Old Dominion Freight Line Inc. announced on Monday its board of directors has approved a stock repurchase program authorizing the North Carolina-based trucking company to repurchase up to $200 million of its outstanding common stock over the next 24 months.
Under the program ODFL may repurchase shares from time to time in open-market purchases or through privately negotiated transactions, according to a news release. The extent to which the company will repurchase its shares and the timing will depend upon market conditions and corporate considerations determined by ODFL’s management team. The repurchase program does not obligate the company to repurchase any number of shares and may be suspended or discontinued at any time.
“Our management team and board of directors believe that Old Dominion is well-positioned to achieve further profitable growth while also generating significant cash flow from operations,” said David S. Congdon, president and CEO. “As a result, we expect our financial position to continue to improve despite the significant capital expenditures that may be necessary to continue to grow our business. We believe that the combination of our long-term growth opportunities and the financial strength required to initiate this stock repurchase program further demonstrates our ability to increase shareholder value.”
The news follows ODFL announcing record earnings and revenue during the third quarter of the year while its stock has been trading at or near a 52-week high.
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