Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Q2 2023 Earnings Presentation
18 slides from Marten Transport's earnings presentation, July 2023
Slide 1: Q2 2023
Q2 2023 ns “4 *
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 such as “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are intended to identify these forward-looking statem
Slide 3: Q1 and Q2 Operating Revenue and Net Income Since 2020
Q1 and Q2 Operating Revenue and Net Income Since 2020 While the soft freight market demand, excess capacity and inflationary costs continue to put considerable pressure on industry pricing, volumes and margins, we recorded our second-highest second quarter operating revenue and net income in our his
Slide 4: Operating Results
Operating Results Each year since 2018 has had a very different market environment-with 2023 considerably softer 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 20
Slide 5: Expanding Regional Operating Centers Network
Expanding Regional Operating Centers Network 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 reven
Slide 6: Marten's Solar Advantage
Marten’s Solar Advantage Today’s freight market heightens the importance of cost management
Slide 7: Marten's Consistent Dedicated Growth
Marten’s Consistent Dedicated Growth We improved each of our dedicated operating revenue net of fuel s/c, operating income and operating ratio net of fuel s/c in 1H ’23 from 1H ’22 despite the soft market with our disciplined management of our defensive freight base Dedicated Operating Revenue (excl
Slide 8: Marten's Brokerage Growth
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 -We have been increasing our volume of non-dedicated customer brokerage loads to minimize the impact in ’23 of a number of our dedicated customers
Slide 9: Shift in Brokerage Loads
Shift in Brokerage Loads a Total Load Count Dedicated Load Count DP yO gd 92 > PP SLO PP Oe " oo ope LLLP LLEE EE EEE EEE EEE EE EEE EEE S e201 92022 82023 GP PP PP LD P&P 9 MO OP * x” PLL SS PLL LE Fe Total Loads Non Dedicated Dry Shipper Loads 7 MARZ SN reward . /\ ead! An. | \ PP gO PP ah ae a0 a
Slide 10: Growth in Dry Regional Truckload Operations Since the Pandemic Began
Growth in Dry Regional Truckload Operations Since the Pandemic Began -We built our regional service centers with the vision to expand into dry operations – a market 5X > temp -Operating out of our Kansas City, Phoenix, Atlanta and Tampa facilities -1H ’22 expansion of our dry operations into Mexico
Slide 11: MRTN de Mexico Growth
MRTN de Mexico Growth -Results-driven performance –- operating revenue excluding fuel surcharges has increased 36% from $60.1 million for ’21 to $81.5 million for ’22 – and 4% from $40.0 million for Q2YTD ’22 to $41.4 million for Q2YTD ’23 -Temperature growth history with more expansive growth in th
Slide 12: Net Capital Expenditures
Net Capital Expenditures In millions $240 $220 $205 $200 $180 $160 $141.7 $134.9 $140 $106.3 $123.7 $120 $100 $80 $60 $40 $20 $0 2019 2020 2021 2022 2023 Estimate
Slide 13: Marten People, Model and Culture/Data-Driven Measured/Disciplined Management
Marten People, Model and Culture/Data-Driven Measured/Disciplined Management COVID-19 Pandemic has required accelerated disciplined data management changes • Marten people initiate and implement our strategic vision and key strategic initiatives • Marten people developed and continuously update our
Slide 14: Record Improvement in Marten's Operating Revenue Excluding Fuel Surcharges
Record Improvement in Marten’s Operating Revenue Excluding Fuel Surcharges -2022 was the 12th straight year with our highest operating revenue excluding fuel s/c - We expanded our customer diversity by adding 126 shipper codes for 59 new customers while modestly pulling back our fleet size to minimi
Slide 15: Record Improvement in Marten's Operating Income
Record Improvement in Marten’s Operating Income -In each of the five years from 2018 through 2022 we had the then-best operating income in our history In millions $150 28% $140 $130 $120 20% $110 $100 22% $90 9% $80 24% $70 20% (5)% (2)% $60 7% 13% (2)% $50 22% 20% $40 (19)% (31)% $30 $20 $10 $0 200
Slide 16: Record Improvement in Marten's Operating Ratio, Net of Fuel S/C
Record Improvement in 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% 93.5% 93% 92.0% 92% 91.2% 91.1% 90.7% 90.6% 91.0% 91% 90.2% 89.7% 89.7% 89.7% 90% 88.6% 88.7% 89% 88.2% 88% 87.0% 87
Slide 17: Improvement in Marten's Earnings Per Diluted Share
Improvement in Marten’s Earnings Per Diluted Share (1) -2022 improved 31% over 2021 $1.40 31% $1.30 $1.20 $1.10 23% $1.00 $0.90 13% $0.80 11% 62%(2) $0.70 $0.60 $0.50 10% 20% (3)% -%(2) $0.40 (2)% 12% (30)% 23% (16)% $0.30 21% $0.20 $0.10 $0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 18: Improving Organic Operating Results
Improving 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 ma