Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today reported certain
less-than-truckload (“LTL”) operating metrics for May 2019. Revenue per
day increased 4.2% as compared to May 2018 due to an increase in LTL
revenue per hundredweight that was partially offset by a 5.8% decrease
in LTL tons per day. The change in LTL tons per day was attributable to
a 4.0% decrease in LTL weight per shipment and a 1.9% decrease in LTL
shipments. For the quarter-to-date period, LTL revenue per
hundredweight increased 10.4% as compared to the same period last year.
Greg C. Gantt, President and Chief Executive Officer of Old Dominion,
commented, “Our revenue growth has remained relatively consistent
throughout the second quarter. While our LTL shipments per day were down
as compared to May 2018, we were pleased to see the continued
improvement in our yield and general stability of industry pricing. We
will continue to focus on delivering superior service at a fair price to
our customers in order to support our yield management initiatives,
despite the year-over-year decrease in volumes. We expect that the
delivery of this value proposition, and the consistent execution of our
long-term strategic plan, will allow us to win additional market share
and increase shareholder value over the long term.”
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, which could negatively impact our
total overall pricing strategy and our ability 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 diesel 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 our ability to successfully consummate and integrate
any acquisitions; (5) changes in our goals and strategies, which are
subject to revision at any time at our discretion; (6) various economic
factors such as recessions, downturns in the economy, global uncertainty
and instability, changes in international trade policies, changes in
U.S. social, political, and regulatory conditions or a disruption of
financial markets, which may decrease demand for our services or
increase our costs; (7) the impact of changes in tax laws, rates,
guidance and interpretations, including those related to certain
provisions of the Tax Cuts and Jobs Act; (8) increases in driver and
maintenance technician compensation or difficulties attracting and
retaining qualified drivers and maintenance technicians to meet freight
demand; (9) 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 or deductible levels and
claims in excess of insured coverage levels; (10) cost increases
associated with employee benefits, including costs associated with
employee healthcare plans; (11) the availability and cost of capital for
our significant ongoing cash requirements; (12) the availability and
cost of new equipment and replacement parts, including regulatory
changes and supply constraints that could impact the cost of these
assets; (13) decreases in demand for, and the value of, used equipment;
(14) the availability and cost of diesel fuel; (15) 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; (16) the costs and potential liabilities related
to various legal proceedings and claims that have arisen in the ordinary
course of our business, some of which include class-action allegations;
(17) the costs and potential liabilities related to governmental
proceedings, inquiries, notices or investigations; (18) the costs and
potential liabilities related to our international business
relationships; (19) the costs and potential adverse impact of compliance
with, or violations of, current and future rules issued by the
Department of Transportation, the Federal Motor Carrier Safety
Administration (the “FMCSA”) and other regulatory agencies; (20) the
costs and potential adverse impact of compliance associated with FMCSA’s
electronic logging device (“ELD”) regulations and guidance, including
the transition of our fleet and safety management systems from our
legacy electronic automatic on-board recording devices to a new ELD
hardware and software platform; (21) seasonal trends in the
less-than-truckload industry, including harsh weather conditions and
disasters; (22) our ability to retain our key employees and continue to
effectively execute our succession plan; (23) the concentration of our
stock ownership with the Congdon family; (24) the costs and potential
adverse impact associated with future changes in accounting standards or
practices; (25) potential costs and liabilities associated with cyber
incidents and other risks with respect to our systems and networks or
those of our third-party service providers, including system failure,
security breach, disruption by malware or ransomware or other damage;
(26) failure to comply with data privacy, security or other laws and
regulations; (27) failure to keep pace with developments in technology,
any disruption to our technology infrastructure, or failures of
essential services upon which our technology platforms rely, which could
cause us to incur costs or result in a loss of business; (28) the costs
and potential adverse impact associated with transitional challenges in
upgrading or enhancing our technology systems; (29) damage to our
reputation through unfavorable perceptions or publicity, including those
related to environmental, social and governance issues, cybersecurity
and data privacy concerns; (30) the costs and potential adverse impact
of compliance with anti-terrorism measures on our business; (31)
dilution to existing shareholders caused by any issuance of additional
equity; (32) the impact of a quarterly cash dividend or the failure to
declare future cash dividends; (33) recent and future volatility in the
market value of our common stock; (34) the impact of certain provisions
in our articles of incorporation, bylaws, and Virginia law that could
discourage, delay or prevent a change in control of us or a change in
our management; and (35) other risks and uncertainties described in our
most recent Annual Report on Form 10-K and other filings with the SEC.
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 as (i) 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 services through a single integrated organization. Our
service offerings, which include expedited transportation, are provided
through an expansive network of service centers located throughout the
continental United States. Through strategic alliances, the Company also
provides LTL services throughout North America. In addition to its core
LTL services, the Company offers a range of value-added services
including container drayage, truckload brokerage and supply chain
consulting.
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