Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Morgan Keegan 2006 Equity Conference
21 slides from Marten Transport's conference presentation, Sep 6, 2006
Slide 1: Morgan Keegan 2006 Equity Conference
M A R T E N T R A N S P O R T , L T D . Morgan Keegan 2006 Equity Conference SEPTEMBER 7, 2006 | Memphis, Tennessee
Slide 2: Disclosure
Today’s 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. Th
Slide 3: Company Overview
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 in ‘03 Stock split in D
Slide 4: History of Success: Operating Revenue since 1996
Operating Revenue since 1996 Figures in millions History of Success 12.2% CAGR * * All organic 3 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 5: Temperature-controlled focus
Temperature-controlled focus Majority of freight is temperature sensitive More than 79% requires a temperature controlled environment Freight Mix 4 66% 10% 13% 9% 2% Food Stuff Beverages Consumer Products Pharmaceuticals/Chemicals Other
Slide 6: Longstanding relationships with top accounts
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 seven of our top 10 accounts Business with our top accounts is gr
Slide 7: Blue-chip base
Blue-chip base Partner with successful companies Reputable businesses with solid track records Customers 6
Slide 8: Managing for mandated '07 EPA standards
Managing for mandated ’07 EPA standards Began acceleration of tractor fleet replacement in ‘04 Took delivery of 932 tractors in ’05 and 409 tractors in the first eight months of ’06 Will take delivery of tractors with ’06 manufactured engines during the remainder of ’06 and into ’07 Have the ability
Slide 9: Late-Model Revenue Equipment
Late-Model Revenue Equipment Equipment 1.30 1.38 1.31 1.48 Ratio of Trailers-Tractors 3.85 3.27 2.85 2.31 Avg. Age of Trailers 2,835 3,152 3,438 3,708 Total Trailers 1.90 1.39 1.20 1.36 Avg. Age of Tractors 2,181 2,283 2,618 2,501 Total Tractors 2003 2004 2005 2006 Description As of June 30 As of De
Slide 10: Capital Expenditures Year-to-Year Comparison
Recent Year-to-Year Comparison Figures in millions Capital Expenditures $39.4 2003 $28.8 2002 $76.4 2004 $88.5 2005 $70.0* 2006 (estimated) Amount Year * This estimate may be impacted by the timing of tractor and trailer deliveries between ’06 and ‘07 9
Slide 11: Sources for Growth in 2007
S O U R C E S F O R GROWTH in 2007 10
Slide 12: MW Logistics
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 $21 million of revenue with Marten in ’05 Generated $8.1 million of revenue with Marten in first six months of ’06 Third-party p
Slide 13: MW Logistics Yearly Revenue Comparison
Yearly Revenue Comparison In millions MW Logistics 12 $0 $5 $10 $15 $20 $25 $30 $35 $40 2002 2003 2005 < font size="1" color="white" style="color:white;font-size:1.0pt;">2004
Slide 14: New Services - Brokerage
Providing new revenue opportunities Initiated services in April ‘05 $1.4 million in total revenue in ’05 $1.9 million in total revenue in first six months of ’06 Established new relationships with 380 small carriers Bridging gaps with existing customers Being offered new types of load opportunities
Slide 15: New Services - Intermodal
Outstanding growth potential Initiated services in October of ‘05 Working on establishing lanes and customer accounts Realizing increased “new” business from existing customers $380,000 in total revenue in fourth quarter of ’05 $4.6 million in total revenue in first six months of ‘06 Currently addin
Slide 16: Drivers: Major focus on retaining & recruiting
Major focus on retaining & recruiting Seeking drivers who are qualified and safety conscious Q3 ’06 initiatives Enhanced structure used to manage drivers’ mileage, home time and equipment maintenance Improved processing time for driver payroll and new applicants Improved driver turnover (which has c
Slide 17: Recent Recognition
Forbes Magazine Top 200 Small Businesses in U.S. October 2005 issue Noted as “solid financial performance, well-run, up and comer” TCA Grand Prize for Safety Awarded distinction twice in past five years Presented Georgia and Wisconsin motor carriers top safety award for ‘05 Named “Best Place to Work
Slide 18: Operations: Q2 '06 vs Q2 '05
Operations (-) 1.1% 937 927 Avg. miles per trip (-) 5.7% 5.3 5.0 Tractors to non-driver personnel (as of June 30) (-) 2.3% 29,072 28,407 Avg. miles per tractor 6.3% $1.385 $1.472 Avg. freight revenue per total mile 3.8% $3,097 $3,216 Avg. freight revenue per tractor / wk Change Q2 ’05 Q2 ‘06 Descrip
Slide 19: Financial Highlights
Financial Highlights Comparison of Q2 ‘06 to Q2 ‘05 9.7% $ 0.31 $ 0.34 Diluted EPS 11.5% $ 6.8 $ 7.5 Net income (in millions) 2.2% $ 11.6 $ 11.8 Operating income (in millions) 16.9% $112.8 $131.9 Operating revenue (in millions) Change Q2 ‘05 Q2 ‘06 Description 18
Slide 20: Sustained Profitability
Sustained Profitability Year-over-year net income improvement 11.5% 2006 Q2 4.9% 2006 Q1 102.8% 2003 Q1 24.5% 2003 Q2 84.3% 2003 Q3 499.7% 2003 Q4 95.6% 2004 Q1 39.2% 2004 Q3 36.1% 2004 Q2 49.9% 2004 Q4 76.2% 40.5% 33.2% 42.9% Net Income Increase 2005 Q1 2005 Q2 2005 Q3 2005 Q4 Year Quarter 19
Slide 21: Marten Transport, Ltd.
M A R T E N T R A N S P O R T , L T D .
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