Marten Transport Announces First Quarter Results
April 18 2023 - 3:01PM
Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income
of $22.5 million, or 28 cents per diluted share, for the first
quarter ended March 31, 2023, compared with $27.5 million, or 33
cents per diluted share, for the first quarter of 2022.
Operating revenue improved 3.7% to $298.0
million for the first quarter of 2023 from $287.3 million for the
first quarter of 2022. Excluding fuel surcharges, operating revenue
improved 3.9% to $254.9 million for the 2023 quarter from $245.3
million for the 2022 quarter. Fuel surcharge revenue increased to
$43.1 million for the 2023 quarter from $42.0 million for the 2022
quarter.
Operating income was $29.0 million for the first
quarter of 2023 compared with $35.9 million for the first quarter
of 2022 – at the time the highest amount for any quarter in
Marten’s history.
Operating expenses as a percentage of operating
revenue were 90.3% for the 2023 quarter and 87.5% for the 2022
quarter. Operating expenses as a percentage of operating revenue,
with both amounts net of fuel surcharges, were 88.6% for the 2023
quarter and 85.4% for the 2022 quarter – at the time the best ratio
for any quarter since Marten became a public company in 1986.
Executive Chairman Randolph L. Marten stated,
“Our bright and determined people executing our unique business
model produced solid operating results despite the impact of
widespread severe winter weather and a freight market which has
considerably softened from the exceptionally tight conditions
during the first half of last year. The market has become
unsustainable for the smaller carriers who comprise a significant
portion of total capacity, and who are expected to continue the
recent increased industry exit rate.”
“We believe that we are well-positioned to
capitalize on profitable organic growth opportunities across our
five distinct but complementary business platforms with our
emphasis on premium service, data-driven operating efficiencies and
cost controls – and, as a result, to expand the total capacity we
provide transporting and distributing the essential food, beverages
and other consumer goods to support at a fair price our diverse and
growing customer base.”
Current Investor Presentation
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
|
|
March 31, |
|
December 31, |
(In
thousands, except share information) |
|
2023 |
|
|
2022 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
96,288 |
|
|
$ |
80,600 |
|
Receivables: |
|
|
|
|
|
|
|
|
Trade, net |
|
|
115,430 |
|
|
|
120,702 |
|
Other |
|
|
7,988 |
|
|
|
7,218 |
|
Prepaid expenses and other |
|
|
24,206 |
|
|
|
27,320 |
|
Total current assets |
|
|
243,912 |
|
|
|
235,840 |
|
|
|
|
|
|
|
|
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
Revenue equipment, buildings and land, office equipment and
other |
|
|
1,082,361 |
|
|
|
1,074,832 |
|
Accumulated depreciation |
|
|
(348,641 |
) |
|
|
(346,665 |
) |
Net property and equipment |
|
|
733,720 |
|
|
|
728,167 |
|
Other noncurrent assets |
|
|
1,641 |
|
|
|
1,672 |
|
Total assets |
|
$ |
979,273 |
|
|
$ |
965,679 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
41,558 |
|
|
$ |
37,299 |
|
Insurance and claims accruals |
|
|
48,967 |
|
|
|
45,747 |
|
Accrued and other current liabilities |
|
|
29,077 |
|
|
|
41,264 |
|
Total current liabilities |
|
|
119,602 |
|
|
|
124,310 |
|
Deferred income taxes |
|
|
137,825 |
|
|
|
137,041 |
|
Noncurrent operating lease liabilities |
|
|
335 |
|
|
|
409 |
|
Total liabilities |
|
|
257,762 |
|
|
|
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; 81,233,741 shares at March 31, 2023, and 81,115,132
shares at December 31, 2022, issued and outstanding |
|
|
812 |
|
|
|
811 |
|
Additional paid-in capital |
|
|
47,151 |
|
|
|
47,188 |
|
Retained earnings |
|
|
673,548 |
|
|
|
655,920 |
|
Total stockholders’ equity |
|
|
721,511 |
|
|
|
703,919 |
|
Total liabilities and stockholders’ equity |
|
$ |
979,273 |
|
|
$ |
965,679 |
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three Months |
|
|
|
Ended March 31, |
|
(In
thousands, except per share information) |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Operating
revenue |
|
$ |
298,023 |
|
|
$ |
287,281 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses (income): |
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
98,516 |
|
|
|
89,349 |
|
Purchased transportation |
|
|
54,103 |
|
|
|
57,310 |
|
Fuel and fuel taxes |
|
|
46,796 |
|
|
|
44,368 |
|
Supplies and maintenance |
|
|
15,987 |
|
|
|
12,313 |
|
Depreciation |
|
|
29,530 |
|
|
|
26,143 |
|
Operating taxes and licenses |
|
|
2,768 |
|
|
|
2,640 |
|
Insurance and claims |
|
|
15,070 |
|
|
|
12,704 |
|
Communications and utilities |
|
|
2,531 |
|
|
|
2,265 |
|
Gain on disposition of revenue equipment |
|
|
(5,246 |
) |
|
|
(4,540 |
) |
Other |
|
|
8,958 |
|
|
|
8,871 |
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
269,013 |
|
|
|
251,423 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
29,010 |
|
|
|
35,858 |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
(844 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
29,854 |
|
|
|
35,865 |
|
|
|
|
|
|
|
|
|
|
Income taxes
expense |
|
|
7,352 |
|
|
|
8,332 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
22,502 |
|
|
$ |
27,533 |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.28 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share |
|
$ |
0.28 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
Dividends
declared per common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT,
LTD.SEGMENT
INFORMATION(Unaudited)
|
|
|
|
|
|
|
|
|
|
Dollar |
|
|
Percentage |
|
|
|
|
|
|
|
|
|
|
|
Change |
|
|
Change |
|
|
|
Three Months |
|
|
Three Months |
|
|
Three Months |
|
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
(Dollars in
thousands) |
|
2023 |
|
|
2022 |
|
|
2023 vs. 2022 |
|
|
2023 vs. 2022 |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload revenue, net of fuel surcharge revenue |
|
$ |
102,320 |
|
|
$ |
95,170 |
|
|
$ |
7,150 |
|
|
|
7.5 |
% |
Truckload fuel surcharge revenue |
|
|
18,306 |
|
|
|
17,620 |
|
|
|
686 |
|
|
|
3.9 |
|
Total Truckload revenue |
|
|
120,626 |
|
|
|
112,790 |
|
|
|
7,836 |
|
|
|
6.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated revenue, net of fuel surcharge revenue |
|
|
86,831 |
|
|
|
78,421 |
|
|
|
8,410 |
|
|
|
10.7 |
|
Dedicated fuel surcharge revenue |
|
|
19,618 |
|
|
|
18,339 |
|
|
|
1,279 |
|
|
|
7.0 |
|
Total Dedicated revenue |
|
|
106,449 |
|
|
|
96,760 |
|
|
|
9,689 |
|
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal revenue, net of fuel surcharge revenue |
|
|
23,401 |
|
|
|
25,605 |
|
|
|
(2,204 |
) |
|
|
(8.6 |
) |
Intermodal fuel surcharge revenue |
|
|
5,188 |
|
|
|
6,037 |
|
|
|
(849 |
) |
|
|
(14.1 |
) |
Total Intermodal revenue |
|
|
28,589 |
|
|
|
31,642 |
|
|
|
(3,053 |
) |
|
|
(9.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage revenue |
|
|
42,359 |
|
|
|
46,089 |
|
|
|
(3,730 |
) |
|
|
(8.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
$ |
298,023 |
|
|
$ |
287,281 |
|
|
$ |
10,742 |
|
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
$ |
10,041 |
|
|
$ |
15,571 |
|
|
$ |
(5,530 |
) |
|
|
(35.5 |
)% |
Dedicated |
|
|
13,684 |
|
|
|
10,645 |
|
|
|
3,039 |
|
|
|
28.5 |
|
Intermodal |
|
|
787 |
|
|
|
5,036 |
|
|
|
(4,249 |
) |
|
|
(84.4 |
) |
Brokerage |
|
|
4,498 |
|
|
|
4,606 |
|
|
|
(108 |
) |
|
|
(2.3 |
) |
Total operating income |
|
$ |
29,010 |
|
|
$ |
35,858 |
|
|
$ |
(6,848 |
) |
|
|
(19.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
|
91.7 |
% |
|
|
86.2 |
% |
|
|
|
|
|
|
|
|
Dedicated |
|
|
87.1 |
|
|
|
89.0 |
|
|
|
|
|
|
|
|
|
Intermodal |
|
|
97.2 |
|
|
|
84.1 |
|
|
|
|
|
|
|
|
|
Brokerage |
|
|
89.4 |
|
|
|
90.0 |
|
|
|
|
|
|
|
|
|
Consolidated operating ratio |
|
|
90.3 |
% |
|
|
87.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
ratio, net of fuel surcharges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
|
90.2 |
% |
|
|
83.6 |
% |
|
|
|
|
|
|
|
|
Dedicated |
|
|
84.2 |
|
|
|
86.4 |
|
|
|
|
|
|
|
|
|
Intermodal |
|
|
96.6 |
|
|
|
80.3 |
|
|
|
|
|
|
|
|
|
Brokerage |
|
|
89.4 |
|
|
|
90.0 |
|
|
|
|
|
|
|
|
|
Consolidated operating ratio, net of fuel surcharges |
|
|
88.6 |
% |
|
|
85.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
|
Three Months |
|
|
|
Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Truckload Segment: |
|
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
120,626 |
|
|
$ |
112,790 |
|
Average revenue, net of fuel surcharges, per tractor per
week(1) |
|
$ |
4,571 |
|
|
$ |
4,977 |
|
Average tractors(1) |
|
|
1,741 |
|
|
|
1,487 |
|
Average miles per trip |
|
|
510 |
|
|
|
520 |
|
Non-revenue miles percentage(2) |
|
|
12.7 |
% |
|
|
10.4 |
% |
Total miles (in thousands) |
|
|
38,237 |
|
|
|
35,372 |
|
|
|
|
|
|
|
|
|
|
Dedicated
Segment: |
|
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
106,449 |
|
|
$ |
96,760 |
|
Average revenue, net of fuel surcharges, per tractor per
week(1) |
|
$ |
3,960 |
|
|
$ |
3,851 |
|
Average tractors(1) |
|
|
1,705 |
|
|
|
1,584 |
|
Average miles per trip |
|
|
333 |
|
|
|
341 |
|
Non-revenue miles percentage(2) |
|
|
1.1 |
% |
|
|
1.2 |
% |
Total miles (in thousands) |
|
|
34,076 |
|
|
|
32,753 |
|
|
|
|
|
|
|
|
|
|
Intermodal
Segment: |
|
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
28,589 |
|
|
$ |
31,642 |
|
Loads |
|
|
7,277 |
|
|
|
8,294 |
|
Average tractors |
|
|
180 |
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
Brokerage
Segment: |
|
|
|
|
|
|
|
|
Revenue (in thousands) |
|
$ |
42,359 |
|
|
$ |
46,089 |
|
Loads |
|
|
20,688 |
|
|
|
19,684 |
|
|
|
|
|
|
|
|
|
|
At March 31,
2023 and March 31, 2022: |
|
|
|
|
|
|
|
|
Total tractors(1) |
|
|
3,571 |
|
|
|
3,274 |
|
Average age of company tractors (in years) |
|
|
1.7 |
|
|
|
1.6 |
|
Total trailers |
|
|
5,741 |
|
|
|
5,428 |
|
Average age of company trailers (in years) |
|
|
4.1 |
|
|
|
3.5 |
|
Ratio of trailers to tractors(1) |
|
|
1.6 |
|
|
|
1.7 |
|
Total refrigerated containers |
|
|
802 |
|
|
|
729 |
|
|
|
Three Months |
|
|
|
Ended March 31, |
|
(In
thousands) |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
49,232 |
|
|
$ |
39,940 |
|
Net cash
(used for)/provided by investing activities |
|
|
(28,280 |
) |
|
|
409 |
|
Net cash
(used for) financing activities |
|
|
(5,264 |
) |
|
|
(30,817 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
81,210 |
|
|
|
82,938 |
|
Diluted |
|
|
81,376 |
|
|
|
83,246 |
|
(1 |
) |
Includes
tractors driven by both company-employed drivers and independent
contractors. Independent contractors provided 95 and 87 tractors as
of March 31, 2023 and 2022, respectively. |
|
|
(2 |
) |
Represents
the percentage of miles for which the company is not
compensated. |
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