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Mar 31, 2022
Old Dominion Q1 2022 Earnings Report
Old Dominion reported first quarter earnings with record revenue and earnings per share.
Key Takeaways
Old Dominion Freight Line reported a strong start to 2022, achieving record revenue and earnings per diluted share in the first quarter. The company's revenue increased by 32.9%, driven by a 17.4% increase in LTL revenue per hundredweight and a 12.0% increase in LTL tons per day. The operating ratio improved to a record 72.9% for the first quarter, reflecting improvements in freight density and yield.
Revenue increased by 32.9% due primarily to a 17.4% increase in LTL revenue per hundredweight and a 12.0% increase in LTL tons per day.
Operating ratio improved 320 basis points to 72.9%, a new Company record for the first quarter.
Net cash provided by operating activities was $388.7 million.
The Company utilized $438.4 million of cash for its share repurchase program, including a $400.0 million accelerated share repurchase agreement, and paid $34.2 million in cash dividends during the quarter.
Old Dominion
Old Dominion
Old Dominion Revenue by Segment
Revenue by Segment
LTL Services Revenue
CapyFin.comOther Services Revenue
CapyFin.com Forward Guidance
Old Dominion expects to continue investing in its network capacity and OD Family of employees to support long-term growth initiatives and produce further profitable growth and increased shareholder value.
Positive Outlook
- The company intends to continue hiring additional employees during the second quarter of 2022 to support anticipated growth and reduce reliance on purchased transportation.
- The company expects its aggregate capital expenditures for 2022 to total approximately $825 million, including planned expenditures of $300 million for real estate and service center expansion projects; $485 million for tractors and trailers; and $40 million for information technology and other assets.
- The company's long-term strategic plan is focused on providing customers with superior service at a fair price and continuously investing in equipment and network capacity to stay ahead of anticipated volume growth.
- The company's strategic plan has allowed them to double their market share over the past ten years.
- The company is confident in its ability to produce further profitable growth and increased shareholder value.
Challenges Ahead
- Challenges associated with executing growth strategy and consistently delivering high-quality services.
- Risks related to public health epidemics, pandemics, including the continuing impact of the COVID-19 pandemic.
- Changes in relationships with significant customers.
- Exposure to claims related to cargo loss and damage, property damage, personal injury, workers’ compensation and healthcare.
- Availability and cost of new equipment, including regulatory changes and supply constraints that could impact the cost of these assets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income