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Press release from GlobeNewswire (a Nasdaq OMX company)

Marten Transport Announces Record Fourth-Quarter Results

Tuesday, January 24, 2012

Marten Transport Announces Record Fourth-Quarter Results13:05 EST Tuesday, January 24, 2012MONDOVI, Wis, Jan. 24, 2012 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported net income of $7.7 million for the fourth quarter ended December 31, 2011, a 47.1% increase from $5.2 million a year earlier and the highest net income for any quarter in the Company's history. Earnings per diluted share were 35 cents, compared with 24 cents for the fourth quarter of 2010. It was the Company's seventh consecutive year-over-year increase in quarterly profitability. For 2011, net income increased 23.0% to $24.3 million, or $1.10 per diluted share, compared with $19.7 million, or 90 cents per diluted share, in 2010. Operating revenue, consisting of revenue from truckload and logistics operations, increased 15.9% to $158.3 million in the fourth quarter of 2011 from $136.6 million in the 2010 quarter. For 2011, operating revenue increased 16.8% to $603.7 million from $516.9 million in 2010. Operating revenue, net of fuel surcharges, increased 11.3% to $128.8 million in the 2011 quarter from $115.8 million in the 2010 quarter, and increased 11.3% to $490.7 million in 2011 from $441.0 million in 2010.  Reflecting substantially higher fuel prices, fuel surcharges increased to $29.5 million for the fourth quarter of 2011 from $20.8 million in the 2010 quarter, and increased to $113.0 million for 2011 from $75.9 million for 2010. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 89.9% for the fourth quarter of 2011 from 92.2% for the fourth quarter of 2010, and improved to 91.2% for 2011 from 92.0% for 2010.  "We are pleased that our long-term strategic planning is driving our continued profitability growth," said Randolph L. Marten, Chairman and Chief Executive Officer.  "Over the past year, we have emphasized developing a diverse customer base that gains value from and expands each of our operating units.  Our logistics revenue, net of intermodal fuel surcharges, grew by $17.7 million, or 15.3%, this year.  Our expanding regional operations contributed to a 6.5% increase over last year in our average truckload revenue per tractor per week, net of fuel surcharges – our main measure of asset productivity.  We have increased our regional operations to 64.7% of our truckload fleet as of December 31, 2011, from 51.8% as of a year earlier." 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. 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, 2010. 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)     December 31, December 31, (In thousands, except share information) 2011 2010       ASSETS     Current assets:     Cash and cash equivalents $20,821 $5,306 Marketable securities  -- 138 Receivables:     Trade, net 59,385 51,094 Other 3,430 12,968 Prepaid expenses and other 15,426 13,406 Deferred income taxes 2,738 4,794 Total current assets 101,800 87,706 Property and equipment:     Revenue equipment, buildings and land,     office equipment and other 523,974 515,622 Accumulated depreciation (155,774) (143,563) Net property and equipment 368,200 372,059 Other assets 579 543 TOTAL ASSETS $470,579 $460,308       LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities:     Checks issued in excess of cash balances $-- $1,066 Accounts payable and accrued liabilities 33,343 30,524 Insurance and claims accruals 13,042 17,653 Current maturities of long-term debt -- 19,346 Total current liabilities 46,385 68,589 Deferred income taxes 103,835 95,815 Total liabilities 150,220 164,404       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; 21,984,597 shares     at December 31, 2011, and 21,950,252 shares at     December 31, 2010, issued and outstanding 220 220 Additional paid-in capital 80,078 78,428 Retained earnings 237,872 215,345 Total Marten Transport, Ltd. stockholders' equity 318,170 293,993 Noncontrolling interest 2,189 1,911 Total stockholders' equity 320,359 295,904 TOTAL LIABILITIES AND     STOCKHOLDERS' EQUITY $470,579 $460,308  MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)     Three Months Year   Ended December 31, Ended December 31, (In thousands, except per share information) 2011 2010 2011 2010           OPERATING REVENUE $158,340 $136,572 $603,679 $516,920           OPERATING EXPENSES (INCOME):         Salaries, wages and benefits 39,359 34,366 147,646 131,519 Purchased transportation 30,970 30,028 120,332 110,408 Fuel and fuel taxes 39,750 30,609 155,595 114,927 Supplies and maintenance 9,845 9,335 40,311 35,218 Depreciation 15,173 13,383 57,531 51,916 Operating taxes and licenses 1,796 1,638 6,373 6,222 Insurance and claims 4,840 4,324 18,170 16,573 Communications and utilities 1,209 954 4,605 3,964 Gain on disposition of revenue equipment (981) (298) (3,800) (1,110) Other 3,428 3,157 13,886 11,994           Total operating expenses 145,389 127,496 560,649 481,631           OPERATING INCOME 12,951 9,076 43,030 35,289           NET INTEREST (INCOME) EXPENSE (18) 10 (24) (26)           INCOME BEFORE INCOME TAXES 12,969 9,066 43,054 35,315 Less: Income before income taxes         Attributable to noncontrolling interest 99 266 807 631           INCOME BEFORE INCOME TAXES         ATTRIBUTABLE TO MARTEN         TRANSPORT, LTD. 12,870 8,800 42,247 34,684           PROVISION FOR INCOME TAXES 5,207 3,590 17,962 14,942           NET INCOME $7,663 $5,210 $24,285 $19,742           BASIC EARNINGS PER COMMON SHARE $0.35 $0.24 $1.10 $0.90           DILUTED EARNINGS PER COMMON SHARE $0.35 $0.24 $1.10 $0.90           DIVIDENDS PAID PER COMMON SHARE $0.02 $0.02 $0.08 $0.04  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) 2011 2010 2011 vs. 2010 2011 vs. 2010 Operating revenue:         Truckload revenue, net of fuel surcharge         revenue $94,174 $82,935 $11,239 13.6% Truckload fuel surcharge revenue 25,597 18,292 7,305 39.9 Total Truckload revenue 119,771 101,227 18,544 18.3           Logistics revenue, net of intermodal fuel         surcharge revenue 34,669 32,859 1,810 5.5 Intermodal fuel surcharge revenue 3,900 2,486 1,414 56.9 Total Logistics revenue 38,569 35,345 3,224 9.1           Total operating revenue $158,340 $136,572 $21,768 15.9%           Operating income:         Truckload $11,201 $6,921 $4,280 61.8% Logistics 1,750 2,155 (405) (18.8) Total operating income $12,951 $9,076 $3,875 42.7%           Operating ratio:         Truckload 90.6% 93.2%   (2.8)% Logistics 95.5 93.9   1.7 Consolidated operating ratio 91.8% 93.4%   (1.7)%  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) 2011 2010 2011 vs. 2010 2011 vs. 2010 Operating revenue:         Truckload revenue, net of fuel surcharge         revenue $357,787 $325,791 $31,996 9.8% Truckload fuel surcharge revenue 98,060 66,973 31,087 46.4 Total Truckload revenue 455,847 392,764 63,083 16.1           Logistics revenue, net of intermodal fuel         surcharge revenue 132,890 115,223 17,667 15.3 Intermodal fuel surcharge revenue 14,942 8,933 6,009 67.3 Total Logistics revenue 147,832 124,156 23,676 19.1           Total operating revenue $603,679 $516,920 $86,759 16.8%           Operating income:         Truckload $35,298 $28,680 $6,618 23.1% Logistics 7,732 6,609 1,123 17.0 Total operating income $43,030 $35,289 $7,741 21.9%           Operating ratio:         Truckload 92.3% 92.7%   (0.4)% Logistics 94.8 94.7   0.1 Consolidated operating ratio 92.9% 93.2%   (0.3)%  MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)     Three Months Year   Ended December 31, Ended December 31,   2011 2010 2011 2010 Truckload Segment:         Total Truckload revenue (in thousands) $119,771 $101,227 $455,847 $392,764 Average truckload revenue, net of fuel surcharges, per tractor per week(1) $3,219 $3,010 $3,162 $2,968 Average tractors(1) 2,226 2,096 2,170 2,105 Average miles per trip 617 630 626 655 Non-revenue miles percentage(2) 10.6% 10.1% 10.8% 9.6% Total miles – company-employed drivers (in thousands) 52,753 48,754 202,836 193,342 Total miles – independent contractors (in thousands) 1,253 2,422 6,841 13,776           Logistics Segment:         Total Logistics revenue (in thousands) $38,569 $35,345 $147,832 $124,156 Brokerage:         Marten Transport         Revenue (in thousands) $12,559 $12,524 $48,354 $41,219 Loads 6,927 6,042 25,412 21,896 MWL         Revenue (in thousands) $9,009 $9,926 $34,463 $35,247 Loads 4,015 4,355 17,194 18,704 Intermodal:         Revenue (in thousands) $17,001 $12,895 $65,015 $47,690 Loads 6,238 5,395 24,302 20,150 Average tractors 79 68 75 67           At December 31, 2011 and December 31, 2010:         Total tractors(1) 2,281 2,146     Average age of company tractors (in years) 2.6 2.5     Total trailers 4,124 3,928     Average age of company trailers (in years) 2.4 2.8     Ratio of trailers to tractors(1) 1.8 1.8                         Three Months Year   Ended December 31, Ended December 31, (In thousands) 2011 2010 2011 2010           Net cash provided by operating activities $25,462 $18,609 $86,206 $64,522 Net cash used for investing activities 24,199 9,872 48,271 81,181           Weighted average shares outstanding:         Basic 21,985 21,945 21,979 21,927 Diluted 22,062 22,063 22,075 22,031   (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 48 and 86 tractors as of December 31, 2011, and 2010, 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