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Marten Transport Announces Third Quarter Results

Chairman and Chief Executive Officer Randolph L. Marten said, "While our earnings were negatively impacted by near-term headwinds – steadily rising diesel fuel prices, extreme heat and the persistently weak economy impacting volumes – we remain confident in our long-term strategy. We continue to develop a diverse customer base that gains value from and expands all of our operating units.

"In spite of the challenging circumstances, our truckload and intermodal revenue, each net of fuel surcharges, increased 5.4% and 11.2%, respectively, over last year's third quarter, while our brokerage revenue increased 7.9% over the same period. We continue to see improvement in our average truckload revenue, net of fuel surcharges, per tractor per week, which increased 7.3% in the third quarter over the same quarter last year, but the improvement was offset by increased costs in driver wages and net fuel expense. "Our customer base benefits from our flexible and efficient regional operations, now representing 72.2% of our truckload fleet compared with 64.8% as of a year earlier."

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)
     
     
     
(In thousands, except share information)  September 30, 2012  December 31, 2011
     
ASSETS    
Current assets:    
Cash and cash equivalents  $ 5,127  $ 20,821
Receivables:    
Trade, net 68,841 59,385
Other 4,738 3,430
Prepaid expenses and other 13,186 15,426
Deferred income taxes 2,431 2,738
Total current assets 94,323 101,800
Property and equipment:    
Revenue equipment, buildings and land, office equipment and other 556,323 523,974
Accumulated depreciation (149,280) (155,774)
Net property and equipment 407,043 368,200
Other assets 606 579
TOTAL ASSETS  $ 501,972  $ 470,579
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued liabilities  $ 40,782  $ 33,343
Insurance and claims accruals 13,327 13,042
Total current liabilities 54,109 46,385
Deferred income taxes 107,251 103,835
Total liabilities 161,360 150,220
     
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 September 30, 2012, and 21,984,597 shares at December 31, 2011, issued and outstanding 221 220
Additional paid-in capital 82,090 80,078
Retained earnings 255,875 237,872
Total Marten Transport, Ltd. stockholders' equity 338,186 318,170
Noncontrolling interest 2,426 2,189
Total stockholders' equity 340,612 320,359
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 501,972  $ 470,579
         
         
MARTEN TRANSPORT, LTD.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
         
  Three Months Ended September 30,  Nine Months Ended September 30, 
(In thousands, except per share information) 2012 2011 2012 2011
         
OPERATING REVENUE  $ 163,606  $ 156,348  $ 472,044  $ 445,339
         
OPERATING EXPENSES (INCOME):        
Salaries, wages and benefits 42,352 37,775 120,021 108,287
Purchased transportation 32,428 31,354 92,021 89,362
Fuel and fuel taxes 43,020 40,590 121,659 115,845
Supplies and maintenance 10,581 11,030 29,958 30,466
Depreciation 15,537 14,758 45,114 42,358
Operating taxes and licenses 1,694 1,644 4,893 4,577
Insurance and claims 4,809 4,617 15,816 13,330
Communications and utilities 1,265 1,168 3,637 3,396
Gain on disposition of revenue equipment (1,349) (1,084) (4,053) (2,819)
Other 3,429 3,385 10,336 10,458
         
Total operating expenses 153,766 145,237 439,402 415,260
         
OPERATING INCOME 9,840 11,111 32,642 30,079
         
NET INTEREST INCOME (6) (18) (40) (6)
         
INCOME BEFORE INCOME TAXES 9,846 11,129 32,682 30,085
Less: Income before income taxes attributable to noncontrolling interest 61 318 467 708
         
INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO MARTEN TRANSPORT, LTD. 9,785 10,811 32,215 29,377
         
PROVISION FOR INCOME TAXES 3,267 4,478 12,667 12,755
         
NET INCOME  $ 6,518  $ 6,333  $ 19,548  $ 16,622
         
BASIC EARNINGS PER COMMON SHARE  $ 0.30  $ 0.29  $ 0.89  $ 0.76
         
DILUTED EARNINGS PER COMMON SHARE  $ 0.29  $ 0.29  $ 0.88  $ 0.75
         
DIVIDENDS PAID PER COMMON SHARE $0.025  $ 0.02  $ 0.07  $ 0.06
         
         
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
         
  Three Months Ended September 30, Dollar Change Three Months Ended September 30,  Percentage Change Three Months Ended September 30,
(Dollars in thousands) 2012 2011 2012 vs. 2011 2012 vs. 2011
Operating revenue:        
Truckload revenue, net of fuel surcharge revenue $96,938 $92,003 $4,935 5.4%
Truckload fuel surcharge revenue 25,931 24,849 1,082 4.4
Total Truckload revenue 122,869 116,852 6,017 5.1
         
Logistics revenue, net of intermodal fuel surcharge revenue 36,408 35,500 908 2.6
Intermodal fuel surcharge revenue 4,329 3,996 333 8.3
Total Logistics revenue 40,737 39,496 1,241 3.1
         
Total operating revenue $163,606 $156,348 $7,258 4.6%
         
Operating income:        
Truckload $7,938 $9,174 $(1,236) (13.5)%
Logistics 1,902 1,937 (35) (1.8)
Total operating income $9,840 $11,111 $(1,271) (11.4)%
         
Operating ratio:        
Truckload 93.5% 92.1%   1.5%
Logistics 95.3 95.1   0.2
Consolidated operating ratio 94.0% 92.9%   1.2%
         
         
MARTEN TRANSPORT, LTD.
SEGMENT INFORMATION
(Unaudited)
         
  Nine Months Ended September 30, Dollar Change Nine Months Ended September 30, Percentage Change Nine Months Ended September 30,
(Dollars in thousands) 2012 2011 2012 vs. 2011 2012 vs. 2011
Operating revenue:        
Truckload revenue, net of fuel surcharge revenue $280,284 $263,613 $16,671 6.3%
Truckload fuel surcharge revenue 77,305 72,463 4,842 6.7
Total Truckload revenue 357,589 336,076 21,513 6.4
         
Logistics revenue, net of intermodal fuel surcharge revenue 102,889 98,221 4,668 4.8
Intermodal fuel surcharge revenue 11,566 11,042 524 4.7
Total Logistics revenue 114,455 109,263 5,192 4.8
         
Total operating revenue $472,044 $445,339 $26,705 6.0%
         
Operating income:        
Truckload $26,039 $24,097 $1,942 8.1%
Logistics 6,603 5,982 621 10.4
Total operating income $32,642 $30,079 $2,563 8.5%
         
Operating ratio:        
Truckload 92.7% 92.8%   (0.1)%
Logistics 94.2 94.5   (0.3)
Consolidated operating ratio 93.1% 93.2%   (0.1)% 
         
         
MARTEN TRANSPORT, LTD.
OPERATING STATISTICS
(Unaudited)
         
  Three Months Ended September 30, Nine Months Ended September 30,
  2012 2011 2012 2011
 Truckload Segment:        
Total Truckload revenue (in thousands) $122,869 $116,852 $357,589 $336,076
Average truckload revenue, net of fuel surcharges, per tractor per week (1) $3,398 $3,168 $3,322 $3,143
Average tractors (1) 2,171 2,210 2,155 2,151
Average miles per trip 630 617 624 629
Non-revenue miles percentage (2) 11.4% 11.4% 11.2% 10.8%
Total miles – company-employed drivers (in thousands) 54,903 51,433 159,700 150,083
Total miles – independent contractors (in thousands) 1,067 1,513 3,686 5,588
         
Logistics Segment:        
Total Logistics revenue (in thousands) $40,737 $39,496 $114,455 $109,263
Brokerage:        
Marten Transport        
Revenue (in thousands) $13,076 $12,116 $39,740 $35,795
Loads 8,172 6,336 24,130 18,485
MWL        
Revenue (in thousands) $7,576 $9,215 $23,906 $25,454
Loads 4,260 4,672 12,479 13,179
Intermodal:        
Revenue (in thousands) $20,085 $18,165 $50,809 $48,014
Loads 7,642 6,508 19,527 18,064
Average tractors 68 80 59 74
         
At September 30, 2012 and September 30, 2011:        
Total tractors (1) 2,267 2,302    
Average age of company tractors (in years) 2.0 2.5    
Total trailers 4,166 4,018    
Average age of company trailers (in years) 2.2 2.5    
Ratio of trailers to tractors (1) 1.8 1.7    
         
         
  Three Months Ended September 30, Nine Months Ended September 30,
(In thousands) 2012 2011 2012 2011
         
Net cash provided by operating activities $22,777 $18,288 $62,789 $60,744
Net cash used for investing activities 22,302 12,193 77,606 24,072
         
Weighted average shares outstanding:        
Basic 22,071 21,985 22,057 21,978
Diluted 22,148 22,074 22,150 22,078
         
         
(1)Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 43 and 52 tractors as of September 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

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