Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Investor Presentation (May 2015)
26 slides from Marten Transport's investor presentation, May 15, 2015
Slide 1: Marten Transport, Ltd.
Slide 2: Disclosure
Disclosure This presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words suchas “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking stateme
Slide 3: Marten's Culture
fara Marten’s Culture People Focused on Today’s Accelerated Business Environment “Managers may believe that industry structures are ordained by the Good Lord, but they can - and often do- change overnight.” “The Discipline of Innovation” Harvard Business Review May-June 1985 By Peter F. Drucker “Per
Slide 4: Marten's Strategic Vision
waie= jj Marten’s Strategic Vision arpa Multifaceted Transportation Service Solutions ¢ Truckload Business Platform — regional and OTR operating from 14 regional service centers * Dedicated Business Platform - customized solutions tailored to individual customers’ requirements utilizing refrigerated
Slide 5: Diverse, Dense and Efficient Freight Network
seem Diverse, Denseand Efficient ssn) =e Freight Network [a - Top five accounts — 26% of revenue in Q1’15 vs. 43% in 2009 -No current account more than 11% of revenueinQ1’715 — Wal-Mart increased primarily with additional dedicated freight - the percentage of other larger accounts (with none more th
Slide 6: Diverse, Dense and Efficient Freight Network
Diverse, Dense and Efficient Freight Network % of Revenue Ww 8 | . | } l J 2x. = = = = =. SS. Ue 2009 2010 2011 2012 2013 2014 QI'I5 ma Top 5 Customers' % of Revenue —=Rev/Tractor/Wk $3,600 $3,400 ~ $3,200 $3,000 $2,800 $2,600 Revenue per Tractor per Week Revenue per tractor has increased 27% from 2
Slide 7: 2014 2013 2011 2009 2007
2014 2013 2011 2009 2007
Slide 8: Truckload and Dedicated Tractors Organic Growth
hm Truckload and Dedicated Tractors smu) Organic Growth 2,340 2,320 2,300 2,280 2,260 2,240 2,220 2,200 2,180 f 2,160 2,140 || || Dec 31,'13 Mar 31,'14 June 30,'14 Sept 30,'14 Dec 31,'14 Mar 31,'15 The organic growth of 164 tractors, or 7.6%, since Dec. 31,’13 isa direct result of our continuing eff
Slide 9: Regional Operating Centers Growth
Regional Operating Centers Growth arpa THE FOUNDATION of Marten’s service and growth Our operating centers expanded and were paid for in challenging times Desoto, Laredo, TX (J 2007 Terminal Locations Terminal Locations Added- Only empa, FL Carlisle, Otay Mesa and McAllen are leased McAllen, TX
Slide 10: Regional Truckload and Dedicated Operations Growth
Regional Truckload and Dedicated marres| Operations Growth : 2,500 2,000 a i 456 227 g 1500 = 100 o © 1,000 = Ko) — 67 aan 1,462 1,473 # 500 aa 4,392 Se: 0 im— 110 Dec '07 Dec ‘0! lec 11 Dec '13 Dec '14 Mar '15 & Regional 5 Dedicated + Increased number of dedicated accounts from 2 at Dec’11 to 13 at
Slide 11: Mexico Growth
hm Mexico Growth Door-to-door cost saving solutions Expanded into Western Mexico with Otay Mesa facility in Sept 713 Moved into new, larger company-owned Laredo facility in Dec ’13 Opened additional entry facility in McAllen, TX in April ’15 Revenue Growth $30 249 $15 84% $10 a 33 2009 2010 2011 201
Slide 12: Brokerage Growth
Initiated in 2005 to provide surge capability for our customers Revenue Growth leediGrenih (including fuel surcharge 35,000 5 8% me (1% 30,000 mT = 16% 20,000 oe 41% 10,000 5,000 $10 | | 0 $0 2009 2010 2011 2012 2013 2014 Qi4 QIs 2009 2010 2011 2012 2013 2014 Q1'14 QU15, i 8 8 Decentralization of br
Slide 13: TOFC Intermodal Growth
= TOFCIntermodalGrowth “4 Initiated temperature—controlled TOFC in 705 We are the largest truckload intermodal temperature—controlled carrier with BNSF Expanded intermodal growth with longer drayage supported by our regional business platform Yearly Revenue Growth “eget heir (eee fuel surcharge) 32,
Slide 14: Recognition for Efficiency, Innovation and Integrity
Recognition for Efficiency, Innovation surf + and Integrity “i Forbes’ Top 100 Most Trustworthy Companies - named 4 times in the last 6 years surveyed > Recognized U.S. exchange-listed companies displaying the highest corporate integrity, clear financial reporting and transparent corporate governanc
Slide 15: Net Capital Expenditures
Net Capital Expenditures arpa In millions $160 $140 eee $120 $118.6 $100 $80 $81.2 pel $72.8 $60 [ $40 $20 $0 2010 2011 2012 2013 2014 2015 Estimate The 2015 estimate has increased due to an additional 265 dedicated tractors contracted in May’15
Slide 16: Increasing Revenue Equipment Costs
hon Increasing Revenue Equipment gappy/ Costs Average Monthly Depreciation Tractors Trailers $1,500 31.462 sia71| $400 esse ee $1,413 $390 $382 1,400 $380 aa $1,350 ae $370 56s $1,300 $1,266 $360 } = = $1,250 $350 $1,200 — a a $340 $1,150 ao $330 $1,100 oe a $320 $1,050 '—_f $310 $1,000 $300 Dec'lO
Slide 17: Increasing Driver Pay
Increasing Driver Pay arpa Annual driver pay increases not sacrificed for continuous margin improvement $0.54 $0.52 $0.50 $0.48 $0.46 $0.44 $0.42 | $0.40 4 a 5 Q4'09 Q410 Q4111 Q412 Q413 Q414 Q115 Cents per Mile - Builta driver pay package unique to the electronic log era - Industry leader to compen
Slide 18: Operating Statistics Comparison
4 ieee Operating Statistics Comparison marr sroer i. QI’15 vs. | 2014 vs. | 2014 vs. Truckload and Dedicated: Qr14 2013 2009 Average revenue, net of fuel 2.1% 3.1% 26.6% surcharges, per tractor per week Miles per tractor (1.3)% (0.3)% 6.1% Loads 7.8% 1.0% 274% Loads per tractor per week 0.6% 0.6% 35
Slide 19: Revenue per Tractor Growth
Revenue per Tractor Growth Average Revenue, Net of Fuel Surcharges, per Tractor per Week $3,750 3.1% 2.1% $3,500 SHO 5.6% $3,250 65% $3,000 5.2% $2,750 [| | $2,500 2009 2010 2011 2012 2013 2014 Qa aris Revenue per tractor has increased 27% from 2009 to 2014 with Q1’15 being our 20™ consecutive quart
Slide 20: Financial Highlights
Financial Highlights qQi’15 qQi’14 2014 2013 2012 2011 2010 2009 Operating revenue $161.3 | $159.4 | $672.9 | $659.2 | $638.5 | $603.7 | $516.9 | $505.9} INet income $10.2 $5.3 $29.8 $30.1 _| $27.3 | $24.3 | $19.7 | $16.3 Diluted EPS $0.30 $0.16 $0.89 $0.90 | $0.82 | $0.73 | $0.60 | $0.49 Diluted EP
Slide 21: Marten People Drive Our Freight and Cost Efficiencies and Profitable Growth
Marten People Drive Our Freight and mara, 4 Cost Efficiencies and Profitable Growth ve People Initiate and Implement Our Strategic Vision and Key Strategic Initiatives “The more they know, the more they'll understand. The more they understand, the more they'll care. Once they care, there’s no stoppi
Slide 22: Marten People Drive Our Freight and Cost Efficiencies and Profitable Growth
- Marten People Drive Our Freight and gapnyfy 4 lee Cost Efficiencies and Profitable Growth ve + Sustainable Cost and Productivity Improvements Driven by our People and Ongoing Development of our Systems and Processes Continuous Revenue per Tractor Growth Continuous Tractor and Trailer Miles Utiliza
Slide 23: Continued Improvement Despite Challenging Industry Headwinds
= Continued Improvement Despite Challenging Industry Headwinds Operating Ratio, Net of Fuel Surcharge 94% 93.5% 93.2% 93% 92.0% 92% 91.2% 91.1% 91% 90.7% 90.2% 920% 89% Bao B79] _ | 2009 2010 2011 2012 2013 2014 Qi4 Qs *The ratio was 90.3% in Q1’15 excluding a gain on disposition of a facility
Slide 24: Continued Improvement Despite Challenging Industry Headwinds: Earnings
$1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Continued Improvement Despite Challenging Industry Headwinds Earnings - Cents Per Diluted Share 10% =(1)% 92%* 12% 22% 22% | ul 2009 2010 2011 2012 2013 2014 Qil4 Qi‘is *Diluted EPS increased 5 1% to $0.24 in Q1715 excluding a gain on disposition of a facility 150
Slide 25: EV/CY15 EBITDA Comparison
Stephens Inc. EV/CYI5 EBITDA aasre 4 wcisteem Comparison 9.0x 85x 85x 8.0x 75x 7.0x EV/CY 2015 EBITDA 6.5x 6.0x 5.5x MRTN WERN USAK col SWFT HTLD KNX 5.0x Source: Stephens Estimates and Company Filings Stephens Inc.
Slide 26: Marten's Culture | Marten's Vision
= Marten’s Culture | Marten’s Vision —_gaer/ Marten’s People —_ “Sufficient urgency around a strategically rational and emotionally exciting opportunity is the bedrock upon which all else is built.” “Accelerate!” Harvard Business Review November 2012 By John P. Kotter Konosuke Matsushita Professor o