C.H. Robinson Reports 2022 Second Quarter Results

07/27/2022

C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended June 30, 2022.

Second Quarter Key Metrics:

  • Gross profits and adjusted gross profits(1) increased 37.7% to $1.0 billion
  • Income from operations increased 80.2% to $469.7 million
  • Adjusted operating margin(1) increased 1,070 basis points to 45.5%
  • Diluted earnings per share (EPS) increased 85.4% to $2.67
  • Cash generated by operations improved by $116.0 million to $265.3 million

(1) Adjusted gross profits and adjusted operating margin are Non-GAAP financial measures. The same factors described in this release that impacted these Non-GAAP measures also impacted the comparable GAAP measures. Refer to page 10 for further discussion and a GAAP to Non-GAAP reconciliation.

"Our second quarter was another quarter of record profits, as our business model performed as we would expect it to in this part of the cycle," said Bob Biesterfeld, President and Chief Executive Officer of C.H. Robinson. "Our investments in our customer relationships through the early part of the cycle, while the cost of purchased transportation was rapidly increasing, are paying dividends as we retain and gain share with these customers through the terms of our agreements. Our strong results were again driven by significant operating margin expansion in our North American Surface Transportation business, as we further improved the profitability of our truckload and less-than truckload businesses and grew our truckload volume in a declining market. Our Global Forwarding team continued to deliver strong financial results, while benefiting from the market share they’ve gained over the past couple of years."

Summary of Second Quarter Results Compared to the Second Quarter of 2021

  • Total revenues increased 22.9% to $6.8 billion, driven primarily by higher pricing across most of our services and higher truckload and ocean volume.
  • Gross profits and adjusted gross profits increased 37.7% to $1.0 billion, primarily driven by higher adjusted gross profit per transaction across most of our services and higher truckload and ocean volume.
  • Operating expenses increased 15.0% to $561.9 million. Personnel expenses increased 22.6% to $444.8 million, primarily due to higher headcount, which increased 16.2%, and higher incentive compensation costs. Selling, general and administrative ("SG&A") expenses of $117.2 million decreased 6.8% and included a $25.3 million gain on the sale-leaseback of our Kansas City regional center. This was partially offset by higher purchased and contracted services and increased travel expenses.
  • Income from operations totaled $469.7 million, up 80.2% due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 45.5% increased 1,070 basis points.
  • Interest and other income/expense, net totaled $27.4 million of expense, consisting primarily of $17.0 million of interest expense, which increased $4.3 million versus last year due to a higher average debt balance, and $10.3 million of foreign currency revaluation and realized foreign currency gains and losses, which increased $8.4 million versus last year due to the strengthening of the U.S. Dollar, primarily versus the Euro and Yuan.
  • The effective tax rate in the quarter was 21.3% compared to 21.6% in the second quarter last year.
  • Net income totaled $348.2 million, up 79.7% from a year ago. Diluted EPS of $2.67 increased 85.4%.

Summary of Year-to-Date Results Compared to 2021

  • Total revenues increased 31.7% to $13.6 billion, driven primarily by higher pricing and higher volume across most of our services.
  • Gross profits and adjusted gross profits increased 33.5% to $1.9 billion, primarily driven by higher adjusted gross profit per transaction and higher volume across most of our services.
  • Operating expenses increased 16.0% to $1.1 billion. Personnel expenses increased 18.6% to $858.1 million, primarily due to higher headcount, which increased 15.2%, and higher incentive compensation costs. SG&A expenses increased 8.5% to $264.5 million, primarily due to increases in purchased and contracted services, travel expenses and warehouse expenses, partially offset by a $25.3 million gain on the sale-leaseback of our Kansas City regional center.
  • Income from operations totaled $815.1 million, up 68.4% from last year, primarily due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 42.1% increased 880 basis points.
  • Interest and other income/expense, net totaled $41.6 million of expense, which primarily consists of $31.5 million of interest expense, which increased $6.6 million versus last year due to a higher average debt balance. The full year also included a $11.8 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses, due to the strengthening of the U.S. Dollar, primarily versus the Euro and Yuan.
  • The effective tax rate for the six months was 20.0% compared to 20.1% in the year-ago period.
  • Net income totaled $618.5 million, up 68.5% from a year ago. Diluted EPS of $4.71 increased 73.8%.

North American Surface Transportation ("NAST") Results

Summarized financial results of our NAST segment are as follows (dollars in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

Total revenues

$ 4,147,046

 

$ 3,585,481

 

15.7 %

 

$ 8,261,935

 

$ 6,796,904

 

21.6 %

Adjusted gross profits(1)

624,551

 

436,596

 

43.1 %

 

1,130,651

 

857,704

 

31.8 %

Income from operations

276,499

 

151,092

 

83.0 %

 

458,853

 

287,876

 

59.4 %

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter total revenues for the NAST segment totaled $4.1 billion, an increase of 15.7% over the prior year, primarily driven by higher truckload and less-than truckload ("LTL") pricing and an increase in truckload shipments. NAST adjusted gross profits increased 43.1% in the quarter to $624.6 million. Adjusted gross profits in truckload increased 50.8% due to a 48.0% increase in adjusted gross profit per shipment and a 2.0% increase in truckload volume. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 1.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, decreased approximately 5.0%, resulting in a 46.5% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 30.2% versus the year-ago period, as adjusted gross profit per order increased 37.0% and LTL volumes declined 5.0%. Operating expenses increased 21.9% primarily due to increased salaries, incentive compensation, and technology expenses. Income from operations increased 83.0% to $276.5 million, and adjusted operating margin expanded 970 basis points to 44.3%. NAST average headcount was up 14.8% in the quarter.

Global Forwarding Results

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

Total revenues

 

$

2,093,190

 

$

1,450,794

 

44.3

%

 

$

4,287,587

 

$

2,606,833

 

64.5

%

Adjusted gross profits(1)

 

 

324,443

 

 

238,754

 

35.9

%

 

 

646,291

 

 

453,054

 

42.7

%

Income from operations

 

 

167,557

 

 

108,212

 

54.8

%

 

 

335,195

 

 

198,801

 

68.6

%

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter total revenues for the Global Forwarding segment increased 44.3% to $2.1 billion, primarily driven by higher pricing and higher volume in our ocean service, reflecting the strong demand environment and market share gains. Adjusted gross profits increased 35.9% in the quarter to $324.4 million. Ocean adjusted gross profits increased 51.1%, driven by a 47.5% increase in adjusted gross profit per shipment and a 2.5% increase in shipments. Adjusted gross profits in air increased 7.5% driven by a 14.0% increase in adjusted gross profit per metric ton shipped, partially offset by a 6.0% decrease in metric tons shipped. Customs adjusted gross profits increased 9.0%, driven by a 10.5% increase in transaction volume. Operating expenses increased 20.2%, primarily driven by increased salaries, incentive compensation, technology and travel expenses. Second quarter average headcount increased 17.3%. Income from operations increased 54.8% to $167.6 million, and adjusted operating margin expanded 630 basis points to 51.6% in the quarter.

All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

Total revenues

 

$

558,239

 

$

496,451

 

12.4

%

 

$

1,064,906

 

$

932,858

 

14.2

%

Adjusted gross profits(1):

 

 

 

 

 

 

 

 

 

 

 

 

Robinson Fresh

 

$

34,981

 

$

29,940

 

16.8

%

 

$

65,486

 

$

54,888

 

19.3

%

Managed Services

 

 

27,618

 

 

26,234

 

5.3

%

 

 

55,700

 

 

51,790

 

7.5

%

Other Surface Transportation

 

 

20,020

 

 

17,652

 

13.4

%

 

 

39,681

 

 

34,120

 

16.3

%

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter Robinson Fresh adjusted gross profits increased 16.8% to $35.0 million, due to an 8.5% increase in case volume and an increase in integrated supply chain and technology services. Managed Services adjusted gross profits increased 5.3% in the quarter, due to growth in business with both new and existing customers. Other Surface Transportation adjusted gross profits increased 13.4% to $20.0 million, primarily due to a 16.7% increase in Europe truckload adjusted gross profits.

Other Income Statement Items

The second quarter effective tax rate was 21.3%, down from 21.6% last year. We expect our 2022 full-year effective tax rate to be 19% to 21%.

Interest and other income/expense, net totaled $27.4 million of expense, consisting primarily of $17.0 million of interest expense, which increased $4.3 million versus the second quarter of 2021 due to a higher average debt balance, and $10.3 million of foreign currency revaluation and realized foreign currency gains and losses, which increased $8.4 million versus the second quarter of 2021 due to the strengthening of the U.S. Dollar, primarily versus the Euro and Yuan.

Diluted weighted average shares outstanding in the quarter were down 3.4% due primarily to share repurchases over the past twelve months.

Cash Flow Generation and Capital Distribution

Cash from operations totaled $265.3 million in the second quarter, compared to $149.3 million in the second quarter of 2021. The $116.0 million improvement was primarily due to a $154.4 million increase in net income.

In the second quarter of 2022, cash returned to shareholders increased 100% versus last year to $409.2 million, with $336.7 million in repurchases of common stock and $72.4 million in cash dividends.

Capital expenditures totaled $43.2 million in the quarter. Capital expenditures for 2022 are now expected to be $110 million to $120 million, up from our prior guidance of $90 million to $100 million, primarily due to a higher level of internally developed software.

Outlook

"As questions linger about global economic growth, inflationary pressures, and consumer discretionary spending, our global suite of multimodal services, our growing digital platform, our responsive team of logistics experts, and our resilient and flexible non-asset-based business model put us in a position to continue delivering strong financial results," Biesterfeld stated. "While we are pleased with our performance this quarter and the fact that both NAST and Global Forwarding delivered operating margins above our publicly stated targets, we know that we have work to do to consistently deliver at our targeted level. The work that the team is executing related to scaling our model, eliminating internal legacy processes and improving quality, while working backwards from the needs of our customers and carriers, will drive continued improvement in operating profits long-term. As we look to the second half of the year, we are watching economic conditions closely, and the management team and board continue to consider all strategies to grow operating profits and maximize long-term shareholder returns through all phases of the business cycle and various economic scenarios."

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 $28 billion in freight under management and 20 million shipments annually, we are one of the world’s largest logistics platforms. 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 100,000 customers and 85,000 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 as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with significant disruptions in the transportation industry; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; risks with reliance on technology to operate our business; cyber-security related risks; risks associated with operations outside of the United States; our ability to identify or complete suitable acquisitions; 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 the potential impact of changes in government regulations; our ability to hire and retain a sufficient number of qualified personnel; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of war on the economy; changes to our capital structure; changes due to catastrophic events including pandemics such as COVID-19; 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 2022 Earnings Conference Call
Wednesday, July 27, 2022; 5:00 p.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

Adjusted Gross Profit by Service Line

(in thousands) 

 

This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments have revenues from multiple service lines.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

Adjusted gross profits(1):

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload

$

456,260

 

$

308,027

 

48.1

%

 

$

816,047

 

$

608,050

 

34.2

%

LTL

 

168,298

 

 

129,868

 

29.6

%

 

 

320,610

 

 

251,421

 

27.5

%

Ocean

 

227,958

 

 

150,986

 

51.0

%

 

 

449,421

 

 

286,496

 

56.9

%

Air

 

56,871

 

 

53,057

 

7.2

%

 

 

118,305

 

 

98,951

 

19.6

%

Customs

 

27,820

 

 

25,513

 

9.0

%

 

 

55,315

 

 

49,735

 

11.2

%

Other logistics services

 

61,561

 

 

53,692

 

14.7

%

 

 

117,197

 

 

105,432

 

11.2

%

Total transportation

 

998,768

 

 

721,143

 

38.5

%

 

 

1,876,895

 

 

1,400,085

 

34.1

%

Sourcing

 

32,845

 

 

28,033

 

17.2

%

 

 

60,914

 

 

51,471

 

18.3

%

Total adjusted gross profits

$

1,031,613

 

$

749,176

 

37.7

%

 

$

1,937,809

 

$

1,451,556

 

33.5

%

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

GAAP to Non-GAAP Reconciliation

(unaudited, in thousands)

 

Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

$

6,465,642

 

$

5,240,448

 

23.4

%

 

$

12,993,993

 

$

9,800,675

 

32.6

%

Sourcing

 

332,833

 

 

292,278

 

13.9

%

 

 

620,435

 

 

535,920

 

15.8

%

Total revenues

 

6,798,475

 

 

5,532,726

 

22.9

%

 

 

13,614,428

 

 

10,336,595

 

31.7

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation and related services

 

5,466,874

 

 

4,519,305

 

21.0

%

 

 

11,117,098

 

 

8,400,590

 

32.3

%

Purchased products sourced for resale

 

299,988

 

 

264,245

 

13.5

%

 

 

559,521

 

 

484,449

 

15.5

%

Direct internally developed software amortization

 

6,640

 

 

4,802

 

38.3

%

 

 

12,374

 

 

9,449

 

31.0

%

Total direct expenses

 

5,773,502

 

 

4,788,352

 

20.6

%

 

 

11,688,993

 

 

8,894,488

 

31.4

%

Gross profit

$

1,024,973

 

$

744,374

 

37.7

%

 

$

1,925,435

 

$

1,442,107

 

33.5

%

Plus: Direct internally developed software amortization

 

6,640

 

 

4,802

 

38.3

%

 

 

12,374

 

 

9,449

 

31.0

%

Adjusted gross profit

$

1,031,613

 

$

749,176

 

37.7

%

 

$

1,937,809

 

$

1,451,556

 

33.5

%

Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The comparison of operating margin to adjusted operating margin is presented below:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

6,798,475

 

 

$

5,532,726

 

 

22.9

%

 

$

13,614,428

 

 

$

10,336,595

 

 

31.7

%

Operating income

 

469,665

 

 

 

260,604

 

 

80.2

%

 

 

815,139

 

 

 

483,933

 

 

68.4

%

Operating margin

 

6.9

%

 

 

4.7

%

 

220

 bps

 

 

6.0

%

 

 

4.7

%

 

130

 bps

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

$

1,031,613

 

 

$

749,176

 

 

37.7

%

 

$

1,937,809

 

 

$

1,451,556

 

 

33.5

%

Operating income

 

469,665

 

 

 

260,604

 

 

80.2

%

 

 

815,139

 

 

 

483,933

 

 

68.4

%

Adjusted operating margin

 

45.5

%

 

 

34.8

%

 

1,070

 bps

 

 

42.1

%

 

 

33.3

%

 

880

 bps

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

% change

 

2022

 

2021

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

$

6,465,642

 

 

$

5,240,448

 

 

23.4

%

 

$

12,993,993

 

 

$

9,800,675

 

 

32.6

%

Sourcing

 

332,833

 

 

 

292,278

 

 

13.9

%

 

 

620,435

 

 

 

535,920

 

 

15.8

%

Total revenues

 

6,798,475

 

 

 

5,532,726

 

 

22.9

%

 

 

13,614,428

 

 

 

10,336,595

 

 

31.7

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation and related services

 

5,466,874

 

 

 

4,519,305

 

 

21.0

%

 

 

11,117,098

 

 

 

8,400,590

 

 

32.3

%

Purchased products sourced for resale

 

299,988

 

 

 

264,245

 

 

13.5

%

 

 

559,521

 

 

 

484,449

 

 

15.5

%

Personnel expenses

 

444,764

 

 

 

362,901

 

 

22.6

%

 

 

858,125

 

 

 

723,736

 

 

18.6

%

Other selling, general, and administrative expenses

 

117,184

 

 

 

125,671

 

 

(6.8

)%

 

 

264,545

 

 

 

243,887

 

 

8.5

%

Total costs and expenses

 

6,328,810

 

 

 

5,272,122

 

 

20.0

%

 

 

12,799,289

 

 

 

9,852,662

 

 

29.9

%

Income from operations

 

469,665

 

 

 

260,604

 

 

80.2

%

 

 

815,139

 

 

 

483,933

 

 

68.4

%

Interest and other income/expense, net

 

(27,395

)

 

 

(13,497

)

 

103.0

%

 

 

(41,569

)

 

 

(24,757

)

 

67.9

%

Income before provision for income taxes

 

442,270

 

 

 

247,107

 

 

79.0

%

 

 

773,570

 

 

 

459,176

 

 

68.5

%

Provision for income taxes

 

94,085

 

 

 

53,318

 

 

76.5

%

 

 

155,037

 

 

 

92,082

 

 

68.4

%

Net income

$

348,185

 

 

$

193,789

 

 

79.7

%

 

$

618,533

 

 

$

367,094

 

 

68.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

$

2.71

 

 

$

1.45

 

 

86.9

%

 

$

4.78

 

 

$

2.74

 

 

74.5

%

Net income per share (diluted)

$

2.67

 

 

$

1.44

 

 

85.4

%

 

$

4.71

 

 

$

2.71

 

 

73.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

 

128,405

 

 

 

133,275

 

 

(3.7

)%

 

 

129,447

 

 

 

133,888

 

 

(3.3

)%

Weighted average shares outstanding (diluted)

 

130,338

 

 

 

134,856

 

 

(3.4

)%

 

 

131,218

 

 

 

135,276

 

 

(3.0

)%

Business Segment Information

(unaudited, in thousands, except average headcount)

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Total revenues

 

$

4,147,046

 

$

2,093,190

 

$

558,239

 

$

6,798,475

Adjusted gross profits(1)

 

 

624,551

 

 

324,443

 

 

82,619

 

 

1,031,613

Income from operations

 

 

276,499

 

 

167,557

 

 

25,609

 

 

469,665

Depreciation and amortization

 

 

6,123

 

 

5,471

 

 

11,668

 

 

23,262

Total assets(2)

 

 

3,688,215

 

 

2,851,114

 

 

918,110

 

 

7,457,439

Average headcount

 

 

7,552

 

 

5,759

 

 

4,582

 

 

17,893

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Total revenues

 

$

3,585,481

 

$

1,450,794

 

$

496,451

 

$

5,532,726

Adjusted gross profits(1)

 

 

436,596

 

 

238,754

 

 

73,826

 

 

749,176

Income from operations

 

 

151,092

 

 

108,212

 

 

1,300

 

 

260,604

Depreciation and amortization

 

 

6,534

 

 

6,276

 

 

10,127

 

 

22,937

Total assets(2)

 

 

3,278,540

 

 

1,852,473

 

 

775,551

 

 

5,906,564

Average headcount

 

 

6,580

 

 

4,909

 

 

3,916

 

 

15,405

(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

(2) All cash and cash equivalents are included in All Other and Corporate.

Business Segment Information

(unaudited, in thousands, except average headcount)

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Total revenues

 

$

8,261,935

 

$

4,287,587

 

$

1,064,906

 

 

$

13,614,428

Adjusted gross profits(1)

 

 

1,130,651

 

 

646,291

 

 

160,867

 

 

 

1,937,809

Income from operations

 

 

458,853

 

 

335,195

 

 

21,091

 

 

 

815,139

Depreciation and amortization

 

 

12,362

 

 

11,026

 

 

22,360

 

 

 

45,748

Total assets(2)

 

 

3,688,215

 

 

2,851,114

 

 

918,110

 

 

 

7,457,439

Average headcount

 

 

7,442

 

 

5,690

 

 

4,422

 

 

 

17,554

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global
Forwarding

 

All
Other and
Corporate

 

Consolidated

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Total revenues

 

$

6,796,904

 

$

2,606,833

 

$

932,858

 

 

$

10,336,595

Adjusted gross profits(1)

 

 

857,704

 

 

453,054

 

 

140,798

 

 

 

1,451,556

Income (loss) from operations

 

 

287,876

 

 

198,801

 

 

(2,744

)

 

 

483,933

Depreciation and amortization

 

 

13,159

 

 

11,925

 

 

21,131

 

 

 

46,215

Total assets(2)

 

 

3,278,540

 

 

1,852,473

 

 

775,551

 

 

 

5,906,564

Average headcount

 

 

6,578

 

 

4,832

 

 

3,823

 

 

 

15,233

(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

(2)All cash and cash equivalents are included in All Other and Corporate.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

 

 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

238,925

 

$

257,413

Receivables, net of allowance for credit loss

 

4,302,321

 

 

3,963,487

Contract assets, net of allowance for credit loss

 

518,752

 

 

453,660

Prepaid expenses and other

 

108,258

 

 

129,593

Total current assets

 

5,168,256

 

 

4,804,153

 

 

 

 

Property and equipment, net of accumulated depreciation and amortization

 

155,829

 

 

139,831

Right-of-use lease assets

 

338,223

 

 

292,559

Intangible and other assets, net of accumulated amortization

 

1,795,131

 

 

1,791,569

Total assets

$

7,457,439

 

$

7,028,112

 

 

 

 

Liabilities and stockholders’ investment

 

 

 

Current liabilities:

 

 

 

Accounts payable and outstanding checks

$

1,926,857

 

$

1,919,301

Accrued expenses:

 

 

 

Compensation

 

190,428

 

 

201,421

Transportation expense

 

405,284

 

 

342,778

Income taxes

 

38,850

 

 

100,265

Other accrued liabilities

 

177,645

 

 

171,266

Current lease liabilities

 

72,686

 

 

66,311

Current portion of debt

 

674,000

 

 

525,000

Total current liabilities

 

3,485,750

 

 

3,326,342

 

 

 

 

Long-term debt

 

1,594,055

 

 

1,393,649

Noncurrent lease liabilities

 

281,319

 

 

241,369

Noncurrent income taxes payable

 

26,291

 

 

28,390

Deferred tax liabilities

 

16,521

 

 

16,113

Other long-term liabilities

 

1,088

 

 

315

Total liabilities

 

5,405,024

 

 

5,006,178

 

 

 

 

Total stockholders’ investment

 

2,052,415

 

 

2,021,934

Total liabilities and stockholders’ investment

$

7,457,439

 

$

7,028,112

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

 

 

Six Months Ended June 30,

 

2022

 

2021

Operating activities:

 

 

 

Net income

$

618,533

 

 

$

367,094

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

 

 

 

Depreciation and amortization

 

45,748

 

 

 

46,215

 

Provision for credit losses

 

(2,142

)

 

 

(36

)

Stock-based compensation

 

52,535

 

 

 

53,150

 

Deferred income taxes

 

(5,844

)

 

 

(2,474

)

Excess tax benefit on stock-based compensation

 

(7,553

)

 

 

(9,367

)

Other operating activities

 

(26,356

)

 

 

933

 

Changes in operating elements, net of acquisitions:

 

 

 

Receivables

 

(378,641

)

 

 

(717,340

)

Contract assets

 

(65,362

)

 

 

(96,154

)

Prepaid expenses and other

 

(14,170

)

 

 

(38,971

)

Accounts payable and outstanding checks

 

37,207

 

 

 

406,875

 

Accrued compensation

 

(9,673

)

 

 

12,115

 

Accrued transportation expenses

 

62,506

 

 

 

73,167

 

Accrued income taxes

 

(54,964

)

 

 

(4,431

)

Other accrued liabilities

 

1,391

 

 

 

210

 

Other assets and liabilities

 

(1,886

)

 

 

1,612

 

Net cash provided by operating activities

 

251,329

 

 

 

92,598

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

 

(36,781

)

 

 

(12,856

)

Purchases and development of software

 

(32,622

)

 

 

(16,981

)

Acquisitions, net of cash acquired

 

 

 

 

(14,749

)

Other investing activities

 

63,208

 

 

 

 

Net cash used for investing activities

 

(6,195

)

 

 

(44,586

)

 

 

 

 

Financing activities:

 

 

 

Proceeds from stock issued for employee benefit plans

 

53,574

 

 

 

36,674

 

Total repurchases of common stock

 

(514,483

)

 

 

(285,987

)

Cash dividends

 

(145,268

)

 

 

(139,756

)

Proceeds from long-term borrowings

 

200,000

 

 

 

 

Proceeds from short-term borrowings

 

2,735,000

 

 

 

1,661,000

 

Payments on short-term borrowings

 

(2,586,000

)

 

 

(1,390,038

)

Net cash used for financing activities

 

(257,177

)

 

 

(118,107

)

Effect of exchange rates on cash

 

(6,445

)

 

 

(898

)

 

 

 

 

Net change in cash and cash equivalents

 

(18,488

)

 

 

(70,993

)

Cash and cash equivalents, beginning of period

 

257,413

 

 

 

243,796

 

Cash and cash equivalents, end of period

$

238,925

 

 

$

172,803

 

 

 

 

 

 

As of June 30,

Operational Data:

 

2022

 

 

 

2021

 

Employees

 

18,146

 

 

 

15,705

 

CHRW-IR

Chuck Ives, Director of Investor Relations
Email:chuck.ives@chrobinson.com

Source: C.H. Robinson