 2018 and 2017, respectively. | |
| (2) | Represents the percentage of miles for which the company is not compensated. | |