EX-99.1 2 ex991earningsreleaseq42018.htm EXHIBIT 99.1 Exhibit


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C.H. Robinson
14701 Charlson Rd.
Eden Prairie, MN 55347
www.chrobinson.com

 
FOR INQUIRIES, CONTACT:
Robert Houghton, VP of Investor Relations and Treasury


FOR IMMEDIATE RELEASE

C.H. Robinson Reports 2018 Fourth Quarter and Full-Year Results
MINNEAPOLIS, MN, January 29, 2019 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW) today reported financial results for the quarter and fiscal year ended December 31, 2018.
Fourth Quarter Highlights:    
•
Total revenues increased 4.5 percent to $4.1 billion
•
Net revenues increased 13.0 percent to $713.8 million
•
Income from operations increased 21.2 percent to $255.5 million
•
Diluted earnings per share (EPS) increased 24.0 percent to $1.34
•
Cash flow from operations increased 59.4 percent to $264.0 million
Full-Year Highlights:    
•
Total revenues increased 11.8 percent to $16.6 billion
•
Net revenues increased 14.2 percent to $2.7 billion
•
Income from operations increased 17.7 percent to $912.1 million
•
Diluted EPS increased 32.5 percent to $4.73
•
Cash flow from operations increased 106.5 percent to $792.9 million

“We are pleased with our financial results in 2018. We achieved record levels of net revenues and operating income and a 100 basis point increase in operating income margin. Led by our strong operating performance, we more than doubled our cash flow from operations and returned nearly $600 million to shareholders in 2018,” said John Wiehoff, Chairman and Chief Executive Officer of C.H. Robinson. “Our strong 2018 financial results reflect the strength and hard work of our global network.”



1


Fourth Quarter Results Summary

•
Total revenues increased 4.5 percent to $4.1 billion, driven by growth across most transportation service lines.
•
Net revenues increased 13.0 percent to $713.8 million, driven by growth across all transportation service lines.
•
Operating expenses increased 8.9 percent to $458.3 million. Personnel expenses increased 8.9 percent to $339.3 million, driven primarily by higher variable compensation expense and a 1.4 percent increase in average headcount. Selling, general and administrative (“SG&A”) expenses increased 8.8 percent to $119.0 million, due primarily to increases in purchased services, occupancy and travel and entertainment.
•
Income from operations totaled $255.5 million, up 21.2 percent from last year due to growth in North American Surface Transportation (“NAST”), Global Forwarding and Robinson Fresh, partially offset by a decline in All Other and Corporate. Operating margin of 35.8 percent increased 240 basis points.
•
Interest and other expenses decreased by $8.0 million, driven primarily by a $2.4 million favorable impact from currency revaluation in the fourth quarter of 2018, versus a $6.2 million unfavorable impact in the year-ago period. This was partially offset by higher interest expense due to an increase in interest rates.
•
The effective tax rate in the quarter was 23.9 percent compared to 21.1 percent last year. The higher tax rate was driven primarily by one-time tax benefits that totaled $31.8 million in the year-ago period, partially offset by a $28.4 million benefit in the current period from the Tax Cuts and Jobs Act of 2017.
•
Net income totaled $187.2 million, up 22.7 percent from a year ago. Diluted EPS of $1.34 increased 24.0 percent.


Full-Year Results Summary

•
Total revenues increased 11.8 percent to $16.6 billion, driven by growth across all transportation service lines.
•
Net revenues increased 14.2 percent to $2.7 billion, driven by growth across all transportation service lines.
•
Income from operations totaled $912.1 million, up 17.7 percent from last year due primarily to growth in NAST and Robinson Fresh, partially offset by a decline in All Other and Corporate. Operating margin of 33.7 percent increased 100 basis points.
•
The effective tax rate for the full year was 24.5 percent compared to 30.7 percent last year, driven primarily by an $83.1 million benefit from the Tax Cuts and Jobs Act of 2017.
•
Net income totaled $664.5 million, up 31.6 percent from a year ago. Diluted EPS of $4.73 increased 32.5 percent.



2


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

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
% change
 
2018
 
2017
 
% change
Total revenues (1)
 
$
2,774,524

 
$
2,618,587

 
6.0
%
 
$
11,247,900

 
$
9,728,810

 
15.6
%
Net revenues
 
471,394

 
415,315

 
13.5
%
 
1,788,498

 
1,525,064

 
17.3
%
Income from operations
 
211,044

 
180,557

 
16.9
%
 
773,846

 
628,110

 
23.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 


Fourth quarter total revenues for C.H. Robinson's NAST segment totaled $2.8 billion, an increase of 6.0 percent over the prior year, primarily driven by increased pricing. NAST net revenues increased 13.5 percent in the quarter to $471.4 million. Net revenues in truckload increased 13.0 percent, less than truckload (“LTL”) net revenues increased 11.5 percent, and intermodal net revenues increased 76.4 percent versus the year ago period, which included elevated repositioning charges. Excluding the impact of the change in fuel prices, our average North America truckload rate per mile charged to customers increased approximately 1.5 percent in the quarter, while our truckload transportation cost per mile decreased approximately 1 percent. Truckload volume declined 1.5 percent in the quarter. LTL volumes grew 2 percent, and intermodal volumes declined 13 percent versus the prior year. Operating expenses increased 10.9 percent, primarily due to increased variable compensation. Income from operations increased 16.9 percent to $211.0 million, and operating margin expanded 130 basis points to 44.8 percent in the quarter. NAST average headcount was up 1.3 percent in the quarter.


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

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
% change
 
2018
 
2017
 
% change
Total revenues (1)
 
$
677,125

 
$
591,245

 
14.5
%
 
$
2,487,744

 
$
2,140,987

 
16.2
 %
Net revenues
 
142,737

 
127,869

 
11.6
%
 
543,906

 
485,280

 
12.1
 %
Income from operations
 
29,782

 
16,836

 
76.9
%
 
91,626

 
91,842

 
(0.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 



3


Fourth quarter total revenues for the Global Forwarding segment increased 14.5 percent to $677.1 million, driven by improved pricing across all service lines and volume growth in ocean and customs. Net revenues increased 11.6 percent in the quarter to $142.7 million. Ocean net revenues increased 12.4 percent driven by higher volumes and pricing. Net revenues in air increased 9.3 percent, as the air service line benefited from a decreasing cost environment. Customs net revenues increased 12.4 percent, driven by higher volumes and pricing. Operating expenses increased 1.7 percent, primarily driven by higher variable compensation that was partially offset by a 0.4 percent decrease in average headcount. Income from operations increased 76.9 percent to $29.8 million, and operating margin expanded 770 basis points to 20.9 percent in the quarter.


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

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
% change
 
2018
 
2017
 
% change
Total revenues (1)
 
$
531,817

 
$
594,646

 
(10.6
)%
 
$
2,268,900

 
$
2,415,740

 
(6.1
)%
Net revenues
 
64,299

 
54,123

 
18.8
 %
 
234,046

 
226,059

 
3.5
 %
Income from operations
 
19,785

 
12,887

 
53.5
 %
 
59,735

 
53,374

 
11.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 


Fourth quarter total revenues for the Robinson Fresh segment declined 10.6 percent to $531.8 million. Segment net revenues expanded 18.8 percent to $64.3 million in the quarter. Sourcing net revenues decreased 8.2 percent. Case volumes declined 6.5 percent, driven by lower restaurant traffic at our foodservice customers. Transportation net revenues increased 45.9 percent, primarily driven by truckload pricing increases. Robinson Fresh operating expenses increased 7.9 percent, driven by increased variable compensation expense, partially offset by a 5.1 percent reduction in average headcount. Income from operations increased 53.5 percent to $19.8 million, and operating margin expanded 700 basis points to 30.8 percent in the quarter.



4


All Other and Corporate Results

Net revenues for Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
Net revenues
 
2018
 
2017
 
% change
 
2018
 
2017
 
% change
Managed Services
 
$
20,318

 
$
18,322

 
10.9
 %
 
$
78,789

 
$
72,166

 
9.2
%
Other Surface Transportation
 
15,035

 
16,220

 
(7.3
)%
 
59,996

 
59,481

 
0.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 


Fourth quarter Managed Services net revenues increased 10.9 percent to $20.3 million, driven by a combination of selling additional service lines to existing customers and new customer wins. Other Surface Transportation net revenues decreased 7.3 percent to $15.0 million, driven by pricing declines in Europe.


Other Income Statement Items
The fourth quarter effective tax rate was 23.9 percent, up from 21.1 percent last year. The higher tax rate was driven primarily by one-time tax benefits that totaled $31.8 million in the year-ago period and was partially offset by a $28.4 million benefit in the current period from the Tax Cuts and Jobs Act of 2017. We expect our full-year effective tax rate to be between 24 and 25 percent in 2019.
Due to the adoption of ASU 2014-09 (“Revenue from Contracts with Customers”), in-transit shipments are now included in our financial results as of January 1, 2018. This new policy did not have a material impact on our overall operating results for the full year.
Interest and other expenses decreased by $8.0 million in the quarter driven primarily by a $2.4 million favorable impact from currency revaluation in the fourth quarter of 2018, versus a $6.2 million unfavorable impact in the year-ago period. This was partially offset by higher interest expense due to an increase in interest rates.
Diluted weighted average shares outstanding in the quarter were down 1.1 percent, as share repurchases were partially offset by activity in our equity compensation plans.



5


Cash Flow Generation and Capital Distribution
Fourth quarter cash from operations totaled $264.0 million, up 59.4 percent versus the prior year, primarily due to increased earnings and improved working capital performance versus the year-ago period.
In the fourth quarter, $168.4 million was returned to shareholders, with $70.0 million in cash dividends and $98.4 million in share repurchases. This represents an increase of 42.4 percent over the prior year.
Capital expenditures totaled $14.3 million in the quarter. We expect 2019 capital expenditures to be between $80 and $90 million, with the majority dedicated to technology.


Outlook
“As we turn to 2019, we are remain focused on top-line growth and operating margin expansion and believe our continued investments in technology will help enable us to achieve these objectives,” said John Wiehoff. “We are also committed to strong cash returns to shareholders.”
John added, “A critical part of our strategy is to make investments that add value for our customers and carriers and drive growth for our business, regardless of where we are in the freight cycle. I remain as confident as ever that we have the right people, processes and technology to continue to win in the marketplace.”



6


About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 124,000 customers and 76,000 active contract carriers through our integrated network of offices and more than 15,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded since 1997. For more information, visit www.chrobinson.com.

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; economic recessions; changes in market demand and pressures on the pricing for our services; fuel prices and availability; changes in the availability of equipment and services from third party providers, including the availability of contracted truckload carriers and changes in prices; changes in political and governmental conditions domestically and internationally; catastrophic events such as environmental events or terrorist attacks; failure to retain employees; failure of any of our technology or operating systems, including due to data security breaches or hacking; competition and growth rates within the third party logistics industry; risks associated with our decentralized operations; seasonality in the transportation industry; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the produce industry, including food safety and contamination issues; risk of unexpected or unanticipated events or opportunities that might require additional capital expenditures; our dependence on our largest customers; risks associated with identifying suitable acquisitions and investments and with integrating acquired companies; risks associated with our long-term growth and profitability; 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 Fourth Quarter 2018 Earnings Conference Call
Wednesday, January 30, 2019; 8:30 a.m. Eastern Time
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756
International callers dial +1-201-689-7817
Callers should reference the conference ID, which is 13685936

We invite call participants to submit questions in advance of the conference call, and we will respond to as many of the questions as we can in the time allowed. To submit your question(s) in advance of the call, please email adrienne.brausen@chrobinson.com.





7


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

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2018
 
2017
 
% change
 
2018
 
2017
 
% change
Total revenues
 
$
4,137,908

 
$
3,959,786

 
4.5
 %
 
$
16,631,172

 
$
14,869,380

 
11.8
 %
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
 
  Transportation
 
 
 
 
 
 
 
 
 
 
 
 
     Truckload
 
$
395,611

 
$
342,134

 
15.6
 %
 
$
1,445,916

 
$
1,229,999

 
17.6
 %
     LTL
 
117,326

 
105,306

 
11.4
 %
 
471,275

 
407,012

 
15.8
 %
     Intermodal
 
8,595

 
5,867

 
46.5
 %
 
32,469

 
29,145

 
11.4
 %
     Ocean
 
82,234

 
73,135

 
12.4
 %
 
312,952

 
290,630

 
7.7
 %
     Air
 
30,761

 
27,595

 
11.5
 %
 
120,540

 
100,761

 
19.6
 %
     Customs
 
23,761

 
21,142

 
12.4
 %
 
88,515

 
70,952

 
24.8
 %
     Other logistics services
 
30,603

 
29,554

 
3.5
 %
 
122,077

 
117,117

 
4.2
 %
     Total transportation
 
688,891

 
604,733

 
13.9
 %
 
2,593,744

 
2,245,616

 
15.5
 %
  Sourcing
 
24,892

 
27,116

 
(8.2
)%
 
111,491

 
122,434

 
(8.9
)%
Total net revenues
 
713,783

 
631,849

 
13.0
 %
 
2,705,235

 
2,368,050

 
14.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
458,266

 
420,973

 
8.9
 %
 
1,793,152

 
1,592,931

 
12.6
 %
Income from operations
 
255,517

 
210,876

 
21.2
 %
 
912,083

 
775,119

 
17.7
 %
Net income
 
$
187,150

 
$
152,556

 
22.7
 %
 
$
664,505

 
$
504,893

 
31.6
 %
Diluted EPS
 
$
1.34


$
1.08

 
24.0
 %
 
$
4.73

 
$
3.57

 
32.5
 %


This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the service line net revenues discussed within the segments as our segments have revenues from multiple service lines.




8


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

 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
 
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 Transportation
 
$
3,896,750

 
$
3,647,167

 
$
15,515,921

 
$
13,502,906

 Sourcing
 
241,158

 
312,619

 
1,115,251

 
1,366,474

   Total revenues
 
4,137,908

 
3,959,786

 
16,631,172

 
14,869,380

Costs and expenses:
 
 
 
 
 
 
 
 
 Purchased transportation and related services
 
3,207,859

 
3,042,434

 
12,922,177

 
11,257,290

 Purchased products sourced for resale
 
216,266

 
285,503

 
1,003,760

 
1,244,040

 Personnel expenses
 
339,316

 
311,599

 
1,343,542

 
1,179,527

 Other selling, general, and administrative expenses
 
118,950

 
109,374

 
449,610

 
413,404

   Total costs and expenses
 
3,882,391

 
3,748,910

 
15,719,089

 
14,094,261

Income from operations
 
255,517

 
210,876

 
912,083

 
775,119

Interest and other expense
 
(9,456
)
 
(17,502
)
 
(31,810
)
 
(46,656
)
Income before provision for income taxes
 
246,061

 
193,374

 
880,273

 
728,463

Provisions for income taxes
 
58,911

 
40,818

 
215,768

 
223,570

Net income
 
$
187,150

 
$
152,556

 
$
664,505

 
$
504,893

 
 
 
 
 
 
 
 
 
Net income per share (basic)
 
$
1.36

 
$
1.09

 
$
4.78

 
$
3.59

Net income per share (diluted)
 
$
1.34

 
$
1.08

 
$
4.73

 
$
3.57

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding (basic)
 
137,797

 
139,572

 
139,010

 
140,610

Weighted average shares outstanding (diluted)
 
139,182

 
140,724

 
140,405

 
141,382



9


Business Segment Information
(unaudited, dollars in thousands)

 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,774,524

 
$
677,125

 
$
531,817

 
$
154,442

 
$
—

 
$
4,137,908

Intersegment revenues (1)
 
139,211

 
11,478

 
56,384

 
7,005

 
(214,078
)
 
—

   Total revenues
 
2,913,735

 
688,603

 
588,201

 
161,447

 
(214,078
)
 
4,137,908

Net revenues
 
471,394

 
142,737

 
64,299

 
35,353

 
—

 
713,783

Income from operations
 
211,044

 
29,782

 
19,785

 
(5,094
)
 
—

 
255,517

Depreciation and amortization
 
6,196

 
8,751

 
1,097

 
8,283

 
—

 
24,327

Total assets
 
2,345,455

 
969,736

 
401,561

 
710,660

 
—

 
4,427,412

Average headcount
 
6,964

 
4,664

 
887

 
2,728

 
—

 
15,243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,618,587

 
$
591,245

 
$
594,646

 
$
155,308

 
$
—

 
$
3,959,786

Intersegment revenues (1)
 
133,197

 
6,742

 
51,011

 
4,398

 
(195,348
)
 
—

   Total revenues
 
2,751,784

 
597,987

 
645,657

 
159,706

 
(195,348
)
 
3,959,786

Net revenues
 
415,315

 
127,869

 
54,123

 
34,542

 
—

 
631,849

Income from operations
 
180,557

 
16,836

 
12,887

 
596

 
—

 
210,876

Depreciation and amortization
 
6,126

 
8,734

 
1,196

 
7,581

 
—

 
23,637

Total assets
 
2,277,252

 
821,182

 
434,080

 
703,320

 
—

 
4,235,834

Average headcount
 
6,878

 
4,683

 
935

 
2,540

 
—

 
15,036


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.




10


Business Segment Information
(unaudited, dollars in thousands)

 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Twelve Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
11,247,900

 
$
2,487,744

 
$
2,268,900

 
$
626,628

 
$
—

 
$
16,631,172

Intersegment revenues (1)
 
545,177

 
48,343

 
211,286

 
20,951

 
(825,757
)
 
—

   Total revenues
 
11,793,077

 
2,536,087

 
2,480,186

 
647,579

 
(825,757
)
 
16,631,172

Net revenues
 
1,788,498

 
543,906

 
234,046

 
138,785

 
—

 
2,705,235

Income from operations
 
773,846

 
91,626

 
59,735

 
(13,124
)
 
—

 
912,083

Depreciation and amortization
 
24,510

 
35,148

 
4,506

 
32,565

 
—

 
96,729

Total assets
 
2,345,455

 
969,736

 
401,561

 
710,660

 
—

 
4,427,412

Average headcount
 
6,938

 
4,711

 
903

 
2,652

 
—

 
15,204

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Twelve Months Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
9,728,810

 
$
2,140,987

 
$
2,415,740

 
$
583,843

 
$
—

 
$
14,869,380

Intersegment revenues (1)
 
462,390

 
30,198

 
167,292

 
18,174

 
(678,054
)
 
—

   Total revenues
 
10,191,200

 
2,171,185

 
2,583,032

 
602,017

 
(678,054
)
 
14,869,380

Net revenues
 
1,525,064

 
485,280

 
226,059

 
131,647

 
—

 
2,368,050

Income from operations
 
628,110

 
91,842

 
53,374

 
1,793

 
—

 
775,119

Depreciation and amortization
 
23,230

 
33,308

 
4,730

 
31,709

 
—

 
92,977

Total assets
 
2,277,252

 
821,182

 
434,080

 
703,320

 
—

 
4,235,834

Average headcount
 
6,907

 
4,310

 
957

 
2,513

 
—

 
14,687


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.







11


Condensed Consolidated Balance Sheets
(unaudited, in thousands)


 
December 31, 2018
 
December 31, 2017
Assets
 
 
 
   Current assets:
 
 
 
     Cash and cash equivalents
$
378,615

 
$
333,890

     Receivables, net
2,162,438

 
2,113,930

     Contract assets
159,635

 
—

     Other current assets
52,386

 
63,116

        Total current assets
2,753,074

 
2,510,936

 
 
 
 
  Property and equipment, net
228,301

 
230,326

  Intangible and other assets
1,446,037

 
1,494,572

Total assets
$
4,427,412

 
$
4,235,834

 
 
 
 
Liabilities and stockholders’ investment
 
 
 
  Current liabilities:
 
 
 
     Accounts payable and outstanding checks
$
1,063,107

 
$
1,096,664

     Accrued expenses:
 
 
 
        Compensation
153,626

 
105,316

        Transportation expense
119,820

 
—

        Income taxes
28,360

 
12,240

        Other accrued liabilities
63,410

 
58,229

     Current portion of debt
5,000

 
715,000

        Total current liabilities
1,433,323

 
1,987,449

 
 
 
 
Long term debt
1,341,352

 
750,000

Noncurrent income taxes payable
21,463

 
26,684

Deferred tax liability
35,757

 
45,355

  Other long-term liabilities
430

 
601

Total liabilities
2,832,325

 
2,810,089

 
 
 
 
Total stockholders’ investment
1,595,087

 
1,425,745

Total liabilities and stockholders’ investment
$
4,427,412

 
$
4,235,834



12


Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)
 
Twelve Months Ended December 31,
 
2018
 
2017
Operating activities:
 
 
 
  Net income
$
664,505

 
$
504,893

  Depreciation and amortization
96,729

 
92,977

  Provision for doubtful accounts
15,634

 
13,489

  Stock-based compensation
87,791

 
41,805

  Deferred income taxes
(15,315
)
 
(28,096
)
  Excess tax benefit on stock-based compensation
(10,388
)
 
(13,657
)
  Other
1,815

 
4,491

Changes in operating elements, net of acquisitions:
 
 
 
  Receivables
(190,048
)
 
(364,181
)
  Contract assets
(11,871
)
 
—

  Prepaid expenses and other
16,029

 
(9,173
)
  Other non-current assets and liabilities
1,370

 
(19,099
)
  Accounts payable and outstanding checks
36,083

 
144,041

  Accrued compensation
47,011

 
7,209

  Accrued transportation expenses
25,175

 
—

  Accrued income taxes
21,176

 
18,817

  Other accrued liabilities
7,200

 
(9,515
)
      Net cash provided by operating activities
792,896

 
384,001

 
 
 
 
Investing activities:
 
 
 
  Purchases of property and equipment
(45,000
)
 
(40,122
)
  Purchases and development of software
(18,871
)
 
(17,823
)
  Acquisitions, net of cash acquired
(5,315
)
 
(49,068
)
  Other
(3,622
)
 
(521
)
       Net cash used for investing activities
(72,808
)
 
(107,534
)
 
 
 
 
Financing activities:
 
 
 
  Proceeds from stock issued for employee benefit plans
51,285

 
38,130

  Net repurchases of common stock
(322,255
)
 
(207,042
)
  Cash dividends
(265,219
)
 
(258,222
)
  Proceeds from long-term borrowings
591,012

 
250,000

  Proceeds from short-term borrowings
2,674,000

 
8,784,000

  Payments on short-term borrowings
(3,384,000
)
 
(8,809,000
)
      Net cash used for financing activities
(655,177
)
 
(202,134
)
Effect of exchange rates on cash
(20,186
)
 
11,891

 
 
 
 
      Net change in cash and cash equivalents
44,725

 
86,224

Cash and cash equivalents, beginning of period
333,890

 
247,666

Cash and cash equivalents, end of period
$
378,615

 
$
333,890

 
 
 
 
 
As of December 31,
Operational Data:
2018
 
2017
  Employees
15,262

 
15,074


Source: C.H. Robinson
CHRW-IR

13