EX-99.1 2 rrd273171_31782.htm PRESS RELEASE DATED APRIL 21, 2010, OF C.H. ROBINSON WORLDWIDE, INC. 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 FIRST QUARTER RESULTS

MINNEAPOLIS, April 21, 2010 - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ: CHRW), today reported financial results for the quarter ended March 31, 2010.

Summarized financial results for the quarter ended March 31 are as follows (dollars in thousands, except per share data):

Three months ended

March 31,

2010

 

 

2009

 

%

change

Total revenues

$ 2,074,617

$ 1,688,000

22.9%

Net revenues:

Transportation

Truck

241,665

256,359

-5.7%

Intermodal

8,496

9,801

-13.3%

Ocean

12,522

14,227

-12.0%

Air

8,835

7,337

20.4%

Other logistics services

13,419

9,970

34.6%

Total transportation

284,937

297,694

-4.3%

Sourcing

34,938

30,569

14.3%

Information services

12,726

10,340

23.1%

Total net revenues

332,601

338,603

-1.8%

Operating expenses

196,594

201,235

 

 

-2.3%

Operating income

136,007

137,368

-1.0%

Net income

$ 84,012

$ 85,383

-1.6%

Diluted EPS

$ 0.50

$ 0.50

0.0%

 

Our Transportation revenue increased 24.3 percent in the first quarter of 2010. Transportation net revenues decreased 4.3 percent to $284.9 million in the first quarter of 2010 from $297.7 million in the first quarter of 2009. Our Transportation net revenue margin decreased to 17.4 percent in 2010 from 22.6 percent in 2009.

Our truck net revenues, which consist of truckload and less-than-truckload ("LTL") services, decreased 5.7 percent in the first quarter of 2010. Our truckload volumes increased 22 percent in the first quarter of 2010 compared to the first quarter of 2009. Our truckload net revenue margins decreased due to higher transportation costs, higher fuel prices, and lower pricing to our customers, exclusive of the impact of fuel. Excluding the estimated impacts of the change in fuel, our truckload pricing to our customers decreased approximately three percent in the first quarter of 2010 compared to the first quarter of 2009. Our truckload transportation costs increased approximately three percent, excluding the estimated impacts of fuel. Our LTL net revenues increased approximately 20 percent. The increase was driven by an increase in total shipments of approximately 40 percent, partially offset by decreased net revenue margin and lower revenue per shipment. Our revenue per shipment declined due to price declines, including lower average weight per shipment.

Our intermodal net revenue decrease of 13.3 percent in the first quarter of 2010 was driven by the higher cost of transportation services, partially offset by increased volume.

Our ocean transportation net revenues decreased 12.0 percent in the first quarter of 2010 driven by decreased pricing, partially offset by volume increases. Excluding our previously announced acquisition of Walker Logistics Overseas Ltd. ("Walker") on June 12, 2009, our ocean transportation net revenues declined approximately 16 percent.

Our air transportation net revenue increased 20.4 percent in the first quarter of 2010. Excluding the Walker acquisition, our air transportation net revenues increased approximately 10 percent.

Other logistics services net revenues consist primarily of transportation management fees and customs brokerage fees. The increase of 34.6 percent was driven by an increase in management fees as well as the previously announced acquisition of International Trade & Commerce, Inc. ("ITC") on July 7, 2009. Excluding the acquisition of ITC, our other logistics services net revenues increased approximately 20 percent in the first quarter of 2010.

For the first quarter, our Sourcing revenues increased 17.7 percent due to the previously announced acquisition of Rosemont Farms, Inc. ("Rosemont") on September 15, 2009 and volume growth. Sourcing net revenues increased 14.3 percent to $34.9 million in 2010 from $30.6 million in 2009. Excluding the Rosemont acquisition, Sourcing net revenues decreased approximately three percent in the first quarter of 2010, due to a decrease in net revenue per case, offset partially by increased volumes.

Our Information Services revenues increased 23.1 percent in the first quarter of 2010 due to an increase in transactions and increases in some fees that are impacted by fuel prices.

For the first quarter, operating expenses decreased 2.3 percent to $196.6 million in 2010 from $201.2 million in 2009. This was due to a decrease of 4.2 percent in personnel expense. Our average headcount during the first quarter of 2010 was 4.8 percent lower than the first quarter of 2009. For the quarter, other selling, general, and administrative expenses increased 3.8 percent. As a percentage of net revenues, total operating expenses decreased slightly to 59.1 percent in the first quarter of 2010 from 59.4 percent in the first quarter of 2009.

"We are very encouraged by our volume growth in transportation," said John P. Wiehoff, chairman and chief executive officer. "While we have many ways to measure our success, shipment volume, market share, and the scope and strength of our relationships have always been some of the most critical metrics of our long-term performance. Those metrics all look positive to us for the first quarter of 2010."

Wiehoff continued, "Net revenue margin fluctuations are a part of our business model that we believe we are very capable of managing, but are difficult to predict and can have a significant impact on our results in the short term. The trends of margin compression and strong volume growth during the first quarter of 2010 have continued into the first three weeks of April, with our total net revenue activity approximating that of the first quarter."

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 35,000 customers through a network of 235 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 47,000 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 First Quarter 2010 Earnings Conference Call

Wednesday, April 21, 2010 10:00 a.m. Eastern time

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

Telephone access: 877-941-0843; conference ID 4282239

Webcast replay available through Investor Relations link at www.chrobinson.com

Telephone audio replay available until 12:59 a.m. Eastern Time on April 24, 2010:800-406-7325;

passcode: 4282239#

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

Three months ended

March 31,

2010

2009

Revenues:

Transportation

$1,639,236

$ 1,318,526

Sourcing

422,655

359,134

Information Services

12,726

10,340

Total revenues

2,074,617

1,688,000

Costs and expenses:

Purchased transportation and related services

1,354,299

1,020,832

Purchased products sourced for resale

387,717

328,565

Personnel expenses

146,755

153,223

Other selling, general, and administrative expenses

49,839

48,012

Total costs and expenses

1,938,610

1,550,632

Income from operations

136,007

137,368

Investment and other income

474

490

Income before provision for income taxes

136,481

137,858

Provision for income taxes

52,469

52,475

Net income

$ 84,012

$ 85,383

Net income per share (basic)

$ 0.51

$ 0.50

Net income per share (diluted)

$ 0.50

$ 0.50

Weighted average shares outstanding (basic)

165,440

169,140

Weighted average shares outstanding (diluted)

166,575

170,825

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

March 31,

2010

December 31,

2009

Assets

Current assets:

Cash and cash equivalents

$ 229,645

$ 337,308

Available-for-sale securities

52,716

48,310

Receivables, net

1,002,807

885,543

Other current assets

38,270

36,108

Total current assets

1,323,438

1,307,269

Property and equipment, net

115,543

117,699

Intangible and other assets

403,226

409,280

Total Assets

$ 1,842,207

$ 1,834,248

Liabilities and stockholders' investment

Current liabilities:

Accounts payable and outstanding checks

$ 643,235

$ 606,514

Accrued compensation

37,254

90,855

Other accrued expenses

75,571

34,438

Total current liabilities

756,060

731,807

Long term liabilities

23,052

22,541

Total liabilities

779,112

754,348

Total stockholders' investment

1,063,095

1,079,900

Total liabilities and stockholders' investment

$ 1,842,207

$ 1,834,248

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands, except operational data)

Three months ended

March 31,

2010

2009

Operating activities:

Net income

$ 84,012

$ 85,383

Stock-based compensation

4,664

5,627

Depreciation and amortization

7,559

7,481

Provision for doubtful accounts

2,637

3,858

Other non-cash change, net

3,111

(1,258)

Net changes in operating elements

(98,058)

(42,408)

Net cash provided by operating activities

3,925

58,683

Investing activities:

Net property additions

(4,368)

(11,613)

Purchases of available-for-sale securities

(8,541)

-

Sales/maturities of available-for-sale securities

6,481

750

Other assets

(25)

-

Net cash used for investing activities

(6,453)

(10,863)

Financing activities:

Net repurchases of common stock

(62,847)

(49,278)

Excess tax benefit from stock-based compensation plans

2,391

1,983

Cash dividends

(42,409)

(39,573)

Net cash used for financing activities

(102,865)

(86,868)

Effect of exchange rates on cash

(2,270)

(5,995)

Net change in cash and cash equivalents

(107,663)

(45,043)

Cash and cash equivalents, beginning of period

337,308

494,743

Cash and cash equivalents, end of period

$229,645

$ 449,700

As of March 31,

2010

2009

Operational Data:

Employees

7,350

7,481

Branches

235

231

 

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