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

Exhibit 99.1

C.H. Robinson Worldwide, Inc.

14701 Charlson Road

Eden Prairie, Minnesota 55347

Andrew Clarke, Chief Financial Officer (952) 683-3474

Tim Gagnon, Director, Investor Relations (952) 683-5007

FOR IMMEDIATE RELEASE

C.H. ROBINSON REPORTS SECOND QUARTER RESULTS

MINNEAPOLIS, July 26, 2016 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2016. Summarized financial results are as follows (dollars in thousands, except per share data):

	Three months ended June 30,							Six months ended June 30,
	2016		2015		% change			2016		2015		% change
Total revenues	$	3,299,741	$	3,545,088		-6.9	%	$	6,373,684	$	6,845,978		-6.9	%
Net revenues:
Transportation
Truckload	$	329,740	$	334,546		-1.4	%	$	651,424	$	632,926		2.9	%
LTL		99,778		91,524		9.0	%		191,071		176,894		8.0	%
Intermodal		9,021		11,539		-21.8	%		18,285		22,051		-17.1	%
Ocean		60,068		59,066		1.7	%		118,737		109,256		8.7	%
Air		20,118		19,596		2.7	%		38,527		40,235		-4.2	%
Customs		11,605		10,973		5.8	%		22,329		21,236		5.1	%
Other logistics services		26,171		21,104		24.0	%		50,194		40,895		22.7	%
Total transportation		556,501		548,348		1.5	%		1,090,567		1,043,493		4.5	%
Sourcing		37,714		35,670		5.7	%		66,983		65,635		2.1	%
Total net revenues		594,215		584,018		1.7	%		1,157,550		1,109,128		4.4	%
Operating expenses		360,468		354,923		1.6	%		724,851		698,108		3.8	%
Operating income		233,747		229,095		2.0	%		432,699		411,020		5.3	%
Net income	$	143,090	$	137,208		4.3	%	$	262,053	$	243,684		7.5	%
Diluted EPS	$	1.00	$	0.94		6.4	%	$	1.83	$	1.67		9.6	%

Our truckload net revenues decreased 1.4 percent in the second quarter of 2016 compared to the second quarter of 2015. Our total truckload volumes increased approximately three percent in the second quarter of 2016 compared to the second quarter of 2015. North American truckload volumes also increased approximately three percent over the same period. Our truckload net revenue margin increased in the second quarter of 2016 compared to the second quarter of 2015, due primarily to lower transportation costs. In North America, excluding the estimated impacts of the change in fuel prices, our average truckload rate per mile charged to our customers decreased approximately 7.5 percent in the second quarter of 2016 compared to the second quarter of 2015. In North America, our truckload transportation costs decreased approximately eight percent, excluding the estimated impacts of the change in fuel prices.

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C.H. Robinson Worldwide, Inc.

July 26, 2016

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Our less than truckload (“LTL”) net revenues increased nine percent in the second quarter of 2016 compared to the second quarter of 2015. LTL volumes increased approximately seven percent in the second quarter of 2016 compared to the second quarter of 2015. Net revenue margin increased in the second quarter of 2016 compared to the second quarter of 2015.

Our intermodal net revenues decreased 21.8 percent in the second quarter of 2016 compared to the second quarter of 2015. This was primarily due to decreased volumes and net revenue margin declines. During the second quarter of 2016, intermodal opportunities were negatively impacted by the alternative lower cost truck market.

Our ocean transportation net revenues increased 1.7 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase in net revenues was primarily due to increased net revenue margin and volumes, offset partially by pricing declines.

Our air transportation net revenues increased 2.7 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase was due to increased net revenue margin and an increase in volumes, offset partially by pricing declines.

Our customs net revenues increased 5.8 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase was primarily due to increased transaction volumes.

Our other logistics services net revenues, which includes managed services, warehousing, and small parcel, increased 24.0 percent in the second quarter of 2016 compared to the second quarter of 2015 primarily from growth in managed services.

Sourcing net revenues increased 5.7 percent in the second quarter of 2016 compared to the second quarter of 2015. This increase was primarily due to a case volume increase across a variety of commodities and services and an increase in net revenue per case.

For the second quarter, operating expenses increased 1.6 percent to $360.5 million in 2016 from $354.9 million in 2015. Operating expenses as a percentage of net revenues decreased to 60.7 percent in the second quarter of 2016 from 60.8 percent in the second quarter of 2015.

For the second quarter, personnel expenses increased 2.4 percent to $270.3 million in 2016 from $264.0 million in 2015. For the second quarter, our average headcount grew 5.2 percent compared to the second quarter of 2015. The increase in personnel expense was less than the increase in average headcount due to decreased expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability.

For the second quarter, other selling, general, and administrative expenses decreased 0.8 percent to $90.2 million in 2016 from $90.9 million in 2015. This was primarily due to a decrease in the allowance for doubtful accounts, partially offset by increases in other areas including travel expenses.

About C.H. Robinson

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 110,000 active customers through a network of offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 68,000 transportation providers worldwide.

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C.H. Robinson Worldwide, Inc.

July 26, 2016

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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 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.

Conference Call Information:

C.H. Robinson Worldwide Second Quarter 2016 Earnings Conference Call

Wednesday, July 27, 2016 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. 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: 877-269-7756

International callers dial +1-201-689-7817

Callers should reference the conference ID, which is 13640751

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

Telephone audio replay available until 11:30 a.m. Eastern Time on August 4, 2016: 877-660-6853;

passcode: 13640751#

International callers dial +1-201-612-7415

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C.H. Robinson Worldwide, Inc.

July 26, 2016

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Revenues:
Transportation	$	2,881,496		$	3,130,722		$	5,595,184		$	6,077,979
Sourcing		418,245			414,366			778,500			767,999
Total revenues		3,299,741			3,545,088			6,373,684			6,845,978
Costs and expenses:
Purchased transportation and related services		2,324,995			2,582,374			4,504,617			5,034,486
Purchased products sourced for resale		380,531			378,696			711,517			702,364
Personnel expenses		270,251			263,999			547,748			519,143
Other selling, general, and administrative expenses		90,217			90,924			177,103			178,965
Total costs and expenses		3,065,994			3,315,993			5,940,985			6,434,958
Income from operations		233,747			229,095			432,699			411,020
Interest and other expense		(6,265	)		(5,894	)		(15,037	)		(15,499	)
Income before provision for income taxes		227,482			223,201			417,662			395,521
Provisions for income taxes		84,392			85,993			155,609			151,837
Net income	$	143,090		$	137,208		$	262,053		$	243,684
Net income per share (basic)	$	1.00		$	0.94		$	1.83		$	1.67
Net income per share (diluted)	$	1.00		$	0.94		$	1.83		$	1.67
Weighted average shares outstanding (basic)		142,998			145,515			143,259			145,856
Weighted average shares outstanding (diluted)		143,216			145,679			143,437			146,020

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July 26, 2016

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CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
	June 30, 2016		December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	207,083	$	168,229
Receivables, net		1,602,631		1,505,620
Other current assets		69,388		56,849
Total current assets		1,879,102		1,730,698
Property and equipment, net		211,905		190,874
Intangible and other assets		1,258,063		1,262,786
Total assets	$	3,349,070	$	3,184,358
Liabilities and stockholders’ investment
Current liabilities:
Accounts payable and outstanding checks	$	836,721	$	783,883
Accrued compensation		84,648		146,666
Accrued income taxes		42,094		12,573
Other accrued expenses		62,994		55,475
Current portion of debt		465,000		450,000
Total current liabilities		1,491,457		1,448,597
Noncurrent income taxes payable		18,615		19,634
Deferred tax liabilities		75,937		65,460
Long-term debt		500,000		500,000
Other long term liabilities		221		217
Total liabilities		2,086,230		2,033,908
Total stockholders’ investment		1,262,840		1,150,450
Total liabilities and stockholders’ investment	$	3,349,070	$	3,184,358

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July 26, 2016

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands, except operational data)

	Six months ended June 30,
	2016			2015
Operating activities:
Net income	$	262,053		$	243,684
Stock-based compensation		25,785			31,019
Depreciation and amortization		35,059			32,682
Provision for doubtful accounts		2,144			9,053
Deferred income taxes		17,004			(1,780	)
Other		366			438
Changes in operating elements, net of acquisitions:
Receivables		(94,030	)		(87,663	)
Prepaid expenses and other		(19,066	)		(19,802	)
Other non-current assets		(1,615	)		736
Accounts payable and outstanding checks		52,843			56,891
Accrued compensation and profit-sharing contribution		(61,029	)		(32,027	)
Accrued income taxes		28,502			21,230
Other accrued liabilities		(755	)		(3,265	)
Net cash provided by operating activities		247,261			251,196
Investing activities:
Purchases of property and equipment		(33,483	)		(11,542	)
Purchases and development of software		(10,493	)		(8,063	)
Restricted cash		—			359,388
Acquisitions, net of cash		—			(369,143	)
Other		(405	)		361
Net cash used for investing activities		(44,381	)		(28,999	)
Financing activities:
Borrowings on line of credit		2,840,000			3,893,000
Repayments on line of credit		(2,825,000	)		(3,868,000	)
Net repurchases of common stock		(66,249	)		(90,255	)
Excess tax benefit on stock-based compensation		15,104			6,040
Cash dividends		(127,520	)		(114,517	)
Net cash used for financing activities		(163,665	)		(173,732	)
Effect of exchange rates on cash		(361	)		(5,954	)
Net change in cash and cash equivalents		38,854			42,511
Cash and cash equivalents, beginning of period		168,229			128,940
Cash and cash equivalents, end of period	$	207,083		$	171,451
	As of June 30,
	2016			2015
Operational Data:
Employees		13,701			13,068

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