MARTEN TRANSPORT LTD - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - MARTEN TRANSPORT LTD	mrtn20150127_8k.htm

Exhibit 99.1

Marten Transport Announces Fourth Quarter and Year End Results

Reports highest net income and operating revenue for any quarter in Company history

MONDOVI, Wis., Jan. 27, 2015 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest net income and operating revenue for any quarter in its history. For the fourth quarter of 2014, net income improved 22.8% to a record $9.0 million, or 27 cents per diluted share, from $7.3 million, or 22 cents per diluted share, for the fourth quarter of 2013. For the year ended December 31, 2014, net income decreased to $29.8 million, or 89 cents per diluted share, from $30.1 million, or 90 cents per diluted share, for the year ended December 31, 2013.

Operating revenue, consisting of revenue from truckload, dedicated, intermodal and brokerage operations, increased 4.4% to a record $173.5 million for the fourth quarter of 2014 from $166.2 million for the fourth quarter of 2013, and increased to $672.9 million for 2014 from $659.2 million for 2013. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 7.5% to $144.6 million for the 2014 quarter from $134.5 million for the 2013 quarter, and increased 4.4% to $547.7 million for 2014 from $524.8 million for 2013. Fuel surcharge revenue decreased to $29.0 million for the fourth quarter of 2014 from $31.7 million for the 2013 quarter, and to $125.2 million for 2014 from $127.7 million for 2013. With the March 2013 deconsolidation of MWL, no MWL revenue was included in 2014 or in the fourth quarter of 2013, compared with $6.7 million in 2013.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 88.7% for the fourth quarter of 2014 from 90.6% for the fourth quarter of 2013. The ratio was 90.7% for 2014 and 90.2% for 2013.

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased to announce our most profitable quarter ever, as well as an operating ratio net of fuel surcharges that at 88.7% was our best quarterly performance in the last 10 years. In the face of a difficult driver recruiting and retention environment, we successfully grew the number of tractors for our Truckload and Dedicated segments by 78 tractors in this year's fourth quarter and by 161 tractors in 2014. We continue to drive gains in our key operating measures as our revenue per tractor increased 3.3% over last year's fourth quarter, our nineteenth consecutive quarterly increase."

"We also improved the profitability of our intermodal operations from an operating loss in this year's third quarter to a 95.9% operating ratio in the fourth quarter, through a combination of rate increases, lane selectivity and slight improvements in rail service. We made these strides even though more favorable fuel costs have been somewhat offset by higher insurance and claims expense and driver wages. Based on the foundation that has been laid by the smart, hard work and dedication of our people, we strongly believe we are well positioned to take advantage of the market's continuing tight capacity in 2015."

"Going forward to best illustrate our increasingly successful and operationally distinct business units, we have elected to move from two to four financial reporting segments. Therefore, starting with this quarter, we are reporting our results in Truckload, Dedicated, Intermodal and Brokerage segments instead of Truckload and Logistics segments. From our Truckload segment we have carved out our dedicated operations into a separate Dedicated segment – a growing provider of customized freight movement solutions tailored to meet individual customers' requirements, utilizing refrigerated trailers, dry vans and other specialized equipment. Our Logistics segment has now also been split into Brokerage and Intermodal. We believe reporting our results in this manner will provide our stakeholders better visibility and understanding into our business and reflect our operational structure."

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten 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.

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. As a result, it was determined that MWL was no longer required to be consolidated. Accordingly, Marten deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting, effective as of that date.

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 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, 2013. 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, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

	December 31,			December 31,
(In thousands, except share information)	2014			2013

ASSETS
Current assets:
Cash and cash equivalents	$	123		$	13,650
Receivables:
Trade, net		72,263			70,869
Other		17,740			4,142
Prepaid expenses and other		16,860			15,274
Deferred income taxes		3,199			3,415
Total current assets		110,185			107,350
Property and equipment:
Revenue equipment, buildings and land, office equipment and other		645,972			579,925
Accumulated depreciation		(180,223	)		(164,916	)
Net property and equipment		465,749			415,009
Other assets		3,726			3,443
TOTAL ASSETS	$	579,660		$	525,802

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash balances	$	745		$	-
Accounts payable and accrued liabilities		29,775			38,624
Insurance and claims accruals		13,998			14,404
Total current liabilities		44,518			53,028
Long-term debt		24,373			-
Deferred income taxes		122,843			113,637
Total liabilities		191,734			166,665

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; 48,000,000 shares authorized; 33,418,829 shares at December 31, 2014, and 33,301,048 shares at December 31, 2013, issued and outstanding		334			333
Additional paid-in capital		87,370			85,077
Retained earnings		300,222			273,727
Total stockholders' equity		387,926			359,137
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	579,660		$	525,802

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months						Year
	Ended December 31,						Ended December 31,
(In thousands, except per share information)	2014			2013			2014			2013

OPERATING REVENUE	$	173,547		$	166,224		$	672,929		$	659,214

OPERATING EXPENSES (INCOME):
Salaries, wages and benefits		48,630			43,534			183,464			171,314
Purchased transportation		31,234			30,987			123,017			123,436
Fuel and fuel taxes		34,213			39,804			153,931			163,270
Supplies and maintenance		10,431			10,755			41,490			40,582
Depreciation		17,754			16,321			68,243			64,476
Operating taxes and licenses		1,862			1,704			7,140			7,110
Insurance and claims		8,247			6,321			27,240			23,681
Communications and utilities		1,547			1,362			5,798			5,212
Gain on disposition of revenue equipment		(1,027	)		(848	)		(4,387	)		(5,972	)
Other		4,264			3,601			15,987			14,110

Total operating expenses		157,155			153,541			621,923			607,219

OPERATING INCOME		16,392			12,683			51,006			51,995

OTHER		269			(94	)		(667	)		(392	)

INCOME BEFORE INCOME TAXES		16,123			12,777			51,673			52,387
Less: Income before income taxes attributable to noncontrolling interest		-			-			-			84

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.		16,123			12,777			51,673			52,303

PROVISION FOR INCOME TAXES		7,154			5,476			21,839			22,156

NET INCOME	$	8,969		$	7,301		$	29,834		$	30,147

BASIC EARNINGS PER COMMON SHARE	$	0.27		$	0.22		$	0.89		$	0.91

DILUTED EARNINGS PER COMMON SHARE	$	0.27		$	0.22		$	0.89		$	0.90

DIVIDENDS DECLARED PER COMMON SHARE	$	0.025		$	0.025		$	0.10		$	0.083

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)	2014			2013			2014 vs. 2013			2014 vs. 2013
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	91,825		$	92,112		$	(287	)		(0.3	)%
Truckload fuel surcharge revenue		20,583			23,634			(3,051	)		(12.9	)
Total Truckload revenue		112,408			115,746			(3,338	)		(2.9	)

Dedicated revenue, net of fuel surcharge revenue		18,280			10,106			8,174			80.9
Dedicated fuel surcharge revenue		3,681			2,561			1,120			43.7
Total Dedicated revenue		21,961			12,667			9,294			73.4

Intermodal revenue, net of fuel surcharge revenue		17,458			19,458			(2,000	)		(10.3	)
Intermodal fuel surcharge revenue		4,716			5,503			(787	)		(14.3	)
Total Intermodal revenue		22,174			24,961			(2,787	)		(11.2	)

Marten Transport Brokerage revenue		17,004			12,850			4,154			32.3

Total operating revenue	$	173,547		$	166,224		$	7,323			4.4	%

Operating income:
Truckload	$	12,440		$	9,666		$	2,774			28.7	%
Dedicated		2,335			1,556			779			50.1
Intermodal		920			921			(1	)		(0.1	)
Brokerage		697			540			157			29.1
Total operating income	$	16,392		$	12,683		$	3,709			29.2	%

Operating ratio:
Truckload		88.9	%		91.6	%
Dedicated		89.4			87.7
Intermodal		95.9			96.3
Brokerage		95.9			95.8
Consolidated operating ratio		90.6	%		92.4	%

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)	2014			2013			2014 vs. 2013			2014 vs. 2013
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	358,458		$	366,798		$	(8,340	)		(2.3	)%
Truckload fuel surcharge revenue		89,815			98,161			(8,346	)		(8.5	)
Total Truckload revenue		448,273			464,959			(16,686	)		(3.6	)

Dedicated revenue, net of fuel surcharge revenue		56,609			33,526			23,083			68.9
Dedicated fuel surcharge revenue		13,743			8,794			4,949			56.3
Total Dedicated revenue		70,352			42,320			28,032			66.2

Intermodal revenue, net of fuel surcharge revenue		75,447			71,764			3,683			5.1
Intermodal fuel surcharge revenue		21,645			20,749			896			4.3
Total Intermodal revenue		97,092			92,513			4,579			4.9

Brokerage revenue:
Marten Transport		57,212			52,746			4,466			8.5
MWL		-			6,676			(6,676	)		(100.0	)
Total Brokerage revenue		57,212			59,422			(2,210	)		(3.7	)

Total operating revenue	$	672,929		$	659,214		$	13,715			2.1	%

Operating income:
Truckload	$	39,483		$	39,290		$	193			0.5	%
Dedicated		7,136			5,575			1,561			28.0
Intermodal		1,735			4,014			(2,279	)		(56.8	)
Brokerage		2,652			3,116			(464	)		(14.9	)
Total operating income	$	51,006		$	51,995		$	(989	)		(1.9	)%

Operating ratio:
Truckload		91.2	%		91.5	%
Dedicated		89.9			86.8
Intermodal		98.2			95.7
Brokerage		95.4			94.8
Consolidated operating ratio		92.4	%		92.1	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

	Three Months						Year
	Ended December 31,						Ended December 31,
	2014			2013			2014			2013
Truckload Segment:
Revenue (in thousands)	$	112,408		$	115,746		$	448,273		$	464,959
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,698		$	3,528		$	3,618		$	3,471
Average tractors⁽¹⁾		1,890			1,987			1,900			2,027
Average miles per trip		696			652			682			645
Non-revenue miles percentage⁽²⁾		8.5	%		9.9	%		9.3	%		10.4	%
Total miles (in thousands)		50,009			51,651			199,168			211,122

Dedicated Segment:
Revenue (in thousands)	$	21,961		$	12,667		$	70,352		$	42,320
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,359		$	3,465		$	3,322		$	3,396
Average tractors⁽¹⁾		414			222			327			189
Average miles per trip		346			332			337			350
Non-revenue miles percentage⁽²⁾		2.8	%		5.0	%		2.4	%		8.2	%
Total miles (in thousands)		10,233			5,646			31,543			19,046

Intermodal Segment:
Revenue (in thousands)	$	22,174		$	24,961		$	97,092		$	92,513
Loads		10,104			10,973			44,336			38,316
Average tractors		105			89			110			83

Brokerage Segment:
Total revenue (in thousands)	$	17,004		$	12,850		$	57,212		$	59,422
Marten Transport
Revenue (in thousands)	$	17,004		$	12,850		$	57,212		$	52,746
Loads		10,714			8,673			36,712			35,140
MWL
Revenue (in thousands)	$	-		$	-		$	-		$	6,676
Loads		-			-			-			3,758

At December 31, 2014 and December 31, 2013:
Total tractors⁽¹⁾		2,420			2,255
Average age of company tractors (in years)		1.7			1.9
Total trailers		4,265			4,105
Average age of company trailers (in years)		2.5			2.4
Ratio of trailers to tractors⁽¹⁾		1.8			1.8

	Three Months				Year
	Ended December 31,				Ended December 31,
(In thousands)	2014		2013		2014		2013

Net cash provided by operating activities	$	23,588	$	23,338	$	81,971	$	89,187
Net cash used for investing activities		23,403		9,994		118,606		74,722

Weighted average shares outstanding:
Basic		33,411		33,265		33,381		33,221
Diluted		33,697		33,525		33,678		33,429

(1)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 52 and 49 tractors as of December 31, 2014, and 2013, respectively.

(2)	Represents the percentage of miles for which the company is not compensated.

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