Adjustments for Non-Cash Items [USD]

Stock-Based Compensation [USD]

Changes in Working Capital [USD]

Capital Expenditures (CapEx) [USD]

Proceeds from / Repayments of Debt [USD]

Share Repurchases [USD]

Dividend Payments [USD]

Net Change in Cash [USD]

d47399a48d8d6dee298f58565eb0c5f17d992216f3400ece2d29e76dbee2dc5a

| Metric [USD Thousands] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Total Revenue**      | **1,491,659**  **[0000950170-23-001533_odfl-ex99_1.htm:0]**  | **1,442,136**  **[0000950170-23-014592_odfl-ex99_1.htm:5]**  | **1,413,189**  **[0000950170-23-034576_odfl-ex99_1.htm:0]**  | **1,515,277**  **[0000950170-23-055015_odfl-ex99_1.htm:0]**  | **1,495,550**  **[0000950170-24-009181_odfl-ex99_1.htm:0]**  | **1,460,073**  **[0000950170-24-047274_odfl-ex99_1.htm:0]**  | **1,498,697**  **[0000950170-24-085869_odfl-ex99_1.htm:0]**  | **1,470,211**  **[0000950170-24-116488_odfl-ex99_1.htm:0]**  |
| **LTL Services Revenue** | **1,473,663**  **[0000950170-23-001533_odfl-ex99_1.htm:0]**  | **1,424,372**  **[0000950170-23-014592_odfl-ex99_1.htm:0]**  | **1,397,815**  **[0000950170-23-034576_odfl-ex99_1.htm:0]**  | **1,501,266**  **[0000950170-23-055015_odfl-ex99_1.htm:0]**  | **1,481,486**  **[0000950170-24-009181_odfl-ex99_1.htm:0]**  | **1,446,733**  **[0000950170-24-047274_odfl-ex99_1.htm:0]**  | **1,484,967**  **[0000950170-24-085869_odfl-ex99_1.htm:0]**  | **1,457,108**  **[0000950170-24-116488_odfl-ex99_1.htm:0]**  |
| **Other Services Revenue** | **17,996**  **[0000950170-23-001533_odfl-ex99_1.htm:0]**  | **17,764**  **[0000950170-23-014592_odfl-ex99_1.htm:5]** **[0000950170-23-014592_odfl-ex99_1.htm:0]**  | **15,374**  **[0000950170-23-034576_odfl-ex99_1.htm:0]**  | **14,011**  **[0000950170-23-055015_odfl-ex99_1.htm:0]**  | **14,064**  **[0000950170-24-009181_odfl-ex99_1.htm:0]**  | **13,340**  **[0000950170-24-047274_odfl-ex99_1.htm:0]**  | **13,730**  **[0000950170-24-085869_odfl-ex99_1.htm:0]**  | **13,103**  **[0000950170-24-116488_odfl-ex99_1.htm:0]**  |

1edd62fcbcbbfece2a882ceb5d7c23d10195e5541ee1d6dab2a3d70d607c95ac

Old Dominion Freight Line, Inc. (ODFL) is one of the largest North American less-than-truckload (LTL) motor carriers, offering regional, inter-regional, and national LTL services through a single integrated, union-free organization **[0000950170-24-020176_odfl-20231231.htm:3]** **[0000950170-24-020176_odfl-20231231.htm:57]** **[0000950170-24-054284_odfl-20240331.htm:8]** **[0000950170-24-090872_odfl-20240630.htm:10]** **[0000950170-24-122440_odfl-20240930.htm:11]**. The company provides expedited transportation, container drayage, truckload brokerage, and supply chain consulting, supported by a vast network of service centers across the continental United States and strategic alliances for broader North American coverage **[0000950170-24-020176_odfl-20231231.htm:3]** **[0000950170-24-020176_odfl-20231231.htm:57]** **[0000950170-24-054284_odfl-20240331.htm:8]** **[0000950170-24-090872_odfl-20240630.htm:10]** **[0000950170-24-122440_odfl-20240930.htm:11]**. More than 98% of ODFL's revenue is historically derived from transporting LTL shipments, with demand generally tied to industrial production and the overall health of the U.S. domestic economy **[0000950170-24-020176_odfl-20231231.htm:3]** **[0000950170-24-054284_odfl-20240331.htm:8]** **[0000950170-24-090872_odfl-20240630.htm:10]** **[0000950170-24-122440_odfl-20240930.htm:11]**.

1. **Less-Than-Truckload (LTL) Services** - Offers regional, inter-regional, and national LTL transportation services, forming the core of the company's operations and revenue.
2. **Expedited Transportation** - Provides fast and reliable transportation solutions for time-sensitive shipments.
3. **Container Drayage** - Facilitates the movement of containers between ports and inland destinations.
4. **Truckload Brokerage** - Connects shippers with carriers for full truckload transportation needs.
5. **Supply Chain Consulting** - Offers expert advice and strategies to optimize supply chain operations.

97676e72914e59af9e7190611e17e34fe8a4b9886d6871c1a5b22aeae9b4e445

1. Given the ongoing decrease in revenue and the increase in your operating ratio to 72.7% this quarter, are there any plans to cut costs or shed excess capacity to improve margins, especially as fixed costs are pressuring the industry?  **[ODFL_3403384_16]** 
2. How do you plan to address the impact of recent hurricanes on your network operations and customer shipments, and do you expect this disruption to affect your fourth-quarter performance?  **[ODFL_3403384_15]** 
3. With the uncertainty around the upcoming election causing customers to pause, can you differentiate between temporary pauses and ongoing industrial macro headwinds, and how are you planning for potential demand fluctuations?  **[ODFL_3403384_22]** 
4. Your tonnage has declined due to continued economic softness; what specific strategies are you implementing to improve volumes, and where are you seeing pockets of weaker-than-expected activity in your customer base?  **[ODFL_3403384_12]** 
5. Considering the substantial increase in your share repurchase program compared to last year and the modest dividend yield, can you explain the rationale for favoring buybacks over dividends, and does this indicate that you believe the stock is undervalued?  **[ODFL_3403384_11]** 

425336d411d7619352b3afdb56a97a50665df9d79a0b26d64368e635fe605ef1

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | July 28, 2021  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**     | July 26, 2023  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**     |
| End Date/Duration        | Completed in May 2024  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**  | No expiration date  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**  |
| Total additional amount  | $2.0 billion  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**      | $3.0 billion  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**      |
| Remaining authorization  | N/A (Program completed)  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**  | $2.44 billion  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**    |
| Details                  | Program completed  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**  | $2.40 billion uncommitted, reflecting a $40.0 million forward stock purchase contract under the ASR Agreement  **[0000950170-24-122440_odfl-20240930.htm:31]** **[0000950170-24-122440_odfl-20240930.htm:7]** **[0000950170-24-122440_odfl-20240930.htm:20]**  |

6ac8d0d5501f030cc8551d33123e9c6d626ff0d1ac098fcdecedff48b30141c4

59465a322fe2b677cc7349d5f25bb522a9d63337cf8e786cc94a40cdca1673b7

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

df01dcbcaae6fbfc6f7485de2bae8928b05e3540b5c8fbf32f9864b4a60a702e

f718f761f1320786e50ccad072a28c3af292a3fe391a538d4e36afe834ffe64e

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Operating Ratio**: Expected deterioration of about **200 to 250 basis points**, with an additional **100 basis points** due to revenue risks and fringe benefit costs  **[ODFL_3403384_4]** .
  2. **Revenue and Volume Trends**: Expected revenue per day decrease of **11.2% to 11.8%** and LTL tons per day decrease of **9.2% to 9.8%** for October  **[ODFL_3403384_3]** .
  3. **Yield Performance**: Expected increase in revenue per hundredweight, excluding fuel surcharges, of **3.8% to 4.2%**  **[ODFL_3403384_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **Revenue per Day**: Expected increase of **4% to 4.5%** in July 2024  **[ODFL_3394120_3]** .
  2. **Operating Ratio**: Anticipated **50 basis point increase** sequentially from Q2 to Q3  **[ODFL_3394120_5]** .
  3. **Effective Tax Rate**: Expected to be **25.0%** for Q3 2024  **[ODFL_3394120_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Effective Tax Rate**: Expected to be **25.4%** for Q2 2024  **[ODFL_3380431_3]** .
  2. **Capital Expenditures**: Expected to be approximately **$750 million** for FY 2024  **[ODFL_3380431_0]** .
  3. **Operating Ratio**: Long-term goal of sub-70% annual operating ratio  **[ODFL_3380431_8]** .
  4. **Revenue Growth**: Potential for average sequential revenue increase of **8.7%**, though not starting at that level in April 2024  **[ODFL_3380431_4]** .
  5. **Operating Ratio Improvement**: Target of **150 basis points** improvement if revenue growth stays around 6% year-over-year  **[ODFL_3380431_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  1. **Revenue per Day**: Expected decrease of **3.1%** in January 2024, with LTL tons per day decrease of **5.1%**. Revenue per hundredweight, excluding fuel surcharges, expected to increase by **6.4%**  **[ODFL_3371364_3]** .
  2. **Effective Tax Rate**: Expected to be **25.6%** for FY 2024  **[ODFL_3371364_4]** .
  3. **Operating Ratio**: Expected **100 to 110 basis point increase** from Q4 to Q1, with potential **170 to 220 basis points** deterioration due to normalization in expenses  **[ODFL_3371364_9]** .

ba829c84875ac59a7c6653e5e70b375abe8af23d047b18606b47d887b2483f16

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Kevin M. Freeman      | President and Chief Executive Officer                                    | July 1, 2023     | Kevin M. Freeman was appointed as President and CEO effective July 1, 2023. He has been with Old Dominion since February 1992, holding various positions in operations and sales  **[0000950170-24-044327_odfl-20240415.htm:15]** **[0000950170-24-040017_odfl-20240402.htm:15]** **[0000950170-23-013009_odfl-20230417.htm:17]** .                                                   |
| Adam N. Satterfield   | Executive Vice President, Chief Financial Officer, and Assistant Secretary| July 2023        | Adam N. Satterfield was appointed as Executive Vice President, CFO, and Assistant Secretary in July 2023. He joined Old Dominion in October 2004 and has held various finance-related positions  **[0000950170-24-040017_odfl-20240402.htm:19]** **[0000950170-24-044327_odfl-20240415.htm:19]** .                                      |
| Gregory B. Plemmons   | Executive Vice President and Chief Operating Officer                     | July 1, 2023     | Gregory B. Plemmons was appointed as Executive Vice President and COO effective July 1, 2023. He has been with Old Dominion since April 1997, holding various positions in operations and sales  **[0000950170-24-044327_odfl-20240415.htm:19]** **[0000950170-24-040017_odfl-20240402.htm:19]** **[0000950170-23-013009_odfl-20230417.htm:17]** .                                     |
| Christopher T. Brooks | Senior Vice President - Human Resources & Safety                         | January 2018     | Christopher T. Brooks was appointed as Senior Vice President - Human Resources & Safety in January 2018. He previously served as Vice President - Human Resources from June 2015 to December 2017  **[0000950170-24-044327_odfl-20240415.htm:19]** **[0000950170-24-040017_odfl-20240402.htm:19]** .                                     |
| Steven W. Hartsell    | Senior Vice President – Sales                                            | July 2023        | Steven W. Hartsell was appointed as Senior Vice President – Sales in July 2023. He has been with the company since January 1998, holding various positions in operations and sales  **[0000950170-24-044327_odfl-20240415.htm:19]** **[0000950170-24-040017_odfl-20240402.htm:19]** .                                                    |
| Christopher J. Kelley | Senior Vice President – Operations                                       | May 2023         | Christopher J. Kelley was appointed as Senior Vice President – Operations in May 2023. He has been with Old Dominion since July 2002, serving in various sales positions  **[0000950170-24-044327_odfl-20240415.htm:19]** **[0000950170-24-040017_odfl-20240402.htm:19]** .                                                              |
| Cecil E. Overbey, Jr. | Senior Vice President - Strategic Development                            | January 2011     | Cecil E. Overbey, Jr. was appointed as Senior Vice President - Strategic Development in January 2011. He joined Old Dominion in June 1995 as a National Account Executive  **[0000950170-24-040017_odfl-20240402.htm:19]** **[0000950170-24-044327_odfl-20240415.htm:19]** .                                                             |
| Ross H. Parr          | Senior Vice President - Legal Affairs, General Counsel and Secretary     | January 2016     | Ross H. Parr was appointed as Senior Vice President - Legal Affairs, General Counsel and Secretary in January 2016. He joined the company in August 2011 as Vice President, Deputy General Counsel and Assistant Secretary  **[0000950170-23-013009_odfl-20230417.htm:17]** **[0000950170-24-040017_odfl-20240402.htm:19]** .            |
| Clayton G. Brinker    | Vice President – Accounting and Finance                                  | August 2, 2024   | Clayton G. Brinker serves as Vice President – Accounting and Finance at ODFL, effective August 2, 2024  **[0001977249-24-000076_xslF345X02/form3.xml:0]** .                                                                                                                                   |
| Kimberly S. Maready   | Vice President – Accounting and Finance (Retiring August 2, 2024)        | N/A              | The documents do not provide specific details about Kimberly S. Maready's start date or a detailed biography. However, she is mentioned as the Vice President – Accounting and Finance and serves as the Principal Accounting Officer  **[0000950170-24-020176_odfl-20231231.htm:88]** . |

9d5fa8e5b21746e147e396ba0ac5d26496f7a231b43956820c2400d8d0ab48de

LTL Services

Other Services

Total Revenue

eec0e672813c10ff38b2f1227b8244edb24a0102948d65c33e80d913720f2089

**Quarterly guidance for Q4 2024:**
- **Operating Ratio**: Expected deterioration of about 200 to 250 basis points, with an additional 100 basis points  **[ODFL_3403384_4]**  (raised from a 50 basis point increase  **[ODFL_3394120_5]** )  
- **Revenue per Day**: Expected decrease of 11.2% to 11.8%  **[ODFL_3403384_3]**  (lowered from a 4% to 4.5% increase  **[ODFL_3394120_3]** )  
- **LTL tons per day**: Expected decrease of 9.2% to 9.8%  **[ODFL_3403384_3]**  (no prior guidance)  
- **Yield Performance**: Expected increase in revenue per hundredweight, excluding fuel surcharges, of 3.8% to 4.2%  **[ODFL_3403384_7]**  (no prior guidance)  

fb2faffd1406cef4e72c51a85132deb0846d57f63c50a542a8c5e9b980ca42f4

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1994  **[0000950170-24-020176_odfl-20231231.htm:69]**    | Present  | Current auditor   |

6cf5f85169d3de9703dfbd7953de86497efdc0ae04149622fb65d3ca6a3e0062

b9d15a6f6f1e59377939810ff3783ae4c9d3666473379b9f5584e772d0c58746

- Total Revenue: $1,470.211 million (-3% YoY)  **[0000950170-23-059408_odfl-20230930.htm:5]** **[0000950170-24-122440_odfl-20240930.htm:5]**   
- LTL Services: $1,457.108 million (-3% YoY)  **[0000950170-23-059408_odfl-20230930.htm:5]** **[0000950170-24-122440_odfl-20240930.htm:5]**   
- Other Services: $13.103 million (-6% YoY)  **[0000950170-23-059408_odfl-20230930.htm:5]** **[0000950170-24-122440_odfl-20240930.htm:5]**   
- Operating Income (EBIT): $401.861 million (-10% YoY)  **[0000950170-23-059408_odfl-20230930.htm:3]** **[0000950170-24-122440_odfl-20240930.htm:3]**   
- Net Income: $308.58 million (-9% YoY)  **[0000950170-23-059408_odfl-20230930.htm:3]** **[0000950170-24-122440_odfl-20240930.htm:3]**   
- EPS (Basic): **1.44** (-54% YoY)  **[0000950170-23-059408_odfl-20230930.htm:3]** **[0000950170-24-122440_odfl-20240930.htm:3]**   

b044fa2ad6b030adda72b8c39acdc4cb92362e96e4d57c85123f2555231ab81c

82e1cf2fdcfcb5d38525e9dece585a14f59f02afa210ff84b1ef99b2d338e30c

LTL Tons (thousands)

LTL Tonnage per Day (tons per day)

LTL Shipments (thousands)

LTL Shipments per Day (shipments per day)

LTL Weight per Shipment (pounds)

LTL Revenue per Hundredweight (USD per hundredweight)

LTL Revenue per Shipment (USD per shipment)

Average Length of Haul (miles)

102c835a767a8d06014825d705bc5581b67adb9eb5933981f09eb17f7195f419

3194fba681bf711ac42cb8a5506d6e9c4eb203f71bb394d1e18c960f81adcce7

| Year | Amount Due (Millions) | Debt Type     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|-------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 20.0                      | Series B Notes    | 3.10                 | 33.4% = (20.0 / 59.985) * 100 **[0000950170-24-122440_odfl-20240930.htm:8]** **[0000950170-24-122440_odfl-20240930.htm:8]**                                     |
| 2025     | 20.0                      | Series B Notes    | 3.10                 | 33.4% = (20.0 / 59.985) * 100 **[0000950170-24-122440_odfl-20240930.htm:8]** **[0000950170-24-122440_odfl-20240930.htm:8]**                                     |
| 2026     | 20.0                      | Series B Notes    | 3.10                 | 33.4% = (20.0 / 59.985) * 100 **[0000950170-24-122440_odfl-20240930.htm:8]** **[0000950170-24-122440_odfl-20240930.htm:8]**                                     |
| 2027     | 20.0                      | Series B Notes    | 3.10                 | 33.4% = (20.0 / 59.985) * 100 **[0000950170-24-122440_odfl-20240930.htm:8]** **[0000950170-24-122440_odfl-20240930.htm:8]**                                     |

f882aae65edf145a9ac3ff4d9c4d56b51d66844c641b67c8b8046057a7baa060

- **Decreased revenue and tonnage with increased operating ratio:** Old Dominion's revenue decreased by **3.0%** in Q3 2024 compared to the prior year, with LTL tons per day decreasing by **4.8%**. This led to an increase in the operating ratio to **72.7%**, indicating reduced profitability.  **[ODFL_3403384_3]**
- **Weaker industrial performance and economic uncertainty impacting demand:** The company acknowledged that **industrial performance has been weaker**, and customers are being conservative due to economic uncertainty, including the upcoming election, causing a **temporary pause** in demand. This adds to ongoing macroeconomic headwinds affecting the company.  **[ODFL_3403384_22]** **[ODFL_3403384_11]**
- **Increased operating costs and inflation pressures without cost reductions:** Employee benefit costs increased to **38.6%** of salaries and wages from **37.3%** in the prior year, and the company noted that **costs aren't going down**. Volume weakness kept costs higher than their longer-term trend, pressuring margins.  **[ODFL_3403384_3]** **[ODFL_3403384_20]**

a74d03e747e08f1484f44d8e0b6347cad304c3cb2486774b4e89eb6144435458

- **Continued Weak Demand Environment**: The company is cautious about the timing of economic recovery, indicating that general economic forecasters are not predicting an early start to demand improvement this year.  **[ODFL_3371364_12]**
- **Limited Impact from Industry Consolidation**: Despite the bankruptcy of a major competitor, **tonnage is still down**, and the expected benefits from industry consolidation have not fully materialized due to the weak macro environment.  **[ODFL_3371364_21]**
- **Reduced Share Repurchases**: Old Dominion **slowed its pace of share buybacks in recent quarters**, particularly in the back half of the year as the stock price rose, potentially signaling concerns about current valuation levels.  **[ODFL_3371364_22]**

27cbd6a1cff3f10f797962cbb811d00b6659c0dc211179e705971c1af846e5e0

- **ODFL is well-positioned to capture increased market share due to reduced industry capacity and their superior service offerings.** Executives mention that **industry capacity is down by at least 10%**, and ODFL believes they are better positioned than any other carrier to capitalize on an improving industry.  **[ODFL_3394120_23]** **[ODFL_3394120_11]** **[ODFL_3394120_18]**
- **Positive trends with top customers and 3PLs are contributing to growth opportunities.** ODFL's **top 50 customers are up mid-single digits year-to-date**, and 3PL customers are **super positive** with growth opportunities, indicating strong customer relationships and potential for continued growth.  **[ODFL_3394120_20]** **[ODFL_3394120_18]**
- **ODFL expects operating leverage to improve as volumes return, enhancing profitability.** The company has maintained a strong **operating ratio of 71.9%** despite lower volumes, and anticipates that increased shipment volumes will further improve operating efficiency and reduce overhead costs, leading to **better operating ratios** similar to previous highs.  **[ODFL_3394120_17]**

ffb89980d3baa1ff17190d29c96dca7abd315d6a0abde5432ca040cce6cf6121

1. **Operating Ratio Outlook**  
   **Q:** Will the operating ratio improve in Q2?  
   **A:** Management says operating ratio improvement in Q2 depends on revenue growth. If revenue grows **6% year-over-year**, they expect about **150 basis points** improvement from Q1. Significant OR improvement requires stronger top-line growth, which remains uncertain due to demand levels.  **[ODFL_3380431_4]** **[ODFL_3380431_8]** 

2. **Demand Environment**  
   **Q:** Is demand for services improving?  
   **A:** Management observes signs of improving demand, including sequential shipment increases from January through April and higher weight per shipment. The ISM index moving above **50%** suggests industrial activity may be rebounding, potentially boosting LTL demand.  **[ODFL_3380431_5]** **[ODFL_3380431_10]** 

3. **Pricing and Yield Trends**  
   **Q:** Is yield deceleration due to competition?  
   **A:** Management reports no change in the competitive environment or pricing strategy. Yield growth appears slower due to changes in freight mix, such as increased weight per shipment and shorter length of haul, but core pricing remains consistent.  **[ODFL_3380431_6]** **[ODFL_3380431_19]** 

4. **Capacity Expansion and Competition**  
   **Q:** How do you view competitors adding capacity like you?  
   **A:** Management believes capacity alone doesn't win business; superior service and relationships do. While competitors may attempt to emulate their strategy by maintaining **20-30%** excess capacity, they focus on enhancing service and customer value to maintain a competitive edge.  **[ODFL_3380431_10]** **[ODFL_3380431_13]** 

5. **Company Strategy and Market Share**  
   **Q:** Do you need to adjust strategy if competitors improve?  
   **A:** Management is confident in their model and continues investing in people and infrastructure. They focus on delivering superior service and believe they'll gain market share when the economy recovers, regardless of competitors’ actions.  **[ODFL_3380431_7]** **[ODFL_3380431_9]** 

6. **Supply Chain Trends**  
   **Q:** Does shift back to just-in-time inventory help you?  
   **A:** Management notes a trend back to just-in-time inventory, which favors their reliable, on-time, damage-free service. Tighter inventory management requires dependable carriers, enhancing their opportunity to win market share.  **[ODFL_3380431_11]** **[ODFL_3380431_15]** 

7. **Shipment Growth and Seasonality**  
   **Q:** How do current shipments compare to seasonality?  
   **A:** Shipments in April are about **48,000 per day**, up slightly from March but below the normal seasonal increase of **2%** due to the timing of Good Friday. Sequential growth is consistent but not yet at historical levels.  **[ODFL_3380431_13]** **[ODFL_3380431_16]** 

8. **Impact of Truckload Market**  
   **Q:** Will freight from truckload return to LTL?  
   **A:** Management expects freight that shifted to truckload carriers to return to LTL as the truckload market tightens. This could increase LTL demand when the economy improves.  **[ODFL_3380431_14]** **[ODFL_3380431_17]** 

18030b75baca08d67043668822b46c0b63f40837bc20f696043c5e78f921ba61

1. **Operating Ratio Outlook**  
   **Q:** Can you achieve normal OR with flat revenue?  
   **A:** Management believes achieving a **50 basis point** sequential increase in operating ratio from Q2 to Q3 is achievable, even if revenue stays flat. They continue managing costs effectively and target this normal seasonal OR increase.  **[ODFL_3394120_9]** 

2. **Pricing and Yield Trends**  
   **Q:** How are pricing and yields progressing?  
   **A:** Pricing remains stable, with yields in June and July consistent with Q2. Excluding fuel, revenue per hundredweight is expected to be up **4% to 4.5%** year-over-year for the quarter.  **[ODFL_3394120_7]** 

3. **Volume and Demand Outlook**  
   **Q:** What is the outlook for volumes and demand?  
   **A:** Volume trends are about flat, with tonnage potentially **plus or minus** around zero. Management is cautiously optimistic, noting good sequential increases in June and signs of improvement as they progress through the quarter.  **[ODFL_3394120_12]** 

4. **Capital Allocation and Buybacks**  
   **Q:** Is the record buyback a change in capital returns?  
   **A:** The record share buyback this quarter is not a change in strategy. The company stepped in more aggressively due to a **20% to 25%** drop in stock price but will return to a normalized repurchasing approach.  **[ODFL_3394120_10]** 

5. **Cost Inflation and Wage Increases**  
   **Q:** How are cost inflation and wage increases affecting margins?  
   **A:** Wage costs per shipment are increasing by **3% to 3.5%**, in line with annual wage hikes. Benefit costs have risen due to improved compensation programs. The company faces ongoing inflation in equipment, maintenance, and insurance costs but continues to manage costs through efficiencies.  **[ODFL_3394120_15]** 

6. **Capacity and Competition**  
   **Q:** How is excess industry capacity affecting the market?  
   **A:** Management believes the industry will be more capacity-constrained, with at least **10%** of capacity exiting due to bankruptcy proceedings. They are well-positioned to respond when the market recovers and do not expect aggressive pricing from competitors.  **[ODFL_3394120_11]** 

7. **Headcount and Staffing**  
   **Q:** How are you managing headcount in this environment?  
   **A:** The company is in a good spot with headcount, about **150 to 200** people above last year when handling **51,000** shipments per day. They balance staffing with shipment volumes and are prepared for future growth, investing in driver training and increasing CDL holders.  **[ODFL_3394120_13]** 

8. **Network Investments**  
   **Q:** Are you continuing network investments amid the macro environment?  
   **A:** Yes, they have opened **three** service centers this year and continue their CapEx plan, estimating about **$350 million** spent on real estate this year. They may delay opening new facilities if demand doesn't justify it but will complete construction.  **[ODFL_3394120_19]** 

9. **Customer Sentiment**  
   **Q:** What are customers saying about demand?  
   **A:** Top customers are positive, with the top 50 customers up **mid-single digits** year-to-date. They see positive trends for the rest of the year, and there are growth opportunities across various sectors.  **[ODFL_3394120_18]** 

10. **Impact of Yellow Bankruptcy**  
    **Q:** How has the Yellow bankruptcy affected industry volumes?  
    **A:** Volumes lost have shifted to smaller freight forwarders and truckload carriers. Management believes that as the economy picks up, freight will return to the LTL industry, benefiting them.  **[ODFL_3394120_22]** 

e80d285f20e666d94027eefd500c6e677e5703a09d47736f42627a38e88ff59c

- **ODFL is well-positioned to capitalize on an economic recovery, with significant growth opportunities and the capacity to support increased demand when it returns.**  **[ODFL_3380431_22]**
- **The company's superior service quality, strong customer relationships, and commitment to excellence give it a sustainable competitive advantage that is hard for competitors to replicate.**  **[ODFL_3380431_23]** **[ODFL_3380431_13]**
- **ODFL maintains a disciplined approach to pricing, targeting yield improvements that exceed cost inflation, and sees no change in competitive dynamics or pricing pressures, supporting future profitability.**  **[ODFL_3380431_19]**

a78215f019d576b62e69967bbe77fb54677e13d47d03664676784c99856a0196

1. **October Tonnage Declines and Signs of Recovery**  
   **Q:** Are October tonnage declines worsening, and what's the outlook?  
   **A:** October tonnage is down about **9.5% year-over-year**  **[ODFL_3403384_4]** , but the sequential decline from September is only **3.5%**, close to the 10-year average decrease of **3.1%**.  **[ODFL_3403384_4]**  This is encouraging and suggests we may be reaching a floor in volume declines.  **[ODFL_3403384_5]** 

2. **Operating Ratio Outlook**  
   **Q:** What's the expectation for operating ratio into year-end?  
   **A:** Typically, the operating ratio deteriorates **200 to 250 basis points** from third to fourth quarter.  **[ODFL_3403384_4]**  Conservatively, we may need to add **100 basis points** due to revenue softness impacting overhead expenses and higher fringe benefit costs.  **[ODFL_3403384_4]** 

3. **Pricing Environment and Yield Trends**  
   **Q:** How are yields shaping up, and is there irrational pricing in the market?  
   **A:** We expect revenue per hundredweight excluding fuel to increase by **3.8% to 4.2%** if normal seasonality continues.  **[ODFL_3403384_6]**  The pricing environment has been stable, and we continue to secure increases, reflecting our strong value proposition.  **[ODFL_3403384_6]** **[ODFL_3403384_7]** 

4. **Impact of Fuel Prices on Yield**  
   **Q:** Is the drop in yield entirely due to fuel prices?  
   **A:** Yes, the decrease in revenue per hundredweight is largely fuel-related, with fuel prices down about **20%** compared to October last year.  **[ODFL_3403384_7]**  This impact should moderate as the quarter progresses.  **[ODFL_3403384_7]** 

5. **Market Share and Competitive Landscape**  
   **Q:** Are competitors closing the gap in service, affecting market share?  
   **A:** Our service metrics remain strong, and we won the Mastio award for the **15th consecutive year**.  **[ODFL_3403384_13]**  The gap between us and competitors has not closed, and we continue to maintain our market share.  **[ODFL_3403384_13]** 

6. **Volume Trends in Customer Segments**  
   **Q:** Are any customer segments showing favorable volume?  
   **A:** Retail-related customers are performing better, while industrial customers, comprising **55% to 60%** of our revenue, remain weak.  **[ODFL_3403384_9]**  Notably, third-party logistics customers showed revenue growth in the third quarter.  **[ODFL_3403384_9]** 

7. **Cost Management and Capacity**  
   **Q:** Are you taking actions to manage costs or adjust capacity?  
   **A:** We continuously manage costs and have improved productivity even with lower volumes.  **[ODFL_3403384_12]**  While we may reduce capital expenditures next year, we're focused on long-term growth and prepared for when demand recovers.  **[ODFL_3403384_12]** 

8. **Election Uncertainty and Economic Outlook**  
   **Q:** Is election uncertainty affecting demand?  
   **A:** Yes, election uncertainty may cause customers to be conservative.  **[ODFL_3403384_11]**  Once resolved, we expect customers to focus on growth, benefiting freight demand.  **[ODFL_3403384_11]** 

9. **Weight per Shipment Trends**  
   **Q:** Is there a change in weight per shipment?  
   **A:** We're seeing an increase in weight per shipment in October, which is a positive sign.  **[ODFL_3403384_5]** **[ODFL_3403384_8]**  Typically, weight per shipment increases from third to fourth quarter.  **[ODFL_3403384_5]** **[ODFL_3403384_8]** 

10. **Modal Shift Between LTL and Truckload**  
    **Q:** Is freight shifting back from truckload to LTL?  
    **A:** Yes, freight is returning to LTL, particularly from third-party logistics customers.  **[ODFL_3403384_15]**  Shipments under **10,000 pounds** make more sense in LTL, and we expect this trend to continue.  **[ODFL_3403384_15]** 

11. **Tonnage Outlook for the Quarter**  
    **Q:** Assuming normal seasonality, where could tonnage end up for the quarter?  
    **A:** If normal seasonality plays out, tonnage per day could be down **6.5% to 7%** for the full quarter.  **[ODFL_3403384_10]** 

12. **Inventory Levels and Economic Recovery**  
    **Q:** What's your expectation regarding inventory levels and recovery?  
    **A:** We believe inventories have been drawn down, and replenishment could drive freight demand.  **[ODFL_3403384_11]**  We're optimistic about economic recovery and an eventual uptick in volumes.  **[ODFL_3403384_11]** 

13. **Buyback and Dividend Strategy**  
    **Q:** What's your approach to buybacks versus dividends?  
    **A:** We prioritize buybacks as a tax-efficient way to return capital while maintaining flexibility for investments.  **[ODFL_3403384_16]**  We increased buybacks when the stock price was lower, spending over **$500 million** in the second quarter.  **[ODFL_3403384_16]** 

14. **Impact of Hurricane on Operations**  
    **Q:** Did the recent hurricane impact your operations?  
    **A:** Yes, we experienced revenue loss and operational challenges, but all employees are safe, and our network remains intact.  **[ODFL_3403384_15]** 

15. **Changes to Classification System**  
    **Q:** How will changes to the classification system affect you?  
    **A:** We're well-prepared for the shift to a more dimensional-based system, already dimensioning **75%** of our freight today.  **[ODFL_3403384_15]** 

7ee0cfbb2a807e2fe2e5e44ad29fe339ed499f5c68614d9dd3293885ed046521

- **Encouraging Volume Trends in October**: The company is seeing improved volume trends in October, with sequential tonnage changes aligning closely with historical averages for the first time in over two years, indicating a potential inflection point in demand.  **[ODFL_3403384_4]**
- **Well-Positioned for Economic Upturn**: Old Dominion is strategically positioned to capitalize on an improving economy, with capacity, fleet, and a committed team ready to respond to increased demand; they have maintained strong customer relationships without losing any major accounts or lanes.  **[ODFL_3403384_22]**
- **Significant Operating Leverage**: With direct costs at approximately **52%** of revenue and overhead costs between **20% and 21%**, the company stands to benefit from substantial operating leverage, potentially enhancing margins as revenue growth accelerates.  **[ODFL_3403384_19]**

b9a49d94fc0960b33e44c71d762cdfc5a99af90c292a353126f4b0b2b71fcf5e

1. **Pricing Power**  
   **Q:** Can you maintain pricing levels and margins amid competition and cost inflation?  
   **A:** Adam Satterfield expressed confidence in maintaining their historic **1 to 1.5 point spread above cost inflation**, focusing on consistent, cost-based pricing and long-term customer relationships.  **[ODFL_3371364_14]**  Despite expectations for reported yield metrics to compress to around **6.5% growth** in the first half and **5.5%** by the fourth quarter, they anticipate consistent rate increases as bids renew.  **[ODFL_3371364_13]**  Satterfield acknowledged that the macroeconomic environment masks the full impact of Yellow's exit, suggesting that pricing benefits may become more apparent as the economy improves.  **[ODFL_3371364_21]** 

2. **Impact of Yellow's Closure**  
   **Q:** How has Yellow's closure affected industry capacity, competition, and your market share?  
   **A:** Adam Satterfield believes the industry will remain capacity-constrained as not all of Yellow's service centers will remain in the market.  **[ODFL_3371364_6]**  ODFL expects some exit of capacity from when Yellow was operating.  **[ODFL_3371364_7]** **[ODFL_3371364_15]**  Competitors who acquired Yellow's assets may face increased costs, potentially affecting pricing dynamics, but ODFL will continue with its proven strategy.  **[ODFL_3371364_10]**  They have consistently won market share based on superior service at a fair price and feel better positioned than ever to capitalize on future opportunities.  **[ODFL_3371364_5]** 

3. **Volume and Demand Outlook**  
   **Q:** What are your expectations for volume trends and underlying demand?  
   **A:** Shipments per day are trending in line with expectations, but volume recovery depends on economic improvement.  **[ODFL_3371364_8]**  Weight per shipment is seen as an early indicator; January's weight per shipment is about **1,515 pounds**, a smaller than usual seasonal drop.  **[ODFL_3371364_17]**  They anticipate a potential second wave of freight entering LTL as the economy recovers.  **[ODFL_3371364_15]**  However, they remain cautious after missing expectations in Spring 2023.  **[ODFL_3371364_11]** **[ODFL_3371364_17]** 

4. **Operating Ratio Expectations**  
   **Q:** How do you see your operating ratio trending in the near term?  
   **A:** The normal increase in operating ratio from Q4 to Q1 is about **100 basis points**, but it may deteriorate by **170 to 220 basis points** due to normalization of insurance and claims expenses and the absence of certain gains.  **[ODFL_3371364_9]**  Once volumes and revenue return, they expect to recover OR loss and leverage the cost structure.  **[ODFL_3371364_12]** 

5. **Capex and Capacity Expansion**  
   **Q:** What are your plans for capacity expansion and capital expenditures?  
   **A:** ODFL has line of sight into adding **4 or 5 service centers** this year, but expansion will depend on the volume environment.  **[ODFL_3371364_23]**  They will control when and where to add facilities, continuing their strategy of investing ahead of growth.  **[ODFL_3371364_7]** **[ODFL_3371364_5]** 

6. **Labor and Headcount Planning**  
   **Q:** How are you approaching labor additions and meeting hiring needs?  
   **A:** ODFL is cautiously increasing headcount in anticipation of volume growth, adding positions such as platform workers and preparing drivers through their schools.  **[ODFL_3371364_19]** **[ODFL_3371364_11]**  They are not experiencing difficulties meeting hiring needs currently and aim to stay ahead to efficiently handle growth without sacrificing service.  **[ODFL_3371364_20]** **[ODFL_3371364_11]** 

7. **Capital Allocation and Share Buybacks**  
   **Q:** How are you thinking about share buybacks and capital allocation this year?  
   **A:** Satterfield stated they will maintain their approach, considering cash from operations, capital expenditures, and fixed dividends to determine buyback amounts.  **[ODFL_3371364_22]**  They target returning net cash balance to shareholders through buybacks, buying more when the stock is lower and less when it's higher.  **[ODFL_3371364_22]** 

8. **Service Differentiation**  
   **Q:** How can you further improve customer experience and stay differentiated?  
   **A:** Satterfield emphasized striving for perfection in on-time performance and claims ratio, while focusing on the **28 service and value attributes** measured by Mastio quality data.  **[ODFL_3371364_18]**  They were #1 in **25 of 28 Mastio categories**, and continue investing in technology to enhance customer connections and drive automation.  **[ODFL_3371364_18]** 

9. **Insurance Actuarial Adjustments**  
   **Q:** Can you clarify the impact of the insurance and claims expense adjustments?  
   **A:** The insurance and claims expense was **1.9% of revenue** in Q4, higher than the average **1.2% to 1.3%** in previous quarters due to an unfavorable actuarial adjustment.  **[ODFL_3371364_9]** **[ODFL_3371364_10]**  They expect this expense to normalize to **1.3% to 1.4% of revenue** in Q1 2024.  **[ODFL_3371364_9]** 

889fe8fc3c474f82798d72de3f93fc80178a98f111472ee19ea4de7542a43676

- Old Dominion Freight Line is experiencing cost pressures due to **maintaining excess capacity of approximately 30%** in its service center network, which creates **short-term cost headwinds during periods with slower demand**.  **[ODFL_3394120_3]**
- The **sluggish domestic economy**, particularly in the industrial sector, is leading to **weaker demand** for LTL freight services, with Old Dominion's **revenue per day growth** in Q2 being **below the 10-year average**.  **[ODFL_3394120_3]** ,  **[ODFL_3394120_20]**
- **Increased competition** from other carriers expanding their capacity could lead to **pricing pressure** in the LTL market, potentially impacting Old Dominion's **yield management strategy** and margins.  **[ODFL_3394120_14]** ,  **[ODFL_3394120_18]** ,  **[ODFL_3394120_11]**

9ec16a1acb28aeb5205a0091a0b901519c26e6a4d5b0ed685eb01abbfc8d19d8

- **Old Dominion Freight Line continues to win market share over time due to its superior service at a fair price**, with on-time service at **99%** and a claims ratio of **0.1%**, which have driven market share gains even in a slow macro environment.  **[ODFL_3371364_5]**
- **ODFL is well-prepared to capitalize on economic recovery**, with significant network capacity and plans to add workforce as demand increases, ensuring they can handle growth without sacrificing service quality.  **[ODFL_3371364_5]** **[ODFL_3371364_12]**
- **The company has a proven track record of outperforming peers during upcycles**, historically outgrowing the market by **1,000 to 1,200 basis points** in years like **2018** and **2021**, due to its disciplined pricing strategy and consistent investments.  **[ODFL_3371364_14]**

32ab42c3764772a8042ade00aa4321d451e496fab9c0318f22eff57571f05cce

Old Dominion Freight Line Inc (ODFL)

Financials