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, media relations (952) 937-7847
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS FOURTH-QUARTER AND ANNUAL RESULTS
Income From Operations Up 14.8 Percent For The Year
MINNEAPOLIS, February 5, 2002 — C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq:CHRW), today reported financial results for the three months and twelve months ended December 31, 2001. As previously reported, all prior period per share data is reflective of a two-for-one stock split, effected in the form of a 100 percent stock dividend paid on December 1, 2000.
For the fourth quarter of 2001, net revenues increased 4.3 percent to $112.1 million from $107.4 million in 2000. Income from operations increased 10.7 percent to $33.6 million from $30.3 million in 2000. Net income increased 10.5 percent to $20.6 million from $18.6 million in 2000. Basic net income per share and diluted net income per share increased 9.1 percent to $0.24 from $0.22 cents per share in 2000.
For 2001, net revenues increased 8.9 percent to $456.6 million from $419.3 million in 2000. Income from operations increased 14.8 percent to $134.3 million from $117.0 million in 2000. Net income increased 17.9 percent to $84.0 million from $71.2 million in 2000. Basic net income per share increased 19.0 percent to $1.00 from $0.84 cents per share in 2000. Diluted net income per share increased 18.1 percent to $0.98 from $0.83 cents per share in 2000.
“Despite the many challenges of this environment, C.H. Robinson is as strong as ever,” said D.R. “Sid” Verdoorn, chairman and chief executive officer of C.H. Robinson. “Our non-asset-based, variable-cost business model has enabled us to adjust to these difficult market conditions. We’ve continued our strategy of aggressively selling and capturing market share along with carefully managing our operating expenses. We believe that this focus, along with our empowered profit centers and their strong relationships with a diverse customer and carrier base, will continue to pay dividends and position us well for an eventual U.S. economic recovery. Based on what we’ve seen so far, we believe the first quarter of 2002 will continue to be tough. We’re confident our emphasis on sales and marketing will enhance our opportunities through this slow economic period.”
For the fourth quarter and year ended December 31, 2001, transportation net revenues increased 4.1% and 9.9% respectively. The growth in truck net revenues, including LTL, was achieved by transaction volume increases, despite a decline in the overall freight volumes of some of the company’s major customers. Truck net revenue per transaction for the fourth quarter was down
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C. H. Robinson Worldwide, Inc.
February 5, 2002
Page 2
slightly compared to the fourth quarter last year. The company’s intermodal net revenue growth was driven by shippers’ focus on cost savings and their increased trust in railroad service levels.
Sourcing net revenues increased 7.2% and 3.1% for the fourth quarter and year ended December 31, 2001. The company continues to see the trend of less volume with its traditional business with produce wholesalers, which is offset by increases in volumes and net revenues with large retailers.
For the fourth quarter and year ended December 31, 2001, information services net revenues increased 3.0% and 2.8%, respectively. In the fourth quarter of 2000, this business line was comprised of T-Chek Systems, a freight payment company, and software license fees. The license fees terminated at the end of 2000 and the freight payment company was phased out June 30, 2001. For the fourth quarter and year ended December 31, 2001, T-Chek Systems had growth of 12.3% and 12.1% respectively. The difficult environment for carriers has impacted the growth of T-Chek, which provides funds transfer and information services to the carrier community.
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 14,000 customers through a network of 139 offices in North America, South America and Europe. C.H. Robinson maintains the single largest network of motor carrier capacity in North America through contracts with more than 20,000 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 which are based on certain assumptions and expectations of future events. These assumptions and expectations are dependent on and subject to certain risks and uncertainties including, but not limited to such factors as market demand, pricing, risks associated with operations outside of the U.S., changing economic conditions such as general economic slowdown and decreased consumer confidence, and other risk factors detailed under “Cautionary Statement” in Exhibit 99 to C.H. Robinson’s Annual Report on Form 10-K filed on March 30, 2001.
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C. H. Robinson Worldwide, Inc.
February 5, 2002
Page 3
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Prior periods have been restated to reflect a 100% stock dividend paid on December 1, 2000)
| Three months ended
December 31,
(unaudited) | Twelve months ended
December 31,
|
|
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|
| 2001 | 2000 | 2001 | 2000 |
| |
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| Gross revenues and management fees | $ 776,377 | $ 733,475 | $3,090,072 | $2,882,175 |
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| Net revenues: | | | | |
| Transportation: | | | | |
| Truck | $ 84,309 | $ 83,000 | $ 347,991 | $ 313,650 |
| Intermodal | 4,472 | 3,833 | 16,119 | 14,422 |
| Ocean | 5,187 | 3,697 | 16,345 | 16,337 |
| Air | 706 | 721 | 2,699 | 3,555 |
| Miscellaneous | 1,984 | 1,580 | 7,286 | 7,177 |
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| Total transportation | 96,658 | 92,831 | 390,440 | 355,141 |
| Sourcing | 10,002 | 9,332 | 45,154 | 43,793 |
| Information services | 5,408 | 5,253 | 20,978 | 20,409 |
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| Total net revenues | 112,068 | 107,416 | 456,572 | 419,343 |
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| Operating costs and expenses: | | | | |
| Personnel expenses | 55,964 | 51,943 | 224,997 | 205,111 |
| Selling, general and administrative | 22,531 | 25,140 | 97,301 | 97,224 |
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| Total operating costs and expenses | 78,495 | 77,083 | 322,298 | 302,335 |
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| Income from operations | 33,573 | 30,333 | 134,274 | 117,008 |
| Investment and other income | 346 | 462 | 4,099 | 750 |
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Income before provision for income
taxes | 33,919 | 30,795 | 138,373 | 117,758 |
| Provision for income taxes | 13,331 | 12,166 | 54,381 | 46,516 |
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| Net income | $ 20,588 | $ 18,629 | $ 83,992 | $ 71,242 |
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| Net income per share (basic) | $ 0.24 | $ 0.22 | $ 1.00 | $ 0.84 |
| Net income per share (diluted) | $ 0.24 | $ 0.22 | $ 0.98 | $ 0.83 |
| Weighted average shares outstanding (basic) | 84,478 | 84,457 | 84,374 | 84,529 |
Weighted average shares outstanding
(diluted) | 85,767 | 85,844 | 85,774 | 85,717 |
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C. H. Robinson Worldwide, Inc.
February 5, 2002
Page 4
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| December 31,
2001 | December 31,
2000 |
|
|
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| Assets | | |
| Current assets: | | |
| Cash and investments | $ 115,741 | $ 79,912 |
| Receivables | 370,378 | 354,953 |
| Other current assets | 17,096 | 25,374 |
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| Total current assets | 503,215 | 460,239 |
| Net property and equipment | 30,920 | 29,402 |
| Intangible and other assets | 149,355 | 154,566 |
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| $ 683,490 | $ 644,207 |
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| | |
| Liabilities and stockholders’ investment | | |
| Current liabilities: | | |
| Accounts payable | $ 267,708 | $ 285,932 |
| Accrued compensation | 32,098 | 33,456 |
| Other accrued expenses | 23,722 | 26,863 |
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| Total current liabilities | 323,528 | 346,251 |
| Total long term liabilities | 4,147 | 940 |
| Total stockholders’ investment | 355,815 | 297,016 |
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| $ 683,490 | $ 644,207 |
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C. H. Robinson Worldwide, Inc.
February 5, 2002
Page 6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share data)
| Twelve months ended
December 31, |
|
|
| 2001 | 2000 |
| |
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| Operating activities: | | |
| Net income | $ 83,992 | $ 71,242 |
| Depreciation and amortization | 19,136 | 17,318 |
| Other non-cash expenses | 11,092 | (195) |
| Net changes in operating elements | (39,768) | (13,875) |
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| Net cash provided by operations | 74,452 | 74,490 |
| Investing activities: | | |
| Net property (additions) retirements | (12,101) | (15,131) |
| Cash paid for acquisitions, net | - | (5,898) |
| Other assets, net | (1,116) | (3,063) |
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| Net cash used for investing | (13,217) | (24,092) |
| Financing activities: | | |
| Net sales (repurchases) of common stock | (8,505) | (6,685) |
| Cash dividends | (16,901) | (13,438) |
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| Net cash used for financing activity | (25,406) | (20,123) |
| Net increase in cash | 35,829 | 30,275 |
| Cash and cash equivalents, beginning of period | 79,912 | 49,637 |
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| Cash and cash equivalents, end of period | $ 115,741 | $ 79,912 |
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| As of December 31, |
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| Operational Data: | 2001 | 2000 |
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| Employees | 3,770 | 3,677 |
| Branches | 139 | 137 |
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