Old Dominion Freight Line, Inc. (NASDAQ: ODFL) announced that revenue for 2014 increased 19.3% to $2.79 billion from $2.34 billion for 2013, and net income grew 29.8% for 2014 to $267.5 million from $206.1 million for 2013.
For the fourth quarter, revenue increased 21.7% to $721.0 million from $592.5 million for the same period in 2013. Net income rose 48.2% to $69.9 million for the fourth quarter of 2014 from $47.2 million for the comparable quarter in 2013. Earnings per diluted share were $0.81 for the fourth quarter of 2014, an increase of 47.3% from $0.55 for the same prior-year quarter. The company's operating ratio improved to 84.4% for the fourth quarter of 2014 from 87.0% for the fourth quarter of 2013.
Earnings per diluted share for 2014 increased 29.7% to $3.10 from $2.39 for 2013. Old Dominion's operating ratio improved to 84.2% for 2014 from 85.5% for 2013.
"Old Dominion completed another year of outstanding performance with fourth-quarter results that included accelerated growth rates for revenue, tonnage and earnings per diluted share," commented David S. Congdon, President and Chief Executive Officer of Old Dominion. "Our revenue growth once again reflects increased market share, which we attribute to our employees' ability to provide superior on-time and claims-free service at a fair and equitable price.
“The combination of revenue growth and the 260 basis-point improvement in our operating ratio contributed to the 47.3% improvement in earnings per diluted share for the fourth quarter of 2014. In addition, our earnings per diluted share benefited from the repurchase of $5.5 million of common stock under our two-year, $200 million stock repurchase program that we announced in November 2014.
"The Company's strong financial results for the quarter reflect improved freight density and yield. LTL tons per day increased 19.8% for the fourth quarter on a 17.1% increase in shipments and a 2.3% increase in weight per shipment. LTL revenue per hundredweight increased 1.5% despite the decline in fuel surcharge rates, decrease in length of haul and increase in weight per shipment, each of which generally has the effect of lowering this yield metric. Excluding fuel surcharges, revenue per hundredweight increased 3.0%, as the pricing environment has remained favorable.
"Our ability to increase market share and grow tonnage in 2014 was made possible by our commitment to providing superior service while also continuing to invest in our network, equipment, technology and, most importantly, our people. To meet the demands of our existing business and anticipated growth, we expanded our workforce significantly during 2014 with the addition of 2,370 full-time employees. While there are typically increased costs and reduced productivity associated with new employees, we believe our education and training programs help to maximize our employees' ability to contribute to our long-term success.