Old Dominion Freight Line, Inc. (ODFL) Bundle
A Brief History of Old Dominion Freight Line, Inc.
Company Overview
Company Overview
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) is a leading provider of less-than-truckload (LTL) transportation services in North America. Established in 1934, the company has grown significantly over the decades, expanding its operational footprint and service offerings.
Financial Performance 2024
As of the third quarter of 2024, Old Dominion reported total revenue of $1,470.2 million, down 3.0% from $1,515.3 million in Q3 2023. For the first nine months of 2024, revenue increased to $4,429.0 million, a 1.3% increase compared to $4,370.6 million in the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
|---|---|---|---|---|---|---|
| Total Revenue | $1,470,211 | $1,515,277 | -3.0% | $4,428,981 | $4,370,602 | 1.3% |
| Operating Income | $401,861 | $445,019 | -9.7% | $1,209,978 | $1,219,662 | -0.8% |
| Net Income | $308,580 | $339,287 | -9.1% | $922,929 | $916,687 | 0.7% |
| Earnings per Diluted Share | $1.43 | $1.54 | -7.1% | $4.25 | $4.16 | 2.2% |
Operational Highlights
In Q3 2024, the operating ratio for Old Dominion increased to 72.7%, up from 70.6% in Q3 2023. This increase reflects higher operating expenses relative to revenue, affected by a decrease in LTL tons per day by 4.8%.
Capital Expenditures
Old Dominion's capital expenditures for the third quarter of 2024 totaled $242.8 million, with a projected total for the year of approximately $750 million. This includes $350 million for real estate and service center expansions, $325 million for tractors and trailers, and $75 million for information technology and other assets.
Cash Flow and Shareholder Returns
The company generated net cash from operating activities of $446.5 million for Q3 2024 and $1.3 billion for the first nine months of the year. In terms of shareholder returns, Old Dominion utilized $824.8 million for share repurchases and paid out $168.2 million in dividends during the first nine months of 2024.
Workforce and Operational Metrics
As of Q3 2024, Old Dominion employed an average of 22,465 full-time employees, reflecting a 0.8% increase from the previous year. Key operational metrics showed a 3.4% decrease in LTL shipments per day and a 1.4% decrease in LTL weight per shipment.
| Operating Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| LTL Shipments per Day | 47,967 | 49,670 | -3.4% |
| LTL Weight per Shipment (lbs) | 1,476 | 1,497 | -1.4% |
| Average Length of Haul (miles) | 923 | 927 | -0.4% |
Old Dominion remains committed to delivering superior service and maintaining its position as a leading provider in the LTL market, with a focus on operational efficiency and customer satisfaction.
A Who Owns Old Dominion Freight Line, Inc. (ODFL)
Shareholder Composition
As of 2024, the ownership of Old Dominion Freight Line, Inc. (ODFL) is concentrated among several key shareholders, with significant holdings by institutional investors and the founding family. The Congdon family remains a notable stakeholder, which impacts voting power and strategic decisions.
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Congdon Family | Approximately 55% | ~ 30 million shares |
| Institutional Investors | Approximately 30% | ~ 16 million shares |
| Retail Investors | Approximately 15% | ~ 8 million shares |
Top Institutional Shareholders
Key institutional investors in Old Dominion Freight Line include:
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| The Vanguard Group | 8.5% | ~ 4.5 million shares |
| BlackRock, Inc. | 7.2% | ~ 3.9 million shares |
| State Street Corporation | 6.9% | ~ 3.7 million shares |
| Wellington Management | 5.1% | ~ 2.8 million shares |
Recent Stock Performance
Old Dominion's stock has experienced fluctuations in the market. As of October 2024, the stock price is approximately $200 per share, reflecting a year-to-date performance with a slight decrease from $210 at the beginning of the year.
| Time Period | Stock Price | Change (%) |
|---|---|---|
| January 2024 | $210 | - |
| October 2024 | $200 | -4.76% |
Impact of Share Repurchase Programs
Old Dominion has engaged in share repurchase programs to enhance shareholder value. In 2024, the company utilized $824.8 million for share repurchases, including a $200 million accelerated share repurchase agreement.
| Year | Amount Spent on Buybacks | Shares Repurchased |
|---|---|---|
| 2024 | $824.8 million | ~ 4 million shares |
Dividends Paid
The company has consistently returned capital to shareholders through dividends. In 2024, Old Dominion paid $168.2 million in cash dividends.
| Year | Total Dividends Paid | Dividend per Share |
|---|---|---|
| 2024 | $168.2 million | $0.78 |
Old Dominion Freight Line, Inc. (ODFL) Mission Statement
Old Dominion Freight Line, Inc. (ODFL) aims to provide superior service at a fair price, creating a best-in-class value proposition for its customers. This commitment is reflected in the company's operational strategies and financial performance.
Latest Financial Overview
As of the third quarter of 2024, Old Dominion reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,470,211,000 | $1,515,277,000 | (3.0) |
| LTL Services Revenue | $1,457,108,000 | $1,501,266,000 | (2.9) |
| Operating Income | $401,861,000 | $445,019,000 | (9.7) |
| Net Income | $308,580,000 | $339,287,000 | (9.1) |
| Diluted Earnings per Share | $1.43 | $1.54 | (7.1) |
| Operating Ratio | 72.7% | 70.6% | +2.1 |
Operating Statistics
Old Dominion's operational efficiency is demonstrated through its key performance indicators:
| Statistic | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| LTL Shipments per Day | 47,967 | 49,670 | (3.4) |
| LTL Weight per Shipment (lbs) | 1,476 | 1,497 | (1.4) |
| LTL Revenue per Hundredweight | $32.36 | $31.87 | +1.5 |
| Average Length of Haul (miles) | 923 | 927 | (0.4) |
| Average Active Full-Time Employees | 22,465 | 22,284 | +0.8 |
Cash Flow and Capital Expenditures
Old Dominion's cash flow and capital allocation strategies are as follows:
| Metric | Q3 2024 | Year-to-Date 2024 |
|---|---|---|
| Net Cash from Operating Activities | $446,500,000 | $1,300,000,000 |
| Capital Expenditures | $242,800,000 | $600,400,000 |
| Total Expected Capital Expenditures for 2024 | $750,000,000 | |
In addition to capital expenditures, Old Dominion has returned capital to shareholders as follows:
| Metric | Year-to-Date 2024 |
|---|---|
| Cash Utilized for Share Repurchases | $824,800,000 |
| Cash Dividends Paid | $168,200,000 |
Conclusion on Mission Alignment
Old Dominion Freight Line, Inc. remains steadfast in its mission to deliver superior service, evidenced by its operational metrics and financial performance amidst challenging market conditions. The company continues to focus on its strategic initiatives that support long-term growth and shareholder value.
How Old Dominion Freight Line, Inc. (ODFL) Works
Overview of Operations
Old Dominion Freight Line, Inc. (ODFL) is a leading less-than-truckload (LTL) motor carrier in North America, providing regional, inter-regional, and national LTL services through an integrated, union-free organization. The company operates an extensive network of service centers across the continental United States and maintains strategic alliances with other carriers to enhance its service offerings. In addition to core LTL services, ODFL provides value-added services such as container drayage, truckload brokerage, and supply chain consulting.
Financial Performance
For the third quarter of 2024, Old Dominion reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,470,211,000 | $1,515,277,000 | (3.0)% |
| LTL Services Revenue | $1,457,108,000 | $1,501,266,000 | (2.9)% |
| Other Services Revenue | $13,103,000 | $14,011,000 | (6.5)% |
| Operating Income | $401,861,000 | $445,019,000 | (9.7)% |
| Net Income | $308,580,000 | $339,287,000 | (9.1)% |
| Diluted Earnings per Share | $1.43 | $1.54 | (7.1)% |
Operating Ratios
The operating ratio for ODFL has shown the following trends:
| Period | Operating Ratio |
|---|---|
| Q3 2024 | 72.7% |
| Q3 2023 | 70.6% |
| Year-to-Date 2024 | 72.7% |
| Year-to-Date 2023 | 72.1% |
Key Operating Statistics
Old Dominion's key operational metrics for the third quarter of 2024 indicate the following:
| Statistic | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| LTL Tons | 2,266,000 | 2,342,000 | (3.2)% |
| LTL Shipments | 3,070,000 | 3,129,000 | (1.9)% |
| LTL Revenue per Hundredweight | $32.36 | $31.87 | 1.5% |
| Average Length of Haul (miles) | 923 | 927 | (0.4)% |
| Average Active Full-Time Employees | 22,465 | 22,284 | 0.8% |
Cash Flow and Capital Expenditures
In terms of cash flow and capital allocation, ODFL reported the following:
- Net cash provided by operating activities: $446.5 million (Q3 2024)
- Capital expenditures: $242.8 million (Q3 2024)
- Total capital expenditures expected for 2024: approximately $750 million
- $350 million for real estate and service center expansion
- $325 million for tractors and trailers
- $75 million for information technology and other assets
- Total cash and cash equivalents as of September 30, 2024: $74.2 million
- Cash utilized for share repurchase program: $824.8 million (first nine months of 2024)
- Cash dividends paid: $168.2 million (first nine months of 2024)
Market Position and Strategy
Old Dominion continues to focus on maintaining a disciplined approach to pricing and improving yields to counteract cost inflation. The company reported a 99% on-time service rate and a cargo claims ratio of 0.1% for the quarter, highlighting its commitment to service quality, which is critical for sustaining market share and driving long-term growth.
Balance Sheet Highlights
As of September 30, 2024, the company's balance sheet reflects the following:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $74,163 |
| Other Current Assets | $660,896 |
| Total Current Assets | $735,059 |
| Net Property and Equipment | $4,425,753 |
| Total Assets | $5,425,831 |
| Total Liabilities | $1,250,091 |
| Equity | $4,175,740 |
How Old Dominion Freight Line, Inc. (ODFL) Makes Money
Revenue Sources
Old Dominion Freight Line, Inc. (ODFL) primarily generates revenue through its less-than-truckload (LTL) services, which accounted for approximately $1.457 billion of total revenue in Q3 2024. This represents a 2.9% decrease from the same period in 2023. The company also earns revenue from other services, contributing $13.1 million in Q3 2024, which is a 6.5% decline year-over-year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| LTL Services | $1,457.1 | $1,501.3 | -2.9% |
| Other Services | $13.1 | $14.0 | -6.5% |
| Total Revenue | $1,470.2 | $1,515.3 | -3.0% |
Operating Expenses
ODFL's operating expenses for Q3 2024 amounted to $1.068 billion, resulting in an operating ratio of 72.7%, an increase of 210 basis points compared to the previous year. The major components of these expenses include:
| Expense Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Percentage of Revenue (%) |
|---|---|---|---|
| Salaries, Wages & Benefits | $681.2 | $663.8 | 46.3% |
| Operating Supplies & Expenses | $156.2 | $180.7 | 10.6% |
| General Supplies & Expenses | $46.0 | $41.7 | 3.1% |
| Operating Taxes & Licenses | $36.7 | $36.5 | 2.6% |
| Insurance & Claims | $17.2 | $16.0 | 1.2% |
| Depreciation & Amortization | $86.7 | $84.1 | 5.9% |
| Total Operating Expenses | $1,068.4 | $1,070.3 | 72.7% |
Net Income and Earnings Per Share
In Q3 2024, ODFL reported a net income of $308.6 million, down 9.1% from $339.3 million in Q3 2023. The diluted earnings per share (EPS) decreased by 7.1% to $1.43 compared to $1.54 in the prior year.
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Net Income (in millions) | $308.6 | $339.3 | -9.1% |
| Diluted EPS | $1.43 | $1.54 | -7.1% |
Cash Flow and Capital Expenditures
ODFL's net cash provided by operating activities for Q3 2024 was $446.5 million, totaling $1.3 billion for the first nine months of the year. The company anticipates capital expenditures of approximately $750 million for 2024, with allocations of $350 million for real estate and service center expansions, $325 million for tractors and trailers, and $75 million for information technology and other assets.
| Cash Flow Category | Q3 2024 Amount (in millions) | First Nine Months 2024 Amount (in millions) |
|---|---|---|
| Net Cash from Operating Activities | $446.5 | $1,300.0 |
| Capital Expenditures | $242.8 | $600.4 |
| Total Capital Expenditures (2024 Estimate) | $750.0 | - |
Strategic Focus
Old Dominion continues to emphasize its commitment to superior service, achieving a 99% on-time service rate and a cargo claims ratio of 0.1%. This focus on service quality is expected to support ongoing market share growth and profitability.
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Article updated on 8 Nov 2024
Resources:
- Old Dominion Freight Line, Inc. (ODFL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Old Dominion Freight Line, Inc. (ODFL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Old Dominion Freight Line, Inc. (ODFL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.