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.”
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 | ) |
| |||||||||