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| C.H. Robinson 14701 Charlson Rd. Eden Prairie, MN 55347 www.chrobinson.com
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| | FOR INQUIRIES, CONTACT: Robert Houghton, Vice President of Investor Relations and Treasury |
FOR IMMEDIATE RELEASE
C.H. Robinson Announces Interim Chief Financial Officer and Changes to Segment Reporting Structure
EDEN PRAIRIE, MINNESOTA, April 1, 2019 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson” or the “Company”) (Nasdaq: CHRW) announced today that Scott Hagen, Corporate Controller, will also serve as Interim Chief Financial Officer, effective immediately, while the Company completes its search for a permanent CFO. Scott has led C.H. Robinson’s accounting and financial reporting teams since 2008.
C.H. Robinson also announced today that the Company has reorganized its enterprise transportation services structure in the first quarter of 2019 to combine its North American Surface Transportation (“NAST”) and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST segment.
With this structure change, first quarter 2019 operating results will be based on two reportable segments: NAST and Global Forwarding. Robinson Fresh(1) results will be combined with the Managed Services and Other Surface Transportation segments in the “All Other and Corporate” category. To provide a basis for comparison, we have provided certain historical segment information under the new segment organization.
“As we combine the best practices of the NAST and Robinson Fresh transportation networks, we believe we are well positioned to support the future growth of Robinson Fresh and also strengthen the overall effectiveness of our temperature controlled service offering,” said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson. “Robinson Fresh is an important part of our history and our culture. We take great pride in our Robinson Fresh team, who works every day to bring fresh food to the tables of families around the world.”
(1) Robinson Fresh results now primarily consist of the Sourcing service line and its related 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 124,000 customers and 76,000 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.
Forward-Looking Statements
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 such 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; changes in relationships with existing contracted 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, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Quarterly Business Segment Information
(unaudited, dollars in thousands)
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| | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | All Other and Corporate | | Eliminations | | Consolidated |
| Three Months Ended March 31, 2018 | | | | | | | | | | |
| Revenues | | $ | 2,908,419 |
| | $ | 553,754 |
| | $ | 463,154 |
| | $ | — |
| | $ | 3,925,327 |
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Intersegment revenues (1) | | 32,164 |
| | 9,364 |
| | 7,123 |
| | (48,651 | ) | | — |
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| Total revenues | | 2,940,583 |
| | 563,118 |
| | 470,277 |
| | (48,651 | ) | | 3,925,327 |
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| Net revenues | | 438,402 |
| | 123,037 |
| | 64,486 |
| | — |
| | 625,925 |
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| Income from operations | | 179,637 |
| | 8,221 |
| | 3,727 |
| | — |
| | 191,585 |
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| Depreciation and amortization | | 6,331 |
| | 8,909 |
| | 9,001 |
| | — |
| | 24,241 |
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| Average headcount | | 7,298 |
| | 4,767 |
| | 3,023 |
| | — |
| | 15,088 |
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| | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | All Other and Corporate | | Eliminations | | Consolidated |
| Three Months Ended June 30, 2018 | | | | | | | | | | |
| Revenues | | $ | 3,163,185 |
| | $ | 617,597 |
| | $ | 495,255 |
| | $ | — |
| | $ | 4,276,037 |
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Intersegment revenues (1) | | 28,922 |
| | 14,875 |
| | 4,340 |
| | (48,137 | ) | | — |
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| Total revenues | | 3,192,107 |
| | 632,472 |
| | 499,595 |
| | (48,137 | ) | | 4,276,037 |
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| Net revenues | | 459,706 |
| | 144,031 |
| | 67,746 |
| | — |
| | 671,483 |
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| Income from operations | | 188,244 |
| | 29,788 |
| | 976 |
| | — |
| | 219,008 |
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| Depreciation and amortization | | 6,288 |
| | 8,753 |
| | 9,197 |
| | — |
| | 24,238 |
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| Average headcount | | 7,401 |
| | 4,736 |
| | 3,092 |
| | — |
| | 15,229 |
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| | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | All Other and Corporate | | Eliminations | | Consolidated |
| Three Months Ended September 30, 2018 | | | | | | | | | | |
| Revenues | | $ | 3,224,906 |
| | $ | 639,268 |
| | $ | 427,726 |
| | $ | — |
| | $ | 4,291,900 |
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Intersegment revenues (1) | | 21,497 |
| | 12,626 |
| | 4,187 |
| | (38,310 | ) | | — |
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| Total revenues | | 3,246,403 |
| | 651,894 |
| | 431,913 |
| | (38,310 | ) | | 4,291,900 |
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| Net revenues | | 499,463 |
| | 134,101 |
| | 60,480 |
| | — |
| | 694,044 |
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| Income from operations | | 223,893 |
| | 23,835 |
| | (1,755 | ) | | — |
| | 245,973 |
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| Depreciation and amortization | | 6,286 |
| | 8,735 |
| | 8,902 |
| | — |
| | 23,923 |
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| Average headcount | | 7,454 |
| | 4,684 |
| | 3,153 |
| | — |
| | 15,291 |
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(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
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| | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | All Other and Corporate | | Eliminations | | Consolidated |
| Three Months Ended December 31, 2018 | | | | | | | | | | |
| Revenues | | $ | 3,050,247 |
| | $ | 677,125 |
| | $ | 410,536 |
| | $ | — |
| | $ | 4,137,908 |
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Intersegment revenues (1) | | 26,060 |
| | 11,478 |
| | 7,222 |
| | (44,760 | ) | | — |
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| Total revenues | | 3,076,307 |
| | 688,603 |
| | 417,758 |
| | (44,760 | ) | | 4,137,908 |
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| Net revenues | | 508,690 |
| | 142,737 |
| | 62,356 |
| | — |
| | 713,783 |
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| Income from operations | | 230,070 |
| | 29,782 |
| | (4,335 | ) | | — |
| | 255,517 |
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| Depreciation and amortization | | 6,385 |
| | 8,751 |
| | 9,191 |
| | — |
| | 24,327 |
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| Average headcount | | 7,396 |
| | 4,664 |
| | 3,183 |
| | — |
| | 15,243 |
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FY 2018 Business Segment Information
(unaudited, dollars in thousands)
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| | | | | | | | | | | | | | | | | | | | |
| | | NAST | | Global Forwarding | | All Other and Corporate | | Eliminations | | Consolidated |
| Twelve Months Ended December 31, 2018 | | | | | | | | | | |
| Revenues | | $ | 12,346,757 |
| | $ | 2,487,744 |
| | $ | 1,796,671 |
| | $ | — |
| | $ | 16,631,172 |
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Intersegment revenues (1) | | 108,643 |
| | 48,343 |
| | 22,872 |
| | (179,858 | ) | | — |
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| Total revenues | | 12,455,400 |
| | 2,536,087 |
| | 1,819,543 |
| | (179,858 | ) | | 16,631,172 |
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| Net revenues | | 1,906,261 |
| | 543,906 |
| | 255,068 |
| | — |
| | 2,705,235 |
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| Income from operations | | 821,844 |
| | 91,626 |
| | (1,387 | ) | | — |
| | 912,083 |
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| Depreciation and amortization | | 25,290 |
| | 35,148 |
| | 36,291 |
| | — |
| | 96,729 |
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| Average headcount | | 7,387 |
| | 4,711 |
| | 3,106 |
| | — |
| | 15,204 |
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(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
Net Revenues by Service Line Information
(unaudited, dollars in thousands)
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| | | | | | | | | | | | | | | | | | | | |
| | | Three months ended | | Twelve months ended |
| | | March 31, 2018 | | June 30, 2018 | | September 30, 2018 | | December 31, 2018 | | December 31, 2018 |
| NAST | | | | | | | | | | |
| Truckload | | $ | 312,952 |
| | $ | 325,005 |
| | $ | 362,115 |
| | $ | 375,289 |
| | $ | 1,375,361 |
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| LTL | | 110,916 |
| | 118,176 |
| | 121,438 |
| | 116,195 |
| | 466,725 |
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| Intermodal | | 6,217 |
| | 9,101 |
| | 8,178 |
| | 8,483 |
| | 31,979 |
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| Other | | 8,317 |
| | 7,424 |
| | 7,732 |
| | 8,723 |
| | 32,196 |
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| Total | | $ | 438,402 |
| | $ | 459,706 |
| | $ | 499,463 |
| | $ | 508,690 |
| | $ | 1,906,261 |
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| | | | | | | | | | | |
| Global Forwarding | | | | | | | | | | |
| Ocean | | $ | 68,694 |
| | $ | 86,820 |
| | $ | 74,700 |
| | $ | 82,113 |
| | $ | 312,327 |
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| Air | | 26,037 |
| | 28,722 |
| | 28,228 |
| | 28,051 |
| | 111,038 |
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| Customs | | 20,655 |
| | 20,793 |
| | 23,305 |
| | 23,762 |
| | 88,515 |
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| Other | | 7,651 |
| | 7,696 |
| | 7,868 |
| | 8,811 |
| | 32,026 |
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| Total | | $ | 123,037 |
| | $ | 144,031 |
| | $ | 134,101 |
| | $ | 142,737 |
| | $ | 543,906 |
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| Robinson Fresh | | $ | 30,237 |
| | $ | 32,644 |
| | $ | 26,399 |
| | $ | 27,003 |
| | $ | 116,283 |
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| Managed Services | | $ | 18,317 |
| | $ | 20,074 |
| | $ | 20,080 |
| | $ | 20,318 |
| | $ | 78,789 |
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| Other Surface Transportation | | $ | 15,932 |
| | $ | 15,028 |
| | $ | 14,001 |
| | $ | 15,035 |
| | $ | 59,996 |
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| Total | | $ | 625,925 |
| | $ | 671,483 |
| | $ | 694,044 |
| | $ | 713,783 |
| | $ | 2,705,235 |
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