C.H. Robinson Reports 2020 Second Quarter Results

MINNEAPOLIS–(BUSINESS WIRE)–
C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended June 30, 2020.

Second Quarter Key Metrics:

  • Total revenues decreased 7.2 percent to $3.6 billion
  • Net revenues decreased 11.6 percent to $614.5 million
  • Income from operations decreased 17.0 percent to $188.8 million
  • Operating margin decreased 200 basis points to 30.7 percent
  • Diluted earnings per share (EPS) decreased 13.1 percent to $1.06
  • Cash flow from operations increased 124.0 percent to $447.1 million

“Despite a volatile environment, we were able to deliver solid performance across all of our business units due to the tireless efforts of the C.H. Robinson team members around the world and our diversified portfolio of logistics services,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. “We also continued to make progress on our strategic, long-term initiatives around market share gains and productivity improvements.”

Biesterfeld continued, “Our business model is resilient and responsive. We have a strong balance sheet, and we exited the second quarter with $1.6 billion of liquidity. We are well positioned to weather the economic uncertainty in the months ahead and emerge stronger from this difficult time.”

Second Quarter Results Summary

  • Total revenues decreased 7.2 percent to $3.6 billion, driven primarily by lower pricing in truckload and less than truckload (“LTL”) services.
  • Net revenues decreased 11.6 percent to $614.5 million, primarily driven by lower margin in truckload services.
  • Operating expenses decreased 9.0 percent to $425.7 million, primarily due to $40 million of short-term cost reductions. Personnel expenses decreased 11.3 percent to $300.5 million, driven primarily by short-term cost reductions and declines in variable compensation. Average headcount decreased 2.7 percent, with acquisitions contributing approximately 1.0 percentage point of growth. Average full-time equivalents decreased 4.7 percent due to furloughs and reduced work hours that were implemented in the second quarter. Selling, general and administrative (“SG&A”) expenses decreased 2.8 percent to $125.2 million. The largest contributor to the decrease was the elimination of non-essential travel, partially offset by an $11.5 million loss on the sale-leaseback of a company-owned data center.
  • Income from operations totaled $188.8 million, down 17.0 percent from last year due to declining net revenues. Operating margin of 30.7 percent declined 200 basis points.
  • Interest and other expenses totaled $10.2 million, consisting primarily of $12.4 million of interest expense, which decreased modestly versus last year due to lower average interest rates. The second quarter also included a $1.8 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
  • The effective tax rate in the quarter was 19.4 percent compared to 23.4 percent last year. The lower effective tax rate was due primarily to the tax benefit from delivery of a one-time deferred stock award that was granted to the company’s prior Chief Executive Officer in 2000.
  • Net income totaled $143.9 million, down 14.9 percent from a year ago. Diluted EPS of $1.06 decreased 13.1 percent.

Year-to-Date Results Summary

  • Total revenues decreased 3.0 percent to $7.4 billion, driven by declines across most transportation service lines.
  • Net revenues decreased 13.9 percent to $1.2 billion, primarily driven by lower margin in truckload services.
  • Operating expenses decreased 4.1 percent to $884.2 million. Personnel expenses decreased 7.1 percent to $630.7 million, driven primarily by short-term cost reductions, including a 1.4 percent decrease in average headcount, a 2.8 percent decrease in average full-time equivalents and a decline in variable compensation. SG&A expenses increased 4.3 percent to $253.5 million, due primarily to an $11.5 million loss on the sale-leaseback of a company-owned data center.
  • Income from operations totaled $298.2 million, down 34.0 percent from last year due to declining net revenues. Operating margin of 25.2 percent decreased 770 basis points.
  • Interest and other expenses totaled $25.4 million, which primarily consists of $25.0 million of interest expense. The six-month period also included a $1.1 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses.
  • The effective tax rate for the six months was 18.6 percent compared to 22.7 percent in the year-ago period. The lower effective tax rate was due primarily to the tax benefit related to stock-based compensation.
  • Net income totaled $222.1 million, down 32.9 percent from a year ago. Diluted EPS of $1.64 decreased 31.4 percent.

North American Surface Transportation Results

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

2,475,292

 

 

$

2,872,053

 

 

(13.8)

%

 

$

5,299,037

 

 

$

5,668,837

 

 

(6.5)

%

Net revenues

379,556

 

 

486,418

 

 

(22.0)

%

 

752,334

 

 

972,968

 

 

(22.7)

%

Income from operations

136,846

 

 

204,732

 

 

(33.2)

%

 

235,372

 

 

416,015

 

 

(43.4)

%

Second quarter total revenues for C.H. Robinson’s NAST segment totaled $2.5 billion, a decrease of 13.8 percent over the prior year, primarily driven by lower pricing. NAST net revenues decreased 22.0 percent in the quarter to $379.6 million, with the March 2020 acquisition of Prime Distribution Services (“Prime”) contributing 3.0 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased 28.5 percent, less than truckload net revenues decreased 13.2 percent, and intermodal net revenues increased 26.0 percent versus the year-ago period. Excluding the impact of the change in fuel prices, average North America truckload rate per mile charged to customers decreased approximately 5.5 percent in the quarter, while truckload transportation cost per mile decreased approximately 2 percent. Truckload volume declined 4.5 percent in the quarter, and LTL volumes declined 2.0 percent, both representing market share gains in the quarter when compared to a 21 percent decline in industry volumes, as measured by the Cass Freight Index. Intermodal volumes were flat versus the prior year. Operating expenses decreased 13.8 percent primarily due to short-term cost reductions. Income from operations decreased 33.2 percent to $136.8 million, and operating margin declined 600 basis points to 36.1 percent. NAST average headcount was down 7.6 percent in the quarter, with Prime contributing 4.5 percentage points of growth. NAST average full-time equivalents, which excludes furloughed employees and accounts for employees with reduced work hours, was down 10.9 percent.

Global Forwarding Results

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

707,820

 

 

$

592,483

 

 

19.5

%

 

$

1,238,204

 

 

$

1,130,050

 

 

9.6

%

Net revenues

162,960

 

 

141,936

 

 

14.8

%

 

291,274

 

 

269,172

 

 

8.2

%

Income from operations

58,775

 

 

26,618

 

 

120.8

%

 

70,734

 

 

40,821

 

 

73.3

%

Second quarter total revenues for the Global Forwarding segment increased 19.5 percent to $707.8 million, primarily driven by higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased 14.8 percent in the quarter to $163.0 million. Ocean net revenues decreased 7.8 percent, driven primarily by an 8.5 percent decline in volumes. Net revenues in air increased 104.4 percent driven by higher pricing, partially offset by a 35.5 percent decline in shipments. Customs net revenues decreased 16.5 percent, primarily driven by a 17.0 percent reduction in transaction volume. Operating expenses decreased 9.7 percent, primarily driven by decreased personnel expenses. Second quarter average headcount decreased 0.9 percent, and average full-time equivalents decreased 1.7 percent. Income from operations increased 120.8 percent to $58.8 million, and operating margin expanded 1,730 basis points to 36.1 percent in the quarter.

All Other and Corporate Results

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

444,734

 

 

$

444,304

 

 

0.1

%

 

$

895,613

 

 

$

861,163

 

 

4.0

%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Robinson Fresh

$

30,202

 

 

$

31,236

 

 

(3.3)

%

 

$

57,660

 

 

$

59,894

 

 

(3.7)

%

Managed Services

23,503

 

 

20,099

 

 

16.9

%

 

46,030

 

 

40,411

 

 

13.9

%

Other Surface Transportation

18,232

 

 

15,527

 

 

17.4

%

 

35,108

 

 

31,571

 

 

11.2

%

Second quarter Robinson Fresh net revenues decreased 3.3 percent to $30.2 million, primarily due to a 13.0 percent decrease in case volume, which was driven by a decline in restaurant demand. Managed Services net revenues increased 16.9 percent in the quarter. Other Surface Transportation net revenues increased 17.4 percent to $18.2 million, with the 2019 acquisition of Dema Service contributing 4.7 percentage points of net revenue growth. Europe truckload net revenue was up 19 percent in the quarter.

More:  C.H. Robinson Third Quarter 2020 Earnings Conference Call

Other Income Statement Items

The second quarter effective tax rate was 19.4 percent, down from 23.4 percent last year. The lower effective tax rate was due primarily to the tax benefit from delivery of a one-time stock award that was granted in 2000. We now expect our 2020 full-year effective tax rate to be 20 to 22 percent.

Interest and other expenses totaled $10.2 million, consisting primarily of $12.4 million of interest expense, which decreased modestly versus last year due to lower average interest rates. The second quarter also included a $1.8 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.

Diluted weighted average shares outstanding in the quarter were down 1.9 percent due primarily to share repurchases over the past twelve months.

Cash Flow Generation and Capital Distribution

Cash from operations totaled $447.1 million in the second quarter, up 124.0 percent versus the prior year, due primarily to favorable changes in working capital.

In the second quarter, $68.4 million was returned to shareholders, with $67.2 million in cash dividends and $1.2 million in share repurchases related to employee benefit plans.

Capital expenditures totaled $10.3 million in the quarter. Full-year 2020 capital expenditures are now expected to be on the low end of the $60 million to $70 million range, with the majority dedicated to technology.

Outlook

“While there is still uncertainty in the freight market and the broader economy, we remain committed to our vital role in the global supply chain by delivering critical and essential goods and services. We’ll continue to act in the best long-term interest of our shareholders by balancing short- and long-term cost reduction efforts with continued investments in technology to maximize long-term value creation. As the freight market and economy continue to recover, we’re committed to providing best-in-class service to our customers, continuing to grow market share, driving the transformation of C.H. Robinson and emerging from this time of uncertainty as an even stronger company,” Biesterfeld stated.

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 nearly $20 billion in freight under management and 18 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 119,000 customers and 78,000 contract carriers. 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, such factors such 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; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; changes due to catastrophic events including pandemics such as COVID-19; 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 2020 Earnings Conference Call

Wednesday, July 29, 2020; 8:30 a.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

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 email chuck.ives@chrobinson.com.

Summarized Financial Results

($ in thousands, except per share data)

This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the service line net revenues discussed within the segments as our segments have revenues from multiple service lines.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

3,627,846

 

$

3,908,840

 

(7.2)

%

 

$

7,432,854

 

$

7,660,050

 

(3.0)

%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload

$

278,366

 

$

371,351

 

(25.0)

%

 

$

543,292

 

$

749,344

 

(27.5)

%

LTL

106,956

 

122,991

 

(13.0)

%

 

220,865

 

239,220

 

(7.7)

%

Intermodal

7,767

 

6,298

 

23.3

%

 

15,320

 

12,374

 

23.8

%

Ocean

78,853

 

85,472

 

(7.7)

%

 

148,755

 

157,005

 

(5.3)

%

Air

52,405

 

26,134

 

100.5

%

 

80,743

 

53,716

 

50.3

%

Customs

19,461

 

23,306

 

(16.5)

%

 

40,654

 

45,184

 

(10.0)

%

Other logistics services

42,213

 

30,062

 

40.4

%

 

78,397

 

60,447

 

29.7

%

Total transportation

586,021

 

665,614

 

(12.0)

%

 

1,128,026

 

1,317,290

 

(14.4)

%

Sourcing

28,432

 

29,602

 

(4.0)

%

 

54,380

 

56,726

 

(4.1)

%

Total net revenues

614,453

 

695,216

 

(11.6)

%

 

1,182,406

 

1,374,016

 

(13.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

425,666

 

467,681

 

(9.0)

%

 

884,179

 

921,931

 

(4.1)

%

Income from operations

188,787

 

227,535

 

(17.0)

%

 

298,227

 

452,085

 

(34.0)

%

Net income

$

143,939

 

$

169,180

 

(14.9)

%

 

$

222,085

 

$

330,968

 

(32.9)

%

Diluted EPS

$

1.06

 

$

1.22

 

(13.1)

%

 

$

1.64

 

$

2.39

 

(31.4)

%

Our total revenues represent the total dollar value of services and goods we sell to our customers. Net revenues are a non-GAAP financial measure calculated as total revenues less the cost of purchased transportation and related services and the cost of purchased products sourced for resale. We believe net revenues are a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider net revenues to be our primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our net revenues. The reconciliation of total revenues to net revenues is presented below (in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

Transportation

$

3,348,611

 

$

3,638,612

 

$

6,890,729

 

$

7,143,544

Sourcing

279,235

 

270,228

 

542,125

 

516,506

Total revenues

3,627,846

 

3,908,840

 

7,432,854

 

7,660,050

Costs and expenses:

 

 

 

 

 

 

 

Purchased transportation and related services

2,762,590

 

2,972,998

 

5,762,703

 

5,826,254

Purchased products sourced for resale

250,803

 

240,626

 

487,745

 

459,780

Total costs and expenses

3,013,393

 

3,213,624

 

6,250,448

 

6,286,034

Net revenues

$

614,453

 

$

695,216

 

$

1,182,406

 

$

1,374,016

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Transportation

$

3,348,611

 

 

$

3,638,612

 

 

$

6,890,729

 

 

$

7,143,544

 

Sourcing

279,235

 

 

270,228

 

 

542,125

 

 

516,506

 

Total revenues

3,627,846

 

 

3,908,840

 

 

7,432,854

 

 

7,660,050

 

Costs and expenses:

 

 

 

 

 

 

 

Purchased transportation and related services

2,762,590

 

 

2,972,998

 

 

5,762,703

 

 

5,826,254

 

Purchased products sourced for resale

250,803

 

 

240,626

 

 

487,745

 

 

459,780

 

Personnel expenses

300,483

 

 

338,886

 

 

630,703

 

 

678,984

 

Other selling, general, and administrative expenses

125,183

 

 

128,795

 

 

253,476

 

 

242,947

 

Total costs and expenses

3,439,059

 

 

3,681,305

 

 

7,134,627

 

 

7,207,965

 

Income from operations

188,787

 

 

227,535

 

 

298,227

 

 

452,085

 

Interest and other expense

(10,211

)

 

(6,615

)

 

(25,439

)

 

(23,755

)

Income before provision for income taxes

178,576

 

 

220,920

 

 

272,788

 

 

428,330

 

Provision for income taxes

34,637

 

 

51,740

 

 

50,703

 

 

97,362

 

Net income

$

143,939

 

 

$

169,180

 

 

$

222,085

 

 

$

330,968

 

 

 

 

 

 

 

 

 

Net income per share (basic)

$

1.07

 

 

$

1.23

 

 

$

1.64

 

 

$

2.41

 

Net income per share (diluted)

$

1.06

 

 

$

1.22

 

 

$

1.64

 

 

$

2.39

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

135,010

 

 

137,185

 

 

135,241

 

 

137,518

 

Weighted average shares outstanding (diluted)

135,610

 

 

138,256

 

 

135,776

 

 

138,667

 

More:  C.H. Robinson Second Quarter 2020 Earnings Conference Call

Business Segment Information

(unaudited, dollars in thousands)

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Total revenues

 

$

2,475,292

 

$

707,820

 

$

444,734

 

 

$

3,627,846

Net revenues

 

379,556

 

162,960

 

71,937

 

 

614,453

Income (loss) from operations

 

136,846

 

58,775

 

(6,834

)

 

188,787

Depreciation and amortization

 

7,201

 

9,206

 

9,351

 

 

25,758

Total assets (1)

 

2,793,290

 

1,029,203

 

1,003,196

 

 

4,825,689

Average headcount

 

6,960

 

4,726

 

3,608

 

 

15,294

Average full-time equivalents(2)

 

6,610

 

4,546

 

3,464

 

 

14,620

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

2,872,053

 

$

592,483

 

$

444,304

 

 

$

3,908,840

Net revenues

 

486,418

 

141,936

 

66,862

 

 

695,216

Income (loss) from operations

 

204,732

 

26,618

 

(3,815

)

 

227,535

Depreciation and amortization

 

6,131

 

9,315

 

9,636

 

 

25,082

Total assets (1)

 

2,685,477

 

1,014,235

 

984,397

 

 

4,684,109

Average headcount

 

7,533

 

4,770

 

3,409

 

 

15,712

Average full-time equivalents(2)

 

7,416

 

4,624

 

3,300

 

 

15,340

____________________________________________

(1)

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

(2)

Average full-time equivalents excludes furloughed employees and accounts for employees with reduced work hours.

Business Segment Information

(unaudited, dollars in thousands)

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Total revenues

 

$

5,299,037

 

$

1,238,204

 

$

895,613

 

 

$

7,432,854

Net revenues

 

752,334

 

291,274

 

138,798

 

 

1,182,406

Income (loss) from operations

 

235,372

 

70,734

 

(7,879

)

 

298,227

Depreciation and amortization

 

12,455

 

18,355

 

19,341

 

 

50,151

Total assets (1)

 

2,793,290

 

1,029,203

 

1,003,196

 

 

4,825,689

Average headcount

 

6,981

 

4,763

 

3,594

 

 

15,338

Average full-time equivalents(2)

 

6,710

 

4,599

 

3,463

 

 

14,772

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

5,668,837

 

$

1,130,050

 

$

861,163

 

 

$

7,660,050

Net revenues

 

972,968

 

269,172

 

131,876

 

 

1,374,016

Income (loss) from operations

 

416,015

 

40,821

 

(4,751

)

 

452,085

Depreciation and amortization

 

12,390

 

18,241

 

19,011

 

 

49,642

Total assets (2)

 

2,685,477

 

1,014,235

 

984,397

 

 

4,684,109

Average headcount

 

7,486

 

4,728

 

3,343

 

 

15,557

Average full-time equivalents(2)

 

7,376

 

4,582

 

3,241

 

 

15,199

____________________________________________

(1)

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

(2)

Average full-time equivalents excludes furloughed employees and accounts for employees with reduced work hours.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

 

 

June 30, 2020

 

December 31, 2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

362,236

 

$

447,858

Receivables, net of allowance for credit loss

2,018,190

 

1,974,381

Contract assets, net of allowance for credit loss

154,416

 

132,874

Prepaid expenses and other

69,084

 

85,005

Total current assets

2,603,926

 

2,640,118

 

 

 

 

Property and equipment, net

188,252

 

208,423

Right-of-use lease assets

339,495

 

310,860

Intangible and other assets

1,694,016

 

1,481,659

Total assets

$

4,825,689

 

$

4,641,060

 

 

 

 

Liabilities and stockholders’ investment

 

 

 

Current liabilities:

 

 

 

Accounts payable and outstanding checks

$

1,288,136

 

$

1,062,835

Accrued expenses:

 

 

 

Compensation

125,381

 

112,784

Transportation expense

121,478

 

101,194

Income taxes

14,825

 

12,354

Other accrued liabilities

58,965

 

62,706

Current lease liabilities

64,595

 

61,280

Current portion of debt

 

142,885

Total current liabilities

1,673,380

 

1,556,038

 

 

 

 

Long-term debt

1,092,873

 

1,092,448

Noncurrent lease liabilities

280,448

 

259,444

Noncurrent income taxes payable

22,481

 

22,354

Deferred tax liabilities

51,921

 

39,776

Other long-term liabilities

258

 

270

Total liabilities

3,121,361

 

2,970,330

 

 

 

 

Total stockholders’ investment

1,704,328

 

1,670,730

Total liabilities and stockholders’ investment

$

4,825,689

 

$

4,641,060

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

 

 

Six Months Ended June 30,

 

2020

 

2019

Operating activities:

 

 

 

Net income

$

222,085

 

 

$

330,968

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

50,151

 

 

49,642

 

Provision for credit losses

9,374

 

 

3,224

 

Stock-based compensation

22,351

 

 

31,807

 

Deferred income taxes

(729

)

 

(5,322

)

Excess tax benefit on stock-based compensation

(11,999

)

 

(5,353

)

Other operating activities

12,341

 

 

961

 

Changes in operating elements, net of acquisitions:

 

 

 

Receivables

(48,937

)

 

89,175

 

Contract assets

(22,451

)

 

(19,380

)

Prepaid expenses and other

8,744

 

 

(16,404

)

Accounts payable and outstanding checks

220,276

 

 

37,378

 

Accrued compensation

12,312

 

 

(60,976

)

Accrued transportation expenses

20,284

 

 

19,149

 

Accrued income taxes

14,423

 

 

(3,051

)

Other accrued liabilities

(6,345

)

 

4,166

 

Other assets and liabilities

3,763

 

 

542

 

Net cash provided by operating activities

505,643

 

 

456,526

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

(11,621

)

 

(16,774

)

Purchases and development of software

(13,418

)

 

(14,790

)

Acquisitions, net of cash acquired

(223,230

)

 

(58,379

)

Other investing activities

5,525

 

 

8

 

Net cash used for investing activities

(242,744

)

 

(89,935

)

 

 

 

 

Financing activities:

 

 

 

Proceeds from stock issued for employee benefit plans

20,295

 

 

27,952

 

Net repurchases of common stock

(83,529

)

 

(186,302

)

Cash dividends

(137,104

)

 

(139,010

)

Proceeds from long-term borrowings

 

 

473,000

 

Payments on long-term borrowings

 

 

(561,000

)

Proceeds from short-term borrowings

979,600

 

 

14,000

 

Payments on short-term borrowings

(1,122,600

)

 

(19,000

)

Net cash used for financing activities

(343,338

)

 

(390,360

)

Effect of exchange rates on cash

(5,183

)

 

461

 

 

 

 

 

Net change in cash and cash equivalents

(85,622

)

 

(23,308

)

Cash and cash equivalents, beginning of period

447,858

 

 

378,615

 

Cash and cash equivalents, end of period

$

362,236

 

 

$

355,307

 

 

 

 

 

 

As of June 30,

Operational Data:

2020

 

2019

Employees

15,113

 

 

15,910

 

Full-time equivalents(1)

14,103

 

 

15,517

 

(1) Full-time equivalents excludes furloughed employees and accounts for employees with reduced work hours.

Source: C.H. Robinson

CHRW-IR

Chuck Ives, Director of Investor Relations

Email:chuck.ives@chrobinson.com

Source: C.H. Robinson Worldwide, Inc.

Source


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