Old Dominion Freight Line, Inc.

Good day and welcome to the Old Dominion Freight Line Second Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Drew Anderson. Please go ahead.

Thank you. Good morning, and welcome to the second quarter 2022 conference call for Old Dominion Freight Lines. Today's call is being recorded and will be available for replay beginning today and through August 3rd, 2022 by dialing 1-877-344-7529, access code 716-3281. 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, 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 yourself 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 over to the company's President and Chief Executive Officer, Mr. Greg Gant. Please go ahead, sir.

Good morning, and welcome to our second quarter conference call. With me on the call today is Adam Satterfield, our CFO. After some brief remarks, we will be glad to take your questions. I am pleased to report that the OD team delivered strong, profitable growth during the second quarter, which resulted in new company records for revenue and profitability. Our revenue increased 26.4% to $1.7 billion, while earnings per diluted share increased 42.9% to $3.30. We also improved our operating ratio by 280 basis points to 69.5%. This is the first time in our company's history that we have produced a sub-70% quarterly operating ratio. We achieved these results by continuing to execute on our long-term strategic plan, which has guided us for many years and throughout many economic cycles. The disciplined execution of the business fundamentals that form this plan have supported our ability to double our market share over the past 10 years. We are confident That continued execution on this plan positions us to win additional market share over the next 10 years. The foundation for our ability to win market share is our relentless focus on providing superior service at a fair price. Our on-time service performance was 99% in the second quarter, while our cargo claims ratio improved to 0.1%. These service metrics reflect the efforts of our OD family of employees who maintain a steadfast commitment to delivering value to our customers each and every day. It appears that service quality is becoming even more important to customers when selecting a carrier, which is why demand for our service has remained strong. This is a trend that began to develop with the economic recovery during the second half of 2020. and it continues today as many shippers are still struggling with supply chain issues. As a result, we believe our customer relationships have strengthened as we do our part to help our manufacturing customers keep their facilities running smoothly while helping our retail customers keep products on the shelf and available for sale. Our value proposition also includes having sufficient capacity to support our customers when they need it the most. We currently have approximately 15% to 20% excess capacity within our service center network, and we expect to open multiple new facilities during the second half of this year. These new facilities, as well as various other expansion projects that we expect to complete, should increase the amount of our excess capacity towards our longer-term target of 25%. We remain committed to the ongoing expansion of our service center network, which we believe is important regardless of the short-term macroeconomic outlook. Expanding service center capacity can take a significant amount of time, which is why we have historically been proactive with respect to our expansion efforts. This unique strategy has created the capacity advantage for us in the marketplace, which becomes more apparent to shippers in tight environments like we have seen the past couple of years. With over $700 million of year-to-date revenue growth through June, we are on pace to exceed $1 billion of revenue growth for the second year in a row. We simply could not have achieved these types of numbers without the consistent investment in our service center capacity, as well as the continued investment in our fleet, technology, and the training and education of our OD family of employees. Our team has shown tremendous flexibility over the past couple of years in response to significant changes in our business level. And I am confident that this team will continue to build on its success. We have created one of the strongest records for long-term growth and profitability in the LTL industry by executing on our long-term strategic plan. By providing superior service at a fair price and having the capacity to stay ahead of our growth curve, we believe we are better positioned than any other carrier to produce long-term profitable growth while increasing shareholder value. Thank you for joining us this morning, and now Adam will discuss our second quarter financial results in greater detail.