Attached files
| file | filename |
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| EX-99.2 - EX-99.2 - C. H. ROBINSON WORLDWIDE, INC. | d423316dex992.htm |
| 8-K - FORM 8-K - C. H. ROBINSON WORLDWIDE, INC. | d423316d8k.htm |
Exhibit 99.1
C.H. Robinson Worldwide, Inc.
14701 Charlson Road
Eden Prairie, Minnesota 55347
Andrew Clarke, Chief Financial Officer (952) 683-3474
Tim Gagnon, Director, Investor Relations (952) 683-5007
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS SECOND QUARTER RESULTS
MINNEAPOLIS, July 19, 2017 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2017. This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the segment service line net revenues discussed below as our segments have revenues from multiple service lines. Summarized financial results are set forth in the following table (dollars in thousands, except per share data).
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2017 | 2016 | % Change |
2017 | 2016 | % Change |
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| Total revenues |
$ | 3,710,018 | $ | 3,299,741 | 12.4 | % | $ | 7,125,143 | $ | 6,373,684 | 11.8 | % | ||||||||||||
| Net revenues: |
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| Transportation |
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| Truckload |
$ | 282,718 | $ | 329,740 | -14.3 | % | $ | 586,840 | $ | 651,424 | -9.9 | % | ||||||||||||
| LTL |
102,213 | 99,778 | 2.4 | % | 199,836 | 191,071 | 4.6 | % | ||||||||||||||||
| Intermodal |
8,308 | 9,021 | -7.9 | % | 15,800 | 18,285 | -13.6 | % | ||||||||||||||||
| Ocean |
73,438 | 60,068 | 22.3 | % | 136,313 | 118,737 | 14.8 | % | ||||||||||||||||
| Air |
25,820 | 20,118 | 28.3 | % | 47,637 | 38,527 | 23.6 | % | ||||||||||||||||
| Customs |
16,311 | 11,605 | 40.6 | % | 32,389 | 22,329 | 45.1 | % | ||||||||||||||||
| Other logistics services |
29,832 | 26,171 | 14.0 | % | 57,983 | 50,194 | 15.5 | % | ||||||||||||||||
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| Total transportation |
538,640 | 556,501 | -3.2 | % | 1,076,798 | 1,090,567 | -1.3 | % | ||||||||||||||||
| Sourcing |
35,149 | 37,714 | -6.8 | % | 65,557 | 66,983 | -2.1 | % | ||||||||||||||||
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| Total net revenues |
573,789 | 594,215 | -3.4 | % | 1,142,355 | 1,157,550 | -1.3 | % | ||||||||||||||||
| Operating expenses |
391,969 | 360,468 | 8.7 | % | 772,577 | 724,851 | 6.6 | % | ||||||||||||||||
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| Income from operations |
181,820 | 233,747 | -22.2 | % | 369,778 | 432,699 | -14.5 | % | ||||||||||||||||
| Net income |
$ | 111,071 | $ | 143,090 | -22.4 | % | $ | 233,151 | $ | 262,053 | -11.0 | % | ||||||||||||
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| Diluted EPS |
$ | 0.78 | $ | 1.00 | -22.0 | % | $ | 1.65 | $ | 1.83 | -9.8 | % | ||||||||||||
“We were able to continue to achieve market share gains during the second quarter; however, our income and EPS results were disappointing and finished below our expectations,” said John Wiehoff, Chairman and Chief Executive Officer of C.H. Robinson. “Our results were significantly impacted by truckload margin compression. Purchased transportation costs increased significantly during the quarter, while much of our customer pricing is committed at relatively flat prices. We have a strong history of honoring our customer contracts while adjusting to the market conditions, and I’m confident we will adapt and execute those changes in the months to come. We continue to execute against our long-term strategic initiatives to grow and diversify. The Global Forwarding business delivered solid results in the second quarter with both double digit net revenue and operating income growth.”
Our total revenues increased 12.4 percent in the second quarter of 2017 compared to the second quarter of 2016. The increase in total revenues was driven by volume growth across all of our transportation services. Our total net revenues decreased 3.4 percent in the second quarter of 2017 compared to the second quarter of 2016. APC Logistics (“APC”), which was acquired at the close of business on September 30, 2016, represented approximately two percent of our total net revenues in the second quarter of 2017.
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 2
For the second quarter of 2017, our total operating expenses increased 8.7 percent. Personnel expenses increased 5.2 percent in the second quarter of 2017 compared to the second quarter of 2016. The increase in personnel expense was the result of an increase in average headcount of 8.1 percent in the second quarter of 2017 compared to the second quarter of 2016, partially offset by decreased expenses related to variable incentive plans. Other selling, general, and administrative expenses increased 19.4 percent. This increase was driven by increases in claims, costs related to the addition of the APC business, the provision for bad debt, and warehouse costs.
Interest and other expenses increased approximately $3.1 million, or 49.5 percent, in the second quarter of 2017 compared to the second quarter of 2016. Interest expense increased due to higher average debt balance during the second quarter of 2017 compared to the second quarter of 2016.
The provision for income taxes decreased 27.3 percent in the second quarter of 2017 compared to the second quarter of 2016. During the first quarter of 2017, we adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718). The adoption of ASU 2016-09 prospectively impacts the recording of income taxes related to share-based payment awards in our consolidated statement of financial position and results of operations, as well as the operating and financing cash flows on the consolidated statements of cash flows. This adoption resulted in a decrease in our provision for income taxes of $1.2 million in the second quarter of 2017.
Results by Segment
Our three reportable segments are: North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. The balance of our business is reported as “All Other and Corporate.” All Other and Corporate includes our non-reportable segments, including Managed Services and Other Surface Transportation.
NAST provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The primary services provided by NAST include truckload, less than truckload (“LTL”), and intermodal. Summarized financial results of our NAST segment are as follows (dollars in thousands):
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2017 | 2016 | % Change |
2017 | 2016 | % Change |
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| Total revenues(1) |
$ | 2,381,551 | $ | 2,158,615 | 10.3 | % | $ | 4,640,803 | $ | 4,204,094 | 10.4 | % | ||||||||||||
| Net revenues |
359,906 | 399,203 | -9.8 | % | 732,346 | 783,001 | -6.5 | % | ||||||||||||||||
| Income from operations |
140,284 | 182,721 | -23.2 | % | 296,161 | 345,072 | -14.2 | % | ||||||||||||||||
| (1) | Excludes intersegment revenues. |
NAST total revenues increased 10.3 percent to $2.4 billion in the second quarter of 2017 from $2.2 billion in the second quarter of 2016. This increase was driven by volume increases in all services. NAST net revenues decreased 9.8 percent to $359.9 million in the second quarter of 2017 compared to $399.2 million in the second quarter of 2016, primarily from a decline in truckload net revenues.
NAST truckload net revenues decreased 14.1 percent to $250.0 million in the second quarter of 2017 compared to $291.1 million in the second quarter of 2016, while truckload volumes increased approximately eight percent. NAST truckload net revenue margin decreased in the second quarter of 2017 compared to the second quarter of 2016, due primarily to increased transportation costs.
NAST accounted for approximately 92 percent of our total North America truckload net revenues in the second quarter of both 2017 and 2016. The majority of the remaining North American truckload net revenues is included in Robinson Fresh. Excluding the estimated impacts of the change in fuel prices, our average North America truckload rate per mile charged to our customers was flat in the second quarter of 2017 compared to the second quarter of 2016. However, our truckload transportation costs increased approximately four percent, excluding the estimated impacts of the change in fuel prices.
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 3
NAST LTL net revenues increased 2.1 percent to $97.1 million in the second quarter of 2017 compared to $95.1 million in the second quarter of 2016. NAST LTL volumes increased approximately 6.5 percent in the second quarter of 2017 compared to the second quarter of 2016, and net revenue margin decreased slightly.
NAST intermodal net revenues decreased 6.3 percent to $7.8 million in the second quarter of 2017 compared to $8.3 million in the second quarter of 2016. Net revenues decreased while volume increased in the second quarter of 2017 compared to the second quarter of 2016 due to contractual volume growth, partially offset by a decrease in transactional business.
NAST operating expenses increased 1.5 percent in the second quarter of 2017 to $219.6 million compared to $216.5 million in the second quarter of 2016. This increase was due to increases in selling, general, and administrative expenses, partially offset by a small decrease in personnel expenses. The decrease in personnel expense is related to variable incentive plans, partially offset by an increase in average headcount of 3.0 percent. The operating expenses of NAST and all other segments include allocated corporate expenses.
Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Australia, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, airfreight services, and customs brokerage. Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2017 | 2016 | % Change |
2017 | 2016 | % Change |
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| Total revenues(1) |
$ | 528,820 | $ | 356,773 | 48.2 | % | $ | 997,608 | $ | 707,885 | 40.9 | % | ||||||||||||
| Net revenues |
121,023 | 97,224 | 24.5 | % | 227,569 | 190,090 | 19.7 | % | ||||||||||||||||
| Income from operations |
27,675 | 22,396 | 23.6 | % | 43,881 | 39,253 | 11.8 | % | ||||||||||||||||
| (1) | Excludes intersegment revenues. |
Global Forwarding total revenues increased 48.2 percent in the second quarter of 2017 to $528.8 million from $356.8 million in the second quarter of 2016. Global Forwarding net revenues increased 24.5 percent to $121.0 million in the second quarter of 2017 compared to $97.2 million in the second quarter of 2016.
Ocean net revenues increased 22.0 percent to $73.2 million in the second quarter of 2017 compared to $60.0 million in the second quarter of 2016. Air net revenues increased 31.0 percent to $24.5 million in the second quarter of 2017 compared to $18.7 million in the second quarter of 2016. Customs net revenues increased 40.6 percent to $16.3 million in the second quarter of 2017 compared to $11.6 million in the second quarter of 2016. These increases were primarily due to volume increases, including those from APC. APC accounted for approximately half of the Global Forwarding net revenue growth.
Global Forwarding operating expenses increased 24.8 percent in the second quarter of 2017 to $93.3 million from $74.8 million in the second quarter of 2016. These increases were driven by an average headcount increase of 14.4 percent and the acquisition amortization related to the acquisition of APC.
Robinson Fresh provides sourcing services under the name of Robinson Fresh. Our sourcing services primarily include the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. Robinson Fresh sources products from around the world and has a physical presence in North America, Europe, Asia, and South America. This segment often provides the logistics and transportation of the products they sell, in addition to temperature controlled transportation services for its customers. Summarized financial results of our Robinson Fresh segment are as follows (dollars in thousands):
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| 2017 | 2016 | % Change |
2017 | 2016 | % Change |
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| Total revenues(1) |
$ | 657,003 | $ | 660,204 | -0.5 | % | $ | 1,207,448 | $ | 1,224,297 | -1.4 | % | ||||||||||||
| Net revenues |
60,846 | 67,820 | -10.3 | % | 117,683 | 126,005 | -6.6 | % | ||||||||||||||||
| Income from operations |
14,249 | 27,311 | -47.8 | % | 28,901 | 45,044 | -35.8 | % | ||||||||||||||||
| (1) | Excludes intersegment revenues. |
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 4
Robinson Fresh total revenues decreased 0.5 percent to $657.0 million in the second quarter of 2017 from $660.2 million in the second quarter of 2016. Robinson Fresh net revenues decreased 10.3 percent to $60.8 million in the second quarter of 2017 compared to $67.8 million in the second quarter of 2016 as a result of declines in transportation and sourcing net revenues.
Robinson Fresh sourcing net revenues decreased 6.8 percent to $35.1 million in the second quarter of 2017 compared to $37.7 million in the second quarter of 2016. This was primarily the result of lower net revenue per case, as sourcing revenues and costs declined at the same rate. Case volumes were flat in the second quarter of 2017 compared to the second quarter of 2016.
Robinson Fresh transportation net revenues decreased 14.6 percent to $25.7 million in the second quarter of 2017 compared to $30.1 million in the second quarter of 2016, primarily due to decreases in truckload revenue. Robinson Fresh transportation net revenue margin decreased in the second quarter of 2017 compared to the second quarter of 2016.
Robinson Fresh operating expenses increased 15.0 percent in the second quarter of 2017 to $46.6 million from $40.5 million in the second quarter of 2016. This was primarily due to an increase in claims expenses, warehousing expenses related to expanding facilities, and an increase in average headcount.
All Other and Corporate includes our Managed Services segment, as well as Other Surface Transportation outside of North America and other miscellaneous revenues. It also includes any unallocated corporate expenses. Managed Services provides Transportation Management Service, or Managed TMS. Our Europe Surface Transportation business accounted for approximately 90 percent of total Other Surface Transportation net revenues. Europe Surface Transportation provides services similar to NAST across the European continent. Net revenues for Managed Services and Other Surface Transportation are summarized as follows:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
| Net revenues | 2017 | 2016 | % Change |
2017 | 2016 | % Change |
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| Managed Services |
$ | 18,164 | $ | 15,775 | 15.1 | % | $ | 35,357 | $ | 30,354 | 16.5 | % | ||||||||||||
| Other Surface Transportation |
13,850 | 14,193 | -2.4 | % | 29,400 | 28,100 | 4.6 | % | ||||||||||||||||
Managed Services net revenues increased 15.1 percent in the second quarter of 2017 to $18.2 million compared to $15.8 million the second quarter of 2016. This increase was a result of new business with new and existing customers. Other surface transportation net revenues decreased 2.4 percent in the second quarter of 2017 to $13.9 million compared to $14.2 million in the second quarter of 2016. This decrease is primarily the result of lower margins in the surface transportation business in Europe.
About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 113,000 customers and 107,000 contract carriers through our integrated network of offices and more than 14,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations.
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 5
Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded on the NASDAQ since 1997. For more information, visit http://www.chrobinson.com or view our company video.
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 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 successfully integrate the operations of acquired companies with our historic operations; 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; risks of unexpected or unanticipated events or opportunities that might require additional capital expenditures; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.
Conference Call Information:
C.H. Robinson Worldwide Second Quarter 2017 Earnings Conference Call
Thursday, July 20, 2017; 8:30 a.m. Eastern Time
We invite call participants to submit questions in advance of the conference call, and we will respond to as many of the questions as we can in the time allowed. To submit your question(s) in advance of the call, please email adrienne.brausen@chrobinson.com.
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: 877-269-7756
International callers dial +1-201-689-7817
Callers should reference the conference ID, which is 13664562
Telephone audio replay available until 11:30 a.m. Eastern Time on July 27, 2017: 877-660-6853;
passcode: 13664562#
International callers dial +1-201-612-7415
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 6
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)
| Three months ended June 30, |
Six months ended June 30, |
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| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues: |
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| Transportation |
$ | 3,319,995 | $ | 2,881,496 | $ | 6,422,038 | $ | 5,595,184 | ||||||||
| Sourcing |
390,023 | 418,245 | 703,105 | 778,500 | ||||||||||||
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| Total revenues |
3,710,018 | 3,299,741 | 7,125,143 | 6,373,684 | ||||||||||||
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| Costs and expenses: |
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| Purchased transportation and related services |
2,781,355 | 2,324,995 | 5,345,240 | 4,504,617 | ||||||||||||
| Purchased products sourced for resale |
354,874 | 380,531 | 637,548 | 711,517 | ||||||||||||
| Personnel expenses |
284,220 | 270,251 | 574,724 | 547,748 | ||||||||||||
| Other selling, general, and administrative expenses |
107,749 | 90,217 | 197,853 | 177,103 | ||||||||||||
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| Total costs and expenses |
3,528,198 | 3,065,994 | 6,755,365 | 5,940,985 | ||||||||||||
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| Income from operations |
181,820 | 233,747 | 369,778 | 432,699 | ||||||||||||
| Interest and other expense |
(9,368 | ) | (6,265 | ) | (18,670 | ) | (15,037 | ) | ||||||||
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| Income before provision for income taxes |
172,452 | 227,482 | 351,108 | 417,662 | ||||||||||||
| Provisions for income taxes |
61,381 | 84,392 | 117,957 | 155,609 | ||||||||||||
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| Net income |
$ | 111,071 | $ | 143,090 | $ | 233,151 | $ | 262,053 | ||||||||
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| Net income per share (basic) |
$ | 0.79 | $ | 1.00 | $ | 1.65 | $ | 1.83 | ||||||||
| Net income per share (diluted) |
$ | 0.78 | $ | 1.00 | $ | 1.65 | $ | 1.83 | ||||||||
| Weighted average shares outstanding (basic) |
141,061 | 142,998 | 141,229 | 143,259 | ||||||||||||
| Weighted average shares outstanding (diluted) |
141,587 | 143,216 | 141,713 | 143,437 | ||||||||||||
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 7
BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)
| NAST | Global Forwarding |
Robinson Fresh |
All Other and Corporate |
Eliminations | Consolidated | |||||||||||||||||||
| Three months ended June 30, 2017 |
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| Revenues |
$ | 2,381,551 | $ | 528,820 | $ | 657,003 | $ | 142,644 | $ | — | $ | 3,710,018 | ||||||||||||
| Intersegment revenues (1) |
112,243 | 7,440 | 39,669 | 3,670 | (163,022 | ) | — | |||||||||||||||||
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| Total revenues |
$ | 2,493,794 | $ | 536,260 | $ | 696,672 | $ | 146,314 | $ | (163,022 | ) | $ | 3,710,018 | |||||||||||
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| Net revenues |
$ | 359,906 | $ | 121,023 | $ | 60,846 | $ | 32,014 | — | $ | 573,789 | |||||||||||||
| Operating income |
$ | 140,284 | $ | 27,675 | $ | 14,249 | ($ | 388 | ) | — | $ | 181,820 | ||||||||||||
| Depreciation and amortization |
$ | 5,706 | $ | 8,099 | $ | 1,198 | $ | 7,943 | — | $ | 22,946 | |||||||||||||
| Total Assets |
$ | 2,189,711 | $ | 741,443 | $ | 455,214 | $ | 579,521 | — | $ | 3,965,889 | |||||||||||||
| Average headcount |
7,003 | 4,021 | 980 | 2,616 | 14,620 | |||||||||||||||||||
| NAST | Global Forwarding |
Robinson Fresh |
All Other and Corporate |
Eliminations | Consolidated | |||||||||||||||||||
| Three months ended June 30, 2016 |
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| Revenues |
$ | 2,158,615 | $ | 356,773 | $ | 660,204 | $ | 124,149 | $ | — | $ | 3,299,741 | ||||||||||||
| Intersegment revenues(1) |
71,543 | 8,763 | 27,049 | 229 | (107,584 | ) | — | |||||||||||||||||
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| Total revenues |
$ | 2,230,158 | $ | 365,536 | $ | 687,253 | $ | 124,378 | $ | (107,584 | ) | $ | 3,299,741 | |||||||||||
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| Net revenues |
$ | 399,203 | $ | 97,224 | $ | 67,820 | $ | 29,968 | — | $ | 594,215 | |||||||||||||
| Operating income |
$ | 182,721 | $ | 22,396 | $ | 27,311 | $ | 1,319 | — | $ | 233,747 | |||||||||||||
| Depreciation and amortization |
$ | 5,502 | $ | 5,079 | $ | 839 | $ | 6,764 | — | $ | 18,184 | |||||||||||||
| Total Assets |
$ | 1,936,149 | $ | 505,778 | $ | 427,272 | $ | 479,871 | — | $ | 3,349,070 | |||||||||||||
| Average headcount |
6,800 | 3,514 | 947 | 2,261 | — | 13,522 | ||||||||||||||||||
| (1) | Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results. |
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C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 8
BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)
| NAST | Global Forwarding |
Robinson Fresh |
All Other and Corporate |
Eliminations | Consolidated | |||||||||||||||||||
| Six months ended June 30, 2017 |
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| Revenues |
$ | 4,640,803 | $ | 997,608 | $ | 1,207,448 | $ | 279,284 | $ | — | $ | 7,125,143 | ||||||||||||
| Intersegment revenues (1) |
213,397 | 15,583 | 73,009 | 10,548 | (312,537 | ) | — | |||||||||||||||||
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| Total revenues |
$ | 4,854,200 | $ | 1,013,191 | $ | 1,280,457 | $ | 289,832 | $ | (312,537 | ) | $ | 7,125,143 | |||||||||||
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| Net revenues |
$ | 732,346 | $ | 227,569 | $ | 117,683 | $ | 64,757 | — | $ | 1,142,355 | |||||||||||||
| Operating income |
$ | 296,161 | $ | 43,881 | $ | 28,901 | $ | 835 | — | $ | 369,778 | |||||||||||||
| Depreciation and amortization |
$ | 11,296 | $ | 16,119 | $ | 2,344 | $ | 15,618 | — | $ | 45,377 | |||||||||||||
| Total Assets |
$ | 2,189,711 | $ | 741,443 | $ | 455,214 | $ | 579,521 | — | $ | 3,965,889 | |||||||||||||
| Average headcount |
6,926 | 3,977 | 971 | 2,580 | — | 14,454 | ||||||||||||||||||
| NAST | Global Forwarding |
Robinson Fresh |
All Other and Corporate |
Eliminations | Consolidated | |||||||||||||||||||
| Six months ended June 30, 2016 |
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| Revenues |
$ | 4,204,094 | $ | 707,885 | $ | 1,224,297 | $ | 237,408 | $ | — | $ | 6,373,684 | ||||||||||||
| Intersegment revenues(1) |
131,812 | 14,843 | 50,945 | 542 | (198,142 | ) | — | |||||||||||||||||
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|
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| Total revenues |
$ | 4,335,906 | $ | 722,728 | $ | 1,275,242 | $ | 237,950 | $ | (198,142 | ) | $ | 6,373,684 | |||||||||||
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| Net revenues |
$ | 783,001 | $ | 190,090 | $ | 126,005 | $ | 58,454 | — | $ | 1,157,550 | |||||||||||||
| Operating income |
$ | 345,072 | $ | 39,253 | $ | 45,044 | $ | 3,330 | — | $ | 432,699 | |||||||||||||
| Depreciation and amortization |
$ | 11,004 | $ | 10,158 | $ | 1,607 | $ | 12,290 | — | $ | 35,059 | |||||||||||||
| Total Assets |
$ | 1,936,149 | $ | 505,778 | $ | 427,272 | $ | 479,871 | — | $ | 3,349,070 | |||||||||||||
| Average headcount |
6,749 | 3,499 | 937 | 2,216 | — | 13,401 | ||||||||||||||||||
| (1) | Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results. |
(more)
C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 9
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
| June 30, 2017 |
December 31, 2016 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 273,182 | $ | 247,666 | ||||
| Receivables, net |
1,948,204 | 1,711,191 | ||||||
| Other current assets |
63,636 | 49,245 | ||||||
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|
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| Total current assets |
2,285,022 | 2,008,102 | ||||||
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| Property and equipment, net |
234,312 | 232,953 | ||||||
| Intangible and other assets |
1,446,555 | 1,446,703 | ||||||
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| Total assets |
$ | 3,965,889 | $ | 3,687,758 | ||||
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| Liabilities and stockholders’ investment |
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| Current liabilities: |
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| Accounts payable and outstanding checks |
$ | 1,055,295 | $ | 921,788 | ||||
| Accrued compensation |
74,754 | 98,107 | ||||||
| Accrued income taxes |
16,004 | 15,472 | ||||||
| Other accrued expenses |
59,441 | 70,351 | ||||||
| Current portion of debt |
592,000 | 740,000 | ||||||
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| Total current liabilities |
1,797,494 | 1,845,718 | ||||||
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| Noncurrent income taxes payable |
17,278 | 18,849 | ||||||
| Deferred tax liabilities |
63,667 | 65,122 | ||||||
| Long term debt |
750,000 | 500,000 | ||||||
| Other long-term liabilities |
242 | 222 | ||||||
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| Total liabilities |
2,628,681 | 2,429,911 | ||||||
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| Total stockholders’ investment |
1,337,208 | 1,257,847 | ||||||
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|
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| Total liabilities and stockholders’ investment |
$ | 3,965,889 | $ | 3,687,758 | ||||
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(more)
C.H. Robinson Worldwide, Inc.
July 19, 2017
Page 10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except operational data)
| Six months ended June 30, |
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| 2017 | 2016 | |||||||
| Operating activities: |
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| Net income |
$ | 233,151 | $ | 262,053 | ||||
| Stock-based compensation |
16,842 | 25,785 | ||||||
| Depreciation and amortization |
45,377 | 35,059 | ||||||
| Provision for doubtful accounts |
7,669 | 2,144 | ||||||
| Deferred income taxes |
(4,988 | ) | 17,004 | |||||
| Excess tax benefit on stock-based compensation |
(10,583 | ) | (15,104 | ) | ||||
| Other |
536 | 366 | ||||||
| Changes in operating elements, net of acquisitions: |
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| Receivables |
(244,682 | ) | (94,030 | ) | ||||
| Prepaid expenses and other |
(9,646 | ) | (19,066 | ) | ||||
| Other non-current assets |
(1,016 | ) | (1,615 | ) | ||||
| Accounts payable and outstanding checks |
135,130 | 52,843 | ||||||
| Accrued compensation and profit-sharing contribution |
(23,353 | ) | (61,029 | ) | ||||
| Accrued income taxes |
10,185 | 43,606 | ||||||
| Other accrued liabilities |
(4,611 | ) | (755 | ) | ||||
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| Net cash provided by operating activities |
150,011 | 247,261 | ||||||
| Investing activities: |
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| Purchases of property and equipment |
(24,105 | ) | (33,483 | ) | ||||
| Purchases and development of software |
(8,865 | ) | (10,493 | ) | ||||
| Acquisitions, net of cash |
(1,780 | ) | — | |||||
| Other |
(1,095 | ) | (405 | ) | ||||
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|
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| Net cash used for investing activities |
(35,845 | ) | (44,381 | ) | ||||
| Financing activities: |
||||||||
| Borrowings on accounts receivable securitization facility |
250,000 | — | ||||||
| Borrowings on line of credit |
4,282,000 | 2,840,000 | ||||||
| Repayments on line of credit |
(4,430,000 | ) | (2,825,000 | ) | ||||
| Net repurchases of common stock |
(70,306 | ) | (66,249 | ) | ||||
| Excess tax benefit on stock-based compensation |
— | 15,104 | ||||||
| Cash dividends |
(128,806 | ) | (127,520 | ) | ||||
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|
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| Net cash used for financing activities |
(97,112 | ) | (163,665 | ) | ||||
| Effect of exchange rates on cash |
8,462 | (361 | ) | |||||
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|
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| Net change in cash and cash equivalents |
25,516 | 38,854 | ||||||
| Cash and cash equivalents, beginning of period |
247,666 | 168,229 | ||||||
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|
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| Cash and cash equivalents, end of period |
$ | 273,182 | $ | 207,083 | ||||
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|
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| As of June 30, | ||||||||
| 2017 | 2016 | |||||||
| Operational Data: |
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| Employees |
14,807 | 13,701 | ||||||
Source: C.H. Robinson
###