THOMASVILLE, N.C.--July 22, 2005--Old Dominion
Freight Line, Inc. (NASDAQ: ODFL) today announced record financial
results for the second quarter and six months ended June 30, 2005.
Revenue from operations grew 30.8% to $264,346,000 for the quarter
from $202,129,000 for the second quarter of 2004. Net income was
$13,916,000 for the quarter, a 33.0% increase from $10,461,000 for the
second quarter of 2004, and earnings per diluted share increased 30.2%
to $0.56 from $0.43. Old Dominion's operating ratio for the second
quarter of 2005 improved to 90.4% from 90.6% for the second quarter of
2004.
For the first six months of 2005, revenue from operations
increased 30.2% to $501,116,000 from $384,898,000 for the first six
months of 2004. Net income rose 43.8% to $23,259,000 for the first
half of 2005 from $16,173,000 for the comparable 2004 period, while
earnings per diluted share increased 40.3% to $0.94 from $0.67. The
operating ratio improved for the first six months of 2005 to 91.5%
from 92.3% for the first half of 2004.
Earl E. Congdon, Chairman and Chief Executive Officer of Old
Dominion, remarked, "Old Dominion's strong profitable growth for the
second quarter of 2005 reflects the Company's continuing development
as one of the country's leading LTL transportation companies. The
expansion of our geographic coverage to 42 states, with full-state
coverage in 31 states, and the ongoing improvement in our
comprehensive capabilities and service quality metrics, have steadily
enhanced our opportunities to increase our market share and operating
leverage. Our ability to act on these opportunities is reflected by
our 15th consecutive quarter of both an improved operating ratio and
growth in net income of more than 30% and our fifth consecutive
quarter of revenue growth in excess of 20%, all on a comparable
quarter basis.
"For the second quarter, we achieved a 23.3% increase in LTL tons
shipped and a 19.7% growth in LTL shipments, resulting in a 3.1%
increase in weight per LTL shipment. Even with the increased weight
per shipment, LTL revenue per hundredweight rose 2.5%, excluding fuel
surcharges. The combination of increased weight per shipment and
revenue per hundredweight resulted in a 5.7% increase in LTL revenue
per shipment, excluding fuel surcharges.
"Our growth rate in LTL revenue compared to our industry peers
continues to demonstrate the success of our long-term strategy to
differentiate Old Dominion in the market, especially in an environment
in which companies are consolidating their logistics needs with fewer
transportation companies. Our unique ability to combine the
geographical coverage of an inter-regional carrier and the rapid
transit times of a regional carrier with international distribution
capabilities and state of the art technology have enhanced our
attractiveness as a single-source non-union transportation solutions
provider."
Based on the Company's operating and financial results for the
second quarter and first six months of 2005, as well as its assessment
of current and near-term business conditions, Old Dominion today
increased its guidance for 2005 earnings per diluted share to a range
of $2.05 to $2.10 from the previous range of $2.03 to $2.08. In
addition, the Company today established its earnings guidance for the
third quarter of 2005 in a range of $0.58 to $0.61, compared with
$0.50 earned for the third quarter of 2004.
Mr. Congdon added, "We intend to strengthen our market
differentiation through continuous improvement in service and
geographic coverage capabilities. During the second quarter, we opened
a new service center in Portland, Maine, expanding our operations to a
42nd state. We plan to open new service centers in Grand Island,
Nebraska, and Sioux Falls, South Dakota next week, and Burlington,
Vermont in the second half of the year, which will allow us to expand
the number of states served directly to 44.
"Through new center openings and expansions, as well as a
significant investment in additional transportation equipment during
2005, Old Dominion has positioned itself to meet increased demand
driven by both the sustained economic expansion and the internal
momentum we have developed through our ongoing initiatives to build
market share," concluded Mr. Congdon. "As a result, we remain
confident of our ability to achieve our financial objectives and to
continue delivering an industry leading top line growth rate and
further improvement in our operating ratio, thereby, continuing to
expand shareholder value."
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 August 22,
2005. A telephonic replay will also be available through July 29,
2005, at 719-457-0820, Confirmation Number 2149430.
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 42
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
June 30,
--------------------------- %
2005 2004 Chg.
------------- ------------- ------------
Revenue from operations $ 264,346 $ 202,129 30.8%
Operating income $ 25,265 $ 18,901 33.7%
Operating ratio 90.4% 90.6%
Net income $ 13,916 $ 10,461 33.0%
Basic earnings per share $ 0.56 $ 0.43 30.2%
Diluted earnings per share $ 0.56 $ 0.43 30.2%
Weighted average shares
outstanding
Basic 24,845 24,094 3.1%
Diluted 24,855 24,112 3.1%
Six Months Ended
June 30,
--------------------------- %
2005 2004 Chg.
------------- ------------- ------------
Revenue from operations $ 501,116 $ 384,898 30.2%
Operating income $ 42,501 $ 29,802 42.6%
Operating ratio 91.5% 92.3%
Net income $ 23,259 $ 16,173 43.8%
Basic earnings per share $ 0.94 $ 0.67 40.3%
Diluted earnings per share $ 0.94 $ 0.67 40.3%
Weighted average shares
outstanding
Basic 24,845 24,091 3.1%
Diluted 24,855 24,111 3.1%
Statements of Operations
----------------------------------------------------------------------
(In thousands, except per share amounts)
Second Quarter
--------------------------------------------
2005 2004 %Chg.
----------------- ----------------- --------
Revenue $264,346 100.0% $202,129 100.0% 30.8%
Operating expenses:
Salaries, wages &
benefits 143,613 54.3% 115,270 57.0% 24.6%
Operating supplies &
expenses 37,606 14.2% 22,979 11.4% 63.7%
General supplies &
expenses 8,384 3.2% 7,166 3.6% 17.0%
Operating taxes &
licenses 9,858 3.7% 7,679 3.8% 28.4%
Insurance & claims 8,460 3.2% 6,850 3.4% 23.5%
Communications &
utilities 3,166 1.2% 2,485 1.2% 27.4%
Depreciation &
amortization 13,663 5.2% 10,906 5.4% 25.3%
Purchased transportation 8,436 3.2% 6,959 3.4% 21.2%
Building and office
equipment rents 2,336 0.9% 1,863 0.9% 25.4%
Miscellaneous expenses,
net 3,559 1.3% 1,071 0.5% 232.3%
Total operating
expenses 239,081 90.4% 183,228 90.6% 30.5%
Operating income 25,265 9.6% 18,901 9.4% 33.7%
Other deductions:
Interest expense, net 1,705 0.7% 1,393 0.7% 22.4%
Other expense, net 250 0.1% 211 0.1% 18.5%
Income before income
taxes 23,310 8.8% 17,297 8.6% 34.8%
Provision for income
taxes 9,394 3.5% 6,836 3.4% 37.4%
Net income $ 13,916 5.3% $ 10,461 5.2% 33.0%
======== ========
Earnings per share:
Basic $ 0.56 $ 0.43 30.2%
Diluted $ 0.56 $ 0.43 30.2%
Weighted average outstanding
shares:
Basic 24,845 24,094 3.1%
Diluted 24,855 24,112 3.1%
Year To Date
--------------------------------------------
2005 2004 %Chg.
----------------- ----------------- --------
Revenue $501,116 100.0% $384,898 100.0% 30.2%
Operating expenses:
Salaries, wages &
benefits 277,857 55.4% 223,720 58.1% 24.2%
Operating supplies &
expenses 70,698 14.1% 43,814 11.4% 61.4%
General supplies &
expenses 16,032 3.2% 13,596 3.5% 17.9%
Operating taxes &
licenses 18,865 3.8% 14,979 3.9% 25.9%
Insurance & claims 16,315 3.2% 12,692 3.3% 28.5%
Communications &
utilities 6,380 1.3% 5,291 1.4% 20.6%
Depreciation &
amortization 25,998 5.2% 21,502 5.6% 20.9%
Purchased transportation 17,239 3.4% 13,240 3.4% 30.2%
Building and office
equipment rents 4,433 0.9% 3,693 1.0% 20.0%
Miscellaneous expenses,
net 4,798 1.0% 2,569 0.7% 86.8%
Total operating
expenses 458,615 91.5% 355,096 92.3% 29.2%
Operating income 42,501 8.5% 29,802 7.7% 42.6%
Other deductions:
Interest expense, net 3,138 0.6% 2,763 0.7% 13.6%
Other expense, net 403 0.1% 378 0.1% 6.6%
Income before income
taxes 38,960 7.8% 26,661 6.9% 46.1%
Provision for income
taxes 15,701 3.2% 10,488 2.7% 49.7%
Net income $ 23,259 4.6% $ 16,173 4.2% 43.8%
======== ========
Earnings per share:
Basic $ 0.94 $ 0.67 40.3%
Diluted $ 0.94 $ 0.67 40.3%
Weighted average outstanding
shares:
Basic 24,845 24,091 3.1%
Diluted 24,855 24,111 3.1%
Second Quarter
----------------------------------------
Operating Statistics 2005 2004 % Chg.
----------------------------------------------------------------------
((a) In thousands)
Operating ratio 90.4% 90.6% (0.2%)
Intercity miles (a) 64,997 53,990 20.4%
LTL tons (a) 793 643 23.3%
Total tons (a) 1,062 897 18.4%
LTL shipments (a) 1,448 1,210 19.7%
Total shipments (a) 1,479 1,238 19.5%
Percent LTL revenue 91.0% 90.5% 0.6%
Revenue per intercity
mile $ 4.07 $ 3.74 8.8%
LTL rev/LTL cwt $ 15.17 $ 14.23 6.6%
LTL rev/LTL cwt less FSC $ 13.75 $ 13.42 2.5%
LTL rev/LTL shp $ 166.17 $ 151.17 9.9%
LTL rev/LTL shp less FSC $ 150.62 $ 142.52 5.7%
LTL weight per LTL
shipment 1,095 1,062 3.1%
Average length of haul 921 937 (1.7%)
Year to Date
----------------------------------------
Operating Statistics 2005 2004 % Chg.
----------------------------------------------------------------------
((a) In thousands)
Operating ratio 91.5% 92.3% (0.9%)
Intercity miles (a) 126,525 104,156 21.5%
LTL tons (a) 1,517 1,239 22.4%
Total tons (a) 2,032 1,725 17.8%
LTL shipments (a) 2,803 2,356 19.0%
Total shipments (a) 2,862 2,410 18.8%
Percent LTL revenue 91.0% 90.8% 0.2%
Revenue per intercity
mile $ 3.96 $ 3.70 7.0%
LTL rev/LTL cwt $ 15.03 $ 14.09 6.7%
LTL rev/LTL cwt less FSC $ 13.72 $ 13.35 2.8%
LTL rev/LTL shp $ 162.74 $ 148.25 9.8%
LTL rev/LTL shp less FSC $ 148.51 $ 140.39 5.8%
LTL weight per LTL
shipment 1,083 1,052 2.9%
Average length of haul 929 945 (1.7%)
June 30, December 31,
Balance Sheets 2005 2004
----------------------------------------------------------------------
(In thousands)
Current assets $ 155,704 $ 127,381
Net property and equipment 431,201 363,268
Other assets 23,764 18,928
------------------- --------------------
Total assets $ 610,669 $ 509,577
=================== ====================
Current maturities of
long-term debt $ 19,451 $ 22,030
Other current liabilities 100,508 76,634
------------------- --------------------
Total current liabilities 119,959 98,664
Long-term debt 111,557 57,424
Other non-current liabilities 64,366 61,961
------------------- --------------------
Total liabilities 295,882 218,049
Equity 314,787 291,528
------------------- --------------------
Total liabilities & equity $ 610,669 $ 509,577
=================== ====================
Notes: Financial and operating data are unaudited
LTL is less than 10,000 lbs.
