Marten Transport, Ltd. · NASDAQ:MRTN
Marten Transport — Q4 2017 Earnings Presentation
20 slides from Marten Transport's earnings presentation, Jan 26, 2018
Slide 1: Q4 2017
Q4 2017
Slide 2: Disclosure
Disclosure aH hor 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
Slide 3: Marten's Culture
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 “Perhaps
Slide 4: Driver Culture
Marten’s Driver Culture aH hor “The guy was old, like a lot of drivers. Maybe it had gotten too hard. Reacher thought the last of the frontier would die with it. Those guys were the final generation. The end of the DNA. Now people wanted to be home every night.” “Jack Reacher - The Midnight Line” No
Slide 5: Strategic Vision
Marten’s Strategic Vision “™ Le 7. Transportation Service Solutions for Today and into the Future * Truckload Business - regional and OTR operating from 15 regional service centers — including a new dry van operation in 2016 out of our Kansas City facility, expanded in 2017 to our Atlanta facility -
Slide 6: Operating Revenue Growth
Operating Revenue Growth (excluding fuel surcharge) Jn millions Diluted EPS Growth” 2% 12% 4% $0.70 12%) 4% -%®) 2014 2015 = 2016-2017 416 417 $0.60 $0.50 $0.40 $0.30 $0.20 $0.40 $0.00 2014 «2015-016 «2017 16 417 (1) Restated to reflect the five-for—three stock split effected in the form of a divide
Slide 7: Vision and Plan - Regional Operating Centers Network
Marten’s Vision and Plan - murs al Regional Operating Centers Network — THE FOUNDATION of Marten’s service and growth A $94 million expansion since ’09 paid for through challenging times ~ All locations acquired, replaced or updated since "09 — Otay Mesa and McAllen only leased facilities - $15.8 mi
Slide 8: Marten's Vision and Plan - Continued Growth
abe nmy = 5 Marten’s Vision and Plan- Continued Growth All Segments Load Growth Truckload and Dedicated Loads/Tractor/Week Growth 700,000 y- a 42 9% 3% 4% 3% 600,000 40 | ae 12% 500,000 \¥§—_ a i 400,000 — a — 38 300,000 — \—_ a 3% pt) 200,000 | — (a —/— “nf — | a ot o 2014 «20152016 ass Q417 214 20
Slide 9: Vision and Plan - Dedicated Growth
Marten’s Vision and Plan - Dedicated Growth Revenue, excluding fuel surcharges, has increased 358% from 2013 to 2017 Revenue Growth Load Growth (excluding fuel surcharge) In millions 300,000 $175 51% 4% 37% 5% 250,000 _ =150 $125 — 200,000 7 89% 17% $100 150,000 iw $75 100,000 + — -: ny BG $50 | _ i
Slide 10: TOFC Intermodal Growth
a TOFC Intermodal Growth ier] Marten’s Visionand Plan for Future- gant 2 = ted temperature—controlled TOFC in ’05 Marten is the largest truckload intermodal temperature-controlled carrier with BNSF Expanded intermodal growth with longer drayage supported by Marten’s regional business platform Load G
Slide 11: Marten's Vision and Plan - Brokerage Growth
cer Marten’s Vision and Plan - Brokerage Growth \ \ Provides capacity to surge and cover all of Marten’s customers’ freight needs Revenue Growth Load Growth (including fuel surcharge) In millions 60,000 $e0 % 3% (39 25% (7%) 6% 31% 3% (3% 50,000 os on so 4n.000 voi ita | 30,000 +) eA eee 20,000 ++ a
Slide 12: Increasing Revenue Equipment Costs
(ppbite ss Increasing Revenue Equipment Costs ee Average Monthly Depreciation nea Tractors Trailers , $1,509 $470 $456 sia $433 $430 $424 $410 $390 $387 $370 }— —| |] i— $350 $330 Dec.14 = Dec. 15 = Dec. "16 «Dec. 17 Dec.14 Dec.145 —-Dec."16 Dec. 17 The monthly depreciation of tractors and trailers
Slide 13: Net Capital Expenditures
Net Capital Expenditures SS In millions $125.0 $120 $118.6 $115.0 $100 $97.2 $95.3 $80 $60 $40 $20 $0 2014 2015 2016 2017 2018 Estimate
Slide 14: Vision and Plan Initiatives
Marten’s Vision and Plan Initiatives aa 7. Marten People - Data-Driven Measurement and Management Marten people initiate and implement our strategic vision and key strategic initiatives Marten people make real-time data-driven decisions for improved supply chain productivity “The more they know, the
Slide 15: Operating revenue, net income and diluted EPS
Q4'17 Q4'16 [Operating revenue $182.8 $172.7 INet income $8.68) $8.3 [Diluted EPstt) $0.1612 $0.15 [Diluted EPS growth 3.0%) = 2017 _| 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 \Operating revenue $098.1 | $671.1 | $665.0 | $672.9 | $659.2 | $638.5 | $603.7 | $516.9 | $505.9 INet income g
Slide 16: Consistent Growth in Quarterly Operating Income
Consistent Growth in Quarterly Operating Income within each of our Dedicated, Intermodal and Brokerage Businesses Since 2014 Dedicated Operating Income Intermodal Operating Income In thousands In thousands 6.00 > 2.00 se 254% 28% ‘345% oo desl Bo% 21% 4 — ‘$4,000 ‘$1,800 a0 a $1,300 > 200 | 300 | ($
Slide 17: Operating Ratio, Net of Fuel Surcharge
Marten’s Operating Ratio, Net of Fuel Surcharge == Stable Margins through Period with Rate and Cost Pressures 94% 93% — | 92.0% 92% — 91.2% 9119 91.2% o1% 4 gus 91.0% 20.8%: | : 90.7% = 90.4%" 90.6% 90.2% 90% 4 89% — 7 88% + - - a 87% — pa ' 2009-2010» 2011S 2012013 NN ONS 16 *Excluding a gain on di
Slide 18: Improvement in Marten's Earnings
$0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Improvement in Marten’s Earnings - Cents Per Diluted Share ci) Restated to reflect the five-for-three stock split effected in the form of a dividend on July 7, 2017 @) Excluding a gain on disposition of two facilities in 2015 (3) Excluding the deferred
Slide 19: Culture | Marten's Vision, Plan, People
Marten’s Culture | Marten’s Vision Marten’s Plan | 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 Professo
Slide 20: Truckload Carrier CY'18 EV/EBITDA
Truckload Carrier CY'18EV/EBITDA apy, 12x 10.0x 10x 8x 6x 4x 2x Ox SAK WERN MRTN SNDR -HTLD.—sUBHT.-—KNX Source: company sings and Factset