Name: Old Dominion Freight Line Inc. (NASDAQ:ODFL) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Old Dominion Freight Line Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	1,377,159)	1,034,375)	672,682)	615,518)	605,668)
Depreciation and amortization	276,066)	259,899)	261,267)	253,681)	230,357)
Noncash lease expense	16,658)	14,890)	11,963)	11,066)	—)
(Gain) loss on disposal of property and equipment	(3,425)	(563)	736)	6,066)	477)
Deferred income taxes	62,008)	30,165)	(41,011)	13,157)	57,709)
Share-based compensation	15,893)	15,039)	11,337)	16,717)	4,894)
Customer and other receivables, net	(13,009)	(125,562)	(49,045)	30,330)	(34,666)
Prepaid expenses and other assets	(24,714)	(38,387)	(1,722)	(16,807)	(12,003)
Accounts payable	23,756)	14,008)	(1,743)	(8,264)	4,789)
Compensation, benefits and other accrued liabilities	(11,202)	32,437)	72,928)	3,263)	47,552)
Claims and insurance accruals	5,464)	10,963)	(1,459)	5,297)	8,142)
Income taxes, net	6,480)	(27,929)	8,750)	32,612)	(17,813)
Other liabilities	(39,552)	(6,729)	(11,659)	21,252)	5,010)
Changes in assets and liabilities	(52,777)	(141,199)	16,050)	67,683)	1,011)
Adjustments to reconcile net income to net cash provided by operating activities	314,423)	178,231)	260,342)	368,370)	294,448)
Net cash provided by operating activities	1,691,582)	1,212,606)	933,024)	983,888)	900,116)
Purchase of property and equipment	(775,148)	(550,077)	(225,081)	(479,325)	(588,292)
Proceeds from sale of property and equipment	22,096)	19,548)	3,690)	5,686)	6,983)
Purchase of short-term investments	(163,720)	(359,389)	(360,160)	—)	—)
Proceeds from maturities of short-term investments	369,300)	435,130)	29,988)	—)	—)
Other investing activities, net	—)	(500)	(100)	—)	918)
Net cash used in investing activities	(547,472)	(455,288)	(551,663)	(473,639)	(580,391)
Proceeds from issuance of long-term debt	—)	—)	99,923)	—)	—)
Principal payments under debt agreements	—)	—)	(45,000)	—)	(50,000)
Dividends paid	(134,484)	(92,366)	(71,023)	(54,552)	(42,566)
Payments for share repurchases	(1,277,219)	(536,465)	(364,057)	(240,960)	(163,265)
Forward contract for accelerated share repurchases	—)	(62,500)	—)	—)	—)
Other financing activities, net	(8,659)	(4,853)	(3,345)	(1,448)	(1,074)
Net cash used in financing activities	(1,420,362)	(696,184)	(383,502)	(296,960)	(256,905)
Increase (decrease) in cash and cash equivalents	(276,252)	61,134)	(2,141)	213,289)	62,820)
Cash and cash equivalents at beginning of year	462,564)	401,430)	403,571)	190,282)	127,462)
Cash and cash equivalents at end of year	186,312)	462,564)	401,430)	403,571)	190,282)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The cash flow profile from 2018 to 2022 demonstrates a period of significant earnings expansion and an increasingly aggressive capital return strategy. Operating cash flow has grown consistently, providing the necessary liquidity to fund both capital expenditures and substantial shareholder distributions.

Operating Cash Flow Trends: Net income exhibited a strong upward trajectory, growing from 605.67 million in 2018 to 1.377 billion in 2022. This growth is mirrored in the net cash provided by operating activities, which increased from 900.12 million in 2018 to 1.692 billion in 2022. The consistency between net income growth and operating cash flow suggests high quality of earnings. Depreciation and amortization remained relatively stable, scaling modestly from 230.36 million to 276.07 million over the period, indicating a steady replacement cycle for assets.
Investing Activities and Capital Expenditure: Investment in property and equipment remained a primary use of cash, with expenditures fluctuating between 225.08 million in 2020 and a peak of 775.15 million in 2022. Net cash used in investing activities stayed consistently negative, averaging approximately 516 million annually. Starting in 2020, the company increased its utilization of short-term investments to manage excess liquidity, evidenced by significant purchase and maturity cycles between 2020 and 2022.
Financing Activities and Shareholder Distributions: There is a pronounced shift toward aggressive shareholder returns. Dividends paid grew steadily from 42.57 million in 2018 to 134.48 million in 2022. More striking is the escalation in share repurchases, which rose from 163.27 million in 2018 to 1.277 billion in 2022. This acceleration in buybacks led to a sharp increase in net cash used in financing activities, reaching 1.42 billion in 2022. Debt activity remained minimal, with a small issuance of 99.92 million in 2020 and occasional principal payments, indicating a preference for internal funding over leverage.
Liquidity Position: Cash and cash equivalents reached a peak of 462.56 million at the end of 2021. However, the substantial increase in share repurchases in 2022 resulted in a net decrease in cash and cash equivalents of 276.25 million for that year, ending 2022 with a balance of 186.31 million. Despite this reduction, the strong operating cash flow suggests the company maintains the capacity to support its current capital allocation strategy.

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