Old Dominion Announces $0.17 Per Share Quarterly Cash Dividend and Adopts New $350 Million Stock Repurchase Program
May 16 2019 - 09:00AM
Business Wire
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) today announced
that its Board of Directors has declared a quarterly cash dividend
of $0.17 per share of common stock, payable on June 19, 2019, to
shareholders of record at the close of business on June 5,
2019.
The Company also announced that its Board of Directors has
approved a new two-year stock repurchase program authorizing the
repurchase of up to $350 million of its outstanding common stock.
This new repurchase program will commence upon the expiration of
the current two-year repurchase program, which was announced on May
17, 2018. The remaining authorization under the current repurchase
program was $48.5 million as of May 15, 2019.
Greg C. Gantt, President and Chief Executive Officer of Old
Dominion, commented, “We are pleased to announce the Board’s
approval of the second quarter dividend and new stock repurchase
program. While our primary focus continues to be investing in
strategic assets that promote the long-term growth of our business,
our strong profitability, cash flows, and capital structure enable
us to return more capital to our shareholders. Our dividend program
and continued stock repurchases demonstrate our commitment to
long-term shareholder value and confidence in the future of Old
Dominion.”
Under the new repurchase program, the Company may repurchase
shares from time to time in the open-market or through privately
negotiated transactions. The extent to which the Company
repurchases its shares and the timing of such repurchases will
depend upon market conditions and other corporate considerations,
as determined by the Company’s management team. The new repurchase
program does not obligate the Company to repurchase any number of
shares and may be suspended or discontinued at any time.
Forward-Looking Statements
Forward-looking statements in this news release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. We caution the reader that such
forward-looking statements involve risks and uncertainties that
could cause actual events and results to be materially different
from those expressed or implied herein, including, but not limited
to, the following: (1) the competitive environment with respect to
industry capacity and pricing, including the use of fuel
surcharges, which could negatively impact our total overall pricing
strategy and our ability to cover our operating expenses; (2) our
ability to collect fuel surcharges and the effectiveness of those
fuel surcharges in mitigating the impact of fluctuating prices for
diesel fuel and other petroleum-based products; (3) the negative
impact of any unionization, or the passage of legislation or
regulations that could facilitate unionization, of our employees;
(4) the challenges associated with executing our growth strategy,
including our ability to successfully consummate and integrate any
acquisitions; (5) changes in our goals and strategies, which are
subject to revision at any time at our discretion; (6) various
economic factors such as recessions, downturns in the economy,
global uncertainty and instability, changes in international trade
policies, changes in U.S. social, political, and regulatory
conditions or a disruption of financial markets, which may decrease
demand for our services or increase our costs; (7) the impact of
changes in tax laws, rates, guidance and interpretations, including
those related to certain provisions of the Tax Cuts and Jobs Act;
(8) increases in driver and maintenance technician compensation or
difficulties attracting and retaining qualified drivers and
maintenance technicians to meet freight demand; (9) our exposure to
claims related to cargo loss and damage, property damage, personal
injury, workers’ compensation, group health and group dental,
including increased premiums, adverse loss development, increased
self-insured retention or deductible levels and claims in excess of
insured coverage levels; (10) cost increases associated with
employee benefits, including costs associated with employee
healthcare plans; (11) the availability and cost of capital for our
significant ongoing cash requirements; (12) the availability and
cost of new equipment and replacement parts, including regulatory
changes and supply constraints that could impact the cost of these
assets; (13) decreases in demand for, and the value of, used
equipment; (14) the availability and cost of diesel fuel; (15) the
costs and potential liabilities related to compliance with, or
violations of, existing or future governmental laws and
regulations, including environmental laws, engine emissions
standards, hours-of-service for our drivers, driver fitness
requirements and new safety standards for drivers and equipment;
(16) the costs and potential liabilities related to various legal
proceedings and claims that have arisen in the ordinary course of
our business, some of which include class-action allegations; (17)
the costs and potential liabilities related to governmental
proceedings, inquiries, notices or investigations; (18) the costs
and potential liabilities related to our international business
relationships; (19) the costs and potential adverse impact of
compliance with, or violations of, current and future rules issued
by the Department of Transportation, the Federal Motor Carrier
Safety Administration (the “FMCSA”) and other regulatory agencies;
(20) the costs and potential adverse impact of compliance
associated with FMCSA’s electronic logging device (“ELD”)
regulations and guidance, including the transition of our fleet and
safety management systems from our legacy electronic automatic
on-board recording devices to a new ELD hardware and software
platform; (21) seasonal trends in the less-than-truckload industry,
including harsh weather conditions and disasters; (22) our ability
to retain our key employees and continue to effectively execute our
succession plan; (23) the concentration of our stock ownership with
the Congdon family; (24) the costs and potential adverse impact
associated with future changes in accounting standards or
practices; (25) potential costs and liabilities associated with
cyber incidents and other risks with respect to our systems and
networks or those of our third-party service providers, including
system failure, security breach, disruption by malware or
ransomware or other damage; (26) failure to comply with data
privacy, security or other laws and regulations; (27) failure to
keep pace with developments in technology, any disruption to our
technology infrastructure, or failures of essential services upon
which our technology platforms rely, which could cause us to incur
costs or result in a loss of business; (28) the costs and potential
adverse impact associated with transitional challenges in upgrading
or enhancing our technology systems; (29) damage to our reputation
through unfavorable perceptions or publicity, including those
related to environmental, social and governance issues,
cybersecurity and data privacy concerns; (30) the costs and
potential adverse impact of compliance with anti-terrorism measures
on our business; (31) dilution to existing shareholders caused by
any issuance of additional equity; (32) the impact of a quarterly
cash dividend or the failure to declare future cash dividends; (33)
recent and future volatility in the market value of our common
stock; (34) the impact of certain provisions in our articles of
incorporation, bylaws, and Virginia law that could discourage,
delay or prevent a change in control of us or a change in our
management; and (35) other risks and uncertainties described in our
most recent Annual Report on Form 10-K and other filings with the
SEC. Our forward-looking statements are based upon our beliefs and
assumptions using information available at the time the statements
are made. We caution the reader not to place undue reliance on our
forward-looking statements as (i) these statements are neither a
prediction nor a guarantee of future events or circumstances and
(ii) the assumptions, beliefs, expectations and projections about
future events may differ materially from actual results. We
undertake no obligation to publicly update any forward-looking
statement to reflect developments occurring after the statement is
made, except as otherwise required by law.
Old Dominion Freight Line, Inc. is a leading,
less-than-truckload (“LTL”), union-free motor carrier providing
regional, inter-regional and national LTL services through a single
integrated organization. Our service offerings, which include
expedited transportation, are provided through an expansive network
of service centers located throughout the continental United
States. Through strategic alliances, the Company also provides LTL
services throughout North America. In addition to its core LTL
services, the Company offers a range of value-added services
including container drayage, truckload brokerage and supply chain
consulting.
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Adam N. SatterfieldSenior Vice President, Finance andChief
Financial Officer(336) 822-5721
Old Dominion Freight Line (NASDAQ:ODFL)
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