MINNEAPOLIS--(BUSINESS WIRE)--
C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today
reported financial results for the quarter ended March 31, 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 March 31,
|
|
|
|
2017
|
|
2016
|
|
%
change
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
$
|
3,415,125
|
|
$
|
3,073,943
|
|
11.1
|
%
|
|
Net revenues:
|
|
|
|
|
|
|
|
Transportation
|
|
|
|
|
|
|
|
Truckload
|
|
$
|
304,122
|
|
$
|
321,684
|
|
-5.5
|
%
|
|
LTL
|
|
|
97,623
|
|
|
91,293
|
|
6.9
|
%
|
|
Intermodal
|
|
|
7,492
|
|
|
9,264
|
|
-19.1
|
%
|
|
Ocean
|
|
|
62,875
|
|
|
58,669
|
|
7.2
|
%
|
|
Air
|
|
|
21,817
|
|
|
18,409
|
|
18.5
|
%
|
|
Customs
|
|
|
16,078
|
|
|
10,724
|
|
49.9
|
%
|
|
Other logistics services
|
|
|
28,151
|
|
|
24,023
|
|
17.2
|
%
|
|
Total transportation
|
|
|
538,158
|
|
|
534,066
|
|
0.8
|
%
|
|
Sourcing
|
|
|
30,408
|
|
|
29,269
|
|
3.9
|
%
|
|
Total net revenues
|
|
|
568,566
|
|
|
563,335
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
380,608
|
|
|
364,383
|
|
4.5
|
%
|
|
Income from operations
|
|
|
187,958
|
|
|
198,952
|
|
-5.5
|
%
|
|
Net income
|
|
$
|
122,080
|
|
$
|
118,963
|
|
2.6
|
%
|
|
Diluted EPS
|
|
$
|
0.86
|
|
$
|
0.83
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Our total revenues increased 11.1 percent in the first quarter of 2017
compared to the first quarter of 2016. The increase in total revenues
was driven by volume growth across all of our transportation services.
Our total net revenues increased 0.9 percent in the first quarter of
2017 compared to the first 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 first quarter
of 2017.
For the first quarter, our total operating expenses increased 4.5
percent. Personnel expenses increased 4.7 percent in the first quarter
of 2017 compared to the first quarter of 2016. The increase in personnel
expense was the result of an increase in average headcount of 7.8
percent in the first quarter of 2017 compared to the first quarter of
2016, partially offset by decreased expenses related to incentive plans
that are designed to keep expenses variable with changes in net revenues
and profitability. Selling, general, and administrative expenses
increased 3.7 percent. This increase was driven by increases in costs
related to the APC acquisition, the provision for bad debt, and
warehouse costs, partially offset by the collection of a previously
resolved legal claim of $8.75 million.
Interest and other expenses increased approximately $0.5 million, or 6.0
percent, in the first quarter of 2017 compared to the first quarter of
2016. Interest expense increased due to higher average short term debt
balance and higher interest on the outstanding balance of those
borrowings. This was partially offset by decreased revaluation impact
related to foreign currency.
The provision for income taxes decreased 20.6 percent in the first
quarter of 2017 compared to the first 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 $9.3 million in the first
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 March 31,
|
|
|
|
2017
|
|
2016
|
|
%
change
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
|
$
|
2,259,252
|
|
$
|
2,045,479
|
|
10.5
|
%
|
|
Net revenues
|
|
|
372,440
|
|
|
383,798
|
|
-3.0
|
%
|
|
Income from operations
|
|
|
155,877
|
|
|
162,351
|
|
-4.0
|
%
|
|
(1) Excludes intersegment revenues.
|
|
|
NAST total revenues increased 10.5 percent to $2.3 billion in the first
quarter of 2017 from $2.0 billion in the first quarter of 2016. This
increase was driven by volume increases in all services. NAST net
revenues decreased 3.0 percent to $372.4 million in the first quarter of
2017 compared to $383.8 million in the first quarter of 2016, primarily
from a decline in truckload net revenues.
NAST truckload net revenues decreased 5.7 percent to $267.6 million in
the first quarter of 2017 compared to $283.7 million in the first
quarter of 2016, while truckload volumes increased approximately 11
percent. NAST truckload net revenue margin decreased in the first
quarter of 2017 compared to the first quarter of 2016, due primarily to
lower customer pricing.
NAST accounted for approximately 92 percent of our total North America
truckload net revenues in both the first quarter of 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 decreased approximately four percent in the
first quarter of 2017 compared to the first quarter of 2016. Our
truckload transportation costs decreased approximately two percent,
excluding the estimated impacts of the change in fuel prices.
NAST LTL net revenues increased 7.1 percent to $93.5 million in the
first quarter of 2017 compared to $87.3 million in the first quarter of
2016. NAST LTL volumes increased approximately 8.5 percent in the first
quarter of 2017 compared to the first quarter of 2016, and net revenue
margin decreased slightly.
NAST intermodal net revenues decreased 17.3 percent to $7.2 million in
the first quarter of 2017 compared to $8.7 million in the first quarter
of 2016. This was primarily due to net revenue margin declines,
partially offset by increased volumes. During the first quarter of 2017,
intermodal opportunities were negatively impacted by the alternative
lower cost truck market.
NAST operating expenses decreased 2.2 percent in the first quarter of
2017 to $216.6 million compared to $221.4 million in the first quarter
of 2016. This decrease was due to the collection of a previously
resolved legal claim of $8.75 million as well as decreases in personnel
expenses. The decrease in personnel expense is related to incentive
plans that are designed to keep expenses variable with changes in net
revenues and profitability, partially offset by an increase in average
headcount of 2.7 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 March 31,
|
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
|
$
|
468,788
|
|
$
|
351,112
|
|
33.5
|
%
|
|
Net revenues
|
|
|
106,546
|
|
|
92,866
|
|
14.7
|
%
|
|
Income from operations
|
|
|
16,206
|
|
|
16,857
|
|
-3.9
|
%
|
|
(1) Excludes intersegment revenues.
|
|
|
|
|
|
|
|
|
|
|
|
Global Forwarding total revenues increased 33.5 percent in the first
quarter of 2017 to $468.8 million from $351.1 million in the first
quarter of 2016. Global Forwarding net revenues increased 14.7 percent
to $106.5 million in the first quarter of 2017 compared to $92.9 million
in the first quarter of 2016.
Ocean net revenues increased 8.3 percent to $63.4 million in the first
quarter of 2017 compared to $58.6 million in the first quarter of 2016.
Ocean net revenues were negatively impacted by margin compression on
contractual business with fixed pricing. Air net revenues increased 17.2
percent to $20.4 million in the first quarter of 2017 compared to $17.4
million in the first quarter of 2016. Customs net revenues increased
50.0 percent to $16.1 million in the first quarter of 2017 compared to
$10.7 million in the first quarter of 2016. These increases were
primarily due to volume increases, including those from APC.
Global Forwarding operating expenses increased 18.9 percent in the first
quarter of 2017 to $90.3 million from $76.0 million in the first quarter
of 2016. These increases were driven by an average headcount increase of
12.6 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 March 31,
|
|
|
|
2017
|
|
2016
|
|
%
change
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
|
$
|
550,445
|
|
$
|
564,093
|
|
-2.4
|
%
|
|
Net revenues
|
|
|
56,837
|
|
|
58,185
|
|
-2.3
|
%
|
|
Income from operations
|
|
|
14,652
|
|
|
17,733
|
|
-17.4
|
%
|
|
(1) Excludes intersegment revenues.
|
|
|
Robinson Fresh total revenues decreased 2.4 percent to $550.4 million in
the first quarter of 2017 from $564.1 million in the first quarter of
2016. Robinson Fresh net revenues decreased 2.3 percent to $56.8 million
in the first quarter of 2017 compared to $58.2 million in the first
quarter of 2016 as a result of declines in transportation net revenues,
partially offset by increases in sourcing net revenues.
Robinson Fresh sourcing net revenues increased 3.9 percent to $30.4
million in the first quarter of 2017 compared to $29.3 million in the
first quarter of 2016. This was primarily the result of higher net
revenue margin due to lower product costs, partially offset by a
decrease in case volumes.
Robinson Fresh transportation net revenues decreased 8.6 percent to
$26.4 million in the first quarter of 2017 compared to $28.9 million in
the first quarter of 2016, primarily due to decreases in truckload
revenue, partially offset by increases in their other transportation
services net revenues. Robinson Fresh transportation net revenue margin
decreased in the first quarter of 2017 compared to the first quarter of
2016, due primarily to lower customer pricing.
Robinson Fresh operating expenses increased 4.3 percent in the first
quarter of 2017 to $42.2 million from $40.5 million in the first quarter
of 2016. This was primarily due to an increase in 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 revenues.
Europe Surface Transportation provides services similar to NAST across
the European continent. Summarized financial results are as follows:
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Net revenues
|
|
2017
|
|
2016
|
|
%
change
|
|
|
|
|
|
|
|
|
|
Managed Services
|
|
$
|
17,193
|
|
$
|
14,579
|
|
17.9
|
%
|
|
Other Surface Transportation
|
|
|
15,550
|
|
|
13,907
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
Managed Services net revenues increased 17.9 percent in the first
quarter of 2017 to $17.2 million compared to $14.6 million the first
quarter of 2016. This increase was a result of growth from both new and
existing customers. Other surface transportation increased 11.8 percent
in the first quarter of 2017 to $15.6 million compared to $13.9 million
in the first quarter of 2016, primarily the result of growth in Europe
Surface Transportation.
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.
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; the impact of war on
the economy; risks of unexpected or unanticipated events or
opportunities that might require additional capital expenditures; 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 First Quarter 2017 Earnings Conference Call
Wednesday,
April 26, 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 13657306
Webcast replay available through Investor
Relations link at www.chrobinson.com
Telephone
audio replay available until 11:30 a.m. Eastern Time on May 3, 2017:
877-660-6853;
passcode: 13657306#
International
callers dial +1-201-612-7415
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited, in thousands, except per share data)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Transportation
|
|
$
|
3,102,043
|
|
|
$
|
2,713,688
|
|
|
Sourcing
|
|
|
313,082
|
|
|
|
360,255
|
|
|
Total revenues
|
|
|
3,415,125
|
|
|
|
3,073,943
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
Purchased transportation and related services
|
|
|
2,563,885
|
|
|
|
2,179,622
|
|
|
Purchased products sourced for resale
|
|
|
282,674
|
|
|
|
330,986
|
|
|
Personnel expenses
|
|
|
290,504
|
|
|
|
277,497
|
|
|
Other selling, general, and administrative expenses
|
|
|
90,104
|
|
|
|
86,886
|
|
|
Total costs and expenses
|
|
|
3,227,167
|
|
|
|
2,874,991
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
187,958
|
|
|
|
198,952
|
|
|
|
|
|
|
|
|
Interest and other expense
|
|
|
(9,302
|
)
|
|
|
(8,772
|
)
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
178,656
|
|
|
|
190,180
|
|
|
Provisions for income taxes
|
|
|
56,576
|
|
|
|
71,217
|
|
|
Net income
|
|
$
|
122,080
|
|
|
$
|
118,963
|
|
|
|
|
|
|
|
|
Net income per share (basic)
|
|
$
|
0.86
|
|
|
$
|
0.83
|
|
|
Net income per share (diluted)
|
|
$
|
0.86
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic)
|
|
|
141,484
|
|
|
|
143,525
|
|
|
Weighted average shares outstanding (diluted)
|
|
|
141,858
|
|
|
|
143,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,259,252
|
|
$
|
468,788
|
|
$
|
550,445
|
|
$
|
136,640
|
|
$
|
-
|
|
|
$
|
3,415,125
|
|
Intersegment revenues (1)
|
|
|
101,154
|
|
|
8,143
|
|
|
33,340
|
|
|
6,878
|
|
|
(149,515
|
)
|
|
|
-
|
|
Total revenues
|
|
$
|
2,360,406
|
|
$
|
476,931
|
|
$
|
583,785
|
|
$
|
143,518
|
|
$
|
(149,515
|
)
|
|
$
|
3,415,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
372,440
|
|
$
|
106,546
|
|
$
|
56,837
|
|
$
|
32,743
|
|
|
-
|
|
|
$
|
568,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
155,877
|
|
$
|
16,206
|
|
$
|
14,652
|
|
$
|
1,223
|
|
|
-
|
|
|
$
|
187,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
5,590
|
|
$
|
8,020
|
|
$
|
1,146
|
|
$
|
7,675
|
|
|
-
|
|
|
$
|
22,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,126,900
|
|
$
|
699,139
|
|
$
|
409,972
|
|
$
|
539,733
|
|
|
-
|
|
|
$
|
3,775,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
|
6,844
|
|
|
3,926
|
|
|
961
|
|
|
2,548
|
|
|
|
|
14,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Three months ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,045,479
|
|
$
|
351,112
|
|
$
|
564,093
|
|
$
|
113,259
|
|
$
|
-
|
|
|
$
|
3,073,943
|
|
Intersegment revenues(1)
|
|
|
60,269
|
|
|
6,080
|
|
|
23,896
|
|
|
313
|
|
|
(90,558
|
)
|
|
|
-
|
|
Total revenues
|
|
$
|
2,105,748
|
|
$
|
357,192
|
|
$
|
587,989
|
|
$
|
113,572
|
|
$
|
(90,558
|
)
|
|
$
|
3,073,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
383,798
|
|
$
|
92,866
|
|
$
|
58,185
|
|
$
|
28,486
|
|
|
-
|
|
|
$
|
563,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
162,351
|
|
$
|
16,857
|
|
$
|
17,733
|
|
$
|
2,011
|
|
|
-
|
|
|
$
|
198,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
5,502
|
|
$
|
5,079
|
|
$
|
768
|
|
$
|
5,526
|
|
|
-
|
|
|
$
|
16,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
1,854,240
|
|
$
|
514,958
|
|
$
|
370,319
|
|
$
|
422,728
|
|
|
-
|
|
|
$
|
3,162,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
|
6,666
|
|
|
3,488
|
|
|
922
|
|
|
2,175
|
|
|
-
|
|
|
|
13,251
|
|
|
|
|
|
|
|
|
|
|
(1) Intersegment revenues represent the sales between our segments
and are eliminated to reconcile to our consolidated results.
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited, in thousands)
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
229,794
|
|
$
|
247,666
|
|
Receivables, net
|
|
|
1,802,777
|
|
|
1,711,191
|
|
Other current assets
|
|
|
60,039
|
|
|
49,245
|
|
Total current assets
|
|
|
2,092,610
|
|
|
2,008,102
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
235,059
|
|
|
232,953
|
|
Intangible and other assets
|
|
|
1,448,075
|
|
|
1,446,703
|
|
Total assets
|
|
$
|
3,775,744
|
|
$
|
3,687,758
|
|
|
|
|
|
|
|
Liabilities and stockholders’ investment
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and outstanding checks
|
|
$
|
967,257
|
|
$
|
921,788
|
|
Accrued compensation
|
|
|
60,243
|
|
|
98,107
|
|
Accrued income taxes
|
|
|
59,007
|
|
|
15,472
|
|
Other accrued expenses
|
|
|
50,860
|
|
|
70,351
|
|
Current portion of debt
|
|
|
740,000
|
|
|
740,000
|
|
Total current liabilities
|
|
|
1,877,367
|
|
|
1,845,718
|
|
|
|
|
|
|
|
Noncurrent income taxes payable
|
|
|
17,919
|
|
|
18,849
|
|
Deferred tax liabilities
|
|
|
64,351
|
|
|
65,122
|
|
Long term debt
|
|
|
500,000
|
|
|
500,000
|
|
Other long-term liabilities
|
|
|
233
|
|
|
222
|
|
Total liabilities
|
|
|
2,459,870
|
|
|
2,429,911
|
|
|
|
|
|
|
|
Total stockholders’ investment
|
|
|
1,315,874
|
|
|
1,257,847
|
|
Total liabilities and stockholders’ investment
|
|
$
|
3,775,744
|
|
$
|
3,687,758
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited, in thousands, except operational data)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
2017
|
|
2016
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
122,080
|
|
|
$
|
118,963
|
|
|
Stock-based compensation
|
|
|
12,318
|
|
|
|
15,179
|
|
|
Depreciation and amortization
|
|
|
22,431
|
|
|
|
16,875
|
|
|
Provision for doubtful accounts
|
|
|
3,618
|
|
|
|
85
|
|
|
Deferred income taxes
|
|
|
(2,048
|
)
|
|
|
15,350
|
|
|
Excess tax benefit on stock-based compensation
|
|
|
(9,344
|
)
|
|
|
(13,827
|
)
|
|
Other
|
|
|
485
|
|
|
|
180
|
|
|
Changes in operating elements, net of acquisitions:
|
|
|
|
|
|
Receivables
|
|
|
(95,204
|
)
|
|
|
42,295
|
|
|
Prepaid expenses and other
|
|
|
(6,049
|
)
|
|
|
(7,378
|
)
|
|
Other non-current assets
|
|
|
(1,016
|
)
|
|
|
-
|
|
|
Accounts payable and outstanding checks
|
|
|
47,201
|
|
|
|
(22,783
|
)
|
|
Accrued compensation and profit-sharing contribution
|
|
|
(37,864
|
)
|
|
|
(84,431
|
)
|
|
Accrued income taxes
|
|
|
51,949
|
|
|
|
32,732
|
|
|
Other accrued liabilities
|
|
|
(15,861
|
)
|
|
|
(9,090
|
)
|
|
Net cash provided by operating activities
|
|
|
92,696
|
|
|
|
104,150
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(13,537
|
)
|
|
|
(13,121
|
)
|
|
Purchases and development of software
|
|
|
(3,183
|
)
|
|
|
(4,704
|
)
|
|
Acquisitions, net of cash
|
|
|
(1,780
|
)
|
|
|
-
|
|
|
Other
|
|
|
56
|
|
|
|
(770
|
)
|
|
Net cash used for investing activities
|
|
|
(18,444
|
)
|
|
|
(18,595
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Borrowings on line of credit
|
|
|
2,450,000
|
|
|
|
1,480,000
|
|
|
Repayments on line of credit
|
|
|
(2,450,000
|
)
|
|
|
(1,460,000
|
)
|
|
Net repurchases of common stock
|
|
|
(32,131
|
)
|
|
|
(46,529
|
)
|
|
Excess tax benefit on stock-based compensation
|
|
|
-
|
|
|
|
13,827
|
|
|
Cash dividends
|
|
|
(64,597
|
)
|
|
|
(63,888
|
)
|
|
Net cash used for financing activities
|
|
|
(96,728
|
)
|
|
|
(76,590
|
)
|
|
Effect of exchange rates on cash
|
|
|
4,604
|
|
|
|
2,212
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
(17,872
|
)
|
|
|
11,177
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
247,666
|
|
|
|
168,229
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
229,794
|
|
|
$
|
179,406
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
|
|
|
|
2017
|
|
2016
|
|
Operational Data:
|
|
|
|
|
|
Employees
|
|
|
14,432
|
|
|
|
13,343
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170425006636/en/