Market Overview

C.H. Robinson Reports 2020 Third Quarter Results

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C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ:CHRW) today reported financial results for the quarter ended September 30, 2020.

Third Quarter Key Metrics:

  • Total revenues increased 9.6 percent to $4.2 billion
  • Net revenues decreased 7.0 percent to $589.3 million
  • Income from operations decreased 16.3 percent to $168.2 million
  • Operating margin decreased 310 basis points to 28.6 percent
  • Diluted earnings per share (EPS) decreased 6.5 percent to $1.00
  • Cash flow from operations decreased $335.9 million to $168.6 million used by operations

"We were able to deliver solid performance across our diversified business portfolio and improve our results as the quarter progressed due to the efforts of our C.H. Robinson team members around the world," said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. "We also continued to make progress on our strategic, long-term initiatives around profitable market share gains, productivity improvements and technology advancements."

Biesterfeld continued, "Against a challenging backdrop, we delivered on our contractual commitments with acceptance rates that were above the industry average, while also serving customers' needs in the spot market."

Summary of Third Quarter Results Compared to the Third Quarter of 2019

  • Total revenues increased 9.6 percent to $4.2 billion, driven primarily by higher pricing and higher volume across most of our service lines.
  • Net revenues decreased 7.0 percent to $589.3 million, primarily driven by rising costs and lower margin in truckload services, partially offset by contributions from the acquisition of Prime Distribution Services ("Prime") and higher pricing in most of our service lines.
  • Operating expenses decreased 2.6 percent to $421.0 million, primarily due to approximately $40 million of cost savings. Personnel expenses decreased 5.5 percent to $302.9 million, driven primarily by short-term cost reductions. Average headcount decreased 5.6 percent, which included headcount additions from Prime that added approximately 2.0 percentage points. Average full-time equivalents decreased 7.6 percent due to furloughs and reduced work hours that were implemented in the second quarter and ended in the third quarter. Selling, general and administrative ("SG&A") expenses of $118.1 million increased 5.7 percent, primarily due to the ongoing expenses from the acquisition of Prime and the prior year period benefiting from a $5.8 million gain on the sale of an office building in Chicago, partially offset by significantly lower travel expenses.
  • Income from operations totaled $168.2 million, down 16.3 percent due to declining net revenues. Operating margin of 28.6 percent declined 310 basis points.
  • Interest and other expenses totaled $7.5 million, consisting primarily of $11.9 million of interest expense, which decreased $0.8 million versus last year due to a lower average debt balance. The third quarter also included a $3.3 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
  • The effective tax rate in the quarter was 15.1 percent compared to 21.8 percent in the third quarter last year. The lower effective tax rate was due primarily to the discrete benefits from foreign tax credit utilization and additional deductions from increased employee stock option activity in the third quarter.
  • Net income totaled $136.5 million, down 7.1 percent from a year ago. Diluted EPS of $1.00 decreased 6.5 percent.

Summary of Year-to-Date Results Compared to the Same Period in 2019

  • Total revenues increased 1.2 percent to $11.7 billion, driven by higher pricing in air and ocean services, largely offset by a decline in truckload revenue.
  • Net revenues decreased 11.7 percent to $1.8 billion, primarily driven by lower margin in truckload services, partially offset by contributions from the Prime acquisition and margin expansion in air services.
  • Operating expenses decreased 3.6 percent to $1.3 billion. Personnel expenses decreased 6.6 percent to $933.6 million, driven primarily by cost reductions, including a 2.6 percent decrease in average headcount, and a decline in variable compensation. SG&A expenses increased 4.8 percent to $371.6 million, due primarily to ongoing expenses from the Prime acquisition, an $11.5 million loss on the sale-leaseback of a company-owned data center, and an increase in purchased services, partially offset by significantly lower travel expenses.
  • Income from operations totaled $466.5 million, down 28.6 percent from last year due to declining net revenues. Operating margin of 26.3 percent decreased 620 basis points.
  • Interest and other expenses totaled $32.9 million, which primarily consists of $36.6 million of interest expense. The nine-month period also included a $2.2 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
  • The effective tax rate for the nine months was 17.3 percent compared to 22.5 percent in the year-ago period. The lower effective tax rate was due primarily to the tax benefit related to stock-based compensation and the discrete benefits of foreign tax credit utilization.
  • Net income totaled $358.6 million, down 25.0 percent from a year ago. Diluted EPS of $2.63 decreased 23.8 percent.

North American Surface Transportation Results

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

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

2,923,842

 

 

$

2,826,308

 

 

3.5

 

%

 

$

8,222,879

 

 

$

8,495,145

 

 

(3.2

)

%

Net revenues

367,943

 

 

433,760

 

 

(15.2

)

%

 

1,120,277

 

 

1,406,728

 

 

(20.4

)

%

Income from operations

122,526

 

 

176,200

 

 

(30.5

)

%

 

357,898

 

 

592,215

 

 

(39.6

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter total revenues for C.H. Robinson's NAST segment totaled $2.9 billion, an increase of 3.5 percent over the prior year, primarily driven by higher truckload pricing and an increase in less than truckload ("LTL") shipments. NAST net revenues decreased 15.2 percent in the quarter to $367.9 million, with the March 2020 acquisition of Prime contributing 3.5 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased 24.1 percent, less than truckload net revenues decreased 4.4 percent, and intermodal net revenues increased 6.1 percent versus the year-ago period. Excluding fuel surcharges and costs, average North America truckload linehaul rate per mile charged to customers increased approximately 10.5 percent in the quarter, while truckload linehaul cost per mile increased approximately 16.5 percent. Truckload volume increased 0.5 percent in the quarter, and LTL volumes grew 13.5 percent, both representing market share gains in the quarter when compared to an 8 percent decline in industry volumes, as measured by the Cass Freight Index. Intermodal volumes grew 2.5 percent versus the prior year. Operating expenses decreased 4.7 percent primarily due to short-term cost reductions. Income from operations decreased 30.5 percent to $122.5 million, and operating margin declined 730 basis points to 33.3 percent. NAST average headcount was down 10.0 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 13.4 percent.

Global Forwarding Results

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

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

831,957

 

 

$

597,695

 

 

39.2

%

 

$

2,070,161

 

 

$

1,727,745

 

 

19.8

%

Net revenues

157,657

 

 

135,815

 

 

16.1

%

 

448,931

 

 

404,987

 

 

10.9

%

Income from operations

46,299

 

 

24,676

 

 

87.6

%

 

117,033

 

 

65,497

 

 

78.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter total revenues for the Global Forwarding segment increased 39.2 percent to $832.0 million, primarily driven by higher pricing in ocean and higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased 16.1 percent in the quarter to $157.7 million. Ocean net revenues increased 14.3 percent, driven primarily by higher pricing and a 1.5 percent increase in volumes. Net revenues in air increased 29.2 percent driven by higher pricing, partially offset by a 19.0 percent decline in shipments. Customs net revenues decreased 5.3 percent, primarily driven by a 2.5 percent reduction in transaction volume. Operating expenses increased 0.2 percent, primarily driven by increased incentive compensation in personnel expenses and partially offset by short-term cost reductions. Third quarter average headcount decreased 3.8 percent, and average full-time equivalents decreased 4.7 percent. Income from operations increased 87.6 percent to $46.3 million, and operating margin expanded 1,120 basis points to 29.4 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 September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

469,001

 

 

$

432,129

 

 

8.5

 

%

 

$

1,364,614

 

 

$

1,293,292

 

 

5.5

 

%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Robinson Fresh

$

24,449

 

 

$

26,382

 

 

(7.3

)

%

 

$

82,109

 

 

$

86,276

 

 

(4.8

)

%

Managed Services

24,060

 

 

21,574

 

 

11.5

 

%

 

70,090

 

 

61,985

 

 

13.1

 

%

Other Surface Transportation

15,164

 

 

15,900

 

 

(4.6

)

%

 

50,272

 

 

47,471

 

 

5.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter Robinson Fresh net revenues decreased 7.3 percent to $24.4 million, primarily due to a 4.0 percent decrease in case volume, which was driven by a decline in foodservice volume. Managed Services net revenues increased 11.5 percent in the quarter, primarily due to a 17.0 percent increase in volume. Other Surface Transportation net revenues decreased 4.6 percent to $15.2 million. Europe truckload net revenue was down 7 percent in the quarter.

Other Income Statement Items

The third quarter effective tax rate was 15.1 percent, down from 21.8 percent last year. The lower effective tax rate was due primarily to discrete benefits from foreign tax credit utilization and the tax benefit from increased stock option activity in the third quarter. We now expect our 2020 full-year effective tax rate to be 18 to 20 percent.

Interest and other expenses totaled $7.5 million, consisting primarily of $11.9 million of interest expense, which decreased $0.8 million versus last year due to a lower average debt balance. The third quarter also included a $3.3 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.

Diluted weighted average shares outstanding in the quarter were down 0.3 percent due primarily to share repurchases over the past twelve months.

Cash Flow Generation and Capital Distribution

Cash used by operations totaled $168.6 million in the third quarter, compared to $167.3 million of cash generated in the third quarter of 2019. The $336 million decrease in cash flow was driven primarily by a $362 million sequential increase in accounts receivable and contract assets that coincided with an increase in gross sales.

In the third quarter, $71.9 million was returned to shareholders, with $70.3 million in cash dividends and $1.6 million in share repurchases related to employee benefit plans.

Capital expenditures totaled $15.2 million in the quarter. Full-year 2020 capital expenditures are now expected to be $50 million to $55 million, with the majority dedicated to technology.

Outlook

"We believe we are still in the midst of a strengthening freight cycle that we anticipate will continue into 2021. Freight markets are continuing to tighten in the fourth quarter due to higher demand as we enter the holiday season and lower availability of carrier capacity. At C.H. Robinson, we'll continue to evaluate our global business operations to ensure we manage our business in the most efficient manner, deliver industry leading technology to unlock growth and efficiency, create better outcomes for our customers and carriers by utilizing our unmatched combination of experience, global suite of services, scale and information advantage, grow profitable market share, and drive the transformation of C.H. Robinson, so that we can emerge 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 Third Quarter 2020 Earnings Conference Call

Wednesday, October 28, 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 September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

% change

 

2020

 

2019

 

% change

Total revenues

$

4,224,800

 

 

$

3,856,132

 

 

9.6

 

%

 

$

11,657,654

 

 

$

11,516,182

 

 

1.2

 

%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload

$

251,072

 

 

$

317,990

 

 

(21.0

)

%

 

$

794,364

 

 

$

1,067,334

 

 

(25.6

)

%

LTL

118,561

 

 

124,523

 

 

(4.8

)

%

 

339,426

 

 

363,743

 

 

(6.7

)

%

Intermodal

7,455

 

 

7,110

 

 

4.9

 

%

 

22,775

 

 

19,484

 

 

16.9

 

%

Ocean

88,927

 

 

77,879

 

 

14.2

 

%

 

237,682

 

 

234,884

 

 

1.2

 

%

Air

34,977

 

 

27,121

 

 

29.0

 

%

 

115,720

 

 

80,837

 

 

43.2

 

%

Customs

22,464

 

 

23,719

 

 

(5.3

)

%

 

63,118

 

 

68,903

 

 

(8.4

)

%

Other logistics services

42,874

 

 

30,025

 

 

42.8

 

%

 

121,271

 

 

90,472

 

 

34.0

 

%

Total transportation

566,330

 

 

608,367

 

 

(6.9

)

%

 

1,694,356

 

 

1,925,657

 

 

(12.0

)

%

Sourcing

22,943

 

 

25,064

 

 

(8.5

)

%

 

77,323

 

 

81,790

 

 

(5.5

)

%

Total net revenues

589,273

 

 

633,431

 

 

(7.0

)

%

 

1,771,679

 

 

2,007,447

 

 

(11.7

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

421,034

 

 

432,346

 

 

(2.6

)

%

 

1,305,213

 

 

1,354,277

 

 

(3.6

)

%

Income from operations

168,239

 

 

201,085

 

 

(16.3

)

%

 

466,466

 

 

653,170

 

 

(28.6

)

%

Net income

$

136,529

 

 

$

146,894

 

 

(7.1

)

%

 

$

358,614

 

 

$

477,862

 

 

(25.0

)

%

Diluted EPS

$

1.00

 

 

$

1.07

 

 

(6.5

)

%

 

$

2.63

 

 

$

3.45

 

 

(23.8

)

%

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 September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

Transportation

$

3,944,981

 

 

$

3,608,346

 

 

$

10,835,710

 

 

$

10,751,890

 

Sourcing

279,819

 

 

247,786

 

 

821,944

 

 

764,292

 

Total revenues

4,224,800

 

 

3,856,132

 

 

11,657,654

 

 

11,516,182

 

Costs and expenses:

 

 

 

 

 

 

 

Purchased transportation and related services

3,378,651

 

 

2,999,979

 

 

9,141,354

 

 

8,826,233

 

Purchased products sourced for resale

256,876

 

 

222,722

 

 

744,621

 

 

682,502

 

Total costs and expenses

3,635,527

 

 

3,222,701

 

 

9,885,975

 

 

9,508,735

 

Total net revenues

$

589,273

 

 

$

633,431

 

 

$

1,771,679

 

 

$

2,007,447

 

 

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Transportation

$

3,944,981

 

 

 

$

3,608,346

 

 

 

$

10,835,710

 

 

 

$

10,751,890

 

 

Sourcing

279,819

 

 

 

247,786

 

 

 

821,944

 

 

 

764,292

 

 

Total revenues

4,224,800

 

 

 

3,856,132

 

 

 

11,657,654

 

 

 

11,516,182

 

 

Costs and expenses:

 

 

 

 

 

 

 

Purchased transportation and related services

3,378,651

 

 

 

2,999,979

 

 

 

9,141,354

 

 

 

8,826,233

 

 

Purchased products sourced for resale

256,876

 

 

 

222,722

 

 

 

744,621

 

 

 

682,502

 

 

Personnel expenses

302,904

 

 

 

320,563

 

 

 

933,607

 

 

 

999,547

 

 

Other selling, general, and administrative expenses

118,130

 

 

 

111,783

 

 

 

371,606

 

 

 

354,730

 

 

Total costs and expenses

4,056,561

 

 

 

3,655,047

 

 

 

11,191,188

 

 

 

10,863,012

 

 

Income from operations

168,239

 

 

 

201,085

 

 

 

466,466

 

 

 

653,170

 

 

Interest and other expense

(7,465

)

 

 

(13,180

)

 

 

(32,904

)

 

 

(36,935

)

 

Income before provision for income taxes

160,774

 

 

 

187,905

 

 

 

433,562

 

 

 

616,235

 

 

Provision for income taxes

24,245

 

 

 

41,011

 

 

 

74,948

 

 

 

138,373

 

 

Net income

$

136,529

 

 

 

$

146,894

 

 

 

$

358,614

 

 

 

$

477,862

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

$

1.01

 

 

 

$

1.08

 

 

 

$

2.65

 

 

 

$

3.48

 

 

Net income per share (diluted)

$

1.00

 

 

 

$

1.07

 

 

 

$

2.63

 

 

 

$

3.45

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

135,671

 

 

 

136,380

 

 

 

135,385

 

 

 

137,274

 

 

Weighted average shares outstanding (diluted)

137,128

 

 

 

137,476

 

 

 

136,137

 

 

 

138,373

 

 

 

Business Segment Information

(unaudited, dollars in thousands)

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Three Months Ended September 30, 2020

 

 

 

 

 

 

 

 

Total revenues

 

$

2,923,842

 

 

$

831,957

 

 

$

469,001

 

 

 

$

4,224,800

 

Net revenues

 

367,943

 

 

157,657

 

 

63,673

 

 

 

589,273

 

Income (loss) from operations

 

122,526

 

 

46,299

 

 

(586

)

 

 

168,239

 

Depreciation and amortization

 

7,095

 

 

9,385

 

 

10,436

 

 

 

26,916

 

Total assets (1)

 

3,041,974

 

 

1,148,118

 

 

884,746

 

 

 

5,074,838

 

Average headcount

 

6,702

 

 

4,607

 

 

3,595

 

 

 

14,904

 

Average full-time equivalents(2)

 

6,351

 

 

4,430

 

 

3,449

 

 

 

14,230

 

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Three Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

2,826,308

 

 

$

597,695

 

 

$

432,129

 

 

 

$

3,856,132

 

Net revenues

 

433,760

 

 

135,815

 

 

63,856

 

 

 

633,431

 

Income from operations

 

176,200

 

 

24,676

 

 

209

 

 

 

201,085

 

Depreciation and amortization

 

5,734

 

 

9,186

 

 

10,560

 

 

 

25,480

 

Total assets (1)

 

2,649,259

 

 

995,137

 

 

992,153

 

 

 

4,636,549

 

Average headcount

 

7,448

 

 

4,790

 

 

3,544

 

 

 

15,782

 

Average full-time equivalents(2)

 

7,332

 

 

4,647

 

 

3,425

 

 

 

15,404

 

____________________________________________

(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

Nine Months Ended September 30, 2020

 

 

 

 

 

 

 

 

Total revenues

 

$

8,222,879

 

 

$

2,070,161

 

 

$

1,364,614

 

 

 

$

11,657,654

 

Net revenues

 

1,120,277

 

 

448,931

 

 

202,471

 

 

 

1,771,679

 

Income (loss) from operations

 

357,898

 

 

117,033

 

 

(8,465

)

 

 

466,466

 

Depreciation and amortization

 

19,550

 

 

27,740

 

 

29,777

 

 

 

77,067

 

Total assets (1)

 

3,041,974

 

 

1,148,118

 

 

884,746

 

 

 

5,074,838

 

Average headcount

 

6,870

 

 

4,716

 

 

3,591

 

 

 

15,177

 

 

 

 

 

 

 

 

 

 

 

 

NAST

 

Global

Forwarding

 

All

Other and

Corporate

 

Consolidated

Nine Months Ended September 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

8,495,145

 

 

$

1,727,745

 

 

$

1,293,292

 

 

 

$

11,516,182

 

Net revenues

 

1,406,728

 

 

404,987

 

 

195,732

 

 

 

2,007,447

 

Income (loss) from operations

 

592,215

 

 

65,497

 

 

(4,542

)

 

 

653,170

 

Depreciation and amortization

 

18,124

 

 

27,427

 

 

29,571

 

 

 

75,122

 

Total assets (1)

 

2,649,259

 

 

995,137

 

 

992,153

 

 

 

4,636,549

 

Average headcount

 

7,436

 

 

4,748

 

 

3,398

 

 

 

15,582

 

____________________________________________

(1)

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

 

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

 

 

September 30, 2020

 

December 31, 2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

252,569

 

 

$

447,858

 

Receivables, net of allowance for credit loss

2,346,384

 

 

1,974,381

 

Contract assets, net of allowance for credit loss

187,973

 

 

132,874

 

Prepaid expenses and other

65,773

 

 

85,005

 

Total current assets

2,852,699

 

 

2,640,118

 

 

 

 

 

Property and equipment, net

183,244

 

 

208,423

 

Right-of-use lease assets

339,819

 

 

310,860

 

Intangible and other assets

1,699,076

 

 

1,481,659

 

Total assets

$

5,074,838

 

 

$

4,641,060

 

 

 

 

 

Liabilities and stockholders' investment

 

 

 

Current liabilities:

 

 

 

Accounts payable and outstanding checks

$

1,268,905

 

 

$

1,062,835

 

Accrued expenses:

 

 

 

Compensation

130,958

 

 

112,784

 

Transportation expense

147,590

 

 

101,194

 

Income taxes

12,074

 

 

12,354

 

Other accrued liabilities

74,781

 

 

62,706

 

Current lease liabilities

66,692

 

 

61,280

 

Current portion of debt

59,979

 

 

142,885

 

Total current liabilities

1,760,979

 

 

1,556,038

 

 

 

 

 

Long-term debt

1,093,087

 

 

1,092,448

 

Noncurrent lease liabilities

279,212

 

 

259,444

 

Noncurrent income taxes payable

22,981

 

 

22,354

 

Deferred tax liabilities

44,942

 

 

39,776

 

Other long-term liabilities

278

 

 

270

 

Total liabilities

3,201,479

 

 

2,970,330

 

 

 

 

 

Total stockholders' investment

1,873,359

 

 

1,670,730

 

Total liabilities and stockholders' investment

$

5,074,838

 

 

$

4,641,060

 

 

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

 

 

Nine Months Ended September 30,

 

2020

 

2019

Operating activities:

 

 

 

Net income

$

358,614

 

 

 

$

477,862

 

 

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

 

 

 

Depreciation and amortization

77,067

 

 

 

75,122

 

 

Provision for credit losses

12,701

 

 

 

642

 

 

Stock-based compensation

33,127

 

 

 

40,657

 

 

Deferred income taxes

(9,468

)

 

 

(3,360

)

 

Excess tax benefit on stock-based compensation

(17,127

)

 

 

(6,908

)

 

Other operating activities

13,104

 

 

 

(4,471

)

 

Changes in operating elements, net of acquisitions:

 

 

 

Receivables

(367,538

)

 

 

104,108

 

 

Contract assets

(56,131

)

 

 

9,067

 

 

Prepaid expenses and other

12,331

 

 

 

(18,940

)

 

Accounts payable and outstanding checks

186,755

 

 

 

3,871

 

 

Accrued compensation

16,458

 

 

 

(45,319

)

 

Accrued transportation expenses

46,396

 

 

 

(5,323

)

 

Accrued income taxes

17,125

 

 

 

(7,042

)

 

Other accrued liabilities

8,907

 

 

 

5,210

 

 

Other assets and liabilities

4,728

 

 

 

(1,318

)

 

Net cash provided by operating activities

337,049

 

 

 

623,858

 

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

(17,446

)

 

 

(26,661

)

 

Purchases and development of software

(22,815

)

 

 

(24,282

)

 

Acquisitions, net of cash acquired

(223,230

)

 

 

(59,188

)

 

Other investing activities

5,525

 

 

 

16,625

 

 

Net cash used for investing activities

(257,966

)

 

 

(93,506

)

 

 

 

 

 

Financing activities:

 

 

 

Proceeds from stock issued for employee benefit plans

100,542

 

 

 

40,442

 

 

Total repurchases of common stock

(85,098

)

 

 

(255,655

)

 

Cash dividends

(207,428

)

 

 

(207,865

)

 

Proceeds from long-term borrowings

 

 

 

929,000

 

 

Payments on long-term borrowings

 

 

 

(1,018,000

)

 

Proceeds from short-term borrowings

1,043,600

 

 

 

14,000

 

 

Payments on short-term borrowings

(1,126,600

)

 

 

(19,000

)

 

Net cash used for financing activities

(274,984

)

 

 

(517,078

)

 

Effect of exchange rates on cash

612

 

 

 

(7,465

)

 

 

 

 

 

Net change in cash and cash equivalents

(195,289

)

 

 

5,809

 

 

Cash and cash equivalents, beginning of period

447,858

 

 

 

378,615

 

 

Cash and cash equivalents, end of period

$

252,569

 

 

 

$

384,424

 

 

 

 

 

 

 

As of September 30,

Operational Data:

2020

 

2019

Employees

14,695

 

 

 

15,654

 

 

Source: C.H. Robinson

CHRW-IR

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