Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - C. H. ROBINSON WORLDWIDE, INC. | d247472d8k.htm |
| EX-99.2 - EARNINGS CONFERENCE CALL SLIDES - C. H. ROBINSON WORLDWIDE, INC. | d247472dex992.htm |
Exhibit 99.1
C.H. Robinson Worldwide, Inc.
14701 Charlson Road
Eden Prairie, Minnesota 55347
Chad Lindbloom, chief financial officer (952) 937-7779
Angie Freeman, vice president, investor relations (952) 937-7847
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS THIRD QUARTER RESULTS
MINNEAPOLIS, October 25, 2011 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended September 30, 2011.
Summarized financial results for the quarter ended September 30 are as follows (dollars in thousands, except per share data):
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
| 2011 | 2010 | % change |
2011 | 2010 | % change |
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| Total revenues |
$ | 2,694,928 | $ | 2,420,357 | 11.3 | % | $ | 7,768,062 | $ | 6,948,956 | 11.8 | % | ||||||||||||
| Net revenues: |
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| Transportation |
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| Truck |
$ | 321,366 | $ | 284,200 | 13.1 | % | $ | 930,168 | $ | 785,782 | 18.4 | % | ||||||||||||
| Intermodal |
10,538 | 9,188 | 14.7 | % | 31,000 | 27,109 | 14.4 | % | ||||||||||||||||
| Ocean |
17,881 | 17,057 | 4.8 | % | 49,851 | 44,049 | 13.2 | % | ||||||||||||||||
| Air |
9,940 | 11,453 | -13.2 | % | 30,560 | 31,559 | -3.2 | % | ||||||||||||||||
| Other logistics services |
14,752 | 14,666 | 0.6 | % | 43,665 | 42,857 | 1.9 | % | ||||||||||||||||
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| Total transportation |
374,477 | 336,564 | 11.3 | % | 1,085,244 | 931,356 | 16.5 | % | ||||||||||||||||
| Sourcing |
33,089 | 31,921 | 3.7 | % | 101,017 | 107,673 | -6.2 | % | ||||||||||||||||
| Payment services |
15,500 | 14,095 | 10.0 | % | 45,012 | 40,785 | 10.4 | % | ||||||||||||||||
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| Total net revenues |
423,066 | 382,580 | 10.6 | % | 1,231,273 | 1,079,814 | 14.0 | % | ||||||||||||||||
| Operating expenses |
239,101 | 216,247 | 10.6 | % | 710,498 | 621,019 | 14.4 | % | ||||||||||||||||
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| Operating income |
183,965 | 166,333 | 10.6 | % | 520,775 | 458,795 | 13.5 | % | ||||||||||||||||
| Net income |
$ | 114,347 | $ | 102,627 | 11.4 | % | $ | 322,398 | $ | 283,865 | 13.6 | % | ||||||||||||
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| Diluted EPS |
$ | 0.70 | $ | 0.62 | 12.9 | % | $ | 1.95 | $ | 1.71 | 14.0 | % | ||||||||||||
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C.H. Robinson Worldwide, Inc.
October 25, 2011
Page 2
Our truck net revenues, which consist of truckload and less-than-truckload (“LTL”) services, increased 13.1 percent in the third quarter of 2011. Our truckload volumes increased approximately four percent in the third quarter of 2011 compared to the third quarter of 2010. Our truckload net revenue margin decreased slightly in the third quarter of 2011 compared to the third quarter of 2010. Excluding the estimated impacts of the change in fuel, our truckload pricing to our customers increased approximately four percent in the third quarter of 2011 compared to the third quarter of 2010. Our truckload transportation costs increased approximately three percent, excluding the estimated impacts of the change in fuel. Our LTL net revenues increased approximately 28 percent. The increase was driven by an increase in total shipments of approximately 15 percent and pricing increases.
Our intermodal net revenue increased 14.7 percent in the third quarter of 2011. This was due to increased volumes and price increases.
Our ocean transportation net revenues increased 4.8 percent in the third quarter of 2011, driven primarily by increased volumes.
Our air transportation net revenue decreased 13.2 percent in the third quarter of 2011 due to decreased volumes and net revenue margin compression.
Other logistics services, which include transportation management fees, customs, warehousing, and small parcel, increased 0.6 percent in the third quarter of 2011. Increases in our management fee and customs net revenues were largely offset by declines in the other services in this category.
For the third quarter, our Sourcing revenues increased 5.0 percent. Sourcing net revenues increased 3.7 percent to $33.1 million in 2011 from $31.9 million in 2010, primarily driven by a change in our mix of business due to an increase in value-added services. On September 26, 2011, we acquired Timco Worldwide, a leading melon category provider, in Davis, California.
Our Payment Services revenues increased 10.0 percent in the third quarter of 2011 primarily due to increases in some fees that are impacted by fuel prices and an increase in MasterCard® transactions.
For the third quarter, operating expenses increased 10.6 percent to $239.1 million in 2011 from $216.2 million in 2010. This was due to an increase of 10.0 percent in personnel expense and an increase of 12.3 percent in other selling, general, and administrative expenses. For the third quarter, operating expenses as a percentage of net revenues were 56.5 percent in both 2011 and 2010.
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 36,000 customers through a network of 235 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 49,000 transportation providers worldwide.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies
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C.H. Robinson Worldwide, Inc.
October 25, 2011
Page 3
concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Conference Call Information:
C.H. Robinson Worldwide Third Quarter 2011 Earnings Conference Call
Tuesday, October 25, 2011 5:00 pm. Eastern Time
The call will be limited to 60 minutes, including questions and answers.
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com
To participate in the conference call by telephone, please call ten minutes early by dialing: 888-549-7750. Callers should reference the conference ID, which is 4478446
Webcast replay available through Investor Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on October 29: 800-406-7325; passcode: 4478446#
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C.H. Robinson Worldwide, Inc.
October 25, 2011
Page 4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)
| Three months ended September 30, |
Nine months ended September 30, |
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| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues: |
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| Transportation |
$ | 2,280,208 | $ | 2,026,154 | $ | 6,540,266 | $ | 5,629,334 | ||||||||
| Sourcing |
399,220 | 380,108 | 1,182,784 | 1,278,837 | ||||||||||||
| Payment Services |
15,500 | 14,095 | 45,012 | 40,785 | ||||||||||||
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| Total revenues |
2,694,928 | 2,420,357 | 7,768,062 | 6,948,956 | ||||||||||||
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| Costs and expenses: |
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| Purchased transportation and related services |
1,905,731 | 1,689,590 | 5,455,022 | 4,697,978 | ||||||||||||
| Purchased products sourced for resale |
366,131 | 348,187 | 1,081,767 | 1,171,164 | ||||||||||||
| Personnel expenses |
178,117 | 161,947 | 532,171 | 462,793 | ||||||||||||
| Other selling, general, and administrative expenses |
60,984 | 54,300 | 178,327 | 158,226 | ||||||||||||
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| Total costs and expenses |
2,510,963 | 2,254,024 | 7,247,287 | 6,490,161 | ||||||||||||
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| Income from operations |
183,965 | 166,333 | 520,775 | 458,795 | ||||||||||||
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| Investment and other income |
50 | 149 | 601 | 986 | ||||||||||||
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| Income before provision for income taxes |
184,015 | 166,482 | 521,376 | 459,781 | ||||||||||||
| Provision for income taxes |
69,668 | 63,855 | 198,978 | 175,916 | ||||||||||||
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| Net income |
$ | 114,347 | $ | 102,627 | $ | 322,398 | $ | 283,865 | ||||||||
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| Net income per share (basic) |
$ | 0.70 | $ | 0.62 | $ | 1.96 | $ | 1.72 | ||||||||
| Net income per share (diluted) |
$ | 0.70 | $ | 0.62 | $ | 1.95 | $ | 1.71 | ||||||||
| Weighted average shares outstanding (basic) |
163,948 | 164,691 | 164,512 | 164,968 | ||||||||||||
| Weighted average shares outstanding (diluted) |
164,471 | 165,576 | 165,094 | 165,985 | ||||||||||||
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C.H. Robinson Worldwide, Inc.
October 25, 2011
Page 5
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
| September 30, 2011 |
December 31, 2010 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 382,737 | $ | 398,607 | ||||
| Available-for-sale securities |
— | 9,290 | ||||||
| Receivables, net |
1,238,079 | 1,036,070 | ||||||
| Other current assets |
35,932 | 37,801 | ||||||
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| Total current assets |
1,656,748 | 1,481,768 | ||||||
| Property and equipment, net |
114,806 | 114,333 | ||||||
| Intangible and other assets |
407,884 | 399,598 | ||||||
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| Total Assets |
$ | 2,179,438 | $ | 1,995,699 | ||||
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| Liabilities and stockholders’ investment |
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| Current liabilities: |
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| Accounts payable and outstanding checks |
$ | 740,977 | $ | 627,561 | ||||
| Accrued compensation |
105,439 | 96,991 | ||||||
| Other accrued expenses |
50,293 | 47,055 | ||||||
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| Total current liabilities |
896,709 | 771,607 | ||||||
| Long term liabilities |
14,505 | 20,024 | ||||||
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| Total liabilities |
911,214 | 791,631 | ||||||
| Total stockholders’ investment |
1,268,224 | 1,204,068 | ||||||
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| Total liabilities and stockholders’ investment |
$ | 2,179,438 | $ | 1,995,699 | ||||
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C.H. Robinson Worldwide, Inc.
October 25, 2011
Page 6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands, except operational data)
| Nine months ended September 30, |
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| 2011 | 2010 | |||||||
| Operating activities: |
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| Net income |
$ | 322,398 | $ | 283,865 | ||||
| Stock-based compensation |
32,074 | 22,568 | ||||||
| Depreciation and amortization |
23,714 | 22,113 | ||||||
| Provision for doubtful accounts |
6,916 | 11,442 | ||||||
| Other non-cash expenses, net |
94 | 10,782 | ||||||
| Net changes in operating elements |
(91,641 | ) | (213,634 | ) | ||||
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| Net cash provided by operating activities |
293,555 | 137,136 | ||||||
| Investing activities: |
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| Purchases of property and equipment |
(17,402 | ) | (14,000 | ) | ||||
| Purchases and development of software |
(11,679 | ) | (7,715 | ) | ||||
| Purchases of available-for-sale securities |
— | (10,752 | ) | |||||
| Sales/maturities of available-for-sale securities |
9,311 | 28,230 | ||||||
| Restricted cash |
5,000 | (5,000 | ) | |||||
| Other |
161 | (12 | ) | |||||
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| Net cash used for investing activities |
(14,609 | ) | (9,249 | ) | ||||
| Financing activities: |
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| Payment of contingent purchase price |
(4,318 | ) | — | |||||
| Net repurchases of common stock |
(154,982 | ) | (96,822 | ) | ||||
| Excess tax benefit on stock-based compensation |
12,967 | 9,497 | ||||||
| Cash dividends |
(146,318 | ) | (126,709 | ) | ||||
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| Net cash used for financing activities |
(292,651 | ) | (214,034 | ) | ||||
| Effect of exchange rates on cash |
(2,165 | ) | (1,728 | ) | ||||
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| Net change in cash and cash equivalents |
(15,870 | ) | (87,875 | ) | ||||
| Cash and cash equivalents, beginning of period |
398,607 | 337,308 | ||||||
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| Cash and cash equivalents, end of period |
$ | 382,737 | $ | 249,433 | ||||
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| As of September 30, | ||||||||
| 2011 | 2010 | |||||||
| Operational Data: |
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| Employees |
8,120 | 7,589 | ||||||
| Branches |
235 | 232 | ||||||
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