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Marten Transport Ltd.$28.41$.331.18%

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 Marten Transport Announces Second Quarter Results and Declares Three-for-Two Stock Split and Regular Quarterly Dividend With a 50% Increase in Cash Payout
   Thursday, July 16, 2020 4:02:00 PM ET

MONDOVI, Wis., July 16, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 19.4% improvement in net income to $18.1 million, or 33 cents per diluted share, for the second quarter ended June 30, 2020, from $15.2 million, or 28 cents per diluted share, for the second quarter of 2019. For the first six months of 2020, net income improved 10.8% to $31.9 million, or 58 cents per diluted share, from $28.7 million, or 52 cents per diluted share, for the first six months of 2019.

Marten Transport also announced today that its Board of Directors has declared a three-for-two stock split of the company’s common stock and a regular quarterly cash dividend of $0.04 per share of common stock. The stock split, while maintaining the current quarterly cash dividend amount per share, effectively increases the cash payout to stockholders by 50%.

    
 Operating Results Comparison  
    
     Percentage Percentage 
     Increase Increase 
     Three Months Six Months 
     Ended Ended 
     June 30, June 30, 
     2020 vs. 2019 2020 vs. 2019 
            
 Operating revenue    0.1% 4.8% 
            
 Operating revenue, net of fuel surcharges    4.7% 7.4% 
            
 Operating income    26.6
% 14.9
% 
            
 Net income    19.4% 10.8
% 
   

Operating revenue improved to $212.4 million for the second quarter of 2020 from $212.1 million for the second quarter of 2019, and improved 4.8% to $431.0 million for the first six months of 2020 from $411.1 million for the first six months of 2019. Excluding fuel surcharges, operating revenue improved 4.7% to $194.0 million for the 2020 quarter from $185.4 million for the 2019 quarter, and improved 7.4% to $387.4 million for the first six months of 2020 from $360.8 million for the first six months of 2019. Fuel surcharge revenue decreased to $18.3 million for the 2020 quarter from $26.7 million for the 2019 quarter and decreased to $43.6 million for the first six months of 2020 from $50.3 million for the first six months of 2019 due to significantly lower fuel prices.

Operating income improved 26.6% to a record $25.3 million for the second quarter of 2020 from $19.9 million for the second quarter of 2019. This quarter’s operating income was the highest for any quarter in Marten’s history, and was also a record excluding a $3.0 million, or 4 cents per diluted share, benefit from reduced net fuel expense as a percentage of revenue from the second quarter of 2019 to 2020. Operating income improved 14.9% to $43.3 million for the first six months of 2020 from $37.7 million for the first six months of 2019.

Operating expenses as a percentage of operating revenue improved to 88.1% for the second quarter of 2020 from 90.6% for the second quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 89.2%.

Operating expenses as a percentage of operating revenue improved to 90.0% for the first six months of 2020 from 90.8% for the first six months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.8% from 89.6%.

Chairman and Chief Executive Officer Randolph L. Marten said, “To each of our over 4,100 talented, hard-working drivers, maintenance personnel and employees across all functions and regions, you should be extremely proud of the strong results that you consistently drive, and of the record operating income in the second quarter that you earned. I sure am. Within an environment of significantly fluctuating customer freight volumes, we improved our Truckload miles per tractor by 4.8% over the second quarter of 2019 through our adaptive, continual redeployment of our drivers to match the changing freight demand by lane while minimizing empty miles. We plan on pursuing profitable growth opportunities in the second half of this year. 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.”

“I am also pleased to announce this stock split which reflects our continued strong financial condition. The increased number of outstanding shares should increase trading activity, or float, in our common stock while our stockholders benefit from the 50% increase in our quarterly dividend cash payout.”

The three-for-two stock split of the company’s common stock will be effected in the form of a stock dividend payable on August 13, 2020 to stockholders of record as of July 30, 2020. Holders of the company’s common stock will receive an additional one-half share for each outstanding share of common stock held as of the record date. The stock split will increase the number of outstanding shares of common stock from approximately 55.1 million to approximately 82.7 million shares.

The regular quarterly cash dividend of $0.04 per share of common stock will be payable on September 30, 2020 to stockholders of record at the close of business on September 16, 2020. This is Marten’s 41st consecutive quarterly cash dividend. With the payment of this dividend, Marten will have paid a total of $93.6 million in cash dividends, including special dividends totaling $52.1 million in 2019 and 2012, since the dividend program was implemented in 2010. 

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 current expectations concerning future payment of dividends. 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 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

  June 30,  December 31, 
(In thousands, except share information) 2020  2019 
    (Unaudited)     
ASSETS        
Current assets:        
Cash and cash equivalents $75,323  $31,461 
Receivables:        
     Trade, net  83,854   90,712 
     Other  12,639   11,055 
Prepaid expenses and other  22,906   20,938 
     Total current assets  194,722   154,166 
         
Property and equipment:        
Revenue equipment, buildings and land, office equipment and other  920,608   904,237 
Accumulated depreciation  (276,412)  (263,843)
     Net property and equipment  644,196   640,394 
Other noncurrent assets  1,916   2,026 
          Total assets $840,834  $796,586 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $26,176  $22,917 
Insurance and claims accruals  35,834   31,729 
Accrued and other current liabilities  25,569
   21,680 
     Total current liabilities  87,579
   76,326 
Deferred income taxes  123,285   122,022 
Noncurrent operating lease liabilities  572   649 
     Total liabilities  211,436
   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; 55,107,805 shares at June 30, 2020, and 54,703,466 shares at December 31, 2019, issued and outstanding  551   547 
Additional paid-in capital  83,816   79,465 
Retained earnings  545,031   517,577 
     Total stockholders’ equity  629,398   597,589 
          Total liabilities and stockholders’ equity $840,834  $796,586 
         
         

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
(In thousands, except per share information)   2020  2019  2020  2019 
                 
Operating revenue $212,384  $212,090  $431,030  $411,113 
                 
Operating expenses (income):                
Salaries, wages and benefits  73,476   68,613   146,237   132,137 
Purchased transportation  36,165   38,668   76,610   76,917 
Fuel and fuel taxes  20,868   30,952   49,165   58,629 
Supplies and maintenance  11,833   11,502   24,061   22,623 
Depreciation  25,972   23,462   51,399   46,005 
Operating taxes and licenses  2,615   2,438   5,254   4,771 
Insurance and claims  11,633   9,862   23,917   19,737 
Communications and utilities  1,977   1,950   3,962   3,900 
Gain on disposition of revenue equipment  (2,216)  (1,230)  (3,771)  (2,778)
Other  4,805   5,929   10,908   11,495 
                 
Total operating expenses  187,128   192,146   387,742
   373,436 
                 
Operating income  25,256
   19,944   43,288
   37,677 
                 
Other  (13)  (395)  (110)  (673)
                 
Income before income taxes  25,269
   20,339   43,398
   38,350 
                 
Income taxes expense  7,135
   5,149   11,546
   9,614 
                 
Net income $18,134  $15,190  $31,852
  $28,736 
                 
Basic earnings per common share $0.33  $0.28  $0.58
  $0.53 
                 
Diluted earnings per common share $0.33  $0.28  $0.58
  $0.52 
                 
Dividends declared per common share $0.04  $0.03  $0.08  $0.06 
                 
                 

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

          Dollar  Percentage 
          Change  Change 
  Three Months  Three Months  Three Months 
  Ended  Ended  Ended 
  June 30,  June 30,  June 30, 
(Dollars in thousands) 2020  2019  2020 vs. 2019  2020 vs. 2019 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $85,966  $83,215  $2,751   3.3%
Truckload fuel surcharge revenue  8,234   12,807   (4,573)  (35.7)
Total Truckload revenue  94,200   96,022   (1,822)  (1.9)
                 
Dedicated revenue, net of fuel surcharge revenue  67,076   56,160   10,916   19.4 
Dedicated fuel surcharge revenue  8,351   10,850   (2,499)  (23.0)
Total Dedicated revenue  75,427   67,010   8,417   12.6 
                 
Intermodal revenue, net of fuel surcharge revenue  18,542   17,527   1,015   5.8 
Intermodal fuel surcharge revenue  1,759   3,076   (1,317)  (42.8)
Total Intermodal revenue  20,301   20,603   (302)  (1.5)
                 
Brokerage revenue  22,456   28,455   (5,999)  (21.1)
                 
Total operating revenue $212,384  $212,090  $294   0.1%
                 
Operating income:                
Truckload $11,036
  $8,045  $2,991
   37.2%
Dedicated  11,452
   7,700   3,752
   48.7
 
Intermodal  954   1,536   (582)  (37.9)
Brokerage  1,814   2,663   (849)  (31.9)
Total operating income $25,256
  $19,944  $5,312
   26.6
%
                 
Operating ratio:                
Truckload  88.3%  91.6%        
Dedicated  84.8   88.5         
Intermodal  95.3   92.5         
Brokerage  91.9   90.6         
Consolidated operating ratio  88.1%  90.6%        
 
 

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, 
(Dollars in thousands) 2020  2019  2020 vs. 2019  2020 vs. 2019 
Operating revenue:                
Truckload revenue, net of fuel surcharge revenue $169,823  $163,382  $6,441   3.9%
Truckload fuel surcharge revenue  19,509   24,362   (4,853)  (19.9)
Total Truckload revenue  189,332   187,744   1,588   0.8 
                 
Dedicated revenue, net of fuel surcharge revenue  131,235   105,084   26,151   24.9 
Dedicated fuel surcharge revenue  19,229   19,651   (422)  (2.1)
Total Dedicated revenue  150,464   124,735   25,729   20.6 
                 
Intermodal revenue, net of fuel surcharge revenue  39,136   37,282   1,854   5.0 
Intermodal fuel surcharge revenue  4,845   6,292   (1,447)  (23.0)
Total Intermodal revenue  43,981   43,574   407   0.9 
                 
Brokerage revenue  47,253   55,060   (7,807)  (14.2)
                 
     Total operating revenue $431,030  $411,113  $19,917   4.8%
                 
Operating income:                
Truckload $17,821  $15,600  $2,221
   14.2
%
Dedicated  19,985   13,215   6,770
   51.2
 
Intermodal  2,260   3,930   (1,670)  (42.5)
Brokerage  3,222   4,932   (1,710)  (34.7)
Total operating income $43,288
  $37,677  $5,611   14.9
%
                 
Operating ratio:                
Truckload  90.6%  91.7%        
Dedicated  86.7   89.4         
Intermodal  94.9   91.0         
Brokerage  93.2   91.0         
Consolidated operating ratio  90.0%  90.8%        
 
 

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
  2020  2019  2020  2019 
Truckload Segment:                
Revenue (in thousands) $94,200  $96,022  $189,332  $187,744 
Average revenue, net of fuel surcharges, per tractor per week(1) $3,829  $3,876  $3,821  $3,867 
Average tractors(1)  1,727   1,652   1,710   1,634 
Average miles per trip  557   532   558   546 
Non-revenue miles percentage(2)  10.9%  11.1%  11.0%  11.2%
Total miles (in thousands)  42,833   39,077   83,872   76,313 
                 
Dedicated Segment:                
Revenue (in thousands) $75,427  $67,010  $150,464  $124,735 
Average revenue, net of fuel surcharges, per tractor per week(1) $3,314  $3,460  $3,309  $3,424 
Average tractors(1)  1,557   1,248   1,525   1,187 
Average miles per trip  307   314   306   318 
Non-revenue miles percentage(2)  0.8%  0.7%  0.8%  0.7%
Total miles (in thousands)  33,174   27,198   64,710   50,841 
                 
Intermodal Segment:                
Revenue (in thousands) $20,301  $20,603  $43,981  $43,574 
Loads  8,693   8,430   18,430   17,681 
Average tractors  98   81   99   84 
                 
Brokerage Segment:                
Revenue (in thousands) $22,456  $28,455  $47,253  $55,060 
Loads  15,280   16,185   31,388   31,451 
                 
At June 30, 2020 and June 30, 2019:                
Total tractors(1)  3,313   3,047         
Average age of company tractors (in years)  1.8   1.9         
Total trailers  5,364   5,437         
Average age of company trailers (in years)  2.7   2.6         
Ratio of trailers to tractors(1)  1.6   1.8         

   

  Three Months  Six Months 
  Ended June 30,  Ended June 30, 
(In thousands) 2020  2019  2020  2019 
                 
Net cash provided by operating activities $60,587  $37,473  $104,067  $75,101 
Net cash (used for) investing activities  (22,558)  (39,034)  (59,190)  (45,770)
Net cash provided by (used for) financing activities  1,158   (1,173)  (1,015)  (3,302)
                 
Weighted average shares outstanding:                
Basic  55,018   54,616   54,914   54,585 
Diluted  55,422   55,081   55,345   55,055 

     

(1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 124 and 55 tractors as of June 30, 2020 and 2019, respectively. 
  
(2)Represents the percentage of miles for which the company is not compensated.



Marten Transport, Ltd. Logo

Source: Marten Transport, Ltd.


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