Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE   Contact:   J. Wes Frye
        Senior Vice President - Finance and
        Chief Financial Officer
        (336) 822-5305

 

OLD DOMINION FREIGHT LINE EXCEEDS GUIDANCE WITH FIRST-QUARTER

EARNINGS OF $0.38 PER DILUTED SHARE

 

58.3% Earnings Growth Driven by 29.5% Increase in Revenue

 

THOMASVILLE, N.C. (April 22, 2005) – Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced record financial results for the first quarter ended March 31, 2005. Revenue from operations increased 29.5% to $236,770,000 for the quarter from $182,769,000 for the first quarter of 2004. Net income rose 63.6% to $9,343,000 from $5,712,000. Earnings per diluted share for the first quarter of 2005 were $0.38, up 58.3% from $0.24 for the first quarter last year. Old Dominion’s operating ratio for the first quarter of 2005 improved to 92.7% from 94.0% for the first quarter of 2004. All prior-period share and per share data in this release have been adjusted to reflect the Company’s three-for-two stock split effective in May 2004.

 

“We are pleased to report strong profitable growth for the first quarter of 2005, which represents our fourth consecutive quarter of revenue growth above 20%” commented Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion. Because a majority of this growth was within our existing service center network, we continued to produce increased operating leverage for the quarter. As a result, the first quarter represented our 14th consecutive quarter of improvement in our operating ratio and growth in net income in excess of 30%, both on a comparable quarter basis.

 

“Old Dominion’s revenue growth for the quarter reflects a 21.5% increase in LTL tons and a 3.1% increase in LTL revenue per hundredweight, excluding fuel surcharges. We also experienced an 18.2% growth in LTL shipments and a 5.9% increase in LTL revenue per shipment, excluding fuel surcharges. We maintained our pricing discipline during the quarter while increasing our volumes and market share.

 

“With a service center network covering over 90% of the U.S. population, our primary focus is to leverage our investment in this network through increased freight density by increasing market share. During the first quarter, we benefited from our expansion activities in 2004, which included opening 12 new service centers, expanding our direct service into Oregon and Washington and initiating full-state coverage in Michigan and Wisconsin. During the first quarter of 2005, we also opened a new service

 

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500 Old Dominion Way • Thomasville, North Carolina 27360 • (336) 889-5000

www.odfl.com


ODFL Reports First-Quarter Earnings

Page 2

April 22, 2005

 

center in Colorado Springs, Colorado, and acquired Wichita Southeast Kansas Transit (“WSKT”) in a transaction we expect will be accretive to our 2005 financial results. Through this acquisition, we expanded our network by 10 service centers to 149 at the end of the quarter, increased our direct coverage to 41 states and increased our full-state coverage to 31 states. During the remainder of 2005, we plan to open four to five additional service centers, including our first service centers in Vermont and Maine.

 

“Through this expansion, we strengthen our unique competitive position as an efficient, non-union transportation company with the long-haul capabilities of a national carrier and the infrastructure and service capabilities of a regional carrier. The value we present our customers as a comprehensive single-source solution for their transportation needs is evident in our ability to increase revenue, primarily through market share expansion, at a rate consistently and significantly above the industry.”

 

Based on the Company’s operating and financial results for the first quarter and its assessment of current and near-term business conditions, Old Dominion today affirmed its guidance for 2005 earnings per diluted share in a range of $2.03 to $2.08. In addition, the Company today established its earnings guidance for the second quarter of 2005 in a range of $0.50 to $0.53, compared with $0.43 earned in the second quarter of 2004.

 

Mr. Congdon concluded, “Our first-quarter results represent a sound start to achieving our earnings guidance for 2005. We are confident that Old Dominion remains well positioned to continue expanding its market share as 2005 progresses.”

 

Old Dominion will hold a conference call to discuss this release today at 11:00 a.m. Eastern time. Investors will have the opportunity to listen to the conference call live over the Internet by going to www.odfl.com or by going to www.vcall.com 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 these Web sites shortly after the call through May 22, 2005. A telephonic replay will also be available through April 29, 2005, at 719-457-0820, Confirmation Number 3956674.

 

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 pricing; (2) the negative impact of any unionization of the Company’s employees; (3) the challenges associated with executing the Company’s growth strategy; (4) the Company’s compliance with legislation requiring companies to evaluate their internal control over financial operations and reporting; (5) various economic factors such as economic recessions and downturns in customers’ business cycles and shipping requirements; (6) the availability and cost of fuel; (7) difficulty in attracting or retaining qualified drivers; (8) the Company’s exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation, long-term disability and group health and the cost of insurance coverage above retention levels; (9) the Company’s significant ongoing cash requirements; (10) the availability and cost of new equipment; (11) the costs of compliance with, or liability for, violation of existing or future governmental regulation; (12) seasonal trends in the industry, including the possibility of harsh weather conditions; (13) the Company’s dependence on key employees; (14) changes in the Company’s goals and strategies, which are subject to change at any time at the discretion of the Company; and (15) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

 

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ODFL Reports First-Quarter Earnings

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April 22, 2005

 

Old Dominion Freight Line, Inc. is a less-than-truckload multi-regional motor carrier providing one to five day service among five regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD-Technology, the Company offers an array of innovative products and services that provide direct service to 41 states within the Southeast, South Central, Northeast, Midwest and West regions of the country, including 31 states within which it provides full-state coverage. In addition, through marketing and carrier relationships, Old Dominion provides service to and from the remaining states as well as international services around the globe.

 

OLD DOMINION FREIGHT LINE, INC.

Financial Highlights

(In thousands, except per share amounts)

 

    

Three Months Ended

March 31,


   

%

Chg.


 
     2005

    2004

   

Revenue from operations

   $ 236,770     $ 182,769     29.5 %

Operating income

   $ 17,236     $ 10,901     58.1 %

Operating ratio

     92.7 %     94.0 %      

Net income

   $ 9,343     $ 5,712     63.6 %

Basic earnings per share

   $ 0.38     $ 0.24     58.3 %

Diluted earnings per share

   $ 0.38     $ 0.24     58.3 %

Weighted average shares outstanding

                      

Basic

     24,845       24,089     3.1 %

Diluted

     24,855       24,111     3.1 %

 

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ODFL Reports First-Quarter Earnings

Page 4

April 22, 2005

 

LOGO   OLD DOMINION FREIGHT LINE, INC.    

 

Statements of Operations

(In thousands, except per share amounts)

 

     First Quarter

 
     2005

    2004

    %Chg.

 

Revenue

   $ 236,770    100.0 %   $ 182,769    100.0 %   29.5 %

Operating expenses:

                                

Salaries, wages & benefits

     134,244    56.7 %     108,450    59.3 %   23.8 %

Operating supplies & expenses

     33,092    14.0 %     20,835    11.4 %   58.8 %

General supplies & expenses

     7,648    3.2 %     6,430    3.5 %   18.9 %

Operating taxes & licenses

     9,007    3.8 %     7,300    4.0 %   23.4 %

Insurance & claims

     7,855    3.3 %     5,842    3.2 %   34.5 %

Communications & utilities

     3,214    1.4 %     2,806    1.6 %   14.5 %

Depreciation & amortization

     12,335    5.2 %     10,596    5.8 %   16.4 %

Purchased transportation

     8,803    3.7 %     6,281    3.4 %   40.2 %

Building and office equipment rents

     2,097    0.9 %     1,830    1.0 %   14.6 %

Miscellaneous expenses, net

     1,239    0.5 %     1,498    0.8 %   (17.3 )%

Total operating expenses

     219,534    92.7 %     171,868    94.0 %   27.7 %

Operating income

     17,236    7.3 %     10,901    6.0 %   58.1 %

Other deductions:

                                

Interest expense, net

     1,433    0.6 %     1,370    0.8 %   4.6 %

Other expense, net

     153    0.1 %     167    0.1 %   (8.4 )%

Income before income taxes

     15,650    6.6 %     9,364    5.1 %   67.1 %

Provision for income taxes

     6,307    2.7 %     3,652    2.0 %   72.7 %

Net income

   $ 9,343    3.9 %   $ 5,712    3.1 %   63.6 %
    

        

            

Earnings per Share:

                                

Basic

   $ 0.38          $ 0.24          58.3 %

Diluted

   $ 0.38          $ 0.24          58.3 %

Weighted average outstanding shares:

                                

Basic

     24,845            24,089          3.1 %

Diluted

     24,855            24,111          3.1 %

 

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ODFL Reports First-Quarter Earnings

Page 5

April 22, 2005

 

LOGO   OLD DOMINION FREIGHT LINE, INC.    

 

Operating Statistics

( * In thousands)


   First Quarter

 
   2005

    2004

    % Chg.

 

Operating ratio

     92.7 %     94.0 %   (1.4 )%

Intercity miles *

     61,529       50,166     22.7 %

LTL tons *

     724       596     21.5 %

Total tons *

     970       828     17.1 %

LTL shipments *

     1,355       1,146     18.2 %

Total shipments *

     1,383       1,172     18.0 %

Percent LTL revenue

     91.0 %     91.0 %   0.0 %

Revenue per intercity mile

   $ 3.85     $ 3.64     5.8 %

LTL rev/LTL cwt

   $ 14.88     $ 13.95     6.7 %

LTL rev/LTL cwt less FSC

   $ 13.68     $ 13.27     3.1 %

LTL rev/LTL shp

   $ 159.07     $ 145.16     9.6 %

LTL rev/LTL shp less FSC

   $ 146.25     $ 138.14     5.9 %

LTL weight per LTL shipment

     1,069       1,041     2.7 %

Average length of haul

     936       953     (1.8 )%

 

Balance Sheets

(In thousands)


  

March 31,

2005


  

December 31,

2004


Current Assets

   $ 145,001    $ 127,381

Net Property and Equipment

     399,217      363,268

Other Assets

     21,918      18,928
    

  

Total Assets

   $ 566,136    $ 509,577
    

  

Current Maturities

   $ 19,380    $ 22,030

Other Current Liabilities

     101,351      76,634
    

  

Total Current Liabilities

     120,731      98,664

Long Term Debt

     82,695      57,424

Other Long Term Liabilities

     61,839      61,961
    

  

Total Liabilities

     265,265      218,049

Equity

     300,871      291,528
    

  

Total Liabilities & Equity

   $ 566,136    $ 509,577
    

  

 

Notes: Financial and operating data are unaudited

            LTL is less than 10,000 lbs.

 

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