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     105  0 Kommentare C.H. Robinson Reports 2024 First Quarter Results

    C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended March 31, 2024.

    First Quarter Key Metrics:

    • Gross profits decreased 4.5% year-over-year to $647.5 million, but increased 6.3% sequentially
    • Income from operations decreased 21.1% year-over-year to $127.1 million, but increased 18.3% sequentially
    • Adjusted operating margin(1) decreased 420 basis points to 19.3%
    • Diluted earnings per share (EPS) decreased 18.8% to $0.78
    • Adjusted EPS(1) decreased 14.0% year-over-year to $0.86, but increased 72% sequentially
    • Cash from operations decreased by $287.9 million to $33.3 million used by operations

    (1)

    Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 10 through 12 for further discussion and GAAP to Non-GAAP Reconciliations.

     

    "Our first quarter results and adjusted earnings per share of $0.86 reflects a change in our execution and discipline, as we began implementing a new Lean-based operating model. And although we continue to battle through an elongated freight recession with an oversupply of capacity, I’m optimistic about our ability to continue improving our execution regardless of the market environment," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman. "Our new operating model is being deployed at the enterprise, divisional and shared service levels and is evolving our execution and accountability by bringing more structure to our continuous improvement cadence and culture. This new way of operating is starting to enable greater discipline, transparency, urgency and consistency in our decision making, based on data and input metrics that can reliably lead to better outputs. It's also setting the tone of how we operate and hold ourselves accountable, helping us make systemic improvements, build operational muscle and drive value at speed. We began to see the benefits of our new operating model in our first quarter execution."

    "As a result of disciplined pricing and capacity procurement efforts, we executed better across our contractual and transactional portfolios in our NAST business, and in particular, in our truckload business in the first quarter. This resulted in improved optimization of volume and adjusted gross profit per truckload, which improved sequentially despite an increase in our linehaul cost per mile for the full quarter versus the fourth quarter of 2023. Additionally, our first quarter truckload volume reflects growing market share, and we outpaced the market indices for the third quarter in a row," added Bozeman.

    "In what continues to be a difficult environment, our resilient team of freight experts is responding to the challenge and embracing the new operating model and the innovative tools that we continue to arm them with. Our people have a powerful desire to win, and I thank them for their tireless efforts. They continue to be a differentiator for us and for our customers and carriers, and I’m confident in the team's willingness and ability to drive a higher level of discipline in our operational execution. We’re moving in the right direction, and at the same time, everyone understands that we have more work to do," Bozeman concluded.

    Summary of First Quarter of 2024 Results Compared to the First Quarter of 2023

    • Total revenues decreased 4.3% to $4.4 billion, primarily driven by lower pricing in our truckload services, partially offset by higher pricing and increased volume in our ocean services.
    • Gross profits decreased 4.5% to $647.5 million. Adjusted gross profits decreased 4.1% to $657.7 million, primarily driven by lower adjusted gross profit per transaction in truckload.
    • Operating expenses increased 1.1% to $530.6 million. Personnel expenses decreased 1.0% to $379.1 million, primarily due to cost optimization efforts and partially offset by higher restructuring charges related to workforce reductions. Average headcount declined 11.3%. Other selling, general and administrative (“SG&A”) expenses increased 7.1% to $151.5 million, primarily due to favorable credit losses in the prior year and restructuring charges in the current year related to the impairment of internally developed software.
    • Income from operations totaled $127.1 million, down 21.1% due to the decrease in adjusted gross profits. Adjusted operating margin(1) of 19.3% declined 420 basis points.
    • Interest and other income/expense, net totaled $16.8 million of expense, consisting primarily of $22.1 million of interest expense, which decreased $1.5 million versus last year, due to a lower average debt balance, and a $3.9 million net gain from foreign currency revaluation and realized foreign currency gains and losses.
    • The effective tax rate in the quarter was 15.8%, compared to 13.5% in the first quarter last year. The higher rate in the first quarter of this year was driven by lower tax benefits related to stock-based compensation deliveries and higher foreign taxes, partially offset by higher U.S. tax credits and the impact of lower pretax income.
    • Net income totaled $92.9 million, down 19.1% from a year ago. Diluted EPS of $0.78 decreased 18.8%. Adjusted EPS(1) of $0.86 decreased 14.0%.

    (1)

    Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 10 through 12 for further discussion and GAAP to Non-GAAP Reconciliations.

     

    North American Surface Transportation (“NAST”) Results

    Summarized financial results of our NAST segment are as follows (dollars in thousands):

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

    Total revenues

    $

    3,000,313

     

    $

    3,304,187

     

    (9.2

    )%

    Adjusted gross profits(1)

     

    397,110

     

     

    426,655

     

    (6.9

    )%

    Income from operations

     

    108,895

     

     

    134,022

     

    (18.7

    )%

    ____________________________________________

    (1)

    Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

    First quarter total revenues for the NAST segment totaled $3.0 billion, a decrease of 9.2% over the prior year, primarily driven by lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. NAST adjusted gross profits decreased 6.9% in the quarter to $397.1 million. Adjusted gross profits in truckload decreased 9.9% due to a 9.5% decrease in adjusted gross profit per shipment and a 0.5% decline in truckload shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, decreased approximately 7.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, also decreased approximately 7.5%, resulting in an 8.5% decrease in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 1.7% versus the year-ago period, driven by a 3.0% increase in LTL volume, partially offset by a 1.0% decrease in adjusted gross profit per order. NAST overall volume growth increased 1.5% for the quarter. Operating expenses decreased 1.5%, primarily due to lower technology expenses which were partially offset by a benefit in the prior year from lower credit losses. NAST average employee headcount was down 12.6% in the quarter. Income from operations decreased 18.7% to $108.9 million, and adjusted operating margin declined 400 basis points to 27.4%.

    Global Forwarding Results

    Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

    Total revenues

    $

    858,637

     

    $

    789,978

     

    8.7

    %

    Adjusted gross profits(1)

     

    180,045

     

     

    177,919

     

    1.2

    %

    Income from operations

     

    31,552

     

     

    30,116

     

    4.8

    %

    ____________________________________________

    (1)

    Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

    First quarter total revenues for the Global Forwarding segment increased 8.7% to $858.6 million, primarily driven by higher pricing and increased volume in our ocean services. Adjusted gross profits increased 1.2% in the quarter to $180.0 million. Ocean adjusted gross profits increased 2.5%, driven by a 7.0% increase in shipments, partially offset by a 4.0% decrease in adjusted gross profit per shipment. Air adjusted gross profits decreased 2.4%, driven by a 20.5% decrease in adjusted gross profit per metric ton shipped, partially offset by a 23.0% increase in metric tons shipped. Customs adjusted gross profits increased 11.8%, driven by an 8.5% increase in transaction volume and a 3.5% increase in adjusted gross profit per transaction. Operating expenses increased 0.5%, primarily due to higher variable compensation. First quarter average employee headcount decreased 10.9%. Income from operations increased 4.8% to $31.6 million, and adjusted operating margin expanded 60 basis points to 17.5% in the quarter.

    All Other and Corporate Results

    Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

    Total revenues

    $

    553,361

     

    $

    517,505

     

    6.9

    %

    Adjusted gross profits(1):

     

     

     

     

     

    Robinson Fresh

    $

    33,736

     

    $

    31,145

     

    8.3

    %

    Managed Services

     

    28,936

     

     

    28,970

     

    (0.1

    )%

    Other Surface Transportation

     

    17,902

     

     

    20,951

     

    (14.6

    )%

    ____________________________________________

    (1)

    Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

    First quarter Robinson Fresh adjusted gross profits increased 8.3% to $33.7 million due to a 1.5% increase in case volume and integrated supply chain solutions for retail customers. Managed Services adjusted gross profits decreased 0.1%. Other Surface Transportation adjusted gross profits decreased 14.6% to $17.9 million, primarily due to a 16.9% decrease in Europe truckload adjusted gross profits.

    Other Income Statement Items

    The first quarter effective tax rate was 15.8%, up from 13.5% last year. The higher rate in the first quarter of this year was driven by lower tax benefits related to stock-based compensation deliveries and higher foreign taxes, partially offset by higher U.S. tax credits and the impact of lower pretax income. For 2024, we expect our full-year effective tax rate to be 17% to 19%.

    Interest and other income/expense, net totaled $16.8 million of expense, consisting primarily of $22.1 million of interest expense, which decreased $1.5 million versus the first quarter of 2023 due to a lower average debt balance, and a $3.9 million net gain from foreign currency revaluation and realized foreign currency gains and losses.

    Diluted weighted average shares outstanding in the quarter were down 0.3% due to lower dilutive impact of equity awards.

    Cash Flow Generation and Capital Distribution

    Cash used by operations totaled $33.3 million in the first quarter, compared to $254.5 million of cash generated from operations in the first quarter of 2023. The $287.9 million decrease in cash flow from operations was primarily related to a $369.5 million decline in cash provided by changes in net operating working capital, due to a $134.6 million sequential increase in net operating working capital in the first quarter of 2024 compared to a $234.9 million sequential decrease in the first quarter of 2023.

    In the first quarter of 2024, cash returned to shareholders totaled $90.7 million, with $74.6 million in cash dividends and $16.1 million in repurchases of common stock.

    Capital expenditures totaled $22.5 million in the quarter. Capital expenditures for 2024 are expected to be $85 million to $95 million.

    About C.H. Robinson

    C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $22 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 90,000 customers and the more than 450,000 contract carriers on our platform. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

    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, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; 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 First Quarter 2024 Earnings Conference Call
    Wednesday, May 1, 2024; 5:00 p.m. Eastern Time
    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 at www.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

     
     
     

    Adjusted Gross Profit by Service Line
    (in thousands) 

     

    This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines. 

     

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

    Adjusted gross profits(1):

     

     

     

     

     

    Transportation

     

     

     

     

     

    Truckload

    $

    257,413

     

    $

    288,654

     

    (10.8

    )%

    LTL

     

    141,136

     

     

    138,637

     

    1.8

    %

    Ocean

     

    112,858

     

     

    110,079

     

    2.5

    %

    Air

     

    30,532

     

     

    31,317

     

    (2.5

    )%

    Customs

     

    26,095

     

     

    23,334

     

    11.8

    %

    Other logistics services

     

    59,558

     

     

    64,913

     

    (8.2

    )%

    Total transportation

     

    627,592

     

     

    656,934

     

    (4.5

    )%

    Sourcing

     

    30,137

     

     

    28,706

     

    5.0

    %

    Total adjusted gross profits

    $

    657,729

     

    $

    685,640

     

    (4.1

    )%

    ____________________________________________

    (1)

    Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

     
     
     
     

    GAAP to Non-GAAP Reconciliation
    (unaudited, in thousands) 

     

    Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands): 

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

    Revenues:

     

     

     

     

     

    Transportation

    $

    4,082,588

     

    $

    4,327,965

     

    (5.7

    )%

    Sourcing

     

    329,723

     

     

    283,705

     

    16.2

    %

    Total revenues

     

    4,412,311

     

     

    4,611,670

     

    (4.3

    )%

    Costs and expenses:

     

     

     

     

     

    Purchased transportation and related services

     

    3,454,996

     

     

    3,671,031

     

    (5.9

    )%

    Purchased products sourced for resale

     

    299,586

     

     

    254,999

     

    17.5

    %

    Direct internally developed software amortization

     

    10,222

     

     

    7,317

     

    39.7

    %

    Total direct expenses

     

    3,764,804

     

     

    3,933,347

     

    (4.3

    )%

    Gross profit

    $

    647,507

     

    $

    678,323

     

    (4.5

    )%

    Plus: Direct internally developed software amortization

     

    10,222

     

     

    7,317

     

    39.7

    %

    Adjusted gross profit

    $

    657,729

     

    $

    685,640

     

    (4.1

    )%

     

    Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring. We believe adjusted operating margin and adjusted operating margin - excluding restructuring are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring are presented below: 

     

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

     

     

     

     

     

     

    Total revenues

    $

    4,412,311

     

     

    $

    4,611,670

     

     

    (4.3

    %)

    Income from operations

     

    127,133

     

     

     

    161,033

     

     

    (21.1

    %)

    Operating margin

     

    2.9

    %

     

     

    3.5

    %

     

    (60) bps

     

     

     

     

     

     

    Adjusted gross profit

    $

    657,729

     

     

    $

    685,640

     

     

    (4.1

    %)

    Income from operations

     

    127,133

     

     

     

    161,033

     

     

    (21.1

    %)

    Adjusted operating margin

     

    19.3

    %

     

     

    23.5

    %

     

    (420) bps

     

     

     

     

     

     

    Adjusted gross profit

    $

    657,729

     

     

    $

    685,640

     

     

    (4.1

    %)

    Adjusted income from operations

     

    140,076

     

     

     

    164,755

     

     

    (15.0

    %)

    Adjusted operating margin - excluding restructuring

     

    21.3

    %

     

     

    24.0

    %

     

    (270) bps

     
     
     
     

    GAAP to Non-GAAP Reconciliation
    (unaudited, in thousands) 

     

    Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) excluding the impact of restructuring. The adjustments to net income per share (diluted) include restructuring-related costs and a foreign currency loss on divested operations. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted). The reconciliation of income (loss) from operations to adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) to adjusted income (loss) from operations and adjusted net income per share (diluted) is presented below (in thousands except per share data): 

     

     

    NAST

     

    Global

    Forwarding

     

    All Other

    and Corporate

     

    Consolidated

    Three Months Ended March 31, 2024

     

     

     

     

     

     

     

    Non-GAAP Reconciliation:

     

     

     

     

     

     

     

    Income (loss) from operations

    $

    108,895

     

     

    $

    31,552

     

     

    $

    (13,314

    )

     

    $

    127,133

     

    Severance and other personnel expenses

     

    3,026

     

     

     

    3,215

     

     

     

    1,701

     

     

     

    7,942

     

    Other selling, general, and administrative expenses

     

    1,878

     

     

     

    261

     

     

     

    2,862

     

     

     

    5,001

     

    Total adjustments to income (loss) from operations(1)

     

    4,904

     

     

     

    3,476

     

     

     

    4,563

     

     

     

    12,943

     

    Adjusted income (loss) from operations

    $

    113,799

     

     

    $

    35,028

     

     

    $

    (8,751

    )

     

    $

    140,076

     

     

     

     

     

     

     

     

     

    Adjusted gross profit

    $

    397,110

     

     

    $

    180,045

     

     

    $

    80,574

     

     

    $

    657,729

     

    Adjusted income (loss) from operations

     

    113,799

     

     

     

    35,028

     

     

     

    (8,751

    )

     

     

    140,076

     

    Adjusted operating margin - excluding restructuring

     

    28.7

    %

     

     

    19.5

    %

     

     

    N/M

     

     

     

    21.3

    %

     

     

    Three Months Ended March 31, 2024

     

    $ in 000's

     

    per share

    Net income and per share (diluted)

    $

    92,904

     

     

    $

    0.78

     

    Restructuring and related costs, pre-tax(1)

     

    12,943

     

     

     

    0.11

     

    Tax effect of adjustments

     

    (3,101

    )

     

     

    (0.03

    )

    Adjusted net income and per share (diluted)

    $

    102,746

     

     

    $

    0.86

     

    ____________________________________________

    (1)

    The three months ended March 31, 2024 include restructuring expenses of $7.9 million related to workforce reductions and $5.0 million of other charges, primarily related to an impairment of internally developed software due to reprioritizing the efforts of our product and technology teams on fewer initiatives to accelerate the capabilities of our platform.

     
     
     

     

    NAST

     

    Global

    Forwarding

     

    All Other

    and Corporate

     

    Consolidated

    Three Months Ended March 31, 2023

     

     

     

     

     

     

     

    Non-GAAP Reconciliation:

     

     

     

     

     

     

     

    Income (loss) from operations

    $

    134,022

     

     

    $

    30,116

     

     

    $

    (3,105

    )

     

    $

    161,033

     

    Severance and other personnel expenses

     

    829

     

     

     

    1,538

     

     

     

    1,231

     

     

     

    3,598

     

    Other selling, general, and administrative expenses

     

     

     

     

    124

     

     

     

     

     

     

    124

     

    Total adjustments to income (loss) from operations(1)

     

    829

     

     

     

    1,662

     

     

     

    1,231

     

     

     

    3,722

     

    Adjusted income (loss) from operations

    $

    134,851

     

     

    $

    31,778

     

     

    $

    (1,874

    )

     

    $

    164,755

     

     

     

     

     

     

     

     

     

    Adjusted gross profit

    $

    426,655

     

     

    $

    177,919

     

     

    $

    81,066

     

     

    $

    685,640

     

    Adjusted income (loss) from operations

     

    134,851

     

     

     

    31,778

     

     

     

    (1,874

    )

     

     

    164,755

     

    Adjusted operating margin - excluding restructuring

     

    31.6

    %

     

     

    17.9

    %

     

     

    N/M

     

     

     

    24.0

    %

     

     

    Three Months Ended March 31, 2023

     

    $ in 000's

     

    per share

    Net income and per share (diluted)

    $

    114,891

     

     

    $

    0.96

     

    Restructuring and related costs, pre-tax(1)

     

    3,722

     

     

     

    0.03

     

    Foreign currency loss on divested operations, pre-tax

     

    1,757

     

     

     

    0.02

     

    Tax effect of adjustments

     

    (894

    )

     

     

    (0.01

    )

    Adjusted net income and per share (diluted)

    $

    119,476

     

     

    $

    1.00

     

    ____________________________________________

    (1)

    The three months ended March 31, 2023 includes restructuring expenses of $3.6 million related to workforce reductions and $0.1 million of other charges.

     
     
     
     

    Condensed Consolidated Statements of Income
    (unaudited, in thousands, except per share data) 

     

     

    Three Months Ended March 31,

     

    2024

     

    2023

     

    % change

     

     

     

     

     

     

    Revenues:

     

     

     

     

     

    Transportation

    $

    4,082,588

     

     

    $

    4,327,965

     

     

    (5.7

    )%

    Sourcing

     

    329,723

     

     

     

    283,705

     

     

    16.2

    %

    Total revenues

     

    4,412,311

     

     

     

    4,611,670

     

     

    (4.3

    )%

    Costs and expenses:

     

     

     

     

     

    Purchased transportation and related services

     

    3,454,996

     

     

     

    3,671,031

     

     

    (5.9

    )%

    Purchased products sourced for resale

     

    299,586

     

     

     

    254,999

     

     

    17.5

    %

    Personnel expenses

     

    379,087

     

     

     

    383,106

     

     

    (1.0

    )%

    Other selling, general, and administrative expenses

     

    151,509

     

     

     

    141,501

     

     

    7.1

    %

    Total costs and expenses

     

    4,285,178

     

     

     

    4,450,637

     

     

    (3.7

    )%

    Income from operations

     

    127,133

     

     

     

    161,033

     

     

    (21.1

    )%

    Interest and other income/expense, net

     

    (16,780

    )

     

     

    (28,265

    )

     

    (40.6

    )%

    Income before provision for income taxes

     

    110,353

     

     

     

    132,768

     

     

    (16.9

    )%

    Provision for income taxes

     

    17,449

     

     

     

    17,877

     

     

    (2.4

    )%

    Net income

    $

    92,904

     

     

    $

    114,891

     

     

    (19.1

    )%

     

     

     

     

     

     

    Net income per share (basic)

    $

    0.78

     

     

    $

    0.97

     

     

    (19.6

    )%

    Net income per share (diluted)

    $

    0.78

     

     

    $

    0.96

     

     

    (18.8

    )%

     

     

     

     

     

     

    Weighted average shares outstanding (basic)

     

    119,344

     

     

     

    118,636

     

     

    0.6

    %

    Weighted average shares outstanding (diluted)

     

    119,604

     

     

     

    119,909

     

     

    (0.3

    )%

     
     
     
     

    Business Segment Information
    (unaudited, in thousands, except average employee headcount) 

     

     

     

    NAST

     

    Global

    Forwarding

     

    All Other

    and Corporate

     

    Consolidated

    Three Months Ended March 31, 2024

     

     

     

     

     

     

     

     

    Total revenues

     

    $

    3,000,313

     

    $

    858,637

     

    $

    553,361

     

     

    $

    4,412,311

    Adjusted gross profits(1)

     

     

    397,110

     

     

    180,045

     

     

    80,574

     

     

     

    657,729

    Income (loss) from operations

     

     

    108,895

     

     

    31,552

     

     

    (13,314

    )

     

     

    127,133

    Depreciation and amortization

     

     

    5,350

     

     

    2,844

     

     

    15,684

     

     

     

    23,878

    Total assets(2)

     

     

    3,065,996

     

     

    1,257,675

     

     

    1,148,417

     

     

     

    5,472,088

    Average employee headcount

     

     

    6,004

     

     

    4,876

     

     

    4,110

     

     

     

    14,990

     

     

     

     

     

     

     

     

     

     

     

    NAST

     

    Global

    Forwarding

     

    All Other

    and Corporate

     

    Consolidated

    Three Months Ended March 31, 2023

     

     

     

     

     

     

     

     

    Total revenues

     

    $

    3,304,187

     

    $

    789,978

     

    $

    517,505

     

     

    $

    4,611,670

    Adjusted gross profits(1)

     

     

    426,655

     

     

    177,919

     

     

    81,066

     

     

     

    685,640

    Income (loss) from operations

     

     

    134,022

     

     

    30,116

     

     

    (3,105

    )

     

     

    161,033

    Depreciation and amortization

     

     

    5,651

     

     

    5,480

     

     

    13,249

     

     

     

    24,380

    Total assets(2)

     

     

    3,240,898

     

     

    1,194,575

     

     

    1,160,111

     

     

     

    5,595,584

    Average employee headcount

     

     

    6,870

     

     

    5,471

     

     

    4,561

     

     

     

    16,902

    ____________________________________________

    (1)

    Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

    (2)

    All cash and cash equivalents are included in All Other and Corporate. 

     
     
     
     

    Condensed Consolidated Balance Sheets
    (unaudited, in thousands) 

     

     

    March 31, 2024

     

    December 31, 2023

    Assets

     

     

     

    Current assets:

     

     

     

    Cash and cash equivalents

    $

    121,838

     

    $

    145,524

    Receivables, net of allowance for credit loss

     

    2,592,576

     

     

    2,381,963

    Contract assets, net of allowance for credit loss

     

    235,326

     

     

    189,900

    Prepaid expenses and other

     

    174,441

     

     

    163,307

    Total current assets

     

    3,124,181

     

     

    2,880,694

     

     

     

     

    Property and equipment, net of accumulated depreciation and amortization

     

    143,497

     

     

    144,718

    Right-of-use lease assets

     

    366,604

     

     

    353,890

    Intangible and other assets, net of accumulated amortization

     

    1,837,806

     

     

    1,845,978

    Total assets

    $

    5,472,088

     

    $

    5,225,280

     

     

     

     

    Liabilities and stockholders’ investment

     

     

     

    Current liabilities:

     

     

     

    Accounts payable and outstanding checks

    $

    1,453,669

     

    $

    1,370,334

    Accrued expenses:

     

     

     

    Compensation

     

    110,899

     

     

    135,104

    Transportation expense

     

    186,027

     

     

    147,921

    Income taxes

     

    6,246

     

     

    4,748

    Other accrued liabilities

     

    162,627

     

     

    159,435

    Current lease liabilities

     

    74,818

     

     

    74,451

    Current portion of debt

     

    280,000

     

     

    160,000

    Total current liabilities

     

    2,274,286

     

     

    2,051,993

     

     

     

     

    Long-term debt

     

    1,420,776

     

     

    1,420,487

    Noncurrent lease liabilities

     

    310,285

     

     

    297,563

    Noncurrent income taxes payable

     

    21,798

     

     

    21,289

    Deferred tax liabilities

     

    12,090

     

     

    13,177

    Other long-term liabilities

     

    2,859

     

     

    2,074

    Total liabilities

     

    4,042,094

     

     

    3,806,583

     

     

     

     

    Total stockholders’ investment

     

    1,429,994

     

     

    1,418,697

    Total liabilities and stockholders’ investment

    $

    5,472,088

     

    $

    5,225,280

     
     
     
     

    Condensed Consolidated Statements of Cash Flow
    (unaudited, in thousands, except operational data) 

     

     

    Three Months Ended March 31,

    Operating activities:

    2024

     

    2023(1)

     

     

     

     

    Net income

    $

    92,904

     

     

    $

    114,891

     

    Adjustments to reconcile net income to net cash (used for) provided by operating activities:

     

     

     

    Depreciation and amortization

     

    23,878

     

     

     

    24,380

     

    Provision for credit losses

     

    2,813

     

     

     

    (6,637

    )

    Stock-based compensation

     

    22,673

     

     

     

    15,607

     

    Deferred income taxes

     

    (6,805

    )

     

     

    (10,272

    )

    Excess tax benefit on stock-based compensation

     

    (1,570

    )

     

     

    (7,011

    )

    Other operating activities

     

    5,596

     

     

     

    942

     

    Changes in operating elements:

     

     

     

    Receivables

     

    (225,402

    )

     

     

    326,244

     

    Contract assets

     

    (45,574

    )

     

     

    66,124

     

    Prepaid expenses and other

     

    (11,409

    )

     

     

    433

     

    Right of use asset

     

    (13,933

    )

     

     

    13,841

     

    Accounts payable and outstanding checks

     

    84,966

     

     

     

    (90,724

    )

    Accrued compensation

     

    (23,407

    )

     

     

    (134,795

    )

    Accrued transportation expenses

     

    38,106

     

     

     

    (53,882

    )

    Accrued income taxes

     

    3,619

     

     

     

    (40

    )

    Other accrued liabilities

     

    5,446

     

     

     

    8,169

     

    Lease liability

     

    14,347

     

     

     

    (14,003

    )

    Other assets and liabilities

     

    429

     

     

     

    1,277

     

    Net cash (used for) provided by operating activities

     

    (33,323

    )

     

     

    254,544

     

    Investing activities:

     

     

     

    Purchases of property and equipment

     

    (8,620

    )

     

     

    (11,371

    )

    Purchases and development of software

     

    (13,854

    )

     

     

    (15,579

    )

    Net cash used for investing activities

     

    (22,474

    )

     

     

    (26,950

    )

    Financing activities:

     

     

     

    Proceeds from stock issued for employee benefit plans

     

    5,405

     

     

     

    19,673

     

    Stock tendered for payment of withholding taxes

     

    (16,130

    )

     

     

    (20,048

    )

    Repurchase of common stock

     

     

     

     

    (31,182

    )

    Cash dividends

     

    (74,580

    )

     

     

    (73,435

    )

    Proceeds from short-term borrowings

     

    912,000

     

     

     

    739,000

     

    Payments on short-term borrowings

     

    (792,000

    )

     

     

    (840,000

    )

    Net cash provided by (used for) financing activities

     

    34,695

     

     

     

    (205,992

    )

    Effect of exchange rates on cash and cash equivalents

     

    (2,584

    )

     

     

    76

     

    Net change in cash and cash equivalents

     

    (23,686

    )

     

     

    21,678

     

    Cash and cash equivalents, beginning of period

     

    145,524

     

     

     

    217,482

     

    Cash and cash equivalents, end of period

    $

    121,838

     

     

    $

    239,160

     

     

     

    As of March 31,

    Operational Data:

    2024

     

    2023

    Employees

     

    14,734

     

     

     

    16,406

     

    ____________________________________________

    (1)

    The three months ended March 31, 2023 has been adjusted to conform to current year presentation.

     
     

    CHRW-IR


    The C.H.Robinson Worldwide Stock at the time of publication of the news with a raise of +1,14 % to 66,50USD on Lang & Schwarz stock exchange (30. April 2024, 23:00 Uhr).


    Business Wire (engl.)
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    C.H. Robinson Reports 2024 First Quarter Results C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended March 31, 2024. First Quarter Key Metrics: Gross profits decreased 4.5% year-over-year to $647.5 million, but increased 6.3% …