Old Dominion Freight Line (ODFL)

Risks

• If we are unable to successfully execute our growth strategy, and develop, market and consistently deliver high-quality services that meet customer expectations, our business and future results of operations may suffer.
• Changes in our relationships with significant customers, including the loss or reduction in business from one or more of them, could have an adverse impact on our business.
• Insurance and claims expenses could significantly reduce our profitability.
• Reductions in the available supply or increases in the cost of new equipment may adversely impact our profitability and cash flows.
• Our growth may be limited by the availability and cost of third-party transportation used to supplement our workforce and equipment needs.
• We may be adversely impacted by fluctuations in the availability and price of diesel fuel.
• Our results of operations may be affected by seasonal factors, harsh weather conditions and disasters.
• A decrease in the demand and value of used equipment may impact our results of operations.
• We may be unable to successfully consummate and integrate acquisitions.
• Anti-terrorism measures and terrorist events may disrupt our business.
• We operate in a rapidly evolving and highly competitive industry, and our business will suffer if we are unable to adequately address potential downward pricing pressures and other factors that may adversely affect our operations and profitability.
• Our customers’ and suppliers’ businesses may be impacted by various economic factors such as recessions, downturns in the economy, global uncertainty and instability, changes in U.S. social, political, and regulatory conditions and/or a disruption of financial markets, which may decrease demand for our services or increase our costs.
• If our employees were to unionize, our operating costs would increase and our ability to compete would be impaired.
• If we are unable to retain our key employees, or if we do not continue to effectively execute our succession plan, our financial condition, results of operations and liquidity could be adversely affected.
• Our information technology systems are subject to cyber and other risks, some of which are beyond our control, which could have a material adverse effect on our business, results of operations and financial position.
• If we do not adapt to new technologies implemented by our competitors in the LTL and transportation industry, our business could suffer.
• Failure to keep pace with developments in technology, any disruption to our technology infrastructure, or failures of essential services upon which our technology platforms rely could cause us to incur costs or result in a loss of business, which may have a material adverse effect on our results of operations and financial condition.
• The FMCSA’s CSA initiative could adversely impact our ability to hire qualified drivers, meet our growth projections and maintain our customer relationships, each of which could adversely impact our results of operations.
• We operate in a highly regulated industry, and increased costs of compliance with, or liability for violation of, existing or future regulations could have a material adverse effect on our business.
• We are subject to various governmental laws and regulations, and costs of compliance with, liabilities under, or violations of, existing or future governmental laws or regulations could adversely affect our business.
• We may be adversely affected by legal, regulatory, or market responses to climate change concerns.
• Healthcare legislation and other mandated benefits-related coverage may increase our costs for employee healthcare and benefits and reduce our future profitability.
• We are subject to legislative, regulatory, and legal developments involving taxes.
• The Congdon family controls a large portion of our outstanding common stock.
• There can be no assurance of our ability to declare and pay cash dividends in future periods.
• The amount and frequency of our stock repurchases may fluctuate.
• The market value of our common stock has been and may in the future be volatile, and could be substantially affected by various factors.
• Our articles of incorporation, our bylaws and Virginia law contain provisions that could discourage, delay or prevent a change in our control or our management.