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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.
Revenue by Segment
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.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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