Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - MARTEN TRANSPORT LTD | ex99-2.htm |
| 8-K - FORM 8-K - MARTEN TRANSPORT LTD | mrtn20170127_8k.htm |
Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS
MONDOVI, Wis., January 26, 2017 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $8.3 million, or 25 cents per diluted share, for the fourth quarter of 2016 compared with $8.8 million, or 26 cents per diluted share, for the fourth quarter of 2015. Net income was $33.5 million, or $1.02 per diluted share, for the year ended December 31, 2016 compared with $35.7 million, or $1.06 per diluted share, for 2015. Results for 2015 included a gain on the disposition of facilities of $392,000 for the fourth quarter and $4.1 million for the year. Net income improved to $33.5 million in 2016 from $33.3 million, or 99 cents per diluted share, in 2015 excluding the facilities gain.
Operating revenue improved 2.3% to $172.7 million for the fourth quarter of 2016 from $168.8 million for the fourth quarter of 2015, and improved 0.9% to $671.1 million for 2016 from $665.0 million for 2015, despite lower fuel surcharges due to decreased fuel prices in 2016. Operating revenue, net of fuel surcharges, improved 2.2% to $157.4 million for the 2016 quarter from $154.0 million for the 2015 quarter, and increased 4.3% to $617.9 million for 2016 from $592.6 million for 2015. Fuel surcharge revenue increased to $15.3 million for the fourth quarter of 2016 from $14.7 million for the 2015 quarter, and decreased 26.4% to $53.2 million for 2016 from $72.3 million for 2015.
Operating expenses as a percentage of operating revenue was 91.6% for the fourth quarter of 2016 and 91.0% for the fourth quarter of 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.8% for the fourth quarter of 2016. The operating ratio, net of both fuel surcharges and the gain on the facility disposition, was 90.4% for the fourth quarter of 2015.
Operating expenses as a percentage of operating revenue was 91.3% for 2016 and 90.8% for 2015. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.6% for 2016. The operating ratio, net of both fuel surcharges and the gain on the facility dispositions, was 90.4% for 2015.
Chairman and Chief Executive Officer Randolph L. Marten said, “Despite persistent softness in the freight market, which has challenged our truckload segment, we have continued to demonstrate the strength of our unique multifaceted business model by achieving our eighth consecutive year-over-year increase in quarterly operating income within each of our dedicated, intermodal and brokerage segments. We increased our average number of truckload and dedicated tractors by 226 tractors, or 9.1%, in 2016 over 2015 with the expansion of our dedicated operations. We remain confident in our ability to profitably capitalize on growth opportunities across all of our business units with our competitive position, cost control emphasis, modern fleet and strong balance sheet.”
Marten Transport, with headquarters in Mondovi, Wis., 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 921 dry trailers operating as of December 31, 2016. 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.
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 our 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, 2015. 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
(Unaudited)
| December 31, | December 31, | |||||||
|
(In thousands, except share information) |
2016 |
2015 |
||||||
|
ASSETS |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ | 488 | $ | 434 | ||||
|
Receivables: |
||||||||
|
Trade, net |
69,199 | 70,597 | ||||||
|
Other |
4,436 | 10,885 | ||||||
|
Prepaid expenses and other |
19,307 | 18,134 | ||||||
|
Total current assets |
93,430 | 100,050 | ||||||
|
Property and equipment: |
||||||||
|
Revenue equipment, buildings and land, office equipment and other |
759,553 | 724,597 | ||||||
|
Accumulated depreciation |
(201,728 | ) | (196,588 | ) | ||||
|
Net property and equipment |
557,825 | 528,009 | ||||||
|
Other assets |
2,493 | 3,469 | ||||||
|
Total assets |
$ | 653,748 | $ | 631,528 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable and accrued liabilities |
$ | 41,230 | $ | 33,641 | ||||
|
Insurance and claims accruals |
19,440 | 16,235 | ||||||
|
Total current liabilities |
60,670 | 49,876 | ||||||
|
Long-term debt |
7,886 | 37,867 | ||||||
|
Deferred income taxes |
147,854 | 134,364 | ||||||
|
Total liabilities |
216,410 | 222,107 | ||||||
|
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; 96,000,000 shares authorized; 32,634,915 shares at December 31, 2016, and 32,759,806 shares at December 31, 2015, issued and outstanding |
326 | 328 | ||||||
|
Additional paid-in capital |
74,175 | 76,468 | ||||||
|
Retained earnings |
362,837 | 332,625 | ||||||
|
Total stockholders’ equity |
437,338 | 409,421 | ||||||
|
Total liabilities and stockholders’ equity |
$ | 653,748 | $ | 631,528 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months |
Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
|
(In thousands, except per share information) |
2016 |
2015 |
2016 |
2015 |
||||||||||||
|
Operating revenue |
$ | 172,661 | $ | 168,773 | $ | 671,144 | $ | 664,994 | ||||||||
|
Operating expenses (income): |
||||||||||||||||
|
Salaries, wages and benefits |
56,711 | 54,554 | 224,827 | 209,455 | ||||||||||||
|
Purchased transportation |
28,722 | 29,687 | 110,719 | 118,030 | ||||||||||||
|
Fuel and fuel taxes |
25,670 | 23,269 | 94,075 | 104,582 | ||||||||||||
|
Supplies and maintenance |
10,887 | 10,584 | 43,912 | 43,319 | ||||||||||||
|
Depreciation |
21,240 | 19,854 | 82,445 | 75,323 | ||||||||||||
|
Operating taxes and licenses |
2,367 | 2,729 | 9,099 | 8,914 | ||||||||||||
|
Insurance and claims |
8,978 | 7,279 | 32,223 | 29,252 | ||||||||||||
|
Communications and utilities |
1,586 | 1,539 | 6,287 | 5,886 | ||||||||||||
|
Gain on disposition of revenue equipment |
(3,040 | ) | (741 | ) | (10,502 | ) | (5,584 | ) | ||||||||
|
Gain on disposition of facilities |
- | (392 | ) | - | (4,104 | ) | ||||||||||
|
Other |
5,007 | 5,174 | 19,756 | 18,858 | ||||||||||||
|
Total operating expenses |
158,128 | 153,536 | 612,841 | 603,931 | ||||||||||||
|
Operating income |
14,533 | 15,237 | 58,303 | 61,063 | ||||||||||||
|
Other |
443 | 225 | 1,237 | 372 | ||||||||||||
|
Income before income taxes |
14,090 | 15,012 | 57,066 | 60,691 | ||||||||||||
|
Provision for income taxes |
5,787 | 6,222 | 23,602 | 24,946 | ||||||||||||
|
Net income |
$ | 8,303 | $ | 8,790 | $ | 33,464 | $ | 35,745 | ||||||||
|
Basic earnings per common share |
$ | 0.25 | $ | 0.26 | $ | 1.03 | $ | 1.07 | ||||||||
|
Diluted earnings per common share |
$ | 0.25 | $ | 0.26 | $ | 1.02 | $ | 1.06 | ||||||||
|
Dividends declared per common share |
$ | 0.025 | $ | 0.025 | $ | 0.10 | $ | 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) |
2016 |
2015 |
2016 vs. 2015 |
2016 vs. 2015 |
||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 86,453 | $ | 85,874 | $ | 579 | 0.7 | % | ||||||||
|
Truckload fuel surcharge revenue |
10,113 | 9,964 | 149 | 1.5 | ||||||||||||
|
Total Truckload revenue |
96,566 | 95,838 | 728 | 0.8 | ||||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
37,174 | 33,323 | 3,851 | 11.6 | ||||||||||||
|
Dedicated fuel surcharge revenue |
3,188 | 2,677 | 511 | 19.1 | ||||||||||||
|
Total Dedicated revenue |
40,362 | 36,000 | 4,362 | 12.1 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
16,155 | 15,599 | 556 | 3.6 | ||||||||||||
|
Intermodal fuel surcharge revenue |
1,992 | 2,090 | (98 | ) | (4.7 | ) | ||||||||||
|
Total Intermodal revenue |
18,147 | 17,689 | 458 | 2.6 | ||||||||||||
|
Brokerage revenue |
17,586 | 19,246 | (1,660 | ) | (8.6 | ) | ||||||||||
|
Total operating revenue |
$ | 172,661 | $ | 168,773 | $ | 3,888 | 2.3 | % | ||||||||
|
Operating income: |
||||||||||||||||
|
Truckload |
$ | 7,038 | $ | 7,903 | $ | (865 | ) | (10.9 | )% | |||||||
|
Dedicated |
4,587 | 4,322 | 265 | 6.1 | ||||||||||||
|
Intermodal |
1,735 | 1,460 | 275 | 18.8 | ||||||||||||
|
Brokerage |
1,173 | 1,160 | 13 | 1.1 | ||||||||||||
|
Total operating income before gain on disposition of facilities |
14,533 | 14,845 | (312 | ) | (2.1 | ) | ||||||||||
|
Gain on disposition of facilities |
- | 392 | (392 | ) | (100.0 | ) | ||||||||||
|
Total operating income |
$ | 14,533 | $ | 15,237 | $ | (704 | ) | (4.6 | )% | |||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
92.7 | % | 91.8 | % | ||||||||||||
|
Dedicated |
88.6 | 88.0 | ||||||||||||||
|
Intermodal |
90.4 | 91.7 | ||||||||||||||
|
Brokerage |
93.3 | 94.0 | ||||||||||||||
|
Consolidated operating ratio before gain on disposition of facilities |
91.6 | % | 91.2 | % | ||||||||||||
|
Consolidated operating ratio |
91.6 | % | 91.0 | % | ||||||||||||
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) |
2016 |
2015 | 2016 vs. 2015 | 2016 vs. 2015 | ||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 339,967 | $ | 348,101 | $ | (8,134 | ) | (2.3 | )% | |||||||
|
Truckload fuel surcharge revenue |
35,884 | 50,260 | (14,376 | ) | (28.6 | ) | ||||||||||
|
Total Truckload revenue |
375,851 | 398,361 | (22,510 | ) | (5.7 | ) | ||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
147,007 | 107,264 | 39,743 | 37.1 | ||||||||||||
|
Dedicated fuel surcharge revenue |
10,363 | 11,008 | (645 | ) | (5.9 | ) | ||||||||||
|
Total Dedicated revenue |
157,370 | 118,272 | 39,098 | 33.1 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
64,508 | 65,877 | (1,369 | ) | (2.1 | ) | ||||||||||
|
Intermodal fuel surcharge revenue |
6,982 | 11,081 | (4,099 | ) | (37.0 | ) | ||||||||||
|
Total Intermodal revenue |
71,490 | 76,958 | (5,468 | ) | (7.1 | ) | ||||||||||
|
Brokerage revenue |
66,433 | 71,403 | (4,970 | ) | (7.0 | ) | ||||||||||
|
Total operating revenue |
$ | 671,144 | $ | 664,994 | $ | 6,150 | 0.9 | % | ||||||||
|
Operating income: |
||||||||||||||||
|
Truckload |
$ | 27,438 | $ | 35,517 | $ | (8,079 | ) | (22.7 | )% | |||||||
|
Dedicated |
19,550 | 12,818 | 6,732 | 52.5 | ||||||||||||
|
Intermodal |
7,131 | 4,832 | 2,299 | 47.6 | ||||||||||||
|
Brokerage |
4,184 | 3,792 | 392 | 10.3 | ||||||||||||
|
Total operating income before gain on disposition of facilities |
58,303 | 56,959 | 1,344 | 2.4 | ||||||||||||
|
Gain on disposition of facilities |
- | 4,104 | (4,104 | ) | (100.0 | ) | ||||||||||
|
Total operating income |
$ | 58,303 | $ | 61,063 | $ | (2,760 | ) | (4.5 | )% | |||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
92.7 | % | 91.1 | % | ||||||||||||
|
Dedicated |
87.6 | 89.2 | ||||||||||||||
|
Intermodal |
90.0 | 93.7 | ||||||||||||||
|
Brokerage |
93.7 | 94.7 | ||||||||||||||
|
Consolidated operating ratio before gain on disposition of facilities |
91.3 | % | 91.4 | % | ||||||||||||
|
Consolidated operating ratio |
91.3 | % | 90.8 | % | ||||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
| Three Months | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
|
Truckload Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 96,566 | $ | 95,838 | $ | 375,851 | $ | 398,361 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,456 | $ | 3,400 | $ | 3,427 | $ | 3,529 | ||||||||
|
Average tractors(1) |
1,903 | 1,921 | 1,898 | 1,892 | ||||||||||||
|
Average miles per trip |
608 | 639 | 623 | 666 | ||||||||||||
|
Non-revenue miles percentage(2) |
9.1 | % | 9.4 | % | 9.2 | % | 9.4 | % | ||||||||
|
Total miles (in thousands) |
46,786 | 45,098 | 184,281 | 186,268 | ||||||||||||
|
Dedicated Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 40,362 | $ | 36,000 | $ | 157,370 | $ | 118,272 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,448 | $ | 3,405 | $ | 3,432 | $ | 3,433 | ||||||||
|
Average tractors(1) |
820 | 745 | 819 | 599 | ||||||||||||
|
Average miles per trip |
295 | 324 | 301 | 347 | ||||||||||||
|
Non-revenue miles percentage(2) |
0.8 | % | 1.5 | % | 0.8 | % | 1.6 | % | ||||||||
|
Total miles (in thousands) |
18,826 | 17,499 | 75,333 | 57,381 | ||||||||||||
|
Intermodal Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 18,147 | $ | 17,689 | $ | 71,490 | $ | 76,958 | ||||||||
|
Loads |
9,273 | 8,639 | 35,947 | 36,404 | ||||||||||||
|
Average tractors |
76 | 82 | 76 | 89 | ||||||||||||
|
Brokerage Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 17,586 | $ | 19,246 | $ | 66,433 | $ | 71,403 | ||||||||
|
Loads |
12,926 | 13,228 | 49,721 | 48,060 | ||||||||||||
|
At December 31, 2016 and December 31, 2015: |
||||||||||||||||
|
Total tractors(1) |
2,785 | 2,740 | ||||||||||||||
|
Average age of company tractors (in years) |
1.4 | 1.5 | ||||||||||||||
|
Total trailers |
4,854 | 4,700 | ||||||||||||||
|
Average age of company trailers (in years) |
2.7 | 2.6 | ||||||||||||||
|
Ratio of trailers to tractors(1) |
1.7 | 1.7 | ||||||||||||||
| Three Months | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
|
(In thousands) |
2016 |
2015 |
2016 |
2015 |
||||||||||||
|
Net cash provided by operating activities |
$ | 29,425 | $ | 26,816 | $ | 133,566 | $ | 128,238 | ||||||||
|
Net cash (used for) investing activities |
(28,448 | ) | (21,555 | ) | (97,290 | ) | (125,081 | ) | ||||||||
|
Net cash (used for) financing activities |
(664 | ) | (4,972 | ) | (36,222 | ) | (2,846 | ) | ||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
32,598 | 33,248 | 32,506 | 33,477 | ||||||||||||
|
Diluted |
32,770 | 33,434 | 32,677 | 33,715 | ||||||||||||
|
(1) |
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 68 and 65 tractors as of December 31, 2016 and 2015, respectively. |
|
(2) |
Represents the percentage of miles for which the company is not compensated. |