Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Morgan Keegan 2007 Equity Conference
22 slides from Marten Transport's conference presentation, Sep 5, 2007
Slide 1: Marten Transport, Ltd. Morgan Keegan 2007 Equity Conference
MARTEN TRANSPORT, LTD . The Morgan Keegan 2007 Equity Conference September 6, 2007 | Memphis, Tennessee
Slide 2: Disclosure
1This presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking statements. Thes
Slide 3: Company Overview
2 Company Overview 2 Started in 1946 by Roger Marten at the age of 17 Hauled dairy products around Western Wisconsin Eventually expanded to upper Midwest – nationwide and Canada Focus switched to time- and temperature-sensitive freight Went public in 1986 Follow on offering in ’03 Two stock splits i
Slide 4: Operating Revenue since 1997: History of Success
3 Operating Revenue since 1997 Figures in millions History of Success 11.6% CAGR * * All organic 3 $0 $100 $200 $300 $400 $500 $600 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 5: Freight Mix
4 Freight Mix 4 71% 8% 11% 9% 1% Food Stuff Beverages Consumer Products Pharmaceuticals/Chemicals Other Temperature-controlled focus Majority of freight is temperature sensitive Approximately 80% requires a temperature-controlled environment
Slide 6: Customers: Longstanding relationships with top accounts
5 Customers 5 Longstanding relationships with top accounts Our top 10 customers have 10-plus years with us High-volume customers are growing / consolidating General Mills Kraft Anheuser Busch Largest or 2nd largest temperature-sensitive carrier for six of our top 10 accounts
Slide 7: Customers: Blue-chip base
6 Customers 6 Blue-chip base Partner with successful companies Reputable businesses with solid track records
Slide 8: Food Manufacturer's Variance in Total Weekly Shipments
7 Food Manufacturer’s Variance in Total Weekly Shipments from 2006 Annual Average Week Weekly Loads 7 (6,000) (5,000) (4,000) (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 2006 2007
Slide 9: Equipment
8 Equipment 8 Managed for mandated ’07 EPA standards Began acceleration of tractor fleet replacement in ’04 Took delivery of tractors with ’06 manufactured engines through March of ’07 Expect significantly lower capital expenditures and the ability to retire a substantial amount of debt in ’07 Have
Slide 10: Late-Model Revenue Equipment
9 Late-Model Revenue Equipment Equipment 9 Ratio of Trailers-Tractors Total Trailers Avg. Age of Tractors Description 2006 2005 2004 2003 Total Tractors Avg. Age of Trailers As of Dec. 31 As of Dec. 31 As of Dec. 31 As of Dec. 31 2007 2,552 1.74 3,934 2.31 1.54 As of June 30 1.30 1.38 1.31 1.45 3.85
Slide 11: Investment in Auxiliary Power Units
10 Investment in Auxiliary Power Units Auxiliary Power Units (APU’s) provide drivers with quiet heat, air conditioning, accessory power and battery charging Reduces fuel consumption approximately 80% compared with tractor engine idling – with savings to $400/tractor/month in fuel expense (at a cost
Slide 12: Recent Year-to-Year Comparison: Capital Expenditures
11 Recent Year-to-Year Comparison Figures in millions Capital Expenditures Year Amount 2007 (estimated) $57.0 2006 $97.3 2005 $88.5 2004 $76.4 2003 $39.4 2002 $28.8 11
Slide 13: Growth
ry SOWINCIES [POR GROWTH
Slide 14: MW Logistics
13 MW Logistics 13 Marten affiliation MW Logistics, LLC began operations in Q2 of ’01 Marten invested in company as it launched Marten owns a 45% stake MW Logistics also a customer More than $16 million in revenue with Marten in ’06 Generated $7.0 million in revenue with Marten in first six months o
Slide 15: Yearly Revenue Comparison: MW Logistics
14 Yearly Revenue Comparison In millions MW Logistics 14 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 2002 2003 2004 2005 2006
Slide 16: New Services - Brokerage
15 New Services - Brokerage 15 Providing new revenue opportunities Initiated services in April ’05 $1.4 million in total revenue in ’05 $5.0 million in total revenue in ’06 $4.8 million in total revenue in first six months of ’07 Have utilized the services of more than 1,000 small carriers Bridging
Slide 17: New Services - Intermodal
16 New Services - Intermodal 16 Outstanding growth potential Initiated services in October of ’05 Realizing increased “new” business from existing customers $380,000 in total revenue in fourth quarter of ’05 $12.6 million in total revenue in ’06 $9.0 million in total revenue in first six months of ’
Slide 18: Drivers
17 Drivers 17 Major focus on retaining & recruiting Seeking drivers who are qualified and safety conscious Driver initiatives Enhanced structure used to manage drivers’ mileage, home time and equipment maintenance Improved processing time for driver payroll and new applicants Million Mile Club 389 d
Slide 19: Recent Recognition
18 Recent Recognition 18 Forbes Magazine Top 200 Small Businesses in U.S. Ranked No. 141 in 2006 and No. 179 in 2005 Noted as “solid financial performance, well-run, up and comer” TCA Grand Prize for Safety Awarded distinction twice in past five years Presented Georgia & Wisconsin motor carriers top
Slide 20: Comparison of First Six Months of '07 to '06 Operations
19 Comparison of First Six Months of ’07 to First Six Months of ’06 Operations Operations Description First Six Months of ’07 First Six Months of ’06 Change Avg. truckload revenue, net of fuel surcharges, per tractor / wk $3,083 $3,085 (-) 0.1% Avg. truckload revenue, net of fuel surcharges, per tot
Slide 21: Comparison of First Six Months of '07 to '06 Operating Results
20 Comparison of First Six Months of ’07 to First Six Months of ’06 Operating Results Financial Highlights Description First Six Months of ’07 First Six Months of ’06 Change Operating revenue (in millions) $270.2 $251.4 7.5% Operating income (in millions) $ 16.4 $ 20.8 (-) 21.0% Net income (in milli
Slide 22: Financial Highlights
21 Financial Highlights (In thousands) June 30, 2007 Dec. 31, 2006 Assets: $82,975 $76,510 329,101 329,888 3,185 $415,261 $410,822 Liabilities and Stockholders’ Equity: $43,242 $54,422 62,823 58,659 183,486 188,916 1,052 913 $415,261 $410,822 Debt-to-Capitalization Ratio 21.4% 21.0% 21 Total Liabili
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