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
FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS SECOND QUARTER RESULTS
Income from Operations Up 12.1 Percent For the Quarter
MINNEAPOLIS, July 23, 2002 — C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq:CHRW), today reported financial results for the three months and six months ended June 30, 2002.
For the second quarter of 2002, gross profits increased 3.0 percent to $121.6 million from $118.0 million in 2001. Income from operations increased 12.1 percent to $41.0 million from $36.6 million in 2001. Net income increased 11.3 percent to $25.2 million from $22.6 million in 2001. Basic net income per share increased 11.1 percent to $0.30 from $0.27 cents per share in 2001. Diluted net income per share increased 11.5 percent to $0.29 from $0.26 cents per share in 2001.
For the six months ended June 30, 2002, gross profits increased 1.7 percent to $235.2 million from $231.3 million in 2001. Income from operations increased 13.5 percent to $74.8 million from $65.9 million in 2001. Net income increased 12.9 percent to $46.0 million from $40.8 million in 2001. Basic net income per share increased 14.6 percent to $0.55 from $0.48 cents per share in 2001. Diluted net income per share increased 12.5 percent to $0.54 from $0.48 cents per share in 2001.
“We continue to aggressively manage our operating expenses and overall are pleased with our earnings growth for the quarter,” said John Wiehoff, chief executive officer of C.H. Robinson. “During the second quarter, we experienced increasing volumes in our truckload business, however our gross margin declined due to overall tight truck capacity. We will continue to adapt to this changing marketplace and are confident that we are positioning ourselves for accelerating revenue growth.”
For the second quarter, transportation gross profits increased 1.7 percent. The increase was the result of gross profit increases in our less-than-truckload, intermodal, international and transportation management businesses, combined with a 1.7 percent decline in the company’s truckload transportation business. The truckload gross profit decline was the result of a decrease in our gross profit per transaction, as we had slight increases in volume during the quarter.
For the second quarter, sourcing gross profits increased 4.7 percent. We continue to see the trend of less volume with our traditional business with produce wholesalers, which is offset by increases in volumes and gross profits with large retailers.
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C.H. Robinson Worldwide, Inc.
July 23, 2002
Page 2
For the second quarter, information services gross profits increased 25.5 percent. T-Chek related profits, which as of July 1, 2001 comprise 100 percent of information services, increased 27.6 percent during the quarter.
For the quarter, selling, general, and administrative expenses were $22.0 million, a decrease of 12.1 percent from $25.0 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 second quarter. In addition, we had notable declines in communications costs, travel expenses, and contractor costs.
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 146 offices in North America, South America, Europe and Asia. 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, the effect of the company’s accounting policies, 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.
July 23, 2002
Page 3
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
| | | Three months ended June 30,
| | Six months ended June 30,
|
| | | 2002
| | 2001
| | 2002
| | 2001
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| Gross revenues and management fees | | $ | 842,720 | | $ | 796,694 | | $ | 1,582,751 | | $ | 1,529,178 |
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| Gross profits: | | | | | | | | | | | | |
| Transportation: | | | | | | | | | | | | |
| Truck | | $ | 89,724 | | $ | 89,958 | | $ | 175,676 | | $ | 177,166 |
| Intermodal | | | 5,066 | | | 3,849 | | | 9,234 | | | 7,594 |
| Ocean | | | 4,301 | | | 4,034 | | | 8,140 | | | 7,509 |
| Air | | | 846 | | | 792 | | | 1,399 | | | 1,455 |
| Miscellaneous | | | 2,099 | | | 1,741 | | | 4,155 | | | 3,378 |
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| Total transportation | | | 102,036 | | | 100,374 | | | 198,604 | | | 197,102 |
| Sourcing | | | 13,018 | | | 12,436 | | | 24,342 | | | 23,966 |
| Information services | | | 6,516 | | | 5,193 | | | 12,221 | | | 10,244 |
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| Total gross profits | | | 121,570 | | | 118,003 | | | 235,167 | | | 231,312 |
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| Operating costs and expenses: | | | | | | | | | | | | |
| Personnel expenses | | | 58,634 | | | 56,445 | | | 117,520 | | | 113,708 |
| Selling, general and administrative expenses | | | 21,965 | | | 25,001 | | | 42,838 | | | 51,673 |
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| Total operating costs and expenses | | | 80,599 | | | 81,446 | | | 160,358 | | | 165,381 |
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| Income from operations | | | 40,971 | | | 36,557 | | | 74,809 | | | 65,931 |
| Investment and other income | | | 352 | | | 739 | | | 680 | | | 1,245 |
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| Income before provision for income taxes | | | 41,323 | | | 37,296 | | | 75,489 | | | 67,176 |
| Provision for income taxes | | | 16,117 | | | 14,654 | | | 29,441 | | | 26,400 |
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| Net income | | $ | 25,206 | | $ | 22,642 | | $ | 46,048 | | $ | 40,776 |
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| Net income per share (basic) | | $ | 0.30 | | $ | 0.27 | | $ | 0.55 | | $ | 0.48 |
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| Net income per share (diluted) | | $ | 0.29 | | $ | 0.26 | | $ | 0.54 | | $ | 0.48 |
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| Weighted average shares outstanding (basic) | | | 84,339 | | | 84,353 | | | 84,307 | | | 84,362 |
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| Weighted average shares outstanding (diluted) | | | 85,980 | | | 85,882 | | | 85,825 | | | 85,818 |
| | | As of June 30,
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| Operational Data: | | 2002
| | 2001
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| Employees | | 3,768 | | 3,708 |
| Branches | | 146 | | 138 |
C.H. Robinson Worldwide, Inc.
July 23, 2002
Page 4
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(In thousands, except per share data)
| | | June 30, 2002
| | December 31, 2001
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| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 124,658 | | $ | 115,741 |
| Receivables | | | 409,056 | | | 370,378 |
| Other current assets | | | 17,397 | | | 17,096 |
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| Total current assets | | | 551,111 | | | 503,215 |
| Net property and equipment | | | 29,448 | | | 30,920 |
| Intangible and other assets | | | 162,303 | | | 149,355 |
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| | | $ | 742,862 | | $ | 683,490 |
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| Liabilities and stockholders’ investment | | | | | | |
| Current liabilities: | | | | | | |
| Accounts payable | | $ | 299,878 | | $ | 267,708 |
| Accrued compensation | | | 22,488 | | | 32,098 |
| Other accrued expenses | | | 23,999 | | | 23,722 |
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| Total current liabilities | | | 346,365 | | | 323,528 |
| Total long term liabilities | | | 6,410 | | | 4,147 |
| Total stockholders’ investment | | | 390,087 | | | 355,815 |
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| | | $ | 742,862 | | $ | 683,490 |
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C.H. Robinson Worldwide, Inc.
July 23, 2002
Page 5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(In thousands, except per share data)
| | | Six Months Ended
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| | | June 30, 2002
| | | June 30, 2001
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| Operating activities: | | | | | | | | |
| Net income | | $ | 46,048 | | | $ | 40,776 | |
| Depreciation and amortization | | | 7,121 | | | | 9,600 | |
| Other non-cash expenses | | | 2,134 | | | | 3,841 | |
| Net changes in operating elements | | | (14,414 | ) | | | (45,741 | ) |
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| Net cash provided by operations | | | 40,889 | | | | 8,476 | |
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| Investing activities: | | | | | | | | |
| Net property additions/retirements | | | (4,454 | ) | | | (4,431 | ) |
| Cash paid for acquisitions, net | | | (15,716 | ) | | | — | |
| Other assets, net | | | (470 | ) | | | (366 | ) |
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| Net cash used for investing | | | (20,640 | ) | | | (4,797 | ) |
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| Financing activities: | | | | | | | | |
| Net sales/repurchases of common stock | | | (1,200 | ) | | | (3,556 | ) |
| Cash dividends | | | (10,132 | ) | | | (8,450 | ) |
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| Net cash used for financing activity | | | (11,332 | ) | | | (12,006 | ) |
| Net increase (decrease) in cash | | | 8,917 | | | | (8,327 | ) |
| Cash and cash equivalents, beginning of period | | | 115,741 | | | | 79,912 | |
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| Cash and cash equivalents, end of period | | $ | 124,658 | | | $ | 71,585 | |
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