Marten Transport Announces Fourth Quarter and Year End Results

·12 min read

Reports highest operating revenue and operating income for any quarter and year in Marten’s history

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

%


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 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 SHEETS

December 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.


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