MONDOVI, Wis., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ: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.