MINNEAPOLIS--(BUSINESS WIRE)--Feb. 7, 2006--C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRWD - News), today reported financial results for the three months and twelve months ended December 31, 2005. As previously reported, all share and per share data is reflective of a two-for-one stock split, effective October 14, 2005.
For the fourth quarter, gross profits increased 30.3 percent to $236.1 million in 2005 from $181.2 million in 2004. Income from operations increased 49.2 percent to $92.6 million in the fourth quarter of 2005 from $62.1 million in the fourth quarter of 2004. Net income increased 50.8 percent to $58.1 million in the fourth quarter of 2005 from $38.6 million in the fourth quarter of 2004. Diluted net income per share increased 50.0 percent to $0.33 per share in the fourth quarter of 2005 from $0.22 per share in the fourth quarter of 2004.
For the twelve months ended December 31, 2005, gross profits increased 33.1 percent to $879.8 million from $661.0 million in 2004. Income from operations increased 46.5 percent to $326.4 million from $222.8 million in 2004. Net income increased 48.2 percent to $203.4 million from $137.3 million in 2004. Diluted net income per share increased 46.8 percent to $1.16 per share from $0.79 per share in 2004.
For the fourth quarter, total Transportation gross profits increased 27.5 percent to $205.9 million in 2005 from $161.5 million in 2004. Our transportation gross profit margin decreased to 15.7 percent in 2005 from 16.0 percent in 2004.
The increase in our truck transportation gross profits of 25.6 percent in the fourth quarter of 2005 was driven by volume growth in truckload and less-than-truckload transactions, offset by a slight decrease in gross profit margins. Tight capacity created opportunities with new and existing customers.
Our intermodal gross profits increase of 7.6 percent in the fourth quarter of 2005 resulted from an increase in gross profit margins, offset by a decrease in volume. Our gross profit margin expanded due to rate increases and the elimination of some lower margin business. Market conditions continued to drive business back to truck in certain lanes, impacting our volumes.
In our international freight forwarding business, our ocean gross profits increased 66.0 percent and our air gross profits increased 124.3 percent in the fourth quarter of 2005. Excluding the impact of the acquisitions of Bussini Transport S.r.l. ('Bussini') and Hirdes Group Worldwide ('Hirdes'), announced in the third quarter, our ocean gross profits would have increased 46.6 percent and our air gross profits would have decreased 3.2 percent in the fourth quarter of 2005.
Miscellaneous transportation gross profits consist of transportation management fees, customs brokerage fees, warehouse and cross-dock services, and other miscellaneous transportation related services. The increase of 31.2 percent in the fourth quarter was driven by increases in our transportation management fees and customs brokerage business. Excluding the impact of the acquisitions of Bussini and Hirdes, our Miscellaneous transportation gross profits increased 23.1 percent.
For the fourth quarter, Sourcing gross profits increased 88.2 percent to $20.3 million in 2005 from $10.8 million in 2004. Excluding the impact of the acquisitions of FoodSource and Epic Roots, announced in the first quarter, our Sourcing gross profits increased 21.3 percent.
For the fourth quarter, Information Services gross profits increased 11.2 percent to $9.9 million in 2005 from $8.9 million in 2004, primarily due to transaction volume growth.
For the quarter, operating expenses increased 20.4 percent to $143.5 million in 2005 from $119.1 million in 2005. As a percentage of gross profits, operating expenses decreased to 60.8 percent in 2005 from 65.7 percent in 2004.
For 2006, we plan to have total capital expenditures of approximately $50 million. Of that, we anticipate approximately $25 million for land and office space expansion for our Eden Prairie headquarters and adjacent branch offices.
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 20,000 customers through a network of 196 offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 40,000 carriers 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 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 market demand and pressures on the pricing for our services; competition and growth rates within the fourth-party logistics industry; freight levels 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.; changing economic conditions such as general economic slowdown, decreased consumer confidence, fuel shortages 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 Fourth Quarter 2005 Earnings Conference Call
Wednesday, February 8, 2006 10:00 a.m. Eastern time
Live webcast available through Investor Relations link at
www.chrobinson.com
Telephone access:800-240-2134
Webcast replay available through February 22, 2006; Investor Relations
link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on
February 11, 2006: 800-405-2236; passcode:11051188#
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
(All share and per share data is reflective of a two-for-one stock
split effective October 14, 2005)
----------------------- -----------------------
Three months ended Twelve months ended
December 31, December 31,
----------------------- -----------------------
2005 2004 2005 2004
----------------------- -----------------------
Gross Revenues:
Transportation $1,315,479 $1,009,866 $4,655,746 $3,597,249
Sourcing 258,168 175,294 995,235 710,807
Information Services 9,850 8,861 37,967 33,482
----------- ----------- ----------- -----------
Total gross
revenues 1,583,497 1,194,021 5,688,948 4,341,538
----------- ----------- ----------- -----------
Gross Profits:
Transportation
Truck 178,167 141,856 666,605 501,940
Intermodal 8,655 8,041 31,392 29,960
Ocean 8,770 5,283 29,182 20,558
Air 4,840 2,158 13,321 8,570
Miscellaneous 5,503 4,195 19,824 14,709
----------- ----------- ----------- -----------
Total
transportation 205,935 161,533 760,324 575,737
Sourcing 20,297 10,785 81,459 51,772
Information Services 9,850 8,861 37,967 33,482
----------- ----------- ----------- -----------
Total gross
profits 236,082 181,179 879,750 660,991
----------- ----------- ----------- -----------
Operating costs and
expenses:
Personnel expenses 109,649 89,341 427,311 334,118
Selling, general, and
administrative
expenses 33,811 29,769 126,078 104,105
----------- ----------- ----------- -----------
Total operating
expenses 143,460 119,110 553,389 438,223
----------- ----------- ----------- -----------
Income from operations 92,622 62,069 326,361 222,768
Investment and other
income:
Interest income and
other 2,039 1,135 6,168 3,116
Nonqualified deferred
compensation
investment gain 70 203 224 154
----------- ----------- ----------- -----------
Investment and other
income 2,109 1,338 6,392 3,270
----------- ----------- ----------- -----------
Income before provision
for income taxes 94,731 63,407 332,753 226,038
Provision for income
taxes 36,585 24,852 129,395 88,784
----------- ----------- ----------- -----------
Net income $58,146 $38,555 $203,358 $137,254
=========== =========== =========== ===========
Net income per share
(basic) $0.34 $0.23 $1.20 $0.81
Net income per share
(diluted) $0.33 $0.22 $1.16 $0.79
Weighted average shares
outstanding (basic) 169,990 169,086 170,052 169,228
Weighted average shares
outstanding (diluted) 175,731 173,526 174,698 173,144
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands)
December 31, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents $230,628 $166,476
Available-for-sale securities 122,551 121,600
Receivables, net 716,725 544,274
Other current assets 14,877 13,637
------------ ------------
Total current assets 1,084,781 845,987
Property and equipment, net 60,721 51,122
Intangible and other assets 249,566 183,587
------------ ------------
$1,395,068 $1,080,696
============ ============
Liabilities and stockholders' investment
Current liabilities
Accounts payable and outstanding checks $473,882 $358,929
Accrued compensation 94,333 60,261
Other accrued expenses 44,268 33,629
------------ ------------
Total current liabilities 612,483 452,819
Long term liabilities:
Deferred tax liability 1,469 4,153
Nonqualified deferred compensation
obligation 1,079 2,868
------------ ------------
Total long term liabilities 2,548 7,021
------------ ------------
Total liabilities 615,031 459,840
Total stockholders' investment 780,037 620,856
------------ ------------
$1,395,068 $1,080,696
============ ============
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands, except operational data)
Twelve months ended
December 31,
-------------------------
2005 2004
------------ ------------
Operating activities:
Net income $203,358 $137,254
Depreciation and amortization 18,500 11,814
Other non-cash expenses, net 41,971 33,303
Net changes in operating elements (34,741) (26,430)
------------ ------------
Net cash provided by operating
activities 229,088 155,941
Investing activities:
Net property additions (21,824) (34,741)
Insurance proceeds - 1,590
Cash paid for acquisitions (60,153) (19,112)
Purchases of available-for-sale securities (114,696) (70,139)
Sales/maturities of available-for-sale
securities 113,747 69,366
Other assets, net (3,748) (1,780)
------------ ------------
Net cash used for investing activities (86,674) (54,816)
Financing activities:
Net repurchases of common stock (23,293) (19,120)
Cash dividends (51,458) (40,902)
------------ ------------
Net cash used for financing activities (74,751) (60,022)
Effect of exchange rates on cash (3,511) 1,960
------------ ------------
Net increase in cash and cash
equivalents 64,152 43,063
Cash and cash equivalents, beginning of
period 166,476 123,413
------------ ------------
Cash and cash equivalents, end of period $230,628 $166,476
============ ============
As of December 31,
-------------------------
2005 2004
------------ ------------
Operational Data:
Employees 5,776 4,806
Branches 196 176
C.H. Robinson Worldwide, Inc.
Chad Lindbloom, chief financial officer, 1-952-937-7779
Angie Freeman, vice president, 1-952-937-7847
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding C.H. Robinson Worldwide Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.