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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 10-Q
 

 
 
(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, 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)
 
(336) 889-5000
(Registrant’s telephone number, including area code)
 

 
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 12, 2002, there were 10,296,864 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

  
Nine Months Ended

 
    
Sept. 30, 2002

  
Sept. 30, 2001

  
Sept. 30, 2002

  
Sept. 30, 2001

 
    
(Unaudited)
  
(Unaudited)
  
(Unaudited)
  
(Unaudited)
 
    
(In thousands, except share and per share data)
 
Revenue from operations
  
$
149,931
  
$
128,960
  
$
416,747
  
$
377,835
 
Operating expenses:
                             
Salaries, wages and benefits
  
 
88,488
  
 
77,408
  
 
251,079
  
 
229,432
 
Purchased transportation
  
 
5,397
  
 
4,746
  
 
14,237
  
 
14,307
 
Operating supplies and expenses
  
 
14,869
  
 
12,256
  
 
40,428
  
 
38,518
 
Depreciation and amortization
  
 
7,735
  
 
7,517
  
 
22,930
  
 
22,326
 
Building and office equipment rents
  
 
1,894
  
 
1,806
  
 
5,613
  
 
5,621
 
Operating taxes and licenses
  
 
5,724
  
 
5,200
  
 
16,878
  
 
15,637
 
Insurance and claims
  
 
4,446
  
 
3,536
  
 
12,664
  
 
9,842
 
Communications and utilities
  
 
2,481
  
 
2,334
  
 
7,591
  
 
7,211
 
General supplies and expenses
  
 
5,133
  
 
4,748
  
 
15,146
  
 
13,507
 
Miscellaneous expenses, net
  
 
1,659
  
 
1,728
  
 
4,318
  
 
4,511
 
    

  

  

  


Total operating expenses
  
 
137,826
  
 
121,279
  
 
390,884
  
 
360,912
 
    

  

  

  


Operating income
  
 
12,105
  
 
7,681
  
 
25,863
  
 
16,923
 
Other deductions:
                             
Interest expense, net
  
 
1,499
  
 
1,415
  
 
4,279
  
 
4,441
 
Other expense (income), net
  
 
122
  
 
267
  
 
275
  
 
(235
)
    

  

  

  


Total other deductions
  
 
1,621
  
 
1,682
  
 
4,554
  
 
4,206
 
    

  

  

  


Income before income taxes
  
 
10,484
  
 
5,999
  
 
21,309
  
 
12,717
 
Provision for income taxes
  
 
4,088
  
 
2,340
  
 
8,310
  
 
4,960
 
    

  

  

  


Net income
  
$
6,396
  
$
3,659
  
$
12,999
  
$
7,757
 
    

  

  

  


Basic and diluted earnings per share:
  
$
0.77
  
$
0.44
  
$
1.56
  
$
.93
 
Weighted average shares outstanding:
                             
Basic
  
 
8,317,549
  
 
8,312,840
  
 
8,315,785
  
 
8,312,840
 
Diluted
  
 
8,322,467
  
 
8,314,922
  
 
8,320,556
  
 
8,313,751
 
 
 
The accompanying notes are an integral part of these financial statements.

2


 
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
 
    
September 30, 2002

    
December 31, 2001

 
    
(Unaudited)
    
(Audited)
 
    
(In thousands, except share data)
 
ASSETS
                 
Current assets:
                 
Cash and cash equivalents
  
$
829
 
  
$
761
 
Customer receivables, less allowances of $7,511 and $6,816 respectively
  
 
67,432
 
  
 
51,061
 
Other receivables
  
 
731
 
  
 
1,097
 
Tires on equipment
  
 
8,119
 
  
 
7,346
 
Prepaid expenses
  
 
6,417
 
  
 
12,728
 
Deferred income taxes
  
 
873
 
  
 
873
 
    


  


Total current assets
  
 
84,401
 
  
 
73,866
 
Property and equipment:
                 
Revenue equipment
  
 
230,004
 
  
 
204,416
 
Land and structures
  
 
129,619
 
  
 
117,570
 
Other equipment
  
 
53,865
 
  
 
42,851
 
Leasehold improvements
  
 
4,737
 
  
 
4,679
 
    


  


Total property and equipment
  
 
418,225
 
  
 
369,516
 
Less accumulated depreciation and amortization
  
 
(169,934
)
  
 
(151,333
)
    


  


Net property and equipment
  
 
248,291
 
  
 
218,183
 
Other assets
  
 
19,306
 
  
 
18,791
 
    


  


Total assets
  
$
351,998
 
  
$
310,840
 
    


  


 
 
 
The accompanying notes are an integral part of these financial statements.

3


 
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED BALANCE SHEETS
(CONTINUED)
 
    
September 30, 2002

  
December 31, 2001

    
(Unaudited)
  
(Audited)
    
(In thousands, except share data)
LIABILITIES AND STOCKHOLDERS’ EQUITY
             
Current liabilities:
             
Accounts payable
  
$
19,231
  
$
13,799
Compensation and benefits
  
 
16,532
  
 
9,942
Claims and insurance accruals
  
 
18,034
  
 
14,958
Other accrued liabilities
  
 
4,065
  
 
3,034
Income taxes payable
  
 
1,000
  
 
425
Current maturities of long-term debt
  
 
24,009
  
 
8,408
    

  

Total current liabilities
  
 
82,871
  
 
50,566
Long-term debt
  
 
83,815
  
 
90,014
Other non-current liabilities
  
 
14,842
  
 
12,840
Deferred income taxes
  
 
20,781
  
 
20,781
    

  

Total long-term liabilities
  
 
119,438
  
 
123,635
Stockholders’ equity:
             
Common stock—$.10 par value, 25,000,000 shares authorized, 8,317,940 outstanding
  
 
832
  
 
831
Capital in excess of par value
  
 
23,957
  
 
23,907
Retained earnings
  
 
124,900
  
 
111,901
    

  

Total stockholders’ equity
  
 
149,689
  
 
136,639
Commitments and contingencies
  
 
—  
  
 
—  
    

  

Total liabilities and stockholders’ equity
  
$
351,998
  
$
310,840
    

  

 
 
 
The accompanying notes are an integral part of these financial statements.

4


 
OLD DOMINION FREIGHT LINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
    
Nine Months Ended Sept. 30,

 
    
2002

    
2001

 
    
(Unaudited)
    
(Unaudited)
 
    
(In thousands)
 
Cash flows from operating activities:
                 
Net income
  
$
12,999
 
  
$
7,757
 
Adjustments to reconcile net income to net cash provided by operating activities:
                 
Depreciation and amortization
  
 
22,930
 
  
 
22,326
 
Loss on sale of property and equipment
  
 
238
 
  
 
137
 
Changes in assets and liabilities:
                 
Customer and other receivables, net
  
 
(16,005
)
  
 
(6,291
)
Tires on equipment
  
 
(773
)
  
 
(375
)
Prepaid expenses and other assets
  
 
5,791
 
  
 
5,713
 
Accounts payable
  
 
5,432
 
  
 
(4,287
)
Compensation, benefits and other accrued liabilities
  
 
7,621
 
  
 
2,534
 
Claims and insurance accruals
  
 
4,895
 
  
 
1,548
 
Income taxes payable
  
 
575
 
  
 
998
 
Other liabilities
  
 
183
 
  
 
98
 
    


  


Net cash provided by operating activities
  
 
43,886
 
  
 
30,158
 
    


  


Cash flows from investing activities:
                 
Acquisition of business assets, net
  
 
—  
 
  
 
(9,387
)
Purchase of property and equipment
  
 
(53,836
)
  
 
(21,474
)
Proceeds from sale of property and equipment
  
 
565
 
  
 
739
 
    


  


Net cash used in investing activities
  
 
(53,271
)
  
 
(30,122
)
    


  


Cash flows from financing activities:
                 
Proceeds from issuance of long-term debt
  
 
16,764
 
  
 
52,563
 
Principal payments under long-term debt agreements
  
 
(5,864
)
  
 
(7,917
)
Net payments on revolving line of credit