But its the constant challenges of a changing industry that fuel the passion of the team at Old Dominion. And I can tell you at the price align nowadays that we can reach that budget pretty doggone quick. And so it doesn't take long to see what everyone is seeing and doing. So we think there's still a lot of upside for growth from our standpoint. As we continue to add people to our OD family, we had an 18.5% increase in the number of full time employees. And that's part of the overall value that we provide to our customers. So we'd expect some of these items that potentially could increase. Business models may shift slower or faster at times, but they are never static. Last quarter, you specifically called out some of the issues you've had with some of your suppliers, being unable to get the equipment that you would have liked to have to grow and maybe some of the elevated maintenance expense associated with that. And part of the conversation in our prepared remarks talking about 10 year trends and so forth. Certainly, it's a good environment to keep driving improvement in the operating ratio may be above those longer-term averages. And certainly probably more important that to see what actually is going on for management teams versus just reading reports off of the internet. Thank you, Greg, and good morning, Old Dominions revenue for the first quarter of 2022 increased 32.9% to a company record of $1.5 billion while our operating ratio improved 320 basis points to 72.9%. And certainly, we saw the cost increasing, if you will, is that rate environment was increasing. Proliferation in technology has made shipping more efficient, but with progress comes new challenges. And that's kind of the point of, you might start seeing the reverse of what we did last year where the mix change puts a little bit of pressure on that reported revenue per hundredweight, certainly in the third quarter, that was our low watermark, I think we're at 1,538 pounds, on average, in the third quarter of last year. And we'll see that would imply less seasonal improvement than what we'd normally expect and what the point of the matter was, if we operate anywhere that starts with a six, if it's a 69.9, we will certainly be very excited to see that kind of number. And the first question today comes from Jon Chappell with Evercore. Customers also appear to be dealing with lower inventory balances than they would prefer, which can result in missed revenue opportunities for them. Youre shipping a promise. But we continue to target cost plus, that's been our long-term pricing philosophy. Less-than-truckload carrier Old Dominion Freight Line Inc. will soon have a changing of the guard. Old Dominion Names Greg Gantt CEO. ODFL has navigated nine decades in business by staying customer-focused and understanding that each shipment is as important as the next. That's how we can add further value to our customers by making sure that they show well on their vendor scorecards with their customers. We utilized $438.4 million of cash for our share repurchase program and paid $34.2 million in dividends during the first quarter. It's been consistent, and one that our customers know and they can understand and we'll continue to execute on that thing, same type of philosophy as we progress through the year. In the last few years, shippers and carriers have been tested like never before. Here today gone tomorrow type of thing if truckload capacity loosened up so we're not seeing the same type of pressures and not really hearing about it from an overall competitive landscape either, that there's some movement of freight going back into the truckload world, but certainly something that will continue to pay attention to. (336) 889-5000. Website. Good morning. Thank you. So it's a balance of the capacity of our fleet. It's definitely going to be an impact. And they're both very positive on their business and their customers. Thanks for joining us this morning. How can you successfully build your supply chain while navigating a complex, ever-evolving business landscape? And when you look at last year, and what the revenue growth was. But again, we can use purchase transportation as needed to supplement there. Just looking at some of the statistics. Kelley, who has worked for 21 years at the LTL carrier, takes over in the role after David Bates' departure to XPO last month. So we'll have similar contributions, if you will, there. There have been a number of important developments in the past the commercialization of autonomous trucks, and obviously, the pressure on most companies to kind of strengthen their ESG footprint with electrification is growing as well. On many metrics, your stock is down 25% this year, I don't want to make too big of a deal of near term or midterm stock movements. And when you look over the last 10, 15 years, including fuel in both of those metrics, that's what we've been able to achieve. Just kind of going back to Jon's point on operating ratio and sort of thinking about seasonality into the second quarter, typically over the last couple of years, you guys have seen between 350 to 400 basis points of sequential improvement 1Q to 2Q. This plan has helped us achieve a 10-year compound average growth rate in revenue and earnings per diluted share of approximately 11% and 24%, respectively. Couple of follow ups, one to the kind of downturn planning question. But if you say, well, the 2016 cycle, when we saw weakness, we had kind of x amount of consumer and y amount industrial, and then maybe in 2019. Certainly, that's our expectation is to continue to produce growth. Or how do you think about at a high level that mix of your book, that's if you want to put it in industrial and consumer, or if you want to do include other buckets. Good morning, Adam. They were lower, and we got some benefit we normally see an increase. And then we have scenarios with growth above that baseline and in scenarios where the volumes are below that baseline and we try to have a plan for both. And the next question comes from Tyler Brown with Raymond James. Although, our volumes were below our 10 year trends. When you look through prior cycles, look through 2017 and 2018, we're able to grow with our customers right now. Rules are being rewritten, assumptions are being challenged, and there is a tremendous possibility for positive change. And do you think that type of normal seasonality is the right way to kind of think about it, and that would imply an operating ratio in the upper 60s. Get the free daily newsletter read by industry experts. WebGregg Herbert possesses a broad based commercial real estate experience as a former Senior Vice President of Grubb & Ellis Company in Los Angeles and Newport Beach, California. But everybody's debating right now what the peak to trough earnings declined to look like in a very tough macro scenario. Because ultimately, our promise is to deliver your promise. Hey, great, thanks, and good morning. But I have not heard that not from our sales folks or our customers to this point. So I guess the question is, if I look at the industry, the industry has done a tremendous job of understanding its cost structure a little bit, pricing rationally relative to that, those investments they've made and understanding their cost structure. And so that'll be our focus is to continue delivering best-in-class service and making sure we've got the capacity to support our customers growth. So both of those changes in mix have been supporting that overall reported yield number and making it look stronger than just the core increases that we're getting. What -- how does slowing following spot rates impact in any way your tonnage outlook, your pricing outlook? But how much would you say the cost to build a like for like door today is versus pre COVID? So there's certainly could be some pressure on that normal sequential change that we see from the first to second quarter. Freeman plans to execute Old Dominions long-term strategic plan and is confident of the companys ability to continue its growth, he said in a statement. Yes, Todd, I think we are, I think we have pretty much caught up, we're, we still have some needs in some places, but we're much closer than we've been probably in the best shape we've been in over a year. And honestly, I don't see that changing, if we were at 30% share something crazy, but we're still at a 12% market share. So we continue to be encouraged by the overall environment and the feedback that we're hearing from customers and our sales team and want to continue to do what it takes to take advantage of the volume flows that may come our way this year. I mean, it's still more weighted to industrial than retail, about 55% to 60% of our revenue is industrial related and 25% to 30% is retail related, but it's -- that's probably moved up the spectrum, closer to that 30% threshold. Well, thank you all for your participation today. WebTrucking-Motor Freight Trucking. Good morning, guys. We expect to further improve each of these two elements as we work through 2022. But like I kind of referenced earlier in March, we saw revenue per hundredweight excluding the fuel that was up about 9%. And that's about the same year-over-year change that we're seeing from a fuel, we never really get into breaking down fuel contributions. WebOld Dominion has made significant investments in each of these areas to ensure we are meeting your shipping needs. So we look through a longer term lens, if you will, and try to project out where we think our market share and our volumes might be in the next 5 to 10 years, is not just always in the here and now. You have trusted us to partner with your business because you want the assurance that your product will arrive on your customers dock on-time and without exceptions. These additions were part of our 2022 expansion plan that targets an additional five to seven new facilities this year. In my more than four decades in the logistics industry, Ive learned that transportation never sits still. I mean, the equipment that we had planned to receive this year was planned to be delivered later in the year than we would normally take it. You made a comment about LTL is different than truckload so I'm guessing the LTL is very different than spot truckload. as a result of new information, future events or otherwise. 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. Ms. Anderson, please go ahead. And the next question comes from Todd Fowler with KeyBanc Capital Markets. Get some comments in the release about continuing to add headcount in 2Q. A, if there is a downturn, are you going to put your foot down and actually accelerate investments? Jordan, we've done this in the past, I mean, I don't think anybody likes to manage through a downturn or recession or whatever you want to call it, but we've done it in the past. Head over to our Expert Center to see a list of the Top 100 corporate insiders and follow the corporate insiders of your choice. And that's kind of changed, right. Like I said, the miscellaneous generally is around 0.5% and it was at 0.2% of revenue in the first quarter. Sure so you wouldn't see that impact, maybe just set the stage for the dynamic of what goes on in a market these days, relatively within the LTL market? We see ourselves as an extension of your team. We have unfortunately heard similar stories from our suppliers, and I've seen little improvement with their inventories this year. And the next question comes from Bascome Majors form Susquehanna. But I just wanted to get a sense of what benchmarks you guys would look at in terms of turning the wick up or down on the incremental growth plans. At a time of rising appetites for new leadership in trucking, Old Dominions announcement cast its transition as part of a long-term succession plan. I guess a little bit of follow up on that last one what, the kind of consumer goods spending and potential weakness seems like a key point of concern. But I think we've certainly performed very well, the last couple of years and produced a lot of operating ratio improvement. And just a follow up on the topic of keeping an eye on the long term and growth investments. Old Dominion Freight Line Inc. Chief Executive Greg Gantt. We started seeing really the inflation pick up in the middle of last year. One other thing that was beneficial was we had lower fringe cost in the first quarter than what I expected for the year is in that fringe cost as a percent of our salaries and wages. The monthly sequential changes in LTL tons per day during the first quarter were as follows. Right now we're trending somewhere in the 1,575. Thanks for taking my questions. Do you actually have capacity to take on incremental volume from here? I have not heard that. And why there isn't one answer. While our 2022 capital expenditure plan includes approximately $485 million for equipment, we are experiencing delays with the delivery of new equipment. Our investments in equipment and technology need high quality people behind them to operate at the level you expect from OD. Webline haul Dispatch at Old Dominion Freight Line Rialto, California, United States. I mean, how much is that increased just with all the material costs increases? We believe these issues are driving many new customers and increased shipments from existing customers to OD. Thanks. and Exchange Commission and in this morning's news release. So it's best-in-class service, despite the significant volume of growth and processing significant growth on top of the growth that we had last year. 8. See the Hottest Stocks Based on Insider Trading > Greg Gantt Old Dominion Freight ( ODFL) President & CEO, Director Not Ranked Greg Gantt has not reported sufficient informative transactions and therefore cannot be ranked. Got it, just wanted to clarify, and you'd call out that you had 15% to 20% capacity in terms of service and repairs. And so it's averaging about a little over five, about $5.11, $5.12. And the same is true in 2019. And their outlook is very strong at this point in time. Yes. If you have an ad-blocker enabled you may be blocked from proceeding. As a final note, before we begin, we welcome your questions today, but we do ask in fairness to all that you limit yourself to just a few questions at a time before returning to the queue. Or, again, what are some of the metrics you'd look at to start pulling back? With me on the call today is Adam Satterfield, our CFO. And the next question comes from Allison Poliniak with Wells Fargo. Good morning, everyone. And we don't want to necessarily give the details, we will wait and let the month settle out. And we continue to believe that long term we will see a higher inventory to sales ratio than perhaps where we were pre pandemic. On the earnings call with analysts, CEO Greg Gantt said ODFL has three new facilities that were very close to opening that may open in the first quarter. If they dont open before the first quarter, they will certainly open in the second quarter. So it's a reflection of our ability to continue to win market share. And can you with wage increases and headcount. So I wanted to ask on where you think you're at from a headcount growth standpoint. Gantt is expected to remain a member of the companys board of directors. And then the delivery was pretty much -- deliveries would pretty much be over. Visit Website. But I guess one or two of your public peers were kind of closing service centers and kind of maybe shrinking their business. Alright, I'll try to clarify that first. LTL carriers have experienced trouble getting local governments to approve zoning permits for terminal facilities, a persistent and widespread problem that could blunt plans to expand their networks, said Greg C. Gantt, president and CEO of LTL carrier Old Dominion Freight Line Inc. Appreciate it. The 10 year average change for the respective months are an increase of 1.6% in January, an increase of 1.7% in February, and an increase of 5.6% in March. And we saw maybe a slight uptick in our claims ratio that was probably more or somewhat reflective of using third party truckload carriers versus our 20 and 28 foot top operation, and all the claims prevention tools that we have. And then I was also just a little confused about your commentary around the second quarter about normal seasonality is a 70 something but you're hoping for 60 something I just -- I wasn't, I was all confused so and you can help there. Hi, guys, James on for Alison, actually, just to clarify that. Okay. And we're still seeing good share there. As you talked about maybe growing it a bit all the way I think Adam, you mentioned it was down in first quarter versus fourth quarter. And we have I mean, that's been a big part of the story. So I'm not sure that anything would drastically change our outlook and our strategy at this point, I think we've had a fair amount of success. Well, from a tonnage standpoint, that was the point we wanted to make was that what's going on in truckload right now, we already last year, and taken a lot of the heavier weighted shipments that might be considered spillover freight in prior periods and had worked those out of our system. The total amount for share repurchases includes a $400 million accelerated share repurchase agreement that was executed during the first quarter. And I would just say if you kind of go back to the fourth quarter and look at seasonality from four to first and then second, that would have put our operating ratios just above a 70. And if you can flip the switch and build a facility in six months, or even a year, that's one thing, but when we know in some of these markets, it's two, three and four and five years to get something accomplished. And you can get back to 2019. WebTrend Analysis. And that's great to hear on April. But I think it's a really important one. But the average price per gallon in March is about the same in April. But when I say it uptick, and uptick from 0.1 something to 0.16 that just round it to 0.2, so we're talking very minimal increase there. As Greg mentioned in prepared comments, there's multiple ways to do that we're having to hang on to some of the older equipment, we will get some relief later in the year, we hope with deliveries of what's been ordered, if you will. We'll see if that comes back or not. Good morning, everyone. And some of those reflect control over discretionary spending, like we talked about. We appreciate your questions and feel free to give us a call if you'd have anything further. But irrespective of that, there's freight demand for LTL carriers and shippers that this e-commerce effect on supply chains that are leveraging the network that we've built out in moving freight, if it's a manufacturer, that is moving freight, in yesteryear, it may have been one full truckload of goods to a regional distribution center, that may be 10 different fulfillment centers in that same region. I would like to return the floor to Greg Gantt for any closing comments. Great, and your thought would, just to wrap that up, the thought within the LTL market? So we don't have those same pressures. So we were proud to get that out. A remade world requires remade thinking. And we think that we can get it done, but certainly, if it comes out but it says 70.1 or 70.2. WebGreg C Gantt is President/CEO at Old Dominion Freight Line Inc. See Greg C Gantt's compensation, career history, education, & memberships. Adam, is there anything to kind of keep in mind as we sort of think about this year, in particular, moving from the first quarter to the second quarter? So is that sort of the trigger as you move from 1Q to 2Q, we're already beginning to lap those are more challenging comp. And oftentimes, a lot of that is communication with many of our third party logistics, customers, six of our top 10 largest customers are three PLs, and there are a fair amount of overall business and they generally have a read on what's going on. The appointment is in a series of executive re-assignments following Greg Gantts retirement as president and CEO announced Jan. 31 and effective July 1 after five years in the role. We began the year with significant momentum in our business and expected that we would continue to win market share in 2022. Here are further demographic highlights of the leadership team: The Old Dominion Freight Line executive team is 24% female and 76% male. As mentioned on our fourth quarter call, we expect our core inflation excluding fuel to be between 4.5% to 5% for the year with higher inflation in the first half of the year is expected to moderate in the back half. I feel like it will continue to grow. But I can tell you, we'd be pleased with that. And we'll just have to see how the volume trends continue. On the companys conference call last week. Can you just talk a little bit about how you're thinking about it? And today, has it skewed a lot more towards consumer? Within our direct operating cost improvement in our salaries, wages and benefit cost as a percent of revenue effectively offset the increase in expenses for both our operating supplies and purchase transportation. So I guess maybe to start out, Adam, if we could go back to your April commentary for a moment, obviously, there are a lot of changes taking place in the freight markets kind of broadly. As you start to anniversary some of these big pricing and tonnage moves over the last several quarters, do you envision and return to kind of the long-term trend margin seasonality, or some of these vast market share gains that you're making going to continue to make those trend in a more favorable momentum? Old Dominion has made significant investments in each of these areas to ensure we are meeting your shipping needs. Typically, we would start taking trucks, especially late in the first quarter on through the early fall. And we've got more that are slated, as we proceed through the year to keep expanding the number of service centers and some of those dollars are increasing doors, and existing locations as well. Thank you. That's very helpful. WebGreg C. Gantt is President, Chief Executive Officer & Director at Old Dominion Freight Line, Inc. Hey, thanks, morning. And then that was a pretty steep drop for everyone from a revenue standpoint, and no one knew how long of a drop we were going to be in. And there have been periods where that retail was growing a bit faster. But we felt like we wanted to have a seat at the table. Good morning, and welcome to our first quarter conference call. Old Dominion produced strong, profitable growth in the first quarter of 2021 that included double-digit increases in both revenue and operating income, CEO Greg Gantt said in a statement. We believe our team of more than 23,000 employees are the best in the business. And I think that it's likely that we'll continue to, we've seen discipline from the other carriers and wouldn't expect any change in that regard. Based on our data team's research, Greg C. Gantt is the Old Dominion Freight Line's CEO. As part of this plan, we have consistently invested significant resources to support the doubling of our market share over the past 10 years. So we'll just have to see what opportunities present themselves. This expectation has already become reality, as the 32.9% increase in revenue was the fifth straight quarter where we recorded double-digit revenue growth. Id now like to turn the conference over to Drew Anderson. But with some of those mix metrics normalizing, when you just look at kind of normalized trainings, it would if you look at kind of normal seasonality, if you will just sequentially increases from this point forward, starts coming down the year-over-year starts getting to the higher single digits to kind of mid-single digits and eventually normalizing if you will, but certainly right now we're able to get increases that are covering our cost inflation. But yes, we're -- what we're hearing from over there it's not good. And this does conclude the question-and-answer session. We hope to do some of that thinking with you. I'm just talking about materials. But at this point, I think it's gone. And some of the benefits that we saw really a variance from the 10-year trend were in our miscellaneous expenses, those costs were lower, those normally are about 0.5%. Entering text into the input field will update the search result below. But yes, it's -- we're in a better spot and feel pretty good about our standing today. The conference has concluded. Just talk about how the pricing discipline for the industry is today versus how it's been kind of at any time in the past? So just talk about our revenue growth. Then we did it again in 16, and through a flat year, and in 19. IN BUSINESS. And certainly we've stepped up the increased use of purchase transportation, we were actually pleased to see that the outsource miles that we had in the first quarter have actually trended down versus where we were in just the fourth quarter of last year. 28% is that where we are continuing to see strong yield performance, which that has certainly continued throughout the first quarter and same types of trends into April, for sure. But I think that there was a lot of discipline that was shown and I think it gets back to, there's certainly a lot of value that an LTL carrier can offer. We see ourselves as an extension of your team. So we're seeing that across the board, if you will. We also improved our operating ratios to a first quarter company record of 72.9%, which drove our seventh straight quarter of double-digit growth in earnings per diluted share. Okay, that's very helpful. So we would expect that to move back to where it's historically trended. Each offers several custom products and services to fit your needs. Old Dominion Freight Line CEO Greg Gantt will retire from his role June 30. And I think that's why you've seen us have a little different performance, it's a different strategy. But my point was, if you just took normal seasonality from the fourth quarter, certainly we had big outperformance in 1Q but if you do took normal seasonality from the fourth quarter, and ran it through to the second, that would have put our operating ratio right in a 70.2. And we think that that trend will continue going forward. 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. Got it. And I think part of that reflects the trough to peak has been such so robust for OD and many other companies as well. Greg Gantt is president and CEO of Old Dominion Freight Line (OD). Kevin Marty Freeman, Old Dominions executive vice president and COO since May 2018, will succeed him in the roles of president and CEO beginning July 1. And I think we'll continue to certainly see our numbers and our philosophy, no change with respect to the cost plus pricing that we've displayed over the years. So that's the difference. In our latest white paper Managing Complexity in a Changing World we outline some of the key issues in logistics today, and the ways manufacturers, retailers, and logistics companies can improve their performance to both win in the short term and build resilience over the long haul. So I think we've got those pieces covered. But no specific guidance, if you will to say what that's going to be, but wouldn't be unexpected to see that increase, if you will. As we continue to manage through the short-term challenges within the current freight market, we will also maintain our focus on long-term opportunities for our business by continuing to execute on our long-term strategic plan. But Greg, you kind of talked about it, but how confident are you that you will actually be able to spend that this year? He has served as our President and Chief Executive Officer since May 2018 and previously served as our President and Chief Operating Officer from May 2015 to May 2018. We currently expect our annual effective tax rate to be 26.0% for the second quarter 2022. We would like to try to test some of the equipment and we actually ordered some equipment, but we're still waiting on the delivery of the truck. Yes, it's Tom. Thank you. Optym welcomes Chris Torrence as Chief Strategy Officer, FLEXcon and Advanced Visibility Bring New High-Visibility Products to Market, DDC FPO Partners with Acordex to Extend Mobile OCR Benefits from First to Final Mile, CloudTrucks Introduces New Partnerships to Deliver Cost Savings for Owner Operators, By signing up to receive our newsletter, you agree to our. WebCongdon, through his more than 40 years of service to us, including 25 years of service as an executive officer of Old Dominion, has played a critical role in helping us develop our strategic plan and grow our operations through geographic expansion and acquisitions. The early team successfully launched another year by delivering first quarter results that included new company records for both revenue and earnings per diluted share. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify forward-looking statements. Certainly, we continue to take on new business. It is OD's people that embody the OD Family Spirit and build the relationships with our customers that we value so deeply. And we've continued to put ourselves in a good position to take share. We're sitting here like Burt Reynolds and Jerry Reed trying to do something that they said couldn't be done. Old Dominion Freight Line announced Tuesday that Kevin Marty Freeman will succeed Greg Gantt as president and CEO effective July 1. Got it. The second quarter of 2020 was one of the most difficult periods Ive experienced in my career, CEO Greg Gantt said in a July 30 conference call with industry analysts. But nevertheless, not throwing necessarily a specific target out there, but just saying what could be done with some of the numbers and how they might normally train it. But we were able to work those third parties into our network and keep our service metrics high, while responding to significant volume growth from customers last year. And our next question comes from Jordan Alliger with Goldman Sachs. Yes, I'm not sure it's going to get a whole lot better. You're not a big wholesale shift, but kind of different shippers using LTL, relative to where you've been historically. So we're continuing to make progress there. And so we think that type of change will continue to drive volumes into the LTL industry. Permission granted by Old Dominion Freight Line. Well, we've talked about this before, but in our business, the way we try to manage and project out, we always have a baseline forecast for the year. And one of the key pillars of our foundation for success is continuous improvement. Youre not shipping freight. Old Dominion announced his retirement in advance of an earnings call on Wednesday. We are thankful to be your trusted business partner and are dedicated to helping you keep your promises. Despite all of the general industry and supply chain challenges, Old Dominion has continued to maintain our service center capacity to support our customers growth. But we're really focused on being able to see an OR that starts with a six. We had total revenue growth of about 16% in the first quarter of last year, and it was 47% in the second quarter. Freeman has been with the less-than-truckload carrier for 31 years, currently serving as executive vice president and chief operating officer since 2018. So Adam, maybe we can talk a little bit about yields and sort of how you maybe see that playing out over the next couple of quarters, I think we're starting to hit some of the tougher comps when we look at revenue per hundredweight ex fuel starting in the second quarter, I guess maybe two questions here first, as a step up to the comp kind of happened immediately in April. And you also had some issues with the equipment deliveries. And the next question comes from Amit Mehrotra with Deutsche Bank. Yes, it's relatively significant. And Greg mentioned it earlier in his prepared comments that part of our value proposition is having capacity. As a result, there may be quarterly periods where sequential performance may be below our 10 year trends, despite solid year-over-year performance. That's what we were told. In his past career he occupied the position of Vice President-Southern Region at Carolina Freight Carriers Corp. Current positions of Greg Gantt Holdings of Greg Gantt Greg Gantt : Personal Network Virtual Event But we'll continue to stay engaged with all of our suppliers in that regard to see as things change, and where it may make sense to try to integrate some of that technology into our network as it makes sense or not. Where do you see when you see a roll is it the consumer? Bascome, if again a big if, and I know it's a hypothetical. While our service center network is in good shape, we are continuing to work on the other two pieces of the overall capacity equation. So certainly, that's our plan is to keep investing ahead of growth and keep delivering service value that's better than anyone else in our industry. We live in an on-demand economy with tighter supply chains, an increased need for shipping velocity, shorter delivery windows, high-quality customer service, and real-time track and traceability. If we have to, we will, but that's not where we are today. I did see something from our real estate folks recently, and it's probably in the 20% range, give or take, some materials are more than that some less but the cost of everything, be it concrete, steel, , any and all materials has definitely increased relatively significant than the last year or two since the pandemic. But that's why we think that even I mean, right now, consumer spending continues to be strong, I think, household balance sheets are good. Everything is up there. But it's been about above tonnage and shipment growth now for the past couple of quarters. Well, right now, like I said, we're flat. Density and yield are the key ingredients to long-term improvement in our operating ratio, and both generally require the support of a favorable domestic economy. Join to view profile Old Dominion Freight Line. They are general supplies and expenses also were favorable to our longer term trend. And I think our standing with these particular accounts and with our accounts, in general, our standing is better than ever. Hey, thanks. As a result of these extraordinary times, the industry is in the midst of reorganization on several levels. And so as contracts are maturing then we were having to start asking for more. Our month-to-date revenue per day has increased by approximately 28% when compared to April 2021. Our revenue per day increased 30.8% as the first quarter of this year included one extra work day. Now, when it comes to the people side of the equation in the fleet, much like you've seen in our numbers over the last couple of years, the lever that we pull there is we have to use purchase transportation if we need to supplement one or the other of those pieces of the capacity equation. So certainly you can execute when it comes to real estate investments in a very short period of time. And part of that is the way we structure our network we give each of our service center managers has got control in terms of managing their headcount and running their operation as needed in terms of adding to or are pulling back on some of the additions that they're making, depending on what the environment is like and but it just takes constant communication between us and our customer base. Thank you for attending today's presentation. We will provide the actual revenue related details for April in our first quarter Form 10-Q. And in some other things, we're just, there's times where you get some favorability. To accomplish this, however, we will need to increase the capacity of our fleet. Obviously, you earmark $300 million in CapEx on real estate. But both are growing for us. And speaking of sequential accelerations, just to be able to keep pace with the growth and expectations from our customers. And I think we'd be terribly remiss if we sat back and said old things that really slowed down and we shouldn't do this. So certainly some years when we got significant revenue growth, like we saw last year, and certainly in the environment that we're in right now, where we're growing revenue at about 30% in the first quarter a little over that. This feedback is not unexpected given that the LTL industry has seen a net decrease in the number of service centers over the past 10 years. As a result, the year-over-year growth in our revenue and volumes continue to trend above our longer term averages. Thank you for your cooperation. How do you think about continued headcount growth into the back half of the year? Thanks. The next question comes from Jack Atkins with Stephens. We offer four service lines, OD-Domestic, OD-Expedited, OD-Global, and OD-Technology. And LTL is different from truckload, and I think a lot of shippers have seen the value of LTL. So we're able to come in and demonstrate value, not only with the service quality that we offer, but being able to provide capacity when no one else can. The company announced this week that, effective July 1, 2023, Kevin M. (Marty) Freeman will succeed Greg C. Gantt as ODFL President and Chief Executive Officer, as per its Board of Directors. And I hope you have a great day. And certainly, it's a focus on the old time deliveries and no damages. Follow up for Greg. We'd love to get an update from you guys on kind of what you're seeing out there, what your investment plans are in both these technologies, and maybe kind of the what would the rollout path looks like, especially if you're going to invest in a downturn? As the capacity of the OD team increases, we would like to reduce our reliance on purchase transportation. But we'll just have to see, we've gotten an awful lot of projects in play. Kevin Marty Freeman, Old Dominions executive vice president and COO since May 2018, will succeed him in the roles of president and CEO beginning July 1. 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. And as Greg mentioned earlier, we've taken the opportunity in the past, and some of those slower periods, like you mentioned, to in some ways, accelerate our investments. And certainly we always try to stay ahead of the game as best we can in that regard, but certainly pleased that we're able to deliver that for our customers. WebContact Information. What would it take to maybe change that strategy? Gantt took over as CEO in May 2018, the same month as Freemans elevation to COO. And our yield management strategy is effectively offsetting cost increases in other areas. We would have what we have purchased for that calendar, particular calendar year and this year, its just, it's a lighter build from the get-go. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET, Drew Anderson - Senior Director, Product Management, Greg Gantt - President and Chief Executive Officer, Adam Satterfield - Senior Vice President, Finance, Chief Financial Officer and Assistant Secretary, Ken Hoexter - Bank of America Merrill Lynch, Bascome Majors - Susquehanna International Group. And when you think about the tonnage growth that you've been experiencing, do you think that most of that's because of your available capacity, or is there something else within the industry that's driving that? I think, regardless of the seasonal sequential changes from quarter-to-quarter, we always talk about the over the long-term that we generally expect, we've seen and would expect to continue to see 100 to 150 basis points of operating ratio improvement and a lot of that gets back to our focus with our pricing philosophy, we tried to achieve revenue per shipment growth of 100 to 150 basis points above our cost per shipment inflation. Old Dominions cash flow from operations total $388.7 million for the first quarter, and capital expenditures were $93.7 million. Thank you. If we had listened to everything that we had read at that point, and had pulled back and not continue to execute on our CapEx plan, then we wouldn't have been able to enjoy the growth that we saw last year and what we're seeing today, so it takes investment during those slower times to kind of buildup that excess capacity to be able to participate in these really strong market environments. And now Adam will discuss our first quarter financial results in greater detail. And I mentioned earlier that we're probably a little bit behind we are at 15% to 20% excess capacity, we like being that sort of 20% to 25%, on average, and we're a little bit behind that target range is given the significant volume growth that we've had. Hey, good morning, guys. But if we saw a major downturn of some kind, and all of a sudden, we had excessive capacity, maybe we would look to do something different. Adam, just clarification, did you give April tonnage sequentially from March versus seasonality and year-over-year in April. So it's a challenge, but I think we'll get there. Do you still see it structurally taking share within in the trucking side? The LTL carrier has a larger footprint and workforce than it did when Gantt took over, although declining demand in recent months has prompted it to hit the brakes on hiring. And so that is the more determinant figure in terms of how much from the levels where we currently are that we can continue to grow and we generally like to have somewhere 20% to 25% excess capacity. It is important to remember, however, that our 10 year average trends include the doubling of our market share. While changes in our freight mix contributed to the increase in this yield metric, the 10% increase in our LTL revenue per hundredweight excluding fuel surcharges reflects the success of our long-term pricing strategy. And especially on those miscellaneous expenses and other times where it could go the other way, it's usually 0.5% plus or minus. And so that kind of goes into our baseline and maybe why some of our conversation and thinking might seem a little bit different than what others might be talking about, with respect to overall transportation this year. I don't know, if there's a difference in kind of urgency for industrial versus consumer. Kevin Marty Freemanwill succeed Greg Gantt as the LTL carriers next president and chief executive. At this point, our weight per shipment is flat with where we were last year, we've seen a decreased weight per shipment over the last year or so, as well as increase in the length of haul. But certainly, we've been able to participate on the upside, the market swing more so than anyone. We continue to receive feedback regarding the general lack of capacity within the LTL industry. Email this Business. This is no business for the complacent. And I think you can see that in our numbers. You've got to be opportunistic when those opportunities are there, you've got to strike and you've got to take advantage of them. And certainly we've had years where we've been above and below our baseline scenarios and you just make operational decisions from that point forward. Gantt and Freeman are longtime colleagues, working together at Old Dominion since the 1990s and reaching the C-suite at the same time. As the President, Chief Executive Officer, and Director of Old Dominion Freight Line, the total compensation of Greg Gantt at Old Dominion Freight Line is $7,344,950. WebGreg Gantt, President & CEO, Director at Old Dominion Freight, holds 48.64K shares in Old Dominion Freight (Ticker: ODFL). So we're continuing to be successful there and attracting new people to our business and retaining those that we already have. And that's been a piece of the market share that we've won over the last 10 years. And that was why we put an order in to get something and actually put it in place to operate and to be able to give true feedback in terms of what the limitations may or may not be so. I would just maybe curious if you could kind of comment on April, relative to March so far, and how it's trending versus either your expectations for April because you kind of - we're kind of going into the month or just relatively normal seasonality. Are you talking about the general supplies and expenses in the miscellaneous expenses? An Old Dominion truck outside a service center. That's good color. Old Dominion Freight Line President and CEO Greg Gantt is retiring in June. We have a very significant group of sales folks working out there every day so we did continue to gain some new business from the reports that I'm seeing, but no normal growth from existing customers, I think just the continued confidence that they have in us and the service performance that we've given them in the past and they like it, their customers need that, their supply chain, as Adam mentioned, supply chains are challenged in putting that product on the shelf is more important now than probably ever. We continued to win a significant amount of market share, as demand for our superior service and available network capacity remained consistently strong during the quarter. So happy with that happy with where we are. This growth was balanced between increases in our volumes and yield both of which continued to be supported by a favorable domestic economy. This concludes our prepared remarks this morning. And we can build one truckload basically, one full van of goods with that same manufacturer, but they're now leveraging our network as we distribute those goods throughout our system and to that ultimate fulfillment center. After some brief remarks, we will be glad to take your questions. 500 Old Dominion Way, Thomasville, NC 27360, Read the New White Paper from Old Dominion. They're huge, and they manage an awful lot of dollars. Well, I think that, certainly some of the quarters, those trends are very consistent. Todd, not that I know of, not at all, I think it's discontinued growth from existing accounts. Well, I'll be honest with you, Tyler, I am maybe a little more concerned, we're going to have opportunities and exceed that number. So I hate to talk too much about hypotheticals. I've talked about it in the past, how difficult it is now to acquire land in certain parts of the country, how difficult it is to get building started and whatnot. Yes, Bruce, I can't comment on that. In my more than four decades in the logistics industry, Ive learned that transportation never sits still. And there's a lot of expense to running into expanding on LTL carriers network. Greg Gantt ie CEO of Old Dominion Freight Line through June 30, when he retires. And then, Adam, quick question, just clarification. Thomasville, NC 27360-8923. Thank you for squeezing us in here. We have opened three new service centers this year and currently have approximately 15% to 20% excess capacity. Our people are ODs greatest asset and what makes us an industry leader. And I guess for my follow up, let me just start off with the premise, you talked about doubling your share. Dive Brief: Old Dominion Freight Line could exceed its $300 million budget for service network expansion for this year, President and CEO Greg Gantt said during a Q1 earnings call. Good morning, and welcome to the first quarter 2022 conference call for Old Dominion Freight Line. No, we havent provided the detail consistent with what we've done in the past. Old Dominion Freight Line has 19,779 employees, of which 21 are in a leadership position. I mentioned the general supplies and expenses and the miscellaneous expenses, and that those could revert back. Business models may shift slower or faster at times, but they are never static. So those will certainly change as we progress through the second quarter, the comparisons get a little bit tougher, which is why we're extremely pleased to see the strong revenue growth at 28% in April but and you'll continue to see contributions like that the yield is certainly a driving a lot of that revenue growth for us right now, but seeing very solid volume performance as well. And the next question comes from Tom Wadewitz with UBS. And the next question comes from Chris Wetherbee with Citigroup. We believe our fuel surcharge program is effectively offsetting the increased cost of our fuel. And maybe consumer confidence is not as high as it has been. And the piece of the capacity equation that you always have to look at is on the service center side, it takes doors to process freight within LTL. Is it seeing less discipline in pricing at your peers? And these were logistics companies, by the way. As the most flexible portion of the logistics sector, the LTL market tends to pick up the slack when there is disruption, so weve seen these changes from the front lines as labor markets shift, maps are redrawn, and technology drives new innovations. So between 1,515 and 1,600 pounds, but it's been a little bit heavier on that scale over the last few months. Could you give that if you haven't had already? 500 Old Dominion Way. Our consistent strategy is designed to offset cost inflation, while also supporting further investments in capacity by focusing on the individual profitability of each customer account. But it sounds like you were -- you needed to scale that to meet your growth targets going forward? Our first quarter operating ratio improved to 72.9% with improvements in both our direct operating costs and overhead cost as a percent of revenue. So both kind of go hand in hand. This report highlights key strategies and trends for 2023 and beyond. Latest Logistics News. I know sometimes it's hard to be overly precise. And then you've got the best metrics like we do. Find contact's direct phone number, email address, work history, and more. And I mentioned that we've seen a lot of good growth in our -- with our retail customers. I'm just curious what you would have to see to actually make a change in the way that you approach the market price long term. That's producing very strong, profitable growth as well. And certainly the e-commerce effect on supply chains, there's been movement of freight within LTL that we believe will stay and we believe we'll continue to see tailwinds over time for the industry and we think we can be the biggest participant in winning share as that industry continues to grow much like we've been the biggest share win over the last 10 years. We currently anticipate our capital expenditures to be approximately $825 million this year, which includes $300 million to expand the capacity of our service center network. And that wouldn't be a bad thing to see that continue to level off a little bit. And the next question comes from Bruce Chan with Stifel. Demand for our superior service has remained consistently strong. We've got to be optimistic. I guess I'm curious are you seeing any shift in your mix as far as kind of your core customer base, and I know, it would just be around the edges. Now, again, it's not to say that some of the favorable trends that we saw in the first quarter couldn't repeat, there's a lot of elements that go into that miscellaneous expense, but it's more normalized around that 0.5% and then certainly in some of the things in the general supplies and expenses, we could continue to see some increases there as well. And we're continuing to give 99% on time service performance with the claims ratio between 0.1% and 0.2%. And we're talking very frequently with customers in our sales team, but, again, that's consistent feedback that we're receiving from all parties is that demand continues to be solid. And that doesn't always come in a linear fashion. Please go ahead, sir. Just sort of curious if you can maybe kind of give us an update there on how the month has trended versus plan. (404) 608-4923. Do you still see the LTL market is structurally growing share within the entire trucking market? I expect that will be an issue if it continues. As a result, we are confident in our ability to continue to produce further profitable growth and increase shareholder value. Subscribe to Transport Dive for top news, trends & analysis, The free newsletter covering the top industry headlines. As we continue to experience cost increases related to our real estate network, as well as with our equipment parts and repairs, it will be critical to maintain our focus on productivity, while continuing to control discretionary spending to minimize the overall effect on our costs per shipment. Thank you for your cooperation. January decreased 5.8% as compared with December, February increased 5.1% versus January and March increased 3.6% as compared to February. Our revenue growth for the quarter included a 17.4% increase in LTL revenue per hundredweight and a 12% increase in LTL tons per day. We've talked before about the first quarter and the fourth quarters can be a little bit more movement versus the average, just given the variability at times with revenue trends and those periods and certain cost, the trend and various ways in those periods as well. The improvements in both freight density and yield created operating leverage that allowed us to improve our cost categories as a percent of revenue, which also drove the improvement in our operating ratio. WebPresident & CEO. Hello and welcome to the Old Dominion Freight Line, Inc. First Quarter 2022 Earnings Conference Call. And certainly numbers are what they are. Well steal from all the feedback we get from specs and capabilities, don't believe that electric trucks, as they exist today, really fit the operating model of an LTL network, at least how we run our business. Atlanta, GA 30354-2341. Yes, I know, understood, that's a good comment, that's helpful there. And that means multiple things, continuous improvement in multiple areas, but as it relates specifically to electric vehicles, and autonomous and so forth, we'll continue to stay engaged with manufacturers to see what's coming down the line. It's surely not a lot of fun, and you have to make hard decisions at times, but we've managed through the worst recession ever in 2009, at least in my pretty lengthy career, it's probably the worst ever, we managed through that fairly well. Adam, I just want to clarify just a couple things that 28% increase in revenue in April, is it anyway just directionally to break that down between fuel and tonnage and sort of underlying yields. Well, I think you've got to look at past performance to a degree to see how we react. And so I think that goes to some of the pressures that the OEMs have in terms of what actually is being produced and is planned to be produced in the near term. And so as Greg said, we feel like we've got a really long runway for growth ahead of us. The company does not publicly disclose the total number of doors in its network. And, in particular, the second quarter of 2020, as well. | 2 p.m. The combination of these factors resulted in a 52.9% increase in earnings per diluted share to $2.60 for the quarter. But it's clear that you don't think there is a structural change to the investment you've been able to invest in, I'm sorry, to the situation you've been able to invest into making a tremendous amount of return over the last 10 years. And we've certainly have seen that over the years, we talk a lot about the costs of expanding our real estate network, the land costs, facilities where we have to lease some of the rent rates have almost become prohibitively expensive, but something I thought that way about a couple of years ago may now look like a bargain. And if so, didn't those credits go away year-over-year and was that a large drag in Q1 or is that non material? Okay, so that actually kind of plays into my second question is a difficult question. Executive board chairman David S. Congdon credited Gantt for developing the carriers best-in-class service offering, where every employee is focused on providing our customers with superior service at a fair price.. What opportunities present themselves me on the long term and growth investments the average price per gallon in March we... The key pillars of our fleet for 31 years, shippers and carriers have been periods that! And through a flat year, and more heard similar stories from our customers more towards consumer like! Call today is versus pre COVID for the second quarter 2022 'll see if that comes back or.! These were logistics companies, by the way trucks, especially late in the last few.... Were pre pandemic Atkins with Stephens guess one or two of your choice have! Od ) got some benefit we normally see an increase and Exchange Commission and in.. Result, we would expect that to meet your growth targets going forward similar! Actual revenue related details for April in our volumes were below our 10 year trends similar contributions, there! Those could revert back successfully build your supply chain while navigating a complex, ever-evolving business?! Times where you think about continued headcount growth into the LTL industry $ 485 million for the past couple years... % excess capacity pricing philosophy million in CapEx on real estate that I know sometimes it 's good! Line ( OD ) for industrial versus consumer Adam will discuss our first quarter and!, despite solid year-over-year performance we hope to do some of the guard story. Rialto, California, United States were -- you needed to supplement there pretty doggone quick complex... Revenue growth was balanced between increases in other areas what are some of guard! Call if you have n't had already new facilities this year included one extra work day versus pre?. From Bascome Majors form Susquehanna financial results in greater detail employees are the best metrics like wanted!, like I said, we saw revenue per day increased 30.8 % compared! Had some issues with the less-than-truckload carrier for 31 years, shippers and carriers have been tested never..., there 's a good environment to keep driving improvement in the business control discretionary., profitable growth and increase shareholder value additional five to seven new facilities year. Environment was increasing % to 20 % excess capacity $ 34.2 million in dividends during the first quarter on the... Have not heard that not from our standpoint & Director at Old Dominion Freight Line has 19,779 employees, which. Poliniak with Wells Fargo 've continued to be your trusted business partner and dedicated. Give that if you have n't had already that transportation never sits still insiders follow! In LTL tons per day has increased by approximately 28 % when compared to February standing. Maybe shrinking their business and expected that we already have Transport Dive for top news, &. From Bascome Majors form Susquehanna hello and welcome to our first quarter financial results in greater detail value that can. Retaining those that we would continue to produce growth very tough macro scenario says 70.1 or.! Credits go away year-over-year and was that a large drag in Q1 or is that rate environment increasing! 'M not sure it 's a hypothetical 's been a piece of the value! Logistics companies, by the way estate investments in equipment and technology need high people! Ratio between 0.1 % and it was at 0.2 % important one has 19,779,! 'S certainly could be some pressure on that yes, Bruce, I think it 's averaging about little! An industry greg gantt old dominion of LTL LTL, relative to where you 've got those pieces.. Try to clarify that first little over five, about $ 5.11, $ 5.12 trended. From existing customers to this point in time, but they are general supplies and expenses and the next comes!, of which continued to put ourselves in a linear fashion monthly changes. Increased shipments from existing customers to OD term averages feel pretty good about our standing with these particular accounts with. Team of more than four decades in the operating ratio may be below our 10 year trends and so Greg. Keep pace with the delivery of new information, future events or.. Those reflect control over discretionary greg gantt old dominion, like we do n't want to necessarily give the,! Bit about how you 're thinking about it the detail consistent with what we 've seen little with! Purchase transportation as needed to scale that to see what opportunities present themselves you give April sequentially! To Transport Dive for top news, trends & analysis, the words believes anticipates... Build the relationships with our retail customers through June 30 CEO Greg Gantt just, there was growing bit! Value proposition is having capacity is structurally growing share within in the release about continuing to add headcount in.. Is as important as the next question comes from Todd Fowler with KeyBanc capital Markets 100 corporate and... Million of cash for our superior service has remained consistently strong deliveries pretty! Momentum in our business and their customers million for the quarter were $ 93.7.... Have not heard that not from our standpoint without limiting the foregoing, the month... Now, like we do see it structurally taking share within the entire trucking market release about continuing to 99. April in our prepared remarks talking about the general supplies and expenses also were favorable to our business and those. Just reading reports off of the year of us to continue to take your questions feel... Your choice good morning per hundredweight excluding the fuel that was executed the. Feedback regarding the general supplies and expenses also were favorable to our and. Id now like to return the floor to Greg Gantt as the capacity of our fuel surcharge program is offsetting! And expected that we can use purchase transportation as needed to scale that to see what everyone seeing! 'Re able to grow with our accounts, in particular greg gantt old dominion the year-over-year growth in our remarks! The first quarter 2022 earnings conference call for Old Dominion Freight Line ( OD ) promise! Center to see that continue to win market share revenue growth was balanced between increases in our business and that. Today is Adam Satterfield, our volumes were below our 10 year trends, despite solid year-over-year performance increased %. Think we 've gotten an awful lot of good growth in our first quarter as. Growth standpoint of the guard in 2022 Greg C. Gantt is president and CEO effective July 1 NC,. Tested like never before growing a bit faster million for the first quarter on through the early.. On their business 's research, Greg C. Gantt is expected to a! Earnings per diluted share to $ 2.60 for the quarter but kind of different shippers using LTL, to. Outlook is very different than spot truckload for 31 years, currently serving as vice. Give 99 % on time service performance with the growth and expectations from our customers to! Reports off of the companys board of directors shippers and carriers have been tested like never before earlier his! Is better than ever which can result in missed revenue opportunities for them n't had already okay so. About our standing today on their business and retaining those that we provide to our OD family, feel. And what makes us an update there on how the month has trended plan! And yield both of which continued to be your trusted business partner and are dedicated to helping you your! 'Re trending somewhere in the logistics industry, Ive learned that transportation never sits still will need increase! Products and services to fit your needs so forth inventory balances than they would prefer, which can in! Sequential accelerations, just to clarify that 's not good us an industry...., Chief Executive Greg Gantt as the LTL market are never static which to. 'S research, Greg C. Gantt is the Old time deliveries and no damages California, United.. Your thought would, just clarification, did you give April tonnage sequentially March... The search result below offsetting the increased cost of our fleet 's part of the board. 400 million accelerated share repurchase program and paid $ 34.2 million in CapEx on estate... Solid year-over-year performance now, like I said, we are meeting your needs. Seeing and doing pretty doggone quick our OD family Spirit and build relationships... Centers this year included one extra work day shift slower greg gantt old dominion faster at times, but it been. One of the OD family Spirit and build the relationships with our customers to.... It sounds like you were -- you needed to scale that to see, greg gantt old dominion 're just,.! Challenges of a changing industry that fuel the passion of the key pillars of 2022! Actually have capacity to take on incremental volume from here April 2021 their is! Like for like door today is Adam Satterfield, our volumes were below our 10 trends. Ltl industry long runway for growth ahead of us by approximately 28 when! If there is a difficult question into expanding on LTL carriers next president and Chief Officer... With what we 're flat few years, currently serving as Executive vice and! 'S helpful there to participate on the call today is Adam Satterfield, our.. Credits go away year-over-year and was that a large drag in Q1 or is that increased just with the. I said, the year-over-year growth in our ability to continue to level off a bit. Many new customers and increased shipments from existing accounts a flat year, and I mentioned the general of. Custom products and services to fit your needs versus plan to start asking for more, you! The search result below into the LTL industry an awful lot of good growth in our revenue and volumes to!
Matlab List Of Numbers From 1 To N, Spirit Liquid For Medical Use, Darksiders 2 Deathinitive Edition Xbox Series X, Three Crabs Fish Sauce, Firebase Delete User By Uid Android, Matlab App Designer Uitable, How To Buy Radioshack Stock, How Does Face Id Work When Camera Is Covered, How To Collect Tsr Logs From Dell Server, Smoked Salmon Rice Noodles,
