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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 June 30, 2002
 
¨  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
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
500 Old Dominion Way
Thomasville, NC 27360
(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 August 9, 2002, there were 8,317,940 shares of the registrant’s Common Stock ($.10 par value) outstanding.
 

PART I.    FINANCIAL INFORMATION
 
ITEM 1.    FINANCIAL STATEMENTS
 
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 
    
Three Months Ended
     
Six Months Ended
  
    
June 30,
2002
   
June 30,
2001
     
June 30,
2002
   
June 30,
2001
  
(In thousands, except share and per share data)
   
(Unaudited)
   
(Unaudited)
     
(Unaudited)
   
(Unaudited)
  
Revenue from operations
   
$
139,669
   
$
128,605
 
   
$
266,816
   
$
248,875
 
Operating expenses:
                                
Salaries, wages and benefits
   
 
83,830
   
 
77,917
 
   
 
162,591
   
 
152,024
 
Purchased transportation
   
 
4,504
   
 
4,959
 
   
 
8,840
   
 
9,561
 
Operating supplies and expenses
   
 
13,694
   
 
13,560
 
   
 
25,559
   
 
26,262
 
Depreciation and amortization
   
 
7,741
   
 
7,521
 
   
 
15,195
   
 
14,809
 
Building and office equipment rents
   
 
1,904
   
 
1,847
 
   
 
3,719
   
 
3,815
 
Operating taxes and licenses
   
 
5,709
   
 
5,204
 
   
 
11,154
   
 
10,437
 
Insurance and claims
   
 
4,257
   
 
3,435
 
   
 
8,218
   
 
6,306
 
Communications and utilities
   
 
2,708
   
 
2,308
 
   
 
5,110
   
 
4,877
 
General supplies and expenses
   
 
5,256
   
 
4,602
 
   
 
10,013
   
 
8,759
 
Miscellaneous expenses, net
   
 
1,388
   
 
1,215
 
   
 
2,659
   
 
2,783
 
    
  
  
  
Total operating expenses
   
 
130,991
   
 
122,568
 
   
 
253,058
   
 
239,633
 
    
  
  
  
Operating income
   
 
8,678
   
 
6,037
 
   
 
13,758
   
 
9,242
 
Other deductions:
                                
Interest expense, net
   
 
1,459
   
 
1,532
 
   
 
2,780
   
 
3,026
 
Other expense (income), net
   
 
70
   
 
(572
)
   
 
153
   
 
(502
)
    
  
  
  
Total other deductions
   
 
1,529
   
 
960
 
   
 
2,933
   
 
2,524
 
    
  
  
  
Income before income taxes
   
 
7,149
   
 
5,077
 
   
 
10,825
   
 
6,718
 
Provision for income taxes
   
 
2,788
   
 
1,980
 
   
 
4,222
   
 
2,620
 
    
  
  
  
Net income
   
$
4,361
   
$
3,097
 
   
$
6,603
   
$
4,098
 
    
  
  
  
Basic and diluted earnings per share:
   
$
0.52
   
$
0.37
 
   
$
0.79
   
$
0.49
 
Weighted average shares outstanding:
                                
Basic
   
 
8,316,674
   
 
8,312,840
 
   
 
8,314,904
   
 
8,312,840
 
Diluted
   
 
8,321,377
   
 
8,313,491
 
   
 
8,319,602
   
 
8,313,166
 
 
The accompanying notes are an integral part of these financial statements.

2

OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
 
    
June 30,
2002
     
December 31,
2001
  
(In thousands, except share data)
   
(Unaudited)
     
(Audited)
  
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   
$
1,075
 
   
$
761
 
Customer receivables, less allowances of $6,671 and $6,816, respectively
   
 
63,676
 
   
 
51,061
 
Other receivables
   
 
684
 
   
 
1,097
 
Tires on equipment
   
 
7,853
 
   
 
7,346
 
Prepaid expenses
   
 
6,105
 
   
 
12,728
 
Deferred income taxes
   
 
873
 
   
 
873
 
    
  
Total current assets
   
 
80,266
 
   
 
73,866
 
Property and equipment:
                  
Revenue equipment
   
 
218,590
 
   
 
204,416
 
Land and structures
   
 
127,016
 
   
 
117,570
 
Other equipment
   
 
48,855
 
   
 
42,851
 
Leasehold improvements
   
 
4,732
 
   
 
4,679
 
    
  
Total property and equipment
   
 
399,193
 
   
 
369,516
 
Less accumulated depreciation and amortization
   
 
(163,490
)
   
 
(151,333
)
    
  
Net property and equipment
   
 
235,703
 
   
 
218,183
 
Other assets
   
 
18,997
 
   
 
18,791
 
    
  
Total assets
   
$
334,966
 
   
$
310,840
 
    
  
 
The accompanying notes are an integral part of these financial statements.

3

 
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
(CONTINUED)
 
    
June 30,
   
December 31,
    
2002
   
2001
(In thousands, except share data)
   
(Unaudited)
   
(Audited)
LIABILITIES AND STOCKHOLDERS’ EQUITY
              
Current liabilities:
              
Accounts payable
   
$
22,973
   
$
13,799
Compensation and benefits
   
 
14,250
   
 
9,942
Claims and insurance accruals
   
 
17,694
   
 
14,958
Other accrued liabilities
   
 
3,141
   
 
3,034
Income taxes payable
   
 
222
   
 
425
Current maturities of long-term debt
   
 
17,195
   
 
8,408
    
  
Total current liabilities
   
 
75,475
   
 
50,566
Long-term liabilities:
              
Long-term debt
   
 
81,328
   
 
90,014
Other non-current liabilities
   
 
14,100
   
 
12,840
Deferred income taxes
   
 
20,781
   
 
20,781
    
  
Total long-term liabilities
   
 
116,209
   
 
123,635
Stockholders’ equity:
              
Common stock—$.10 par value, 25,000,000 shares
authorized, 8,316,740 outstanding
   
 
832
   
 
831
Capital in excess of par value
   
 
23,946
   
 
23,907
Retained earnings
   
 
118,504
   
 
111,901
    
  
Total stockholders’ equity
   
 
143,282
   
 
136,639
Commitments and contingencies
   
 
—  
   
 
—  
    
  
Total liabilities and stockholders’ equity
   
$
334,966
   
$
310,840
    
  
 
The accompanying notes are an integral part of these financial statements.

4

OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
    
Six Months Ended June 30,
  
    
2002
     
2001
  
(In thousands)
   
(Unaudited)
     
(Unaudited)
  
Cash flows from operating activities:
                  
Net income
   
$
6,603
 
   
$
4,098
 
Adjustments to reconcile net income to net cash provided by operating activities:
                  
Depreciation and amortization
   
 
15,195
 
   
 
14,809
 
Loss on sale of property and equipment
   
 
171
 
   
 
120
 
Changes in assets and liabilities:
                  
Customer and other receivables, net
   
 
(12,202
)
   
 
(4,922
)
Tires on equipment
   
 
(507
)
   
 
(72
)
Prepaid expenses and other assets
   
 
6,413
 
   
 
5,681
 
Accounts payable
   
 
9,174
 
   
 
(6,843
)
Compensation, benefits and other accrued liabilities
   
 
4,415
 
   
 
3,816
 
Claims and insurance accruals
   
 
3,844
 
   
 
67
 
Income taxes payable
   
 
(203
)
   
 
739
 
Other liabilities
   
 
152
 
   
 
82
 
    
  
Net cash provided by operating activities
   
 
33,055
 
   
 
17,575
 
    
  
Cash flows from investing activities:
                  
Acquisition of business assets, net
   
 
—  
 
   
 
(9,385
)
Purchase of property and equipment
   
 
(33,261
)
   
 
(13,505
)
Proceeds from sale of property and equipment
   
 
379
 
   
 
227
 
    
  
Net cash used in investing activities
   
 
(32,882
)
   
 
(22,663
)
    
  
Cash flows from financing activities: