EX-99.1 2 d337153dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

C.H. Robinson Worldwide, Inc.

14701 Charlson Road

Eden Prairie, Minnesota 55347

Andrew Clarke, Chief Financial Officer (952) 683-3474

Tim Gagnon, Director, Investor Relations (952) 683-5007

FOR IMMEDIATE RELEASE

C.H. ROBINSON REPORTS FOURTH QUARTER RESULTS

MINNEAPOLIS, January 31, 2017 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended December 31, 2016. 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 segment service line net revenues discussed below as our segments have revenues from multiple service lines. Summarized financial results are set forth in the following table (dollars in thousands, except per share data).

 

     Three months ended December 31,     Twelve months ended December 31,  
     2016      2015      %
change		     2016      2015      %
change		  

Total revenues

    $ 3,414,975       $ 3,210,853         6.4 %    $ 13,144,413       $ 13,476,084         -2.5 % 

Net revenues:

                 

Transportation

                 

Truckload

    $ 296,740       $ 338,892         -12.4 %    $ 1,257,191       $ 1,316,533         -4.5 % 

LTL

      94,299         89,622         5.2 %      381,817         360,706         5.9 % 

Intermodal

      7,521         8,835         -14.9 %      33,482         41,054         -18.4 % 

Ocean

      69,033         56,065         23.1 %      244,276         223,643         9.2 % 

Air

      23,743         18,613         27.6 %      82,167         79,096         3.9 % 

Customs

      15,860         10,681         48.5 %      50,509         43,929         15.0 % 

Other logistics services

      28,404         21,217         33.9 %      105,369         82,548         27.6 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total transportation

      535,600         543,925         -1.5 %      2,154,811         2,147,509         0.3 % 

Sourcing

      25,916         26,852         -3.5 %      122,717         120,971         1.4 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Total net revenues

      561,516         570,777         -1.6 %      2,277,528         2,268,480         0.4 % 

Operating expenses

      367,951         356,198         3.3 %      1,439,997         1,410,170         2.1 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Income from operations

      193,565         214,579         -9.8 %      837,531         858,310         -2.4 % 

Net income

    $ 122,303       $ 126,583         -3.4 %    $ 513,384       $ 509,699         0.7 % 
  

 

 

     

 

 

       

 

 

     

 

 

     

Diluted EPS

    $ 0.86       $ 0.88         -2.3 %    $ 3.59       $ 3.51         2.3 % 

Our total revenues increased 6.4 percent in the fourth quarter of 2016 compared to the fourth quarter of 2015. The increase in total revenues was driven by volume growth across all of our services. Our total net revenues decreased 1.6 percent in the fourth quarter of 2016 compared to the fourth quarter of 2015. The net revenue decline was primarily the result of lower truckload margins. APC Logistics (“APC”), which was acquired at the close of business on September 30, 2016, represented approximately two percent of our total net revenues in the fourth quarter of 2016.

For the fourth quarter, our total operating expenses increased 3.3 percent. Total other selling, general, and administrative expenses increased 22.3 percent, driven by growth in claims, bad debt provision, and costs related to the APC acquisition. The increase in other selling, general, and administrative expenses was partially offset by a 2.9 percent decrease in personnel expenses in the fourth quarter of 2016 compared to the fourth quarter of 2015. The decline in personnel expense was the result of decreased expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability. Average headcount increased approximately seven percent in the fourth quarter of 2016 compared to the fourth quarter of 2015.

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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Interest and other expenses declined approximately $10 million in the fourth quarter of 2016 compared to the fourth quarter of 2015. In the fourth quarter of 2016, we had approximately $4 million in currency gains, primarily due to a stronger U.S. dollar. In the fourth quarter of 2015, we wrote off a $7.2 million indemnification asset related to the acquisition of Phoenix International Freight Services, Ltd., as the indemnification expired.

Results by Segment

Commencing with this quarter, we are now reporting operating results based on three reportable segments. Our three reportable segments are: North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. The balance of our business is reported as “All Other and Corporate.” All Other and Corporate includes our non-reportable segments, including Managed Services and Other Surface Transportation.

NAST provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The primary services provided by NAST include truckload, less than truckload (“LTL”), and intermodal. Summarized financial results of our NAST segment are as follows (dollars in thousands):

 

     Three months ended December 31,     Twelve months ended December 31,  
     2016      2015      %
change		     2016      2015      %
change		  

Total revenues(1)

    $ 2,281,435       $ 2,171,427         5.1 %    $ 8,737,716       $ 8,968,349         -2.6 % 

Net revenues

      363,281         398,279         -8.8 %      1,524,355         1,564,917         -2.6 % 

Income from operations

      157,631         183,964         -14.3 %      674,436         718,329         -6.1 % 

 

(1) Excludes intersegment revenues.

NAST total revenues increased 5.1 percent to $2.3 billion in the fourth quarter of 2016 from $2.2 billion in the fourth quarter of 2015. This increase was driven by volume increases in all services. NAST net revenues decreased 8.8 percent to $363.3 million in the fourth quarter of 2016 compared to $398.3 million in the fourth quarter of 2015, primarily from a decline in truckload net revenues.

NAST truckload net revenues decreased 12.9 percent to $261.1 million in the fourth quarter of 2016 compared to $299.8 million in the fourth quarter of 2015, while truckload volumes increased approximately 10 percent. NAST truckload net revenue margin decreased in the fourth quarter of 2016 compared to the fourth quarter of 2015, due primarily to lower customer pricing.

NAST accounted for approximately 92 percent of our total North America truckload net revenues in the fourth quarter in both 2016 and 2015. The majority of the remaining North American truckload net revenues is included in Robinson Fresh. Excluding the estimated impacts of the change in fuel prices, our average North America truckload rate per mile charged to our customers decreased approximately 3.5 percent in the fourth quarter of 2016 compared to the fourth quarter of 2015. Our truckload transportation costs were flat, excluding the estimated impacts of the change in fuel prices.

NAST LTL net revenues increased 5.1 percent to $90.6 million in the fourth quarter of 2016 compared to $86.3 million in the fourth quarter of 2015. NAST LTL volumes increased approximately five percent in the fourth quarter of 2016 compared to the fourth quarter of 2015, and net revenue margin decreased slightly.

NAST intermodal net revenues decreased 15.8 percent to $7.1 million in the fourth quarter of 2016 compared to $8.5 million in the fourth quarter of 2015. This was primarily due to net revenue margin declines, partially offset by increased volumes. During the fourth quarter of 2016, intermodal opportunities were negatively impacted by the alternative lower cost truck market.

NAST operating expenses decreased 4.0 percent in the fourth quarter of 2016 to $205.7 million compared to $214.3 million in the fourth quarter of 2015. This was primarily due to decreases in personnel expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability. These decreases were partially offset by increases in claims and allowance for doubtful accounts. The operating expenses of NAST and all other segments include allocated corporate expenses.

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Australia, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, airfreight services, and customs brokerage. Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

 

     Three months ended December 31,     Twelve months ended December 31,  
     2016      2015      %
change		     2016      2015      %
change		  

Total revenues(1)

    $ 475,971       $ 376,767         26.3 %    $ 1,574,686       $ 1,639,944         -4.0 % 

Net revenues

      114,079         89,491         27.5 %      397,537         365,467         8.8 % 

Income from operations

      24,631         18,727         31.5 %      80,931         76,081         6.4 % 

 

(1) Excludes intersegment revenues.

Global Forwarding total revenues increased 26.3 percent in the fourth quarter of 2016 to $476.0 million from $376.8 million in the fourth quarter of 2015. Global Forwarding net revenues increased 27.5 percent to $114.1 million in the fourth quarter of 2016 compared to $89.5 million in the fourth quarter of 2015.

Ocean transportation net revenues increased 23.7 percent to $69.3 million in the fourth quarter of 2016 compared to $56.0 million in the fourth quarter of 2015. Air net revenues increased 32.3 percent to $22.0 million in the fourth quarter of 2016 compared to $16.6 million in the fourth quarter of 2015. Customs net revenues increased 48.5 percent to $15.9 million in the fourth quarter of 2016 compared to $10.7 million in the fourth quarter of 2015. These increases were primarily due to volume increases, including those from APC.    

Global Forwarding operating expenses increased 26.4 percent in the fourth quarter of 2016 to $89.4 million from $70.8 million in the fourth quarter of 2015. These increases were driven by an average headcount increase of 13.9 percent, an increase in claims, and higher allowance for doubtful accounts in the fourth quarter of 2016 compared to the fourth quarter of 2015. In addition, the acquisition of APC contributed to the increase in operating expenses, including amortization, for Global Forwarding.

Robinson Fresh provides sourcing services under the name of Robinson Fresh. Our sourcing services primarily include the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. Robinson Fresh sources products from around the world and has a physical presence in North America, Europe, Asia, and South America. This segment often provides the logistics and transportation of the products they sell, in addition to temperature controlled transportation services for its customers. Summarized financial results of our Robinson Fresh segment are as follows (dollars in thousands):

 

     Three months ended December 31,     Twelve months ended December 31,  
     2016      2015      %
change		     2016      2015      %
change		  

Total revenues(1)

    $ 529,449       $ 549,713         -3.7 %    $ 2,344,131       $ 2,395,440         -2.1 % 

Net revenues

      51,753         56,163         -7.9 %      234,794         235,334         -0.2 % 

Income from operations

      12,980         16,065         -19.2 %      75,757         81,332         -6.9 % 

 

(1) Excludes intersegment revenues.

Robinson Fresh total revenues decreased 3.7 percent to $529.4 million in the fourth quarter of 2016 from $549.7 million in the fourth quarter of 2015. Robinson Fresh net revenues decreased 7.9 percent to $51.8 million in the fourth quarter of 2016 compared to $56.2 million in the fourth quarter of 2015 as a result of declines in transportation and sourcing net revenues.

Robinson Fresh sourcing net revenues decreased 3.5 percent to $25.9 million in the fourth quarter of 2016 compared to $26.9 million in the fourth quarter of 2015. This decrease was primarily due to lower market pricing and changes in the service mix.

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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Robinson Fresh transportation net revenues decreased 11.9 percent to $25.8 million in the fourth quarter of 2016 compared to $29.3 million in the fourth quarter of 2015, primarily due to decreases in truckload revenue, partially offset by increases in their other transportation services net revenues. Robinson Fresh transportation net revenue margin decreased in the fourth quarter of 2016 compared to the fourth quarter of 2015, due primarily to lower customer pricing.

Robinson Fresh operating expenses decreased 3.3 percent in the fourth quarter of 2016 to $38.8 million from $40.1 million in the fourth quarter of 2015. This was primarily due to decreases in personnel expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability, partially offset by an increase in warehousing expenses related to expanding facilities and an increase in average headcount.

All Other and Corporate includes our Managed Services segment, as well as Other Surface Transportation outside of North America and other miscellaneous revenues. Other Surface Transportation revenues are primarily earned by Europe Surface Transportation. Europe Surface Transportation provides services similar to NAST across the European continent. It also includes any unallocated corporate expenses. Managed Services provides Transportation Management Service, or Managed TMS. Summarized financial results are as follows:

 

     Three months ended December 31,     Twelve months ended December 31,  
Net revenues    2016      2015      %
change		     2016      2015      %
change		  

Managed Services

    $ 17,667       $ 13,309         32.7 %    $ 64,701       $ 48,745         32.7 % 

Other Surface Transportation

      14,736         13,535         8.9 %      56,141         54,017         3.9 % 

Managed Services net revenues increased 32.7 percent in the fourth quarter of 2016 to $17.7 million compared to $13.3 million the fourth quarter of 2015. This increase was a result of growth from both new and existing customers. Other surface transportation increased 8.9 percent in the fourth quarter of 2016 to $14.7 million compared to $13.5 million in the fourth quarter of 2015, primarily the result of growth in Europe Surface Transportation.     

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 113,000 customers and 71,000 contract carriers through our integrated network of offices and more than 14,000 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 on the NASDAQ since 1997. For more information, visit http://www.chrobinson.com or view our company video.

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; 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 increasing costs 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 successfully integrate the operations of acquired companies with our historic operations; 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; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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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 2016 Earnings Conference Call

Wednesday, February 1, 2017; 8:30 a.m. Eastern Time

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.

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 13652500

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

Telephone audio replay available until 11:30 a.m. Eastern Time on February 8, 2017: 877-660-6853;

passcode: 13652500#

International callers dial +1-201-612-7415

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

Page 6

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

 

     Three months ended
December 31,		     Twelve months ended
December 31,		  
     2016     2015     2016     2015  

Revenues:

         

Transportation

    $ 3,110,978      $ 2,867,301      $ 11,704,745      $ 11,989,780   

Sourcing

      303,997        343,552        1,439,668        1,486,304   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      3,414,975        3,210,853        13,144,413        13,476,084   
  

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

         

Purchased transportation and related services

      2,575,378        2,323,376        9,549,934        9,842,271   

Purchased products sourced for resale

      278,081        316,700        1,316,951        1,365,333   

Personnel expenses

      260,305        268,190        1,064,936        1,051,410   

Other selling, general, and administrative expenses

      107,646        88,008        375,061        358,760   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      3,221,410        2,996,274        12,306,882        12,617,774   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      193,565        214,579        837,531        858,310   
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest and other expense

      (3,118 )      (13,471 )      (25,581 )      (35,529 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before provision for income taxes

      190,447        201,108        811,950        822,781   

Provisions for income taxes

      68,144        74,525        298,566        313,082   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 122,303      $ 126,583      $ 513,384      $ 509,699   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share (basic)

    $ 0.86      $ 0.88      $ 3.60      $ 3.52   

Net income per share (diluted)

    $ 0.86      $ 0.88      $ 3.59      $ 3.51   

Weighted average shares outstanding (basic)

      141,711        143,484        142,706        144,967   

Weighted average shares outstanding (diluted)

      142,164        144,144        142,991        145,349   

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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BUSINESS SEGMENT INFORMATION

(unaudited, dollars in thousands)

 

     NAST      Global
Forwarding		      Robinson
Fresh		      All
Other and
Corporate		     Eliminations     Consolidated  

Three months ended December 31, 2016

                

Revenues

    $ 2,281,435       $ 475,971       $ 529,449       $ 128,120      $ —        $ 3,414,975   

Intersegment revenues (1)

      86,898         6,726         36,203         1,569        (131,396 )      —     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 2,368,333       $ 482,697       $ 565,652       $ 129,689      $ (131,396 )    $ 3,414,975   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net revenues

    $ 363,281       $ 114,079       $ 51,753       $ 32,403        —        $ 561,516   

Operating income/(loss)

    $ 157,631       $ 24,631       $ 12,980       $ (1,677 )      —        $ 193,565   

Depreciation and amortization

    $ 5,575       $ 7,868       $ 1,192       $ 7,318        —        $ 21,953   

Total Assets

    $ 2,088,611       $ 668,553       $ 376,654       $ 518,752        —        $ 3,652,570   

Average headcount

      6,809         3,934         951         2,380        —          14,074   
     NAST      Global
Forwarding		      Robinson
Fresh		      All
Other and
Corporate		     Eliminations     Consolidated  

Three months ended December 31, 2015

                

Revenues

    $ 2,171,427       $ 376,767       $ 549,713       $ 112,946      $ —        $ 3,210,853   

Intersegment revenues(1)

      64,581         4,295         23,991         402        (93,269 )      —     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 2,236,008       $ 381,062       $ 573,704       $ 113,348      $ (93,269 )    $ 3,210,853   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net revenues

    $ 398,279       $ 89,491       $ 56,163       $ 26,844        —        $ 570,777   

Operating income/(loss)

    $ 183,964       $ 18,727       $ 16,065       $ (4,177 )      —        $ 214,579   

Depreciation and amortization

    $ 5,457       $ 5,255       $ 762       $ 5,422        —        $ 16,896   

Total Assets

    $ 1,878,203       $ 556,606       $ 346,728       $ 402,821        —        $ 3,184,358   

Average headcount

      6,683         3,455         912         2,108        —          13,158   

 

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

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

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BUSINESS SEGMENT INFORMATION

(unaudited, dollars in thousands)

 

     NAST      Global
Forwarding		      Robinson
Fresh		      All
Other and
Corporate		     Eliminations     Consolidated  

Twelve months ended December 31, 2016

                

Revenues

    $ 8,737,716       $ 1,574,686       $ 2,344,131       $ 487,880      $ —        $ 13,144,413   

Intersegment revenues(1)

      298,438         30,311         119,403         2,211        (450,363 )      —     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 9,036,154       $ 1,604,997       $ 2,463,534       $ 490,091      $ (450,363 )    $ 13,144,413   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net revenues

    $ 1,524,355       $ 397,537       $ 234,794       $ 120,842        —        $ 2,277,528   

Operating income

    $ 674,436       $ 80,931       $ 75,757       $ 6,407        —        $ 837,531   

Depreciation and amortization

    $ 22,126       $ 23,099       $ 3,782       $ 25,662        —        $ 74,669   

Total Assets

    $ 2,088,611       $ 688,553       $ 376,654       $ 518,752        $ 3,652,570   

Average headcount

      6,773         3,673         942         2,282        —          13,670   
     NAST      Global
Forwarding		      Robinson
Fresh		      All
Other and
Corporate		     Eliminations     Consolidated  

Twelve months ended December 31, 2015

                

Revenues

    $ 8,968,349       $ 1,639,944       $ 2,395,440       $ 472,351      $ —        $ 13,476,084   

Intersegment revenues(1)

      271,557         19,102         89,033         2,107        (381,799 )      —     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total revenues

    $ 9,239,906       $ 1,659,046       $ 2,484,473       $ 474,458      $ (381,799 )    $ 13,476,084   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net revenues

    $ 1,564,917       $ 365,467       $ 235,334       $ 102,762        —        $ 2,268,480   

Operating income/(loss)

    $ 718,329       $ 76,081       $ 81,332       $ (17,432 )      —        $ 858,310   

Depreciation and amortization

    $ 21,846       $ 20,790       $ 2,927       $ 20,846        —        $ 66,409   

Total Assets

    $ 1,878,203       $ 556,606       $ 346,728       $ 402,821        —        $ 3,184,358   

Average headcount

      6,575         3,381         892         2,054        —          12,902   

 

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

 

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C.H. Robinson Worldwide, Inc.

January 31, 2017

Page 9

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

 

     December 31,
2016		      December 31,
2015		  

Assets

      

Current assets:

      

Cash and cash equivalents

    $ 247,666       $ 168,229   

Receivables, net

      1,676,003         1,505,620   

Other current assets

      49,245         56,849   
  

 

 

     

 

 

  

Total current assets

      1,972,914         1,730,698   

Property and equipment, net

      232,953         190,874   

Intangible and other assets

      1,446,703         1,262,786   
  

 

 

     

 

 

  

Total assets

    $ 3,652,570       $ 3,184,358   
  

 

 

     

 

 

  

Liabilities and stockholders’ investment

      

Current liabilities:

      

Accounts payable and outstanding checks

    $ 886,543       $ 783,883   

Accrued compensation

      98,107         146,666   

Accrued income taxes

      15,472         12,573   

Other accrued expenses

      70,408         55,475   

Current portion of debt

      740,000         450,000   
  

 

 

     

 

 

  

Total current liabilities

      1,810,530         1,448,597   

Noncurrent income taxes payable

      18,849         19,634   

Deferred tax liabilities

      65,122         65,460   

Long term debt

      500,000         500,000   

Other long-term liabilities

      222         217   
  

 

 

     

 

 

  

Total liabilities

      2,394,723         2,033,908   

Total stockholders’ investment

      1,257,847         1,150,450   
  

 

 

     

 

 

  

Total liabilities and stockholders’ investment

    $ 3,652,570       $ 3,184,358   
  

 

 

     

 

 

  

 

(more)

C.H. Robinson Worldwide, Inc.

January 31, 2017

Page 10

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands, except operational data)

 

     Twelve months ended
December 31,		  
     2016     2015  

Operating activities:

     

Net income

    $ 513,384      $ 509,699   

Stock-based compensation

      37,565        57,661   

Depreciation and amortization

      74,669        66,409   

Provision for doubtful accounts

      5,136        11,538   

Deferred income taxes

      15,009        (17,095 ) 

Other

      1,907        7,409   

Changes in operating elements, net of acquisitions:

     

Receivables

      (132,898 )      107,560   

Prepaid expenses and other

      (6,378 )      (228 ) 

Other non-current assets

      (3,934 )      741   

Accounts payable and outstanding checks

      80,672        (53,272 ) 

Accrued compensation and profit-sharing contribution

      (47,570 )      18,580   

Accrued income taxes

      1,459        5,178   

Other accrued liabilities

      (9,613 )      4,156   
  

 

 

    

 

 

  

Net cash provided by operating activities

      529,408        718,336   

Investing activities:

     

Purchases of property and equipment

      (73,452 )      (28,115 ) 

Purchases and development of software

      (17,985 )      (16,527 ) 

Restricted cash

      —          359,388   

Acquisitions, net of cash

      (220,203 )      (369,833 ) 

Other

      (1,348 )      641   
  

 

 

    

 

 

  

Net cash used for investing activities

      (312,988 )      (54,446 ) 

Financing activities:

     

Borrowings on line of credit

      6,600,000        6,833,000   

Repayments on line of credit

      (6,310,000 )      (6,988,000 ) 

Net repurchases of common stock

      (190,332 )      (225,674 ) 

Excess tax benefit on stock-based compensation

      18,462        8,548   

Cash dividends

      (245,430 )      (235,615 ) 
  

 

 

    

 

 

  

Net cash used for financing activities

      (127,300 )      (607,741 ) 

Effect of exchange rates on cash

      (9,683 )      (16,860 ) 
  

 

 

    

 

 

  

Net change in cash and cash equivalents

      79,437        39,289   

Cash and cash equivalents, beginning of period

      168,229        128,940   
  

 

 

    

 

 

  

Cash and cash equivalents, end of period

    $ 247,666      $ 168,229   
  

 

 

    

 

 

  
     As of December 31,  
     2016     2015  

Operational Data:

     

Employees

      14,125        13,159   

Source: C.H. Robinson

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