GlobeNewswire Inc | Jul 15, 2021 04:02PM EDT

July 15, 2021

MONDOVI, Wis., July 15, 2021 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported the highest operating revenue and operating income for any quarter in Martens history and the best operating ratio, net of fuel surcharges, for any quarter since Marten became a public company in 1986. For the second quarter ended June 30, 2021, net income improved 18.1% to $21.4 million, or 26 cents per diluted share, from $18.1 million, or 22 cents per diluted share, for the second quarter of 2020. For the first six months of 2021, net income improved 23.8% to $39.4 million, or 47 cents per diluted share, from $31.9 million, or 38 cents per diluted share, for the first six months of 2020.

Operating Results Comparison Percentage Percentage Percentage Percentage Increase Increase Increase Increase Three Six Months Year Year Months Ended Ended Ended Ended June 30, June 30, December December 31, 31, 2021 vs. 2021 vs. 2020 vs. 2019 vs. 2020 2020 2019 2018 Operating revenue 9.4 % 5.7 % 3.7 % 7.1 % Operating revenue, net of fuel 5.0 % 3.7 % 6.8 % 8.6 % surcharges Operating income 12.9 % 21.3 % 21.9 % 8.7 % Net income 18.1 % 23.8 % 13.8 % 11.0 %

Operating revenue improved 9.4% to a record $232.4 million for the second quarter of 2021 from $212.4 million for the second quarter of 2020, and improved 5.7% to $455.5 million for the first six months of 2021 from $431.0 million for the first six months of 2020. Excluding fuel surcharges, operating revenue improved 5.0% to $203.7 million for the 2021 quarter from $194.0 million for the 2020 quarter, and improved 3.7% to $401.8 million for the first six months of 2021 from $387.4 million for the first six months of 2020. Fuel surcharge revenue increased to $28.8 million for the 2021 quarter from $18.3 million for the 2020 quarter, and increased to $53.7 million for the first six months of 2021 from $43.6 million for the first six months of 2020 due to significantly higher fuel prices.

Operating income improved 12.9% to a record $28.5 million for the second quarter of 2021 from $25.3 million for the second quarter of 2020. This years second quarter operating income was $3.0 million more than Martens previous record. Operating income improved 21.3% to $52.5 million for the first six months of 2021 from $43.3 million for the first six months of 2020.

Operating expenses as a percentage of operating revenue improved to 87.7% for the second quarter of 2021 from 88.1% for the second quarter of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.0%, the best ratio for any quarter since Marten became a public company in 1986, from 87.0%.

Operating expenses as a percentage of operating revenue improved to 88.5% for the first six months of 2021 from 90.0% for the first six months of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.9% from 88.8%.

Executive Chairman Randolph L. Marten said, Our talented and disciplined people capitalized on the continuing tight freight market to drive our highest operating revenue and operating income for any quarter in our history, and our best operating ratio, net of fuel surcharges, for any quarter since we became a public company in 1986. Our 21.3% operating income improvement in this years first six months continues the consistent strong operating income growth we produced in 2020 of 21.9% and in 2019 of 8.7%, across periods that included some challenging operating environments.

We have been increasing and will continue to increase the compensation from our customers for our premium services within the constrained freight market largely caused by the unrelenting national shortage of qualified drivers. We are also heightening our emphasis on structurally improving our drivers jobs and work-life balance by collaborating with our customers.

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, 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, Chief Executive Officer and 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) 2021 2020 (Unaudited)ASSETS Current assets: Cash and cash equivalents $ 80,672 $ 66,127 Receivables: Trade, net 92,920 83,426 Other 4,904 4,202 Prepaid expenses and other 23,444 21,903 Total current assets 201,940 175,658 Property and equipment: Revenue equipment, buildings and land, office 947,071 930,123 equipment and otherAccumulated depreciation (266,342 ) (275,950 )Net property and equipment 680,729 654,173 Other noncurrent assets 1,694 1,805 Total assets $ 884,363 $ 831,636 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 39,279 $ 25,702 Insurance and claims accruals 41,438 39,595 Accrued and other current liabilities 26,272 24,497 Total current liabilities 106,989 89,794 Deferred income taxes 123,312 121,098 Noncurrent operating lease liabilities 421 411 Total liabilities 230,722 211,303 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; 82,880,930 shares 829 827 at June 30, 2021, and 82,705,005 shares atDecember 31, 2020, issued and outstandingAdditional paid-in capital 85,578 85,070 Retained earnings 567,234 534,436 Total stockholders? equity 653,641 620,333 Total liabilities and stockholders? equity $ 884,363 $ 831,636

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

ThreeMonths Six Months Ended June 30, Ended June 30, (In thousands,except per 2021 2020 2021 2020 shareinformation) Operating $ 232,442 $ 212,384 $ 455,488 $ 431,030 revenue Operatingexpenses (income):Salaries,wages and 75,296 73,476 148,294 146,237 benefitsPurchased 45,003 36,165 85,768 76,610 transportationFuel and fuel 32,007 20,868 60,944 49,165 taxesSupplies and 11,167 11,833 22,182 24,061 maintenanceDepreciation 25,540 25,972 51,227 51,399 Operatingtaxes and 2,718 2,615 5,430 5,254 licensesInsurance and 9,391 11,633 20,837 23,917 claimsCommunications 2,056 1,977 4,139 3,962 and utilitiesGain ondisposition of (5,339 ) (2,216 ) (7,323 ) (3,771 )revenueequipmentOther 6,085 4,805 11,474 10,908 Totaloperating 203,924 187,128 402,972 387,742 expenses Operating 28,518 25,256 52,516 43,288 income Other (9 ) (13 ) (19 ) (110 ) Income before 28,527 25,269 52,535 43,398 income taxes Income taxes 7,109 7,135 13,111 11,546 expense Net income $ 21,418 $ 18,134 $ 39,424 $ 31,852 Basic earningsper common $ 0.26 $ 0.22 $ 0.48 $ 0.39 share Dilutedearnings per $ 0.26 $ 0.22 $ 0.47 $ 0.38 common share Dividendsdeclared per $ 0.04 $ 0.027 $ 0.08 $ 0.053 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 2021 2020 2021 vs. 2021 vs. thousands) 2020 2020Operating revenue:Truckloadrevenue, net of $ 83,633 $ 85,966 $ (2,333 ) (2.7 )%fuel surchargerevenueTruckload fuelsurcharge 12,308 8,234 4,074 49.5 revenueTotal Truckload 95,941 94,200 1,741 1.8 revenue Dedicatedrevenue, net of 67,227 67,076 151 0.2 fuel surchargerevenueDedicated fuelsurcharge 12,894 8,351 4,543 54.4 revenueTotal Dedicated 80,121 75,427 4,694 6.2 revenue Intermodalrevenue, net of 22,031 18,542 3,489 18.8 fuel surchargerevenueIntermodal fuelsurcharge 3,561 1,759 1,802 102.4 revenueTotalIntermodal 25,592 20,301 5,291 26.1 revenue Brokerage 30,788 22,456 8,332 37.1 revenue Total operating $ 232,442 $ 212,384 $ 20,058 9.4 %revenue Operating income:Truckload $ 13,197 $ 11,036 $ 2,161 19.6 %Dedicated 10,617 11,452 (835 ) (7.3 )Intermodal 1,850 954 896 93.9 Brokerage 2,854 1,814 1,040 57.3 Total operating $ 28,518 $ 25,256 $ 3,262 12.9 %income Operating ratio:Truckload 86.2 % 88.3 % Dedicated 86.7 84.8 Intermodal 92.8 95.3 Brokerage 90.7 91.9 Consolidated 87.7 % 88.1 % operating 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 2021 2020 2021 vs. 2021 vs. thousands) 2020 2020Operating revenue:Truckloadrevenue, net of $ 167,552 $ 169,823 $ (2,271 ) (1.3 )%fuel surchargerevenueTruckload fuelsurcharge 23,304 19,509 3,795 19.5 revenueTotal Truckload 190,856 189,332 1,524 0.8 revenue Dedicatedrevenue, net of 134,129 131,235 2,894 2.2 fuel surchargerevenueDedicated fuelsurcharge 24,229 19,229 5,000 26.0 revenueTotal Dedicated 158,358 150,464 7,894 5.2 revenue Intermodalrevenue, net of 41,477 39,136 2,341 6.0 fuel surchargerevenueIntermodal fuelsurcharge 6,119 4,845 1,274 26.3 revenueTotalIntermodal 47,596 43,981 3,615 8.2 revenue Brokerage 58,678 47,253 11,425 24.2 revenue Total operating $ 455,488 $ 431,030 $ 24,458 5.7 %revenue Operating income:Truckload $ 24,612 $ 17,821 $ 6,791 38.1 %Dedicated 19,553 19,985 (432 ) (2.2 )Intermodal 3,311 2,260 1,051 46.5 Brokerage 5,040 3,222 1,818 56.4 Total operating $ 52,516 $ 43,288 $ 9,228 21.3 %income Operating ratio:Truckload 87.1 % 90.6 % Dedicated 87.7 86.7 Intermodal 93.0 94.9 Brokerage 91.4 93.2 Consolidated 88.5 % 90.0 % operating ratio

MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)

Three Months Six Months Ended June 30, Ended June 30, 2021 2020 2021 2020 Truckload Segment:Revenue (in $ 95,941 $ 94,200 $ 190,856 $ 189,332 thousands)Average revenue,net of fuelsurcharges, per $ 4,146 $ 3,829 $ 4,101 $ 3,821 tractor per week^(1)Average tractors 1,552 1,727 1,580 1,710 ^(1)Average miles 513 557 524 558 per tripNon-revenuemiles percentage 9.6 % 10.9 % 9.9 % 11.0 %^(2)Total miles (in 37,285 42,833 75,568 83,872 thousands) Dedicated Segment:Revenue (in $ 80,121 $ 75,427 $ 158,358 $ 150,464 thousands)Average revenue,net of fuelsurcharges, per $ 3,268 $ 3,314 $ 3,241 $ 3,309 tractor per week^(1)Average tractors 1,582 1,557 1,601 1,525 ^(1)Average miles 323 307 315 306 per tripNon-revenuemiles percentage 1.1 % 0.8 % 0.9 % 0.8 %^(2)Total miles (in 32,255 33,174 64,254 64,710 thousands) Intermodal Segment:Revenue (in $ 25,592 $ 20,301 $ 47,596 $ 43,981 thousands)Loads 8,646 8,693 16,628 18,430 Average tractors 148 98 141 99 Brokerage Segment:Revenue (in $ 30,788 $ 22,456 $ 58,678 $ 47,253 thousands)Loads 14,341 15,280 28,916 31,388 At June 30, 2021and June 30, 2020:Total tractors^ 3,162 3,313 (1)Average age ofcompany tractors 1.5 1.8 (in years)Total trailers 5,299 5,364 Average age ofcompany trailers 3.2 2.7 (in years)Ratio oftrailers to 1.7 1.6 tractors^(1)



Three Months Six Months Ended June 30, Ended June 30, (In thousands) 2021 2020 2021 2020 Net cashprovided by $ 39,795 $ 60,587 $ 83,365 $ 104,067 operatingactivitiesNet cash (usedfor) investing (44,021 ) (22,558 ) (61,438 ) (59,190 )activitiesNet cash (usedfor) provided (3,685 ) 1,158 (7,382 ) (1,015 )by financingactivities Weightedaverage shares outstanding:Basic 82,840 82,527 82,799 82,371 Diluted 83,397 83,133 83,384 83,018

Includes tractors driven by both company-employed drivers and independent(1) contractors. Independent contractors provided 118 and 124 tractors as of June 30, 2021 and 2020, respectively. (2) Represents the percentage of miles for which the company is not compensated.