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Press release from GlobeNewswire (a Nasdaq OMX company)

Marten Transport Announces First Quarter Results

Tuesday, April 16, 2013

Marten Transport Announces First Quarter Results

13:05 EDT Tuesday, April 16, 2013

MONDOVI, Wis., April 16, 2013 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq:MRTN) today reported a 32.2% increase in net income to $7.2 million, or 32 cents per diluted share, for the first quarter ended March 31, 2013, from $5.4 million, or 25 cents per diluted share, for the first quarter of 2012. It was Marten's twelfth consecutive year-over-year increase in quarterly net income.

Operating revenue, consisting of revenue from truckload and logistics operations, increased to $164.5 million in the first quarter of 2013 from $151.5 million in the first quarter of 2012. Operating revenue, net of fuel surcharges, increased 8.2% to $132.7 million in the 2013 quarter from $122.6 million in the 2012 quarter. Fuel surcharge revenue increased to $31.7 million for the first quarter of 2013 from $28.8 million in the 2012 quarter.

Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 90.6% for the first quarter of 2013 from 92.2% for the first quarter of 2012.

Chairman and Chief Executive Officer Randolph L. Marten said, "We were able to demonstrate the strength of our multifaceted business model with a 32.2% improvement in net earnings for the quarter on an 8.6% increase in operating revenue. These gains were in large part driven by Marten Transport's continued strategic focus on customer solutions, cost efficiencies and improvements in equipment utilization, with disciplined execution reflecting the talent and teamwork of the people of Marten."

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.

Since 2004, Marten Transport's results and consolidated financial statements have included the accounts of MW Logistics, LLC, or MWL, a third-party provider of logistics services to the transportation industry. On March 28, 2013, a member of MWL made a capital contribution to MWL.  Accordingly, effective as of that date, Marten was no longer the primary beneficiary, deconsolidated MWL and started accounting for its ownership interest in MWL under the equity method of accounting.

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, 2012. 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) 2013 2012
ASSETS    
Current assets:  
Cash and cash equivalents  $ 9,041  $ 3,473
Receivables:    
Trade, net 65,990 66,239
Other 5,388 7,177
Prepaid expenses and other 13,466 15,490
Deferred income taxes 3,260 3,155
Total current assets 97,145 95,534
     
Property and equipment:    
Revenue equipment, buildings and land, office equipment and other 560,017 551,136
Accumulated depreciation  (152,071)  (156,660)
Net property and equipment 407,946 394,476
Other assets 3,206 613
     
TOTAL ASSETS  $ 508,297  $ 490,623
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued liabilities  $ 47,718  $ 33,062
Insurance and claims accruals 13,588 13,838
Total current liabilities 61,306 46,900
Long-term debt, less current maturities -- 2,726
Deferred income taxes 110,743 109,074
Total liabilities 172,049 158,700
     
     
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; 22,121,505 shares at March 31, 2013, and 22,109,619 shares at December 31, 2012, issued and outstanding 221 221
Additional paid-in capital 82,918 82,679
Retained earnings 253,109 246,460
     
Total Marten Transport, Ltd. stockholders' equity 336,248 329,360
Noncontrolling interest -- 2,563
Total stockholders' equity 336,248 331,923
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 508,297  $ 490,623
 
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
     
   Three Months
   Ended March 31, 
(In thousands, except per share information) 2013 2012
OPERATING REVENUE  $ 164,474  $ 151,474
OPERATING EXPENSES (INCOME):    
Salaries, wages and benefits 42,125 38,271
Purchased transportation 34,184 29,859
Fuel and fuel taxes 40,323 39,124
Supplies and maintenance 9,533 9,536
Depreciation 15,688 14,535
Operating taxes and licenses 1,770 1,582
Insurance and claims 5,811 5,822
Communications and utilities 1,283 1,211
Gain on disposition of revenue equipment (2,415) (1,525)
Other 3,634 3,540
     
Total operating expenses 151,936 141,955
     
OPERATING INCOME 12,538 9,519
NET INTEREST INCOME (15) (21)
     
INCOME BEFORE INCOME TAXES 12,553 9,540
Less: Income before income taxes attributable to noncontrolling interest 84 161
     
INCOME BEFORE INCOME TAXES    
ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 12,469 9,379
     
PROVISION FOR INCOME TAXES 5,267 3,933
     
NET INCOME  $ 7,202  $ 5,446
     
BASIC EARNINGS PER COMMON SHARE $0.33 $0.25
     
DILUTED EARNINGS PER COMMON SHARE $0.32 $0.25
     
DIVIDENDS PAID PER COMMON SHARE $0.025 $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) 2013 2012  2013 vs. 2012   2013 vs. 2012
Operating revenue:      
Truckload revenue, net of fuel surcharge revenue $94,965 $89,198 $5,767 6.5%
Truckload fuel surcharge revenue 26,769 25,253 1,516 6.0
Total Truckload revenue 121,734 114,451 7,283 6.4
Logistics revenue, net of intermodal fuel surcharge revenue 37,760 33,436 4,324 12.9
Intermodal fuel surcharge revenue 4,980 3,587 1,393 38.8
Total Logistics revenue 42,740 37,023 5,717 15.4
         
Total operating revenue $164,474 $151,474 $13,000 8.6%
         
Operating income:      
Truckload $10,000 $7,128 $2,872 40.3%
Logistics 2,538 2,391 147 6.1
Total operating income $12,538 $9,519 $3,019 31.7%
         
Operating ratio:      
Truckload 91.8% 93.8%   (2.1)%
Logistics 94.1 93.5   0.6
Consolidated operating ratio 92.4% 93.7%   (1.4)%
 
 MARTEN TRANSPORT, LTD.
 OPERATING STATISTICS
 (Unaudited)
     
   Three Months
   Ended March 31,
  2013 2012
Truckload Segment:  
Total Truckload revenue (in thousands) $121,734 $114,451
Average truckload revenue, net of fuel surcharges, per tractor per week(1) $3,368 $3,197
Average tractors(1) 2,193 2,146
Average miles per trip 627 618
Non-revenue miles percentage(2) 10.7% 11.0%
Total miles – company-employed drivers (in thousands) 54,895 51,281
Total miles – independent contractors (in thousands) 941 1,264
     
Logistics Segment:  
Total Logistics revenue (in thousands) $42,740 $37,023
Brokerage:    
Marten Transport  
Revenue (in thousands) $14,469 $13,706
Loads 9,430 8,086
MWL    
Revenue (in thousands) $6,676 $8,245
Loads 3,758 3,682
Intermodal:  
Revenue (in thousands) $21,595 $15,072
Loads 8,590 5,842
Average tractors 78 56
     
At March 31, 2013 and March 31, 2012:
Total tractors(1) 2,256 2,141
Average age of company tractors (in years) 1.8 2.4
Total trailers 4,115 4,035
Average age of company trailers (in years) 2.4 2.3
Ratio of trailers to tractors(1) 1.8 1.9
     
     
   Three Months
   Ended March 31,
(In thousands) 2013 2012
     
Net cash provided by operating activities $21,994 $19,779
Net cash used for investing activities 13,085 15,173
     
Weighted average shares outstanding:
Basic 22,121 22,033
Diluted 22,214 22,141
     
     
(1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 49 and 52 tractors as of March 31, 2013, and 2012, 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.

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