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Marten Transport Announces First Quarter Results
Source: Nasdaq GlobeNewswire / 19 Apr 2022 16:02:00 America/New_York
MONDOVI, Wis., April 19, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 52.9% improvement in net income to $27.5 million, or 33 cents per diluted share, for the first quarter ended March 31, 2022, from $18.0 million, or 22 cents per diluted share, for the first quarter of 2021. The 2022 first-quarter earnings also improved 11.3% sequentially from 2021 fourth-quarter net income of $24.7 million, or 30 cents per diluted share.
Operating Results Comparison Percentage Percentage Percentage Percentage Increase Increase Increase Increase Three Months Year Year Year Ended Ended Ended Ended March 31, December 31, December 31, December 31, 2022 vs. 2021 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 Operating revenue 28.8 % 11.4 % 3.7 % 7.1 % Operating revenue, net of fuel surcharges 23.8 % 8.3 % 6.8 % 8.6 % Operating income 49.4 % 19.8 % 21.9 % 8.7 % Net income 52.9 % 22.9 % 13.8 % 11.0 % Operating revenue for the first quarter of 2022 was the highest amount for any quarter in Marten’s 77-year history. Operating revenue improved 28.8% to $287.3 million for the first quarter of 2022 from $223.0 million for the first quarter of 2021 - and improved 7.6% from Marten’s previous best of $266.9 million for the 2021 fourth quarter. Excluding fuel surcharges, operating revenue improved 23.8% to $245.3 million for the 2022 quarter from $198.2 million for the 2021 quarter - and improved 5.3% from $232.9 million for the 2021 fourth quarter. Fuel surcharge revenue increased to $42.0 million for the 2022 quarter from $24.9 million for the 2021 quarter due to significantly higher fuel prices.
Operating income for the first quarter of 2022 was also the highest amount for any quarter in Marten’s history. Operating income improved 49.4% to $35.9 million for the first quarter of 2022 from $24.0 million for the first quarter of 2021 - and improved 16.9% from Marten’s previous best of $30.7 million for the 2021 fourth quarter.
Operating expenses as a percentage of operating revenue improved to 87.5% for the first quarter of 2022 from 89.2% for the first quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.4% for the 2022 quarter, the best ratio for any quarter since Marten became a public company in 1986, from 87.9% for the 2021 quarter.
Executive Chairman Randolph L. Marten stated, “Our talented and determined people capitalized on the continuing tight freight market to hit the trifecta this quarter, producing our highest operating revenue and operating income for any quarter in our history, along with our best operating ratio, net of fuel surcharges, for any quarter since we became a public company in 1986.”
“We also provided momentum to the rest of this year to continue our consistent, strong profitable growth. We began this year’s second quarter with 128 more of the industry’s top drivers than we employed at the beginning of the year, despite the unrelenting national shortage of qualified drivers. We also added 95 refrigerated containers during the first quarter, increasing our fleet to 729 containers as of March 31st.”
“Additionally, reflecting our confidence in Marten’s financial strength and commitment to enhancing stockholder value, we repurchased and retired 1.3 million shares of our common stock for $25 million and increased our regular quarterly cash dividend by 50% during the first quarter of 2022.”
Operating Results throughout the Pandemic – Percentage Increase Over Same Quarter of Prior Year Q1
2022Q4
2021Q3
2021Q2
2021Q1
2021Q4
2020Q3
2020Q2
2020Operating revenue 28.8% 17.4% 16.3% 9.4% 2.0% 4.7% 0.5% 0.1% Operating revenue, net of fuel surcharges 23.8% 12.5% 12.8% 5.0% 2.5% 8.8% 3.8% 4.7% Operating income 49.4% 20.0% 16.8% 12.9% 33.1% 36.0% 21.8% 26.6% Net income 52.9% 26.1% 17.9% 18.1% 31.3% 24.5% 8.8% 19.4% 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, 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, 2021. 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 SHEETSMarch 31, December 31, (In thousands, except share information) 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 66,527 $ 56,995 Receivables: Trade, net 126,815 99,003 Other 4,317 6,971 Prepaid expenses and other 22,375 23,980 Total current assets 220,034 186,949 Property and equipment: Revenue equipment, buildings and land, office equipment and other 955,760 956,476 Accumulated depreciation (291,941 ) (274,199 ) Net property and equipment 663,819 682,277 Other noncurrent assets 1,545 1,464 Total assets $ 885,398 $ 870,690 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 29,158 $ 20,150 Insurance and claims accruals 42,592 42,014 Accrued and other current liabilities 37,632 31,395 Total current liabilities 109,382 93,559 Deferred income taxes 126,918 125,163 Noncurrent operating lease liabilities 336 291 Total liabilities 236,636 219,013 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; 81,946,875 shares at March 31, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding 819 830 Additional paid-in capital 60,256 85,718 Retained earnings 587,687 565,129 Total stockholders’ equity 648,762 651,677 Total liabilities and stockholders’ equity $ 885,398 $ 870,690 MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Ended March 31, (In thousands, except per share information) 2022 2021 Operating revenue $ 287,281 $ 223,046 Operating expenses (income): Salaries, wages and benefits 89,349 72,998 Purchased transportation 57,310 40,765 Fuel and fuel taxes 44,368 28,937 Supplies and maintenance 12,313 11,015 Depreciation 26,143 25,687 Operating taxes and licenses 2,640 2,712 Insurance and claims 12,704 11,446 Communications and utilities 2,265 2,083 Gain on disposition of revenue equipment (4,540 ) (1,984 ) Other 8,871 5,389 Total operating expenses 251,423 199,048 Operating income 35,858 23,998 Other (7 ) (10 ) Income before income taxes 35,865 24,008 Income taxes expense 8,332 6,002 Net income $ 27,533 $ 18,006 Basic earnings per common share $ 0.33 $ 0.22 Diluted earnings per common share $ 0.33 $ 0.22 Dividends declared per common share $ 0.06 $ 0.04 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) 2022 2021 2022 vs. 2021 2022 vs. 2021 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 95,170 $ 83,919 $ 11,251 13.4 % Truckload fuel surcharge revenue 17,620 10,996 6,624 60.2 Total Truckload revenue 112,790 94,915 17,875 18.8 Dedicated revenue, net of fuel surcharge revenue 78,421 66,902 11,519 17.2 Dedicated fuel surcharge revenue 18,339 11,335 7,004 61.8 Total Dedicated revenue 96,760 78,237 18,523 23.7 Intermodal revenue, net of fuel surcharge revenue 25,605 19,446 6,159 31.7 Intermodal fuel surcharge revenue 6,037 2,558 3,479 136.0 Total Intermodal revenue 31,642 22,004 9,638 43.8 Brokerage revenue 46,089 27,890 18,199 65.3 Total operating revenue $ 287,281 $ 223,046 $ 64,235 28.8 % Operating income: Truckload $ 15,571 $ 11,415 $ 4,156 36.4 % Dedicated 10,645 8,936 1,709 19.1 Intermodal 5,036 1,461 3,575 244.7 Brokerage 4,606 2,186 2,420 110.7 Total operating income $ 35,858 $ 23,998 $ 11,860 49.4 % Operating ratio: Truckload 86.2 % 88.0 % Dedicated 89.0 88.6 Intermodal 84.1 93.4 Brokerage 90.0 92.2 Consolidated operating ratio 87.5 % 89.2 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Ended March 31, 2022 2021 Truckload Segment: Revenue (in thousands) $ 112,790 $ 94,915 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,977 $ 4,057 Average tractors(1) 1,487 1,609 Average miles per trip 520 534 Non-revenue miles percentage(2) 10.4 % 10.3 % Total miles (in thousands) 35,372 38,283 Dedicated Segment: Revenue (in thousands) $ 96,760 $ 78,237 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,851 $ 3,214 Average tractors(1) 1,584 1,619 Average miles per trip 341 307 Non-revenue miles percentage(2) 1.2 % 0.8 % Total miles (in thousands) 32,753 31,999 Intermodal Segment: Revenue (in thousands) $ 31,642 $ 22,004 Loads 8,294 7,982 Average tractors 162 134 Brokerage Segment: Revenue (in thousands) $ 46,089 $ 27,890 Loads 19,684 14,575 At March 31, 2022 and March 31, 2021: Total tractors(1) 3,274 3,361 Average age of company tractors (in years) 1.6 1.6 Total trailers 5,428 5,344 Average age of company trailers (in years) 3.5 3.2 Ratio of trailers to tractors(1) 1.7 1.6 Total refrigerated containers 729 487 Three Months Ended March 31, (In thousands) 2022 2021 Net cash provided by operating activities $ 39,940 $ 43,570 Net cash provided by/(used for) investing activities 409 (17,417 ) Net cash (used for) financing activities (30,817 ) (3,697 ) Weighted average shares outstanding: Basic 82,938 82,758 Diluted 83,246 83,359 (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 87 and 133 tractors as of March 31, 2022 and 2021, respectively. (2) Represents the percentage of miles for which the company is not compensated. 
