Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MARTEN TRANSPORT LTD | mrtn20201013_8k.htm |
Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES THIRD QUARTER RESULTS
Operating income improves 21.8% and net income improves 8.8% over 2019 quarter
MONDOVI, Wis., October 15, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported an 8.8% improvement in net income to $18.0 million, or 22 cents per diluted share, for the third quarter ended September 30, 2020, from $16.6 million, or 20 cents per diluted share, for the third quarter of 2019. For the first nine months of 2020, net income improved 10.1% to $49.9 million, or 60 cents per diluted share, from $45.3 million, or 55 cents per diluted share, for the first nine months of 2019.
Results for the 2020 quarter include a gain of $1.7 million on the disposition of a facility as part of Marten’s program to expand and update its facilities. This gain increased earnings for the 2020 quarter by $1.3 million, while earnings for the 2019 quarter increased by $1.4 million due to an additional income tax benefit.
|
Operating Results Comparison |
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|
Percentage |
Percentage |
|||||||
|
Increase |
Increase |
|||||||
|
Three Months |
Nine Months |
|||||||
|
|
|
Ended |
Ended |
|||||
|
September 30, |
September 30, |
|||||||
|
|
2020 vs. 2019 |
2020 vs. 2019 |
||||||
|
|
|
|
||||||
|
Operating revenue |
|
0.5 |
% |
3.3 |
% |
|||
|
Operating revenue, net of fuel surcharges |
3.8 |
% |
6.2 |
% |
||||
|
Operating income |
|
21.8 |
% |
17.3 |
% |
|||
|
Net income |
8.8 |
% |
10.1 |
% |
||||
Operating revenue improved to $216.0 million for the third quarter of 2020 from $215.0 million for the third quarter of 2019, and improved 3.3% to $647.0 million for the first nine months of 2020 from $626.1 million for the first nine months of 2019. Excluding fuel surcharges, operating revenue improved 3.8% to $196.1 million for the 2020 quarter from $188.9 million for the 2019 quarter, and improved 6.2% to $583.6 million for the first nine months of 2020 from $549.7 million for the first nine months of 2019. Fuel surcharge revenue decreased to $19.9 million for the 2020 quarter from $26.1 million for the 2019 quarter and decreased to $63.5 million for the first nine months of 2020 from $76.4 million for the first nine months of 2019 due to significantly lower fuel prices.
Operating income improved 21.8% to $24.4 million for the third quarter of 2020 from $20.0 million for the third quarter of 2019. Operating income improved 17.3% to $67.7 million for the first nine months of 2020 from $57.7 million for the first nine months of 2019. The operating income for the first nine months of 2020 was the highest for the first nine months of any year in Marten’s history.
Operating expenses as a percentage of operating revenue improved to 88.7% for the third quarter of 2020 from 90.7% for the third quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.6% from 89.4%.
Operating expenses as a percentage of operating revenue improved to 89.5% for the first nine months of 2020 from 90.8% for the first nine months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.4% from 89.5%.
Chairman and Chief Executive Officer Randolph L. Marten said, “Our talented and hard-working people continue to drive consistent profitable growth, with our operating income for the first nine months of this year the highest in our history and up 17.3% over the same period of 2019, and our operating ratio, net of fuel surcharges, the best ratio for the first nine months of any year since we became a public company in 1986. The operating income improvement is on top of strong growth in 2019 of 8.7% and in 2018 of 23.7%.”
“We improved our Truckload miles per tractor by 8.5% over the third quarter of 2019 and by 6.2% over the first nine months of 2019, demonstrating our strength of quickly making data-driven decisions and adjustments utilizing our in-house operating technology. We also have been increasing and will continue to increase the compensation for our premium services within the tightening freight market. We expect to build on our success in expanding the capacity we provide within our unique multifaceted business model to support our diverse and growing customer base by offering the best jobs for the industry’s top, experienced drivers.”
“We embrace our responsibility to keep our valued employees 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.”
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 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 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
|
September 30, |
December 31, |
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|
(In thousands, except share information) |
2020 |
2019 |
||||||
|
(Unaudited) |
||||||||
|
ASSETS |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ | 88,279 | $ | 31,461 | ||||
|
Receivables: |
||||||||
|
Trade, net |
80,719 | 90,712 | ||||||
|
Other |
2,908 | 11,055 | ||||||
|
Prepaid expenses and other |
20,640 | 20,938 | ||||||
|
Total current assets |
192,546 | 154,166 | ||||||
|
Property and equipment: |
||||||||
|
Revenue equipment, buildings and land, office equipment and other |
943,058 | 904,237 | ||||||
|
Accumulated depreciation |
(278,488 |
) |
(263,843 |
) |
||||
|
Net property and equipment |
664,570 | 640,394 | ||||||
|
Other noncurrent assets |
1,950 | 2,026 | ||||||
|
Total assets |
$ | 859,066 | $ | 796,586 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ | 24,563 | $ | 22,917 | ||||
|
Insurance and claims accruals |
36,629 | 31,729 | ||||||
|
Accrued and other current liabilities |
26,755 | 21,680 | ||||||
|
Total current liabilities |
87,947 | 76,326 | ||||||
|
Deferred income taxes |
125,890 | 122,022 | ||||||
|
Noncurrent operating lease liabilities |
521 | 649 | ||||||
|
Total liabilities |
214,358 | 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; 82,680,849 shares at September 30, 2020, and 82,055,199 shares at December 31, 2019, issued and outstanding |
827 | 821 | ||||||
|
Additional paid-in capital |
84,389 | 79,465 | ||||||
|
Retained earnings |
559,492 | 517,303 | ||||||
|
Total stockholders’ equity |
644,708 | 597,589 | ||||||
|
Total liabilities and stockholders’ equity |
$ | 859,066 | $ | 796,586 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months |
Nine Months |
|||||||||||||||
|
Ended September 30, |
Ended September 30, |
|||||||||||||||
|
(In thousands, except per share information) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
|
Operating revenue |
$ | 216,011 | $ | 214,973 | $ | 647,041 | $ | 626,086 | ||||||||
|
Operating expenses (income): |
||||||||||||||||
|
Salaries, wages and benefits |
74,797 | 69,312 | 221,034 | 201,449 | ||||||||||||
|
Purchased transportation |
37,066 | 40,435 | 113,676 | 117,352 | ||||||||||||
|
Fuel and fuel taxes |
24,268 | 31,275 | 73,433 | 89,904 | ||||||||||||
|
Supplies and maintenance |
12,440 | 12,116 | 36,501 | 34,739 | ||||||||||||
|
Depreciation |
25,580 | 24,290 | 76,979 | 70,295 | ||||||||||||
|
Operating taxes and licenses |
2,749 | 2,651 | 8,003 | 7,422 | ||||||||||||
|
Insurance and claims |
11,243 | 9,618 | 35,160 | 29,355 | ||||||||||||
|
Communications and utilities |
1,999 | 1,901 | 5,961 | 5,801 | ||||||||||||
|
Gain on disposition of revenue equipment |
(2,128 |
) |
(2,559 |
) |
(5,899 |
) |
(5,337 |
) |
||||||||
|
Gain on disposition of facility |
(1,718 |
) |
- | (1,718 |
) |
- | ||||||||||
|
Other |
5,315 | 5,900 | 16,223 | 17,395 | ||||||||||||
|
Total operating expenses |
191,611 | 194,939 | 579,353 | 568,375 | ||||||||||||
|
Operating income |
24,400 | 20,034 | 67,688 | 57,711 | ||||||||||||
|
Other |
(17 |
) |
(255 |
) |
(127 |
) |
(928 |
) |
||||||||
|
Income before income taxes |
24,417 | 20,289 | 67,815 | 58,639 | ||||||||||||
|
Income taxes expense |
6,373 | 3,702 | 17,919 | 13,316 | ||||||||||||
|
Net income |
$ | 18,044 | $ | 16,587 | $ | 49,896 | $ | 45,323 | ||||||||
|
Basic earnings per common share |
$ | 0.22 | $ | 0.20 | $ | 0.61 | $ | 0.55 | ||||||||
|
Diluted earnings per common share |
$ | 0.22 | $ | 0.20 | $ | 0.60 | $ | 0.55 | ||||||||
|
Dividends declared per common share |
$ | 0.04 | $ | 0.453 | $ | 0.093 | $ | 0.493 | ||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
Dollar |
Percentage |
|||||||||||||||
|
Change |
Change |
|||||||||||||||
|
Three Months |
Three Months |
Three Months |
||||||||||||||
|
Ended |
Ended |
Ended |
||||||||||||||
|
September 30, |
September 30, |
September 30, |
||||||||||||||
|
(Dollars in thousands) |
2020 |
2019 |
2020 vs. 2019 |
2020 vs. 2019 |
||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 85,074 | $ | 82,931 | $ | 2,143 | 2.6 |
% |
||||||||
|
Truckload fuel surcharge revenue |
8,549 | 12,056 | (3,507 |
) |
(29.1 |
) |
||||||||||
|
Total Truckload revenue |
93,623 | 94,987 | (1,364 |
) |
(1.4 |
) |
||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
69,002 | 59,281 | 9,721 | 16.4 | ||||||||||||
|
Dedicated fuel surcharge revenue |
9,335 | 11,053 | (1,718 |
) |
(15.5 |
) |
||||||||||
|
Total Dedicated revenue |
78,337 | 70,334 | 8,003 | 11.4 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
19,991 | 19,336 | 655 | 3.4 | ||||||||||||
|
Intermodal fuel surcharge revenue |
1,985 | 2,961 | (976 |
) |
(33.0 |
) |
||||||||||
|
Total Intermodal revenue |
21,976 | 22,297 | (321 |
) |
(1.4 |
) |
||||||||||
|
Brokerage revenue |
22,075 | 27,355 | (5,280 |
) |
(19.3 |
) |
||||||||||
|
Total operating revenue |
$ | 216,011 | $ | 214,973 | $ | 1,038 | 0.5 |
% |
||||||||
|
Operating income: |
||||||||||||||||
|
Truckload |
$ | 10,546 | $ | 6,956 | $ | 3,590 | 51.6 |
% |
||||||||
|
Dedicated |
11,024 | 9,920 | 1,104 | 11.1 | ||||||||||||
|
Intermodal |
1,304 | 1,210 | 94 | 7.8 | ||||||||||||
|
Brokerage |
1,526 | 1,948 | (422 |
) |
(21.7 |
) |
||||||||||
|
Total operating income |
$ | 24,400 | $ | 20,034 | $ | 4,366 | 21.8 |
% |
||||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
88.7 |
% |
92.7 |
% |
||||||||||||
|
Dedicated |
85.9 | 85.9 | ||||||||||||||
|
Intermodal |
94.1 | 94.6 | ||||||||||||||
|
Brokerage |
93.1 | 92.9 | ||||||||||||||
|
Consolidated operating ratio |
88.7 |
% |
90.7 |
% |
||||||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
Dollar |
Percentage |
|||||||||||||||
|
Change |
Change |
|||||||||||||||
|
Nine Months |
Nine Months |
Nine Months |
||||||||||||||
|
Ended |
Ended |
Ended |
||||||||||||||
|
September 30, |
September 30, |
September 30, |
||||||||||||||
|
(Dollars in thousands) |
2020 |
2019 |
2020 vs. 2019 |
2020 vs. 2019 |
||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 254,897 | $ | 246,313 | $ | 8,584 | 3.5 |
% |
||||||||
|
Truckload fuel surcharge revenue |
28,058 | 36,418 | (8,360 |
) |
(23.0 |
) |
||||||||||
|
Total Truckload revenue |
282,955 | 282,731 | 224 | 0.1 | ||||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
200,237 | 164,365 | 35,872 | 21.8 | ||||||||||||
|
Dedicated fuel surcharge revenue |
28,564 | 30,704 | (2,140 |
) |
(7.0 |
) |
||||||||||
|
Total Dedicated revenue |
228,801 | 195,069 | 33,732 | 17.3 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
59,127 | 56,618 | 2,509 | 4.4 | ||||||||||||
|
Intermodal fuel surcharge revenue |
6,830 | 9,253 | (2,423 |
) |
(26.2 |
) |
||||||||||
|
Total Intermodal revenue |
65,957 | 65,871 | 86 | 0.1 | ||||||||||||
|
Brokerage revenue |
69,328 | 82,415 | (13,087 |
) |
(15.9 |
) |
||||||||||
|
Total operating revenue |
$ | 647,041 | $ | 626,086 | $ | 20,955 | 3.3 |
% |
||||||||
|
Operating income: |
||||||||||||||||
|
Truckload |
$ | 28,367 | $ | 22,556 | $ | 5,811 | 25.8 |
% |
||||||||
|
Dedicated |
31,009 | 23,135 | 7,874 | 34.0 | ||||||||||||
|
Intermodal |
3,564 | 5,140 | (1,576 |
) |
(30.7 |
) |
||||||||||
|
Brokerage |
4,748 | 6,880 | (2,132 |
) |
(31.0 |
) |
||||||||||
|
Total operating income |
$ | 67,688 | $ | 57,711 | $ | 9,977 | 17.3 |
% |
||||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
90.0 |
% |
92.0 |
% |
||||||||||||
|
Dedicated |
86.4 | 88.1 | ||||||||||||||
|
Intermodal |
94.6 | 92.2 | ||||||||||||||
|
Brokerage |
93.2 | 91.7 | ||||||||||||||
|
Consolidated operating ratio |
89.5 |
% |
90.8 |
% |
||||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
Three Months |
Nine Months |
|||||||||||||||
|
Ended September 30, |
Ended September 30, |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
|
Truckload Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 93,623 | $ | 94,987 | $ | 282,955 | $ | 282,731 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,955 | $ | 3,723 | $ | 3,865 | $ | 3,818 | ||||||||
|
Average tractors(1) |
1,637 | 1,695 | 1,685 | 1,654 | ||||||||||||
|
Average miles per trip |
546 | 545 | 554 | 545 | ||||||||||||
|
Non-revenue miles percentage(2) |
10.2 |
% |
11.8 |
% |
10.8 |
% |
11.4 |
% |
||||||||
|
Total miles (in thousands) |
41,210 | 39,326 | 125,082 | 115,639 | ||||||||||||
|
Dedicated Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 78,337 | $ | 70,334 | $ | 228,801 | $ | 195,069 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,295 | $ | 3,392 | $ | 3,304 | $ | 3,412 | ||||||||
|
Average tractors(1) |
1,593 | 1,329 | 1,548 | 1,235 | ||||||||||||
|
Average miles per trip |
304 | 312 | 306 | 316 | ||||||||||||
|
Non-revenue miles percentage(2) |
0.7 |
% |
0.7 |
% |
0.7 |
% |
0.7 |
% |
||||||||
|
Total miles (in thousands) |
33,843 | 28,859 | 98,553 | 79,700 | ||||||||||||
|
Intermodal Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 21,976 | $ | 22,297 | $ | 65,957 | $ | 65,871 | ||||||||
|
Loads |
9,306 | 8,897 | 27,736 | 26,578 | ||||||||||||
|
Average tractors |
99 | 87 | 99 | 85 | ||||||||||||
|
Brokerage Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 22,075 | $ | 27,355 | $ | 69,328 | $ | 82,415 | ||||||||
|
Loads |
13,670 | 16,059 | 45,058 | 47,510 | ||||||||||||
|
At September 30, 2020 and September 30, 2019: |
||||||||||||||||
|
Total tractors(1) |
3,329 | 3,137 | ||||||||||||||
|
Average age of company tractors (in years) |
1.7 | 1.8 | ||||||||||||||
|
Total trailers |
5,368 | 5,562 | ||||||||||||||
|
Average age of company trailers (in years) |
2.9 | 2.6 | ||||||||||||||
|
Ratio of trailers to tractors(1) |
1.6 | 1.8 | ||||||||||||||
|
Three Months |
Nine Months |
|||||||||||||||
|
Ended September 30, |
Ended September 30, |
|||||||||||||||
|
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
|
Net cash provided by operating activities |
$ | 50,640 | $ | 46,920 | $ | 154,707 | $ | 122,021 | ||||||||
|
Net cash (used for) investing activities |
(34,558 |
) |
(52,719 |
) |
(93,748 |
) |
(98,489 |
) |
||||||||
|
Net cash (used for) financing activities |
(3,126 |
) |
(36,513 |
) |
(4,141 |
) |
(39,815 |
) |
||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
82,672 | 81,982 | 82,472 | 81,912 | ||||||||||||
|
Diluted |
83,279 | 82,701 | 83,098 | 82,618 | ||||||||||||
|
(1) |
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 132 and 75 tractors as of September 30, 2020 and 2019, respectively. |
|
|
|
|
(2) |
Represents the percentage of miles for which the company is not compensated. |