Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET


Old Dominion Freight Line Inc. (NASDAQ:ODFL) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. And welcome to the Second Quarter 2020 Conference Call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through August 7th, 2020 by dialing 719-457-0820. The replay passcode is 1718368. 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 maybe 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, 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 today, we welcome your questions. But we ask in fairness to all that you limit yourself 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 President and Chief Executive Officer, Mr. Greg Gantt. Please go ahead, sir.

Greg C. Gantt

Good morning and welcome to our second quarter conference call. With me on the call today is Adam Satterfield, our CFO. After some brief remarks, we will be glad to take your questions. The OD team delivered solid financial and operating results for the second quarter despite the operating challenges we faced with the economy.

Although, our revenue declined 15.5%, we were pleased to improve our operating ratio to a quarterly record of 77.8%. We accomplished this by focusing on improving our yield, managing our variable cost, and controlling our discretionary spending. Our yield management process has strengthened the quality of our revenue and profitability over the long term.

Through this process, we manage profitability on an account-by-account basis. We believe this approach is consistent and fair for our customers. Is also supportive of our ongoing investments in capacity and technology while helping offset cost inflation. We believe customers appreciate the consistency of this approach, as they know what to expect from us each year.

Providing superior service at a fair price is our value proposition, which is critical to our long-term customer relationships. Our team is relentless in its commitment to providing the very best levels of service to our customers regardless of the economic environment.

While we contended with many operating challenges in the second quarter, including the 16.6% decrease in shipments per day, we