Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Q3 2024 Earnings Presentation
22 slides from Marten Transport's earnings presentation, October 2024
Slide 1: Marten Transport, Ltd. Q3 2024
MARTEN TRANSPORT, LTD. S IN CE 1 9 4 6 Q 3 2 0 2 4
Slide 2: Marten Transport
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 IN
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 Operating results in 2023 and Q3 YTD ’24 were significantly impacted by the severe freight market recession 2018 2022 Cumulative Earnings Pressure Set the then-current record for highest annual - Oversupply & weak demand operating revenue and operating income - Inflationary opera
Slide 5: Significant Decrease in Our Freight Rates and Revenue per Tractor
5 SIGNIFICANT DECREASE IN OUR FREIGHT RATES AND REVENUE PER TRACTOR Truckload Rate per Total Mile, Utilization & RPTM Utilization Revenue per Tractor • Our freight rates and revenue per tractor significantly Rev/Tractor $2.80 23,500 $4,800 decreased since the beginning of ’23 - at a time with $2.70
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 (46% of revenue) Regional temp, dry, and OTR operating from 15 r
Slide 7: Marten's Dedicated Growth
7 MARTEN’S DEDICATED GROWTH Our dedicated operations with our stable freight base minimize the impact of the freight market recession We are seeing increased interest by our customers to secure dedicated capacity. The recent addition of new multi- year dedicated programs for an additional 133 driver
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 133 customers at Sept. 30, 2024 Brokerage Operating Revenue Brokerage Operating Income In millions In tho
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 $2,600 (excluding fuel surcharges) In thousands $2,100 $1,600 $1,100 $600 Minimizing the impact of the freight market recession • $79.2 million operating revenue for 2023 vs. $81.5 million $100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: Investing for Future Growth and Safety
11 INVESTING FOR FUTURE GROWTH AND SAFETY 17% Cost of tractors up 17% in Q3 YTD ‘24 over 2021 INVESTMENTS ❑ Added Equipment Safety ❑ ❑ Collision Avoidance System Blind Spot Detection System 30% Cost of refrigerated trailers up 30% in Q3 YTD ’24 ❑ Lane Departure System over 2021 Net Capital Expenditu
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 Keeps fleet compliant with state and f
Slide 14: Marten's Operating Revenue
14 MARTEN’S OPERATING REVENUE Operating Revenue (excluding fuel surcharge) 12 th 2022 12th straight year of highest operating $1,100 In millions 23% (8)% $1,000 revenue (excluding fuel surcharges) $900 8% 7% $800 223 Customer diversity increased by 223 shipper $700 $600 8% 4% 2% 8% 9% 3% 3% codes an
Slide 15: Marten's Operating Income
15 MARTEN’S OPERATING INCOME 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 22% $100 (37)% $90 9% $80 24% $70 20% (5)% (2)% $60 13% (2)% 7% $50 22% $40 20% $30 $20 (58)% (65
Slide 16: Marten's Operating Ratio
16 MARTEN’S OPERATING RATIO Net of Fuel S/C Operating Ratio 98% 97% Net of Fuel S/C 97.9% 2020-2022 96% 95.3% 95% 94.3% 94% 93% 93.5% 92.0% 92.8% In each of 2020 through 92% 91.2% 91.1% 90.7% 90.6% 91.0% 90.7% 91% 90% 90.2% 89.7% 89.7% 89.7% 88.6% 2022 we achieved our 88.7% 89% 88.2% 88% 87% 87.0% 8
Slide 17: Marten's Earnings per Diluted Share and Dividend
17 (1) MARTEN’S EARNINGS PER DILUTED SHARE $1.40 31% $1.30 $1.20 $1.10 23% $1.00 (36)% $0.90 13% $0.80 62%(2) 11% $0.70 $0.60 $0.50 20% (3)% -%(2) $0.40 10% (2)% 23%12% $0.30 21% $0.20 (57)% (64)% (72)% $0.10 $0.00 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Q1 Q1 Q2 Q2 Q3 Q3 '23 '24
Slide 18: Commitment to Excellence
18 COMMITMENT TO US COLD NATIONAL CARRIER OF THE YEAR 2023 EXCELLENCE ABBOTT NUTRITION CARRIER OF THE YEAR 2023 EXCELLENCE isn't just a goal; it's a AMERICAN TRUCKING ASSOCIATION GREAT WEST SAFETY AWARD 2023 standard NESTLE RESPONSIBLE SOURCING STANDARD COMPLIANCE 2023 ON-TIME SERVICE TO DELIVERY CH
Slide 19: Marten People and Culture
19 MARTEN PEOPLE AND CULTURE ” Financially Stable & Debt Free North American Network If you can’t measure it, you can’t manage it. – Peter Drucker Invested in our People Disciplined, Data-Driven Culture Great things in business are never done by one person. They’re done by a team of people. – Steve
Slide 20: Organic Operating Results
20 ORGANIC OPERATING RESULTS Each of our business platforms is positioned to capitalize on growth opportunities as the market moves out of the freight market recession Pre-Recession Operating Results 2018-2022: Set the then-current record for highest annual “ operating revenue and operating income Q
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!