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Press release from GlobeNewswire (a Nasdaq OMX company)

Marten Transport Announces Second Quarter Results

Tuesday, July 17, 2012

Marten Transport Announces Second Quarter Results13:05 EDT Tuesday, July 17, 2012MONDOVI, Wis., July 17, 2012 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported a 22.4% increase in net income to $7.6 million, or 34 cents per diluted share, for the second quarter ended June 30, 2012, from $6.2 million, or 28 cents per diluted share, for the second quarter of 2011. For the 2012 six-month period, net income increased 26.6% to $13.0 million, or 59 cents per diluted share, from $10.3 million, or 47 cents per diluted share, in the 2011 six-month period. Operating revenue, consisting of revenue from truckload and logistics operations, increased to $157.0 million in the second quarter of 2012 from $151.1 million in the second quarter of 2011, and increased to $308.4 million in the 2012 six-month period from $289.0 million in the 2011 six-month period. Operating revenue, net of fuel surcharges, increased 4.4% to $127.2 million in the 2012 quarter from $121.8 million in the 2011 quarter, and increased 6.6% to $249.8 million in the 2012 six-month period from $234.3 million in the 2011 six-month period. Fuel surcharge revenue increased to $29.8 million for the second quarter of 2012 from $29.3 million in the 2011 quarter, and increased to $58.6 million for the 2012 six-month period from $54.7 million for the 2011 six-month period. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 89.6% for the second quarter of 2012 from 90.7% for the second quarter of 2011, and improved to 90.9% for the 2012 six-month period from 91.9% for the 2011 six-month period. Chairman and Chief Executive Officer Randolph L. Marten said, "We are pleased that the efficiencies of our regional operations continue to drive growth in our net income and improvement in our operating ratio. We have increased our regional operations to 69.0% of our truckload fleet as of June 30, 2012, from 60.7% as of a year earlier – an increase reflected in a 5.4% improvement over last year's second quarter in our average truckload revenue, net of fuel surcharges, per tractor per week. Our focus on developing a multi-faceted business model with a diverse customer base has expanded our regional operations as well as our logistics business. Our logistics revenue, net of fuel surcharge revenue, grew 6.0% in the 2012 six-month period over the same period in 2011. These strategies helped us to achieve our ninth consecutive year-over-year increase in quarterly profitability, as well as our best operating ratio net of fuel surcharge revenue since the second quarter of 2006." 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)         June 30, December 31,   2012 2011 (In thousands, except share information)           ASSETS     Current assets:     Cash and cash equivalents  $ 5,249  $ 20,821 Receivables:     Trade, net 64,114 59,385 Other 5,399 3,430 Prepaid expenses and other 14,033 15,426 Deferred income taxes 2,508 2,738 Total current assets 91,303 101,800 Property and equipment:     Revenue equipment, buildings and land, office equipment and other 547,812 523,974 Accumulated depreciation (145,245) (155,774) Net property and equipment 402,567 368,200 Other assets 597 579 TOTAL ASSETS  $ 494,467  $ 470,579       LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities:     Accounts payable and accrued liabilities  $ 41,463  $ 33,343 Insurance and claims accruals 12,414 13,042 Total current liabilities 53,877 46,385 Deferred income taxes 106,216 103,835 Total liabilities 160,093 150,220             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; 22,071,249 shares at June 30, 2012, and 21,984,597 shares at December 31, 2011, issued and outstanding 221 220 Additional paid-in capital 81,834 80,078 Retained earnings 249,909 237,872 Total Marten Transport, Ltd. stockholders' equity 331,964 318,170 Noncontrolling interest 2,410 2,189 Total stockholders' equity 334,374 320,359 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 494,467  $ 470,579    MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)             Three Months Six Months   Ended June 30,  Ended June 30,  (In thousands, except per share information) 2012 2011 2012 2011           OPERATING REVENUE $ 156,964 $ 151,135 $ 308,438 $ 288,991           OPERATING EXPENSES (INCOME):         Salaries, wages and benefits 39,398 36,413 77,669 70,512 Purchased transportation 29,734 29,991 59,593 58,008 Fuel and fuel taxes 39,515 39,915 78,639 75,255 Supplies and maintenance 9,841 9,774 19,377 19,436 Depreciation 15,042 14,084 29,577 27,600 Operating taxes and licenses 1,617 1,516 3,199 2,933 Insurance and claims 5,185 4,412 11,007 8,713 Communications and utilities 1,161 1,106 2,372 2,228 Gain on disposition of revenue equipment (1,179) (967) (2,704) (1,735) Other 3,367 3,532 6,907 7,073           Total operating expenses 143,681 139,776 285,636 270,023           OPERATING INCOME 13,283 11,359 22,802 18,968           NET INTEREST (INCOME) EXPENSE (13) (7) (34) 12           INCOME BEFORE INCOME TAXES 13,296 11,366 22,836 18,956 Less: Income before income taxes attributable to noncontrolling interest 245 253 406 390           INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 13,051 11,113 22,430 18,566           PROVISION FOR INCOME TAXES 5,467 4,919 9,400 8,277           NET INCOME $ 7,584 $ 6,194 $ 13,030 $ 10,289           BASIC EARNINGS PER COMMON SHARE $ 0.34 $ 0.28 $ 0.59 $ 0.47           DILUTED EARNINGS PER COMMON SHARE $ 0.34 $ 0.28 $ 0.59 $ 0.47           DIVIDENDS PAID PER COMMON SHARE $ 0.025 $ 0.02 $ 0.045 $ 0.04    MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)                 Dollar  Percentage       Change   Change   Three Months Three Months  Three Months   Ended Ended Ended   June 30, June 30, June 30,   2012 2011 2012 vs. 2011 2012 vs. 2011           (Dollars in thousands)         Operating revenue:         Truckload revenue, net of fuel surcharge revenue $ 94,148 $ 89,637 $ 4,511 5.0% Truckload fuel surcharge revenue 26,121 25,526 595 2.3 Total Truckload revenue 120,269 115,163 5,106 4.4           Logistics revenue, net of intermodal fuel surcharge revenue 33,045 32,203 842 2.6 Intermodal fuel surcharge revenue 3,650 3,769 (119) (3.2) Total Logistics revenue 36,695 35,972 723 2.0           Total operating revenue $ 156,964 $ 151,135 $ 5,829 3.9%           Operating income:         Truckload $ 10,973 $ 9,602 $ 1,371 14.3% Logistics 2,310 1,757 553 31.5 Total operating income $ 13,283 $ 11,359 $ 1,924 16.9%           Operating ratio:         Truckload 90.9% 91.7%   (0.9)% Logistics 93.7 95.1   (1.5) Consolidated operating ratio 91.5% 92.5%   (1.1)%    MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)                Dollar  Percentage       Change  Change   Six Months Six Months Six Months   Ended Ended Ended   June 30, June 30, June 30, (Dollars in thousands) 2012 2011 2012 vs. 2011 2012 vs. 2011 Operating revenue:         Truckload revenue, net of fuel surcharge revenue $ 183,346 $ 171,610 $ 11,736 6.8% Truckload fuel surcharge revenue 51,374 47,614 3,760 7.9 Total Truckload revenue 234,720 219,224 15,496 7.1           Logistics revenue, net of intermodal fuel surcharge revenue 66,481 62,721 3,760 6.0 Intermodal fuel surcharge revenue 7,237 7,046 191 2.7 Total Logistics revenue 73,718 69,767 3,951 5.7           Total operating revenue $ 308,438 $ 288,991 $ 19,447 6.7%           Operating income:         Truckload $ 18,101 $ 14,923 $ 3,178 21.3% Logistics 4,701 4,045 656 16.2 Total operating income $ 22,802 $ 18,968 $ 3,834 20.2%           Operating ratio:         Truckload 92.3% 93.2%   (1.0)% Logistics 93.6 94.2   (0.6) Consolidated operating ratio 92.6% 93.4%   (0.9)%    MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)            Three Months Six Months   Ended June 30, Ended June 30,   2012 2011 2012 2011 Truckload Segment:         Total Truckload revenue (in thousands) $ 120,269 $ 115,163 $ 234,720 $ 219,224 Average truckload revenue, net of fuel surcharges, per tractor per week(1) $ 3,371 $ 3,198 $ 3,284 $ 3,129 Average tractors(1) 2,149 2,156 2,148 2,121 Average miles per trip 625 635 621 636 Non-revenue miles percentage(2) 11.3% 10.8% 11.2% 10.5% Total miles – company-employed drivers (in thousands) 53,516 49,979 104,797 98,650 Total miles – independent contractors (in thousands) 1,355 1,944 2,619 4,075           Logistics Segment:         Total Logistics revenue (in thousands) $ 36,695 $ 35,972 $ 73,718 $ 69,767 Brokerage:         Marten Transport         Revenue (in thousands) $ 12,958 $ 11,834 $ 26,664 $ 23,679 Loads 7,872 5,988 15,958 12,149 MWL         Revenue (in thousands) $ 8,085 $ 8,472 $ 16,330 $ 16,239 Loads 4,537 4,673 8,219 8,507 Intermodal:         Revenue (in thousands) $ 15,652 $ 15,666 $ 30,724 $ 29,849 Loads 6,043 5,927 11,885 11,556 Average tractors 54 73 55 71           At June 30, 2012 and June 30, 2011:         Total tractors(1) 2,201 2,257     Average age of company tractors (in years) 2.0 2.5     Total trailers 4,155 4,026     Average age of company trailers (in years) 2.2 2.7     Ratio of trailers to tractors(1) 1.9 1.8                 Three Months Six Months   Ended June 30, Ended June 30, (In thousands) 2012 2011 2012 2011           Net cash provided by operating activities  $ 20,233  $ 14,465  $ 40,012  $ 42,456 Net cash used for investing activities 40,131 7,012 55,304 11,879           Weighted average shares outstanding:         Basic 22,066 21,984 22,050 21,974 Diluted 22,166 22,085 22,154 22,078           (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 51 and 71 tractors as of June 30, 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