Old Dominion Freight Line Provides Update for Second-Quarter 2021
June 03 2021 - 7:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for May 2021.
Revenue per day increased 47.6% as compared to May 2020 due to a
28.3% increase in LTL tons per day and an increase in LTL revenue
per hundredweight. The change in LTL tons per day was attributable
to a 32.6% increase in LTL shipments per day that was partially
offset by a 3.2% decrease in LTL weight per shipment. For the
quarter-to-date period, LTL revenue per hundredweight and LTL
revenue per hundredweight, excluding fuel surcharges, increased
15.3% and 11.1%, respectively, as compared to the same period last
year.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, "Old Dominion produced strong revenue growth
for the first two months of the second quarter due to an increase
in demand for our services and the ongoing improvement in the
domestic economy. Our quarter-to-date revenue performance is above
our normal sequential trend, which reflects our ability to win
market share by delivering superior service at a fair price to our
customers. In addition, we have available capacity within our
service center network due to the significant investments we have
made over many years. We remain committed to further expanding the
capacity of both our workforce and our service center network this
year, and we are confident that the continued execution of our
strategic plan can produce long-term gains in market share and
shareholder value."
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 will continue to be amplified by
the current COVID-19 pandemic: (1) the challenges associated with
executing our growth strategy, and developing, marketing and
consistently delivering high-quality services that meet customer
expectations; (2) various risks related to public health epidemics,
pandemics and similar outbreaks; (3) changes in our relationships
with significant customers; (4) 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; (5) the availability and cost of
new equipment, including regulatory changes and supply constraints
that could impact the cost of these assets; (6) the availability
and price of diesel fuel and 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; (7) seasonal trends in the
less-than-truckload (“LTL”) industry, including harsh weather
conditions and disasters; (8) the availability and cost of capital
for our significant ongoing cash requirements; (9) decreases in
demand for, and the value of, used equipment; (10) our ability to
successfully consummate and integrate acquisitions; (11) the costs
and potential liabilities related to our international business
relationships; (12) the costs and potential adverse impact of
compliance with anti-terrorism measures on our business; (13) the
competitive environment with respect to our industry, including
pricing pressures; (14) 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; (15) the negative impact of any unionization,
or the passage of legislation or regulations that could facilitate
unionization, of our employees; (16) increases in driver and
maintenance technician compensation or difficulties attracting and
retaining qualified drivers and maintenance technicians to meet
freight demand and maintain our customer relationships; (17) our
ability to retain our key employees and continue to effectively
execute our succession plan; (18) potential costs and liabilities
associated with cyber incidents and other risks with respect to our
information technology systems or those of our third-party service
providers, including system failure, security breach, disruption by
malware or ransomware or other damage; (19) the failure to adapt to
new technologies implemented by our competitors in the LTL and
transportation industry, which could negatively affect our ability
to compete; (20) 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; (21) the Compliance, Safety, Accountability initiative of
the Federal Motor Carrier Safety Administration (“FMCSA”) could
adversely impact our ability to hire qualified drivers, meet our
growth projections and maintain our customer relationships; (22)
the costs and potential adverse impact of compliance with, or
violations of, current and future rules issued by the Department of
Transportation, the FMCSA and other regulatory agencies; (23) the
costs and potential liabilities related to compliance with, or
violations of, existing or future governmental laws and
regulations, including environmental laws; (24) the effects of
legal, regulatory or market responses to climate change concerns;
(25) the costs associated with healthcare legislation or rising
healthcare costs; (26) the costs and potential liabilities related
to litigation and governmental proceedings, inquiries, notices or
investigations; (27) the impact of changes in tax laws, rates,
guidance and interpretations; (28) the concentration of our stock
ownership with the Congdon family; (29) the ability or the failure
to declare future cash dividends; (30) fluctuations in the amount
and frequency of our stock repurchases; (31) volatility in the
market value of our common stock; (32) 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 (33) 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 one of the largest North
American less-than-truckload (“LTL”) motor carriers and provides
regional, inter-regional and national LTL services through a single
integrated, union-free organization. Our service offerings, which
include expedited transportation, are provided through an expansive
network of service centers located throughout the continental
United States. The Company also maintains strategic alliances with
other carriers to provide 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/20210603005201/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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