Marten Transport, Ltd.: Marten Transport Announces Fourth Quarter and Year End Results

Sixteenth consecutive quarter of year-over-year profit growth
Highest operating revenue and operating income for any year in Marten's history
Best operating ratio, net of fuel surcharges, for any year since Marten became a public company

MONDOVI, Wis., Jan. 24, 2023 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported a 3.2% improvement in net income to $25.5 million, or 31 cents per diluted share, for the fourth quarter ended December 31, 2022, from $24.7 million, or 30 cents per diluted share, for the fourth quarter of 2021 - Marten's sixteenth consecutive year-over-year increase in quarterly profitability. For the year ended December 31, 2022, net income improved 29.2% to $110.4 million, or $1.35 per diluted share, from $85.4 million, or $1.02 per diluted share, for 2021.

Operating Results Comparison
							Percentage			Percentage			Percentage			Percentage			Percentage
							Increase			Increase			Increase			Increase			Increase
							Three Months			Year			Year			Year			Year
							Ended			Ended			Ended			Ended			Ended
							December 31,			December 31,			December 31,			December 31,			December 31,
							2022 vs. 2021			2022 vs. 2021			2021 vs. 2020			2020 vs. 2019			2019 vs. 2018
Operating revenue							20.9	%		29.8	%		11.4	%		3.7	%		7.1	%
Operating revenue, net of fuel surcharges							15.8	%		23.1	%		8.3	%		6.8	%		8.6	%
Operating income							6.9	%		28.3	%		19.8	%		21.9	%		8.7	%
Net income							3.2	%		29.2	%		22.9	%		13.8	%		11.0	%

Operating revenue improved 20.9% to $322.6 million for the fourth quarter of 2022 from $266.9 million for the fourth quarter of 2021. Excluding fuel surcharges, operating revenue improved 15.8% to $269.7 million for the 2022 quarter from $232.9 million for the 2021 quarter. Fuel surcharge revenue increased to $52.9 million for the 2022 quarter from $34.0 million for the 2021 quarter, reflecting significantly higher fuel prices.

Operating revenue improved 29.8% to $1.264 billion for 2022, the highest amount for any year in Marten's 77-year history, from $973.6 million for 2021. Excluding fuel surcharges, operating revenue improved 23.1% to $1.053 billion for 2022 from $855.9 million for 2021. Fuel surcharge revenue increased to $210.4 million for 2022 from $117.7 million for 2021.

Operating income improved 6.9% to $32.8 million for the fourth quarter of 2022 from $30.7 million for the fourth quarter of 2021. Operating income improved 28.3% to $143.3 million for 2022, the highest amount for any year in Marten's 77-year history, from $111.7 million for 2021.

Operating expenses as a percentage of operating revenue were 89.8% for the fourth quarter of 2022 and 88.5% for the fourth quarter of 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 87.8% for the 2022 quarter and 86.8% for the 2021 quarter.

Operating expenses as a percentage of operating revenue were 88.7% for 2022 and 88.5% for 2021. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, improved to 86.4% for 2022, the best ratio for any year since Marten became a public company in 1986, from 87.0%.

Executive Chairman Randolph L. Marten stated, "Consistent. Strong. Profitable. Organic Growth."

"Our talented, disciplined people earned our sixteenth consecutive quarter of year-over-year profit growth, overcoming a freight environment made more challenging with additional pressure from rail service weakness and severe weather. In 2022, we attained our fifth consecutive year with each of our then-highest operating revenue and operating income - and our third consecutive year with our then-best operating ratio, net of fuel surcharges, since Marten became a public company in 1986."

"Our organic expansion throughout 2022 also provides momentum for continued profitable growth as we began 2023 with 425 more of the industry's top drivers than we employed at the beginning of 2022."

Operating Results Since the Pandemic Began - Percentage Increase Over Same Quarter of Prior Year
		Q4 2022			Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021			Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
Operating revenue		20.9	%		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		15.8	%		21.8	%		32.1	%		23.8	%		12.5	%		12.8	%		5.0	%		2.5	%		8.8	%		3.8	%		4.7		%
Operating income		6.9	%		18.5	%		43.5	%		49.4	%		20.0	%		16.8	%		12.9	%		33.1	%		36.0	%		21.8	%		26.6		%
Net income		3.2	%		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 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, 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.

MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS

	December 31,				December 31,
(In thousands, except share information)	2022				2021
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	80,600			$	56,995
Receivables:
Trade, net		120,702				99,003
Other		7,218				6,971
Prepaid expenses and other		27,320				23,980
Total current assets		235,840				186,949
Property and equipment:
Revenue equipment, buildings and land, office equipment and other		1,074,832				956,476
Accumulated depreciation		(346,665	)			(274,199	)
Net property and equipment		728,167				682,277
Other noncurrent assets		1,672				1,464
Total assets	$	965,679			$	870,690
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	37,299			$	20,150
Insurance and claims accruals		45,747				42,014
Accrued and other current liabilities		41,264				31,395
Total current liabilities		124,310				93,559
Deferred income taxes		137,041				125,163
Noncurrent operating lease liabilities		409				291
Total liabilities		261,760				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; 81,115,132 shares at December 31, 2022, and 83,034,404 shares at December 31, 2021, issued and outstanding		811				830
Additional paid-in capital		47,188				85,718
Retained earnings		655,920				565,129
Total stockholders' equity		703,919				651,677
Total liabilities and stockholders' equity	$	965,679			$	870,690

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

	Three Months								Year
	Ended December 31,								Ended December 31,
(In thousands, except per share information)	2022				2021				2022				2021
Operating revenue	$	322,584			$	266,876			$	1,263,878			$	973,644
Operating expenses (income):
Salaries, wages and benefits		104,722				88,577				390,304				317,962
Purchased transportation		60,599				54,592				249,792				193,221
Fuel and fuel taxes		55,567				36,435				218,571				131,288
Supplies and maintenance		15,180				11,592				55,700				45,459
Depreciation		29,625				25,964				111,014				102,562
Operating taxes and licenses		2,712				2,498				10,763				10,534
Insurance and claims		12,417				10,649				50,513				41,987
Communications and utilities		2,538				2,030				9,177				8,350
Gain on disposition of revenue equipment		(2,957	)			(4,436	)			(13,379	)			(16,295	)
Other		9,398				8,298				38,079				26,887
Total operating expenses		289,801				236,199				1,120,534				861,955
Operating income		32,783				30,677				143,344				111,689
Other		(520	)			(16	)			(827	)			(43	)
Income before income taxes		33,303				30,693				144,171				111,732
Income taxes expense		7,789				5,963				33,817				26,304
Net income	$	25,514			$	24,730			$	110,354			$	85,428
Basic earnings per common share	$	0.31			$	0.30			$	1.35			$	1.03
Diluted earnings per common share	$	0.31			$	0.30			$	1.35			$	1.02
Dividends declared per common share	$	0.06			$	0.04			$	0.24			$	0.66

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)	2022				2021				2022 vs. 2021				2022 vs. 2021
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	108,565			$	91,848			$	16,717				18.2	%
Truckload fuel surcharge revenue		22,759				14,345				8,414				58.7
Total Truckload revenue		131,324				106,193				25,131				23.7
Dedicated revenue, net of fuel surcharge revenue		87,985				73,928				14,057				19.0
Dedicated fuel surcharge revenue		23,775				14,994				8,781				58.6
Total Dedicated revenue		111,760				88,922				22,838				25.7
Intermodal revenue, net of fuel surcharge revenue		22,863				23,275				(412	)			(1.8	)
Intermodal fuel surcharge revenue		6,390				4,627				1,763				38.1
Total Intermodal revenue		29,253				27,902				1,351				4.8
Brokerage revenue		50,247				43,859				6,388				14.6
Total operating revenue	$	322,584			$	266,876			$	55,708				20.9	%
Operating income:
Truckload	$	13,414			$	14,750			$	(1,336	)			(9.1	)%
Dedicated		12,877				8,321				4,556				54.8
Intermodal		728				3,328				(2,600	)			(78.1	)
Brokerage		5,764				4,278				1,486				34.7
Total operating income	$	32,783			$	30,677			$	2,106				6.9	%
Operating ratio:
Truckload		89.8	%			86.1	%
Dedicated		88.5				90.6
Intermodal		97.5				88.1
Brokerage		88.5				90.2
Consolidated operating ratio		89.8	%			88.5	%
Operating ratio, net of fuel surcharges:
Truckload		87.6	%			83.9	%
Dedicated		85.4				88.7
Intermodal		96.8				85.7
Brokerage		88.5				90.2
Consolidated operating ratio, net of fuel surcharges		87.8	%			86.8	%

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)	2022				2021				2022 vs. 2021				2022 vs. 2021
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$	411,448			$	346,289			$	65,159				18.8	%
Truckload fuel surcharge revenue		89,014				50,377				38,637				76.7
Total Truckload revenue		500,462				396,666				103,796				26.2
Dedicated revenue, net of fuel surcharge revenue		336,973				276,883				60,090				21.7
Dedicated fuel surcharge revenue		92,119				52,559				39,560				75.3
Total Dedicated revenue		429,092				329,442				99,650				30.2
Intermodal revenue, net of fuel surcharge revenue		100,452				87,468				12,984				14.8
Intermodal fuel surcharge revenue		29,313				14,777				14,536				98.4
Total Intermodal revenue		129,765				102,245				27,520				26.9
Brokerage revenue		204,559				145,291				59,268				40.8
Total operating revenue	$	1,263,878			$	973,644			$	290,234				29.8	%
Operating income:
Truckload	$	59,392			$	51,032			$	8,360				16.4	%
Dedicated		50,566				36,395				14,171				38.9
Intermodal		10,639				9,479				1,160				12.2
Brokerage		22,747				14,783				7,964				53.9
Total operating income	$	143,344			$	111,689			$	31,655				28.3	%
Operating ratio:
Truckload		88.1	%			87.1	%
Dedicated		88.2				89.0
Intermodal		91.8				90.7
Brokerage		88.9				89.8
Consolidated operating ratio		88.7	%			88.5	%
Operating ratio, net of fuel surcharges:
Truckload		85.6	%			85.3	%
Dedicated		85.0				86.9
Intermodal		89.4				89.2
Brokerage		88.9				89.8
Consolidated operating ratio, net of fuel surcharges		86.4	%			87.0	%

MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)

	Three Months								Year
	Ended December 31,								Ended December 31,
	2022				2021				2022				2021
Truckload Segment:
Revenue (in thousands)	$	131,324			$	106,193			$	500,462			$	396,666
Average revenue, net of fuel surcharges, per tractor per week(1)	$	4,683			$	4,663			$	4,898			$	4,315
Average tractors(1)		1,763				1,499				1,611				1,539
Average miles per trip		504				515				510				516
Non-revenue miles percentage(2)		11.9	%			10.4	%			11.1	%			10.1	%
Total miles (in thousands)		39,303				35,679				149,868				147,192
Dedicated Segment:
Revenue (in thousands)	$	111,760			$	88,922			$	429,092			$	329,442
Average revenue, net of fuel surcharges, per tractor per week(1)	$	3,925			$	3,592			$	3,963			$	3,377
Average tractors(1)		1,706				1,566				1,631				1,572
Average miles per trip		345				330				341				322
Non-revenue miles percentage(2)		1.1	%			1.2	%			1.1	%			1.0	%
Total miles (in thousands)		34,910				32,491				136,310				128,256
Intermodal Segment:
Revenue (in thousands)	$	29,253			$	27,902			$	129,765			$	102,245
Loads		7,255				8,102				31,862				32,987
Average tractors		181				152				175				143
Brokerage Segment:
Revenue (in thousands)	$	50,247			$	43,859			$	204,559			$	145,291
Loads		25,713				19,345				95,615				66,512
At December 31, 2022 and December 31, 2021:
Total tractors(1)		3,660				3,204
Average age of company tractors (in years)		1.7				1.4
Total trailers		5,753				5,299
Average age of company trailers (in years)		3.9				3.3
Ratio of trailers to tractors(1)		1.6				1.7
Total refrigerated containers		802				634

	Three Months								Year
	Ended December 31,								Ended December 31,
(In thousands)	2022				2021				2022				2021
Net cash provided by operating activities	$	56,268			$	43,295			$	219,489			$	171,204
Net cash (used for) investing activities		(42,542	)			(21,592	)			(134,958	)			(123,734	)
Net cash (used for) financing activities		(4,618	)			(48,608	)			(60,926	)			(56,602	)
Weighted average shares outstanding:
Basic		81,105				82,983				81,692				82,872
Diluted		81,391				83,420				81,959				83,408

(1 )	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 96 and 93 tractors as of December 31, 2022 and 2021, respectively.
(2)	Represents the percentage of miles for which the company is not compensated.