MRTN Marten Transport Ltd

Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 52.9% improvement in net income to $27.5 million, or 33 cents per diluted share, for the first quarter ended March 31, 2022, from $18.0 million, or 22 cents per diluted share, for the first quarter of 2021. The 2022 first-quarter earnings also improved 11.3% sequentially from 2021 fourth-quarter net income of $24.7 million, or 30 cents per diluted share.

	Operating Results Comparison
					Percentage			Percentage			Percentage			Percentage
					Increase			Increase			Increase			Increase
					Three Months			Year			Year			Year
					Ended			Ended			Ended			Ended
					March 31,			December 31,			December 31,			December 31,
					2022 vs. 2021			2021 vs. 2020			2020 vs. 2019			2019 vs. 2018
	Operating revenue				28.8	%		11.4	%		3.7	%		7.1	%
	Operating revenue, net of fuel surcharges				23.8	%		8.3	%		6.8	%		8.6	%
	Operating income				49.4	%		19.8	%		21.9	%		8.7	%
	Net income				52.9	%		22.9	%		13.8	%		11.0	%

Operating revenue for the first quarter of 2022 was the highest amount for any quarter in Marten’s 77-year history. Operating revenue improved 28.8% to $287.3 million for the first quarter of 2022 from $223.0 million for the first quarter of 2021 - and improved 7.6% from Marten’s previous best of $266.9 million for the 2021 fourth quarter. Excluding fuel surcharges, operating revenue improved 23.8% to $245.3 million for the 2022 quarter from $198.2 million for the 2021 quarter - and improved 5.3% from $232.9 million for the 2021 fourth quarter. Fuel surcharge revenue increased to $42.0 million for the 2022 quarter from $24.9 million for the 2021 quarter due to significantly higher fuel prices.

Operating income for the first quarter of 2022 was also the highest amount for any quarter in Marten’s history. Operating income improved 49.4% to $35.9 million for the first quarter of 2022 from $24.0 million for the first quarter of 2021 - and improved 16.9% from Marten’s previous best of $30.7 million for the 2021 fourth quarter.

Operating expenses as a percentage of operating revenue improved to 87.5% for the first quarter of 2022 from 89.2% for the first quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.4% for the 2022 quarter, the best ratio for any quarter since Marten became a public company in 1986, from 87.9% for the 2021 quarter.

Executive Chairman Randolph L. Marten stated, “Our talented and determined people capitalized on the continuing tight freight market to hit the trifecta this quarter, producing our highest operating revenue and operating income for any quarter in our history, along with our best operating ratio, net of fuel surcharges, for any quarter since we became a public company in 1986.”

“We also provided momentum to the rest of this year to continue our consistent, strong profitable growth. We began this year’s second quarter with 128 more of the industry’s top drivers than we employed at the beginning of the year, despite the unrelenting national shortage of qualified drivers. We also added 95 refrigerated containers during the first quarter, increasing our fleet to 729 containers as of March 31st.”

“Additionally, reflecting our confidence in Marten’s financial strength and commitment to enhancing stockholder value, we repurchased and retired 1.3 million shares of our common stock for $25 million and increased our regular quarterly cash dividend by 50% during the first quarter of 2022.”

	Operating Results throughout the Pandemic – Percentage Increase Over Same Quarter of Prior Year
		Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
	Operating revenue	28.8%		17.4%		16.3%		9.4%		2.0%		4.7%		0.5%		0.1%
	Operating revenue, net of fuel surcharges	23.8%		12.5%		12.8%		5.0%		2.5%		8.8%		3.8%		4.7%
	Operating income	49.4%		20.0%		16.8%		12.9%		33.1%		36.0%		21.8%		26.6%
	Net income	52.9%		26.1%		17.9%		18.1%		31.3%		24.5%		8.8%		19.4%

Current Investor Presentation

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, Mexico and Canada, 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 Marten’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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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, Chief Executive Officer, 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)		2022				2021
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	66,527			$	56,995
Receivables:
Trade, net			126,815				99,003
Other			4,317				6,971
Prepaid expenses and other			22,375				23,980
Total current assets			220,034				186,949
Property and equipment:
Revenue equipment, buildings and land, office equipment and other			955,760				956,476
Accumulated depreciation			(291,941	)			(274,199	)
Net property and equipment			663,819				682,277
Other noncurrent assets			1,545				1,464
Total assets		$	885,398			$	870,690
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	29,158			$	20,150
Insurance and claims accruals			42,592				42,014
Accrued and other current liabilities			37,632				31,395
Total current liabilities			109,382				93,559
Deferred income taxes			126,918				125,163
Noncurrent operating lease liabilities			336				291
Total liabilities			236,636				219,013
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; 81,946,875 shares at March 31, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding			819				830
Additional paid-in capital			60,256				85,718
Retained earnings			587,687				565,129
Total stockholders’ equity			648,762				651,677
Total liabilities and stockholders’ equity		$	885,398			$	870,690

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

		Three Months
		Ended March 31,
(In thousands, except per share information)		2022				2021
Operating revenue		$	287,281			$	223,046
Operating expenses (income):
Salaries, wages and benefits			89,349				72,998
Purchased transportation			57,310				40,765
Fuel and fuel taxes			44,368				28,937
Supplies and maintenance			12,313				11,015
Depreciation			26,143				25,687
Operating taxes and licenses			2,640				2,712
Insurance and claims			12,704				11,446
Communications and utilities			2,265				2,083
Gain on disposition of revenue equipment			(4,540	)			(1,984	)
Other			8,871				5,389
Total operating expenses			251,423				199,048
Operating income			35,858				23,998
Other			(7	)			(10	)
Income before income taxes			35,865				24,008
Income taxes expense			8,332				6,002
Net income		$	27,533			$	18,006
Basic earnings per common share		$	0.33			$	0.22
Diluted earnings per common share		$	0.33			$	0.22
Dividends declared per common share		$	0.06			$	0.04

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)		2022				2021				2022 vs. 2021				2022 vs. 2021
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	95,170			$	83,919			$	11,251				13.4	%
Truckload fuel surcharge revenue			17,620				10,996				6,624				60.2
Total Truckload revenue			112,790				94,915				17,875				18.8
Dedicated revenue, net of fuel surcharge revenue			78,421				66,902				11,519				17.2
Dedicated fuel surcharge revenue			18,339				11,335				7,004				61.8
Total Dedicated revenue			96,760				78,237				18,523				23.7
Intermodal revenue, net of fuel surcharge revenue			25,605				19,446				6,159				31.7
Intermodal fuel surcharge revenue			6,037				2,558				3,479				136.0
Total Intermodal revenue			31,642				22,004				9,638				43.8
Brokerage revenue			46,089				27,890				18,199				65.3
Total operating revenue		$	287,281			$	223,046			$	64,235				28.8	%
Operating income:
Truckload		$	15,571			$	11,415			$	4,156				36.4	%
Dedicated			10,645				8,936				1,709				19.1
Intermodal			5,036				1,461				3,575				244.7
Brokerage			4,606				2,186				2,420				110.7
Total operating income		$	35,858			$	23,998			$	11,860				49.4	%
Operating ratio:
Truckload			86.2	%			88.0	%
Dedicated			89.0				88.6
Intermodal			84.1				93.4
Brokerage			90.0				92.2
Consolidated operating ratio			87.5	%			89.2	%

                                                

MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited)

		Three Months
		Ended March 31,
		2022				2021
Truckload Segment:
Revenue (in thousands)		$	112,790			$	94,915
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,977			$	4,057
Average tractors(1)			1,487				1,609
Average miles per trip			520				534
Non-revenue miles percentage(2)			10.4	%			10.3	%
Total miles (in thousands)			35,372				38,283
Dedicated Segment:
Revenue (in thousands)		$	96,760			$	78,237
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,851			$	3,214
Average tractors(1)			1,584				1,619
Average miles per trip			341				307
Non-revenue miles percentage(2)			1.2	%			0.8	%
Total miles (in thousands)			32,753				31,999
Intermodal Segment:
Revenue (in thousands)		$	31,642			$	22,004
Loads			8,294				7,982
Average tractors			162				134
Brokerage Segment:
Revenue (in thousands)		$	46,089			$	27,890
Loads			19,684				14,575
At March 31, 2022 and March 31, 2021:
Total tractors(1)			3,274				3,361
Average age of company tractors (in years)			1.6				1.6
Total trailers			5,428				5,344
Average age of company trailers (in years)			3.5				3.2
Ratio of trailers to tractors(1)			1.7				1.6
Total refrigerated containers			729				487

		Three Months
		Ended March 31,
(In thousands)		2022				2021
Net cash provided by operating activities		$	39,940			$	43,570
Net cash provided by/(used for) investing activities			409				(17,417	)
Net cash (used for) financing activities			(30,817	)			(3,697	)
Weighted average shares outstanding:
Basic			82,938				82,758
Diluted			83,246				83,359

(1)			Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 87 and 133 tractors as of March 31, 2022 and 2021, respectively.
(2)			Represents the percentage of miles for which the company is not compensated.