Old Dominion Freight Line Reports First Quarter 2024 Earnings Per Diluted Share of $1.34
All prior-period share and per share data in this release have been adjusted to reflect the Company's
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Three Months Ended |
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(In thousands, except per share amounts) |
2024 |
|
|
2023 |
|
|
% Chg. |
|
|||
Total revenue |
$ |
1,460,073 |
|
|
$ |
1,442,136 |
|
|
1.2 |
% |
|
LTL services revenue |
$ |
1,446,733 |
|
|
$ |
1,424,372 |
|
|
|
1.6 |
% |
Other services revenue |
$ |
13,340 |
|
|
$ |
17,764 |
|
|
|
(24.9 |
)% |
Operating income |
$ |
386,426 |
|
|
$ |
383,049 |
|
|
0.9 |
% |
|
Operating ratio |
|
73.5 |
% |
|
|
73.4 |
% |
|
|
||
Net income |
$ |
292,304 |
|
|
$ |
285,038 |
|
|
|
2.5 |
% |
Diluted earnings per share |
$ |
1.34 |
|
|
$ |
1.29 |
|
|
|
3.9 |
% |
Diluted weighted average shares outstanding |
|
218,808 |
|
|
|
221,358 |
|
|
(1.2 |
)% |
“Revenue for the first quarter included a 4.1% increase in LTL revenue per hundredweight that was partially offset by a 3.2% decrease in LTL tons per day. The decrease in LTL tons per day reflects a 2.7% decrease in LTL weight per shipment and a 0.5% decrease in LTL shipments per day. Excluding fuel surcharges, LTL revenue per hundredweight increased 6.7% as compared to the first quarter of 2023. This yield improvement reflects our continued focus on revenue quality and our consistent, long-term approach to pricing, which is designed to offset our cost inflation while also supporting further investments in capacity and technology.
“Our first quarter operating ratio increased 10 basis points to 73.5% as compared to the first quarter of 2023. We improved our direct operating costs as a percent of revenue as a result of the increase in yield and our ongoing focus on operating efficiencies. Our overhead costs, however, increased as a percent of revenue in part due to a 50-basis point increase in our depreciation costs. The increase in depreciation reflects our commitment to consistently execute on our long-term capital expenditure strategy to support our customers’ needs and to achieve our long-term market share initiatives.”
Cash Flow and Use of Capital
Old Dominion’s net cash provided by operating activities was
Capital expenditures were
Old Dominion continued to return capital to shareholders during the first quarter of 2024 through its share repurchase and dividend programs. For the quarter, the cash utilized for shareholder return programs included
Summary
Old Dominion will hold a conference call to discuss this release today at
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: (1) the challenges associated with executing our growth strategy, and developing, marketing and consistently delivering high-quality services that meet customer expectations; (2) changes in our relationships with significant customers; (3) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare, increased self-insured retention or deductible levels or premiums for excess coverage, and claims in excess of insured coverage levels; (4) reductions in the available supply or increases in the cost of equipment and parts; (5) various economic factors such as inflationary pressures or downturns in the domestic economy, and our inability to sufficiently increase our customer rates to offset the increase in our costs; (6) higher costs for or limited availability of suitable real estate; (7) the availability and cost of third-party transportation used to supplement our workforce and equipment needs; (8) fluctuations in the availability and price of diesel fuel and our ability to collect fuel surcharges, as well as the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (9) seasonal trends in the less-than-truckload (“LTL”) industry, harsh weather conditions and disasters; (10) the availability and cost of capital for our significant ongoing cash requirements; (11) decreases in demand for, and the value of, used equipment; (12) our ability to successfully consummate and integrate acquisitions; (13) various risks arising from our international business relationships; (14) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (15) the competitive environment with respect to our industry, including pricing pressures; (16) our customers’ and suppliers’ businesses may be impacted by various economic factors such as recessions, inflation, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in
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Statements of Operations |
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First Quarter |
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(In thousands, except per share amounts) |
2024 |
|
2023 |
||||||||||
Revenue |
$ |
1,460,073 |
|
|
100.0 |
% |
|
$ |
1,442,136 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||
Salaries, wages & benefits |
|
668,390 |
|
|
45.8 |
% |
|
|
652,075 |
|
|
45.2 |
% |
Operating supplies & expenses |
|
172,472 |
|
|
11.8 |
% |
|
|
192,384 |
|
|
13.3 |
% |
General supplies & expenses |
|
45,576 |
|
|
3.1 |
% |
|
|
39,545 |
|
|
2.7 |
% |
Operating taxes & licenses |
|
35,838 |
|
|
2.5 |
% |
|
|
36,701 |
|
|
2.6 |
% |
Insurance & claims |
|
18,194 |
|
|
1.2 |
% |
|
|
16,028 |
|
|
1.1 |
% |
Communications & utilities |
|
10,995 |
|
|
0.7 |
% |
|
|
11,017 |
|
|
0.8 |
% |
Depreciation & amortization |
|
84,531 |
|
|
5.8 |
% |
|
|
75,947 |
|
|
5.3 |
% |
Purchased transportation |
|
30,710 |
|
|
2.1 |
% |
|
|
30,615 |
|
|
2.1 |
% |
Miscellaneous expenses, net |
|
6,941 |
|
|
0.5 |
% |
|
|
4,775 |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Total operating expenses |
|
1,073,647 |
|
|
73.5 |
% |
|
|
1,059,087 |
|
|
73.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
386,426 |
|
|
26.5 |
% |
|
|
383,049 |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Non-operating (income) expense: |
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
37 |
|
|
0.0 |
% |
|
|
200 |
|
|
0.0 |
% |
Interest income |
|
(7,372 |
) |
|
(0.5 |
)% |
|
|
(2,811 |
) |
|
(0.2 |
)% |
Other expense, net |
|
879 |
|
|
0.1 |
% |
|
|
1,511 |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
392,882 |
|
|
26.9 |
% |
|
|
384,149 |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
100,578 |
|
|
6.9 |
% |
|
|
99,111 |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Net income |
$ |
292,304 |
|
|
20.0 |
% |
|
$ |
285,038 |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
1.34 |
|
|
|
|
$ |
1.30 |
|
|
|
||
Diluted |
$ |
1.34 |
|
|
|
|
$ |
1.29 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Weighted average outstanding shares: |
|
|
|
|
|
|
|
|
|
||||
Basic |
|
217,594 |
|
|
|
|
|
219,912 |
|
|
|
||
Diluted |
|
218,808 |
|
|
|
|
|
221,358 |
|
|
|
|
|
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Operating Statistics |
|
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|
|
|
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|
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|
|||
|
First Quarter |
|
|||||||||
|
2024 |
|
|
2023 |
|
|
% Chg. |
|
|||
Work days |
|
64 |
|
|
|
64 |
|
|
|
— |
% |
Operating ratio |
|
73.5 |
% |
|
|
73.4 |
% |
|
|
|
|
LTL tons (1) |
|
2,264 |
|
|
|
2,339 |
|
|
|
(3.2 |
)% |
LTL tonnage per day |
|
35,380 |
|
|
|
36,540 |
|
|
|
(3.2 |
)% |
LTL shipments (1) |
|
3,004 |
|
|
|
3,018 |
|
|
|
(0.5 |
)% |
LTL shipments per day |
|
46,931 |
|
|
|
47,155 |
|
|
|
(0.5 |
)% |
LTL revenue per hundredweight |
$ |
31.98 |
|
|
$ |
30.71 |
|
|
|
4.1 |
% |
LTL revenue per hundredweight, excluding fuel surcharges |
$ |
26.78 |
|
|
$ |
25.09 |
|
|
|
6.7 |
% |
LTL revenue per shipment |
$ |
482.24 |
|
|
$ |
475.88 |
|
|
|
1.3 |
% |
LTL revenue per shipment, excluding fuel surcharges |
$ |
403.71 |
|
|
$ |
388.82 |
|
|
|
3.8 |
% |
LTL weight per shipment (lbs.) |
|
1,508 |
|
|
|
1,550 |
|
|
|
(2.7 |
)% |
Average length of haul (miles) |
|
919 |
|
|
|
925 |
|
|
|
(0.6 |
)% |
Average active full-time employees |
|
22,891 |
|
|
|
22,971 |
|
|
|
(0.3 |
)% |
(1) - |
|
In thousands |
Note: |
|
Our LTL operating statistics exclude certain transportation and logistics services where pricing is generally not determined by weight. These statistics also exclude adjustments to revenue for undelivered freight required for financial statement purposes in accordance with our revenue recognition policy. |
|
|
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Balance Sheets |
|
||||||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
(In thousands) |
2024 |
|
|
2023 |
|
||
Cash and cash equivalents |
$ |
580,974 |
|
|
$ |
433,799 |
|
Other current assets |
|
682,686 |
|
|
|
709,534 |
|
Total current assets |
|
1,263,660 |
|
|
|
1,143,333 |
|
Net property and equipment |
|
4,128,101 |
|
|
|
4,095,405 |
|
Other assets |
|
259,595 |
|
|
|
273,655 |
|
Total assets |
$ |
5,651,356 |
|
|
$ |
5,512,393 |
|
|
|
|
|
|
|
||
Current maturities of long-term debt |
$ |
20,000 |
|
|
$ |
20,000 |
|
Other current liabilities |
|
530,674 |
|
|
|
524,658 |
|
Total current liabilities |
|
550,674 |
|
|
|
544,658 |
|
Long-term debt |
|
59,980 |
|
|
|
59,977 |
|
Other non-current liabilities |
|
639,065 |
|
|
|
649,947 |
|
Total liabilities |
|
1,249,719 |
|
|
|
1,254,582 |
|
Equity |
|
4,401,637 |
|
|
|
4,257,811 |
|
Total liabilities & equity |
$ |
5,651,356 |
|
|
$ |
5,512,393 |
|
Note: The financial and operating statistics in this press release are unaudited. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424687040/en/
Executive Vice President and
Chief Financial Officer
(336) 822-5721
Source: