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Marten Transport Announces First Quarter Results
Source: Nasdaq GlobeNewswire / 18 Apr 2024 16:01:42 America/New_York
MONDOVI, Wis., April 18, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $9.6 million, or 12 cents per diluted share, for the first quarter ended March 31, 2024, compared with $22.5 million, or 28 cents per diluted share, for the first quarter of 2023.
Operating revenue was $249.7 million for the first quarter of 2024 compared with $298.0 million for the first quarter of 2023. Excluding fuel surcharges, operating revenue was $215.7 million for the 2024 quarter compared with $254.9 million for the 2023 quarter. Fuel surcharge revenue decreased to $33.9 million for the 2024 quarter from $43.1 million for the 2023 quarter.
Operating income was $12.3 million for the first quarter of 2024 compared with $29.0 million for the first quarter of 2023.
Operating expenses as a percentage of operating revenue were 95.1% for the 2024 quarter and 90.3% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 94.3% for the 2024 quarter and 88.6% for the 2023 quarter.
Executive Chairman Randolph L. Marten stated, “The freight market recession’s oversupply and weak demand, inflationary operating costs and cumulative impact of freight rate reductions and related freight network disruptions continue to significantly pressure our earnings. The value of our unique multifaceted business model is highlighted by the operating results for our dedicated and brokerage operations in the first quarter. Our operating results improved throughout the quarter after earning 2 cents per share in January, which was also impacted by widespread harsh winter weather.”
“We remain focused on minimizing the freight market’s impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market necessarily recovers from its current recessionary late stages. To that end, we have not agreed to rate reductions since last August.”
Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across Marten’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, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company offers service in the United States, Mexico and Canada, 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 Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, Chief Executive Officer, Doug Petit, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETSMarch 31, December 31, (In thousands, except share information) 2024 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 73,730 $ 53,213 Receivables: Trade, net 105,247 105,501 Other 10,380 10,356 Prepaid expenses and other 24,665 27,512 Total current assets 214,022 196,582 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,155,649 1,162,336 Accumulated depreciation (378,151 ) (370,103 ) Net property and equipment 777,498 792,233 Other noncurrent assets 1,499 1,524 Total assets $ 993,019 $ 990,339 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37,728 $ 36,516 Insurance and claims accruals 44,297 47,017 Accrued and other current liabilities 29,417 26,709 Total current liabilities 111,442 110,242 Deferred income taxes 118,946 122,462 Noncurrent operating lease liabilities 202 249 Total liabilities 230,590 232,953 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; 81,362,709 shares at March 31, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding 814 813 Additional paid-in capital 50,066 49,789 Retained earnings 711,549 706,784 Total stockholders’ equity 762,429 757,386 Total liabilities and stockholders’ equity $ 993,019 $ 990,339 MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Ended March 31, (In thousands, except per share information) 2024 2023 Operating revenue $ 249,672 $ 298,023 Operating expenses (income): Salaries, wages and benefits 88,762 98,516 Purchased transportation 41,814 54,103 Fuel and fuel taxes 39,561 46,796 Supplies and maintenance 16,070 15,987 Depreciation 28,527 29,530 Operating taxes and licenses 2,575 2,768 Insurance and claims 11,657 15,070 Communications and utilities 2,371 2,531 Gain on disposition of revenue equipment (1,171 ) (5,246 ) Other 7,256 8,958 Total operating expenses 237,422 269,013 Operating income 12,250 29,010 Other (796 ) (844 ) Income before income taxes 13,046 29,854 Income taxes expense 3,400 7,352 Net income $ 9,646 $ 22,502 Basic earnings per common share $ 0.12 $ 0.28 Diluted earnings per common share $ 0.12 $ 0.28 Dividends declared per common share $ 0.06 $ 0.06 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) 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 95,022 $ 102,320 $ (7,298 ) (7.1 )% Truckload fuel surcharge revenue 16,529 18,306 (1,777 ) (9.7 ) Total Truckload revenue 111,551 120,626 (9,075 ) (7.5 ) Dedicated revenue, net of fuel surcharge revenue 71,738 86,831 (15,093 ) (17.4 ) Dedicated fuel surcharge revenue 14,722 19,618 (4,896 ) (25.0 ) Total Dedicated revenue 86,460 106,449 (19,989 ) (18.8 ) Intermodal revenue, net of fuel surcharge revenue 13,281 23,401 (10,120 ) (43.2 ) Intermodal fuel surcharge revenue 2,691 5,188 (2,497 ) (48.1 ) Total Intermodal revenue 15,972 28,589 (12,617 ) (44.1 ) Brokerage revenue 35,689 42,359 (6,670 ) (15.7 ) Total operating revenue $ 249,672 $ 298,023 $ (48,351 ) (16.2 )% Operating income/(loss): Truckload $ 489 $ 10,041 $ (9,552 ) (95.1 )% Dedicated 9,258 13,684 (4,426 ) (32.3 ) Intermodal (194 ) 787 (981 ) (124.7 ) Brokerage 2,697 4,498 (1,801 ) (40.0 ) Total operating income $ 12,250 $ 29,010 $ (16,760 ) (57.8 )% Operating ratio: Truckload 99.6 % 91.7 % Dedicated 89.3 87.1 Intermodal 101.2 97.2 Brokerage 92.4 89.4 Consolidated operating ratio 95.1 % 90.3 % Operating ratio, net of fuel surcharges: Truckload 99.5 % 90.2 % Dedicated 87.1 84.2 Intermodal 101.5 96.6 Brokerage 92.4 89.4 Consolidated operating ratio, net of fuel surcharges 94.3 % 88.6 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Ended March 31, 2024 2023 Truckload Segment: Revenue (in thousands) $ 111,551 $ 120,626 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,996 $ 4,571 Average tractors(1) 1,830 1,741 Average miles per trip 537 510 Non-revenue miles percentage(2) 12.6 % 12.7 % Total miles (in thousands) 39,703 38,237 Dedicated Segment: Revenue (in thousands) $ 86,460 $ 106,449 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,781 $ 3,960 Average tractors(1) 1,459 1,705 Average miles per trip 329 333 Non-revenue miles percentage(2) 1.1 % 1.1 % Total miles (in thousands) 29,080 34,076 Intermodal Segment: Revenue (in thousands) $ 15,972 $ 28,589 Loads 4,589 7,277 Average tractors 126 180 Brokerage Segment: Revenue (in thousands) $ 35,689 $ 42,359 Loads 20,061 20,688 At March 31, 2024 and March 31, 2023: Total tractors(1) 3,406 3,571 Average age of company tractors (in years) 1.9 1.7 Total trailers 5,619 5,741 Average age of company trailers (in years) 4.8 4.1 Ratio of trailers to tractors(1) 1.6 1.6 Total refrigerated containers 787 802 Three Months Ended March 31, (In thousands) 2024 2023 Net cash provided by operating activities $ 45,722 $ 49,232 Net cash (used for) investing activities (20,249 ) (28,280 ) Net cash (used for) financing activities (4,956 ) (5,264 ) Weighted average shares outstanding: Basic 81,350 81,210 Diluted 81,437 81,376 (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 96 and 95 tractors as of March 31, 2024 and 2023, respectively. (2) Represents the percentage of miles for which the company is not compensated. 
