Old Dominion Freight Line, Inc.

Good day and welcome to the Old Dominion Freight Line first quarter 2025 earnings 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 one on a touch tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Jack Atkins, Director of Finance and Investor Relations. Please go ahead.

Thank you, Nick, and good morning, everyone. Welcome to the first quarter 2025 conference call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through April 30th, 2025 by dialing 1-877-344-7529, access code 3942957. 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. 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 ask that you limit yourself to just one question at a time before returning to the queue. At this time for opening remarks, I'd like to turn the conference over to our President and Chief Executive Officer, Marty Freeman. Marty, please go ahead, sir.

Good morning, all, and welcome to our first quarter conference call. With me on the call today is Adam Satterfield, our CFO. After some brief remarks, we will be more than happy to take your questions. Old Dominion's first quarter financial results reflect continued softness in the domestic economy, and our revenue and earnings per diluted share both declined as a result. We are pleased, however, that our yields continue to improve and our market share remain relatively consistent. In addition, our OD family of employees continue to provide our customers with best in class service while also operating efficiently. While we have discussed softness in the domestic economy, along with a challenging operating environment on these calls for the past couple of years, we have continued to affirm our team's commitment to executing on the fundamental elements of our long-term strategic plan. While that absolutely continues to be the case, we want you to understand that our team also continues to focus on maximizing our operating efficiencies and reducing our discretionary spending. in an effort to protect our operating ratio. Improving the operating efficiency in our network is very difficult to achieve when a reduction in density is experienced. That is why I'm proud that we improved our platform shipments per hour and P&V shipments per hour in the first quarter despite the 5% decline in our LTL shipments per day. Our team did this while also maintaining the highest level of customer service. We are pleased to once again provide 99% on-time service performance and a cargo claims ratio below 0.1%. We have strengthened our customer relationship over time by consistently providing superior service at a fair price, which has added value to our business. Importantly, our service performance also continues to support our disciplined, cost-based approach to yield management. One doesn't happen without the other, and we believe our unmatched value proposition will support our ability to win market share over the long term. As we win share, our operating density will improve and create the leverage that should help drive improvement in our operating ratio. We continue to believe that the path to long-term profitable growth and operating ratio improvement is the balance between operating density and yield management. Both of these initiatives generally require the support of a favorable economic environment. We entered this year with a degree of cautious optimism based on customer feedback and improving macroeconomic data points. Our sense was that increased clarity around taxes and regulation will lead to greater business confidence, investment, and ultimately increased freight volumes. We were encouraged to see signs of improved demand for our service in the first quarter and our LTL tons per day in both February and March tracked in line with normal seasonality. That said, there continues to be uncertainty with the economy, which can mean that a full recovery in our business trends might take additional time. While we can't control the macro environment, we will remain focused on controlling those things that we can by consistently executing on our long-term strategic plan. Our team's dedication to our customers and commitment to excellence has allowed us to win more market share than any other carrier over the past decade. We continue to believe that providing superior service, maintaining our disciplined approach to yield management,

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