C.H. Robinson Worldwide, Inc.
14701 Charlson Road
Eden Prairie, Minnesota 55347
Andrew Clarke, Chief Financial Officer (952) 683-3474
Tim Gagnon, Vice President (952) 683-5007
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS FOURTH QUARTER RESULTS
MINNEAPOLIS, January 30, 2018 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended December 31, 2017. 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, |
| | | 2017 | | 2016 | | % change | | 2017 | | 2016 | | % change |
| Total revenues | | $ | 3,959,786 |
| | $ | 3,414,975 |
| | 16.0 | % | | $ | 14,869,380 |
| | $ | 13,144,413 |
| | 13.1 | % |
| Net revenues: | | | | | | | | | | | | |
| Transportation | | | | | | | | | | | | |
| Truckload | | $ | 342,134 |
| | $ | 296,740 |
| | 15.3 | % | | $ | 1,229,999 |
| | $ | 1,257,191 |
| | -2.2 | % |
| LTL | | 105,306 |
| | 94,299 |
| | 11.7 | % | | 407,012 |
| | 381,817 |
| | 6.6 | % |
| Intermodal | | 5,867 |
| | 7,521 |
| | -22.0 | % | | 29,145 |
| | 33,482 |
| | -13.0 | % |
| Ocean | | 73,135 |
| | 69,033 |
| | 5.9 | % | | 290,630 |
| | 244,276 |
| | 19.0 | % |
| Air | | 27,595 |
| | 23,743 |
| | 16.2 | % | | 100,761 |
| | 82,167 |
| | 22.6 | % |
| Customs | | 21,142 |
| | 15,860 |
| | 33.3 | % | | 70,952 |
| | 50,509 |
| | 40.5 | % |
| Other logistics services | | 29,554 |
| | 28,404 |
| | 4.0 | % | | 117,117 |
| | 105,369 |
| | 11.1 | % |
| Total transportation | | 604,733 |
| | 535,600 |
| | 12.9 | % | | 2,245,616 |
| | 2,154,811 |
| | 4.2 | % |
| Sourcing | | 27,116 |
| | 25,916 |
| | 4.6 | % | | 122,434 |
| | 122,717 |
| | -0.2 | % |
| Total net revenues | | 631,849 |
| | 561,516 |
| | 12.5 | % | | 2,368,050 |
| | 2,277,528 |
| | 4.0 | % |
| | | | | | | | | | | | | |
| Operating expenses | | 420,973 |
| | 367,951 |
| | 14.4 | % | | 1,592,931 |
| | 1,439,997 |
| | 10.6 | % |
| Income from operations | | 210,876 |
| | 193,565 |
| | 8.9 | % | | 775,119 |
| | 837,531 |
| | -7.5 | % |
| Net income | | $ | 152,556 |
| | $ | 122,303 |
| | 24.7 | % | | $ | 504,893 |
| | $ | 513,384 |
| | -1.7 | % |
| Diluted EPS | | $ | 1.08 |
|
| $ | 0.86 |
| | 25.6 | % | | $ | 3.57 |
| | $ | 3.59 |
| | -0.6 | % |
Our total revenues increased 16.0 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016. The increase in total revenues was driven by increased customer pricing, volume, and fuel costs in most of our transportation services. Our total net revenues increased 12.5 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016.
For the fourth quarter of 2017, our total operating expenses increased 14.4 percent compared to the fourth quarter of 2016. Personnel expenses increased 19.7 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016. The increase in personnel expenses was the result of an increase in average headcount of 6.8 percent and an increase in variable compensation in the fourth quarter of 2017 compared to the fourth quarter of 2016. Other selling, general, and administrative expenses increased 1.6 percent.
Interest and other expenses increased approximately $14.4 million in the fourth quarter of 2017 compared to the fourth quarter of 2016. Interest expense increased due to a higher average debt balance and higher interest rates during the fourth quarter of 2017 compared to the fourth quarter of 2016. The higher average debt balance is a result of borrowings for the acquisition of Milgram and increased working capital needs. Additionally, in the fourth quarter of 2016, we had approximately $4 million in currency gains, primarily due to a stronger U.S. dollar.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 2
The provision for income taxes decreased 40.1 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016. During the fourth quarter of 2017, the provision for income taxes decreased by $19.7 million due to the benefit of deductions under Section 199 of the Internal Revenue Code and $12.1 million due to the impact of the Tax Cuts and Jobs Act (“Tax Reform”), which was signed into law on December 22, 2017. The $12.1 million benefit resulting from Tax Reform was primarily the result of the revaluation of deferred tax assets and liabilities due to the decrease in the corporate Federal income tax rate from 35 percent to 21 percent and was partially offset by the impact of certain transition taxes and other impacts of Tax Reform.
Results by Segment
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, |
| | | 2017 | | 2016 | | % change | | 2017 | | 2016 | | % change |
Total revenues (1) | | $ | 2,618,587 |
| | $ | 2,281,435 |
| | 14.8 | % | | $ | 9,728,810 |
| | $ | 8,737,716 |
| | 11.3 | % |
| Net revenues | | 415,315 |
| | 363,281 |
| | 14.3 | % | | 1,525,064 |
| | 1,524,355 |
| | 0.0 | % |
| Income from operations | | 180,557 |
| | 157,631 |
| | 14.5 | % | | 628,110 |
| | 674,436 |
| | -6.9 | % |
| | | | | | | | | | | | | |
(1) Excludes intersegment revenues. | | | | | | | | | | | | |
NAST total revenues increased 14.8 percent to $2.6 billion in the fourth quarter of 2017 from $2.3 billion in the fourth quarter of 2016. This increase was driven by pricing increases in all services. NAST net revenues increased 14.3 percent to $415.3 million in the fourth quarter of 2017 compared to $363.3 million in the fourth quarter of 2016, primarily from an increase in truckload net revenues.
NAST truckload net revenues increased 16.6 percent to $304.5 million in the fourth quarter of 2017 compared to $261.1 million in the fourth quarter of 2016, while truckload volumes declined 3 percent. NAST truckload net revenue margin was flat in the fourth quarter of 2017 compared to the fourth quarter of 2016.
NAST accounted for approximately 94 percent of our total North America truckload net revenues in the fourth quarter of 2017 and 93 percent in the fourth quarter of 2016. 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 increased approximately 15 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016. Our truckload transportation costs increased approximately 14.5 percent, excluding the estimated impacts of the change in fuel prices.
NAST LTL net revenues increased 10.9 percent to $100.5 million in the fourth quarter of 2017 compared to $90.6 million in the fourth quarter of 2016. NAST LTL volumes increased approximately 10 percent in the fourth quarter of 2017 compared to the fourth quarter of 2016, and net revenue margin decreased.
NAST intermodal net revenues decreased 34.4 percent to $4.7 million in the fourth quarter of 2017 compared to $7.1 million in the fourth quarter of 2016. NAST intermodal net revenues and net revenue margin decreased while volume increased in the fourth quarter of 2017 compared to the fourth quarter of 2016 due to higher costs on owned and leased containers.
NAST operating expenses increased 14.2 percent in the fourth quarter of 2017 to $234.8 million compared to $205.7 million in the fourth quarter of 2016. This increase was due to increases in personnel expenses. The increase in personnel expenses is related to an increase in variable compensation in the fourth quarter of 2017 and an increase in average headcount of 1.0 percent compared to the fourth quarter of 2016. The operating expenses of NAST and all other segments include allocated corporate expenses.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 3
Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Australia, New Zealand, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, air freight 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, |
| | | 2017 | | 2016 | | % change | | 2017 | | 2016 | | % change |
Total revenues (1) | | $ | 591,245 |
| | $ | 475,971 |
| | 24.2 | % | | $ | 2,140,987 |
| | $ | 1,574,686 |
| | 36.0 | % |
| Net revenues | | 127,869 |
| | 114,079 |
| | 12.1 | % | | 485,280 |
| | 397,537 |
| | 22.1 | % |
| Income from operations | | 16,836 |
| | 24,631 |
| | -31.6 | % | | 91,842 |
| | 80,931 |
| | 13.5 | % |
| | | | | | | | | | | | | |
(1) Excludes intersegment revenues. | | | | | | | | | | | | |
Global Forwarding total revenues increased 24.2 percent in the fourth quarter of 2017 to $591.2 million from $476.0 million in the fourth quarter of 2016. Global Forwarding net revenues increased 12.1 percent to $127.9 million in the fourth quarter of 2017 compared to $114.1 million in the fourth quarter of 2016. The acquisition of Milgram accounted for approximately five percentage points of the net revenue growth in Global Forwarding.
Ocean net revenues increased 5.5 percent to $73.1 million in the fourth quarter of 2017 compared to $69.3 million in the fourth quarter of 2016. Air net revenues increased 16.7 percent to $25.7 million in the fourth quarter of 2017 compared to $22.0 million in the fourth quarter of 2016. Customs net revenues increased 33.3 percent to $21.1 million in the fourth quarter of 2017 compared to $15.9 million in the fourth quarter of 2016. These increases were primarily due to volume increases, including those from acquisition.
Global Forwarding operating expenses increased 24.1 percent in the fourth quarter of 2017 to $111.0 million from $89.4 million in the fourth quarter of 2016. This increase was due to increases in both personnel and selling, general, and administrative expenses. The personnel expense increase was driven by an average headcount increase of 19.0 percent. The acquisition of Milgram added approximately 7.5 percent to Global Forwarding average headcount. The selling, general, and administrative expense increase was primarily driven by the addition of Milgram.
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 it sells, 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, |
| | | 2017 | | 2016 | | % change | | 2017 | | 2016 | | % change |
Total revenues (1) | | $ | 594,646 |
| | $ | 529,449 |
| | 12.3 | % | | $ | 2,415,740 |
| | $ | 2,344,131 |
| | 3.1 | % |
| Net revenues | | 54,123 |
| | 51,753 |
| | 4.6 | % | | 226,059 |
| | 234,794 |
| | -3.7 | % |
| Income from operations | | 12,887 |
| | 12,980 |
| | -0.7 | % | | 53,374 |
| | 75,757 |
| | -29.5 | % |
| | | | | | | | | | | | | |
(1) Excludes intersegment revenues. | | | | | | | | | | | | |
Robinson Fresh total revenues increased 12.3 percent to $594.6 million in the fourth quarter of 2017 from $529.4 million in the fourth quarter of 2016. Robinson Fresh net revenues increased 4.6 percent to $54.1 million in the fourth quarter of 2017 compared to $51.8 million in the fourth quarter of 2016 as a result of increases in sourcing and transportation net revenues.
Robinson Fresh sourcing net revenues increased 4.6 percent to $27.1 million from $25.9 million in the fourth quarter of 2017 compared to the fourth quarter of 2016. This increase was due to an increase in net revenue margin and a case volume increase of one percent compared to the fourth quarter of 2016.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 4
Robinson Fresh transportation net revenues increased 4.5 percent to $27.0 million in the fourth quarter of 2017 compared to $25.8 million in the fourth quarter of 2016, primarily due to an increase in other transportation revenue, partially offset by a decrease in truckload net revenues. Robinson Fresh transportation net revenue margin decreased in the fourth quarter of 2017 compared to the fourth quarter of 2016.
Robinson Fresh operating expenses increased 6.4 percent in the fourth quarter of 2017 to $41.2 million from $38.8 million in the fourth quarter of 2016. This was primarily due to an increase in salaries and variable compensation, partially offset by a decline in selling, general, and administrative expenses.
All Other and Corporate includes our Managed Services segment, as well as Other Surface Transportation outside of North America and other miscellaneous revenues. It also includes any unallocated corporate expenses. Managed Services provides Transportation Management Service, or Managed TMS. Europe Surface Transportation provides services similar to NAST across the European continent. Net revenues for Managed Services and Other Surface Transportation are summarized as follows:
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| Net revenues | | 2017 | | 2016 | | % change | | 2017 | | 2016 | | % change |
| Managed Services | | $ | 18,322 |
| | $ | 17,667 |
| | 3.7 | % | | $ | 72,166 |
| | $ | 64,701 |
| | 11.5 | % |
| Other Surface Transportation | | 16,220 |
| | 14,736 |
| | 10.1 | % | | 59,481 |
| | 56,141 |
| | 5.9 | % |
| | | | | | | | | | | | | |
Managed Services net revenues increased 3.7 percent in the fourth quarter of 2017 to $18.3 million compared to $17.7 million the fourth quarter of 2016. This increase was a result of new business. Other surface transportation net revenues increased 10.1 percent in the fourth quarter of 2017 to $16.2 million compared to $14.7 million in the fourth quarter of 2016. This increase is primarily the result of increased volumes, partially offset by margin compression in the surface transportation business in Europe.
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 120,000 customers and 73,000 active contract carriers through our integrated network of offices and more than 15,000 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 since 1997. For more information, visit www.chrobinson.com.
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; risks of unexpected or unanticipated events or opportunities that might require additional capital expenditures; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
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.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 5
Conference Call Information:
C.H. Robinson Worldwide Fourth Quarter 2017 Earnings Conference Call
Wednesday, January 31, 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 13674982
An audio replay will be available at http://investor.chrobinson.com.
Telephone audio replay available until 11:30 a.m. Eastern Time on February 7, 2018: 877-660-6853;
passcode: 13674982#
International callers dial +1-201-612-7415
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 6
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | | |
| | | 2017 | | 2016 | | 2017 | | 2016 |
| | | | | | | | | |
| Revenues: | | | | | | | | |
| Transportation | | $ | 3,647,167 |
| | $ | 3,110,978 |
| | $ | 13,502,906 |
| | $ | 11,704,745 |
|
| Sourcing | | 312,619 |
| | 303,997 |
| | 1,366,474 |
| | 1,439,668 |
|
| Total revenues | | 3,959,786 |
| | 3,414,975 |
| | 14,869,380 |
| | 13,144,413 |
|
| Costs and expenses: | | | | | | | | |
| Purchased transportation and related services | | 3,042,434 |
| | 2,575,378 |
| | 11,257,290 |
| | 9,549,934 |
|
| Purchased products sourced for resale | | 285,503 |
| | 278,081 |
| | 1,244,040 |
| | 1,316,951 |
|
| Personnel expenses | | 311,599 |
| | 260,305 |
| | 1,179,527 |
| | 1,064,936 |
|
| Other selling, general, and administrative expenses | | 109,374 |
| | 107,646 |
| | 413,404 |
| | 375,061 |
|
| Total costs and expenses | | 3,748,910 |
| | 3,221,410 |
| | 14,094,261 |
| | 12,306,882 |
|
| Income from operations | | 210,876 |
| | 193,565 |
| | 775,119 |
| | 837,531 |
|
| Interest and other expense | | (17,502 | ) | | (3,118 | ) | | (46,656 | ) | | (25,581 | ) |
| Income before provision for income taxes | | 193,374 |
| | 190,447 |
| | 728,463 |
| | 811,950 |
|
| Provisions for income taxes | | 40,818 |
| | 68,144 |
| | 223,570 |
| | 298,566 |
|
| Net income | | $ | 152,556 |
| | $ | 122,303 |
| | $ | 504,893 |
| | $ | 513,384 |
|
| | | | | | | | | |
| Net income per share (basic) | | $ | 1.09 |
| | $ | 0.86 |
| | $ | 3.59 |
| | $ | 3.60 |
|
| Net income per share (diluted) | | $ | 1.08 |
| | $ | 0.86 |
| | $ | 3.57 |
| | $ | 3.59 |
|
| | | | | | | | | |
| Weighted average shares outstanding (basic) | | 139,572 |
| | 141,711 |
| | 140,610 |
| | 142,706 |
|
| Weighted average shares outstanding (diluted) | | 140,724 |
| | 142,164 |
| | 141,382 |
| | 142,991 |
|
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 7
BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | Robinson Fresh | | All Other and Corporate | | Eliminations | | Consolidated |
| Three Months Ended December 31, 2017 | | | | | | | | | | | | |
| Revenues | | $ | 2,618,587 |
| | $ | 591,245 |
| | $ | 594,646 |
| | $ | 155,308 |
| | $ | — |
| | $ | 3,959,786 |
|
Intersegment revenues (1) | | 133,197 |
| | 6,742 |
| | 51,011 |
| | 4,398 |
| | (195,348 | ) | | — |
|
| Total revenues | | $ | 2,751,784 |
| | $ | 597,987 |
| | $ | 645,657 |
| | $ | 159,706 |
| | $ | (195,348 | ) | | $ | 3,959,786 |
|
| Net revenues | | $ | 415,315 |
| | $ | 127,869 |
| | $ | 54,123 |
| | $ | 34,542 |
| | $ | — |
| | $ | 631,849 |
|
| Operating income | | $ | 180,557 |
| | $ | 16,836 |
| | $ | 12,887 |
| | $ | 596 |
| | $ | — |
| | $ | 210,876 |
|
| Depreciation and amortization | | $ | 6,126 |
| | $ | 8,734 |
| | $ | 1,196 |
| | $ | 7,581 |
| | $ | — |
| | $ | 23,637 |
|
| Total Assets | | $ | 2,277,252 |
| | $ | 821,182 |
| | $ | 434,080 |
| | $ | 703,320 |
| | $ | — |
| | $ | 4,235,834 |
|
| Average headcount | | 6,878 |
| | 4,683 |
| | 935 |
| | 2,540 |
| | — |
| | 15,036 |
|
| | | | | | | | | | | | | |
| | | 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 | | $ | 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 |
| | $ | 703,741 |
| | $ | 376,654 |
| | $ | 518,752 |
| | $ | — |
| | $ | 3,687,758 |
|
| Average headcount | | 6,809 |
| | 3,934 |
| | 951 |
| | 2,380 |
| | — |
| | 14,074 |
|
(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 8
BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | Robinson Fresh | | All Other and Corporate | | Eliminations | | Consolidated |
| Twelve Months Ended December 31, 2017 | | | | | | | | | | | | |
| Revenues | | $ | 9,728,810 |
| | $ | 2,140,987 |
| | $ | 2,415,740 |
| | $ | 583,843 |
| | $ | — |
| | $ | 14,869,380 |
|
Intersegment revenues (1) | | 462,390 |
| | 30,198 |
| | 167,292 |
| | 18,174 |
| | (678,054 | ) | | — |
|
| Total revenues | | $ | 10,191,200 |
| | $ | 2,171,185 |
| | $ | 2,583,032 |
| | $ | 602,017 |
| | $ | (678,054 | ) | | $ | 14,869,380 |
|
| Net revenues | | $ | 1,525,064 |
| | $ | 485,280 |
| | $ | 226,059 |
| | $ | 131,647 |
| | — |
| | $ | 2,368,050 |
|
| Operating income | | $ | 628,110 |
| | $ | 91,842 |
| | $ | 53,374 |
| | $ | 1,793 |
| | — |
| | $ | 775,119 |
|
| Depreciation and amortization | | $ | 23,230 |
| | $ | 33,308 |
| | $ | 4,730 |
| | $ | 31,709 |
| | — |
| | $ | 92,977 |
|
| Total Assets | | $ | 2,277,252 |
| | $ | 821,182 |
| | $ | 434,080 |
| | $ | 703,320 |
| | — |
| | $ | 4,235,834 |
|
| Average headcount | | 6,907 |
| | 4,310 |
| | 957 |
| | 2,513 |
| | — |
| | 14,687 |
|
| | | | | | | | | | | | | |
| | | 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 |
| | $ | 703,741 |
| | $ | 376,654 |
| | $ | 518,752 |
| | — |
| | $ | 3,687,758 |
|
| Average headcount | | 6,773 |
| | 3,673 |
| | 942 |
| | 2,282 |
| | — |
| | 13,670 |
|
(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 9
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
|
| | | | | | | |
| | December 31, 2017 | | December 31, 2016 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 333,890 |
| | $ | 247,666 |
|
| Receivables, net | 2,113,930 |
| | 1,711,191 |
|
| Other current assets | 63,116 |
| | 49,245 |
|
| Total current assets | 2,510,936 |
| | 2,008,102 |
|
| | | | |
| Property and equipment, net | 230,326 |
| | 232,953 |
|
| Intangible and other assets | 1,494,572 |
| | 1,446,703 |
|
| Total assets | $ | 4,235,834 |
| | $ | 3,687,758 |
|
| | | | |
| Liabilities and stockholders’ investment | | | |
| Current liabilities: | | | |
| Accounts payable and outstanding checks | $ | 1,096,664 |
| | $ | 921,788 |
|
| Accrued compensation | 105,316 |
| | 98,107 |
|
| Accrued income taxes | 12,240 |
| | 15,472 |
|
| Other accrued expenses | 58,229 |
| | 70,351 |
|
| Current portion of debt | 715,000 |
| | 740,000 |
|
| Total current liabilities | 1,987,449 |
| | 1,845,718 |
|
| | | | |
| Long term debt | 750,000 |
| | 500,000 |
|
| Noncurrent income taxes payable | 26,684 |
| | 18,849 |
|
| Deferred tax liability | 45,355 |
| | 65,122 |
|
| Other long-term liabilities | 601 |
| | 222 |
|
| Total liabilities | 2,810,089 |
| | 2,429,911 |
|
| | | | |
| Total stockholders’ investment | 1,425,745 |
| | 1,257,847 |
|
| Total liabilities and stockholders’ investment | $ | 4,235,834 |
| | $ | 3,687,758 |
|
C.H. Robinson Worldwide, Inc.
January 30, 2018
Page 10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except operational data)
|
| | | | | | | |
| | Twelve Months Ended |
| | December 31, |
| | 2017 | | 2016 |
| Operating activities: | | | |
| Net income | $ | 504,893 |
| | $ | 513,384 |
|
| Stock-based compensation | 41,805 |
| | 37,565 |
|
| Depreciation and amortization | 92,977 |
| | 74,669 |
|
| Provision for doubtful accounts | 13,489 |
| | 5,136 |
|
| Deferred income taxes | (28,731 | ) | | 15,009 |
|
| Excess tax benefit on stock-based compensation | (13,657 | ) | | (18,462 | ) |
| Other | 4,491 |
| | 1,907 |
|
| Changes in operating elements, net of acquisitions: | | | |
| Receivables | (364,181 | ) | | (173,211 | ) |
| Prepaid expenses and other | (9,173 | ) | | (6,378 | ) |
| Other non-current assets | (19,099 | ) | | (3,934 | ) |
| Accounts payable and outstanding checks | 144,041 |
| | 115,917 |
|
| Accrued compensation and profit-sharing contribution | 7,209 |
| | (47,570 | ) |
| Accrued income taxes | 19,452 |
| | 19,921 |
|
| Other accrued liabilities | (13,015 | ) | | (4,545 | ) |
| Net cash provided by operating activities | 380,501 |
| | 529,408 |
|
| | | | |
| Investing activities: | | | |
| Purchases of property and equipment | (40,122 | ) | | (73,452 | ) |
| Purchases and development of software | (17,823 | ) | | (17,985 | ) |
| Acquisitions, net of cash | (49,068 | ) | | (220,203 | ) |
| Other | (521 | ) | | (1,348 | ) |
| Net cash used for investing activities | (107,534 | ) | | (312,988 | ) |
| | | | |
| Financing activities: | | | |
| Borrowings on accounts receivable securitization facility | 250,000 |
| | — |
|
| Borrowings on line of credit | 8,784,000 |
| | 6,600,000 |
|
| Repayments on line of credit | (8,809,000 | ) | | (6,310,000 | ) |
| Net repurchases of common stock | (165,412 | ) | | (190,332 | ) |
| Excess tax benefit on stock-based compensation | — |
| | 18,462 |
|
| Cash dividends | (258,222 | ) | | (245,430 | ) |
| Net cash used for financing activities | (198,634 | ) | | (127,300 | ) |
| Effect of exchange rates on cash | 11,891 |
| | (9,683 | ) |
| | | | |
| Net change in cash and cash equivalents | 86,224 |
| | 79,437 |
|
| Cash and cash equivalents, beginning of period | 247,666 |
| | 168,229 |
|
| Cash and cash equivalents, end of period | $ | 333,890 |
| | $ | 247,666 |
|
| | | | |
| | As of December 31, |
| Operational Data: | 2017 | | 2016 |
| Employees | 15,074 |
| | 14,125 |
|
Source: C.H. Robinson
###
