C.H. Robinson Reports 2024 Second Quarter Results
Second Quarter Key Metrics:
-
Gross profits increased
3.0% year-over-year to$676.5 million 4.5% sequentially -
Income from operations increased
34.3% year-over-year to$178.1 million 40.1% sequentially -
Adjusted operating margin(1) increased 600 basis points to
25.9% -
Diluted earnings per share (EPS) increased
29.6% to$1.05 -
Adjusted EPS(1) increased
25.0% to$1.15 -
Cash generated by operations decreased by
$58.4 million $166.4 million
(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 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.
"Our second quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman. "Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32 percent year-over-year for the full enterprise."
"I also want to commend our people for continuing to embrace the changes that we’re making to deliver a higher and more consistent level of performance and for the high quality second quarter results that they delivered in what continues to be a challenging market," added Bozeman. "With ongoing efforts to improve the customer experience and our cost to serve, we continue to focus on ensuring that we’ll be ready for the eventual freight market rebound, with a disciplined operating model that decouples headcount growth from volume growth and drives operating leverage."
"All of the changes that we’re making are aimed at our North Star of generating incremental operating income and delivering higher highs and higher lows over the course of freight market cycles. We will do this by focusing on two main fronts…growing market share and expanding our operating income margins," said Bozeman. "We’ll continue to grow market share by leveraging our robust capabilities to power vertical-centric solutions, by reclaiming share in targeted segments, and by expanding our addressable market through value-added services and solutions that drive new volume to our four core modes. We’ll also be more intentional with our go-to market strategy to drive additional synergies and cross-selling across our portfolio."
"We’ll expand our operating income margins by embedding Lean practices, removing waste and expanding our digital capabilities. This will enable us to strengthen our productivity and optimize our organization structure in order to be the most efficient operator, in addition to the highest value provider. We’ll optimize our gross profit by monitoring key input metrics and responding faster to error states and changing market conditions with countermeasures and innovative technology that improves our execution. As we take action on all of these fronts, I’m excited about the work that we’re doing to reinvigorate Robinson’s winning culture and to instill discipline with our new operating model. The operating model is helping us execute a solid strategy even better, and we expect further improvement as we continue to cascade the new operating model deeper into the organization and as our team continues to embrace it and build operational muscle. I know from my past experiences of implementing Lean operating models, that improvement isn’t always linear, and we still have a lot of grass to cut. I’m confident in the team’s willingness and ability to drive a higher level of discipline in our operational execution," Bozeman concluded.
Summary of Second Quarter of 2024 Results Compared to the Second Quarter of 2023
-
Total revenues increased
1.4% to$4.5 billion -
Gross profits increased
3.0% to$676.5 million 3.3% to$687.4 million -
Operating expenses decreased
4.4% to$509.3 million 4.3% to$361.2 million 10.0% . Other selling, general and administrative (“SG&A”) expenses decreased4.8% to$148.1 million -
Income from operations totaled
$178.1 million 34.3% due to the increase in adjusted gross profits and decrease in operating expenses. Adjusted operating margin(1) of25.9% increased 600 basis points. -
Interest and other income/expense, net totaled
$21.5 million $22.9 million $0.3 million $0.5 million -
The effective tax rate in the quarter was
19.4% , compared to14.9% in the second quarter last year. The higher rate in the second quarter of this year was driven by lower benefits from foreign tax credits, a higher foreign tax rate, and the impact of higher pretax income, partially offset by higherU.S. tax credits and incentives. -
Net income totaled
$126.3 million 29.7% from a year ago. Diluted EPS of$1.05 29.6% . Adjusted EPS(1) of$1.15 25.0% .
(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 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.
Summary of 2024 Year-to-Date Results Compared to 2023
-
Total revenues decreased
1.5% to$8.9 billion -
Gross profits decreased
0.8% to$1.3 billion 0.4% to$1.3 billion -
Operating expenses decreased
1.7% to$1.0 billion 2.6% to$740.3 million 10.8% . Other SG&A expenses increased0.8% to$299.6 million -
Income from operations totaled
$305.2 million 3.9% from last year, due to the decrease in operating expenses. Adjusted operating margin(1) of22.7% increased 100 basis points. -
Interest and other income/expense, net totaled
$38.3 million $45.0 million $1.8 million $4.4 million -
The effective tax rate for the six months ended June 30, 2024 was
17.9% compared to14.1% in the year-ago period. The higher rate in the current period was driven by lower tax benefits related to stock-based compensation deliveries, a higher foreign tax rate, and lower foreign tax credit utilization, partially offset by higherU.S. tax credits and incentives. -
Net income totaled
$219.2 million 3.3% from a year ago. Diluted EPS of$1.83 3.4% . Adjusted EPS(1) of$2.01 4.7% .
(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 11 through 13 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||
Total revenues |
$ |
2,989,909 |
|
$ |
3,079,268 |
|
(2.9 |
)% |
|
$ |
5,990,222 |
|
$ |
6,383,455 |
|
(6.2 |
)% |
Adjusted gross profits(1) |
|
419,657 |
|
|
400,532 |
|
4.8 |
% |
|
|
816,767 |
|
|
827,187 |
|
(1.3 |
)% |
Income from operations |
|
141,102 |
|
|
117,859 |
|
19.7 |
% |
|
|
249,997 |
|
|
251,881 |
|
(0.7 |
)% |
____________________________________________ (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. |
|||||||||||||||||
Second quarter total revenues for the NAST segment totaled
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, |
||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||
Total revenues |
$ |
921,223 |
|
$ |
779,867 |
|
18.1 |
% |
|
$ |
1,779,860 |
|
$ |
1,569,845 |
|
13.4 |
% |
Adjusted gross profits(1) |
|
184,067 |
|
|
179,231 |
|
2.7 |
% |
|
|
364,112 |
|
|
357,150 |
|
1.9 |
% |
Income from operations |
|
40,982 |
|
|
29,647 |
|
38.2 |
% |
|
|
72,534 |
|
|
59,763 |
|
21.4 |
% |
____________________________________________ (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. |
|||||||||||||||||
Second quarter total revenues for the Global Forwarding segment increased
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||
Total revenues |
$ |
572,216 |
|
$ |
562,721 |
|
1.7 |
% |
|
$ |
1,125,577 |
|
$ |
1,080,226 |
|
4.2 |
% |
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Robinson Fresh |
$ |
39,883 |
|
$ |
37,895 |
|
5.2 |
% |
|
$ |
73,619 |
|
$ |
69,040 |
|
6.6 |
% |
Managed Services |
|
28,752 |
|
|
28,953 |
|
(0.7 |
)% |
|
|
57,688 |
|
|
57,923 |
|
(0.4 |
)% |
Other Surface Transportation |
|
15,050 |
|
|
18,885 |
|
(20.3 |
)% |
|
|
32,952 |
|
|
39,836 |
|
(17.3 |
)% |
____________________________________________ (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. |
|||||||||||||||||
Second quarter Robinson Fresh adjusted gross profits increased
Other Income Statement Items
Interest and other income/expense, net totaled
The second quarter effective tax rate was
Diluted weighted average shares outstanding in the quarter were up
Cash Flow Generation and Capital Distribution
Cash generated from operations totaled
In the second quarter of 2024, cash returned to shareholders totaled
Capital expenditures totaled
About C.H. Robinson
C.H. Robinson is one of the original logistics leaders. Companies around the world look to us to reimagine supply chains, advance freight technology, and solve logistics challenges—from the simple to the most complex. Over 90,000 customers and 450,000 contract carriers in our network trust us to manage
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
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 2024 Earnings Conference Call
Wednesday, July 31, 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 chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
||||||
Truckload |
$ |
274,187 |
|
$ |
261,147 |
|
5.0 |
% |
|
$ |
531,600 |
|
$ |
549,801 |
|
(3.3 |
)% |
LTL |
|
145,823 |
|
|
137,185 |
|
6.3 |
% |
|
|
286,959 |
|
|
275,822 |
|
4.0 |
% |
Ocean |
|
116,659 |
|
|
107,497 |
|
8.5 |
% |
|
|
229,517 |
|
|
217,576 |
|
5.5 |
% |
Air |
|
30,906 |
|
|
33,728 |
|
(8.4 |
)% |
|
|
61,438 |
|
|
65,045 |
|
(5.5 |
)% |
Customs |
|
26,652 |
|
|
25,128 |
|
6.1 |
% |
|
|
52,747 |
|
|
48,462 |
|
8.8 |
% |
Other logistics services |
|
57,320 |
|
|
66,582 |
|
(13.9 |
)% |
|
|
116,878 |
|
|
131,495 |
|
(11.1 |
)% |
Total transportation |
|
651,547 |
|
|
631,267 |
|
3.2 |
% |
|
|
1,279,139 |
|
|
1,288,201 |
|
(0.7 |
)% |
Sourcing |
|
35,862 |
|
|
34,229 |
|
4.8 |
% |
|
|
65,999 |
|
|
62,935 |
|
4.9 |
% |
Total adjusted gross profits |
$ |
687,409 |
|
$ |
665,496 |
|
3.3 |
% |
|
$ |
1,345,138 |
|
$ |
1,351,136 |
|
(0.4 |
)% |
____________________________________________ (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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
$ |
4,121,930 |
|
$ |
4,084,827 |
|
0.9 |
% |
|
$ |
8,204,518 |
|
$ |
8,412,792 |
|
(2.5 |
)% |
Sourcing |
|
361,418 |
|
|
337,029 |
|
7.2 |
% |
|
|
691,141 |
|
|
620,734 |
|
11.3 |
% |
Total revenues |
|
4,483,348 |
|
|
4,421,856 |
|
1.4 |
% |
|
|
8,895,659 |
|
|
9,033,526 |
|
(1.5 |
)% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchased transportation and related services |
|
3,470,383 |
|
|
3,453,560 |
|
0.5 |
% |
|
|
6,925,379 |
|
|
7,124,591 |
|
(2.8 |
)% |
Purchased products sourced for resale |
|
325,556 |
|
|
302,800 |
|
7.5 |
% |
|
|
625,142 |
|
|
557,799 |
|
12.1 |
% |
Direct internally developed software amortization |
|
10,883 |
|
|
8,749 |
|
24.4 |
% |
|
|
21,105 |
|
|
16,066 |
|
31.4 |
% |
Total direct expenses |
|
3,806,822 |
|
|
3,765,109 |
|
1.1 |
% |
|
|
7,571,626 |
|
|
7,698,456 |
|
(1.6 |
)% |
Gross profit |
$ |
676,526 |
|
$ |
656,747 |
|
3.0 |
% |
|
$ |
1,324,033 |
|
$ |
1,335,070 |
|
(0.8 |
)% |
Plus: Direct internally developed software amortization |
|
10,883 |
|
|
8,749 |
|
24.4 |
% |
|
|
21,105 |
|
|
16,066 |
|
31.4 |
% |
Adjusted gross profit |
$ |
687,409 |
|
$ |
665,496 |
|
3.3 |
% |
|
$ |
1,345,138 |
|
$ |
1,351,136 |
|
(0.4 |
)% |
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
$ |
4,483,348 |
|
|
$ |
4,421,856 |
|
|
1.4 |
% |
|
$ |
8,895,659 |
|
|
$ |
9,033,526 |
|
|
(1.5 |
%) |
Income from operations |
|
178,090 |
|
|
|
132,623 |
|
|
34.3 |
% |
|
|
305,223 |
|
|
|
293,656 |
|
|
3.9 |
% |
Operating margin |
|
4.0 |
% |
|
|
3.0 |
% |
|
100 bps |
|
|
3.4 |
% |
|
|
3.3 |
% |
|
10 bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross profit |
$ |
687,409 |
|
|
$ |
665,496 |
|
|
3.3 |
% |
|
$ |
1,345,138 |
|
|
$ |
1,351,136 |
|
|
(0.4 |
%) |
Income from operations |
|
178,090 |
|
|
|
132,623 |
|
|
34.3 |
% |
|
|
305,223 |
|
|
|
293,656 |
|
|
3.9 |
% |
Adjusted operating margin |
|
25.9 |
% |
|
|
19.9 |
% |
|
600 bps |
|
|
22.7 |
% |
|
|
21.7 |
% |
|
100 bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross profit |
$ |
687,409 |
|
|
$ |
665,496 |
|
|
3.3 |
% |
|
$ |
1,345,138 |
|
|
$ |
1,351,136 |
|
|
(0.4 |
%) |
Adjusted income from operations |
|
193,279 |
|
|
|
146,755 |
|
|
31.7 |
% |
|
|
333,355 |
|
|
|
311,510 |
|
|
7.0 |
% |
Adjusted operating margin - excluding restructuring |
|
28.1 |
% |
|
|
22.1 |
% |
|
600 bps |
|
|
24.8 |
% |
|
|
23.1 |
% |
|
170 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 June 30, 2024 |
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
141,102 |
|
|
$ |
40,982 |
|
|
$ |
(3,994 |
) |
|
$ |
178,090 |
|
Severance and other personnel expenses |
|
4,758 |
|
|
|
2,179 |
|
|
|
2,508 |
|
|
|
9,445 |
|
Other selling, general, and administrative expenses |
|
3,776 |
|
|
|
1,331 |
|
|
|
637 |
|
|
|
5,744 |
|
Total adjustments to income (loss) from operations(1) |
|
8,534 |
|
|
|
3,510 |
|
|
|
3,145 |
|
|
|
15,189 |
|
Adjusted income (loss) from operations |
$ |
149,636 |
|
|
$ |
44,492 |
|
|
$ |
(849 |
) |
|
$ |
193,279 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
419,657 |
|
|
$ |
184,067 |
|
|
$ |
83,685 |
|
|
$ |
687,409 |
|
Adjusted income (loss) from operations |
|
149,636 |
|
|
|
44,492 |
|
|
|
(849 |
) |
|
|
193,279 |
|
Adjusted operating margin - excluding restructuring |
|
35.7 |
% |
|
|
24.2 |
% |
|
|
N/M |
|
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
||||||||
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
||||||||
Six Months Ended June 30, 2024 |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
249,997 |
|
|
$ |
72,534 |
|
|
$ |
(17,308 |
) |
|
$ |
305,223 |
|
Severance and other personnel expenses |
|
7,784 |
|
|
|
5,394 |
|
|
|
4,209 |
|
|
|
17,387 |
|
Other selling, general, and administrative expenses |
|
5,654 |
|
|
|
1,592 |
|
|
|
3,499 |
|
|
|
10,745 |
|
Total adjustments to income (loss) from operations(2) |
|
13,438 |
|
|
|
6,986 |
|
|
|
7,708 |
|
|
|
28,132 |
|
Adjusted income (loss) from operations |
$ |
263,435 |
|
|
$ |
79,520 |
|
|
$ |
(9,600 |
) |
|
$ |
333,355 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
816,767 |
|
|
$ |
364,112 |
|
|
$ |
164,259 |
|
|
$ |
1,345,138 |
|
Adjusted income (loss) from operations |
|
263,435 |
|
|
|
79,520 |
|
|
|
(9,600 |
) |
|
|
333,355 |
|
Adjusted operating margin - excluding restructuring |
|
32.3 |
% |
|
|
21.8 |
% |
|
|
N/M |
|
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
||||||||||||
|
$ in 000's |
|
per share |
|
$ in 000's |
|
per share |
||||||||
Net income and per share (diluted) |
$ |
126,251 |
|
|
$ |
1.05 |
|
|
$ |
219,155 |
|
|
$ |
1.83 |
|
Restructuring and related costs, pre-tax(1)(2) |
|
15,189 |
|
|
|
0.13 |
|
|
|
28,132 |
|
|
|
0.24 |
|
Tax effect of adjustments |
|
(3,645 |
) |
|
|
(0.03 |
) |
|
|
(6,746 |
) |
|
|
(0.06 |
) |
Adjusted net income and per share (diluted) |
$ |
137,795 |
|
|
$ |
1.15 |
|
|
$ |
240,541 |
|
|
$ |
2.01 |
|
____________________________________________
(1) The three months ended June 30, 2024 include restructuring expenses of
(2) The six months ended June 30, 2024 include restructuring expenses of |
|||||||||||||||
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
||||||||
Three Months Ended June 30, 2023 |
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
117,859 |
|
|
$ |
29,647 |
|
|
$ |
(14,883 |
) |
|
$ |
132,623 |
|
Severance and other personnel expenses |
|
327 |
|
|
|
691 |
|
|
|
12,109 |
|
|
|
13,127 |
|
Other selling, general, and administrative expenses |
|
4 |
|
|
|
39 |
|
|
|
962 |
|
|
|
1,005 |
|
Total adjustments to income (loss) from operations(1) |
|
331 |
|
|
|
730 |
|
|
|
13,071 |
|
|
|
14,132 |
|
Adjusted income (loss) from operations |
$ |
118,190 |
|
|
$ |
30,377 |
|
|
$ |
(1,812 |
) |
|
$ |
146,755 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
400,532 |
|
|
$ |
179,231 |
|
|
$ |
85,733 |
|
|
$ |
665,496 |
|
Adjusted income (loss) from operations |
|
118,190 |
|
|
|
30,377 |
|
|
|
(1,812 |
) |
|
|
146,755 |
|
Adjusted operating margin - excluding restructuring |
|
29.5 |
% |
|
|
16.9 |
% |
|
|
N/M |
|
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
||||||||
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
||||||||
Six Months Ended June 30, 2023 |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
251,881 |
|
|
$ |
59,763 |
|
|
$ |
(17,988 |
) |
|
$ |
293,656 |
|
Severance and other personnel expenses |
|
1,156 |
|
|
|
2,229 |
|
|
|
13,340 |
|
|
|
16,725 |
|
Other selling, general, and administrative expenses |
|
4 |
|
|
|
163 |
|
|
|
962 |
|
|
|
1,129 |
|
Total adjustments to income (loss) from operations(2) |
|
1,160 |
|
|
|
2,392 |
|
|
|
14,302 |
|
|
|
17,854 |
|
Adjusted income (loss) from operations |
$ |
253,041 |
|
|
$ |
62,155 |
|
|
$ |
(3,686 |
) |
|
$ |
311,510 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
827,187 |
|
|
$ |
357,150 |
|
|
$ |
166,799 |
|
|
$ |
1,351,136 |
|
Adjusted income (loss) from operations |
|
253,041 |
|
|
|
62,155 |
|
|
|
(3,686 |
) |
|
|
311,510 |
|
Adjusted operating margin - excluding restructuring |
|
30.6 |
% |
|
|
17.4 |
% |
|
|
N/M |
|
|
|
23.1 |
% |
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2023 |
||||||||||||
|
$ in 000's |
|
per share |
|
$ in 000's |
|
per share |
||||||||
Net income and per share (diluted) |
$ |
97,316 |
|
|
$ |
0.81 |
|
|
$ |
212,207 |
|
|
$ |
1.77 |
|
Restructuring and related costs, pre-tax(1)(2) |
|
14,132 |
|
|
|
0.12 |
|
|
|
17,854 |
|
|
|
0.15 |
|
Foreign currency loss on divested operations, pre-tax |
|
2,051 |
|
|
|
0.02 |
|
|
|
3,808 |
|
|
|
0.04 |
|
Tax effect of adjustments |
|
(3,393 |
) |
|
|
(0.03 |
) |
|
|
(4,287 |
) |
|
|
(0.04 |
) |
Adjusted net income and per share (diluted) |
$ |
110,106 |
|
|
$ |
0.92 |
|
|
$ |
229,582 |
|
|
$ |
1.92 |
|
____________________________________________
(1) The three months ended June 30, 2023 includes restructuring expenses of
(2) The six months ended June 30, 2023 includes restructuring expenses of |
|||||||||||||||
Condensed Consolidated Statements of Income (unaudited, in thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
||||||||||||||||||||
|
2024 |
|
2023 |
|
% change |
|
2024 |
|
2023 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transportation |
$ |
4,121,930 |
|
|
$ |
4,084,827 |
|
|
0.9 |
% |
|
$ |
8,204,518 |
|
|
$ |
8,412,792 |
|
|
(2.5 |
)% |
Sourcing |
|
361,418 |
|
|
|
337,029 |
|
|
7.2 |
% |
|
|
691,141 |
|
|
|
620,734 |
|
|
11.3 |
% |
Total revenues |
|
4,483,348 |
|
|
|
4,421,856 |
|
|
1.4 |
% |
|
|
8,895,659 |
|
|
|
9,033,526 |
|
|
(1.5 |
)% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased transportation and related services |
|
3,470,383 |
|
|
|
3,453,560 |
|
|
0.5 |
% |
|
|
6,925,379 |
|
|
|
7,124,591 |
|
|
(2.8 |
)% |
Purchased products sourced for resale |
|
325,556 |
|
|
|
302,800 |
|
|
7.5 |
% |
|
|
625,142 |
|
|
|
557,799 |
|
|
12.1 |
% |
Personnel expenses |
|
361,222 |
|
|
|
377,277 |
|
|
(4.3 |
)% |
|
|
740,309 |
|
|
|
760,383 |
|
|
(2.6 |
)% |
Other selling, general, and administrative expenses |
|
148,097 |
|
|
|
155,596 |
|
|
(4.8 |
)% |
|
|
299,606 |
|
|
|
297,097 |
|
|
0.8 |
% |
Total costs and expenses |
|
4,305,258 |
|
|
|
4,289,233 |
|
|
0.4 |
% |
|
|
8,590,436 |
|
|
|
8,739,870 |
|
|
(1.7 |
)% |
Income from operations |
|
178,090 |
|
|
|
132,623 |
|
|
34.3 |
% |
|
|
305,223 |
|
|
|
293,656 |
|
|
3.9 |
% |
Interest and other income/expense, net |
|
(21,525 |
) |
|
|
(18,259 |
) |
|
17.9 |
% |
|
|
(38,305 |
) |
|
|
(46,524 |
) |
|
(17.7 |
)% |
Income before provision for income taxes |
|
156,565 |
|
|
|
114,364 |
|
|
36.9 |
% |
|
|
266,918 |
|
|
|
247,132 |
|
|
8.0 |
% |
Provision for income taxes |
|
30,314 |
|
|
|
17,048 |
|
|
77.8 |
% |
|
|
47,763 |
|
|
|
34,925 |
|
|
36.8 |
% |
Net income |
$ |
126,251 |
|
|
$ |
97,316 |
|
|
29.7 |
% |
|
$ |
219,155 |
|
|
$ |
212,207 |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share (basic) |
$ |
1.06 |
|
|
$ |
0.82 |
|
|
29.3 |
% |
|
$ |
1.84 |
|
|
$ |
1.79 |
|
|
2.8 |
% |
Net income per share (diluted) |
$ |
1.05 |
|
|
$ |
0.81 |
|
|
29.6 |
% |
|
$ |
1.83 |
|
|
$ |
1.77 |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding (basic) |
|
119,418 |
|
|
|
118,500 |
|
|
0.8 |
% |
|
|
119,381 |
|
|
|
118,567 |
|
|
0.7 |
% |
Weighted average shares outstanding (diluted) |
|
119,920 |
|
|
|
119,807 |
|
|
0.1 |
% |
|
|
119,732 |
|
|
|
119,820 |
|
|
(0.1 |
)% |
Business Segment Information (unaudited, in thousands, except average employee headcount) |
|||||||||||||
|
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
|||||
Three Months Ended June 30, 2024 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
2,989,909 |
|
$ |
921,223 |
|
$ |
572,216 |
|
|
$ |
4,483,348 |
Adjusted gross profits(1) |
|
|
419,657 |
|
|
184,067 |
|
|
83,685 |
|
|
|
687,409 |
Income (loss) from operations |
|
|
141,102 |
|
|
40,982 |
|
|
(3,994 |
) |
|
|
178,090 |
Depreciation and amortization |
|
|
5,525 |
|
|
2,793 |
|
|
16,736 |
|
|
|
25,054 |
Total assets(2) |
|
|
3,053,769 |
|
|
1,306,075 |
|
|
1,152,502 |
|
|
|
5,512,346 |
Average employee headcount |
|
|
5,868 |
|
|
4,652 |
|
|
3,954 |
|
|
|
14,474 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
|||||
Three Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
3,079,268 |
|
$ |
779,867 |
|
$ |
562,721 |
|
|
$ |
4,421,856 |
Adjusted gross profits(1) |
|
|
400,532 |
|
|
179,231 |
|
|
85,733 |
|
|
|
665,496 |
Income (loss) from operations |
|
|
117,859 |
|
|
29,647 |
|
|
(14,883 |
) |
|
|
132,623 |
Depreciation and amortization |
|
|
5,856 |
|
|
5,484 |
|
|
14,635 |
|
|
|
25,975 |
Total assets(2) |
|
|
3,106,092 |
|
|
1,149,091 |
|
|
1,150,078 |
|
|
|
5,405,261 |
Average employee headcount |
|
|
6,497 |
|
|
5,225 |
|
|
4,363 |
|
|
|
16,085 |
____________________________________________ (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. |
|||||||||||||
Business Segment Information (unaudited, in thousands, except average employee headcount) |
|||||||||||||
|
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
|||||
Six Months Ended June 30, 2024 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
5,990,222 |
|
$ |
1,779,860 |
|
$ |
1,125,577 |
|
|
$ |
8,895,659 |
Adjusted gross profits(1) |
|
|
816,767 |
|
|
364,112 |
|
|
164,259 |
|
|
|
1,345,138 |
Income (loss) from operations |
|
|
249,997 |
|
|
72,534 |
|
|
(17,308 |
) |
|
|
305,223 |
Depreciation and amortization |
|
|
10,875 |
|
|
5,637 |
|
|
32,420 |
|
|
|
48,932 |
Total assets(2) |
|
|
3,053,769 |
|
|
1,306,075 |
|
|
1,152,502 |
|
|
|
5,512,346 |
Average employee headcount |
|
|
5,929 |
|
|
4,770 |
|
|
4,032 |
|
|
|
14,731 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global Forwarding |
|
All Other and Corporate |
|
Consolidated |
|||||
Six Months Ended June 30, 2023 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
6,383,455 |
|
$ |
1,569,845 |
|
$ |
1,080,226 |
|
|
$ |
9,033,526 |
Adjusted gross profits(1) |
|
|
827,187 |
|
|
357,150 |
|
|
166,799 |
|
|
|
1,351,136 |
Income (loss) from operations |
|
|
251,881 |
|
|
59,763 |
|
|
(17,988 |
) |
|
|
293,656 |
Depreciation and amortization |
|
|
11,507 |
|
|
10,964 |
|
|
27,884 |
|
|
|
50,355 |
Total assets(2) |
|
|
3,106,092 |
|
|
1,149,091 |
|
|
1,150,078 |
|
|
|
5,405,261 |
Average employee headcount |
|
|
6,713 |
|
|
5,356 |
|
|
4,454 |
|
|
|
16,523 |
____________________________________________ (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) |
|||||
|
June 30, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
113,166 |
|
$ |
145,524 |
Receivables, net of allowance for credit loss |
|
2,650,800 |
|
|
2,381,963 |
Contract assets, net of allowance for credit loss |
|
260,401 |
|
|
189,900 |
Prepaid expenses and other |
|
154,807 |
|
|
163,307 |
Total current assets |
|
3,179,174 |
|
|
2,880,694 |
|
|
|
|
||
Property and equipment, net of accumulated depreciation and amortization |
|
139,636 |
|
|
144,718 |
Right-of-use lease assets |
|
351,823 |
|
|
353,890 |
Intangible and other assets, net of accumulated amortization |
|
1,841,713 |
|
|
1,845,978 |
Total assets |
$ |
5,512,346 |
|
$ |
5,225,280 |
|
|
|
|
||
Liabilities and stockholders’ investment |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and outstanding checks |
$ |
1,488,632 |
|
$ |
1,370,334 |
Accrued expenses: |
|
|
|
||
Compensation |
|
120,819 |
|
|
135,104 |
Transportation expense |
|
211,310 |
|
|
147,921 |
Income taxes |
|
2,483 |
|
|
4,748 |
Other accrued liabilities |
|
158,846 |
|
|
159,435 |
Current lease liabilities |
|
74,123 |
|
|
74,451 |
Current portion of debt |
|
188,000 |
|
|
160,000 |
Total current liabilities |
|
2,244,213 |
|
|
2,051,993 |
|
|
|
|
||
Long-term debt |
|
1,421,066 |
|
|
1,420,487 |
Noncurrent lease liabilities |
|
299,564 |
|
|
297,563 |
Noncurrent income taxes payable |
|
21,611 |
|
|
21,289 |
Deferred tax liabilities |
|
11,929 |
|
|
13,177 |
Other long-term liabilities |
|
3,522 |
|
|
2,074 |
Total liabilities |
|
4,001,905 |
|
|
3,806,583 |
|
|
|
|
||
Total stockholders’ investment |
|
1,510,441 |
|
|
1,418,697 |
Total liabilities and stockholders’ investment |
$ |
5,512,346 |
|
$ |
5,225,280 |
Condensed Consolidated Statements of Cash Flow (unaudited, in thousands, except operational data) |
|||||||
|
Six Months Ended June 30, |
||||||
Operating activities: |
2024 |
|
2023(1) |
||||
|
|
|
|
||||
Net income |
$ |
219,155 |
|
|
$ |
212,207 |
|
Adjustments to reconcile net income to net cash (used for) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
48,932 |
|
|
|
50,355 |
|
Provision for credit losses |
|
4,298 |
|
|
|
(8,397 |
) |
Stock-based compensation |
|
42,245 |
|
|
|
21,642 |
|
Deferred income taxes |
|
(13,392 |
) |
|
|
(21,825 |
) |
Excess tax benefit on stock-based compensation |
|
(2,274 |
) |
|
|
(8,645 |
) |
Other operating activities |
|
10,841 |
|
|
|
3,080 |
|
Changes in operating elements: |
|
|
|
||||
Receivables |
|
(290,042 |
) |
|
|
501,210 |
|
Contract assets |
|
(70,514 |
) |
|
|
69,662 |
|
Prepaid expenses and other |
|
8,034 |
|
|
|
(23,834 |
) |
Right of use asset |
|
(3,093 |
) |
|
|
28,728 |
|
Accounts payable and outstanding checks |
|
122,404 |
|
|
|
(125,090 |
) |
Accrued compensation |
|
(13,276 |
) |
|
|
(130,197 |
) |
Accrued transportation expenses |
|
63,389 |
|
|
|
(56,524 |
) |
Accrued income taxes |
|
(60 |
) |
|
|
3,308 |
|
Other accrued liabilities |
|
1,108 |
|
|
|
(9,611 |
) |
Lease liability |
|
3,248 |
|
|
|
(26,663 |
) |
Other assets and liabilities |
|
2,096 |
|
|
|
(30 |
) |
Net cash provided by operating activities |
|
133,099 |
|
|
|
479,376 |
|
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(15,238 |
) |
|
|
(21,679 |
) |
Purchases and development of software |
|
(26,573 |
) |
|
|
(29,622 |
) |
Net cash used for investing activities |
|
(41,811 |
) |
|
|
(51,301 |
) |
Financing activities: |
|
|
|
||||
Proceeds from stock issued for employee benefit plans |
|
19,026 |
|
|
|
36,684 |
|
Stock tendered for payment of withholding taxes |
|
(19,808 |
) |
|
|
(21,853 |
) |
Repurchase of common stock |
|
— |
|
|
|
(62,754 |
) |
Cash dividends |
|
(147,283 |
) |
|
|
(146,195 |
) |
Proceeds from short-term borrowings |
|
1,653,000 |
|
|
|
1,861,750 |
|
Payments on short-term borrowings |
|
(1,625,000 |
) |
|
|
(2,099,750 |
) |
Net cash used for financing activities |
|
(120,065 |
) |
|
|
(432,118 |
) |
Effect of exchange rates on cash and cash equivalents |
|
(3,581 |
) |
|
|
(3,284 |
) |
Net change in cash and cash equivalents |
|
(32,358 |
) |
|
|
(7,327 |
) |
Cash and cash equivalents, beginning of period |
|
145,524 |
|
|
|
217,482 |
|
Cash and cash equivalents, end of period |
$ |
113,166 |
|
|
$ |
210,155 |
|
|
As of June 30, |
||||||
Operational Data: |
2024 |
|
2023 |
||||
Employees |
|
14,213 |
|
|
|
15,763 |
|
____________________________________________ (1) The six months ended June 30, 2023 has been adjusted to conform to current year presentation. |
|||||||
CHRW-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731553374/en/
Chuck Ives, Director of Investor Relations
Email: chuck.ives@chrobinson.com
Source: C.H. Robinson
