mrtn20210930

mrtn20210930_10q.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

☐ Transition Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the Quarter ended September 30, 2021

Commission File Number 0-15010

MARTEN TRANSPORT, LTD.

(Exact name of registrant as specified in its charter)

Delaware		39-1140809
(State of incorporation)		(I.R.S. employer identification no.)

129 Marten Street
Mondovi, Wisconsin 54755		715-926-4216
(Address of principal executive offices)		(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading symbol:	Name of each exchange on which registered:
COMMON STOCK, PAR VALUE	MRTN	THE NASDAQ STOCK MARKET LLC
$.01 PER SHARE		(NASDAQ GLOBAL SELECT MARKET)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☒	Accelerated filer ☐
	Smaller reporting company ☐	Non-accelerated filer ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒

The number of shares outstanding of the Registrant’s Common Stock, par value $.01 per share, was 82,942,839 as of October 25, 2021.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED BALANCE SHEETS

	September 30,			December 31,
(In thousands, except share information)	2021			2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	83,900		$	66,127
Receivables:
Trade, net		99,686			83,426
Other		6,208			4,202
Prepaid expenses and other		22,150			21,903
Total current assets		211,944			175,658

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		957,708			930,123
Accumulated depreciation		(267,808	)		(275,950	)
Net property and equipment		689,900			654,173
Other noncurrent assets		1,539			1,805
Total assets	$	903,383		$	831,636

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	33,687		$	25,702
Insurance and claims accruals		41,128			39,595
Accrued and other current liabilities		32,667			24,497
Accrued dividends		44,789			-
Total current liabilities		152,271			89,794
Deferred income taxes		120,689			121,098
Noncurrent operating lease liabilities		336			411
Total liabilities		273,296			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; 82,942,839 shares at September 30, 2021, and 82,705,005 shares at December 31, 2020, issued and outstanding		829			827
Additional paid-in capital		85,539			85,070
Retained earnings		543,719			534,436
Total stockholders’ equity		630,087			620,333
Total liabilities and stockholders’ equity	$	903,383		$	831,636

The accompanying notes are an integral part of these consolidated condensed financial statements.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
(In thousands, except per share information)	2021			2020			2021			2020

Operating revenue	$	251,280		$	216,011		$	706,768		$	647,041

Operating expenses (income):
Salaries, wages and benefits		81,091			74,797			229,385			221,034
Purchased transportation		52,861			37,066			138,629			113,676
Fuel and fuel taxes		33,909			24,268			94,853			73,433
Supplies and maintenance		11,685			12,440			33,867			36,501
Depreciation		25,371			25,580			76,598			76,979
Operating taxes and licenses		2,606			2,749			8,036			8,003
Insurance and claims		10,501			11,243			31,338			35,160
Communications and utilities		2,181			1,999			6,320			5,961
Gain on disposition of revenue equipment		(4,536	)		(2,128	)		(11,859	)		(5,899	)
Gain on disposition of facility		-			(1,718	)		-			(1,718	)
Other		7,115			5,315			18,589			16,223

Total operating expenses		222,784			191,611			625,756			579,353

Operating income		28,496			24,400			81,012			67,688

Other		(8	)		(17	)		(27	)		(127	)

Income before income taxes		28,504			24,417			81,039			67,815

Income taxes expense		7,230			6,373			20,341			17,919

Net income	$	21,274		$	18,044		$	60,698		$	49,896

Basic earnings per common share	$	0.26		$	0.22		$	0.73		$	0.61

Diluted earnings per common share	$	0.26		$	0.22		$	0.73		$	0.60

Dividends paid per common share	$	-		$	0.04		$	0.08		$	0.093

Dividends declared per common share	$	0.54		$	0.04		$	0.62		$	0.093

The accompanying notes are an integral part of these consolidated condensed financial statements.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	Common Stock				Additional Paid-In			Retained			Total Stock- holders’
(In thousands)	Shares		Amount		Capital			Earnings			Equity

Balance at December 31, 2020		82,705	$	827	$	85,070		$	534,436		$	620,333
Net income		-		-		-			18,006			18,006
Issuance of common stock from share-based payment arrangement exercises and vesting of performance unit awards		70		1		160			-			161
Employee taxes paid in exchange for shares withheld		-		-		(547	)		-			(547	)
Share-based payment arrangement compensation expense		-		-		336			-			336
Dividends paid on common stock		-		-		-			(3,311	)		(3,311	)
Balance at March 31, 2021		82,775		828		85,019			549,131			634,978
Net income		-		-		-			21,418			21,418
Issuance of common stock from share-based payment arrangement exercises, deferred compensation plan distributions and vesting of performance unit awards		106		1		335			-			336
Employee taxes paid in exchange for shares withheld		-		-		(706	)		-			(706	)
Share-based payment arrangement compensation expense		-		-		930			-			930
Dividends paid on common stock		-		-		-			(3,315	)		(3,315	)
Balance at June 30, 2021		82,881		829		85,578			567,234			653,641
Net income		-		-		-			21,274			21,274
Issuance of common stock from share-based payment arrangement exercises, deferred compensation plan distributions and vesting of performance unit awards		62		-		61			-			61
Employee taxes paid in exchange for shares withheld		-		-		(673	)		-			(673	)
Share-based payment arrangement compensation expense		-		-		573			-			573
Accrued dividends on common stock		-		-		-			(44,789	)		(44,789	)
Balance at September 30, 2021		82,943	$	829	$	85,539		$	543,719		$	630,087

The accompanying notes are an integral part of these consolidated condensed financial statements.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	Common Stock						Additional Paid-In			Retained			Total Stock- holders’
(In thousands)	Shares			Amount			Capital			Earnings			Equity

Balance at December 31, 2019		82,055		$	821		$	79,465		$	517,303		$	597,589
Net income		-			-			-			13,718			13,718
Repurchase and retirement of common stock		(53	)		(1	)		(596	)		-			(597	)
Issuance of common stock from share-based payment arrangement exercises and vesting of performance unit awards		259			3			1,052			(1	)		1,054
Employee taxes paid in exchange for shares withheld		-			-			(437	)		-			(437	)
Share-based payment arrangement compensation expense		-			-			246			-			246
Dividends paid on common stock		-			-			-			(2,193	)		(2,193	)
Balance at March 31, 2020		82,261			823			79,730			528,827			609,380
Net income		-			-			-			18,134			18,134
Issuance of common stock from share-based payment arrangement exercises and vesting of performance unit awards		401			4			3,360			(1	)		3,363
Share-based payment arrangement compensation expense		-			-			726			-			726
Dividends paid on common stock		-			-			-			(2,205	)		(2,205	)
Balance at June 30, 2020		82,662			827			83,816			544,755			629,398
Net income		-			-			-			18,044			18,044
Issuance of common stock from share-based payment arrangement exercises and vesting of performance unit awards		19			-			181			-			181
Share-based payment arrangement compensation expense		-			-			392			-			392
Dividends paid on common stock		-			-			-			(3,307	)		(3,307	)
Balance at September 30, 2020		82,681		$	827		$	84,389		$	559,492		$	644,708

The accompanying notes are an integral part of these consolidated condensed financial statements.

MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months
	Ended September 30,
(In thousands)	2021			2020
Cash flows provided by operating activities:
Operations:
Net income	$	60,698		$	49,896
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		76,598			76,979
Tires in service amortization		4,858			4,937
Gain on disposition of revenue equipment		(11,859	)		(5,899	)
Gain on disposition of facility		-			(1,718	)
Deferred income taxes		(409	)		3,868
Share-based payment arrangement compensation expense		1,839			1,364
Changes in other current operating items:
Receivables		(14,805	)		16,847
Prepaid expenses and other		(3,076	)		(2,317	)
Accounts payable		7,502			1,315
Insurance and claims accruals		1,533			4,900
Accrued and other current liabilities		5,030			4,535
Net cash provided by operating activities		127,909			154,707

Cash flows used for investing activities:
Revenue equipment additions		(157,301	)		(138,457	)
Proceeds from revenue equipment dispositions		58,525			46,872
Buildings and land, office equipment and other additions		(3,330	)		(4,697	)
Proceeds from buildings and land, office equipment and other dispositions		-			2,573
Other		(36	)		(39	)
Net cash used for investing activities		(102,142	)		(93,748	)

Cash flows used for financing activities:
Dividends paid on common stock		(6,626	)		(7,705	)
Repurchase and retirement of common stock		-			(597	)
Issuance of common stock from share-based payment arrangement exercises, deferred compensation plan distributions and vesting of performance unit awards		558			4,598
Employee taxes paid in exchange for shares withheld		(1,926	)		(437	)
Net cash used for financing activities		(7,994	)		(4,141	)

Net change in cash and cash equivalents		17,773			56,818

Cash and cash equivalents:
Beginning of period		66,127			31,461
End of period	$	83,900		$	88,279

Supplemental non-cash disclosure:
Dividends declared and not yet paid	$	44,789		$	-
Change in property and equipment not yet paid	$	692		$	2,355
Operating lease assets and liabilities acquired	$	-		$	88

Supplemental disclosure of cash flow information:
Cash paid for:
Income taxes	$	17,214		$	5,543
Interest	$	-		$	-

The accompanying notes are an integral part of these consolidated condensed financial statements.

MARTEN TRANSPORT, LTD.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 2021

(Unaudited)

(1) Consolidated Condensed Financial Statements

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements, and therefore do not include all information and disclosures required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, such statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial condition, results of operations and cash flows for the interim periods presented. The results of operations for any interim period do not necessarily indicate the results for the full year. The unaudited interim consolidated condensed financial statements should be read with reference to the consolidated financial statements and notes to consolidated financial statements in our 2020 Annual Report on Form 10-K.

(2) Earnings per Common Share

Basic and diluted earnings per common share were computed as follows:

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
(In thousands, except per share amounts)	2021		2020		2021		2020
Numerator:
Net income	$	21,274	$	18,044	$	60,698	$	49,896
Denominator:
Basic earnings per common share - weighted-average shares		82,907		82,672		82,835		82,472
Effect of dilutive stock options		465		607		545		626
Diluted earnings per common share - weighted-average shares and assumed conversions		83,372		83,279		83,380		83,098

Basic earnings per common share	$	0.26	$	0.22	$	0.73	$	0.61
Diluted earnings per common share	$	0.26	$	0.22	$	0.73	$	0.60

Options totaling 339,450 and 328,550 equivalent shares for the three-month and nine-month periods ended September 30, 2021, respectively, and 181,650 and 288,150 equivalent shares for the three-month and nine-month periods ended September 30, 2020, respectively, were outstanding but were not included in the calculation of diluted earnings per share because including the options in the denominator would be antidilutive, or decrease the number of weighted-average shares, due to their exercise prices exceeding the average market price of the common shares, or because inclusion of average unrecognized compensation expense in the calculation would cause the options to be antidilutive.

Unvested performance unit awards totaling 66,912 equivalent shares for each of the three-month and nine-month periods ended September 30, 2021, and 43,923 and 96,423 equivalent shares for the three-month and nine-month periods ended September 30, 2020, respectively, were considered outstanding but were not included in the calculation of diluted earnings per share because inclusion of average unrecognized compensation expense in the calculation would cause the performance units to be antidilutive.

(3) Long-Term Debt

We maintain a credit agreement that provides for an unsecured committed credit facility with an aggregate principal amount of $30.0 million which matures in August 2023. At September 30, 2021, there was no outstanding principal balance on the facility. As of that date, we had outstanding standby letters of credit to guarantee settlement of self-insurance claims of $18.5 million and remaining borrowing availability of $11.5 million. At December 31, 2020, there was also no outstanding principal balance on the facility. As of that date, we also had outstanding standby letters of credit of $17.0 million on the facility. This facility bears interest at a variable rate based on the London Interbank Offered Rate or the lender’s Prime Rate, in each case plus/minus applicable margins. The interest rate for the facility that would apply to outstanding principal balances was 0.78% at September 30, 2021.

Our credit facility prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of 25% of our net income from the prior fiscal year. Waivers allowing stock redemptions and dividends in excess of the 25% limitation in total amounts of up to $80 million in 2021 and of up to $60 million in 2020 were obtained from the lender in August 2021 and November 2020, respectively. This facility also contains restrictive covenants which, among other matters, require us to maintain compliance with cash flow leverage and fixed charge coverage ratios. We were in compliance with all covenants at September 30, 2021 and December 31, 2020.

(4) Related Party Transactions

We purchase fuel and tires and obtain related services from Bauer Built, Inc., or BBI. Jerry M. Bauer, the chairman of the board and chief executive officer of BBI, is one of our directors. We paid BBI $234,000 in the first nine months of 2021 and $166,000 in the first nine months of 2020 for fuel, tires and related services. In addition, we paid $1.5 million in the first nine months of 2021 and $1.7 million in the first nine months of 2020 to tire manufacturers for tires that were provided by BBI. BBI received commissions from the tire manufacturers related to these purchases.

(5) Share Repurchase Program

In August 2019, our Board of Directors approved and we announced an increase from current availability in our existing share repurchase program providing for the repurchase of up to $34 million, or approximately 1.8 million shares, of our common stock, which was increased by our Board of Directors to 2.7 million shares in August 2020 to reflect the three-for-two stock split effected in the form of a stock dividend on August 13, 2020. The share repurchase program allows purchases on the open market or through private transactions in accordance with Rule 10b-18 of the Exchange Act. The timing and extent to which we repurchase shares depends on market conditions and other corporate considerations. The repurchase program does not have an expiration date.

We repurchased and retired 53,064 shares of common stock for $597,000 in the first quarter of 2020. We did not repurchase any shares in the rest of 2020 or in the first nine months of 2021. As of September 30, 2021, future repurchases of up to $33.4 million, or approximately 2.6 million shares, were available in the share repurchase program.

(6) Dividends

In 2010, we announced that our Board of Directors approved a regular cash dividend program to our stockholders, subject to approval each quarter. A quarterly cash dividend of $0.04 per share of common stock was paid in each of the first two quarters of 2021 which totaled $6.6 million. We declared cash dividends in August 2021 which were paid in October 2021 totaling $44.8 million which consisted of a special dividend of $0.50 per common share, along with a quarterly cash dividend of $0.04 per share of common stock. In 2020, we paid quarterly cash dividends of $0.027 per share of common stock in each of the first two quarters and of $0.04 per share of common stock in the third quarter which totaled $7.7 million.

Our ability to pay cash dividends is currently limited by restrictions contained in our revolving credit facility, which prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of 25% of our net income from the prior fiscal year. Waivers allowing stock redemptions and dividends in excess of the 25% limitation in total amounts of up to $80 million in 2021 and of up to $60 million in 2020 were obtained from the lender in August 2021 and November 2020, respectively.

(7) Accounting for Share-based Payment Arrangement Compensation

We account for share-based payment arrangements in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 718, Compensation – Stock Compensation. During the first nine months of 2021, there were no significant changes to the structure of our stock-based award plans. Pre-tax compensation expense related to stock options and performance unit awards recorded in the first nine months of 2021 and 2020 was $1.8 million and $1.4 million, respectively.

(8) Termination of Deferred Compensation Plan

On May 5, 2020, our Compensation Committee and Board of Directors approved the termination of our Deferred Compensation Plan. The plan was an unfunded, nonqualified deferred compensation plan designed to allow board elected officers and other select members of our management designated by our Compensation Committee to save for retirement on a tax-deferred basis. The termination was effective May 5, 2021. All shares of Company common stock within the plan will be distributed by May 5, 2022.

(9) Fair Value of Financial Instruments

The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments.

(10) Commitments and Contingencies

We are committed to new revenue equipment purchases of $16.5 million and a building construction obligation of $2.9 million through the remainder of 2021. Operating lease obligation expenditures through 2025 total $670,000.

We self-insure, in part, for losses relating to workers’ compensation, auto liability, general liability, cargo and property damage claims, along with employees’ health insurance with varying risk retention levels. We maintain insurance coverage for per-incident and total losses in excess of these risk retention levels in amounts we consider adequate based upon historical experience and our ongoing review, and reserve currently for the estimated cost of the uninsured portion of pending claims.

We are also involved in other legal actions that arise in the ordinary course of business. In the opinion of management, based upon present knowledge of the facts, it is remote that the ultimate outcome of any such legal actions will have a material adverse effect upon our long-term financial position or results of operations.

(11) Revenue and Business Segments

We account for our revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers. We combine our five current operating segments into four reporting segments (Truckload, Dedicated, Intermodal and Brokerage) for financial reporting purposes. These four reporting segments are also the appropriate categories for the disaggregation of our revenue under FASB ASC 606.

We have strategically transitioned from a refrigerated long-haul carrier to a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across our five distinct business platforms – Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico.

The primary source of our operating revenue is provided by our Truckload segment through a combination of regional short-haul and medium-to-long-haul full-load transportation services. We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment, along with dry freight, across the United States and into and out of Mexico and Canada. Our agreements with customers are typically for one year.

Our Dedicated segment provides customized transportation solutions tailored to meet individual customers’ requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our agreements with customers range from three to five years and are subject to annual rate reviews.

Generally, we are paid by the mile for our Truckload and Dedicated services. We also derive Truckload and Dedicated revenue from fuel surcharges, loading and unloading activities, equipment detention and other accessorial services. The main factors that affect our Truckload and Dedicated revenue are the rate per mile we receive from our customers, the percentage of miles for which we are compensated, the number of miles we generate with our equipment and changes in fuel prices. We monitor our revenue production primarily through average Truckload and Dedicated revenue, net of fuel surcharges, per tractor per week. We also analyze our average Truckload and Dedicated revenue, net of fuel surcharges, per total mile, non-revenue miles percentage, the miles per tractor we generate, our fuel surcharge revenue, our accessorial revenue and our other sources of operating revenue.

Our Intermodal segment transports our customers’ freight within the United States utilizing our refrigerated containers and our temperature-controlled trailers, each on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. The main factors that affect our Intermodal revenue are the rate per mile and other charges we receive from our customers.

Our Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in 2007 and operates pursuant to brokerage authority granted by the United States Department of Transportation, or DOT. We retain the billing, collection and customer management responsibilities. The main factors that affect our Brokerage revenue are the rate per mile and other charges that we receive from our customers.

Operating results of our MRTN de Mexico business which offers our customers door-to-door service between the United States and Mexico with our Mexican partner carriers is reported within our Truckload and Brokerage segments.

Our customer agreements are typically for one-year terms except for our Dedicated agreements which range from three to five years with annual rate reviews. Under FASB ASC 606, the contract date for each individual load within each of our four reporting segments is generally the date that each load is tendered to and accepted by us. For each load transported within each of our four reporting segments, the entire amount of revenue to be recognized is a single performance obligation and our agreements with our customers detail the per-mile charges for line haul and fuel surcharges, along with the rates for loading and unloading, stop offs and drops, equipment detention and other accessorial services, which is the transaction price. There are no discounts that would be a material right or consideration payable to a customer. We are required to recognize revenue and related expenses over time, from load pickup to delivery, for each load within each of our four reporting segments. We base our calculation of the amount of revenue to record in each period for individual loads picking up in one period and delivering in the following period using the number of hours estimated to be incurred within each period applied to each estimated transaction price. Contract assets for this estimated revenue which are classified within prepaid expenses and other within our consolidated condensed balance sheets were $2.6 million and $1.5 million as of September 30, 2021 and December 31, 2020, respectively. We had no impairment losses on contract assets in the first nine months of 2021 or in 2020. We bill our customers for loads after delivery is complete with standard payment terms of 30 days.

We account for revenue of our Intermodal and Brokerage segments and revenue on freight transported by independent contractors within our Truckload and Dedicated segments on a gross basis because we are the principal service provider controlling the promised service before it is transferred to each customer. We are primarily responsible for fulfilling the promise to provide each specified service to each customer. We bear the primary risk of loss in the event of cargo claims by our customers. We also have complete control and discretion in establishing the price for each specified service. Accordingly, all such revenue billed to customers is classified as operating revenue and all corresponding payments to carriers for transportation services we arrange in connection with brokerage and intermodal activities and to independent contractor providers of revenue equipment are classified as purchased transportation expense within our consolidated condensed statements of operations.

The following table sets forth for the periods indicated our operating revenue and operating income by segment. We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment.

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
(In thousands)	2021		2020		2021		2020
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	86,889	$	85,074	$	254,441	$	254,897
Truckload fuel surcharge revenue		12,728		8,549		36,032		28,058
Total Truckload revenue		99,617		93,623		290,473		282,955

Dedicated revenue, net of fuel surcharge revenue		68,826		69,002		202,955		200,237
Dedicated fuel surcharge revenue		13,336		9,335		37,565		28,564
Total Dedicated revenue		82,162		78,337		240,520		228,801

Intermodal revenue, net of fuel surcharge revenue		22,716		19,991		64,193		59,127
Intermodal fuel surcharge revenue		4,031		1,985		10,150		6,830
Total Intermodal revenue		26,747		21,976		74,343		65,957

Brokerage revenue		42,754		22,075		101,432		69,328
Total operating revenue	$	251,280	$	216,011	$	706,768	$	647,041

Operating income:
Truckload	$	11,670	$	10,546	$

SEC Form 10-Q filed by Marten Transport, Ltd.