GlobeNewswire Inc | Jul 16, 2020 04:02PM EDT

July 16, 2020

MONDOVI, Wis., July 16, 2020 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 19.4% improvement in net income to $18.1million, or 33 cents per diluted share, for the second quarter ended June 30, 2020, from $15.2 million, or 28 cents per diluted share, for the second quarter of 2019. For the first six months of 2020, net income improved 10.8% to $31.9 million, or 58 cents per diluted share, from $28.7 million, or 52 cents per diluted share, for the first six months of 2019.

Marten Transport also announced today that its Board of Directors has declared a three-for-two stock split of the companys common stock and a regular quarterly cash dividend of $0.04 per share of common stock. The stock split, while maintaining the current quarterly cash dividend amount per share, effectively increases the cash payout to stockholders by 50%.

Operating Results Comparison Percentage Percentage Increase Increase Three Six Months Months Ended Ended June 30, June 30, 2020 vs. 2020 vs. 2019 2019 Operating revenue 0.1 % 4.8 % Operating revenue, net of fuel 4.7 % 7.4 % surcharges Operating income 26.6 % 14.9 % Net income 19.4 % 10.8 %

Operating revenue improved to $212.4 million for the second quarter of 2020 from $212.1 million for the second quarter of 2019, and improved 4.8% to $431.0 million for the first six months of 2020 from $411.1 million for the first six months of 2019. Excluding fuel surcharges, operating revenue improved 4.7% to $194.0 million for the 2020 quarter from $185.4 million for the 2019 quarter, and improved 7.4% to $387.4 million for the first six months of 2020 from $360.8 million for the first six months of 2019. Fuel surcharge revenue decreased to $18.3 million for the 2020 quarter from $26.7 million for the 2019 quarter and decreased to $43.6 million for the first six months of 2020 from $50.3 million for the first six months of 2019 due to significantly lower fuel prices.

Operating income improved 26.6% to a record $25.3 million for the second quarter of 2020 from $19.9 million for the second quarter of 2019. This quarters operating income was the highest for any quarter in Martens history, and was also a record excluding a $3.0 million, or 4 cents per diluted share, benefit from reduced net fuel expense as a percentage of revenue from the second quarter of 2019 to 2020. Operating income improved 14.9% to $43.3 million for the first six months of 2020 from $37.7 million for the first six months of 2019.

Operating expenses as a percentage of operating revenue improved to 88.1% for the second quarter of 2020 from 90.6% for the second quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0% from 89.2%.

Operating expenses as a percentage of operating revenue improved to 90.0% for the first six months of 2020 from 90.8% for the first six months of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.8% from 89.6%.

Chairman and Chief Executive Officer Randolph L. Marten said, To each of our over 4,100 talented, hard-working drivers, maintenance personnel and employees across all functions and regions, you should be extremely proud of the strong results that you consistently drive, and of the record operating income in the second quarter that you earned. I sure am. Within an environment of significantly fluctuating customer freight volumes, we improved our Truckload miles per tractor by 4.8% over the second quarter of 2019 through our adaptive, continual redeployment of our drivers to match the changing freight demand by lane while minimizing empty miles. We plan on pursuing profitable growth opportunities in the second half of this year. 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.

I am also pleased to announce this stock split which reflects our continued strong financial condition. The increased number of outstanding shares should increase trading activity, or float, in our common stock while our stockholders benefit from the 50% increase in our quarterly dividend cash payout.

The three-for-two stock split of the companys common stock will be effected in the form of a stock dividend payable on August 13, 2020 to stockholders of record as of July 30, 2020. Holders of the companys common stock will receive an additional one-half share for each outstanding share of common stock held as of the record date. The stock split will increase the number of outstanding shares of common stock from approximately 55.1 million to approximately 82.7 million shares.

The regular quarterly cash dividend of $0.04 per share of common stock will be payable on September 30, 2020 to stockholders of record at the close of business on September 16, 2020. This is Martens 41st consecutive quarterly cash dividend. With the payment of this dividend, Marten will have paid a total of $93.6 million in cash dividends, including special dividends totaling $52.1 million in 2019 and 2012, since the dividend program was implemented in 2010.

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 current expectations concerning future payment of dividends. 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 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

June 30, December 31,(In thousands, except share information) 2020 2019 (Unaudited)ASSETS Current assets: Cash and cash equivalents $ 75,323 $ 31,461 Receivables: Trade, net 83,854 90,712 Other 12,639 11,055 Prepaid expenses and other 22,906 20,938 Total current assets 194,722 154,166 Property and equipment: Revenue equipment, buildings and land, office 920,608 904,237 equipment and otherAccumulated depreciation (276,412 ) (263,843 ) Net property and equipment 644,196 640,394 Other noncurrent assets 1,916 2,026 Total assets $ 840,834 $ 796,586 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 26,176 $ 22,917 Insurance and claims accruals 35,834 31,729 Accrued and other current liabilities 25,569 21,680 Total current liabilities 87,579 76,326 Deferred income taxes 123,285 122,022 Noncurrent operating lease liabilities 572 649 Total liabilities 211,436 198,997 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 shares authorized; 55,107,805 551 547 shares at June 30, 2020, and 54,703,466 sharesat December 31, 2019, issued and outstandingAdditional paid-in capital 83,816 79,465 Retained earnings 545,031 517,577 Total stockholders? equity 629,398 597,589 Total liabilities and stockholders? $ 840,834 $ 796,586 equity

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

ThreeMonths Six Months Ended June 30, Ended June 30, (In thousands,except per 2020 2019 2020 2019 shareinformation) Operating $ 212,384 $ 212,090 $ 431,030 $ 411,113 revenue Operatingexpenses (income):Salaries,wages and 73,476 68,613 146,237 132,137 benefitsPurchased 36,165 38,668 76,610 76,917 transportationFuel and fuel 20,868 30,952 49,165 58,629 taxesSupplies and 11,833 11,502 24,061 22,623 maintenanceDepreciation 25,972 23,462 51,399 46,005 Operatingtaxes and 2,615 2,438 5,254 4,771 licensesInsurance and 11,633 9,862 23,917 19,737 claimsCommunications 1,977 1,950 3,962 3,900 and utilitiesGain ondisposition of (2,216 ) (1,230 ) (3,771 ) (2,778 )revenueequipmentOther 4,805 5,929 10,908 11,495 Totaloperating 187,128 192,146 387,742 373,436 expenses Operating 25,256 19,944 43,288 37,677 income Other (13 ) (395 ) (110 ) (673 ) Income before 25,269 20,339 43,398 38,350 income taxes Income taxes 7,135 5,149 11,546 9,614 expense Net income $ 18,134 $ 15,190 $ 31,852 $ 28,736 Basic earningsper common $ 0.33 $ 0.28 $ 0.58 $ 0.53 share Dilutedearnings per $ 0.33 $ 0.28 $ 0.58 $ 0.52 common share Dividendsdeclared per $ 0.04 $ 0.03 $ 0.08 $ 0.06 common share

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Three Months Three Three Months Months Ended Ended Ended June 30, June 30, June 30, (Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, netof fuel $ 85,966 $ 83,215 $ 2,751 3.3 %surchargerevenueTruckloadfuel 8,234 12,807 (4,573 ) (35.7 )surchargerevenueTotalTruckload 94,200 96,022 (1,822 ) (1.9 )revenue Dedicatedrevenue, netof fuel 67,076 56,160 10,916 19.4 surchargerevenueDedicatedfuel 8,351 10,850 (2,499 ) (23.0 )surchargerevenueTotalDedicated 75,427 67,010 8,417 12.6 revenue Intermodalrevenue, netof fuel 18,542 17,527 1,015 5.8 surchargerevenueIntermodalfuel 1,759 3,076 (1,317 ) (42.8 )surchargerevenueTotalIntermodal 20,301 20,603 (302 ) (1.5 )revenue Brokerage 22,456 28,455 (5,999 ) (21.1 )revenue Totaloperating $ 212,384 $ 212,090 $ 294 0.1 %revenue Operating income:Truckload $ 11,036 $ 8,045 $ 2,991 37.2 %Dedicated 11,452 7,700 3,752 48.7 Intermodal 954 1,536 (582 ) (37.9 )Brokerage 1,814 2,663 (849 ) (31.9 )Totaloperating $ 25,256 $ 19,944 $ 5,312 26.6 %income Operating ratio:Truckload 88.3 % 91.6 % Dedicated 84.8 88.5 Intermodal 95.3 92.5 Brokerage 91.9 90.6 Consolidatedoperating 88.1 % 90.6 % ratio

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Six Months Six Six Months Months Ended Ended Ended June 30, June 30, June 30, (Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, netof fuel $ 169,823 $ 163,382 $ 6,441 3.9 %surchargerevenueTruckloadfuel 19,509 24,362 (4,853 ) (19.9 )surchargerevenueTotalTruckload 189,332 187,744 1,588 0.8 revenue Dedicatedrevenue, netof fuel 131,235 105,084 26,151 24.9 surchargerevenueDedicatedfuel 19,229 19,651 (422 ) (2.1 )surchargerevenueTotalDedicated 150,464 124,735 25,729 20.6 revenue Intermodalrevenue, netof fuel 39,136 37,282 1,854 5.0 surchargerevenueIntermodalfuel 4,845 6,292 (1,447 ) (23.0 )surchargerevenueTotalIntermodal 43,981 43,574 407 0.9 revenue Brokerage 47,253 55,060 (7,807 ) (14.2 )revenue Total $ 431,030 $ 411,113 $ 19,917 4.8 %operatingrevenue Operating income:Truckload $ 17,821 $ 15,600 $ 2,221 14.2 %Dedicated 19,985 13,215 6,770 51.2 Intermodal 2,260 3,930 (1,670 ) (42.5 )Brokerage 3,222 4,932 (1,710 ) (34.7 )Totaloperating $ 43,288 $ 37,677 $ 5,611 14.9 %income Operating ratio:Truckload 90.6 % 91.7 % Dedicated 86.7 89.4 Intermodal 94.9 91.0 Brokerage 93.2 91.0 Consolidatedoperating 90.0 % 90.8 % ratio

MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)

Three Months Six Months Ended June 30, Ended June 30, 2020 2019 2020 2019 Truckload Segment:Revenue (in $ 94,200 $ 96,022 $ 189,332 $ 187,744 thousands)Averagerevenue, netof fuel $ 3,829 $ 3,876 $ 3,821 $ 3,867 surcharges,per tractorper week^(1)Average 1,727 1,652 1,710 1,634 tractors^(1)Average miles 557 532 558 546 per tripNon-revenuemiles 10.9 % 11.1 % 11.0 % 11.2 %percentage^(2)Total miles(in 42,833 39,077 83,872 76,313 thousands) Dedicated Segment:Revenue (in $ 75,427 $ 67,010 $ 150,464 $ 124,735 thousands)Averagerevenue, netof fuel $ 3,314 $ 3,460 $ 3,309 $ 3,424 surcharges,per tractorper week^(1)Average 1,557 1,248 1,525 1,187 tractors^(1)Average miles 307 314 306 318 per tripNon-revenuemiles 0.8 % 0.7 % 0.8 % 0.7 %percentage^(2)Total miles(in 33,174 27,198 64,710 50,841 thousands) Intermodal Segment:Revenue (in $ 20,301 $ 20,603 $ 43,981 $ 43,574 thousands)Loads 8,693 8,430 18,430 17,681 Average 98 81 99 84 tractors Brokerage Segment:Revenue (in $ 22,456 $ 28,455 $ 47,253 $ 55,060 thousands)Loads 15,280 16,185 31,388 31,451 At June 30,2020 and June 30, 2019:Total 3,313 3,047 tractors^(1)Average ageof company 1.8 1.9 tractors (inyears)Total 5,364 5,437 trailersAverage ageof company 2.7 2.6 trailers (inyears)Ratio oftrailers to 1.6 1.8 tractors^(1)



Three Months Six Months Ended June 30, Ended June 30, (In 2020 2019 2020 2019 thousands) Net cashprovided by $ 60,587 $ 37,473 $ 104,067 $ 75,101 operatingactivitiesNet cash(used for) (22,558 ) (39,034 ) (59,190 ) (45,770 )investingactivitiesNet cashprovided by(used for) 1,158 (1,173 ) (1,015 ) (3,302 )financingactivities Weightedaverage sharesoutstanding:Basic 55,018 54,616 54,914 54,585 Diluted 55,422 55,081 55,345 55,055



Includes tractors driven by both company-employed drivers and independent(1 ) contractors. Independent contractors provided 124 and 55 tractors as of June 30, 2020 and 2019, respectively. (2 ) Represents the percentage of miles for which the company is not compensated.