MARTEN TRANSPORT ANNOUNCES THIRD QUARTER RESULTS

MONDOVI, Wis., October 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."

Current Investor Presentation

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	)			(11,810	)
Other			7,607				8,762				23,023				27,301
Total operating expenses			233,097				262,308				706,783				788,780
Operating income			4,269				17,230				26,493				74,453
Other			(922	)			(1,017	)			(2,732	)			(2,938	)
Income before income taxes			5,191				18,247				29,225				77,391
Income taxes expense			1,437				4,649				7,936				19,417
Net income		$	3,754			$	13,598			$	21,289			$	57,974
Basic earnings per common share		$	0.05			$	0.17			$	0.26			$	0.71
Diluted earnings per common share		$	0.05			$	0.17			$	0.26			$	0.71
Dividends declared per common share		$	0.06			$	0.06			$	0.18			$	0.18

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Three Months			Three Months			Three Months
		Ended			Ended			Ended
		September 30,			September 30,			September 30,
(Dollars in thousands)		2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	93,278			$	96,516			$	(3,238	)			(3.4	)%
Truckload fuel surcharge revenue			15,146				17,711				(2,565	)			(14.5	)
Total Truckload revenue			108,424				114,227				(5,803	)			(5.1	)
Dedicated revenue, net of fuel surcharge revenue			62,898				82,963				(20,065	)			(24.2	)
Dedicated fuel surcharge revenue			12,123				18,834				(6,711	)			(35.6	)
Total Dedicated revenue			75,021				101,797				(26,776	)			(26.3	)
Intermodal revenue, net of fuel surcharge revenue			12,289				18,122				(5,833	)			(32.2	)
Intermodal fuel surcharge revenue			2,220				3,925				(1,705	)			(43.4	)
Total Intermodal revenue			14,509				22,047				(7,538	)			(34.2	)
Brokerage revenue			39,412				41,467				(2,055	)			(5.0	)
Total operating revenue		$	237,366			$	279,538			$	(42,172	)			(15.1	)%
Operating income/(loss):
Truckload		$	(142	)		$	2,738			$	(2,880	)			(105.2	)%
Dedicated			3,056				11,286				(8,230	)			(72.9	)
Intermodal			(1,542	)			(1,074	)			(468	)			(43.6	)
Brokerage			2,897				4,280				(1,383	)			(32.3	)
Total operating income		$	4,269			$	17,230			$	(12,961	)			(75.2	)%
Operating ratio:
Truckload			100.1	%			97.6	%
Dedicated			95.9				88.9
Intermodal			110.6				104.9
Brokerage			92.6				89.7
Consolidated operating ratio			98.2	%			93.8	%
Operating ratio, net of fuel surcharges:
Truckload			100.2	%			97.2	%
Dedicated			95.1				86.4
Intermodal			112.5				105.9
Brokerage			92.6				89.7
Consolidated operating ratio, net of fuel surcharges			97.9	%			92.8	%

MARTEN TRANSPORT, LTD.

SEGMENT INFORMATION

(Unaudited)

										Dollar			Percentage
										Change			Change
		Nine Months			Nine Months			Nine Months
		Ended			Ended			Ended
		September 30,			September 30,			September 30,
(Dollars in thousands)		2024			2023			2024 vs. 2023			2024 vs. 2023
Operating revenue:
Truckload revenue, net of fuel surcharge revenue		$	284,346			$	300,104			$	(15,758	)			(5.3	)%
Truckload fuel surcharge revenue			48,152				51,887				(3,735	)			(7.2	)
Total Truckload revenue			332,498				351,991				(19,493	)			(5.5	)
Dedicated revenue, net of fuel surcharge revenue			202,080				257,231				(55,151	)			(21.4	)
Dedicated fuel surcharge revenue			40,667				56,000				(15,333	)			(27.4	)
Total Dedicated revenue			242,747				313,231				(70,484	)			(22.5	)
Intermodal revenue, net of fuel surcharge revenue			38,230				60,277				(22,047	)			(36.6	)
Intermodal fuel surcharge revenue			7,315				12,724				(5,409	)			(42.5	)
Total Intermodal revenue			45,545				73,001				(27,456	)			(37.6	)
Brokerage revenue			112,486				125,010				(12,524	)			(10.0	)
Total operating revenue		$	733,276			$	863,233			$	(129,957	)			(15.1	)%
Operating income/(loss):
Truckload		$	1,462			$	22,348			$	(20,886	)			(93.5	)%
Dedicated			18,964				39,143				(20,179	)			(51.6	)
Intermodal			(2,420	)			(452	)			(1,968	)			(435.4	)
Brokerage			8,487				13,414				(4,927	)			(36.7	)
Total operating income		$	26,493			$	74,453			$	(47,960	)			(64.4	)%
Operating ratio:
Truckload			99.6	%			93.7	%
Dedicated			92.2				87.5
Intermodal			105.3				100.6
Brokerage			92.5				89.3
Consolidated operating ratio			96.4	%			91.4	%
Operating ratio, net of fuel surcharges:
Truckload			99.5	%			92.6	%
Dedicated			90.6				84.8
Intermodal			106.3				100.7
Brokerage			92.5				89.3
Consolidated operating ratio, net of fuel surcharges			95.8	%			90.0	%

MARTEN TRANSPORT, LTD.

OPERATING STATISTICS

(Unaudited)

		Three Months			Nine Months
		Ended September 30,			Ended September 30,
		2024			2023			2024			2023
Truckload Segment:
Revenue (in thousands)		$	108,424			$	114,227			$	332,498			$	351,991
Average revenue, net of fuel surcharges, per tractor per week(1)		$	4,187			$	4,285			$	4,090			$	4,442
Average tractors(1)			1,695				1,714				1,776				1,732
Average miles per trip			533				529				533				515
Non-revenue miles percentage(2)			12.2	%			12.1	%			12.1	%			12.4	%
Total miles (in thousands)			39,288				39,093				119,838				116,651
Dedicated Segment:
Revenue (in thousands)		$	75,021			$	101,797			$	242,747			$	313,231
Average revenue, net of fuel surcharges, per tractor per week(1)		$	3,693			$	3,900			$	3,744			$	3,949
Average tractors(1)			1,296				1,619				1,379				1,670
Average miles per trip			311				339				321				335
Non-revenue miles percentage(2)			1.3	%			1.3	%			1.2	%			1.2	%
Total miles (in thousands)			26,571				33,039				83,882				101,948
Intermodal Segment:
Revenue (in thousands)		$	14,509			$	22,047			$	45,545			$	73,001
Loads			4,119				6,327				13,172				19,871
Average tractors			104				154				117				168
Brokerage Segment:
Revenue (in thousands)		$	39,412			$	41,467			$	112,486			$	125,010
Loads			24,628				24,077				67,389				67,483
At September 30, 2024 and September 30, 2023:
Total tractors(1)			3,080				3,454
Average age of company tractors (in years)			1.8				1.8
Total trailers			5,456				5,726
Average age of company trailers (in years)			5.2				4.4
Ratio of trailers to tractors(1)			1.8				1.7
Total refrigerated containers			786				788

		Three Months			Nine Months
		Ended September 30,			Ended September 30,
(In thousands)		2024			2023			2024			2023
Net cash provided by operating activities		$	29,478			$	28,132			$	111,021			$	126,333
Net cash used for investing activities			(59,222	)			(35,831	)			(107,247	)			(124,470	)
Net cash used for financing activities			(4,465	)			(4,762	)			(13,997	)			(14,396	)
Weighted average shares outstanding:
Basic			81,437				81,306				81,389				81,260
Diluted			81,492				81,454				81,460				81,414

(1)	Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 94 and 99 tractors as of September 30, 2024 and 2023, respectively.

(2)	Represents the percentage of miles for which the company is not compensated.

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