Marten Transport Announces First Quarter Results
MONDOVI, Wis., April 16, 2019 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS: MRTN) today reported a 31.1% improvement in net income to $13.5 million, or 25 cents per diluted share, for the first quarter ended March 31, 2019, from $10.3 million, or 19 cents per diluted share, for the first quarter of 2018.
Operating revenue improved 6.5% to $199.0 million for the first quarter of 2019 from $187.0 million for the first quarter of 2018, and improved 12.3% to $799.7 million for the trailing twelve months ended March 31, 2019 from $711.9 million for the similar period ended March 31, 2018. Excluding fuel surcharges, operating revenue improved 7.1% to $175.5 million for the 2019 quarter from $163.8 million for the 2018 quarter. Fuel surcharge revenue increased slightly to $23.6 million from $23.1 million over the same periods.
Operating income improved 30.4% to $17.7 million for the first quarter of 2019 from $13.6 million for the first quarter of 2018, and improved 31.8% to $74.5 million for the trailing twelve months ended March 31, 2019 from $56.5 million for the similar period ended March 31, 2018.
Operating expenses as a percentage of operating revenue improved to 91.1% for the first quarter of 2019 from 92.7% for the first quarter of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.9% from 91.7% over the same periods.
Operating expenses as a percentage of operating revenue improved to 90.7% for the trailing twelve months ended March 31, 2019 from 92.1% for the similar period ended March 31, 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.3% from 91.1% over the same periods.
| Operating Results Comparison | ||||||||||||||||||
| Net income and diluted earnings per common share presented below for the TTM ended Mar. 31, 2018 exclude a $56.5 million deferred income tax benefit in the fourth quarter of 2017. Net income including the benefit for the TTM ended Mar. 31, 2018 was $92.4 million, or $1.68 per diluted share. | ||||||||||||||||||
| Percentage | Percentage | |||||||||||||||||
| Change | Change | |||||||||||||||||
| Three Months | Trailing | Trailing Twelve | ||||||||||||||||
| Three Months | Ended | Twelve Months | Months Ended | |||||||||||||||
| Ended Mar. 31, | Mar. 31, | Ended Mar. 31, | Mar. 31, | |||||||||||||||
| (Dollars in thousands, except share information) | 2019 | 2018 | 2019 vs. 2018 | 2019 | 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue | $ | 199,023 | $ | 186,960 | 6.5 | % | $ | 799,657 | $ | 711,921 | 12.3 | % | ||||||
| Operating income | $ | 17,733 | $ | 13,594 | 30.4 | % | $ | 74,487 | $ | 56,518 | 31.8 | % | ||||||
| Net income | $ | 13,546 | $ | 10,331 | 31.1 | % | $ | 58,242 | $ | 35,936 | 62.1 | % | ||||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.19 | 31.2 | % | $ | 1.06 | $ | 0.65 | 61.6 | % | ||||||
| Operating ratio, excluding fuel surcharges | 89.9 | % | 91.7 | % | 89.3 | % | 91.1 | % | ||||||||||
Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased to report our continued strong top- and bottom-line results for this quarter, which produced our best-ever first-quarter operating revenue, operating income and net income. Our 30.4% year-over-year improvement in operating income for the first quarter consistently furthers our 31.8% operating income increase in the last twelve months. We expect to see strong demand throughout 2019 for our premium services with our diversified base of over 650 customers. We added 65 Truckload and 51 Dedicated tractors during the first quarter, and we expect to build on this success in recruiting and retaining the industry’s top, experienced drivers to increase our capacity to service our existing and new customers. In addition, we enhanced our balance sheet position with $85.5 million in cash at March 31, 2019, up from $56.8 million at the beginning of the year.”
“A number of our customer agreements included a shift beginning mid-first quarter last year from line haul to fuel surcharge revenue, which reduced our Dedicated and Truckload revenue excluding fuel surcharges by $2.9 million and $782,000, respectively, for this year’s first quarter, and by $1.4 million and $282,000, respectively, for the first quarter of 2018. Our fuel surcharge revenue increased in both periods by the same amounts.”
Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of 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 and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,596 dry vans operating as of March 31, 2019. The Company 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, 2018. 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
| March 31, | December 31, | |||||||
| (In thousands, except share information) | 2019 | 2018 | ||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 85,526 | $ | 56,763 | ||||
| Receivables: | ||||||||
| Trade, net | 84,443 | 83,033 | ||||||
| Other | 5,273 | 3,808 | ||||||
| Prepaid expenses and other | 18,025 | 19,924 | ||||||
| Total current assets | 193,267 | 163,528 | ||||||
| Property and equipment: | ||||||||
| Revenue equipment, buildings and land, office equipment and other | 819,809 | 816,430 | ||||||
| Accumulated depreciation | (241,658 | ) | (228,200 | ) | ||||
| Net property and equipment | 578,151 | 588,230 | ||||||
| Other noncurrent assets | 3,109 | 2,146 | ||||||
| Total assets | $ | 774,527 | $ | 753,904 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 18,512 | $ | 15,704 | ||||
| Insurance and claims accruals | 29,381 | 28,103 | ||||||
| Accrued and other current liabilities | 31,649 | 28,166 | ||||||
| Total current liabilities | 79,542 | 71,973 | ||||||
| Deferred income taxes | 106,796 | 105,977 | ||||||
| Noncurrent operating lease liabilities | 452 | - | ||||||
| Total liabilities | 186,790 | 177,950 | ||||||
| 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; 54,572,289 shares at March 31, 2019, and 54,466,691 shares at December 31, 2018, issued and outstanding | 546 | 545 | ||||||
| Additional paid-in capital | 76,687 | 76,814 | ||||||
| Retained earnings | 510,504 | 498,595 | ||||||
| Total stockholders’ equity | 587,737 | 575,954 | ||||||
| Total liabilities and stockholders’ equity | $ | 774,527 | $ | 753,904 | ||||
MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)
| Three Months | ||||||||
| Ended March 31, | ||||||||
| (In thousands, except per share information) | 2019 | 2018 | ||||||
| Operating revenue | $ | 199,023 | $ | 186,960 | ||||
| Operating expenses (income): | ||||||||
| Salaries, wages and benefits | 63,524 | 58,822 | ||||||
| Purchased transportation | 38,249 | 35,026 | ||||||
| Fuel and fuel taxes | 27,677 | 29,044 | ||||||
| Supplies and maintenance | 11,121 | 10,436 | ||||||
| Depreciation | 22,543 | 21,815 | ||||||
| Operating taxes and licenses | 2,333 | 2,287 | ||||||
| Insurance and claims | 9,875 | 10,290 | ||||||
| Communications and utilities | 1,950 | 1,683 | ||||||
| Gain on disposition of revenue equipment | (1,548 | ) | (1,211 | ) | ||||
| Other | 5,566 | 5,174 | ||||||
| Total operating expenses | 181,290 | 173,366 | ||||||
| Operating income | 17,733 | 13,594 | ||||||
| Other | (278 | ) | (189 | ) | ||||
| Income before income taxes | 18,011 | 13,783 | ||||||
| Income taxes expense | 4,465 | 3,452 | ||||||
| Net income | $ | 13,546 | $ | 10,331 | ||||
| Basic earnings per common share | $ | 0.25 | $ | 0.19 | ||||
| Diluted earnings per common share | $ | 0.25 | $ | 0.19 | ||||
| Dividends declared per common share | $ | 0.03 | $ | 0.025 | ||||
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) | 2019 | 2018 | 2019 vs. 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 80,167 | $ | 80,216 | $ | (49 | ) | (0.1 | )% | |||||||
| Truckload fuel surcharge revenue | 11,555 | 12,801 | (1,246 | ) | (9.7 | ) | ||||||||||
| Total Truckload revenue | 91,722 | 93,017 | (1,295 | ) | (1.4 | ) | ||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 48,924 | 42,364 | 6,560 | 15.5 | ||||||||||||
| Dedicated fuel surcharge revenue | 8,801 | 6,469 | 2,332 | 36.0 | ||||||||||||
| Total Dedicated revenue | 57,725 | 48,833 | 8,892 | 18.2 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 19,755 | 20,808 | (1,053 | ) | (5.1 | ) | ||||||||||
| Intermodal fuel surcharge revenue | 3,216 | 3,844 | (628 | ) | (16.3 | ) | ||||||||||
| Total Intermodal revenue | 22,971 | 24,652 | (1,681 | ) | (6.8 | ) | ||||||||||
| Brokerage revenue | 26,605 | 20,458 | 6,147 | 30.0 | ||||||||||||
| Total operating revenue | $ | 199,023 | $ | 186,960 | $ | 12,063 | 6.5 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 7,555 | $ | 6,815 | $ | 740 | 10.9 | % | ||||||||
| Dedicated | 5,515 | 2,488 | 3,027 | 121.7 | ||||||||||||
| Intermodal | 2,394 | 2,978 | (584 | ) | (19.6 | ) | ||||||||||
| Brokerage | 2,269 | 1,313 | 956 | 72.8 | ||||||||||||
| Total operating income | $ | 17,733 | $ | 13,594 | $ | 4,139 | 30.4 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 91.8 | % | 92.7 | % | ||||||||||||
| Dedicated | 90.4 | 94.9 | ||||||||||||||
| Intermodal | 89.6 | 87.9 | ||||||||||||||
| Brokerage | 91.5 | 93.6 | ||||||||||||||
| Consolidated operating ratio | 91.1 | % | 92.7 | % | ||||||||||||
MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)
| Three Months | ||||||||
| Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Truckload Segment: | ||||||||
| Revenue (in thousands) | $ | 91,722 | $ | 93,017 | ||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,859 | $ | 3,679 | ||||
| Average tractors(1) | 1,616 | 1,696 | ||||||
| Average miles per trip | 562 | 603 | ||||||
| Non-revenue miles percentage(2) | 11.3 | % | 6.8 | % | ||||
| Total miles (in thousands) | 37,236 | 40,582 | ||||||
| Dedicated Segment: | ||||||||
| Revenue (in thousands) | $ | 57,725 | $ | 48,833 | ||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,382 | $ | 3,267 | ||||
| Average tractors(1) | 1,125 | 1,009 | ||||||
| Average miles per trip | 322 | 297 | ||||||
| Non-revenue miles percentage(2) | 0.6 | % | 1.1 | % | ||||
| Total miles (in thousands) | 23,643 | 21,135 | ||||||
| Intermodal Segment: | ||||||||
| Revenue (in thousands) | $ | 22,971 | $ | 24,652 | ||||
| Loads | 9,251 | 10,737 | ||||||
| Average tractors | 87 | 82 | ||||||
| Brokerage Segment: | ||||||||
| Revenue (in thousands) | $ | 26,605 | $ | 20,458 | ||||
| Loads | 15,266 | 11,889 | ||||||
| At March 31, 2019 and March 31, 2018: | ||||||||
| Total tractors(1) | 2,867 | 2,785 | ||||||
| Average age of company tractors (in years) | 1.8 | 1.6 | ||||||
| Total trailers | 5,313 | 5,308 | ||||||
| Average age of company trailers (in years) | 2.5 | 2.6 | ||||||
| Ratio of trailers to tractors(1) | 1.9 | 1.9 | ||||||
| Three Months | ||||||||
| Ended March 31, | ||||||||
| (In thousands) | 2019 | 2018 | ||||||
| Net cash provided by operating activities | $ | 36,803 | $ | 23,182 | ||||
| Net cash (used for) investing activities | (5,911 | ) | (27,392 | ) | ||||
| Net cash (used for) financing activities | (2,129 | ) | (1,183 | ) | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 54,553 | 54,572 | ||||||
| Diluted | 55,046 | 55,095 | ||||||
| (1) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 46 and 55 tractors as of March 31, 2019 and 2018, respectively. | |
| (2) | Represents the percentage of miles for which the company is not compensated. | |
