Marten Transport Announces Second Quarter Results; Net Income Improves to 23 Cents Per Diluted Share

News provided by

Marten Transport, Ltd.

Jul 20, 2010, 04:57 ET

MONDOVI, Wis., July 20, 2010 /PRNewswire-FirstCall/ -- Marten Transport, Ltd. (Nasdaq: MRTN) today reported a 15.2% increase in net income to $5.2 million, or 23 cents per diluted share, for the second quarter ended June 30, 2010, from $4.5 million, or 20 cents per diluted share, for the second quarter of 2009.  The second-quarter earnings also improved sequentially from 2010 first-quarter net income of $3.9 million, or 18 cents per diluted share.  For the six-month period of 2010, net income increased to $9.1 million, or 41 cents per diluted share, compared with $8.5 million, or 39 cents per diluted share, for the same six-month period of 2009.

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $125.9 million in the second quarter of 2010 from $125.8 million in the 2009 quarter and increased to $251.7 million in the six-month period of 2010 from $247.8 million in the 2009 six-month period.  The increases were primarily due to increased fuel surcharge revenue, which reflects higher fuel prices, and increases in logistics revenue.  Operating revenue, net of fuel surcharges, decreased 5.6% to $106.9 million in the 2010 quarter from $113.2 million in the 2009 quarter and decreased 4.0% to $215.4 million in the 2010 six-month period from $224.4 million in the 2009 six-month period.  Operating revenue included fuel surcharges of $19.0 million for the second quarter of 2010, compared with $12.6 million in the 2009 quarter and $36.3 million for the 2010 six-month period, compared with $23.4 million for the 2009 six-month period.

The operating ratio (operating expenses as a percentage of operating revenue) improved to 92.7% for the second quarter of 2010 from 94.0% for the second quarter of 2009 and improved to 93.6% for the 2010 six-month period from 94.0% for the 2009 six-month period.  Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 91.4% for the second quarter of 2010 from 93.4% for the second quarter of 2009 and improved to 92.5% for the 2010 six-month period from 93.4% for the 2009 six-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our solid results.  We continue to benefit from the advances in our transformation into a multi-faceted business model, focusing on expansion of our regional operations throughout the country, the growth of our logistics business, and our fuel efficiency and cost control measures.  

“These strategic initiatives have driven our positive results this year.  As evidence of the success of our regional operations, our average truckload revenue, net of fuel surcharges, per tractor per week increased by 4.7% in the second quarter over last year’s second quarter and by 5.5% over this year’s first quarter.  We have increased our regional operations to 40.4% of our truckload fleet as of June 30, 2010 from 20.4% as of a year earlier.  Our logistics revenue continues to be an important factor in our growth, providing an expanding percentage of our revenue.  In the second quarter of 2010, our logistics revenue, net of intermodal fuel surcharges, grew $1.1 million over the 2009 quarter and, for the 2010 six-month period, grew $6.0 million over the 2009 six-month period.  Additionally, we continue to decrease operating expenses in the face of increasing fuel prices through our aggressive cost controls.

"We are confident that our ongoing transformation into a multi-faceted business model will continue to work to our advantage regardless of the economic environment."

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. 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, including that the Company's transformation into a multi-faceted business model will continue to work to its advantage regardless of the economic environment. These statements 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, 2009. 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, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)

(In thousands, except share information)

June 30,
2010

December 31,
2009



ASSETS

 Current assets:

   Cash and cash equivalents

$3,563

$5,410

   Marketable securities

138

118

   Receivables:

     Trade, net

49,644

45,434

     Other

9,701

4,382

   Prepaid expenses and other

10,878

12,328

   Deferred income taxes

5,361

5,172



       Total current assets

79,285

72,844



 Property and equipment:

   Revenue equipment, buildings and land,



    office equipment and other

494,412

491,127

   Accumulated depreciation

(136,443)

(149,670)



       Net property and equipment

357,969

341,457



 Other assets

526

537



         TOTAL ASSETS

$437,780

$414,838



LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:

   Checks issued in excess of cash balances

$693

$1,671

   Accounts payable and accrued liabilities

36,066

31,896

   Insurance and claims accruals

18,219

19,222

   Current maturities of long-term debt

-

1,428



       Total current liabilities

54,978

54,217



 Long-term debt, less current maturities

13,521

71

 Deferred income taxes

84,141

85,643



       Total liabilities

152,640

139,931






 Stockholders' equity:

   Marten Transport, Ltd. 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;

      48,000,000 shares authorized; 21,934,232 shares

      at June 30, 2010, and 21,885,073 shares at

      December 31, 2009, issued and outstanding

219

219

     Additional paid-in capital

77,444

76,477

     Retained earnings

205,530

196,480



       Total Marten Transport, Ltd. stockholders' equity

283,193

273,176



   Noncontrolling interest

1,947

1,731



       Total stockholders' equity

285,140

274,907



         TOTAL LIABILITIES AND

          STOCKHOLDERS' EQUITY

$437,780

$414,838

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)


Three Months
Ended June 30,

Six Months
Ended June 30,

(In thousands, except per share information)

2010

2009

2010

2009





OPERATING REVENUE

$125,862

$125,804

$251,674

$247,759





OPERATING EXPENSES (INCOME):



 Salaries, wages and benefits

31,984

35,759

64,386

71,861

 Purchased transportation

26,346

25,933

54,105

48,685

 Fuel and fuel taxes

28,167

24,272

55,760

46,138

 Supplies and maintenance

8,597

9,558

17,607

19,376

 Depreciation

12,612

13,386

25,649

26,819

 Operating taxes and licenses

1,574

1,702

3,079

3,378

 Insurance and claims

3,984

4,678

7,836

10,199

 Communications and utilities

1,054

1,002

1,867

2,067

 Gain on disposition of revenue equipment

(429)

(528)

(628)

(999)

 Other

2,780

2,539

5,786

5,481





       Total operating expenses

116,669

118,301

235,447

233,005





OPERATING INCOME

9,193

7,503

16,227

14,754





NET INTEREST EXPENSE (INCOME)

26

4

(80)

35





INCOME BEFORE INCOME TAXES

9,167

7,499

16,307

14,719

 Less:  Income before income taxes





  attributable to noncontrolling interest

1

145

57

261





INCOME BEFORE INCOME TAXES



ATTRIBUTABLE TO MARTEN



TRANSPORT, LTD.

9,166

7,354

16,250

14,458





PROVISION FOR INCOME TAXES

4,008

2,877

7,200

5,928





NET INCOME

$5,158

$4,477

$9,050

$8,530





BASIC EARNINGS PER COMMON SHARE

$0.24

$0.20

$0.41

$0.39





DILUTED EARNINGS PER COMMON SHARE

$0.23

$0.20

$0.41

$0.39

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)






Three Months
Ended
June 30,

Dollar
Change
Three Months
Ended
June 30,

Percentage
Change
Three Months
Ended
June 30,

(Dollars in thousands)

2010

2009

2010 vs. 2009

2010 vs. 2009

Operating revenue:



 Truckload revenue, net of fuel surcharge  revenue



$80,566

$87,969

$(7,403)

(8.4)%

 Truckload fuel surcharge revenue

16,825

11,286

5,539

49.1

     Total Truckload revenue

97,391

99,255

(1,864)

(1.9)










 Logistics revenue, net of intermodal fuel surcharge revenue

26,337

25,225

1,112

4.4

 Intermodal fuel surcharge revenue

2,134

1,324

810

61.2

     Total Logistics revenue

28,471

26,549

1,922

7.2





     Total operating revenue

$125,862

$125,804

$58

-%





Operating income:



 Truckload

$8,208

$5,697

$2,511

44.1%

 Logistics

985

1,806

(821)

(45.5)

     Total operating income

$9,193

$7,503

$1,690

22.5%





Operating ratio:



 Truckload

91.6%

94.3%

(2.9)%

 Logistics

96.5

93.2

3.5

     Consolidated operating ratio

92.7%

94.0%

(1.4)%

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

Six Months
Ended
June 30,

Dollar
Change
Six Months
Ended
June 30,

Percentage
Change
Six Months
Ended
June 30,




(Dollars in thousands)

2010

2009

2010 vs. 2009

2010 vs. 2009

Operating revenue:



 Truckload revenue, net of fuel surcharge revenue

$161,486

$176,504

$(15,018)

(8.5)%

 Truckload fuel surcharge revenue

32,131

21,123

11,008

52.1

   Total Truckload revenue

193,617

197,627

(4,010)

(2.0)





Logistics revenue, net of intermodal fuel surcharge revenue

53,907

47,875

6,032

12.6

 Intermodal fuel surcharge revenue

4,150

2,257

1,893

83.9

   Total Logistics revenue

58,057

50,132

7,925

15.8





   Total operating revenue

$251,674

$247,759

$3,915

1.6%





Operating income:



 Truckload

$13,433

$11,530

$1,903

16.5%

 Logistics

2,794

3,224

(430)

(13.3)

   Total operating income

$16,227

$14,754

$1,473

10.0%





Operating ratio:



 Truckload

93.1%

94.2%

(1.2)%

 Logistics

95.2

93.6

1.7

   Consolidated operating ratio

93.6%

94.0%

(0.4)%





MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)






Three Months
Ended June 30,

Six Months
Ended June 30,

2010

2009

2010

2009

Truckload Segment:



 Total Truckload revenue (in
  thousands)

$97,391

$99,255

$193,617

$197,627

 Average truckload revenue, net
  of  fuel surcharges, per
  tractor per week(1)

$2,971

$2,838

$2,891

$2,863





 Average tractors(1)

2,086

2,384

2,160

2,385

 Average miles per trip

657

796

673

810

 Non-revenue miles percentage(2)

9.2%

9.3%

9.2%

9.1%

 Total miles - company-employed
  drivers (in thousands)

47,763

52,557

96,707

104,669

 Total miles - independent
  contractors (in thousands)

3,847

6,045

8,347

11,988





Logistics Segment:



 Total Logistics revenue (in
  thousands)

$28,471

$26,549

$58,057

$50,132

 Brokerage:



   Marten Transport



     Revenue (in thousands)

$9,271

$8,072

$19,664

$15,321

     Loads

5,193

4,298

10,795

8,152

   MWL



     Revenue (in thousands)

$7,968

$7,787

$16,136

$14,992

     Loads

4,690

5,067

8,969

8,819

Intermodal:



     Revenue (in thousands)

$11,232

$10,690

$22,257

$19,819

     Loads

4,746

4,656

9,423

8,309

     Average tractors

65

64

63

59





At June 30, 2010 and June 30,
2009:



 Total tractors(1)

2,066

2,492

 Average age of company
  tractors (in years)

2.2

2.3

 Total trailers

3,853

4,142

 Average age of company trailers
  (in years)

3.3

3.3

 Ratio of trailers to tractors(1)

1.9

1.7


Three Months
Ended June 30,

Six Months
Ended June 30,

(In thousands)

2010

2009

2010

2009





Net cash provided by operating activities

$5,291

$15,262

$23,968

$42,612

Net cash used for investing activities

10,421

8,818

37,487

35,299





Weighted average shares outstanding:



 Basic

21,929

21,871

21,913

21,855

 Diluted

22,033

21,993

22,012

21,978





(1)  Includes tractors driven by both company-employed drivers and independent contractors.  
Independent contractors provided 117 and 221 tractors as of June 30, 2010, and 2009, respectively.

(2)  Represents the percentage of miles for which the company is not compensated.

SOURCE Marten Transport, Ltd.

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