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Marten Transport Announces First Quarter Results

1. Marten's Q1 net income fell to $4.3 million, down from $9.6 million. 2. Operating revenue decreased to $223.2 million from $249.7 million year-over-year. 3. Operating expenses rose to 97.4% of revenue, indicating margin pressure. 4. Freight market recession impacts earnings due to weak demand and supply oversupply. 5. Marten is certified as a TCA Elite Fleet, enhancing its reputation.

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FAQ

Why Bearish?

Marten Transport's significant decline in revenue and income suggests potential future challenges. Historical trends show companies reporting reduced earnings often see stock price declines in subsequent periods.

How important is it?

The company's earnings report directly impacts investor confidence, thus affecting share prices. Current market conditions suggest volatility and uncertainty surrounding the sector.

Why Short Term?

The immediate financial metrics show no improvements, likely affecting investor sentiment quickly. Similar past earnings reports have led to swift stock reactions.

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JBHTWERNKNX
April 16, 2025 08:45 ET  | Source: Marten Transport, Ltd. MONDOVI, Wis., April 16, 2025 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $4.3 million, or 5 cents per diluted share, for the first quarter ended March 31, 2025, compared with $9.6 million, or 12 cents per diluted share, for the first quarter of 2024. Operating revenue was $223.2 million for the first quarter of 2025 compared with $249.7 million for the first quarter of 2024. Excluding fuel surcharges, operating revenue was $195.8 million for the 2025 quarter compared with $215.7 million for the 2024 quarter. Fuel surcharge revenue decreased to $27.4 million for the 2025 quarter from $33.9 million for the 2024 quarter. Operating income was $5.9 million for the first quarter of 2025 compared with $12.3 million for the first quarter of 2024. Operating expenses as a percentage of operating revenue were 97.4% for the 2025 first quarter and 95.1% for the 2024 first quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 97.0% for the 2025 first quarter and 94.3% for the 2024 first quarter. Executive Chairman Randolph L. Marten stated, “Our unique multifaceted business model’s value is highlighted by the operating results of our dedicated and brokerage operations for this quarter and throughout last year. Our earnings have continued to be 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, freight rate reductions and freight network disruptions.” “We remain focused on minimizing the freight market’s impact – and now the impact of the U.S. and global economies with the current trade policy volatility - 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 segments.” “We are pleased to recently be certified by the Truckload Carriers Association, or TCA, as a TCA Elite Fleet – 2025 Best Place to Drive.” The TCA partnered with the University of Denver’s Transportation and Supply Chain Institute to recognize North American for-hire truckload carriers that foster exceptional work environments, offer competitive compensation and implement innovative practices to support their drivers. Current Investor Presentation Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across Marten’s six distinct business platforms – Temperature-Sensitive and Dry 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, including the impact of the freight market and U.S. and global economies with the current trade policy volatility, 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, 2024. 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   March 31,  December 31, (In thousands, except share information) 2025  2024    (Unaudited)     ASSETS        Current assets:        Cash and cash equivalents $39,905  $17,267 Receivables:        Trade, net  95,250   89,992 Other  4,724   5,364 Prepaid expenses and other  22,621   25,888 Total current assets  162,500   138,511          Property and equipment:        Revenue equipment, buildings and land, office equipment and other  1,199,378   1,198,737 Accumulated depreciation  (380,321)  (370,124)Net property and equipment  819,057   828,613 Other noncurrent assets  1,775   1,633 Total assets $983,332  $968,757          LIABILITIES AND STOCKHOLDERS’ EQUITY        Current liabilities:        Accounts payable $37,783  $25,781 Insurance and claims accruals  43,486   44,246 Accrued and other current liabilities  28,354   23,492 Total current liabilities  109,623   93,519 Deferred income taxes  105,824   107,034 Noncurrent operating lease liabilities  385   282 Total liabilities  215,832   200,835          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; 81,493,424 shares at March 31, 2025, and 81,463,938 shares at December 31, 2024, issued and outstanding  815   815 Additional paid-in capital  53,073   52,941 Retained earnings  713,612   714,166 Total stockholders’ equity  767,500   767,922 Total liabilities and stockholders’ equity $983,332  $968,757           MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)   Three Months   Ended March 31, (In thousands, except per share information) 2025  2024          Operating revenue $223,152  $249,672          Operating expenses (income):        Salaries, wages and benefits  78,800   88,762 Purchased transportation  37,656   41,814 Fuel and fuel taxes  33,117   39,561 Supplies and maintenance  15,513   16,070 Depreciation  27,470   28,527 Operating taxes and licenses  2,417   2,575 Insurance and claims  13,377   11,657 Communications and utilities  2,279   2,371 Gain on disposition of revenue equipment  (1,665)  (1,171)Other  8,329   7,256          Total operating expenses  217,293   237,422          Operating income  5,859   12,250          Other  (349)  (796)         Income before income taxes  6,208   13,046          Income taxes expense  1,873   3,400          Net income $4,335  $9,646          Basic earnings per common share $0.05  $0.12          Diluted earnings per common share $0.05  $0.12          Dividends declared per common share $0.06  $0.06           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) 2025  2024  2025 vs. 2024  2025 vs. 2024 Operating revenue:                Truckload revenue, net of fuel surcharge revenue $90,106  $95,022  $(4,916)  (5.2)%Truckload fuel surcharge revenue  14,285   16,529   (2,244)  (13.6)Total Truckload revenue  104,391   111,551   (7,160)  (6.4)                 Dedicated revenue, net of fuel surcharge revenue  62,405   71,738   (9,333)  (13.0)Dedicated fuel surcharge revenue  11,220   14,722   (3,502)  (23.8)Total Dedicated revenue  73,625   86,460   (12,835)  (14.8)                 Intermodal revenue, net of fuel surcharge revenue  10,268   13,281   (3,013)  (22.7)Intermodal fuel surcharge revenue  1,849   2,691   (842)  (31.3)Total Intermodal revenue  12,117   15,972   (3,855)  (24.1)                 Brokerage revenue  33,019   35,689   (2,670)  (7.5)                 Total operating revenue $223,152  $249,672  $(26,520)  (10.6)%                 Operating income/(loss):                Truckload $(300) $489  $(789)  (161.3)%Dedicated  4,854   9,258   (4,404)  (47.6)Intermodal  (855)  (194)  (661)  (340.7)Brokerage  2,160   2,697   (537)  (19.9)Total operating income $5,859  $12,250  $(6,391)  (52.2)%                 Operating ratio:                Truckload  100.3%  99.6%        Dedicated  93.4   89.3         Intermodal  107.1   101.2         Brokerage  93.5   92.4         Consolidated operating ratio  97.4%  95.1%                         Operating ratio, net of fuel surcharges:                Truckload  100.3%  99.5%        Dedicated  92.2   87.1         Intermodal  108.3   101.5         Brokerage  93.5   92.4         Consolidated operating ratio, net of fuel surcharges  97.0%  94.3%         MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)   Three Months   Ended March 31,   2025  2024 Truckload Segment:        Revenue (in thousands) $104,391  $111,551 Average revenue, net of fuel surcharges, per tractor per week(1) $4,196  $3,996 Average tractors(1)  1,670   1,830 Average miles per trip  537   537 Non-revenue miles percentage(2)  11.2%  12.6%Total miles (in thousands)  38,273   39,703          Dedicated Segment:        Revenue (in thousands) $73,625  $86,460 Average revenue, net of fuel surcharges, per tractor per week(1) $3,846  $3,781 Average tractors(1)  1,262   1,459 Average miles per trip  308   329 Non-revenue miles percentage(2)  1.6%  1.1%Total miles (in thousands)  25,236   29,080          Intermodal Segment:        Revenue (in thousands) $12,117  $15,972 Loads  3,657   4,589 Average tractors  77   126          Brokerage Segment:        Revenue (in thousands) $33,019  $35,689 Loads  20,416   20,061          At March 31, 2025 and March 31, 2024:        Total tractors(1)  3,040   3,406 Average age of company tractors (in years)  2.0   1.9 Total trailers  5,331   5,619 Average age of company trailers (in years)  5.4   4.8 Ratio of trailers to tractors(1)  1.8   1.6 Total refrigerated containers  786   787    Three Months   Ended March 31, (In thousands) 2025  2024          Net cash provided by operating activities $36,215  $45,722 Net cash (used for) investing activities  (8,413)  (20,249)Net cash (used for) financing activities  (5,164)  (4,956)         Weighted average shares outstanding:        Basic  81,493   81,350 Diluted  81,508   81,437  (1) Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 82 and 96 tractors as of March 31, 2025 and 2024, respectively.  (2) Represents the percentage of miles for which the company is not compensated.

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