Old Dominion Freight Line Reports 34.4% Increase in Fourth-Quarter Ear

Old Dominion Freight Line Reports 34.4% Increase in Fourth-Quarter Earnings Per Diluted Share to $0.43 on 28.8% Growth in Revenue

    Business Editors

    THOMASVILLE, N.C.--(BUSINESS WIRE)--Jan. 27, 2005--

Raises Earnings Guidance for 2005 to $2.03 to $2.08
    Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced record financial results for the fourth quarter and year ended December 31, 2004. For the quarter, revenue from operations increased 28.8% to $224,036,000 from $173,976,000 for the fourth quarter of 2003. Net income rose 37.2% to $10,604,000 for the fourth quarter of 2004 from $7,728,000 for the fourth quarter of 2003, while earnings per diluted share increased to $0.43, up 34.4% from $0.32. Old Dominion's operating ratio improved to 91.4% for the latest quarter from 92.2% for the fourth quarter of 2003. The Company's results for the fourth quarter of 2004 reflect an unfavorable jury verdict against the Company in a personal injury case that negatively impacted net income by $0.03 per share. All prior-period share and per share data in this release have been adjusted to reflect the Company's three-for-two stock split effective in May 2004.
    Revenue from operations for 2004 increased 23.4% to $824,051,000 from $667,531,000 for 2003. Net income increased 41.3% to $38,992,000 from $27,600,000, and earnings per diluted share increased 39.1% to $1.60 from $1.15. The Company's operating ratio improved to 91.4% for 2004 from 92.3% for 2003.
    Commenting on the announcement, Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion, said, "Our financial and operating results for the fourth quarter and full-year 2004 demonstrate the significant momentum we have developed as one of the country's leading providers of less-than-truckload multi-regional and inter-regional transportation services. Our fourth quarter represented our third consecutive quarter of comparable-quarter revenue growth in excess of 20%, enabling the Company to increase revenue for the full year at a rate above 20%. In addition, due to increased operating leverage and efficiencies, our fourth quarter also represented our 13th consecutive quarter of improvement in our operating ratio and growth in net income above 30%, both on a comparable-quarter basis.
    "For the latest quarter, our top-line growth resulted from double-digit increases of 16.4% and 12.8% in LTL tons and LTL shipments, respectively, as well as a 5.5% increase in LTL revenue per LTL hundredweight, excluding fuel surcharge revenue. This pricing improvement, combined with a 3.2% increase in LTL weight per LTL shipment, drove an 8.8% increase in LTL revenue per LTL shipment, excluding fuel surcharge revenue.
    "Consistent with our primary growth strategy, the majority of our revenue growth came from within our existing service center network, contributing to our improved operating ratio for the quarter. In addition, our results reflect the opening of two new service centers during the fourth quarter in Modesto, California and Winchester, Virginia. For full-year 2004, we opened a total of 12 service centers, giving us 138 in 40 states at year-end compared with 126 in 38 states at the end of 2003. We also initiated full-state coverage in two new states during the year, ending 2004 with full-state coverage in 29 states.
    "We continued this expansion momentum in early 2005 with the announcement and subsequent closing of the selected asset purchase of Wichita Southeast Kansas Transit ("WSKT") earlier this month. Through this acquisition, we have expanded our service center network to 149 locations in 41 states and initiated full-state coverage in two additional states, giving us 31 states in which we now provide this service. WSKT produced revenues of approximately $68 million for the 12 months ended September 30, 2004, and we expect this transaction to be accretive to our financial results for 2005."
    Based on the financial results for the fourth quarter and full-year 2004, the acquisition of WSKT, and Old Dominion's assessment of current and near term business conditions, the Company today increased its guidance for 2005 earnings per diluted share to a range of $2.03 to $2.08, from the previous range of $1.95 to $2.00. In addition, the Company today established its earnings guidance for the first quarter of 2005 in a range of $0.33 to $0.37, compared with $0.24 for the first quarter of 2004.
    Mr. Congdon concluded, "Our earnings guidance for 2005 indicates expected growth that is consistent with our recent trends. While the acquisition of WSKT will contribute to this growth, we base our expectations primarily on our strengthening position as a comprehensive, single-source solution to our clients' national and international logistics needs. With our efficient, non-union workforce, the infrastructure strengths of our multi-regional and inter-regional service center network, and our consistent high quality service, we represent a unique alternative for a growing number of customers. The combination of this competitive positioning with both a veteran management team and the financial resources to fund our growth strategies supports our confidence in our ability to achieve our objectives for 2005."
    Old Dominion will hold a conference call to discuss this release today at 11:00 a.m. Eastern time. Investors will have the opportunity to listen to the conference call live over the Internet by going to www.odfl.com or by going to www.vcall.com at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these Web sites shortly after the call through February 27, 2005. A telephonic replay will also be available through February 3, 2005, at 719-457-0820, Confirmation Number 832267.
    Forward-looking statements in this news release 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) the competitive environment with respect to industry capacity and pricing; (2) the negative impact of any unionization of the Company's employees; (3) the challenges associated with executing the Company's growth strategy; (4) the Company's compliance with recent legislation requiring companies to evaluate their internal control over financial operations and reporting; (5) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (6) the availability and cost of fuel; (7) difficulty in attracting or retaining qualified drivers; (8) the Company's exposure to claims related to cargo loss and damage, property damage, personal injury and workers' compensation and the costs of insurance; (9) the Company's significant ongoing cash requirements; (10) the availability and cost of new equipment; (11) the costs of compliance with, or liability for, violation of existing or future governmental regulation; (12) seasonal trends in the industry, including the possibility of harsh weather conditions; (13) the Company's dependence on key employees; (14) changes in the Company's goals and strategies, which are subject to change at any time at the discretion of the Company; and (15) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
    Old Dominion Freight Line, Inc. is a less-than-truckload multi-regional motor carrier providing one to five day service among five regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD-Technology, the Company offers an array of innovative products and services that provide direct service to 41 states within the Southeast, South Central, Northeast, Midwest and West regions of the country, including 31 states within which it provides full-state coverage. In addition, through marketing and carrier relationships, Old Dominion provides service to and from the remaining states as well as international services around the globe.

OLD DOMINION FREIGHT LINE, INC. Financial Highlights (In thousands, except per share amounts)

Three Months Ended Twelve Months Ended December 31, December 31, ------------------ % ------------------- % 2004 2003 Chg. 2004 2003 Chg. ------ ------- ----- ------ ------- ----- Revenue from operations $224,036 $173,976 28.8% $824,051 $667,531 23.4% Operating income $ 19,289 $ 13,581 42.0% $ 70,608 $ 51,216 37.9% Operating ratio 91.4% 92.2% 91.4% 92.3% Net income $ 10,604 $ 7,728 37.2% $ 38,992 $ 27,600 41.3% Basic earnings per share(1) $ 0.43 $ 0.32 34.4% $ 1.60 $ 1.15 39.1% Diluted earnings per share(1) $ 0.43 $ 0.32 34.4% $ 1.60 $ 1.15 39.1% Weighted average shares outstanding(1) Basic 24,844 24,089 3.1% 24,407 24,067 1.4% Diluted 24,855 24,110 3.1% 24,423 24,095 1.4%

(1) Adjusted to reflect a three-for-two stock split effective May 20, 2004.

OLD DOMINION FREIGHT LINE, INC.

Statements of Operations ---------------------------------------------------------------------- (In thousands, except per share amounts) Fourth Quarter ----------------------------------------

2004 2003 %Chg. --------------- --------------- --------

Revenue $224,036 100.0% $173,976 100.0% 28.8%

Operating expenses: Salaries, wages & benefits 124,381 55.5% 104,694 60.2% 18.8% Operating supplies & expenses 30,486 13.6% 18,533 10.7% 64.5% General supplies & expenses 6,924 3.1% 5,953 3.4% 16.3% Operating taxes & licenses 8,416 3.8% 7,013 4.0% 20.0% Insurance & claims 7,231 3.2% 4,362 2.5% 65.8% Communications & utilities 3,130 1.4% 2,922 1.7% 7.1% Depreciation & amortization 11,785 5.3% 10,129 5.8% 16.3% Purchased transportation 8,344 3.7% 5,743 3.3% 45.3% Building and office equipment rents 1,923 0.9% 1,936 1.1% (0.7%) Miscellaneous expenses, net 2,127 0.9% (890)(0.5%) (339.0%)

Total operating expenses 204,747 91.4% 160,395 92.2% 27.7%

Operating income 19,289 8.6% 13,581 7.8% 42.0%

Other deductions: Interest expense, net 1,220 0.6% 1,583 0.9% (22.9%) Other expense, net 273 0.1% (453)(0.3%) (160.3%)

Income before income taxes 17,796 7.9% 12,451 7.2% 42.9%

Provision for income taxes 7,192 3.2% 4,723 2.8% 52.3%

Net income $ 10,604 4.7% $ 7,728 4.4% 37.2% ========= =========

Earnings per share:

Basic $ 0.43 $ 0.32 34.4% Diluted $ 0.43 $ 0.32 34.4%

Weighted average shares outstanding:

Basic 24,844 24,089 3.1% Diluted 24,855 24,110 3.1%

Year-To-Date ----------------------------------------

2004 2003 %Chg. --------------- --------------- --------

Revenue $824,051 100.0% $667,531 100.0% 23.4%

Operating expenses: Salaries, wages & benefits 468,775 56.9% 396,521 59.4% 18.2% Operating supplies & expenses 100,660 12.2% 72,084 10.8% 39.6% General supplies & expenses 27,450 3.3% 22,991 3.4% 19.4% Operating taxes & licenses 31,286 3.8% 26,627 4.0% 17.5% Insurance & claims 26,095 3.2% 17,583 2.6% 48.4% Communications & utilities 11,541 1.4% 10,511 1.6% 9.8% Depreciation & amortization 44,823 5.4% 38,210 5.7% 17.3% Purchased transportation 29,443 3.6% 21,389 3.2% 37.7% Building and office equipment rents 7,531 0.9% 7,403 1.1% 1.7% Miscellaneous expenses, net 5,839 0.7% 2,996 0.5% 94.9%

Total operating expenses 753,443 91.4% 616,315 92.3% 22.2%

Operating income 70,608 8.6% 51,216 7.7% 37.9%

Other deductions: Interest expense, net 5,273 0.7% 6,111 0.9% (13.7%) Other expense, net 748 0.1% (192)(0.0%) (489.6%)

Income before income taxes 64,587 7.8% 45,297 6.8% 42.6%

Provision for income taxes 25,595 3.1% 17,697 2.7% 44.6%

Net income $ 38,992 4.7% $ 27,600 4.1% 41.3% ========= =========

Earnings per share:

Basic $ 1.60 $ 1.15 39.1% Diluted $ 1.60 $ 1.15 39.1%

Weighted average shares outstanding:

Basic 24,407 24,067 1.4% Diluted 24,423 24,095 1.4%

OLD DOMINION FREIGHT LINE, INC.

Fourth Quarter Year To Date -------------------------------------------------- Operating Statistics 2004 2003 %Chg. 2004 2003 %Chg. ---------------------------------------------------------------------- ( (a) In thousands)

Operating ratio 91.4% 92.2% (0.9%) 91.4% 92.3% (1.0%) Intercity miles (a) 58,806 49,353 19.2% 219,201 189,084 15.9% LTL tons (a) 667 573 16.4% 2,577 2,208 16.7% Total tons (a) 907 794 14.2% 3,550 3,040 16.8% LTL shipments (a) 1,222 1,083 12.8% 4,808 4,274 12.5% Total shipments (a) 1,250 1,108 12.8% 4,918 4,366 12.6% Percent LTL revenue 90.4% 90.9% (0.6%) 90.6% 91.3% (0.8%) Revenue per intercity mile $ 3.81 $ 3.53 7.9% $ 3.76 $ 3.53 6.5% LTL rev/LTL cwt $ 15.19 $ 13.79 10.2% $ 14.49 $ 13.80 5.0% LTL rev/LTL cwt less FSC $ 13.96 $ 13.23 5.5% $ 13.57 $ 13.19 2.9% LTL rev/LTL shp $165.80 $145.99 13.6% $155.28 $ 142.57 8.9% LTL rev/LTL shp less FSC $152.40 $140.05 8.8% $145.47 $ 136.30 6.7% LTL weight per LTL shipment 1,092 1,058 3.2% 1,072 1,033 3.8% Average length of haul 936 929 0.8% 937 926 1.2%

Dec 31, Dec. 31, Balance Sheets 2004 2003 ---------------------------------------------------------------------- (In thousands)

Current assets $127,171 $101,370 Net property and equipment 363,268 315,768 Other assets 18,928 17,421 -------- -------- Total assets $509,367 $434,559 ======== ========

Current maturities $ 22,030 $ 22,440 Other current liabilities 76,424 55,892 -------- -------- Total current liabilities 98,454 78,332 Long-term debt 57,424 74,986 Other long-term liabilities 61,961 48,700 -------- -------- Total liabilities 217,839 202,018 Shareholders' equity 291,528 232,541 -------- -------- Total liabilities & equity $509,367 $434,559 ======== ========

Notes: Financial and operating data are unaudited LTL is less than 10,000 lbs.

--30--MC/na*

CONTACT: Old Dominion Freight Line, Inc. J. Wes Frye, 336-822-5305

KEYWORD: CALIFORNIA NORTH CAROLINA INDUSTRY KEYWORD: TRANSPORTATION EARNINGS CONFERENCE CALLS SOURCE: Old Dominion Freight Line, Inc.

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