For the first nine months of 2013, revenue was $1.75 billion, up 9.0% from $1.60 billion for the first nine months of 2012. Net income increased 22.3% to $159.0 million for the first nine months of 2013 from $130.0 million for the same period in 2012, while earnings per diluted share grew 21.9% to $1.84 from $1.51. The Company’s operating ratio improved to 85.0% for the first nine months of 2013 from 86.4% for the first nine months of 2012.
David S. Congdon, President and Chief Executive Officer of Old Dominion, commented, “Old Dominion continued to produce strong profitable growth during the third quarter of 2013 with an 18.6% increase in earnings per diluted share. Our results reflect our ongoing ability to win market share and increase revenue despite a period of slow economic growth. In addition, we maintained our pricing philosophy and focus on operating efficiencies, which contributed to the 120 basis-point improvement in our industry-leading operating ratio. Our success demonstrates the demand in our industry for superior service at a fair and equitable price, which is the value proposition we provide.
“Our revenue growth for the quarter was driven by a 9.6% increase in total tons, or a 7.9% increase in tons per day, and a 3.3% increase in revenue per hundredweight as compared with the third quarter of 2012. Revenue per hundredweight, excluding fuel surcharges, increased 3.6% and highlights the effectiveness of our yield management process, especially given the negative impact on this metric exerted by the 0.1% decline in average length of haul and 0.8% increase in weight per shipment. The combination of yield improvement and increased density led to the improvement in our operating ratio to 84.1%, which is a new third quarter record for our Company.
“Old Dominion continued to expand the capabilities of its service center network during the third quarter, as we opened new service centers in Crest Hill, Illinois and Rapid City, South Dakota. We also continued to add network capacity in anticipation of future growth by relocating and expanding three service centers during the quarter. Our capital expenditures, net of proceeds from sales, were $72.1 million for the quarter and $219.8 million for the first nine months of 2013 and were primarily funded by cash flow from operations. As a result, our ratio of total debt to capitalization decreased to 14.8% at September 30, 2013 from 22.3% at the end of the third quarter of 2012. We expect net capital expenditures for 2013 to be approximately $305 million, which includes $130 million for real estate and expansion projects at existing facilities; $150 million for tractors, trailers and other equipment; and $25 million for technology and other assets.”