MONDOVI, Wis., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) announced today its financial and operating results for the quarter ended September 30, 2009.
For the third quarter of 2009, our net income was $3.5 million, or 16 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same quarter of 2008. For the nine-month period of 2009, net income was $12.0 million, or 55 cents per diluted share, compared with $12.2 million, or 56 cents per diluted share, for the same nine-month period of 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 20.8% to $129.4 million in the third quarter of 2009 from $163.4 million in the 2008 quarter and decreased 19.2% to $377.2 million in the nine-month period of 2009 from $466.7 million in the 2008 nine-month period. The decreases were primarily due to fuel surcharge revenue decreasing to $15.7 million in the quarter from $41.3 million in the 2008 quarter and to $39.1 million in the 2009 nine-month period from $109.4 million in the 2008 nine-month period, caused by significantly lower fuel prices in the 2009 periods. Our operating revenue was negatively impacted by the harsh operating environment with reduced freight volumes, excess capacity furthered by lenders' and lessors' unwillingness to liquidate insolvent carriers, and an unprecedented increase in shipper bid packages resulting in a non-sustainable rate environment. Operating revenue, net of fuel surcharge revenue, decreased 6.9% to $113.7 million in the 2009 quarter from $122.1 million in the 2008 quarter and decreased 5.4% to $338.1 million in the 2009 nine-month period from $357.3 million in the 2008 nine-month period, primarily due to a decrease in average miles per tractor.
Operating expenses decreased 19.6% to $122.9 million in the third quarter of 2009 from $152.8 million in the 2008 quarter and decreased 19.9% to $355.9 million in the 2009 nine-month period from $444.3 million in the 2008 nine-month period. The operating expense decreases were primarily due to decreases in fuel and fuel taxes over both periods. Fuel and fuel taxes decreased 48.1% to $26.6 million in the third quarter of 2009 from $51.2 million in the 2008 quarter and decreased 49.8% to $72.7 million in the 2009 nine-month period from $144.9 million in the 2008 nine-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.
Our operating ratio (operating expenses as a percentage of operating revenue) was 94.9% for the third quarter of 2009 compared with 93.6% for the same quarter in 2008 and improved to 94.4% for the nine-month period of 2009 from 95.2% for the 2008 nine-month period.
Chairman and Chief Executive Officer Randolph L. Marten said, "With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, from management to the hard-working drivers and other employees, we are confident that we are well-positioned for growth. We continue to expand our logistics, regional and Mexican operations while focusing on superior customer service, profitable freight selection and aggressive cost controls. We believe that many of the benefits of our strategic initiatives and cost controls have not yet been fully realized.
"Our logistics business continued to expand at a solid pace. Logistics revenue, net of intermodal fuel surcharges, grew to $27.4 million in the third quarter, an increase of 16.6% over the 2008 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 11.3% to $75.2 million, compared to $67.6 million in 2008. Logistics revenue consists of revenue from our internal brokerage and intermodal operations and revenue associated with our 45% interest in MW Logistics, LLC, a third-party provider of logistics services.
"Finally, we are pleased to be named to the Forbes.com list of America's 200 Best Small Companies for the fourth time in the last five years."
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 growth. 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)
Sept. 30, Dec. 31,
(In thousands, except share information) 2009 2008
------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,891 $ 2,395
Marketable securities 4,750 2,604
Receivables:
Trade, net 49,879 50,143
Other 6,612 7,385
Prepaid expenses and other 10,534 13,705
Deferred income taxes 6,593 6,140
-----------------------
Total current assets 86,259 82,372
-----------------------
Property and equipment:
Revenue equipment, buildings
and land, office equipment
and other 482,581 451,172
Accumulated depreciation (150,084) (136,871)
-----------------------
Net property and equipment 332,497 314,301
Other assets 559 770
-----------------------
TOTAL ASSETS $ 419,315 $ 397,443
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued in excess of cash
balances $ 1,241 $ 1,807
Accounts payable and accrued
liabilities 38,235 32,894
Insurance and claims accruals 20,679 21,386
Current maturities of long-term debt 1,428 1,428
-----------------------
Total current liabilities 61,583 57,515
Long-term debt, less current
maturities -- 1,429
Deferred income taxes 87,039 81,048
-----------------------
Total liabilities 148,622 139,992
-----------------------
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 September 30, 2009, and
21,830,071 shares at
December 31, 2008, issued and
outstanding 219 218
Additional paid-in capital 76,351 75,305
Retained earnings 192,215 180,213
-----------------------
Total Marten Transport, Ltd.
stockholders' equity 268,785 255,736
Noncontrolling interest 1,908 1,715
-----------------------
Total stockholders' equity 270,693 257,451
-----------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 419,315 $ 397,443
=======================
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, Three Months Nine Months
except per share Ended Sept. 30, Ended Sept. 30,
information) ---------------------------------------------
2009 2008 2009 2008
---------------------------------------------
OPERATING REVENUE $ 129,395 $ 163,377 $ 377,154 $ 466,745
---------------------------------------------
OPERATING EXPENSES
(INCOME):
Salaries, wages and
benefits 34,257 39,885 106,118 114,322
Purchased
transportation 29,192 29,125 77,877 88,414
Fuel and fuel taxes 26,580 51,215 72,718 144,929
Supplies and
maintenance 9,630 9,588 29,006 28,298
Depreciation 13,272 12,396 40,091 36,704
Operating taxes and
licenses 1,591 1,588 4,969 5,062
Insurance and claims 5,356 5,770 15,555 17,988
Communications and
utilities 1,011 837 3,078 2,707
Gain on disposition
of revenue
equipment (596) (453) (1,595) (2,439)
Other 2,566 2,898 8,047 8,322
---------------------------------------------
Total operating
expenses 122,859 152,849 355,864 444,307
---------------------------------------------
OPERATING INCOME 6,536 10,528 21,290 22,438
---------------------------------------------
OTHER EXPENSES
(INCOME):
Interest expense 35 196 133 1,032
Interest income (51) (38) (114) (152)
---------------------------------------------
(16) 158 19 880
---------------------------------------------
INCOME BEFORE INCOME
TAXES 6,552 10,370 21,271 21,558
Less: Income before
income taxes
attributable to
noncontrolling
interest 93 317 354 922
---------------------------------------------
INCOME BEFORE INCOME
TAXES ATTRIBUTABLE
TO MARTEN
TRANSPORT, LTD 6,459 10,053 20,917 20,636
PROVISION FOR
INCOME TAXES 2,987 3,926 8,915 8,387
---------------------------------------------
NET INCOME $ 3,472 $ 6,127 $ 12,002 $ 12,249
=============================================
BASIC EARNINGS PER
COMMON SHARE $ 0.16 $ 0.28 $ 0.55 $ 0.56
=============================================
DILUTED EARNINGS
PER COMMON SHARE $ 0.16 $ 0.28 $ 0.55 $ 0.56
=============================================
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar Percentage
Change Change
Three Three
Three Months Months Months
Ended Ended Ended
September 30, Sept. 30, Sept. 30,
------------------- 2009 vs. 2009 vs.
(Dollars in thousands) 2009 2008 2008 2008
-------------------------------------------
Operating revenue:
Truckload revenue,
net of fuel surcharge
revenue $ 86,324 $ 98,600 $(12,276) (12.5)%
Truckload fuel surcharge
revenue 13,942 38,442 (24,500) (63.7)
-------------------------------------------
Total Truckload
revenue 100,266 137,042 (36,776) (26.8)
-------------------------------------------
Logistics revenue,
net of intermodal
fuel surcharge
revenue 27,362 23,472 3,890 16.6
Intermodal fuel
surcharge revenue 1,767 2,863 (1,096) (38.3)
-------------------------------------------
Total Logistics
revenue 29,129 26,335 2,794 10.6
-------------------------------------------
Total operating
revenue $129,395 $163,377 $(33,982) (20.8)%
===========================================
Operating income:
Truckload $ 5,047 $ 8,619 $ (3,572) (41.4)%
Logistics 1,489 1,909 (420) (22.0)
-------------------------------------------
Total operating
income $ 6,536 $ 10,528 $ (3,992) (37.9)%
===========================================
Operating ratio:
Truckload 95.0% 93.7% (1.4)%
Logistics 94.9 92.8 (2.3)
-------------------- -------------
Consolidated
operating ratio 94.9% 93.6% (1.4)%
==================== =============
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar Percentage
Change Change
Nine Months Nine Months Nine Months
Ended Ended Ended
September 30, Sept. 30, Sept. 30,
--------------------- 2009 vs. 2009 vs.
(Dollars in thousands) 2009 2008 2008 2008
-------------------------------------------
Operating revenue:
Truckload revenue,
net of fuel
surcharge revenue $262,828 $289,737 $(26,909) (9.3)%
Truckload fuel
surcharge revenue 35,065 102,508 (67,443) (65.8)
-------------------------------------------
Total Truckload
revenue 297,893 392,245 (94,352) (24.1)
-------------------------------------------
Logistics revenue,
net of intermodal
fuel surcharge
revenue 75,237 67,583 7,654 11.3
Intermodal fuel
surcharge revenue 4,024 6,917 (2,893) (41.8)
-------------------------------------------
Total Logistics
revenue 79,261 74,500 4,761 6.4
-------------------------------------------
Total operating
revenue $377,154 $466,745 $(89,591) (19.2)%
===========================================
Operating income:
Truckload $ 16,577 $ 16,980 $ (403) (2.4)%
Logistics 4,713 5,458 (745) (13.6)
-------------------------------------------
Total operating
income $ 21,290 $ 22,438 $ (1,148) (5.1)%
===========================================
Operating ratio:
Truckload 94.4% 95.7% 1.4 %
Logistics 94.1 92.7 (1.5)
--------------------- ------------
Consolidated
operating
ratio 94.4% 95.2% 0.8 %
===================== ============
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Truckload Segment:
Revenue (in thousands) $100,266 $137,042 $297,893 $392,245
Average truckload revenue,
net of fuel surcharges, per
total mile $ 1.490 $ 1.531 $ 1.505 $ 1.502
Average miles per tractor(1) 24,039 27,736 72,955 81,977
Average truckload revenue,
net of fuel surcharges, per
tractor per week(1) $ 2,725 $ 3,231 $ 2,816 $ 3,146
Average tractors(1) 2,410 2,322 2,393 2,353
Average miles per trip 728 835 781 863
Non-revenue miles
percentage(2) 9.7% 8.0% 9.3% 8.0%
Total miles - company-
employed drivers (in
thousands) 51,818 56,897 156,487 166,794
Total miles - independent
contractors (in thousands) 6,120 7,510 18,108 26,058
Logistics Segment:
Brokerage:
Marten Transport
Revenue (in thousands) $ 9,796 $ 6,751 $ 25,117 $ 18,365
Loads 5,416 3,027 13,568 8,475
MWL
Revenue (in thousands) $ 8,371 $ 9,151 $ 23,363 $ 29,248
Loads 4,775 4,458 13,594 14,601
Intermodal:
Revenue (in thousands) $ 10,962 $ 10,433 $ 30,781 $ 26,887
Loads 4,929 3,237 13,238 8,163
Average tractors 65 61 61 51
At September 30, 2009, and
September 30, 2008:
Total tractors(1) 2,459 2,377
Average age of company
tractors (in years) 2.3 2.2
Total trailers 4,055 4,249
Average age of company
trailers (in years) 3.3 2.9
Ratio of trailers to
tractors(1) 1.6 1.8
Ratio of tractors to non-
driver personnel(1) 4.3 4.7
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
------------------ ------------------
(in thousands) 2009 2008 2009 2008
-------- -------- -------- --------
Net cash provided by
operating activities $ 20,679 $ 28,516 $ 63,207 $ 50,234
Net cash used for investing
activities 20,810 17,678 56,109 14,908
Weighted average shares
outstanding:
Basic 21,885 21,798 21,865 21,773
Diluted 21,988 21,952 21,982 21,926
------------------------------
(1) Includes tractors driven by both company-employed drivers and
independent contractors. Independent contractors provided 205 and
209 tractors as of September 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
