MARTEN TRANSPORT, LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

The accompanying notes are an integral part of these consolidated condensed financial statements.

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NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

THREESIX MONTHS ENDED MARCH 31,JUNE 30, 2005
(Unaudited)

(Unaudited)

(1) Basis of Presentation

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements, and therefore do not include all information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, such statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial condition, results of operations and cash flows for the interim periods presented. The results of operations for any interim period do not necessarily indicate the results for the full year. The unaudited interim consolidated financial statements should be read with reference to the financial statements and notes to financial statements in our 2004 Annual Report on Form 10-K.

The accompanying unaudited consolidated condensed balance sheet as of March 31,June 30, 2005 and consolidated condensed statementstatements of operations for the three and six months ended March 31,June 30, 2005 include the accounts of Marten Transport, Ltd. and its 45% owned affiliate, MW Logistics, LLC (“MWL”). MWL is a third-party provider of logistics services to the transportation industry. We have applied the provisions of FASB Interpretation No. 46, “Consolidation of Variable Interest Entities,” as revised, to our investment in MWL effective March 31, 2004. As a result, the accounts of MWL are included in our unaudited consolidated condensed balance sheet as of March 31,June 30, 2005, and in our consolidated condensed statement of operations beginning April 1, 2004. All material intercompany accounts and transactions have been eliminated in consolidation. Prior to April 1, 2004, we accounted for our investment in MWL using the equity method of accounting. We recorded our share of the equity loss of MWL in the amount of $6,000 for the three months ended March 31, 2004.

(2) Accounting for Stock-Based Compensation

We have adopted the disclosure provisions of Statement of Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure.”  Statement No. 148 amends the disclosure requirements of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation.”  As of March 31June 30, 2005, we have onetwo stock-based employee compensation plan.plans. We account for this planthese plans under the recognition and measurement principles of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and related Interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted under this planthese plans had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table illustrates the effect on net income and earnings per share if we had applied the fair value recognition provisions of Statement No. 123:

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(3) Earnings Per Common Share

Basic and diluted earnings per common share were computed as follows:

All outstanding options were included in the calculation of diluted earnings per share for bothall periods presented.

(4) Long-Term Debt

In June 2005, we entered into an amendment to our unsecured committed credit facility. This amendment reduced the number of banks subject to the agreement to one, adjusted our financial covenants and extended the maturity of the facility from April 2006 to April 2008.

(5) Amendment to Amended and Restated Certificate of Incorporation

In May 2005, our stockholders approved an amendment to our Amended and Restated Certificate of Incorporation increasing the authorized number of shares of common stock from 23,000,000 shares to 48,000,000 shares.

(6) 2005 Stock Incentive Plan

At our annual meeting to be heldIn May 3, 2005, our stockholders will be asked to approveapproved our 2005 Stock Incentive Plan (the “2005 Plan”). Our Board of Directors adopted the 2005 Plan in March 2005 and approved amendments to the 2005 Plan in April 2005. Under the 2005 Plan, all of our employees and any subsidiary employees, as well as all of our non-employee directors, consultants, advisors and independent contractors, may be granted stock-based awards, including incentive and non-statutory stock options and restricted stock awards.  If approved by our stockholders, theawards, none of which have been awarded as of June 30, 2005. The maximum number of shares of common stock that will be available for issuance under the 2005 Plan is approximately 1.9 million shares. The 2005 Plan is intended to replacereplaces our 1995 Stock Incentive Plan (the “1995 Plan”), which terminated by its terms in March 2005. Any awards issued under the 1995 Plan that remain outstanding will continue according to their terms.

(5)(7) Recent Accounting Pronouncements

In December 2004, the Financial Accounting Standards Board, or FASB, issued Statement of Financial Accounting Standards, or SFAS, No. 123 (revised 2004), “Share-Based Payment.”  SFAS No. 123, as revised, requires entities to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees in the income statement. The statement eliminates entities’ ability to account for share-based compensation transactions using the intrinsic value method of accounting in Accounting Principles Board, or APB, Opinion No. 25, “Accounting for Stock Issued to Employees,” which was permitted under SFAS No. 123, as originally issued. In April 2005, the Securities and Exchange Commission deferred the

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effective date of SFAS No. 123, as revised, to the beginning of the first annual reporting period beginning after June 15, 2005. Accordingly, we will recognize the grant-date fair value of stock options in our consolidated statements of operations beginning in our first quarter of 2006. The average annual stock-based employee compensation expense, net of related tax effects, for 2002 through 2004 was $185,000. Therefore, the adoption of this pronouncement is not expected to have a significant impact on our results of operations or financial position. However, the ultimate amount of increased compensation expense will be dependent upon whether we adopt SFAS No. 123, as revised, using the modified prospective or retrospective method, the number of option shares granted during the year, their timing and vesting period, and the method used to calculate the fair value of the awards, among other factors.

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In December 2004, the FASB issued SFAS No. 153, “Exchanges of Nonmonetary Assets: an Amendment of APB Opinion No. 29.”  The amendments made by SFAS No. 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. The amendments also eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have commercial substance. SFAS No. 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. The adoption of this pronouncement is not expected to have a significant impact on our results of operations or financial position.

In March 2005, the FASB issued Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations.”  The Interpretation clarifies that the term “conditional asset retirement obligations” as used in SFAS No. 143, “Accounting for Asset Retirement Obligations,” refers to a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within the control of the entity. The Interpretation states that conditional obligations meet the definition of an asset retirement obligation in SFAS No. 143 and therefore should be recognized if their fair value can be reasonably estimated. Interpretation No. 47 is effective no later than the end of fiscal years ending after December 15, 2005. The adoption of Interpretation No. 47 is not expected to have a significant impact on our results of operations or financial position.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

We generate substantially allThe primary source of our operating revenue is freight revenue, which we generate by transporting freight for our customers. Generally, we are paid by the mile for our services. We also derive freight revenue from fuel surcharges, loading and unloading activities, equipment detention and other accessorial services. Our operating revenue also includes revenue from fuel surcharges and non-freight revenue services, primarily brokerage revenue. The main factors that affect our freight revenue are the revenuerate per mile we receive from our customers, the percentage of miles for which we are compensated, and the number of miles we generate with our equipment. These factors relate, among other things, to the United States economy, inventory levels, the level of truck capacity in the temperature-sensitive market, and specific customer demand. We monitor our revenue production primarily through revenue per tractor per week. We also analyze our ratesrate per total and loaded miles,mile, non-revenue miles percentage, and the miles per tractor we generate.generate, our accessorial revenue and our other sources of operating revenue.

In discussing our results of operations, we have included in certain instances a discussion of freight revenue, beforewhich excludes fuel surcharge and MWL revenue, or “freightnon-freight revenue.” We do this because we believe that eliminating these sources of revenue provides a more consistent basis for comparing our results of operations from period to period.

Our operating results for the first quartersix months of 2005 reflect improved average freight revenue per total mile compared with the first quartersix months of 2004. The improvement in asset productivity helped us overcome the continuing challenges of a tight driver market and high fuel prices. In the first quartersix months of 2005, we increased our operating revenue 21.7%22.3% and our freight revenue 12.2%13.1% compared with the first quartersix months of 2004. We were able to increase our freight revenue by increasing our freight rates, the size of our fleet, our detention charges and our business with existing and new customers. We increased our average operating revenue per tractor per week 11.1%12.4% in the first quartersix months of 2005. Our average freight revenue per tractor per week increased 2.5%4.1%, due to a 7.4%7.7% improvement in average freight revenue per total mile, partially offset by a 4.6%3.4% decrease in average miles per tractor. Our weighted average number of tractors increased 9.6%8.7% in the first quartersix months of 2005 over the first quartersix months of 2004.

Our profitability on the expense side is impacted by variable costs of transporting freight for our customers, fixed costs and expenses containing both fixed and variable components. The variable costs include fuel expense, driver-related expenses, such as wages, benefits, training, and recruitment, and independent contractor costs, which are recorded under purchased transportation. Expenses that have both fixed and variable components include maintenance and tire expense and our total cost of insurance and claims. These expenses generally vary with the miles we travel, but also have a controllable component based on safety, fleet age, efficiency, and other factors. Our main fixed costs relate to the acquisition and financing of long-term assets, such as revenue equipment and operating terminals. Although certain factors affecting our expenses are beyond our control, we monitor them closely and attempt to anticipate changes in these factors in managing our business. For example, fuel prices fluctuated dramatically and quickly at various times during 2004 and the first quartersix months of 2005. We manage our exposure to changes in fuel prices primarily through fuel surcharge programs with our customers, as well as volume fuel purchasing arrangements with national fuel centers and bulk purchases of fuel at our terminals. The transportation industry is currently experiencing substantial difficulty in attracting and retaining qualified drivers. Effective January 1, 2005, we increased the amount paid to company drivers by 1 cent per mile and increased the incentives paid to independent contractors. We also instituted a second pay increase of 2 cents per mile for company drivers effective April 1, 2005. We continue to offer driver compensation that we believe ranks near the top of the industry. Like other companies in our industry, our insurance costs have increased dramatically over the last few years. In order to control increases in insurance premiums, we maintain ahave increased our self-insured retention limitlevels periodically during the last several years. We are responsible for the first $1.0 million on each auto liability claim and beginning June 1, 2005, we also are responsible for up to $1.0 million in the aggregate for all auto liability claims ofbetween $1.0 million per incident and $2.0 million. We are also responsible for the first $750,000 on each workers’ compensation claims of $750,000 per incident.claim.

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Additionally, we operate in a highly competitive and regulated industry that is currently responding to significant regulatory changes regarding drivers’ hours-of-service. The United States Department of Transportation, or DOT, adopted revised hours-of-service regulations effective in January 2004. In response, we negotiated delay time charges with the majority of our customers. In July 2004, the United States Court of

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Appeals for the District of Columbia vacated the new hours-of-service regulations in their entirety and remanded the matter to the Federal Motor Carriers Safety Administration, or FMCSA, for reconsideration. In October 2004, the Surface Transportation Extension Act of 2004 (Part V) extended the current hours-of-service regulations until the earlier of the FMCSA developing a revised set of regulations or September 30, 2005. The regulations did not have a significant impact on our operations or financial results for 2004 or the first quartersix months of 2005.

By increasing our revenue and controlling our expenses, we improved our operating ratio (operating expenses as a percentage of operating revenue) to 92.0%91.0% in the first quartersix months of 2005 from 94.6%92.9% in the first quartersix months of 2004. We increased our earnings per diluted share to $0.33$0.79 in the first quartersix months of 2005 from $0.19$0.52 in the first quartersix months of 2004.

Our business requires substantial, ongoing capital investments, particularly for new tractors and trailers. At March 31,June 30, 2005, we had approximately $36.6$34.7 million of long-term debt, including current maturities, and $172.8$180.0 million in stockholders’ equity. In the first quartersix months of 2005, we spent approximately $12.8$24.1 million, net of trade-ins, to purchase 172302 tractors and 247436 trailers. We also recognized a gain of $879,000$2.1 million on the disposition of used equipment in the first quartersix months of 2005. We estimate that capital expenditures, net of trade-ins, will be approximately $75$57 million for the remainder of 2005, primarily for new revenue equipment.  This represents an increase of $38 million compared with our previous estimate. Based on our current operating performance, the market for used trucks, our liquidity and our expectations concerning tractors manufactured in 2007, we have decided to accelerate our tractor fleet replacement during 2005 and 2006 to allow flexibility with purchasing tractors in 2007 when the next round of diesel emissions reduction directives of the Environmental Protection Agency, or EPA, go into effect. We expect to fund these capital expenditures with cash flows from operations and borrowings under our $45 million revolving credit facility.

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Results of Operations

Comparison of Three Months Ended March 31,June 30, 2005 to Three Months Ended March 31,June 30, 2004

The following table sets forth for the periods indicated the components of our operating revenue and the dollar and percentage change for each component:

The following table sets forth for the periods indicated the dollar and percentage increase or decrease of the items in our unaudited consolidated condensed statements of operations, and those items as a percentage of operating revenue:

Our operating revenue increased $18.4$20.9 million, or 21.7%22.7%, to $102.9$112.8 million in the 2005 period from $84.5$91.9 million in the 2004 period. Freight revenue (operating revenue less fuel surcharge and MWL revenue) increased $9.9$11.8 million, or 12.2%14.0%, to $90.4$96.0 million in the 2005 period from $80.5$84.2 million in the 2004 period.  Freight revenue excludes $9.7 million of fuel surcharge revenue in the 2005 period and $4.0 million in the 2004 period, along with $2.9 million of MWL revenue in the 2005 period.  There was no MWL revenue recorded in the 2004 period. We were able to increase our freight revenue by increasing our freight rates, the size of our fleet, our detention charges and our business with existing and new customers. Our fuel surcharge revenue increased $7.1 million, or 126.1%, to $12.7 million in the 2005 period from $5.6 million in the 2004 period primarily due to higher average fuel prices in the 2005 period more fully discussed below under “fuel and fuel taxes.”  The increase in non-freight revenue in the 2005 period resulted from

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increased logistics services provided by MWL, as well as the formation by the Company of a logistics division in March 2005. Our average operating revenue per tractor per week increased 11.1%13.8% in the 2005 period from the 2004 period. Our average freight revenue per tractor per week increased 2.5%5.7% in the 2005 period from the 2004 period, due to a 7.4%8.0% increase in average freight revenue per total mile partially offset by a 4.6%2.1% decrease in average miles per tractor. Our weighted average number of tractors increased 9.6%7.9% in the 2005 period from the 2004 period.

Salaries, wages and benefits consist of compensation for our employees, including both driver and non-driver employees, employees’ health insurance, 401(k) plan contributions, and other fringe benefits. These expenses vary depending upon the ratio of company drivers to independent contractors, our efficiency, our experience with employees’ health insurance claims, changes in health care premiums, and other factors. The increase in salaries, wages and benefits resulted primarily from an increase in the size of our company-owned fleet and a 1 cent per mile increaseincreases in the amount paid to company drivers of 1 cent per mile effective January 1, 2005.  We instituted a second pay increase of2005 and 2 cents per mile for company drivers effective April 1, 2005. Additionally, our employees’ health insurance expense increased $806,000 in the 2005 period due to less favorable claims experience which we expect to increaseincreased our salaries, wages and benefits in future periods.estimated costs of our self-insured medical claims from the 2004 period.

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Purchased transportation consists of payments to independent contractor providers of revenue equipment and to carriers for transportation services arranged by MWL.the Company. This category will vary depending upon the ratio of company drivers versus independent contractors, the amount of fuel surcharges passed through to independent contractors and the amount paid to carriers by MWL.the Company. Payments to carriers for transportation services arranged by MWLthe Company were $1.8$2.8 million in the 2005 period.  No payments to carriers by MWL were recordedperiod and $1.3 million in the 2004 period. The amount of fuel surcharges passed through to independent contractors increased $1.2$1.3 million in the 2005 period. Purchased transportation expense, excluding fuel surcharges passed through to independent contractors and MWL carrier payments by the Company, decreased $850,000,$2.0 million, or 5.1%11.8%, in the 2005 period from the 2004 period. This decrease was primarily due to a decrease in the number of independent contractor-owned tractors in our fleet, partially offset by a 1 cent per mile increase in the amount paid to independent contractors effective April 1, 2004 and an increase in incentives paid to independent contractors effective January 1, 2005.

Fuel and fuel taxes, which we refer to as fuel expense, net of fuel surcharge revenue of $9.7$12.7 million in the 2005 period and $4.0$5.6 million in the 2004 period, increased $1.2 million, or 10.8%11.4%, to $12.0$12.2 million in the 2005 period from $10.9$11.0 million in the 2004 period. Our fuel prices, which remain high based on historical standards, significantly increased to an average of $1.95$2.15 per gallon in the 2005 period from an average of $1.49$1.64 per gallon in the 2004 period. The elevated level of fuel prices is expected to continue for the remainder of 2005. We have fuel surcharge provisions in substantially all of our transportation contracts and attempt to recover these increased expenses through fuel surcharges and higher rates. We expect our fuel costs to increase in the future because we believe that government mandated emissions standards, which became effective October 1, 2002, have resulted in less fuel-efficient engines, and that more restrictive emissions standards that take effect in 2007 will result in further declines in engine efficiency.

Depreciation relates to owned tractors, trailers, communications units, and terminal facilities. Gains or losses on dispositions of revenue equipment are set forth in a separate line item, rather than included in this category. The increase in depreciation was due to an increase in revenue equipment and the relative percentage of company-owned tractors to independent contractor-owned tractors in the 2005 period. We expect our annual cost of tractor and trailer ownership will increase in future periods as a result of our accelerated tractor fleet replacement and higher prices of new equipment, which would result in greater depreciation over the useful life.

Insurance and claims consist of the costs of insurance premiums and the accruals we make for claims within our self-insured retention amounts, primarily for personal injury, property damage, physical damage to our equipment, cargo claims, and workers’ compensation claims. These expenses will vary primarily based upon the frequency and severity of our accident experience, our self-insured retention levels, and the market for insurance. The costsincrease in insurance and claims in the 2005 period was comprised of oura $311,000 increase in the cost of self-insured accident claims and a $99,000 increase in insurance premiums were consistentpremiums. We are responsible for the first $1.0 million on each auto liability claim and beginning June 1, 2005, we also are responsible for up to $1.0 million in the 2005 period from the 2004 period.  We have maintained the self-insured retention limitaggregate for ourall auto liability claims atbetween $1.0 million per incident and $2.0 million. We are also

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responsible for ourthe first $750,000 on each workers’ compensation claims at $750,000 per incident in the 2005 period.claim. Our significant self-insured retention exposesand our risk on the first $1.0 million of auto liability claims in the $1.0 million to $2.0 million corridor expose us to the possibility of significant fluctuations in claims expense between periods depending on the frequency, severity, and timing of claims and to adverse financial results if we incur large or numerous losses. In the event of an uninsured claim above our insurance coverage, or an increase in the frequency or severity of claims within our self-insured retention, our financial condition and results of operations could be materially and adversely affected.

In the 2005 period, increases in the market value for used revenue equipment caused our gain on disposition of revenue equipment to increase to $879,000$1.2 million from $528,000$650,000 in the 2004 period. Future gains or losses on disposition of revenue equipment are impacted by the market for used revenue equipment, which is beyond our control.

As a result of the foregoing factors, we improved our operating expenses as a percentage of operating revenue, or “operating ratio,” to 92.0%90.0% in the 2005 period from 94.6%91.4% in the 2004 period. Our operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 88.8% in the 2005 period from 90.9% in the 2004 period.

Interest expense primarily consists of interest on our revolvingunsecured committed credit facility and senior unsecured notes. These expenses are partially offset by interest income from the financing we provide to independent contractors under our tractor purchase program and from our investment in short-term marketable securities.

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The increase in net Net interest expense was primarily the result of higher average debt balances outstandingconsistent in the 2005 period.and 2004 periods.

Our effective income tax rate was 40.1%39.2% in the 2005 period compared with 38.0% in the 2004 period. We expect our effective income tax rate to be approximately 39% for the remainder of 2005.

As a result of the factors described above, net income increased 76.2%40.5%, to $4.8$6.8 million in the 2005 period from $2.7$4.8 million in the 2004 period. Net earnings per share increased to $0.33$0.46 per diluted share in the 2005 period from $0.19$0.33 per diluted share in the 2004 period.

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Comparison of Six Months Ended June 30, 2005 to Six Months Ended June 30, 2004

The following table sets forth for the periods indicated the components of our operating revenue and the dollar and percentage change for each component:

The following table sets forth for the periods indicated the dollar and percentage increase or decrease of the items in our unaudited consolidated condensed statements of operations, and those items as a percentage of operating revenue:

Our operating revenue increased $39.3 million, or 22.3%, to $215.7 million in the 2005 period from $176.4 million in the 2004 period. Freight revenue increased $21.6 million, or 13.1%, to $186.4 million in the 2005 period from $164.7 million in the 2004 period. We were able to increase our freight revenue by increasing our freight rates, the size of our fleet, our detention charges and our business with existing and new customers. Our fuel surcharge revenue increased $12.7 million, or 132.1%, to $22.4 million in the 2005 period from $9.6 million in the 2004 period primarily due to higher average fuel prices in the 2005 period. The increase in non-freight revenue in the 2005 period resulted from increased logistics services provided by MWL, as well as the formation by the Company of a logistics division in March 2005. Our average operating revenue per tractor

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per week increased 12.4% in the 2005 period from the 2004 period. Our average freight revenue per tractor per week increased 4.1% in the 2005 period from the 2004 period, due to a 7.7% increase in average freight revenue per total mile, partially offset by a 3.4% decrease in average miles per tractor. Our weighted average number of tractors increased 8.7% in the 2005 period from the 2004 period.

The increase in salaries, wages and benefits resulted primarily from an increase in the size of our company-owned fleet and increases in the amount paid to company drivers of 1 cent per mile effective January 1, 2005 and 2 cents per mile effective April 1, 2005. Additionally, our employees’ health insurance expense increased $762,000 in the 2005 period due to less favorable claims experience which increased our estimated costs of our self-insured medical claims from the 2004 period.

Purchased transportation expense increased $3.0 million, or 7.9%, in the 2005 period from the 2004 period. This expense, excluding fuel surcharges passed through to independent contractors and carrier payments by the Company, decreased $2.9 million, or 8.5%, in the 2005 period from the 2004 period. This decrease was primarily due to a decrease in the number of independent contractor-owned tractors in our fleet, partially offset by a 1 cent per mile increase in the amount paid to independent contractors effective April 1, 2004 and an increase in incentives paid to independent contractors effective January 1, 2005. Payments to carriers for transportation services arranged by the Company were $4.6 million in the 2005 period and $1.3 million in the 2004 period. The amount of fuel surcharges passed through to independent contractors increased $2.5 million in the 2005 period.

Fuel and fuel taxes, which we refer to as fuel expense, net of fuel surcharge revenue of $22.4 million in the 2005 period and $9.6 million in the 2004 period, increased $2.4 million, or 11.1%, to $24.3 million in the 2005 period from $21.8 million in the 2004 period. Our fuel prices, which remain high based on historical standards, significantly increased to an average of $2.05 per gallon in the 2005 period from an average of $1.56 per gallon in the 2004 period.

The increase in depreciation was due to an increase in revenue equipment and the relative percentage of company-owned tractors to independent contractor-owned tractors in the 2005 period.

The increase in insurance and claims in the 2005 period was comprised of a $293,000 increase in the cost of self-insured accident claims and a $124,000 increase in insurance premiums.

In the 2005 period, increases in the market value for used revenue equipment caused our gain on disposition of revenue equipment to increase to $2.1 million from $1.2 million in the 2004 period.

As a result of the foregoing factors, we improved our operating expenses as a percentage of operating revenue, or “operating ratio,” to 91.0% in the 2005 period from 92.9% in the 2004 period. Our operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharge revenue, improved to 89.9% in the 2005 period from 92.5% in the 2004 period.

The increase in net interest expense was primarily the result of higher average debt balances outstanding in the 2005 period, partially offset by an increase in interest income from financing provided to independent contractors.

Our effective income tax rate was 39.6% in the 2005 period compared with 38.0% in the 2004 period.

As a result of the factors described above, net income increased 53.4%, to $11.6 million in the 2005 period from $7.5 million in the 2004 period. Net earnings per share increased to $0.79 per diluted share in the 2005 period from $0.52 per diluted share in the 2004 period.

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Liquidity and Capital Resources

Our business requires substantial, ongoing capital investments, particularly for new tractors and trailers. Our primary sources of liquidity have beenare funds provided by operations, our unsecured senior notes and our revolving credit facility, and our public offering of common stock completed during the third quarter of 2003.facility. A portion of our tractor fleet is provided by independent contractors who own and operate their own equipment. We have no capital expenditure requirements relating to those drivers who own their tractors or obtain financing through third parties. However, to the extent we purchase tractors and extend financing to the independent contractors through our tractor purchase program, we have an associated capital expenditure requirement.

The table below reflects our net cash flows provided by operating activities, net cash flows used for investing activities, and total long-term debt, including current maturities, for the periods indicated.