$17.44
$0.00 (0.00%)
End-of-day quote: 05/03/2024
NasdaqGS:MRTN

Marten Transport Profile

Marten Transport, Ltd. operates a multifaceted business that offers a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across its five distinct business platforms – Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico.

The company is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. Approximately 58% of the company’s Truckload and Dedicated revenue in 2023 resulted from hauling temperature-sensitive products and 42% from hauling dry freight. The company operates throughout the United States and in parts of Mexico and Canada, with its revenue primarily generated from within the United States. The company provides regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. The company’s primary medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. In 2023, the company’s average length of haul was 414 miles.

The company’s growth strategy is to expand its business organically by offering shippers a high level of service and significant freight capacity. We market primarily to shippers that offer consistent volumes of freight in the lanes it prefers and is willing to compensate it for a high level of service. With its fleet of 3,349 company and independent contractor tractors, the company offers service levels that include up to 99% on-time performance and delivery within the narrow time windows often required when shipping perishable commodities.

Segments

The company operates through four segments – Truckload, Dedicated, Intermodal and Brokerage.

Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services. The company transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, along with dry freight, across the United States and into and out of Mexico and Canada. Our agreements with customers are typically for one year.

Dedicated segment provides customized transportation solutions tailored to meet each individual customer’s requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States.

Intermodal segment transports the company’s customers’ freight within the United States utilizing its refrigerated containers on railroad flatcars for portions of trips, with the balance of the trips using its tractors or, to a lesser extent, contracted carriers.

Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for the company’s customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which operates pursuant to brokerage authority granted by the United States Department of Transportation, or DOT. The company retains the billing, collection and customer management responsibilities.

Operating results of the company’s MRTN de Mexico business which offers its customers door-to-door service between the United States and Mexico with its Mexican partner carriers is reported within its Truckload and Brokerage segments.

Marketing and Operations

The company approaches its business as an integrated effort of marketing and operations. The company targets food and consumer packaged goods companies whose products require temperature-sensitive services and who ship multiple truckloads per week. By emphasizing high-quality service, the company seeks to become a core carrier for its customers. In 2023, the company’s largest customer was Walmart.

The company’s marketing efforts are conducted by a staff of 290 sales, customer service and support personnel under the supervision of its senior management team. Marketing personnel travel within their regions to solicit new customers and maintain contact with existing customers. Customer service managers regularly contact customers to solicit additional business on a load-by-load basis.

The company’s operations and sales personnel strive to improve its asset productivity by seeking freight that allows for rapid turnaround times, minimizes non-revenue miles between loads and carries a favorable rate structure.

Major Customers

A significant portion of the company’s revenue is generated from its major customers. In 2023, the company’s top 30 customers accounted for approximately 69% of its revenue excluding fuel surcharges, and its top ten customers accounted for 47% of its revenue.

Revenue Equipment

The company’s revenue equipment programs are an important part of its overall goal of profitable growth. The company evaluates its equipment decisions based on factors, such as initial cost, useful life, warranty terms, expected maintenance costs, fuel economy, driver comfort, customer needs, manufacturer support and resale value. The company generally operates newer, well-maintained equipment with uniform specifications to minimize its spare parts inventory, streamline its maintenance program and simplify driver training.

As of December 31, 2023, the company operated a fleet of 3,349 tractors, including 3,255 company-owned tractors and 94 tractors supplied by independent contractors. The average age of the company-owned tractor fleet at December 31, 2023, was approximately 1.9 years. In 2023, the company replaced company-owned tractors within an average of 4.1 years after purchase.

Kenworth and Freightliner manufacture most of the company-owned tractors. As of December 31, 2023, the company operated a fleet of 5,653 trailers, consisting of 3,347 refrigerated trailers and 2,306 dry vans. Most of its refrigerated trailers are equipped with Thermo-King refrigeration units, air ride suspensions and anti-lock brakes. The average age of the company’s trailer fleet as of December 31, 2023 was approximately 4.6 years. In 2023, the company replaced company-owned trailers within an average of 8.0 years after purchase. As of December 31, 2023, the company operated a fleet of 787 refrigerated containers for use on railroad flatcars.

Strategy

The company’s growth strategy is to expand its business organically by offering shippers a high level of service and significant freight capacity.

Regulation

The DOT and various state and local agencies exercise broad powers over the company’s business, governing such activities as authorization to engage in motor carrier operations, safety and insurance requirements. The company’s drivers and independent contractors also must comply with the safety and fitness regulations promulgated by the DOT, including those relating to drug and alcohol testing, medical and continuous training qualification and hours-of-service.

The United States Department of Transportation (DOT), through the Federal Motor Carrier Safety Administration (FMCSA), imposes safety and fitness regulations on the company and its drivers.

History

Marten Transport, Ltd. was founded in 1946. The company was incorporated in 1988.

Country
Industry:
Trucking, except local
Founded:
1946
IPO Date:
09/25/1986
ISIN Number:
I_US5730751089

Contact Details

Address:
129 Marten Street, Mondovi, Wisconsin, 54755, United States
Phone Number
715 926 4216

Key Executives

CEO:
Kohl, Timothy
CFO
Hinnendael, James
COO:
Phillips, Adam