C.H. Robinson Reports 2022 Fourth Quarter Results
Fourth Quarter Key Metrics:
-
Gross profits decreased 10.5% to
$761.5 million -
Income from operations decreased 42.9% to
$164.0 million - Adjusted operating margin(1) decreased 1,220 basis points to 21.4%
-
Diluted earnings per share (EPS) decreased 54.0% to
$0.80 -
Adjusted EPS(1) decreased 40.8% to
$1.03 -
Cash generated by operations improved to
$773.4 million
Full-Year
-
Gross profits increased 13.9% to
$3.6 billion -
Income from operations increased 17.1% to
$1.3 billion - Adjusted operating margin(1) increased 100 basis points to 35.3%
-
Diluted EPS increased 17.3% to
$7.40 -
Adjusted EPS(1) increased 20.8% to
$7.62 -
Cash generated by operations improved to
$1.7 billion
(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 and 12 for further discussion and GAAP to Non-GAAP reconciliations. |
"We're increasing our focus on delivering a scalable operating model to lower our costs, improve the customer and carrier experience and foster long-term profitable growth through cycles," said Scott Anderson, Interim Chief Executive Officer. "The current point in the cycle is one of shippers managing through elevated inventories amidst slowing economic growth, causing unseasonably soft demand for transportation services. At the same time, prices for ground transportation and global freight forwarding are declining due to the changing balance of supply and demand. While a correction in the freight forwarding market was certainly expected, the speed and magnitude of the correction in only two quarters was unexpected, with ocean rates on some trade lanes already back to pre-pandemic levels."
"I believe we’re uniquely positioned in the marketplace to deliver for our shippers, carriers and shareholders through a combination of our digital solutions, our global suite of services and our network of global logistics experts," Anderson added.
Summary of Fourth Quarter Results Compared to the Fourth Quarter of 2021
-
Total revenues decreased 22.1% to
$5.1 billion , driven by lower pricing and volume across most of our services. -
Gross profits decreased 10.5% to
$761.5 million . Adjusted gross profits decreased 10.3% to$768.2 million , primarily driven by lower adjusted gross profit per transaction in ocean and air. -
Operating expenses increased 6.2% to
$604.1 million . Personnel expenses increased 1.7% to$427.3 million , primarily due to$21.5 million of restructuring-related costs, which were partially offset by a decrease in equity compensation. Selling, general and administrative ("SG&A") expenses of$176.8 million increased 18.7%, primarily due to$15.2 million of restructuring charges, primarily related to an impairment of internally developed software, and increased legal settlements, partially offset by a decrease in credit losses. -
Income from operations totaled
$164.0 million , down 42.9% due to the decrease in adjusted gross profits and$36.7 million of restructuring charges. Adjusted operating margin of 21.4% declined 1,220 basis points. -
Interest and other income/expense, net totaled
$42.5 million of expense, consisting primarily of$24.8 million of interest expense, which increased$10.7 million versus last year due primarily to higher short-term average interest rates, and$16.9 million of foreign currency revaluation and realized foreign currency gains and losses, which increased$10.4 million versus last year primarily due to foreign currency revaluation on intercompany assets and liabilities denominated inU.S. Dollars in countries where theU.S. Dollar is not the functional currency. -
The effective tax rate in the quarter was 20.9% compared to 14.5% in the fourth quarter last year. The lower rate in the fourth quarter of last year was due primarily to a favorable mix of foreign earnings and an increased benefit related to
U.S. tax credits and incentives. -
Net income totaled
$96.2 million , down 58.2% from a year ago. Diluted EPS of$0.80 decreased 54.0%. Adjusted EPS of$1.03 decreased 40.8%.
Summary of Full Year Results Compared to 2021
-
Total revenues increased 6.9% to
$24.7 billion , driven primarily by higher pricing in truckload, less-than truckload ("LTL") and ocean services. -
Gross profits increased13.9% to
$3.6 billion . Adjusted gross profits increased 14.0% to$3.6 billion , primarily driven by higher adjusted gross profit per transaction in truckload and LTL services. -
Operating expenses increased 12.4% to
$2.3 billion . Personnel expenses increased 11.6% to$1.7 billion , primarily due to higher average employee headcount, which increased 11.7%. SG&A expenses increased 14.6% to$603.4 million , primarily due to increases in purchased and contracted services, legal settlements, travel expenses and an impairment of internally developed software, partially offset by a$25.3 million gain on the sale-leaseback of ourKansas City regional center and a decrease in credit losses. -
Income from operations totaled
$1.3 billion , up 17.1% from last year, primarily due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 35.3% increased 100 basis points. -
Interest and other income/expense, net totaled
$100.0 million of expense, which primarily consisted of$77.1 million of interest expense, which increased$25.0 million versus last year due to a higher average debt balance. The year-to-date results also included a$23.5 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses, which increased$8.4 million versus last year primarily due to foreign currency revaluation on intercompany assets and liabilities denominated inU.S. Dollars in countries where theU.S. Dollar is not the functional currency. -
The effective tax rate for the full year was 19.4% compared to 17.4% in the year-ago period. The lower rate in the year-ago period was due primarily to a favorable mix of foreign earnings and an increased benefit related to
U.S. tax credits and incentives. -
Net income totaled
$940.5 million , up 11.4% from a year ago. Diluted EPS of$7.40 increased 17.3%. Adjusted EPS of$7.62 increased 20.8%.
North American Surface Transportation ("NAST") Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||
Total revenues |
$ |
3,563,071 |
|
$ |
3,896,025 |
|
(8.5 |
) % |
|
$ |
15,827,467 |
|
$ |
14,507,917 |
|
9.1 |
% |
Adjusted gross profits(1) |
|
502,266 |
|
|
475,100 |
|
5.7 |
% |
|
|
2,196,704 |
|
|
1,792,953 |
|
22.5 |
% |
Income from operations |
|
162,550 |
|
|
148,440 |
|
9.5 |
% |
|
|
833,302 |
|
|
585,351 |
|
42.4 |
% |
____________________________________________ |
(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. |
Fourth 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 |
|
Twelve Months Ended |
||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||
Total revenues |
$ |
1,013,306 |
|
$ |
2,144,056 |
|
(52.7 |
) % |
|
$ |
6,812,008 |
|
$ |
6,729,790 |
|
1.2 |
% |
Adjusted gross profits(1) |
|
188,749 |
|
|
309,589 |
|
(39.0 |
) % |
|
|
1,083,473 |
|
|
1,073,541 |
|
0.9 |
% |
Income from operations |
|
28,216 |
|
|
146,800 |
|
(80.8 |
) % |
|
|
449,364 |
|
|
510,756 |
|
(12.0 |
) % |
____________________________________________ |
(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. |
Fourth quarter total revenues for the Global Forwarding segment decreased 52.7% to
All Other and Corporate Results
Total revenues and adjusted gross profits for
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||
Total revenues |
$ |
490,444 |
|
$ |
461,767 |
|
6.2 |
% |
|
$ |
2,057,150 |
|
$ |
1,864,431 |
|
10.3 |
% |
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
28,476 |
|
$ |
26,004 |
|
9.5 |
% |
|
$ |
121,639 |
|
$ |
107,543 |
|
13.1 |
% |
Managed Services |
|
29,799 |
|
|
26,554 |
|
12.2 |
% |
|
|
115,094 |
|
|
105,064 |
|
9.5 |
% |
Other Surface Transportation |
|
18,884 |
|
|
19,094 |
|
(1.1 |
) % |
|
|
76,267 |
|
|
72,988 |
|
4.5 |
% |
____________________________________________ |
(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. |
Fourth quarter
Other Income Statement Items
The fourth quarter effective tax rate was 20.9%, up from 14.5% last year. The lower rate in the fourth quarter of last year was due primarily to a favorable mix of foreign earnings and an increased benefit related to
Interest and other income/expense, net totaled
Diluted weighted average shares outstanding in the quarter were down 9.2% due primarily to share repurchases over the past twelve months.
Cash Flow Generation and Capital Distribution
Cash generated from operations totaled
In the fourth quarter of 2022, cash returned to shareholders increased 128% versus last year to
Capital expenditures totaled
Outlook
"As inflationary pressures continue to weigh on global economic growth and freight markets present cyclical challenges, we need to continue evolving our organization to bring greater focus to our highest long-term strategic priorities, including keeping the needs of our customers and carriers at the center of what we do while lowering our overall cost structure by driving scale," Anderson stated. "I believe in the strategy that the team is executing on to deliver a scalable operating model. We expect this initiative will continue to drive improvements in our customer and carrier experience and amplify the expertise of our people, all of which we believe will drive market share gains and growth. We expect these efforts will also improve our productivity, which will reduce our operating costs and lead to improved returns for our shareholders."
"Thank you to our employees for persevering during the period of extended market disruption and the market correction that has followed, and for continuing to provide industry-leading service to our customers and carriers," concluded Anderson.
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
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; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with significant disruptions in the transportation industry; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; risks with reliance on technology to operate our business; cyber-security related risks; risks associated with operations outside of
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 Fourth Quarter 2022 Earnings Conference Call
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756
International callers dial +1-201-689-7817
Adjusted Gross Profit by Service Line
|
|||||||||||||||||
|
|||||||||||||||||
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 have revenues from multiple service lines. |
|||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
||||||
Truckload |
|
346,845 |
|
$ |
339,512 |
|
2.2 |
% |
|
$ |
1,561,310 |
|
$ |
1,280,629 |
|
21.9 |
% |
LTL |
|
149,376 |
|
|
139,462 |
|
7.1 |
% |
|
|
632,116 |
|
|
523,365 |
|
20.8 |
% |
Ocean |
|
120,296 |
|
|
209,801 |
|
(42.7 |
)% |
|
|
729,839 |
|
|
711,223 |
|
2.6 |
% |
Air |
|
32,030 |
|
|
65,783 |
|
(51.3 |
)% |
|
|
198,166 |
|
|
225,286 |
|
(12.0 |
)% |
Customs |
|
24,495 |
|
|
25,338 |
|
(3.3 |
)% |
|
|
107,691 |
|
|
100,539 |
|
7.1 |
% |
Other logistics services |
|
68,909 |
|
|
52,508 |
|
31.2 |
% |
|
|
251,547 |
|
|
210,958 |
|
19.2 |
% |
Total transportation |
|
741,951 |
|
|
832,404 |
|
(10.9 |
)% |
|
|
3,480,669 |
|
|
3,052,000 |
|
14.0 |
% |
Sourcing |
|
26,223 |
|
|
23,937 |
|
9.6 |
% |
|
|
112,508 |
|
|
100,089 |
|
12.4 |
% |
Total adjusted gross profits |
|
768,174 |
|
$ |
856,341 |
|
(10.3 |
)% |
|
$ |
3,593,177 |
|
$ |
3,152,089 |
|
14.0 |
% |
____________________________________________ |
(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
|
|||||||||||||||||
|
|||||||||||||||||
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 |
|
Twelve Months Ended |
||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
$ |
4,798,027 |
|
$ |
6,245,998 |
|
(23.2 |
)% |
|
$ |
23,516,384 |
$ |
22,046,574 |
|
6.7 |
% |
|
Sourcing |
|
268,794 |
|
|
255,850 |
|
5.1 |
% |
|
|
1,180,241 |
|
|
1,055,564 |
|
11.8 |
% |
Total revenues |
|
5,066,821 |
|
|
6,501,848 |
|
(22.1 |
)% |
|
|
24,696,625 |
|
|
23,102,138 |
|
6.9 |
% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchased transportation and related services |
|
4,056,076 |
|
|
5,413,594 |
|
(25.1 |
)% |
|
|
20,035,715 |
|
|
18,994,574 |
|
5.5 |
% |
Purchased products sourced for resale |
|
242,571 |
|
|
231,913 |
|
4.6 |
% |
|
|
1,067,733 |
|
|
955,475 |
|
11.7 |
% |
Direct internally developed software amortization |
|
6,656 |
|
|
5,607 |
|
18.7 |
% |
|
|
25,487 |
|
|
20,208 |
|
26.1 |
% |
Total direct expenses |
|
4,305,303 |
|
|
5,651,114 |
|
(23.8 |
)% |
|
|
21,128,935 |
|
|
19,970,257 |
|
5.8 |
% |
Gross profit |
$ |
761,518 |
|
$ |
850,734 |
|
(10.5 |
)% |
|
$ |
3,567,690 |
|
$ |
3,131,881 |
|
13.9 |
% |
Plus: Direct internally developed software amortization |
|
6,656 |
|
|
5,607 |
|
18.7 |
% |
|
|
25,487 |
|
|
20,208 |
|
26.1 |
% |
Adjusted gross profit |
$ |
768,174 |
|
$ |
856,341 |
|
(10.3 |
)% |
|
$ |
3,593,177 |
|
$ |
3,152,089 |
|
14.0 |
% |
Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The comparison of operating margin to adjusted operating margin is presented below: |
|||||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
$ |
5,066,821 |
|
|
$ |
6,501,848 |
|
|
(22.1 |
)% |
|
$ |
24,696,625 |
|
|
$ |
23,102,138 |
|
|
6.9 |
% |
Income from operations |
|
164,034 |
|
|
|
287,406 |
|
|
(42.9 |
)% |
|
|
1,266,782 |
|
|
|
1,082,108 |
|
|
17.1 |
% |
Operating margin |
|
3.2 |
% |
|
|
4.4 |
% |
|
(120) bps |
|
|
5.1 |
% |
|
|
4.7 |
% |
|
40 bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross profit |
$ |
768,174 |
|
|
$ |
856,341 |
|
|
(10.3 |
)% |
|
$ |
3,593,177 |
|
|
$ |
3,152,089 |
|
|
14.0 |
% |
Income from operations |
|
164,034 |
|
|
|
287,406 |
|
|
(42.9 |
)% |
|
|
1,266,782 |
|
|
|
1,082,108 |
|
|
17.1 |
% |
Adjusted operating margin |
|
21.4 |
% |
|
|
33.6 |
% |
|
(1,220) bps |
|
|
35.3 |
% |
|
|
34.3 |
% |
|
100 bps |
GAAP to Non-GAAP Reconciliation
|
||||||||||||
|
||||||||||||
Our adjusted income (loss) from operations 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 and net income per share (diluted) excluding the impact of restructuring and related costs. 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 and adjusted net income per share (diluted). The reconciliation of income (loss) from operations 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
|
|
All
|
|
Consolidated |
|||||
Three Months Ended |
|
|
|
|
|
|
|
|||||
Income (loss) from operations |
$ |
162,550 |
|
$ |
28,216 |
|
$ |
(26,732 |
) |
|
$ |
164,034 |
Severance |
|
5,404 |
|
|
3,482 |
|
|
9,986 |
|
|
|
18,872 |
Other personnel expenses |
|
919 |
|
|
349 |
|
|
1,394 |
|
|
|
2,662 |
Other selling, general, and administrative expenses |
|
3,175 |
|
|
3,174 |
|
|
8,801 |
|
|
|
15,150 |
Total restructuring and related costs(1) |
|
9,498 |
|
|
7,005 |
|
|
20,181 |
|
|
|
36,684 |
Adjusted income (loss) from operations |
$ |
172,048 |
|
$ |
35,221 |
|
$ |
(6,551 |
) |
|
$ |
200,718 |
|
|
|
|
|
|
|
|
|||||
Net income per share (diluted) |
|
|
|
|
|
|
$ |
0.80 |
||||
Restructuring and associated costs(1) |
|
|
|
|
|
|
|
0.23 |
||||
Adjusted net income per share (diluted) |
|
|
|
|
|
|
$ |
1.03 |
||||
|
|
|
|
|
|
|
|
|||||
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Twelve Months Ended |
|
|
|
|
|
|
|
|||||
Income (loss) from operations |
$ |
833,302 |
|
$ |
449,364 |
|
$ |
(15,884 |
) |
|
$ |
1,266,782 |
Severance |
|
5,404 |
|
|
3,482 |
|
|
9,986 |
|
|
|
18,872 |
Other personnel expenses |
|
919 |
|
|
349 |
|
|
1,394 |
|
|
|
2,662 |
Other selling, general, and administrative expenses |
|
3,175 |
|
|
3,174 |
|
|
8,801 |
|
|
|
15,150 |
Restructuring and related costs(1) |
|
9,498 |
|
|
7,005 |
|
|
20,181 |
|
|
|
36,684 |
Adjusted income from operations |
$ |
842,800 |
|
$ |
456,369 |
|
$ |
4,297 |
|
|
$ |
1,303,466 |
|
|
|
|
|
|
|
|
|||||
Net income per share (diluted) |
|
|
|
|
|
|
$ |
7.40 |
||||
Restructuring and associated costs(1) |
|
|
|
|
|
|
|
0.22 |
||||
Adjusted net income per share (diluted) |
|
|
|
|
|
|
$ |
7.62 |
||||
|
|
|
|
|
|
|
|
____________________________________________ |
(1) In 2022, we incurred restructuring expenses of |
Condensed Consolidated Statements of Income (unaudited, in thousands, except per share data) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
2022 |
|
2021 |
|
% change |
|
2022 |
|
2021 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transportation |
$ |
4,798,027 |
|
|
$ |
6,245,998 |
|
|
(23.2 |
)% |
|
$ |
23,516,384 |
|
|
$ |
22,046,574 |
|
|
6.7 |
% |
Sourcing |
|
268,794 |
|
|
|
255,850 |
|
|
5.1 |
% |
|
|
1,180,241 |
|
|
|
1,055,564 |
|
|
11.8 |
% |
Total revenues |
|
5,066,821 |
|
|
|
6,501,848 |
|
|
(22.1 |
)% |
|
|
24,696,625 |
|
|
|
23,102,138 |
|
|
6.9 |
% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased transportation and related services |
|
4,056,076 |
|
|
|
5,413,594 |
|
|
(25.1 |
)% |
|
|
20,035,715 |
|
|
|
18,994,574 |
|
|
5.5 |
% |
Purchased products sourced for resale |
|
242,571 |
|
|
|
231,913 |
|
|
4.6 |
% |
|
|
1,067,733 |
|
|
|
955,475 |
|
|
11.7 |
% |
Personnel expenses |
|
427,310 |
|
|
|
419,994 |
|
|
1.7 |
% |
|
|
1,722,980 |
|
|
|
1,543,610 |
|
|
11.6 |
% |
Other selling, general, and administrative expenses |
|
176,830 |
|
|
|
148,941 |
|
|
18.7 |
% |
|
|
603,415 |
|
|
|
526,371 |
|
|
14.6 |
% |
Total costs and expenses |
|
4,902,787 |
|
|
|
6,214,442 |
|
|
(21.1 |
)% |
|
|
23,429,843 |
|
|
|
22,020,030 |
|
|
6.4 |
% |
Income from operations |
|
164,034 |
|
|
|
287,406 |
|
|
(42.9 |
)% |
|
|
1,266,782 |
|
|
|
1,082,108 |
|
|
17.1 |
% |
Interest and other income/expense, net |
|
(42,476 |
) |
|
|
(18,398 |
) |
|
130.9 |
% |
|
|
(100,017 |
) |
|
|
(59,817 |
) |
|
67.2 |
% |
Income before provision for income taxes |
|
121,558 |
|
|
|
269,008 |
|
|
(54.8 |
)% |
|
1,166,765 |
|
|
|
1,022,291 |
|
|
14.1 |
% |
|
Provision for income taxes |
|
25,365 |
|
|
|
38,910 |
|
|
(34.8 |
)% |
|
|
226,241 |
|
|
|
178,046 |
|
|
27.1 |
% |
Net income |
$ |
96,193 |
|
|
$ |
230,098 |
|
|
(58.2 |
)% |
|
$ |
940,524 |
|
|
$ |
844,245 |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share (basic) |
$ |
0.81 |
|
|
$ |
1.77 |
|
|
(54.2 |
)% |
|
$ |
7.48 |
|
|
$ |
6.37 |
|
|
17.4 |
% |
Net income per share (diluted) |
$ |
0.80 |
|
|
$ |
1.74 |
|
|
(54.0 |
)% |
|
$ |
7.40 |
|
|
$ |
6.31 |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding (basic) |
|
119,212 |
|
|
|
130,348 |
|
|
(8.5 |
)% |
|
|
125,743 |
|
|
|
132,482 |
|
|
(5.1 |
)% |
Weighted average shares outstanding (diluted) |
|
120,472 |
|
|
|
132,617 |
|
|
(9.2 |
)% |
|
|
127,150 |
|
|
|
133,834 |
|
|
(5.0 |
)% |
Business Segment Information (unaudited, in thousands, except average employee headcount) |
|||||||||||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Three Months Ended |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
3,563,071 |
|
$ |
1,013,306 |
|
$ |
490,444 |
|
|
$ |
5,066,821 |
Adjusted gross profits(1) |
|
|
502,266 |
|
|
188,749 |
|
|
77,159 |
|
|
|
768,174 |
Income (loss) from operations |
|
|
162,550 |
|
|
28,216 |
|
|
(26,732 |
) |
|
|
164,034 |
Depreciation and amortization |
|
|
5,542 |
|
|
5,441 |
|
|
13,070 |
|
|
|
24,053 |
Total assets(2) |
|
|
3,304,480 |
|
|
1,507,913 |
|
|
1,142,171 |
|
|
|
5,954,564 |
Average employee headcount |
|
|
7,251 |
|
|
5,745 |
|
|
4,676 |
|
|
|
17,672 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Three Months Ended |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
3,896,025 |
|
$ |
2,144,056 |
|
$ |
461,767 |
|
|
$ |
6,501,848 |
Adjusted gross profits(1) |
|
|
475,100 |
|
|
309,589 |
|
|
71,652 |
|
|
|
856,341 |
Income (loss) from operations |
|
|
148,440 |
|
|
146,800 |
|
|
(7,834 |
) |
|
|
287,406 |
Depreciation and amortization |
|
|
6,464 |
|
|
5,471 |
|
|
10,703 |
|
|
|
22,638 |
Total assets(2) |
|
|
3,349,578 |
|
|
2,843,239 |
|
|
835,295 |
|
|
|
7,028,112 |
Average employee headcount |
|
|
7,044 |
|
|
5,430 |
|
|
4,080 |
|
|
|
16,554 |
____________________________________________ |
(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
|
|
All
|
|
Consolidated |
|||||
Twelve Months Ended |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
15,827,467 |
|
$ |
6,812,008 |
|
$ |
2,057,150 |
|
|
$ |
24,696,625 |
Adjusted gross profits(1) |
|
|
2,196,704 |
|
|
1,083,473 |
|
|
313,000 |
|
|
|
3,593,177 |
Income (loss) from operations |
|
|
833,302 |
|
|
449,364 |
|
|
(15,884 |
) |
|
|
1,266,782 |
Depreciation and amortization |
|
|
23,643 |
|
|
21,835 |
|
|
47,298 |
|
|
|
92,776 |
Total assets(2) |
|
|
3,304,480 |
|
|
1,507,913 |
|
|
1,142,171 |
|
|
|
5,954,564 |
Average employee headcount |
|
|
7,365 |
|
|
5,712 |
|
|
4,524 |
|
|
|
17,601 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Twelve Months Ended |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
14,507,917 |
|
$ |
6,729,790 |
|
$ |
1,864,431 |
|
|
$ |
23,102,138 |
Adjusted gross profits(1) |
|
|
1,792,953 |
|
|
1,073,541 |
|
|
285,595 |
|
|
|
3,152,089 |
Income (loss) from operations |
|
|
585,351 |
|
|
510,756 |
|
|
(13,999 |
) |
|
|
1,082,108 |
Depreciation and amortization |
|
|
26,243 |
|
|
22,823 |
|
|
42,193 |
|
|
|
91,259 |
Total assets(2) |
|
|
3,349,578 |
|
|
2,843,239 |
|
|
835,295 |
|
|
|
7,028,112 |
Average employee headcount |
|
|
6,764 |
|
|
5,071 |
|
|
3,926 |
|
|
|
15,761 |
____________________________________________ |
(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) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
217,482 |
|
$ |
257,413 |
Receivables, net of allowance for credit loss |
|
2,991,753 |
|
|
3,963,487 |
Contract assets, net of allowance for credit loss |
|
257,597 |
|
|
453,660 |
Prepaid expenses and other |
|
122,406 |
|
|
129,593 |
Total current assets |
|
3,589,238 |
|
|
4,804,153 |
|
|
|
|
||
Property and equipment, net of accumulated depreciation and amortization |
|
159,432 |
|
|
139,831 |
Right-of-use lease assets |
|
372,141 |
|
|
292,559 |
Intangible and other assets, net of accumulated amortization |
|
1,833,753 |
|
|
1,791,569 |
Total assets |
$ |
5,954,564 |
|
$ |
7,028,112 |
|
|
|
|
||
Liabilities and stockholders’ investment |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and outstanding checks |
$ |
1,570,559 |
|
$ |
1,919,301 |
Accrued expenses: |
|
|
|
||
Compensation |
|
242,605 |
|
|
201,421 |
Transportation expense |
|
199,092 |
|
|
342,778 |
Income taxes |
|
15,210 |
|
|
100,265 |
Other accrued liabilities |
|
168,009 |
|
|
171,266 |
Current lease liabilities |
|
73,722 |
|
|
66,311 |
Current portion of debt |
|
1,053,655 |
|
|
525,000 |
Total current liabilities |
|
3,322,852 |
|
|
3,326,342 |
|
|
|
|
||
Long-term debt |
|
920,049 |
|
|
1,393,649 |
Noncurrent lease liabilities |
|
313,742 |
|
|
241,369 |
Noncurrent income taxes payable |
|
28,317 |
|
|
28,390 |
Deferred tax liabilities |
|
14,256 |
|
|
16,113 |
Other long-term liabilities |
|
1,926 |
|
|
315 |
Total liabilities |
|
4,601,142 |
|
|
5,006,178 |
|
|
|
|
||
Total stockholders’ investment |
|
1,353,422 |
|
|
2,021,934 |
Total liabilities and stockholders’ investment |
$ |
5,954,564 |
|
$ |
7,028,112 |
Condensed Consolidated Statements of Cash Flow (unaudited, in thousands, except operational data) |
|||||||
|
Twelve Months Ended |
||||||
|
2022 |
|
2021 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
940,524 |
|
|
$ |
844,245 |
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
92,776 |
|
|
|
91,259 |
|
Provision for credit losses |
|
(4,476 |
) |
|
|
10,649 |
|
Stock-based compensation |
|
90,677 |
|
|
|
129,977 |
|
Deferred income taxes |
|
(58,566 |
) |
|
|
(110,188 |
) |
Excess tax benefit on stock-based compensation |
|
(13,662 |
) |
|
|
(13,101 |
) |
Other operating activities |
|
(6,627 |
) |
|
|
1,915 |
|
Changes in operating elements, net of acquisitions: |
|
|
|
||||
Receivables |
|
923,524 |
|
|
|
(1,547,545 |
) |
Contract assets |
|
197,097 |
|
|
|
(257,728 |
) |
Prepaid expenses and other |
|
(28,495 |
) |
|
|
(43,819 |
) |
Accounts payable and outstanding checks |
|
(307,266 |
) |
|
|
660,028 |
|
Accrued compensation |
|
42,266 |
|
|
|
63,912 |
|
Accrued transportation expenses |
|
(143,686 |
) |
|
|
189,204 |
|
Accrued income taxes |
|
(69,817 |
) |
|
|
72,665 |
|
Other accrued liabilities |
|
2,371 |
|
|
|
1,607 |
|
Other assets and liabilities |
|
(6,469 |
) |
|
|
1,875 |
|
Net cash provided by operating activities |
|
1,650,171 |
|
|
|
94,955 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(61,915 |
) |
|
|
(34,197 |
) |
Purchases and development of software |
|
(66,582 |
) |
|
|
(36,725 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
(14,750 |
) |
Proceeds from sale of property and equipment |
|
63,579 |
|
|
|
— |
|
Net cash used for investing activities |
|
(64,918 |
) |
|
|
(85,672 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Proceeds from stock issued for employee benefit plans |
|
100,059 |
|
|
|
70,669 |
|
Total repurchases of common stock |
|
(1,488,288 |
) |
|
|
(608,476 |
) |
Cash dividends |
|
(285,317 |
) |
|
|
(277,321 |
) |
Proceeds from long-term borrowings |
|
200,000 |
|
|
|
300,000 |
|
Payments on long-term borrowings |
|
— |
|
|
|
(2,048 |
) |
Proceeds from short-term borrowings |
|
4,500,000 |
|
|
|
3,728,000 |
|
Payments on short-term borrowings |
|
(4,646,000 |
) |
|
|
(3,203,251 |
) |
Net cash (used for) provided by financing activities |
|
(1,619,546 |
) |
|
|
7,573 |
|
Effect of exchange rates on cash |
|
(5,638 |
) |
|
|
(3,239 |
) |
|
|
|
|
||||
Net change in cash and cash equivalents |
|
(39,931 |
) |
|
|
13,617 |
|
Cash and cash equivalents, beginning of period |
|
257,413 |
|
|
|
243,796 |
|
Cash and cash equivalents, end of period |
$ |
217,482 |
|
|
$ |
257,413 |
|
|
|
|
|
||||
|
As of |
||||||
Operational Data: |
2022 |
|
2021 |
||||
Employees |
|
17,399 |
|
|
|
16,877 |
|
CHRW-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005812/en/
Email:chuck.ives@chrobinson.com
Source: C.H. Robinson