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.

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).

Net Income: Net income demonstrated a consistent upward trend over the five-year period, rising from approximately $606 million in 2018 to nearly $1.38 billion in 2022. Notably, there was a marked acceleration in growth between 2020 and 2021, followed by a continued increase in 2022.
Depreciation and Amortization: Depreciation and amortization expenses moderately increased from about $230 million in 2018 to approximately $276 million in 2022, reflecting ongoing investment in property and equipment assets.
Noncash Lease Expense: Introduced in 2019, noncash lease expense showed a gradual increase each year, reaching nearly $16.7 million by 2022, indicating the growing recognition of lease obligations under accounting standards.
Gain/Loss on Disposal of Property and Equipment: The company experienced gains on disposal in the early years, peaking in 2019 at around $6.1 million, but this swung to losses in 2021 and 2022, with losses increasing to approximately $3.4 million by 2022.
Deferred Income Taxes: Deferred income taxes fluctuated significantly, showing positive values in 2018, 2019, 2021, and 2022, but a negative figure in 2020. This variability suggests changes in tax positions or timing differences during these years.
Share-based Compensation: Share-based compensation expenses showed some variability but maintained an overall increasing trajectory from about $4.9 million in 2018 to nearly $15.9 million in 2022, reflecting ongoing use of equity incentives.
Changes in Working Capital Items: Customer and other receivables fluctuated significantly, with notable negative changes in 2018, 2020, and 2021, suggesting variability in collections. Prepaid expenses and other assets generally decreased, with large negative adjustments in 2021 and 2022. Accounts payable changes oscillated but showed positive increases in 2021 and 2022. Compensation-related accrued liabilities saw erratic movements, including a substantial negative outflow in 2022. Claims and insurance accruals also varied with positive changes in some years and negative in others. Overall changes in assets and liabilities peaked in 2019 positively but reverted to notable negative adjustments in the final two years.
Operating Activities: Adjustments to reconcile net income to net cash from operating activities varied, with a peak in 2019 and a decline in 2021, followed by a recovery in 2022. Net cash provided by operating activities showed steady growth throughout the period, rising from approximately $900 million in 2018 to about $1.69 billion in 2022, indicating strong operating cash flow generation.
Investing Activities: Capital expenditures, as indicated by purchases of property and equipment, varied widely. After an initially high spend in 2018 and 2019, there was a significant decline in 2020, followed by increases in 2021 and 2022, peaking at about $775 million. Proceeds from the sale of property and equipment fluctuated but generally increased. Short-term investment activity began in 2020, with substantial purchases in 2020 and 2021, followed by partial liquidation in subsequent years. Net cash used in investing activities exhibited volatility but remained negative throughout, reflecting ongoing investment outflows.
Financing Activities: Financing activities revealed limited issuance of long-term debt, with notable proceeds only in 2020. Principal debt repayments occurred in 2018 and 2020. Dividends paid increased consistently year-over-year, from about $42.6 million in 2018 to approximately $134.5 million in 2022. Share repurchases markedly increased, particularly in 2021 and 2022, with expenditures reaching over $1.27 billion in 2022. Other financing activities remained relatively minor but consistently negative. Overall, net cash used in financing activities escalated significantly, especially in 2022.
Cash and Cash Equivalents: Cash and cash equivalents saw notable growth until 2021, increasing from about $190 million at the end of 2018 to over $462 million by the end of 2021. However, a substantial decline occurred in 2022, with the year-end balance dropping to approximately $186 million. The increase or decrease in cash each year corresponded closely with net cash flows from operating, investing, and financing activities.

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Old Dominion Freight Line Inc. (NASDAQ:ODFL)

Cash Flow Statement