MONDOVI, Wis., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $3.8 million, or 5 cents per diluted share, for the third quarter ended September 30, 2024, compared with $13.6 million, or 17 cents per diluted share, for the third quarter of 2023. For the nine-month period ended September 30, 2024, net income was $21.3 million, or 26 cents per diluted share, compared with $58.0 million, or 71 cents per diluted share, for the 2023 nine-month period.

Operating revenue was $237.4 million for the third quarter of 2024 compared with $279.5 million for the third quarter of 2023. Excluding fuel surcharges, operating revenue was $207.9 million for the 2024 quarter compared with $239.1 million for the 2023 quarter. Fuel surcharge revenue decreased to $29.5 million for the 2024 quarter from $40.5 million for the 2023 quarter.

Operating revenue was $733.3 million for the first nine months of 2024 compared with $863.2 million for the first nine months of 2023. Excluding fuel surcharges, operating revenue was $637.1 million for the 2024 period compared with $742.6 million for the 2023 period. Fuel surcharge revenue decreased to $96.1 million for the 2024 period compared with $120.6 million for the 2023 period.

Operating income was $4.3 million for the third quarter of 2024 compared with $17.2 million for the third quarter of 2023.

Operating income was $26.5 million for the first nine months of 2024 compared with $74.5 million for the first nine months of 2023.

Operating expenses as a percentage of operating revenue were 98.2% for the 2024 quarter and 93.8% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 97.9% for the 2024 quarter and 92.8% for the 2023 quarter.

Operating expenses as a percentage of operating revenue were 96.4% for the first nine months of 2024 and 91.4% for the first nine months of 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 95.8% for the 2024 period and 90.0% for the 2023 period.

Executive Chairman Randolph L. Marten stated, "Our earnings were heavily pressured by the considerable duration and depth of the freight market recession's oversupply and weak demand - and the cumulative impact of inflationary operating costs and freight rate reductions, which has also led to freight network disruptions. Our unique multifaceted business model's value is highlighted by the operating results this year for our dedicated, brokerage and MRTN de Mexico operations."

"This quarter was the first quarter with sequential improvement in our combined truckload and dedicated rate per total mile since the fourth quarter of 2022."

"We are seeing increased interest by our customers to secure dedicated capacity. The recent addition of new multi-year dedicated programs for an additional 133 drivers, which I mentioned in our second quarter earnings release, has increased to 149 drivers, who we expect to be substantially in service by the end of this year. Additionally, we extended each of our contracts for dedicated programs due in the third quarter covering 337 of our drivers."

"We are focused on minimizing the freight market's impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market moves toward equilibrium."

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, 2023. 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

	September 30,			December 31,
(In thousands, except share information)	2024			2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	42,990		$	53,213
Receivables:
Trade, net		93,539			105,501
Other		6,893			10,356
Prepaid expenses and other		26,853			27,512
Total current assets		170,275			196,582

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,192,736			1,162,336
Accumulated depreciation		(364,712	)		(370,103	)
Net property and equipment		828,024			792,233
Other noncurrent assets		1,705			1,524
Total assets	$	1,000,004		$	990,339

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	47,282		$	36,516
Insurance and claims accruals		42,946			47,017
Accrued and other current liabilities		26,521			26,709
Total current liabilities		116,749			110,242
Deferred income taxes		116,443			122,462
Noncurrent operating lease liabilities		351			249
Total liabilities		233,543			232,953

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; 81,447,838 shares at September 30, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding		814			813
Additional paid-in capital		52,225			49,789
Retained earnings		713,422			706,784
Total stockholders' equity		766,461			757,386
Total liabilities and stockholders' equity	$	1,000,004		$	990,339


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)	2024			2023			2024			2023

Operating revenue	$	237,366		$	279,538		$	733,276		$	863,233

Operating expenses (income):
Salaries, wages and benefits		83,442			92,620			258,723			287,468
Purchased transportation		44,862			49,673			129,911			152,075
Fuel and fuel taxes		35,781			48,695			114,151			137,706
Supplies and maintenance		16,464			17,896			49,006			51,291
Depreciation		27,392			29,017			84,125			87,974
Operating taxes and licenses		2,505			2,821			7,619			8,345
Insurance and claims		13,759			13,254			37,975			40,805
Communications and utilities		2,166			2,584			6,834			7,625
Gain on disposition of revenue equipment		(881	)		(3,014	)		(4,584	)		(11,810	)
Other		7,607			8,762			23,023			27,301

Total operating expenses		233,097			262,308			706,783			788,780

Operating income		4,269			17,230			26,493			74,453

Other		(922	)		(1,017	)		(2,732	)		(2,938	)

Income before income taxes		5,191			18,247			29,225			77,391

Income taxes expense		1,437			4,649			7,936			19,417

Net income	$	3,754		$	13,598		$	21,289		$	57,974

Basic earnings per common share	$	0.05		$	0.17		$	0.26		$	0.71

Diluted earnings per common share	$	0.05		$	0.17		$	0.26		$	0.71

Dividends declared per common share	$	0.06		$	0.06		$	0.18		$	0.18


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)	2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	93,278		$	96,516		$	(3,238	)		(3.4	)%
Truckload fuel surcharge revenue		15,146			17,711			(2,565	)		(14.5	)
Total Truckload revenue		108,424			114,227			(5,803	)		(5.1	)

Dedicated revenue, net of fuel surcharge revenue		62,898			82,963			(20,065	)		(24.2	)
Dedicated fuel surcharge revenue		12,123			18,834			(6,711	)		(35.6	)
Total Dedicated revenue		75,021			101,797			(26,776	)		(26.3	)

Intermodal revenue, net of fuel surcharge revenue		12,289			18,122			(5,833	)		(32.2	)
Intermodal fuel surcharge revenue		2,220			3,925			(1,705	)		(43.4	)
Total Intermodal revenue		14,509			22,047			(7,538	)		(34.2	)

Brokerage revenue		39,412			41,467			(2,055	)		(5.0	)

Total operating revenue	$	237,366		$	279,538		$	(42,172	)		(15.1	)%

Operating income/(loss):
Truckload	$	(142	)	$	2,738		$	(2,880	)		(105.2	)%
Dedicated		3,056			11,286			(8,230	)		(72.9	)
Intermodal		(1,542	)		(1,074	)		(468	)		(43.6	)
Brokerage		2,897			4,280			(1,383	)		(32.3	)
Total operating income	$	4,269		$	17,230		$	(12,961	)		(75.2	)%

Operating ratio:
Truckload		100.1	%		97.6	%
Dedicated		95.9			88.9
Intermodal		110.6			104.9
Brokerage		92.6			89.7
Consolidated operating ratio		98.2	%		93.8	%

Operating ratio, net of fuel surcharges:
Truckload		100.2	%		97.2	%
Dedicated		95.1			86.4
Intermodal		112.5			105.9
Brokerage		92.6			89.7
Consolidated operating ratio, net of fuel surcharges		97.9	%		92.8	%


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)	2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	284,346		$	300,104		$	(15,758	)		(5.3	)%
Truckload fuel surcharge revenue		48,152			51,887			(3,735	)		(7.2	)
Total Truckload revenue		332,498			351,991			(19,493	)		(5.5	)

Dedicated revenue, net of fuel surcharge revenue		202,080			257,231			(55,151	)		(21.4	)
Dedicated fuel surcharge revenue		40,667			56,000			(15,333	)		(27.4	)
Total Dedicated revenue		242,747			313,231			(70,484	)		(22.5	)

Intermodal revenue, net of fuel surcharge revenue		38,230			60,277			(22,047	)		(36.6	)
Intermodal fuel surcharge revenue		7,315			12,724			(5,409	)		(42.5	)
Total Intermodal revenue		45,545			73,001			(27,456	)		(37.6	)

Brokerage revenue		112,486			125,010			(12,524	)		(10.0	)

Total operating revenue	$	733,276		$	863,233		$	(129,957	)		(15.1	)%

Operating income/(loss):
Truckload	$	1,462		$	22,348		$	(20,886	)		(93.5	)%
Dedicated		18,964			39,143			(20,179	)		(51.6	)
Intermodal		(2,420	)		(452	)		(1,968	)		(435.4	)
Brokerage		8,487			13,414			(4,927	)		(36.7	)
Total operating income	$	26,493		$	74,453		$	(47,960	)		(64.4	)%

Operating ratio:
Truckload		99.6	%		93.7	%
Dedicated		92.2			87.5
Intermodal		105.3			100.6
Brokerage		92.5			89.3
Consolidated operating ratio		96.4	%		91.4	%

Operating ratio, net of fuel surcharges:
Truckload		99.5	%		92.6	%
Dedicated		90.6			84.8
Intermodal		106.3			100.7
Brokerage		92.5			89.3
Consolidated operating ratio, net of fuel surcharges		95.8	%		90.0	%


MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2024			2023			2024			2023
Truckload Segment:
Revenue (in thousands)	$	108,424		$	114,227		$	332,498		$	351,991
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,187		$	4,285		$	4,090		$	4,442
Average tractors⁽¹⁾		1,695			1,714			1,776			1,732
Average miles per trip		533			529			533			515
Non-revenue miles percentage⁽²⁾		12.2	%		12.1	%		12.1	%		12.4	%
Total miles (in thousands)		39,288			39,093			119,838			116,651

Dedicated Segment:
Revenue (in thousands)	$	75,021		$	101,797		$	242,747		$	313,231
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,693		$	3,900		$	3,744		$	3,949
Average tractors⁽¹⁾		1,296			1,619			1,379			1,670
Average miles per trip		311			339			321			335
Non-revenue miles percentage⁽²⁾		1.3	%		1.3	%		1.2	%		1.2	%
Total miles (in thousands)		26,571			33,039			83,882			101,948

Intermodal Segment:
Revenue (in thousands)	$	14,509		$	22,047		$	45,545		$	73,001
Loads		4,119			6,327			13,172			19,871
Average tractors		104			154			117			168

Brokerage Segment:
Revenue (in thousands)	$	39,412		$	41,467		$	112,486		$	125,010
Loads		24,628			24,077			67,389			67,483

At September 30, 2024 and September 30, 2023:
Total tractors⁽¹⁾		3,080			3,454
Average age of company tractors (in years)		1.8			1.8
Total trailers		5,456			5,726
Average age of company trailers (in years)		5.2			4.4
Ratio of trailers to tractors⁽¹⁾		1.8			1.7
Total refrigerated containers		786			788

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
(In thousands)	2024			2023			2024			2023

Net cash provided by operating activities	$	29,478		$	28,132		$	111,021		$	126,333
Net cash used for investing activities		(59,222	)		(35,831	)		(107,247	)		(124,470	)
Net cash used for financing activities		(4,465	)		(4,762	)		(13,997	)		(14,396	)

Weighted average shares outstanding:
Basic		81,437			81,306			81,389			81,260
Diluted		81,492			81,454			81,460			81,414

(1)			Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 94 and 99 tractors as of September 30, 2024 and 2023, respectively.

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

Marten Transport Announces Third Quarter Results