MONDOVI, Wis., Oct. 17, 2022 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (NASDAQ:MRTN) today reported a 20.6% improvement in net income to $25.6 million, or 32 cents per diluted share, for the third quarter ended September 30, 2022, from $21.3 million, or 26 cents per diluted share, for the third quarter of 2021 – the Company's fifteenth consecutive year-over-year increase in quarterly profitability. For the first nine months of 2022, net income improved 39.8% to $84.8 million, or $1.03 per diluted share, from $60.7 million, or 73 cents per diluted share, for the first nine months of 2021.



Operating Results Comparison

	Percentage		Percentage		Percentage		Percentage		Percentage		Percentage
	Increase		Increase		Increase		Increase		Increase		Increase
	Three Months		Three Months		Three Months		Year		Year		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
	2022 vs. 2021		2022 vs. 2021		2022 vs. 2021		2021 vs. 2020		2020 vs. 2019		2019 vs. 2018

Operating revenue	29.1	%	41.8	%	28.8	%	11.4	%	3.7	%	7.1	%

Operating revenue, net of fuel surcharges	21.8	%	32.1	%	23.8	%	8.3	%	6.8	%	8.6	%

Operating income	18.5	%	43.5	%	49.4	%	19.8	%	21.9	%	8.7	%

Net income	20.6	%	47.8	%	52.9	%	22.9	%	13.8	%	11.0	%

Operating revenue improved 29.1% to $324.4 million for the third quarter of 2022 from $251.3 million for the third quarter of 2021. Excluding fuel surcharges, operating revenue improved 21.8% to $269.3 million for the 2022 quarter from $221.2 million for the 2021 quarter. Fuel surcharge revenue increased to $55.1 million for the 2022 quarter from $30.1 million for the 2021 quarter due to significantly higher fuel prices.

Operating revenue improved 33.2% to $941.3 million for the first nine months of 2022 from $706.8 million for the first nine months of 2021. Excluding fuel surcharges, operating revenue improved 25.8% to $783.8 million for the 2022 period from $623.0 million for the 2021 period. Fuel surcharge revenue increased to $157.5 million for the 2022 period from $83.7 million for 2021 period.

Operating income improved 18.5% to $33.8 million for the third quarter of 2022 from $28.5 million for the third quarter of 2021, and also improved 36.5% to $110.6 million for the first nine months of 2022 from $81.0 million for the first nine months of 2021.

Operating expenses as a percentage of operating revenue were 89.6% for the third quarter of 2022 and 88.7% for the third quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 87.5% for the 2022 quarter and 87.1% for the 2021 quarter.

Operating expenses as a percentage of operating revenue improved to 88.3% for the first nine months of 2022 from 88.5% for the first nine months of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 85.9% from 87.0%.

Executive Chairman Randolph L. Marten stated, "The smart, hard work of our talented people executing our unique business model has produced improvements of 29.1% in top-line and 20.6% in bottom-line results over the third quarter of 2021. These results overcame significantly less gain on disposition of our revenue equipment, the negative effect of Hurricane Ian on our sizable Southeast truckload and dedicated operations, and a decrease in our intermodal volumes and margins resulting from weakness in rail service aggravated by the threat of a rail labor strike in mid-September."

"We continue to drive strong fleet growth with our approach to overcoming the national shortage of qualified drivers of applying a heightened emphasis on structurally improving our drivers' jobs and work-life balance by collaborating with our customers, while also increasing our driver compensation. This growth provides momentum to the coming quarters as we began this year's fourth quarter with 199 more of the industry's top drivers than we employed at the beginning of the third quarter – and have now increased our number of drivers by 621, or 22.6%, since June 30, 2021."


Operating Results Since the Pandemic Began – Percentage Increase Over Same Quarter of Prior Year

	Q3 2022		Q2 2022		Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020

Operating revenue	29.1	%	41.8	%	28.8	%	17.4	%	16.3	%	9.4	%	2.0	%	4.7	%	0.5	%	0.1	%

Operating revenue, net of fuel surcharges	21.8	%	32.1	%	23.8	%	12.5	%	12.8	%	5.0	%	2.5	%	8.8	%	3.8	%	4.7	%

Operating income	18.5	%	43.5	%	49.4	%	20.0	%	16.8	%	12.9	%	33.1	%	36.0	%	21.8	%	26.6	%

Net income	20.6	%	47.8	%	52.9	%	26.1	%	17.9	%	18.1	%	31.3	%	24.5	%	8.8	%	19.4	%

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 Company'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, 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

	September 30,			December 31,
(In thousands, except share information)	2022			2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	71,492		$	56,995
Receivables:
Trade, net		124,587			99,003
Other		4,443			6,971
Prepaid expenses and other		24,787			23,980
Total current assets		225,309			186,949

Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,046,476			956,476
Accumulated depreciation		(334,504	)		(274,199	)
Net property and equipment		711,972			682,277
Other noncurrent assets		1,421			1,464
Total assets	$	938,702		$	870,690

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	43,188		$	20,150
Insurance and claims accruals		45,664			42,014
Accrued and other current liabilities		36,605			31,395
Total current liabilities		125,457			93,559
Deferred income taxes		130,594			125,163
Noncurrent operating lease liabilities		214			291
Total liabilities		256,265			219,013

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; 81,096,632 shares at September 30, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding		811			830
Additional paid-in capital		46,366			85,718
Retained earnings		635,260			565,129
Total stockholders' equity		682,437			651,677
Total liabilities and stockholders' equity	$	938,702		$	870,690

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)	2022			2021			2022			2021

Operating revenue	$	324,448		$	251,280		$	941,294		$	706,768

Operating expenses (income):
Salaries, wages and benefits		99,773			81,091			285,582			229,385
Purchased transportation		64,403			52,861			189,193			138,629
Fuel and fuel taxes		57,299			33,909			163,004			94,853
Supplies and maintenance		14,855			11,685			40,520			33,867
Depreciation		28,381			25,371			81,389			76,598
Operating taxes and licenses		2,748			2,606			8,051			8,036
Insurance and claims		11,949			10,501			38,096			31,338
Communications and utilities		2,135			2,181			6,639			6,320
Gain on disposition of revenue equipment		(1,070	)		(4,536	)		(10,422	)		(11,859	)
Other		10,209			7,115			28,681			18,589

Total operating expenses		290,682			222,784			830,733			625,756

Operating income		33,766			28,496			110,561			81,012

Other		(264	)		(8	)		(307	)		(27	)

Income before income taxes		34,030			28,504			110,868			81,039

Income taxes expense		8,384			7,230			26,028			20,341

Net income	$	25,646		$	21,274		$	84,840		$	60,698

Basic earnings per common share	$	0.32		$	0.26		$	1.04		$	0.73

Diluted earnings per common share	$	0.32		$	0.26		$	1.03		$	0.73

Dividends paid per common share	$	0.06		$	-		$	0.18		$	0.08

Dividends declared per common share	$	0.06		$	0.54		$	0.18		$	0.62

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)	2022			2021			2022 vs. 2021			2022 vs. 2021
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	105,905		$	86,889		$	19,016			21.9	%
Truckload fuel surcharge revenue		23,471			12,728			10,743			84.4
Total Truckload revenue		129,376			99,617			29,759			29.9

Dedicated revenue, net of fuel surcharge revenue		86,178			68,826			17,352			25.2
Dedicated fuel surcharge revenue		24,039			13,336			10,703			80.3
Total Dedicated revenue		110,217			82,162			28,055			34.1

Intermodal revenue, net of fuel surcharge revenue		24,303			22,716			1,587			7.0
Intermodal fuel surcharge revenue		7,600			4,031			3,569			88.5
Total Intermodal revenue		31,903			26,747			5,156			19.3

Brokerage revenue		52,952			42,754			10,198			23.9

Total operating revenue	$	324,448		$	251,280		$	73,168			29.1	%

Operating income:
Truckload	$	14,319		$	11,670		$	2,649			22.7	%
Dedicated		13,005			8,521			4,484			52.6
Intermodal		778			2,840			(2,062	)		(72.6	)
Brokerage		5,664			5,465			199			3.6
Total operating income	$	33,766		$	28,496		$	5,270			18.5	%

Operating ratio:
Truckload		88.9	%		88.3	%
Dedicated		88.2			89.6
Intermodal		97.6			89.4
Brokerage		89.3			87.2
Consolidated operating ratio		89.6	%		88.7	%

Operating ratio, net of fuel surcharges:
Truckload		86.5	%		86.6	%
Dedicated		84.9			87.6
Intermodal		96.8			87.5
Brokerage		89.3			87.2
Consolidated operating ratio, net of fuel surcharges		87.5	%		87.1	%

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)	2022			2021			2022 vs. 2021		2022 vs. 2021
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	302,883		$	254,441		$	48,442		19.0	%
Truckload fuel surcharge revenue		66,255			36,032			30,223		83.9
Total Truckload revenue		369,138			290,473			78,665		27.1

Dedicated revenue, net of fuel surcharge revenue		248,988			202,955			46,033		22.7
Dedicated fuel surcharge revenue		68,344			37,565			30,779		81.9
Total Dedicated revenue		317,332			240,520			76,812		31.9

Intermodal revenue, net of fuel surcharge revenue		77,589			64,193			13,396		20.9
Intermodal fuel surcharge revenue		22,923			10,150			12,773		125.8
Total Intermodal revenue		100,512			74,343			26,169		35.2

Brokerage revenue		154,312			101,432			52,880		52.1

Total operating revenue	$	941,294		$	706,768		$	234,526		33.2	%

Operating income:
Truckload	$	45,978		$	36,282		$	9,696		26.7	%
Dedicated		37,689			28,074			9,615		34.2
Intermodal		9,911			6,151			3,760		61.1
Brokerage		16,983			10,505			6,478		61.7
Total operating income	$	110,561		$	81,012		$	29,549		36.5	%

Operating ratio:
Truckload		87.5	%		87.5	%
Dedicated		88.1			88.3
Intermodal		90.1			91.7
Brokerage		89.0			89.6
Consolidated operating ratio		88.3	%		88.5	%

Operating ratio, net of fuel surcharges:
Truckload		84.8	%		85.7	%
Dedicated		84.9			86.2
Intermodal		87.2			90.4
Brokerage		89.0			89.6
Consolidated operating ratio, net of fuel surcharges		85.9	%		87.0	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2022			2021			2022			2021
Truckload Segment:
Revenue (in thousands)	$	129,376		$	99,617		$	369,138		$	290,473
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,889		$	4,411		$	4,980		$	4,202
Average tractors⁽¹⁾		1,648			1,499			1,560			1,553
Average miles per trip		508			502			512			516
Non-revenue miles percentage⁽²⁾		11.3	%		10.1	%		10.8	%		10.0	%
Total miles (in thousands)		38,441			35,945			110,565			111,513

Dedicated Segment:
Revenue (in thousands)	$	110,217		$	82,162		$	317,332		$	240,520
Average revenue, net of fuel surcharges, per tractor per week⁽¹⁾	$	4,006		$	3,438		$	3,977		$	3,305
Average tractors⁽¹⁾		1,637			1,523			1,605			1,574
Average miles per trip		337			328			340			319
Non-revenue miles percentage⁽²⁾		1.2	%		1.1	%		1.1	%		1.0	%
Total miles (in thousands)		34,513			31,511			101,400			95,765

Intermodal Segment:
Revenue (in thousands)	$	31,903		$	26,747		$	100,512		$	74,343
Loads		7,610			8,257			24,607			24,885
Average tractors		182			139			173			140

Brokerage Segment:
Revenue (in thousands)	$	52,952		$	42,754		$	154,312		$	101,432
Loads		24,896			18,251			69,902			47,167

At September 30, 2022 and September 30, 2021:
Total tractors⁽¹⁾		3,575			3,204
Average age of company tractors (in years)		1.7			1.4
Total trailers		5,679			5,291
Average age of company trailers (in years)		3.8			3.2
Ratio of trailers to tractors⁽¹⁾		1.6			1.7
Total refrigerated containers		803			607

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
(In thousands)	2022			2021			2022			2021

Net cash provided by operating activities	$	64,551		$	44,544		$	163,221		$	127,909
Net cash (used for) investing activities		(57,412	)		(40,704	)		(92,416	)		(102,142	)
Net cash (used for) financing activities		(4,021	)		(612	)		(56,308	)		(7,994	)

Weighted average shares outstanding:
Basic		81,061			82,907			81,889			82,835
Diluted		81,347			83,372			82,155			83,380

(1)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 90 and 101 tractors as of September 30, 2022 and 2021, respectively.

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