FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _________________ to _________.
Commission File Number: 0-19582
OLD DOMINION FREIGHT LINE, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 56-0751714
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1730 Westchester Drive
High Point, NC 27262
(Address of principal executive offices)
Telephone Number (336) 889-5000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
As of November 9, 2000, there were 8,312,840 shares of the registrant's
Common Stock ($.10 par value) outstanding.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ---------------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
(In thousands, except share and per share data) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------------------------------------------------------------------- -------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Revenue from operations $ 122,385 $ 108,527 $355,328 $314,068
Operating expenses:
Salaries, wages and benefits 72,048 65,247 210,558 190,569
Purchased transportation 4,989 3,677 14,644 10,323
Operating supplies and expenses 13,070 9,479 37,122 26,060
Depreciation and amortization 6,936 6,317 20,026 18,934
Building and office equipment rents 1,777 1,790 5,463 5,473
Operating taxes and licenses 4,725 4,387 14,129 13,291
Insurance and claims 3,134 2,796 9,016 7,742
Communications and utilities 2,199 1,774 6,440 5,482
General supplies and expenses 4,660 4,044 13,658 12,035
Miscellaneous expenses 587 1,159 2,674 3,111
--------------- -------------- ------------------- -------------------
Total operating expenses 114,125 100,670 333,730 293,020
--------------- -------------- ------------------- -------------------
Operating income 8,260 7,857 21,598 21,048
Other deductions:
Interest expense, net 1,273 1,087 3,205 3,177
Other (income) expense, net (50) (35) 39 206
--------------- -------------- ------------------- -------------------
Total other deductions 1,223 1,052 3,244 3,383
--------------- -------------- ------------------- -------------------
Income before income taxes 7,037 6,805 18,354 17,665
Provision for income taxes 2,744 2,586 7,158 6,713
--------------- -------------- ------------------- -------------------
Net income $ 4,293 $ 4,219 $ 11,196 $ 10,952
=============== ============== =================== ===================
Basic and diluted earnings per share: $ 0.52 $ 0.51 $ 1.35 $ 1.32
Weighted average shares outstanding:
Basic 8,312,840 8,312,595 8,312,840 8,312,329
Diluted 8,312,840 8,318,491 8,314,207 8,316,268
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
(In thousands, except share data) (Unaudited) (Audited)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 871 $ 781
Customer receivables, less allowances of $5,863
and $6,495, respectively 61,359 55,077
Other receivables 678 1,067
Tires on equipment 6,532 6,428
Prepaid expenses 6,345 10,631
Deferred income taxes 2,270 2,270
------------------ --------------------
Total current assets 78,055 76,254
Property and equipment:
Revenue equipment 198,416 178,301
Land and structures 85,816 68,972
Other equipment 36,840 31,557
Leasehold improvements 4,432 4,381
------------------ --------------------
Total property and equipment 325,504 283,211
Less accumulated depreciation and amortization (126,715) (116,249)
------------------ --------------------
Net property and equipment 198,789 166,962
Other assets 15,122 14,363
------------------ --------------------
Total assets $ 291,966 $ 257,579
================== ====================
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
(CONTINUED)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
(In thousands, except share data) (Unaudited) (Audited)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,993 $ 22,944
Compensation and benefits 13,904 11,352
Claims and insurance accruals 14,483 12,548
Other accrued liabilities 3,785 2,927
Income taxes payable 66 -
Current maturities of long-term debt 9,510 21,811
------------------ --------------------
Total current liabilities 61,741 71,582
Long-term debt 75,677 43,059
Other non-current liabilities 11,516 11,102
Deferred income taxes 20,798 20,798
------------------ --------------------
Total long-term liabilities 107,991 74,959
Stockholders' equity:
Common stock - $.10 par value, 25,000,000 shares
authorized, 8,312,840 outstanding 831 831
Capital in excess of par value 23,907 23,907
Retained earnings 97,496 86,300
------------------ --------------------
Total stockholders' equity 122,234 111,038
Commitments and contingencies - -
------------------ --------------------
Total liabilities and stockholders' equity $291,966 $ 257,579
================== ====================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended Sept. 30,
----------------------------------
2000 1999
(In thousands) (Unaudited) (Unaudited)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 11,196 $ 10,952
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 20,026 18,934
Deferred income taxes - 756
(Gain) loss on sale of property and equipment (112) 237
Changes in assets and liabilities:
Customer and other receivables, net (5,893) (4,819)
Tires on equipment (104) (27)
Prepaid expenses and other assets 3,209 3,884
Accounts payable (2,952) (5,512)
Compensation, benefits and other accrued liabilities 3,410 6,621
Claims and insurance accruals 2,048 1,241
Income taxes payable 66 30
Other liabilities 302 544
--------------- ---------------
Net cash provided by operating activities 31,196 32,841
--------------- ---------------
Cash flows from investing activities:
Acquisition of business assets, net - (1,100)
Purchase of property and equipment (52,734) (25,885)
Proceeds from sale of property and equipment 1,311 2,774
--------------- ---------------
Net cash used in investing activities (51,423) (24,211)
--------------- ---------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 1,626 -
Principal payments under long-term debt agreements (7,384) (6,536)
Net proceeds (payments) on revolving line of credit 26,075 (2,135)
--------------- ---------------
Net cash used in financing activities 20,317 (8,671)
--------------- ---------------
Increase (decrease) in cash and cash equivalents 90 (41)
Cash and cash equivalents at beginning of period 781 659
--------------- ---------------
Cash and cash equivalents at end of period $ 871 $ 618
=============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The accompanying consolidated interim financial statements have been prepared by
Old Dominion Freight Line, Inc. (the "Company"), in accordance with generally
accepted accounting principles for interim financial information and with
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain
information and footnote disclosures normally included for complete financial
statements, prepared in accordance with generally accepted accounting
principles, have been omitted pursuant to such rules and regulations. The
balance sheet at December 31, 1999 has been derived from the audited financial
statements at that date but does not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. The consolidated interim financial statements should be
read in conjunction with the financial statements, notes thereto and other
information included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1999.
The accompanying unaudited consolidated interim financial statements reflect, in
the opinion of management, all adjustments (consisting of normal recurring
items) necessary for a fair presentation, in all material respects, of the
financial position and results of operations for the periods presented. The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions.
Such estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The results of operations for the interim periods are not necessarily indicative
of the results for the entire year.
There have been no significant changes in the accounting policies of the
Company, or significant changes in the Company's commitments and contingencies
as previously described in the 1999 Annual Report to Stockholders and related
annual report to the Securities and Exchange Commission on Form 10-K.
EARNINGS PER SHARE
Net income per share of common stock is based on the weighted average number of
shares outstanding during each period.
SUBSEQUENT EVENTS
None
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations for the Three Months and Nine Months Ended September 30
2000, Compared to the Three Months and Nine Months Ended September 30, 1999
Expenses as a Percentage of Revenue from Operations
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------- ----------------------------------
2000 1999 2000 1999
-------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
Revenue from operations 100.0% 100.0% 100.0% 100.0%
-------------- -------------- --------------- --------------
Operating expenses:
Salaries, wages and benefits 58.9 60.1 59.3 60.7
Purchased transportation 4.1 3.4 4.1 3.3
Operating supplies and expenses 10.7 8.7 10.5 8.3
Depreciation and amortization 5.7 5.8 5.6 6.0
Building and office equipment rents 1.4 1.7 1.5 1.8
Operating taxes and licenses 3.8 4.1 4.0 4.2
Insurance and claims 2.6 2.6 2.5 2.5
Communications and utilities 1.8 1.6 1.8 1.7
General supplies and expenses 3.8 3.7 3.8 3.8
Miscellaneous expenses .5 1.1 .8 1.0
-------------- -------------- --------------- --------------
Total operating expenses 93.3 92.8 93.9 93.3
-------------- -------------- --------------- --------------
Operating income 6.7 7.2 6.1 6.7
Interest expense, net 1.0 1.0 .9 1.0
Other expense, net - (.1) - 0.1
-------------- -------------- --------------- --------------
Income before income taxes 5.7 6.3 5.2 5.6
Provision for income taxes 2.2 2.4 2.0 2.1
-------------- -------------- --------------- --------------
Net income 3.5% 3.9% 3.2% 3.5%
============== ============== =============== ==============
</TABLE>
7
<PAGE>
RESULTS OF OPERATIONS
Three Months Ended September 30, 2000 Compared to Three Months Ended
September 30, 1999
Net revenue for the third quarter 2000 was $122,385,000, an increase of 12.8%
from $108,527,000 for the third quarter 1999. This growth in revenue for the
third quarter was consistent with the Company's objective to increase revenue
10% to 15% for the year and was primarily a result of three major factors: 1)
the Company's consistent focus on increasing market share in its existing areas
of operation; 2) improvements in products and pricing; and 3) the impact of a
fuel surcharge.
The Company's strategy to improve market share and freight density within
existing lanes of service is designed to produce revenue growth objectives with
minimal capital investment and improved asset utilization. In early 2000, the
Company expanded its service products to provide full-state coverage to 21
states east of the Mississippi. Only one new service center, Charleston, West
Virginia, was opened in order to provide this additional service enhancement. In
addition to this expansion, the Company opened a new service center in Oklahoma
City, Oklahoma, on November 1, 2000. While the Company serves the six
surrounding states, this opening will improve regional and inter-regional
service capabilities and expands the Company's physical presence into its 35th
state of operations.
On September 1, 2000, the Company implemented a general increase on its public
tariffs, which comprise approximately 50% of its net revenue. Pricing on the
remaining revenue base is generally renegotiated as those private contracts
expire. The Company has ongoing processes to identify marginal or unprofitable
business through its freight costing systems and works with its customers to
improve those rates that cannot be rationalized. The Company has also
experienced growth in its new guaranteed and expedited service product, Speed
Service, which it initiated at the beginning of 2000. Speed Service is
anticipated to grow significantly as more customers demand service sensitive and
customized delivery services.
In response to the rising costs of petroleum products, particularly diesel fuel,
the Company implemented a fuel surcharge on its tariffs in August 1999.
Generally, this surcharge is designed to offset the cost of fuel above a base
price and increases as fuel increases over the base. The fuel surcharge
accounted for approximately 3.6% of net revenue for the third quarter 2000 while
accounting for approximately .4% of revenue for the third quarter 1999.
For the quarter, less-than-truckload ("LTL") shipments increased 4.1% over the
prior year comparable quarter and LTL revenue per LTL shipment increased 7.0% to
$136.61 from $127.67 for the third quarter 1999. The increase in revenue per
shipment was a result of an 8.6% increase in LTL revenue per LTL hundredweight
to $12.83 from $11.81 and a 1.5% decrease in LTL weight per shipment to 1,065
lbs. from 1,081 lbs. In addition, the Company's average length of haul increased
3.4% to 873 miles from 844 miles, which generally increases both LTL revenue per
hundredweight and LTL revenue per shipment.
The operating ratio (operating expenses as a percentage of revenue) increased to
93.3% in the third quarter of 2000 from 92.8% in the third quarter 1999. This
increase in the Company's operating costs reflects the impact of increased
purchased transportation expenses to 4.1% of revenue from 3.4% for the
prior-year quarter. Cartage expense, or outsourced pickup and delivery services,
increased to 1.9% of revenue from 1.3% as a result of two factors. First, the
implementation of full-state coverage in 21 states requires the Company to
service certain remote locations that occasionally can be serviced more cost
effectively by agent partners who have more operating density in those areas. As
market share builds, Company personnel and equipment will replace these
expenditures. Second, growth in certain markets has exceeded the Company's
operating capacity and outsourcing of pickup and delivery services are used to
ensure service standards are maintained during the peak shipping periods common
to the third quarter of each year. The Company is addressing these situations by
either constructing new facilities or leasing larger facilities to accommodate
this growth. For 2000, the Company has budgeted approximately $27,000,000 to be
used to construct or expand service center facilities.
The Company's strategy to grow existing markets has resulted in improvements in
asset utilization, which were reflected in decreases in certain fixed costs as a
percent of revenue when compared to the prior-year quarter. Building and office
equipment rents decreased to 1.4% from 1.7%, operating taxes and
8
<PAGE>
licenses decreased to 3.8% from 4.1% and depreciation and amortization
decreased to 5.7% of revenue from 5.8%
Net interest expense remained constant at 1.0% for both comparable periods.
While outstanding debt increased $23,269,000 from the end of the third quarter
1999, a significant portion of the resulting increased interest costs in the
third quarter 2000 were capitalized as those borrowings funded construction
projects to expand the capacity of service center facilities.
Net income for the third quarter 2000 was $4,293,000, a 3.9% increase from
$4,219,000 for the prior-year period. The effective tax rate was 39.0% and 38.0%
for the third quarters of 2000 and 1999, respectively.
Nine Months Ended September 30, 2000, Compared to Nine Months Ended
September 30, 1999
Net revenue for the nine months ended September 30, 2000, was $355,328,000, an
increase of 13.1%, compared to $314,068,000 for the same period of 1999. LTL
tonnage increased 4.6% due to a 6.2% increase in LTL shipments, which was
partially offset by a 1.4% decrease in LTL weight per shipment. These increases
in revenue and tonnage have been consistent with the Company's growth strategy
to increase market share in its existing geographic area of operations and
service center network. This growth strategy was complemented in 2000 with the
implementation of full-state coverage in 21 states east of the Mississippi
River. In addition, the Company added its new guaranteed and customized service
product, Speed Service, in early 2000, which is expected to grow significantly
as customers discover additional value in the time definite and customized
service capabilities the Company offers.
Average revenue per LTL shipment for the first nine months of 2000 increased
7.1% to $134.85 from $125.96 for the comparable period of 1999. This increase
was due to a 8.6% increase in LTL revenue per hundredweight to $12.70 from
$11.69 and a 1.4% decrease in LTL weight per shipment. The increase in LTL
revenue per shipment includes the impact of a fuel surcharge, which was
implemented to offset the high cost of fuel. For the first nine months of 2000,
the Company's average price for a gallon of diesel fuel increased approximately
68% over the average price paid in the first nine months of 1999. In addition,
the Company also incurred direct increases in other petroleum-related products
such as gasoline, oil, propane and lubricants. Indirectly, the rising cost of
fuel increased prices of other products and services that the Company uses in
its normal course of business. The fuel surcharge accounted for approximately
3.1% of revenue for the first half of 2000, while accounting for approximately
.1% for the comparable period of 1999.
The operating ratio for the first nine months of 2000 was 93.9% compared with
93.3% for the first nine months of 1999. The increase in operating costs were
primarily the result of the increased use of outside purchased transportation
during the period and severe winter weather that hampered operating efficiencies
and productivity in the first quarter 2000.
The increase in purchased transportation was a result an increase in cartage
expense, which is the outsourcing of pickup and delivery services. Cartage
expense through the third quarter of 2000 increased to 1.9% of revenue from 1.2%
for the prior-year period and occurred primarily due to two factors.
First, the Company's implementation of full-state coverage for 21 states in
early 2000 required the Company to serve certain remote locations where it was
initially more economical to use outside pickup and delivery services through
partner agents. As the Company builds these markets, the use of these agents
will diminish and be replaced by Company labor and equipment.
Second, rapid growth in certain markets has exceeded capacity and the Company
has used cartage agents to supplement its operations until larger service center
facilities could be constructed or leased. The 2000 capital budget includes
approximately $27,000,000 for the purchase or expansion of service center
facilities to improve the Company's operating infrastructure, service products
and operating efficiencies. To some extent, the use of outside agents caused
Company salary, wages and benefits to decrease to 59.3% of revenue from 60.7%.
By concentrating growth in existing markets, the Company was successful in
improving its utilization of facilities and equipment. Depreciation and
amortization decreased to 5.6% of revenue from 6.0%,
9
<PAGE>
building and office equipment rents decreased to 1.5% from 1.8%, and
operating taxes and licenses decreased to 4.0% from 4.2%.
Net interest expense was .9% of revenue for the first nine months of 2000
compared to 1.0% for the comparable period of 1999. This slight decrease was
primarily due to the capitalization of $663,000 in interest costs relating to
construction projects in the first nine months of 2000.
Net income was $11,196,000 for the nine months ended September 30, 2000, an
increase of 2.2%, compared to $10,952,000 for the same nine-month period the
previous year. The effective tax rate was 39.0% and 38.0% for the third quarters
of 2000 and 1999, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Continued investment in property and equipment has resulted from expansion in
the size and number of service center facilities, the planned tractor and
trailer replacement cycle and revenue growth. In order to support these
requirements, the Company has incurred net capital expenditures of $51,423,000
for the first nine months of 2000. Cash flows generated internally funded 60.7%
of these capital expenditures through the third quarter, the remainder of which
was funded with additional borrowings. At September 30, 2000, long-term debt
including current maturities increased to $85,187,000 from $64,870,000 at
December 31, 1999.
The Company estimates net capital expenditures to be approximately $64,000,000
to $68,000,000 for the year ending December 31, 2000. Of that, approximately
$27,000,000 is allocated for purchases of real estate, $29,000,000 is allocated
for purchases of revenue equipment, $6,000,000 is allocated for enhancements to
information systems and the remaining balance is allocated for purchases of
other assets. The Company plans to fund these expenditures through cash flows
from operations supplemented by additional borrowings.
During 1999 and early 2000, the Company maintained a $32,500,000
uncollateralized credit facility that consisted of a $17,500,000 line of credit
commitment and a $15,000,000 standby letter of credit commitment. Interest on
the line of credit was charged at rates that varied based upon a certain
financial performance ratio and the stated period of time that the borrowings
were outstanding. On January 14, 2000, the Company amended this credit facility
to consist of a $22,000,000 line of credit commitment and a $12,500,000 standby
letter of credit commitment under the same terms and conditions as the previous
agreement. The applicable interest rate for the second quarter of 2000 under
this amended agreement was based upon LIBOR plus .60% for periods of 30-180 days
and prime minus 1% for periods less than 30 days. A fee of .20% was charged on
the unused portion of the line of credit and letter of credit facility and a fee
of .60% to .75% was charged on outstanding letters of credit.
On May 30, 2000, the Company terminated its existing credit agreement and
entered into a new three-year agreement, which provides for a $62,500,000
uncollateralized credit facility that consists of a $50,000,000 line of credit
commitment and a $12,500,000 standby letter of credit commitment. Interest on
the line of credit is charged at rates that vary based upon a fixed charge
coverage ratio, which was LIBOR plus .70% for the third quarter 2000. Fees,
which also vary based upon the fixed charge coverage ratio, are charged on the
unused portion of the line of credit facility and outstanding standby letters of
credit. During the third quarter 2000, a fee of .20% was charged on the unused
portion of the line of credit and fees ranging between .60% to .75% were charged
on outstanding letters of credit. No fee is charged for the unused portion of
the standby letter of credit facility.
At September 30, 2000, there were $37,650,000 outstanding borrowings on the line
of credit and $7,885,000 outstanding on the standby letter of credit facility.
Letters of credit are primarily issued as collateral for self-insured reserves
for bodily injury, property damage and workers' compensation claims. The Company
believes that it has sufficient credit lines and capacity to meet seasonal and
long-term financial needs.
The Company's exposure to changes in interest rates is limited to its
outstanding balance of its credit facility, which represents 44.2% of its total
long-term debt. The Company does not currently use interest rate derivative
instruments to manage exposure to interest rate changes. Also, the Company is
not
10
<PAGE>
currently using any fuel hedging instruments as its tariff provisions
generally allow for fuel surcharges to be implemented in the event that fuel
prices exceed stipulated levels.
INFLATION
Most of the Company's expenses are affected by inflation, which will generally
result in increased costs. For the quarter ending September 30, 2000, the effect
of inflation on the Company's results of operations was minimal.
SEASONALITY
The Company's operations are subject to seasonal trends common in the motor
carrier industry. Operating results in the first and fourth quarters are
normally lower due to reduced shipments during the winter months. Harsh winter
weather can also adversely impact the Company's performance by reducing demand
and increasing operating expenses. The second and third quarters are stronger
due to increased demand for services during the spring and summer months.
ENVIRONMENTAL
The Company is subject to federal, state and local environmental laws and
regulations, particularly relative to underground storage tanks. The Company
believes it is in compliance with applicable environmental laws and regulations,
including those relating to underground storage tanks, and does not believe that
the cost of future compliance will have a material adverse effect on the
Company's operations or financial condition.
FORWARD-LOOKING INFORMATION
Forward-looking statements in this report, including, without limitation,
statements relating to future events or the future financial performance of the
Company appear in the preceding Management's Discussion and Analysis of
Financial Condition and Results of Operations and in other written and oral
statements made by or on behalf of the Company, including, without limitation,
statements relating to the Company's goals, strategies, expectations,
competitive environment, regulation and availability of resources. Such
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Investors are cautioned
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) changes in
the Company's goals, strategies and expectations, which are subject to change at
any time at the discretion of the Company; (2) the Company's ability to maintain
a nonunion, qualified work force; (3) the competitive environment with respect
to industry capacity and pricing; (4) the availability and cost of fuel,
additional revenue equipment and other significant resources; (5) the impact of
regulatory bodies; (6) various economic factors such as insurance costs,
liability claims, interest rate fluctuations, the availability of qualified
drivers or owner-operators, fluctuations in the resale value of revenue
equipment, increases in fuel or energy taxes, economic recessions and downturns
in customers' business cycles and shipping requirements; (7) the Company's
inability to raise capital or borrow funds on satisfactory terms, which could
limit growth and require the Company to operate its revenue equipment for longer
periods of time; (8) the Company's ability to purchase, build or lease
facilities suitable for its operations; and (9) other risks and uncertainties
indicated from time to time in the Company's filings with the Securities and
Exchange Commission.
Item 3. Quantitative and Qualitative Disclosure of Market Risk
The information called for by this item is provided under the caption "Liquidity
and Capital Resources" under Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations.
11
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PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits:
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
b) Reports on Form 8-K: No reports on Form 8-K were filed during the
quarter ended September 30, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OLD DOMINION FREIGHT LINE, INC.
DATE: NOVEMBER 9, 2000 J. WES FRYE
------------------------------- -----------
J. Wes Frye
Senior Vice President - Finance
(Principal Financial Officer)
DATE: NOVEMBER 9, 2000 JOHN P. BOOKER III
------------------------------- ------------------
John P. Booker III
Vice President - Controller
(Principal Accounting Officer)
12
