Old Dominion Freight Line Announces New $250 Million Stock Repurchase Program
May 23 2016 - 9:10AM
Business Wire
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced
that its Board of Directors has approved a new two-year stock
repurchase program authorizing Old Dominion to repurchase up to
$250 million of its outstanding common stock.
Old Dominion’s total outstanding stock repurchase authority is
now approximately $262 million. This total includes approximately
$12 million remaining under the previously authorized repurchase
program announced on November 10, 2014, which the Company intends
to complete before it commences the new repurchase program.
David S. Congdon, Vice Chairman and Chief Executive Officer of
Old Dominion, commented, “We are pleased with the Board’s
authorization of this new stock repurchase program, which reflects
our confidence in Old Dominion’s financial stability and focus on
improving long-term shareholder value. While we remain committed to
investing in the strategic growth of our business, this new program
reflects our strong financial position and substantial cash flow,
which provides the flexibility for us to continue to return capital
to our shareholders.”
Under the new repurchase program, Old Dominion may repurchase
shares from time to time in the open-market or through privately
negotiated transactions. The extent to which Old Dominion
repurchases its shares and the timing of such repurchases will
depend upon market conditions and other corporate considerations,
as determined by Old Dominion’s management team. The new repurchase
program does not obligate Old Dominion to repurchase any number of
shares and may be suspended or discontinued at any time.
Forward-Looking Statements
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 competitive environment with respect to
industry capacity and pricing, including the use of fuel
surcharges, such that our total overall pricing is sufficient to
cover our operating expenses; (2) our ability to collect fuel
surcharges and the effectiveness of those fuel surcharges in
mitigating the impact of fluctuating prices for diesel fuel and
other petroleum-based products; (3) the negative impact of any
unionization, or the passage of legislation or regulations that
could facilitate unionization, of our employees; (4) the challenges
associated with executing our growth strategy, including the
inability to successfully consummate and integrate any
acquisitions; (5) changes in our goals and strategies, which are
subject to change at any time at our discretion; (6) various
economic factors such as economic recessions and downturns in
customers' business cycles and shipping requirements; (7) increases
in driver compensation or difficulties attracting and retaining
qualified drivers to meet freight demand; (8) our exposure to
claims related to cargo loss and damage, property damage, personal
injury, workers' compensation, group health and group dental,
including increased premiums, adverse loss development, increased
self-insured retention levels and claims in excess of insured
coverage levels; (9) cost increases associated with employee
benefits, including compliance obligations associated with the
Patient Protection and Affordable Care Act; (10) the availability
and cost of capital for our significant ongoing cash requirements;
(11) the availability and cost of new equipment and replacement
parts, including regulatory changes and supply constraints that
could impact the cost of these assets; (12) decreases in demand
for, and the value of, used equipment; (13) the availability and
cost of diesel fuel; (14) the costs and potential liabilities
related to compliance with, or violations of, existing or future
governmental laws and regulations, including environmental laws,
engine emissions standards, hours-of-service for our drivers,
driver fitness requirements and new safety standards for drivers
and equipment; (15) the costs and potential liabilities related to
various legal proceedings and claims that have arisen in the
ordinary course of our business, some of which include class-action
allegations; (16) the costs and potential liabilities related to
governmental proceedings; (17) the costs and potential liabilities
related to our international business operations and relationships;
(18) the costs and potential adverse impact of compliance with, or
violations of, current and future rules issued by the Department of
Transportation, the Federal Motor Carrier Safety Administration,
including its Compliance, Safety, Accountability initiative, and
other regulatory agencies; (19) seasonal trends in the
less-than-truckload industry, including harsh weather conditions;
(20) our dependence on key employees; (21) the concentration of our
stock ownership with the Congdon family; (22) the costs and
potential adverse impact associated with future changes in
accounting standards or practices; (23) potential costs associated
with cyber incidents and other risks, including system failure,
security breach, disruption by malware or other damage; (24) the
impact of potential disruptions to our information technology
systems or our service center network; (25) damage to our
reputation from the misuse of social media; (26) the costs and
potential adverse impact of compliance with anti-terrorism measures
on our business; (27) dilution to existing shareholders caused by
any issuance of additional equity; and (28) other risks and
uncertainties described in our most recent Annual Report on Form
10-K and other filings with the Securities and Exchange Commission.
Our forward-looking statements are based upon our beliefs and
assumptions using information available at the time the statements
are made. We caution the reader not to place undue reliance on our
forward-looking statements (i) as these statements are neither a
prediction nor a guarantee of future events or circumstances and
(ii) the assumptions, beliefs, expectations and projections about
future events may differ materially from actual results. We
undertake no obligation to publicly update any forward-looking
statement to reflect developments occurring after the statement is
made, except as otherwise required by law.
About Old Dominion
Old Dominion Freight Line, Inc. is a leading,
less-than-truckload (“LTL”), union-free motor carrier providing
regional, inter-regional and national LTL services, which include
ground and air expedited transportation and consumer household
pickup and delivery through a single integrated organization. In
addition to its core LTL services, the Company offers a broad range
of value-added services including container drayage, truckload
brokerage, supply chain consulting and warehousing.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160523005861/en/
Old Dominion Freight Line, Inc.Adam N. Satterfield,
336-822-5721Senior Vice President, Finance and Chief Financial
Officer
Old Dominion Freight Line (NASDAQ:ODFL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Old Dominion Freight Line (NASDAQ:ODFL)
Historical Stock Chart
From Jul 2023 to Jul 2024