MONDOVI, Wis., Jan. 26, 2010 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) announced today its financial and operating results for the quarter and year ended December 31, 2009.
For the fourth quarter of 2009, net income was $4.3 million, or 19 cents per diluted share, compared with $3.5 million, or 16 cents per diluted share, for the third quarter of 2009 and $5.8 million, or 27 cents per diluted share, for the fourth quarter of 2008. For 2009, net income was $16.3 million, or 74 cents per diluted share, compared with $18.1 million, or 82 cents per diluted share, for 2008.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased 8.3% to $128.7 million in the fourth quarter of 2009 from $140.4 million in the 2008 quarter and decreased 16.7% to $505.9 million in 2009 from $607.1 million in 2008. Operating revenue, net of fuel surcharge revenue, decreased 4.3% to $112.1 million in the 2009 quarter from $117.1 million in the 2008 quarter and decreased 5.1% to $450.1 million in 2009 from $474.5 million in 2008, primarily due to a decrease in average miles per tractor. Operating revenue was adversely impacted by the exceptionally challenging operating environment with reduced freight demand, excess capacity and an unprecedented increase in renegotiated shipper bid packages during 2009 resulting in an unfavorable rate environment. The decreases in operating revenue were also due to fuel surcharge revenue decreasing to $16.6 million in the quarter from $23.2 million in the 2008 quarter and to $55.7 million in 2009 from $132.6 million in 2008, caused by significantly lower fuel prices in the 2009 periods.
Operating expenses decreased 7.3% to $120.7 million in the fourth quarter of 2009 from $130.1 million in the 2008 quarter and decreased 17.0% to $476.5 million in 2009 from $574.4 million in 2008. The operating expense decreases were primarily due to decreases in fuel and fuel taxes in 2009, and, to a lesser extent, the 2009 quarter. Fuel and fuel taxes decreased 12.2% to $27.2 million in the fourth quarter of 2009 from $31.0 million in the 2008 quarter and decreased 43.2% to $99.9 million in 2009 from $175.9 million in 2008. This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to a continued emphasis on controlling tractor and trailer fuel costs.
Marten's operating ratio (operating expenses as a percentage of operating revenue) was 93.7% for the fourth quarter of 2009 compared with 92.7% for the same quarter of 2008 and improved to 94.2% for 2009 from 94.6% for 2008.
Chairman and Chief Executive Officer Randolph L. Marten said, "We are encouraged by our increased profitability from this year's third quarter, despite a 5.3% increase in the average cost of fuel. We were able to achieve this by improving our average truckload revenue per tractor per week and by our continued progress in managing our operating costs. We believe that many of the benefits of our strategic initiatives, which include a transformation to a more regional network from our traditional long-haul business and further expansion into the temperature-controlled intermodal market, will be more pronounced as demand increases. We believe that this transformation of our services along with our competitive position, cost control emphasis, modern fleet and strong balance sheet position us well for growth.
"Our logistics business continued to expand at a rapid pace. Logistics revenue, net of intermodal fuel surcharges, grew to $27.9 million in the fourth quarter, an increase of 23.5% from $22.6 million for the 2008 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 14.4% to $103.2 million, compared with $90.2 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.
"Lastly, I want to recognize the efforts of our employees, who remain one of Marten's key strategic strengths and who solidly executed our business model within this difficult economy."
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 the Company is 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 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, 2008. The Company undertakes 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 | |||||||
| December 31, | December 31, | ||||||
| 2009 | 2008 | ||||||
| (In thousands, except share information) | (Unaudited) | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $5,410 | $2,395 | |||||
| Marketable securities | 118 | 2,604 | |||||
| Receivables: | |||||||
| Trade, net | 45,434 | 50,143 | |||||
| Other | 4,382 | 7,385 | |||||
| Prepaid expenses and other | 12,328 | 13,705 | |||||
| Deferred income taxes | 5,172 | 6,140 | |||||
| Total current assets | 72,844 | 82,372 | |||||
| Property and equipment: | |||||||
| Revenue equipment, buildings and land, | |||||||
| office equipment and other | 491,127 | 451,172 | |||||
| Accumulated depreciation | (149,670) | (136,871) | |||||
| Net property and equipment | 341,457 | 314,301 | |||||
| Other assets | 537 | 770 | |||||
| TOTAL ASSETS | $414,838 | $397,443 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Checks issued in excess of cash balances | $1,671 | $1,807 | |||||
| Accounts payable and accrued liabilities | 31,896 | 32,894 | |||||
| Insurance and claims accruals | 19,222 | 21,386 | |||||
| Current maturities of long-term debt | 1,428 | 1,428 | |||||
| Total current liabilities | 54,217 | 57,515 | |||||
| Long-term debt, less current maturities | 71 | 1,429 | |||||
| Deferred income taxes | 85,643 | 81,048 | |||||
| Total liabilities | 139,931 | 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 December 31, 2009, and 21,830,071 shares at | |||||||
| December 31, 2008, issued and outstanding | 219 | 218 | |||||
| Additional paid-in capital | 76,477 | 75,305 | |||||
| Retained earnings | 196,480 | 180,213 | |||||
| Total Marten Transport, Ltd. stockholders' equity | 273,176 | 255,736 | |||||
| Noncontrolling interest | 1,731 | 1,715 | |||||
| Total stockholders' equity | 274,907 | 257,451 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $414,838 | $397,443 | |||||
|
MARTEN TRANSPORT, LTD. |
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| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||
| Three Months | Year | ||||
| Ended December 31, | Ended December 31, | ||||
| (In thousands, except per share information) | 2009 | 2008 | 2009 | 2008 | |
| (Unaudited) | (Unaudited) | (Unaudited) | |||
| OPERATING REVENUE | $128,720 | $140,354 | $505,874 | $607,099 | |
| OPERATING EXPENSES (INCOME): | |||||
| Salaries, wages and benefits | 32,634 | 38,294 | 138,752 | 152,616 | |
| Purchased transportation | 28,700 | 24,761 | 106,577 | 113,175 | |
| Fuel and fuel taxes | 27,180 | 30,963 | 99,898 | 175,892 | |
| Supplies and maintenance | 9,217 | 10,080 | 38,223 | 38,378 | |
| Depreciation | 12,978 | 13,001 | 53,069 | 49,705 | |
| Operating taxes and licenses | 1,703 | 1,667 | 6,672 | 6,729 | |
| Insurance and claims | 4,341 | 7,421 | 19,896 | 25,409 | |
| Communications and utilities | 1,092 | 1,033 | 4,170 | 3,740 | |
| Gain on disposition of revenue equipment | (35) | (225) | (1,630) | (2,664) | |
| Other | 2,841 | 3,092 | 10,888 | 11,414 | |
| Total operating expenses | 120,651 | 130,087 | 476,515 | 574,394 | |
| OPERATING INCOME | 8,069 | 10,267 | 29,359 | 32,705 | |
| OTHER EXPENSES (INCOME): | |||||
| Interest expense | 36 | 110 | 169 | 1,142 | |
| Interest income | (23) | (32) | (137) | (184) | |
| 13 | 78 | 32 | 958 | ||
| INCOME BEFORE INCOME TAXES | 8,056 | 10,189 | 29,327 | 31,747 | |
| Less: Income before income taxes | |||||
| attributable to noncontrolling interest | 230 | 198 | 584 | 1,120 | |
| INCOME BEFORE INCOME TAXES | |||||
| ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. | 7,826 | 9,991 | 28,743 | 30,627 | |
| PROVISION FOR INCOME TAXES | 3,561 | 4,169 | 12,476 | 12,556 | |
| NET INCOME | $4,265 | $5,822 | $16,267 | $18,071 | |
| BASIC EARNINGS PER COMMON SHARE | $0.19 | $0.27 | $0.74 | $0.83 | |
| DILUTED EARNINGS PER COMMON SHARE | $0.19 | $0.27 | $0.74 | $0.82 | |
|
MARTEN TRANSPORT, LTD. SEGMENT INFORMATION (Unaudited) |
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|
Three Months Ended December 31, |
Dollar Change Three Months Ended December 31, |
Percentage Change Three Months Ended December 31, |
|||||
| (Dollars in thousands) | 2009 | 2008 | 2009 vs. 2008 | 2009 vs. 2008 | |||
| Operating revenue: | |||||||
|
Truckload revenue, net of fuel surcharge revenue |
$84,155 |
$94,527 |
$(10,372) |
(11.0)% |
|||
| Truckload fuel surcharge revenue | 14,747 | 21,414 | (6,667) | (31.1) | |||
| Total Truckload revenue | 98,902 | 115,941 | (17,039) | (14.7) | |||
|
Logistics revenue, net of intermodal fuel surcharge revenue |
27,929 |
22,611 |
5,318 |
23.5 |
|||
| Intermodal fuel surcharge revenue | 1,889 | 1,802 | 87 | 4.8 | |||
| Total Logistics revenue | 29,818 | 24,413 | 5,405 | 22.1 | |||
| Total operating revenue | $128,720 | $ 140,354 | $(11,634) | (8.3)% | |||
| Operating income: | |||||||
| Truckload | $6,250 | $9,075 | $(2,825) | (31.1)% | |||
| Logistics | 1,819 | 1,192 | 627 | 52.6 | |||
| Total operating income | $8,069 | $10,267 | $(2,198) | (21.4)% | |||
| Operating ratio: | |||||||
| Truckload | 93.7% | 92.2% | 1.6 % | ||||
| Logistics | 93.9 | 95.1 | (1.3) | ||||
| Consolidated operating ratio | 93.7% | 92.7% | 1.1 % | ||||
|
MARTEN TRANSPORT, LTD. SEGMENT INFORMATION (Unaudited) |
|||||||
|
Year Ended December 31, |
Dollar Change Year Ended December 31, |
Percentage Change Year Ended December 31, |
|||||
| (Dollars in thousands) | 2009 | 2008 | 2009 vs. 2008 | 2009 vs. 2008 | |||
| Operating revenue: | |||||||
|
Truckload revenue, net of fuel surcharge revenue |
$346,983 |
$384,264 |
$(37,281) |
(9.7)% |
|||
| Truckload fuel surcharge revenue | 49,812 | 123,922 | (74,110) | (59.8) | |||
| Total Truckload revenue | 396,795 | 508,186 | (111,391) | (21.9) | |||
|
Logistics revenue, net of intermodal fuel surcharge revenue |
103,166 |
90,194 |
12,972 |
14.4 |
|||
| Intermodal fuel surcharge revenue | 5,913 | 8,719 | (2,806) | (32.2) | |||
| Total Logistics revenue | 109,079 | 98,913 | 10,166 | 10.3 | |||
| Total operating revenue | $505,874 | $607,099 | $(101,225) | (16.7)% | |||
| Operating income: | |||||||
| Truckload | $22,827 | $26,055 | $(3,228) | (12.4)% | |||
| Logistics | 6,532 | 6,650 | (118) | (1.8) | |||
| Total operating income | $29,359 | $32,705 | $(3,346) | (10.2)% | |||
| Operating ratio: | |||||||
| Truckload | 94.2% | 94.9% | (0.7)% | ||||
| Logistics | 94.0 | 93.3 | 0.8 | ||||
| Consolidated operating ratio | 94.2% | 94.6% | (0.4)% | ||||
|
MARTEN TRANSPORT, LTD.
|
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|
Three Months Ended December 31, |
Year Ended December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Truckload Segment: | ||||||||||||||||
| Revenue (in thousands) | $98,902 | $ 115,941 | $ 396,795 | $ 508,186 | ||||||||||||
|
Average truckload revenue, net of fuel surcharges, per tractor per week(1) |
$2,841 |
$3,058 |
$2,822 |
$3,124 |
||||||||||||
| Average tractors (1) | 2,254 | 2,352 | 2,358 | 2,352 | ||||||||||||
| Average miles per trip | 706 | 824 | 761 | 853 | ||||||||||||
| Non-revenue miles percentage(2) | 9.2% | 8.6% | 9.2% | 8.1% | ||||||||||||
| Total miles – company-employed drivers (in thousands) | 50,407 | 55,249 | 206,894 | 222,043 | ||||||||||||
| Total miles – independent contractors (in thousands) | 5,307 | 6,023 | 23,415 | 32,081 | ||||||||||||
| Logistics Segment: | ||||||||||||||||
| Brokerage: | ||||||||||||||||
| Marten Transport | ||||||||||||||||
| Revenue (in thousands) | $9,897 | $6,381 | $35,014 | $24,746 | ||||||||||||
| Loads | 5,364 | 3,146 | 18,932 | 11,621 | ||||||||||||
| MWL | ||||||||||||||||
| Revenue (in thousands) | $8,797 | $8,321 | $32,160 | $37,569 | ||||||||||||
| Loads | 4,274 | 4,188 | 17,868 | 18,789 | ||||||||||||
| Intermodal: | ||||||||||||||||
| Revenue (in thousands) | $11,124 | $9,711 | $41,905 | $36,598 | ||||||||||||
| Loads | 4,852 | 3,350 | 18,090 | 11,513 | ||||||||||||
| Average tractors | 66 | 62 | 62 | 53 | ||||||||||||
| At December 31, 2009, and December 31, 2008: | ||||||||||||||||
| Total tractors(1) | 2,264 | 2,376 | ||||||||||||||
| Average age of company tractors (in years) | 2.4 | 2.2 | ||||||||||||||
| Total trailers | 3,958 | 4,218 | ||||||||||||||
| Average age of company trailers (in years) | 3.4 | 3.1 | ||||||||||||||
| Ratio of trailers to tractors(1) | 1.7 | 1.8 | ||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||
| (In thousands) | 2009 | 2008 | 2009 | 2008 | ||||
| Net cash provided by operating activities | $18,479 | $26,810 | $81,686 | $77,044 | ||||
| Net cash used for investing activities | 21,055 | 22,694 | 77,164 | 37,602 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 21,885 | 21,830 | 21,870 | 21,787 | ||||
| Diluted | 21,987 | 21,954 | 21,984 | 21,931 | ||||
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 177 and 188 tractors as of December 31, 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
