C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW)
today reported financial results for the quarter ended September
30, 2024.
Third Quarter
Highlights:
- Significant year-over-year increase in profitability, driven
by strong execution, disciplined volume growth and improvement in
gross profit, productivity and operating leverage
- Gross profits increased 15.5% to $723.8 million
- Income from operations increased 58.7% to $180.1
million
- Adjusted operating margin(1) increased 660 basis points to
24.5%
- Adjusted operating margin, excluding restructuring and loss
on divestiture(1), increased 1,120 basis points to 32.9%
- Diluted earnings per share (EPS) increased 17.6% to
$0.80
- Adjusted EPS(1) increased 45.5% to $1.28
- Cash generated by operations decreased by $97.2 million to
$108.1 million provided by operations, due to an increase in net
operating working capital related to higher ocean rates
(1) Adjusted operating margin, adjusted
operating margin, excluding restructuring and loss on divestiture,
and adjusted EPS 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 pages 11
through 13 for further discussion and GAAP to Non-GAAP
Reconciliations.
"I’m pleased with our third quarter results that reflect
continued improvement in our execution, as we continue to deploy
our new operating model. We are raising the bar, even in a
historically prolonged freight recession, with strong execution and
disciplined volume growth across divisions while delivering
exceptional service for our customers and carriers," said C.H.
Robinson's President and Chief Executive Officer, Dave Bozeman. "I
want to thank our people, one of our greatest competitive
advantages, for their relentless efforts to embrace our new
operating model and execute in a fit, fast and focused way so we
can keep pushing that bar higher."
"Due to a focus on constantly testing market conditions and
optimizing yield, we improved the quality of our volume in the
third quarter and continued to expand our NAST gross profit margin.
We also continued to push our efficiency to higher levels in both
NAST and Global Forwarding, and we remain on track to deliver
greater than 30% compound growth in productivity over the two-year
period from the end of 2022 to end of 2024."
"Our new operating model has changed how we discover and inspect
root cause issues and quickly implement countermeasures to improve
the level of our operational execution. The reliability of our
operating reviews continues to increase, as we leverage our data
rich environment to inform our decision making and enhance our
competitive differentiation," said Bozeman. "At an organizational
level, we continue to cascade the operating model deeper into the
organization and build operational muscle at various levels of the
enterprise to deliver on our strategic roadmap. As part of this
effort, an evolving toolkit is being used by our employees in the
form of problem resolution, balanced scorecard reviews, daily
management, and value stream mapping, to name a few."
"Empowering our people with the Robinson operating model is
creating a flywheel of performance, talent development and
accountability that is evolving our culture to be driven by
progress, execution and proactive problem identification and
resolution. This is showing up in improvements such as more
disciplined pricing and better decisions on the volume that we’re
seeking. We are still early in our journey, but the operating model
is helping us execute a solid strategy even better, and we expect
further improvement as our team continues to embrace this new way
of operating. As I’ve said before, I know from my past experiences
of implementing Lean operating models that improvement isn’t always
linear. But I’m confident in the team’s willingness and ability to
drive a higher and more consistent level of discipline in our
operational execution," Bozeman concluded.
Summary of Third Quarter of 2024
Results Compared to the Third Quarter of 2023
- Total revenues increased 7.0% to $4.6 billion, primarily
driven by higher pricing and volume in our ocean services,
partially offset by lower pricing and volume in truckload
services.
- Gross profits increased 15.5% to $723.8 million.
Adjusted gross profits increased 15.8% to $735.3 million,
primarily driven by higher adjusted gross profit per transaction in
our ocean and truckload services.
- Operating expenses increased 6.5% to $555.1 million.
Personnel expenses increased 5.2% to $361.6 million,
primarily due to higher variable compensation, partially offset by
cost optimization efforts. Average employee headcount declined
9.6%. Other selling, general and administrative (“SG&A”)
expenses increased 8.9% to $193.6 million, primarily due to a
$57.0 million loss on the planned divestiture of our Europe Surface
Transportation business. The prior year included $21.4 million of
restructuring expenses, primarily related to the divestiture of our
operations in Argentina. In addition, other SG&A expenses
decreased across several expense categories in the current
year.
- Income from operations totaled $180.1 million, up 58.7%
due to the increase in adjusted gross profits, partially offset by
the increase in operating expenses. Adjusted operating
margin(1) of 24.5% increased 660 basis points.
- Interest and other income/expense, net totaled $36.3
million of expense, consisting primarily of $22.1 million of
interest expense, which increased $0.2 million versus last year,
and a $15.1 million net loss from foreign currency revaluation and
realized foreign currency gains and losses.
- The effective tax rate in the quarter was 32.4%,
compared to 11.7% in the third quarter last year. The higher rate
in the third quarter of this year was driven by the impact of
higher pre-tax income and non-recurring discrete items in the
quarter, partially offset by increased tax benefit related to
stock-based compensation and higher U.S. tax credits.
- Net income totaled $97.2 million, up 18.6% from a year
ago. Diluted EPS of $0.80 increased 17.6%. Adjusted
EPS(1) of $1.28 increased 45.5%.
(1) Adjusted operating margin and adjusted EPS 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 pages 11 through 13 for further discussion and
GAAP to Non-GAAP Reconciliations.
Summary of 2024 Year-to-Date Results
Compared to 2023
- Total revenues increased 1.2% to $13.5 billion,
primarily driven by higher pricing and volume in our ocean
services, partially offset by lower pricing in our truckload
services.
- Gross profits increased 4.4% to $2.0 billion.
Adjusted gross profits increased 4.8% to $2.1 billion,
primarily driven by higher adjusted gross profit per transaction in
our ocean and truckload services.
- Operating expenses increased 1.0% to $1.6 billion.
Personnel expenses decreased 0.2% to $1.1 billion, primarily
due to cost optimization efforts partially offset by higher
variable compensation. Average employee headcount declined 10.5%.
Other SG&A expenses increased 3.9% to $493.2 million
primarily due to the $57.0 million loss on the planned divestiture
of our Europe Surface Transportation business. The prior year
included $22.6 million of restructuring expenses, primarily related
to the divestiture of our operations in Argentina. In addition,
other SG&A expenses decreased across several expense categories
in the current year.
- Income from operations totaled $485.3 million, up 19.2%
from last year, due to the increase in adjusted gross profits,
partially offset by an increase in operating expenses. Adjusted
operating margin(1) of 23.3% increased 280 basis points.
- Interest and other income/expense, net totaled $74.6
million of expense, primarily consisting of $67.1 million of
interest expense, which decreased $1.5 million versus last year,
due to a lower average debt balance. The year-to-date results also
include a $10.7 million net loss from foreign currency revaluation
and realized foreign currency gains and losses.
- The effective tax rate for the nine months ended
September 30, 2024 was 23.0% compared to 13.5% in the year-ago
period. The higher rate in the current period was driven by the
impact of higher pre-tax income and non-recurring discrete items in
the quarter, partially offset by higher U.S. tax credits.
- Net income totaled $316.4 million, up 7.6% from a year
ago. Diluted EPS of $2.63 increased 6.9%. Adjusted
EPS(1) of $3.30 increased 17.9%.
(1) Adjusted operating margin and adjusted
EPS 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 pages 11 through 13 for
further discussion and GAAP to Non-GAAP Reconciliations.
North American Surface Transportation
(“NAST”) Results
Summarized financial results of our NAST segment are as follows
(dollars in thousands):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Total revenues
$
2,934,617
$
3,086,970
(4.9
)%
$
8,924,839
$
9,470,425
(5.8
)%
Adjusted gross profits(1)
420,664
386,510
8.8
%
1,237,431
1,213,697
2.0
%
Income from operations
148,767
112,121
32.7
%
398,764
364,002
9.5
%
____________________________________________
(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.
Third quarter total revenues for the NAST segment totaled $2.9
billion, a decrease of 4.9% over the prior year, primarily driven
by lower truckload pricing, reflecting an oversupply of truckload
capacity compared to freight demand. NAST adjusted gross profits
increased 8.8% in the quarter to $420.7 million. Adjusted gross
profits in truckload increased 16.6% due to a 21.0% increase in
adjusted gross profit per shipment, partially offset by a 3.5%
decrease in truckload shipments. Our average truckload linehaul
rate per mile charged to our customers, which excludes fuel
surcharges, increased approximately 2.5% in the quarter compared to
the prior year, while truckload linehaul cost per mile, excluding
fuel surcharges, also decreased 0.5%, resulting in a 21.5% increase
in truckload adjusted gross profit per mile. LTL adjusted gross
profits increased 3.7% versus the year-ago period, driven by a 2.5%
increase in LTL volume and a 1.0% increase in adjusted gross profit
per order. NAST overall volume increased modestly for the quarter.
Operating expenses decreased 0.9%, primarily due to cost
optimization efforts and lower credit losses, which were partially
offset by higher variable compensation. NAST average employee
headcount was down 10.9% in the quarter. Income from operations
increased 32.7% to $148.8 million, and adjusted operating margin
expanded 640 basis points to 35.4%.
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,
2024
2023
% change
2024
2023
% change
Total revenues
$
1,141,190
$
719,045
58.7
%
$
2,921,050
$
2,288,890
27.6
%
Adjusted gross profits(1)
234,636
169,893
38.1
%
598,748
527,043
13.6
%
Income from operations
88,115
3,491
N/M
160,649
63,254
154.0
%
____________________________________________
(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.
Third quarter total revenues for the Global Forwarding segment
increased 58.7% to $1.1 billion, primarily driven by higher pricing
and volume in our ocean services. Adjusted gross profits increased
38.1% in the quarter to $234.6 million. Ocean adjusted gross
profits increased 57.4%, driven by a 47.0% increase in adjusted
gross profit per shipment and a 7.0% increase in shipments. Air
adjusted gross profits increased 11.4%, driven by a 20.0% increase
in metric tons shipped, partially offset by a 7.0% decrease in
adjusted gross profit per metric ton shipped. Customs adjusted
gross profits increased 13.5%, driven by both a 7.0% increase in
adjusted gross profit per transaction and a 6.5% increase in
transaction volume. Operating expenses decreased 11.9%, primarily
due to a $23.6 million of restructuring expenses in the prior year,
primarily related to the divestiture of our operations in
Argentina, and due to cost optimization efforts in the current
year. Third quarter average employee headcount decreased 10.4%.
Income from operations increased to $88.1 million, and adjusted
operating margin expanded 3,550 basis points to 37.6% 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 September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Total revenues
$
568,834
$
535,015
6.3
%
$
1,694,411
$
1,615,241
4.9
%
Adjusted gross profits(1):
Robinson Fresh
$
36,708
$
31,083
18.1
%
$
110,327
$
100,123
10.2
%
Managed Services
27,949
29,427
(5.0
)%
85,637
87,350
(2.0
)%
Other Surface Transportation
15,296
17,936
(14.7
)%
48,248
57,772
(16.5
)%
____________________________________________
(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.
Third quarter Robinson Fresh adjusted gross profits increased
18.1% to $36.7 million due to an increase in integrated supply
chain solutions for retail and foodservice customers. Managed
Services adjusted gross profits decreased 5.0% due to lower
transaction volume. Other Surface Transportation adjusted gross
profits decreased 14.7% to $15.3 million, primarily due to a 17.0%
decrease in Europe truckload adjusted gross profits.
Other Income Statement
Items
Interest and other income/expense, net totaled $36.3 million of
expense, consisting primarily of $22.1 million of interest expense,
which increased $0.2 million versus the third quarter of 2023 and a
$15.1 million net loss from foreign currency revaluation and
realized foreign currency gains and losses.
The third quarter effective tax rate was 32.4%, up from 11.7%
last year. The higher rate in the third quarter of this year was
driven by the impact of higher pre-tax income and non-recurring
discrete items in the quarter, partially offset by increased tax
benefit related to stock-based compensation and higher U.S. tax
credits. For 2024, we now expect our full-year effective tax rate
to be 18% to 20%.
Diluted weighted average shares outstanding in the quarter were
up 1.2%.
Cash Flow Generation and Capital
Distribution
Cash generated from operations totaled $108.1 million in the
third quarter, compared to $205.2 million of cash generated from
operations in the third quarter of 2023. The $97.2 million decrease
in cash flow from operations was primarily related to a $190.0
million decline in cash provided by changes in net operating
working capital, due to a $165.5 million sequential increase in net
operating working capital in the third quarter of 2024 compared to
a $24.5 million sequential decrease in the third quarter of
2023.
In the third quarter of 2024, cash returned to shareholders
totaled $77.1 million, with $73.0 million in cash dividends and
$4.1 million in repurchases of common stock.
Capital expenditures totaled $17.3 million in the quarter.
Capital expenditures for 2024 are now expected to be $75 million to
$85 million.
About C.H. Robinson
C.H. Robinson delivers logistics like no one else™. Companies
around the world look to us to reimagine supply chains, advance
freight technology, and solve logistics challenges—from the simple
to the most complex. Over 90,000 customers and 450,000 contract
carriers in our network trust us to manage $22 billion in freight
annually. Through our unmatched expertise, unrivaled scale, and
tailored solutions, we ensure the seamless delivery of goods across
industries and continents via truckload, less-than-truckload,
ocean, air, and beyond. As a responsible global citizen, we make
supply chains more sustainable and proudly contribute millions to
the causes that matter most to our employees. For more information,
visit us at 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, factors such
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
that could adversely impact our profitability; freight levels and
increasing costs and availability of truck capacity or alternative
means of transporting freight; risks associated with seasonal
changes or significant disruptions in the transportation industry;
risks associated with identifying and completing suitable
acquisitions; our dependence on and changes in relationships with
existing contracted truck, rail, ocean, and air carriers; risks
associated with the loss of significant customers; risks associated
with reliance on technology to operate our business; cyber-security
related risks; our ability to staff and retain employees; risks
associated with operations outside of the U.S.; our ability to
successfully integrate the operations of acquired companies with
our historic operations; climate change related risks; risks
associated with our indebtedness; risks associated with interest
rates; risks associated with litigation, including contingent auto
liability and insurance coverage; risks associated with the
potential impact of changes in government regulations including
environmental-related regulations; risks associated with the
changes to income tax regulations; risks associated with the
produce industry, including food safety and contamination issues;
the impact of changes in political and governmental conditions;
changes to our capital structure; changes due to catastrophic
events; risks associated with the usage of artificial intelligence
technologies; 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 2024 Earnings Conference
Call Wednesday, October 30, 2024; 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 chrobinson.com. To participate in the
conference call by telephone, please call ten minutes early by
dialing: 877-269-7756
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 may
have revenues from multiple service lines.
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Adjusted gross profits(1):
Transportation
Truckload
$
279,564
$
245,439
13.9
%
$
811,164
$
795,240
2.0
%
LTL
143,228
137,949
3.8
%
430,187
413,771
4.0
%
Ocean
163,314
104,116
56.9
%
392,831
321,692
22.1
%
Air
33,607
30,201
11.3
%
95,045
95,246
(0.2
)%
Customs
28,266
24,904
13.5
%
81,013
73,366
10.4
%
Other logistics services
54,338
64,838
(16.2
)%
171,216
196,333
(12.8
)%
Total transportation
702,317
607,447
15.6
%
1,981,456
1,895,648
4.5
%
Sourcing
32,936
27,402
20.2
%
98,935
90,337
9.5
%
Total adjusted gross profits
$
735,253
$
634,849
15.8
%
$
2,080,391
$
1,985,985
4.8
%
____________________________________________
(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 September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Revenues:
Transportation
$
4,278,300
$
4,029,407
6.2
%
$
12,482,818
$
12,442,199
0.3
%
Sourcing
366,341
311,623
17.6
%
1,057,482
932,357
13.4
%
Total revenues
4,644,641
4,341,030
7.0
%
13,540,300
13,374,556
1.2
%
Costs and expenses:
Purchased transportation and related
services
3,575,983
3,421,960
4.5
%
10,501,362
10,546,551
(0.4
)%
Purchased products sourced for resale
333,405
284,221
17.3
%
958,547
842,020
13.8
%
Direct internally developed software
amortization
11,441
8,233
39.0
%
32,546
24,299
33.9
%
Total direct expenses
3,920,829
3,714,414
5.6
%
11,492,455
11,412,870
0.7
%
Gross profit
$
723,812
$
626,616
15.5
%
$
2,047,845
$
1,961,686
4.4
%
Plus: Direct internally developed software
amortization
11,441
8,233
39.0
%
32,546
24,299
33.9
%
Adjusted gross profit
$
735,253
$
634,849
15.8
%
$
2,080,391
$
1,985,985
4.8
%
Our adjusted operating margin is a non-GAAP financial measure
calculated as operating income divided by adjusted gross profit.
Our adjusted operating margin - excluding restructuring and loss on
divestiture is a similar non-GAAP financial measure as adjusted
operating margin, but also excludes the impact of restructuring and
loss on divestiture. We believe adjusted operating margin and
adjusted operating margin - excluding restructuring and loss on
divestiture are useful measures of our profitability in comparison
to our adjusted gross profit, which we consider a primary
performance metric as discussed above. The comparisons of operating
margin to adjusted operating margin and adjusted operating margin -
excluding restructuring and loss on divestiture are presented
below:
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Total revenues
$
4,644,641
$
4,341,030
7.0
%
$
13,540,300
$
13,374,556
1.2
%
Income from operations
180,119
113,522
58.7
%
485,342
407,178
19.2
%
Operating margin
3.9
%
2.6
%
130 bps
3.6
%
3.0
%
60 bps
Adjusted gross profit
$
735,253
$
634,849
15.8
%
$
2,080,391
$
1,985,985
4.8
%
Income from operations
180,119
113,522
58.7
%
485,342
407,178
19.2
%
Adjusted operating margin
24.5
%
17.9
%
660 bps
23.3
%
20.5
%
280 bps
Adjusted gross profit
$
735,253
$
634,849
15.8
%
$
2,080,391
$
1,985,985
4.8
%
Adjusted income from operations
241,584
137,985
75.1
%
574,941
449,495
27.9
%
Adjusted operating margin - excluding
restructuring and loss on divestiture
32.9
%
21.7
%
1,120 bps
27.6
%
22.6
%
500 bps
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
Our adjusted income (loss) from operations, adjusted operating
margin - excluding restructuring and loss on divestiture, adjusted
net income and adjusted net income per share (diluted) are non-GAAP
financial measures. These non-GAAP measures are calculated
excluding the impact of restructuring, losses from divestitures,
and foreign currency losses from our Argentina operations. We
believe that these measures provide useful information to investors
and include them within our internal reporting to our chief
operating decision maker. Accordingly, the discussion of our
results of operations includes discussion on the changes in our
adjusted income (loss) from operations, adjusted operating margin -
excluding restructuring and loss on divestiture, adjusted net
income and adjusted net income per share (diluted). The
reconciliation of these non-GAAP measures are presented below (in
thousands except per share data):
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended September 30, 2024
Non-GAAP
Reconciliation:
Income (loss) from operations
$
148,767
$
88,115
$
(56,763
)
$
180,119
Severance and other personnel expenses
1,238
461
1,221
2,920
Other selling, general, and administrative
expenses
560
855
57,130
58,545
Total adjustments to income (loss) from
operations(1)
1,798
1,316
58,351
61,465
Adjusted income from operations
$
150,565
$
89,431
$
1,588
$
241,584
Adjusted gross profit
$
420,664
$
234,636
$
79,953
$
735,253
Adjusted income from operations
150,565
89,431
1,588
241,584
Adjusted operating margin - excluding
restructuring and loss on divestiture
35.8
%
38.1
%
2.0
%
32.9
%
NAST
Global Forwarding
All
Other and Corporate
Consolidated
Nine Months Ended September 30, 2024
Income (loss) from operations
$
398,764
$
160,649
$
(74,071
)
$
485,342
Severance and other personnel expenses
9,022
5,855
5,430
20,307
Other selling, general, and administrative
expenses
6,214
2,448
60,630
69,292
Total adjustments to income (loss) from
operations(2)
15,236
8,303
66,060
89,599
Adjusted income (loss) from operations
$
414,000
$
168,952
$
(8,011
)
$
574,941
Adjusted gross profit
$
1,237,431
$
598,748
$
244,212
$
2,080,391
Adjusted income (loss) from operations
414,000
168,952
(8,011
)
574,941
Adjusted operating margin - excluding
restructuring and loss on divestiture
33.5
%
28.2
%
N/M
27.6
%
Three Months Ended September 30,
2024
Nine Months Ended September 30,
2024
$ in 000's
per share
$ in 000's
per share
Net income and per share (diluted)
$
97,229
$
0.80
$
316,384
$
2.63
Restructuring and related costs,
pre-tax
4,429
0.04
32,563
0.28
Loss on divestiture, pre-tax
57,036
0.47
57,036
0.47
Tax effect of adjustments
(3,176
)
(0.03
)
(9,922
)
(0.08
)
Adjusted net income and per share
(diluted)
$
155,518
$
1.28
$
396,061
$
3.30
____________________________________________
(1) The three months ended September 30,
2024 include restructuring expenses of $2.9 million related to
workforce reductions and $58.5 million of other charges, which
includes a $57.0 million loss on the planned divestiture of our
Europe Surface Transportation business.
(2) The nine months ended September 30,
2024 include restructuring expenses of $20.3 million related to
workforce reductions and $69.3 million of other charges, which
includes a $57.0 million loss on the planned divestiture of our
Europe Surface Transportation business, an impairment of internally
developed software, and charges related to reducing our facilities
footprint including early termination or abandonment of office
buildings under operating leases.
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended September 30, 2023
Non-GAAP
Reconciliation:
Income (loss) from operations
$
112,121
$
3,491
$
(2,090
)
$
113,522
Severance and other personnel expenses
(73
)
2,513
578
3,018
Other selling, general, and administrative
expenses
4
21,079
362
21,445
Total adjustments to income (loss) from
operations(1)
(69
)
23,592
940
24,463
Adjusted income (loss) from operations
$
112,052
$
27,083
$
(1,150
)
$
137,985
Adjusted gross profit
$
386,510
$
169,893
$
78,446
$
634,849
Adjusted income (loss) from operations
112,052
27,083
(1,150
)
137,985
Adjusted operating margin - excluding
restructuring and loss on divestiture
29.0
%
15.9
%
N/M
21.7
%
NAST
Global Forwarding
All Other and Corporate
Consolidated
Nine Months Ended September 30, 2023
Income (loss) from operations
$
364,002
$
63,254
$
(20,078
)
$
407,178
Severance and other personnel expenses
1,083
4,742
13,918
19,743
Other selling, general, and administrative
expenses
8
21,242
1,324
22,574
Total adjustments to income (loss) from
operations(2)
1,091
25,984
15,242
42,317
Adjusted income (loss) from operations
$
365,093
$
89,238
$
(4,836
)
$
449,495
Adjusted gross profit
$
1,213,697
$
527,043
$
245,245
$
1,985,985
Adjusted income (loss) from operations
365,093
89,238
(4,836
)
449,495
Adjusted operating margin - excluding
restructuring and loss on divestiture
30.1
%
16.9
%
N/M
22.6
%
Three Months Ended September 30,
2023
Nine Months Ended September 30,
2023
$ in 000's
per share
$ in 000's
per share
Net income and per share (diluted)
$
81,949
$
0.68
$
294,156
$
2.46
Restructuring and related costs,
pre-tax(1)(2)
(139
)
—
17,715
0.15
Loss on divestiture, pre-tax
24,602
0.21
24,602
0.20
Foreign currency loss on divested
operations, pre-tax
5,112
0.04
8,921
0.07
Tax effect of adjustments
(5,469
)
(0.05
)
(9,755
)
(0.08
)
Adjusted net income and per share
(diluted)
$
106,055
$
0.88
$
335,639
$
2.80
____________________________________________
(1) The three months ended September 30,
2023 includes restructuring expenses of $3.0 million related to
workforce reductions and $21.4 million of other charges, primarily
related to the divestiture of our Argentina operations.
(2) The nine months ended September 30,
2023 includes restructuring expenses of $19.7 million related to
workforce reductions and $22.6 million of other charges, primarily
related to the divestiture of our Argentina operations.
Condensed Consolidated Statements of
Income (unaudited, in thousands, except per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% change
2024
2023
% change
Revenues:
Transportation
$
4,278,300
$
4,029,407
6.2
%
$
12,482,818
$
12,442,199
0.3
%
Sourcing
366,341
311,623
17.6
%
1,057,482
932,357
13.4
%
Total revenues
4,644,641
4,341,030
7.0
%
13,540,300
13,374,556
1.2
%
Costs and expenses:
Purchased transportation and related
services
3,575,983
3,421,960
4.5
%
10,501,362
10,546,551
(0.4
)%
Purchased products sourced for resale
333,405
284,221
17.3
%
958,547
842,020
13.8
%
Personnel expenses
361,559
343,532
5.2
%
1,101,868
1,103,915
(0.2
)%
Other selling, general, and administrative
expenses
193,575
177,795
8.9
%
493,181
474,892
3.9
%
Total costs and expenses
4,464,522
4,227,508
5.6
%
13,054,958
12,967,378
0.7
%
Income from operations
180,119
113,522
58.7
%
485,342
407,178
19.2
%
Interest and other income/expense, net
(36,282
)
(20,748
)
74.9
%
(74,587
)
(67,272
)
10.9
%
Income before provision for income
taxes
143,837
92,774
55.0
%
410,755
339,906
20.8
%
Provision for income taxes
46,608
10,825
330.6
%
94,371
45,750
106.3
%
Net income
$
97,229
$
81,949
18.6
%
$
316,384
$
294,156
7.6
%
Net income per share (basic)
$
0.81
$
0.69
17.4
%
$
2.65
$
2.48
6.9
%
Net income per share (diluted)
$
0.80
$
0.68
17.6
%
$
2.63
$
2.46
6.9
%
Weighted average shares outstanding
(basic)
119,860
118,464
1.2
%
119,542
118,532
0.9
%
Weighted average shares outstanding
(diluted)
121,179
119,751
1.2
%
120,155
119,762
0.3
%
Business Segment Information (unaudited,
in thousands, except average employee headcount)
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended September 30, 2024
Total revenues
$
2,934,617
$
1,141,190
$
568,834
$
4,644,641
Adjusted gross profits(1)
420,664
234,636
79,953
735,253
Income (loss) from operations
148,767
88,115
(56,763
)
180,119
Depreciation and amortization
4,904
2,608
16,436
23,948
Total assets(2)
3,026,031
1,566,427
1,020,897
5,613,355
Average employee headcount
5,595
4,552
3,938
14,085
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended September 30, 2023
Total revenues
$
3,086,970
$
719,045
$
535,015
$
4,341,030
Adjusted gross profits(1)
386,510
169,893
78,446
634,849
Income (loss) from operations
112,121
3,491
(2,090
)
113,522
Depreciation and amortization
5,882
5,446
14,216
25,544
Total assets(2)
3,162,720
1,081,262
1,073,685
5,317,667
Average employee headcount
6,278
5,082
4,217
15,577
____________________________________________
(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 employee headcount)
NAST
Global Forwarding
All Other and Corporate
Consolidated
Nine Months Ended September 30, 2024
Total revenues
$
8,924,839
$
2,921,050
$
1,694,411
$
13,540,300
Adjusted gross profits(1)
1,237,431
598,748
244,212
2,080,391
Income (loss) from operations
398,764
160,649
(74,071
)
485,342
Depreciation and amortization
15,779
8,245
48,856
72,880
Total assets(2)
3,026,031
1,566,427
1,020,897
5,613,355
Average employee headcount
5,800
4,714
4,023
14,537
NAST
Global Forwarding
All Other and Corporate
Consolidated
Nine Months Ended September 30, 2023
Total revenues
$
9,470,425
$
2,288,890
$
1,615,241
$
13,374,556
Adjusted gross profits(1)
1,213,697
527,043
245,245
1,985,985
Income (loss) from operations
364,002
63,254
(20,078
)
407,178
Depreciation and amortization
17,389
16,410
42,100
75,899
Total assets(2)
3,162,720
1,081,262
1,073,685
5,317,667
Average employee headcount
6,574
5,276
4,390
16,240
____________________________________________
(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)
September 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
131,704
$
145,524
Receivables, net of allowance for credit
loss
2,630,350
2,381,963
Contract assets, net of allowance for
credit loss
273,251
189,900
Prepaid expenses and other
137,871
163,307
Assets held for sale
165,810
—
Total current assets
3,338,986
2,880,694
Property and equipment, net of accumulated
depreciation and amortization
132,632
144,718
Right-of-use lease assets
333,936
353,890
Intangible and other assets, net of
accumulated amortization
1,807,801
1,845,978
Total assets
$
5,613,355
$
5,225,280
Liabilities and stockholders’
investment
Current liabilities:
Accounts payable and outstanding
checks
$
1,372,807
$
1,370,334
Accrued expenses:
Compensation
165,163
135,104
Transportation expense
212,608
147,921
Income taxes
7,178
4,748
Other accrued liabilities
161,870
159,435
Current lease liabilities
74,538
74,451
Current portion of debt
150,000
160,000
Liabilities held for sale
96,673
—
Total current liabilities
2,240,837
2,051,993
Long-term debt
1,411,356
1,420,487
Noncurrent lease liabilities
281,015
297,563
Noncurrent income taxes payable
24,215
21,289
Deferred tax liabilities
11,714
13,177
Other long-term liabilities
4,152
2,074
Total liabilities
3,973,289
3,806,583
Total stockholders’ investment
1,640,066
1,418,697
Total liabilities and stockholders’
investment
$
5,613,355
$
5,225,280
Condensed Consolidated Statements of Cash
Flow (unaudited, in thousands, except operational data)
Nine Months Ended September
30,
Operating activities:
2024
2023(1)
Net income
$
316,384
$
294,156
Adjustments to reconcile net income to net
cash (used for) provided by operating activities:
Depreciation and amortization
72,880
75,899
Provision for credit losses
3,755
(4,032
)
Stock-based compensation
64,249
37,309
Deferred income taxes
(7,033
)
(35,269
)
Excess tax benefit on stock-based
compensation
(5,509
)
(9,899
)
Loss on disposal group held for sale
48,232
21,113
Other operating activities
11,845
3,740
Changes in operating elements:
Receivables
(398,059
)
525,761
Contract assets
(88,171
)
52,810
Prepaid expenses and other
24,588
(7,632
)
Right of use asset
5,884
20,374
Accounts payable and outstanding
checks
77,397
(122,312
)
Accrued compensation
33,921
(106,943
)
Accrued transportation expenses
68,588
(42,481
)
Accrued income taxes
10,634
3,131
Other accrued liabilities
4,809
(2,636
)
Lease liability
(5,917
)
(17,737
)
Other assets and liabilities
2,677
(737
)
Net cash provided by operating
activities
241,154
684,615
Investing activities:
Purchases of property and equipment
(19,977
)
(25,889
)
Purchases and development of software
(39,122
)
(42,086
)
Proceeds from sale of property and
equipment
—
1,324
Net cash used for investing activities
(59,099
)
(66,651
)
Financing activities:
Proceeds from stock issued for employee
benefit plans
79,914
46,061
Stock tendered for payment of withholding
taxes
(23,902
)
(23,754
)
Repurchase of common stock
—
(63,884
)
Cash dividends
(220,256
)
(218,942
)
Payments on long-term borrowings
(10,000
)
—
Proceeds from short-term borrowings
2,461,500
2,778,750
Payments on short-term borrowings
(2,471,500
)
(3,169,750
)
Net cash used for financing activities
(184,244
)
(651,519
)
Effect of exchange rates on cash and cash
equivalents
(653
)
(6,708
)
Net change in cash and cash equivalents,
including cash and cash equivalents classified within assets held
for sale
(2,842
)
(40,263
)
Less: net increase in cash and cash
equivalents within assets held for sale
(10,978
)
(2,486
)
Cash and cash equivalents, beginning of
period
145,524
217,482
Cash and cash equivalents, end of
period
$
131,704
$
174,733
As of September 30,
Operational Data:
2024
2023
Employees
13,956
15,391
(1) The nine months ended September 30,
2023 has been adjusted to conform to current year presentation.
Source: C.H. Robinson
CHRW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030807201/en/
FOR INQUIRIES, CONTACT: Chuck Ives, Senior Director of
Investor Relations Email: chuck.ives@chrobinson.com
CH Robinson Worldwide (NASDAQ:CHRW)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
CH Robinson Worldwide (NASDAQ:CHRW)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
