MRTN - Marten Transport Announces Second Quarter Results and Declares Three-for-Two Stock Split and Regular Quarterly Dividend With a 50% Increase in Cash Payout

July, 16 2020 04:02 PM Marten Transport Ltd.

MONDOVI, Wis., July 16, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 19.4% improvement in net income to $18.1 million, or 33 cents per diluted share, for the second quarter ended June 30, 2020, from $15.2 million, or 28 cents per diluted share, for the second quarter of 2019. For the first six months of 2020, net income improved 10.8% to $31.9 million, or 58 cents per diluted share, from $28.7 million, or 52 cents per diluted share, for the first six months of 2019.

Marten Transport also announced today that its Board of Directors has declared a three-for-two stock split of the company’s common stock and a regular quarterly cash dividend of $0.04 per share of common stock. The stock split, while maintaining the current quarterly cash dividend amount per share, effectively increases the cash payout to stockholders by 50%.






Operating Results Comparison











Percentage

Percentage






Increase

Increase






Three Months

Six Months






Ended

Ended






June 30,

June 30,






2020 vs. 2019

2020 vs. 2019














Operating revenue




0.1
%

4.8
%














Operating revenue, net of fuel surcharges




4.7
%

7.4
%














Operating income




26.6
%

14.9
%














Net income




19.4
%

10.8
%

Operating revenue improved to $212.4 million for the second quarter of 2020 from $212.1 million for the second quarter of 2019, and improved 4.8% to $431.0 million for the first six months of 2020 from $411.1 million for the first six months of 2019. Excluding fuel surcharges, operating revenue improved 4.7% to $194.0 million for the 2020 quarter from $185.4 million for the 2019 quarter, and improved 7.4% to $387.4 million for the first six months of 2020 from $360.8 million for the first six months of 2019. Fuel surcharge revenue decreased to $18.3 million for the 2020 quarter from $26.7 million for the 2019 quarter and decreased to $43.6 million for the first six months of 2020 from $50.3 million for the first six months of 2019 due to significantly lower fuel prices.

Operating income improved 26.6% to a record $25.3 million for the second quarter of 2020 from $19.9 million for the second quarter of 2019. This quarter’s operating income was the highest for any quarter in Marten’s history, and was also a record excluding a $3.0 million, or 4 cents per diluted share, benefit from reduced net fuel expense as a percentage of revenue from the second quarter of 2019 to 2020. Operating income improved 14.9% to $43.3 million for the first six months of 2020 from $37.7 million for the first six months of 2019.

Operating expenses as a percentage of operating revenue improved to 88.1% for the second quarter of 2020 from 90.6% for the second quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 89.2%.

Operating expenses as a percentage of operating revenue improved to 90.0% for the first six months of 2020 from 90.8% for the first six months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.8% from 89.6%.

Chairman and Chief Executive Officer Randolph L. Marten said, “To each of our over 4,100 talented, hard-working drivers, maintenance personnel and employees across all functions and regions, you should be extremely proud of the strong results that you consistently drive, and of the record operating income in the second quarter that you earned. I sure am. Within an environment of significantly fluctuating customer freight volumes, we improved our Truckload miles per tractor by 4.8% over the second quarter of 2019 through our adaptive, continual redeployment of our drivers to match the changing freight demand by lane while minimizing empty miles. We plan on pursuing profitable growth opportunities in the second half of this year. We embrace our responsibility to keep our valued employees safe and healthy as they each contribute to our transporting and distributing the food, beverages and other consumer goods essential to millions of people in North America.”

“I am also pleased to announce this stock split which reflects our continued strong financial condition. The increased number of outstanding shares should increase trading activity, or float, in our common stock while our stockholders benefit from the 50% increase in our quarterly dividend cash payout.”

The three-for-two stock split of the company’s common stock will be effected in the form of a stock dividend payable on August 13, 2020 to stockholders of record as of July 30, 2020. Holders of the company’s common stock will receive an additional one-half share for each outstanding share of common stock held as of the record date. The stock split will increase the number of outstanding shares of common stock from approximately 55.1 million to approximately 82.7 million shares.

The regular quarterly cash dividend of $0.04 per share of common stock will be payable on September 30, 2020 to stockholders of record at the close of business on September 16, 2020. This is Marten’s 41^st consecutive quarterly cash dividend. With the payment of this dividend, Marten will have paid a total of $93.6 million in cash dividends, including special dividends totaling $52.1 million in 2019 and 2012, since the dividend program was implemented in 2010.

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 the Company’s prospects for future growth and current expectations concerning future payment of dividends. 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 Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 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



June 30,


December 31,

(In thousands, except share information)

2020


2019




(Unaudited)





ASSETS








Current assets:








Cash and cash equivalents

$
75,323


$
31,461

Receivables:








Trade, net


83,854



90,712

Other


12,639



11,055

Prepaid expenses and other


22,906



20,938

Total current assets


194,722



154,166










Property and equipment:








Revenue equipment, buildings and land, office equipment and other


920,608



904,237

Accumulated depreciation


(276,412
)


(263,843
)
Net property and equipment


644,196



640,394

Other noncurrent assets


1,916



2,026

Total assets

$
840,834


$
796,586










LIABILITIES AND STOCKHOLDERS’ EQUITY








Current liabilities:








Accounts payable

$
26,176


$
22,917

Insurance and claims accruals


35,834



31,729

Accrued and other current liabilities


25,569



21,680

Total current liabilities


87,579



76,326

Deferred income taxes


123,285



122,022

Noncurrent operating lease liabilities


572



649

Total liabilities


211,436



198,997










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; 55,107,805 shares at June 30, 2020, and 54,703,466 shares at December 31, 2019, issued and outstanding


551



547

Additional paid-in capital


83,816



79,465

Retained earnings


545,031



517,577

Total stockholders’ equity


629,398



597,589

Total liabilities and stockholders’ equity

$
840,834


$
796,586

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)



Three Months


Six Months



Ended June 30,


Ended June 30,

(In thousands, except per share information)

2020


2019


2020


2019


















Operating revenue

$
212,384


$
212,090


$
431,030


$
411,113


















Operating expenses (income):
















Salaries, wages and benefits


73,476



68,613



146,237



132,137

Purchased transportation


36,165



38,668



76,610



76,917

Fuel and fuel taxes


20,868



30,952



49,165



58,629

Supplies and maintenance


11,833



11,502



24,061



22,623

Depreciation


25,972



23,462



51,399



46,005

Operating taxes and licenses


2,615



2,438



5,254



4,771

Insurance and claims


11,633



9,862



23,917



19,737

Communications and utilities


1,977



1,950



3,962



3,900

Gain on disposition of revenue equipment


(2,216
)


(1,230
)


(3,771
)


(2,778
)
Other


4,805



5,929



10,908



11,495


















Total operating expenses


187,128



192,146



387,742



373,436


















Operating income


25,256



19,944



43,288



37,677


















Other


(13
)


(395
)


(110
)


(673
)

















Income before income taxes


25,269



20,339



43,398



38,350


















Income taxes expense


7,135



5,149



11,546



9,614


















Net income

$
18,134


$
15,190


$
31,852


$
28,736


















Basic earnings per common share

$
0.33


$
0.28


$
0.58


$
0.53


















Diluted earnings per common share

$
0.33


$
0.28


$
0.58


$
0.52


















Dividends declared per common share

$
0.04


$
0.03


$
0.08


$
0.06

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)











Dollar


Percentage











Change


Change



Three Months


Three Months


Three Months



Ended


Ended


Ended



June 30,


June 30,


June 30,

(Dollars in thousands)

2020


2019


2020 vs. 2019


2020 vs. 2019

Operating revenue:
















Truckload revenue, net of fuel surcharge revenue

$
85,966


$
83,215


$
2,751



3.3
%
Truckload fuel surcharge revenue


8,234



12,807



(4,573
)


(35.7
)
Total Truckload revenue


94,200



96,022



(1,822
)


(1.9
)

















Dedicated revenue, net of fuel surcharge revenue


67,076



56,160



10,916



19.4

Dedicated fuel surcharge revenue


8,351



10,850



(2,499
)


(23.0
)
Total Dedicated revenue


75,427



67,010



8,417



12.6


















Intermodal revenue, net of fuel surcharge revenue


18,542



17,527



1,015



5.8

Intermodal fuel surcharge revenue


1,759



3,076



(1,317
)


(42.8
)
Total Intermodal revenue


20,301



20,603



(302
)


(1.5
)

















Brokerage revenue


22,456



28,455



(5,999
)


(21.1
)

















Total operating revenue

$
212,384


$
212,090


$
294



0.1
%

















Operating income:
















Truckload

$
11,036


$
8,045


$
2,991



37.2
%
Dedicated


11,452



7,700



3,752



48.7

Intermodal


954



1,536



(582
)


(37.9
)
Brokerage


1,814



2,663



(849
)


(31.9
)
Total operating income

$
25,256


$
19,944


$
5,312



26.6
%

















Operating ratio:
















Truckload


88.3
%


91.6
%








Dedicated


84.8



88.5









Intermodal


95.3



92.5









Brokerage


91.9



90.6









Consolidated operating ratio


88.1
%


90.6
%

MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)











Dollar


Percentage











Change


Change



Six Months


Six Months


Six Months



Ended


Ended


Ended



June 30,


June 30,


June 30,

(Dollars in thousands)

2020


2019


2020 vs. 2019


2020 vs. 2019

Operating revenue:
















Truckload revenue, net of fuel surcharge revenue

$
169,823


$
163,382


$
6,441



3.9
%
Truckload fuel surcharge revenue


19,509



24,362



(4,853
)


(19.9
)
Total Truckload revenue


189,332



187,744



1,588



0.8


















Dedicated revenue, net of fuel surcharge revenue


131,235



105,084



26,151



24.9

Dedicated fuel surcharge revenue


19,229



19,651



(422
)


(2.1
)
Total Dedicated revenue


150,464



124,735



25,729



20.6


















Intermodal revenue, net of fuel surcharge revenue


39,136



37,282



1,854



5.0

Intermodal fuel surcharge revenue


4,845



6,292



(1,447
)


(23.0
)
Total Intermodal revenue


43,981



43,574



407



0.9


















Brokerage revenue


47,253



55,060



(7,807
)


(14.2
)

















Total operating revenue

$
431,030


$
411,113


$
19,917



4.8
%

















Operating income:
















Truckload

$
17,821


$
15,600


$
2,221



14.2
%
Dedicated


19,985



13,215



6,770



51.2

Intermodal


2,260



3,930



(1,670
)


(42.5
)
Brokerage


3,222



4,932



(1,710
)


(34.7
)
Total operating income

$
43,288


$
37,677


$
5,611



14.9
%

















Operating ratio:
















Truckload


90.6
%


91.7
%








Dedicated


86.7



89.4









Intermodal


94.9



91.0









Brokerage


93.2



91.0









Consolidated operating ratio


90.0
%


90.8
%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)



Three Months


Six Months



Ended June 30,


Ended June 30,



2020


2019


2020


2019

Truckload Segment:
















Revenue (in thousands)

$
94,200


$
96,022


$
189,332


$
187,744

Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾

$
3,829


$
3,876


$
3,821


$
3,867

Average tractors⁽¹⁾


1,727



1,652



1,710



1,634

Average miles per trip


557



532



558



546

Non-revenue miles percentage⁽²⁾


10.9
%


11.1
%


11.0
%


11.2
%
Total miles (in thousands)


42,833



39,077



83,872



76,313


















Dedicated Segment:
















Revenue (in thousands)

$
75,427


$
67,010


$
150,464


$
124,735

Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾

$
3,314


$
3,460


$
3,309


$
3,424

Average tractors⁽¹⁾


1,557



1,248



1,525



1,187

Average miles per trip


307



314



306



318

Non-revenue miles percentage⁽²⁾


0.8
%


0.7
%


0.8
%


0.7
%
Total miles (in thousands)


33,174



27,198



64,710



50,841


















Intermodal Segment:
















Revenue (in thousands)

$
20,301


$
20,603


$
43,981


$
43,574

Loads


8,693



8,430



18,430



17,681

Average tractors


98



81



99



84


















Brokerage Segment:
















Revenue (in thousands)

$
22,456


$
28,455


$
47,253


$
55,060

Loads


15,280



16,185



31,388



31,451


















At June 30, 2020 and June 30, 2019:
















Total tractors⁽¹⁾


3,313



3,047









Average age of company tractors (in years)


1.8



1.9









Total trailers


5,364



5,437









Average age of company trailers (in years)


2.7



2.6









Ratio of trailers to tractors⁽¹⁾


1.6



1.8



Three Months


Six Months



Ended June 30,


Ended June 30,

(In thousands)

2020


2019


2020


2019


















Net cash provided by operating activities

$
60,587


$
37,473


$
104,067


$
75,101

Net cash (used for) investing activities


(22,558
)


(39,034
)


(59,190
)


(45,770
)
Net cash provided by (used for) financing activities


1,158



(1,173
)


(1,015
)


(3,302
)

















Weighted average shares outstanding:
















Basic


55,018



54,616



54,914



54,585

Diluted


55,422



55,081



55,345



55,055

(1
)
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 124 and 55 tractors as of June 30, 2020 and 2019, respectively.


(2
)
Represents the percentage of miles for which the company is not compensated.

Company Name:	Marten Transport Ltd.
Stock Symbol:	MRTN
Market:	NASDAQ
Website:	marten.com

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