EX-99.1 2 rrd248824_29051.htm PRESS RELEASE DATED JULY 21, 2009. C

 

 

C.H. Robinson Worldwide, Inc.

14701 Charlson Road

Eden Prairie, Minnesota 55347

Chad Lindbloom, senior vice president and chief financial officer (952) 937-7779

Angie Freeman, vice president, investor relations and public affairs (952) 937-7847

FOR IMMEDIATE RELEASE

C.H. ROBINSON REPORTS SECOND QUARTER RESULTS

MINNEAPOLIS, July 21, 2009 - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2009.

Summarized financial results for the quarter ended June 30 are as follows (dollars in thousands, except per share data):

Three months ended June 30,

Six months ended June 30,

2009

2008

% change

2009

2008

% change

Total revenues

$ 1,926,020

$ 2,321,706

-17.0%

$3,614,020

$4,306,918

-16.1%

Net revenues:

Transportation

Truck

$ 266,226

$ 252,204

5.6%

$ 522,585

$ 511,527

2.2%

Intermodal

8,457

10,700

-21.0%

18,258

19,878

-8.1%

Ocean

12,947

14,034

-7.7%

27,174

26,289

3.4%

Air

7,748

9,711

-20.2%

15,085

17,761

-15.1%

Miscellaneous

10,845

10,833

0.1%

20,815

20,700

0.6%

Total transportation

306,223

297,482

2.9%

603,917

596,155

1.3%

Sourcing

34,048

30,285

12.4%

64,617

57,338

12.7%

Information services

11,433

13,419

-14.8%

21,773

25,722

-15.4%

Total net revenues

$ 351,704

$ 341,186

3.1%

$ 690,307

$ 679,215

1.6%

Operating expenses

201,820

196,680

2.6%

403,055

398,632

1.1%

Operating income

$ 149,884

$ 144,506

3.7%

$ 287,252

$ 280,583

2.4%

Net income

$ 92,253

$ 90,418

2.0%

$ 177,636

$ 176,736

0.5%

Diluted EPS

$ 0.54

$ 0.52

3.8%

$ 1.04

$ 1.02

2.0%

Our consolidated total revenues decreased 17.0 percent in the second quarter of 2009 compared to the second quarter of 2008. Our Transportation revenue decline of 22.8 percent in the second quarter of 2009 was driven by falling transportation rates and volume declines in many of our transportation modes. Due primarily to a reduction in fuel prices compared to the prior year, transportation rates declined. We also reduced prices to our customers. A significant decline in overall transportation market demand due to the economic recession negatively impacted our volumes.

Our Sourcing revenues increased 12.1 percent in the second quarter of 2009 primarily due to volume growth. Our Information Services revenues decreased 14.8 percent in the second quarter of 2009. The decrease was driven by declines in transactions and lower fuel prices.

Total Transportation net revenues increased 2.9 percent to $306.2 million in the second quarter of 2009 from $297.5 million in the second quarter of 2008. Our Transportation net revenue margin increased to 20.6 percent in 2009 from 15.4 percent in 2008 largely driven by a decline in fuel prices and a lower cost of capacity.

Our truck net revenues, which consist of truckload and less-than-truckload ("LTL") services, increased 5.6 percent in the second quarter of 2009. Our truckload volumes decreased approximately 5 percent. Our truckload net revenue margins increased due to lower fuel prices and lower cost of capacity. Excluding the estimated impacts of fuel, on average our truckload rates decreased approximately 5 percent in the second quarter of 2009. Our LTL net revenues decreased slightly. The decrease was driven by price declines, partially offset by volume increases. Our LTL net revenue margin was relatively consistent with the second quarter of 2008.

Our intermodal net revenue decrease of 21.0 percent in the second quarter was driven largely by price declines, combined with slight volume decreases. Net revenue margin was relatively consistent with the second quarter of 2008.

Our ocean transportation net revenues decreased 7.7 percent in the second quarter of 2009 driven by decreased volumes, partially offset by margin expansion. Excluding our previously announced acquisition of Transera International Holdings Ltd. ("Transera") on August 1, 2008 and Walker Logistics Overseas Ltd. ("Walker") on June 12, 2009, our ocean transportation net revenues would have declined approximately 23 percent. Our ocean net revenue margins increased due to lower cost of capacity.

Our air transportation net revenue decrease of 20.2 percent in the second quarter of 2009 was driven by decreased volumes, partially offset by the impact of the acquisitions of Transera and Walker, and increased net revenue margins. Excluding acquisitions, our air transportation net revenues decreased approximately 26.5 percent.

For the second quarter, Sourcing net revenues increased 12.4 percent to $34.0 million in 2009 from $30.3 million in 2008. This increase was driven primarily by volume growth.

Our Information Services net revenues decreased 14.8 percent in the second quarter of 2009. The decrease was driven by declines in transactions. Lower fuel prices also impacted our growth, as some of our merchant fees are based on a percentage of the total sale amount.

For the second quarter, operating expenses increased 2.6 percent to $201.8 million in 2009 from $196.7 million in 2008. This was due to an increase of 3.6 percent in personnel expenses and a decrease of 0.2 percent in selling, general, and administrative expenses.

As a percentage of net revenues, total operating expenses decreased slightly to 57.4 percent in the second quarter of 2009 from 57.6 percent in the second quarter of 2008. This decrease was due to a decrease in our selling, general, and administrative expenses as a percentage of net revenues from 14.7 percent in 2008 to 14.2 percent in 2009. 

As previously announced, on June 12, 2009 we acquired Walker Logistics Overseas, Ltd. Walker is a global freight forwarding company specializing in air and ocean freight, warehousing, courier, and logistics solutions. Walker is headquartered in the United Kingdom and has approximately 75 employees. On July 7, 2009, we acquired certain assets of International Trade & Commerce, Inc. ("ITC"). ITC is a United States customs brokerage company specializing in warehousing and distribution and cross-border services between the United States and Mexico. ITC is headquartered in Laredo, Texas and has approximately 40 employees and staff.

Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 32,000 customers through a network of 233 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 50,000 transportation providers worldwide.

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 such as the current recession and decreased consumer confidence, changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

 

 

 

 

 

Conference Call Information:

C.H. Robinson Worldwide Second Quarter 2009 Earnings Conference Call

Tuesday, July 21, 2009 5:00 p.m. Eastern time

Live webcast available through Investor Relations link at www.chrobinson.com

Telephone access: 877-941-2333; conference ID 4099798

Webcast replay available through August 4, 2008; Investor Relations link at www.chrobinson.com

Telephone audio replay available until 12:59 a.m. Eastern Time on July 24, 2009: 800-406-7325;

passcode: 4099798#

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

Three months ended

June 30,

Six months ended

June 30,

2009

2008

2009

2008

Revenues:

Transportation

$1,487,577

$ 1,927,354

$2,806,103

$ 3,568,966

Sourcing

427,010

380,933

786,144

712,230

Information Services

11,433

13,419

21,773

25,722

Total revenues

1,926,020

2,321,706

3,614,020

4,306,918

Costs and expenses:

Purchased transportation and related services

1,181,354

1,629,872

2,202,186

2,972,811

Purchased products sourced for resale

392,962

350,648

721,527

654,892

Personnel expenses

151,743

146,521

304,966

300,275

Other selling, general, and administrative expenses

50,077

50,159

98,089

98,357

Total costs and expenses

1,776,136

2,177,200

3,326,768

4,026,335

Income from operations

149,884

144,506

287,252

280,583

Investment and other income

729

1,709

1,219

4,183

Income before provision for income taxes

150,613

146,215

288,471

284,766

Provision for income taxes

58,360

55,797

110,835

108,030

Net income

$ 92,253

$ 90,418

$ 177,636

$ 176,736

Net income per share (basic)

$ 0.55

$ 0.53

$ 1.05

$ 1.04

Net income per share (diluted)

$ 0.54

$ 0.52

$ 1.04

$ 1.02

Weighted average shares outstanding (basic)

167,972

169,731

168,422

169,794

Weighted average shares outstanding (diluted)

169,584

173,483

170,089

173,747

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

June 30,

2009

December 31,

2008

Assets

Current assets:

Cash and cash equivalents

$ 356,871

$ 494,743

Available-for-sale securities

592

2,644

Receivables, net

920,686

828,884

Other current assets

38,726

21,600

Total current assets

1,316,875

1,347,871

Property and equipment, net

111,795

104,088

Intangible and other assets

375,001

363,762

Total Assets

$ 1,803,671

$ 1,815,721

Liabilities and stockholders' investment

Current liabilities:

Accounts payable and outstanding checks

$ 595,440

$ 568,758

Accrued compensation

59,179

93,431

Other accrued expenses

35,434

35,464

Total current liabilities

690,053

697,653

Long term liabilities

12,309

10,847

Total liabilities

702,362

708,500

Total stockholders' investment

1,101,309

1,107,221

Total liabilities and stockholders' investment

$ 1,803,671

$ 1,815,721

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands, except operational data)

Six months ended

June 30,

2009

2008

Operating activities:

Net income

$ 177,636

$ 176,736

Stock-based compensation

11,667

12,596

Depreciation and amortization

14,654

15,370

Provision for doubtful accounts

9,908

5,658

Other non-cash expenses, net

(4,671)

5,559

Net changes in operating elements

(122,857)

(152,734)

Net cash provided by operating activities

86,337

63,185

Investing activities:

Net property additions

(20,025)

(11,053)

Purchases of available-for-sale securities

-

(110,317)

Sales/maturities of available-for-sale securities

2,146

187,777

Cash paid for acquisition, net

(12,412)

(9,915)

Other assets, net

39

651

Net cash (used for) provided by investing activities

(30,252)

57,143

Financing activities:

Net repurchases of common stock

(113,811)

(78,348)

Excess tax benefit from stock-based compensation plans

4,226

8,506

Cash dividends

(80,848)

(75,803)

Net cash used for financing activities

(190,433)

(145,645)

Effect of exchange rates on cash

(3,524)

5,145

Net change in cash and cash equivalents

(137,872)

(20,172)

Cash and cash equivalents, beginning of period

494,743

338,885

Cash and cash equivalents, end of period

$ 356,871

$ 318,713

As of June 30,

2009

2008

Operational Data:

Employees

7,312

7,793

Branches

233

221

 

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