Old Dominion Freight Line Reports Second Quarter 2024 Earnings Per Diluted Share of $1.48
All prior-period share and per share data in this release have been adjusted to reflect the Company's
|
Three Months Ended |
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|
|
Six Months Ended |
|
|
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|
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|
|
|
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|
||||||||||||
(In thousands, except per share amounts) |
2024 |
|
2023 |
|
% Chg. |
|
2024 |
|
2023 |
|
% Chg. |
||||||||
Total revenue |
$ |
1,498,697 |
|
$ |
1,413,189 |
|
6.1% |
|
$ |
2,958,770 |
|
$ |
2,855,325 |
|
3.6% |
||||
LTL services revenue |
$ |
1,484,967 |
|
$ |
1,397,815 |
|
6.2% |
|
$ |
2,931,700 |
|
$ |
2,822,187 |
|
3.9% |
||||
Other services revenue |
$ |
13,730 |
|
$ |
15,374 |
|
(10.7)% |
|
$ |
27,070 |
|
$ |
33,138 |
|
(18.3)% |
||||
Operating income |
$ |
421,691 |
|
$ |
391,594 |
|
7.7% |
|
$ |
808,117 |
|
$ |
774,643 |
|
4.3% |
||||
Operating ratio |
|
71.9 |
% |
|
72.3 |
% |
|
|
|
72.7 |
% |
|
72.9 |
% |
|
||||
Net income |
$ |
322,045 |
|
$ |
292,362 |
|
10.2% |
|
$ |
614,349 |
|
$ |
577,400 |
|
6.4% |
||||
Diluted earnings per share |
$ |
1.48 |
|
$ |
1.33 |
|
11.3% |
|
$ |
2.82 |
|
$ |
2.61 |
|
8.0% |
||||
Diluted weighted average shares outstanding |
|
217,541 |
|
|
220,398 |
|
(1.3)% |
|
|
218,174 |
|
|
220,877 |
|
(1.2)% |
“Our second quarter revenue growth of 6.1% was primarily due to a 4.4% increase in LTL revenue per hundredweight and a 1.9% increase in LTL tons per day. The increase in LTL tons per day reflects a 3.1% increase in LTL shipments per day that was partially offset by a 1.2% decrease in weight per shipment. LTL revenue per hundredweight, excluding fuel surcharges, increased 4.9% due primarily to the success of our long-term yield-management strategy. Our consistent, cost-based approach to pricing focuses on offsetting our cost inflation while also supporting further investments in the capacity and technology that our customers expect.
“Our operating ratio improved 40 basis points to 71.9% for the second quarter of 2024, due primarily to the quality of our revenue growth and continued focus on operating efficiencies. These factors allowed us to improve our direct operating costs as a percent of revenue, which more than offset the increase in our overhead expenses as a percent of revenue. The combination of the growth in revenue and operating ratio improvement resulted in the 11.3% increase in earnings per diluted share to
Cash Flow and Use of Capital
Old Dominion’s net cash provided by operating activities was
Capital expenditures were
Old Dominion continued to return capital to shareholders during the second quarter of 2024 through its share repurchase and dividend programs. For the first six months of this year, the Company utilized
Summary
Old Dominion will hold a conference call to discuss this release today at
Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as inflationary pressures or downturns in the domestic economy, and our inability to sufficiently increase our customer rates to offset the increase in our costs; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload (“LTL”) industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers’ and suppliers’ businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in
|
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Statements of Operations |
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||||||||
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Second Quarter |
|
Year to Date |
||||||||||||||||||||||||||||
(In thousands, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||||||
Revenue |
$ |
1,498,697 |
|
|
|
100.0 |
% |
|
$ |
1,413,189 |
|
|
|
100.0 |
% |
|
$ |
2,958,770 |
|
|
|
100.0 |
% |
|
$ |
2,855,325 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries, wages & benefits |
|
683,784 |
|
|
|
45.6 |
% |
|
|
642,841 |
|
|
|
45.5 |
% |
|
|
1,352,174 |
|
|
|
45.7 |
% |
|
|
1,294,916 |
|
|
|
45.4 |
% |
Operating supplies & expenses |
|
161,020 |
|
|
|
10.7 |
% |
|
|
165,373 |
|
|
|
11.7 |
% |
|
|
333,492 |
|
|
|
11.3 |
% |
|
|
357,757 |
|
|
|
12.5 |
% |
General supplies & expenses |
|
44,371 |
|
|
|
3.0 |
% |
|
|
38,606 |
|
|
|
2.8 |
% |
|
|
89,947 |
|
|
|
3.0 |
% |
|
|
78,151 |
|
|
|
2.7 |
% |
Operating taxes & licenses |
|
36,282 |
|
|
|
2.4 |
% |
|
|
36,890 |
|
|
|
2.6 |
% |
|
|
72,120 |
|
|
|
2.5 |
% |
|
|
73,591 |
|
|
|
2.6 |
% |
Insurance & claims |
|
17,141 |
|
|
|
1.2 |
% |
|
|
15,381 |
|
|
|
1.1 |
% |
|
|
35,335 |
|
|
|
1.2 |
% |
|
|
31,409 |
|
|
|
1.1 |
% |
Communications & utilities |
|
10,158 |
|
|
|
0.7 |
% |
|
|
11,515 |
|
|
|
0.8 |
% |
|
|
21,153 |
|
|
|
0.7 |
% |
|
|
22,532 |
|
|
|
0.8 |
% |
Depreciation & amortization |
|
84,563 |
|
|
|
5.6 |
% |
|
|
79,784 |
|
|
|
5.6 |
% |
|
|
169,094 |
|
|
|
5.6 |
% |
|
|
155,731 |
|
|
|
5.4 |
% |
Purchased transportation |
|
32,010 |
|
|
|
2.2 |
% |
|
|
28,596 |
|
|
|
2.0 |
% |
|
|
62,720 |
|
|
|
2.1 |
% |
|
|
59,211 |
|
|
|
2.1 |
% |
Miscellaneous expenses, net |
|
7,677 |
|
|
|
0.5 |
% |
|
|
2,609 |
|
|
|
0.2 |
% |
|
|
14,618 |
|
|
|
0.6 |
% |
|
|
7,384 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total operating expenses |
|
1,077,006 |
|
|
|
71.9 |
% |
|
|
1,021,595 |
|
|
|
72.3 |
% |
|
|
2,150,653 |
|
|
|
72.7 |
% |
|
|
2,080,682 |
|
|
|
72.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
421,691 |
|
|
|
28.1 |
% |
|
|
391,594 |
|
|
|
27.7 |
% |
|
|
808,117 |
|
|
|
27.3 |
% |
|
|
774,643 |
|
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-operating (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
131 |
|
|
|
0.0 |
% |
|
|
89 |
|
|
|
0.0 |
% |
|
|
168 |
|
|
|
0.0 |
% |
|
|
289 |
|
|
|
0.0 |
% |
Interest income |
|
(5,961 |
) |
|
|
(0.5 |
)% |
|
|
(2,368 |
) |
|
|
(0.1 |
)% |
|
|
(13,333 |
) |
|
|
(0.5 |
)% |
|
|
(5,179 |
) |
|
|
(0.2 |
)% |
Other expense, net |
|
1,075 |
|
|
|
0.1 |
% |
|
|
1,947 |
|
|
|
0.1 |
% |
|
|
1,954 |
|
|
|
0.1 |
% |
|
|
3,458 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
426,446 |
|
|
|
28.5 |
% |
|
|
391,926 |
|
|
|
27.7 |
% |
|
|
819,328 |
|
|
|
27.7 |
% |
|
|
776,075 |
|
|
|
27.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
104,401 |
|
|
|
7.0 |
% |
|
|
99,564 |
|
|
|
7.0 |
% |
|
|
204,979 |
|
|
|
6.9 |
% |
|
|
198,675 |
|
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
322,045 |
|
|
|
21.5 |
% |
|
$ |
292,362 |
|
|
|
20.7 |
% |
|
$ |
614,349 |
|
|
|
20.8 |
% |
|
$ |
577,400 |
|
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.49 |
|
|
|
|
|
$ |
1.33 |
|
|
|
|
|
$ |
2.83 |
|
|
|
|
|
$ |
2.63 |
|
|
|
|
||||
Diluted |
$ |
1.48 |
|
|
|
|
|
$ |
1.33 |
|
|
|
|
|
$ |
2.82 |
|
|
|
|
|
$ |
2.61 |
|
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|
||||
|
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|
||||||||
Weighted average outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
216,369 |
|
|
|
|
|
|
219,042 |
|
|
|
|
|
|
216,981 |
|
|
|
|
|
|
219,475 |
|
|
|
|
||||
Diluted |
|
217,541 |
|
|
|
|
|
|
220,398 |
|
|
|
|
|
|
218,174 |
|
|
|
|
|
|
220,877 |
|
|
|
|
|
|||||||||||||||||||||||
Operating Statistics |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||||
|
Second Quarter |
|
Year to Date |
||||||||||||||||||||
|
2024 |
|
2023 |
|
% Chg. |
|
2024 |
|
2023 |
|
% Chg. |
||||||||||||
Work days |
|
64 |
|
|
|
64 |
|
|
|
— |
% |
|
|
128 |
|
|
|
128 |
|
|
|
— |
% |
Operating ratio |
|
71.9 |
% |
|
|
72.3 |
% |
|
|
|
|
|
72.7 |
% |
|
|
72.9 |
% |
|
|
|
||
LTL intercity miles (1) |
|
172,361 |
|
|
|
170,294 |
|
|
|
1.2 |
% |
|
|
342,127 |
|
|
|
343,932 |
|
|
|
(0.5 |
)% |
LTL tons (1) |
|
2,340 |
|
|
|
2,296 |
|
|
|
1.9 |
% |
|
|
4,604 |
|
|
|
4,635 |
|
|
|
(0.7 |
)% |
LTL tonnage per day |
|
36,560 |
|
|
|
35,878 |
|
|
|
1.9 |
% |
|
|
35,970 |
|
|
|
36,209 |
|
|
|
(0.7 |
)% |
LTL shipments (1) |
|
3,100 |
|
|
|
3,008 |
|
|
|
3.1 |
% |
|
|
6,104 |
|
|
|
6,026 |
|
|
|
1.3 |
% |
LTL shipments per day |
|
48,444 |
|
|
|
46,998 |
|
|
|
3.1 |
% |
|
|
47,687 |
|
|
|
47,077 |
|
|
|
1.3 |
% |
LTL revenue per hundredweight |
$ |
31.77 |
|
|
$ |
30.44 |
|
|
|
4.4 |
% |
|
$ |
31.87 |
|
|
$ |
30.58 |
|
|
|
4.2 |
% |
LTL revenue per hundredweight, excluding fuel surcharges |
$ |
26.75 |
|
|
$ |
25.50 |
|
|
|
4.9 |
% |
|
$ |
26.76 |
|
|
$ |
25.29 |
|
|
|
5.8 |
% |
LTL revenue per shipment |
$ |
479.48 |
|
|
$ |
464.79 |
|
|
|
3.2 |
% |
|
$ |
480.84 |
|
|
$ |
470.34 |
|
|
|
2.2 |
% |
LTL revenue per shipment, excluding fuel surcharges |
$ |
403.77 |
|
|
$ |
389.39 |
|
|
|
3.7 |
% |
|
$ |
403.74 |
|
|
$ |
389.10 |
|
|
|
3.8 |
% |
LTL weight per shipment (lbs.) |
|
1,509 |
|
|
|
1,527 |
|
|
|
(1.2 |
)% |
|
|
1,509 |
|
|
|
1,538 |
|
|
|
(1.9 |
)% |
Average length of haul (miles) |
|
918 |
|
|
|
925 |
|
|
|
(0.8 |
)% |
|
|
919 |
|
|
|
925 |
|
|
|
(0.6 |
)% |
Average active full-time employees |
|
22,702 |
|
|
|
22,438 |
|
|
|
1.2 |
% |
|
|
22,796 |
|
|
|
22,705 |
|
|
|
0.4 |
% |
(1) - |
In thousands |
Note: |
Our LTL operating statistics exclude certain transportation and logistics services where pricing is generally not determined by weight. These statistics also exclude adjustments to revenue for undelivered freight required for financial statement purposes in accordance with our revenue recognition policy. |
|
|||||||
Balance Sheets |
|||||||
|
|
|
|
|
|||
|
|
|
|
||||
(In thousands) |
2024 |
|
2023 |
||||
Cash and cash equivalents |
$ |
74,304 |
|
|
$ |
433,799 |
|
Short-term investments |
|
30,271 |
|
|
|
- |
|
Other current assets |
|
702,538 |
|
|
|
709,534 |
|
Total current assets |
|
807,113 |
|
|
|
1,143,333 |
|
Net property and equipment |
|
4,277,820 |
|
|
|
4,095,405 |
|
Other assets |
|
258,163 |
|
|
|
273,655 |
|
Total assets |
$ |
5,343,096 |
|
|
$ |
5,512,393 |
|
|
|
|
|
|
|
||
Current maturities of long-term debt |
$ |
20,000 |
|
|
$ |
20,000 |
|
Other current liabilities |
|
532,754 |
|
|
|
524,658 |
|
Total current liabilities |
|
552,754 |
|
|
|
544,658 |
|
Long-term debt |
|
39,983 |
|
|
|
59,977 |
|
Other non-current liabilities |
|
638,460 |
|
|
|
649,947 |
|
Total liabilities |
|
1,231,197 |
|
|
|
1,254,582 |
|
Equity |
|
4,111,899 |
|
|
|
4,257,811 |
|
Total liabilities & equity |
$ |
5,343,096 |
|
|
$ |
5,512,393 |
|
Note: The financial and operating statistics in this press release are unaudited. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724254347/en/
Executive Vice President and
Chief Financial Officer
(336) 822-5721
Source: