|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||181.75 - 186.44|
|52 Week Range||104.61 - 190.13|
|Beta (5Y Monthly)||1.06|
|PE Ratio (TTM)||36.94|
|Earnings Date||Oct 22, 2020 - Oct 26, 2020|
|Forward Dividend & Yield||0.60 (0.33%)|
|Ex-Dividend Date||Sep 01, 2020|
|1y Target Est||168.27|
Old Dominion Freight Line (NASDAQ: ODFL) has already opened nine new less-than-truckload (LTL) terminals so far in 2019, it announced Monday. The Thomasville, North Carolina-based carrier's network of service centers now stands at 238.The facilities have been added in new and existing markets in efforts to expand capacity and improve shipping times."Even during an unprecedented time, we will continue to invest in our network and look for additional ways to improve our operations. Our goal is to build capacity to win market share, while shortening response time and transit times. Our investments align with our long-term strategic plan of investing in our business," Senior Vice President of Strategic Planning Chip Overbey said in a news release.The company reiterated its 2020 capital outlay of $195 million for real estate and expansion projects in its second-quarter earnings release last week. On its second-quarter earnings call, management noted several opportunities to increase its market share. They said that some of the freight the carrier had lost to lower prices early in the quarter was coming back to their network as shippers appear more willing to pay a premium for service.Old Dominion originally expected terminal projects to total $245 million at the beginning of the year before COVID-19 cast uncertainty on freight markets.On the call, management said revenue per day was down 19.3% year-over-year in April, the peak of the COVID downturn, but improved as the quarter progressed. The year-over-year revenue decline was 11.4% in June, with July only seeing a 3% dip as manufacturers have resumed operations and supply chains restock depleted inventories.The new facilities, representing nearly 500 doors, are located in Montana, Iowa, Texas, Arkansas, Indiana, Georgia, New York and two in Illinois. The bulk of the new door space is incremental, and the facilities have been constructed with the ability to expand in the future."Our customers are having to adapt to these rapidly changing times. Our newest service centers are integral to Old Dominion Freight Line's operations, accommodating unique customer needs and shipping higher volumes of goods. We will continue to invest in long-term solutions to help our customers keep their promises," concluded Overbey.Click for more FreightWaves articles by Todd Maiden. * Forward Air to expand pursuit of traditional less-than-truckload market * Intermodal growth here to stay, says Hub Group * Schneider eyes deployment of growing cash balanceSee more from Benzinga * Canadian Railways Expect Steady Grain Carload Volumes In 2020-2021 * Funding Go-Ahead For Mississippi River Deepening Seen As Boon For Exports * Isaias Disrupting East Coast Markets – FreightWaves NOW(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Leading LTL carrier invests in service center capacity to continue award-winning service THOMASVILLE, N.C., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Old Dominion Freight Line, Inc. expands its network by adding nine service centers in new and existing markets during the first half of 2020. The steady growth solidifies the company’s strong presence across the United States, bringing total nationwide service center count to 238. The less-than-truckload (LTL) carrier’s new facilities include, Butte, Mont., Cedar Rapids, Iowa, Conroe, Texas, Jonesboro, Ark., Lafayette, Ind., LaGrange, Ga., Rochester, N.Y, Rock Island, Ill. and University Park, Ill.The nine new and renovated service centers are strategically placed for operational efficiency and designed with innovative technology. The Company’s investment in each market will support capacity needs, improve shipping time, and enhance delivery flexibility, allowing Old Dominion to better serve customers.“Even during an unprecedented time, we will continue to invest in our network and look for additional ways to improve our operations,” said Chip Overbey, senior vice president of strategic planning. “Our goal is to build capacity to win market share, while shortening response time and transit times. Our investments align with our long-term strategic plan of investing in our business.”Old Dominion selects new locations with the intent of better serving customers. Each service center is built with future growth in mind, including room to increase door-count, potential to hire additional employees, and equipped to leverage the latest technology. The new facilities allow the company to operate with a high standard of excellence and a commitment to employee growth, who are the backbone of each operation.“Our customers are having to adapt to these rapidly changing times. Our newest service centers are integral to Old Dominion Freight Line’s operations, accommodating unique customer needs and shipping higher volumes of goods. We will continue to invest in long-term solutions to help our customers keep their promises,” said Overbey.Old Dominion’s service center openings include: * Butte, Mont. – Butte is strategically located near two major highways, I-90 and I-15, and in close proximity to two class I railroads, the Union Pacific Railroad and Burlington Northern Sante Fe Railroad. In addition, the port of Montana provides a variety of services. This 20.25-acre and 42-door service center is a critical gateway to improve deliveries to Canada's international border. As one of six service centers in Montana, this location allows Old Dominion to improve service offerings, shipping times, and better serve customers. * Cedar Rapids, Iowa – Located on nine acres, the Cedar Rapids service center operates with 44 doors and room to increase by up to 20 doors in the future. The facility will service the surrounding communities, including Cedar Rapids, Waterloo, Cedar Falls, Iowa City, Mt. Pleasant, Manchester, and Dyersville, where “Field of Dreams” from the 1989 movie is located. * Conroe, Texas – As the Houston metro area continues to see sustained growth, Old Dominion adds an additional service center to the market. This facility has 63 doors on nearly 25 acres and is equipped to expand by up to 100 more doors if needed. The Conroe service center currently has 27 employees. * Jonesboro, Ark. – Just three miles from its previous location, the new Jonesboro service center is one of the largest LTL facilities in Northeast Arkansas and the Missouri Bootheel. The new facility is sixty-four percent larger than the previous location, sitting on 14.67 acres of land, with 44 doors and the potential to add over 30 more doors. As one of four Old Dominion service centers in Arkansas, the Company has proudly served this community for over 12 years. * Lafayette, Ind. – Old Dominion opened the Lafayette service center to accommodate the region’s recent growth. The new facility sits on 23.1 acres with 42 doors and space to double the door count in the future. As the sixth service center in Indiana, the Lafayette location will increase capacity in the area and help OD to provide faster response and service times. The service center immediately created eight new jobs. * LaGrange, Ga. – Located near the Georgia and Alabama border, the move to the new 63-door service center sits in a prime location by two major interstates, I-85 and I-185, and near major retail distribution centers and industrial manufacturers. The LaGrange location is one of ten service centers in the Peach State. * Rochester, N.Y. – Old Dominion returns to the Rochester area after moving operations to a nearby community in the early 2000s. This service center brought 17 new jobs to the community. The remodeled facility has 28 doors and sits in a central location to offer closer proximity to customers. The Rochester location plays a critical role in delivering shipments to and from Canada. * Rock Island, Ill. – The Rock Island service center serves major markets like Chicago, Milwaukee, Minneapolis, Des Moines, Kansas City, St. Louis, Omaha and Indianapolis. Located only a few minutes from the second-longest interstate in the country, I-80, the 77-door facility was built on 24 acres. Over the last five years, the economic strength in the Quad-Cities region increased by 5.2 percent. * University Park, Ill. – Out of all of the new service centers this year, the University Park facility has the highest door count with 86 doors. It is strategically placed to provide easy access to the state's major interstates, I-57, I-355, I-80, I-294, and I-94. A high door count and ideal location allows the Company to reduce stem time to the customers and adds more capacity. The new facility moves a variety of essential products like food, cleaning supplies, tires, over-length items and more. This service center also has a unique feature where the dock has trailer bumpers, which helps keep the elements out of the dock.The newest service centers are examples of Old Dominion’s investment and commitment to its customers as the Company continues to enter new markets, operate with efficiency to meet high standards and further solidify OD’s promise of transporting shipments on-time and in-full.For more information about Old Dominion, visit www.odfl.com or call (800) 432-6335. On Twitter: @ODFL_Inc and Facebook: Old Dominion Freight Line Inc. About Old Dominion Freight Line, Inc.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.Attachment * Cedar Rapids, IA Service Center CONTACT: Kate Redding Old Dominion Freight Line 404-266-7578 firstname.lastname@example.org
With numerous metrics to determine how a less-than-truckload (LTL) company is doing, the CFO at Old Dominion Freight Line, Inc. (NYSE: ODFL) talked this week about the measurement that his company likes to look at: revenue per shipment.In a conference call with earnings analysts following the release of the company's strong second-quarter earnings report, ODFL CFO Adam Satterfield said that metric is one that the company favors as a barometer of the strength of the business. "We believe revenue per shipment is a better measurement, as we focus internally on maintaining a positive spread between our revenue and cost per shipment," Satterfield said.Focusing on that spread is vital, Satterfield said. "Managing those two factors [revenue and cost per shipment] has really been a key contributor to our long-term ratio improvement," he said. Old Dominion's operating ratio was 10 basis points improved in the quarter. It's a small amount, but it stands in sharp contrast to XPO, where the OR in its LTL division shot up about 10 percentage points, depending on the measuring stick. While some of ODFL's metrics were down in the challenging second quarter, revenue per shipment was up. Old Dominion's revenue per shipment excluding fuel was $321.47, up from $306.37, a gain of 4.9%. Satterfield said that rate of increase was "relatively consistent with the change in the first quarter of 2020, as well as our long-term trends." The gain in revenue per shipment stood in contrast to some other key LTL metrics that declined (yet the company's OR improved regardless). Old Dominion's revenue per hundredweight, another key metric, was down to $21.85 from $22.72.But Satterfield noted that revenue per hundredweight has some flaws. According to a transcript of the earnings call supplied by SeekingAlpha, Satterfield said that metric is subject to "multiple factors" that can have a "significant impact" on its calculation. He specified average length of haul and weight per shipment as two of those factors. The relationship between changes in revenue per hundredweight and changes in Old Dominion's mix of freight are not "linear," Satterfield said. "As a result, revenue per hundredweight is a tough measure to evaluate, when the mix of our business changes so significantly like it did during the second quarter," he said.Weight per shipment was volatile during the second quarter for Old Dominion, one of the reasons why Satterfield suggested revenue per hundredweight was a less-than-stellar barometer. Satterfield said Old Dominion's weight per shipment was about 1,600 pounds in January and February and then climbed to 1,677 pounds in April. It worked its way back toward 1,600 pounds in June. View more earnings on ODFLWeight per shipment, depending on the mix, is a double-edged sword for LTL carriers. Depending on what is driving the gains, higher is not necessarily better. Satterfield said one of the reasons it reached the 1,670-pound level is that in the early days of the pandemic, national accounts continued to be consistent users of Old Dominion's services but some smaller accounts did not. Some of those smaller accounts are returning to the fold, Satterfield said, bringing the number back to 1,600. That bigger is not always better was evident in this answer from Satterfield to an analyst's question: "We're happy to see it kind of coming back to the 1,600-pound range. If we can see that stay around that sort of level for the time being, that would be a good trend and contributor too to the overall revenue per shipment that we're seeing."Price negotiations are more positive than revenue per hundredweight indicatesSatterfield, noting that drop in revenue per hundredweight, said that could be construed as a sign of a weakening market. But the CFO said that is not the case. "While the change in revenue per hundredweight might suggest otherwise, we continue to negotiate rate increases during the second quarter and believe underlying pricing trends remained relatively consistent," he said. Satterfield, in response to an analyst's question, said Old Dominion did lose some business earlier in the year as it stuck to the line on pricing. "In the early part of this quarter, that may have impacted some of our volumes as well," he said. "But ... we are starting to see some volumes coming back to us. That's been an encouraging trend."CEO Greg Gantt echoed Satterfield, noting the return of some lost business. "We did see customers more likely to put out bids and rebid the freight, and that was definitely a challenge for us," Gantt said. But he added that Old Dominion did gain some business from competitors, "and fortunately, we are gaining back some revenue that we lost earlier, because they couldn't meet the service standards they had with us."On a separate issue, Gantt said Old Dominion has "somewhat of an appetite for an acquisition. I just don't know who that is or exactly what that is." He added that ODFL is "not looking at anything currently."More articles by John KingstonRyder sees weak market for used vehicles lingering, and it has a glut of themU.S. Xpress has strong second quarterDrilling Deep: The LTL model adapts to the COVID-19 worldSee more from Benzinga * Old Dominion Held The Line On Costs, Has Slight Uptick In OR Even As Volume Dropped * Geofencing Data: Less-Than-Truckload Boost Carries Into June * Trying To Make Sense Of The YRC Bailout(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.