EX-99.1 3 dex991.htm PRESS RELEASE DATED APRIL 5, 2004 Press Release dated April 5, 2004

Exhibit 99.1

 

C.H. Robinson Worldwide, Inc.

8100 Mitchell Road, Suite 200

Eden Prairie, Minnesota 55344

 

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

Angie Freeman, investor relations (952) 937-7847

 

FOR IMMEDIATE RELEASE

 

C.H. ROBINSON ANNOUNCES IT WILL EXPENSE STOCK OPTIONS

 

MINNEAPOLIS, April 5, 2004 — C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ:CHRW), today reported that it has adopted the fair value recognition method of accounting as provided in Financial Accounting Standards Board SFAS No. 123, rather than the intrinsic value method as previously used, effective for 2004. With the adoption of the SFAS 123 fair value method, C.H. Robinson will expense its stock options and the discount granted to employees on C.H. Robinson shares purchased through the company’s employee stock purchase program. C.H. Robinson will retroactively apply this provision to its financial information for prior periods in order to provide investors with comparable results in the current and coming years.

 

The income statement impact of this adoption was discussed in Note 1 of the Notes to Consolidated Financial Statements included in C.H. Robinson’s Annual Report on Form 10-K filed on March 15, 2004. The adoption results in an increase to personnel expenses of $7.5 million in 2003 and $7.6 million in 2002, and a decrease to diluted earnings per share of $0.08 in 2003 and $0.07 in 2002. C.H. Robinson expects the impact for 2004 to be approximately the same as 2003, with the personnel expense impacts in future years declining by approximately $2.0 million per year until 2008 when all existing option grants have fully vested.

 

“We have recently switched our primary equity incentives for employees to restricted stock grants which vest based on company performance. We believe that restricted stock will better align our employees’ interests with those of our shareholders,” said Chad M. Lindbloom, vice president and chief financial officer of C.H. Robinson. “With the move to restricted stock, we believe retroactively adopting the fair value provisions of SFAS 123 will provide the most meaningful comparisons of our results.”

 

Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest third-party logistics companies in North America. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, serving 16,000 customers through a network of 159 offices in North America, South America, Europe and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America through contracts with more than 25,000 motor carriers, and is one of the largest third-party providers of intermodal services in the United States.

 

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

 

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C. H. Robinson Worldwide, Inc.

April 5, 2004

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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 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; the impact of new Hours of Service regulations adopted by the United States Department of Transportation Federal Motor Carrier Safety Administration; 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.; changing economic conditions such as general economic slowdown, decreased consumer confidence, fuel shortages and the impact of war on the economy; and other risk and uncertainties detailed under “Cautionary Statement” in Exhibit 99.1 to C.H. Robinson’s Annual Report on Form 10-K filed on March 15, 2004.

 

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C. H. Robinson Worldwide, Inc.

April 5, 2004

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C. H. ROBINSON WORLDWIDE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT — Restated

(unaudited)

(In thousands, except per share data)

 

     Quarters Ended 2003,

     March

   June

   September

   December

   YTD

Gross profits

   $ 133,091    $ 136,025    $ 135,821    $ 139,911    $ 544,848

Personnel expenses

     69,192      69,629      69,178      71,009      279,008

Other selling, general and administrative expenses

     22,412      22,126      21,755      23,501      89,794
    

  

  

  

  

Total selling, general and administrative expenses

     91,604      91,755      90,933      94,510      368,802
    

  

  

  

  

Income from operations

     41,487      44,270      44,888      45,401      176,046

Total investment and other income

     344      1,050      344      850      2,588
    

  

  

  

  

Income before provision for income taxes

     41,831      45,320      45,232      46,251      178,634
    

  

  

  

  

Provision for income taxes

     16,691      18,099      18,020      18,455      71,265
    

  

  

  

  

Net income

   $ 25,140    $ 27,221    $ 27,212    $ 27,796    $ 107,369

Diluted weighted average shares outstanding

     85,623      86,126      86,228      86,299      86,069

Diluted net income per share

   $ 0.29    $ 0.32    $ 0.32    $ 0.32    $ 1.25
     Quarters Ended 2002,

     March

   June

   September

   December

   YTD

Gross profits

   $ 113,597    $ 121,570    $ 123,084    $ 125,527    $ 483,778

Personnel expenses

     60,769      60,563      61,189      61,800      244,321

Other selling, general and administrative expenses

     20,873      21,965      21,486      26,201      90,525
    

  

  

  

  

Total selling, general and administrative expenses

     81,642      82,528      82,675      88,001      334,846
    

  

  

  

  

Income from operations

     31,955      39,042      40,409      37,526      148,932

Total investment and other income

     328      352      180      474      1,334
    

  

  

  

  

Income before provision for income taxes

     32,283      39,394      40,589      38,000      150,266

Provision for income taxes

     12,990      15,844      16,382      15,252      60,468
    

  

  

  

  

Net income

   $ 19,293    $ 23,550    $ 24,207    $ 22,748    $ 89,798

Diluted weighted average shares outstanding

     85,978      85,980      85,500      85,569      85,757

Diluted net income per share

   $ 0.22    $ 0.27    $ 0.28    $ 0.27    $ 1.05

 

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