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Press release from GlobeNewswire (a Nasdaq OMX company)

Marten Transport Announces First Quarter Results

Tuesday, April 17, 2012

Marten Transport Announces First Quarter Results13:05 EDT Tuesday, April 17, 2012MONDOVI, Wis., April 17, 2012 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported a 33.0% increase in net income to $5.4 million, or 25 cents per diluted share, for the first quarter ended March 31, 2012, from $4.1 million, or 19 cents per diluted share, for the first quarter of 2011. It was the company's eighth consecutive year-over-year increase in quarterly profitability. Operating revenue, consisting of revenue from truckload and logistics operations, increased to $151.5 million in the first quarter of 2012 from $137.9 million in the 2011 quarter. Operating revenue, net of fuel surcharges, increased 9.0% to $122.6 million in the 2012 quarter from $112.5 million in the 2011 quarter. Fuel surcharge revenue increased to $28.8 million for the first quarter of 2012 from $25.4 million in the 2011 quarter, due to higher fuel prices. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 92.2% for the first quarter of 2012 from 93.2% for the first quarter of 2011. Chairman and Chief Executive Officer Randolph L. Marten said, "We are encouraged by our continued profitable growth. Despite increasing fuel prices and a tight driver market, our focus on building a multi-faceted business model and attention to developing a diverse customer base have expanded our logistics business and our regional operations throughout the country. Our logistics revenue, net of intermodal fuel surcharges, grew by 9.6% to $33.4 million in this year's first quarter from $30.5 million in the 2011 quarter. We have increased our regional operations to 67.8% of our truckload fleet as of March 31, 2012, from 57.1% as of a year earlier. Our regional operations contributed to a 4.5% increase in our average truckload revenue, net of fuel surcharges, per tractor per week, over last year's first quarter. "We are also pleased to have again been named one of America's 100 Most Trustworthy Companies in the annual survey recently commissioned by Forbes magazine. We are one of only three companies to be named to the list for the fourth consecutive year. The listing, compiled for Forbes by GMI Ratings, recognizes US exchange-listed companies with market capitalizations of at least $250 million that display the highest corporate integrity as measured by GMI Ratings' Accounting and Governance Risk score – a measure of the transparency and reliability of a company's financial reporting and governance practices."   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, 2011. 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)                           March 31,  December 31, (In thousands, except share information) 2012 2011       ASSETS     Current assets:     Cash and cash equivalents $25,638 $20,821 Receivables:     Trade, net 58,632 59,385 Other 4,876 3,430 Prepaid expenses and other 14,276 15,426 Deferred income taxes 2,600 2,738 Total current assets 106,022 101,800 Property and equipment:     Revenue equipment, buildings and land, office equipment and other 531,594 523,974 Accumulated depreciation (147,309)  (155,774) Net property and equipment 384,285 368,200 Other assets 588 579 TOTAL ASSETS $490,895 $470,579 LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities:     Accounts payable and accrued liabilities $44,810 $33,343 Insurance and claims accruals 14,006 13,042 Total current liabilities 58,816 46,385 Deferred income taxes 105,597 103,835 Total liabilities 164,413 150,220       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; 22,057,795 shares at March 31, 2012, and 21,984,597 shares at December 31, 2011, issued and outstanding 221 220 Additional paid-in capital 81,138 80,078 Retained earnings 242,877 237,872 Total Marten Transport, Ltd. stockholders' equity 324,236 318,170 Noncontrolling interest 2,246 2,189 Total stockholders' equity 326,482 320,359 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $490,895 $470,579  MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)                     Three Months   Ended March 31,  (In thousands, except per share information) 2012 2011       OPERATING REVENUE $151,474 $137,856       OPERATING EXPENSES (INCOME):     Salaries, wages and benefits 38,271 34,099 Purchased transportation 29,859 28,017 Fuel and fuel taxes 39,124 35,340 Supplies and maintenance 9,536 9,662 Depreciation 14,535 13,516 Operating taxes and licenses 1,582 1,417 Insurance and claims 5,822 4,301 Communications and utilities 1,211 1,122 Gain on disposition of revenue equipment (1,525) (768) Other 3,540 3,541       Total operating expenses 141,955 130,247       OPERATING INCOME 9,519 7,609       NET INTEREST (INCOME) EXPENSE (21) 19       INCOME BEFORE INCOME TAXES 9,540 7,590 Less: Income before income taxes attributable to noncontrolling interest 161 137       INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 9,379 7,453       PROVISION FOR INCOME TAXES 3,933 3,358       NET INCOME $5,446 $4,095       BASIC EARNINGS PER COMMON SHARE $0.25 $0.19       DILUTED EARNINGS PER COMMON SHARE $0.25 $0.19       DIVIDENDS PAID PER COMMON SHARE $0.02 $0.02  MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)                  Dollar Percentage       Change Change   Three Months Three Months Three Months   Ended Ended Ended   March 31, March 31, March 31, (Dollars in thousands) 2012 2011  2012 vs. 2011   2012 vs. 2011 Operating revenue:         Truckload revenue, net of fuel surcharge revenue $89,198 $81,973 $7,225 8.8% Truckload fuel surcharge revenue 25,253 22,088 3,165 14.3 Total Truckload revenue 114,451 104,061 10,390 10.0           Logistics revenue, net of intermodal fuel surcharge revenue 33,436 30,518 2,918 9.6 Intermodal fuel surcharge revenue 3,587 3,277 310 9.5 Total Logistics revenue 37,023 33,795 3,228 9.6           Total operating revenue $151,474 $137,856 $13,618 9.9%           Operating income:         Truckload $7,128 $5,321 $1,807 34.0% Logistics 2,391 2,288 103 4.5 Total operating income $9,519 $7,609 $1,910 25.1%           Operating ratio:         Truckload 93.8% 94.9%   (1.2)% Logistics 93.5 93.2   0.3 Consolidated operating ratio 93.7% 94.5%   (0.8)%   MARTEN TRANSPORT, LTD. OPERATING STATISTICS (Unaudited)         Three Months   Ended March 31,   2012 2011 Truckload Segment:     Total Truckload revenue (in thousands) $114,451 $104,061 Average truckload revenue, net of fuel surcharges, per tractor per week(1) $3,197 $3,058 Average tractors(1) 2,146 2,085 Average miles per trip 618 636 Non-revenue miles percentage(2) 11.0% 10.2% Total miles – company-employed drivers (in thousands) 51,281 48,671 Total miles – independent contractors (in thousands) 1,264 2,131       Logistics Segment:     Total Logistics revenue (in thousands) $37,023 $33,795 Brokerage:     Marten Transport     Revenue (in thousands) $13,706 $11,845 Loads 8,086 6,161 MWL     Revenue (in thousands) $8,245 $7,767 Loads 3,682 3,834 Intermodal:     Revenue (in thousands) $15,072 $14,183 Loads 5,842 5,629 Average tractors 56 69       At March 31, 2012 and March 31, 2011:     Total tractors(1) 2,141 2,169 Average age of company tractors (in years) 2.4 2.6 Total trailers 4,035 3,956 Average age of company trailers (in years) 2.3 2.8 Ratio of trailers to tractors(1) 1.9 1.8               Three Months   Ended March 31, (In thousands) 2012 2011       Net cash provided by operating activities $19,779 $27,991 Net cash used for investing activities 15,173 4,867       Weighted average shares outstanding:     Basic 22,033 21,964 Diluted 22,141 22,071             (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 52 and 75 tractors as of March 31, 2012, and 2011, respectively.       (2) Represents the percentage of miles for which the company is not compensated.CONTACT: Tim Kohl, President Jim Hinnendael, Chief Financial Officer Marten Transport, Ltd. 715-926-4216