Old Dominion Freight Line, Inc.

Please stand by. I'll now turn the call over to Drew Anderson. Please go ahead.

Thank you. Good morning and welcome to the fourth quarter 2020 conference call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through February 12, 2021 by dialing 719-457-0820. The replay passcode is 579-8600. The replay of the webcast may also be accessed for 30 days at the company's website. This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Old Dominion's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by the important factors among others, that are set forth in Old Dominion's filings with the Securities and Exchange Commission and in this morning's news release. And consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. As a final note, before we begin, we welcome your questions today, but we do ask in fairness to all that you limit yourselves to just a few questions at a time before returning to the queue. Thank you for your cooperation. At this time for opening remarks, I would like to turn the conference call over to the company's president and chief executive officer, Mr. Greg Gant. Please go ahead, sir.

Good morning and welcome to our fourth quarter conference call. With me on the call today is Adam Satterfield, our CFO. After some brief remarks, we'll be glad to take your questions. Old Dominion had a strong fourth quarter that included an increase in revenue and improvement in our operating ratio to 76.3%, which was a new fourth quarter company record. This combination led to the 34.2% increase in our earnings per diluted share. For the year, we also produced a company record operating ratio of 77.4% as well as an 11.4% increase in earnings per diluted share. While I am really proud of these financial results, I am more proud of the OD family of employees who worked through tough conditions in 2020 to generate this success. Despite the operating challenges created by the pandemic and rapid changes in volumes, our team established a new record for our cargo claims ratio at 0.1%, while on-time service continued at 99%. These factors contributed to us winning the Mastio Quality Award for the 11th straight year. Our team is committed to delivering superior service at a fair price regardless of the circumstances, which is why we have often stated that the investment in our OD family is the most important investment we can make. This includes many things such as strong pay and benefits packages, as well as training programs and advancement opportunities. In addition to our non-executive employees, their contributions during the pandemic we made special bonus payments in March and December 2020 that together total approximately $20 million. These factors, as well as a strong family culture, have allowed us to consistently attract and retain talented employees to support our growth initiatives. This is important as we intend to add to our OD family in 2021 by hiring additional employees to further increase the capacity of our workforce. With the demand improvement, environment improving, we also intend to add to the capacity of both our service center network and our fleet in 2021. After opening eight new facilities in 2020 and one more in January of this year, we are currently operating 245 service centers and have approximately 30% of excess capacity within the network to support additional growth. We plan to open two to three additional locations in the first quarter with several more during the remainder of the year. We believe these additional service centers, as well as the expansion of some existing facilities, will increase the overall average capacity within our network to ensure that it is not a limiting factor to growth over the next few years. While we acknowledge that certain uncertainties with the domestic economy may continue, we believe that Old Dominion is uniquely positioned to win additional market share in 2021. We also believe we can drive our operating ratio even lower than the 77.4% record that we established in 2020. We have long maintained that the key components for long-term improvement in our operating ratio are improvements in both density and yield, both of which generally require a favorable macro environment. Our current trends indicate that we can improve on both of these measures in 2021 by remaining fully committed to the core business strategies that put us in our strong competitive position. Disciplined execution of our long-term strategic plan over the course of many years has differentiated us from our competition while also creating long-term record of profitable growth. We are encouraged by our recent revenue trend and believe that we can take advantage of the momentum in our business to increase our earnings and shareholder value in 2021. Thanks for joining us this morning and now Adam will discuss our Fourth quarter financial results in greater detail.