Old Dominion Freight Line Provides Update for Second-Quarter 2020
June 03 2020 - 7:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for May 2020.
Revenue per day decreased 16.2% as compared to May 2019 due to a
12.1% decrease in LTL tons per day and a decrease in LTL revenue
per hundredweight. The change in LTL tons per day was attributable
to a 16.7% decrease in LTL shipments per day that was partially
offset by a 5.4% increase in LTL weight per shipment. For the
quarter-to-date period, LTL revenue per hundredweight and LTL
revenue per hundredweight excluding fuel surcharges decreased 4.7%
and 1.4%, respectively, as compared to the same period last
year.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, “Old Dominion’s revenue results for May
reflect the significant decline in the domestic economy as well as
a decrease in fuel surcharge revenue. While economic uncertainty
continues, we are encouraged by the gradual improvement in our
daily revenue trend throughout the month of May. In addition, the
combination of operating efficiencies and reduction in
discretionary spending has allowed us to balance our variable
operating costs with the change in business levels.
“The current environment has produced many operating challenges,
but the remarkable focus and resolve of our team has allowed us to
maintain our long-term value proposition by continuing to deliver
superior service at a fair price. Our primary focus as a company,
however, remains the safety and well-being of our OD Family of
employees. We want to thank each of them for their hard work and
dedication as they continue to support the needs of our customers
while Helping The World Keep Promises.”
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, many of which are currently amplified by and may
continue to be amplified by or may, in the future, be amplified by,
the current COVID-19 pandemic: (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 revision at any time at our discretion; (6) various
economic factors such as recessions, downturns in the economy,
global uncertainty and instability, changes in international trade
policies, changes in U.S. social, political, and regulatory
conditions or a disruption of financial markets, which may decrease
demand for our services or increase our costs; (7) public health
issues, such as the current COVID-19 pandemic, that may negatively
affect the economy; (8) changes in relationships with our
significant customers; (9) the impact of changes in tax laws,
rates, guidance and interpretations, including those related to
certain provisions of the Tax Cuts and Jobs Act; (10) increases in
driver and maintenance technician compensation or difficulties
attracting and retaining qualified drivers and maintenance
technicians to meet freight demand; (11) 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 or deductible levels and claims in excess of
insured coverage levels; (12) cost increases associated with
employee benefits, including costs associated with employee
healthcare plans; (13) the availability and cost of capital for our
significant ongoing cash requirements; (14) the availability and
cost of new equipment and replacement parts, including regulatory
changes and supply constraints that could impact the cost of these
assets; (15) decreases in demand for, and the value of, used
equipment; (16) the availability and cost of diesel fuel; (17) 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;
(18) 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 collective and/or class action
allegations; (19) the costs and potential liabilities related to
governmental proceedings, inquiries, notices or investigations;
(20) the costs and potential liabilities related to our
international business relationships; (21) 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; (22) the costs and potential adverse impact of
compliance associated with FMCSA’s electronic logging device
(“ELD”) regulations and guidance, including the operation of our
fleet and safety management systems on the ELD hardware and
software platform; (23) seasonal trends in the less-than-truckload
(“LTL”) industry, including harsh weather conditions and disasters;
(24) our ability to retain our key employees and continue to
effectively execute our succession plan; (25) the concentration of
our stock ownership with the Congdon family; (26) the costs and
potential adverse impact associated with future changes in
accounting standards or practices; (27) potential costs and
liabilities associated with cyber incidents and other risks with
respect to our systems and networks or those of our third-party
service providers, including system failure, security breach,
disruption by malware or ransomware or other damage; (28) failure
to comply with data privacy, security or other laws and
regulations; (29) 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; (30) the costs and potential adverse impact associated
with transitional challenges in upgrading or enhancing our
technology systems; (31) legal, regulatory or market responses to
climate change concerns; (32) damage to our reputation through
unfavorable perceptions or publicity, including those related to
environmental, social and governance issues, cybersecurity and data
privacy concerns; (33) failure to adapt to new technologies
implemented by our competitors in the LTL and transportation
industry; (34) the costs and potential adverse impact of compliance
with anti-terrorism measures on our business; (35) dilution to
existing shareholders caused by any issuance of additional equity;
(36) the impact of a quarterly cash dividend or the failure to
declare future cash dividends; (37) fluctuations in the amount and
frequency of our stock repurchases; (38) recent and future
volatility in the market value of our common stock; (39) 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 (40) 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 through a single
integrated organization. Our service offerings, which include
expedited transportation, are provided through an expansive network
of service centers located throughout the continental United
States. Through strategic alliances, the Company also provides LTL
services throughout North America. In addition to its core LTL
services, the Company offers a range of value-added services
including container drayage, truckload brokerage and supply chain
consulting.
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version on businesswire.com: https://www.businesswire.com/news/home/20200603005195/en/
Adam N. Satterfield Senior Vice President, Finance and Chief
Financial Officer (336) 822-5721
Old Dominion Freight Line (NASDAQ:ODFL)
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