GlobeNewswire Inc | Jan 25, 2022 04:01PM EST

January 25, 2022

MONDOVI, Wis., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 26.1% improvement in net income to $24.7 million, or 30 cents per diluted share, for the fourth quarter ended December 31, 2021, from $19.6 million, or 24 cents per diluted share, for the fourth quarter of 2020. The fourth-quarter earnings also improved sequentially from 2021 third-quarter net income of $21.3 million, or 26 cents per diluted share. For the year ended December 31, 2021, net income improved 22.9% to $85.4 million, or $1.02 per diluted share, from $69.5 million, or 84 cents per diluted share, for 2020.

Operating Results Comparison Percentage Percentage Percentage Percentage Increase Increase Increase Increase Three Year Year Year Months Ended Ended Ended Ended December December December December 31, 31, 31, 31, 2021 vs. 2021 vs. 2020 vs. 2019 vs. 2020 2020 2019 2018 Operating revenue 17.4 % 11.4 % 3.7 % 7.1 % Operating revenue, net of 12.5 % 8.3 % 6.8 % 8.6 % fuel surcharges Operating income 20.0 % 19.8 % 21.9 % 8.7 % Net income 26.1 % 22.9 % 13.8 % 11.0 %

Operating revenue for each of the quarter and year ended December 31, 2021 was the highest amount for any quarter and year in Martens 76-year history. Operating revenue improved 17.4% to $266.9 million for the fourth quarter of 2021 from $227.3 million for the fourth quarter of 2020, and improved 11.4% to $973.6 million for 2021 from $874.4 million for 2020. Excluding fuel surcharges, operating revenue improved 12.5% to $232.9 million for the 2021 quarter from $207.0 million for the 2020 quarter, and improved 8.3% to $855.9 million for 2021 from $790.6 million for 2020. Fuel surcharge revenue increased to $34.0 million for the 2021 quarter from $20.4 million for the 2020 quarter, and increased to $117.7 million for 2021 from $83.8 million for 2020 due to significantly higher fuel prices.

Operating income for each of the quarter and year ended December 31, 2021 was also the highest amount for any quarter and year in Martens history. Operating income improved 20.0% to $30.7 million for the fourth quarter of 2021 from $25.6 million for the fourth quarter of 2020. Operating income improved 19.8% to $111.7 million for 2021 from $93.2 million for 2020.

Operating expenses as a percentage of operating revenue improved to 88.5% for the fourth quarter of 2021 from 88.8% for the fourth quarter of 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.8% from 87.7%.

Operating expenses as a percentage of operating revenue improved to 88.5% for 2021 from 89.3% for 2020. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 87.0%, the best ratio for any year since Marten became a public company in 1986, from 88.2%.

Executive Chairman Randolph L. Marten stated, Martens bright and determined people consistently produce strong profitable growth, to be continued

Operating Results throughout the Pandemic ? Percentage Increase Over Same Quarter of Prior Year

Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2021 2021 2021 2021 Operating 0.1 % 0.5 % 4.7 % 2.0 % 9.4 % 16.3 % 17.4 % revenue Operating revenue, net 4.7 % 3.8 % 8.8 % 2.5 % 5.0 % 12.8 % 12.5 % of fuel surcharges Operating 26.6 % 21.8 % 36.0 % 33.1 % 12.9 % 16.8 % 20.0 % income Net income 19.4 % 8.8 % 24.5 % 31.3 % 18.1 % 17.9 % 26.1 %

Current Investor Presentation

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 and in Part II, Item 1A of the Companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. 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 Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED BALANCE SHEETS

December 31, December 31,(In thousands, except share information) 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 56,995 $ 66,127 Receivables: Trade, net 99,003 83,426 Other 6,971 4,202 Prepaid expenses and other 23,980 21,903 Total current assets 186,949 175,658 Property and equipment: Revenue equipment, buildings and land, office 956,476 930,123 equipment and otherAccumulated depreciation (274,199 ) (275,950 )Net property and equipment 682,277 654,173 Other noncurrent assets 1,464 1,805 Total assets $ 870,690 $ 831,636 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 20,150 $ 25,702 Insurance and claims accruals 42,014 39,595 Accrued and other current liabilities 31,395 24,497 Total current liabilities 93,559 89,794 Deferred income taxes 125,163 121,098 Noncurrent operating lease liabilities 291 411 Total liabilities 219,013 211,303 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; 83,034,404 shares 830 827 at December 31, 2021, and 82,705,005 shares atDecember 31, 2020, issued and outstandingAdditional paid-in capital 85,718 85,070 Retained earnings 565,129 534,436 Total stockholders? equity 651,677 620,333 Total liabilities and stockholders? equity $ 870,690 $ 831,636

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

ThreeMonths Year Ended December 31, Ended December 31,(In thousands,except per 2021 2020 2021 2020shareinformation) Operating $ 266,876 $ 227,333 $ 973,644 $ 874,374 revenue Operatingexpenses (income):Salaries,wages and 88,577 79,121 317,962 300,155 benefitsPurchased 54,592 40,937 193,221 154,613 transportationFuel and fuel 36,435 24,700 131,288 98,133 taxesSupplies and 11,592 11,314 45,459 47,815 maintenanceDepreciation 25,964 25,914 102,562 102,893 Operatingtaxes and 2,498 2,837 10,534 10,840 licensesInsurance and 10,649 12,294 41,987 47,454 claimsCommunications 2,030 2,050 8,350 8,011 and utilitiesGain ondisposition of (4,436 ) (2,834 ) (16,295 ) (8,733 )revenueequipmentGain ondisposition of - - - (1,718 )facilityOther 8,298 5,442 26,887 21,665 Totaloperating 236,199 201,775 861,955 781,128 expenses Operating 30,677 25,558 111,689 93,246 income Other (16 ) (13 ) (43 ) (140 ) Income before 30,693 25,571 111,732 93,386 income taxes Income taxes 5,963 5,967 26,304 23,886 expense Net income $ 24,730 $ 19,604 $ 85,428 $ 69,500 Basic earningsper common $ 0.30 $ 0.24 $ 1.03 $ 0.84 share Dilutedearnings per $ 0.30 $ 0.24 $ 1.02 $ 0.84 common share Dividendsdeclared per $ 0.04 $ 0.54 $ 0.66 $ 0.633 common share

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Three Months Three Months Three Months Ended Ended Ended December 31, December 31, December 31,(Dollars in 2021 2020 2021 vs. 2021 vs.thousands) 2020 2020Operating revenue:Truckloadrevenue, netof fuel $ 91,848 $ 87,460 $ 4,388 5.0 %surchargerevenueTruckload fuelsurcharge 14,345 8,733 5,612 64.3 revenueTotalTruckload 106,193 96,193 10,000 10.4 revenue Dedicatedrevenue, netof fuel 73,928 71,313 2,615 3.7 surchargerevenueDedicated fuelsurcharge 14,994 9,670 5,324 55.1 revenueTotalDedicated 88,922 80,983 7,939 9.8 revenue Intermodalrevenue, netof fuel 23,275 20,817 2,458 11.8 surchargerevenueIntermodalfuel surcharge 4,627 1,959 2,668 136.2 revenueTotalIntermodal 27,902 22,776 5,126 22.5 revenue Brokerage 43,859 27,381 16,478 60.2 revenue Totaloperating $ 266,876 $ 227,333 $ 39,543 17.4 %revenue Operating income:Truckload $ 14,750 $ 11,270 $ 3,480 30.9 %Dedicated 8,321 9,900 (1,579 ) (15.9 )Intermodal 3,328 2,166 1,162 53.6 Brokerage 4,278 2,222 2,056 92.5 Totaloperating $ 30,677 $ 25,558 $ 5,119 20.0 %income Operating ratio:Truckload 86.1 % 88.3 % Dedicated 90.6 87.8 Intermodal 88.1 90.5 Brokerage 90.2 91.9 Consolidatedoperating 88.5 % 88.8 % ratio

MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)

Dollar Percentage Change Change Year Year Year Ended Ended Ended December 31, December 31, December 31,(Dollars in 2021 2020 2021 vs. 2021 vs.thousands) 2020 2020Operating revenue:Truckloadrevenue, netof fuel $ 346,289 $ 342,357 $ 3,932 1.1 %surchargerevenueTruckload fuelsurcharge 50,377 36,791 13,586 36.9 revenueTotalTruckload 396,666 379,148 17,518 4.6 revenue Dedicatedrevenue, netof fuel 276,883 271,550 5,333 2.0 surchargerevenueDedicated fuelsurcharge 52,559 38,234 14,325 37.5 revenueTotalDedicated 329,442 309,784 19,658 6.3 revenue Intermodalrevenue, netof fuel 87,468 79,944 7,524 9.4 surchargerevenueIntermodalfuel surcharge 14,777 8,789 5,988 68.1 revenueTotalIntermodal 102,245 88,733 13,512 15.2 revenue Brokerage 145,291 96,709 48,582 50.2 revenue Totaloperating $ 973,644 $ 874,374 $ 99,270 11.4 %revenue Operating income:Truckload $ 51,032 $ 39,637 $ 11,395 28.7 %Dedicated 36,395 40,909 (4,514 ) (11.0 )Intermodal 9,479 5,730 3,749 65.4 Brokerage 14,783 6,970 7,813 112.1 Totaloperating $ 111,689 $ 93,246 $ 18,443 19.8 %income Operating ratio:Truckload 87.1 % 89.5 % Dedicated 89.0 86.8 Intermodal 90.7 93.5 Brokerage 89.8 92.8 Consolidatedoperating 88.5 % 89.3 % ratio

MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)

Three Months Year Ended December 31, Ended December 31, 2021 2020 2021 2020Truckload Segment:Revenue (in $ 106,193 $ 96,193 $ 396,666 $ 379,148 thousands)Averagerevenue, netof fuel $ 4,663 $ 4,116 $ 4,315 $ 3,926 surcharges,per tractorper week^(1)Average 1,499 1,617 1,539 1,668 tractors^(1)Averagemiles per 515 526 516 547 tripNon-revenuemiles 10.4 % 10.4 % 10.1 % 10.7 %percentage^(2)Total miles(in 35,679 40,185 147,192 165,267 thousands) Dedicated Segment:Revenue (in $ 88,922 $ 80,983 $ 329,442 $ 309,784 thousands)Averagerevenue, netof fuel $ 3,592 $ 3,350 $ 3,377 $ 3,316 surcharges,per tractorper week^(1)Average 1,566 1,620 1,572 1,566 tractors^(1)Averagemiles per 330 303 322 305 tripNon-revenuemiles 1.2 % 0.7 % 1.0 % 0.7 %percentage^(2)Total miles(in 32,491 34,044 128,256 132,597 thousands) Intermodal Segment:Revenue (in $ 27,902 $ 22,776 $ 102,245 $ 88,733 thousands)Loads 8,102 8,708 32,987 36,444 Average 152 125 143 106 tractors Brokerage Segment:Revenue (in $ 43,859 $ 27,381 $ 145,291 $ 96,709 thousands)Loads 19,345 13,928 66,512 58,986 At December31, 2021 and December 31,2020:Total 3,204 3,331 tractors^(1)Average ageof company 1.4 1.6 tractors (inyears)Total 5,299 5,395 trailersAverage ageof company 3.3 3.0 trailers (inyears)Ratio oftrailers to 1.7 1.6 tractors^(1)Totalrefrigerated 634 433 containers



Three Months Year Ended December 31, Ended December 31,(In 2021 2020 2021 2020thousands) Net cashprovided by $ 43,295 $ 34,891 $ 171,204 $ 189,598 operatingactivitiesNet cash(used for) (21,592 ) (12,577 ) (123,734 ) (106,325 )investingactivitiesNet cash(used for) (48,608 ) (44,466 ) (56,602 ) (48,607 )financingactivities Weightedaverage sharesoutstanding:Basic 82,983 82,690 82,872 82,527 Diluted 83,420 83,311 83,408 83,164

Includes tractors driven by both company-employed drivers and(1) independent contractors. Independent contractors provided 93 and 143 tractors as of December 31, 2021 and 2020, respectively. (2) Represents the percentage of miles for which the company is not compensated.