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MONDOVI, Wis., Oct. 17, 2019 (GLOBE NEWSWIRE) — Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter in its history, with the previous record for each set in this year’s second quarter. For the third quarter ended September 30, 2019, net income improved 8.7% to $16.6 million, or 30 cents per diluted share, from $15.3 million, or 28 cents per diluted share, for the third quarter of 2018. For the first nine months of 2019, net income improved 15.4% to $45.3 million, or 82 cents per diluted share, from $39.3 million, or 71 cents per diluted share, for the first nine months of 2018. Earnings for the 2019 quarter include an additional income tax benefit of $1.4 million, or 2.5 cents per diluted share, while the 2018 quarter’s earnings include an additional income tax benefit of $493,000, or one cent per diluted share, net of related operating expenses.

	Operating Results Comparison
	Net income and diluted earnings per common share used to calculate the TTM percentage change below exclude a $56.5 million deferred income tax benefit in the fourth quarter of 2017.
			Percentage			Percentage			Percentage
			Change			Change			Change
			Three Months			Nine Months			Trailing Twelve
			Ended			Ended			Months Ended
			September 30,			September 30,			September 30,
			2019 vs. 2018			2019 vs. 2018			2019 vs. 2018
	Operating revenue		7.7	%		7.3	%		8.3	%
	Operating income		5.5	%		13.6	%		18.6	%
	Net income		8.7	%		15.4	%		27.5	%
	Diluted earnings per common share		8.8	%		15.5	%		27.6	%

Operating revenue improved 7.7% to a record $215.0 million for the third quarter of 2019 from $199.6 million for the third quarter of 2018, and improved 7.3% to $626.1 million for the first nine months of 2019 from $583.6 million for the first nine months of 2018. For the trailing twelve months ended September 30, 2019, operating revenue improved 8.3% to $830.0 million from $766.4 million for the similar period ended September 30, 2018. Excluding fuel surcharges, operating revenue improved 10.0% to $188.9 million for the 2019 quarter from $171.8 million for the 2018 quarter, and improved 8.9% to $549.7 million for the first nine months of 2019 from $504.9 million for the first nine months of 2018. Fuel surcharge revenue decreased to $26.1 million for the 2019 quarter from $27.9 million for the 2018 quarter, and decreased to $76.4 million for the first nine months of 2019 from $78.8 million for the first nine months of 2018.

Operating income improved 5.5% to a record $20.0 million for the third quarter of 2019 from $19.0 million for the third quarter of 2018, and improved 13.6% to $57.7 million for the first nine months of 2019 from $50.8 million for the first nine months of 2018. For the trailing twelve months ended September 30, 2019, operating income improved 18.6% to $77.2 million from $65.1 million for the similar period ended September 30, 2018. 

Operating expenses as a percentage of operating revenue were 90.7% for the third quarter of 2019, compared with 90.5% for the third quarter of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 89.4% for the 2019 quarter, compared with 88.9% for the 2018 quarter.

Operating expenses as a percentage of operating revenue improved to 90.8% for the first nine months of 2019 from 91.3% for the first nine months of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.5% from 89.9%.

Operating expenses as a percentage of operating revenue improved to 90.7% for the trailing twelve months ended September 30, 2019 from 91.5% for the similar period ended September 30, 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.4% from 90.3%.

Chairman and Chief Executive Officer Randolph L. Marten said, “We earned the highest operating revenue and operating income for any quarter in our history, exceeding the previous record for each we produced in this year’s second quarter. Our talented people consistently deliver this profitable growth through the disciplined execution of our unique multifaceted business model across our diverse customer base – and overcame the negative impact of the recent hurricane and flooding on our Southeast and Texas operations during the third quarter. We added 43 Truckload and 41 Dedicated tractors this quarter, increasing our year-to-date growth to 149 Truckload and 230 Dedicated tractors, a combined 14.2% fleet growth since the beginning of the year. We expect to continue expanding our capacity to service our customers by offering the best jobs for the industry’s best drivers.”

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 1,718 dry vans operating as of September 30, 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.

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

		September 30,				December 31,
(In thousands, except share information)		2019				2018
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	40,480			$	56,763
Receivables:
Trade, net			85,149				83,033
Other			3,694				3,808
Prepaid expenses and other			18,576				19,924
Total current assets			147,899				163,528
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			891,326				816,430
Accumulated depreciation			(261,474	)			(228,200	)
Net property and equipment			629,852				588,230
Other noncurrent assets			3,204				2,146
Total assets		$	780,955			$	753,904
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	27,777			$	15,704
Insurance and claims accruals			30,647				28,103
Accrued and other current liabilities			26,506				28,166
Total current liabilities			84,930				71,973
Deferred income taxes			112,454				105,977
Noncurrent operating lease liabilities			714				–
Total liabilities			198,098				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; 54,687,065 shares at September 30, 2019, and 54,466,691 shares at December 31, 2018, issued and outstanding			547				545
Additional paid-in capital			78,840				76,814
Retained earnings			503,470				498,595
Total stockholders’ equity			582,857				575,954
Total liabilities and stockholders’ equity		$	780,955			$	753,904

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)		2019				2018				2019				2018
Operating revenue		$	214,973			$	199,649			$	626,086			$	583,633
Operating expenses (income):
Salaries, wages and benefits			69,312				64,051				201,449				186,123
Purchased transportation			40,435				35,867				117,352				105,941
Fuel and fuel taxes			31,275				31,658				89,904				92,444
Supplies and maintenance			12,116				10,574				34,739				31,261
Depreciation			24,290				22,272				70,295				66,280
Operating taxes and licenses			2,651				2,404				7,422				7,055
Insurance and claims			9,618				8,567				29,355				27,798
Communications and utilities			1,901				1,663				5,801				4,993
Gain on disposition of revenue equipment			(2,559	)			(1,835	)			(5,337	)			(5,206	)
Other			5,900				5,435				17,395				16,134
Total operating expenses			194,939				180,656				568,375				532,823
Operating income			20,034				18,993				57,711				50,810
Other			(255	)			(120	)			(928	)			(447	)
Income before income taxes			20,289				19,113				58,639				51,257
Income taxes expense			3,702				3,856				13,316				11,967
Net income		$	16,587			$	15,257			$	45,323			$	39,290
Basic earnings per common share		$	0.30			$	0.28			$	0.83			$	0.72
Diluted earnings per common share		$	0.30			$	0.28			$	0.82			$	0.71
Dividends declared per common share		$	0.68			$	0.025			$	0.74			$	0.075

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)		2019				2018				2019 vs. 2018				2019 vs. 2018
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	82,931			$	80,563			$	2,368				2.9	%
Truckload fuel surcharge revenue			12,056				13,357				(1,301	)			(9.7	)
Total Truckload revenue			94,987				93,920				1,067				1.1
Dedicated revenue, net of fuel surcharge revenue			59,281				48,500				10,781				22.2
Dedicated fuel surcharge revenue			11,053				10,291				762				7.4
Total Dedicated revenue			70,334				58,791				11,543				19.6
Intermodal revenue, net of fuel surcharge revenue			19,336				21,735				(2,399	)			(11.0	)
Intermodal fuel surcharge revenue			2,961				4,204				(1,243	)			(29.6	)
Total Intermodal revenue			22,297				25,939				(3,642	)			(14.0	)
Brokerage revenue			27,355				20,999				6,356				30.3
Total operating revenue		$	214,973			$	199,649			$	15,324				7.7	%
Operating income:
Truckload		$	6,956			$	10,026			$	(3,070	)			(30.6	)%
Dedicated			9,920				5,249				4,671				89.0
Intermodal			1,210				2,507				(1,297	)			(51.7	)
Brokerage			1,948				1,211				737				60.9
Total operating income		$	20,034			$	18,993			$	1,041				5.5	%
Operating ratio:
Truckload			92.7	%			89.3	%
Dedicated			85.9				91.1
Intermodal			94.6				90.3
Brokerage			92.9				94.2
Consolidated operating ratio			90.7	%			90.5	%

                                                                                                                                           

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)		2019				2018				2019 vs. 2018				2019 vs. 2018
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	246,313			$	241,304			$	5,009				2.1	%
Truckload fuel surcharge revenue			36,418				40,037				(3,619	)			(9.0	)
Total Truckload revenue			282,731				281,341				1,390				0.5
Dedicated revenue, net of fuel surcharge revenue			164,365				138,096				26,269				19.0
Dedicated fuel surcharge revenue			30,704				26,499				4,205				15.9
Total Dedicated revenue			195,069				164,595				30,474				18.5
Intermodal revenue, net of fuel surcharge revenue			56,618				63,834				(7,216	)			(11.3	)
Intermodal fuel surcharge revenue			9,253				12,227				(2,974	)			(24.3	)
Total Intermodal revenue			65,871				76,061				(10,190	)			(13.4	)
Brokerage revenue			82,415				61,636				20,779				33.7
Total operating revenue		$	626,086			$	583,633			$	42,453				7.3	%
Operating income:
Truckload		$	22,556			$	25,530			$	(2,974	)			(11.6	)%
Dedicated			23,135				13,321				9,814				73.7
Intermodal			5,140				7,997				(2,857	)			(35.7	)
Brokerage			6,880				3,962				2,918				73.6
Total operating income		$	57,711			$	50,810			$	6,901				13.6	%
Operating ratio:
Truckload			92.0	%			90.9	%
Dedicated			88.1				91.9
Intermodal			92.2				89.5
Brokerage			91.7				93.6
Consolidated operating ratio			90.8	%			91.3	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)   

		Three Months								Nine Months
		Ended September 30,								Ended September 30,
		2019				2018				2019				2018
Truckload Segment:
Revenue (in thousands)		$	94,987			$	93,920			$	282,731			$	281,341
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,723			$	3,925			$	3,818			$	3,797
Average tractors(1)			1,695				1,561				1,654				1,629
Average miles per trip			545				564				545				578
Non-revenue miles percentage(2)			11.8	%			10.4	%			11.4	%			8.9	%
Total miles (in thousands)			39,326				37,259				115,639				117,343
Dedicated Segment:
Revenue (in thousands)		$	70,334			$	58,791			$	195,069			$	164,595
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,392			$	3,287			$	3,412			$	3,279
Average tractors(1)			1,329				1,123				1,235				1,080
Average miles per trip			312				317				316				305
Non-revenue miles percentage(2)			0.7	%			0.6	%			0.7	%			0.8	%
Total miles (in thousands)			28,859				24,362				79,700				69,244
Intermodal Segment:
Revenue (in thousands)		$	22,297			$	25,939			$	65,871			$	76,061
Loads			8,897				10,573				26,578				31,932
Average tractors			87				89				85				87
Brokerage Segment:
Revenue (in thousands)		$	27,355			$	20,999			$	82,415			$	61,636
Loads			16,059				12,781				47,510				36,790
At September 30, 2019 and September 30, 2018:
Total tractors(1)			3,137				2,751
Average age of company tractors (in years)			1.8				1.6
Total trailers			5,562				5,397
Average age of company trailers (in years)			2.6				2.6
Ratio of trailers to tractors(1)			1.8				2.0

   

		Three Months								Nine Months
		Ended September 30,								Ended September 30,
(In thousands)		2019				2018				2019				2018
Net cash provided by operating activities		$	46,101			$	44,722			$	119,610			$	112,097
Net cash (used for) investing activities			(51,900	)			(29,665	)			(96,078	)			(88,842	)
Net cash (used for) financing activities			(36,513	)			(1,321	)			(39,815	)			(3,307	)
Weighted average shares outstanding:
Basic			54,655				54,661				54,608				54,615
Diluted			55,134				55,194				55,078				55,151

       

(1)		Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 75 and 50 tractors as of September 30, 2019 and 2018, respectively.
(2)		Represents the percentage of miles for which the company is not compensated.