Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Q3 2023 Earnings Presentation
16 slides from Marten Transport's earnings presentation, Oct 18, 2023
Slide 1: Q3 2023
Q3 2023
Slide 2: Disclosure
Disclosure in Reform Act of 1995. Words such as “expects,” “anticipates, ” “estimates,” or similar expressions are intended to identify these forward-looking statements. These statements are based on Marten’s current plans and expectations and involve risks and uncertainties that could cause future
Slide 3: Operating Results
Operating Results Each year since 2018 has had a very different market environment-with a freight recession in 2023 In each of the five years from 2018 through 2022, we set the then-current record for our highest annual operating revenue and operating income. We also achieved in each of 2020 through
Slide 4: The foundation of Marten's growing business platform
i. ‘THE FOUNDATION of Marten's growing business platform network designed for the best, most-efficient transportation service solutions for Marten's customers ‘Truckload - regional temp and dry and OTR operating from 15 regional service centers-~41% of revenue (65% temp/35% dry) Dedicated - customiz
Slide 5: Marten's Solar Advantage
Marten’s Solar Advantage Marten is a leader in the industry in energy cost management Tractor: Auxiliary Power Unit and Refrigerated Trailer Power Unit Integration Nationwide Terminal and Office Installstions Memphis Dalle redo rapa Valley Phoenix
Slide 6: Marten's Consistent Dedicated Growth
Marten’s Consistent Dedicated Growth ea We improved each of our dedicated operating revenue net of fuel s/c, operating income and operating ratio net of fuel s/c in Q3YTD '23 from Q3YTD '22 despite the weak market with our disciplined management of our stable freight base Dedicated Operating Revenue
Slide 7: Marten's Brokerage Growth
ea Marten’s Brokerage Growth To protect our future brokerage growth, we haven't moved loads from brokerage to our tractors as is common with many carriers Brokerage Operating Revenue In millions $220 W% ‘2017 2018 2019 2020 2021 2022 ili Pat ie a os 2 B aa @ @ w@ 2B 2 BD $7000 p $6000 | $s,000 $4000
Slide 8: Shift in Brokerage Loads
Shift in Brokerage Loads 4 Since '22 we have focused on increasing our volume of non-dedicated and dry auf, customer brokerage loads to minimize the impact in '23 of a number of our L dedicated customers shifting brokerage loads to their tractors due to the soft market ra “etal ead Count ‘Dedicated
Slide 9: MRTN de Mexico Growth
MRTN de Mexico Growth aaa meer ra =Results-driven performance -- operating revenue —Dry expansion with first loads in Feb., '22 and excluding fuel surcharges increased 36% from expected continued growth $60.1 million for ’21 to $81.5 million for '22 - lakTH do Mico‘ Bry Ti-and trokerege loads and in
Slide 10: Net Capital Expenditures
Net Capital Expenditures mara ab Increase in 2023 due to availability delays of 2022 purchases and price inflation = JL" 7g. In millions $240 $220 $200 $180 §160 $141.7 $1349 $140 123.7 Ps $106.3 5 $100 $80 $60 $40 $20 $0 4 2019 2020 2021 2022 2023 Estimate $200
Slide 11: Marten People, Model and Culture/Data-Driven
) Marten People, Model and Culture/Data-Driven aareuf, ai Measured/Disciplined Management -Marten people initiate and implement our strategic vision and key strategic initiatives Marten people developed and continuously update our proprietary information systems enabling real-time data-driven decisi
Slide 12: Operating Revenue Excluding Fuel Surcharges
size to minimize the impact of this year's market rate pressure Marten’s Operating Revenue Excluding Fuel Surcharges -2022 was the 12 stralght year with our highest operating revenue excluding fuel s/c We expanded our customer diversity by adding 192 shipper codes for 87 new customers while reducing
Slide 13: Marten's Operating Income
Marten’s Operating Income In each of the five years from 2018 through 2022 we had the then-best operating income in our history Jn millions $150 $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 28% 20% (5% (2)% 7% 13% (2)% BEEEEEEEEEEE ag. Ban. HET EHHAF A Vl 2009" 2010” 2011 2012, 2013
Slide 14: Marten's Operating Ratio, Net of Fuel S/C
Marten’s Operating Ratio, Net of Fuel S/C In each of 2020 through 2022 we achieved our then-best ratio for any year since we became a public company in 1986 94% + 935% y 93% 82.8%. ae 91.2% 94.4% 90.7% 91.0% | 91% +75 90.6% * Ld oo% ee 89.7% 89.7% 89.7% | 88.6% 88.7% 3% Th 4 xi tt inntn a o75% 87% 8
Slide 15: Marten's Earnings Per Diluted Share
Marten’s Earnings Per Diluted Share”) 2022 Improved 31% over 2021 $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 J—j,7 $0.20 $0.10 $0.00 31% 11% 12% iff 99 2010 2014 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1 Restated to reflect the three-for-two stock split o
Slide 16: Organic Operating Results
Organic Operating Results Nothing has changed since Chris Henry wrote this in Dec. 2018: “Quarter-over-quarter, year-over-year, Marten Transport (NASDAQ: MRTN) has delivered consistent, top quartile results. Key word is consistent. When compared to many of the others, you don’t see very many blips i