Old Dominion Freight Line Provides Update for First Quarter 2022
March 03 2022 - 7:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for February
2022. Revenue per day increased 38.3% as compared to February 2021
due to an 18.3% 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 19.8% increase in LTL shipments per day that was
partially offset by a 1.3% 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
16.8% and 10.7%, 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 growth for the first
two months of the quarter reflects our ongoing ability to win
market share while also improving our yield. Demand for our
superior service, as well as the domestic economy, both remained
consistently strong. We expect these favorable trends to continue
and, as a result, we remain committed to further expanding the
capacity of our people, our fleet, and our service center network
to support anticipated growth this year. The combination of these
ongoing investments and our ability to deliver superior service at
a fair price continue to form the foundation of our long-term
strategic plan. As we continue to execute on the fundamental
elements of this plan, we remain confident in our ability to
produce further profitable growth and increase 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: (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, including the continuing impact of the COVID-19
pandemic; (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 cost of
third-party transportation used to supplement our workforce and
equipment needs; (7) 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; (8)
seasonal trends in the LTL industry, including harsh weather
conditions and disasters; (9) the availability and cost of capital
for our significant ongoing cash requirements; (10) decreases in
demand for, and the value of, used equipment; (11) our ability to
successfully consummate and integrate acquisitions; (12) the costs
and potential liabilities related to our international business
relationships; (13) the costs and potential adverse impact of
compliance with anti-terrorism measures on our business; (14) the
competitive environment with respect to our industry, including
pricing pressures; (15) 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; (16) the negative impact of any unionization,
or the passage of legislation or regulations that could facilitate
unionization, of our employees; (17) increases in the cost of
employee compensation and benefit packages used to address general
labor market challenges and to attract and retain qualified
employees, including drivers and maintenance technicians; (18) our
ability to retain our key employees and continue to effectively
execute our succession plan; (19) 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; (20) 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; (21) 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; (22) 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; (23)
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; (24) the
costs and potential liabilities related to compliance with, or
violations of, existing or future governmental laws and
regulations, including environmental laws; (25) the effects of
legal, regulatory or market responses to climate change concerns;
(26) the increase in costs associated with healthcare legislation
and other mandated benefits; (27) the costs and potential
liabilities related to litigation and governmental proceedings,
inquiries, notices or investigations; (28) the impact of changes in
tax laws, rates, guidance and interpretations; (29) the
concentration of our stock ownership with the Congdon family; (30)
the ability or the failure to declare future cash dividends; (31)
fluctuations in the amount and frequency of our stock repurchases;
(32) volatility 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 one of the largest North
American 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/20220303005273/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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