C.H. Robinson Reports 2019 Third Quarter Results

10/29/2019

MINNEAPOLIS--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2019.

  • Net revenues decreased 8.7 percent to $633.4 million
  • Income from operations decreased 18.2 percent to $201.1 million
  • Operating margin decreased 370 basis points to 31.7 percent
  • Diluted earnings per share (EPS) decreased 14.4 percent to $1.07
  • Cash flow from operations decreased 24.1 percent to $167.3 million

“The third quarter provided challenges in both our North American Surface Transportation and Global Forwarding segments. Our net revenues, operating income, and EPS results finished below our long-term expectations. We anticipated an aggressive industry pricing environment coming into the second half of this year driven by excess capacity and softening demand and knew we faced difficult comparisons versus our strong double-digit net revenue growth in the second half of last year. Our results were negatively impacted by truckload margin compression in North America,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson.

Biesterfeld continued, “A part of our customer value proposition, particularly in our committed relationships, is managing through freight cycles and the pricing volatility that occurs as a result of the cyclicality of our industry. Our people did a great job of controlling what we can control, which includes winning increased awards in contractual bids with our largest customers in the quarter and continuing to provide excellent service and innovation. We are also continuing to adjust our pricing strategies in order to optimize our results.”

Third Quarter Results Summary

  • Total revenues decreased 10.2 percent to $3.9 billion, driven by lower pricing across most transportation service lines.
  • Net revenues decreased 8.7 percent to $633.4 million, primarily driven by reduced margin in truckload services.
  • Operating expenses decreased 3.5 percent to $432.3 million. Personnel expenses decreased 4.4 percent to $320.6 million, driven primarily by declines in performance-based compensation, partially offset by a 3.2 percent increase in average headcount. Selling, general and administrative (“SG&A”) expenses decreased 0.9 percent to $111.8 million, due primarily to a decrease in bad debt expense and a $5.8 million gain on the sale of an office building in Chicago, Illinois, partially offset by an increase in purchased services.
  • Income from operations totaled $201.1 million, down 18.2 percent from last year due to a decline in North American Surface Transportation (“NAST”), partially offset by growth in Global Forwarding and All Other and Corporate. Operating margin of 31.7 percent declined 370 basis points.
  • Interest and other expenses totaled $13.2 million, which primarily consists of interest expense. The third quarter also included a $1.1 million unfavorable impact from currency revaluation.
  • The effective tax rate in the quarter was 21.8 percent compared to 26.5 percent last year. The lower effective tax rate was due primarily to a favorable adjustment of $2.7 million from a prior year tax provision.
  • Net income totaled $146.9 million, down 16.5 percent from a year ago. Diluted EPS of $1.07 decreased 14.4 percent.

Year-to-Date Results Summary

  • Total revenues decreased 7.8 percent to $11.5 billion, driven by declines across most transportation service lines.
  • Net revenues increased 0.8 percent to $2.0 billion.
  • Operating expenses increased 1.5 percent to $1.4 billion. Personnel expenses decreased 0.5 percent to $1.0 billion, driven primarily by declines in performance-based compensation, partially offset by a 2.6 percent increase in average headcount. SG&A expenses increased 7.3 percent to $354.7 million, due primarily to increases in purchased services, particularly commercial off-the-shelf software, and occupancy, partially offset by a reduction in bad debt expense.
  • Income from operations totaled $653.2 million, down 0.5 percent from last year due to a decline in All Other and Corporate, partially offset by growth in Global Forwarding. Operating margin of 32.5 percent decreased 50 basis points.
  • Interest and other expenses totaled $36.9 million, which primarily consists of interest expense. The nine-month period also included a $3.3 million unfavorable impact from currency revaluation.
  • The effective tax rate for the first nine months was 22.5 percent compared to 24.7 percent in the year-ago period.
  • Net income totaled $477.9 million, up 0.1 percent from a year ago. Diluted EPS of $3.45 increased 1.8 percent.

North American Surface Transportation Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

2,826,308

 

 

$

3,224,906

 

 

(12.4

)%

 

$

8,495,145

 

 

$

9,296,510

 

 

(8.6

)%

Net revenues

 

 

433,760

 

 

 

499,463

 

 

(13.2

)%

 

 

1,406,728

 

 

 

1,397,571

 

 

0.7

%

Income from operations

 

 

176,200

 

 

 

223,893

 

 

(21.3

)%

 

 

592,215

 

 

 

591,774

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter total revenues for C.H. Robinson's NAST segment totaled $2.8 billion, a decrease of 12.4 percent over the prior year, primarily driven by decreased pricing. NAST net revenues decreased 13.2 percent in the quarter to $433.8 million. Net revenues in truckload decreased 17.4 percent, less than truckload (“LTL”) net revenues increased 1.3 percent, and intermodal net revenues decreased 15.9 percent versus the year-ago period. Excluding the impact of the change in fuel prices, average North America truckload rate per mile charged to customers decreased approximately 12.5 percent in the quarter, while truckload transportation cost per mile decreased approximately 12 percent. Truckload volumes declined 4 percent in the quarter, as low-single-digit growth in contractual volume was not enough to offset the significant declines in spot market opportunities in the current environment. LTL volumes grew 4 percent, and intermodal volumes declined 24 percent versus the prior year. Operating expenses decreased 6.5 percent due to decreased personnel expenses, partially offset by increased SG&A expenses. Income from operations decreased 21.3 percent to $176.2 million, and operating margin declined 420 basis points to 40.6 percent. NAST average headcount was down 0.1 percent in the quarter. As a reminder, third quarter and year-to-date NAST results include Robinson Fresh transportation, which was previously reported under the Robinson Fresh segment.

Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

597,695

 

 

$

639,268

 

 

(6.5

)%

 

$

1,727,745

 

 

$

1,810,619

 

 

(4.6

)%

Net revenues

 

 

135,815

 

 

 

134,101

 

 

1.3

%

 

 

404,987

 

 

 

401,169

 

 

1.0

%

Income from operations

 

 

24,676

 

 

 

23,835

 

 

3.5

%

 

 

65,497

 

 

 

61,844

 

 

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter total revenues for the Global Forwarding segment decreased 6.5 percent to $597.7 million, primarily driven by lower pricing in ocean and air and a decline in air volume. Net revenues increased 1.3 percent in the quarter to $135.8 million, with the acquisition of The Space Cargo Group (“Space Cargo”) contributing 3.5 percentage points of growth in the quarter. Ocean net revenues increased 4.1 percent driven by margin expansion. Net revenues in air decreased 7.2 percent driven by declines in pricing and shipments. Customs net revenues increased 1.8 percent, primarily driven by increased transaction volume. Operating expenses increased 0.8 percent, driven by increased investments in technology. Third quarter average headcount increased 2.3 percent, with Space Cargo contributing 3.5 percentage points to the growth. Income from operations increased 3.5 percent to $24.7 million, and operating margin expanded 40 basis points to 18.2 percent in the quarter.

All Other and Corporate Results
Net revenues for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Net revenues

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Robinson Fresh

 

$

26,382

 

 

$

26,399

 

 

(0.1

)%

 

$

86,276

 

 

$

89,280

 

 

(3.4

)%

Managed Services

 

 

21,574

 

 

 

20,080

 

 

7.4

%

 

 

61,985

 

 

 

58,471

 

 

6.0

%

Other Surface Transportation

 

 

15,900

 

 

 

14,001

 

 

13.6

%

 

 

47,471

 

 

 

44,961

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter Robinson Fresh net revenues decreased 0.1 percent to $26.4 million. Managed Services net revenues increased 7.4 percent this quarter. Other Surface Transportation net revenues increased 13.6 percent to $15.9 million, with the acquisition of Dema Service contributing 13 percentage points of net revenue growth. All Other and Corporate operating income included a $5.8 million gain on the sale of an office building in Chicago, Illinois.

Other Income Statement Items
The third quarter effective tax rate was 21.8 percent, down from 26.5 percent last year. The lower effective tax rate was due primarily to a favorable adjustment of $2.7 million from a prior year tax provision. We now expect our 2019 full-year effective tax rate to be in the range of 23 to 24 percent.

Interest and other expenses totaled $13.2 million, which primarily consists of interest expense. Interest expense declined in the quarter driven by a reduction in our overall debt balance. The third quarter also included a $1.1 million unfavorable impact from currency revaluation.

Diluted weighted average shares outstanding in the quarter were down 1.9 percent due primarily to $67.0 million in share repurchases.

Cash Flow Generation and Capital Distribution
Cash from operations totaled $167.3 million, down 24.1 percent versus the prior year, primarily due to decreased earnings versus the year-ago period.

In the third quarter, $135.9 million was returned to shareholders, with $68.9 million in cash dividends and $67.0 million in share repurchases. This represents a decrease of 9.9 percent over the prior year.

Capital expenditures totaled $19.4 million in the quarter. We now expect 2019 capital expenditures to be between $65 and $75 million, with the majority dedicated to technology.

Outlook
“Looking ahead, we expect that North American routing guides will continue to reset at lower prices in response to the falling cost environment and decline in spot market freight opportunities. While industry data suggests capacity continues to exit the North America truckload market, we believe capacity will exceed available shipments for the next few quarters,” Biesterfeld stated. “Despite the current freight environment, our long-term goals remain unchanged. We remain focused on taking market share, automating core processes while delivering industry-leading quality service to our customers and carriers, and improving operating leverage in our businesses.”

About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With over $20 billion in freight under management and 18 million shipments annually, we are the world’s largest logistics platform. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 124,000 customers and 76,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

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 such 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; changes in relationships with existing contracted 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, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; 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 Third Quarter 2019 Earnings Conference Call
Wednesday, October 30, 2019; 8:30 a.m. Eastern Time
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

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.

Summarized Financial Results
($ in thousands, except per share data)

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 service line net revenues discussed within the segments as our segments have revenues from multiple service lines.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

3,856,132

 

 

$

4,291,900

 

 

(10.2

)%

 

$

11,516,182

 

 

$

12,493,264

 

 

(7.8

)%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

 

Truckload

 

$

317,990

 

 

$

378,572

 

 

(16.0

)%

 

$

1,067,334

 

 

$

1,050,305

 

 

1.6

%

LTL

 

 

124,523

 

 

 

122,616

 

 

1.6

%

 

 

363,743

 

 

 

353,949

 

 

2.8

%

Intermodal

 

 

7,110

 

 

 

8,361

 

 

(15.0

)%

 

 

19,484

 

 

 

23,874

 

 

(18.4

)%

Ocean

 

 

77,879

 

 

 

74,839

 

 

4.1

%

 

 

234,884

 

 

 

230,718

 

 

1.8

%

Air

 

 

27,121

 

 

 

29,991

 

 

(9.6

)%

 

 

80,837

 

 

 

89,779

 

 

(10.0

)%

Customs

 

 

23,719

 

 

 

23,305

 

 

1.8

%

 

 

68,903

 

 

 

64,754

 

 

6.4

%

Other logistics services

 

 

30,025

 

 

 

31,188

 

 

(3.7

)%

 

 

90,472

 

 

 

91,474

 

 

(1.1

)%

Total transportation

 

 

608,367

 

 

 

668,872

 

 

(9.0

)%

 

 

1,925,657

 

 

 

1,904,853

 

 

1.1

%

Sourcing

 

 

25,064

 

 

 

25,172

 

 

(0.4

)%

 

 

81,790

 

 

 

86,599

 

 

(5.6

)%

Total net revenues

 

 

633,431

 

 

 

694,044

 

 

(8.7

)%

 

 

2,007,447

 

 

 

1,991,452

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

432,346

 

 

 

448,071

 

 

(3.5

)%

 

 

1,354,277

 

 

 

1,334,886

 

 

1.5

%

Income from operations

 

 

201,085

 

 

 

245,973

 

 

(18.2

)%

 

 

653,170

 

 

 

656,566

 

 

(0.5

)%

Net income

 

$

146,894

 

 

$

175,895

 

 

(16.5

)%

 

$

477,862

 

 

$

477,355

 

 

0.1

%

Diluted EPS

 

$

1.07

 

 

$

1.25

 

 

(14.4

)%

 

$

3.45

 

 

$

3.39

 

 

1.8

%

Our total revenues represent the total dollar value of services and goods we sell to our customers. Net revenues are a non-GAAP financial measure calculated as total revenues less the cost of purchased transportation and related services and the cost of purchased products sourced for resale. We believe net revenues are a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider net revenues to be our primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our net revenues. The reconciliation of total revenues to net revenues is presented below (in thousands):

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

Transportation

$

3,608,346

 

 

$

4,028,392

 

 

$

10,751,890

 

 

$

11,619,171

 

Sourcing

 

247,786

 

 

 

263,508

 

 

 

764,292

 

 

 

874,093

 

Total revenues

 

3,856,132

 

 

 

4,291,900

 

 

 

11,516,182

 

 

 

12,493,264

 

Costs and expenses:

 

 

 

 

 

 

 

Purchased transportation and related services

 

2,999,979

 

 

 

3,359,520

 

 

 

8,826,233

 

 

 

9,714,318

 

Purchased products sourced for resale

 

222,722

 

 

 

238,336

 

 

 

682,502

 

 

 

787,494

 

Total costs and expenses

 

3,222,701

 

 

 

3,597,856

 

 

 

9,508,735

 

 

 

10,501,812

 

Net revenues

$

633,431

$

694,044

$

2,007,447

$

1,991,452

 

Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Transportation

 

$

3,608,346

 

 

$

4,028,392

 

 

$

10,751,890

 

 

$

11,619,171

 

Sourcing

 

 

247,786

 

 

 

263,508

 

 

 

764,292

 

 

 

874,093

 

Total revenues

 

 

3,856,132

 

 

 

4,291,900

 

 

 

11,516,182

 

 

 

12,493,264

 

Costs and expenses:

 

 

 

 

 

 

 

 

Purchased transportation and related services

 

 

2,999,979

 

 

 

3,359,520

 

 

 

8,826,233

 

 

 

9,714,318

 

Purchased products sourced for resale

 

 

222,722

 

 

 

238,336

 

 

 

682,502

 

 

 

787,494

 

Personnel expenses

 

 

320,563

 

 

 

335,299

 

 

 

999,547

 

 

 

1,004,226

 

Other selling, general, and administrative expenses

 

 

111,783

 

 

 

112,772

 

 

 

354,730

 

 

 

330,660

 

Total costs and expenses

 

 

3,655,047

 

 

 

4,045,927

 

 

 

10,863,012

 

 

 

11,836,698

 

Income from operations

 

 

201,085

 

 

 

245,973

 

 

 

653,170

 

 

 

656,566

 

Interest and other expense

 

 

(13,180

)

 

 

(6,526

)

 

 

(36,935

)

 

 

(22,354

)

Income before provision for income taxes

 

 

187,905

 

 

 

239,447

 

 

 

616,235

 

 

 

634,212

 

Provisions for income taxes

 

 

41,011

 

 

 

63,552

 

 

 

138,373

 

 

 

156,857

 

Net income

 

$

146,894

 

 

$

175,895

 

 

$

477,862

 

 

$

477,355

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

 

$

1.08

 

 

$

1.27

 

 

$

3.48

 

 

$

3.42

 

Net income per share (diluted)

 

$

1.07

 

 

$

1.25

 

 

$

3.45

 

 

$

3.39

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

 

 

136,380

 

 

 

138,797

 

 

 

137,274

 

 

 

139,425

 

Weighted average shares outstanding (diluted)

 

 

137,476

 

 

 

140,160

 

 

 

138,373

 

 

 

140,720

 

Business Segment Information
(unaudited, dollars in thousands)

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

2,826,308

 

 

$

597,695

 

 

$

432,129

 

 

$

3,856,132

 

Net revenues

 

 

433,760

 

 

 

135,815

 

 

 

63,856

 

 

 

633,431

 

Income from operations

 

 

176,200

 

 

 

24,676

 

 

 

209

 

 

 

201,085

 

Depreciation and amortization

 

 

5,734

 

 

 

9,186

 

 

 

10,560

 

 

 

25,480

 

Total assets (1)

 

 

2,649,259

 

 

 

995,137

 

 

 

992,153

 

 

 

4,636,549

 

Average headcount

 

 

7,448

 

 

 

4,790

 

 

 

3,544

 

 

 

15,782

 

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Three Months Ended September 30, 2018 (2)

 

 

 

 

 

 

 

 

Total revenues

 

$

3,224,906

 

 

$

639,268

 

 

$

427,726

 

 

$

4,291,900

 

Net revenues

 

 

499,463

 

 

 

134,101

 

 

 

60,480

 

 

 

694,044

 

Income (loss) from operations

 

 

223,893

 

 

 

23,835

 

 

 

(1,755

)

 

 

245,973

 

Depreciation and amortization

 

 

6,286

 

 

 

8,735

 

 

 

8,902

 

 

 

23,923

 

Total assets (1)

 

 

2,739,569

 

 

 

944,928

 

 

 

808,225

 

 

 

4,492,722

 

Average headcount

 

 

7,454

 

 

 

4,684

 

 

 

3,153

 

 

 

15,291

 

____________________________________________
(1) All cash and cash equivalents are included in All Other and Corporate.
(2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019.

Business Segment Information
(unaudited, dollars in thousands)

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Nine Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

8,495,145

 

 

$

1,727,745

 

 

$

1,293,292

 

 

$

11,516,182

 

Net revenues

 

 

1,406,728

 

 

 

404,987

 

 

 

195,732

 

 

 

2,007,447

 

Income (loss) from operations

 

 

592,215

 

 

 

65,497

 

 

 

(4,542

)

 

 

653,170

 

Depreciation and amortization

 

 

18,124

 

 

 

27,427

 

 

 

29,571

 

 

 

75,122

 

Total assets (1)

 

 

2,649,259

 

 

 

995,137

 

 

 

992,153

 

 

 

4,636,549

 

Average headcount

 

 

7,436

 

 

 

4,748

 

 

 

3,398

 

 

 

15,582

 

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Nine Months Ended September 30, 2018 (2)  

Total revenues

 

$

9,296,510

 

 

$

1,810,619

 

 

$

1,386,135

 

 

$

12,493,264

 

Net revenues

 

 

1,397,571

 

 

 

401,169

 

 

 

192,712

 

 

 

1,991,452

 

Income from operations

 

 

591,774

 

 

 

61,844

 

 

 

2,948

 

 

 

656,566

 

Depreciation and amortization

 

 

18,905

 

 

 

26,397

 

 

 

27,100

 

 

 

72,402

 

Total assets (1)

 

 

2,739,569

 

 

 

944,928

 

 

 

808,225

 

 

 

4,492,722

 

Average headcount

 

 

7,375

 

 

 

4,725

 

 

 

3,089

 

 

 

15,189

 

____________________________________________
(1) All cash and cash equivalents are included in All Other and Corporate.
(2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019.

Condensed Consolidated Balance Sheets
(unaudited, in thousands)

 

 

September 30, 2019

 

December 31, 2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

384,424

 

 

$

378,615

 

Receivables, net of allowance for doubtful accounts

 

2,074,449

 

 

 

2,162,438

 

Contract assets

 

150,569

 

 

 

159,635

 

Prepaid expenses and other

 

73,724

 

 

 

52,386

 

Total current assets

 

2,683,166

 

 

 

2,753,074

 

 

 

 

 

Property and equipment, net

 

209,521

 

 

 

228,301

 

Right-of-use lease assets

 

263,833

 

 

 

 

Intangible and other assets

 

1,480,029

 

 

 

1,446,037

 

Total assets

$

4,636,549

 

 

$

4,427,412

 

 

 

 

 

Liabilities and stockholders’ investment

 

 

 

Current liabilities:

 

 

 

Accounts payable and outstanding checks

$

1,076,597

 

 

$

1,063,107

 

Accrued expenses:

 

 

 

Compensation

 

107,659

 

 

 

153,626

 

Transportation expense

 

114,498

 

 

 

119,820

 

Income taxes

 

19,470

 

 

 

28,360

 

Other accrued liabilities

 

60,069

 

 

 

63,410

 

Current lease liabilities

 

55,847

 

 

 

 

Current portion of debt

 

 

 

 

5,000

 

Total current liabilities

 

1,434,140

 

 

 

1,433,323

 

 

 

 

 

Long-term debt

 

1,253,091

 

 

 

1,341,352

 

Noncurrent lease liabilities

 

216,610

 

 

 

 

Noncurrent income taxes payable

 

22,149

 

 

 

21,463

 

Deferred tax liability

 

37,206

 

 

 

35,757

 

Other long-term liabilities

 

257

 

 

 

430

 

Total liabilities

 

2,963,453

 

 

 

2,832,325

 

 

 

 

 

Total stockholders’ investment

 

1,673,096

 

 

 

1,595,087

 

Total liabilities and stockholders’ investment

$

4,636,549

 

 

$

4,427,412

 

Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)

 

 

Nine Months Ended September 30,

 

2019

 

2018

Operating activities:

 

 

 

Net income

$

477,862

 

 

$

477,355

 

Depreciation and amortization

 

75,122

 

 

 

72,402

 

Provision for doubtful accounts

 

642

 

 

 

12,333

 

Stock-based compensation

 

40,657

 

 

 

68,475

 

Deferred income taxes

 

(3,360

)

 

 

(5,794

)

Excess tax benefit on stock-based compensation

 

(6,908

)

 

 

(9,345

)

Other operating activities

 

(4,471

)

 

 

1,350

 

Changes in operating elements, net of acquisitions:

 

 

 

Receivables

 

104,108

 

 

 

(268,252

)

Contract assets

 

9,067

 

 

 

(53,647

)

Prepaid expenses and other

 

(18,940

)

 

 

14,740

 

Accounts payable and outstanding checks

 

3,871

 

 

 

120,652

 

Accrued compensation

 

(45,319

)

 

 

15,153

 

Accrued transportation expenses

 

(5,323

)

 

 

62,165

 

Accrued income taxes

 

(7,042

)

 

 

9,247

 

Other accrued liabilities

 

5,210

 

 

 

9,944

 

Other assets and liabilities

 

(1,318

)

 

 

2,105

 

Net cash provided by operating activities

 

623,858

 

 

 

528,883

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

 

(26,661

)

 

 

(35,794

)

Purchases and development of software

 

(24,282

)

 

 

(13,793

)

Acquisitions, net of cash acquired

 

(59,188

)

 

 

(1,315

)

Other investing activities

 

16,625

 

 

 

(1,605

)

Net cash used for investing activities

 

(93,506

)

 

 

(52,507

)

 

 

 

 

Financing activities:

 

 

 

Proceeds from stock issued for employee benefit plans

 

40,442

 

 

 

46,424

 

Net repurchases of common stock

 

(255,655

)

 

 

(222,697

)

Cash dividends

 

(207,865

)

 

 

(195,158

)

Proceeds from long-term borrowings

 

929,000

 

 

 

591,012

 

Payments on long-term borrowings

 

(1,018,000

)

 

 

Proceeds from short-term borrowings

 

14,000

 

 

 

2,588,000

 

Payments on short-term borrowings

 

(19,000

)

 

 

(3,303,000

)

Net cash used for financing activities

 

(517,078

)

 

 

(495,419

)

Effect of exchange rates on cash

 

(7,465

)

 

 

(17,046

)

 

 

 

 

Net change in cash and cash equivalents

 

5,809

 

 

 

(36,089

)

Cash and cash equivalents, beginning of period

 

378,615

 

 

 

333,890

 

Cash and cash equivalents, end of period

$

384,424

 

 

$

297,801

 

 

 

 

 

 

As of September 30,

Operational Data:

2019

 

2018

Employees

 

15,654

 

 

 

15,225

 

Source: C.H. Robinson
CHRW-IR

Robert Houghton, VP of Investor Relations and Treasury
Email:robert.houghton@chrobinson.com

Source: C.H. Robinson