Old Dominion Freight Line, Inc. (NASDAQ: ODFL) announced that for the first six months of 2014, revenue was $1.32 billion, an increase of 17.2% from $1.13 billion for the comparable period in 2013.
For the second quarter, revenue increased 19.1% to $703 million from $590.3 million for the second quarter of 2013. Net income grew 26.8% to $73.8 million for the second quarter of 2014 from $58.3 million for the second quarter of 2013. Earnings per diluted share increased 26.5% to $0.86 for the second quarter of 2014 from $0.68 for the prior-year period. Old Dominion's operating ratio improved to 82.5% for the second quarter of 2014 compared with 83.5% for the second quarter last year.
For the first half of the year, net income increased 21.2% to $119.7 million for the first half of 2014 from $98.8 million for the first half of 2013. Earnings per diluted share increased 20.9% to $1.39 for the first six months of 2014 from $1.15 for the same period last year. Old Dominion's operating ratio improved to 84.7% for the first six months of 2014 compared with 85.5% for the first six months of 2013.
"Old Dominion's growth accelerated in the second quarter, driving record results for our quarterly revenue, tonnage and earnings," commented David S. Congdon, President and Chief Executive Officer of Old Dominion. "In addition, we improved our operating ratio by 100 basis points over the prior-year period to 82.5%, which is the best quarterly operating ratio in our company's history. We believe our results reflect continued growth in the company's market share as customers respond to the value of our industry-leading service. For both the first and second quarters of 2014, we achieved 99% on-time delivery performance and maintained our cargo claims ratio at a historical low of 0.26%.
"The improvement in our operating ratio for the second quarter and first half of 2014 was primarily attributable to increases in our freight density and yield. Our LTL tonnage increased 14.9% for the second quarter, driven by increases in LTL shipments of 12.0% and LTL weight per shipment of 2.6%. LTL revenue per hundredweight for the second quarter increased 3.7%, or 3.6% excluding fuel surcharges, despite the impact of our increased weight per shipment and a 1.4% decline in our average length of haul.
"Old Dominion relocated two service centers during the second quarter to expanded facilities, while continuing to invest in equipment and technology. Capital expenditures totaled $138.8 million for the second quarter of 2014 and $218.6 million for the first half of the year. We anticipate capital expenditures for 2014 to be approximately $375 million, including planned expenditures of $132 million for real estate and expansion projects at existing facilities, $196 million for tractors, trailers and other equipment and $47 million for technology and other assets. We expect to fund our 2014 capital expenditures primarily with our cash flow from operations. At the end of the second quarter, cash and cash equivalents totaled $19.8 million and our ratio of debt to total capitalization was 12.9% compared with 16.9% at June 30, 2013."