<PAGE>
This report consists of
eight (8) pages. There
are no Exhibits.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: March 31, 1995
Commission File Number: 0-15010
MARTEN TRANSPORT, LTD.
(Exact name of registrant as specified in its charter)
Delaware 39-1140809
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
129 Marten Street, Mondovi, Wisconsin 54755
- ------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 715-926-4216
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
The number of shares outstanding of the registrant's Common Stock, par value
$.01 per share, was 2,929,950 as of March 31, 1995.
<PAGE>
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
MARTEN TRANSPORT, LTD.
CONDENSED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . $ 2,900 $ 3,129
Receivables . . . . . . . . . . . . . . . 17,111 16,497
Prepaid expenses. . . . . . . . . . . . . 5,497 5,057
Deferred income taxes . . . . . . . . . . 2,408 2,260
--------- ------------
Total current assets. . . . . . . . . 27,916 26,943
Property and equipment:
Revenue equipment, building and land,
office equipment, and other . . . . . . 121,521 117,512
Accumulated depreciation and
amortization. . . . . . . . . . . . . . (37,722) (38,807)
--------- ------------
Net property and equipment. . . . . . 83,799 78,705
--------- ------------
TOTAL ASSETS. . . . . . . . . . $111,715 $105,648
--------- ------------
--------- ------------
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities:
Accounts payable and accrued liabilities. $ 12,018 $ 9,209
Insurance and claims accruals . . . . . . 10,163 9,639
Current maturities of long-term debt. . . 15,452 14,963
--------- ------------
Total current liabilities . . . . . . 37,633 33,811
Long-term debt, less current maturities . . 24,727 24,917
Deferred income taxes. . . . . . . . . . . . 14,720 13,816
--------- ------------
Total liabilities . . . . . . . . . . 77,080 72,544
Shareholders' investment:
Common stock, $.01 par value per
share, 10,000,000 shares authorized,
2,929,950 shares issued and
outstanding . . . . . . . . . . . . . . 29 29
Additional paid-in capital. . . . . . . . 9,281 9,281
Retained earnings . . . . . . . . . . . . 25,325 23,794
--------- ------------
Total shareholders'
investment. . . . . . . . . . . . . . 34,635 33,104
--------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' INVESTMENT. . . . $111,715 $105,648
--------- ------------
--------- ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
MARTEN TRANSPORT, LTD.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
1995 1994
---- ----
<S> <C> <C>
OPERATING REVENUE. . . . . . . . . . . . $31,961 $29,220
OPERATING EXPENSES:
Salaries, wages and benefits . . . . . 11,770 10,897
Purchased transportation . . . . . . . 1,603 1,290
Fuel and fuel taxes. . . . . . . . . . 5,724 5,540
Supplies and maintenance . . . . . . . 3,178 2,958
Depreciation and amortization. . . . . 3,518 3,104
Operating taxes and licenses . . . . . 714 618
Insurance and claims . . . . . . . . . 1,571 1,363
Communications and utilities . . . . . 396 381
Gain on disposition of revenue
equipment. . . . . . . . . . . . . . (1,041) (515)
Other. . . . . . . . . . . . . . . . . 1,218 1,018
------- -------
Total operating expenses . . . . 28,651 26,654
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OPERATING INCOME . . . . . . . . . . . . 3,310 2,566
OTHER EXPENSES (INCOME):
Interest expense . . . . . . . . . . . 778 603
Interest income and other. . . . . . . (19) (36)
------- -------
INCOME BEFORE INCOME TAXES . . . . . . . 2,551 1,999
PROVISION FOR INCOME TAXES . . . . . . . 1,020 799
------- -------
NET INCOME . . . . . . . . . . . . . . . $ 1,531 $ 1,200
------- -------
------- -------
NET INCOME PER COMMON AND COMMON
EQUIVALENT SHARE . . . . . . . . . . . $ 0.52 $ 0.35
------- -------
------- -------
Weighted average common and common
equivalent shares outstanding. . . . . 2,964 3,459
------- -------
------- -------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
MARTEN TRANSPORT, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
1995 1994
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Operations:
Net income . . . . . . . . . . . . . . .$1,531 $1,200
Adjustments to reconcile net
income to net cash flows
from operating activities:
Depreciation and amortization . . . 3,518 3,104
Gain on disposition of revenue
equipment . . . . . . . . . . . .(1,041) (515)
Deferred tax provision. . . . . . . 756 577
Changes in other current
operating items . . . . . . . . . 2,279 3,668
------ ------
Net cash provided by
operating activities. . . . . 7,043 8,034
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions:
Revenue equipment, net . . . . . . . . . (7,432) (5,816)
Building and land, office equipment,
and other additions, net . . . . . . . (139) (237)
------ ------
Net cash used for investing
activities. . . . . . . . . . (7,571) (6,053)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term borrowings . . . . . . . . . . . 4,451 3,266
Repayment of long-term borrowings. . . . . (4,152) (5,824)
------ ------
Net cash provided by (used for)
financing activities. . . . . 299 (2,558)
------ ------
DECREASE IN CASH AND CASH EQUIVALENTS. . . . (229) (577)
CASH AND CASH EQUIVALENTS:
Beginning of period. . . . . . . . . . . . 3,129 5,339
------ ------
End of period. . . . . . . . . . . . . . . $2,900 $4,762
------ ------
------ ------
CASH PAID (RECEIVED) FOR:
Interest . . . . . . . . . . . . . . . . . $ 764 $ 673
------ ------
------ ------
Income taxes . . . . . . . . . . . . . . . $ (644) $ 60
------ ------
------ ------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(1) Financial Statements
The accompanying unaudited condensed financial statements reflect, in
the opinion of management, all adjustments considered necessary for a
fair presentation as of March 31, 1995. The results of operations for
any interim period are not necessarily indicative of results for the
full year. The unaudited interim financial statements should be read in
conjunction with the financial statements and notes thereto included in
the Company's Annual Report on Form 10-K for the year ended December 31,
1994.
(2) Reclassifications
Certain amounts in the 1994 financial statements have been reclassified
to be consistent with the 1995 presentation. These reclassifications do
not have a material effect on the financial statements.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS
Operating revenue of $32.0 million for the first quarter of 1995
increased 9.4 percent over $29.2 million for the same period last year.
This increase results primarily from the transportation of additional
freight associated with both continued customer demand and an increase
in the size of the company's fleet. Loaded miles traveled in 1995
increased 6.6 percent over 1994, while average freight rates increased
2.6 percent. Management anticipates that operating revenue for the
remainder of 1995 will exceed 1994 levels as the company continues to
expand its fleet to accommodate continued customer demand.
Operating expenses for the quarter ended March 31, 1995, were 89.6
percent of operating revenue, versus 91.2 percent for the same period in
1994. All expense categories increased in 1995 due to transportation of
additional freight and an increase in the company's fleet. Gains on
disposition of revenue equipment continued to increase in 1995 due to
strong market demand for used equipment and planned replacements of the
company's fleet. Gains on planned replacement of revenue equipment are
expected to continue in 1995. Management anticipates that operating
expenses, as a percentage of operating revenue, will remain at current
levels for the remainder of 1995.
Interest expense for the three months ended March 31, 1995, increased
29.0 percent over the same period in 1994. This increase resulted from
higher interest rates in 1995 along with additional long-term borrowing
associated with revenue equipment purchases and the repurchase of
500,000 shares of the company's common stock in June of 1994. Interest
expense in 1995 is expected to increase from the current level as long-
term debt is added to finance revenue equipment acquisitions.
The company recorded net income of $1,531,000, or 52 cents per share,
for the first quarter of 1995. This compares with net income of
$1,200,000, or 35 cents per share, for the same period last year. The
improvement in net income results from continued growth of revenue,
management's control of expenses and increased gains on the disposition
of revenue equipment.
CAPITAL RESOURCES AND LIQUIDITY
The company continued to replace and increase its fleet with new, more-
efficient revenue equipment during the first three months of 1995.
These expenditures were funded using cash flow from operations and long-
term debt collateralized by new equipment.
Marten has historically operated effectively with a working capital
deficit caused by current maturities of long-term debt related to
acquisitions of revenue equipment. Working capital requirements have
been funded by cash flow from operations due to strong operating
profits, short turnover in accounts receivable and cash management
practices. The working capital deficit at March 31, 1995, of $9.7
million, increased from $6.9 million at December 31, 1994 due primarily
to short-term payables associated with revenue equipment deliveries in
the first quarter of 1995. These short-term payables will be replaced
in the second quarter with long-term debt. Marten has not used short-
term borrowing to meet working capital needs, and does not anticipate
the use of short-term borrowing in 1995. Management believes the
company's liquidity is adequate to meet anticipated near-term operating
requirements.
The company is committed to purchase an additional $18 million of new
revenue equipment, net of trade-in allowances, during the remainder of
1995.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings:
None
ITEM 2. Change in Securities:
None
ITEM 3. Defaults Upon Senior Securities:
None
ITEM 4. Submission of Matters to a Vote of Security Holders:
None
ITEM 5. Other Information:
None
ITEM 6. Exhibits and Reports on Form 8-K:
a) Exhibits:
Exhibit 27.1 Financial Data Schedule
b) Reports on Form 8-K:
No reports on Form 8-K have been filed during the quarter
ended March 31, 1995.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
MARTEN TRANSPORT, LTD.
(Registrant)
Dated: May 12, 1995 By: /S/ DARRELL D. RUBEL
-----------------------------
Darrell D. Rubel
Executive Vice President and Treasurer
(Chief Financial Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Statements of Operations and the Balance Sheets and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 2,900,000
<SECURITIES> 0
<RECEIVABLES> 17,111,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 27,916,000
<PP&E> 121,521,000
<DEPRECIATION> 37,722,000
<TOTAL-ASSETS> 111,715,000
<CURRENT-LIABILITIES> 37,633,000
<BONDS> 0
<COMMON> 29,000
0
0
<OTHER-SE> 34,606
<TOTAL-LIABILITY-AND-EQUITY> 111,715,000
<SALES> 31,961,000
<TOTAL-REVENUES> 31,961,000
<CGS> 0
<TOTAL-COSTS> 28,651,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 778,000
<INCOME-PRETAX> 2,551,000
<INCOME-TAX> 1,020,000
<INCOME-CONTINUING> 1,531,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,531,000
<EPS-PRIMARY> .52
<EPS-DILUTED> 0
</TABLE>
