Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced that its
Board of Directors has approved a stock repurchase program authorizing
Old Dominion to repurchase up to $200 million of its outstanding common
stock over the next 24 months.
Under the program authorized by its Board of Directors, Old Dominion may
repurchase shares from time to time in open-market purchases or through
privately negotiated transactions. The extent to which Old Dominion
repurchases its shares and the timing of such repurchases will depend
upon market conditions and other corporate considerations, as determined
by Old Dominion’s management team. The repurchase program does not
obligate Old Dominion to repurchase any number of shares and may be
suspended or discontinued at any time.
David S. Congdon, President and Chief Executive Officer of Old Dominion,
commented, “Our management team and Board of Directors believe that Old
Dominion is well-positioned to achieve further profitable growth while
also generating significant cash flow from operations. As a result, we
expect our financial position to continue to improve despite the
significant capital expenditures that may be necessary to continue to
grow our business. We believe that the combination of our long-term
growth opportunities and the financial strength required to initiate
this stock repurchase program further demonstrates our ability to
increase shareholder value.”
Forward-Looking Statements
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
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 any acquisitions; (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, group health and group dental, including
increased premiums, adverse loss development, increased self-insured
retention levels, and claims in excess of insured coverage levels; (9)
potential cost increases associated with healthcare legislation; (10)
the availability and cost of capital for our significant ongoing cash
requirements; (11) the availability and cost of new equipment and
replacement parts, including regulatory changes and supply constraints
that could impact the cost of these assets; (12) decreases in demand
for, and the value of, used equipment; (13) the availability and cost of
diesel fuel; (14) 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; (15) the costs and
potential liabilities related to litigation and governmental
proceedings; (16) various risks arising from our international business
operations and relationships; (17) the costs and potential adverse
impact of non-compliance with rules issued by the Federal Motor Carrier
Safety Administration, including its Compliance, Safety, Accountability
initiative; (18) seasonal trends in the less-than-truckload industry,
including harsh weather conditions; (19) our dependence on key
employees; (20) the concentration of our stock ownership with the
Congdon family; (21) the costs and potential adverse impact associated
with future changes in accounting standards or practices; (22) the
impact of potential disruptions to our information technology systems or
our service center network; (23) damage to our reputation from the
misuse of social media; (24) dilution to existing shareholders caused by
any issuance of additional equity; and (25) other risks and
uncertainties described in our most recent Annual Report on Form 10-K
and other 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.
About Old Dominion
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 other logistics services from a single
integrated organization. In addition to its core LTL services, the
Company offers its customers a broad range of value-added services
including international freight forwarding, ground and air expedited
transportation, container delivery, truckload brokerage, supply chain
consulting, warehousing and consumer household pickup and delivery.
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