Old Dominion Freight Line Announces $0.13 Per Share Quarterly Cash Dividend and a New $250 Million Stock Repurchase Program
May 17 2018 - 4:45PM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today announced
that its Board of Directors has declared a quarterly cash dividend
of $0.13 per share of common stock, payable on June 20, 2018, to
shareholders of record at the close of business on June 6,
2018.
The Company also announced that its Board of Directors has
approved a new stock repurchase program authorizing the repurchase
of up to $250 million of its outstanding common stock through June
2020. This new repurchase program will commence upon the expiration
of the previously authorized two-year repurchase program announced
on May 23, 2016.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, “We are pleased with the Board’s authorization
of this new stock repurchase program, which is integral to our
capital allocation strategy and reflects our commitment to building
long-term shareholder value. Old Dominion’s strong balance sheet
and cash flow have enabled us to return value to shareholders
through share repurchases and our quarterly cash dividend, while at
the same time continuing to strategically invest in the long-term
growth of our business. We are proud that our effort to create
shareholder value has produced a compound annual growth rate in our
stock price of 29% over the past five years.”
Under the new repurchase program, the Company may repurchase
shares from time to time in the open-market or through privately
negotiated transactions. The extent to which the Company
repurchases its shares and the timing of such repurchases will
depend upon market conditions and other corporate considerations,
as determined by the Company’s management team. The new repurchase
program does not obligate the Company 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, which could negatively impact our total overall pricing
strategy and our ability 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 our ability 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 recessions, downturns in the economy,
global uncertainty and instability, changes in U.S. social,
political, and regulatory conditions or a disruption of financial
markets, which may decrease demand for our services; (7) the impact
of changes in tax laws, rates, guidance and interpretations,
including those related to certain provisions of the Tax Cuts and
Jobs Act; (8) increases in driver and maintenance technician
compensation or difficulties attracting and retaining qualified
drivers and maintenance technicians to meet freight demand; (9) 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; (10) cost increases associated
with employee benefits, including costs associated with employee
healthcare plans; (11) the availability and cost of capital for our
significant ongoing cash requirements; (12) the availability and
cost of new equipment and replacement parts, including regulatory
changes and supply constraints that could impact the cost of these
assets; (13) decreases in demand for, and the value of, used
equipment; (14) the availability and cost of diesel fuel; (15) 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;
(16) 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; (17)
the costs and potential liabilities related to governmental
proceedings, inquiries, notices or investigations; (18) the costs
and potential liabilities related to our international business
relationships; (19) 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 (the “FMCSA”) and other regulatory agencies;
(20) the costs and potential adverse impact of compliance
associated with addressing interoperability between legacy
electronic automatic on-board recording devices and electronic
logging devices (“ELDs”) that comply with FMCSA’s ELD regulations
and guidance; (21) seasonal trends in the less-than-truckload
industry, including harsh weather conditions and disasters; (22)
our dependence on key employees; (23) the concentration of our
stock ownership with the Congdon family; (24) the costs and
potential adverse impact associated with future changes in
accounting standards or practices; (25) potential costs associated
with cyber incidents and other risks, including system failure,
security breach, disruption by malware or other damage; (26)
failure to keep pace with developments in technology, any
disruption to our technology infrastructure, or failures of
essential services upon which our technology platforms rely, which
could cause us to incur costs or result in a loss of business; (27)
the costs and potential adverse impact associated with transitional
challenges in upgrading or enhancing our technology systems; (28)
damage to our reputation through unfavorable publicity; (29) the
costs and potential adverse impact of compliance with
anti-terrorism measures on our business; (30) dilution to existing
shareholders caused by any issuance of additional equity; (31) the
impact of a quarterly cash dividend or the failure to declare
future cash dividends; (32) fluctuations in the market value of our
common stock; (33) the impact of certain provisions in our articles
of incorporation, bylaws, and Virginia law that could discourage,
delay or prevent a change in control of us or a change in our
management; and (34) other risks and uncertainties described in our
most recent Annual Report on Form 10-K and other filings with the
SEC. 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 as (i) 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.
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 range of
value-added services including container drayage, truckload
brokerage, supply chain consulting and warehousing.
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Old Dominion Freight Line, Inc.Adam N. Satterfield,
336-822-5721Senior Vice President - Finance and Chief Financial
Officer
Old Dominion Freight Line (NASDAQ:ODFL)
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