Marten Transport Announces Fourth Quarter and Year End Results
MONDOVI, Wis., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any year in its history. For each of the fourth quarters ended December 31, 2019 and December 31, 2018, net income was $15.7 million, or 29 cents per diluted share. For the year ended December 31, 2019, net income improved 11.0% to $61.1 million, or $1.11 per diluted share, from $55.0 million, or $1.00 per diluted share, for 2018.
| Operating Results Comparison | |||||||||||
| Net income used to calculate the percentage increase from 2017 to 2018 below excludes a $56.5 million deferred income tax benefit in the fourth quarter of 2017. | |||||||||||
| Percentage | Percentage | Percentage | |||||||||
| Change | Change | Change | |||||||||
| Year | Year | Three Months | |||||||||
| Ended | Ended | Ended | |||||||||
| December 31, | December 31, | December 31, | |||||||||
| 2019 vs. 2018 | 2018 vs. 2017 | 2019 vs. 2018 | |||||||||
| Operating revenue | 7.1 | % | 12.8 | % | 6.5 | % | |||||
| Operating income | 8.7 | % | 23.7 | % | (3.8 | )% | |||||
| Net income | 11.0 | % | 62.7 | % | 0.1 | % | |||||
Operating revenue improved 6.5% to $217.2 million for the fourth quarter of 2019 from $204.0 million for the fourth quarter of 2018, and improved 7.1% to a record $843.3 million for 2019 from $787.6 million for 2018. Excluding fuel surcharges, operating revenue improved 7.7% to $190.2 million for the 2019 quarter from $176.5 million for the 2018 quarter, and improved 8.6% to $739.9 million for 2019 from $681.4 million for 2018. Fuel surcharge revenue decreased slightly to $27.0 million for the 2019 quarter from $27.4 million for the 2018 quarter, and decreased to $103.4 million for 2019 from $106.2 million for 2018.
Operating income was $18.8 million for the fourth quarter of 2019, compared with $19.5 million for the fourth quarter of 2018, and improved 8.7% to a record $76.5 million for 2019 from $70.3 million for 2018.
Operating expenses as a percentage of operating revenue were 91.3% for the fourth quarter of 2019, compared with 90.4% for the fourth quarter of 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 90.1% for the 2019 quarter, compared with 88.9% for the 2018 quarter.
Operating expenses as a percentage of operating revenue improved to 90.9% for 2019 from 91.1% for 2018. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 89.7% for each year.
Chairman and Chief Executive Officer Randolph L. Marten said, “Our talented people earned the highest operating revenue and operating income for any year in our history, exceeding the previous records set for each in 2018 by 7.1% and 8.7%, respectively. We overcame a softer freight environment to deliver our best operating ratio, net of fuel surcharges, over the last 14 years through the disciplined execution of our unique multifaceted business model across our diverse customer base. We added 329 Dedicated and 101 Truckload tractors throughout 2019, profitably growing the size of our fleet by 16.1% since the beginning of the year – and expect to continue to expand our capacity in 2020. We’re off to a strong start with recent awards of new dedicated business with several customers for over 185 additional tractors starting in 2019’s fourth and 2020’s first quarters.”
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 1,650 dry vans operating as of December 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
| December 31, | December 31, | |||||||
| (In thousands, except share information) | 2019 | 2018 | ||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 31,461 | $ | 56,763 | ||||
| Receivables: | ||||||||
| Trade, net | 90,712 | 83,033 | ||||||
| Other | 11,055 | 3,808 | ||||||
| Prepaid expenses and other | 20,938 | 19,924 | ||||||
| Total current assets | 154,166 | 163,528 | ||||||
| Property and equipment: | ||||||||
| Revenue equipment, buildings and land, office equipment and other | 904,237 | 816,430 | ||||||
| Accumulated depreciation | (263,843 | ) | (228,200 | ) | ||||
| Net property and equipment | 640,394 | 588,230 | ||||||
| Other noncurrent assets | 2,026 | 2,146 | ||||||
| Total assets | $ | 796,586 | $ | 753,904 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 22,917 | $ | 15,704 | ||||
| Insurance and claims accruals | 31,729 | 28,103 | ||||||
| Accrued and other current liabilities | 21,680 | 28,166 | ||||||
| Total current liabilities | 76,326 | 71,973 | ||||||
| Deferred income taxes | 122,022 | 105,977 | ||||||
| Noncurrent operating lease liabilities | 649 | - | ||||||
| Total liabilities | 198,997 | 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; 54,703,466 shares at December 31, 2019, and 54,466,691 shares at December 31, 2018, issued and outstanding | 547 | 545 | ||||||
| Additional paid-in capital | 79,465 | 76,814 | ||||||
| Retained earnings | 517,577 | 498,595 | ||||||
| Total stockholders’ equity | 597,589 | 575,954 | ||||||
| Total liabilities and stockholders’ equity | $ | 796,586 | $ | 753,904 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| (In thousands, except per share information) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Operating revenue | $ | 217,185 | $ | 203,961 | $ | 843,271 | $ | 787,594 | ||||||||
| Operating expenses (income): | ||||||||||||||||
| Salaries, wages and benefits | 72,707 | 65,924 | 274,156 | 252,047 | ||||||||||||
| Purchased transportation | 41,596 | 38,670 | 158,948 | 144,611 | ||||||||||||
| Fuel and fuel taxes | 31,437 | 29,189 | 121,341 | 121,633 | ||||||||||||
| Supplies and maintenance | 11,998 | 9,592 | 46,737 | 40,853 | ||||||||||||
| Depreciation | 24,842 | 22,305 | 95,137 | 88,585 | ||||||||||||
| Operating taxes and licenses | 2,678 | 2,418 | 10,100 | 9,473 | ||||||||||||
| Insurance and claims | 8,846 | 10,859 | 38,201 | 38,657 | ||||||||||||
| Communications and utilities | 1,908 | 1,641 | 7,709 | 6,634 | ||||||||||||
| Gain on disposition of revenue equipment | (3,343 | ) | (2,038 | ) | (8,680 | ) | (7,244 | ) | ||||||||
| Other | 5,729 | 5,863 | 23,124 | 21,997 | ||||||||||||
| Total operating expenses | 198,398 | 184,423 | 766,773 | 717,246 | ||||||||||||
| Operating income | 18,787 | 19,538 | 76,498 | 70,348 | ||||||||||||
| Other | (262 | ) | (234 | ) | (1,190 | ) | (681 | ) | ||||||||
| Income before income taxes | 19,049 | 19,772 | 77,688 | 71,029 | ||||||||||||
| Income taxes expense | 3,301 | 4,035 | 16,617 | 16,002 | ||||||||||||
| Net income | $ | 15,748 | $ | 15,737 | $ | 61,071 | $ | 55,027 | ||||||||
| Basic earnings per common share | $ | 0.29 | $ | 0.29 | $ | 1.12 | $ | 1.01 | ||||||||
| Diluted earnings per common share | $ | 0.29 | $ | 0.29 | $ | 1.11 | $ | 1.00 | ||||||||
| Dividends declared per common share | $ | 0.03 | $ | 0.025 | $ | 0.77 | $ | 0.10 | ||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
| Dollar | Percentage | |||||||||||||||
| Change | Change | |||||||||||||||
| Three Months | Three Months | Three Months | ||||||||||||||
| Ended | Ended | Ended | ||||||||||||||
| December 31, | December 31, | December 31, | ||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2019 vs. 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 82,991 | $ | 81,020 | $ | 1,971 | 2.4 | % | ||||||||
| Truckload fuel surcharge revenue | 12,278 | 12,979 | (701 | ) | (5.4 | ) | ||||||||||
| Total Truckload revenue | 95,269 | 93,999 | 1,270 | 1.4 | ||||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 59,570 | 49,041 | 10,529 | 21.5 | ||||||||||||
| Dedicated fuel surcharge revenue | 11,345 | 10,216 | 1,129 | 11.1 | ||||||||||||
| Total Dedicated revenue | 70,915 | 59,257 | 11,658 | 19.7 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 21,132 | 21,738 | (606 | ) | (2.8 | ) | ||||||||||
| Intermodal fuel surcharge revenue | 3,391 | 4,226 | (835 | ) | (19.8 | ) | ||||||||||
| Total Intermodal revenue | 24,523 | 25,964 | (1,441 | ) | (5.5 | ) | ||||||||||
| Brokerage revenue | 26,478 | 24,741 | 1,737 | 7.0 | ||||||||||||
| Total operating revenue | $ | 217,185 | $ | 203,961 | $ | 13,224 | 6.5 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 7,110 | $ | 9,537 | $ | (2,427 | ) | (25.4 | )% | |||||||
| Dedicated | 8,110 | 5,268 | 2,842 | 53.9 | ||||||||||||
| Intermodal | 1,472 | 3,153 | (1,681 | ) | (53.3 | ) | ||||||||||
| Brokerage | 2,095 | 1,580 | 515 | 32.6 | ||||||||||||
| Total operating income | $ | 18,787 | $ | 19,538 | $ | (751 | ) | (3.8 | )% | |||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 92.5 | % | 89.9 | % | ||||||||||||
| Dedicated | 88.6 | 91.1 | ||||||||||||||
| Intermodal | 94.0 | 87.9 | ||||||||||||||
| Brokerage | 92.1 | 93.6 | ||||||||||||||
| Consolidated operating ratio | 91.3 | % | 90.4 | % | ||||||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
| Dollar | Percentage | |||||||||||||||
| Change | Change | |||||||||||||||
| Year | Year | Year | ||||||||||||||
| Ended | Ended | Ended | ||||||||||||||
| December 31, | December 31, | December 31, | ||||||||||||||
| (Dollars in thousands) | 2019 | 2018 | 2019 vs. 2018 | 2019 vs. 2018 | ||||||||||||
| Operating revenue: | ||||||||||||||||
| Truckload revenue, net of fuel surcharge revenue | $ | 329,304 | $ | 322,324 | $ | 6,980 | 2.2 | % | ||||||||
| Truckload fuel surcharge revenue | 48,696 | 53,016 | (4,320 | ) | (8.1 | ) | ||||||||||
| Total Truckload revenue | 378,000 | 375,340 | 2,660 | 0.7 | ||||||||||||
| Dedicated revenue, net of fuel surcharge revenue | 223,935 | 187,137 | 36,798 | 19.7 | ||||||||||||
| Dedicated fuel surcharge revenue | 42,049 | 36,715 | 5,334 | 14.5 | ||||||||||||
| Total Dedicated revenue | 265,984 | 223,852 | 42,132 | 18.8 | ||||||||||||
| Intermodal revenue, net of fuel surcharge revenue | 77,750 | 85,572 | (7,822 | ) | (9.1 | ) | ||||||||||
| Intermodal fuel surcharge revenue | 12,644 | 16,453 | (3,809 | ) | (23.2 | ) | ||||||||||
| Total Intermodal revenue | 90,394 | 102,025 | (11,631 | ) | (11.4 | ) | ||||||||||
| Brokerage revenue | 108,893 | 86,377 | 22,516 | 26.1 | ||||||||||||
| Total operating revenue | $ | 843,271 | $ | 787,594 | $ | 55,677 | 7.1 | % | ||||||||
| Operating income: | ||||||||||||||||
| Truckload | $ | 29,666 | $ | 35,067 | $ | (5,401 | ) | (15.4 | )% | |||||||
| Dedicated | 31,245 | 18,589 | 12,656 | 68.1 | ||||||||||||
| Intermodal | 6,612 | 11,150 | (4,538 | ) | (40.7 | ) | ||||||||||
| Brokerage | 8,975 | 5,542 | 3,433 | 61.9 | ||||||||||||
| Total operating income | $ | 76,498 | $ | 70,348 | $ | 6,150 | 8.7 | % | ||||||||
| Operating ratio: | ||||||||||||||||
| Truckload | 92.2 | % | 90.7 | % | ||||||||||||
| Dedicated | 88.3 | 91.7 | ||||||||||||||
| Intermodal | 92.7 | 89.1 | ||||||||||||||
| Brokerage | 91.8 | 93.6 | ||||||||||||||
| Consolidated operating ratio | 90.9 | % | 91.1 | % | ||||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
| Three Months | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Truckload Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 95,269 | $ | 93,999 | $ | 378,000 | $ | 375,340 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,736 | $ | 3,941 | $ | 3,797 | $ | 3,833 | ||||||||
| Average tractors(1) | 1,690 | 1,564 | 1,663 | 1,613 | ||||||||||||
| Average miles per trip | 554 | 558 | 548 | 573 | ||||||||||||
| Non-revenue miles percentage(2) | 12.0 | % | 11.4 | % | 11.6 | % | 9.5 | % | ||||||||
| Total miles (in thousands) | 39,538 | 36,171 | 155,177 | 153,514 | ||||||||||||
| Dedicated Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 70,915 | $ | 59,257 | $ | 265,984 | $ | 223,852 | ||||||||
| Average revenue, net of fuel surcharges, per tractor per week(1) | $ | 3,286 | $ | 3,360 | $ | 3,378 | $ | 3,300 | ||||||||
| Average tractors(1) | 1,380 | 1,111 | 1,272 | 1,088 | ||||||||||||
| Average miles per trip | 313 | 321 | 315 | 309 | ||||||||||||
| Non-revenue miles percentage(2) | 0.6 | % | 0.5 | % | 0.7 | % | 0.7 | % | ||||||||
| Total miles (in thousands) | 29,114 | 24,025 | 108,814 | 93,269 | ||||||||||||
| Intermodal Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 24,523 | $ | 25,964 | $ | 90,394 | $ | 102,025 | ||||||||
| Loads | 9,731 | 10,493 | 36,309 | 42,425 | ||||||||||||
| Average tractors | 107 | 91 | 91 | 88 | ||||||||||||
| Brokerage Segment: | ||||||||||||||||
| Revenue (in thousands) | $ | 26,478 | $ | 24,741 | $ | 108,893 | $ | 86,377 | ||||||||
| Loads | 15,690 | 14,314 | 63,200 | 51,104 | ||||||||||||
| At December 31, 2019 and December 31, 2018: | ||||||||||||||||
| Total tractors(1) | 3,212 | 2,755 | ||||||||||||||
| Average age of company tractors (in years) | 1.8 | 1.7 | ||||||||||||||
| Total trailers | 5,464 | 5,347 | ||||||||||||||
| Average age of company trailers (in years) | 2.4 | 2.5 | ||||||||||||||
| Ratio of trailers to tractors(1) | 1.7 | 1.9 | ||||||||||||||
| Three Months | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| (In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net cash provided by operating activities | $ | 33,570 | $ | 38,526 | $ | 153,180 | $ | 150,623 | ||||||||
| Net cash (used for) investing activities | (41,151 | ) | (12,428 | ) | (137,229 | ) | (101,270 | ) | ||||||||
| Net cash (used for) financing activities | (1,438 | ) | (5,074 | ) | (41,253 | ) | (8,381 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 54,695 | 54,514 | 54,630 | 54,590 | ||||||||||||
| Diluted | 55,216 | 55,014 | 55,113 | 55,149 | ||||||||||||
| (1 | ) | Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 92 and 46 tractors as of December 31, 2019 and 2018, respectively. |
| (2 | ) | Represents the percentage of miles for which the company is not compensated. |
