Old Dominion Freight Line (ODFL) Tops Q2 EPS by 4c; Shares Ramp 3%
Old Dominion Freight Line (NASDAQ: ODFL) is up 3.3% early after the company reported Q2 EPS of $0.68, $0.04 better than the analyst estimate of $0.64. Revenue for the quarter came in at $590.2 million versus the consensus estimate of $579.72 million.
David S. Congdon, President and Chief Executive Officer of Old Dominion, commented, “We are pleased to report that Old Dominion continued to produce outstanding results for the second quarter of 2013, including strong growth in earnings per diluted share and a 140 basis point improvement in our operating ratio to a new Company record of 83.5%. This performance during a period of generally slow economic growth further demonstrates the strength of our value proposition of providing on- time and claims-free services at a fair and equitable price. We continued to deliver extraordinary service in the second quarter, as evidenced by our on-time delivery percentage of 99% and our cargo claims ratio of 0.31%, which is the best we have ever produced.
“We believe our industry-leading service once again enabled us to win market share during the second quarter and led to the 5.6% increase in tonnage per day compared with the second quarter last year. In addition, our revenue per hundredweight increased 2.4% for the quarter, which, when combined with our tonnage growth, accounted for the 8.0% growth in revenue. Revenue per hundredweight, excluding fuel surcharge, increased 3.0% for the 2013 second quarter from the same quarter last year and reflects an improving pricing environment for the industry as well as our continued commitment to yield management. The improvement in yield and increased operating leverage, resulting from the increase in freight density, contributed to the improvement in our operating ratio.
“The Company opened a new service center in Salinas, California during the second quarter, ending the quarter with 220 service centers in operation. We also relocated and expanded three service centers during the quarter, providing additional capacity for future growth in revenue. Our capital expenditures, net of proceeds from sales, were $121.6 million for the quarter and $147.7 million for the first half of 2013. We expect net capital expenditures for 2013 to approximate $305 million, which includes $130 million for real estate purchases and expansion projects at existing facilities, subject to the availability of suitable real estate and the timing of construction projects; $150 million for tractors, trailers and other equipment; and $25 million for technology and other assets. We expect to fund our capital expenditures primarily with cash flow from operations. Despite these investments in 2013, our ratio of total debt to capitalization strengthened to 16.9% at June 30, 2013, which is a 540 basis point improvement from 22.3% at the end of the second quarter last year."
Mr. Congdon concluded, “As our second-quarter results indicate, Old Dominion continues to perform at a high level, which reflects the strengths of the entire Old Dominion team. We remain focused on the superior execution of our strategic principles, and we are confident in our prospects for gaining additional market share and driving further growth in long-term earnings and shareholder value.
For earnings history and earnings-related data on Old Dominion Freight Line (ODFL) click here.
David S. Congdon, President and Chief Executive Officer of Old Dominion, commented, “We are pleased to report that Old Dominion continued to produce outstanding results for the second quarter of 2013, including strong growth in earnings per diluted share and a 140 basis point improvement in our operating ratio to a new Company record of 83.5%. This performance during a period of generally slow economic growth further demonstrates the strength of our value proposition of providing on- time and claims-free services at a fair and equitable price. We continued to deliver extraordinary service in the second quarter, as evidenced by our on-time delivery percentage of 99% and our cargo claims ratio of 0.31%, which is the best we have ever produced.
“We believe our industry-leading service once again enabled us to win market share during the second quarter and led to the 5.6% increase in tonnage per day compared with the second quarter last year. In addition, our revenue per hundredweight increased 2.4% for the quarter, which, when combined with our tonnage growth, accounted for the 8.0% growth in revenue. Revenue per hundredweight, excluding fuel surcharge, increased 3.0% for the 2013 second quarter from the same quarter last year and reflects an improving pricing environment for the industry as well as our continued commitment to yield management. The improvement in yield and increased operating leverage, resulting from the increase in freight density, contributed to the improvement in our operating ratio.
“The Company opened a new service center in Salinas, California during the second quarter, ending the quarter with 220 service centers in operation. We also relocated and expanded three service centers during the quarter, providing additional capacity for future growth in revenue. Our capital expenditures, net of proceeds from sales, were $121.6 million for the quarter and $147.7 million for the first half of 2013. We expect net capital expenditures for 2013 to approximate $305 million, which includes $130 million for real estate purchases and expansion projects at existing facilities, subject to the availability of suitable real estate and the timing of construction projects; $150 million for tractors, trailers and other equipment; and $25 million for technology and other assets. We expect to fund our capital expenditures primarily with cash flow from operations. Despite these investments in 2013, our ratio of total debt to capitalization strengthened to 16.9% at June 30, 2013, which is a 540 basis point improvement from 22.3% at the end of the second quarter last year."
Mr. Congdon concluded, “As our second-quarter results indicate, Old Dominion continues to perform at a high level, which reflects the strengths of the entire Old Dominion team. We remain focused on the superior execution of our strategic principles, and we are confident in our prospects for gaining additional market share and driving further growth in long-term earnings and shareholder value.
For earnings history and earnings-related data on Old Dominion Freight Line (ODFL) click here.