Old Dominion Freight Line Reports Strong, Profitable Growth with Second-Quarter Earnings Per Diluted Share of $0.69

Produces Best Quarterly Revenues, Earnings and Margins in 20 Years as a Public Company

THOMASVILLE, N.C.--(BUSINESS WIRE)-- Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced financial results for the second quarter ended June 30, 2011. Revenue increased 30.4% for the quarter to $480.3 million from $368.3 million for the second quarter of 2010. Net income rose 83.1% to $39.4 million from $21.5 million, while earnings per diluted share increased 81.6% to $0.69 from $0.38 in the prior-year comparable quarter. Old Dominion's operating ratio improved to 86.5% for the second quarter of 2011 from 89.1% for the second quarter of 2010. The Company's per-share results reflect a 2.7% increase in weighted average shares outstanding that resulted from the issuance of 1,516,379 shares in March 2011 under a previously announced "at the market" stock offering program. All prior-period share and per share data in this release have been adjusted to reflect the Company's August 2010 three-for-two stock split.

For the first six months of 2011, revenue was $902.9 million, a 31.6% increase from $686.0 million for the first half of 2010. Net income rose 108.7% to $61.0 million for the first six months of 2011 from $29.2 million for the same prior-year period, and earnings per diluted share increased 105.8% to $1.07 from $0.52. Old Dominion's operating ratio improved to 88.6% for the first half of 2011 from 91.8% for the comparable period in 2010.

David S. Congdon, President and Chief Executive Officer of Old Dominion, commented, "Old Dominion's second-quarter performance shattered our prior records for quarterly performance. Quarterly revenue increased 15% over our previous high of $417.8 million in the second quarter of 2008; earnings per diluted share increased 57% over our previous high of $0.44 in the third quarter of 2010; and our operating ratio of 86.5% was lower than the 88.3% that we produced in the second quarter of 2006. We believe our operating and financial results further validate the effectiveness of our operating and growth strategies, and we congratulate all the members of the OD Family for this performance.

"Our revenue for the second quarter was driven by a 14.0% increase in tonnage and a 14.2% increase in revenue per hundredweight over the second quarter of 2010. Excluding fuel surcharges, revenue per hundredweight increased 8.1%. Improvements in our revenue yield in the second quarter were aided by both a 2.3% decline in weight per shipment and a 1.5% increase in our average length of haul from the prior-year comparable quarter. Shipments increased 16.8%, outpacing our tonnage growth, and revenue per shipment increased 11.5% from the second quarter of 2010.

"Strong tonnage growth, combined with the increase in revenue per hundredweight, contributed to a 260 basis-point improvement in our operating ratio for the second quarter. The impact of this operating leverage was modestly offset by the decline in some measures of productivity related to expanding and training our workforce, as well as to changes in the mix of freight. However, we continued our strong performance as the industry-leading provider of on-time, claims free service, with on-time deliveries of 99% and a cargo-claims ratio of 0.47%."

Old Dominion's capital expenditures for the second quarter of 2011 were approximately $84 million and $142 million for the first half of the year. For the full year of 2011, the Company expects to incur capital expenditures of $260 million to $295 million, including $100 million to $120 million for real estate purchases and expansion projects at our existing facilities, subject to the availability of suitable real estate and the timing of construction projects. In addition, $145 million to $155 million of capital expenditures are planned for the purchase of tractors, trailers and other equipment, and $15 million to $20 million are planned for investments in technology.

Old Dominion remains well-positioned to fund its planned capital expenditures. In addition to continuing strong cash flow from operations, the Company's total debt to capitalization improved to 25.4% at June 30, 2011 from 28.1% at March 31, 2011 and 31.7% at June 30, 2010. At the end of the second quarter of 2011, the Company had $28.7 million in cash and cash equivalents and $174.2 million of availability on its revolving credit facility, which expires in August 2011. The Company expects to finalize and enter into a new credit facility prior to the expiration of its current facility.

Mr. Congdon concluded, "While we are proud of the milestones achieved in the second quarter, we are focused on compelling opportunities to improve and expand our organization further in pursuit of our long-term growth objectives. Due to our historical and substantial growth, our market share has reached the mid-single digits. As a result, we have an excellent opportunity to further increase our market share by expanding our business organically through increased density within our existing service center network, as well as through additional geographic expansion. In addition, continued investments in technology represent an ongoing opportunity to enhance productivity and provide better, more transparent services to our customers. We are also continuing to invest in value-added logistics services that include warehousing, truckload brokerage, dedicated fleet and transportation management. Although currently a small, yet rapidly growing, portion of our business, these value-added services are building new revenue streams for Old Dominion that we believe will allow us to better leverage our service center network and our thousands of customer relationships in the U.S. and abroad.

"The strong growth we experienced for the second quarter and expect for 2011 enhances our ability to develop these growth opportunities. We are confident that we have the human capital, the systems and infrastructure and the financial strength to produce significant long-term growth and increased shareholder value."

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 August 28, 2011. A telephonic replay will also be available through August 6, 2011 at (719) 457-0820, Confirmation Number 8865108.

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 demand, including whether our pricing and resulting revenue are sufficient to cover our operating expenses; (2) the negative impact of any unionization, or the passage of legislation that could facilitate unionization, of our employees; (3) the challenges associated with executing our growth strategy, including inability to successfully consummate and integrate acquisitions, if any; (4) changes in our goals and strategies, which are subject to change at any time at our discretion; (5) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (6) increases in driver compensation or other difficulties in attracting and retaining qualified drivers; (7) 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; (8) the availability and cost of capital for our significant ongoing cash requirements; (9) the availability and cost of replacement parts and new equipment, particularly in light of regulatory changes impacting the cost of these assets; (10) decreases in demand for, and the value of, used equipment; (11) the availability and price of diesel fuel; (12) the effectiveness of fuel surcharges in mitigating the impact of fluctuating fuel prices and our ability to collect fuel surcharges from our customers; (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, and new safety standards for drivers and equipment; (14) the costs and potential adverse impact associated with the implementation of the new 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; and (20) other risks and uncertainties indicated from time to time in our filings with the Securities and Exchange Commission.

Old Dominion Freight Line, Inc. is a leading, less-than-truckload ("LTL"), non-union 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. 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                      Six Months Ended

                June 30,                      %         June 30,                      %

                2011           2010           Chg.      2011           2010           Chg.

Revenue
from            $ 480,255      $ 368,250      30.4 %    $ 902,934      $ 686,045      31.6  %
operations

Operating       $ 64,645       $ 40,011       61.6 %    $ 102,566      $ 56,386       81.9  %
income

Operating         86.5    %      89.1    %                88.6    %      91.8    %
ratio

Net income      $ 39,383       $ 21,513       83.1 %    $ 60,956       $ 29,214       108.7 %

Basic and
diluted         $ 0.69         $ 0.38         81.6 %    $ 1.07         $ 0.52         105.8 %
earnings
per share

Basic and
diluted
weighted          57,443         55,927       2.7  %      56,850         55,927       1.7   %
average
shares
outstanding





OLD DOMINION FREIGHT LINE, INC.

Statements of Operations

(In thousands, except per share amounts)

                 Second Quarter                                         Year To Date

                 2011                  2010                  % Chg.     2011                     2010                  % Chg.

Revenue          $ 480,255   100.0 %   $ 368,250   100.0 %   30.4  %    $ 902,934     100.0 %    $ 686,045   100.0 %   31.6   %

Operating
expenses:

Salaries,
wages &            239,376   49.8  %     196,260   53.3  %   22.0  %      460,874     51.0  %      377,061   54.9  %   22.2   %
benefits

Operating
supplies &         90,697    18.9  %     59,594    16.2  %   52.2  %      173,330     19.2  %      112,274   16.4  %   54.4   %
expenses

General
supplies &         13,201    2.7   %     10,443    2.8   %   26.4  %      24,767      2.7   %      20,428    3.0   %   21.2   %
expenses

Operating
taxes &            15,890    3.3   %     13,708    3.7   %   15.9  %      31,419      3.5   %      26,711    3.9   %   17.6   %
licenses

Insurance &        7,529     1.6   %     6,209     1.7   %   21.3  %      14,721      1.6   %      11,634    1.7   %   26.5   %
claims

Communications     4,433     0.9   %     3,668     1.0   %   20.9  %      8,983       1.0   %      7,443     1.1   %   20.7   %
& utilities

Depreciation &     22,013    4.6   %     19,553    5.3   %   12.6  %      43,134      4.8   %      41,104    6.0   %   4.9    %
amortization

Purchased          16,778    3.5   %     12,575    3.4   %   33.4  %      31,068      3.4   %      21,799    3.2   %   42.5   %
transportation

Building and
office             3,500     0.7   %     4,174     1.1   %   (16.1 %)     6,887       0.8   %      7,636     1.1   %   (9.8   %)
equipment
rents

Miscellaneous      2,193     0.5   %     2,055     0.6   %   6.7   %      5,185       0.6   %      3,569     0.5   %   45.3   %
expenses, net

Total
operating          415,610   86.5  %     328,239   89.1  %   26.6  %      800,368     88.6  %      629,659   91.8  %   27.1   %
expenses

Operating          64,645    13.5  %     40,011    10.9  %   61.6  %      102,566     11.4  %      56,386    8.2   %   81.9   %
income

Other
deductions:

Interest           3,450     0.7   %     3,128     0.9   %   10.3  %      7,307       0.8   %      6,594     1.0   %   10.8   %
expense, net

Other expense,     362       0.1   %     1,029     0.3   %   (64.8 %)     (1,056  )   (0.1  %)     1,102     0.1   %   (195.8 %)
net

Income before      60,833    12.7  %     35,854    9.7   %   69.7  %      96,315      10.7  %      48,690    7.1   %   97.8   %
income taxes

Provision for      21,450    4.5   %     14,341    3.9   %   49.6  %      35,359      3.9   %      19,476    2.8   %   81.6   %
income taxes

Net income       $ 39,383    8.2   %   $ 21,513    5.8   %   83.1  %    $ 60,956      6.8   %    $ 29,214    4.3   %   108.7  %

Earnings per
share:

Basic and        $ 0.69                $ 0.38                81.6  %    $ 1.07                   $ 0.52                105.8  %
Diluted

Weighted
average
outstanding
shares:

Basic and          57,443                55,927              2.7   %      56,850                   55,927              1.7    %
Diluted





OLD DOMINION FREIGHT LINE, INC.

              Second Quarter                            Year to Date

Operating     2011            2010            % Chg.    2011          2010          % Chg.
Statistics

Operating       86.5      %     89.1      %   (2.9 %)     88.6    %     91.8    %   (3.5 %)
ratio

Intercity       98,889          83,239        18.8 %      188,216       156,676     20.1 %
miles *

Total tons      1,632           1,431         14.0 %      3,131         2,677       17.0 %
*

Total           1,844           1,579         16.8 %      3,554         2,992       18.8 %
shipments *

Revenue per
intercity     $ 4.86          $ 4.42          10.0 %    $ 4.80        $ 4.38        9.6  %
mile

Rev/cwt ***   $ 14.74         $ 12.91         14.2 %    $ 14.52       $ 12.87       12.8 %

Rev/cwt
excluding
fuel          $ 12.21         $ 11.30         8.1  %    $ 12.15       $ 11.33       7.2  %
surcharges
***

Rev/shp ***   $ 260.87        $ 233.90        11.5 %    $ 255.74      $ 230.34      11.0 %

Rev/shp
excluding
fuel          $ 216.10        $ 204.82        5.5  %    $ 214.09      $ 202.72      5.6  %
surcharges
***

Weight per
shipment        1,770           1,812         (2.3 %)     1,762         1,789       (1.5 %)
(lbs.)

Average
length of       953             939           1.5  %      957           947         1.1  %
haul
(miles)

* - In thousands

*** - For statistical purposes only, revenue does not include adjustments for undelivered
freight required for financial statement purposes in accordance with the Company's revenue
recognition policy.

              June 30,        December 31,

Balance       2011            2010
Sheets

(In
thousands)

Cash and
cash          $ 28,664        $ 5,450
equivalents

Other
current         267,472         217,132
assets

Total
current         296,136         222,582
assets

Net
property        1,059,702       964,216
and
equipment

Other           53,666          53,083
assets

Total         $ 1,409,504     $ 1,239,881
assets

Current
maturities
of            $ 38,099        $ 37,130
long-term
debt

Other
current         174,284         132,916
liabilities

Total
current         212,383         170,046
liabilities

Long-term       227,143         234,087
debt

Other
non-current     191,973         167,099
liabilities

Total           631,499         571,232
liabilities

Equity          778,005         668,649

Total
liabilities   $ 1,409,504     $ 1,239,881
& equity

Note: Financial and operating data are unaudited




    Source: Old Dominion Freight Line, Inc.