Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q1 2019 Earnings Conference Call Transcript

Apr 25, 2019 • 10:00 am ET


Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to the First Quarter 2019 Conference Call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through May 3, 2019, by dialing 719-457-0820. The replay passcode is 9602170. The replay of the webcast may also be accessed for 30 days 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 are hereby cautioned that these statements may be affected by the important factors, among others, that are 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 statement 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 yourself to just a couple of questions at a time before returning to the queue. We thank you for your cooperation.

At this time for opening remarks, I would like to turn the conference over to the Company's President and Chief Executive Officer, Mr. Greg Gantt. Please go ahead, sir.

Greg Gantt

Good morning, and welcome to our first quarter 2019 conference Call. With me on the call today is Adam Satterfield, our CFO. After some brief remarks, we'll be glad to take your questions.

OD team delivered another quarter of strong operating and financial performance, producing a 7.1% increase in revenue and a 21.9% increase in net income. Following seven straight quarters of double-digit increases in revenue, our rate of growth from the first quarter was slightly lower than our expectation at the beginning of the year. Our team responded by improving our yields and managing our cost, and, as a result, our operating ratio improved 190 basis points to 82.0%.

First quarter financial results demonstrate our team's successful execution of our strategic plan that, as you all know, has been in place for many years. This plan is centered on our OD family and the relationships we have built with our customers. These relationships are built on trust and our proven ability to provide superior service as evidenced by our 99% on-time service performance and 0.2% cargo claims ratio in the first quarter. We will continue to focus on providing superior service, which provides the foundation for our ability to continue to win market share and improve yields.

We have often discussed the fact that the ongoing improvement in our operating ratio requires improvements