Marten Transport, Ltd. (MRTN) Bundle
A Brief History of Marten Transport, Ltd.
Company Overview
Marten Transport, Ltd., founded in 1946, is a leading provider of transportation services, specializing in the transportation of temperature-sensitive and perishable goods across the United States, Canada, and Mexico. The company operates a fleet of more than 3,000 tractors and over 6,000 trailers, providing a range of services including truckload, dedicated, intermodal, and brokerage services.
Financial Performance in 2024
As of 2024, Marten Transport reported significant challenges in its financial performance, attributed to a softened freight market. Operating revenue for the year was $733.3 million, a decrease of 15.1% from $863.2 million in 2023. The revenue decline was primarily driven by decreases across all service segments.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Truckload | $332.5 | $352.0 | $(19.5) | (5.5%) |
| Dedicated | $242.7 | $313.2 | $(70.5) | (22.5%) |
| Intermodal | $45.5 | $73.0 | $(27.5) | (37.6%) |
| Brokerage | $112.5 | $125.0 | $(12.5) | (10.0%) |
Operating Ratios and Profitability
The consolidated operating ratio for Marten Transport increased to 98.2% in 2024 from 93.8% in 2023, indicating a decline in efficiency. The operating ratios by segment were as follows:
| Segment | 2024 Operating Ratio | 2023 Operating Ratio |
|---|---|---|
| Truckload | 100.1% | 97.6% |
| Dedicated | 95.9% | 88.9% |
| Intermodal | 110.6% | 104.9% |
| Brokerage | 92.6% | 89.7% |
Net income for Marten Transport saw a substantial decline of 72.4%, dropping to $3.8 million, or $0.05 per diluted share, compared to $13.6 million, or $0.17 per diluted share, in 2023. This decline reflects the challenges faced in maintaining profitability amid a declining revenue environment.
Capital Investments and Cash Flow
In the first nine months of 2024, net cash flows provided by operating activities amounted to $111.0 million, which were primarily allocated toward capital expenditures of $102.3 million for new revenue equipment and $14.7 million in cash dividends. The company anticipates capital expenditures of approximately $43 million for the remainder of 2024.
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $111,021 | $126,333 |
| Net Cash Used for Investing Activities | $(107,247) | $(124,470) |
| Net Cash Used for Financing Activities | $(13,997) | $(14,396) |
Stockholder Equity and Dividends
As of September 30, 2024, Marten Transport had stockholders' equity of $766.5 million and no long-term debt outstanding. Quarterly cash dividends of $0.06 per share were consistently paid in each of the first three quarters of 2024, totaling $14.7 million.
Outlook and Challenges
The company faces continued challenges in the freight market, impacting operating ratios and profitability. The strategic focus remains on improving operational efficiency and capitalizing on opportunities in a competitive landscape.
A Who Owns Marten Transport, Ltd. (MRTN)
Ownership Structure
As of 2024, Marten Transport, Ltd. (MRTN) is a publicly traded company listed on the NASDAQ. Its ownership is distributed among institutional investors, individual shareholders, and company insiders.
| Ownership Type | Percentage Ownership |
|---|---|
| Institutional Investors | 72.4% |
| Insiders (Management and Board Members) | 3.5% |
| Individual Retail Investors | 24.1% |
Major Shareholders
The following table lists the major shareholders of Marten Transport, Ltd. as of 2024, along with their respective ownership percentages.
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 12.5% | Institutional |
| The Vanguard Group, Inc. | 11.8% | Institutional |
| Dimensional Fund Advisors LP | 8.9% | Institutional |
| Directors and Officers | 3.5% | Insider |
| Other Institutional Investors | 35.7% | Institutional |
Stock Performance
The stock performance of Marten Transport, Ltd. has seen fluctuations in recent months. The following data outlines the stock’s performance metrics for 2024.
| Metric | Value |
|---|---|
| Current Stock Price | $16.25 |
| Market Capitalization | $1.30 billion |
| 52-Week High | $22.15 |
| 52-Week Low | $14.50 |
| Dividend Yield | 1.5% |
Financial Overview
For the nine months ended September 30, 2024, Marten Transport reported the following financial metrics:
| Financial Metric | Value (in thousands) |
|---|---|
| Operating Revenue | $733,276 |
| Net Income | $21,289 |
| Earnings Per Share (EPS) | $0.26 |
| Operating Expenses | $705,038 |
| Cash and Cash Equivalents | $43,000 |
Recent Developments
Marten Transport has engaged in various strategic initiatives in 2024, including share repurchase programs and capital expenditures to enhance operational capabilities.
| Initiative | Details |
|---|---|
| Share Repurchase Program | Up to $33.2 million authorized for future share buybacks |
| Capital Expenditures | Estimated at $43 million for new revenue equipment |
| Quarterly Dividend | $0.06 per share paid each quarter |
Marten Transport, Ltd. (MRTN) Mission Statement
Company Overview
Marten Transport, Ltd. (MRTN) is a publicly traded transportation and logistics company specializing in providing a range of freight services, including truckload, dedicated, intermodal, and brokerage services. The company operates a fleet of more than 2,000 tractors and trailers, focusing on delivering quality service while maintaining operational efficiency.
Mission Statement
Marten Transport aims to be a leader in the transportation industry by investing in technology, maintaining a modern fleet, and ensuring a commitment to safety and customer satisfaction. The mission emphasizes the importance of sustainable practices, operational efficiency, and employee development, ensuring long-term growth and value creation for stakeholders.
Financial Performance
The financial performance of Marten Transport in 2024 reflects significant challenges faced by the transportation sector. The operating revenue decreased by 15.1%, dropping from $863.2 million in 2023 to $733.3 million in 2024. This decline is attributed to a softened freight market and decreased demand across various service segments.
| Metric | 2024 Amount | 2023 Amount | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $733.3 million | $863.2 million | $(129.9 million) | (15.1%) |
| Net Income | $21.3 million | $58.0 million | $(36.7 million) | (63.3%) |
| Earnings per Share (Diluted) | $0.26 | $0.71 | $(0.45) | (63.4%) |
| Operating Ratio | 96.4% | 91.4% | 5.0% | 5.5% |
Segment Performance
The performance across different service segments further illustrates the challenges faced by Marten Transport in 2024. Each segment reported declines in revenue, resulting in increased operating ratios.
| Segment | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) | Operating Ratio |
|---|---|---|---|---|---|
| Truckload | $332.5 million | $352.0 million | $(19.5 million) | (5.5%) | 99.6% |
| Dedicated | $242.7 million | $313.2 million | $(70.5 million) | (22.5%) | 92.2% |
| Intermodal | $45.5 million | $73.0 million | $(27.5 million) | (37.6%) | 105.3% |
| Brokerage | $112.5 million | $125.0 million | $(12.5 million) | (10.0%) | 92.5% |
Operational Insights
Marten Transport's operational strategy focuses on enhancing efficiency and reducing costs. The company has implemented various initiatives to manage fuel expenses and improve fleet performance, including the installation of auxiliary power units in tractors. Despite these efforts, operating expenses as a percentage of revenue increased, reflecting the challenges in the current market environment.
Future Outlook
Looking ahead, Marten Transport plans to continue investing in technology and fleet modernization while maintaining a commitment to sustainability. The company anticipates capital expenditures of approximately $43 million for the remainder of 2024, primarily for new revenue equipment.
| Future Capital Expenditures | Amount |
|---|---|
| Estimated Capital Expenditures (2024) | $43 million |
| Commitments for New Equipment (2025) | $73.6 million |
As the company navigates a challenging freight environment, its focus will remain on operational efficiency, customer satisfaction, and sustainable growth strategies. Marten Transport's mission and operational goals align with its commitment to delivering quality service while adapting to market changes.
How Marten Transport, Ltd. (MRTN) Works
Business Overview
Marten Transport, Ltd. operates as a multifaceted transportation company, primarily engaged in providing truckload, dedicated, intermodal, and brokerage services. The company caters to time-sensitive, temperature-sensitive, and dry freight, primarily across the United States, Canada, and Mexico.
Financial Performance
In the fiscal year 2024, Marten Transport reported substantial changes in its financial metrics compared to 2023. Key financial figures include:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Revenue | $733.3 million | $863.2 million | $(129.9 million) | (15.1%) |
| Net Income | $3.8 million | $13.6 million | $(9.8 million) | (72.0%) |
| Earnings Per Share (Diluted) | $0.05 | $0.17 | $(0.12) | (70.6%) |
| Operating Ratio | 96.4% | 91.4% | 5.0% | 5.5% |
Segment Performance
The company operates through four main segments: Truckload, Dedicated, Intermodal, and Brokerage. Each segment's performance for the nine months ended September 30, 2024, is detailed below:
| Segment | Revenue (in $ thousands) | Operating Income (in $ thousands) | Operating Ratio (%) |
|---|---|---|---|
| Truckload | $332,498 | $1,462 | 99.6% |
| Dedicated | $242,747 | $18,964 | 92.2% |
| Intermodal | $45,545 | $(2,420) | 105.3% |
| Brokerage | $112,486 | $8,487 | 92.5% |
Operational Metrics
Marten Transport maintains a fleet that is essential for its operations. The operational metrics for the Truckload and Dedicated segments are as follows:
| Metric | Truckload (2024) | Dedicated (2024) |
|---|---|---|
| Average Revenue per Tractor per Week | $4,090 | $3,744 |
| Average Tractors | 1,776 | 1,379 |
| Total Miles (in thousands) | 119,838 | 83,882 | Average Miles per Trip | 533 | 321 |
Cost Structure and Expenses
The significant cost components impacting Marten Transport's financial performance in 2024 include:
| Expense Type | 2024 (in $ millions) | 2023 (in $ millions) | Change (%) |
|---|---|---|---|
| Salaries, Wages, and Benefits | $257.3 | $286.0 | (10.0%) |
| Purchased Transportation | $130.0 | $152.2 | (14.6%) |
| Fuel and Fuel Taxes | $115.3 | $138.8 | (17.1%) |
| Depreciation | $84.3 | $88.2 | (4.4%) |
| Insurance and Claims | $39.6 | $42.4 | (6.9%) |
Capital Expenditures
Marten Transport's capital expenditures for 2024 are projected at approximately $43 million, including commitments for new revenue equipment purchases. The breakdown is as follows:
| Capital Expenditure Type | Amount (in $ millions) |
|---|---|
| New Revenue Equipment | $36.2 |
| Regional Operating Facilities Upgrade | $3.9 |
| Other Investments | $2.9 |
Liquidity and Financial Position
As of September 30, 2024, Marten Transport reported:
| Metric | Amount (in $ millions) |
|---|---|
| Cash and Cash Equivalents | $43.0 |
| Stockholders' Equity | $766.5 |
| Long-term Debt | $0.0 |
Market Conditions
The operational profitability of Marten Transport has been affected by a softening freight market in 2024, leading to decreased revenues across all segments. The company continues to adapt its strategies to maintain operational efficiency despite these market challenges.
How Marten Transport, Ltd. (MRTN) Makes Money
Operating Segments Overview
Marten Transport operates through several key segments: Truckload, Dedicated, Intermodal, and Brokerage. Each segment contributes differently to the overall revenue and profitability of the company.
Revenue Breakdown by Segment
In 2024, Marten Transport reported a total operating revenue of $733.3 million, which reflects a decrease of 15.1% compared to $863.2 million in 2023. Below is a detailed breakdown of revenue by segment:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Truckload | $332,498 | $351,991 | $(19,493) | (5.5%) |
| Dedicated | $242,747 | $313,231 | $(70,484) | (22.5%) |
| Intermodal | $45,545 | $73,001 | $(27,456) | (37.6%) |
| Brokerage | $112,486 | $125,010 | $(12,524) | (10.0%) |
| Total | $733,276 | $863,233 | $(129,957) | (15.1%) |
Operating Income and Ratios
Operating income for Marten Transport in 2024 was $26.5 million, down 64.4% from $74.5 million in 2023. The consolidated operating ratio, which indicates the percentage of revenue consumed by operating expenses, was 96.4% in 2024 compared to 91.4% in 2023.
Cost Structure Analysis
The key components of operating expenses in 2024 included:
| Expense Type | 2024 Expense (in thousands) | 2023 Expense (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Salaries, Wages, and Benefits | $257,582 | $286,327 | $(28,745) | (10.0%) |
| Purchased Transportation | $129,278 | $151,442 | $(22,164) | (14.6%) |
| Fuel and Fuel Taxes | $113,285 | $136,840 | $(23,555) | (17.1%) |
| Depreciation | $84,125 | $87,974 | $(3,849) | (4.4%) |
| Total Operating Expenses | $706,382 | $789,559 | $(83,177) | (10.4%) |
Net Income and Earnings Per Share
Net income for the company in 2024 was $21.3 million, a decrease of 63.3% from $58.0 million in 2023. This translates to earnings per diluted share of $0.26 in 2024 compared to $0.71 in the previous year.
Capital Expenditures and Financial Position
Marten Transport's capital expenditures for the remainder of 2024 are estimated to be approximately $43 million. As of September 30, 2024, the company reported $43.0 million in cash and cash equivalents and $766.5 million in stockholders’ equity, with no long-term debt outstanding.
Cash Flow from Operations
For the first nine months of 2024, net cash flows provided by operating activities totaled $111.0 million, primarily allocated towards purchasing new revenue equipment and paying cash dividends.
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $111,021 | $126,333 |
| Net Cash Used for Investing Activities | $(107,247) | $(124,470) |
| Net Cash Used for Financing Activities | $(13,997) | $(14,396) |
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Updated on 16 Nov 2024
Resources:
- Marten Transport, Ltd. (MRTN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marten Transport, Ltd. (MRTN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marten Transport, Ltd. (MRTN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.