MINNEAPOLIS--(BUSINESS WIRE)--C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2016. Summarized financial results are as follows (dollars in thousands, except per share data):
|Three months ended June 30,||Six months ended June 30,|
|Other logistics services||26,171||21,104||24.0%||50,194||40,895||22.7%|
|Total net revenues||594,215||584,018||1.7%||1,157,550||1,109,128||4.4%|
Our truckload net revenues decreased 1.4 percent in the second quarter of 2016 compared to the second quarter of 2015. Our total truckload volumes increased approximately three percent in the second quarter of 2016 compared to the second quarter of 2015. North American truckload volumes also increased approximately three percent over the same period. Our truckload net revenue margin increased in the second quarter of 2016 compared to the second quarter of 2015, due primarily to lower transportation costs. In North America, excluding the estimated impacts of the change in fuel prices, our average truckload rate per mile charged to our customers decreased approximately 7.5 percent in the second quarter of 2016 compared to the second quarter of 2015. In North America, our truckload transportation costs decreased approximately eight percent, excluding the estimated impacts of the change in fuel prices.
Our less than truckload (“LTL”) net revenues increased nine percent in the second quarter of 2016 compared to the second quarter of 2015. LTL volumes increased approximately seven percent in the second quarter of 2016 compared to the second quarter of 2015. Net revenue margin increased in the second quarter of 2016 compared to the second quarter of 2015.
Our intermodal net revenues decreased 21.8 percent in the second quarter of 2016 compared to the second quarter of 2015. This was primarily due to decreased volumes and net revenue margin declines. During the second quarter of 2016, intermodal opportunities were negatively impacted by the alternative lower cost truck market.
Our ocean transportation net revenues increased 1.7 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase in net revenues was primarily due to increased net revenue margin and volumes, offset partially by pricing declines.
Our air transportation net revenues increased 2.7 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase was due to increased net revenue margin and an increase in volumes, offset partially by pricing declines.
Our customs net revenues increased 5.8 percent in the second quarter of 2016 compared to the second quarter of 2015. The increase was primarily due to increased transaction volumes.
Our other logistics services net revenues, which includes managed services, warehousing, and small parcel, increased 24.0 percent in the second quarter of 2016 compared to the second quarter of 2015 primarily from growth in managed services.
Sourcing net revenues increased 5.7 percent in the second quarter of 2016 compared to the second quarter of 2015. This increase was primarily due to a case volume increase across a variety of commodities and services and an increase in net revenue per case.
For the second quarter, operating expenses increased 1.6 percent to $360.5 million in 2016 from $354.9 million in 2015. Operating expenses as a percentage of net revenues decreased to 60.7 percent in the second quarter of 2016 from 60.8 percent in the second quarter of 2015.
For the second quarter, personnel expenses increased 2.4 percent to $270.3 million in 2016 from $264.0 million in 2015. For the second quarter, our average headcount grew 5.2 percent compared to the second quarter of 2015. The increase in personnel expense was less than the increase in average headcount due to decreased expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability.
For the second quarter, other selling, general, and administrative expenses decreased 0.8 percent to $90.2 million in 2016 from $90.9 million in 2015. This was primarily due to a decrease in the allowance for doubtful accounts, partially offset by increases in other areas including travel expenses.
About C.H. Robinson
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 110,000 active customers through a network of offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 68,000 transportation providers worldwide.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call and we undertake no obligation to update the replay.
Conference Call Information:
C.H. Robinson Worldwide Second Quarter 2016 Earnings Conference Call
Wednesday, July 27, 2016 8:30 a.m. Eastern Time
The call will be limited to 60 minutes, including questions and answers. We invite call participants to submit questions in advance of the conference call and we will respond to as many of the questions as we can in the time allowed. To submit your question(s) in advance of the call, please email firstname.lastname@example.org.
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
Callers should reference the conference ID, which is 13640751
Webcast replay available through Investor Relations link at www.chrobinson.com
Telephone audio replay available until 11:30 a.m. Eastern Time on August 4, 2016: 877-660-6853; passcode: 13640751#
International callers dial +1-201-612-7415
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME|
|(unaudited, in thousands, except per share data)|
Three months ended
Six months ended
|Costs and expenses:|
|Purchased transportation and related services||2,324,995||2,582,374||4,504,617||5,034,486|
|Purchased products sourced for resale||380,531||378,696||711,517||702,364|
|Other selling, general, and administrative expenses||90,217||90,924||177,103||178,965|
|Total costs and expenses||3,065,994||3,315,993||5,940,985||6,434,958|
|Income from operations||233,747||229,095||432,699||411,020|
|Interest and other expense||(6,265||)||(5,894||)||(15,037||)||(15,499||)|
|Income before provision for income taxes||227,482||223,201||417,662||395,521|
|Provisions for income taxes||84,392||85,993||155,609||151,837|
|Net income per share (basic)||$||1.00||$||0.94||$||1.83||$||1.67|
|Net income per share (diluted)||$||1.00||$||0.94||$||1.83||$||1.67|
|Weighted average shares outstanding (basic)||142,998||145,515||143,259||145,856|
|Weighted average shares outstanding (diluted)||143,216||145,679||143,437||146,020|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(unaudited, in thousands)|
|Cash and cash equivalents||$||207,083||$||168,229|
|Other current assets||69,388||56,849|
|Total current assets||1,879,102||1,730,698|
|Property and equipment, net||211,905||190,874|
|Intangible and other assets||1,258,063||1,262,786|
|Liabilities and stockholders’ investment|
|Accounts payable and outstanding checks||$||836,721||$||783,883|
|Accrued income taxes||42,094||12,573|
|Other accrued expenses||62,994||55,475|
|Current portion of debt||465,000||450,000|
|Total current liabilities||1,491,457||1,448,597|
|Noncurrent income taxes payable||18,615||19,634|
|Deferred tax liabilities||75,937||65,460|
|Other long term liabilities||221||217|
|Total stockholders’ investment||1,262,840||1,150,450|
|Total liabilities and stockholders’ investment||$||3,349,070||$||3,184,358|
|CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS|
|(unaudited, in thousands, except operational data)|
Six months ended
|Depreciation and amortization||35,059||32,682|
|Provision for doubtful accounts||2,144||9,053|
|Deferred income taxes||17,004||(1,780||)|
|Changes in operating elements, net of acquisitions:|
|Prepaid expenses and other||(19,066||)||(19,802||)|
|Other non-current assets||(1,615||)||736|
|Accounts payable and outstanding checks||52,843||56,891|
Accrued compensation and profit-sharing contribution
|Accrued income taxes||28,502||21,230|
|Other accrued liabilities||(755||)||(3,265||)|
|Net cash provided by operating activities||247,261||251,196|
|Purchases of property and equipment||(33,483||)||(11,542||)|
|Purchases and development of software||(10,493||)||(8,063||)|
|Acquisitions, net of cash||-||(369,143||)|
|Net cash used for investing activities||(44,381||)||(28,999||)|
|Borrowings on line of credit||2,840,000||3,893,000|
|Repayments on line of credit||(2,825,000||)||(3,868,000||)|
|Net repurchases of common stock||(66,249||)||(90,255||)|
|Excess tax benefit on stock-based compensation||15,104||6,040|
|Net cash used for financing activities||(163,665||)||(173,732||)|
|Effect of exchange rates on cash||(361||)||(5,954||)|
|Net change in cash and cash equivalents||38,854||42,511|
|Cash and cash equivalents, beginning of period||168,229||128,940|
|Cash and cash equivalents, end of period||$||207,083||$||171,451|
|As of June 30,|