MINNEAPOLIS--(BUSINESS WIRE)--
C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today
reported financial results for the quarter ended June 30, 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).
|
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|
|
|
|
|
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Three months ended June 30,
|
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Six months ended June 30,
|
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|
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2017
|
|
2016
|
|
%
Change
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2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total revenues
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$
|
3,710,018
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$
|
3,299,741
|
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12.4
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%
|
|
|
$
|
7,125,143
|
|
$
|
6,373,684
|
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11.8
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%
|
|
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|
|
|
|
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|
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|
|
|
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Net revenues:
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|
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Transportation
|
|
|
|
|
|
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|
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Truckload
|
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$
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282,718
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$
|
329,740
|
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-14.3
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%
|
|
|
$
|
586,840
|
|
$
|
651,424
|
|
-9.9
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%
|
|
LTL
|
|
|
102,213
|
|
|
99,778
|
|
2.4
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%
|
|
|
|
199,836
|
|
|
191,071
|
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4.6
|
%
|
|
Intermodal
|
|
|
8,308
|
|
|
9,021
|
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-7.9
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%
|
|
|
|
15,800
|
|
|
18,285
|
|
-13.6
|
%
|
|
Ocean
|
|
|
73,438
|
|
|
60,068
|
|
22.3
|
%
|
|
|
|
136,313
|
|
|
118,737
|
|
14.8
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%
|
|
Air
|
|
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25,820
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|
|
20,118
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|
28.3
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%
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|
|
47,637
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|
|
38,527
|
|
23.6
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%
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Customs
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16,311
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|
|
11,605
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40.6
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%
|
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|
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32,389
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|
|
22,329
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45.1
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%
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Other logistics services
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|
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29,832
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|
|
26,171
|
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14.0
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%
|
|
|
|
57,983
|
|
|
50,194
|
|
15.5
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%
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Total transportation
|
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538,640
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|
|
556,501
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-3.2
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%
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|
|
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1,076,798
|
|
|
1,090,567
|
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-1.3
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%
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Sourcing
|
|
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35,149
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|
|
37,714
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-6.8
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%
|
|
|
|
65,557
|
|
|
66,983
|
|
-2.1
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%
|
|
Total net revenues
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|
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573,789
|
|
|
594,215
|
|
-3.4
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%
|
|
|
|
1,142,355
|
|
|
1,157,550
|
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-1.3
|
%
|
|
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|
|
|
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|
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Operating expenses
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|
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391,969
|
|
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360,468
|
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8.7
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%
|
|
|
|
772,577
|
|
|
724,851
|
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6.6
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%
|
|
Income from operations
|
|
|
181,820
|
|
|
233,747
|
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-22.2
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%
|
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|
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369,778
|
|
|
432,699
|
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-14.5
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%
|
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Net income
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$
|
111,071
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$
|
143,090
|
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-22.4
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%
|
|
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$
|
233,151
|
|
$
|
262,053
|
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-11.0
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%
|
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Diluted EPS
|
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$
|
0.78
|
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$
|
1.00
|
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-22.0
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%
|
|
|
$
|
1.65
|
|
$
|
1.83
|
|
-9.8
|
%
|
|
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|
|
|
|
|
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|
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“We were able to continue to achieve market share gains during the
second quarter; however, our income and EPS results were disappointing
and finished below our expectations,” said John Wiehoff, Chairman and
Chief Executive Officer of C.H. Robinson. “Our results were
significantly impacted by truckload margin compression. Purchased
transportation costs increased significantly during the quarter, while
much of our customer pricing is committed at relatively flat prices. We
have a strong history of honoring our customer contracts while adjusting
to the market conditions, and I’m confident we will adapt and execute
those changes in the months to come. We continue to execute against our
long-term strategic initiatives to grow and diversify. The Global
Forwarding business delivered solid results in the second quarter with
both double digit net revenue and operating income growth.”
Our total revenues increased 12.4 percent in the second quarter of 2017
compared to the second quarter of 2016. The increase in total revenues
was driven by volume growth across all of our transportation services.
Our total net revenues decreased 3.4 percent in the second quarter of
2017 compared to the second 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
second quarter of 2017.
For the second quarter of 2017, our total operating expenses increased
8.7 percent. Personnel expenses increased 5.2 percent in the second
quarter of 2017 compared to the second quarter of 2016. The increase in
personnel expense was the result of an increase in average headcount of
8.1 percent in the second quarter of 2017 compared to the second quarter
of 2016, partially offset by decreased expenses related to variable
incentive plans. Other selling, general, and administrative expenses
increased 19.4 percent. This increase was driven by increases in claims,
costs related to the addition of the APC business, the provision for bad
debt, and warehouse costs.
Interest and other expenses increased approximately $3.1 million, or
49.5 percent, in the second quarter of 2017 compared to the second
quarter of 2016. Interest expense increased due to higher average debt
balance during the second quarter of 2017 compared to the second quarter
of 2016.
The provision for income taxes decreased 27.3 percent in the second
quarter of 2017 compared to the second 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 $1.2 million in the second
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):
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Three months ended June 30,
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|
Six months ended June 30,
|
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
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$2,381,551
|
|
$2,158,615
|
|
10.3
|
%
|
|
|
$4,640,803
|
|
$4,204,094
|
|
10.4
|
%
|
|
Net revenues
|
|
359,906
|
|
399,203
|
|
-9.8
|
%
|
|
|
732,346
|
|
783,001
|
|
-6.5
|
%
|
|
Income from operations
|
|
140,284
|
|
182,721
|
|
-23.2
|
%
|
|
|
296,161
|
|
345,072
|
|
-14.2
|
%
|
|
(1) Excludes intersegment revenues.
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|
NAST total revenues increased 10.3 percent to $2.4 billion in the second
quarter of 2017 from $2.2 billion in the second quarter of 2016. This
increase was driven by volume increases in all services. NAST net
revenues decreased 9.8 percent to $359.9 million in the second quarter
of 2017 compared to $399.2 million in the second quarter of 2016,
primarily from a decline in truckload net revenues.
NAST truckload net revenues decreased 14.1 percent to $250.0 million in
the second quarter of 2017 compared to $291.1 million in the second
quarter of 2016, while truckload volumes increased approximately eight
percent. NAST truckload net revenue margin decreased in the second
quarter of 2017 compared to the second quarter of 2016, due primarily to
increased transportation costs.
NAST accounted for approximately 92 percent of our total North America
truckload net revenues in the second quarter of both 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 was flat in the second quarter of 2017 compared
to the second quarter of 2016. However, our truckload transportation
costs increased approximately four percent, excluding the estimated
impacts of the change in fuel prices.
NAST LTL net revenues increased 2.1 percent to $97.1 million in the
second quarter of 2017 compared to $95.1 million in the second quarter
of 2016. NAST LTL volumes increased approximately 6.5 percent in the
second quarter of 2017 compared to the second quarter of 2016, and net
revenue margin decreased slightly.
NAST intermodal net revenues decreased 6.3 percent to $7.8 million in
the second quarter of 2017 compared to $8.3 million in the second
quarter of 2016. Net revenues decreased while volume increased in the
second quarter of 2017 compared to the second quarter of 2016 due to
contractual volume growth, partially offset by a decrease in
transactional business.
NAST operating expenses increased 1.5 percent in the second quarter of
2017 to $219.6 million compared to $216.5 million in the second quarter
of 2016. This increase was due to increases in selling, general, and
administrative expenses, partially offset by a small decrease in
personnel expenses. The decrease in personnel expense is related to
variable incentive plans, partially offset by an increase in average
headcount of 3.0 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):
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|
|
|
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
|
$528,820
|
|
$356,773
|
|
48.2
|
%
|
|
|
$997,608
|
|
$707,885
|
|
40.9
|
%
|
|
Net revenues
|
|
121,023
|
|
97,224
|
|
24.5
|
%
|
|
|
227,569
|
|
190,090
|
|
19.7
|
%
|
|
Income from operations
|
|
27,675
|
|
22,396
|
|
23.6
|
%
|
|
|
43,881
|
|
39,253
|
|
11.8
|
%
|
|
(1) Excludes intersegment revenues.
|
|
|
Global Forwarding total revenues increased 48.2 percent in the second
quarter of 2017 to $528.8 million from $356.8 million in the second
quarter of 2016. Global Forwarding net revenues increased 24.5 percent
to $121.0 million in the second quarter of 2017 compared to $97.2
million in the second quarter of 2016.
Ocean net revenues increased 22.0 percent to $73.2 million in the second
quarter of 2017 compared to $60.0 million in the second quarter of 2016.
Air net revenues increased 31.0 percent to $24.5 million in the second
quarter of 2017 compared to $18.7 million in the second quarter of 2016.
Customs net revenues increased 40.6 percent to $16.3 million in the
second quarter of 2017 compared to $11.6 million in the second quarter
of 2016. These increases were primarily due to volume increases,
including those from APC. APC accounted for approximately half of the
Global Forwarding net revenue growth.
Global Forwarding operating expenses increased 24.8 percent in the
second quarter of 2017 to $93.3 million from $74.8 million in the second
quarter of 2016. These increases were driven by an average headcount
increase of 14.4 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 June 30,
|
|
|
Six months ended June 30,
|
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues(1)
|
|
$657,003
|
|
$660,204
|
|
-0.5
|
%
|
|
|
$1,207,448
|
|
$1,224,297
|
|
-1.4
|
%
|
|
Net revenues
|
|
60,846
|
|
67,820
|
|
-10.3
|
%
|
|
|
117,683
|
|
126,005
|
|
-6.6
|
%
|
|
Income from operations
|
|
14,249
|
|
27,311
|
|
-47.8
|
%
|
|
|
28,901
|
|
45,044
|
|
-35.8
|
%
|
|
(1) Excludes intersegment revenues.
|
|
|
Robinson Fresh total revenues decreased 0.5 percent to $657.0 million in
the second quarter of 2017 from $660.2 million in the second quarter of
2016. Robinson Fresh net revenues decreased 10.3 percent to $60.8
million in the second quarter of 2017 compared to $67.8 million in the
second quarter of 2016 as a result of declines in transportation and
sourcing net revenues.
Robinson Fresh sourcing net revenues decreased 6.8 percent to $35.1
million in the second quarter of 2017 compared to $37.7 million in the
second quarter of 2016. This was primarily the result of lower net
revenue per case, as sourcing revenues and costs declined at the same
rate. Case volumes were flat in the second quarter of 2017 compared to
the second quarter of 2016.
Robinson Fresh transportation net revenues decreased 14.6 percent to
$25.7 million in the second quarter of 2017 compared to $30.1 million in
the second quarter of 2016, primarily due to decreases in truckload
revenue. Robinson Fresh transportation net revenue margin decreased in
the second quarter of 2017 compared to the second quarter of 2016.
Robinson Fresh operating expenses increased 15.0 percent in the second
quarter of 2017 to $46.6 million from $40.5 million in the second
quarter of 2016. This was primarily due to an increase in claims
expenses, 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 net
revenues. Europe Surface Transportation provides services similar to
NAST across the European continent. Net revenues for Managed Services
and Other Surface Transportation are summarized as follows:
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
Net revenues
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed Services
|
|
$18,164
|
|
$15,775
|
|
15.1%
|
|
|
$35,357
|
|
$30,354
|
|
16.5%
|
|
Other Surface Transportation
|
|
13,850
|
|
14,193
|
|
-2.4%
|
|
|
29,400
|
|
28,100
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed Services net revenues increased 15.1 percent in the second
quarter of 2017 to $18.2 million compared to $15.8 million the second
quarter of 2016. This increase was a result of new business with new and
existing customers. Other surface transportation net revenues decreased
2.4 percent in the second quarter of 2017 to $13.9 million compared to
$14.2 million in the second quarter of 2016. This decrease is primarily
the result of lower margins in the surface transportation business in
Europe.
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; risks of unexpected
or unanticipated events or opportunities that might require additional
capital expenditures; the impact of war on the economy; 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 Second Quarter 2017 Earnings Conference Call
Thursday,
July 20, 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 13664562
Telephone audio replay available until
11:30 a.m. Eastern Time on July 27, 2017: 877-660-6853; passcode:
13664562#
International callers dial +1-201-612-7415
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited, in thousands, except per share data)
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
$
|
3,319,995
|
|
|
$
|
2,881,496
|
|
|
|
$
|
6,422,038
|
|
|
$
|
5,595,184
|
|
|
Sourcing
|
|
|
390,023
|
|
|
|
418,245
|
|
|
|
|
703,105
|
|
|
|
778,500
|
|
|
Total revenues
|
|
|
3,710,018
|
|
|
|
3,299,741
|
|
|
|
|
7,125,143
|
|
|
|
6,373,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Purchased transportation and related services
|
|
|
2,781,355
|
|
|
|
2,324,995
|
|
|
|
|
5,345,240
|
|
|
|
4,504,617
|
|
|
Purchased products sourced for resale
|
|
|
354,874
|
|
|
|
380,531
|
|
|
|
|
637,548
|
|
|
|
711,517
|
|
|
Personnel expenses
|
|
|
284,220
|
|
|
|
270,251
|
|
|
|
|
574,724
|
|
|
|
547,748
|
|
|
Other selling, general, and administrative expenses
|
|
|
107,749
|
|
|
|
90,217
|
|
|
|
|
197,853
|
|
|
|
177,103
|
|
|
Total costs and expenses
|
|
|
3,528,198
|
|
|
|
3,065,994
|
|
|
|
|
6,755,365
|
|
|
|
5,940,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
181,820
|
|
|
|
233,747
|
|
|
|
|
369,778
|
|
|
|
432,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense
|
|
|
(9,368
|
)
|
|
|
(6,265
|
)
|
|
|
|
(18,670
|
)
|
|
|
(15,037
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
172,452
|
|
|
|
227,482
|
|
|
|
|
351,108
|
|
|
|
417,662
|
|
|
Provisions for income taxes
|
|
|
61,381
|
|
|
|
84,392
|
|
|
|
|
117,957
|
|
|
|
155,609
|
|
|
Net income
|
|
$
|
111,071
|
|
|
$
|
143,090
|
|
|
|
$
|
233,151
|
|
|
$
|
262,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share (basic)
|
|
$
|
0.79
|
|
|
$
|
1.00
|
|
|
|
$
|
1.65
|
|
|
$
|
1.83
|
|
|
Net income per share (diluted)
|
|
$
|
0.78
|
|
|
$
|
1.00
|
|
|
|
$
|
1.65
|
|
|
$
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic)
|
|
|
141,061
|
|
|
|
142,998
|
|
|
|
|
141,229
|
|
|
|
143,259
|
|
|
Weighted average shares outstanding (diluted)
|
|
|
141,587
|
|
|
|
143,216
|
|
|
|
|
141,713
|
|
|
|
143,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Three months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,381,551
|
|
$528,820
|
|
$657,003
|
|
$142,644
|
|
$
|
-
|
|
|
$3,710,018
|
|
Intersegment revenues (1)
|
|
112,243
|
|
7,440
|
|
39,669
|
|
3,670
|
|
|
(163,022
|
)
|
|
-
|
|
Total revenues
|
|
$2,493,794
|
|
$536,260
|
|
$696,672
|
|
$146,314
|
|
$
|
(163,022
|
)
|
|
$3,710,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$359,906
|
|
$121,023
|
|
$60,846
|
|
$32,014
|
|
|
-
|
|
|
$573,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$140,284
|
|
$27,675
|
|
$14,249
|
|
($388)
|
|
|
-
|
|
|
$181,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$5,706
|
|
$8,099
|
|
$1,198
|
|
$7,943
|
|
|
-
|
|
|
$22,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$2,189,711
|
|
$741,443
|
|
$455,214
|
|
$579,521
|
|
|
-
|
|
|
$3,965,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
7,003
|
|
4,021
|
|
980
|
|
2,616
|
|
|
|
14,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$2,158,615
|
|
$356,773
|
|
$660,204
|
|
$124,149
|
|
$
|
-
|
|
|
$3,299,741
|
|
Intersegment revenues(1)
|
|
71,543
|
|
8,763
|
|
27,049
|
|
229
|
|
|
(107,584
|
)
|
|
-
|
|
Total revenues
|
|
$2,230,158
|
|
$365,536
|
|
$687,253
|
|
$124,378
|
|
$
|
(107,584
|
)
|
|
$3,299,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$399,203
|
|
$97,224
|
|
$67,820
|
|
$29,968
|
|
|
-
|
|
|
$594,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$182,721
|
|
$22,396
|
|
$27,311
|
|
$1,319
|
|
|
-
|
|
|
$233,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$5,502
|
|
$5,079
|
|
$839
|
|
$6,764
|
|
|
-
|
|
|
$18,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$1,936,149
|
|
$505,778
|
|
$427,272
|
|
$479,871
|
|
|
-
|
|
|
$3,349,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
6,800
|
|
3,514
|
|
947
|
|
2,261
|
|
|
-
|
|
|
13,522
|
|
|
|
|
|
|
|
|
|
|
(1) Intersegment revenues represent the sales between our segments
and are eliminated to reconcile to our consolidated results.
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
(unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$4,640,803
|
|
$997,608
|
|
$1,207,448
|
|
$279,284
|
|
$
|
-
|
|
|
$7,125,143
|
|
Intersegment revenues (1)
|
|
213,397
|
|
15,583
|
|
73,009
|
|
10,548
|
|
|
(312,537
|
)
|
|
-
|
|
Total revenues
|
|
$4,854,200
|
|
$1,013,191
|
|
$1,280,457
|
|
$289,832
|
|
$
|
(312,537
|
)
|
|
$7,125,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$732,346
|
|
$227,569
|
|
$117,683
|
|
$64,757
|
|
|
-
|
|
|
$1,142,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$296,161
|
|
$43,881
|
|
$28,901
|
|
$835
|
|
|
-
|
|
|
$369,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$11,296
|
|
$16,119
|
|
$2,344
|
|
$15,618
|
|
|
-
|
|
|
$45,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$2,189,711
|
|
$741,443
|
|
$455,214
|
|
$579,521
|
|
|
-
|
|
|
$3,965,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
6,926
|
|
3,977
|
|
971
|
|
2,580
|
|
|
-
|
|
|
14,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAST
|
|
Global
Forwarding
|
|
Robinson
Fresh
|
|
All
Other and
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$4,204,094
|
|
$707,885
|
|
$1,224,297
|
|
$237,408
|
|
$
|
-
|
|
|
$6,373,684
|
|
Intersegment revenues(1)
|
|
131,812
|
|
14,843
|
|
50,945
|
|
542
|
|
|
(198,142
|
)
|
|
-
|
|
Total revenues
|
|
$4,335,906
|
|
$722,728
|
|
$1,275,242
|
|
$237,950
|
|
$
|
(198,142
|
)
|
|
$6,373,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$783,001
|
|
$190,090
|
|
$126,005
|
|
$58,454
|
|
|
-
|
|
|
$1,157,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$345,072
|
|
$39,253
|
|
$45,044
|
|
$3,330
|
|
|
-
|
|
|
$432,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$11,004
|
|
$10,158
|
|
$1,607
|
|
$12,290
|
|
|
-
|
|
|
$35,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$1,936,149
|
|
$505,778
|
|
$427,272
|
|
$479,871
|
|
|
-
|
|
|
$3,349,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average headcount
|
|
6,749
|
|
3,499
|
|
937
|
|
2,216
|
|
|
-
|
|
|
13,401
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
273,182
|
|
$
|
247,666
|
|
Receivables, net
|
|
|
1,948,204
|
|
|
1,711,191
|
|
Other current assets
|
|
|
63,636
|
|
|
49,245
|
|
Total current assets
|
|
|
2,285,022
|
|
|
2,008,102
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
234,312
|
|
|
232,953
|
|
Intangible and other assets
|
|
|
1,446,555
|
|
|
1,446,703
|
|
Total assets
|
|
$
|
3,965,889
|
|
$
|
3,687,758
|
|
|
|
|
|
|
|
Liabilities and stockholders’ investment
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and outstanding checks
|
|
$
|
1,055,295
|
|
$
|
921,788
|
|
Accrued compensation
|
|
|
74,754
|
|
|
98,107
|
|
Accrued income taxes
|
|
|
16,004
|
|
|
15,472
|
|
Other accrued expenses
|
|
|
59,441
|
|
|
70,351
|
|
Current portion of debt
|
|
|
592,000
|
|
|
740,000
|
|
Total current liabilities
|
|
|
1,797,494
|
|
|
1,845,718
|
|
|
|
|
|
|
|
Noncurrent income taxes payable
|
|
|
17,278
|
|
|
18,849
|
|
Deferred tax liabilities
|
|
|
63,667
|
|
|
65,122
|
|
Long term debt
|
|
|
750,000
|
|
|
500,000
|
|
Other long-term liabilities
|
|
|
242
|
|
|
222
|
|
Total liabilities
|
|
|
2,628,681
|
|
|
2,429,911
|
|
|
|
|
|
|
|
Total stockholders’ investment
|
|
|
1,337,208
|
|
|
1,257,847
|
|
Total liabilities and stockholders’ investment
|
|
$
|
3,965,889
|
|
$
|
3,687,758
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited, in thousands, except operational data)
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
2017
|
|
2016
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
233,151
|
|
|
$
|
262,053
|
|
|
Stock-based compensation
|
|
|
16,842
|
|
|
|
25,785
|
|
|
Depreciation and amortization
|
|
|
45,377
|
|
|
|
35,059
|
|
|
Provision for doubtful accounts
|
|
|
7,669
|
|
|
|
2,144
|
|
|
Deferred income taxes
|
|
|
(4,988
|
)
|
|
|
17,004
|
|
|
Excess tax benefit on stock-based compensation
|
|
|
(10,583
|
)
|
|
|
(15,104
|
)
|
|
Other
|
|
|
536
|
|
|
|
366
|
|
|
Changes in operating elements, net of acquisitions:
|
|
|
|
|
|
Receivables
|
|
|
(244,682
|
)
|
|
|
(94,030
|
)
|
|
Prepaid expenses and other
|
|
|
(9,646
|
)
|
|
|
(19,066
|
)
|
|
Other non-current assets
|
|
|
(1,016
|
)
|
|
|
(1,615
|
)
|
|
Accounts payable and outstanding checks
|
|
|
135,130
|
|
|
|
52,843
|
|
|
Accrued compensation and profit-sharing contribution
|
|
|
(23,353
|
)
|
|
|
(61,029
|
)
|
|
Accrued income taxes
|
|
|
10,185
|
|
|
|
43,606
|
|
|
Other accrued liabilities
|
|
|
(4,611
|
)
|
|
|
(755
|
)
|
|
Net cash provided by operating activities
|
|
|
150,011
|
|
|
|
247,261
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(24,105
|
)
|
|
|
(33,483
|
)
|
|
Purchases and development of software
|
|
|
(8,865
|
)
|
|
|
(10,493
|
)
|
|
Acquisitions, net of cash
|
|
|
(1,780
|
)
|
|
|
-
|
|
|
Other
|
|
|
(1,095
|
)
|
|
|
(405
|
)
|
|
Net cash used for investing activities
|
|
|
(35,845
|
)
|
|
|
(44,381
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Borrowings on accounts receivable securitization facility
|
|
|
250,000
|
|
|
|
-
|
|
|
Borrowings on line of credit
|
|
|
4,282,000
|
|
|
|
2,840,000
|
|
|
Repayments on line of credit
|
|
|
(4,430,000
|
)
|
|
|
(2,825,000
|
)
|
|
Net repurchases of common stock
|
|
|
(70,306
|
)
|
|
|
(66,249
|
)
|
|
Excess tax benefit on stock-based compensation
|
|
|
-
|
|
|
|
15,104
|
|
|
Cash dividends
|
|
|
(128,806
|
)
|
|
|
(127,520
|
)
|
|
Net cash used for financing activities
|
|
|
(97,112
|
)
|
|
|
(163,665
|
)
|
|
Effect of exchange rates on cash
|
|
|
8,462
|
|
|
|
(361
|
)
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
25,516
|
|
|
|
38,854
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
247,666
|
|
|
|
168,229
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
273,182
|
|
|
$
|
207,083
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
|
|
2017
|
|
2016
|
|
Operational Data:
|
|
|
|
|
|
Employees
|
|
|
14,807
|
|
|
|
13,701
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170719006225/en/