Marten Transport announced a special dividend of 50 cents per share Tuesday after the market closed. The Mondovi, Wisconsin-based refrigerated carrier also declared a regular quarterly cash dividend of 4 cents per share.
“The Board’s decision to declare the special and quarterly cash dividends reflects our strong financial position and commitment to enhancing stockholder value,” Randy Marten, executive chairman, stated in a press release. “This special dividend increases our current dividend yield to 4.3% and makes 2021 our third consecutive year with special dividends – with payments of $0.50 per share in 2020 and $0.43 per share in 2019.”
Both dividends will be payable on Oct. 4 to Marten (NASDAQ: MRTN) shareholders of record on Sept. 20.
Marten produced its highest level of revenue and operating income for any quarter in the company’s history during the second quarter. Total revenue increased 9% year-over-year to $232 million due to growth in the company’s intermodal (+19% excluding fuel surcharges) and brokerage (+37%) segments.
Revenue in its trucking segments fell slightly, but the combined operating ratio improved 20 basis points to 86.5%. Earnings per share of 26 cents were inline with the consensus estimate.
Marten’s cash balance at the end of the second quarter was nearly $15 million higher than at the close of 2020. The special dividend represents a cash payment of more than $41 million.
Shares of MRTN are down 11% year to date after posting a 25% gain in 2020.
Following the payment of these dividends, Marten will have paid a total of $190 million in dividends since it implemented the program in 2010.
Marten Transport’s five divisions – truckload, dedicated, intermodal, brokerage and MRTN de Mexico – specialize in transport and distribution of food and consumer packaged goods requiring a temperature-controlled environment.
