Exhibit 99.1
C.H. Robinson Worldwide, Inc.
8100 Mitchell Road, Suite 200
Eden Prairie, Minnesota 55344
Chad Lindbloom, vp and chief financial officer (952) 937-7779
Angie Freeman, media relations (952) 937-7847
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS FIRST QUARTER RESULTS
Income from Operations Up 15.2 Percent For the Quarter
MINNEAPOLIS, April 23, 2002 — C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq:CHRW), today reported financial results for the three months ended March 31, 2002.
For the first quarter of 2002, gross profits increased 0.3 percent to $113.6 million from $113.3 million in 2001. Income from operations increased 15.2 percent to $33.8 million from $29.4 million in 2001. Net income increased 14.9 percent to $20.8 million from $18.1 million in 2001. Basic net income per share increased 19.0 percent to $0.25 from $0.21 cents per share in 2001. Diluted net income per share increased 14.3 percent to $0.24 from $0.21 per share in 2001.
“We’re pleased with our performance this quarter,” said John Wiehoff, president of C.H. Robinson. “As we expected, the environment continued to be challenging for revenue growth. We continue to concentrate on sales and profitable growth, while aggressively managing our expenses. We believe that this focus, combined with our strong core competencies and long-term growth strategy, position us very well for the future.”
For the first quarter, transportation gross profits decreased 0.2 percent. The decline in truck gross profits of 1.4 percent was due to a decline in truckload volumes.
Sourcing gross profits decreased 1.8 percent in the first quarter. The company continues to see the trend of less volume with its traditional business with produce wholesalers, which is offset by increases in volumes with large retailers.
For the first quarter, information services gross profits increased 12.9 percent. T-Chek related revenues, which now comprise 100 percent of information services, increased 19.4 percent during the quarter.
For the quarter, selling, general, and administrative expenses were $20.9 million, a decrease of 21.7 percent from $26.7 million in 2001. Amortization of certain intangible assets has been eliminated due to new accounting rules, which reduced amortization expense by $1.3 million in the first quarter. In addition, we had notable declines in communications costs, travel expenses, and contractor costs.
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C.H. Robinson Worldwide, Inc.
April 23, 2002
Page 2
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 15,000 customers through a network of 144 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 15, 2002.
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C.H. Robinson Worldwide, Inc.
April 23, 2002
Page 3
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
| | | Three months ended March 31,
|
| | | 2002
| | 2001
|
| Gross revenues and management fees | | $ | 740,031 | | $ | 732,484 |
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| Gross profits: | | | | | | |
| Transportation: | | | | | | |
| Truck | | $ | 85,952 | | $ | 87,208 |
| Intermodal | | | 4,168 | | | 3,745 |
| Ocean | | | 3,839 | | | 3,475 |
| Air | | | 553 | | | 663 |
| Miscellaneous | | | 2,056 | | | 1,637 |
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| Total transportation | | | 96,568 | | | 96,728 |
| Sourcing | | | 11,324 | | | 11,530 |
| Information services | | | 5,705 | | | 5,051 |
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| Total gross profits | | | 113,597 | | | 113,309 |
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| Operating costs and expenses: | | | | | | |
| Personnel expenses | | | 58,886 | | | 57,263 |
| Selling, general, and administrative expenses | | | 20,873 | | | 26,672 |
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| Total operating costs and expenses | | | 79,759 | | | 83,935 |
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| Income from operations | | | 33,838 | | | 29,374 |
| Investment and other income | | | 328 | | | 506 |
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| Income before provision for income taxes | | | 34,166 | | | 29,880 |
| Provision for income taxes | | | 13,324 | | | 11,746 |
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| Net income | | $ | 20,842 | | $ | 18,134 |
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| Net income per share (basic) | | $ | 0.25 | | $ | 0.21 |
| Net income per share (diluted) | | $ | 0.24 | | $ | 0.21 |
| Weighted average shares outstanding (basic) | | | 84,567 | | | 84,372 |
| Weighted average shares outstanding (diluted) | | | 85,978 | | | 85,755 |
|
| | | As of March 31,
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| | | 2002
| | 2001
|
| Operational Data: | | | | | | |
| Employees | | | 3,775 | | | 3,694 |
| Branches | | | 144 | | | 138 |
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C.H. Robinson Worldwide, Inc.
April 23, 2002
Page 4
CONDENSED CONSOLIDATED
BALANCE SHEETS
(unaudited)
(In thousands)
| | | March 31, 2002
| | December 31, 2001
|
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and investments | | $ | 118,037 | | $ | 115,741 |
| Receivables, net | | | 360,063 | | | 370,378 |
| Deferred taxes | | | 11,104 | | | 12,164 |
| Other current assets | | | 4,151 | | | 4,932 |
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| Total current assets | | | 493,355 | | | 503,215 |
| Net property and equipment | | | 29,799 | | | 30,920 |
| Intangible and other assets | | | 162,808 | | | 149,355 |
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| | | $ | 685,962 | | $ | 683,490 |
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| Liabilities and stockholders’ investment | | | | | | |
| Current liabilities: | | | | | | |
| Accounts payable | | $ | 267,455 | | $ | 267,708 |
| Accrued compensation | | | 11,756 | | | 32,098 |
| Other accrued expenses | | | 28,447 | | | 23,722 |
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| Total current liabilities | | | 307,658 | | | 323,528 |
| Total long term liabilities | | | 5,794 | | | 4,147 |
| Total stockholders’ investment | | | 372,510 | | | 355,815 |
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| | | $ | 685,962 | | $ | 683,490 |
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C.H. Robinson Worldwide, Inc.
April 23, 2002
Page 5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands, except per share data)
| | | Three months ended March 31,
| |
| | | 2002
| | | 2001
| |
| Operating activities: | | | | | | | | |
| Net income | | $ | 20,842 | | | $ | 18,134 | |
| Depreciation and amortization | | | 3,542 | | | | 4,838 | |
| Other non-cash expenses | | | 1,963 | | | | 3,415 | |
| Net changes in operating elements | | | (1,962 | ) | | | (25,542 | ) |
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| Net cash provided by operations | | | 24,385 | | | | 845 | |
| Investing activities: | | | | | | | | |
| Net property additions | | | (1,576 | ) | | | (2,419 | ) |
| Cash paid for acquisitions, net | | | (15,716 | ) | | | — | |
| Other assets, net | | | (93 | ) | | | (1,548 | ) |
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| Net cash used for investing | | | (17,385 | ) | | | (3,967 | ) |
| Financing activities: | | | | | | | | |
| Net sales (repurchases) of common stock | | | 360 | | | | (1,001 | ) |
| Cash dividends | | | (5,064 | ) | | | (4,220 | ) |
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| Net cash used for financing activity | | | (4,704 | ) | | | (5,221 | ) |
| Net increase (decrease) in cash | | | 2,296 | | | | (8,343 | ) |
| Cash and cash equivalents, beginning of period | | | 115,741 | | | | 79,912 | |
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| Cash and cash equivalents, end of period | | $ | 118,037 | | | $ | 71,569 | |
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