Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Q4 2024 Earnings Presentation
22 slides from Marten Transport's earnings presentation, January 2025
Slide 1: Marten Transport, Ltd. Q4 2024
MARTEN TRANSPORT, LTD. S IN CE 1 9 4 6 Q 4 2 0 2 4
Slide 2: Marten Transport: International Transportation Leader Since 1946
2 MARTEN TRANSPORT INTERNATIONAL TRANSPORTATION LEADER SINCE 1946 Marten Transport is a multifaceted business offering a network of refrigerated and dry truck-based transportation capabilities across the company’s five distinct business platforms TRUCKLOAD DEDICATED TRUCKLOAD DEDICATED BROKERAGE INT
Slide 3: Our Mission
3 OUR MISSION At Marten Transport, our mission is to be an international leader in transportation and logistics. Through the development of our people, innovation, and commitment to excellence, we will exceed our customers' expectations and provide superior returns to our shareholders. We are commit
Slide 4: Operating Results
4 OPERATING RESULTS 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 inflationa
Slide 5: Truckload and Dedicated Revenue per Tractor, Rate per Mile and Utilization Increased
5 OUR TRUCKLOAD AND DEDICATED REVENUE PER TRACTOR, RATE PER TOTAL MILE AND UTILIZATION INCREASED FROM Q3 ’24 TO Q4 ’24 Truckload Rate per Total Mile, Utilization & RPTM Utilization Revenue per Tractor Rev/Tractor $2.80 23,500 $4,800 • Our freight rates and revenue per tractor significantly decreased
Slide 6: The Foundation of Marten's Growing Business
6 THE FOUNDATION OF MARTEN’S GROWING BUSINESS Each of our business platforms is young and positioned to capitalize on growth opportunities as the market moves out of the freight market recession REGIONAL IN STRUCTURE Truckload Business (47% of revenue) Regional temp, dry, and OTR operating from 15 r
Slide 7: Marten's Dedicated Growth
7 MARTEN’S DEDICATED GROWTH Our dedicated operation with our stable freight base minimizes the impact of the freight market recession Dedicated Operating Revenue (excluding fuel surcharges) Dedicated Operating Income In millions In thousands $350 22% (1)% $16,000 $325 600% 364% 49% $14,000 $300 21%
Slide 8: Marten's Brokerage Growth
8 MARTEN’S BROKERAGE GROWTH To protect our future brokerage growth, we have diversified our freight base from 90 customers at the start of 2022 to an average of 140 customers throughout 2023 and 128 customers throughout 2024 Brokerage Operating Revenue Brokerage Operating Income In millions In thous
Slide 9: Shift in Brokerage Loads
9 SHIFT IN BROKERAGE LOADS Since 2022 we have focused on increasing our volume of non-dedicated and dry customer brokerage loads to minimize the impact in 2023 and 2024 of a number of our dedicated customers shifting brokerage loads due to the freight market recession
Slide 10: MRTN de Mexico Growth
10 MRTN de MEXICO MRTN de Mexico Dry TL and Brokerage Operating Revenue GROWTH $3,100 (excluding fuel surcharges) In thousands $2,600 $2,100 $1,600 $1,100 $600 Minimizing the impact of the freight market recession • $62.9 million operating revenue for 2024 vs. $79.2 million in $100 2023 (excluding f
Slide 11: Investing for Future Growth and Safety
11 INVESTING FOR FUTURE GROWTH AND SAFETY 17% Cost of tractors up 17% in 2024 over 2021 INVESTMENTS ❑ Added Equipment Safety ❑ ❑ Collision Avoidance System Blind Spot Detection System 30% Cost of refrigerated trailers up 30% in 2024 over ❑ Lane Departure System 2021 Net Capital Expenditures ❑ Platfo
Slide 12: Marten's Solar Advantage
12 MARTEN’S SOLAR ADVANTAGE Nationwide Terminal and Office Installments at Each of Our Facilities + 3 million kWh of generation and offset each year = 2,125 metric tons* of CO2 offset each year 400 Homes* = This kWh is equivalent to enough energy to power over 400 homes with electricity for each yea
Slide 13: Recent Technology Enhancements
13 RECENT TECHNOLOGY ENHANCEMENTS PLATFORM SCIENCE SmartDrive telematics + fleet management Video based safety system ✓ All Fleet Apps in ONE Place On ONE Device ✓ SAFETY: Forward-facing camera technology Safer for driver focused on driver behavior ✓ Compliance Assists in compliance with state and f
Slide 14: Marten's Operating Revenue
14 MARTEN’S OPERATING REVENUE Operating Revenue (excluding fuel surcharge) 12 th $1,100 2022 12th straight year of highest operating $1,000 In millions 23% (8)% revenue (excluding fuel surcharges) $900 8% (14)% 7% $800 223 Customer diversity increased by 223 shipper $700 $600 8% 4% 2% 8% 9% 3% codes
Slide 15: Marten's Operating Income
15 MARTEN’S OPERATING INCOME Our operating income improved 58% from Q3 ’24 to Q4 ’24 In each of the five years from 2018 through 2018-2022 2022 we had the then-best operating income in our history Operating Income In millions $150 28% $140 $130 $120 20% $110 $100 22% (37)% $90 9% $80 24% $70 20% (5)
Slide 16: Marten's Operating Ratio Net of Fuel S/C
16 MARTEN’S OPERATING RATIO Net of Fuel S/C Our ratio improved from Q3 ’24 to Q4 ’24 Operating Ratio 98% Net of Fuel S/C 97.9% 2020-2022 96.7% 97% 96.0% 96% 95% 94.3% 95.3% In each of 2020 through 94% 93.5% 92.8% 93.2% 93% 92% 92.0% 2022 we achieved our 91.2% 91.1% 90.7% 90.6% 91.0% 90.7% 91% 89.7%
Slide 17: Marten's Earnings per Diluted Share and Dividend
17 MARTEN’S EARNINGS PER DILUTED SHARE (1) Our EPS improved 50% from Q3 ’24 to Q4 ’24 $1.40 31% $1.30 $1.20 $1.10 23% $1.00 (36)% $0.90 13% 11% $0.80 62%(2) $0.70 $0.60 $0.50 10% 20% (3)% -%(2) $0.40 (2)% 23% 12% (62)% $0.30 21% $0.20 (57)% (64)% (72)% (55)% $0.10 $0.00 '09 '10 '11 '12 '13 '14 '15 '
Slide 18: Commitment to Excellence
18 COMMITMENT TO CHEMOURS NORTH AMERICAN PLATINUM/GOLD CARRIER OF THE YEAR 2020-2023 EXCELLENCE ABBOTT NUTRITION CARRIER OF THE YEAR 2023 AMERICAN TRUCKING ASSOCIATION GREAT WEST SAFETY AWARD 2023 EXCELLENCE isn't just a goal; it's a standard NESTLE RESPONSIBLE SOURCING STANDARD COMPLIANCE 2023 US C
Slide 19: Marten People and Culture as We Approach Our 80th Year
19 MARTEN PEOPLE AND CULTURE AS WE APPROACH OUR 80TH YEAR ” Financially Stable & Debt Free North American Network If you can’t measure it, you can’t manage it. – Peter Drucker Invested in our People Great things in business are never done by one person. Disciplined, Data-Driven Culture They’re done
Slide 20: Organic Operating Results
20 ORGANIC OPERATING RESULTS 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 i
Slide 21: Embracing a Positive Outlook in Challenging Times
21 EMBRACING A POSITIVE OUTLOOK IN CHALLENGING TIMES We are seeing Increased Interest By Our Customers To Secure Dedicated Capacity MRTN de Mexico is poised for a bright future, with Mexico Being The Top Exporter To The US The future is promising for our Dry Van division, as there are approximately
Slide 22: Thank You
THANK YOU MARTEN Expect the Best!