Old Dominion Freight Line Provides Update for Third-Quarter 2020
September 03 2020 - 7:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported
certain less-than-truckload (“LTL”) operating metrics for August
2020. Revenue per day increased 1.3% as compared to August 2019 due
to a 2.4% increase in LTL tons per day that was partially offset by
a decrease in LTL revenue per hundredweight. The change in LTL tons
per day was attributable to a 5.9% increase in LTL weight per
shipment that was partially offset by a 3.3% decrease in LTL
shipments per day. For the quarter-to-date period, LTL revenue per
hundredweight and LTL revenue per hundredweight excluding fuel
surcharges decreased 0.9% and increased 2.3%, respectively, as
compared to the same period last year.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, “We are encouraged by recent trends that
contributed to the year-over-year increase in our LTL revenue per
day for August. This positive inflection in our revenue is a result
of improving demand trends from our customers in the industrial and
retail sectors, which are increasingly prioritizing high-quality
service from their carriers. With an unmatched value proposition
that is based on our ability to deliver superior service at a fair
price, as well as our available network capacity to support further
growth, we believe Old Dominion is the best-positioned carrier to
capitalize on the improving market trends. While there are
continuing risks to the domestic economy, we believe these recent
trends will create additional opportunities for us to win market
share while also supporting our long-term yield initiatives. Our
ability to do so is driven by our dedicated employees, who
consistently deliver superior service to our customers regardless
of the operational challenges they face in this current
environment. We thank each member of our OD Family for their
efforts as they continue 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 will continue to 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 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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Adam N. Satterfield Senior Vice President, Finance and Chief
Financial Officer (336) 822-5721
Old Dominion Freight Line (NASDAQ:ODFL)
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