Marten Transport Announces First Quarter Results
April 16 2019 - 4:01PM
Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 31.1%
improvement in net income to $13.5 million, or 25 cents per diluted
share, for the first quarter ended March 31, 2019, from $10.3
million, or 19 cents per diluted share, for the first quarter of
2018.
Operating revenue improved 6.5% to $199.0
million for the first quarter of 2019 from $187.0 million for the
first quarter of 2018, and improved 12.3% to $799.7 million for the
trailing twelve months ended March 31, 2019 from $711.9 million for
the similar period ended March 31, 2018. Excluding fuel surcharges,
operating revenue improved 7.1% to $175.5 million for the 2019
quarter from $163.8 million for the 2018 quarter. Fuel surcharge
revenue increased slightly to $23.6 million from $23.1 million over
the same periods.
Operating income improved 30.4% to $17.7 million
for the first quarter of 2019 from $13.6 million for the first
quarter of 2018, and improved 31.8% to $74.5 million for the
trailing twelve months ended March 31, 2019 from $56.5 million for
the similar period ended March 31, 2018.
Operating expenses as a percentage of operating
revenue improved to 91.1% for the first quarter of 2019 from 92.7%
for the first quarter of 2018. Operating expenses as a percentage
of operating revenue, with both amounts net of fuel surcharges,
improved to 89.9% from 91.7% over the same periods.
Operating expenses as a percentage of operating
revenue improved to 90.7% for the trailing twelve months ended
March 31, 2019 from 92.1% for the similar period ended March 31,
2018. Operating expenses as a percentage of operating revenue, with
both amounts net of fuel surcharges, improved to 89.3% from 91.1%
over the same periods.
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Operating Results Comparison |
|
|
|
|
|
|
|
Net income and diluted earnings per common share presented
below for the TTM ended Mar. 31, 2018 exclude a $56.5 million
deferred income tax benefit in the fourth quarter of 2017. Net
income including the benefit for the TTM ended Mar. 31, 2018 was
$92.4 million, or $1.68 per diluted share. |
|
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|
|
|
|
|
|
|
Percentage |
|
|
Percentage |
|
|
|
|
Change |
|
|
Change |
|
|
|
|
Three Months |
|
Trailing |
Trailing Twelve |
|
|
|
Three Months |
Ended |
|
Twelve Months |
Months Ended |
|
|
|
Ended Mar. 31, |
Mar. 31, |
|
Ended Mar. 31, |
Mar. 31, |
|
|
(Dollars in
thousands, except share information) |
2019 |
2018 |
2019 vs. 2018 |
|
2019 |
2018 |
2019 vs. 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue |
$ |
199,023 |
$ |
186,960 |
|
6.5 |
% |
|
$ |
799,657 |
$ |
711,921 |
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
17,733 |
$ |
13,594 |
|
30.4 |
% |
|
$ |
74,487 |
$ |
56,518 |
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
13,546 |
$ |
10,331 |
|
31.1 |
% |
|
$ |
58,242 |
$ |
35,936 |
|
62.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share |
$ |
0.25 |
$ |
0.19 |
|
31.2 |
% |
|
$ |
1.06 |
$ |
0.65 |
|
61.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
ratio, excluding fuel surcharges |
|
89.9 |
% |
91.7 |
% |
|
|
|
|
89.3 |
% |
91.1 |
% |
|
|
|
|
|
|
|
Chairman and Chief Executive Officer Randolph L.
Marten said, “We are pleased to report our continued strong top-
and bottom-line results for this quarter, which produced our
best-ever first-quarter operating revenue, operating income and net
income. Our 30.4% year-over-year improvement in operating income
for the first quarter consistently furthers our 31.8% operating
income increase in the last twelve months. We expect to see strong
demand throughout 2019 for our premium services with our
diversified base of over 650 customers. We added 65 Truckload and
51 Dedicated tractors during the first quarter, and we expect to
build on this success in recruiting and retaining the industry’s
top, experienced drivers to increase our capacity to service our
existing and new customers. In addition, we enhanced our balance
sheet position with $85.5 million in cash at March 31, 2019, up
from $56.8 million at the beginning of the year.”
“A number of our customer agreements included a
shift beginning mid-first quarter last year from line haul to fuel
surcharge revenue, which reduced our Dedicated and Truckload
revenue excluding fuel surcharges by $2.9 million and $782,000,
respectively, for this year’s first quarter, and by $1.4 million
and $282,000, respectively, for the first quarter of 2018. Our fuel
surcharge revenue increased in both periods by the same
amounts.”
Marten Transport, with headquarters in Mondovi,
Wis., is a multifaceted business offering a network of 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 and other
consumer packaged goods that require a temperature-controlled or
insulated environment. Marten’s dry freight services are expanding,
with 1,596 dry vans operating as of March 31, 2019. 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 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, 2018. 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
|
|
March 31, |
|
|
December 31, |
|
(In
thousands, except share information) |
|
2019 |
|
|
2018 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
85,526 |
|
|
$ |
56,763 |
|
Receivables: |
|
|
|
|
|
|
|
|
Trade, net |
|
|
84,443 |
|
|
|
83,033 |
|
Other |
|
|
5,273 |
|
|
|
3,808 |
|
Prepaid
expenses and other |
|
|
18,025 |
|
|
|
19,924 |
|
Total current assets |
|
|
193,267 |
|
|
|
163,528 |
|
|
|
|
|
|
|
|
|
|
Property
and equipment: |
|
|
|
|
|
|
|
|
Revenue
equipment, buildings and land, office equipment and other |
|
|
819,809 |
|
|
|
816,430 |
|
Accumulated depreciation |
|
|
(241,658 |
) |
|
|
(228,200 |
) |
Net property and equipment |
|
|
578,151 |
|
|
|
588,230 |
|
Other
noncurrent assets |
|
|
3,109 |
|
|
|
2,146 |
|
Total assets |
|
$ |
774,527 |
|
|
$ |
753,904 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
18,512 |
|
|
$ |
15,704 |
|
Insurance
and claims accruals |
|
|
29,381 |
|
|
|
28,103 |
|
Accrued
and other current liabilities |
|
|
31,649 |
|
|
|
28,166 |
|
Total current liabilities |
|
|
79,542 |
|
|
|
71,973 |
|
Deferred
income taxes |
|
|
106,796 |
|
|
|
105,977 |
|
Noncurrent operating lease liabilities |
|
|
452 |
|
|
|
- |
|
Total liabilities |
|
|
186,790 |
|
|
|
177,950 |
|
|
|
|
|
|
|
|
|
|
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; 54,572,289 shares at March 31, 2019, and
54,466,691 shares at December 31, 2018, issued and
outstanding |
|
|
546 |
|
|
|
545 |
|
Additional paid-in capital |
|
|
76,687 |
|
|
|
76,814 |
|
Retained
earnings |
|
|
510,504 |
|
|
|
498,595 |
|
Total stockholders’ equity |
|
|
587,737 |
|
|
|
575,954 |
|
Total liabilities and
stockholders’ equity |
|
$ |
774,527 |
|
|
$ |
753,904 |
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT,
LTD.CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months |
|
|
|
Ended March 31, |
|
(In
thousands, except per share information) |
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Operating revenue |
|
$ |
199,023 |
|
|
$ |
186,960 |
|
|
|
|
|
|
|
|
|
|
Operating expenses (income): |
|
|
|
|
|
|
|
|
Salaries,
wages and benefits |
|
|
63,524 |
|
|
|
58,822 |
|
Purchased
transportation |
|
|
38,249 |
|
|
|
35,026 |
|
Fuel and
fuel taxes |
|
|
27,677 |
|
|
|
29,044 |
|
Supplies
and maintenance |
|
|
11,121 |
|
|
|
10,436 |
|
Depreciation |
|
|
22,543 |
|
|
|
21,815 |
|
Operating
taxes and licenses |
|
|
2,333 |
|
|
|
2,287 |
|
Insurance
and claims |
|
|
9,875 |
|
|
|
10,290 |
|
Communications and utilities |
|
|
1,950 |
|
|
|
1,683 |
|
Gain on
disposition of revenue equipment |
|
|
(1,548 |
) |
|
|
(1,211 |
) |
Other |
|
|
5,566 |
|
|
|
5,174 |
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
|
181,290 |
|
|
|
173,366 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
17,733 |
|
|
|
13,594 |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
(278 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
18,011 |
|
|
|
13,783 |
|
|
|
|
|
|
|
|
|
|
Income
taxes expense |
|
|
4,465 |
|
|
|
3,452 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
13,546 |
|
|
$ |
10,331 |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.25 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share |
|
$ |
0.25 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.03 |
|
|
$ |
0.025 |
|
|
|
|
|
|
|
|
|
|
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) |
|
2019 |
|
|
2018 |
|
|
2019 vs. 2018 |
|
|
2019 vs. 2018 |
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload
revenue, net of fuel surcharge revenue |
|
$ |
80,167 |
|
|
$ |
80,216 |
|
|
$ |
(49 |
) |
|
|
(0.1 |
)% |
Truckload
fuel surcharge revenue |
|
|
11,555 |
|
|
|
12,801 |
|
|
|
(1,246 |
) |
|
|
(9.7 |
) |
Total
Truckload revenue |
|
|
91,722 |
|
|
|
93,017 |
|
|
|
(1,295 |
) |
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated
revenue, net of fuel surcharge revenue |
|
|
48,924 |
|
|
|
42,364 |
|
|
|
6,560 |
|
|
|
15.5 |
|
Dedicated
fuel surcharge revenue |
|
|
8,801 |
|
|
|
6,469 |
|
|
|
2,332 |
|
|
|
36.0 |
|
Total
Dedicated revenue |
|
|
57,725 |
|
|
|
48,833 |
|
|
|
8,892 |
|
|
|
18.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermodal revenue, net of fuel surcharge revenue |
|
|
19,755 |
|
|
|
20,808 |
|
|
|
(1,053 |
) |
|
|
(5.1 |
) |
Intermodal fuel surcharge revenue |
|
|
3,216 |
|
|
|
3,844 |
|
|
|
(628 |
) |
|
|
(16.3 |
) |
Total
Intermodal revenue |
|
|
22,971 |
|
|
|
24,652 |
|
|
|
(1,681 |
) |
|
|
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage
revenue |
|
|
26,605 |
|
|
|
20,458 |
|
|
|
6,147 |
|
|
|
30.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenue |
|
$ |
199,023 |
|
|
$ |
186,960 |
|
|
$ |
12,063 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
$ |
7,555 |
|
|
$ |
6,815 |
|
|
$ |
740 |
|
|
|
10.9 |
% |
Dedicated |
|
|
5,515 |
|
|
|
2,488 |
|
|
|
3,027 |
|
|
|
121.7 |
|
Intermodal |
|
|
2,394 |
|
|
|
2,978 |
|
|
|
(584 |
) |
|
|
(19.6 |
) |
Brokerage |
|
|
2,269 |
|
|
|
1,313 |
|
|
|
956 |
|
|
|
72.8 |
|
Total operating income |
|
$ |
17,733 |
|
|
$ |
13,594 |
|
|
$ |
4,139 |
|
|
|
30.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Truckload |
|
|
91.8 |
% |
|
|
92.7 |
% |
|
|
|
|
|
|
|
|
Dedicated |
|
|
90.4 |
|
|
|
94.9 |
|
|
|
|
|
|
|
|
|
Intermodal |
|
|
89.6 |
|
|
|
87.9 |
|
|
|
|
|
|
|
|
|
Brokerage |
|
|
91.5 |
|
|
|
93.6 |
|
|
|
|
|
|
|
|
|
Consolidated operating ratio |
|
|
91.1 |
% |
|
|
92.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARTEN TRANSPORT,
LTD.OPERATING
STATISTICS(Unaudited)
|
|
Three Months |
|
|
|
Ended March 31, |
|
|
|
2019 |
|
|
2018 |
|
Truckload Segment: |
|
|
|
|
|
|
|
|
Revenue
(in thousands) |
|
$ |
91,722 |
|
|
$ |
93,017 |
|
Average
revenue, net of fuel surcharges, per tractor per week(1) |
|
$ |
3,859 |
|
|
$ |
3,679 |
|
Average
tractors(1) |
|
|
1,616 |
|
|
|
1,696 |
|
Average
miles per trip |
|
|
562 |
|
|
|
603 |
|
Non-revenue miles percentage(2) |
|
|
11.3 |
% |
|
|
6.8 |
% |
Total
miles (in thousands) |
|
|
37,236 |
|
|
|
40,582 |
|
|
|
|
|
|
|
|
|
|
Dedicated Segment: |
|
|
|
|
|
|
|
|
Revenue
(in thousands) |
|
$ |
57,725 |
|
|
$ |
48,833 |
|
Average
revenue, net of fuel surcharges, per tractor per week(1) |
|
$ |
3,382 |
|
|
$ |
3,267 |
|
Average
tractors(1) |
|
|
1,125 |
|
|
|
1,009 |
|
Average
miles per trip |
|
|
322 |
|
|
|
297 |
|
Non-revenue miles percentage(2) |
|
|
0.6 |
% |
|
|
1.1 |
% |
Total
miles (in thousands) |
|
|
23,643 |
|
|
|
21,135 |
|
|
|
|
|
|
|
|
|
|
Intermodal Segment: |
|
|
|
|
|
|
|
|
Revenue
(in thousands) |
|
$ |
22,971 |
|
|
$ |
24,652 |
|
Loads |
|
|
9,251 |
|
|
|
10,737 |
|
Average
tractors |
|
|
87 |
|
|
|
82 |
|
|
|
|
|
|
|
|
|
|
Brokerage Segment: |
|
|
|
|
|
|
|
|
Revenue
(in thousands) |
|
$ |
26,605 |
|
|
$ |
20,458 |
|
Loads |
|
|
15,266 |
|
|
|
11,889 |
|
|
|
|
|
|
|
|
|
|
At March
31, 2019 and March 31, 2018: |
|
|
|
|
|
|
|
|
Total
tractors(1) |
|
|
2,867 |
|
|
|
2,785 |
|
Average
age of company tractors (in years) |
|
|
1.8 |
|
|
|
1.6 |
|
Total
trailers |
|
|
5,313 |
|
|
|
5,308 |
|
Average
age of company trailers (in years) |
|
|
2.5 |
|
|
|
2.6 |
|
Ratio of
trailers to tractors(1) |
|
|
1.9 |
|
|
|
1.9 |
|
|
|
Three Months |
|
|
|
Ended March 31, |
|
(In
thousands) |
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
36,803 |
|
|
$ |
23,182 |
|
Net cash
(used for) investing activities |
|
|
(5,911 |
) |
|
|
(27,392 |
) |
Net cash
(used for) financing activities |
|
|
(2,129 |
) |
|
|
(1,183 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
54,553 |
|
|
|
54,572 |
|
Diluted |
|
|
55,046 |
|
|
|
55,095 |
|
(1) |
|
Includes tractors driven
by both company-employed drivers and independent contractors.
Independent contractors provided 46 and 55 tractors as of March 31,
2019 and 2018, respectively. |
|
|
(2) |
|
Represents
the percentage of miles for which the company is not
compensated. |
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