MONDOVI, Wis., July 21, 2009 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) announced today its financial and operating results for the quarter ended June 30, 2009.
For the second quarter of 2009, net income increased 29.1% to $4.5 million, or 20 cents per diluted share, compared with $3.5 million, or 16 cents per diluted share, for the same quarter of 2008. For the six-month period of 2009, net income increased 39.3% to $8.5 million, or 39 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same six-month period of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 21.4% to $125.8 million in the second quarter of 2009 from $160.0 million in the 2008 quarter and decreased 18.3% to $247.8 million in the six-month period of 2009 from $303.4 million in the 2008 six-month period. The decreases were primarily due to fuel surcharge revenue decreasing to $12.6 million in the quarter from $40.1 million in the 2008 quarter and to $23.4 million in the 2009 six-month period from $68.1 million in the 2008 six-month period, caused by significantly lower fuel prices in the 2009 periods. Operating revenue, net of fuel surcharge revenue, decreased 5.6% to $113.2 million in the 2009 quarter from $119.9 million in the 2008 quarter and decreased 4.6% to $224.4 million in the 2009 six-month period from $235.2 million in the 2008 six-month period, due to a decrease in average miles per tractor.
Operating expenses decreased 23.0% to $118.3 million in the second quarter of 2009 from $153.6 million in the 2008 quarter and decreased 20.1% to $233.0 million in the 2009 six-month period from $291.5 million in the 2008 six-month period. The operating expense decreases were primarily due to decreases in fuel and fuel taxes and purchased transportation over both periods. Fuel and fuel taxes decreased 53.1% to $24.3 million in the second quarter of 2009 from $51.8 million in the 2008 quarter and decreased 50.8% to $46.1 million in the 2009 six-month period from $93.7 million in the 2008 six-month period. This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to our continued emphasis on controlling tractor and trailer fuel costs. Purchased transportation decreased 17.1% to $25.9 million in the second quarter of 2009 from $31.3 million in the second quarter of 2008 and decreased 17.9% to $48.7 million in the 2009 six-month period from $59.3 million in the 2008 six-month period, primarily as a result of decreases in miles driven by, and in the amount of fuel surcharges paid to, independent contractors.
Additionally, insurance and claims expense decreased by $2.0 million from the second quarter of 2008, due to reduced physical damage claims related to our tractors and trailers and decreases in the cost of self-insured auto liability and workers' compensation accident claims.
Consistent with the growth in our net income, our net cash from operating activities increased to $15.1 million for the second quarter of 2009 from $7.0 million in the 2008 quarter and increased to $42.5 million for the 2009 six-month period from $21.7 million in the 2008 six-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, "Despite the ongoing difficult freight environment, our ability to continue to produce positive results was clearly demonstrated in the second quarter. We continued our disciplined focus on superior customer service, profitable freight selection and aggressive cost controls. Most notably, our expansion of regional operations throughout the country, our continued growth of our logistics business, and our fuel efficiency initiatives have helped us improve our results.
"Our operating ratio (operating expenses as a percentage of operating revenue) improved to 94.0% for each of the second quarter and six-month periods of 2009 from 96.0% for the second quarter of 2008 and 96.1% for the 2008 six-month period.
"I want to especially recognize the efforts of all our employees, who remain one of our key strategic strengths. Their smart, hard work and dedication to Marten Transport has continued to show tangible results in our ability to control costs and remain profitable in this difficult economy without reducing our work force or cutting our employees' pay or benefits. With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, we believe that we are well-positioned for an economic recovery."
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.
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, including that we are well-positioned for an economic recovery. 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 us that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
June 30, Dec. 31,
(In thousands, except share information) 2009 2008
---------------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,984 $ 2,395
Marketable securities 8,710 2,604
Receivables:
Trade, net 48,760 50,143
Other 7,913 7,385
Prepaid expenses and other 11,248 13,705
Deferred income taxes 7,300 6,140
---------------------
Total current assets 91,915 82,372
---------------------
Property and equipment:
Revenue equipment, buildings and land,
office equipment and other 465,596 451,172
Accumulated depreciation (147,925) (136,871)
---------------------
Net property and equipment 317,671 314,301
Other assets 595 770
---------------------
TOTAL ASSETS $ 410,181 $ 397,443
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash balances $ 1,042 $ 1,807
Accounts payable and accrued liabilities 32,593 32,894
Insurance and claims accruals 22,041 21,386
Current maturities of long-term debt 1,428 1,428
---------------------
Total current liabilities 57,104 57,515
Long-term debt, less current maturities -- 1,429
Deferred income taxes 85,987 81,048
---------------------
Total liabilities 143,091 139,992
---------------------
Stockholders' equity:
Marten Transport, Ltd. 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;
21,885,073 shares at June 30, 2009, and
21,830,071 shares at December 31, 2008,
issued and outstanding 219 218
Additional paid-in capital 76,236 75,305
Retained earnings 188,743 180,213
---------------------
Total Marten Transport, Ltd.
stockholders' equity 265,198 255,736
Noncontrolling interest 1,892 1,715
---------------------
Total stockholders' equity 267,090 257,451
---------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 410,181 $ 397,443
=====================
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share information)
Three Months Six Months
Ended June 30, Ended June 30,
------------------------------------------
2009 2008 2009 2008
------------------------------------------
OPERATING REVENUE $ 125,804 $ 159,994 $ 247,759 $ 303,368
------------------------------------------
OPERATING EXPENSES
(INCOME):
Salaries, wages
and benefits 35,759 37,755 71,861 74,437
Purchased transportation 25,933 31,285 48,685 59,289
Fuel and fuel taxes 24,272 51,785 46,138 93,714
Supplies and maintenance 9,558 9,378 19,376 18,710
Depreciation 13,386 12,346 26,819 24,308
Operating taxes
and licenses 1,702 1,762 3,378 3,474
Insurance and claims 4,678 6,653 10,199 12,218
Communications
and utilities 1,002 909 2,067 1,870
Gain on disposition of
revenue equipment (528) (927) (999) (1,986)
Other 2,539 2,620 5,481 5,424
------------------------------------------
Total operating
expenses 118,301 153,566 233,005 291,458
------------------------------------------
OPERATING INCOME 7,503 6,428 14,754 11,910
------------------------------------------
OTHER EXPENSES (INCOME):
Interest expense 34 302 98 836
Interest income (30) (37) (63) (114)
------------------------------------------
4 265 35 722
------------------------------------------
INCOME BEFORE INCOME TAXES 7,499 6,163 14,719 11,188
Less: Income before
income taxes
attributable to
noncontrolling interest 145 225 261 605
------------------------------------------
INCOME BEFORE INCOME TAXES
ATTRIBUTABLE TO MARTEN
TRANSPORT, LTD 7,354 5,938 14,458 10,583
PROVISION FOR INCOME TAXES 2,877 2,469 5,928 4,461
------------------------------------------
NET INCOME $ 4,477 $ 3,469 $ 8,530 $ 6,122
==========================================
BASIC EARNINGS PER
COMMON SHARE $ 0.20 $ 0.16 $ 0.39 $ 0.28
==========================================
DILUTED EARNINGS PER
COMMON SHARE $ 0.20 $ 0.16 $ 0.39 $ 0.28
==========================================
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar Percentage
Change Change
Three Three
Three Months Months Months
Ended Ended Ended
June 30, June 30, June 30,
------------------- 2009 vs. 2009 vs.
(Dollars in thousands) 2009 2008 2008 2008
-----------------------------------------
Operating revenue:
Truckload revenue, net
of fuel surcharge
revenue $ 87,969 $ 96,506 $ (8,537) (8.8)%
Truckload fuel
surcharge revenue 11,286 37,568 (26,282) (70.0)
-----------------------------------------
Total Truckload revenue 99,255 134,074 (34,819) (26.0)
-----------------------------------------
Logistics revenue, net
of intermodal fuel
surcharge revenue 25,225 23,366 1,859 8.0
Intermodal fuel
surcharge revenue 1,324 2,554 (1,230) (48.2)
-----------------------------------------
Total Logistics revenue 26,549 25,920 629 2.4
-----------------------------------------
Total operating revenue $125,804 $159,994 $(34,190) (21.4)%
=========================================
Operating income:
Truckload $ 5,697 $ 4,634 $ 1,063 22.9%
Logistics 1,806 1,794 12 0.7
-----------------------------------------
Total operating income $ 7,503 $ 6,428 $ 1,075 16.7%
=========================================
Operating ratio:
Truckload 94.3% 96.5% 2.3%
Logistics 93.2 93.1 (0.1)
------------------- --------
Consolidated
operating ratio 94.0% 96.0% 2.1%
=================== ========
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar Percentage
Change Change
Six Months Six Months Six Months
Ended Ended Ended
June 30, June 30, June 30,
------------------- 2009 vs. 2009 vs.
(Dollars in thousands) 2009 2008 2008 2008
-----------------------------------------
Operating revenue:
Truckload revenue, net
of fuel surcharge
revenue $176,504 $191,137 $(14,633) (7.7)%
Truckload fuel
surcharge revenue 21,123 64,066 (42,943) (67.0)
-----------------------------------------
Total Truckload revenue 197,627 255,203 (57,576) (22.6)
-----------------------------------------
Logistics revenue, net
of intermodal fuel
surcharge revenue 47,875 44,111 3,764 8.5
Intermodal fuel
surcharge revenue 2,257 4,054 (1,797) (44.3)
-----------------------------------------
Total Logistics revenue 50,132 48,165 1,967 4.1
-----------------------------------------
Total operating revenue $247,759 $303,368 $(55,609) (18.3)%
=========================================
Operating income:
Truckload $ 11,530 $ 8,361 $ 3,169 37.9%
Logistics 3,224 3,549 (325) (9.2)
-----------------------------------------
Total operating income $ 14,754 $ 11,910 $ 2,844 23.9%
=========================================
Operating ratio:
Truckload 94.2% 96.7% 2.6%
Logistics 93.6 92.6 (1.1)
------------------- --------
Consolidated
operating ratio 94.0% 96.1% 2.2%
=================== ========
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
-----------------------------------------
2009 2008 2009 2008
-----------------------------------------
Truckload Segment:
Revenue (in thousands) $ 99,255 $134,074 $197,627 $255,203
Average truckload revenue,
net of fuel surcharges,
per total mile $ 1.501 $ 1.497 $ 1.513 $ 1.488
Average miles per
tractor(1) 24,581 27,162 48,922 54,245
Average truckload revenue,
net of fuel surcharges,
per tractor per week(1) $ 2,838 $ 3,128 $ 2,863 $ 3,105
Average tractors(1) 2,384 2,373 2,385 2,368
Average miles per trip 796 865 810 878
Non-revenue miles
percentage(2) 9.3% 7.7% 9.1% 7.9%
Total miles -
company-employed drivers
(in thousands) 52,557 55,587 104,669 109,897
Total miles -
independent contractors
(in thousands) 6,045 8,877 11,988 18,548
Logistics Segment:
Brokerage:
Revenue (in thousands) $ 15,859 $ 16,487 $ 30,313 $ 31,711
Loads 9,365 7,978 16,971 15,591
Intermodal:
Revenue (in thousands) $ 10,690 $ 9,433 $ 19,819 $ 16,454
Loads 4,656 2,773 8,309 4,926
Average tractors 64 51 59 45
At June 30, 2009, and June
30, 2008:
Total tractors(1) 2,492 2,392
Average age of company
tractors (in years) 2.3 2.3
Total trailers 4,142 4,086
Average age of company
trailers (in years) 3.3 2.7
Ratio of trailers to
tractors(1) 1.7 1.7
Ratio of tractors to
non-driver personnel(1) 4.4 4.8
Three Months Six Months
Ended June 30, Ended June 30,
-----------------------------------------
(In thousands) 2009 2008 2009 2008
-----------------------------------------
Net cash provided by
operating activities $ 15,112 $ 6,979 $ 42,528 $ 21,718
Net cash (used for) provided
by investing activities (8,818) 3,637 (35,299) 2,770
Weighted average
shares outstanding:
Basic 21,871 21,764 21,855 21,760
Diluted 21,993 21,918 21,978 21,912
(1) Includes tractors driven by both company-employed drivers and
independent contractors. Independent contractors provided 221 and
246 tractors as of June 30, 2009, and 2008, respectively.
(2) Represents the percentage of miles for which the company is not
compensated.
CONTACT: Marten Transport, Ltd.,
Tim Kohl, President
Jim Hinnendael, Chief Financial Officer
715-926-4216
