MONDOVI, Wis., July 19, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ:MRTN) today reported net income of $21.9 million, or 27 cents per diluted share, for the second quarter ended June 30, 2023, compared with $31.7 million, or 39 cents per diluted share, for the second quarter of 2022. For the six-month period ended June 30, 2023, net income was $44.4 million, or 55 cents per diluted share, compared with $59.2 million, or 72 cents per diluted share, for the 2022 six-month period.

Operating revenue was $285.7 million for the second quarter of 2023 compared with $329.6 million for the second quarter of 2022. Excluding fuel surcharges, operating revenue was $248.6 million for the 2023 quarter compared with $269.1 million for the 2022 quarter. Fuel surcharge revenue decreased to $37.0 million for the 2023 quarter from $60.4 million for the 2022 quarter due to significantly lower fuel prices.

Operating revenue was $583.7 million for the first six months of 2023 compared with $616.8 million for the first six months of 2022. Excluding fuel surcharges, operating revenue was $503.6 million for the 2023 period compared with $514.4 million for the 2022 period. Fuel surcharge revenue decreased to $80.1 million for the 2023 period compared with $102.4 million for the 2022 period.

Operating income was $28.2 million for the second quarter of 2023 compared with $40.9 million for the second quarter of 2022 – the highest amount for any quarter in Marten's history.

Operating income was $57.2 million for the first six months of 2023 compared with $76.8 million for the first six months of 2022.

Operating expenses as a percentage of operating revenue were 90.1% for the 2023 quarter and 87.6% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.7% for the 2023 quarter and 84.8% for the 2022 quarter – the best ratio for any quarter since Marten became a public company in 1986.

Operating expenses as a percentage of operating revenue were 90.2% for the first six months of 2023 and 87.6% for the first six months of 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 88.6% for the 2023 period and 85.1% for the 2022 period.

Executive Chairman Randolph L. Marten stated, "While the soft freight market demand, excess capacity and inflationary costs continue to put considerable pressure on industry pricing, volumes and margins, we recorded our second-highest second quarter operating revenue and net income in our history."

"The disciplined execution of our unique business model by our talented people utilizing our adaptive and proprietary operating technology, along with our emphasis on operating efficiencies and cost controls, are key strengths to our minimizing the current impact of the weak freight market on our operations -- and are also strengths that we will maintain as we invest in and position our premium service solutions to capitalize on profitable organic growth opportunities as the market necessarily recovers."

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

	June 30,			December 31,
(In thousands, except share information)	2023			2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	80,528		$	80,600
Receivables:
Trade, net		111,577			120,702
Other		10,646			7,218
Prepaid expenses and other		29,208			27,320
Total current assets		231,959			235,840

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,122,659			1,074,832
Accumulated depreciation		(352,139	)		(346,665	)
Net property and equipment		770,520			728,167
Other noncurrent assets		1,605			1,672
Total assets	$	1,004,084		$	965,679

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	36,107		$	37,299
Insurance and claims accruals		47,665			45,747
Accrued and other current liabilities		47,248			41,264
Total current liabilities		131,020			124,310
Deferred income taxes		132,737			137,041
Noncurrent operating lease liabilities		307			409
Total liabilities		264,064			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; 81,301,468 shares at June 30, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding		813			811
Additional paid-in capital		48,663			47,188
Retained earnings		690,544			655,920
Total stockholders' equity		740,020			703,919
Total liabilities and stockholders' equity	$	1,004,084		$	965,679

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)	2023			2022			2023			2022

Operating revenue	$	285,672		$	329,565		$	583,695		$	616,846

Operating expenses (income):
Salaries, wages and benefits		96,332			96,460			194,848			185,809
Purchased transportation		48,299			67,480			102,402			124,790
Fuel and fuel taxes		42,215			61,337			89,011			105,705
Supplies and maintenance		17,408			13,352			33,395			25,665
Depreciation		29,427			26,865			58,957			53,008
Operating taxes and licenses		2,756			2,663			5,524			5,303
Insurance and claims		12,481			13,443			27,551			26,147
Communications and utilities		2,510			2,239			5,041			4,504
Gain on disposition of revenue equipment		(3,550	)		(4,812	)		(8,796	)		(9,352	)
Other		9,581			9,601			18,539			18,472

Total operating expenses		257,459			288,628			526,472			540,051

Operating income		28,213			40,937			57,223			76,795

Other		(1,077	)		(36	)		(1,921	)		(43	)

Income before income taxes		29,290			40,973			59,144			76,838

Income taxes expense		7,416			9,312			14,768			17,644

Net income	$	21,874		$	31,661		$	44,376		$	59,194

Basic earnings per common share	$	0.27		$	0.39		$	0.55		$	0.72

Diluted earnings per common share	$	0.27		$	0.39		$	0.55		$	0.72

Dividends declared per common share	$	0.06		$	0.06		$	0.12		$	0.12

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)	2023			2022			2023 vs. 2022			2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	101,268		$	101,808		$	(540	)		(0.5	)%
Truckload fuel surcharge revenue		15,870			25,164			(9,294	)		(36.9	)
Total Truckload revenue		117,138			126,972			(9,834	)		(7.7	)

Dedicated revenue, net of fuel surcharge revenue		87,437			84,389			3,048			3.6
Dedicated fuel surcharge revenue		17,548			25,966			(8,418	)		(32.4	)
Total Dedicated revenue		104,985			110,355			(5,370	)		(4.9	)

Intermodal revenue, net of fuel surcharge revenue		18,754			27,681			(8,927	)		(32.2	)
Intermodal fuel surcharge revenue		3,611			9,286			(5,675	)		(61.1	)
Total Intermodal revenue		22,365			36,967			(14,602	)		(39.5	)

Brokerage revenue		41,184			55,271			(14,087	)		(25.5	)

Total operating revenue	$	285,672		$	329,565		$	(43,893	)		(13.3	)%

Operating income:
Truckload	$	9,569		$	16,088		$	(6,519	)		(40.5	)%
Dedicated		14,173			14,039			134			1.0
Intermodal		(165	)		4,097			(4,262	)		(104.0	)
Brokerage		4,636			6,713			(2,077	)		(30.9	)
Total operating income	$	28,213		$	40,937		$	(12,724	)		(31.1	)%

Operating ratio:
Truckload		91.8	%		87.3	%
Dedicated		86.5			87.3
Intermodal		100.7			88.9
Brokerage		88.7			87.9
Consolidated operating ratio		90.1	%		87.6	%

Operating ratio, net of fuel surcharges:
Truckload		90.6	%		84.2	%
Dedicated		83.8			83.4
Intermodal		100.9			85.2
Brokerage		88.7			87.9
Consolidated operating ratio, net of fuel surcharges		88.7	%		84.8	%

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)	2023			2022			2023 vs. 2022			2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	203,588		$	196,978		$	6,610			3.4	%
Truckload fuel surcharge revenue		34,176			42,784			(8,608	)		(20.1	)
Total Truckload revenue		237,764			239,762			(1,998	)		(0.8	)

Dedicated revenue, net of fuel surcharge revenue		174,268			162,810			11,458			7.0
Dedicated fuel surcharge revenue		37,166			44,305			(7,139	)		(16.1	)
Total Dedicated revenue		211,434			207,115			4,319			2.1

Intermodal revenue, net of fuel surcharge revenue		42,155			53,286			(11,131	)		(20.9	)
Intermodal fuel surcharge revenue		8,799			15,323			(6,524	)		(42.6	)
Total Intermodal revenue		50,954			68,609			(17,655	)		(25.7	)

Brokerage revenue		83,543			101,360			(17,817	)		(17.6	)

Total operating revenue	$	583,695		$	616,846		$	(33,151	)		(5.4	)%

Operating income:
Truckload	$	19,610		$	31,659		$	(12,049	)		(38.1	)%
Dedicated		27,857			24,684			3,173			12.9
Intermodal		622			9,133			(8,511	)		(93.2	)
Brokerage		9,134			11,319			(2,185	)		(19.3	)
Total operating income	$	57,223		$	76,795		$	(19,572	)		(25.5	)%

Operating ratio:
Truckload		91.8	%		86.8	%
Dedicated		86.8			88.1
Intermodal		98.8			86.7
Brokerage		89.1			88.8
Consolidated operating ratio		90.2	%		87.6	%

Operating ratio, net of fuel surcharges:
Truckload		90.4	%		83.9	%
Dedicated		84.0			84.8
Intermodal		98.5			82.9
Brokerage		89.1			88.8
Consolidated operating ratio, net of fuel surcharges		88.6	%		85.1	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2023			2022			2023			2022
Truckload Segment:
Revenue (in thousands)	$	117,138		$	126,972		$	237,764		$	239,762
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,472		$	5,080		$	4,521		$	5,030
Average tractors⁽¹⁾		1,742			1,542			1,742			1,515
Average miles per trip		505			509			507			514
Non-revenue miles percentage⁽²⁾		12.4	%		10.7	%		12.5	%		10.6	%
Total miles (in thousands)		39,321			36,752			77,558			72,124

Dedicated Segment:
Revenue (in thousands)	$	104,985		$	110,355		$	211,434		$	207,115
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,986		$	4,072		$	3,973		$	3,962
Average tractors⁽¹⁾		1,687			1,594			1,696			1,589
Average miles per trip		332			341			332			341
Non-revenue miles percentage⁽²⁾		1.3	%		1.0	%		1.2	%		1.1	%
Total miles (in thousands)		34,833			34,134			68,909			66,887

Intermodal Segment:
Revenue (in thousands)	$	22,365		$	36,967		$	50,954		$	68,609
Loads		6,267			8,703			13,544			16,997
Average tractors		170			175			175			169

Brokerage Segment:
Revenue (in thousands)	$	41,184		$	55,271		$	83,543		$	101,360
Loads		22,718			25,322			43,406			45,006

At June 30, 2023 and June 30, 2022:
Total tractors⁽¹⁾		3,516			3,395
Average age of company tractors (in years)		1.7			1.6
Total trailers		5,786			5,521
Average age of company trailers (in years)		4.2			3.6
Ratio of trailers to tractors⁽¹⁾		1.6			1.6
Total refrigerated containers		791			784

	Three Months						Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2023			2022			2023			2022

Net cash provided by operating activities	$	48,969		$	58,730		$	98,201		$	98,670
Net cash (used for) investing activities		(60,359	)		(35,413	)		(88,639	)		(35,004	)
Net cash (used for) financing activities		(4,370	)		(21,470	)		(9,634	)		(52,287	)

Weighted average shares outstanding:
Basic		81,263			81,689			81,236			82,310
Diluted		81,412			82,015			81,394			82,617

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 98 and 85 tractors as of June 30, 2023 and 2022, respectively.

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

Marten Transport Announces Second Quarter Results