MINNEAPOLIS--(BUSINESS WIRE)--Oct. 25, 2005--C.H. Robinson
Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRWD), today reported
financial results for the three months and nine months ended September
30, 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 third quarter, gross profits increased 32.9 percent to
$228.9 million in 2005 from $172.2 million in 2004. Income from
operations increased 40.3 percent to $85.6 million in the third
quarter of 2005 from $61.0 million in the third quarter of 2004. Net
income increased 44.8 percent to $54.1 million in the third quarter of
2005 from $37.3 million in the third quarter of 2004. Diluted net
income per share increased 40.9 percent to $0.31 per share in the
third quarter of 2005 from $0.22 per share in the third quarter of
2004.
For the nine months ended September 30, 2005, gross profits
increased 34.2 percent to $643.7 million from $479.8 million in 2004.
Income from operations increased 45.5 percent to $233.7 million from
$160.7 million in 2004. Net income increased 47.1 percent to $145.2
million from $98.7 million in 2004. Diluted net income per share
increased 45.6 percent to $0.83 per share from $0.57 per share in
2004.
For the third quarter, total Transportation gross profits
increased 31.9 percent to $198.0 million in 2005 from $150.1 million
in 2004. Our transportation gross profit margin increased to 16.3
percent in 2005 from 15.9 percent in 2004.
The increase in our truck transportation gross profits of 31.4
percent in the third quarter of 2005 was driven by volume growth and
price increases in both truckload and less-than-truckload
transactions. Tight capacity created opportunities with new and
existing customers. We are adding new carriers and expanding our
existing carrier relationships, both of which gave us the capacity we
needed to efficiently meet these needs.
Our intermodal gross profits increase of 19.6 percent in the third
quarter of 2005 resulted from an increase in gross profit margins,
offset by a decrease in volume. Our volume was impacted by market
conditions that continue to drive business back to truck in certain
lanes. Our gross profit margin increase resulted from the elimination
of some lower margin business and some rate increases to offset
increased costs.
Our international ocean and air gross profits increased 50.0
percent in the third quarter of 2005. This growth includes the impact
of our acquisitions of Bussini Transport S.r.l. and Hirdes Group
Worldwide during the quarter.
Our ocean gross profits increased 48.8 percent and our air gross
profits increased 53.0 percent in the third quarter of 2005. Excluding
the impact of the acquisitions above, our growth rates in ocean and
air gross profits would have been 38.2 percent and 17.3 percent in the
third quarter of 2005. We continue to add new customers and broaden
our relationships with existing customers to include international
transportation.
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 32.5 percent in the third quarter was driven
by increases in our transportation management fees and customs
brokerage business.
For the third quarter, Sourcing gross profits increased 55.3
percent to $21.0 million in 2005 from $13.5 million in 2004. Excluding
the impact of the acquisitions of FoodSource and Epic Roots, announced
in the first quarter, our Sourcing gross profits increased 0.6
percent.
For the third quarter, Information Services gross profits
increased 16.5 percent to $9.9 million in 2005 from $8.5 million in
2004, primarily due to transaction volume growth.
For the quarter, personnel expense as a percentage of gross
profits decreased to 48.3 percent in 2005 from 49.9 percent in 2004.
While many of our personnel expenses are variable, we gain leverage in
periods of growth.
For the quarter, selling, general, and administrative expenses
increased 29.7 percent to $32.7 million in 2005 from $25.2 in 2004.
Selling, general, and administrative expenses as a percentage of gross
profits decreased for the third quarter of 2005 to 14.3 percent
compared to 14.6 percent in 2004.
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 18,000
customers through a network of 195 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 35,000 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 third-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 Third Quarter 2005 Earnings Conference Call
Wednesday, October 26, 2005 10:00 a.m. Eastern time
Live webcast available through Investor Relations link at
www.chrobinson.com
Telephone access:1-800-219-6110
Webcast replay available through November 9, 2005; Investor
Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on
October 29, 2005: 800-405-2236; passcode:11040861#
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 Nine months ended
September 30, September 30,
---------------------- -----------------------
2005 2004 2005 2004
---------------------- -----------------------
Gross Revenues:
Transportation $1,218,026 $943,256 $3,340,267 $2,587,383
Sourcing 257,409 172,026 737,067 535,513
Information Services 9,934 8,524 28,117 24,621
----------- ---------- ----------- -----------
Total gross
revenues 1,485,369 1,123,806 4,105,451 3,147,517
----------- ---------- ----------- -----------
Gross Profits:
Transportation
Truck 172,435 131,248 488,438 360,084
Intermodal 8,469 7,083 22,737 21,919
Ocean 8,638 5,806 20,412 15,275
Air 3,495 2,284 8,481 6,412
Miscellaneous 4,938 3,727 14,321 10,514
----------- ---------- ----------- -----------
Total
transportation 197,975 150,148 554,389 414,204
Sourcing 20,965 13,501 61,162 40,987
Information Services 9,934 8,524 28,117 24,621
----------- ---------- ----------- -----------
Total gross profits 228,874 172,173 643,668 479,812
----------- ---------- ----------- -----------
Operating costs and
expenses:
Personnel expenses 110,595 85,978 317,662 244,777
Selling, general, and
administrative
expenses 32,661 25,184 92,267 74,336
----------- ---------- ----------- -----------
Total operating
expenses 143,256 111,162 409,929 319,113
----------- ---------- ----------- -----------
Income from operations 85,618 61,011 233,739 160,699
Investment and other
income:
Interest income and
other 1,726 637 4,129 1,981
Nonqualified deferred
compensation
investment gain
(loss) 139 (80) 154 (49)
----------- ---------- ----------- -----------
Investment and other
income 1,865 557 4,283 1,932
----------- ---------- ----------- -----------
Income before provision
for income taxes 87,483 61,568 238,022 162,631
Provision for income
taxes 33,394 24,219 92,810 63,932
----------- ---------- ----------- -----------
Net income $54,089 $37,349 $145,212 $98,699
=========== ========== =========== ===========
Net income per share
(basic) $0.32 $0.22 $0.85 $0.58
Net income per share
(diluted) $0.31 $0.22 $0.83 $0.57
Weighted average shares
outstanding (basic) 170,105 169,232 170,072 169,276
Weighted average shares
outstanding (diluted) 174,533 173,096 174,357 173,017
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands)
September 30, December 31,
2005 2004
------------- ------------
Assets
Current Assets:
Cash and cash equivalents $191,942 $166,476
Available-for-sale securities 123,181 121,600
Receivables, net 698,254 544,274
Other current assets 15,666 13,637
------------- ------------
Total current assets 1,029,043 845,987
Property and equipment, net 58,595 51,122
Intangible and other assets 249,311 183,587
------------- ------------
$1,336,949 $1,080,696
============= ============
Liabilities and stockholders' investment
Current liabilities
Accounts payable and outstanding checks $469,132 $358,929
Accrued compensation 71,969 60,261
Other accrued expenses 38,253 33,629
------------- ------------
Total current liabilities 579,354 452,819
Long term liabilities:
Deferred tax liability 4,871 4,153
Nonqualified deferred compensation
obligation 3,030 2,868
------------- ------------
Total long term liabilities 7,901 7,021
------------- ------------
Total liabilities 587,255 459,840
Total stockholders' investment 749,694 620,856
------------- ------------
$1,336,949 $1,080,696
============= ============
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands, except operational data)
Nine months ended
September 30,
-------------------
2005 2004
--------- ---------
Operating activities:
Net income $145,212 $98,699
Depreciation and amortization 13,326 8,461
Net changes in operating elements (1,907) (44,178)
--------- ---------
Net cash provided by operating activities 156,631 62,982
Investing activities:
Net property additions (16,151) (22,575)
Insurance proceeds - 1,590
Cash paid for acquisitions (60,124) (9,112)
Purchases of available-for-sale securities (99,791) (37,050)
Sales/maturities of available-for-sale
securities 98,225 36,569
Other assets, net (1,891) (1,050)
--------- ---------
Net cash used for investing activities (79,732) (31,628)
Financing activities:
Net repurchases of common stock (12,720) (10,694)
Cash dividends (38,578) (30,648)
--------- ---------
Net cash used for financing activities (51,298) (41,342)
Effect of exchange rates on cash (135) (1,000)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 25,466 (10,988)
Cash and cash equivalents, beginning of period 166,476 123,413
--------- ---------
Cash and cash equivalents, end of period $191,942 $112,425
========= =========
As of September 30,
-------------------
2005 2004
--------- ---------
Operational Data:
Employees 5,605 4,671
Branches 195 170
Contact:
C.H. Robinson Worldwide, Inc.
Chad Lindbloom, chief financial officer, 1-952-937-7779
Angie Freeman, vice president, 1-952-937-7847
Source: C.H. Robinson Worldwide, Inc.
"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.