Marten Transport(MRTN) - 2022 Q4 - Annual Report

Revenue Growth - Operating revenue increased by $290.2 million, or 29.8%, in 2022 compared to 2021, with revenue net of fuel surcharges rising by $197.5 million, or 23.1%[118] - Truckload segment revenue, net of fuel surcharges, increased by 18.8% in 2022, primarily due to a rise in average revenue per tractor[118] - Dedicated segment revenue, net of fuel surcharges, rose by 21.7% in 2022, also driven by an increase in average revenue per tractor[118] - Intermodal segment revenue, net of fuel surcharges, grew by 14.8% in 2022, mainly due to an increase in revenue per load[118] - Brokerage segment revenue surged by 40.8% in 2022, primarily due to an increase in the number of loads transported[118] - Operating revenue increased by $290.2 million, or 29.8%, to $1.264 billion in 2022 from $973.6 million in 2021[128] - Truckload segment revenue rose by $103.8 million, or 26.2%, to $500.5 million in 2022, with net revenue increasing by $65.2 million, or 18.8%[130] - Dedicated segment revenue increased by $99.7 million, or 30.2%, to $429.1 million in 2022, with net revenue rising by 21.7%[131] - Intermodal segment revenue grew by $27.5 million, or 26.9%, to $129.8 million in 2022, with net revenue up by 14.8%[132] - Brokerage segment revenue surged by $59.3 million, or 40.8%, to $204.6 million in 2022, primarily due to an increase in the number of loads[133] Income and Expenses - Operating income improved by 28.3% to $143.3 million in 2022, with net income rising by 29.2% to $110.4 million, or $1.35 per diluted share[120] - Total operating expenses increased by $258.6 million, or 30.0%, in 2022, with operating expenses as a percentage of operating revenue at 88.7%[133] - Fuel and fuel taxes rose by $87.3 million, or 66.5%, in 2022, with the national average cost of fuel increasing to $4.99 per gallon from $3.29 per gallon[136] - Operating income improved by 28.3% to $143.3 million in 2022 from $111.7 million in 2021[141] - Net income increased by 29.2% to $110.4 million, or $1.35 per diluted share, in 2022 from $85.4 million, or $1.02 per diluted share, in 2021[144] - Operating expenses increased by $80.8 million, or 10.3%, in 2021, with salaries, wages, and benefits rising by $17.8 million, or 5.9%[151] Capital Expenditures and Investments - Capital expenditures are estimated to be approximately $225 million in 2023, reflecting ongoing investments in new tractors and trailers[121] - Capital expenditures for 2023 are estimated to be approximately $225 million, including $164.3 million for new revenue equipment[169] - The company continues to invest in environmentally sustainable solutions, including the use of auxiliary power units and energy-efficient equipment[122] Shareholder Returns - The company repurchased and retired 2.3 million shares of common stock for $41.8 million in 2022, with future repurchases of up to $33.2 million available[167][166] - A quarterly cash dividend of $0.06 per share was paid in each quarter of 2022, totaling $19.6 million[169] - The company expects to continue paying quarterly cash dividends in the future, subject to financial condition and other factors[169] Tax and Compliance - The effective income tax rate remained stable at 23.5% for both 2022 and 2021[142] - The effective income tax rate decreased to 23.5% in 2021 from 25.6% in 2020, contributing to the increase in net income[161] - The company maintained compliance with all covenants related to its credit agreements as of December 31, 2022[171] Cash Flow and Financial Position - In 2022, net cash flows provided by operating activities were $219.5 million, an increase of 28.2% from $171.2 million in 2021[167] - The company entered into a credit agreement in August 2022 for an unsecured committed credit facility of $30.0 million, maturing in August 2027[170] - The company has outstanding standby letters of credit totaling $16.1 million to guarantee settlement of self-insurance claims as of December 31, 2022[170] Claims and Reserves - The total auto liability and workers' compensation claims reserves were $39.3 million as of December 31, 2022, compared to $36.8 million in 2021[176] - A 5% increase in the average cost of diesel fuel would have increased fuel expenses by $10.7 million based on 2022 consumption[178]