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Mar 31, 2023

Old Dominion Q1 2023 Earnings Report

Old Dominion's financial performance reflected a challenging operating environment with decreased volumes, leading to declines in quarterly revenue and earnings per diluted share.

Key Takeaways

Old Dominion Freight Line reported a decrease in revenue and earnings per share for Q1 2023, driven by a decline in LTL tonnage. Despite the volume decrease, the company maintained market share and improved yield. The company expects its aggregate capital expenditures for 2023 to total approximately $700 million.

First quarter earnings per diluted share were $2.58, a 0.8% decrease compared to Q1 2022.

Total revenue decreased by 3.7% to $1,442,136,000.

LTL tonnage per day decreased by 11.9%, while LTL revenue per hundredweight increased by 9.2%.

The operating ratio increased to 73.4% from 72.9% in the same period last year.

Total Revenue
$1.44B
Previous year: $1.5B
-3.7%
EPS
$1.29
Previous year: $1.3
-0.8%
LTL Revenue Per CWT
$30.7
Previous year: $28.1
+9.2%
LTL Tons
2.34M
Avg. Length of Haul (miles)
925
Previous year: 939
-1.5%
Gross Profit
$491M
Previous year: $506M
-2.9%
Cash and Equivalents
$208M
Previous year: $262M
-20.8%
Total Assets
$4.96B
Previous year: $4.72B
+5.0%

Old Dominion

Old Dominion

Old Dominion Revenue by Segment

Forward Guidance

Old Dominion is focused on delivering superior service at a fair price and managing the fundamental aspects of the business to win market share and produce long-term profitable growth.

Positive Outlook

  • Focus on superior service and fair pricing.
  • Commitment to managing business fundamentals.
  • Aims to win market share over the long term.
  • Positioned to produce long-term profitable growth.
  • Focused on increased shareholder value.

Challenges Ahead

  • Challenging economic and operating environment.
  • Softness in the domestic economy.
  • Decline in volumes.
  • Fixed cost categories increased as a percent of revenue due to the deleveraging effect associated with the decrease in revenue.
  • Increased depreciation and certain operating supplies and expenses due to long-term investments in service center and equipment capacity.

Revenue & Expenses

Visualization of income flow from segment revenue to net income