GlobeNewswire Inc | Jan 26, 2021 04:01PM EST

January 26, 2021

MONDOVI, Wis., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter and year in Martens history. For the fourth quarter ended December 31, 2020, net income improved 24.5% to $19.6 million, or 24 cents per diluted share, from $15.7 million, or 19 cents per diluted share, for the fourth quarter of 2019. For the year ended December 31, 2020, net income improved 13.8% to $69.5 million, or 84 cents per diluted share, from $61.1 million, or 74 cents per diluted share, for 2019.

Operating Results Comparison Percentage Percentage Increase Increase Three Months Year Ended Ended December 31, December 31, 2020 vs. 2019 2020 vs. 2019 Operating revenue 4.7 % 3.7 % Operating revenue, net of fuel surcharges 8.8 % 6.8 % Operating income 36.0 % 21.9 % Net income 24.5 % 13.8 %

Operating revenue improved 4.7% to a record $227.3 million for the fourth quarter of 2020 from $217.2 million for the fourth quarter of 2019, and improved 3.7% to a record $874.4 million for 2020 from $843.3 million for 2019. Excluding fuel surcharges, operating revenue improved 8.8% to $207.0 million for the 2020 quarter from $190.2 million for the 2019 quarter, and improved 6.8% to $790.6 million for 2020 from $739.9 million for 2019. Fuel surcharge revenue decreased to $20.4 million for the 2020 quarter from $27.0 million for the 2019 quarter and decreased to $83.8 million for 2020 from $103.4 million for 2019 due to significantly lower fuel prices.

Operating income improved 36.0% to a record $25.6 million for the fourth quarter of 2020 from $18.8 million for the fourth quarter of 2019, and improved 21.9% to a record $93.2 million for 2020 from $76.5 million for 2019.

Operating expenses as a percentage of operating revenue improved to 88.8% for the fourth quarter of 2020 from 91.3% for the fourth quarter of 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.7% from 90.1%.

Operating expenses as a percentage of operating revenue improved to 89.3% for 2020 from 90.9% for 2019. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 88.2% from 89.7%.

Chairman and Chief Executive Officer Randolph L. Marten said, Our relentless pursuit of continuous operating improvement just produced the highest operating revenue and operating income for any quarter and year in our 75-year history. Our 2020 operating ratio, net of fuel surcharges, was also the best ratio for any year since we became a public company in 1986. Our 21.9% operating income improvement in 2020 continues the strong growth we achieved in 2019 of 8.7% and in 2018 of 23.7%. Success breeds success, driven by the smart, disciplined work of our talented people.

We have been increasing and will continue to increase the compensation for our premium services within the tight freight market. We also improved our Truckload miles per tractor by 6.3% in the fourth quarter of 2020 and by 6.2% for the full year by making disciplined data-driven decisions and adjustments utilizing our in-house operating technology. We expect to continue to build on our success in expanding the capacity we provide within our unique multifaceted business model across our diverse customer base by offering the best careers for the industrys top, experienced drivers.

We embrace our responsibility to keep our valued drivers, maintenance personnel and employees across all functions and regions 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. This includes our paying $3.4 million in 2020 for medical claims involving COVID-19, pay to employees off-work while recovering from COVID-19, and for safety measures including providing masks and hand sanitizer (purchasing the components, preparing and distributing over 6,000 bottles in March when sanitizer was not available), increasing the frequency and extent of cleaning processes to our facilities and tractors, and modifying our facilities for improved social distancing.

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 Martens 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

December December 31, 31,(In thousands, except share information) 2020 2019 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 66,127 $ 31,461 Receivables: Trade, net 83,426 90,712 Other 4,202 11,055 Prepaid expenses and other 21,903 20,938 Total current assets 175,658 154,166 Property and equipment: Revenue equipment, buildings and land, office 930,123 904,237 equipment and otherAccumulated depreciation (275,950 ) (263,843 )Net property and equipment 654,173 640,394 Other noncurrent assets 1,805 2,026 Total assets $ 831,636 $ 796,586 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 25,702 $ 22,917 Insurance and claims accruals 39,595 31,729 Accrued and other current liabilities 24,497 21,680 Total current liabilities 89,794 76,326 Deferred income taxes 121,098 122,022 Noncurrent operating lease liabilities 411 649 Total liabilities 211,303 198,997 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; 82,705,005 shares 827 821 at December 31, 2020, and 82,055,199 shares atDecember 31, 2019, issued and outstandingAdditional paid-in capital 85,070 79,465 Retained earnings 534,436 517,303 Total stockholders? equity 620,333 597,589 Total liabilities and stockholders? equity $ 831,636 $ 796,586

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

ThreeMonths Year Ended December 31, Ended December 31, (In thousands,except per 2020 2019 2020 2019 shareinformation) Operating $ 227,333 $ 217,185 $ 874,374 $ 843,271 revenue Operatingexpenses (income):Salaries,wages and 79,121 72,707 300,155 274,156 benefitsPurchased 40,937 41,596 154,613 158,948 transportationFuel and fuel 24,700 31,437 98,133 121,341 taxesSupplies and 11,314 11,998 47,815 46,737 maintenanceDepreciation 25,914 24,842 102,893 95,137 Operatingtaxes and 2,837 2,678 10,840 10,100 licensesInsurance and 12,294 8,846 47,454 38,201 claimsCommunications 2,050 1,908 8,011 7,709 and utilitiesGain ondisposition of (2,834 ) (3,343 ) (8,733 ) (8,680 )revenueequipmentGain ondisposition of - - (1,718 ) - facilityOther 5,442 5,729 21,665 23,124 Totaloperating 201,775 198,398 781,128 766,773 expenses Operating 25,558 18,787 93,246 76,498 income Other (13 ) (262 ) (140 ) (1,190 ) Income before 25,571 19,049 93,386 77,688 income taxes Income taxes 5,967 3,301 23,886 16,617 expense Net income $ 19,604 $ 15,748 $ 69,500 $ 61,071 Basic earningsper common $ 0.24 $ 0.19 $ 0.84 $ 0.75 share Dilutedearnings per $ 0.24 $ 0.19 $ 0.84 $ 0.74 common share Dividendsdeclared per $ 0.54 $ 0.02 $ 0.633 $ 0.513 common share

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Three Months Three Three Months Months Ended Ended Ended December 31, December December 31, 31,(Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, net of $ 87,460 $ 82,991 $ 4,469 5.4 %fuel surchargerevenueTruckload fuelsurcharge 8,733 12,278 (3,545 ) (28.9 )revenueTotal Truckload 96,193 95,269 924 1.0 revenue Dedicatedrevenue, net of 71,313 59,570 11,743 19.7 fuel surchargerevenueDedicated fuelsurcharge 9,670 11,345 (1,675 ) (14.8 )revenueTotal Dedicated 80,983 70,915 10,068 14.2 revenue Intermodalrevenue, net of 20,817 21,132 (315 ) (1.5 )fuel surchargerevenueIntermodal fuelsurcharge 1,959 3,391 (1,432 ) (42.2 )revenueTotalIntermodal 22,776 24,523 (1,747 ) (7.1 )revenue Brokerage 27,381 26,478 903 3.4 revenue Total operating $ 227,333 $ 217,185 $ 10,148 4.7 %revenue Operating income:Truckload $ 11,270 $ 7,110 $ 4,160 58.5 %Dedicated 9,900 8,110 1,790 22.1 Intermodal 2,166 1,472 694 47.1 Brokerage 2,222 2,095 127 6.1 Total operating $ 25,558 $ 18,787 $ 6,771 36.0 %income Operating ratio:Truckload 88.3 % 92.5 % Dedicated 87.8 88.6 Intermodal 90.5 94.0 Brokerage 91.9 92.1 Consolidated 88.8 % 91.3 % operating ratio

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Year Year Year Ended Ended Ended December 31, December December 31, 31,(Dollars in 2020 2019 2020 vs. 2020 vs. thousands) 2019 2019Operating revenue:Truckloadrevenue, netof fuel $ 342,357 $ 329,304 $ 13,053 4.0 %surchargerevenueTruckload fuelsurcharge 36,791 48,696 (11,905 ) (24.4 )revenueTotalTruckload 379,148 378,000 1,148 0.3 revenue Dedicatedrevenue, netof fuel 271,550 223,935 47,615 21.3 surchargerevenueDedicated fuelsurcharge 38,234 42,049 (3,815 ) (9.1 )revenueTotalDedicated 309,784 265,984 43,800 16.5 revenue Intermodalrevenue, netof fuel 79,944 77,750 2,194 2.8 surchargerevenueIntermodalfuel surcharge 8,789 12,644 (3,855 ) (30.5 )revenueTotalIntermodal 88,733 90,394 (1,661 ) (1.8 )revenue Brokerage 96,709 108,893 (12,184 ) (11.2 )revenue Totaloperating $ 874,374 $ 843,271 $ 31,103 3.7 %revenue Operating income:Truckload $ 39,637 $ 29,666 $ 9,971 33.6 %Dedicated 40,909 31,245 9,664 30.9 Intermodal 5,730 6,612 (882 ) (13.3 )Brokerage 6,970 8,975 (2,005 ) (22.3 )Totaloperating $ 93,246 $ 76,498 $ 16,748 21.9 %income Operating ratio:Truckload 89.5 % 92.2 % Dedicated 86.8 88.3 Intermodal 93.5 92.7 Brokerage 92.8 91.8 Consolidatedoperating 89.3 % 90.9 % ratio

MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)

Three Months Year Ended December 31, Ended December 31, 2020 2019 2020 2019 Truckload Segment:Revenue (in $ 96,193 $ 95,269 $ 379,148 $ 378,000 thousands)Average revenue,net of fuelsurcharges, per $ 4,116 $ 3,736 $ 3,926 $ 3,797 tractor per week^(1)Average tractors 1,617 1,690 1,668 1,663 ^(1)Average miles 526 554 547 548 per tripNon-revenuemiles percentage 10.4 % 12.0 % 10.7 % 11.6 %^(2)Total miles (in 40,185 39,538 165,267 155,177 thousands) Dedicated Segment:Revenue (in $ 80,983 $ 70,915 $ 309,784 $ 265,984 thousands)Average revenue,net of fuelsurcharges, per $ 3,350 $ 3,286 $ 3,316 $ 3,378 tractor per week^(1)Average tractors 1,620 1,380 1,566 1,272 ^(1)Average miles 303 313 305 315 per tripNon-revenuemiles percentage 0.7 % 0.6 % 0.7 % 0.7 %^(2)Total miles (in 34,044 29,114 132,597 108,814 thousands) Intermodal Segment:Revenue (in $ 22,776 $ 24,523 $ 88,733 $ 90,394 thousands)Loads 8,708 9,731 36,444 36,309 Average tractors 125 107 106 91 Brokerage Segment:Revenue (in $ 27,381 $ 26,478 $ 96,709 $ 108,893 thousands)Loads 13,928 15,690 58,986 63,200 At December 31,2020 and December 31,2019:Total tractors^ 3,331 3,212 (1)Average age ofcompany tractors 1.6 1.8 (in years)Total trailers 5,395 5,464 Average age ofcompany trailers 3.0 2.4 (in years)Ratio oftrailers to 1.6 1.7 tractors^(1)



Three Months Year Ended December 31, Ended December 31, (In 2020 2019 2020 2019 thousands) Net cashprovided by $ 34,891 $ 34,439 $ 189,598 $ 156,460 operatingactivitiesNet cash(used for) (12,577 ) (42,020 ) (106,325 ) (140,509 )investingactivitiesNet cash(used for) (44,466 ) (1,438 ) (48,607 ) (41,253 )financingactivities Weightedaverage sharesoutstanding:Basic 82,690 82,043 82,527 81,945 Diluted 83,311 82,824 83,164 82,670

Includes tractors driven by both company-employed drivers and independent(1 ) contractors. Independent contractors provided 143 and 92 tractors as of December 31, 2020 and 2019, respectively. (2 ) Represents the percentage of miles for which the company is not compensated.