Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET


Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q4 2018 Earnings Conference Call Transcript


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Good morning, and welcome to the Fourth Quarter and 2018 Conference Call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through February the 15th by dialing 719-457-0820. The replay passcode is 6987290. The replay may also be accessed through March 7th at the Company's website.

This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements among others, regarding Old Dominion's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements.

Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify forward-looking statements. You're hereby cautioned that these statements may be affected by the important factors, among others, set forth in Old Dominion's filings with the Securities and Exchange Commission and in this morning's news release. And consequently actual operations and results may differ materially from the results discussed in the forward-looking statements.

The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

As a final note before we begin, we welcome your questions today, but ask, in fairness to all, that you limit yourselves to just a couple of questions at a time before returning to the queue. Thank you for your cooperation.

At this time for opening remarks, I would like to turn the conference over to the Company's Executive Chairman, Mr. David Congdon. Please go ahead, sir.

David S. Congdon

Good morning and welcome to our fourth quarter conference call. With me on the call today are Greg Gantt, our President and CEO; and Adam Satterfield, our CFO. After some brief remarks, we will be glad to take your questions. I am pleased to report the strong financial results for Old Dominion's fourth quarter. For the third quarter in a row, we exceeded $1 billion in revenue and also produced an operating ratio below 80%.

This performance capped off an extraordinary year for Old Dominion, setting new Company records for annual revenue and profitability. Financial results for the quarter and the year reflect the consistent execution of our growth strategy. We believe our ongoing ability to win market share is based on a value proposition of providing superior service at a fair price to shippers, while also continuously investing in our service center, capacity to support our long-term growth.

We also continue to invest in our OD family of employees and we are proud that our team provided customers with 99% on-time deliveries and our cargo claim ratio of only 0.3% of revenue for the fourth quarter. While there has been some recent disruption to the domestic economy associated with political issues, our outlook continues to be positive for 2019 based on feedback from our customers and other macroeconomic indexes.

Pricing environment remains favorable and a strong domestic economy should support our ability