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Marten Transport Announces Fourth Quarter and Year End Results

1. MRTN's Q4 2024 net income fell to $5.6 million. 2. Operating revenue decreased 14.1% from Q4 2023 to Q4 2024. 3. Operating expenses were 97.1% of revenue for Q4 2024, up from 94.2%. 4. Sequential improvement noted in net and operating income since Q2 2022. 5. Focus maintained on minimizing freight market impacts and growth opportunities.

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Why Bearish?

The significant drop in earnings and revenues suggests weakened performance, reminiscent of past downturns, which negatively affects investor sentiment.

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The article details critical financial metrics that directly affect MRTN’s performance perception in the market.

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Immediate effects expected due to earnings miss, though improvements in strategy may benefit future performance.

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MRTN
January 27, 2025 16:05 ET  | Source: Marten Transport, Ltd. MONDOVI, Wis., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $5.6 million, or 7 cents per diluted share, for the fourth quarter ended December 31, 2024, compared with $12.4 million, or 15 cents per diluted share, for the fourth quarter of 2023. The 2024 fourth-quarter earnings improved 50.1% sequentially from 2024 third-quarter net income of $3.8 million, or 5 cents per diluted share. For the year ended December 31, 2024, net income was $26.9 million, or 33 cents per diluted share, compared with $70.4 million, or 86 cents per diluted share, for 2023. Operating revenue was $230.4 million for the fourth quarter of 2024 compared with $268.2 million for the fourth quarter of 2023. Excluding fuel surcharges, operating revenue was $202.9 million for the 2024 quarter compared with $229.4 million for the 2023 quarter. Fuel surcharge revenue decreased to $27.6 million for the 2024 quarter from $38.8 million for the 2023 quarter. Operating revenue was $963.7 million for 2024 compared with $1.131 billion for 2023. Excluding fuel surcharges, operating revenue was $840.0 million for 2024 compared with $972.0 million for 2023. Fuel surcharge revenue decreased to $123.7 million for 2024 compared with $159.4 million for 2023. Operating income was $6.7 million for the fourth quarter of 2024 compared with $15.7 million for the fourth quarter of 2023. The 2024 fourth-quarter operating income improved 57.6% from operating income of $4.3 million for the third quarter of 2024. Operating income was $33.2 million for 2024 compared with $90.1 million for 2023. Operating expenses as a percentage of operating revenue were 97.1% for the 2024 fourth quarter and 94.2% for the 2023 fourth quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 96.7% for the 2024 fourth quarter and 93.2% for the 2023 fourth quarter – compared with 97.9% for the third quarter of 2024. Operating expenses as a percentage of operating revenue were 96.6% for 2024 and 92.0% for 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 96.0% for 2024 and 90.7% for 2023. Executive Chairman Randolph L. Marten stated, “We are encouraged by this quarter being the first quarter with sequential improvement in each of our net income, operating income and operating ratio, net of fuel surcharges, since the second quarter of 2022, a period that preceded the freight market recession’s severe inflationary operating costs, freight rate reductions and freight network disruptions. Our people also drove sequential increases this quarter in our revenue per tractor, rate per total mile and miles per tractor within each of our truckload and dedicated operations.” “We continue to focus 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 (In thousands, except share information)December 31,2024 December 31,2023  (Unaudited)     ASSETS        Current assets:        Cash and cash equivalents$17,267  $53,213  Receivables:        Trade, net 89,992   105,501  Other 5,364   10,356  Prepaid expenses and other 25,888   27,512     Total current assets 138,511   196,582           Property and equipment:        Revenue equipment, buildings and land, office equipment and other 1,198,737   1,162,336  Accumulated depreciation (370,124)  (370,103)    Net property and equipment 828,613   792,233  Other noncurrent assets 1,633   1,524       Total assets$968,757  $990,339           LIABILITIES AND STOCKHOLDERS’ EQUITY        Current liabilities:        Accounts payable$25,781  $36,516  Insurance and claims accruals 44,246   47,017  Accrued and other current liabilities 23,492   26,709     Total current liabilities 93,519   110,242  Deferred income taxes 107,034   122,462  Noncurrent operating lease liabilities 282   249     Total liabilities 200,835   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; 81,463,938 shares at December 31, 2024, and       81,312,168 shares at December 31, 2023, issued and outstanding 815   813  Additional paid-in capital 52,941   49,789  Retained earnings 714,166   706,784     Total stockholders’ equity 767,922   757,386       Total liabilities and stockholders’ equity$968,757  $990,339    MARTEN TRANSPORT, LTD.CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(Unaudited)  Three MonthsEnded December 31,  YearEnded December 31,  (In thousands, except per share information)2024  2023  2024  2023                   Operating revenue$230,432  $268,222  $963,708  $1,131,455                   Operating expenses (income):                Salaries, wages and benefits 83,009   91,350   341,732   378,818  Purchased transportation 39,231   47,259   169,142   199,334  Fuel and fuel taxes 32,992   42,731   147,143   180,437  Supplies and maintenance 14,331   16,120   63,337   67,411  Depreciation 27,528   28,748   111,653   116,722  Operating taxes and licenses 2,683   2,708   10,302   11,053  Insurance and claims 15,134   15,209   53,109   56,014  Communications and utilities 2,195   2,524   9,029   10,149  Gain on disposition of revenue equipment (387)  (1,802)  (4,971)  (13,612) Other 6,989   7,718   30,012   35,019                                        Total operating expenses 223,705   252,565   930,488   1,041,345                   Operating income 6,727   15,657   33,220   90,110                   Other (394)  (868)  (3,126)  (3,806)                  Income before income taxes 7,121   16,525   36,346   93,916                   Income taxes expense 1,488   4,126   9,424   23,543                   Net income$5,633  $12,399  $26,922  $70,373                   Basic earnings per common share$0.07  $0.15  $0.33  $0.87                   Diluted earnings per common share$0.07  $0.15  $0.33  $0.86                   Dividends declared per common share$0.06  $0.06  $0.24  $0.24     MARTEN TRANSPORT, LTD. SEGMENT INFORMATION (Unaudited)  Three MonthsEndedDecember 31,  DollarChangeThree MonthsEndedDecember 31,    PercentageChangeThree MonthsEndedDecember 31,  (Dollars in thousands)2024  2023  2024 vs. 2023  2024 vs. 2023  Operating revenue:                Truckload revenue, net of fuel surcharge revenue$93,106  $95,461  $(2,355)  (2.5)% Truckload fuel surcharge revenue 14,188   18,023   (3,835)  (21.3) Total Truckload revenue 107,294   113,484   (6,190)  (5.5)                  Dedicated revenue, net of fuel surcharge revenue 64,997   77,731   (12,734)  (16.4) Dedicated fuel surcharge revenue 11,391   17,310   (5,919)  (34.2) Total Dedicated revenue 76,388   95,041   (18,653)  (19.6)                  Intermodal revenue, net of fuel surcharge revenue 11,238   15,610   (4,372)  (28.0) Intermodal fuel surcharge revenue 1,971   3,467   (1,496)  (43.1) Total Intermodal revenue 13,209   19,077   (5,868)  (30.8)                  Brokerage revenue 33,541   40,620   (7,079)  (17.4)                    Total operating revenue$230,432  $268,222  $(37,790)   (14.1)%                  Operating income/(loss):                Truckload$1,821  $2,487  $(666)  (26.8)% Dedicated 4,073   9,234   (5,161)  (55.9) Intermodal (1,502)  296   (1,798)  (607.4) Brokerage 2,335   3,640   (1,305)  (35.9) Total operating income$6,727  $15,657  $(8,930)  (57.0)%                  Operating ratio:                Truckload 98.3%  97.8%         Dedicated 94.7   90.3          Intermodal 111.4   98.4          Brokerage 93.0   91.0            Consolidated operating ratio 97.1%  94.2%                          Operating ratio, net of fuel surcharges:                Truckload 98.0%  97.4%         Dedicated 93.7   88.1          Intermodal 113.4   98.1          Brokerage 93.0   91.0            Consolidated operating ratio, net of fuel     surcharges 96.7%  93.2%           MARTEN TRANSPORT, LTD.SEGMENT INFORMATION(Unaudited)  YearEndedDecember 31,  DollarChangeYearEndedDecember 31,  PercentageChangeYearEndedDecember 31,  (Dollars in thousands)2024  2023  2024 vs. 2023  2024 vs. 2023  Operating revenue:                Truckload revenue, net of fuel surcharge revenue$377,452  $395,565  $(18,113)  (4.6)% Truckload fuel surcharge revenue 62,340   69,910   (7,570)  (10.8) Total Truckload revenue 439,792   465,475   (25,683)  (5.5)                  Dedicated revenue, net of fuel surcharge revenue 267,077   334,962   (67,885)  (20.3) Dedicated fuel surcharge revenue 52,058   73,310   (21,252)  (29.0) Total Dedicated revenue 319,135   408,272   (89,137)  (21.8)                  Intermodal revenue, net of fuel surcharge revenue 49,468   75,887   (26,419)  (34.8) Intermodal fuel surcharge revenue 9,286   16,191   (6,905)  (42.6) Total Intermodal revenue 58,754   92,078   (33,324)  (36.2)                  Brokerage revenue 146,027   165,630   (19,603)  (11.8)                    Total operating revenue$963,708  $1,131,455  $(167,747)   (14.8)%                  Operating income/(loss):                Truckload$3,283  $24,835  $(21,552)  (86.8)% Dedicated 23,037   48,377   (25,340)  (52.4) Intermodal (3,922)  (156)  (3,766)  (2,414.1) Brokerage 10,822   17,054   (6,232)  (36.5)   Total operating income$33,220  $90,110  $(56,890)  (63.1)%                  Operating ratio:                Truckload 99.3%  94.7%         Dedicated 92.8   88.2          Intermodal 106.7   100.2          Brokerage 92.6   89.7            Consolidated operating ratio 96.6%  92.0%                          Operating ratio, net of fuel surcharges:                Truckload 99.1%  93.7%         Dedicated 91.4   85.6          Intermodal 107.9   100.2          Brokerage 92.6   89.7            Consolidated operating ratio, net of fuel     surcharges 96.0%  90.7%           MARTEN TRANSPORT, LTD.OPERATING STATISTICS(Unaudited)  Three MonthsEnded December 31,  YearEnded December 31,   2024  2023  2024  2023  Truckload Segment:                Revenue (in thousands)$107,294  $113,484  $439,792  $465,475  Average revenue, net of fuel surcharges, per tractor per   week(1)$4,227  $4,183  $4,123  $4,377  Average tractors(1) 1,676   1,737   1,751   1,733  Average miles per trip 535   533   533   519  Non-revenue miles percentage(2) 11.8%  12.4%  12.1%  12.4% Total miles (in thousands) 39,147   39,278   158,985   155,929                   Dedicated Segment:                Revenue (in thousands)$76,388  $95,041  $319,135  $408,272  Average revenue, net of fuel surcharges, per tractor per   week(1)$3,841  $3,895  $3,767  $3,936  Average tractors(1) 1,288   1,518   1,356   1,632  Average miles per trip 313   335   319   335  Non-revenue miles percentage(2) 1.5%  1.2%  1.3%  1.2% Total miles (in thousands) 26,799   31,215   110,681   133,163                   Intermodal Segment:                Revenue (in thousands)$13,209  $19,077  $58,754  $92,078  Loads 3,803   5,289   16,975   25,160  Average tractors 88   133   110   159                   Brokerage Segment:                Revenue (in thousands)$33,541  $40,620  $146,027  $165,630  Loads 21,749   23,594   89,138   91,077                   At December 31, 2024 and December 31, 2023:                Total tractors(1) 3,006   3,349          Average age of company tractors (in years) 1.9   1.9          Total trailers 5,440   5,653          Average age of company trailers (in years) 5.3   4.6          Ratio of trailers to tractors(1) 1.8   1.7          Total refrigerated containers 786   787              Three MonthsEnded December 31,  YearEnded December 31,  (In thousands)2024 2023 2024 2023                   Net cash provided by operating activities$23,793  $38,045  $134,814  $164,378  Net cash used for investing activities (44,891)  (48,070)  (152,138)  (172,540) Net cash used for financing activities (4,625)  (4,829)  (18,622)  (19,225)                   Weighted average shares outstanding:                Basic 81,457   81,309   81,406   81,272  Diluted 81,507   81,418   81,472   81,413     (1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 88 and 94 tractors as of December 31, 2024 and 2023, respectively.  (2)Represents the percentage of miles for which the company is not compensated. 

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