Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MARTEN TRANSPORT LTD | mrtn20190124_8k.htm |
Exhibit 99.1
MARTEN TRANSPORT ANNOUNCES FOURTH QUARTER AND YEAR END RESULTS
Reports highest operating income and operating revenue for any quarter and year in Company history
MONDOVI, Wis., January 24, 2019 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating income and operating revenue for any quarter and year in its history. For the fourth quarter ended December 31, 2018, net income was $15.7 million, or 29 cents per diluted share. Net income for the 2017 fourth quarter was $65.1 million, or $1.18 per diluted share – results that include a deferred income taxes benefit of $56.5 million related to the federal Tax Cuts and Jobs Act of 2017. Excluding that benefit, net income improved 82.8% from $8.6 million, or 16 cents per diluted share, for the 2017 fourth quarter. Net income was $55.0 million, or $1.00 per diluted share, for the year ended December 31, 2018 and was $90.3 million, or $1.65 per diluted share, for 2017. Excluding the deferred income taxes benefit, 2018 net income improved 62.7% from $33.8 million, or 62 cents per diluted share, for 2017.
|
Operating Results Comparison |
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|
Percentage |
Percentage |
|||||||||||||||||||||||
|
Change |
Change |
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|
Three Months |
Year |
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|
Three Months |
Ended |
Year |
Ended |
|||||||||||||||||||||
|
Ended Dec. 31, |
Dec. 31, |
Ended Dec. 31, |
Dec. 31, |
|||||||||||||||||||||
|
(Dollars in thousands, except share information) |
2018 |
2017 |
2018 vs. 2017 |
2018 |
2017 |
2018 vs. 2017 |
||||||||||||||||||
|
Operating revenue |
$ | 203,961 | $ | 182,771 | 11.6 |
% |
$ | 787,594 | $ | 698,120 | 12.8 |
% |
||||||||||||
|
Operating income |
$ | 19,538 | $ | 14,333 | 36.3 |
% |
$ | 70,348 | $ | 56,862 | 23.7 |
% |
||||||||||||
|
Net income (excluding 2017 deferred income taxes benefit) |
$ | 15,737 | $ | 8,609 | 82.8 |
% |
$ | 55,027 | $ | 33,819 | 62.7 |
% |
||||||||||||
|
Diluted earnings per common share (excluding 2017 deferred income taxes benefit) |
$ | 0.29 | $ | 0.16 | 82.7 |
% |
$ | 1.00 | $ | 0.62 | 61.8 |
% |
||||||||||||
|
Earnings Impact of Deferred Income Taxes Benefit in 2017 |
||||||||
|
Three Months |
Year |
|||||||
|
Ended |
Ended |
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|
(Dollars in thousands, except share information) |
Dec. 31, 2017 |
Dec. 31, 2017 |
||||||
|
Net income: |
||||||||
|
Excluding deferred income taxes benefit |
$ | 8,609 | $ | 33,819 | ||||
|
Deferred income taxes benefit |
56,465 | 56,465 | ||||||
|
Net income |
$ | 65,074 | $ | 90,284 | ||||
|
Diluted earnings per common share*: |
||||||||
|
Excluding deferred income taxes benefit |
$ | 0.16 | $ | 0.62 | ||||
|
Deferred income taxes benefit |
1.03 | 1.03 | ||||||
|
Diluted earnings per common share |
$ | 1.18 | $ | 1.65 | ||||
|
*Differences in rounding exist for the diluted earnings per common share amounts for the three months ended Dec. 31, 2017. |
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Operating revenue improved 11.6% to a record $204.0 million for the fourth quarter of 2018 from $182.8 million for the fourth quarter of 2017, and improved 12.8% to a record $787.6 million for 2018 from $698.1 million for 2017. Excluding fuel surcharges, operating revenue improved 8.0% to $176.5 million for the 2018 quarter from $163.4 million for the 2017 quarter, and improved 8.0% to $681.4 million for 2018 from $631.0 million for 2017. Fuel surcharge revenue increased to $27.4 million for the fourth quarter of 2018 from $19.3 million for the 2017 quarter, and increased to $106.2 million for 2018 from $67.1 million for 2017.
Operating income improved 36.3% to a record $19.5 million for the fourth quarter of 2018 from $14.3 million for the fourth quarter of 2017, and improved 23.7% to a record $70.3 million for 2018 from $56.9 million for 2017.
Operating expenses as a percentage of operating revenue improved to 90.4% for the fourth quarter of 2018 from 92.2% for the fourth quarter of 2017. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.9% for the fourth quarter of 2018 from 91.2% for the fourth quarter of 2017.
Operating expenses as a percentage of operating revenue improved to 91.1% for 2018 from 91.9% for 2017. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 89.7% for 2018 from 91.0% for 2017.
Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased to report record operating income and operating revenue for the year, along with our best operating ratio, net of fuel surcharges, over the last 13 years – which we earned by consistently stepping up our profitability throughout the year. We also drove record operating revenue and operating income for the fourth quarter, along with our best operating ratio, net of fuel surcharges, over the last 15 quarters. Marten’s talented people delivered these strong top- and bottom-line results through the continued disciplined execution of our unique multifaceted business model while capitalizing on the strengthened freight environment. In addition, we enhanced our balance sheet position with $56.8 million in cash at December 31, 2018 compared with $15.8 million at the beginning of the year. We expect to produce continued organic growth across all of our operating platforms in 2019 with increasing compensation for our premium services, additional freight with existing and new customers, our emphasis on operating efficiencies and cost controls, and our modern fleet and strong balance sheet.”
“A number of our customer agreements included a shift beginning in this year’s first quarter from line haul to fuel surcharge revenue, which reduced our Dedicated and Truckload revenue, net of fuel surcharges, by $201 and $35 per tractor per week in the fourth quarter, and by $179 and $32 per tractor per week in the year. The change reduced our revenue excluding fuel surcharges by $3.6 million for the fourth quarter and by $12.9 million for the year, while increasing our fuel surcharge revenue by the same amounts.”
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten’s dry freight services are expanding, with 1,600 dry trailers operating as of December 31, 2018. 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 include a discussion of the Company’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 Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
|
December 31, |
December 31, |
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(In thousands, except share information) |
2018 |
2017 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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|
Cash and cash equivalents |
$ | 56,763 | $ | 15,791 | ||||
|
Receivables: |
||||||||
|
Trade, net |
83,033 | 74,886 | ||||||
|
Other |
3,808 | 6,131 | ||||||
|
Prepaid expenses and other |
19,924 | 19,810 | ||||||
|
Total current assets |
163,528 | 116,618 | ||||||
|
Property and equipment: |
||||||||
|
Revenue equipment, buildings and land, office equipment and other |
816,430 | 783,648 | ||||||
|
Accumulated depreciation |
(228,200 |
) |
(211,728 |
) |
||||
|
Net property and equipment |
588,230 | 571,920 | ||||||
|
Other assets |
2,146 | 1,865 | ||||||
|
Total assets |
$ | 753,904 | $ | 690,403 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
Current liabilities: |
||||||||
|
Accounts payable and accrued liabilities |
$ | 43,870 | $ | 38,100 | ||||
|
Insurance and claims accruals |
28,103 | 26,177 | ||||||
|
Total current liabilities |
71,973 | 64,277 | ||||||
|
Deferred income taxes |
105,977 | 100,626 | ||||||
|
Total liabilities |
177,950 | 164,903 | ||||||
|
Stockholders’ equity: |
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|
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; 54,466,691 shares at December 31, 2018, and 54,533,455 shares at December 31, 2017, issued and outstanding |
545 | 545 | ||||||
|
Additional paid-in capital |
76,814 | 76,413 | ||||||
|
Retained earnings |
498,595 | 448,542 | ||||||
|
Total stockholders’ equity |
575,954 | 525,500 | ||||||
|
Total liabilities and stockholders’ equity |
$ | 753,904 | $ | 690,403 | ||||
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months |
Year |
|||||||||||||||
|
Ended December 31, |
Ended December 31, |
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|
(In thousands, except per share information) |
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Operating revenue |
$ | 203,961 | $ | 182,771 | $ | 787,594 | $ | 698,120 | ||||||||
|
Operating expenses (income): |
||||||||||||||||
|
Salaries, wages and benefits |
65,924 | 59,382 | 252,047 | 226,091 | ||||||||||||
|
Purchased transportation |
38,670 | 32,803 | 144,611 | 118,349 | ||||||||||||
|
Fuel and fuel taxes |
29,189 | 28,284 | 121,633 | 105,390 | ||||||||||||
|
Supplies and maintenance |
9,592 | 9,701 | 40,853 | 41,613 | ||||||||||||
|
Depreciation |
22,305 | 21,245 | 88,585 | 85,120 | ||||||||||||
|
Operating taxes and licenses |
2,418 | 2,180 | 9,473 | 8,993 | ||||||||||||
|
Insurance and claims |
10,859 | 9,487 | 38,657 | 38,585 | ||||||||||||
|
Communications and utilities |
1,641 | 1,516 | 6,634 | 6,047 | ||||||||||||
|
Gain on disposition of revenue equipment |
(2,038 |
) |
(617 |
) |
(7,244 |
) |
(5,499 |
) |
||||||||
|
Other |
5,863 | 4,457 | 21,997 | 16,569 | ||||||||||||
|
Total operating expenses |
184,423 | 168,438 | 717,246 | 641,258 | ||||||||||||
|
Operating income |
19,538 | 14,333 | 70,348 | 56,862 | ||||||||||||
|
Other |
(234 |
) |
109 | (681 |
) |
389 | ||||||||||
|
Income before income taxes |
19,772 | 14,224 | 71,029 | 56,473 | ||||||||||||
|
Income taxes expense (benefit) |
4,035 | (50,850 |
) |
16,002 | (33,811 |
) |
||||||||||
|
Net income |
$ | 15,737 | $ | 65,074 | $ | 55,027 | $ | 90,284 | ||||||||
|
Basic earnings per common share |
$ | 0.29 | $ | 1.19 | $ | 1.01 | $ | 1.66 | ||||||||
|
Diluted earnings per common share |
$ | 0.29 | $ | 1.18 | $ | 1.00 | $ | 1.65 | ||||||||
|
Dividends declared per common share |
$ | 0.025 | $ | 0.025 | $ | 0.10 | $ | 0.08 | ||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
Dollar |
Percentage |
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|
Change |
Change |
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|
Three Months |
Three Months |
Three Months |
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|
Ended |
Ended |
Ended |
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|
December 31, |
December 31, |
December 31, |
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|
(Dollars in thousands) |
2018 |
2017 |
2018 vs. 2017 |
2018 vs. 2017 |
||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 81,020 | $ | 85,469 | $ | (4,449 |
) |
(5.2 |
)% |
|||||||
|
Truckload fuel surcharge revenue |
12,979 | 12,161 | 818 | 6.7 | ||||||||||||
|
Total Truckload revenue |
93,999 | 97,630 | (3,631 |
) |
(3.7 |
) |
||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
49,041 | 39,037 | 10,004 | 25.6 | ||||||||||||
|
Dedicated fuel surcharge revenue |
10,216 | 3,916 | 6,300 | 160.9 | ||||||||||||
|
Total Dedicated revenue |
59,257 | 42,953 | 16,304 | 38.0 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
21,738 | 19,171 | 2,567 | 13.4 | ||||||||||||
|
Intermodal fuel surcharge revenue |
4,226 | 3,254 | 972 | 29.9 | ||||||||||||
|
Total Intermodal revenue |
25,964 | 22,425 | 3,539 | 15.8 | ||||||||||||
|
Brokerage revenue |
24,741 | 19,763 | 4,978 | 25.2 | ||||||||||||
|
Total operating revenue |
$ | 203,961 | $ | 182,771 | $ | 21,190 | 11.6 |
% |
||||||||
|
Operating income: |
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|
Truckload |
$ | 9,537 | $ | 7,077 | $ | 2,460 | 34.8 |
% |
||||||||
|
Dedicated |
5,268 | 2,999 | 2,269 | 75.7 | ||||||||||||
|
Intermodal |
3,153 | 2,526 | 627 | 24.8 | ||||||||||||
|
Brokerage |
1,580 | 1,731 | (151 |
) |
(8.7 |
) |
||||||||||
|
Total operating income |
$ | 19,538 | $ | 14,333 | $ | 5,205 | 36.3 |
% |
||||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
89.9 |
% |
92.8 |
% |
||||||||||||
|
Dedicated |
91.1 | 93.0 | ||||||||||||||
|
Intermodal |
87.9 | 88.7 | ||||||||||||||
|
Brokerage |
93.6 | 91.2 | ||||||||||||||
|
Consolidated operating ratio |
90.4 |
% |
92.2 |
% |
||||||||||||
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
|
Dollar |
Percentage |
|||||||||||||||
|
Change |
Change |
|||||||||||||||
|
Year |
Year |
Year |
||||||||||||||
|
Ended |
Ended |
Ended |
||||||||||||||
|
December 31, |
December 31, |
December 31, |
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|
(Dollars in thousands) |
2018 |
2017 |
2018 vs. 2017 |
2018 vs. 2017 |
||||||||||||
|
Operating revenue: |
||||||||||||||||
|
Truckload revenue, net of fuel surcharge revenue |
$ | 322,324 | $ | 336,596 | $ | (14,272 |
) |
(4.2 |
)% |
|||||||
|
Truckload fuel surcharge revenue |
53,016 | 43,614 | 9,402 | 21.6 | ||||||||||||
|
Total Truckload revenue |
375,340 | 380,210 | (4,870 |
) |
(1.3 |
) |
||||||||||
|
Dedicated revenue, net of fuel surcharge revenue |
187,137 | 153,691 | 33,446 | 21.8 | ||||||||||||
|
Dedicated fuel surcharge revenue |
36,715 | 13,190 | 23,525 | 178.4 | ||||||||||||
|
Total Dedicated revenue |
223,852 | 166,881 | 56,971 | 34.1 | ||||||||||||
|
Intermodal revenue, net of fuel surcharge revenue |
85,572 | 70,282 | 15,290 | 21.8 | ||||||||||||
|
Intermodal fuel surcharge revenue |
16,453 | 10,339 | 6,114 | 59.1 | ||||||||||||
|
Total Intermodal revenue |
102,025 | 80,621 | 21,404 | 26.5 | ||||||||||||
|
Brokerage revenue |
86,377 | 70,408 | 15,969 | 22.7 | ||||||||||||
|
Total operating revenue |
$ | 787,594 | $ | 698,120 | $ | 89,474 | 12.8 |
% |
||||||||
|
Operating income: |
||||||||||||||||
|
Truckload |
$ | 35,067 | $ | 26,326 | $ | 8,741 | 33.2 |
% |
||||||||
|
Dedicated |
18,589 | 17,074 | 1,515 | 8.9 | ||||||||||||
|
Intermodal |
11,150 | 8,303 | 2,847 | 34.3 | ||||||||||||
|
Brokerage |
5,542 | 5,159 | 383 | 7.4 | ||||||||||||
|
Total operating income |
$ | 70,348 | $ | 56,862 | $ | 13,486 | 23.7 |
% |
||||||||
|
Operating ratio: |
||||||||||||||||
|
Truckload |
90.7 |
% |
93.1 |
% |
||||||||||||
|
Dedicated |
91.7 | 89.8 | ||||||||||||||
|
Intermodal |
89.1 | 89.7 | ||||||||||||||
|
Brokerage |
93.6 | 92.7 | ||||||||||||||
|
Consolidated operating ratio |
91.1 |
% |
91.9 |
% |
||||||||||||
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
|
Three Months |
Year |
|||||||||||||||
|
Ended December 31, |
Ended December 31, |
|||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
|||||||||||||
|
Truckload Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 93,999 | $ | 97,630 | $ | 375,340 | $ | 380,210 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,941 | $ | 3,700 | $ | 3,833 | $ | 3,514 | ||||||||
|
Average tractors(1) |
1,564 | 1,758 | 1,613 | 1,837 | ||||||||||||
|
Average miles per trip |
558 | 601 | 573 | 599 | ||||||||||||
|
Non-revenue miles percentage(2) |
11.4 |
% |
6.2 |
% |
9.5 |
% |
8.3 |
% |
||||||||
|
Total miles (in thousands) |
36,171 | 43,624 | 153,514 | 178,760 | ||||||||||||
|
Dedicated Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 59,257 | $ | 42,953 | $ | 223,852 | $ | 166,881 | ||||||||
|
Average revenue, net of fuel surcharges, per tractor per week(1) |
$ | 3,360 | $ | 3,535 | $ | 3,300 | $ | 3,481 | ||||||||
|
Average tractors(1) |
1,111 | 840 | 1,088 | 847 | ||||||||||||
|
Average miles per trip |
321 | 296 | 309 | 297 | ||||||||||||
|
Non-revenue miles percentage(2) |
0.5 |
% |
1.1 |
% |
0.7 |
% |
0.8 |
% |
||||||||
|
Total miles (in thousands) |
24,025 | 19,461 | 93,269 | 77,102 | ||||||||||||
|
Intermodal Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 25,964 | $ | 22,425 | $ | 102,025 | $ | 80,621 | ||||||||
|
Loads |
10,493 | 10,554 | 42,425 | 40,196 | ||||||||||||
|
Average tractors |
91 | 78 | 88 | 79 | ||||||||||||
|
Brokerage Segment: |
||||||||||||||||
|
Revenue (in thousands) |
$ | 24,741 | $ | 19,763 | $ | 86,377 | $ | 70,408 | ||||||||
|
Loads |
14,314 | 11,667 | 51,104 | 48,271 | ||||||||||||
|
At December 31, 2018 and December 31, 2017: |
||||||||||||||||
|
Total tractors(1) |
2,755 | 2,738 | ||||||||||||||
|
Average age of company tractors (in years) |
1.7 | 1.5 | ||||||||||||||
|
Total trailers |
5,347 | 4,909 | ||||||||||||||
|
Average age of company trailers (in years) |
2.5 | 2.8 | ||||||||||||||
|
Ratio of trailers to tractors(1) |
1.9 | 1.8 | ||||||||||||||
|
Three Months |
Year |
|||||||||||||||
|
Ended December 31, |
Ended December 31, |
|||||||||||||||
|
(In thousands) |
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
Net cash provided by operating activities |
$ | 38,526 | $ | 27,169 | $ | 150,623 | $ | 121,879 | ||||||||
|
Net cash (used for) investing activities |
(12,428 |
) |
(11,303 |
) |
(101,270 |
) |
(95,318 |
) |
||||||||
|
Net cash (used for) financing activities |
(5,074 |
) |
(1,234 |
) |
(8,381 |
) |
(11,258 |
) |
||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
54,514 | 54,529 | 54,590 | 54,492 | ||||||||||||
|
Diluted |
55,014 | 54,979 | 55,149 | 54,850 | ||||||||||||
|
(1) |
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 46 and 60 tractors as of December 31, 2018 and 2017, respectively. |
|
|
|
|
(2) |
Represents the percentage of miles for which the company is not compensated. |