Outdated Dominion Freight Line Experiences Fourth Quarter 2020 Earnings Per Diluted Share Of $1.61
THOMASVILLE, N.C., February 4, 2021 (BUSINESS WIRE) —
Outdated Dominion Freight Line, Inc. (Nasdaq: ODFL) at this time introduced monetary outcomes for the three-month and twelve-month durations ended December 31, 2020. The monetary outcomes for the fourth quarter of 2020 embrace $9.6 million of expense associated to particular worker bonus funds made in December. These bonus funds have been supplied to non-executive staff in appreciation for his or her extraordinary efforts to offer superior customer support in the course of the tough working circumstances created by the COVID-19 pandemic.
All prior-period share and per share knowledge on this launch have been adjusted to mirror the Firm’s March 2020 three-for-two inventory cut up.
Three Months Ended Twelve Months Ended
December 31, December 31,
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(In hundreds, besides per share quantities) 2020 2019 % Chg. 2020 2019 % Chg.
------------------------------------------- ------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------------------ -------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------------------ --------------------
Complete income $ 1,073,389 $ 1,009,206 6.4 % $ 4,015,129 $ 4,109,111 (2.3 )%
$ 1,057,914 $ 996,603 6.2 % $ 3,961,054 $ 4,055,467 (2.3 )%
LTL providers income
$ 15,475 $ 12,603 22.8 % $ 54,075 $ 53,644 0.8 %
Different providers income
Working revenue $ 254,302 $ 188,264 35.1 % $ 906,882 $ 818,706 10.8 %
Working ratio 76.3 % 81.3 % 77.4 % 80.1 %
Web revenue $ 189,832 $ 144,024 31.8 % $ 672,682 $ 615,518 9.3 %
Diluted earnings per share $ 1.61 $ 1.20 34.2 % $ 5.68 $ 5.10 11.4 %
Diluted weighted common shares excellent 117,887 119,799 (1.6 )% 118,493 120,610 (1.8 )%
Greg C. Gantt, President and Chief Govt Officer of Outdated Dominion, commented, “Outdated Dominion’s fourth quarter monetary outcomes embrace a 6.4% improve in income and 34.2% improve in earnings per diluted share. The acceleration in our income progress in the course of the fourth quarter was pushed by an enhancing home financial system and elevated demand for our industry-leading service. As well as, our constant and long-term investments in service facilities and tools supplied us with community capability at a time when capability inside the transportation {industry} was typically restricted. We have been happy to complete 2020 with robust monetary outcomes and consider the mixture of our price proposition and obtainable capability place us to win extra market share in 2021.
“The Firm’s income elevated 6.4% within the fourth quarter primarily as a consequence of a 4.9% improve in LTL tons and a 1.1% improve in LTL income per hundredweight. Our yield metrics have been negatively affected by the lower within the common worth of diesel gas, as LTL income per hundredweight, excluding gas surcharges, elevated 4.2% when in comparison with the fourth quarter of 2019. The continuing and constant enchancment on this yield metric is supported by the standard of our service and displays our long-term pricing philosophy. We consider a constant enchancment in yield is critical to offset our value inflation whereas additionally supporting additional investments in capability and applied sciences which can be designed to enhance working efficiencies and customer support.
“Our working ratio improved to 76.3%, which was a brand new fourth-quarter Firm file. This enchancment was achieved by means of high quality income progress and elevated working efficiencies. The working leverage created by the will increase in each freight density and yield allowed us to enhance lots of our value classes as a % of income. We did expertise a 90 foundation level improve in bought transportation prices as a % of income, nevertheless, as we used these providers to complement our workforce within the fourth quarter to help accelerating volumes. Our crew effectively dealt with the rise in volumes whereas additionally delivering on-time service of 99% and a traditionally low cargo claims ratio of 0.1% in the course of the quarter.”
Money Move and Use of Capital
Outdated Dominion’s web money supplied by working actions was $246.6 million for the fourth quarter of 2020 and $933.0 million for the 12 months. The Firm had $401.4 million in money and money equivalents at December 31, 2020.
Capital expenditures have been $58.6 million for the fourth quarter of 2020 and $225.1 million for the 12 months. The Firm expects its mixture capital expenditures for 2021 to complete roughly $605 million, together with deliberate expenditures of $275 million for actual property and repair middle growth tasks; $290 million for tractors and trailers; and $40 million for info expertise and different property.
Outdated Dominion returned $74.8 million of capital to its shareholders within the fourth quarter of 2020 and $435.1 million for the 12 months. The 2020 complete consisted of $364.1 million of share repurchases and $71.0 million of money dividends.
Enhance to Quarterly Money Dividend
The Firm’s Board of Administrators has declared a first-quarter dividend of $0.20 per share, payable on March 17, 2021, to shareholders of file on the shut of enterprise on March 3, 2021. After giving impact to the Firm’s March 2020 three-for-two inventory cut up, this dividend fee represents a 33.3% improve to the quarterly money dividend paid within the first quarter of 2020.
Abstract
Mr. Gantt concluded, “Outdated Dominion produced robust monetary outcomes for the fourth quarter because the working surroundings continued to enhance. Regardless of the challenges related to the COVID-19 pandemic and slight lower in our annual income, our annual outcomes embrace a Firm-record working ratio of 77.4% that contributed to the double-digit progress in earnings per diluted share. We consider these monetary outcomes mirror the constant execution of our long-term strategic plan that features our unwavering dedication to ship superior service at a good worth. As well as, we’ll proceed to put money into our service middle community, our expertise and, most significantly, our OD Household of staff to additional improve our price proposition and help alternatives for extra progress. We’re inspired by the enhancing demand surroundings and consider continued execution of our strategic plan will produce worthwhile progress and elevated shareholder worth in 2021.”
Outdated Dominion will maintain a convention name to debate this launch at this time at 10:00 a.m. Japanese Time. Traders may have the chance to hearken to the convention name dwell over the web by going to ir.odfl.com. Please go online a minimum of quarter-hour early to register, obtain and set up any essential audio software program. For individuals who can not hearken to the dwell broadcast, a replay will probably be obtainable at this web site shortly after the decision and will probably be obtainable for 30 days. A telephonic replay may also be obtainable by means of February 12, 2021, at (719) 457-0820, Affirmation Quantity 5798600.
Ahead-looking statements on this information launch are made pursuant to the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995. We warning the reader that such forward-looking statements contain dangers and uncertainties that might trigger precise occasions and outcomes to be materially totally different from these expressed or implied herein, together with, however not restricted to, the next, lots of which is able to proceed to be amplified by the present COVID-19 pandemic: (1) the aggressive surroundings with respect to {industry} capability and pricing, together with the usage of gas surcharges, which might negatively impression our complete total pricing technique and our potential to cowl our working bills; (2) our potential to gather gas surcharges and the effectiveness of these gas surcharges in mitigating the impression of fluctuating costs for diesel gas and different petroleum-based merchandise; (3) the destructive impression of any unionization, or the passage of laws or rules that might facilitate unionization, of our staff; (4) the challenges related to executing our progress technique, together with our potential to efficiently consummate and combine any acquisitions; (5) adjustments in our objectives and techniques, that are topic to revision at any time at our discretion; (6) varied financial elements equivalent to recessions, downturns within the financial system, world uncertainty and instability, adjustments in worldwide commerce insurance policies, adjustments in U.S. social, political, and regulatory circumstances or a disruption of economic markets, which can lower demand for our providers or improve our prices; (7) public well being points, equivalent to the present COVID-19 pandemic, which will negatively have an effect on the financial system; (8) adjustments in relationships with our important clients; (9) the impression of adjustments in tax legal guidelines, charges, steering and interpretations, together with these associated to sure provisions of the Tax Cuts and Jobs Act; (10) will increase in driver and upkeep technician compensation or difficulties attracting and retaining certified drivers and upkeep technicians to satisfy freight demand; (11) our publicity to claims associated to cargo loss and injury, property injury, private harm, employees’ compensation, group well being and group dental, together with elevated premiums, adversarial loss growth, elevated self-insured retention or deductible ranges and claims in extra of insured protection ranges; (12) value will increase related to worker advantages, together with prices related to worker healthcare plans; (13) the provision and price of capital for our important ongoing money necessities; (14) the provision and price of recent tools and alternative components, together with regulatory adjustments and provide constraints that might impression the price of these property; (15) decreases in demand for, and the worth of, used tools; (16) the provision and price of diesel gas; (17) the prices and potential liabilities associated to compliance with, or violations of, current or future governmental legal guidelines and rules, together with environmental legal guidelines, engine emissions requirements, hours-of-service for our drivers, driver health necessities and new security requirements for drivers and tools; (18) the prices and potential liabilities associated to numerous authorized proceedings and claims which have arisen within the strange course of our enterprise, a few of which embrace collective and/or class motion allegations; (19) the prices and potential liabilities associated to governmental proceedings, inquiries, notices or investigations; (20) the prices and potential liabilities associated to our worldwide enterprise relationships; (21) the prices and potential adversarial impression of compliance with, or violations of, present and future guidelines issued by the Division of Transportation, the Federal Motor Provider Security Administration (the “FMCSA”) and different regulatory companies; (22) the prices and potential adversarial impression of compliance related to FMCSA’s digital logging gadget (“ELD”) rules and steering, together with the operation of our fleet and security administration programs on the ELD {hardware} and software program platform; (23) seasonal developments within the less-than-truckload (“LTL”) {industry}, together with harsh climate circumstances and disasters; (24) our potential to retain our key staff and proceed to successfully execute our succession plan; (25) the focus of our inventory possession with the Congdon household; (26) the prices and potential adversarial impression related to future adjustments in accounting requirements or practices; (27) potential prices and liabilities related to cyber incidents and different dangers with respect to our programs and networks or these of our third-party service suppliers, together with system failure, safety breach, disruption by malware or ransomware or different injury; (28) failure to adjust to knowledge privateness, safety or different legal guidelines and rules; (29) failure to maintain tempo with developments in expertise, any disruption to our expertise infrastructure, or failures of important providers upon which our expertise platforms rely, which might trigger us to incur prices or end in a lack of enterprise; (30) the prices and potential adversarial impression related to transitional challenges in upgrading or enhancing our expertise programs; (31) authorized, regulatory or market responses to local weather change issues; (32) injury to our repute by means of unfavorable perceptions or publicity, together with these associated to environmental, social and governance points, cybersecurity and knowledge privateness issues; (33) failure to adapt to new applied sciences carried out by our rivals within the LTL and transportation {industry}; (34) the prices and potential adversarial impression of compliance with anti-terrorism measures on our enterprise; (35) dilution to current shareholders brought on by any issuance of extra fairness; (36) the impression of a quarterly money dividend or the failure to declare future money dividends; (37) fluctuations within the quantity and frequency of our inventory repurchases; (38) current and future volatility available in the market worth of our frequent inventory; (39) the impression of sure provisions in our articles of incorporation, bylaws, and Virginia legislation that might discourage, delay or stop a change accountable for us or a change in our administration; and (40) different dangers and uncertainties described in our most up-to-date Annual Report on Kind 10-Ok and different filings with the SEC. Our forward-looking statements are based mostly upon our beliefs and assumptions utilizing info obtainable on the time the statements are made. We warning the reader to not place undue reliance on our forward-looking statements as (i) these statements are neither a prediction nor a assure of future occasions or circumstances and (ii) the assumptions, beliefs, expectations and projections about future occasions might differ materially from precise outcomes. We undertake no obligation to publicly replace any forward-looking assertion to mirror developments occurring after the assertion is made, besides as in any other case required by legislation.
Outdated Dominion Freight Line, Inc. is a number one, less-than-truckload (“LTL”), union-free motor service offering regional, inter-regional and nationwide LTL providers by means of a single built-in group. Our service choices, which embrace expedited transportation, are supplied by means of an expansive community of service facilities situated all through the continental United States. By way of strategic alliances, the Firm additionally offers LTL providers all through North America. Along with its core LTL providers, the Firm gives a spread of value-added providers together with container drayage, truckload brokerage and provide chain consulting.
OLD DOMINION FREIGHT LINE, INC.
Statements of Operations
Fourth Quarter Yr to Date
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In hundreds, besides per share quantities) 2020 2019 2020 2019
---------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------
Income $ 1,073,389 100.0 % $ 1,009,206 100.0 % $ 4,015,129 100.0 % $ 4,109,111 100.0 %
Working bills:
Salaries, wages & advantages 543,847 50.7 % 534,086 52.9 % 2,053,894 51.2 % 2,122,464 51.7 %
Working provides & bills 100,057 9.3 % 112,004 11.1 % 373,431 9.3 % 473,114 11.5 %
Basic provides & bills 23,407 2.2 % 26,391 2.6 % 110,279 2.7 % 123,975 3.0 %
Working taxes & licenses 30,663 2.8 % 29,267 2.9 % 116,943 2.9 % 116,839 2.8 %
Insurance coverage & claims 9,783 0.9 % 18,510 1.8 % 42,364 1.1 % 52,549 1.3 %
Communications & utilities 8,467 0.8 % 7,530 0.8 % 31,542 0.8 % 29,601 0.7 %
Depreciation & amortization 65,106 6.1 % 64,544 6.4 % 261,259 6.5 % 253,681 6.2 %
Bought transportation 32,759 3.0 % 21,418 2.1 % 97,947 2.4 % 89,636 2.2 %
Miscellaneous bills, web 4,998 0.5 % 7,192 0.7 % 20,588 0.5 % 28,546 0.7 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
819,087 76.3 % 820,942 81.3 % 3,108,247 77.4 % 3,290,405 80.1 %
Complete working bills
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Working revenue 254,302 23.7 % 188,264 18.7 % 906,882 22.6 % 818,706 19.9 %
Non-operating expense (revenue):
Curiosity expense 846 0.1 % 92 0.0 % 2,782 0.1 % 377 0.0 %
Curiosity revenue (228 ) (0.0 )% (1,797 ) (0.2 )% (1,830 ) (0.0 )% (6,763 ) (0.2 )%
Different expense, web 361 0.0 % 375 0.1 % 4,566 0.1 % 1,143 0.0 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Revenue earlier than revenue taxes 253,323 23.6 % 189,594 18.8 % 901,364 22.4 % 823,949 20.1 %
Provision for revenue taxes 63,491 5.9 % 45,570 4.5 % 228,682 5.6 % 208,431 5.1 %
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Web revenue $ 189,832 17.7 % $ 144,024 14.3 % $ 672,682 16.8 % $ 615,518 15.0 %
==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
Earnings per share:
Fundamental $ 1.62 $ 1.20 $ 5.71 $ 5.11
Diluted 1.61 1.20 5.68 5.10
Weighted common excellent shares:
Fundamental 117,113 119,532 117,737 120,414
Diluted 117,887 119,799 118,493 120,610
OLD DOMINION FREIGHT LINE, INC.
Working Statistics
Fourth Quarter Yr to Date
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2020 2019 % Chg. 2020 2019 % Chg.
------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ -------------------- ------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ --------------------
Work days 62 62 - 254 253 0.4 %
Working ratio 76.3 % 81.3 % 77.4 % 80.1 %
LTL intercity miles (1) 159,896 157,687 1.4 % 617,805 644,287 (4.1 )%
LTL tons (1) 2,279 2,173 4.9 % 8,770 8,964 (2.2 )%
LTL tonnage per day 36,758 35,048 4.9 % 34,528 35,431 (2.5 )%
LTL shipments (1) 2,816 2,751 2.4 % 10,869 11,491 (5.4 )%
LTL shipments per day 45,419 44,371 2.4 % 42,791 45,419 (5.8 )%
LTL income per intercity mile $ 6.59 $ 6.29 4.8 % $ 6.42 $ 6.30 1.9 %
LTL income per hundredweight $ 23.10 $ 22.84 1.1 % $ 22.62 $ 22.64 (0.1 )%
LTL income per hundredweight, excluding gas surcharges $ 20.76 $ 19.92 4.2 % $ 20.21 $ 19.72 2.5 %
LTL income per cargo $ 374.08 $ 360.80 3.7 % $ 364.94 $ 353.18 3.3 %
LTL income per cargo, excluding gas surcharges $ 336.04 $ 314.70 6.8 % $ 326.09 $ 307.67 6.0 %
LTL weight per cargo (lbs.) 1,619 1,580 2.5 % 1,614 1,560 3.5 %
Common size of haul (miles) 927 915 1.3 % 925 917 0.9 %
Common lively full-time staff 19,630 20,175 (2.7 )% 19,064 20,594 (7.4 )%
(1)
In hundreds
OLD DOMINION FREIGHT LINE, INC.
Stability Sheets
December 31, December 31,
(In hundreds) 2020 2019
----------------------------- ---------------------------------------- ----------------------------------------
Money and money equivalents $ 401,430 $ 403,571
Quick-term investments 330,274 -
Different present property 511,635 463,263
-------------------- -------------------- -------------------- --------------------
Complete present property $ 1,243,339 $ 866,834
Web property and tools 2,914,031 2,968,835
Different property 212,040 159,899
-------------------- -------------------- -------------------- --------------------
Complete property $ 4,369,410 $ 3,995,568
==================== ==================== ==================== ====================
Present liabilities $ 373,130 $ 366,085
Lengthy-term debt 99,931 45,000
Different non-current liabilities 570,061 503,766
-------------------- -------------------- -------------------- --------------------
Complete liabilities $ 1,043,122 $ 914,851
Fairness 3,326,288 3,080,717
-------------------- -------------------- -------------------- -------------------- --------------------
Complete liabilities & fairness $ 4,369,410 $ 3,995,568
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SOURCE: Outdated Dominion Freight Line, Inc.
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Adam N. Satterfield Senior Vice President, Finance and Chief Monetary Officer (336) 822-5721
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