Marten Transport(MRTN) - 2024 Q3 - Quarterly Report

Revenue Performance - Operating revenue decreased by $130.0 million, or 15.1%, in the first nine months of 2024 compared to the same period in 2023[53] - Truckload segment revenue, net of fuel surcharges, decreased by 5.3% from the first nine months of 2023, primarily due to a decrease in average revenue per tractor[53] - Dedicated segment revenue, net of fuel surcharges, decreased by 21.4% from the first nine months of 2023, attributed to decreases in both average fleet size and average revenue per tractor[53] - Intermodal segment revenue, net of fuel surcharges, decreased by 36.6% from the first nine months of 2023, primarily due to decreases in both number of loads and revenue per load[53] - Operating revenue decreased by$ 42.2 million, or 15.1%, to $237.4 million in the 2024 period from$ 279.5 million in the 2023 period[68] - Truckload segment revenue decreased by $5.8 million, or 5.1%, to$ 108.4 million in the 2024 period from $114.2 million in the 2023 period[63] - Dedicated segment revenue decreased by$ 26.8 million, or 26.3%, to $75.0 million in the 2024 period from$ 101.8 million in the 2023 period[64] - Intermodal segment revenue decreased by $7.5 million, or 34.2%, to$ 14.5 million in the 2024 period from $22.0 million in the 2023 period[65] - Brokerage segment revenue decreased by$ 2.1 million, or 5.0%, to $39.4 million in the 2024 period from$ 41.5 million in the 2023 period[66] - Operating revenue decreased by $130.0 million, or 15.1%, to$ 733.3 million in the 2024 period from $863.2 million in the 2023 period[77] Income and Profitability - Operating income declined by 64.4% to$ 26.5 million in the first nine months of 2024 from $74.5 million in the same period in 2023[55] - Net income decreased by 63.3% to$ 21.3 million, or $0.26 per diluted share, in the first nine months of 2024 from$ 58.0 million, or $0.71 per diluted share, in the first nine months of 2023[55] - Operating income decreased by$ 12.96 million, or 75.2%, to $4.27 million in the 2024 period from$ 17.23 million in the 2023 period[68] - Operating income declined 75.2% to $4.3 million in the 2024 period from$ 17.2 million in the 2023 period[75] - Net income declined 72.4% to $3.8 million, or$ 0.05 per diluted share, in the 2024 period from $13.6 million, or$ 0.17 per diluted share, in the 2023 period[76] Operating Ratios and Expenses - The consolidated operating ratio increased to 98.2% in the 2024 period from 93.8% in the 2023 period[68] - Operating expenses as a percentage of operating revenue increased to 96.4% in the 2024 period from 91.4% in the 2023 period[84] - Fuel surcharge revenue decreased to $96.1 million in the first nine months of 2024 from$ 120.6 million in the same period in 2023[53] - Purchased transportation expense decreased by $22.2 million, or 14.6%, in the 2024 period compared to the 2023 period[85] Fuel and Taxation - Fuel and fuel taxes decreased by$ 12.9 million, or 26.5%, in the 2024 period from the 2023 period[71] - Net fuel expense decreased by $3.4 million, or 28.1%, to$ 8.7 million in the 2024 period from $12.1 million in the 2023 period[71] - Fuel and fuel taxes decreased by$ 23.6 million, or 17.1%, in the 2024 period from the 2023 period, with net fuel expense decreasing by $3.6 million, or 12.3%[86] - The effective income tax rate increased to 27.7% in the 2024 period from 25.5% in the 2023 period[76] - The effective income tax rate increased to 27.2% in the 2024 period from 25.1% in the 2023 period[90] Capital Expenditures and Cash Flow - Capital expenditures, net of proceeds from dispositions, are estimated to be approximately$ 43 million for the remainder of 2024[56] - Capital expenditures for the remainder of 2024 are estimated to be approximately $43 million, including commitments to purchase$ 36.2 million of new revenue equipment[97] - Net cash flows provided by operating activities were $111.0 million in the first nine months of 2024, down from$ 126.3 million in the same period of 2023[96] Share Repurchase and Financial Commitments - The company did not repurchase any shares in the first nine months of 2024, with future repurchases of up to $33.2 million available in the share repurchase program[95] - The company has outstanding standby letters of credit totaling$ 23.1 million as of September 30, 2024, to guarantee settlement of self-insurance claims[99] Diesel Fuel Impact - A 5% increase in the average cost of diesel fuel would have increased fuel expenses by $5.6 million based on fuel consumption in the first nine months of 2024[107]