Old Dominion Freight Line Inc. announced record financial results for the fourth quarter and year ended Dec. 31, 2005.
Fourth-quarter revenue from operations was $285.2 million, an increase of 27.3 percent
from $224.0 million for the fourth quarter of 2004. Net income increased 38.5 percent to $14.7 million from $10.6 million, and earnings per diluted share increased 39.3 percent to $0.39 for the fourth quarter of 2005 from $0.28 for the comparable prior-year quarter.
Old Dominion's operating ratio improved to 90.8 percent for the fourth quarter of 2005 from 91.4 percent for the fourth quarter of 2004. All prior-period share and per share data in this release have been adjusted to reflect the company's three-for-two stock split effective in November 2005.
Revenue from operations for 2005 increased 28.8 percent to $1.1 billion from $824.1 million for 2004. Net income rose 38.2 percent to $53.9 million from $39.0 million, while earnings per diluted share increased 36.8 percent to $1.45 from $1.06. The company's operating ratio improved to 90.8 percent for 2005 from 91.4 percent for 2004.
"Old Dominion's strong profitable growth for the fourth quarter of 2005 was consistent with the company's performance throughout a record-breaking year," said Earl E. Congdon, chairman and CEO of Old Dominion. "Our ability to provide a comprehensive, single-source solution for our customers' logistics needs has now produced 17 consecutive quarters of improvement in operating ratio and growth in net income of at least 30 percent, as well as our seventh consecutive quarter of revenue growth in excess of 20 percent. In addition, by producing annual revenue of more than $1 billion for the first time, we have reached a milestone in our expectation to exceed $2 billion in annual revenue within the next five years.
"Our primary focus remains on expanding market share within our existing network of service centers to maximize the incremental operating leverage that additional volumes generate. At the same time, we are experiencing success in new service center openings because of the volumes of freight that we can direct to these new facilities and territories. In this regard, during the fourth quarter we opened new service centers in Beaumont, Texas, and Lafayette, Louisiana. With these openings, we ended 2005 with 154 services centers in operation in 44 states, compared with 138 service centers in 40 states at the end of 2004.”