MONDOVI, Wis., July 18, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ:MRTN) today reported net income of $7.9 million, or 10 cents per diluted share, for the second quarter ended June 30, 2024, compared with $21.9 million, or 27 cents per diluted share, for the second quarter of 2023. For the six-month period ended June 30, 2024, net income was $17.5 million, or 22 cents per diluted share, compared with $44.4 million, or 55 cents per diluted share, for the 2023 six-month period.

Operating revenue was $246.2 million for the second quarter of 2024 compared with $285.7 million for the second quarter of 2023. Excluding fuel surcharges, operating revenue was $213.5 million for the 2024 quarter compared with $248.6 million for the 2023 quarter. Fuel surcharge revenue decreased to $32.7 million for the 2024 quarter from $37.0 million for the 2023 quarter.

Operating revenue was $495.9 million for the first six months of 2024 compared with $583.7 million for the first six months of 2023. Excluding fuel surcharges, operating revenue was $429.3 million for the 2024 period compared with $503.6 million for the 2023 period. Fuel surcharge revenue decreased to $66.6 million for the 2024 period compared with $80.1 million for the 2023 period.

Operating income was $10.0 million for the second quarter of 2024 compared with $28.2 million for the second quarter of 2023.

Operating income was $22.2 million for the first six months of 2024 compared with $57.2 million for the first six months of 2023.

Operating expenses as a percentage of operating revenue were 95.9% for the 2024 quarter and 90.1% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 95.3% for the 2024 quarter and 88.7% for the 2023 quarter.

Operating expenses as a percentage of operating revenue were 95.5% for the first six months of 2024 and 90.2% for the first six months of 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 94.8% for the 2024 period and 88.6% for the 2023 period.

Executive Chairman Randolph L. Marten stated, "Our earnings were heavily pressured by the freight market recession's oversupply and weak demand, inflationary operating costs, and cumulative impact of freight rate reductions leading to freight network disruptions. Our unique multifaceted business model's value is highlighted by the operating results for our dedicated, brokerage and MRTN de Mexico operations through the first half of this year."

"We are focused on minimizing the freight market's impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market moves toward equilibrium from its current recessionary late stages. Accordingly, we have not agreed to rate reductions since last August."

"We are seeing increased interest by our customers to secure dedicated capacity and have recently added new multi-year dedicated programs for an additional 133 drivers starting in the third quarter."

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 Marten'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, Mexico and Canada, 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, 2023. 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, Doug Petit, 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)	2024		2023
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	77,199	$	53,213
Receivables:
Trade, net		99,926		105,501
Other		11,450		10,356
Prepaid expenses and other		30,995		27,512
Total current assets		219,570		196,582

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,149,771		1,162,336
Accumulated depreciation		(360,974)		(370,103)
Net property and equipment		788,797		792,233
Other noncurrent assets		1,520		1,524
Total assets	$	1,009,887	$	990,339

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	47,214	$	36,516
Insurance and claims accruals		44,296		47,017
Accrued and other current liabilities		27,466		26,709
Total current liabilities		118,976		110,242
Deferred income taxes		123,938		122,462
Noncurrent operating lease liabilities		220		249
Total liabilities		243,134		232,953

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; 81,414,959 shares at June 30, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding		814		813
Additional paid-in capital		51,385		49,789
Retained earnings		714,554		706,784
Total stockholders' equity		766,753		757,386
Total liabilities and stockholders' equity	$	1,009,887	$	990,339

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)	2024			2023			2024			2023

Operating revenue	$	246,238		$	285,672		$	495,910		$	583,695

Operating expenses (income):
Salaries, wages and benefits		86,519			96,332			175,281			194,848
Purchased transportation		43,235			48,299			85,049			102,402
Fuel and fuel taxes		38,809			42,215			78,370			89,011
Supplies and maintenance		16,472			17,408			32,542			33,395
Depreciation		28,206			29,427			56,733			58,957
Operating taxes and licenses		2,539			2,756			5,114			5,524
Insurance and claims		12,559			12,481			24,216			27,551
Communications and utilities		2,297			2,510			4,668			5,041
Gain on disposition of revenue equipment		(2,532	)		(3,550	)		(3,703	)		(8,796	)
Other		8,160			9,581			15,416			18,539

Total operating expenses		236,264			257,459			473,686			526,472

Operating income		9,974			28,213			22,224			57,223

Other		(1,014	)		(1,077	)		(1,810	)		(1,921	)

Income before income taxes		10,988			29,290			24,034			59,144

Income taxes expense		3,099			7,416			6,499			14,768

Net income	$	7,889		$	21,874		$	17,535		$	44,376

Basic earnings per common share	$	0.10		$	0.27		$	0.22		$	0.55

Diluted earnings per common share	$	0.10		$	0.27		$	0.22		$	0.55

Dividends declared per common share	$	0.06		$	0.06		$	0.12		$	0.12

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)	2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	96,046		$	101,268		$	(5,222	)		(5.2	)%
Truckload fuel surcharge revenue		16,477			15,870			607			3.8
Total Truckload revenue		112,523			117,138			(4,615	)		(3.9	)

Dedicated revenue, net of fuel surcharge revenue		67,444			87,437			(19,993	)		(22.9	)
Dedicated fuel surcharge revenue		13,822			17,548			(3,726	)		(21.2	)
Total Dedicated revenue		81,266			104,985			(23,719	)		(22.6	)

Intermodal revenue, net of fuel surcharge revenue		12,660			18,754			(6,094	)		(32.5	)
Intermodal fuel surcharge revenue		2,404			3,611			(1,207	)		(33.4	)
Total Intermodal revenue		15,064			22,365			(7,301	)		(32.6	)

Brokerage revenue		37,385			41,184			(3,799	)		(9.2	)

Total operating revenue	$	246,238		$	285,672		$	(39,434	)		(13.8	)%

Operating income/(loss):
Truckload	$	1,115		$	9,569		$	(8,454	)		(88.3	)%
Dedicated		6,650			14,173			(7,523	)		(53.1	)
Intermodal		(684	)		(165	)		(519	)		(314.5	)
Brokerage		2,893			4,636			(1,743	)		(37.6	)
Total operating income	$	9,974		$	28,213		$	(18,239	)		(64.6	)%

Operating ratio:
Truckload		99.0	%		91.8	%
Dedicated		91.8			86.5
Intermodal		104.5			100.7
Brokerage		92.3			88.7
Consolidated operating ratio		95.9	%		90.1	%

Operating ratio, net of fuel surcharges:
Truckload		98.8	%		90.6	%
Dedicated		90.1			83.8
Intermodal		105.4			100.9
Brokerage		92.3			88.7
Consolidated operating ratio, net of fuel surcharges		95.3	%		88.7	%

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)	2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	191,068		$	203,588		$	(12,520	)		(6.1	)%
Truckload fuel surcharge revenue		33,006			34,176			(1,170	)		(3.4	)
Total Truckload revenue		224,074			237,764			(13,690	)		(5.8	)

Dedicated revenue, net of fuel surcharge revenue		139,182			174,268			(35,086	)		(20.1	)
Dedicated fuel surcharge revenue		28,544			37,166			(8,622	)		(23.2	)
Total Dedicated revenue		167,726			211,434			(43,708	)		(20.7	)

Intermodal revenue, net of fuel surcharge revenue		25,941			42,155			(16,214	)		(38.5	)
Intermodal fuel surcharge revenue		5,095			8,799			(3,704	)		(42.1	)
Total Intermodal revenue		31,036			50,954			(19,918	)		(39.1	)

Brokerage revenue		73,074			83,543			(10,469	)		(12.5	)

Total operating revenue	$	495,910		$	583,695		$	(87,785	)		(15.0	)%

Operating income/(loss):
Truckload	$	1,604		$	19,610		$	(18,006	)		(91.8	)%
Dedicated		15,908			27,857			(11,949	)		(42.9	)
Intermodal		(878	)		622			(1,500	)		(241.2	)
Brokerage		5,590			9,134			(3,544	)		(38.8	)
Total operating income	$	22,224		$	57,223		$	(34,999	)		(61.2	)%

Operating ratio:
Truckload		99.3	%		91.8	%
Dedicated		90.5			86.8
Intermodal		102.8			98.8
Brokerage		92.4			89.1
Consolidated operating ratio		95.5	%		90.2	%

Operating ratio, net of fuel surcharges:
Truckload		99.2	%		90.4	%
Dedicated		88.6			84.0
Intermodal		103.4			98.5
Brokerage		92.4			89.1
Consolidated operating ratio, net of fuel surcharges		94.8	%		88.6	%

MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited)

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2024			2023			2024			2023
Truckload Segment:
Revenue (in thousands)	$	112,523		$	117,138		$	224,074		$	237,764
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,093		$	4,472		$	4,044		$	4,521
Average tractors⁽¹⁾		1,805			1,742			1,817			1,742
Average miles per trip		528			505			533			507
Non-revenue miles percentage⁽²⁾		11.6	%		12.4	%		12.1	%		12.5	%
Total miles (in thousands)		40,847			39,321			80,550			77,558

Dedicated Segment:
Revenue (in thousands)	$	81,266		$	104,985		$	167,726		$	211,434
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	3,754		$	3,986		$	3,768		$	3,973
Average tractors⁽¹⁾		1,382			1,687			1,421			1,696
Average miles per trip		323			332			326			332
Non-revenue miles percentage⁽²⁾		1.1	%		1.3	%		1.1	%		1.2	%
Total miles (in thousands)		28,231			34,833			57,311			68,909

Intermodal Segment:
Revenue (in thousands)	$	15,064		$	22,365		$	31,036		$	50,954
Loads		4,464			6,267			9,053			13,544
Average tractors		121			170			123			175

Brokerage Segment:
Revenue (in thousands)	$	37,385		$	41,184		$	73,074		$	83,543
Loads		22,700			22,718			42,761			43,406

At June 30, 2024 and June 30, 2023:
Total tractors⁽¹⁾		3,126			3,516
Average age of company tractors (in years)		1.8			1.7
Total trailers		5,539			5,786
Average age of company trailers (in years)		5.0			4.2
Ratio of trailers to tractors⁽¹⁾		1.8			1.6
Total refrigerated containers		787			791

	Three Months						Six Months
	Ended June 30,						Ended June 30,
(In thousands)	2024			2023			2024			2023

Net cash provided by operating activities	$	35,821		$	48,969		$	81,543		$	98,201
Net cash used for investing activities		(27,776	)		(60,359	)		(48,025	)		(88,639	)
Net cash used for financing activities		(4,576	)		(4,370	)		(9,532	)		(9,634	)

Weighted average shares outstanding:
Basic		81,381			81,263			81,365			81,236
Diluted		81,446			81,412			81,442			81,394

(1	)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 90 and 98 tractors as of June 30, 2024 and 2023, respectively.

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