MONDOVI, Wis., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $12.4 million, or 15 cents per diluted share, for the fourth quarter ended December 31, 2023, compared with $25.5 million, or 31 cents per diluted share, for the fourth quarter of 2022. For the year ended December 31, 2023, net income was $70.4 million, or 86 cents per diluted share, compared with $110.4 million, or $1.35 per diluted share, for 2022.
Operating revenue was $268.2 million for the fourth quarter of 2023 compared with $322.6 million for the fourth quarter of 2022. Excluding fuel surcharges, operating revenue was $229.4 million for the 2023 quarter compared with $269.7 million for the 2022 quarter. Fuel surcharge revenue decreased to $38.8 million for the 2023 quarter from $52.9 million for the 2022 quarter.
Operating revenue was $1.131 billion for 2023 compared with $1.264 billion for 2022. Excluding fuel surcharges, operating revenue was $972.0 million for 2023 compared with $1.053 billion for 2022. Fuel surcharge revenue decreased to $159.4 million for 2023 from $210.4 million for 2022.
Operating income was $15.7 million for the fourth quarter of 2023 compared with $32.8 million for the fourth quarter of 2022. Operating income was $90.1 million for 2023 compared with $143.3 million for 2022.
Operating expenses as a percentage of operating revenue were 94.2% for the 2023 quarter and 89.8% for the 2022 quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 93.2% for the 2023 quarter and 87.8% for the 2022 quarter.
Operating expenses as a percentage of operating revenue were 92.0% for 2023 and 88.7% for 2022. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 90.7% for 2023 and 86.4% for 2022.
Executive Chairman Randolph L. Marten stated, “This quarter’s earnings were heavily pressured by the freight market recession’s weak demand and oversupply, inflationary operating costs, and cumulative impact of decreased freight rates leading to freight network disruptions. Additionally, our higher insurance and claims and health insurance expense and less revenue equipment gains reduced our operating income by $4.8 million, or 4.4 cents per diluted share, from this year’s third quarter.”
“We remain focused on both minimizing the freight market’s impact on our operations, and investing in and positioning our operations to capitalize on profitable organic growth opportunities as the market moves toward equilibrium from its current recessionary late stages - with fair compensation for our premium services. Accordingly, we have not agreed to any rate reductions since last August.”
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, 2022. 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
December 31,
December 31,
(In thousands, except share information)
2023
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
53,213
$
80,600
Receivables:
Trade, net
105,501
120,702
Other
10,356
7,218
Prepaid expenses and other
27,512
27,320
Total current assets
196,582
235,840
Property and equipment:
Revenue equipment, buildings and land, office equipment and other
1,162,336
1,074,832
Accumulated depreciation
(370,103
)
(346,665
)
Net property and equipment
792,233
728,167
Other noncurrent assets
1,524
1,672
Total assets
$
990,339
$
965,679
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
36,516
$
37,299
Insurance and claims accruals
47,017
45,747
Accrued and other current liabilities
26,709
41,264
Total current liabilities
110,242
124,310
Deferred income taxes
122,462
137,041
Noncurrent operating lease liabilities
249
409
Total liabilities
232,953
261,760
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; 81,312,168 shares at December 31, 2023, and 81,115,132 shares at December 31, 2022, issued and outstanding
813
811
Additional paid-in capital
49,789
47,188
Retained earnings
706,784
655,920
Total stockholders’ equity
757,386
703,919
Total liabilities and stockholders’ equity
$
990,339
$
965,679
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months
Year
Ended December 31,
Ended December 31,
(In thousands, except per share information)
2023
2022
2023
2022
Operating revenue
$
268,222
$
322,584
$
1,131,455
$
1,263,878
Operating expenses (income):
Salaries, wages and benefits
91,350
104,722
378,818
390,304
Purchased transportation
47,259
60,599
199,334
249,792
Fuel and fuel taxes
42,731
55,567
180,437
218,571
Supplies and maintenance
16,120
15,180
67,411
55,700
Depreciation
28,748
29,625
116,722
111,014
Operating taxes and licenses
2,708
2,712
11,053
10,763
Insurance and claims
15,209
12,417
56,014
50,513
Communications and utilities
2,524
2,538
10,149
9,177
Gain on disposition of revenue equipment
(1,802
)
(2,957
)
(13,612
)
(13,379
)
Other
7,718
9,398
35,019
38,079
Total operating expenses
252,565
289,801
1,041,345
1,120,534
Operating income
15,657
32,783
90,110
143,344
Other
(868
)
(520
)
(3,806
)
(827
)
Income before income taxes
16,525
33,303
93,916
144,171
Income taxes expense
4,126
7,789
23,543
33,817
Net income
$
12,399
$
25,514
$
70,373
$
110,354
Basic earnings per common share
$
0.15
$
0.31
$
0.87
$
1.35
Diluted earnings per common share
$
0.15
$
0.31
$
0.86
$
1.35
Dividends declared per common share
$
0.06
$
0.06
$
0.24
$
0.24
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 thousands)
2023
2022
2023 vs. 2022
2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue
$
95,461
$
108,565
$
(13,104
)
(12.1
)%
Truckload fuel surcharge revenue
18,023
22,759
(4,736
)
(20.8
)
Total Truckload revenue
113,484
131,324
(17,840
)
(13.6
)
Dedicated revenue, net of fuel surcharge revenue
77,731
87,985
(10,254
)
(11.7
)
Dedicated fuel surcharge revenue
17,310
23,775
(6,465
)
(27.2
)
Total Dedicated revenue
95,041
111,760
(16,719
)
(15.0
)
Intermodal revenue, net of fuel surcharge revenue
15,610
22,863
(7,253
)
(31.7
)
Intermodal fuel surcharge revenue
3,467
6,390
(2,923
)
(45.7
)
Total Intermodal revenue
19,077
29,253
(10,176
)
(34.8
)
Brokerage revenue
40,620
50,247
(9,627
)
(19.2
)
Total operating revenue
$
268,222
$
322,584
$
(54,362
)
(16.9
)%
Operating income:
Truckload
$
2,487
$
13,414
$
(10,927
)
(81.5
)%
Dedicated
9,234
12,877
(3,643
)
(28.3
)
Intermodal
296
728
(432
)
(59.3
)
Brokerage
3,640
5,764
(2,124
)
(36.8
)
Total operating income
$
15,657
$
32,783
$
(17,126
)
(52.2
)%
Operating ratio:
Truckload
97.8
%
89.8
%
Dedicated
90.3
88.5
Intermodal
98.4
97.5
Brokerage
91.0
88.5
Consolidated operating ratio
94.2
%
89.8
%
Operating ratio, net of fuel surcharges:
Truckload
97.4
%
87.6
%
Dedicated
88.1
85.4
Intermodal
98.1
96.8
Brokerage
91.0
88.5
Consolidated operating ratio, net of fuel surcharges
93.2
%
87.8
%
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
Dollar
Percentage
Change
Change
Year
Year
Year
Ended
Ended
Ended
December 31,
December 31,
December 31,
(Dollars in thousands)
2023
2022
2023 vs. 2022
2023 vs. 2022
Operating revenue:
Truckload revenue, net of fuel surcharge revenue
$
395,565
$
411,448
$
(15,883
)
(3.9
)%
Truckload fuel surcharge revenue
69,910
89,014
(19,104
)
(21.5
)
Total Truckload revenue
465,475
500,462
(34,987
)
(7.0
)
Dedicated revenue, net of fuel surcharge revenue
334,962
336,973
(2,011
)
(0.6
)
Dedicated fuel surcharge revenue
73,310
92,119
(18,809
)
(20.4
)
Total Dedicated revenue
408,272
429,092
(20,820
)
(4.9
)
Intermodal revenue, net of fuel surcharge revenue
75,887
100,452
(24,565
)
(24.5
)
Intermodal fuel surcharge revenue
16,191
29,313
(13,122
)
(44.8
)
Total Intermodal revenue
92,078
129,765
(37,687
)
(29.0
)
Brokerage revenue
165,630
204,559
(38,929
)
(19.0
)
Total operating revenue
$
1,131,455
$
1,263,878
$
(132,423
)
(10.5
)%
Operating income/(loss):
Truckload
$
24,835
$
59,392
$
(34,557
)
(58.2
)%
Dedicated
48,377
50,566
(2,189
)
(4.3
)
Intermodal
(156
)
10,639
(10,795
)
(101.5
)
Brokerage
17,054
22,747
(5,693
)
(25.0
)
Total operating income
$
90,110
$
143,344
$
(53,234
)
(37.1
)%
Operating ratio:
Truckload
94.7
%
88.1
%
Dedicated
88.2
88.2
Intermodal
100.2
91.8
Brokerage
89.7
88.9
Consolidated operating ratio
92.0
%
88.7
%
Operating ratio, net of fuel surcharges:
Truckload
93.7
%
85.6
%
Dedicated
85.6
85.0
Intermodal
100.2
89.4
Brokerage
89.7
88.9
Consolidated operating ratio, net of fuel surcharges
90.7
%
86.4
%
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
Three Months
Year
Ended December 31,
Ended December 31,
2023
2022
2023
2022
Truckload Segment:
Revenue (in thousands)
$
113,484
$
131,324
$
465,475
$
500,462
Average revenue, net of fuel surcharges, per tractor per week(1)
$
4,183
$
4,683
$
4,377
$
4,898
Average tractors(1)
1,737
1,763
1,733
1,611
Average miles per trip
533
504
519
510
Non-revenue miles percentage(2)
12.4
%
11.9
%
12.4
%
11.1
%
Total miles (in thousands)
39,278
39,303
155,929
149,868
Dedicated Segment:
Revenue (in thousands)
$
95,041
$
111,760
$
408,272
$
429,092
Average revenue, net of fuel surcharges, per tractor per week(1)
$
3,895
$
3,925
$
3,936
$
3,963
Average tractors(1)
1,518
1,706
1,632
1,631
Average miles per trip
335
345
335
341
Non-revenue miles percentage(2)
1.2
%
1.1
%
1.2
%
1.1
%
Total miles (in thousands)
31,215
34,910
133,163
136,310
Intermodal Segment:
Revenue (in thousands)
$
19,077
$
29,253
$
92,078
$
129,765
Loads
5,289
7,255
25,160
31,862
Average tractors
133
181
159
175
Brokerage Segment:
Revenue (in thousands)
$
40,620
$
50,247
$
165,630
$
204,559
Loads
23,594
25,713
91,077
95,615
At December 31, 2023 and December 31, 2022:
Total tractors(1)
3,349
3,660
Average age of company tractors (in years)
1.9
1.7
Total trailers
5,653
5,753
Average age of company trailers (in years)
4.6
3.9
Ratio of trailers to tractors(1)
1.7
1.6
Total refrigerated containers
787
802
Three Months
Year
Ended December 31,
Ended December 31,
(In thousands)
2023
2022
2023
2022
Net cash provided by operating activities
$
38,045
$
56,268
$
164,378
$
219,489
Net cash (used for) investing activities
(48,070
)
(42,542
)
(172,540
)
(134,958
)
Net cash (used for) financing activities
(4,829
)
(4,618
)
(19,225
)
(60,926
)
Weighted average shares outstanding:
Basic
81,309
81,105
81,272
81,692
Diluted
81,418
81,391
81,413
81,959
(1
)
Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 94 and 96 tractors as of December 31, 2023 and 2022, respectively.
(2
)
Represents the percentage of miles for which the company is not compensated.
