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MINNEAPOLIS, Oct 25, 2011 (BUSINESS WIRE) --
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):
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|
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Three months ended September 30,
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Nine months ended September 30,
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%
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%
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2011
|
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2010
|
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change
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2011
|
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2010
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|
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change
|
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|
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Total revenues
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|
$
|
2,694,928
|
|
|
$
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2,420,357
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|
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11.3
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%
|
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|
$
|
7,768,062
|
|
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$
|
6,948,956
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|
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11.8
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%
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|
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Net revenues:
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Transportation
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|
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|
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Truck
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$
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321,366
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|
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$
|
284,200
|
|
|
13.1
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%
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|
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$
|
930,168
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$
|
785,782
|
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18.4
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%
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Intermodal
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10,538
|
|
|
|
9,188
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|
|
14.7
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%
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|
|
31,000
|
|
|
|
27,109
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|
|
14.4
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%
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Ocean
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17,881
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|
|
17,057
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4.8
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%
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|
|
49,851
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|
|
|
44,049
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|
|
13.2
|
%
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Air
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9,940
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|
|
11,453
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-13.2
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%
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|
|
30,560
|
|
|
|
31,559
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|
|
-3.2
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%
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Other logistics services
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|
|
14,752
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|
14,666
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|
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0.6
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%
|
|
|
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43,665
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|
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42,857
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|
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1.9
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%
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Total transportation
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374,477
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336,564
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11.3
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%
|
|
|
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1,085,244
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|
|
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931,356
|
|
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16.5
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%
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Sourcing
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33,089
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|
|
|
31,921
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3.7
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%
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|
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101,017
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107,673
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-6.2
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%
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Payment services
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15,500
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14,095
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10.0
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%
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45,012
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|
|
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40,785
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10.4
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%
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Total net revenues
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423,066
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|
382,580
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10.6
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%
|
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|
1,231,273
|
|
|
|
1,079,814
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14.0
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%
|
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Operating expenses
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239,101
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|
216,247
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10.6
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%
|
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|
|
710,498
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|
|
|
621,019
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|
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14.4
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%
|
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Operating income
|
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|
183,965
|
|
|
|
166,333
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10.6
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%
|
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|
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520,775
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|
|
|
458,795
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13.5
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%
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Net income
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$
|
114,347
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|
|
$
|
102,627
|
|
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11.4
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%
|
|
|
$
|
322,398
|
|
|
$
|
283,865
|
|
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13.6
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%
|
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Diluted EPS
|
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$
|
0.70
|
|
|
$
|
0.62
|
|
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12.9
|
%
|
|
|
$
|
1.95
|
|
|
$
|
1.71
|
|
|
14.0
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%
|
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|
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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(R) 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 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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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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(unaudited, in thousands, except per share data)
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Three months ended
|
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Nine months ended
|
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|
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September 30,
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September 30,
|
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|
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2011
|
|
|
2010
|
|
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2011
|
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2010
|
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Revenues:
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|
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Transportation
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$
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2,280,208
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|
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$
|
2,026,154
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|
|
$
|
6,540,266
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|
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$
|
5,629,334
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Sourcing
|
|
|
|
399,220
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|
|
|
380,108
|
|
|
|
1,182,784
|
|
|
|
1,278,837
|
|
Payment Services
|
|
|
|
15,500
|
|
|
|
14,095
|
|
|
|
45,012
|
|
|
|
40,785
|
|
Total revenues
|
|
|
|
2,694,928
|
|
|
|
2,420,357
|
|
|
|
7,768,062
|
|
|
|
6,948,956
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Total costs and expenses
|
|
|
|
2,510,963
|
|
|
|
2,254,024
|
|
|
|
7,247,287
|
|
|
|
6,490,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
183,965
|
|
|
|
166,333
|
|
|
|
520,775
|
|
|
|
458,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income
|
|
|
|
50
|
|
|
|
149
|
|
|
|
601
|
|
|
|
986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Net income
|
|
|
$
|
114,347
|
|
|
$
|
102,627
|
|
|
$
|
322,398
|
|
|
$
|
283,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited, in thousands)
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
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
|
|
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
|
|
Total Assets
|
|
|
$
|
2,179,438
|
|
|
$
|
1,995,699
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' investment
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and outstanding checks
|
|
|
$
|
740,977
|
|
|
$
|
627,561
|
|
Accrued compensation
|
|
|
|
105,439
|
|
|
|
96,991
|
|
Other accrued expenses
|
|
|
|
50,293
|
|
|
|
47,055
|
|
Total current liabilities
|
|
|
|
896,709
|
|
|
|
771,607
|
|
|
|
|
|
|
|
|
Long term liabilities
|
|
|
|
14,505
|
|
|
|
20,024
|
|
Total liabilities
|
|
|
|
911,214
|
|
|
|
791,631
|
|
|
|
|
|
|
|
|
Total stockholders' investment
|
|
|
|
1,268,224
|
|
|
|
1,204,068
|
|
Total liabilities and stockholders' investment
|
|
|
$
|
2,179,438
|
|
|
$
|
1,995,699
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(unaudited, in thousands, except operational data)
|
|
|
|
|
Nine months ended
|
|
|
|
September 30,
|
|
|
|
2011
|
|
|
2010
|
|
Operating activities:
|
|
|
|
|
|
|
|
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)
|
|
Net cash provided by operating activities
|
|
|
|
293,555
|
|
|
|
137,136
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
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)
|
|
Net cash used for investing activities
|
|
|
|
(14,609)
|
|
|
|
(9,249)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
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)
|
|
Net cash used for financing activities
|
|
|
|
(292,651)
|
|
|
|
(214,034)
|
|
Effect of exchange rates on cash
|
|
|
|
(2,165)
|
|
|
|
(1,728)
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
(15,870)
|
|
|
|
(87,875)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
398,607
|
|
|
|
337,308
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
382,737
|
|
|
$
|
249,433
|
|
|
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As of September 30,
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2011
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2010
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Operational Data:
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Employees
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8,120
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7,589
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Branches
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235
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232
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SOURCE: C.H. Robinson Worldwide, Inc.
C.H. Robinson Worldwide, Inc.
Chad Lindbloom, chief financial officer, 1-952-937-7779
Angie Freeman, vice president, 1-952-937-7847
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