Marten Transport Announces Third Quarter Results

Marten Transport Announces Third Quarter Results

Reports Company's Highest Quarterly Net Income, Up 22.4% From 2012 Third
Quarter

MONDOVI, Wis., Oct. 15, 2013 (GLOBE NEWSWIRE) -- Marten Transport, Ltd.
(Nasdaq:MRTN) today reported the highest net income for any quarter in the
company's history. Net income improved 22.4% to $8.0 million, or 24 cents per
diluted share, for the third quarter ended September 30, 2013, from $6.5
million, or 20 cents per diluted share, for the third quarter of 2012. For the
nine-month period ended September 30, 2013, net income increased 16.9% to
$22.8 million, or 68 cents per diluted share, from $19.5 million, or 59 cents
per diluted share, for the 2012 nine-month period.

Operating revenue, consisting of revenue from truckload and logistics
operations, increased to $167.1 million for the third quarter of 2013 from
$163.6 million for the third quarter of 2012, and increased to $493.0 million
for the 2013 nine-month period from $472.0 million for the 2012 nine-month
period. Operating revenue, net of fuel surcharges and MW Logistics, LLC (MWL)
revenue, increased 7.0% to $134.5 million for the 2013 quarter from $125.8
million for the 2012 quarter, and increased 8.6% to $390.3 million for the
2013 nine-month period from $359.3 million for the 2012 nine-month period.
Fuel surcharge revenue increased to $32.6 million for the third quarter of
2013 from $30.3 million for the 2012 quarter, and increased to $96.0 million
for the 2013 nine-month period from $88.9 million for the 2012 nine-month
period. With the March 2013 deconsolidation of MWL, no MWL revenue was
included in the third quarter of 2013 compared with $7.6 million in the 2012
quarter. MWL revenue included in the first nine months of 2013 decreased by
$17.2 million from the first nine months of last year with the
deconsolidation.

Operating expenses as a percentage of operating revenue, with both amounts net
of fuel surcharge revenue, improved to 89.9% for the third quarter of 2013
from 92.6% for the third quarter of 2012. The ratio improved to 90.1% for the
2013 nine-month period from 91.5% for the 2012 nine-month period.

Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased
to announce our highest net income for any quarter in our history as well as
our fourteenth consecutive year-over-year increase in quarterly profitability.
We believe our continued growth and profitability are directly related to the
strong positioning of our truckload operations, as well as the diversification
of our service offerings in intermodal and brokerage. Our total truckload,
intermodal and broker loads increased 11.9% in the third quarter of 2013 over
the prior year's quarter. We continue to drive improvements in tractor
utilization and revenue per tractor, which increased 3.3% over the third
quarter of 2012 – on top of a 7.3% increase in the third quarter of 2012 over
the 2011 quarter. These continued improvements helped us achieve an operating
ratio excluding fuel surcharge of 89.9% for the third quarter of 2013, our
second best ratio over the past 28 quarters."

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.

Since 2004, Marten Transport's results and consolidated financial statements
have included the accounts of MWL, a third-party provider of logistics
services to the transportation industry. On March 28, 2013, a member of MWL
made a capital contribution to MWL. Accordingly, effective as of that date,
Marten was no longer the primary beneficiary, deconsolidated MWL and started
accounting for its ownership interest in MWL under the equity method of
accounting.

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 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 Item 1A of the
company's Annual Report on Form 10-K for the year ended December 31, 2012. The
company undertakes 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)

                                                   September 30, December 31,
(In thousands, except share information)            2013          2012
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                           $1,072        $3,473
Receivables:                                                     
Trade, net                                          72,659        66,239
Other                                               4,678         7,177
Prepaid expenses and other                          12,748        15,490
Deferred income taxes                               3,468         3,155
Total current assets                                94,625        95,534
Property and equipment:                                          
Revenue equipment, buildings and land, office       583,445       551,136
equipment and other
Accumulated depreciation                            (163,171)     (156,660)
Net property and equipment                          420,274       394,476
Other assets                                        3,527         613
TOTAL ASSETS                                        $518,426      $490,623
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable and accrued liabilities            $38,140       $33,062
Insurance and claims accruals                       13,824        13,838
Total current liabilities                           51,964        46,900
Long-term debt, less current maturities             821           2,726
Deferred income taxes                               114,082       109,074
Total liabilities                                   166,867       158,700
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; 33,229,969 shares at September   332           332
30, 2013, and 33,164,428 shares at December 31,
2012, issued and outstanding
Additional paid-in capital                          83,969        82,679
Retained earnings                                   267,258       246,349
Total Marten Transport, Ltd. stockholders' equity   351,559       329,360
Noncontrolling interest                             --            2,563
Total stockholders' equity                          351,559       331,923
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $518,426      $490,623



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

                                      Three Months        Nine Months
(In thousands, except per share        Ended September 30, Ended September 30,
information)
                                      2013      2012      2013      2012
                                                                 
OPERATING REVENUE                      $167,103  $163,606  $492,990  $472,044
                                                                 
OPERATING EXPENSES (INCOME):                                      
Salaries, wages and benefits           43,310    42,352    127,780   120,021
Purchased transportation               30,136    32,428    92,449    92,021
Fuel and fuel taxes                    42,547    43,020    123,466   121,659
Supplies and maintenance               10,296    10,581    29,827    29,958
Depreciation                           16,248    15,537    48,155    45,114
Operating taxes and licenses           1,811     1,694     5,406     4,893
Insurance and claims                   5,741     4,809     17,360    15,816
Communications and utilities           1,305     1,265     3,850     3,637
Gain on disposition of revenue         (1,472)   (1,349)   (5,124)   (4,053)
equipment
Other                                  3,528     3,429     10,509    10,336
                                                                 
Total operating expenses               153,450   153,766   453,678   439,402
                                                                 
OPERATING INCOME                       13,653    9,840     39,312    32,642
                                                                 
OTHER                                  (130)     (6)       (298)     (40)
                                                                 
INCOME BEFORE INCOME TAXES             13,783    9,846     39,610    32,682
Less: Income before income taxes
attributable to noncontrolling         --        61        84        467
interest
                                                                 
INCOME BEFORE INCOME TAXES             13,783    9,785     39,526    32,215
ATTRIBUTABLE TO MARTEN TRANSPORT, LTD.
                                                                 
PROVISION FOR INCOME TAXES             5,806     3,267     16,680    12,667
                                                                 
NET INCOME                             $7,977    $6,518    $22,846   $19,548
                                                                 
BASIC EARNINGS PER COMMON SHARE        $0.24     $0.20     $0.69     $0.59
                                                                 
DILUTED EARNINGS PER COMMON SHARE      $0.24     $0.20     $0.68     $0.59
                                                                 
DIVIDENDS PAID PER COMMON SHARE        $0.025    $0.017    $0.058    $0.047



MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

                                                 Dollar        Percentage
                                                 Change        Change
                                Three Months      Three Months  Three Months
                                Ended             Ended         Ended
                                September 30,     September 30, September 30,
(Dollars in thousands)           2013     2012     2013 vs. 2012 2013 vs. 2012
Operating revenue:                                            
Truckload revenue, net of fuel   $103,145 $96,938  $6,207        6.4%
surcharge revenue
Truckload fuel surcharge revenue 27,135   25,931   1,204         4.6
Total Truckload revenue          130,280  122,869  7,411         6.0
                                                             
Logistics revenue, net of
intermodal fuel surcharge        31,397   36,408   (5,011)       (13.8)
revenue
Intermodal fuel surcharge        5,426    4,329    1,097         25.3
revenue
Total Logistics revenue          36,823   40,737   (3,914)       (9.6)
                                                             
Total operating revenue          $167,103 $163,606 $3,497        2.1%
                                                             
Operating income:                                             
Truckload                        $12,267  $7,938   $4,329        54.5%
Logistics                        1,386    1,902    (516)         (27.1)
Total operating income           $13,653  $9,840   $3,813        38.8%
Operating ratio:                                              
Truckload                        90.6%    93.5%                 
Logistics                        96.2     95.3                  
Consolidated operating ratio     91.8%    94.0%                 



MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)

                                                 Dollar        Percentage
                                                 Change        Change
                                Nine Months       Nine Months   Nine Months
                                Ended             Ended         Ended
                                September 30,     September 30, September 30,
(Dollars in thousands)           2013     2012     2013 vs. 2012 2013 vs. 2012
Operating revenue:                                            
Truckload revenue, net of fuel   $298,106 $280,284 $17,822       6.4%
surcharge revenue
Truckload fuel surcharge revenue 80,760   77,305   3,455         4.5
Total Truckload revenue          378,866  357,589  21,277        6.0
                                                             
Logistics revenue, net of
intermodal fuel surcharge        98,878   102,889  (4,011)       (3.9)
revenue
Intermodal fuel surcharge        15,246   11,566   3,680         31.8
revenue
Total Logistics revenue          114,124  114,455  (331)         (0.3)
                                                             
Total operating revenue          $492,990 $472,044 $20,946       4.4%
                                                             
Operating income:                                             
Truckload                        $33,643  $26,039  $7,604        29.2%
Logistics                        5,669    6,603    (934)         (14.1)
Total operating income           $39,312  $32,642  $6,670        20.4%
Operating ratio:                                              
Truckload                        91.1%    92.7%                 
Logistics                        95.0     94.2                  
Consolidated operating ratio     92.0%    93.1%                 



MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

                              Three Months            Nine Months
                              Ended September 30,     Ended September 30,
                              2013        2012        2013        2012
Truckload Segment:                                              
Total Truckload revenue (in    $130,280    $122,869    $378,866    $357,589
thousands)
Average truckload revenue, net
of fuel surcharges, per        $3,509      $3,398      $3,446      $3,322
tractor per week^(1)
Average tractors^(1)           2,237       2,171       2,218       2,155
Average miles per trip         593         630         605         624
Non-revenue miles              10.4%       11.4%       10.5%       11.2%
percentage^(2)
Total miles – company-employed 57,286      54,903      169,212     159,700
drivers (in thousands)
Total miles – independent      1,345       1,067       3,659       3,686
contractors (in thousands)
                                                               
Logistics Segment:                                              
Total Logistics revenue (in    $36,823     $40,737     $114,124    $114,455
thousands)
Brokerage:                                                      
Marten Transport                                                
Revenue (in thousands)         $12,614     $13,076     $39,896     $39,740
Loads                          8,435       8,172       26,467      24,130
MWL                                                             
Revenue (in thousands)         $ --        $7,576      $6,676      $23,906
Loads                          --          4,260       3,758       12,479
Intermodal:                                                     
Revenue (in thousands)         $24,209     $20,085     $67,552     $50,809
Loads                          9,837       7,642       27,343      19,527
Average tractors               81          68          81          59
                                                               
At September 30, 2013 and                                       
September 30, 2012:
Total tractors^(1)             2,301       2,267                  
Average age of company         1.9         2.0                    
tractors (in years)
Total trailers                 4,159       4,166                  
Average age of company         2.4         2.2                    
trailers (in years)
Ratio of trailers to           1.8         1.8                    
tractors^(1)


                              Three Months            Nine Months
                              Ended September 30,     Ended September 30,
(In thousands)                 2013        2012        2013        2012
Net cash provided by operating $18,039     $22,777     $65,849     $62,789
activities
Net cash used for investing    10,312      22,302      64,728      77,606
activities
                                                               
Weighted average shares                                         
outstanding:
Basic                          33,226      33,107      33,206      33,085
Diluted                        33,475      33,223      33,389      33,225
                                                               
                                                               
(1) Includes tractors driven by both company-employed drivers and independent
contractors. Independent contractors provided 52 and 43 tractors as of
September 30, 2013, and 2012, respectively.

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


CONTACT: Tim Kohl, President, and Jim Hinnendael,
         Chief Financial Officer, of Marten Transport, Ltd.
         715-926-4216
 
Press spacebar to pause and continue. Press esc to stop.