Marten Transport Announces Fourth Quarter and Year End Results

MONDOVI, Wis., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter and year in Marten’s history. For the fourth quarter ended December 31, 2020, net income improved 24.5% to $19.6 million, or 24 cents per diluted share, from $15.7 million, or 19 cents per diluted share, for the fourth quarter of 2019. For the year ended December 31, 2020, net income improved 13.8% to $69.5 million, or 84 cents per diluted share, from $61.1 million, or 74 cents per diluted share, for 2019.

	Operating Results Comparison
		Percentage			Percentage
		Increase			Increase
		Three Months			Year
		Ended			Ended
		December 31,			December 31,
		2020 vs. 2019			2020 vs. 2019
	Operating revenue	4.7	%		3.7	%
	Operating revenue, net of fuel surcharges	8.8	%		6.8	%
	Operating income	36.0	%		21.9	%
	Net income	24.5	%		13.8	%

Operating revenue improved 4.7% to a record $227.3 million for the fourth quarter of 2020 from $217.2 million for the fourth quarter of 2019, and improved 3.7% to a record $874.4 million for 2020 from $843.3 million for 2019. Excluding fuel surcharges, operating revenue improved 8.8% to $207.0 million for the 2020 quarter from $190.2 million for the 2019 quarter, and improved 6.8% to $790.6 million for 2020 from $739.9 million for 2019. Fuel surcharge revenue decreased to $20.4 million for the 2020 quarter from $27.0 million for the 2019 quarter and decreased to $83.8 million for 2020 from $103.4 million for 2019 due to significantly lower fuel prices.

Operating income improved 36.0% to a record $25.6 million for the fourth quarter of 2020 from $18.8 million for the fourth quarter of 2019, and improved 21.9% to a record $93.2 million for 2020 from $76.5 million for 2019.

Operating expenses as a percentage of operating revenue improved to 88.8% for the fourth quarter of 2020 from 91.3% for the fourth quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.7% from 90.1%.

Operating expenses as a percentage of operating revenue improved to 89.3% for 2020 from 90.9% for 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.2% from 89.7%.

Chairman and Chief Executive Officer Randolph L. Marten said, “Our relentless pursuit of continuous operating improvement just produced the highest operating revenue and operating income for any quarter and year in our 75-year history. Our 2020 operating ratio, net of fuel surcharges, was also the best ratio for any year since we became a public company in 1986. Our 21.9% operating income improvement in 2020 continues the strong growth we achieved in 2019 of 8.7% and in 2018 of 23.7%. Success breeds success, driven by the smart, disciplined work of our talented people.”

“We have been increasing and will continue to increase the compensation for our premium services within the tight freight market. We also improved our Truckload miles per tractor by 6.3% in the fourth quarter of 2020 and by 6.2% for the full year by making disciplined data-driven decisions and adjustments utilizing our in-house operating technology. We expect to continue to build on our success in expanding the capacity we provide within our unique multifaceted business model across our diverse customer base by offering the best careers for the industry’s top, experienced drivers.”

“We embrace our responsibility to keep our valued drivers, maintenance personnel and employees across all functions and regions safe and healthy as they each contribute to our transporting and distributing the food, beverages and other consumer goods essential to millions of people in North America. This includes our paying $3.4 million in 2020 for medical claims involving COVID-19, pay to employees off-work while recovering from COVID-19, and for safety measures including providing masks and hand sanitizer (purchasing the components, preparing and distributing over 6,000 bottles in March when sanitizer was not available), increasing the frequency and extent of cleaning processes to our facilities and tractors, and modifying our facilities for improved social distancing.”

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry 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, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. 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 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, 2019 and in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 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)	2020				2019
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	66,127			$	31,461
Receivables:
Trade, net		83,426				90,712
Other		4,202				11,055
Prepaid expenses and other		21,903				20,938
Total current assets		175,658				154,166
Property and equipment:
Revenue equipment, buildings and land, office equipment and other		930,123				904,237
Accumulated depreciation		(275,950	)			(263,843	)
Net property and equipment		654,173				640,394
Other noncurrent assets		1,805				2,026
Total assets	$	831,636			$	796,586
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	25,702			$	22,917
Insurance and claims accruals		39,595				31,729
Accrued and other current liabilities		24,497				21,680
Total current liabilities		89,794				76,326
Deferred income taxes		121,098				122,022
Noncurrent operating lease liabilities		411				649
Total liabilities		211,303				198,997
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; 82,705,005 shares at December 31, 2020, and 82,055,199 shares at December 31, 2019, issued and outstanding		827				821
Additional paid-in capital		85,070				79,465
Retained earnings		534,436				517,303
Total stockholders’ equity		620,333				597,589
Total liabilities and stockholders’ equity	$	831,636			$	796,586

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

	Three Months								Year
	Ended December 31,								Ended December 31,
(In thousands, except per share information)	2020				2019				2020				2019
Operating revenue	$	227,333			$	217,185			$	874,374			$	843,271
Operating expenses (income):
Salaries, wages and benefits		79,121				72,707				300,155				274,156
Purchased transportation		40,937				41,596				154,613				158,948
Fuel and fuel taxes		24,700				31,437				98,133				121,341
Supplies and maintenance		11,314				11,998				47,815				46,737
Depreciation		25,914				24,842				102,893				95,137
Operating taxes and licenses		2,837				2,678				10,840				10,100
Insurance and claims		12,294				8,846				47,454				38,201
Communications and utilities		2,050				1,908				8,011				7,709
Gain on disposition of revenue equipment		(2,834	)			(3,343	)			(8,733	)			(8,680	)
Gain on disposition of facility		-				-				(1,718	)			-
Other		5,442				5,729				21,665				23,124
Total operating expenses		201,775				198,398				781,128				766,773
Operating income		25,558				18,787				93,246				76,498
Other		(13	)			(262	)			(140	)			(1,190	)
Income before income taxes		25,571				19,049				93,386				77,688
Income taxes expense		5,967				3,301				23,886				16,617
Net income	$	19,604			$	15,748			$	69,500			$	61,071
Basic earnings per common share	$	0.24			$	0.19			$	0.84			$	0.75
Diluted earnings per common share	$	0.24			$	0.19			$	0.84			$	0.74
Dividends declared per common share	$	0.54			$	0.02			$	0.633			$	0.513

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)	2020				2019				2020 vs. 2019				2020 vs. 2019
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	87,460			$	82,991			$	4,469				5.4	%
Truckload fuel surcharge revenue		8,733				12,278				(3,545	)			(28.9	)
Total Truckload revenue		96,193				95,269				924				1.0
Dedicated revenue, net of fuel surcharge revenue		71,313				59,570				11,743				19.7
Dedicated fuel surcharge revenue		9,670				11,345				(1,675	)			(14.8	)
Total Dedicated revenue		80,983				70,915				10,068				14.2
Intermodal revenue, net of fuel surcharge revenue		20,817				21,132				(315	)			(1.5	)
Intermodal fuel surcharge revenue		1,959				3,391				(1,432	)			(42.2	)
Total Intermodal revenue		22,776				24,523				(1,747	)			(7.1	)
Brokerage revenue		27,381				26,478				903				3.4
Total operating revenue	$	227,333			$	217,185			$	10,148				4.7	%
Operating income:
Truckload	$	11,270			$	7,110			$	4,160				58.5	%
Dedicated		9,900				8,110				1,790				22.1
Intermodal		2,166				1,472				694				47.1
Brokerage		2,222				2,095				127				6.1
Total operating income	$	25,558			$	18,787			$	6,771				36.0	%
Operating ratio:
Truckload		88.3	%			92.5	%
Dedicated		87.8				88.6
Intermodal		90.5				94.0
Brokerage		91.9				92.1
Consolidated operating ratio		88.8	%			91.3	%

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)	2020				2019				2020 vs. 2019				2020 vs. 2019
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	342,357			$	329,304			$	13,053				4.0	%
Truckload fuel surcharge revenue		36,791				48,696				(11,905	)			(24.4	)
Total Truckload revenue		379,148				378,000				1,148				0.3
Dedicated revenue, net of fuel surcharge revenue		271,550				223,935				47,615				21.3
Dedicated fuel surcharge revenue		38,234				42,049				(3,815	)			(9.1	)
Total Dedicated revenue		309,784				265,984				43,800				16.5
Intermodal revenue, net of fuel surcharge revenue		79,944				77,750				2,194				2.8
Intermodal fuel surcharge revenue		8,789				12,644				(3,855	)			(30.5	)
Total Intermodal revenue		88,733				90,394				(1,661	)			(1.8	)
Brokerage revenue		96,709				108,893				(12,184	)			(11.2	)
Total operating revenue	$	874,374			$	843,271			$	31,103				3.7	%
Operating income:
Truckload	$	39,637			$	29,666			$	9,971				33.6	%
Dedicated		40,909				31,245				9,664				30.9
Intermodal		5,730				6,612				(882	)			(13.3	)
Brokerage		6,970				8,975				(2,005	)			(22.3	)
Total operating income	$	93,246			$	76,498			$	16,748				21.9	%
Operating ratio:
Truckload		89.5	%			92.2	%
Dedicated		86.8				88.3
Intermodal		93.5				92.7
Brokerage		92.8				91.8
Consolidated operating ratio		89.3	%			90.9	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

	Three Months								Year
	Ended December 31,								Ended December 31,
	2020				2019				2020				2019
Truckload Segment:
Revenue (in thousands)	$	96,193			$	95,269			$	379,148			$	378,000
Average revenue, net of fuel surcharges, per tractor per week(1)	$	4,116			$	3,736			$	3,926			$	3,797
Average tractors(1)		1,617				1,690				1,668				1,663
Average miles per trip		526				554				547				548
Non-revenue miles percentage(2)		10.4	%			12.0	%			10.7	%			11.6	%
Total miles (in thousands)		40,185				39,538				165,267				155,177
Dedicated Segment:
Revenue (in thousands)	$	80,983			$	70,915			$	309,784			$	265,984
Average revenue, net of fuel surcharges, per tractor per week(1)	$	3,350			$	3,286			$	3,316			$	3,378
Average tractors(1)		1,620				1,380				1,566				1,272
Average miles per trip		303				313				305				315
Non-revenue miles percentage(2)		0.7	%			0.6	%			0.7	%			0.7	%
Total miles (in thousands)		34,044				29,114				132,597				108,814
Intermodal Segment:
Revenue (in thousands)	$	22,776			$	24,523			$	88,733			$	90,394
Loads		8,708				9,731				36,444				36,309
Average tractors		125				107				106				91
Brokerage Segment:
Revenue (in thousands)	$	27,381			$	26,478			$	96,709			$	108,893
Loads		13,928				15,690				58,986				63,200
At December 31, 2020 and December 31, 2019:
Total tractors(1)		3,331				3,212
Average age of company tractors (in years)		1.6				1.8
Total trailers		5,395				5,464
Average age of company trailers (in years)		3.0				2.4
Ratio of trailers to tractors(1)		1.6				1.7

        

	Three Months								Year
	Ended December 31,								Ended December 31,
(In thousands)	2020				2019				2020				2019
Net cash provided by operating activities	$	34,891			$	34,439			$	189,598			$	156,460
Net cash (used for) investing activities		(12,577	)			(42,020	)			(106,325	)			(140,509	)
Net cash (used for) financing activities		(44,466	)			(1,438	)			(48,607	)			(41,253	)
Weighted average shares outstanding:
Basic		82,690				82,043				82,527				81,945
Diluted		83,311				82,824				83,164				82,670

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 143 and 92 tractors as of December 31, 2020 and 2019, respectively.
(2	)	Represents the percentage of miles for which the company is not compensated.