Marten Transport Announces Fourth Quarter and Year End Results
By: GlobeNewswire | Jan 21 2014 at 04:01 PM | Maritime
Marten Transport, Ltd. (Nasdaq:MRTN) today reported the highest net income for any year in its history. For the year ended December 31, 2013, net income improved 10.6% to a record $30.1 million, or 90 cents per diluted share, from $27.3 million, or 82 cents per diluted share, in 2012. For the fourth quarter of 2013, net income decreased to $7.3 million, or 22 cents per diluted share, from $7.7 million, or 23 cents per diluted share, in the fourth quarter of 2012.
Operating revenue, consisting of revenue from truckload and logistics operations, decreased slightly to $166.2 million in the fourth quarter of 2013 from $166.4 million in the fourth quarter of 2012, and increased to $659.2 million in 2013 from $638.5 million in 2012. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL) revenue, increased 5.6% to $134.5 million in the 2013 quarter from $127.4 million in the 2012 quarter, and increased 7.8% to $524.8 million in 2013 from $486.7 million in 2012. Fuel surcharge revenue decreased to $31.7 million in the fourth quarter of 2013 from $32.2 million in the 2012 quarter, and increased to $127.7 million in 2013 from $121.1 million in 2012. With the March 2013 deconsolidation of MWL, no MWL revenue was included in the fourth quarter of 2013 compared with $6.7 million in the 2012 quarter. MWL revenue included in 2013 decreased by $24.0 million from 2012 with the deconsolidation.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, was 90.6% in the fourth quarter of 2013, compared to the 90.2% ratio achieved in the fourth quarter of 2012. The ratio improved to 90.2% in 2013 from 91.1% in 2012. The ratio in 2013 was the Company’s best since 2005 and the fourth consecutive year with improved results.
Chairman and Chief Executive Officer Randolph L. Marten said, “We are pleased to announce our highest net income for any year in our history. These results were earned in a challenging rate environment with significant industry headwinds including higher equipment and maintenance costs, pay inflation to drivers within a contracting driver market and revised hours of service regulations. We continued to grow our business with our total truckload, intermodal and broker loads up 7.5% in the fourth quarter of 2013 and up 10.2% in 2013 over the prior year’s periods – and expect continued growth in 2014, principally with our dedicated truckload, intermodal and Mexico operations. We also continue to drive improvements in revenue per tractor, which increased 3.9% in the fourth quarter of 2013 and 3.8% in 2013 over the prior year’s periods. We believe that we are better positioned than ever for future performance growth with our diverse service infrastructure and the dedicated people who have built it with their smart, hard work.
“We are also pleased to have received a 2013 SmartWay Excellence Award from the U.S. Environmental Protection Agency. The Excellence Award is reserved for the top one percent of SmartWay Partners and recognizes industry leadership in freight supply chain environmental performance and energy efficiency.”
Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. 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.
Since 2004, Marten Transport’s results and consolidated financial statements have included the accounts of MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL. Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.
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 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, 2012. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
December 31,
December 31,
2013
2012
(In thousands, except share information)
ASSETS
Current assets:
Cash and cash equivalents
$ 13,650
$ 3,473
Receivables:
Trade, net
70,869
66,239
Other
4,142
7,177
Prepaid expenses and other
15,274
15,490
Deferred income taxes
3,415
3,155
Total current assets
107,350
95,534
Property and equipment:
Revenue equipment, buildings and land, office equipment and other
579,925
551,136
Accumulated depreciation
(164,916)
(156,660)
Net property and equipment
415,009
394,476
Other assets
3,443
613
TOTAL ASSETS
$ 525,802
$ 490,623
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 38,624
$ 33,062
Insurance and claims accruals
14,404
13,838
Total current liabilities
53,028
46,900
Long-term debt, less current maturities
—
2,726
Deferred income taxes
113,637
109,074
Total liabilities
166,665
158,700
Stockholders’ equity:
Marten Transport, Ltd. 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;
48,000,000 shares authorized; 33,301,048 shares
at December 31, 2013, and 33,164,428 shares at
December 31, 2012, issued and outstanding
333
332
Additional paid-in capital
85,077
82,679
Retained earnings
273,727
246,349
Total Marten Transport, Ltd. stockholders’ equity
359,137
329,360
Noncontrolling interest
—
2,563
Total stockholders’ equity
359,137
331,923
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY
$ 525,802
$ 490,623
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Year
Ended December 31,
Ended December 31,
(In thousands, except per share information)
2013
2012
2013
2012
OPERATING REVENUE
$ 166,224
$ 166,412
$ 659,214
$ 638,456
OPERATING EXPENSES (INCOME):
Salaries, wages and benefits
43,534
43,221
171,314
163,242
Purchased transportation
30,987
32,248
123,436
124,269
Fuel and fuel taxes
39,804
41,937
163,270
163,596
Supplies and maintenance
10,755
9,961
40,582
39,919
Depreciation
16,321
15,790
64,476
60,904
Operating taxes and licenses
1,704
1,848
7,110
6,741
Insurance and claims
6,321
4,902
23,681
20,718
Communications and utilities
1,362
1,302
5,212
4,939
Gain on disposition of revenue equipment
(848)
(1,249)
(5,972)
(5,302)
Other
3,601
3,241
14,110
13,577
Total operating expenses
153,541
153,201
607,219
592,603
OPERATING INCOME
12,683
13,211
51,995
45,853
OTHER
(94)
(8)
(392)
(48)
INCOME BEFORE INCOME TAXES
12,777
13,219
52,387
45,901
Less: Income before income taxes attributable to noncontrolling interest
—
30
84
497
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.
12,777
13,189
52,303
45,404
PROVISION FOR INCOME TAXES
5,476
5,470
22,156
18,137
NET INCOME
$ 7,301
$ 7,719
$ 30,147
$ 27,267
BASIC EARNINGS PER COMMON SHARE
$ 0.22
$ 0.23
$ 0.91
$ 0.82
DILUTED EARNINGS PER COMMON SHARE
$ 0.22
$ 0.23
$ 0.90
$ 0.82
DIVIDENDS PAID PER COMMON SHARE
$ 0.025
$ 0.517
$ 0.083
$ 0.563
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)
2013
2012
2013 vs. 2012
2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue
$ 102,218
$ 98,099
$ 4,119
4.2%
Truckload fuel surcharge revenue
26,195
27,635
(1,440)
(5.2)
Total Truckload revenue
128,413
125,734
2,679
2.1
Logistics revenue, net of intermodal fuel surcharge revenue
32,308
36,071
(3,763)
(10.4)
Intermodal fuel surcharge revenue
5,503
4,607
896
19.4
Total Logistics revenue
37,811
40,678
(2,867)
(7.0)
Total operating revenue
$ 166,224
$ 166,412
$ (188)
(0.1)%
Operating income:
Truckload
$ 11,222
$ 10,766
$ 456
4.2%
Logistics
1,461
2,445
(984)
(40.2)
Total operating income
$ 12,683
$ 13,211
$ (528)
(4.0)%
Operating ratio:
Truckload
91.3%
91.4%
Logistics
96.1
94.0
Consolidated operating ratio
92.4%
92.1%
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)
2013
2012
2013 vs. 2012
2013 vs. 2012
Operating revenue:
Truckload revenue, net of fuel surcharge revenue
$ 400,324
$ 378,383
$ 21,941
5.8%
Truckload fuel surcharge revenue
106,955
104,940
2,015
1.9
Total Truckload revenue
507,279
483,323
23,956
5.0
Logistics revenue, net of intermodal fuel surcharge revenue
131,186
138,960
(7,774)
(5.6)
Intermodal fuel surcharge revenue
20,749
16,173
4,576
28.3
Total Logistics revenue
151,935
155,133
(3,198)
(2.1)
Total operating revenue
$ 659,214
$ 638,456
$ 20,758
3.3%
Operating income:
Truckload
$ 44,865
$ 36,805
$ 8,060
21.9%
Logistics
7,130
9,048
(1,918)
(21.2)
Total operating income
$ 51,995
$ 45,853
$ 6,142
13.4%
Operating ratio:
Truckload
91.2%
92.4%
Logistics
95.3
94.2
Consolidated operating ratio
92.1%
92.8%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months
Year
Ended December 31,
Ended December 31,
2013
2012
2013
2012
Truckload Segment:
Total Truckload revenue (in thousands)
$ 128,413
$ 125,734
$ 507,279
$ 483,323
Average truckload revenue, net of fuel surcharges, per tractor per week(1)
$ 3,522
$ 3,389
$ 3,465
$ 3,339
Average tractors(1)
2,209
2,202
2,216
2,167
Average miles per trip
596
623
603
624
Non-revenue miles percentage(2)
9.4%
11.4%
10.3%
11.3%
Total miles – company-employed drivers (in thousands)
55,982
56,042
225,194
215,742
Total miles – independent contractors (in thousands)
1,315
897
4,974
4,583
Logistics Segment:
Total Logistics revenue (in thousands)
$ 37,811
$ 40,678
$ 151,935
$ 155,133
Brokerage:
Marten Transport
Revenue (in thousands)
$ 12,850
$ 13,421
$ 52,746
$ 53,161
Loads
8,673
8,403
35,140
32,533
MWL
Revenue (in thousands)
$ —
$ 6,742
$ 6,676
$ 30,648
Loads
—
3,641
3,758
16,120
Intermodal:
Revenue (in thousands)
$ 24,961
$ 20,515
$ 92,513
$ 71,324
Loads
10,973
7,961
38,316
27,488
Average tractors
89
73
83
63
At December 31, 2013 and December 31, 2012:
Total tractors(1)
2,255
2,252
Average age of company tractors (in years)
1.9
2.0
Total trailers
4,105
4,170
Average age of company trailers (in years)
2.4
2.2
Ratio of trailers to tractors(1)
1.8
1.9
Three Months
Year
Ended December 31,
Ended December 31,
(In thousands)
2013
2012
2013
2012
Net cash provided by operating activities
$ 23,338
$ 22,750
$ 89,187
$ 85,539
Net cash used for investing activities
9,994
10,509
74,722
88,115
Weighted average shares outstanding:
Basic
33,265
33,125
33,221
33,095
Diluted
33,525
33,235
33,429
33,225
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 49 and 36 tractors as of December 31, 2013, and 2012, respectively.
(2) Represents the percentage of miles for which the company is not compensated.
CONTACT: Tim Kohl, President, and Jim Hinnendael, Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216
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