Fresh off a bang-up second quarter, LTL carrier Old Dominion Freight Line plans to offer over 2.4 million shares of its common stock at a price of $28.65 per share.
Of the shares being offered, shareholders are putting up 2.07 million shares, with 370,000 shares are being offered by Old Dominion, the company said. In addition, Old Dominion has granted the underwriters a thirty-day option to purchase up to an additional 366,000 shares of its common stock to cover over-allotments, if any. Proceeds gained from this stock sale are earmarked to reduce debt, the company said.
The carrier added that shareholders putting stock up for sale include several company executives and members of their families: Earl Congdon, chairman and CEO; John Congdon, vice-chairman; David Congdon, president and COO, plus other members of the Congdon family and related Trusts.
The timing of the stock sale couldn’t be better as Old Dominion is having a banner year. For the second quarter, net income rose 60.7% to over $10.4 million on a 23.4% increase in revenue to $202.1 million compared to the same period in 2003. For the first half of 2004, Old Dominion said net income jumped 50.4% to $16.1 million on a 21.5% boost in revenue to $384.8 million compared to the first half of 2003.
The carrier said revenue growth for the second quarter reflected stronger volume than anticipated and improved pricing. LTL tons for the quarter increased 18% compared with the same period in 2003, while LTL shipments grew 12.9% and LTL weight per shipment increased 4.4%. That translated into a 2.4% increase in LTL revenue per hundredweight, with LTL revenue per shipment rising 7% for the second quarter, Old Dominion said.