Delaware | 41-1883630 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Financial Statements of Business Acquired. |
(b) | Pro Forma Financial Information. |
• | Pro Forma Condensed Combined Balance Sheet (Unaudited) as of June 30, 2012 |
• | Pro Forma Condensed Combined Statements of Operations (Unaudited) for the six months ended June 30, 2012 |
• | Pro Forma Condensed Combined Statements of Operations (Unaudited) for the year ended December 31, 2011 |
(d) | Exhibits. |
23.1 | Consent of Independent Certified Public Accountants. |
99.1 | Consolidated Financial Statements and Report of Independent Certified Public Accountants of Phoenix International Freight Services, Ltd. and Subsidiaries as of June 30, 2012. |
99.2 | Unaudited Pro Forma Condensed Combined Financial Statements as of and for the six months ended June 30, 2012 and for the year ended December 31, 2011. |
C.H. ROBINSON WORLDWIDE, INC. | ||
Date: August 14, 2013 | By: /s/ Ben Campbell | |
Ben Campbell | ||
Vice President, General Counsel and | ||
Secretary |
Exhibit | Description | Method of Filing |
23.1 | Consent of Independent Certified Public Accountants. | Filed Electronically |
99.1 | Consolidated Financial Statements and Report of Independent Certified Public Accountants of Phoenix International Freight Services, Ltd. and Subsidiaries as of June 30, 2012. | Filed Electronically |
99.2 | Unaudited Pro Forma Condensed Combined Financial Statements as of and for the six months ended June 30, 2012 and for the year ended December 31, 2011. | Filed Electronically |
C O N T E N T S | |
Page | |
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS | 3 |
CONSOLIDATED FINANCIAL STATEMENTS | |
BALANCE SHEET | 4 |
STATEMENT OF INCOME | 6 |
STATEMENT OF CHANGES IN OWNERS' EQUITY | 7 |
STATEMENT OF CASH FLOWS | 8 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 9 |
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | $ | 67,705,976 | |
Accounts receivable, net of allowance for doubtful accounts of $979,151 | 119,715,970 | ||
Notes receivable | 193,451 | ||
Prepaid expenses | 1,080,867 | ||
Deferred income taxes | 978,382 | ||
Total current assets | 189,674,646 | ||
PROPERTY AND EQUIPMENT | |||
Buildings | 6,556,400 | ||
Leasehold improvements | 2,858,143 | ||
Furniture and fixtures | 8,589,446 | ||
Machinery and other equipment | 10,662,470 | ||
Automobiles and other transportation equipment | 1,271,744 | ||
29,938,203 | |||
Less accumulated depreciation | 17,086,016 | ||
12,852,187 | |||
Land | 382,937 | ||
13,235,124 | |||
OTHER ASSETS | |||
Deposits | 1,046,947 | ||
Deferred financing fees, net of amortization of $28,969 | 19,763 | ||
Goodwill | 5,776,061 | ||
Other assets | 1,296,138 | ||
Total other assets | 8,138,909 | ||
TOTAL ASSETS | $ | 211,048,679 |
LIABILITIES AND OWNERS' EQUITY | |||
CURRENT LIABILITIES | |||
Bank overdraft | $ | 6,219,221 | |
Line of credit | 86,971 | ||
Current maturities of long-term obligations | 803,550 | ||
Accounts payable | 31,157,157 | ||
Accrued salaries | 3,057,862 | ||
Accrued real estate taxes | 36,592 | ||
Income taxes payable | 4,988,347 | ||
Other accrued liabilities | 4,050,059 | ||
Total current liabilities | 50,399,759 | ||
LONG-TERM LIABILITIES | |||
Long-term obligations, less current maturities | 664,250 | ||
Deferred income taxes | 346,407 | ||
Total long-term liabilities | 1,010,657 | ||
OWNERS' EQUITY | |||
Owners' equity attributable to owners | |||
Common stock, $1.00 par value; authorized 100,000 shares; | |||
outstanding 39,420 shares | 39,420 | ||
Additional paid-in capital | 10,099,739 | ||
Retained earnings | 144,816,843 | ||
Accumulated other comprehensive income | 2,193,376 | ||
Total owners' equity attributable to owners | 157,149,378 | ||
Non-controlling interest | 881,071 | ||
Non-controlling interest - VIE | 1,607,814 | ||
Total owners' equity | 159,638,263 | ||
TOTAL LIABILITIES AND OWNERS' EQUITY | $ | 211,048,679 |
Amount | |||
(as restated) | |||
Net revenues | $ | 797,764,422 | |
Cost of revenues | 666,226,078 | ||
Gross profit on revenues | 131,538,344 | ||
Selling, general and administrative expenses | 88,490,736 | ||
Income from operations | 43,047,608 | ||
Other income (expense) | |||
Interest income | 220,550 | ||
Interest expense | (84,444 | ) | |
Currency gain | 631,602 | ||
Miscellaneous expense | (619,817 | ) | |
Total other income | 147,891 | ||
Income before income taxes and | |||
non-controlling interest | 43,195,499 | ||
Income tax expense | 12,656,267 | ||
Net income | 30,539,232 | ||
Non-controlling interest | (238,076 | ) | |
Non-controlling interest - VIE | (229,519 | ) | |
Net income attributable to owners | $ | 30,071,637 |
Accumulated | Total | ||||||||||||||||||||||||||||||||||||||
Additional | other | owners' equity | Total | ||||||||||||||||||||||||||||||||||||
Common | paid-in | Retained | comprehensive | Treasury | attributable | Non-controlling | Non-controlling | owners' | Comprehensive | ||||||||||||||||||||||||||||||
stock | capital | earnings | income | stock | to owners | interest | interest - VIE | equity | income (loss) | ||||||||||||||||||||||||||||||
Balance at July 1, 2011 | $ | 39,510 | $ | 10,122,869 | $ | 115,291,813 | $ | 3,390,631 | $ | — | $ | 128,844,823 | $ | 724,037 | $ | 1,343,354 | $ | 130,912,214 | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | 30,071,637 | — | — | 30,071,637 | 238,076 | 229,519 | 30,539,232 | $ | 30,071,637 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (1,197,255 | ) | — | (1,197,255 | ) | — | — | (1,197,255 | ) | (1,197,255 | ) | |||||||||||||||||||||||||
Total comprehensive income | $ | 28,874,382 | |||||||||||||||||||||||||||||||||||||
Non-controlling interest - Tahiti | — | — | — | — | — | — | — | 34,941 | 34,941 | ||||||||||||||||||||||||||||||
Partnership dividend distribution | — | — | — | — | — | — | (81,042 | ) | — | (81,042 | ) | ||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | (569,827 | ) | (569,827 | ) | — | — | (569,827 | ) | |||||||||||||||||||||||||||
Treasury stock retired | (90 | ) | (23,130 | ) | (546,607 | ) | - | 569,827 | — | — | — | — | |||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 39,420 | $ | 10,099,739 | $ | 144,816,843 | $ | 2,193,376 | $ - | $ | 157,149,378 | $ | 881,071 | $ | 1,607,814 | $ | 159,638,263 |
Cash flows from operating activities | |||
Net income | $ | 30,539,232 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 3,761,302 | ||
Deferred taxes | (243,611 | ) | |
Gain on sale of property and equipment | 38,820 | ||
Changes in assets and liabilities | |||
Receivables | (13,489,575 | ) | |
Prepaid expenses | 1,570,332 | ||
Other assets | (66,971 | ) | |
Accounts payable and accrued expenses | 4,949,567 | ||
Net cash provided by operating activities | 27,059,096 | ||
Cash flows from investing activities | |||
Disposal of subsidiaries investment | 11,558 | ||
Acquisition of property and equipment | (6,815,022 | ) | |
Proceeds from disposals of property and equipment | 106,188 | ||
Net cash used in investing activities | (6,697,276 | ) | |
Cash flows from financing activities | |||
Increase in bank overdraft | 2,432,090 | ||
Decrease in line of credit | (2,067,951 | ) | |
Principal repayments on long-term debt | (2,661,126 | ) | |
Principal borrowings on long-term debt | 3,384,402 | ||
Non-controlling interest distribution | (81,042 | ) | |
Non-controlling interest - Tahiti | 34,941 | ||
Treasury stock purchased | (569,827 | ) | |
Net cash provided by financing activities | 471,487 | ||
Effects of exchange rates changes on cash and cash equivalents | (1,197,254 | ) | |
Net increase in cash and cash equivalents | 19,636,053 | ||
Cash and cash equivalents, beginning of year | 48,069,923 | ||
Cash and cash equivalents, end of year | $ | 67,705,976 | |
Non-cash financing activities | |||
Treasury stock retired | $ | 569,827 | |
Supplemental cash flow information | |||
Interest paid | $ | 51,988 | |
Income taxes paid | 14,615,974 |
• | Phoenix International Logistics Co., Ltd. (Phoenix China), 100% owned. |
• | Phoenix International Freight Services Limited (Phoenix England), 100% owned. |
• | Phoenix International Freight Services, SAS (Phoenix France), 90% owned. |
• | Shanghai He Xun Software Company (SHA He Xun), 100% owned. |
• | Phoenix International Freight Services Limited (Phoenix India), 100% owned. |
• | Phoenix International Freight Services Limited (Phoenix Ireland), 75% owned. |
• | Phoenix Cesped S.r.l. (Phoenix Italy), 55% owned. |
• | Phoenix International Freight Services (Korea) Ltd. (Phoenix Korea), 100% owned. |
• | Phoenix International Freight Service SDN. BHD. (Phoenix Malaysia), 100% owned. |
• | Phoenix International Freight Services Limited (Phoenix Singapore), 90% owned. |
• | Phoenix International Freight Services Limited (Phoenix Sri Lanka), 90% owned. |
• | Phoenix International Freight Services, Ltd. (Taiwan, Air) (Taiwan Air), 100% owned. |
• | Phoenix International Freight Services, Ltd. (Taiwan, Ocean) (Taiwan Ocean), 100% owned. |
• | Phoenix International Freight Services (Thailand) Limited (Phoenix Thailand), 100% owned. |
• | PHX Holdings Ltd (PHX Holdings), 100% owned. |
• | Phoenix International Freight Services Limited (Phoenix Hong Kong), 100% owned by PHX Holdings. |
Asset description | Life | |
Buildings | 39 | |
Leasehold improvements | 15 - 39 | |
Furniture and fixtures | 7 | |
Machinery and other equipment | 5 - 7 | |
Automobiles and other transportation equipment | 3 - 7 |
As previously reported | Adjustments | As restated | |||||||||
Consolidated statement of income | |||||||||||
Net revenues | $ | 989,790,622 | $ | (192,026,200 | ) | $ | 797,764,422 | ||||
Cost of revenues | 858,252,278 | (192,026,200 | ) | 666,226,078 |
Accounts receivable | $ | 120,695,121 | |
Less allowance for doubtful receivables | 979,151 | ||
Net receivables | $ | 119,715,970 |
Beginning balance | $ | 961,573 | |
Provision for bad debts | 1,257,677 | ||
Accounts written off | (1,240,099 | ) | |
Ending balance | $ | 979,151 |
Phoenix Properties MO - Note payable to bank, due August 2018, payable in monthly | |||
installments of $8,333, including interest ranging from LIBOR plus 170 basis points (1.93875% at June 30, 2012) to the prime rate (3.25% at June 30, 2012), collateralized by building | $ | 117,958 | |
Phoenix Properties MO II - Note payable to bank, due March 2015, payable in monthly | |||
installments of $2,578, plus interest ranging from LIBOR plus 170 basis points (1.93875% at June 30, 2012) to the prime rate (3.25% at June 30, 2012), collateralized by building | 199,733 | ||
Other miscellaneous - foreign long-term notes | 1,150,109 | ||
1,467,800 | |||
Less current maturities included in current liabilities | (803,550 | ) | |
Total | $ | 664,250 |
Years ending June 30, | |||
2013 | $ | 803,550 | |
2014 | 55,140 | ||
2015 | 142,486 | ||
2016 | 2,694 | ||
2017 | — | ||
Thereafter | 463,930 | ||
Total | $ | 1,467,800 |
Current | |||
Federal | $ | 6,226,604 | |
State | 644,726 | ||
Foreign | 6,028,548 | ||
Total current | 12,899,878 | ||
Deferred | (243,611 | ) | |
Total expense | $ | 12,656,267 |
Federal taxes at the statutory rate | 35.0 | % |
State income tax, net of federal income tax effect | 0.5 | |
Permanent differences | 0.5 | |
Effect of foreign tax credits utilized | 1.1 | |
Foreign rates differential | (7.6 | ) |
Total | 29.5 | % |
Current deferred tax assets (liabilities) | |||
Allowance for doubtful accounts | $ | 312,878 | |
Accrued expenses | 513,837 | ||
Foreign tax credit | 178,725 | ||
Self-insurance | 158,604 | ||
Prepaid insurance | (225,763 | ) | |
Other | 40,101 | ||
Total current deferred tax assets | 978,382 | ||
Non-current deferred tax (liabilities) assets | |||
Goodwill | (249,601 | ) | |
Property and equipment | (420,137 | ) | |
Step rent | 276,786 | ||
Other | 46,545 | ||
Total non-current deferred tax liabilities | (346,407 | ) | |
Net deferred tax assets | $ | 631,975 |
Years ending June 30, | Facilities | Equipment | |||||
2013 | $ | 5,503,615 | $ | 1,103,039 | |||
2014 | 4,844,136 | 740,983 | |||||
2015 | 4,326,644 | 478,484 | |||||
2016 | 3,865,734 | 260,381 | |||||
2017 | 2,711,005 | 66,521 | |||||
Thereafter | 8,303,128 | 14,583 |
Shares | Shares | Additional | |||||
issued | outstanding | Amount | paid-in capital | ||||
Phoenix International Freight Services, Ltd., $1.00 par value; 100,000 shares authorized | 39,420 | 39,420 | $39,420 | $10,099,739 |
Current assets | $ | 2,222,547 | |
Property and equipment, net | 1,987,431 | ||
Other assets | 468,176 | ||
Total assets | $ | 4,678,154 | |
Current liabilities | $ | 2,026,879 | |
Long-term liabilities | 1,034,669 | ||
Minority interests - VIEs | 1,607,814 | ||
Ownership interest eliminated in consolidation | 30,750 | ||
Currency translation differences | (21,958 | ) | |
Total liabilities and equity | $ | 4,678,154 |
Historical | Historical | |||||||||||||||||||||||
C.H. Robinson | T-Chek Adjustments | Sub-total | Phoenix | Phoenix Adjustments | Pro Forma Combined | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 240,627 | $ | 263,952 | 3r | $ | 504,579 | $ | 67,706 | $ | (444,122 | ) | 3a | $ | 127,982 | |||||||||
(181 | ) | 3h | ||||||||||||||||||||||
Receivables, net | 1,415,390 | (51,406 | ) | 3s | 1,363,984 | 119,716 | — | 1,483,700 | ||||||||||||||||
Deferred tax asset | 6,743 | — | 6,743 | 978 | — | 7,721 | ||||||||||||||||||
Prepaid expenses and other | 44,841 | (1,430 | ) | 3s | 43,411 | 1,275 | — | 44,686 | ||||||||||||||||
Total current assets | 1,707,601 | 211,116 | 1,918,717 | 189,675 | (444,303 | ) | 1,664,089 | |||||||||||||||||
Property and equipment, net | 132,255 | (2,431 | ) | 3s | 129,824 | 13,235 | (1,911 | ) | 3h | 145,648 | ||||||||||||||
4,500 | 3e | |||||||||||||||||||||||
Goodwill | 359,372 | — | 359,372 | 5,776 | 431,945 | 3c | 797,093 | |||||||||||||||||
Intangible and other assets, net | 40,771 | (16,871 | ) | 3s | 23,900 | 2,363 | 130,000 | 3d | 166,795 | |||||||||||||||
10,552 | 3j | |||||||||||||||||||||||
(20 | ) | 3h | ||||||||||||||||||||||
Total assets | $ | 2,239,999 | $ | 191,814 | $ | 2,431,813 | $ | 211,049 | $ | 130,763 | $ | 2,773,625 | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable and outstanding checks | $ | 834,692 | $ | (89,354 | ) | 3s | $ | 745,338 | $ | 37,376 | $ | (3 | ) | 3h | $ | 782,711 | ||||||||
Current maturities of Long-term debt | — | — | — | 891 | 173,000 | 3a | 173,087 | |||||||||||||||||
(804 | ) | 3g | ||||||||||||||||||||||
Accrued expenses | 114,649 | (7,839 | ) | 3s | 214,165 | 12,133 | 8,000 | 3f | 234,298 | |||||||||||||||
379 | 3t | |||||||||||||||||||||||
106,976 | 3u | |||||||||||||||||||||||
Total current liabilities | 949,341 | 10,162 | 959,503 | 50,400 | 180,193 | 1,190,096 | ||||||||||||||||||
Long term liabilities | 12,468 | — | 12,468 | 1,010 | (664 | ) | 3g | 71,536 | ||||||||||||||||
48,170 | 3i | |||||||||||||||||||||||
10,552 | 3j | |||||||||||||||||||||||
Total liabilities | 961,809 | 10,162 | 971,971 | 51,410 | 238,251 | 1,261,632 | ||||||||||||||||||
Stockholders’ investment: | ||||||||||||||||||||||||
Common stock | 16,217 | — | 16,217 | 39 | 111 | 3b | 16,328 | |||||||||||||||||
(39 | ) | 3g | ||||||||||||||||||||||
Retained earnings | 1,957,462 | 181,652 | 3v | 2,139,114 | 144,817 | (144,817 | ) | 3g | 2,131,114 | |||||||||||||||
(8,000 | ) | 3f | ||||||||||||||||||||||
Additional paid-in capital | 206,846 | — | 206,846 | 10,100 | (10,100 | ) | 3g | 266,886 | ||||||||||||||||
60,040 | 3b | |||||||||||||||||||||||
Accumulated other comprehensive (loss) income | (11,745 | ) | — | (11,745 | ) | 2,193 | (2,193 | ) | 3g | (11,745 | ) | |||||||||||||
Treasury stock | (890,590 | ) | — | (890,590 | ) | — | — | (890,590 | ) | |||||||||||||||
Non-controlling interest | — | — | — | 2,490 | (2,490 | ) | 3h | — | ||||||||||||||||
Total Stockholders’ investment | 1,278,190 | 181,652 | 1,459,842 | 159,639 | (107,488 | ) | 1,511,993 | |||||||||||||||||
Total liabilities and stockholders’ investment | $ | 2,239,999 | $ | 191,814 | $ | 2,431,813 | $ | 211,049 | $ | 130,763 | $ | 2,773,625 |
Historical | Historical | |||||||||||||||||||||||
C.H. Robinson | T-Chek Adjustments | Sub-total | Phoenix | Phoenix Adjustments | Pro Forma Combined | |||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||
Transportation | $ | 4,653,602 | $ | — | $ | 4,653,602 | $ | 406,608 | $ | — | $ | 5,060,210 | ||||||||||||
Sourcing | 822,327 | — | 822,327 | — | — | 822,327 | ||||||||||||||||||
Payment Services | 31,899 | (26,129 | ) | 3w | 5,770 | — | — | 5,770 | ||||||||||||||||
Total revenues | 5,507,828 | (26,129 | ) | 5,481,699 | 406,608 | — | 5,888,307 | |||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Purchased transportation and related services | 3,917,380 | — | 3,917,380 | 338,300 | (14,612 | ) | 3q | 4,241,068 | ||||||||||||||||
Purchased products sourced for resale | 750,179 | — | 750,179 | — | — | 750,179 | ||||||||||||||||||
Personnel expenses | 360,622 | (7,706 | ) | 3w | 352,916 | — | (5,080 | ) | 3l | 394,016 | ||||||||||||||
46,180 | 3q | |||||||||||||||||||||||
Other selling, general, and administrative expenses | 125,188 | (5,926 | ) | 3w | 119,262 | 50,075 | 8,133 | 3k | 146,145 | |||||||||||||||
168 | 3o | |||||||||||||||||||||||
75 | 3e | |||||||||||||||||||||||
(31,568 | ) | 3q | ||||||||||||||||||||||
Total costs and expenses | 5,153,369 | (13,632 | ) | 5,139,737 | 388,375 | 3,296 | 5,531,408 | |||||||||||||||||
Income from operations | 354,459 | (12,497 | ) | 341,962 | 18,233 | (3,296 | ) | 356,899 | ||||||||||||||||
Investment and other income (expense) | 900 | (22 | ) | 3w | 878 | (1,662 | ) | (1,275 | ) | 3m | (1,945 | ) | ||||||||||||
114 | 3h | |||||||||||||||||||||||
Income before provision for income taxes | 355,359 | (12,519 | ) | 342,840 | 16,571 | (4,457 | ) | 354,954 | ||||||||||||||||
Provision for income taxes | 134,277 | (4,707 | ) | 3x | 129,570 | 4,909 | (523 | ) | 3p | 133,956 | ||||||||||||||
Net income | $ | 221,082 | $ | (7,812 | ) | $ | 213,270 | $ | 11,662 | $ | (3,934 | ) | $ | 220,998 | ||||||||||
Basic net income per share | $ | 1.36 | $ | 1.31 | $ | 1.35 | ||||||||||||||||||
Diluted net income per share | $ | 1.36 | $ | 1.31 | $ | 1.35 | ||||||||||||||||||
Basic weighted average shares outstanding | 162,290 | 162,290 | 1,108 | 3n | 163,398 | |||||||||||||||||||
Dilutive effect of outstanding stock awards | 353 | 353 | — | 353 | ||||||||||||||||||||
Diluted weighted average shares outstanding | 162,643 | 162,643 | 1,108 | 163,751 |
Historical | Historical | |||||||||||||||||||||||
C.H. Robinson | T-Chek Adjustments | Sub-total | Phoenix | Phoenix Adjustments | Pro Forma Combined | |||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||
Transportation | $ | 8,740,524 | $ | — | $ | 8,740,524 | $ | 803,358 | $ | — | $ | 9,543,882 | ||||||||||||
Sourcing | 1,535,528 | — | 1,535,528 | — | — | 1,535,528 | ||||||||||||||||||
Payment Services | 60,294 | (49,260 | ) | 3w | 11,034 | — | — | 11,034 | ||||||||||||||||
Total revenues | 10,336,346 | (49,260 | ) | 10,287,086 | 803,358 | — | 11,090,444 | |||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Purchased transportation and related services | 7,296,608 | — | 7,296,608 | 666,697 | (29,028 | ) | 3q | 7,934,277 | ||||||||||||||||
Purchased products sourced for resale | 1,407,080 | — | 1,407,080 | — | — | 1,407,080 | ||||||||||||||||||
Personnel expenses | 696,233 | (13,829 | ) | 3w | 682,404 | — | (4,060 | ) | 3l | 761,581 | ||||||||||||||
83,237 | 3q | |||||||||||||||||||||||
Other selling, general, and administrative expenses | 243,695 | (10,862 | ) | 3w | 232,833 | 87,071 | 16,265 | 3k | 282,439 | |||||||||||||||
329 | 3o | |||||||||||||||||||||||
150 | 3e | |||||||||||||||||||||||
(54,209 | ) | 3q | ||||||||||||||||||||||
Total costs and expenses | 9,643,616 | (24,691 | ) | 9,618,925 | 753,768 | 12,684 | 10,385,377 | |||||||||||||||||
Income from operations | 692,730 | (24,569 | ) | 668,161 | 49,590 | (12,684 | ) | 705,067 | ||||||||||||||||
Investment and other income (expense) | 1,974 | (25 | ) | 3w | 1,949 | 3,473 | (2,574 | ) | 3m | 3,068 | ||||||||||||||
220 | 3h | |||||||||||||||||||||||
Income before provision for income taxes | 694,704 | (24,594 | ) | 670,110 | 53,063 | (15,038 | ) | 708,135 | ||||||||||||||||
Provision for income taxes | 263,092 | (9,295 | ) | 3x | 253,797 | 15,717 | (1,842 | ) | 3p | 267,672 | ||||||||||||||
Net income | $ | 431,612 | $ | (15,299 | ) | $ | 416,313 | $ | 37,346 | $ | (13,196 | ) | $ | 440,463 | ||||||||||
Basic net income per share | $ | 2.63 | $ | 2.54 | $ | 2.67 | ||||||||||||||||||
Diluted net income per share | $ | 2.62 | $ | 2.53 | $ | 2.66 | ||||||||||||||||||
Basic weighted average shares outstanding | 164,114 | 164,114 | 1,108 | 3n | 165,222 | |||||||||||||||||||
Dilutive effect of outstanding stock awards | 627 | 627 | — | 627 | ||||||||||||||||||||
Diluted weighted average shares outstanding | 164,741 | 164,741 | 1,108 | 165,849 |
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | 12 Months Ended | Quarter Ended | Quarter Ended | 6 Months Ended | ||||||||||||||||||
3/31/2011 | 6/30/2011 | 9/30/2011 | 12/31/2011 | 12/31/2011 | 3/31/2012 | 6/30/2012 | 6/30/2012 | ||||||||||||||||||
REVENUES | $ | 160,141 | $ | 252,061 | $ | 197,198 | $ | 193,958 | $ | 803,358 | $ | 183,200 | $ | 223,408 | $ | 406,608 | |||||||||
COSTS AND EXPENSES: | |||||||||||||||||||||||||
Purchased transportation and related services | 125,844 | 201,528 | 155,596 | 154,701 | 637,669 | 146,319 | 177,369 | 323,688 | |||||||||||||||||
Personnel expenses | 18,794 | 24,630 | 19,798 | 20,015 | 83,237 | 19,681 | 26,499 | 46,180 | |||||||||||||||||
Other selling, general, and administrative expenses | 7,673 | 8,958 | 8,031 | 8,200 | 32,862 | 8,676 | 9,831 | 18,507 | |||||||||||||||||
Total costs and expenses | 152,311 | 235,116 | 183,425 | 182,916 | 753,768 | 174,676 | 213,699 | 388,375 | |||||||||||||||||
Income from operations | $ | 7,830 | $ | 16,945 | $ | 13,773 | $ | 11,042 | $ | 49,590 | $ | 8,524 | $ | 9,709 | $ | 18,233 |
Cash & cash equivalents | $ | 67,525 | |
Receivables, net of allowance for doubtful accounts | 119,716 | ||
Deferred tax asset | 978 | ||
Prepaid expenses and other | 1,275 | ||
Property and equipment, net | 15,824 | ||
Intangible and other assets | 12,895 | ||
Identifiable intangible assets | 130,000 | ||
Goodwill | 437,721 | ||
Total assets | 785,934 | ||
Accounts payable | (37,373 | ) | |
Long-term debt | (87 | ) | |
Accrued expenses | (12,133 | ) | |
Long term liabilities | (59,068 | ) | |
Net assets acquired | $ | 677,273 |
Life (years) | Amount | ||||
Customer relationships | 8 | $ | 129,800 | ||
Noncompete agreements | 5 | 200 | |||
Total identifiable intangible assets | $ | 130,000 |
a. | Represents cash adjustment as follows (in millions): |
Cash paid for acquisition | $ | 571.5 | |
Preliminary Phoenix cash and working capital adjustment | 45.6 | ||
Borrowing from new credit agreement | (173.0 | ) | |
Total | $ | 444.1 |
b. | Stockholders' investment is adjusted to reflect approximately $60.2 million in newly-issued C.H. Robinson common stock, which represents approximately 1.1 million shares ($ .10 par value). |
c. | Represents eliminating goodwill of $5.8 million on the historical, pre-acquisition books of Phoenix and adding $437.7 million reflecting an estimate of the excess of the purchase price paid over the estimated fair value of Phoenix assets and liabilities as of June 30, 2012. |
d. | Represents estimated identifiable intangible assets of $130.0 million reflecting preliminary valuation of customer relationships and noncompete agreements related to the Phoenix business. |
e. | Represents an increase of $4.5 million to reflect the preliminary valuation of estimated fair value of the Phoenix property and equipment and is expected to be depreciated over a weighted average life of approximately 30 years. Adjustment to other selling, general and administrative expenses of $0.1 million for the six months ended June 30, 2012 and $0.2 million for the year ended December 31, 2011 reflects additional depreciation. |
f. | Represents estimated transaction costs of $8.0 million for one-time investment banking, legal, and professional fees as a result of the acquisition for C.H. Robinson. Certain costs are presented net of tax as they are believed to be deductible. Additionally, these estimated costs are not reflected in the pro-forma condensed combined statement of operations as they are nonrecurring charges. |
g. | Represents the elimination of the Phoenix equity accounts and certain long-term debt not included in the acquisition. |
h. | Represents the elimination of the Phoenix variable interest entities not included in the acquisition. |
i. | Represents deferred tax liabilities established for book and tax basis differences of the finite-lived intangible assets of $46.8 million and the revaluation of property and equipment of $1.6 million, which are amortizable for book purposes but not for tax. These are off-set by a reversal of deferred taxes associated with Phoenix goodwill of $0.2 million. |
j. | Represents an indemnification asset and related liability resulting from the acquisition of Phoenix in accordance with the purchase agreement. |
k. | Represents estimated amortization expense of $8.1 million for the six months ended June 30, 2012 and $16.3 million for the year ended December 31, 2011 for identifiable intangible assets. |
l. | Represents reduction in personnel expenses for contractual changes in compensation for Phoenix executives, whereas the founder / executive chairman retired and three other executives entered into new employment arrangements with C.H. Robinson as part of the purchase agreement. |
m. | Represents incremental interest expense on borrowings used to complete the acquisition of $1.3 million for the six months ended June 30, 2012 and $2.6 million for the year ended December 31, 2011, using a weighted average rate of 1.25 percent. A one-fourth percentage point increase in the interest rate on variable rate borrowings would increase the pro forma interest adjustment by $0.2 million and $0.4 million, respectively. |
n. | Represents an increase of weighted average shares outstanding based on 1.1 million of newly-issued shares of common stock of C.H. Robinson included as part of purchase price consideration. |
o. | Represents additional rent expense as a result of entering into lease arrangements with entities excluded from the acquisition. |
p. | Represents the pro forma tax effect of the Phoenix acquisition pro forma adjustments based upon the C.H. Robinson historical consolidated effective tax rate. This does not reflect the Phoenix effective tax rate and does not take into account any historical or possible future tax events that may have an impact. |
q. | Represents an adjustment to conform with C.H. Robinson's historical financial reporting presentation of all personnel expenses on a separate line item. |
r. | Represents cash adjustment as follows (in millions): |
T-Chek cash sold at June 30, 2012 | $ | (38.5 | ) |
Cash received from disposition | 302.5 | ||
Total | $ | 264.0 |
s. | Represents the elimination of assets and liabilities transferred to EFS in the disposition of T-Chek as if the T-Chek sale had occurred on June 30, 2012. |
t. | Represents transaction costs for one-time legal and professional fees as a result of the disposition of T-Chek. The costs are not reflected in the pro forma condensed combined statement of operations as they are nonrecurring charges. |
u. | Represents estimated taxes on the gain from disposition of T-Chek based upon the C.H. Robinson historical consolidated effective tax rate. |
v. | Represents estimated gain on the disposition of T-Chek, which is reflective of estimated income taxes to be incurred on the transaction. |
w. | Represents the elimination of the financial results of operations amounts associated with the disposition of T-Chek as if it occurred on January 1, 2011. The remaining Payment Services revenue of $5.8 million and $11.0 million for the six months ended June 30, 2012 and twelve months ended December 31, 2011, respectively, are retained in the pro forma financial statements as we expect to generate payment services revenues from the cash advance option we continue to offer our contracted carriers at a rate of approximately $3.0 million per quarter. |
x. | Represents the pro forma tax effect of the T-Chek disposition pro forma adjustments based upon the C.H. Robinson historical consolidated effective tax rate. |
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