MINNEAPOLIS--(BUSINESS WIRE)--Jan. 30, 2007--C.H. Robinson
Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRW), today reported
financial results for the three months and twelve months ended
December 31, 2006.
Summarized financial results for the quarter and twelve months
ended December 31 are as follows (dollars in thousands, except per
share data):
Three months ended Twelve months ended
December 31, December 31,
----------------------------- ------------------------------
2006 2005 % Change 2006 2005 % Change
----------------------------- ------------------------------
Gross
profits $278,522 $236,082 18.0% $1,082,544 $879,750 23.1%
Operating
income 110,375 92,622 19.2% 417,845 326,361 28.0%
Net
income 71,827 58,146 23.5% 266,925 203,358 31.3%
Diluted
EPS $0.41 $0.33 24.2% $1.53 $1.16 31.9%
Total Transportation gross profits increased 19.5 percent to
$246.2 million in the fourth quarter of 2006 from $205.9 million in
the fourth quarter of 2005. Our Transportation gross profit margin
increased to 18.3 percent in 2006 from 15.7 percent in 2005.
The increase in our Transportation gross profit margin in the
fourth quarter is due to an increase in our truck transportation gross
profit margins and to a change in the mix of services that make up
this business line. Our truck transportation gross profit margin
expanded as overall market demand slowed and the truck capacity market
loosened. We also had faster growth in our miscellaneous
transportation management services business line, which has a higher
gross profit margin than our overall Transportation business line.
Our truck transportation gross profits increased 19.8 percent in
the fourth quarter of 2006. Our growth was driven by both increased
margins and increased volumes. While our volume growth was relatively
consistent as the quarter progressed, our margins expanded through the
quarter.
Our intermodal gross profit increase of 11.1 percent in the fourth
quarter of 2006 resulted from an increase in gross profit margins,
offset in part by a decrease in volume.
In our international freight forwarding business, our ocean gross
profits increased 9.3 percent and our air gross profits increased 17.5
percent in the fourth quarter of 2006.
Miscellaneous transportation gross profits consist primarily of
transportation management fees, customs brokerage fees, and warehouse
and cross-dock services. The increase of 43.4 percent in the fourth
quarter was driven by increases in our transportation management fees
and customs brokerage business.
For the fourth quarter, Sourcing gross profits increased 7.5
percent to $21.8 million in 2006 from $20.3 million in 2005. This
increase was due to higher volumes with retail and foodservice
customers through integrated programs.
Information Services gross profits increased 7.0 percent to $10.5
million in the fourth quarter of 2006 from $9.9 million in the fourth
quarter of 2005, due to transaction volume growth and an increase in
pricing related to certain truck stop services.
For the fourth quarter, operating expenses increased 17.2 percent
to $168.1 million in 2006 from $143.5 million in 2005. This was due to
an increase of 17.8 percent in personnel expenses and an increase of
15.4 percent in selling, general and administrative expenses.
As a percentage of gross profits, operating expenses decreased to
60.4 percent in 2006 from 60.8 percent in 2005. This decrease was due
to a decline in selling, general and administrative expenses as a
percentage of gross profits from 14.3 percent to 14.0 percent.
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 25,000
customers through a network of 214 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 45,000 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.; risks associated with the produce industry, including food
safety and contamination issues; 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 2006 Earnings Conference
Call
Wednesday, January 31, 2007 10:00 a.m. Eastern time
Live webcast available through Investor Relations link at
www.chrobinson.com
Telephone access:800-218-0713
Webcast replay available through February 14, 2007; Investor
Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on
February 3, 2007: 800-405-2236; passcode:11080688#
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
----------------------- -----------------------
Three months ended Twelve months ended
December 31, December 31,
----------------------- -----------------------
2006 2005 2006 2005
----------------------- -----------------------
Gross Revenues:
Transportation $1,347,413 $1,315,479 $5,321,547 $4,655,746
Sourcing 284,638 258,168 1,192,297 995,235
Information Services 10,540 9,850 42,350 37,967
----------- ----------- ----------- -----------
Total gross
revenues 1,642,591 1,583,497 6,556,194 5,688,948
----------- ----------- ----------- -----------
Gross Profits:
Transportation
Truck 213,375 178,167 822,954 666,605
Intermodal 9,620 8,655 36,176 31,392
Ocean 9,587 8,770 37,150 29,182
Air 5,686 4,840 21,533 13,321
Miscellaneous 7,892 5,503 28,152 19,824
----------- ----------- ----------- -----------
Total
transportation 246,160 205,935 945,965 760,324
Sourcing 21,822 20,297 94,229 81,459
Information Services 10,540 9,850 42,350 37,967
----------- ----------- ----------- -----------
Total gross
profits 278,522 236,082 1,082,544 879,750
----------- ----------- ----------- -----------
Operating costs and
expenses:
Personnel expenses 129,146 109,649 515,947 427,311
Selling, general,
and administrative
expenses 39,001 33,811 148,752 126,078
----------- ----------- ----------- -----------
Total operating
expenses 168,147 143,460 664,699 553,389
----------- ----------- ----------- -----------
Income from operations 110,375 92,622 417,845 326,361
Investment and other
income 3,330 2,109 11,843 6,392
----------- ----------- ----------- -----------
Income before
provision for income
taxes 113,705 94,731 429,688 332,753
Provision for income
taxes 41,878 36,585 162,763 129,395
----------- ----------- ----------- -----------
Net income $71,827 $58,146 $266,925 $203,358
=========== =========== =========== ===========
Net income per share
(basic) $0.42 $0.34 $1.56 $1.20
Net income per share
(diluted) $0.41 $0.33 $1.53 $1.16
Weighted average
shares outstanding
(basic) 170,555 169,990 170,888 170,052
Weighted average
shares outstanding
(diluted) 174,104 175,731 174,787 174,698
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands)
December 31, December 31,
2006 2005
------------- -------------
Assets
Current assets:
Cash and cash equivalents $348,592 $230,628
Available-for-sale securities 124,767 122,551
Receivables, net 764,995 716,725
Other current assets 17,794 14,877
------------- -------------
Total current assets 1,256,148 1,084,781
Property and equipment, net 82,071 60,721
Intangible and other assets 293,474 249,566
------------- -------------
$1,631,693 $1,395,068
============= =============
Liabilities and stockholders' investment
Current liabilities:
Accounts payable and outstanding
checks $540,129 $473,882
Accrued compensation 98,408 94,333
Other accrued expenses 48,412 44,268
------------- -------------
Total current liabilities 686,949 612,483
Long term liabilities 1,022 2,548
------------- -------------
Total liabilities 687,971 615,031
Total stockholders' investment 943,722 780,037
------------- -------------
$1,631,693 $1,395,068
============= =============
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(In thousands, except operational data)
Twelve months ended
December 31,
---------------------
2006 2005
---------- ----------
Operating activities:
Net income $266,925 $203,358
Stock-based compensation 47,292 34,900
Depreciation and amortization 23,932 18,500
Other non-cash expenses, net (1,718) 8,552
Net changes in operating elements 6,946 (41,205)
---------- ----------
Net cash provided by operating activities 343,377 224,105
Investing activities:
Net property additions (41,543) (21,824)
Cash paid for acquisitions (39,724) (60,153)
Purchases of available-for-sale securities (119,864) (114,696)
Sales/maturities of available-for-sale
securities 118,838 113,747
Other assets, net 1,056 (3,748)
---------- ----------
Net cash used for investing activities (81,237) (86,674)
Financing activities:
Net repurchases of common stock (67,085) (23,293)
Excess tax benefit from stock based
compensation plans 12,078 4,983
Cash dividends (90,838) (51,458)
---------- ----------
Net cash used for financing activities (145,845) (69,768)
Effect of exchange rates on cash 1,669 (3,511)
---------- ----------
Net increase in cash and cash equivalents 117,964 64,152
Cash and cash equivalents, beginning of period 230,628 166,476
---------- ----------
Cash and cash equivalents, end of period $348,592 $230,628
========== ==========
As of December 31,
---------------------
2006 2005
---------- ----------
Operational Data:
Employees 6,768 5,776
Branches 214 196
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.