Old Dominion Freight Line Reports Record Third-Quarter Results Operating Ratio Improves 110 Basis Points to 85.1% Business Wire THOMASVILLE, N.C. -- October 25, 2012 Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced Company record third-quarter financial results for the three and nine months ended September 30, 2012. Revenue increased 10.1% to $544.5 million for the third quarter from $494.5 million for the third quarter of 2011. Net income for the third quarter was $51.0 million, an increase of 32.1% from $38.6 million for the third quarter last year. Net income per diluted share for the third quarter was $0.59, an increase of 31.1% from $0.45 for the same period last year. Old Dominion's operating ratio improved to 85.1% for the third quarter of 2012 from 86.2% for the third quarter of 2011. All prior-period share and per share data in this release have been adjusted to reflect the Company's September 2012 three-for-two stock split. For the first nine months of 2012, revenue was $1.58 billion, an increase of 13.3% from $1.40 billion for the first nine months of 2011. Net income grew 30.5% to $130.0 million for the first nine months of 2012 from $99.6 million for the same period in 2011, while earnings per diluted share increased 30.2% to $1.51 from $1.16. The Company's operating ratio improved to 86.2% for the first nine months of 2012 from 87.8% for the comparable prior-year period. David S. Congdon, President and Chief Executive Officer of Old Dominion, commented, “Old Dominion continued to produce outstanding operating and financial results during the third quarter, as we achieved third-quarter records for our revenue, operating ratio and earnings per diluted share. We believe these results were generated, despite weak economic conditions, through the strength of our value proposition, which consists of providing on-time and claims-free service at a fair and equitable price. As a result, we continue to win market share and increase the density within our service center network, which allows us to produce strong profitable growth. “Our total tons per day increased 6.9% during the third quarter of 2012, which included one less operating day than the same period of the prior year. Although the third quarter included one less day, total tons increased 5.3% on a 5.1% increase in shipments and a 0.2% increase in weight per shipment. We believe the quality of our service has not only contributed to the increase in tons and market share but has also supported our ability to improve our pricing during 2012. As a result, revenue per hundredweight increased 4.2% from the third quarter last year, or 4.3% excluding fuel surcharges, despite the negative impact on revenue per hundredweight from the increase in weight per shipment and a 0.9% decrease in length of haul. “Our tonnage growth and the increase in revenue per hundredweight were primarily responsible for the 110 basis point improvement in our operating ratio to 85.1% for the third quarter. The increased tonnage provided additional freight density throughout our network, which contributed to lower incremental operating costs. In addition, our operations continue to be highly efficient while also delivering outstanding service. In the third quarter, we maintained our on-time delivery percentage at 99% and improved our cargo claims ratio to 0.45%, a seven basis point improvement as compared to the third quarter of 2011. We believe these metrics lead the LTL industry. “We opened four new service centers in the third quarter - Orange, CA; Pensacola, FL; Duluth, MN; and Parkersburg, WV - bringing our total centers in operation to 219 at the end of the quarter. Capital expenditures were $99.6 million and $309.7 million for the third quarter and first nine months of 2012, respectively. We anticipate that our capital expenditures in 2012 will range between $345 million to $355 million. This estimate includes $120 million to $130 million for real estate purchases and expansion projects at existing facilities, $210 million for the purchase of tractors, trailers and other equipment and $15 million for investments in technology. We have funded the majority of our 2012 capital expenditures with cash flow from operations and existing cash and cash equivalents and expect to do the same in the fourth quarter. Our ratio of total debt to capitalization was stable at 22.3% at the end of both the third and second quarters of 2012, but improved from 24.5% at the end of the third quarter of 2011.” Mr. Congdon concluded, “In a market environment made uncertain by slow-paced economic growth and the upcoming national elections, we continue to win additional market share and produce profitable results. We will maintain our promise to give customers superior service at a fair and equitable price, which has enabled us to outperform the industry throughout the economic cycle. We will also continue to invest in our service center network, our technology and, most importantly, our people. By staying true to these core guiding principles, we believe we can further differentiate ourselves in the marketplace and drive long-term profitable growth for Old Dominion.” Old Dominion will hold a conference call to discuss this release today at 10:00 a.m. Eastern Daylight Time. Investors will have the opportunity to listen to the conference call live over the Internet by going to www.odfl.com. Please log on 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 this website shortly after the call through November 10, 2012. A telephonic replay will also be available through November 10, 2012 at (719) 457-0820, Confirmation Number 9696245. 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, including the use of fuel surcharges, such that our total overall pricing is sufficient 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 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 the inability to successfully consummate and integrate acquisitions, if any; (5) changes in our goals and strategies, which are subject to change at any time at our discretion; (6) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (7) increases in driver compensation or difficulties attracting and retaining qualified drivers to meet freight demand; (8) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers' compensation, long-term disability and group health, including increased premiums, adverse loss development, increased self-insured retention levels, and claims in excess of coverage levels; (9) the availability and cost of capital for our significant ongoing cash requirements; (10) the availability and cost of replacement parts and new equipment, particularly in light of regulatory changes and supply constraints impacting the cost of these assets; (11) decreases in demand for, and the value of, used equipment; (12) the availability and cost of diesel fuel; (13) 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; (14) the costs and potential adverse impact of non-compliance with rules issued by the safety monitoring system of the Federal Motor Carrier Safety Administration; (15) seasonal trends in the industry, including the possibility of harsh weather conditions; (16) our dependence on key employees; (17) the concentration of our stock ownership with the Congdon family; (18) the costs and potential adverse impact associated with potential future changes in accounting standards or practices; (19) the impact caused by potential disruptions to our information technology systems or our service center network; (20) dilution to existing shareholders caused by any issuance of additional equity; and (21) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission. 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 (i)as 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 service and value-added logistics services. In addition to its core LTL services, the Company offers its customers a broad range of logistics services including ground and air expedited transportation, supply chain consulting, transportation management, truckload brokerage, container delivery and warehousing services, as well as consumer household pickup and delivery services. Through marketing and carrier relationships, the Company also offers door-to-door international freight services to and from all of North America, Central America, South America and the Far East. OLD DOMINION FREIGHT LINE, INC. Financial Highlights (Dollars in thousands, except per share amounts) Three Months Ended Nine Months Ended % % September 30, September 30, 2012 2011 Chg. 2012 2011 Chg. Revenue $ 544,493 $ 494,475 10.1 % $ 1,583,138 $ 1,397,409 13.3 % Operating $ 80,932 $ 68,194 18.7 % $ 217,738 $ 170,760 27.5 % income Operating 85.1 % 86.2 % 86.2 % 87.8 % ratio Net income $ 51,044 $ 38,631 32.1 % $ 129,971 $ 99,587 30.5 % Basic and diluted $ 0.59 $ 0.45 31.1 % $ 1.51 $ 1.16 30.2 % earnings per share Basic and diluted weighted 86,165 86,165 0.0 % 86,165 85,571 0.7 % average shares outstanding OLD DOMINION FREIGHT LINE, INC. Statements of Operations (In thousands, except per share amounts) Third Quarter Year To Date 2012 2011 2012 2011 Revenue $ 544,493 100.0 % $ 494,475 100.0 % $ 1,583,138 100.0 % $ 1,397,409 100.0 % Operating expenses: Salaries, wages & 270,907 49.8 % 247,157 50.0 % 797,398 50.4 % 708,031 50.7 % benefits Operating supplies & 94,732 17.4 % 91,421 18.4 % 282,639 17.9 % 264,751 18.9 % expenses General supplies & 14,507 2.7 % 12,648 2.6 % 44,596 2.8 % 37,415 2.7 % expenses Operating taxes & 17,182 3.2 % 16,128 3.3 % 50,683 3.2 % 47,547 3.4 % licenses Insurance & 8,336 1.5 % 8,154 1.6 % 23,671 1.5 % 22,875 1.6 % claims Communications 5,003 0.9 % 4,518 0.9 % 14,556 0.9 % 13,501 1.0 % & utilities Depreciation & 28,727 5.3 % 23,396 4.7 % 80,795 5.1 % 66,530 4.8 % amortization Purchased 18,234 3.3 % 16,628 3.4 % 53,110 3.4 % 47,696 3.4 % transportation Building and office 3,393 0.6 % 3,412 0.7 % 10,118 0.6 % 10,299 0.7 % equipment rents Miscellaneous 2,540 0.4 % 2,819 0.6 % 7,834 0.4 % 8,004 0.6 % expenses, net Total operating 463,561 85.1 % 426,281 86.2 % 1,365,400 86.2 % 1,226,649 87.8 % expenses Operating 80,932 14.9 % 68,194 13.8 % 217,738 13.8 % 170,760 12.2 % income Non-operating expense (income): Interest 2,882 0.5 % 3,397 0.7 % 8,786 0.6 % 10,737 0.8 % expense Interest (22 ) (0.0 )% (3 ) (0.0 )% (107 ) (0.0 )% (36 ) (0.0 )% income Other (income) (289 ) (0.0 )% 1,678 0.3 % 240 0.0 % 622 0.0 % expense, net Income before 78,361 14.4 % 63,122 12.8 % 208,819 13.2 % 159,437 11.4 % income taxes Provision for 27,317 5.0 % 24,491 5.0 % 78,848 5.0 % 59,850 4.3 % income taxes Net income $ 51,044 9.4 % $ 38,631 7.8 % $ 129,971 8.2 % $ 99,587 7.1 % Earnings per share: Basic and $ 0.59 $ 0.45 $ 1.51 $ 1.16 Diluted Weighted average outstanding shares: Basic and 86,165 86,165 86,165 85,571 Diluted OLD DOMINION FREIGHT LINE, INC. Operating Statistics Third Quarter Year to Date 2012 2011 % Chg. 2012 2011 % Chg. Work days 63 64 (1.6 )% 191 192 (0.5 )% Operating 85.1 % 86.2 % (1.3 )% 86.2 % 87.8 % (1.8 )% ratio Intercity 108,961 101,590 7.3 % 315,976 289,807 9.0 % miles ^(1) Total tons ^ 1,756 1,668 5.3 % 5,194 4,799 8.2 % (1) Total shipments ^ 1,996 1,900 5.1 % 5,872 5,454 7.7 % (1) Revenue per intercity $ 5.00 $ 4.87 2.7 % $ 5.01 $ 4.82 3.9 % mile Revenue per hundredweight $ 15.44 $ 14.82 4.2 % $ 15.25 $ 14.62 4.3 % ^ (2) Revenue per hundredweight excluding $ 12.90 $ 12.37 4.3 % $ 12.72 $ 12.23 4.0 % fuel surcharges ^ (2) Revenue per shipment ^ $ 271.60 $ 260.33 4.3 % $ 269.70 $ 257.34 4.8 % (2) Revenue per shipment excluding $ 226.95 $ 217.25 4.5 % $ 224.96 $ 215.19 4.5 % fuel surcharges ^ (2) Weight per shipment 1,759 1,756 0.2 % 1,769 1,760 0.5 % (lbs.) Average length of 939 948 (0.9 )% 941 954 (1.4 )% haul (miles) (1) - In thousands For statistical purposes only, revenue does not include adjustments (2) - for undelivered freight required for financial statement purposes in accordance with the Company's revenue recognition policy. OLD DOMINION FREIGHT LINE, INC. Balance Sheets September 30, December 31, (In thousands) 2012 2011 Cash and cash equivalents $ 6,902 $ 75,850 Other current assets 298,837 256,002 Total current assets 305,739 331,852 Net property and equipment 1,351,358 1,126,950 Other assets 57,525 54,272 Total assets $ 1,714,622 $ 1,513,074 Current maturities of long-term debt $ 39,314 $ 39,354 Other current liabilities 198,314 165,456 Total current liabilities 237,628 204,810 Long-term debt 243,497 229,831 Other non-current liabilities 247,009 221,914 Total liabilities 728,134 656,555 Equity 986,488 856,519 Total liabilities & equity $ 1,714,622 $ 1,513,074 Note: The financial and operating statistics in this release are unaudited. Contact: Old Dominion Freight Line, Inc. J. Wes Frye, 336-822-5305 Senior Vice President, Finance and Chief Financial Officer
Old Dominion Freight Line Reports Record Third-Quarter Results
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