C.H. Robinson Worldwide (CHRW) 8-K C.H. Robinson Reports Fourth Quarter Results

Exhibit 99.1

C.H. Robinson Worldwide, Inc.

14701 Charlson Road

Eden Prairie, Minnesota 55347

Chad Lindbloom, chief financial officer (952) 937-7779

Tim Gagnon, director, investor relations (952) 683-5007

FOR IMMEDIATE RELEASE

C.H. ROBINSON REPORTS FOURTH QUARTER RESULTS

MINNEAPOLIS, February 4, 2014 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended December 31, 2013. Summarized financial results for the quarter ended December 31 are as follows (dollars in thousands, except per share data):

	Three months ended December 31,								Twelve months ended December 31,
	2013			2012		% change			2013			2012		% change
Total revenues	$	3,152,882		$	2,970,876		6.1	%	$	12,752,076		$	11,359,113		12.3	%
Net revenues:
Transportation
Truckload	$	256,117		$	271,248		-5.6	%	$	1,054,565		$	1,060,120		-0.5	%
LTL		58,839			57,025		3.2	%		239,477			224,160		6.8	%
Intermodal		9,861			9,011		9.4	%		39,084			38,815		0.7	%
Ocean		46,367			33,707		37.6	%		187,671			84,924		121.0	%
Air		17,982			15,948		12.8	%		73,089			44,444		64.5	%
Customs		9,271			6,782		36.7	%		36,578			18,225		100.7	%
Other logistics services		17,583			15,420		14.0	%		67,931			57,449		18.2	%
Total transportation		416,020			409,141		1.7	%		1,698,395			1,528,137		11.1	%
Sourcing		25,799			30,543		-15.5	%		126,950			136,438		-7.0	%
Payment services		2,646			4,948		-46.5	%		10,750			52,996		-79.7	%
Total net revenues		444,465			444,632		0.0	%		1,836,095			1,717,571		6.9	%
Operating expenses		289,352			311,028		-7.0	%		1,153,445			1,042,251		10.7	%
Income from operations		155,113			133,604		16.1	%		682,650			675,320		1.1	%
Investment and other (expense) income		(6,005	)		282,166		-102.1	%		(9,289	)		283,142		-103.3	%
Net income	$	92,952		$	256,392		-63.7	%	$	415,904		$	593,804		-30.0	%
Diluted earnings per share	$	0.62		$	1.58		-60.8	%	$	2.65		$	3.67		-27.8	%

Pro Forma Comparison -The following shows the effects of the disposition of the Company’s T-Chek Payment Services business (“T-Chek”), which was completed in October 2012, and the acquisition of Phoenix International Freight Services, Ltd. (“Phoenix”), which was completed in November 2012, as if these transactions had occurred at the beginning of 2012. A reconciliation of these pro forma measures is described on page 3.

	Three months ended December 31,							Twelve months ended December 31,
	2013 Reported		2012 Pro Forma		% change			2013 Reported		2012 Pro Forma		% change
Total net revenues	$	444,465	$	453,782		-2.1	%	$	1,836,095	$	1,812,631		1.3	%
Personnel expenses		203,619		198,307		2.7	%		826,661		788,959		4.8	%
Selling, general, and administrative expenses		80,718		75,006		7.6	%		306,656		279,744		9.6	%
Amortization of acquisition intangibles		5,015		5,022		-0.1	%		20,128		19,859		1.4	%
Total operating expenses		289,352		278,335		4.0	%		1,153,445		1,088,562		6.0	%
Income from operations		155,113		175,447		-11.6	%		682,650		724,069		-5.7	%
Net income	$	92,952	$	106,567		-12.8	%	$	415,904	$	466,179		-10.8	%
Diluted earnings per share	$	0.62	$	0.66		-6.1	%	$	2.65	$	2.74		-3.3	%

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Discussion of Fourth Quarter 2013 Results

Our truckload net revenues decreased 5.6 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. Our truckload volumes increased approximately seven percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. Our North American truckload volumes increased approximately six percent. Our truckload net revenue margin decreased in the fourth quarter of 2013 compared to the fourth quarter of 2012, due primarily to increased cost per mile. In North America, excluding the estimated impacts of the change in fuel, our average truckload rate per mile charged to our customers increased approximately 3.5 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. In North America, our truckload transportation costs increased approximately five percent, excluding the estimated impacts of the change in fuel.

Our less-than-truckload (“LTL”) net revenues increased 3.2 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. The increase was driven by an increase in total shipments of approximately four percent, partially offset by decreased net revenue margin.

Our intermodal net revenues increased 9.4 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. This was due to increased net revenue margin, partially offset by decreased volumes. Our net revenue margin increase was due to a change in our mix of business and improved customer pricing.

Our ocean transportation net revenues increased 37.6 percent, our air transportation net revenues increased 12.8 percent, and our customs net revenues increased 36.7 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. These increases were primarily due to our acquisition of Phoenix in November 2012.

Sourcing net revenues decreased 15.5 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. We continued to experience volume and net revenue declines from a large customer and expect this to continue throughout 2014. Sourcing net revenue margins declined due to weather and changes in our commodity and service mix. Case volumes decreased approximately two percent in the fourth quarter of 2013 compared to the fourth quarter of 2012.

Our Payment Services net revenues decreased 46.5 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012 due to the T-Chek divestiture in the fourth quarter of 2012.

For the fourth quarter, operating expenses decreased 7.0 percent to $289.4 million in 2013 from $311.0 million in 2012. This was due to a decrease of 9.9 percent in personnel expense and an increase of 0.9 percent in other selling, general, and administrative expenses. Operating expenses as a percentage of net revenues decreased to 65.1 percent in the fourth quarter of 2013 from 70.0 percent in 2012. During the fourth quarter of 2012, operating expenses were a higher percentage of net revenues primarily due to $33.0 million of incremental performance-based stock vesting expense as a result of the sale of T-Chek.

For the fourth quarter, personnel expenses decreased 9.9 percent to $203.6 million in 2013 from $226.0 million in 2012. This decrease was primarily due to the performance-based stock vesting expense as a result of sale of T-Chek in 2012. On a pro forma basis, personnel expense increased 2.7 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. This increase was due to growth in our average headcount of approximately 32 percent, related primarily to the acquisitions of the Phoenix in the fourth quarter of 2012. We estimate that our average headcount, excluding acquisitions and divestitures, increased approximately eight percent in the fourth quarter of 2013 compared to 2012. The increase in personnel expense from headcount growth was partially offset by declines in expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability.

For the fourth quarter, other selling, general, and administrative expenses increased 0.9 percent to $85.7 million in 2013 from $85.0 million in 2012. In the fourth quarter of 2012, we had approximately $9.1 million of non-recurring acquisition and divestiture expenses. On a pro forma basis, selling, general, and administrative expense increased 7.1 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012. This increase was primarily due to Phoenix operations and a higher provision for bad debt.

Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 46,000 active customers through a network of 285 offices in North America, South America, Europe, Asia, and Australia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 63,000 transportation providers worldwide.

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

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ability to integrate the operations of acquired companies with our historic operations successfully; 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; 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.

Non-GAAP vs. GAAP Financial and Pro Forma Financial Measures

To assist investors in understanding our financial performance, we supplement the financial results that are generated in accordance with the accounting principles generally accepted in the United States, or GAAP, with non-GAAP financial measures from time to time. We use non-GAAP measures, including those set forth in this release, to assess our operating performance for the quarter. Management believes that these non-GAAP financial measures reflect an additional way of analyzing aspects of our ongoing operations that, when viewed with our GAAP results, provides a more complete understanding of the factors and trends affecting our business. However, non-GAAP results should not be regarded as a substitute for corresponding GAAP measures, and should be viewed in conjunction with our consolidated financial statements prepared in accordance with GAAP. To provide investors with information to assist them in assessing our financial results on a comparable basis with historical results, we have provided certain non-GAAP financial measures in this press release that include the effects of the disposition of T-Chek and the acquisition of Phoenix as if they had occurred at the beginning of our 2012 fiscal year.

A reconciliation of our reported results to pro forma financial measures for the quarter ended December 31, 2012 is as follows (dollars in thousands):

	Reported		Non-Recurring Acquisition Impact(1)			T-Chek Operations (2)			Phoenix Operations (2)			Pro Forma
Total revenues	$	2,970,876	$	—		$	(2,290	)	$	70,009		$	3,038,595
Purchased transportation and related services		2,176,789		—			—			58,569			2,235,358
Purchased products sourced for resale		348,936		—			—			—			348,936
Purchased payment services		519		—			—			—			519
Total purchased services and products		2,526,244		—			—			58,569			2,584,813
Net revenues (3)		444,632		—			(2,290	)		11,440			453,782
Personnel expenses		226,042		(34,592	)		(609	)		7,466			198,307
Selling, general and administrative expenses		81,319		(9,115	)		(479	)		3,281			75,006
Amortization of acquisition intangibles		3,667		—			—			1,355			5,022
Total other operating expenses		311,028		(43,707	)		(1,088	)		12,102			278,335
Income from operations		133,604		43,707			(1,202	)		(662	)		175,447
Investment and other income		282,166		(281,551	)		1			(1,369	)		(753	)
Income before provision for income taxes		415,770		(237,844	)		(1,201	)		(2,031	)		174,694
Provision for income taxes		159,378		(90,023	)		(480	)		(748	)		68,127
Net income	$	256,392	$	(147,821	)	$	(721	)	$	(1,283	)	$	106,567
Net income per share (diluted)	$	1.58										$	0.66
Weighted average shares outstanding		161,799		(1,190	)		—			1,108			161,717

1. The adjustment to personnel consists of $33 million of incremental vesting expense of our equity awards triggered by the gain on the divestiture of T-Chek. The balance consists of transaction-related bonuses. The adjustments to other operating expenses reflect fees paid to third parties for investment banking fees related to the acquisition of Phoenix and external legal and accounting fees related to the acquisitions of Apreo Logistics S.A. (“Apreo”) and Phoenix International Freight Services, Ltd. (“Phoenix”) and the divestiture of T-Chek. The adjustment to investment and other income reflects the gain from the divestiture of T-Chek. The adjustment to diluted weighted average shares outstanding relates to the shares of C.H. Robinson

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stock issued as consideration paid to the sellers in the acquisition of Phoenix and the additional vesting of performance-based restricted stock as a result of the gain on sale recognized from the divestiture of T-Chek.

2. Adjustments have been made to historical Phoenix operations for the addition of amortization expense of finite-lived intangible assets recorded in connection with the acquisition ($1.4 million), rent expense for lease agreements entered into in connection with the acquisition ($28 thousand), depreciation on a building acquired in the acquisition ($12 thousand), and incremental interest expense on the borrowings associated with the acquisition ($213 thousand). Adjustments have been made for the elimination of additional bonuses ($1.4 million) and third party advisory fees ($582 thousand) paid by Phoenix. An adjustment has also been made to reduce purchased transportation and related services ($2.5 million) and other selling, general, and administrative expenses ($5.0 million) and to increase personnel expenses ($7.5 million) to conform to C.H. Robinson’s historical financial reporting presentation. The adjustment to diluted weighted average shares outstanding relates to the shares of C.H. Robinson stock issued as consideration paid to the sellers in the acquisition of Phoenix. There were no pro forma adjustments to the T-Chek historical results.

3. Net revenues are our total revenues less purchased transportation and related services, including contracted motor carrier, rail, ocean, air, and other costs, and the purchased price and services related to the products we source.

A reconciliation of our reported results to pro forma financial measures for the twelve months ended December 31, 2012 is as follows (dollars in thousands):

	Reported		Non-Recurring Acquisition Impact(1)			T-Chek Operations (2)			Phoenix Operations (2)			Pro Forma
Total revenues	$	11,359,113	$	—		$	(41,623	)	$	692,836		$	12,010,326
Purchased transportation and related services		8,157,278		—			—			556,153			8,713,431
Purchased products sourced for resale		1,483,745		—			—			—			1,483,745
Purchased payment services		519		—			—			—			519
Total purchased services and products		9,641,542		—			—			556,153			10,197,695
Net revenues (3)		1,717,571		—			(41,623	)		136,683			1,812,631
Personnel expenses		766,006		(34,592	)		(11,819	)		69,364			788,959
Selling, general and administrative expenses		269,941		(10,604	)		(9,226	)		29,633			279,744
Amortization of acquisition intangibles		6,304		—			—			13,555			19,859
Total other operating expenses		1,042,251		(45,196	)		(21,045	)		112,552			1,088,562
Income from operations		675,320		45,196			(20,578	)		24,131			724,069
Investment and other income		283,142		(281,551	)		(67	)		(5,348	)		(3,824	)
Income before provision for income taxes		958,462		(236,355	)		(20,645	)		18,783			720,245
Provision for income taxes		364,658		(89,558	)		(7,841	)		6,807			274,066
Net income	$	593,804	$	(146,797	)	$	(12,804	)	$	11,976		$	446,179
Net income per share (diluted)	$	3.67										$	2.74
Weighted average shares outstanding		161,946		(277	)		—			1,108			162,777

1. The adjustment to personnel consists of $33 million of incremental vesting expense of our equity awards triggered by the gain on the divestiture of T-Chek. The balance consists of transaction-related bonuses. The adjustments to other operating expenses reflect fees paid to third parties for investment banking fees related to the acquisition of Phoenix and external legal and accounting fees related to the acquisitions of Apreo and Phoenix and the divestiture of T-Chek. The adjustment to investment and other income reflects the gain from the divestiture of T-Chek. The adjustment to diluted weighted average shares outstanding relates to the shares of C.H. Robinson stock issued as consideration paid to the sellers in the acquisition of Phoenix and the additional vesting of performance-based restricted stock as a result of the gain on sale recognized from the divestiture of T-Chek.

2. Adjustments have been made to historical Phoenix operations for addition of amortization expense of finite-lived intangible assets recorded in connection with the acquisition ($13.6 million), rent expense for lease agreements entered into in

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connection with the acquisition ($280 thousand), depreciation on a building acquired in the acquisition ($123 thousand), and incremental interest expense on the borrowings associated with the acquisition ($2.1 million). Adjustments have been made for the elimination of contractual changes in compensation ($5.1 million), and additional bonuses ($1.4 million) and third party advisory fees ($582 thousand) paid by Phoenix. An adjustment has also been made to reduce purchased transportation and related services ($24.4 million) and other selling, general, and administrative expenses ($50.1 million) and to increase personnel expenses ($74.5 million) to conform to C.H. Robinson’s historical financial reporting presentation. The adjustment to diluted weighted average shares outstanding relates to the shares of C.H. Robinson stock issued as consideration paid to the sellers in the acquisition of Phoenix. There were no pro forma adjustments to the T-Chek historical results.

3. Net revenues are our total revenues less purchased transportation and related services, including contracted motor carrier, rail, ocean, air, and other costs, and the purchased price and services related to the products we source.

Conference Call Information:

C.H. Robinson Worldwide Fourth Quarter 2013 Earnings Conference Call

Wednesday February 5, 2014 8:30 a.m. Eastern Time

The call will be limited to 60 minutes, including questions and answers. 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. If time permits, we will accept live questions. To submit your question(s) in advance of the call, please emailtim.gagnon@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 atwww.chrobinson.com

To participate in the conference call by telephone, please call ten minutes early by dialing: 877-941-0844

Callers should reference the conference ID, which is 4660962#

Webcast replay available through Investor Relations link atwww.chrobinson.com

Telephone audio replay available until 12:59 a.m. Eastern Time on February 7: 800-406-7325; passcode: 4660962#

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

	Three months ended December 31,					Twelve months ended December 31,
	2013			2012		2013			2012
Revenues:
Transportation	$	2,767,550		$	2,585,930	$	11,069,710		$	9,685,415
Sourcing		382,098			379,479		1,669,134			1,620,183
Payment Services		3,234			5,467		13,232			53,515
Total revenues		3,152,882			2,970,876		12,752,076			11,359,113
Costs and expenses:
Purchased transportation and related services		2,351,530			2,176,789		9,371,315			8,157,278
Purchased products sourced for resale		356,299			348,936		1,542,184			1,483,745
Purchased payment services		588			519		2,482			519
Personnel expenses		203,619			226,042		826,661			766,006
Other selling, general, and administrative expenses		85,733			84,986		326,784			276,245
Total costs and expenses		2,997,769			2,837,272		12,069,426			10,683,793
Income from operations		155,113			133,604		682,650			675,320
Investment, interest, and other (expense) income		(6,005	)		282,166		(9,289	)		283,142
Income before provision for income taxes		149,108			415,770		673,361			958,462
Provision for income taxes		56,156			159,378		257,457			364,658
Net income	$	92,952		$	256,392	$	415,904		$	593,804
Net income per share (basic)	$	0.62		$	1.59	$	2.65		$	3.68
Net income per share (diluted)	$	0.62		$	1.58	$	2.65		$	3.67
Weighted average shares outstanding (basic)		150,856			160,880		156,915			161,557
Weighted average shares outstanding (diluted)		151,130			161,799		157,080			161,946

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CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

	December 31, 2013		December 31, 2012
Assets
Current assets:
Cash and cash equivalents	$	162,047	$	210,019
Receivables, net		1,449,581		1,412,136
Other current assets		52,857		50,135
Total current assets		1,664,485		1,672,290
Property and equipment, net		160,703		149,851
Intangible and other assets		977,630		982,084
Total assets	$	2,802,818	$	2,804,225
Liabilities and stockholders’ investment
Current liabilities:
Accounts payable and outstanding checks	$	755,007	$	707,476
Accrued compensation		85,247		103,343
Accrued income taxes		11,681		121,581
Other accrued expenses		43,046		46,171
Current portion of debt		375,000		253,646
Total current liabilities		1,269,981		1,232,217
Noncurrent income taxes payable		21,584		20,590
Deferred tax liabilities		70,618		45,113
Long-term debt		500,000		—
Other long term liabilities		911		1,933
Total liabilities		1,863,094		1,299,853
Total stockholders’ investment		939,724		1,504,372
Total liabilities and stockholders’ investment	$	2,802,818	$	2,804,225

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands, except operational data)

	Twelve months ended December 31,
	2013			2012
Operating activities:
Net income	$	415,904		$	593,804
Stock-based compensation		9,094			59,381
Depreciation and amortization		56,882			38,090
Provision for doubtful accounts		15,587			10,459
Gain on divestiture		—			(281,551	)
Deferred income taxes		25,226			(14,442	)
Other		319			3,721
Changes in operating elements
Receivables		(87,316	)		(88,107	)
Prepaid expenses and other		(5,254	)		5,260
Accounts payable and outstanding checks		47,488			61,732
Accrued compensation		(15,097	)		(19,064	)
Accrued income taxes		(105,857	)		104,542
Other accrued liabilities		(9,199	)		(13,483	)
Net cash provided by operating activities		347,777			460,342
Investing activities:
Purchases of property and equipment		(40,354	)		(36,096	)
Purchases and development of software		(7,852	)		(14,560	)
Sale of T-Chek, net of cash sold		—			274,802
Cash paid for acquisitions, net of cash acquired		19,126			(583,631	)
Other		221			419
Net cash used for investing activities		(28,859	)		(359,066	)
Financing activities:
Borrowings on line of credit		4,165,023			324,051
Repayments on line of credit		(4,043,669	)		(75,688	)
Borrowings of long-term debt		500,000			—
Payment of contingent purchase price		(927	)		(12,661	)
Net repurchases of common stock		(792,283	)		(236,981	)
Excess tax benefit on stock-based compensation		27,209			12,294
Cash dividends		(220,257	)		(275,353	)
Net cash used for financing activities		(364,904	)		(264,338	)
Effect of exchange rates on cash		(1,986	)		(588	)
Net change in cash and cash equivalents		(47,972	)		(163,650	)
Cash and cash equivalents, beginning of period		210,019			373,669
Cash and cash equivalents, end of period	$	162,047		$	210,019
	As of December 31,
	2013			2012
Operational Data:
Employees		11,676			10,929
Branches		285			276

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