On this page of StockholderLetter.com we present the latest annual shareholder letter from OLD DOMINION FREIGHT LINE, INC. — ticker symbol ODFL. Reading current and past ODFL letters to shareholders can bring important insights into the investment thesis.
OLD DOMINION
FREIGHT LINE, INC.
2023 ANNUAL REPORT
OD DOMESTIC
OD EXPEDITED
OD PEOPLE
OD GLOBAL
OD TECHNOLOGY
COMMITMENT TO
OUR LONG-TERM
STRATEGIC PLAN
Old Dominion Freight Line   s long-term strategic plan and our OD
Family of employees continued to perform at a high level in 2023,
despite being faced with a soft macroeconomic environment.
We focused on the areas of the business we can control, including
improving our service and customer experience, developing employee
talent, gaining operational efficiencies, and continuing to invest in
capacity and technology to serve our customers in the long-term.
OD DOMESTIC
OD   s ongoing investment in our
nationwide service center network
is key to developing and serving
our customers. We have invested
approximately $2.1 billion in our
service center network over the last
ten years, and we have expanded to
257 service centers* across the United
States to provide capacity for further
customer growth and additional
market share opportunities. Our
business depends on the success
of our customers; we do everything
in our power to make sure each
shipment is delivered safely and
efficiently. In 2023, our superior
customer service and commitment
to excellence earned OD the Mastio
Quality Award** for National LTL
Carrier for an unprecedented 14th
consecutive year.
OD EXPEDITED
OD PEOPLE
We are proud of our commitment to
on-time delivery of time-sensitive and
highly critical shipments. Our ability to
consistently meet customer demand
through various economic cycles is
a hallmark of our success. As supply
chains tighten and delivery windows
contract, OD Expedited service
provides customers with customizable
solutions to meet their needs, from
Guaranteed and On-Demand shipping
to Weekend Promise with Friday pickup
and Monday delivery. We tailor each
service to meet the customers    needs
and monitor each shipment 24 hours
a day, 7 days a week to help ensure
on-time delivery. In addition, OD   s Must
Arrive By Date service helps our retail
customers meet their increasingly
complex and stringent supply
chain demands.
OD   s dedicated, highly-trained employees
have made us an industry leader. We
are proud to foster a culture of safety
and performance excellence, while
also providing industry-competitive
compensation, a robust benefits package,
and career advancement opportunities
for our OD Family of employees. We
value and support our employees   
ability to grow and progress in their
careers by offering skills and leadership
development training programs, including
Driver Training and Management Training.
This unwavering commitment to our team
allows us to attract and retain exceptional
talent, which drives improvement across
all areas of our business. Our efforts
have earned us recognition as a great
place to work, including being named
as one of the Top Companies for Women
to Work for in Transportation*** for 2023
and inclusion on Forbes    annual listing
of America   s Best Large Employers
for 2023****.
* As of December 31, 2023 ** Source: 2023 Mastio and Company National LTL Carrier Report *** Source: Women in Trucking Association, 2023 **** Source: Forbes Magazine, 2023
1
OD GLOBAL
OD TECHNOLOGY
OD Global offers established freight
services with a global reach through
our strategic alliances. Our customers
enjoy extensive door-to-door freight
tracking and professional customer
service. OD Global helps our customers
manage less-than-container load (LCL)
and full-container load (FCL) shipping,
nationwide container drayage,
ocean and air freight forwarding
and expedited LCL imports. We also
provide access to customs compliance
consulting for international crossborder shipments.
We are committed to making our
services efficient and convenient
for our customers     and that means
keeping up with the industry   s latest
developments in technology. We
believe our sizable investments in
information systems have made the
OD network one of the most efficient
in the industry. We create value for
our customers by providing superior
service and data visibility. From our
convenient customer website and
mobile experience, to our track-andtrace system, to our load planning
and routing processes, OD   s advanced
technologies are another example of
how we make it easy to do business
with us.
2
TO OUR SHAREHOLDERS AND
OUR OD FAMILY OF EMPLOYEES
For Old Dominion and everyone within the LTL industry, 2023
will certainly be a year to remember. We experienced another
year of softness in the domestic economy accompanied by
inflationary pressures, both of which affected our customers
and underlying demand for the industry. As a result, our
shipments per day decreased on a yearover-year basis throughout much of the year,
until inflecting to the positive in September
following the closure of one of the largest
competitors in the LTL industry. Our ability
to efficiently and effectively manage through
these market conditions demonstrates the
value of our culture, our strong OD Family of
employees and our steadfast commitment to
our long-term strategic plan.
With solid execution, we generated over
$5.8 billion in revenue in 2023, our second
highest revenue level in the Company   s
history. Notably, over the last 20 years, we
have increased our revenue at a compound
annual growth rate of 11.5%. Our operating
ratio of 72.0% resulted in net income of $1.2
billion, or $11.26 in earnings per diluted
share, for 2023. Our results reflect our
ongoing commitment to providing superior
service at a fair price, maintaining a disciplined approach to
managing yields, and consistently investing in our capacity to
support anticipated future growth. The most critical element
of our long-term strategic plan, however, is the investment
that we make in our OD Family of employees. The investment
in our people supports our unique culture, which continues
to distinguish us from our competition. This is why we will
continue to focus first and foremost on doing right things
right for our OD Family of employees, who are motivated and
rewarded to take care of our customers each and every day.
It takes a committed team to consistently deliver on the
fundamental elements of our long-term strategic plan, and
there is no team more committed than team OD. We are
confident in our team   s ability to continue delivering our
unmatched value proposition over the long term, which
provides us with confidence that we can create further
profitable growth and increased shareholder value.
3
Our unwavering commitment to providing superior service
continued to be recognized by shippers, as we earned multiple
Carrier of the Year awards for 2023. We are also extremely
proud that our team was named the No. 1 national LTL carrier
in 2023 by Mastio and Company for the fourteenth consecutive
year. Led by our extraordinary team, we also
continued to deliver industry-leading service
results in 2023, including 99% on-time delivery
and a claims ratio of 0.1%. We recognize that
effective customer service goes much deeper
than these service metrics, which is why we
were pleased to achieve the top ranking in 25
of the 28 core attributes measured by Mastio.
LTL is a complex industry, and our OD Family of
employees works diligently to meet every facet
of our customers    needs, effectively becoming
an extension of our customers    brand.
A sustainable workforce is the key to our
success both now and in the future. As such,
we continue to have open dialogue with our
employees through our open-door discussions,
management visits to our service centers and
detailed employee surveys. We also invest
significantly in succession planning for all
key roles within the Company to help ensure
consistent performance as we continue to grow. This feedback
and review process improves our ability to offer competitive
compensation and benefit plans, as well as rewarding training
and safety programs. We are intent on creating a better
work-life balance while providing our employees with internal
promotional opportunities. Our efforts in these areas gained
us recognition in prominent listings over the past year, as we
were recognized as one of the best places to work in America.
An additional critical component of customer service is having
the capacity to continue to support our customers as they grow
their businesses. LTL capacity includes real estate, equipment,
and our people. Capital expenditures in 2023 totaled $757.3
million, including $291.1 million in real estate investments. In
addition, our fleet-related purchases included $385.0 million
for new tractors and trailers during 2023. We expect total
capital expenditures for 2024 to total approximately $750
million, including $350 million for real estate and service
center expansion projects; $325 million for tractors and
trailers; and $75 million for information technology and other
assets. Our ongoing investments in capacity and technology
will support our ability to continue to serve existing customer
needs and our future market share initiatives.
emission equipment utilization will continue to be challenging
given the limited zero-emission Class 8 tractor technology
currently available.
We are well-positioned for the future, and we will continue to
prioritize both the investments in our OD Family of employees
as well as capital expenditures to support future growth. Our
strong balance sheet provides us with the financial flexibility
to make these strategic investments and be responsive to
the needs of our customers and our business. In addition, we
continue to return capital to our shareholders. During 2023,
we utilized $453.6 million for our share repurchase program.
We also returned $175.1 million to our shareholders through
cash dividends in 2023 and increased our first-quarter 2024
dividend by 30% to $0.52 per share. Our compound annualized
total shareholder returns, assuming reinvestment of all
dividends, were 28.1%, 38.1%, and 28.0% over the past threeyear, five-year, and ten-year periods, respectively.
One other notable event for our Company during 2023 was
the retirement of Greg Gantt, who was our President and
Chief Executive Officer. We would like to take a moment to
recognize Greg and thank him for his outstanding service to
Old Dominion over his long and distinguished career. Greg
played a critical role in the development of our industryleading performance and time-tested strategic plan.
While we continue to prove that we are one of the most
efficient LTL carriers, we also look for other ways to reduce
our impact on the environment. We are working closely with
tractor manufacturers related to innovative technologies, but
we are facing significant challenges finding zero-emission
Class 8 tractors that meet our business requirements for
range, hauling capacity, utilization, and cost. We have identified
zero-emission opportunities in other equipment including
yard tractors and forklifts, and we plan to purchase and
evaluate zero-emission straight trucks during 2024. We
will continue our efforts to reduce our carbon footprint and
pursue additional sustainable business practices, but zero-
In closing, we thank our OD Family of employees, management
team and Board of Directors for Helping the World Keep
Promises   in 2023. We are especially grateful to all our valued
customers for choosing Old Dominion. Finally, we thank our
fellow shareholders for your continued support.
Together, we look forward to the opportunities ahead for Old
Dominion in 2024.
Sincerely,
Kevin M. Freeman
President and Chief Executive Officer
David S. Congdon
Executive Chairman of the Board
4
 • shareholder letter icon 4/15/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/17/2023 ODFL Stockholder Letter
 • stockholder letter icon More "Trucking" Category Stockholder Letters
 • Benford's Law Stocks icon ODFL Benford's Law Stock Score = 64


ODFL Shareholder/Stockholder Letter Transcript:

OLD DOMINION
FREIGHT LINE, INC.
2023 ANNUAL REPORT
OD DOMESTIC
OD EXPEDITED
OD PEOPLE
OD GLOBAL
OD TECHNOLOGY

COMMITMENT TO
OUR LONG-TERM
STRATEGIC PLAN
Old Dominion Freight Line   s long-term strategic plan and our OD
Family of employees continued to perform at a high level in 2023,
despite being faced with a soft macroeconomic environment.
We focused on the areas of the business we can control, including
improving our service and customer experience, developing employee
talent, gaining operational efficiencies, and continuing to invest in
capacity and technology to serve our customers in the long-term.
OD DOMESTIC
OD   s ongoing investment in our
nationwide service center network
is key to developing and serving
our customers. We have invested
approximately $2.1 billion in our
service center network over the last
ten years, and we have expanded to
257 service centers* across the United
States to provide capacity for further
customer growth and additional
market share opportunities. Our
business depends on the success
of our customers; we do everything
in our power to make sure each
shipment is delivered safely and
efficiently. In 2023, our superior
customer service and commitment
to excellence earned OD the Mastio
Quality Award** for National LTL
Carrier for an unprecedented 14th
consecutive year.
OD EXPEDITED
OD PEOPLE
We are proud of our commitment to
on-time delivery of time-sensitive and
highly critical shipments. Our ability to
consistently meet customer demand
through various economic cycles is
a hallmark of our success. As supply
chains tighten and delivery windows
contract, OD Expedited service
provides customers with customizable
solutions to meet their needs, from
Guaranteed and On-Demand shipping
to Weekend Promise with Friday pickup
and Monday delivery. We tailor each
service to meet the customers    needs
and monitor each shipment 24 hours
a day, 7 days a week to help ensure
on-time delivery. In addition, OD   s Must
Arrive By Date service helps our retail
customers meet their increasingly
complex and stringent supply
chain demands.
OD   s dedicated, highly-trained employees
have made us an industry leader. We
are proud to foster a culture of safety
and performance excellence, while
also providing industry-competitive
compensation, a robust benefits package,
and career advancement opportunities
for our OD Family of employees. We
value and support our employees   
ability to grow and progress in their
careers by offering skills and leadership
development training programs, including
Driver Training and Management Training.
This unwavering commitment to our team
allows us to attract and retain exceptional
talent, which drives improvement across
all areas of our business. Our efforts
have earned us recognition as a great
place to work, including being named
as one of the Top Companies for Women
to Work for in Transportation*** for 2023
and inclusion on Forbes    annual listing
of America   s Best Large Employers
for 2023****.
* As of December 31, 2023 ** Source: 2023 Mastio and Company National LTL Carrier Report *** Source: Women in Trucking Association, 2023 **** Source: Forbes Magazine, 2023
1

OD GLOBAL
OD TECHNOLOGY
OD Global offers established freight
services with a global reach through
our strategic alliances. Our customers
enjoy extensive door-to-door freight
tracking and professional customer
service. OD Global helps our customers
manage less-than-container load (LCL)
and full-container load (FCL) shipping,
nationwide container drayage,
ocean and air freight forwarding
and expedited LCL imports. We also
provide access to customs compliance
consulting for international crossborder shipments.
We are committed to making our
services efficient and convenient
for our customers     and that means
keeping up with the industry   s latest
developments in technology. We
believe our sizable investments in
information systems have made the
OD network one of the most efficient
in the industry. We create value for
our customers by providing superior
service and data visibility. From our
convenient customer website and
mobile experience, to our track-andtrace system, to our load planning
and routing processes, OD   s advanced
technologies are another example of
how we make it easy to do business
with us.
2

TO OUR SHAREHOLDERS AND
OUR OD FAMILY OF EMPLOYEES
For Old Dominion and everyone within the LTL industry, 2023
will certainly be a year to remember. We experienced another
year of softness in the domestic economy accompanied by
inflationary pressures, both of which affected our customers
and underlying demand for the industry. As a result, our
shipments per day decreased on a yearover-year basis throughout much of the year,
until inflecting to the positive in September
following the closure of one of the largest
competitors in the LTL industry. Our ability
to efficiently and effectively manage through
these market conditions demonstrates the
value of our culture, our strong OD Family of
employees and our steadfast commitment to
our long-term strategic plan.
With solid execution, we generated over
$5.8 billion in revenue in 2023, our second
highest revenue level in the Company   s
history. Notably, over the last 20 years, we
have increased our revenue at a compound
annual growth rate of 11.5%. Our operating
ratio of 72.0% resulted in net income of $1.2
billion, or $11.26 in earnings per diluted
share, for 2023. Our results reflect our
ongoing commitment to providing superior
service at a fair price, maintaining a disciplined approach to
managing yields, and consistently investing in our capacity to
support anticipated future growth. The most critical element
of our long-term strategic plan, however, is the investment
that we make in our OD Family of employees. The investment
in our people supports our unique culture, which continues
to distinguish us from our competition. This is why we will
continue to focus first and foremost on doing right things
right for our OD Family of employees, who are motivated and
rewarded to take care of our customers each and every day.
It takes a committed team to consistently deliver on the
fundamental elements of our long-term strategic plan, and
there is no team more committed than team OD. We are
confident in our team   s ability to continue delivering our
unmatched value proposition over the long term, which
provides us with confidence that we can create further
profitable growth and increased shareholder value.
3
Our unwavering commitment to providing superior service
continued to be recognized by shippers, as we earned multiple
Carrier of the Year awards for 2023. We are also extremely
proud that our team was named the No. 1 national LTL carrier
in 2023 by Mastio and Company for the fourteenth consecutive
year. Led by our extraordinary team, we also
continued to deliver industry-leading service
results in 2023, including 99% on-time delivery
and a claims ratio of 0.1%. We recognize that
effective customer service goes much deeper
than these service metrics, which is why we
were pleased to achieve the top ranking in 25
of the 28 core attributes measured by Mastio.
LTL is a complex industry, and our OD Family of
employees works diligently to meet every facet
of our customers    needs, effectively becoming
an extension of our customers    brand.
A sustainable workforce is the key to our
success both now and in the future. As such,
we continue to have open dialogue with our
employees through our open-door discussions,
management visits to our service centers and
detailed employee surveys. We also invest
significantly in succession planning for all
key roles within the Company to help ensure
consistent performance as we continue to grow. This feedback
and review process improves our ability to offer competitive
compensation and benefit plans, as well as rewarding training
and safety programs. We are intent on creating a better
work-life balance while providing our employees with internal
promotional opportunities. Our efforts in these areas gained
us recognition in prominent listings over the past year, as we
were recognized as one of the best places to work in America.
An additional critical component of customer service is having
the capacity to continue to support our customers as they grow
their businesses. LTL capacity includes real estate, equipment,
and our people. Capital expenditures in 2023 totaled $757.3
million, including $291.1 million in real estate investments. In
addition, our fleet-related purchases included $385.0 million
for new tractors and trailers during 2023. We expect total
capital expenditures for 2024 to total approximately $750
million, including $350 million for real estate and service
center expansion projects; $325 million for tractors and
trailers; and $75 million for information technology and other

assets. Our ongoing investments in capacity and technology
will support our ability to continue to serve existing customer
needs and our future market share initiatives.
emission equipment utilization will continue to be challenging
given the limited zero-emission Class 8 tractor technology
currently available.
We are well-positioned for the future, and we will continue to
prioritize both the investments in our OD Family of employees
as well as capital expenditures to support future growth. Our
strong balance sheet provides us with the financial flexibility
to make these strategic investments and be responsive to
the needs of our customers and our business. In addition, we
continue to return capital to our shareholders. During 2023,
we utilized $453.6 million for our share repurchase program.
We also returned $175.1 million to our shareholders through
cash dividends in 2023 and increased our first-quarter 2024
dividend by 30% to $0.52 per share. Our compound annualized
total shareholder returns, assuming reinvestment of all
dividends, were 28.1%, 38.1%, and 28.0% over the past threeyear, five-year, and ten-year periods, respectively.
One other notable event for our Company during 2023 was
the retirement of Greg Gantt, who was our President and
Chief Executive Officer. We would like to take a moment to
recognize Greg and thank him for his outstanding service to
Old Dominion over his long and distinguished career. Greg
played a critical role in the development of our industryleading performance and time-tested strategic plan.
While we continue to prove that we are one of the most
efficient LTL carriers, we also look for other ways to reduce
our impact on the environment. We are working closely with
tractor manufacturers related to innovative technologies, but
we are facing significant challenges finding zero-emission
Class 8 tractors that meet our business requirements for
range, hauling capacity, utilization, and cost. We have identified
zero-emission opportunities in other equipment including
yard tractors and forklifts, and we plan to purchase and
evaluate zero-emission straight trucks during 2024. We
will continue our efforts to reduce our carbon footprint and
pursue additional sustainable business practices, but zero-
In closing, we thank our OD Family of employees, management
team and Board of Directors for Helping the World Keep
Promises   in 2023. We are especially grateful to all our valued
customers for choosing Old Dominion. Finally, we thank our
fellow shareholders for your continued support.
Together, we look forward to the opportunities ahead for Old
Dominion in 2024.
Sincerely,
Kevin M. Freeman
President and Chief Executive Officer
David S. Congdon
Executive Chairman of the Board
4



shareholder letter icon 4/15/2024 Letter Continued (Full PDF)
 

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