Old Dominion Freight Line Reports Record Third-Quarter Results

  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
 
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