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Marten Transport Announces Fourth Quarter and Year End Results
Source: Nasdaq GlobeNewswire / 25 Jan 2024 15:05:46 America/Chicago
MONDOVI, Wis., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $12.4 million, or 15 cents per diluted share, for the fourth quarter ended December 31, 2023, compared with $25.5 million, or 31 cents per diluted share, for the fourth quarter of 2022. For the year ended December 31, 2023, net income was $70.4 million, or 86 cents per diluted share, compared with $110.4 million, or $1.35 per diluted share, for 2022.
Operating revenue was $268.2 million for the fourth quarter of 2023 compared with $322.6 million for the fourth quarter of 2022. Excluding fuel surcharges, operating revenue was $229.4 million for the 2023 quarter compared with $269.7 million for the 2022 quarter. Fuel surcharge revenue decreased to $38.8 million for the 2023 quarter from $52.9 million for the 2022 quarter.
Operating revenue was $1.131 billion for 2023 compared with $1.264 billion for 2022. Excluding fuel surcharges, operating revenue was $972.0 million for 2023 compared with $1.053 billion for 2022. Fuel surcharge revenue decreased to $159.4 million for 2023 from $210.4 million for 2022.
Operating income was $15.7 million for the fourth quarter of 2023 compared with $32.8 million for the fourth quarter of 2022. Operating income was $90.1 million for 2023 compared with $143.3 million for 2022.
Operating expenses as a percentage of operating revenue were 94.2% for the 2023 quarter and 89.8% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 93.2% for the 2023 quarter and 87.8% for the 2022 quarter.
Operating expenses as a percentage of operating revenue were 92.0% for 2023 and 88.7% for 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 90.7% for 2023 and 86.4% for 2022.
Executive Chairman Randolph L. Marten stated, “This quarter’s earnings were heavily pressured by the freight market recession’s weak demand and oversupply, inflationary operating costs, and cumulative impact of decreased freight rates leading to freight network disruptions. Additionally, our higher insurance and claims and health insurance expense and less revenue equipment gains reduced our operating income by $4.8 million, or 4.4 cents per diluted share, from this year’s third quarter.”
“We remain focused on both minimizing the freight market’s impact on our operations, and investing in and positioning our operations to capitalize on profitable organic growth opportunities as the market moves toward equilibrium from its current recessionary late stages - with fair compensation for our premium services. Accordingly, we have not agreed to any 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, 2022. 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 SHEETS December 31, December 31, (In thousands, except share information) 2023 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 53,213 $ 80,600 Receivables: Trade, net 105,501 120,702 Other 10,356 7,218 Prepaid expenses and other 27,512 27,320 Total current assets 196,582 235,840 Property and equipment: Revenue equipment, buildings and land, office equipment and other 1,162,336 1,074,832 Accumulated depreciation (370,103 ) (346,665 ) Net property and equipment 792,233 728,167 Other noncurrent assets 1,524 1,672 Total assets $ 990,339 $ 965,679 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 36,516 $ 37,299 Insurance and claims accruals 47,017 45,747 Accrued and other current liabilities 26,709 41,264 Total current liabilities 110,242 124,310 Deferred income taxes 122,462 137,041 Noncurrent operating lease liabilities 249 409 Total liabilities 232,953 261,760 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; 81,312,168 shares at December 31, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding 813 811 Additional paid-in capital 49,789 47,188 Retained earnings 706,784 655,920 Total stockholders’ equity 757,386 703,919 Total liabilities and stockholders’ equity $ 990,339 $ 965,679 MARTEN TRANSPORT, LTD. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Year Ended December 31, Ended December 31, (In thousands, except per share information) 2023 2022 2023 2022 Operating revenue $ 268,222 $ 322,584 $ 1,131,455 $ 1,263,878 Operating expenses (income): Salaries, wages and benefits 91,350 104,722 378,818 390,304 Purchased transportation 47,259 60,599 199,334 249,792 Fuel and fuel taxes 42,731 55,567 180,437 218,571 Supplies and maintenance 16,120 15,180 67,411 55,700 Depreciation 28,748 29,625 116,722 111,014 Operating taxes and licenses 2,708 2,712 11,053 10,763 Insurance and claims 15,209 12,417 56,014 50,513 Communications and utilities 2,524 2,538 10,149 9,177 Gain on disposition of revenue equipment (1,802 ) (2,957 ) (13,612 ) (13,379 ) Other 7,718 9,398 35,019 38,079 Total operating expenses 252,565 289,801 1,041,345 1,120,534 Operating income 15,657 32,783 90,110 143,344 Other (868 ) (520 ) (3,806 ) (827 ) Income before income taxes 16,525 33,303 93,916 144,171 Income taxes expense 4,126 7,789 23,543 33,817 Net income $ 12,399 $ 25,514 $ 70,373 $ 110,354 Basic earnings per common share $ 0.15 $ 0.31 $ 0.87 $ 1.35 Diluted earnings per common share $ 0.15 $ 0.31 $ 0.86 $ 1.35 Dividends declared per common share $ 0.06 $ 0.06 $ 0.24 $ 0.24 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) 2023 2022 2023 vs. 2022 2023 vs. 2022 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 95,461 $ 108,565 $ (13,104 ) (12.1 )% Truckload fuel surcharge revenue 18,023 22,759 (4,736 ) (20.8 ) Total Truckload revenue 113,484 131,324 (17,840 ) (13.6 ) Dedicated revenue, net of fuel surcharge revenue 77,731 87,985 (10,254 ) (11.7 ) Dedicated fuel surcharge revenue 17,310 23,775 (6,465 ) (27.2 ) Total Dedicated revenue 95,041 111,760 (16,719 ) (15.0 ) Intermodal revenue, net of fuel surcharge revenue 15,610 22,863 (7,253 ) (31.7 ) Intermodal fuel surcharge revenue 3,467 6,390 (2,923 ) (45.7 ) Total Intermodal revenue 19,077 29,253 (10,176 ) (34.8 ) Brokerage revenue 40,620 50,247 (9,627 ) (19.2 ) Total operating revenue $ 268,222 $ 322,584 $ (54,362 ) (16.9 )% Operating income: Truckload $ 2,487 $ 13,414 $ (10,927 ) (81.5 )% Dedicated 9,234 12,877 (3,643 ) (28.3 ) Intermodal 296 728 (432 ) (59.3 ) Brokerage 3,640 5,764 (2,124 ) (36.8 ) Total operating income $ 15,657 $ 32,783 $ (17,126 ) (52.2 )% Operating ratio: Truckload 97.8 % 89.8 % Dedicated 90.3 88.5 Intermodal 98.4 97.5 Brokerage 91.0 88.5 Consolidated operating ratio 94.2 % 89.8 % Operating ratio, net of fuel surcharges: Truckload 97.4 % 87.6 % Dedicated 88.1 85.4 Intermodal 98.1 96.8 Brokerage 91.0 88.5 Consolidated operating ratio, net of fuel surcharges 93.2 % 87.8 % 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) 2023 2022 2023 vs. 2022 2023 vs. 2022 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 395,565 $ 411,448 $ (15,883 ) (3.9 )% Truckload fuel surcharge revenue 69,910 89,014 (19,104 ) (21.5 ) Total Truckload revenue 465,475 500,462 (34,987 ) (7.0 ) Dedicated revenue, net of fuel surcharge revenue 334,962 336,973 (2,011 ) (0.6 ) Dedicated fuel surcharge revenue 73,310 92,119 (18,809 ) (20.4 ) Total Dedicated revenue 408,272 429,092 (20,820 ) (4.9 ) Intermodal revenue, net of fuel surcharge revenue 75,887 100,452 (24,565 ) (24.5 ) Intermodal fuel surcharge revenue 16,191 29,313 (13,122 ) (44.8 ) Total Intermodal revenue 92,078 129,765 (37,687 ) (29.0 ) Brokerage revenue 165,630 204,559 (38,929 ) (19.0 ) Total operating revenue $ 1,131,455 $ 1,263,878 $ (132,423 ) (10.5 )% Operating income/(loss): Truckload $ 24,835 $ 59,392 $ (34,557 ) (58.2 )% Dedicated 48,377 50,566 (2,189 ) (4.3 ) Intermodal (156 ) 10,639 (10,795 ) (101.5 ) Brokerage 17,054 22,747 (5,693 ) (25.0 ) Total operating income $ 90,110 $ 143,344 $ (53,234 ) (37.1 )% Operating ratio: Truckload 94.7 % 88.1 % Dedicated 88.2 88.2 Intermodal 100.2 91.8 Brokerage 89.7 88.9 Consolidated operating ratio 92.0 % 88.7 % Operating ratio, net of fuel surcharges: Truckload 93.7 % 85.6 % Dedicated 85.6 85.0 Intermodal 100.2 89.4 Brokerage 89.7 88.9 Consolidated operating ratio, net of fuel surcharges 90.7 % 86.4 % MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited) Three Months Year Ended December 31, Ended December 31, 2023 2022 2023 2022 Truckload Segment: Revenue (in thousands) $ 113,484 $ 131,324 $ 465,475 $ 500,462 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,183 $ 4,683 $ 4,377 $ 4,898 Average tractors(1) 1,737 1,763 1,733 1,611 Average miles per trip 533 504 519 510 Non-revenue miles percentage(2) 12.4 % 11.9 % 12.4 % 11.1 % Total miles (in thousands) 39,278 39,303 155,929 149,868 Dedicated Segment: Revenue (in thousands) $ 95,041 $ 111,760 $ 408,272 $ 429,092 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,895 $ 3,925 $ 3,936 $ 3,963 Average tractors(1) 1,518 1,706 1,632 1,631 Average miles per trip 335 345 335 341 Non-revenue miles percentage(2) 1.2 % 1.1 % 1.2 % 1.1 % Total miles (in thousands) 31,215 34,910 133,163 136,310 Intermodal Segment: Revenue (in thousands) $ 19,077 $ 29,253 $ 92,078 $ 129,765 Loads 5,289 7,255 25,160 31,862 Average tractors 133 181 159 175 Brokerage Segment: Revenue (in thousands) $ 40,620 $ 50,247 $ 165,630 $ 204,559 Loads 23,594 25,713 91,077 95,615 At December 31, 2023 and December 31, 2022: Total tractors(1) 3,349 3,660 Average age of company tractors (in years) 1.9 1.7 Total trailers 5,653 5,753 Average age of company trailers (in years) 4.6 3.9 Ratio of trailers to tractors(1) 1.7 1.6 Total refrigerated containers 787 802 Three Months Year Ended December 31, Ended December 31, (In thousands) 2023 2022 2023 2022 Net cash provided by operating activities $ 38,045 $ 56,268 $ 164,378 $ 219,489 Net cash (used for) investing activities (48,070 ) (42,542 ) (172,540 ) (134,958 ) Net cash (used for) financing activities (4,829 ) (4,618 ) (19,225 ) (60,926 ) Weighted average shares outstanding: Basic 81,309 81,105 81,272 81,692 Diluted 81,418 81,391 81,413 81,959 (1 ) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 94 and 96 tractors as of December 31, 2023 and 2022, respectively. (2 ) Represents the percentage of miles for which the company is not compensated. 
