THOMASVILLE, N.C.--April 22, 2005--Old Dominion
Freight Line, Inc. (NASDAQ: ODFL) today announced record financial
results for the first quarter ended March 31, 2005. Revenue from
operations increased 29.5% to $236,770,000 for the quarter from
$182,769,000 for the first quarter of 2004. Net income rose 63.6% to
$9,343,000 from $5,712,000. Earnings per diluted share for the first
quarter of 2005 were $0.38, up 58.3% from $0.24 for the first quarter
last year. Old Dominion's operating ratio for the first quarter of
2005 improved to 92.7% from 94.0% for the first quarter of 2004. All
prior-period share and per share data in this release have been
adjusted to reflect the Company's three-for-two stock split effective
in May 2004.
"We are pleased to report strong profitable growth for the first
quarter of 2005, which represents our fourth consecutive quarter of
revenue growth above 20%" commented Earl E. Congdon, Chairman and
Chief Executive Officer of Old Dominion. Because a majority of this
growth was within our existing service center network, we continued to
produce increased operating leverage for the quarter. As a result, the
first quarter represented our 14th consecutive quarter of improvement
in our operating ratio and growth in net income in excess of 30%, both
on a comparable quarter basis.
"Old Dominion's revenue growth for the quarter reflects a 21.5%
increase in LTL tons and a 3.1% increase in LTL revenue per
hundredweight, excluding fuel surcharges. We also experienced an 18.2%
growth in LTL shipments and a 5.9% increase in LTL revenue per
shipment, excluding fuel surcharges. We maintained our pricing
discipline during the quarter while increasing our volumes and market
share.
"With a service center network covering over 90% of the U.S.
population, our primary focus is to leverage our investment in this
network through increased freight density by increasing market share.
During the first quarter, we benefited from our expansion activities
in 2004, which included opening 12 new service centers, expanding our
direct service into Oregon and Washington and initiating full-state
coverage in Michigan and Wisconsin. During the first quarter of 2005,
we also opened a new service center in Colorado Springs, Colorado, and
acquired Wichita Southeast Kansas Transit ("WSKT") in a transaction we
expect will be accretive to our 2005 financial results. Through this
acquisition, we expanded our network by 10 service centers to 149 at
the end of the quarter, increased our direct coverage to 41 states and
increased our full-state coverage to 31 states. During the remainder
of 2005, we plan to open four to five additional service centers,
including our first service centers in Vermont and Maine.
"Through this expansion, we strengthen our unique competitive
position as an efficient, non-union transportation company with the
long-haul capabilities of a national carrier and the infrastructure
and service capabilities of a regional carrier. The value we present
our customers as a comprehensive single-source solution for their
transportation needs is evident in our ability to increase revenue,
primarily through market share expansion, at a rate consistently and
significantly above the industry."
Based on the Company's operating and financial results for the
first quarter and its assessment of current and near-term business
conditions, Old Dominion today affirmed its guidance for 2005 earnings
per diluted share in a range of $2.03 to $2.08. In addition, the
Company today established its earnings guidance for the second quarter
of 2005 in a range of $0.50 to $0.53, compared with $0.43 earned in
the second quarter of 2004.
Mr. Congdon concluded, "Our first-quarter results represent a
sound start to achieving our earnings guidance for 2005. We are
confident that Old Dominion remains well positioned to continue
expanding its market share as 2005 progresses."
Old Dominion will hold a conference call to discuss this release
today at 11:00 a.m. Eastern time. Investors will have the opportunity
to listen to the conference call live over the Internet by going to
www.odfl.com or by going to www.vcall.com at least 15 minutes early to
register, download, and install any necessary audio software. For
those who cannot listen to the live broadcast, a replay will be
available at these Web sites shortly after the call through May 22,
2005. A telephonic replay will also be available through April 29,
2005, at 719-457-0820, Confirmation Number 832267.
Forward-looking statements in this news release are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned 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;
(2) the negative impact of any unionization of the Company's
employees; (3) the challenges associated with executing the Company's
growth strategy; (4) the Company's compliance with legislation
requiring companies to evaluate their internal control over financial
operations and reporting; (5) various economic factors such as
economic recessions and downturns in customers' business cycles and
shipping requirements; (6) the availability and cost of fuel; (7)
difficulty in attracting or retaining qualified drivers; (8) the
Company's exposure to claims related to cargo loss and damage,
property damage, personal injury, workers' compensation, long-term
disability and group health and the cost of insurance coverage above
retention levels; (9) the Company's significant ongoing cash
requirements; (10) the availability and cost of new equipment; (11)
the costs of compliance with, or liability for, violation of existing
or future governmental regulation; (12) seasonal trends in the
industry, including the possibility of harsh weather conditions; (13)
the Company's dependence on key employees; (14) changes in the
Company's goals and strategies, which are subject to change at any
time at the discretion of the Company; and (15) other risks and
uncertainties indicated from time to time in the Company's filings
with the Securities and Exchange Commission.
Old Dominion Freight Line, Inc. is a less-than-truckload
multi-regional motor carrier providing one to five day service among
five regions in the United States and next-day and second-day service
within these regions. Through its four product groups, OD-Domestic,
OD-Expedited, OD-Global and OD-Technology, the Company offers an array
of innovative products and services that provide direct service to 41
states within the Southeast, South Central, Northeast, Midwest and
West regions of the country, including 31 states within which it
provides full-state coverage. In addition, through marketing and
carrier relationships, Old Dominion provides service to and from the
remaining states as well as international services around the globe.
OLD DOMINION FREIGHT LINE, INC.
Financial Highlights
(In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------- %
2005 2004 Chg.
-------- -------- -------
Revenue from operations $236,770 $182,769 29.5%
Operating income $ 17,236 $ 10,901 58.1%
Operating ratio 92.7% 94.0%
Net income $ 9,343 $ 5,712 63.6%
Basic earnings per share $ 0.38 $ 0.24 58.3%
Diluted earnings per share $ 0.38 $ 0.24 58.3%
Weighted average shares outstanding
Basic 24,845 24,089 3.1%
Diluted 24,855 24,111 3.1%
OLD DOMINION FREIGHT LINE, INC.
Statements of Operations
----------------------------------------------------------------------
(In thousands, except per share amounts)
First Quarter
-----------------------------------------
2005 2004 %Chg.
---------------- ---------------- -------
Revenue $236,770 100.0% $182,769 100.0% 29.5%
Operating expenses:
Salaries, wages & benefits 134,244 56.7% 108,450 59.3% 23.8%
Operating supplies &
expenses 33,092 14.0% 20,835 11.4% 58.8%
General supplies & expenses 7,648 3.2% 6,430 3.5% 18.9%
Operating taxes & licenses 9,007 3.8% 7,300 4.0% 23.4%
Insurance & claims 7,855 3.3% 5,842 3.2% 34.5%
Communications & utilities 3,214 1.4% 2,806 1.6% 14.5%
Depreciation & amortization 12,335 5.2% 10,596 5.8% 16.4%
Purchased transportation 8,803 3.7% 6,281 3.4% 40.2%
Building and office
equipment rents 2,097 0.9% 1,830 1.0% 14.6%
Miscellaneous expenses, net 1,239 0.5% 1,498 0.8% (17.3%)
Total operating expenses 219,534 92.7% 171,868 94.0% 27.7%
Operating income 17,236 7.3% 10,901 6.0% 58.1%
Other deductions:
Interest expense, net 1,433 0.6% 1,370 0.8% 4.6%
Other expense, net 153 0.1% 167 0.1% (8.4%)
Income before income taxes 15,650 6.6% 9,364 5.1% 67.1%
Provision for income taxes 6,307 2.7% 3,652 2.0% 72.7%
Net income $9,343 3.9% $5,712 3.1% 63.6%
========= =========
Earnings per Share:
Basic $0.38 $0.24 58.3%
Diluted $0.38 $0.24 58.3%
Weighted average
outstanding shares:
Basic 24,845 24,089 3.1%
Diluted 24,855 24,111 3.1%
OLD DOMINION FREIGHT LINE, INC.
First Quarter
--------------------------------------
Operating Statistics 2005 2004 % Chg.
---------------------------------------------------------------------
( /a In thousands)
Operating ratio 92.7% 94.0% (1.4%)
Intercity miles /a 61,529 50,166 22.7%
LTL tons /a 724 596 21.5%
Total tons /a 970 828 17.1%
LTL shipments /a 1,355 1,146 18.2%
Total shipments /a 1,383 1,172 18.0%
Percent LTL revenue 91.0% 91.0% 0.0%
Revenue per intercity mile $3.85 $3.64 5.8%
LTL rev/LTL cwt $14.88 $13.95 6.7%
LTL rev/LTL cwt less FSC $13.68 $13.27 3.1%
LTL rev/LTL shp $159.07 $145.16 9.6%
LTL rev/LTL shp less FSC $146.25 $138.14 5.9%
LTL weight per LTL shipment 1,069 1,041 2.7%
Average length of haul 936 953 (1.8%)
March 31, December 31,
Balance Sheets 2005 2004
--------------------------------------------------------------
(In thousands)
Current Assets $145,001 $127,381
Net Property and Equipment 399,217 363,268
Other Assets 21,918 18,928
--------------- ---------------
Total Assets $566,136 $509,577
=============== ===============
Current Maturities $19,380 $22,030
Other Current Liabilities 101,351 76,634
--------------- ---------------
Total Current Liabilities 120,731 98,664
Long Term Debt 82,695 57,424
Other Long Term Liabilities 61,839 61,961
--------------- ---------------
Total Liabilities 265,265 218,049
Equity 300,871 291,528
--------------- ---------------
Total Liabilities & Equity $566,136 $509,577
=============== ===============
Notes: Financial and operating data are unaudited
LTL is less than 10,000 lbs.
