My Freightworld Technologies Inc (MYFT)

[Bramabill]

Old Dominion released 3rd quarter earnings today. Should bode well for MYFT. Old Dominion is an LTL carrier

THOMASVILLE, N.C.--(BUSINESS WIRE)-- Old Dominion Freight Line, Inc. (NASDAQ:ODFL - News) today announced financial results for the third quarter ended September 30, 2011. Revenue was a record $494.5 million for the quarter, an increase of 24.9% from $396.0 million for the third quarter of 2010. Net income increased 58.4% to $38.6 million from $24.4 million for the third quarter of last year, and earnings per diluted share rose 52.3% to $0.67 from $0.44 in the third quarter of 2010. Old Dominion’s operating ratio improved to a record 86.2% for the third quarter compared to 89.0% for the third quarter of 2010. Weighted average shares outstanding for the third quarter of 2011 rose 2.7% compared with the third quarter of 2010.

For the first nine months of 2011, revenue increased 29.1% to $1.40 billion from $1.08 billion for the same period in 2010. Net income increased 85.8% to $99.6 million from $53.6 million in the first nine months of 2010. Earnings per diluted share for the year-to-date period of 2011 were $1.75, up 82.3% from $0.96 for the comparable period of 2010. Old Dominion’s operating ratio improved to 87.8% from 90.8% for the first nine months of 2010.

“Old Dominion continued to produce substantial profitable growth for the third quarter of 2011, with both our revenue and operating ratio improving to new quarterly records,” remarked David S. Congdon, President and Chief Executive Officer of Old Dominion. “Our revenue growth for the quarter again reflected significant tonnage growth and a favorable pricing environment. Tonnage increased 9.6% compared with the third quarter last year, and revenue per hundredweight rose 13.7%, or 7.8% excluding fuel surcharges. This increase represents the continuation of our yield management process, which includes the impact of a 4.9% general rate increase implemented on September 6, 2011. Our revenue per hundredweight was also favorably impacted by both a 2.2% decrease in weight per shipment and a 0.3% increase in average length of haul.

“Greater operating leverage, driven by our tonnage growth, and our disciplined yield management process were primarily responsible for the 280 basis-point improvement in our operating ratio to a record 86.2% for the third quarter. Our operating ratio also benefited from improvements in most of our key productivity measures. As a result of our improved performance in 2011, we were pleased to reward our employees with another annual wage increase that became effective during the first week of September.

“While effectively all the tonnage growth for the third quarter served to increase density in existing service centers, we did open two new service centers – in Madison, Wisconsin and Altoona, Pennsylvania. In October, we also opened a new service center in Canton, Ohio and relocated and expanded our service center in Wausau, Wisconsin. As a result, we currently have 216 service centers in operation.”

The Company’s capital expenditures were approximately $68 million for the third quarter of 2011 and $210 million for the first nine months of 2011. The Company expects to incur capital expenditures of $245 million to $265 million for all of 2011. This estimate includes $80 million to $90 million for real estate purchases and expansion projects at existing facilities, subject to the availability of suitable real estate and the timing of construction projects, of which we have spent approximately $53 million through September 2011. Our total capital expenditure budget also includes $150 million to $155 million for the purchase of tractors, trailers and other equipment, and $15 million to $20 million for investments in technology, the majority of which has been spent.

Old Dominion has continued to fund capital expenditures primarily with cash flow from operations and, as a result, its financial position was further strengthened during the third quarter. Total debt to capitalization improved to 24.5% at the end of the third quarter of 2011 compared with 25.4% at June 30, 2011 and 29.1% at September 30, 2010. At the end of the third quarter of 2011, the Company had $42.3 million in cash and cash equivalents, up from $28.7 million at June 30, 2011. Old Dominion also entered into a new five-year, $200 million senior unsecured revolving credit facility during August 2011 that replaced its expiring $225 million facility. The new facility can be expanded to $300 million. There were $50.8 million of outstanding letters of credit but no borrowings outstanding on this facility at September 30, 2011.

Mr. Congdon concluded, “While there are many factors contributing to Old Dominion’s exceptional performance, we believe an adherence to our core principles that include providing high-quality service at fair and equitable prices is our fundamental strength. We believe our service record leads the industry with on-time deliveries of 99% and a cargo-claims ratio of 0.52% in the third quarter of 2011. While attractive to our customers, the value of our services encompasses more than just those outstanding metrics. By continuously investing in technology that allows us to improve both our delivery standards and the efficiency of our operations, we also provide our customers with an unsurpassed level of transparency into the process of shipping their freight. Our integrated infrastructure provides us with structural competitive advantages, and we continue to make significant investments in capacity to maintain our responsiveness to customer needs.

“Ultimately, we believe our success is grounded in keeping our promise to deliver exceptional value to our customers. I am very proud of the OD family for the results we have continued to produce throughout this economic cycle. The performance of our dedicated employees, combined with our strategic advantages and financial strength, has created a strong competitive position for Old Dominion. We believe we are poised to take advantage of future market opportunities and are confident in our growth prospects.”

Old Dominion Freight Line, Inc. is a leading, less-than-truckload (“LTL”), non-union motor carrier providing regional, inter-regional and national LTL service and value-added logistics services. In addition to its core LTL services, the Company offers its customers a broad range of logistics services including ground and air expedited transportation, supply chain consulting, transportation management, truckload brokerage, container delivery and warehousing services. Through marketing and carrier relationships, the Company also offers door-to-door international freight services to and from all of North America, Central America, South America and the Far East.


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