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Marten Transport Announces Fourth Quarter and Year End Results
Source: Nasdaq GlobeNewswire / 25 Jan 2022 16:01:01 America/New_York
MONDOVI, Wis., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 26.1% improvement in net income to $24.7 million, or 30 cents per diluted share, for the fourth quarter ended December 31, 2021, from $19.6 million, or 24 cents per diluted share, for the fourth quarter of 2020. The fourth-quarter earnings also improved sequentially from 2021 third-quarter net income of $21.3 million, or 26 cents per diluted share. For the year ended December 31, 2021, net income improved 22.9% to $85.4 million, or $1.02 per diluted share, from $69.5 million, or 84 cents per diluted share, for 2020.
Operating Results Comparison Percentage Percentage Percentage Percentage Increase Increase Increase Increase Three Months Year Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2021 vs. 2020 2021 vs. 2020 2020 vs. 2019 2019 vs. 2018 Operating revenue 17.4 % 11.4 % 3.7 % 7.1 % Operating revenue, net of fuel surcharges 12.5 % 8.3 % 6.8 % 8.6 % Operating income 20.0 % 19.8 % 21.9 % 8.7 % Net income 26.1 % 22.9 % 13.8 % 11.0 % Operating revenue for each of the quarter and year ended December 31, 2021 was the highest amount for any quarter and year in Marten’s 76-year history. Operating revenue improved 17.4% to $266.9 million for the fourth quarter of 2021 from $227.3 million for the fourth quarter of 2020, and improved 11.4% to $973.6 million for 2021 from $874.4 million for 2020. Excluding fuel surcharges, operating revenue improved 12.5% to $232.9 million for the 2021 quarter from $207.0 million for the 2020 quarter, and improved 8.3% to $855.9 million for 2021 from $790.6 million for 2020. Fuel surcharge revenue increased to $34.0 million for the 2021 quarter from $20.4 million for the 2020 quarter, and increased to $117.7 million for 2021 from $83.8 million for 2020 due to significantly higher fuel prices.
Operating income for each of the quarter and year ended December 31, 2021 was also the highest amount for any quarter and year in Marten’s history. Operating income improved 20.0% to $30.7 million for the fourth quarter of 2021 from $25.6 million for the fourth quarter of 2020. Operating income improved 19.8% to $111.7 million for 2021 from $93.2 million for 2020.
Operating expenses as a percentage of operating revenue improved to 88.5% for the fourth quarter of 2021 from 88.8% for the fourth quarter of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.8% from 87.7%.
Operating expenses as a percentage of operating revenue improved to 88.5% for 2021 from 89.3% for 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0%, the best ratio for any year since Marten became a public company in 1986, from 88.2%.
Executive Chairman Randolph L. Marten stated, “Marten’s bright and determined people consistently produce strong profitable growth, to be continued…”
Operating Results throughout the Pandemic – Percentage Increase Over Same Quarter of Prior Year Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Operating revenue 0.1 % 0.5 % 4.7 % 2.0 % 9.4 % 16.3 % 17.4 % Operating revenue, net of fuel surcharges 4.7 % 3.8 % 8.8 % 2.5 % 5.0 % 12.8 % 12.5 % Operating income 26.6 % 21.8 % 36.0 % 33.1 % 12.9 % 16.8 % 20.0 % Net income 19.4 % 8.8 % 24.5 % 31.3 % 18.1 % 17.9 % 26.1 % 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 and in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 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 SHEETSDecember 31, December 31, (In thousands, except share information) 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 56,995 $ 66,127 Receivables: Trade, net 99,003 83,426 Other 6,971 4,202 Prepaid expenses and other 23,980 21,903 Total current assets 186,949 175,658 Property and equipment: Revenue equipment, buildings and land, office equipment and other 956,476 930,123 Accumulated depreciation (274,199 ) (275,950 ) Net property and equipment 682,277 654,173 Other noncurrent assets 1,464 1,805 Total assets $ 870,690 $ 831,636 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 20,150 $ 25,702 Insurance and claims accruals 42,014 39,595 Accrued and other current liabilities 31,395 24,497 Total current liabilities 93,559 89,794 Deferred income taxes 125,163 121,098 Noncurrent operating lease liabilities 291 411 Total liabilities 219,013 211,303 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; 83,034,404 shares at December 31, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding 830 827 Additional paid-in capital 85,718 85,070 Retained earnings 565,129 534,436 Total stockholders’ equity 651,677 620,333 Total liabilities and stockholders’ equity $ 870,690 $ 831,636 MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Year Ended December 31, Ended December 31, (In thousands, except per share information) 2021 2020 2021 2020 Operating revenue $ 266,876 $ 227,333 $ 973,644 $ 874,374 Operating expenses (income): Salaries, wages and benefits 88,577 79,121 317,962 300,155 Purchased transportation 54,592 40,937 193,221 154,613 Fuel and fuel taxes 36,435 24,700 131,288 98,133 Supplies and maintenance 11,592 11,314 45,459 47,815 Depreciation 25,964 25,914 102,562 102,893 Operating taxes and licenses 2,498 2,837 10,534 10,840 Insurance and claims 10,649 12,294 41,987 47,454 Communications and utilities 2,030 2,050 8,350 8,011 Gain on disposition of revenue equipment (4,436 ) (2,834 ) (16,295 ) (8,733 ) Gain on disposition of facility - - - (1,718 ) Other 8,298 5,442 26,887 21,665 Total operating expenses 236,199 201,775 861,955 781,128 Operating income 30,677 25,558 111,689 93,246 Other (16 ) (13 ) (43 ) (140 ) Income before income taxes 30,693 25,571 111,732 93,386 Income taxes expense 5,963 5,967 26,304 23,886 Net income $ 24,730 $ 19,604 $ 85,428 $ 69,500 Basic earnings per common share $ 0.30 $ 0.24 $ 1.03 $ 0.84 Diluted earnings per common share $ 0.30 $ 0.24 $ 1.02 $ 0.84 Dividends declared per common share $ 0.04 $ 0.54 $ 0.66 $ 0.633 MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)Dollar Percentage Change Change Three Months Three Months Three Months Ended Ended Ended December 31, December 31, December 31, (Dollars in thousands) 2021 2020 2021 vs. 2020 2021 vs. 2020 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 91,848 $ 87,460 $ 4,388 5.0 % Truckload fuel surcharge revenue 14,345 8,733 5,612 64.3 Total Truckload revenue 106,193 96,193 10,000 10.4 Dedicated revenue, net of fuel surcharge revenue 73,928 71,313 2,615 3.7 Dedicated fuel surcharge revenue 14,994 9,670 5,324 55.1 Total Dedicated revenue 88,922 80,983 7,939 9.8 Intermodal revenue, net of fuel surcharge revenue 23,275 20,817 2,458 11.8 Intermodal fuel surcharge revenue 4,627 1,959 2,668 136.2 Total Intermodal revenue 27,902 22,776 5,126 22.5 Brokerage revenue 43,859 27,381 16,478 60.2 Total operating revenue $ 266,876 $ 227,333 $ 39,543 17.4 % Operating income: Truckload $ 14,750 $ 11,270 $ 3,480 30.9 % Dedicated 8,321 9,900 (1,579 ) (15.9 ) Intermodal 3,328 2,166 1,162 53.6 Brokerage 4,278 2,222 2,056 92.5 Total operating income $ 30,677 $ 25,558 $ 5,119 20.0 % Operating ratio: Truckload 86.1 % 88.3 % Dedicated 90.6 87.8 Intermodal 88.1 90.5 Brokerage 90.2 91.9 Consolidated operating ratio 88.5 % 88.8 % MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)Dollar Percentage Change Change Year Year Year Ended Ended Ended December 31, December 31, December 31, (Dollars in thousands) 2021 2020 2021 vs. 2020 2021 vs. 2020 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 346,289 $ 342,357 $ 3,932 1.1 % Truckload fuel surcharge revenue 50,377 36,791 13,586 36.9 Total Truckload revenue 396,666 379,148 17,518 4.6 Dedicated revenue, net of fuel surcharge revenue 276,883 271,550 5,333 2.0 Dedicated fuel surcharge revenue 52,559 38,234 14,325 37.5 Total Dedicated revenue 329,442 309,784 19,658 6.3 Intermodal revenue, net of fuel surcharge revenue 87,468 79,944 7,524 9.4 Intermodal fuel surcharge revenue 14,777 8,789 5,988 68.1 Total Intermodal revenue 102,245 88,733 13,512 15.2 Brokerage revenue 145,291 96,709 48,582 50.2 Total operating revenue $ 973,644 $ 874,374 $ 99,270 11.4 % Operating income: Truckload $ 51,032 $ 39,637 $ 11,395 28.7 % Dedicated 36,395 40,909 (4,514 ) (11.0 ) Intermodal 9,479 5,730 3,749 65.4 Brokerage 14,783 6,970 7,813 112.1 Total operating income $ 111,689 $ 93,246 $ 18,443 19.8 % Operating ratio: Truckload 87.1 % 89.5 % Dedicated 89.0 86.8 Intermodal 90.7 93.5 Brokerage 89.8 92.8 Consolidated operating ratio 88.5 % 89.3 % MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)Three Months Year Ended December 31, Ended December 31, 2021 2020 2021 2020 Truckload Segment: Revenue (in thousands) $ 106,193 $ 96,193 $ 396,666 $ 379,148 Average revenue, net of fuel surcharges, per tractor per week(1) $ 4,663 $ 4,116 $ 4,315 $ 3,926 Average tractors(1) 1,499 1,617 1,539 1,668 Average miles per trip 515 526 516 547 Non-revenue miles percentage(2) 10.4 % 10.4 % 10.1 % 10.7 % Total miles (in thousands) 35,679 40,185 147,192 165,267 Dedicated Segment: Revenue (in thousands) $ 88,922 $ 80,983 $ 329,442 $ 309,784 Average revenue, net of fuel surcharges, per tractor per week(1) $ 3,592 $ 3,350 $ 3,377 $ 3,316 Average tractors(1) 1,566 1,620 1,572 1,566 Average miles per trip 330 303 322 305 Non-revenue miles percentage(2) 1.2 % 0.7 % 1.0 % 0.7 % Total miles (in thousands) 32,491 34,044 128,256 132,597 Intermodal Segment: Revenue (in thousands) $ 27,902 $ 22,776 $ 102,245 $ 88,733 Loads 8,102 8,708 32,987 36,444 Average tractors 152 125 143 106 Brokerage Segment: Revenue (in thousands) $ 43,859 $ 27,381 $ 145,291 $ 96,709 Loads 19,345 13,928 66,512 58,986 At December 31, 2021 and December 31, 2020: Total tractors(1) 3,204 3,331 Average age of company tractors (in years) 1.4 1.6 Total trailers 5,299 5,395 Average age of company trailers (in years) 3.3 3.0 Ratio of trailers to tractors(1) 1.7 1.6 Total refrigerated containers 634 433 Three Months Year Ended December 31, Ended December 31, (In thousands) 2021 2020 2021 2020 Net cash provided by operating activities $ 43,295 $ 34,891 $ 171,204 $ 189,598 Net cash (used for) investing activities (21,592 ) (12,577 ) (123,734 ) (106,325 ) Net cash (used for) financing activities (48,608 ) (44,466 ) (56,602 ) (48,607 ) Weighted average shares outstanding: Basic 82,983 82,690 82,872 82,527 Diluted 83,420 83,311 83,408 83,164 (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 93 and 143 tractors as of December 31, 2021 and 2020, respectively. (2) Represents the percentage of miles for which the company is not compensated. 
