Old Dominion Freight Line Inc. said revenue for the third quarter increased 20.6 percent to $743.6 million from $616.5 million for the third quarter of 2013. Net income was $77.9 million for Q3, up 29.5 percent from $60.1 million for the comparable quarter of 2013.
Earnings per diluted share rose 28.6 percent to $0.90 for the third quarter of 2014 from $0.70 for the third quarter of 2013. The company’s operating ratio improved to 83.0 percent from 84.1 percent for the same period last year.
For the first nine months of 2014, revenue was $2.07 billion, an increase of 18.4 percent from $1.75 billion for the first nine months of 2013. Net income for the first nine months of 2014 rose 24.3 percent to $197.6 million from $159.0 million for the same prior-year period. Earnings per diluted share increased 24.5 percent to $2.29 for the first nine months of 2014 compared with $1.84 for the first nine months of 2013.
Old Dominion’s operating ratio improved to 84.1 percent for the first nine months of 2014 from 85.0 percent for the comparable period in 2013.
“Old Dominion produced outstanding financial and operating results for the third quarter of 2014,” said David S. Congdon, president and CEO of Old Dominion. “Our continued profitable growth resulted in quarterly records for our revenue, net income and earnings per diluted share, as well as a company record for our third-quarter operating ratio. We believe our 20.6 percent growth in revenue was once again driven primarily by increased market share, as we continued to deliver industry-leading customer service.
“To keep pace with our revenue growth, we increased the number of our full-time employees by over 2,000 employees, or 14.6 percent, over the past 12 months, with 868 of those new employees hired during the third quarter of 2014,” Congdon said.
He said the company expects capital expenditures for 2014 to be about $385 million, including planned expenditures of $132 million for real estate and expansion projects at existing facilities, $206 million for tractors, trailers and other equipment and $47 million for technology and other assets.
Total capital expenditures were $93.4 million and $312.0 million for the third quarter and first nine months of 2014, respectively. “At the end of the third quarter, cash and cash equivalents totaled $8.2 million and our ratio of debt to total capitalization was a record low of 11.4 percent compared with 12.9 percent and 14.8 percent at June 30, 2014 and Sept. 30, 2013, respectively.”