MONDOVI, Wis., April 18, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ:MRTN) today reported net income of $22.5 million, or 28 cents per diluted share, for the first quarter ended March 31, 2023, compared with $27.5 million, or 33 cents per diluted share, for the first quarter of 2022.

Operating revenue improved 3.7% to $298.0 million for the first quarter of 2023 from $287.3 million for the first quarter of 2022. Excluding fuel surcharges, operating revenue improved 3.9% to $254.9 million for the 2023 quarter from $245.3 million for the 2022 quarter. Fuel surcharge revenue increased to $43.1 million for the 2023 quarter from $42.0 million for the 2022 quarter.

Operating income was $29.0 million for the first quarter of 2023 compared with $35.9 million for the first quarter of 2022 – at the time the highest amount for any quarter in Marten's history.

Operating expenses as a percentage of operating revenue were 90.3% for the 2023 quarter and 87.5% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 quarter and 85.4% for the 2022 quarter – at the time the best ratio for any quarter since Marten became a public company in 1986.

Executive Chairman Randolph L. Marten stated, "Our bright and determined people executing our unique business model produced solid operating results despite the impact of widespread severe winter weather and a freight market which has considerably softened from the exceptionally tight conditions during the first half of last year. The market has become unsustainable for the smaller carriers who comprise a significant portion of total capacity, and who are expected to continue the recent increased industry exit rate."

"We believe that we are well-positioned to capitalize on profitable organic growth opportunities across our five distinct but complementary business platforms with our emphasis on premium service, data-driven operating efficiencies and cost controls – and, as a result, to expand the total capacity we provide transporting and distributing the essential food, beverages and other consumer goods to support at a fair price our diverse and growing customer base."

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 Marten'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, 2022. 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, Doug Petit, 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)	2023				2022
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	96,288			$	80,600
Receivables:
Trade, net		115,430				120,702
Other		7,988				7,218
Prepaid expenses and other		24,206				27,320
Total current assets		243,912				235,840

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,082,361				1,074,832
Accumulated depreciation		(348,641	)			(346,665	)
Net property and equipment		733,720				728,167
Other noncurrent assets		1,641				1,672
Total assets	$	979,273			$	965,679

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	41,558			$	37,299
Insurance and claims accruals		48,967				45,747
Accrued and other current liabilities		29,077				41,264
Total current liabilities		119,602				124,310
Deferred income taxes		137,825				137,041
Noncurrent operating lease liabilities		335				409
Total liabilities		257,762				261,760

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; 81,233,741 shares at March 31, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding		812				811
Additional paid-in capital		47,151				47,188
Retained earnings		673,548				655,920
Total stockholders' equity		721,511				703,919
Total liabilities and stockholders' equity	$	979,273			$	965,679

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months
	Ended March 31,
(In thousands, except per share information)	2023			2022

Operating revenue	$	298,023		$	287,281

Operating expenses (income):
Salaries, wages and benefits		98,516			89,349
Purchased transportation		54,103			57,310
Fuel and fuel taxes		46,796			44,368
Supplies and maintenance		15,987			12,313
Depreciation		29,530			26,143
Operating taxes and licenses		2,768			2,640
Insurance and claims		15,070			12,704
Communications and utilities		2,531			2,265
Gain on disposition of revenue equipment		(5,246	)		(4,540	)
Other		8,958			8,871

Total operating expenses		269,013			251,423

Operating income		29,010			35,858

Other		(844	)		(7	)

Income before income taxes		29,854			35,865

Income taxes expense		7,352			8,332

Net income	$	22,502		$	27,533

Basic earnings per common share	$	0.28		$	0.33

Diluted earnings per common share	$	0.28		$	0.33

Dividends declared per common share	$	0.06		$	0.06

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)	2023			2022			2023 vs. 2022			2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	102,320		$	95,170		$	7,150			7.5	%
Truckload fuel surcharge revenue		18,306			17,620			686			3.9
Total Truckload revenue		120,626			112,790			7,836			6.9

Dedicated revenue, net of fuel surcharge revenue		86,831			78,421			8,410			10.7
Dedicated fuel surcharge revenue		19,618			18,339			1,279			7.0
Total Dedicated revenue		106,449			96,760			9,689			10.0

Intermodal revenue, net of fuel surcharge revenue		23,401			25,605			(2,204	)		(8.6	)
Intermodal fuel surcharge revenue		5,188			6,037			(849	)		(14.1	)
Total Intermodal revenue		28,589			31,642			(3,053	)		(9.6	)

Brokerage revenue		42,359			46,089			(3,730	)		(8.1	)

Total operating revenue	$	298,023		$	287,281		$	10,742			3.7	%

Operating income:
Truckload	$	10,041		$	15,571		$	(5,530	)		(35.5	)%
Dedicated		13,684			10,645			3,039			28.5
Intermodal		787			5,036			(4,249	)		(84.4	)
Brokerage		4,498			4,606			(108	)		(2.3	)
Total operating income	$	29,010		$	35,858		$	(6,848	)		(19.1	)%

Operating ratio:
Truckload		91.7	%		86.2	%
Dedicated		87.1			89.0
Intermodal		97.2			84.1
Brokerage		89.4			90.0
Consolidated operating ratio		90.3	%		87.5	%

Operating ratio, net of fuel surcharges:
Truckload		90.2	%		83.6	%
Dedicated		84.2			86.4
Intermodal		96.6			80.3
Brokerage		89.4			90.0
Consolidated operating ratio, net of fuel surcharges		88.6	%		85.4	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

	Three Months
	Ended March 31,
	2023			2022
Truckload Segment:
Revenue (in thousands)	$	120,626		$	112,790
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,571		$	4,977
Average tractors⁽¹⁾		1,741			1,487
Average miles per trip		510			520
Non-revenue miles percentage⁽²⁾		12.7	%		10.4	%
Total miles (in thousands)		38,237			35,372

Dedicated Segment:
Revenue (in thousands)	$	106,449		$	96,760
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,960		$	3,851
Average tractors⁽¹⁾		1,705			1,584
Average miles per trip		333			341
Non-revenue miles percentage⁽²⁾		1.1	%		1.2	%
Total miles (in thousands)		34,076			32,753

Intermodal Segment:
Revenue (in thousands)	$	28,589		$	31,642
Loads		7,277			8,294
Average tractors		180			162

Brokerage Segment:
Revenue (in thousands)	$	42,359		$	46,089
Loads		20,688			19,684

At March 31, 2023 and March 31, 2022:
Total tractors⁽¹⁾		3,571			3,274
Average age of company tractors (in years)		1.7			1.6
Total trailers		5,741			5,428
Average age of company trailers (in years)		4.1			3.5
Ratio of trailers to tractors⁽¹⁾		1.6			1.7
Total refrigerated containers		802			729

	Three Months
	Ended March 31,
(In thousands)	2023			2022

Net cash provided by operating activities	$	49,232		$	39,940
Net cash (used for)/provided by investing activities		(28,280	)		409
Net cash (used for) financing activities		(5,264	)		(30,817	)

Weighted average shares outstanding:
Basic		81,210			82,938
Diluted		81,376			83,246

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 95 and 87 tractors as of March 31, 2023 and 2022, respectively.

(2	)	Represents the percentage of miles for which the company is not compensated.

Marten Transport Announces First Quarter Results