Old Dominion Freight Line Inc (ODFL) has reported a 5.14 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $68.51 million, or $0.83 a share in the quarter, compared with $72.22 million, or $0.85 a share for the same period last year.
Revenue during the quarter went up marginally by 1.52 percent to $745.74 million from $734.57 million in the previous year period. Gross margin for the quarter expanded 13 basis points over the previous year period to 88.72 percent. Total expenses were 84.79 percent of quarterly revenues, up from 84.49 percent for the same period last year. That has resulted in a contraction of 30 basis points in operating margin to 15.21 percent.
Operating income for the quarter was $113.45 million, compared with $113.92 million in the previous year period.
“Old Dominion's fourth-quarter financial results reflect a number of encouraging developments, despite a 2.4% decrease in earnings per diluted share,” said David S. Congdon, vice chairman and chief executive officer of Old Dominion. “In a quarter with one less business day than the comparable prior-year period, our revenue per day increased 3.2%, which was driven by a 0.3% increase in LTL tons per day and a 2.6% increase in LTL revenue per hundredweight. Our LTL revenue per hundredweight, excluding fuel surcharges, increased 1.6%, as our yield metrics were negatively impacted by a 2.5% increase in LTL weight per shipment and a 0.5% decrease in average length of haul. Our pricing philosophy remains the same, however, and we continue to characterize the pricing environment as stable.
Working capital decreases marginally
Old Dominion Freight Line Inc has witnessed a decline in the working capital over the last year. It stood at $93.99 million as at Dec. 31, 2016, down 2.43 percent or $2.34 million from $96.33 million on Dec. 31, 2015. Current ratio was at 1.33 as on Dec. 31, 2016, down from 1.34 on Dec. 31, 2015.
Debt comes down
Old Dominion Freight Line Inc has recorded a decline in total debt over the last one year. It stood at $104.98 million as on Dec. 31, 2016, down 21.55 percent or $28.83 million from $133.80 million on Dec. 31, 2015. Total debt was 3.89 percent of total assets as on Dec. 31, 2016, compared with 5.42 percent on Dec. 31, 2015. Debt to equity ratio was at 0.06 as on Dec. 31, 2016, down from 0.08 as on Dec. 31, 2015.
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