Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 6-May-15 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | OLD DOMINION FREIGHT LINE INC/VA | |
Entity Central Index Key | 878927 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ODFL | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 85,765,071 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $113,038 | $34,787 |
Customer receivables, less allowances of $9,738 and $9,069, respectively | 317,705 | 303,170 |
Other receivables | 7,445 | 44,730 |
Prepaid expenses | 28,711 | 21,085 |
Deferred income taxes | 32,994 | 29,371 |
Total current assets | 499,893 | 433,143 |
Property and equipment: | ||
Revenue equipment | 1,190,899 | 1,158,108 |
Land and structures | 1,109,731 | 1,088,372 |
Other fixed assets | 335,706 | 321,310 |
Leasehold improvements | 6,326 | 6,982 |
Total property and equipment | 2,642,662 | 2,574,772 |
Accumulated depreciation | -864,191 | -831,527 |
Net property and equipment | 1,778,471 | 1,743,245 |
Goodwill | 19,463 | 19,463 |
Other assets | 42,557 | 40,386 |
Total assets | 2,340,384 | 2,236,237 |
Current liabilities: | ||
Accounts payable | 48,955 | 45,314 |
Compensation and benefits | 125,619 | 106,200 |
Claims and insurance accruals | 43,964 | 42,271 |
Other accrued liabilities | 27,250 | 26,139 |
Income taxes payable | 47,938 | 0 |
Current maturities of long-term debt | 27,956 | 35,714 |
Total current liabilities | 321,682 | 255,638 |
Long-term liabilities: | ||
Long-term debt | 120,596 | 120,000 |
Other non-current liabilities | 149,228 | 145,752 |
Deferred income taxes | 205,617 | 220,783 |
Total long-term liabilities | 475,441 | 486,535 |
Total liabilities | 797,123 | 742,173 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Common stock - $0.10 par value, 140,000,000 shares authorized, 85,913,659 and 86,094,297 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 8,591 | 8,609 |
Capital in excess of par value | 134,401 | 134,401 |
Retained earnings | 1,400,269 | 1,351,054 |
Total shareholders' equity | 1,543,261 | 1,494,064 |
Total liabilities and shareholders' equity | $2,340,384 | $2,236,237 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Customer receivables, allowances | $9,738 | $9,069 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 85,913,659 | 86,094,297 |
Condensed_Statements_Of_Operat
Condensed Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue from operations | $696,245 | $620,276 |
Operating expenses: | ||
Salaries, wages and benefits | 368,442 | 311,181 |
Operating supplies and expenses | 88,049 | 106,294 |
General supplies and expenses | 21,292 | 19,135 |
Operating taxes and licenses | 22,274 | 19,050 |
Insurance and claims | 10,042 | 7,973 |
Communications and utilities | 6,775 | 6,734 |
Depreciation and amortization | 38,788 | 34,092 |
Purchased transportation | 30,148 | 29,136 |
Building and office equipment rents | 2,278 | 2,506 |
Miscellaneous expenses, net | 4,592 | 4,123 |
Total operating expenses | 592,680 | 540,224 |
Operating income | 103,565 | 80,052 |
Non-operating expense (income): | ||
Interest expense | 1,569 | 2,076 |
Interest income | -71 | -33 |
Other expense (income), net | 237 | 775 |
Total non-operating expense | 1,735 | 2,818 |
Income before income taxes | 101,830 | 77,234 |
Provision for income taxes | 39,306 | 31,347 |
Net income | $62,524 | $45,887 |
Earnings per share: | ||
Basic | $0.73 | $0.53 |
Diluted | $0.73 | $0.53 |
Weighted average shares outstanding: | ||
Basic | 85,970,829 | 86,164,917 |
Diluted | 85,970,829 | 86,164,917 |
Condensed_Statements_Of_Cash_F
Condensed Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $62,524 | $45,887 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,788 | 34,092 |
(Gain) loss on sale of property and equipment | -33 | 848 |
Deferred income taxes | -18,789 | -1,702 |
Other operating activities, net | 90,104 | 20,443 |
Net cash provided by operating activities | 172,594 | 99,568 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -72,153 | -79,818 |
Proceeds from sale of property and equipment | 1,851 | 2,035 |
Net cash used in investing activities | -70,302 | -77,783 |
Cash flows from financing activities: | ||
Principal payments under long-term debt agreements | -10,714 | -10,715 |
Payments for share repurchases | -13,327 | 0 |
Net cash provided by (used in) financing activities | -24,041 | -10,715 |
(Decrease) increase in cash and cash equivalents | 78,251 | 11,070 |
Cash and cash equivalents at beginning of period | 34,787 | 30,174 |
Cash and cash equivalents at end of period | $113,038 | $41,244 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Significant Accounting Policies | Note 1. Significant Accounting Policies | |||||||
Basis of Presentation | ||||||||
The accompanying unaudited, interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and, in management’s opinion, contain 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. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. | ||||||||
The preparation of condensed financial statements in accordance with U.S. GAAP 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 condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Our operating results are subject to seasonal trends; therefore, the results of operations for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for subsequent quarterly periods or the year ending December 31, 2015. | ||||||||
The condensed financial statements should be read in conjunction with the financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the accounting principles and policies, long-term contracts or estimates inherent in the preparation of the condensed financial statements of Old Dominion Freight Line, Inc. as previously described in our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. | ||||||||
Fair Values of Financial Instruments | ||||||||
The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt, including current maturities, and capital lease obligations was $148.6 million and $155.7 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value of our total long-term debt and capital lease obligations was $156.9 million and $165.5 million at March 31, 2015 and December 31, 2014, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). | ||||||||
Earnings Per Share | ||||||||
Earnings per share is computed using the weighted average number of common shares outstanding during the period. | ||||||||
Stock Repurchase Program | ||||||||
On November 10, 2014, we announced that our Board of Directors had approved a stock repurchase program authorizing us to repurchase up to an aggregate of $200.0 million of our outstanding common stock. We may repurchase shares from time-to-time in open market purchases or through privately negotiated transactions. The program expires on November 6, 2016. Shares of our common stock repurchased by us under the repurchase program are canceled at the time of repurchase and are authorized but unissued shares of our common stock. During the three months ended March 31, 2015, we repurchased 180,638 shares for $13.3 million. As of March 31, 2015, we had repurchased a total of 251,258 shares for $18.9 million, and $181.1 million remained authorized under the program. | ||||||||
Supplemental Disclosure of Noncash Investing and Financing Activities | ||||||||
Investing and financing activities that are not reported in the Statements of Cash Flows due to their non-cash nature are summarized below: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Acquisition of property and equipment by capital lease | $ | 3,552 | $ | — | ||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Note 2. Long-Term Debt | |||||||
Long-term debt consisted of the following: | ||||||||
(In thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Senior notes | $ | 145,000 | $ | 155,714 | ||||
Revolving credit facility | — | — | ||||||
Capitalized leases and other obligations | 3,552 | — | ||||||
Total long-term debt and capital lease obligations | 148,552 | 155,714 | ||||||
Less: Current maturities | (27,956 | ) | (35,714 | ) | ||||
Total maturities due after one year | $ | 120,596 | $ | 120,000 | ||||
We have two outstanding unsecured senior note agreements with an aggregate amount outstanding of $145.0 million at March 31, 2015. At December 31, 2014, we had three outstanding unsecured senior note agreements with an aggregate amount outstanding of $155.7 million. Our two remaining unsecured senior note agreements call for periodic principal payments with maturities that range from 2016 to 2021, of which $25.0 million is due in the next twelve months. Interest rates on these notes are fixed and range from 4.00% to 5.85%. The weighted average interest rate on our outstanding senior note agreements was 4.88% and 4.87% at March 31, 2015 and December 31, 2014, respectively. | ||||||||
We have a five-year, $200.0 million senior unsecured revolving credit facility pursuant to the terms of a second amended and restated credit agreement dated August 10, 2011, as amended on November 7, 2014 (the “Credit Agreement”), with Wells Fargo Bank, National Association (“Wells Fargo”) serving as administrative agent for the lenders. Of the $200.0 million line of credit commitments, $150.0 million may be used for letters of credit and $20.0 million may be used for borrowings under the Wells Fargo Sweep Plus Loan Program. We utilize the sweep program to manage our daily cash needs, as the sweep program automatically initiates borrowings to cover overnight cash requirements up to an aggregate of $20.0 million. In addition, we have the right to request an increase in our existing line of credit commitments by an additional $100.0 million in minimum increments of $25.0 million. At our option, revolving loans under the facility bear interest at either: (a) the Applicable Margin Percentage for Base Rate Loans plus the higher of Wells Fargo’s prime rate, the federal funds rate plus 0.5% per annum, or the one month LIBOR Rate plus 1.0% per annum; (b) the LIBOR Rate plus the Applicable Margin Percentage for LIBOR Loans; or (c) the LIBOR Market Index Rate (“LIBOR Index Rate”) plus the Applicable Margin Percentage for LIBOR Market Index Loans. The Applicable Margin Percentage is determined by a pricing grid in the Credit Agreement and ranges from 1.0% to 1.875% based upon the ratio of debt to total capitalization. The Applicable Margin Percentage remained at 1.0% during each of the three months ended March 31, 2015 and 2014. Revolving loans under the sweep program bear interest at the LIBOR Index Rate. There were $68.1 million and $63.2 million of outstanding letters of credit at March 31, 2015 and December 31, 2014, respectively. | ||||||||
Capital lease obligations are collateralized by property and equipment with a book value of $3.6 million. |
Income_Taxes_Income_Taxes
Income Taxes Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3. Income Taxes |
Our effective tax rate generally exceeds the federal statutory rate of 35% due to the impact of state taxes and, to a lesser extent, certain other non-deductible items. For the three months ended March 31, 2015, our effective tax rate was 38.6% as compared to 40.6% for the same period in 2014. Our effective tax rate for the three months ended March 31, 2014 was impacted by higher state taxes and other discrete tax adjustments. |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 4. Commitments and Contingencies |
We are involved in various legal proceedings and claims that have arisen in the ordinary course of our business and have not been fully adjudicated, some of which are covered in whole or in part by insurance. Certain of these claims include class-action allegations. We do not believe that the resolution of any of these legal proceedings or claims will have a material adverse effect upon our financial position, results of operations or cash flows. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation |
The accompanying unaudited, interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and, in management’s opinion, contain 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. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. | |
The preparation of condensed financial statements in accordance with U.S. GAAP 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 condensed financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Our operating results are subject to seasonal trends; therefore, the results of operations for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for subsequent quarterly periods or the year ending December 31, 2015. | |
The condensed financial statements should be read in conjunction with the financial statements and related notes, which appear in our Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the accounting principles and policies, long-term contracts or estimates inherent in the preparation of the condensed financial statements of Old Dominion Freight Line, Inc. as previously described in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Unless the context requires otherwise, references in these Notes to “Old Dominion,” the “Company,” “we,” “us” and “our” refer to Old Dominion Freight Line, Inc. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments |
The carrying values of financial instruments in current assets and current liabilities approximate their fair value due to the short maturities of these instruments. The carrying value of our total long-term debt, including current maturities, and capital lease obligations was $148.6 million and $155.7 million at March 31, 2015 and December 31, 2014, respectively. The estimated fair value of our total long-term debt and capital lease obligations was $156.9 million and $165.5 million at March 31, 2015 and December 31, 2014, respectively. The fair value measurement of our senior notes was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under our credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2 under the three-level fair value hierarchy as established by the Financial Accounting Standards Board (the “FASB”). | |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share |
Earnings per share is computed using the weighted average number of common shares outstanding during the period. | |
Stockholders' Equity, Policy [Policy Text Block] | Stock Repurchase Program |
On November 10, 2014, we announced that our Board of Directors had approved a stock repurchase program authorizing us to repurchase up to an aggregate of $200.0 million of our outstanding common stock. We may repurchase shares from time-to-time in open market purchases or through privately negotiated transactions. The program expires on November 6, 2016. Shares of our common stock repurchased by us under the repurchase program are canceled at the time of repurchase and are authorized but unissued shares of our common stock. During the three months ended March 31, 2015, we repurchased 180,638 shares for $13.3 million. As of March 31, 2015, we had repurchased a total of 251,258 shares for $18.9 million, and $181.1 million remained authorized under the program. |
Significant_Accounting_Policie2
Significant Accounting Policies Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Investing and financing activities that are not reported in the Statements of Cash Flows due to their non-cash nature are summarized below: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Acquisition of property and equipment by capital lease | $ | 3,552 | $ | — | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule Of Long-Term Debt | Long-term debt consisted of the following: | |||||||
(In thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Senior notes | $ | 145,000 | $ | 155,714 | ||||
Revolving credit facility | — | — | ||||||
Capitalized leases and other obligations | 3,552 | — | ||||||
Total long-term debt and capital lease obligations | 148,552 | 155,714 | ||||||
Less: Current maturities | (27,956 | ) | (35,714 | ) | ||||
Total maturities due after one year | $ | 120,596 | $ | 120,000 | ||||
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Debt and Capital Lease Obligations | $148,552,000 | $155,714,000 |
Long-term Debt, Fair Value | 156,900,000 | 165,500,000 |
Stock Repurchase Program, Authorized Amount | 200,000,000 | |
Stock Repurchased and Retired During Period, Shares | 180,638 | |
Stock Repurchased and Retired During Period, Value | 13,300,000 | |
Total Stock Repurchased And Retired Shares | 251,258 | |
Total Stock Repurchased And Retired Value | 18,900,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $181,100,000 |
Significant_Accounting_Policie4
Significant Accounting Policies Significant Accounting Policies (Supplemental Schedule of Non-Cash Activities) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $3,552 | $0 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Senior Notes | $145,000,000 | $155,714,000 | |
Line of Credit Facility, Amount Outstanding | 0 | 0 | |
Debt Instrument, Collateral Amount | 3,600,000 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Amount Outstanding | 68,100,000 | 63,200,000 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Periodic principal payments | 25,000,000 | ||
Fixed interest rate, minimum | 4.00% | ||
Fixed interest rate, maximum | 5.85% | ||
Effective average interest rate | 4.88% | 4.87% | |
Sweep Program [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 20,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | 200,000,000 | ||
Line Of Credit, Additional Capacity | 100,000,000 | ||
Minimum increments under the additional borrowings | 25,000,000 | ||
Interest Rate Spread added to Rate | 1.00% | 1.00% | |
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Spread added to Rate | 1.88% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Spread added to Rate | 1.00% | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $150,000,000 | ||
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Spread added to Rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Spread added to Rate | 1.00% |
LongTerm_Debt_Schedule_Of_Long
Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Senior notes | $145,000 | $155,714 |
Revolving credit facility | 0 | 0 |
Capital Lease Obligations | 3,552 | 0 |
Total long-term debt | 148,552 | 155,714 |
Less: Current maturities | -27,956 | -35,714 |
Total maturities due after one year | $120,596 | $120,000 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Tax provision at the 35% statutory rate | 35.00% | 35.00% |
Effective tax rate | 38.60% | 40.60% |