MONDOVI, Wis., Oct. 19, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ:MRTN) today reported a 17.9% improvement in net income to $21.3 million, or 26 cents per diluted share, for the third quarter ended September 30, 2021, from $18.0 million, or 22 cents per diluted share, for the third quarter of 2020. For the first nine months of 2021, net income improved 21.6% to $60.7 million, or 73 cents per diluted share, from $49.9 million, or 60 cents per diluted share, for the first nine months of 2020.


Operating Results Comparison

	Percentage		Percentage		Percentage		Percentage
	Increase		Increase		Increase		Increase
	Three Months		Nine Months		Year		Year
	Ended		Ended		Ended		Ended
	September 30,		September 30,		December 31,		December 31,
	2021 vs. 2020		2021 vs. 2020		2020 vs. 2019		2019 vs. 2018

Operating revenue	16.3	%	9.2	%	3.7	%	7.1	%

Operating revenue, net of fuel surcharges	12.8	%	6.8	%	6.8	%	8.6	%

Operating income	16.8	%	19.7	%	21.9	%	8.7	%

Net income	17.9	%	21.6	%	13.8	%	11.0	%

Operating revenue improved 16.3% to a record $251.3 million for the third quarter of 2021 from $216.0 million for the third quarter of 2020, and improved 9.2% to $706.8 million for the first nine months of 2021 from $647.0 million for the first nine months of 2020. Excluding fuel surcharges, operating revenue improved 12.8% to $221.2 million for the 2021 quarter from $196.1 million for the 2020 quarter, and improved 6.8% to $623.0 million for the first nine months of 2021 from $583.6 million for the first nine months of 2020. Fuel surcharge revenue increased to $30.1 million for the 2021 quarter from $19.9 million for the 2020 quarter, and increased to $83.7 million for the first nine months of 2021 from $63.5 million for the first nine months of 2020 due to significantly higher fuel prices.

Operating income improved 16.8% to $28.5 million for the third quarter of 2021 from $24.4 million for the third quarter of 2020. Operating income improved 19.7% to $81.0 million for the first nine months of 2021 from $67.7 million for the first nine months of 2020.

Operating expenses as a percentage of operating revenue were 88.7% for each of the third quarters of 2021 and 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.1% for the third quarter of 2021 from 87.6% for the third quarter of 2020.

Operating expenses as a percentage of operating revenue improved to 88.5% for the first nine months of 2021 from 89.5% for the first nine months of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 88.4%.

Executive Chairman Randolph L. Marten said, "Marten's talented and dedicated people continue to drive our consistent profitable growth. This quarter is yet another quarter over the last year and a half during the pandemic where we produced strong operating income improvement."

"We have been heightening and will continue to heighten our emphasis on structurally improving our drivers' jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. Our approach, which I mentioned in our second quarter earnings release, is working despite the unrelenting national shortage of qualified drivers. With our peoples' smart, hard work, we began the fourth quarter with 181 more of the industry's top drivers than we employed at the beginning of the third quarter. Additionally, we increased our number of refrigerated containers by 53 during the third quarter, expanding our fleet to 607 containers at September 30^th."

"We are confident in our ability to continue to deliver profitable growth. Success breeds success."

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 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, 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, 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

	September 30,			December 31,
(In thousands, except share information)	2021			2020
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	83,900		$	66,127
Receivables:
Trade, net		99,686			83,426
Other		6,208			4,202
Prepaid expenses and other		22,150			21,903
Total current assets		211,944			175,658

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		957,708			930,123
Accumulated depreciation		(267,808	)		(275,950	)
Net property and equipment		689,900			654,173
Other noncurrent assets		1,539			1,805
Total assets	$	903,383		$	831,636

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	33,687		$	25,702
Insurance and claims accruals		41,128			39,595
Accrued and other current liabilities		32,667			24,497
Accrued dividends		44,789			-
Total current liabilities		152,271			89,794
Deferred income taxes		120,689			121,098
Noncurrent operating lease liabilities		336			411
Total liabilities		273,296			211,303

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; 82,942,839 shares at September 30, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding		829			827
Additional paid-in capital		85,539			85,070
Retained earnings		543,719			534,436
Total stockholders' equity		630,087			620,333
Total liabilities and stockholders' equity	$	903,383		$	831,636

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
(In thousands, except per share information)	2021			2020			2021			2020

Operating revenue	$	251,280		$	216,011		$	706,768		$	647,041

Operating expenses (income):
Salaries, wages and benefits		81,091			74,797			229,385			221,034
Purchased transportation		52,861			37,066			138,629			113,676
Fuel and fuel taxes		33,909			24,268			94,853			73,433
Supplies and maintenance		11,685			12,440			33,867			36,501
Depreciation		25,371			25,580			76,598			76,979
Operating taxes and licenses		2,606			2,749			8,036			8,003
Insurance and claims		10,501			11,243			31,338			35,160
Communications and utilities		2,181			1,999			6,320			5,961
Gain on disposition of revenue equipment		(4,536	)		(2,128	)		(11,859	)		(5,899	)
Gain on disposition of facility		-			(1,718	)		-			(1,718	)
Other		7,115			5,315			18,589			16,223

Total operating expenses		222,784			191,611			625,756			579,353

Operating income		28,496			24,400			81,012			67,688

Other		(8	)		(17	)		(27	)		(127	)

Income before income taxes		28,504			24,417			81,039			67,815

Income taxes expense		7,230			6,373			20,341			17,919

Net income	$	21,274		$	18,044		$	60,698		$	49,896

Basic earnings per common share	$	0.26		$	0.22		$	0.73		$	0.61

Diluted earnings per common share	$	0.26		$	0.22		$	0.73		$	0.60

Dividends paid per common share	$	-		$	0.04		$	0.08		$	0.093

Dividends declared per common share	$	0.54		$	0.04		$	0.62		$	0.093

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

							Dollar			Percentage
							Change			Change
	Three Months						Three Months			Three Months
	Ended						Ended			Ended
	September 30,						September 30,			September 30,
(Dollars in thousands)	2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	86,889		$	85,074		$	1,815			2.1	%
Truckload fuel surcharge revenue		12,728			8,549			4,179			48.9
Total Truckload revenue		99,617			93,623			5,994			6.4

Dedicated revenue, net of fuel surcharge revenue		68,826			69,002			(176	)		(0.3	)
Dedicated fuel surcharge revenue		13,336			9,335			4,001			42.9
Total Dedicated revenue		82,162			78,337			3,825			4.9

Intermodal revenue, net of fuel surcharge revenue		22,716			19,991			2,725			13.6
Intermodal fuel surcharge revenue		4,031			1,985			2,046			103.1
Total Intermodal revenue		26,747			21,976			4,771			21.7

Brokerage revenue		42,754			22,075			20,679			93.7

Total operating revenue	$	251,280		$	216,011		$	35,269			16.3	%

Operating income:
Truckload	$	11,670		$	10,546		$	1,124			10.7	%
Dedicated		8,521			11,024			(2,503	)		(22.7	)
Intermodal		2,840			1,304			1,536			117.8
Brokerage		5,465			1,526			3,939			258.1
Total operating income	$	28,496		$	24,400		$	4,096			16.8	%

Operating ratio:
Truckload		88.3	%		88.7	%
Dedicated		89.6			85.9
Intermodal		89.4			94.1
Brokerage		87.2			93.1
Consolidated operating ratio		88.7	%		88.7	%

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

							Dollar			Percentage
							Change			Change
	Nine Months						Nine Months			Nine Months
	Ended						Ended			Ended
	September 30,						September 30,			September 30,
(Dollars in thousands)	2021			2020			2021 vs. 2020			2021 vs. 2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	254,441		$	254,897		$	(456	)		(0.2	)%
Truckload fuel surcharge revenue		36,032			28,058			7,974			28.4
Total Truckload revenue		290,473			282,955			7,518			2.7

Dedicated revenue, net of fuel surcharge revenue		202,955			200,237			2,718			1.4
Dedicated fuel surcharge revenue		37,565			28,564			9,001			31.5
Total Dedicated revenue		240,520			228,801			11,719			5.1

Intermodal revenue, net of fuel surcharge revenue		64,193			59,127			5,066			8.6
Intermodal fuel surcharge revenue		10,150			6,830			3,320			48.6
Total Intermodal revenue		74,343			65,957			8,386			12.7

Brokerage revenue		101,432			69,328			32,104			46.3

Total operating revenue	$	706,768		$	647,041		$	59,727			9.2	%

Operating income:
Truckload	$	36,282		$	28,367		$	7,915			27.9	%
Dedicated		28,074			31,009			(2,935	)		(9.5	)
Intermodal		6,151			3,564			2,587			72.6
Brokerage		10,505			4,748			5,757			121.3
Total operating income	$	81,012		$	67,688		$	13,324			19.7	%

Operating ratio:
Truckload		87.5	%		90.0	%
Dedicated		88.3			86.4
Intermodal		91.7			94.6
Brokerage		89.6			93.2
Consolidated operating ratio		88.5	%		89.5	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2021			2020			2021			2020
Truckload Segment:
Revenue (in thousands)	$	99,617		$	93,623		$	290,473		$	282,955
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,411		$	3,955		$	4,202		$	3,865
Average tractors⁽¹⁾		1,499			1,637			1,553			1,685
Average miles per trip		502			546			516			554
Non-revenue miles percentage⁽²⁾		10.1	%		10.2	%		10.0	%		10.8	%
Total miles (in thousands)		35,945			41,210			111,513			125,082

Dedicated Segment:
Revenue (in thousands)	$	82,162		$	78,337		$	240,520		$	228,801
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,438		$	3,295		$	3,305		$	3,304
Average tractors⁽¹⁾		1,523			1,593			1,574			1,548
Average miles per trip		328			304			319			306
Non-revenue miles percentage⁽²⁾		1.1	%		0.7	%		1.0	%		0.7	%
Total miles (in thousands)		31,511			33,843			95,765			98,553

Intermodal Segment:
Revenue (in thousands)	$	26,747		$	21,976		$	74,343		$	65,957
Loads		8,257			9,306			24,885			27,736
Average tractors		139			99			140			99

Brokerage Segment:
Revenue (in thousands)	$	42,754		$	22,075		$	101,432		$	69,328
Loads		18,251			13,670			47,167			45,058

At September 30, 2021 and September 30, 2020:
Total tractors⁽¹⁾		3,204			3,329
Average age of company tractors (in years)		1.4			1.7
Total trailers		5,291			5,368
Average age of company trailers (in years)		3.2			2.9
Ratio of trailers to tractors⁽¹⁾		1.7			1.6
Total refrigerated containers		607			401

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
(In thousands)	2021			2020			2021			2020

Net cash provided by operating activities	$	44,544		$	50,640		$	127,909		$	154,707
Net cash (used for) investing activities		(40,704	)		(34,558	)		(102,142	)		(93,748	)
Net cash (used for) financing activities		(612	)		(3,126	)		(7,994	)		(4,141	)

Weighted average shares outstanding:
Basic		82,907			82,672			82,835			82,472
Diluted		83,372			83,279			83,380			83,098

⁽¹	⁾	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 101 and 132 tractors as of September 30, 2021 and 2020, respectively.

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

A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/62731d52-45d0-495b-b904-8b9e15d654d9

Marten Transport Announces Third Quarter Results