odfl-ex991

THOMASVILLE, N.C. - (February 7, 2019) - Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today announced financial results for the three-month and twelve-month periods ended December 31, 2018, which include the following:

	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
(In thousands, except per share amounts)	2018			2017			% Chg.			2018			2017			% Chg.
Total revenue	$	1,026,944		$	891,117			15.2	%	$	4,043,695		$	3,358,112			20.4	%
LTL services revenue	$	1,011,259		$	877,192			15.3	%	$	3,982,658		$	3,303,611			20.6	%
Other services revenue	$	15,685		$	13,925			12.6	%	$	61,037		$	54,501			12.0	%
Operating income	$	218,845		$	143,457			52.6	%	$	817,051		$	575,886			41.9	%
Operating ratio		78.7	%		83.9	%					79.8	%		82.9	%
Net income	$	159,459		$	197,250			(19.2	)%	$	605,668		$	463,774			30.6	%
Diluted earnings per share	$	1.95		$	2.39			(18.4	)%	$	7.38		$	5.63			31.1	%
Diluted weighted average shares outstanding		81,587			82,376			(1.0	)%		82,020			82,407			(0.5	)%

“Old Dominion delivered strong financial results for the fourth quarter of 2018, allowing us to complete the year with new Company records for annual revenue and profitability,” remarked Greg C. Gantt, President and Chief Executive Officer of Old Dominion Freight Line, Inc. “We exceeded $1.0 billion of revenue while maintaining an operating ratio below 80.0% for the third straight quarter and were pleased to exceed $4.0 billion of annual revenue for the first time in our Company’s history. The consistent growth in our revenue throughout the fourth quarter reflected the strength of the domestic economy and our ongoing ability to win market share. We continue to win market share by providing shippers with superior service at a fair price, which included 99% on-time deliveries and a cargo claims ratio of 0.3% in the fourth quarter.

“The revenue growth for the fourth quarter was primarily due to a 12.9% increase in LTL revenue per hundredweight and a 2.9% increase in LTL tonnage. The increase in our LTL tonnage included a 6.5% increase in LTL shipments that was partially offset by a 3.3% decrease in LTL weight per shipment. This decrease in LTL weight per shipment, which we expected, is consistent with the trend that we identified and explained earlier in 2018. Our LTL revenue per hundredweight benefitted from the decrease in weight per shipment as well as the 1.0% increase in average length of haul, as the changes to each of these metrics generally result in an increased yield. The improvement in our revenue per hundredweight also

reflects our continued focus on individual account profitability, which requires a consistent and long-term improvement in yield to offset our cost inflation while also supporting the continued investment in our business.

“Our operations were very efficient in the fourth quarter of 2018, with an operating ratio that improved 520 basis points to 78.7% from 83.9% in the fourth quarter of 2017. This improvement was primarily the result of quality revenue growth, which allowed us to leverage certain costs, as well as a decrease in our direct operating costs as a percent of revenue. In addition, our fringe benefit costs as a percent of salaries and wages improved to 30.7% as compared to 32.6% in the fourth quarter of 2017. The combination of revenue growth and the improvement in our operating ratio drove a 51.1% increase in income before taxes to $217.4 million. Quarterly earnings per diluted share, however, decreased 18.4% to $1.95, due primarily to the $104.9 million net tax benefit included in the fourth quarter of 2017 as a result of the Tax Cuts and Jobs Act.”

Old Dominion’s net cash provided by operating activities was $224.7 million for the fourth quarter of 2018 and $900.1 million for the year. The Company had $190.3 million in cash and cash equivalents at December 31, 2018, and its ratio of debt-to-total capitalization was 1.7% compared with 4.0% at December 31, 2017.

Capital expenditures were $118.4 million for the fourth quarter of 2018 and $588.3 million for the year. The Company expects its capital expenditures for 2019 to total approximately $490 million, including planned expenditures of $220 million for real estate and service center expansion projects; $175 million for tractors and trailers; and $95 million for information technology and other assets.

Old Dominion returned $97.2 million of capital to its shareholders in the fourth quarter of 2018 and $205.8 million for the year. The 2018 total includes $42.6 million in cash dividends and $163.2 million of share repurchases.

The Company’s Board of Directors has declared a first-quarter dividend of $0.17 per share, which is a 30.8% increase to the quarterly cash dividend paid in the first quarter of 2018. The dividend is payable on March 20, 2019, to shareholders of record at the close of business on March 6, 2019.

Mr. Gantt concluded, “Our strong operating performance for the fourth quarter and throughout 2018 reflects the consistent execution of our long-term strategy and relentless focus on delivering value to our customers and shareholders. As we begin 2019, we remain committed to our proven business model that has produced long-term profitable growth throughout many economic cycles. This includes not only providing shippers with superior service at a fair price, but also consistently investing in our OD Family of employees and service center capacity to sustain the momentum in our business. With a favorable economic outlook and ongoing demand for our services, we believe Old Dominion is well-positioned to produce profitable growth and increase shareholder value in 2019.”

Old Dominion will hold a conference call to discuss this release today at 10:00 a.m. Eastern Time. Investors will have the opportunity to listen to the conference call live over the Internet by going to ir.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 March 7, 2019. A telephonic replay will also be available through February 15, 2019, at (719) 457-0820, Confirmation Number 6987290.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution the reader 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, including the use of fuel surcharges, which could negatively impact our total overall pricing strategy and our ability to cover our operating expenses; (2) our ability to collect fuel surcharges and the effectiveness of those fuel surcharges in mitigating the impact of fluctuating prices for diesel fuel and other petroleum-based products; (3) the negative impact of any unionization, or the passage of legislation or regulations that could facilitate unionization, of our employees; (4) the challenges associated with executing our growth strategy, including our ability to successfully consummate and integrate

any acquisitions; (5) changes in our goals and strategies, which are subject to change at any time at our discretion; (6) various economic factors such as recessions, downturns in the economy, global uncertainty and instability, changes in international trade policies, changes in U.S. social, political, and regulatory conditions or a disruption of financial markets, which may decrease demand for our services or increase our costs; (7) the impact of changes in tax laws, rates, guidance and interpretations, including those related to certain provisions of the Tax Cuts and Jobs Act; (8) increases in driver and maintenance technician compensation or difficulties attracting and retaining qualified drivers and maintenance technicians to meet freight demand; (9) our exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation, group health and group dental, including increased premiums, adverse loss development, increased self-insured retention levels and claims in excess of insured coverage levels; (10) cost increases associated with employee benefits, including costs associated with employee healthcare plans; (11) the availability and cost of capital for our significant ongoing cash requirements; (12) the availability and cost of new equipment and replacement parts, including regulatory changes and supply constraints that could impact the cost of these assets; (13) decreases in demand for, and the value of, used equipment; (14) the availability and cost of diesel fuel; (15) 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, driver fitness requirements and new safety standards for drivers and equipment; (16) the costs and potential liabilities related to various legal proceedings and claims that have arisen in the ordinary course of our business, some of which include class-action allegations; (17) the costs and potential liabilities related to governmental proceedings, inquiries, notices or investigations; (18) the costs and potential liabilities related to our international business relationships; (19) the costs and potential adverse impact of compliance with, or violations of, current and future rules issued by the Department of Transportation, the Federal Motor Carrier Safety Administration (the “FMCSA”) and other regulatory agencies; (20) the costs and potential adverse impact of compliance associated with FMCSA’s electronic logging device (“ELD”) regulations and guidance, including the integration of related hardware and software and the interoperability between legacy electronic automatic on-board recording devices and ELDs; (21) seasonal trends in the less-than-truckload industry, including harsh weather conditions and disasters; (22) our dependence on key employees; (23) the concentration of our stock ownership with the Congdon family; (24) the costs and potential adverse impact associated with future changes in accounting standards or practices; (25) potential costs associated with cyber incidents and other risks, including system failure, security breach, disruption by malware or other damage; (26) failure to keep pace with developments in technology, any disruption to our technology infrastructure, or failures of essential services upon which our technology platforms rely, which could cause us to incur costs or result in a loss of business; (27) the costs and potential adverse impact associated with transitional challenges in upgrading or enhancing our technology systems; (28) damage to our reputation through unfavorable publicity; (29) the costs and potential adverse impact of compliance with anti-terrorism measures on our business; (30) dilution to existing shareholders caused by any issuance of additional equity; (31) the impact of a quarterly cash dividend or the failure to declare future cash dividends; (32) fluctuations in the market value of our common stock; (33) the impact of certain provisions in our articles of incorporation, bylaws, and Virginia law that could discourage, delay or prevent a change in control of us or a change in our management; and (34) other risks and uncertainties described in our most recent Annual Report on Form 10-K and other filings with the SEC. Our forward-looking statements are based upon our beliefs and assumptions using information available at the time the statements are made. We caution the reader not to place undue reliance on our forward-looking statements as (i) these statements are neither a prediction nor a guarantee of future events or circumstances and (ii) the assumptions, beliefs, expectations and projections about future events may differ materially from actual results. We undertake no obligation to publicly update any forward-looking statement to reflect developments occurring after the statement is made, except as otherwise required by law.

Old Dominion Freight Line, Inc. is a leading, less-than-truckload (“LTL”), union-free motor carrier providing regional, inter-regional and national LTL services through a single integrated organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. Through strategic alliances, the Company also provides LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.

OLD DOMINION FREIGHT LINE, INC.
Statements of Operations

	Fourth Quarter										Year to Date
(In thousands, except per share amounts)	2018					2017					2018					2017
Revenue	$	1,026,944		100.0	%	$	891,117		100.0	%	$	4,043,695		100.0	%	$	3,358,112		100.0	%

Operating expenses:
Salaries, wages & benefits		515,529		50.2	%		482,233		54.1	%		2,075,602		51.3	%		1,802,440		53.7	%
Operating supplies & expenses		126,026		12.3	%		106,688		12.0	%		491,030		12.1	%		381,798		11.4	%
General supplies & expenses		28,104		2.7	%		27,793		3.1	%		119,180		2.9	%		107,733		3.2	%
Operating taxes & licenses		29,305		2.9	%		26,248		2.9	%		112,210		2.8	%		99,778		3.0	%
Insurance & claims		9,608		1.0	%		12,914		1.4	%		44,118		1.1	%		41,718		1.2	%
Communications & utilities		8,370		0.8	%		6,809		0.8	%		31,070		0.8	%		27,754		0.8	%
Depreciation & amortization		62,555		6.1	%		53,093		6.0	%		230,357		5.7	%		205,763		6.2	%
Purchased transportation		22,860		2.2	%		23,151		2.6	%		96,017		2.4	%		84,747		2.5	%
Building and office equipment rents		1,391		0.1	%		1,870		0.2	%		6,446		0.2	%		7,984		0.2	%
Miscellaneous expenses, net		4,351		0.4	%		6,861		0.8	%		20,614		0.5	%		22,511		0.7	%

Total operating expenses		808,099		78.7	%		747,660		83.9	%		3,226,644		79.8	%		2,782,226		82.9	%

Operating income		218,845		21.3	%		143,457		16.1	%		817,051		20.2	%		575,886		17.1	%

Non-operating expense (income):
Interest expense		138		0.0	%		362		0.0	%		189		0.0	%		2,154		0.1	%
Interest income		(1,211	)	(0.1	)%		(408	)	(0.0	)%		(3,113	)	(0.1	)%		(740	)	(0.0	)%
Other expense (income), net		2,567		0.2	%		(361	)	(0.0	)%		4,462		0.1	%		(1,360	)	(0.1	)%

Income before income taxes		217,351		21.2	%		143,864		16.1	%		815,513		20.2	%		575,832		17.1	%

Provision for income taxes		57,892		5.7	%		(53,386	)	(6.0	)%		209,845		5.2	%		112,058		3.3	%

Net income	$	159,459		15.5	%	$	197,250		22.1	%	$	605,668		15.0	%	$	463,774		13.8	%

Earnings per share:
Basic	$	1.96				$	2.40				$	7.39				$	5.63
Diluted		1.95					2.39					7.38					5.63

Weighted average outstanding shares:
Basic		81,496					82,282					81,924					82,308
Diluted		81,587					82,376					82,020					82,407

OLD DOMINION FREIGHT LINE, INC.
Operating Statistics

	Fourth Quarter									Year to Date
	2018			2017			% Chg.			2018			2017			% Chg.
Work days		62			62			-	%		253			253			-	%
Operating ratio		78.7	%		83.9	%					79.8	%		82.9	%
LTL intercity miles ⁽¹⁾		166,180			158,119			5.1	%		674,506			605,204			11.5	%
LTL tons ⁽¹⁾		2,275			2,211			2.9	%		9,379			8,519			10.1	%
LTL shipments⁽¹⁾		2,870			2,696			6.5	%		11,748			10,736			9.4	%
LTL revenue per intercity mile	$	6.09		$	5.51			10.5	%	$	5.91		$	5.46			8.2	%
LTL revenue per hundredweight	$	22.24		$	19.70			12.9	%	$	21.25		$	19.39			9.6	%
LTL revenue per hundredweight, excluding fuel surcharges	$	19.16		$	17.30			10.8	%	$	18.38		$	17.20			6.9	%
LTL revenue per shipment	$	352.65		$	322.97			9.2	%	$	339.35		$	307.66			10.3	%
LTL revenue per shipment, excluding fuel surcharges	$	303.80		$	283.60			7.1	%	$	293.42		$	272.97			7.5	%
LTL weight per shipment (lbs.)		1,586			1,640			(3.3	)%		1,597			1,587			0.6	%
Average length of haul (miles)		923			914			1.0	%		918			917			0.1	%
Average full-time employees		21,381			19,000			12.5	%		20,671			18,103			14.2	%

Note: The financial and operating statistics in this press release are unaudited.


Contact:	Adam N. Satterfield
	Senior Vice President, Finance and Chief Financial Officer
	(336) 822-5721

OLD DOMINION FREIGHT LINE, INC.
Balance Sheets

	December 31,		December 31,
(In thousands)	2018		2017
Cash and cash equivalents	$	190,282	$	127,462
Other current assets		515,947		457,191
Total current assets		706,229		584,653
Net property and equipment		2,754,943		2,404,459
Other assets		84,111		79,312
Total assets	$	3,545,283	$	3,068,424

Current maturities of long-term debt	$	-	$	50,000
Other current liabilities		356,732		301,049
Total current liabilities		356,732		351,049
Long-term debt		45,000		45,000
Other non-current liabilities		463,068		395,521
Total liabilities		864,800		791,570
Equity		2,680,483		2,276,854
Total liabilities & equity	$	3,545,283	$	3,068,424

(1) -	In thousands
Note:	Our LTL operating statistics exclude certain transportation and logistics services where pricing is generally not determined by weight. These statistics also exclude adjustments to revenue for undelivered freight required for financial statement purposes in accordance with our revenue recognition policy.