Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - MARTEN TRANSPORT LTD | marten_8k-041911.htm |
Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES FIRST QUARTER RESULTS;
2011 first-quarter net income improves 5.2%
Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 5.2% increase in net income to $4.1 million, or 19 cents per diluted share, for the first quarter ended March 31, 2011, from $3.9 million, or 18 cents per diluted share, for the first quarter of 2010.
Operating revenue, consisting of revenue from truckload and logistics operations, increased to $137.9 million in the first quarter of 2011 from $125.8 million in the 2010 quarter. Operating revenue, net of fuel surcharges, increased 3.7% to $112.5 million in the 2011 quarter from $108.5 million in the 2010 quarter. Fuel surcharge revenue increased to $25.4 million for the first quarter of 2011 from $17.3 million in the 2010 quarter, due to significantly higher fuel prices.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 93.2% for the first quarter of 2011 from 93.5% for the first quarter of 2010.
Chairman and Chief Executive Officer Randolph L. Marten said, “We are encouraged by our continued solid results. This quarter marks our fourth consecutive quarter of year-over-year increased profitability.
“Our transformation into a multi-faceted business model focused on growing our logistics business and expanding our regional operations throughout the country, along with our fuel efficiency and cost control measures, continue to drive our profitability. Our logistics revenue, net of intermodal fuel surcharges, grew by $2.9 million in this year’s first quarter over the 2010 quarter. Our regional operations continue to thrive, contributing to an 8.6% increase in our average truckload revenue, net of fuel surcharges, per tractor per week, over last year’s first quarter. We have increased our regional operations to 57.1% of our truckload fleet as of March 31, 2011, from 30.4% as of a year earlier.
“We have achieved these increased profits while investing in our future and paying down debt. This quarter-end marks the third consecutive quarter where we have increased our total number of tractors in service. It also marks the first quarter-end without long-term debt since we became a public company in 1986.”
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten 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 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 Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. 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, President, and Jim Hinnendael, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
|
(In thousands, except share information)
|
March 31,
2011
|
December 31,
2010
|
||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 8,041 | $ | 5,306 | ||||
|
Marketable securities
|
- | 138 | ||||||
|
Receivables:
|
||||||||
|
Trade, net
|
55,971 | 51,094 | ||||||
|
Other
|
4,299 | 12,968 | ||||||
|
Prepaid expenses and other
|
11,946 | 13,406 | ||||||
|
Deferred income taxes
|
5,332 | 4,794 | ||||||
|
Total current assets
|
85,589 | 87,706 | ||||||
|
Property and equipment:
|
||||||||
|
Revenue equipment, buildings and land,
|
||||||||
|
office equipment and other
|
511,812 | 515,622 | ||||||
|
Accumulated depreciation
|
(147,965 | ) | (143,563 | ) | ||||
|
Net property and equipment
|
363,847 | 372,059 | ||||||
|
Other assets
|
552 | 543 | ||||||
|
TOTAL ASSETS
|
$ | 449,988 | $ | 460,308 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Checks issued in excess of cash balances
|
$ | - | $ | 1,066 | ||||
|
Accounts payable and accrued liabilities
|
33,206 | 30,524 | ||||||
|
Insurance and claims accruals
|
17,157 | 17,653 | ||||||
|
Current maturities of long-term debt
|
- | 19,346 | ||||||
|
Total current liabilities
|
50,363 | 68,589 | ||||||
|
Deferred income taxes
|
99,210 | 95,815 | ||||||
|
Total liabilities
|
149,573 | 164,404 | ||||||
|
Stockholders’ equity:
|
||||||||
|
Marten Transport, Ltd. 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;
|
||||||||
|
48,000,000 shares authorized; 21,982,997 shares
|
||||||||
|
at March 31, 2011, and 21,950,252 shares at
|
||||||||
|
December 31, 2010, issued and outstanding
|
220 | 220 | ||||||
|
Additional paid-in capital
|
78,938 | 78,428 | ||||||
|
Retained earnings
|
219,001 | 215,345 | ||||||
|
Total Marten Transport, Ltd. stockholders’ equity
|
298,159 | 293,993 | ||||||
|
Noncontrolling interest
|
2,256 | 1,911 | ||||||
|
Total stockholders’ equity
|
300,415 | 295,904 | ||||||
|
TOTAL LIABILITIES AND
|
||||||||
|
STOCKHOLDERS’ EQUITY
|
$ | 449,988 | $ | 460,308 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three Months
Ended March 31,
|
|||||||
|
(In thousands, except per share information)
|
2011
|
2010
|
||||||
|
OPERATING REVENUE
|
$ | 137,856 | $ | 125,812 | ||||
|
OPERATING EXPENSES (INCOME):
|
||||||||
|
Salaries, wages and benefits
|
34,099 | 32,402 | ||||||
|
Purchased transportation
|
28,017 | 27,759 | ||||||
|
Fuel and fuel taxes
|
35,340 | 27,593 | ||||||
|
Supplies and maintenance
|
9,662 | 9,010 | ||||||
|
Depreciation
|
13,516 | 13,037 | ||||||
|
Operating taxes and licenses
|
1,417 | 1,505 | ||||||
|
Insurance and claims
|
4,301 | 3,852 | ||||||
|
Communications and utilities
|
1,122 | 813 | ||||||
|
Gain on disposition of revenue equipment
|
(768 | ) | (199 | ) | ||||
|
Other
|
3,541 | 3,006 | ||||||
|
Total operating expenses
|
130,247 | 118,778 | ||||||
|
OPERATING INCOME
|
7,609 | 7,034 | ||||||
|
NET INTEREST EXPENSE (INCOME)
|
19 | (106 | ) | |||||
|
INCOME BEFORE INCOME TAXES
|
7,590 | 7,140 | ||||||
|
Less: Income before income taxes
|
||||||||
|
attributable to noncontrolling interest
|
137 | 56 | ||||||
|
INCOME BEFORE INCOME TAXES
|
||||||||
|
ATTRIBUTABLE TO MARTEN
|
||||||||
|
TRANSPORT, LTD.
|
7,453 | 7,084 | ||||||
|
PROVISION FOR INCOME TAXES
|
3,358 | 3,192 | ||||||
|
NET INCOME
|
$ | 4,095 | $ | 3,892 | ||||
|
BASIC EARNINGS PER COMMON SHARE
|
$ | 0.19 | $ | 0.18 | ||||
|
DILUTED EARNINGS PER COMMON SHARE
|
$ | 0.19 | $ | 0.18 | ||||
|
DIVIDENDS PAID PER COMMON SHARE
|
$ | 0.02 | $ | - | ||||
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)
|
2011
|
2010
|
2011 vs. 2010
|
2011 vs. 2010
|
||||||||||||
|
Operating revenue:
|
||||||||||||||||
|
Truckload revenue, net of fuel surcharge
|
||||||||||||||||
|
revenue
|
$ | 81,973 | $ | 80,920 | $ | 1,053 | 1.3 | % | ||||||||
|
Truckload fuel surcharge revenue
|
22,088 | 15,306 | 6,782 | 44.3 | ||||||||||||
|
Total Truckload revenue
|
104,061 | 96,226 | 7,835 | 8.1 | ||||||||||||
|
Logistics revenue, net of intermodal fuel
|
||||||||||||||||
|
surcharge revenue
|
30,518 | 27,570 | 2,948 | 10.7 | ||||||||||||
|
Intermodal fuel surcharge revenue
|
3,277 | 2,016 | 1,261 | 62.5 | ||||||||||||
|
Total Logistics revenue
|
33,795 | 29,586 | 4,209 | 14.2 | ||||||||||||
|
Total operating revenue
|
$ | 137,856 | $ | 125,812 | $ | 12,044 | 9.6 | % | ||||||||
|
Operating income:
|
||||||||||||||||
|
Truckload
|
$ | 5,321 | $ | 5,225 | $ | 96 | 1.8 | % | ||||||||
|
Logistics
|
2,288 | 1,809 | 479 | 26.5 | ||||||||||||
|
Total operating income
|
$ | 7,609 | $ | 7,034 | $ | 575 | 8.2 | % | ||||||||
|
Operating ratio:
|
||||||||||||||||
|
Truckload
|
94.9 | % | 94.6 | % | 0.3 | % | ||||||||||
|
Logistics
|
93.2 | 93.9 | (0.7 | ) | ||||||||||||
|
Consolidated operating ratio
|
94.5 | % | 94.4 | % | 0.1 | % | ||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
|
Three Months
|
|||||||
|
|
Ended March 31,
|
|||||||
|
|
2011
|
2010
|
||||||
|
Truckload Segment:
|
||||||||
|
Total Truckload revenue (in thousands)
|
$ | 104,061 | $ | 96,226 | ||||
|
Average truckload revenue, net of fuel surcharges, per
|
||||||||
|
tractor per week(1)
|
$ | 3,058 | $ | 2,816 | ||||
|
Average tractors(1)
|
2,085 | 2,235 | ||||||
|
Average miles per trip
|
636 | 689 | ||||||
|
Non-revenue miles percentage(2)
|
10.2 | % | 9.2 | % | ||||
|
Total miles – company-employed drivers (in thousands)
|
48,671 | 48,944 | ||||||
|
Total miles – independent contractors (in thousands)
|
2,131 | 4,500 | ||||||
|
Logistics Segment:
|
||||||||
|
Total Logistics revenue (in thousands)
|
$ | 33,795 | $ | 29,586 | ||||
|
Brokerage:
|
||||||||
|
Marten Transport
|
||||||||
|
Revenue (in thousands)
|
$ | 11,845 | $ | 10,393 | ||||
|
Loads
|
6,161 | 5,602 | ||||||
|
MWL
|
||||||||
|
Revenue (in thousands)
|
$ | 7,767 | $ | 8,168 | ||||
|
Loads
|
3,834 | 4,279 | ||||||
|
Intermodal:
|
||||||||
|
Revenue (in thousands)
|
$ | 14,183 | $ | 11,025 | ||||
|
Loads
|
5,629 | 4,677 | ||||||
|
Average tractors
|
69 | 62 | ||||||
|
At March 31, 2011 and March 31, 2010:
|
||||||||
|
Total tractors(1)
|
2,169 | 2,208 | ||||||
|
Average age of company tractors (in years)
|
2.6 | 2.3 | ||||||
|
Total trailers
|
3,956 | 3,946 | ||||||
|
Average age of company trailers (in years)
|
2.8 | 3.4 | ||||||
|
Ratio of trailers to tractors(1)
|
1.8 | 1.8 | ||||||
|
|
Three Months
|
|||||||
|
|
Ended March 31, | |||||||
|
(In thousands)
|
2011 | 2010 | ||||||
|
Net cash provided by operating activities
|
$ | 27,991 | $ | 18,677 | ||||
|
Net cash used for investing activities
|
4,867 | 27,066 | ||||||
|
Weighted average shares outstanding:
|
||||||||
|
Basic
|
21,964 | 21,897 | ||||||
|
Diluted
|
22,071 | 21,997 | ||||||
|
(1)
|
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 75 and 147 tractors as of March 31, 2011, and 2010, respectively.
|
|
(2)
|
Represents the percentage of miles for which the company is not compensated.
|