Marten Transport Announces Third Quarter Results
MONDOVI, Wis., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $3.8 million, or 5 cents per diluted share, for the third quarter ended September 30, 2024, compared with $13.6 million, or 17 cents per diluted share, for the third quarter of 2023. For the nine-month period ended September 30, 2024, net income was $21.3 million, or 26 cents per diluted share, compared with $58.0 million, or 71 cents per diluted share, for the 2023 nine-month period.
Operating revenue was $237.4 million for the third quarter of 2024 compared with $279.5 million for the third quarter of 2023. Excluding fuel surcharges, operating revenue was $207.9 million for the 2024 quarter compared with $239.1 million for the 2023 quarter. Fuel surcharge revenue decreased to $29.5 million for the 2024 quarter from $40.5 million for the 2023 quarter.
Operating revenue was $733.3 million for the first nine months of 2024 compared with $863.2 million for the first nine months of 2023. Excluding fuel surcharges, operating revenue was $637.1 million for the 2024 period compared with $742.6 million for the 2023 period. Fuel surcharge revenue decreased to $96.1 million for the 2024 period compared with $120.6 million for the 2023 period.
Operating income was $4.3 million for the third quarter of 2024 compared with $17.2 million for the third quarter of 2023.
Operating income was $26.5 million for the first nine months of 2024 compared with $74.5 million for the first nine months of 2023.
Operating expenses as a percentage of operating revenue were 98.2% for the 2024 quarter and 93.8% for the 2023 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 97.9% for the 2024 quarter and 92.8% for the 2023 quarter.
Operating expenses as a percentage of operating revenue were 96.4% for the first nine months of 2024 and 91.4% for the first nine months of 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 95.8% for the 2024 period and 90.0% for the 2023 period.
Executive Chairman Randolph L. Marten stated, "Our earnings were heavily pressured by the considerable duration and depth of the freight market recession's oversupply and weak demand - and the cumulative impact of inflationary operating costs and freight rate reductions, which has also led to freight network disruptions. Our unique multifaceted business model's value is highlighted by the operating results this year for our dedicated, brokerage and MRTN de Mexico operations."
"This quarter was the first quarter with sequential improvement in our combined truckload and dedicated rate per total mile since the fourth quarter of 2022."
"We are seeing increased interest by our customers to secure dedicated capacity. The recent addition of new multi-year dedicated programs for an additional 133 drivers, which I mentioned in our second quarter earnings release, has increased to 149 drivers, who we expect to be substantially in service by the end of this year. Additionally, we extended each of our contracts for dedicated programs due in the third quarter covering 337 of our drivers."
"We are focused on minimizing the freight market's impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services, across each of our business operations for what comes next in the freight cycle as the market moves toward equilibrium."
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 Marten's 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, Mexico and Canada, 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. These statements include a discussion of Marten's 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 Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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, Doug Petit, 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
September 30,
December 31,
(In thousands, except share information)
2024
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
42,990
$
53,213
Receivables:
Trade, net
93,539
105,501
Other
6,893
10,356
Prepaid expenses and other
26,853
27,512
Total current assets
170,275
196,582
Property and equipment:
Revenue equipment, buildings and land, office equipment and other
1,192,736
1,162,336
Accumulated depreciation
(364,712
)
(370,103
)
Net property and equipment
828,024
792,233
Other noncurrent assets
1,705
1,524
Total assets
$
1,000,004
$
990,339
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
47,282
$
36,516
Insurance and claims accruals
42,946
47,017
Accrued and other current liabilities
26,521
26,709
Total current liabilities
116,749
110,242
Deferred income taxes
116,443
122,462
Noncurrent operating lease liabilities
351
249
Total liabilities
233,543
232,953
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; 192,000,000 shares authorized; 81,447,838 shares at September 30, 2024, and 81,312,168 shares at December 31, 2023, issued and outstanding
814
813
Additional paid-in capital
52,225
49,789
Retained earnings
713,422
706,784
Total stockholders' equity
766,461
757,386
Total liabilities and stockholders' equity
$
1,000,004
$
990,339
MARTEN TRANSPORT, LTD. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months
Nine Months
Ended September 30,
Ended September 30,
(In thousands, except per share information)
2024
2023
2024
2023
Operating revenue
$
237,366
$
279,538
$
733,276
$
863,233
Operating expenses (income):
Salaries, wages and benefits
83,442
92,620
258,723
287,468
Purchased transportation
44,862
49,673
129,911
152,075
Fuel and fuel taxes
35,781
48,695
114,151
137,706
Supplies and maintenance
16,464
17,896
49,006
51,291
Depreciation
27,392
29,017
84,125
87,974
Operating taxes and licenses
2,505
2,821
7,619
8,345
Insurance and claims
13,759
13,254
37,975
40,805
Communications and utilities
2,166
2,584
6,834
7,625
Gain on disposition of revenue equipment
(881
)
(3,014
)
(4,584
)
(11,810
)
Other
7,607
8,762
23,023
27,301
Total operating expenses
233,097
262,308
706,783
788,780
Operating income
4,269
17,230
26,493
74,453
Other
(922
)
(1,017
)
(2,732
)
(2,938
)
Income before income taxes
5,191
18,247
29,225
77,391
Income taxes expense
1,437
4,649
7,936
19,417
Net income
$
3,754
$
13,598
$
21,289
$
57,974
Basic earnings per common share
$
0.05
$
0.17
$
0.26
$
0.71
Diluted earnings per common share
$
0.05
