GlobeNewswire Inc | Oct 15, 2020 04:01PM EDT

October 15, 2020

MONDOVI, Wis., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported an 8.8% improvement in net income to $18.0 million, or 22 cents per diluted share, for the third quarter ended September 30, 2020, from $16.6 million, or 20 cents per diluted share, for the third quarter of 2019. For the first nine months of 2020, net income improved 10.1% to $49.9 million, or 60 cents per diluted share, from $45.3 million, or 55 cents per diluted share, for the first nine months of 2019.

Results for the 2020 quarter include a gain of $1.7 million on the disposition of a facility as part of Martens program to expand and update its facilities. This gain increased earnings for the 2020 quarter by $1.3 million, while earnings for the 2019 quarter increased by $1.4 million due to an additional income tax benefit.

Operating Results Comparison Percentage Percentage Increase Increase Three Nine Months Months Ended Ended September September 30, 30, 2020 vs. 2020 vs. 2019 2019 Operating revenue 0.5 % 3.3 % Operating revenue, net of fuel 3.8 % 6.2 % surcharges Operating income 21.8 % 17.3 % Net income 8.8 % 10.1 %

Operating revenue improved to $216.0 million for the third quarter of 2020 from $215.0 million for the third quarter of 2019, and improved 3.3% to $647.0 million for the first nine months of 2020 from $626.1 million for the first nine months of 2019. Excluding fuel surcharges, operating revenue improved 3.8% to $196.1 million for the 2020 quarter from $188.9 million for the 2019 quarter, and improved 6.2% to $583.6 million for the first nine months of 2020 from $549.7 million for the first nine months of 2019. Fuel surcharge revenue decreased to $19.9 million for the 2020 quarter from $26.1 million for the 2019 quarter and decreased to $63.5 million for the first nine months of 2020 from $76.4 million for the first nine months of 2019 due to significantly lower fuel prices.

Operating income improved 21.8% to $24.4 million for the third quarter of 2020 from $20.0 million for the third quarter of 2019. Operating income improved 17.3% to $67.7 million for the first nine months of 2020 from $57.7 million for the first nine months of 2019. The operating income for the first nine months of 2020 was the highest for the first nine months of any year in Martens history.

Operating expenses as a percentage of operating revenue improved to 88.7% for the third quarter of 2020 from 90.7% for the third quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.6% from 89.4%.

Operating expenses as a percentage of operating revenue improved to 89.5% for the first nine months of 2020 from 90.8% for the first nine months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.4% from 89.5%.

Chairman and Chief Executive Officer Randolph L. Marten said, Our talented and hard-working people continue to drive consistent profitable growth, with our operating income for the first nine months of this year the highest in our history and up 17.3% over the same period of 2019, and our operating ratio, net of fuel surcharges, the best ratio for the first nine months of any year since we became a public company in 1986. The operating income improvement is on top of strong growth in 2019 of 8.7% and in 2018 of 23.7%.

We improved our Truckload miles per tractor by 8.5% over the third quarter of 2019 and by 6.2% over the first nine months of 2019, demonstrating our strength of quickly making data-driven decisions and adjustments utilizing our in-house operating technology. We also have been increasing and will continue to increase the compensation for our premium services within the tightening freight market. We expect to build on our success in expanding the capacity we provide within our unique multifaceted business model to support our diverse and growing customer base by offering the best jobs for the industrys top, experienced drivers.

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.

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across the Companys 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. Martens 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 Companys 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 Companys Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A of the Companys 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

September 30, December 31,(In thousands, except share information) 2020 2019 (Unaudited)ASSETS Current assets: Cash and cash equivalents $ 88,279 $ 31,461 Receivables: Trade, net 80,719 90,712 Other 2,908 11,055 Prepaid expenses and other 20,640 20,938 Total current assets 192,546 154,166 Property and equipment: Revenue equipment, buildings and land, office 943,058 904,237 equipment and otherAccumulated depreciation (278,488 ) (263,843 )Net property and equipment 664,570 640,394 Other noncurrent assets 1,950 2,026 Total assets $ 859,066 $ 796,586 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 24,563 $ 22,917 Insurance and claims accruals 36,629 31,729 Accrued and other current liabilities 26,755 21,680 Total current liabilities 87,947 76,326 Deferred income taxes 125,890 122,022 Noncurrent operating lease liabilities 521 649 Total liabilities 214,358 198,997 Stockholders? equity: Preferred stock, $.01 par value per share;2,000,000 shares authorized; - - no shares issued and outstandingCommon stock, $.01 par value per share;192,000,000 sharesauthorized; 82,680,849 shares at September 30, 827 821 2020, and82,055,199 shares at December 31, 2019, issuedand outstandingAdditional paid-in capital 84,389 79,465 Retained earnings 559,492 517,303 Total stockholders? equity 644,708 597,589 Total liabilities and stockholders? equity $ 859,066 $ 796,586

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

ThreeMonths Nine Months Ended September 30, Ended September 30, (In thousands,except per 2020 2019 2020 2019 shareinformation) Operating $ 216,011 $ 214,973 $ 647,041 $ 626,086 revenue Operatingexpenses (income):Salaries,wages and 74,797 69,312 221,034 201,449 benefitsPurchased 37,066 40,435 113,676 117,352 transportationFuel and fuel 24,268 31,275 73,433 89,904 taxesSupplies and 12,440 12,116 36,501 34,739 maintenanceDepreciation 25,580 24,290 76,979 70,295 Operatingtaxes and 2,749 2,651 8,003 7,422 licensesInsurance and 11,243 9,618 35,160 29,355 claimsCommunications 1,999 1,901 5,961 5,801 and utilitiesGain ondisposition of (2,128 ) (2,559 ) (5,899 ) (5,337 )revenueequipmentGain ondisposition of (1,718 ) - (1,718 ) - facilityOther 5,315 5,900 16,223 17,395 Totaloperating 191,611 194,939 579,353 568,375 expenses Operating 24,400 20,034 67,688 57,711 income Other (17 ) (255 ) (127 ) (928 ) Income before 24,417 20,289 67,815 58,639 income taxes Income taxes 6,373 3,702 17,919 13,316 expense Net income $ 18,044 $ 16,587 $ 49,896 $ 45,323 Basic earningsper common $ 0.22 $ 0.20 $ 0.61 $ 0.55 share Dilutedearnings per $ 0.22 $ 0.20 $ 0.60 $ 0.55 common share Dividendsdeclared per $ 0.04 $ 0.453 $ 0.093 $ 0.493 common share

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Three Months Three Three Months Months Ended Ended Ended September 30, September September 30, 30,(Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, netof fuel $ 85,074 $ 82,931 $ 2,143 2.6 %surchargerevenueTruckloadfuel 8,549 12,056 (3,507 ) (29.1 )surchargerevenueTotalTruckload 93,623 94,987 (1,364 ) (1.4 )revenue Dedicatedrevenue, netof fuel 69,002 59,281 9,721 16.4 surchargerevenueDedicatedfuel 9,335 11,053 (1,718 ) (15.5 )surchargerevenueTotalDedicated 78,337 70,334 8,003 11.4 revenue Intermodalrevenue, netof fuel 19,991 19,336 655 3.4 surchargerevenueIntermodalfuel 1,985 2,961 (976 ) (33.0 )surchargerevenueTotalIntermodal 21,976 22,297 (321 ) (1.4 )revenue Brokerage 22,075 27,355 (5,280 ) (19.3 )revenue Totaloperating $ 216,011 $ 214,973 $ 1,038 0.5 %revenue Operating income:Truckload $ 10,546 $ 6,956 $ 3,590 51.6 %Dedicated 11,024 9,920 1,104 11.1 Intermodal 1,304 1,210 94 7.8 Brokerage 1,526 1,948 (422 ) (21.7 )Totaloperating $ 24,400 $ 20,034 $ 4,366 21.8 %income Operating ratio:Truckload 88.7 % 92.7 % Dedicated 85.9 85.9 Intermodal 94.1 94.6 Brokerage 93.1 92.9 Consolidatedoperating 88.7 % 90.7 % ratio

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Nine Months Nine Nine Months Months Ended Ended Ended September 30, September September 30, 30,(Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, netof fuel $ 254,897 $ 246,313 $ 8,584 3.5 %surchargerevenueTruckloadfuel 28,058 36,418 (8,360 ) (23.0 )surchargerevenueTotalTruckload 282,955 282,731 224 0.1 revenue Dedicatedrevenue, netof fuel 200,237 164,365 35,872 21.8 surchargerevenueDedicatedfuel 28,564 30,704 (2,140 ) (7.0 )surchargerevenueTotalDedicated 228,801 195,069 33,732 17.3 revenue Intermodalrevenue, netof fuel 59,127 56,618 2,509 4.4 surchargerevenueIntermodalfuel 6,830 9,253 (2,423 ) (26.2 )surchargerevenueTotalIntermodal 65,957 65,871 86 0.1 revenue Brokerage 69,328 82,415 (13,087 ) (15.9 )revenue Totaloperating $ 647,041 $ 626,086 $ 20,955 3.3 %revenue Operating income:Truckload $ 28,367 $ 22,556 $ 5,811 25.8 %Dedicated 31,009 23,135 7,874 34.0 Intermodal 3,564 5,140 (1,576 ) (30.7 )Brokerage 4,748 6,880 (2,132 ) (31.0 )Totaloperating $ 67,688 $ 57,711 $ 9,977 17.3 %income Operating ratio:Truckload 90.0 % 92.0 % Dedicated 86.4 88.1 Intermodal 94.6 92.2 Brokerage 93.2 91.7 Consolidatedoperating 89.5 % 90.8 % ratio

MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)

Three Months Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Truckload Segment:Revenue (in $ 93,623 $ 94,987 $ 282,955 $ 282,731 thousands)Averagerevenue, netof fuel $ 3,955 $ 3,723 $ 3,865 $ 3,818 surcharges,per tractorper week^(1)Average 1,637 1,695 1,685 1,654 tractors^(1)Average miles 546 545 554 545 per tripNon-revenuemiles 10.2 % 11.8 % 10.8 % 11.4 %percentage^(2)Total miles(in 41,210 39,326 125,082 115,639 thousands) Dedicated Segment:Revenue (in $ 78,337 $ 70,334 $ 228,801 $ 195,069 thousands)Averagerevenue, netof fuel $ 3,295 $ 3,392 $ 3,304 $ 3,412 surcharges,per tractorper week^(1)Average 1,593 1,329 1,548 1,235 tractors^(1)Average miles 304 312 306 316 per tripNon-revenuemiles 0.7 % 0.7 % 0.7 % 0.7 %percentage^(2)Total miles(in 33,843 28,859 98,553 79,700 thousands) Intermodal Segment:Revenue (in $ 21,976 $ 22,297 $ 65,957 $ 65,871 thousands)Loads 9,306 8,897 27,736 26,578 Average 99 87 99 85 tractors Brokerage Segment:Revenue (in $ 22,075 $ 27,355 $ 69,328 $ 82,415 thousands)Loads 13,670 16,059 45,058 47,510 At September30, 2020 and September 30,2019:Total 3,329 3,137 tractors^(1)Average ageof company 1.7 1.8 tractors (inyears)Total 5,368 5,562 trailersAverage ageof company 2.9 2.6 trailers (inyears)Ratio oftrailers to 1.6 1.8 tractors^(1)

Three Months Nine Months Ended September 30, Ended September 30, (In 2020 2019 2020 2019 thousands) Net cashprovided by $ 50,640 $ 46,920 $ 154,707 $ 122,021 operatingactivitiesNet cash(used for) (34,558 ) (52,719 ) (93,748 ) (98,489 )investingactivitiesNet cash(used for) (3,126 ) (36,513 ) (4,141 ) (39,815 )financingactivities Weightedaverage sharesoutstanding:Basic 82,672 81,982 82,472 81,912 Diluted 83,279 82,701 83,098 82,618

Includes tractors driven by both company-employed drivers and independent(1 ) contractors. Independent contractors provided 132 and 75 tractors as of September 30, 2020 and 2019, respectively. (2 ) Represents the percentage of miles for which the company is not compensated.