Marten Transport Announces Third Quarter Results


MONDOVI, Wis., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) announced today its financial and operating results for the quarter ended September 30, 2009.

For the third quarter of 2009, our net income was $3.5 million, or 16 cents per diluted share, compared with $6.1 million, or 28 cents per diluted share, for the same quarter of 2008. For the nine-month period of 2009, net income was $12.0 million, or 55 cents per diluted share, compared with $12.2 million, or 56 cents per diluted share, for the same nine-month period of 2008.

Operating revenue, consisting of revenue from truckload and logistics operations, decreased 20.8% to $129.4 million in the third quarter of 2009 from $163.4 million in the 2008 quarter and decreased 19.2% to $377.2 million in the nine-month period of 2009 from $466.7 million in the 2008 nine-month period. The decreases were primarily due to fuel surcharge revenue decreasing to $15.7 million in the quarter from $41.3 million in the 2008 quarter and to $39.1 million in the 2009 nine-month period from $109.4 million in the 2008 nine-month period, caused by significantly lower fuel prices in the 2009 periods. Our operating revenue was negatively impacted by the harsh operating environment with reduced freight volumes, excess capacity furthered by lenders' and lessors' unwillingness to liquidate insolvent carriers, and an unprecedented increase in shipper bid packages resulting in a non-sustainable rate environment. Operating revenue, net of fuel surcharge revenue, decreased 6.9% to $113.7 million in the 2009 quarter from $122.1 million in the 2008 quarter and decreased 5.4% to $338.1 million in the 2009 nine-month period from $357.3 million in the 2008 nine-month period, primarily due to a decrease in average miles per tractor.

Operating expenses decreased 19.6% to $122.9 million in the third quarter of 2009 from $152.8 million in the 2008 quarter and decreased 19.9% to $355.9 million in the 2009 nine-month period from $444.3 million in the 2008 nine-month period. The operating expense decreases were primarily due to decreases in fuel and fuel taxes over both periods. Fuel and fuel taxes decreased 48.1% to $26.6 million in the third quarter of 2009 from $51.2 million in the 2008 quarter and decreased 49.8% to $72.7 million in the 2009 nine-month period from $144.9 million in the 2008 nine-month period. This improvement was primarily attributable to significantly lower fuel prices and fewer miles driven in the 2009 periods, and to our continued emphasis on controlling tractor and trailer fuel costs.

Our operating ratio (operating expenses as a percentage of operating revenue) was 94.9% for the third quarter of 2009 compared with 93.6% for the same quarter in 2008 and improved to 94.4% for the nine-month period of 2009 from 95.2% for the 2008 nine-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, "With our multi-faceted business model, our positive cash position with minimal debt, and our ability to keep our Marten team intact, from management to the hard-working drivers and other employees, we are confident that we are well-positioned for growth. We continue to expand our logistics, regional and Mexican operations while focusing on superior customer service, profitable freight selection and aggressive cost controls. We believe that many of the benefits of our strategic initiatives and cost controls have not yet been fully realized.

"Our logistics business continued to expand at a solid pace. Logistics revenue, net of intermodal fuel surcharges, grew to $27.4 million in the third quarter, an increase of 16.6% over the 2008 quarter. For the year, logistics revenue, net of intermodal fuel surcharges, grew 11.3% to $75.2 million, compared to $67.6 million in 2008. Logistics revenue consists of revenue from our internal brokerage and intermodal operations and revenue associated with our 45% interest in MW Logistics, LLC, a third-party provider of logistics services.

"Finally, we are pleased to be named to the Forbes.com list of America's 200 Best Small Companies for the fourth time in the last five years."

Marten Transport, with headquarters in Mondovi, Wis., is one of the leading temperature-sensitive truckload carriers in the United States. Marten specializes in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Marten offers service in the United States, Canada and Mexico, concentrating on expedited movements for high-volume customers. Marten's 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, including that we are well-positioned for growth. 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 us that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.



                        MARTEN TRANSPORT, LTD.                        
                 CONSOLIDATED CONDENSED BALANCE SHEETS                
                            (Unaudited)                               
                                                                      
                                                                      
                                               Sept. 30,      Dec. 31,
 (In thousands, except share information)        2009           2008  
                                              ------------------------
 ASSETS                                                               
   Current assets:                                                    
     Cash and cash equivalents                $   7,891     $   2,395 
     Marketable securities                        4,750         2,604 
     Receivables:                                                     
       Trade, net                                49,879        50,143 
       Other                                      6,612         7,385 
     Prepaid expenses and other                  10,534        13,705 
     Deferred income taxes                        6,593         6,140 
                                              ----------------------- 
          Total current assets                   86,259        82,372 
                                              ----------------------- 
   Property and equipment:                                            
     Revenue equipment, buildings                                     
      and land, office equipment                                      
      and other                                 482,581       451,172 
     Accumulated depreciation                  (150,084)     (136,871)
                                              ----------------------- 
          Net property and equipment            332,497       314,301 
                                                                      
   Other assets                                     559           770 
                                              ----------------------- 
              TOTAL ASSETS                    $ 419,315     $ 397,443 
                                              ======================= 
 LIABILITIES AND STOCKHOLDERS' EQUITY                                 
   Current liabilities:                                               
     Checks issued in excess of cash                                  
      balances                                $   1,241     $   1,807 
     Accounts payable and accrued                                     
      liabilities                                38,235        32,894 
     Insurance and claims accruals               20,679        21,386 
     Current maturities of long-term debt         1,428         1,428 
                                              ----------------------- 
          Total current liabilities              61,583        57,515 
   Long-term debt, less current                                       
    maturities                                       --         1,429 
   Deferred income taxes                         87,039        81,048 
                                              ----------------------- 
          Total liabilities                     148,622       139,992 
                                              ----------------------- 
                                                                      
   Stockholders' equity:                                              
     Marten Transport, Ltd. stockholders'                             
       equity:                                                        
        Preferred stock, $.01 par value                               
         per share; 2,000,000 shares                                  
         authorized; no shares                                        
         issued and outstanding                      --            -- 
        Common stock, $.01 par value                                  
         per share; 48,000,000 shares                                 
         authorized; 21,885,073 shares                                
         at September 30, 2009, and                                   
         21,830,071 shares at                                         
         December 31, 2008, issued and                                
         outstanding                                219           218 
        Additional paid-in capital               76,351        75,305 
        Retained earnings                       192,215       180,213 
                                              ----------------------- 
          Total Marten Transport, Ltd.                                
           stockholders' equity                 268,785       255,736 
     Noncontrolling interest                      1,908         1,715 
                                              ----------------------- 
          Total stockholders' equity            270,693       257,451 
                                              ----------------------- 
              TOTAL LIABILITIES AND                                   
               STOCKHOLDERS' EQUITY           $ 419,315     $ 397,443 
                                              ======================= 




                            MARTEN TRANSPORT, LTD.                         
             CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS          
                               (Unaudited)                                
                                                                      
                                                                      
 (In thousands,              Three Months            Nine Months
   except per share         Ended Sept. 30,         Ended Sept. 30,   
   information)         --------------------------------------------- 
                            2009       2008        2009        2008   
                        --------------------------------------------- 
                                                                      
 OPERATING REVENUE      $ 129,395   $ 163,377   $ 377,154   $ 466,745 
                        --------------------------------------------- 
 OPERATING EXPENSES                                                   
  (INCOME):                                                           
   Salaries, wages and                                                
    benefits               34,257      39,885     106,118     114,322 
   Purchased                                                          
    transportation         29,192      29,125      77,877      88,414 
   Fuel and fuel taxes     26,580      51,215      72,718     144,929 
   Supplies and                                                       
    maintenance             9,630       9,588      29,006      28,298 
   Depreciation            13,272      12,396      40,091      36,704 
   Operating taxes and                                                
    licenses                1,591       1,588       4,969       5,062 
   Insurance and claims     5,356       5,770      15,555      17,988 
   Communications and                                                 
    utilities               1,011         837       3,078       2,707 
   Gain on disposition                                                
    of revenue                                                        
    equipment                (596)       (453)     (1,595)     (2,439)
   Other                    2,566       2,898       8,047       8,322 
                        --------------------------------------------- 
                                                                      
      Total operating                                                 
       expenses           122,859     152,849     355,864     444,307 
                        --------------------------------------------- 
                                                                      
 OPERATING INCOME           6,536      10,528      21,290      22,438 
                        --------------------------------------------- 
                                                                      
                                                                      
 OTHER EXPENSES                                                       
  (INCOME):                                                           
   Interest expense            35         196         133       1,032 
   Interest income            (51)        (38)       (114)       (152)
                        --------------------------------------------- 
                              (16)        158          19         880 
                        --------------------------------------------- 
                                                                      
 INCOME BEFORE INCOME                                                 
  TAXES                     6,552      10,370      21,271      21,558 
   Less: Income before                                                
    income taxes                                                       
    attributable to                                                    
    noncontrolling                                                     
    interest                   93         317         354         922 
                        --------------------------------------------- 
                                                                      
 INCOME BEFORE INCOME                                                 
  TAXES ATTRIBUTABLE                                                  
  TO MARTEN                                                           
  TRANSPORT, LTD            6,459      10,053      20,917      20,636 
                                                                      
 PROVISION FOR                                                        
  INCOME TAXES              2,987       3,926       8,915       8,387 
                        --------------------------------------------- 
                                                                      
 NET INCOME             $   3,472   $   6,127   $  12,002   $  12,249 
                        ============================================= 
                                                                      
 BASIC EARNINGS PER                                                   
  COMMON SHARE          $    0.16   $    0.28   $    0.55   $    0.56 
                        ============================================= 
                                                                      
 DILUTED EARNINGS                                                     
  PER COMMON SHARE      $    0.16   $    0.28   $    0.55   $    0.56 
                        =============================================



                          MARTEN TRANSPORT, LTD. 
                          SEGMENT INFORMATION                             
                               (Unaudited)                                 
                                                                      
                                                                      
                                                   Dollar   Percentage
                                                   Change    Change    
                                                   Three     Three     
                               Three Months        Months    Months    
                                  Ended            Ended     Ended     
                               September 30,      Sept. 30, Sept. 30, 
                            -------------------   2009 vs.  2009 vs.  
 (Dollars in thousands)       2009      2008       2008      2008     
                            -------------------------------------------
 Operating revenue:                                                   
  Truckload revenue,                                                  
   net of fuel surcharge                                              
   revenue                  $ 86,324   $ 98,600   $(12,276)    (12.5)%
  Truckload fuel surcharge                                            
   revenue                    13,942     38,442    (24,500)    (63.7) 
                            ------------------------------------------- 
     Total Truckload                                                  
      revenue                100,266    137,042    (36,776)    (26.8) 
                            -------------------------------------------
                                                                      
   Logistics revenue,                                                 
    net of intermodal                                                 
    fuel surcharge                                                    
    revenue                   27,362     23,472      3,890      16.6  
   Intermodal fuel                                                    
    surcharge revenue          1,767      2,863     (1,096)    (38.3) 
                            -------------------------------------------  
     Total Logistics                                                  
      revenue                 29,129     26,335      2,794      10.6  
                            ------------------------------------------- 
                                                                      
     Total operating                                                  
      revenue               $129,395   $163,377   $(33,982)    (20.8)%
                            =========================================== 
                                                                      
 Operating income:                                                    
    Truckload               $  5,047   $  8,619   $ (3,572)    (41.4)%
    Logistics                  1,489      1,909       (420)    (22.0) 
                            -------------------------------------------
      Total operating                                                 
       income               $  6,536   $ 10,528   $ (3,992)    (37.9)%
                            =========================================== 
                                                                      
 Operating ratio:                                                     
   Truckload                  95.0%       93.7%                 (1.4)%
   Logistics                  94.9        92.8                  (2.3) 
                            --------------------          ------------- 
     Consolidated                                                     
      operating ratio         94.9%       93.6%                 (1.4)%
                            ====================          =============




                           MARTEN TRANSPORT, LTD.
                            SEGMENT INFORMATION
                                (Unaudited)

                                                  Dollar    Percentage
                                                  Change      Change
                                Nine Months     Nine Months Nine Months
                                   Ended           Ended      Ended
                               September 30,      Sept. 30,  Sept. 30,
                           ---------------------  2009 vs.   2009 vs.
  (Dollars in thousands)     2009        2008      2008       2008
                           -------------------------------------------
 Operating revenue:
  Truckload revenue, 
   net of fuel 
   surcharge revenue        $262,828    $289,737  $(26,909)   (9.3)%
  Truckload fuel 
   surcharge revenue          35,065     102,508   (67,443)  (65.8)
                           -------------------------------------------
    Total Truckload 
     revenue                 297,893     392,245   (94,352)  (24.1)
                           -------------------------------------------

  Logistics revenue,
   net of intermodal 
   fuel surcharge 
   revenue                    75,237      67,583     7,654    11.3
  Intermodal fuel 
   surcharge revenue           4,024       6,917    (2,893)  (41.8)
                           -------------------------------------------
    Total Logistics
     revenue                  79,261      74,500     4,761     6.4
                           -------------------------------------------

    Total operating 
     revenue                $377,154    $466,745  $(89,591)  (19.2)%
                           ===========================================

 Operating income:
  Truckload                 $ 16,577    $ 16,980  $   (403)   (2.4)%
  Logistics                    4,713       5,458      (745)  (13.6)
                           -------------------------------------------
    Total operating 
     income                 $ 21,290    $ 22,438  $ (1,148)   (5.1)%
                           ===========================================

 Operating ratio:
  Truckload                     94.4%       95.7%              1.4 %
  Logistics                     94.1        92.7              (1.5)
                           ---------------------          ------------
    Consolidated 
     operating
     ratio                      94.4%       95.2%              0.8 %
                           =====================          ============




                              MARTEN TRANSPORT, LTD.
                              OPERATING STATISTICS
                                  (Unaudited)

                                  Three Months        Nine Months
                                 Ended Sept. 30,     Ended Sept. 30,
                               ------------------  ------------------
                                2009       2008      2009      2008
                               --------  --------  --------  --------

 Truckload Segment:
  Revenue (in thousands)       $100,266  $137,042  $297,893  $392,245
  Average truckload revenue,
   net of fuel surcharges, per
   total mile                  $  1.490  $  1.531  $  1.505  $  1.502
  Average miles per tractor(1)   24,039    27,736    72,955    81,977
  Average truckload revenue,
   net of fuel surcharges, per
   tractor per week(1)         $  2,725  $  3,231  $  2,816  $  3,146
  Average tractors(1)             2,410     2,322     2,393     2,353
  Average miles per trip            728       835       781       863
  Non-revenue miles
   percentage(2)                    9.7%      8.0%      9.3%      8.0%
  Total miles - company-
   employed drivers (in
   thousands)                    51,818    56,897   156,487   166,794
  Total miles - independent
   contractors (in thousands)     6,120     7,510    18,108    26,058

 Logistics Segment:
  Brokerage:
    Marten Transport
      Revenue (in thousands)   $  9,796  $  6,751  $ 25,117  $ 18,365
      Loads                       5,416     3,027    13,568     8,475
    MWL
      Revenue (in thousands)   $  8,371  $  9,151  $ 23,363  $ 29,248
      Loads                       4,775     4,458    13,594    14,601
  Intermodal:
    Revenue (in thousands)     $ 10,962  $ 10,433  $ 30,781  $ 26,887
    Loads                         4,929     3,237    13,238     8,163
    Average tractors                 65        61        61        51

 At September 30, 2009, and
  September 30, 2008:
   Total tractors(1)              2,459     2,377
   Average age of company
    tractors (in years)             2.3       2.2
   Total trailers                 4,055     4,249
   Average age of company
    trailers (in years)             3.3       2.9
   Ratio of trailers to
    tractors(1)                     1.6       1.8
   Ratio of tractors to non-
    driver personnel(1)             4.3       4.7

                                  Three Months        Nine Months
                                 Ended Sept. 30,     Ended Sept. 30,
                               ------------------  ------------------
  (in thousands)                2009       2008      2009      2008
                               --------  --------  --------  --------
 Net cash provided by
  operating activities         $ 20,679  $ 28,516  $ 63,207  $ 50,234
 Net cash used for investing
  activities                     20,810    17,678    56,109    14,908

 Weighted average shares
  outstanding:
    Basic                        21,885    21,798    21,865    21,773
    Diluted                      21,988    21,952    21,982    21,926
     ------------------------------
 (1) Includes tractors driven by both company-employed drivers and
     independent contractors. Independent contractors provided 205 and
     209 tractors as of September 30, 2009, and 2008, respectively.

 (2) Represents the percentage of miles for which the company is not
     compensated.


            

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