Marten Transport(MRTN) - 2024 Q4 - Annual Report

Revenue Performance - Operating revenue decreased by $167.7 million, or 14.8%, in 2024 compared to 2023, with revenue net of fuel surcharges down by $132.0 million, or 13.6%[137] - Truckload segment revenue, net of fuel surcharges, decreased by 4.6% from 2023, while Dedicated segment revenue fell by 20.3% and Intermodal segment revenue dropped by 34.8%[137] - Operating revenue decreased by $167.7 million, or 14.8%, to $963.7 million in 2024 from $1.131 billion in 2023[145] - Truckload segment revenue decreased by $25.7 million, or 5.5%, to $439.8 million in 2024 from $465.5 million in 2023[147] - Dedicated segment revenue decreased by $89.1 million, or 21.8%, to $319.1 million in 2024 from $408.3 million in 2023[148] - Intermodal segment revenue decreased by $33.3 million, or 36.2%, to $58.8 million in 2024 from $92.1 million in 2023[149] - Brokerage segment revenue decreased by $19.6 million, or 11.8%, to $146.0 million in 2024 from $165.6 million in 2023[150] Income and Expenses - Operating income declined by 63.1% to $33.2 million in 2024 from $90.1 million in 2023, with net income down 61.7% to $26.9 million, or $0.33 per diluted share[139] - Total operating income decreased by $56.9 million, or 63.1%, to $33.2 million in 2024 from $90.1 million in 2023[151] - Net income decreased 61.7% to $26.9 million, or $0.33 per diluted share, in 2024 from $70.4 million, or $0.86 per diluted share, in 2023[160] - Salaries, wages, and benefits decreased by $37.1 million, or 9.8%, in 2024 from 2023[152] - Fuel and fuel taxes decreased by $33.3 million, or 18.5%, in 2024 from 2023[154] - Gain on disposition of revenue equipment was $5.0 million in 2024, down from $13.6 million in 2023[158] Operating Ratios - The operating ratio increased to 96.6% in 2024 from 92.0% in 2023, indicating a rise in operating expenses as a percentage of operating revenue[139] - The consolidated operating ratio increased to 96.6% in 2024 from 92.0% in 2023[151] - Operating income declined 63.1% to $33.2 million in 2024 from $90.1 million in 2023, with an operating ratio of 96.6% in 2024 compared to 92.0% in 2023[159] Capital Expenditures and Cash Flow - Capital expenditures are estimated to be approximately $150 million in 2025, with net cash flows from operating activities of $134.8 million used for new revenue equipment purchases and dividends[140] - Net cash flows provided by operating activities decreased to $134.8 million in 2024 from $164.4 million in 2023 and $219.5 million in 2022[181] - Capital expenditures are estimated to be approximately $150 million in 2025, including commitments to purchase $191.2 million of new revenue equipment[182] Environmental and Operational Investments - The company continues to invest in environmentally sustainable solutions, including the use of auxiliary power units and energy-efficient equipment[142] Fleet and Mileage - Average revenue per tractor per week for the Truckload segment was $4,123 in 2024, down from $4,377 in 2023, while the Dedicated segment saw a decrease to $3,767 from $3,936[144] - Total miles for the Truckload segment increased to 158,985 thousand miles in 2024 from 155,929 thousand miles in 2023, while Dedicated segment total miles decreased to 110,681 thousand miles from 133,163 thousand miles[144] - The average number of tractors in the Truckload segment increased to 1,751 in 2024 from 1,733 in 2023, while the Dedicated segment's average tractors decreased to 1,356 from 1,632[144] Shareholder Returns and Financial Obligations - The company expects to continue paying quarterly cash dividends of $0.06 per share, totaling $19.5 million in both 2024 and 2023[182] - The company has outstanding standby letters of credit totaling $23.1 million as of December 31, 2024, to guarantee settlement of self-insurance claims[189] - The credit agreement effective in August 2022 provides for an unsecured committed credit facility of $30.0 million, maturing in August 2027, with no outstanding principal balance as of December 31, 2024[184] - The company maintains insurance coverage for losses in excess of self-insured retention levels, with total claims reserves of $37.5 million and $40.3 million as of December 31, 2024 and 2023, respectively[189]