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C.H. Robinson Reports 2021 Third Quarter Results

C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2021.

Third Quarter Key Metrics:

  • Total revenues increased 48.3% to $6.3 billion
  • Gross profits increased 43.5% to $839.0 million
  • Adjusted gross profits(1) increased 43.3% to $844.2 million
  • Income from operations increased 84.7% to $310.8 million
  • Adjusted operating margin(1) increased 820 basis points to 36.8%
  • Diluted earnings per share (EPS) increased 85.0% to $1.85
  • Cash used by operations improved by $95.1 million to $73.5 million

(1) Adjusted gross profits and adjusted operating margin 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 page 10 for further discussion and a GAAP to Non-GAAP reconciliation.

"The third quarter was another quarter of progress and strong execution, resulting in record quarterly financial results," said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. "The trajectory of our business is heading in the right direction as we continue to leverage our tech-plus strategy to help customers navigate through an extremely challenging and capacity-constrained environment, which we expect to continue. Demand for our global suite of services and for the benefit of our powerful technology platform continues to be strong, and digitalization continues to take hold and be engrained in an increasing percentage of our business."

Summary of Third Quarter Results Compared to the Third Quarter of 2020

  • Total revenues increased 48.3% to $6.3 billion, driven primarily by higher pricing and higher volume across most of our services.
  • Gross profits increased 43.5% to $839.0 million. Adjusted gross profits increased 43.3% to $844.2 million, primarily driven by higher adjusted gross profit per transaction and higher volume across most of our services.
  • Operating expenses increased 26.7% to $533.4 million. Personnel expenses increased 32.0% to $399.9 million, primarily due to higher incentive compensation costs and also due to the benefit realized in the third quarter of 2020 from our short-term, pandemic-related cost reductions. Average headcount increased 7.1%. Selling, general and administrative ("SG&A") expenses of $133.5 million increased 13.0%, primarily due to the benefit realized in the third quarter of 2020 from our short-term, pandemic-related cost reductions.
  • Income from operations totaled $310.8 million, up 84.7% due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 36.8% increased 820 basis points.
  • Interest and other expenses totaled $16.7 million, consisting primarily of $13.1 million of interest expense, which increased $1.2 million versus last year due to a higher average debt balance. The third quarter also included a $3.8 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses.
  • The effective tax rate in the quarter was 16.0% compared to 15.1% in the third quarter last year. The rate increase was due primarily to a lower tax benefit related to stock-based compensation.
  • Net income totaled $247.1 million, up 81.0% from a year ago. Diluted EPS of $1.85 increased 85.0%.

Summary of Year-to-Date Results Compared to the Same Period in 2020

  • Total revenues increased 42.4% to $16.6 billion, driven primarily by higher pricing and higher volume across most of our services.
  • Gross profits increased 29.6% to $2.3 billion. Adjusted gross profits increased 29.6% to $2.3 billion, primarily driven by higher adjusted gross profit per transaction and higher volume across most of our services.
  • Operating expenses increased 15.0% to $1.5 billion. Personnel expenses increased 20.4% to $1.1 billion, primarily due to higher incentive compensation costs and also due to the benefit realized in 2020 from our short-term, pandemic-related cost reduction initiatives. SG&A expenses increased 1.6% to $377.4 million, primarily due to increases in purchased services and warehouse expenses, partially offset by lower credit losses, amortization and travel expenses.
  • Income from operations totaled $794.7 million, up 70.4% from last year, primarily due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 34.6% increased 830 basis points.
  • Interest and other expenses totaled $41.4 million, which primarily consists of $38.0 million of interest expense, which increased $1.4 million versus last year due to a higher average debt balance. The nine-month period also included an $8.6 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses. These expenses were partially offset by a $2.9 million local government subsidy in Asia for achieving specified performance criteria that was almost entirely offset by a reduction in foreign tax credits within the provision for income taxes.
  • The effective tax rate for the nine months was 18.5% compared to 17.3% in the year-ago period. The rate increase was due primarily to a lower tax benefit related to stock-based compensation.
  • Net income totaled $614.1 million, up 71.3% from a year ago. Diluted EPS of $4.56 increased 73.4%.

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,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Total revenues

$

3,814,988

 

 

$

2,923,842

 

 

30.5

%

 

$

10,611,892

 

 

$

8,222,879

 

 

29.1

%

Adjusted gross profits(1)

460,149

 

 

367,943

 

 

25.1

%

 

1,317,853

 

 

1,120,277

 

 

17.6

%

Income from operations

149,035

 

 

122,526

 

 

21.6

%

 

436,911

 

 

357,898

 

 

22.1

%

 

 

 

 

 

 

 

 

 

 

 

 

____________________________________________

(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.

Third quarter total revenues for C.H. Robinson's NAST segment totaled $3.8 billion, an increase of 30.5% over the prior year, primarily driven by higher truckload and less-than truckload ("LTL") pricing and an increase in truckload shipments. NAST adjusted gross profits increased 25.1% in the quarter to $460.1 million. Adjusted gross profits in truckload increased 36.5% due to a 30.0% increase in adjusted gross profit per load and a 4.5% increase in shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 27.0% in the quarter, while truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 26.0%. LTL adjusted gross profits increased 11.5% versus the year-ago period, as adjusted gross profit per order increased 10.5% and LTL volumes grew 1.0%. NAST overall volume growth was approximately 2.5%. Operating expenses increased 26.8% primarily due to higher incentive compensation and also due to the benefit realized in 2020 from our short-term, pandemic-related cost reduction initiatives. Income from operations increased 21.6% to $149.0 million, and adjusted operating margin declined 90 basis points to 32.4%. NAST average headcount was up 0.9% in the quarter.

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,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Total revenues

$

1,978,901

 

 

$

831,957

 

 

137.9

%

 

$

4,585,734

 

 

$

2,070,161

 

 

121.5

%

Adjusted gross profits(1)

310,898

 

 

157,657

 

 

97.2

%

 

763,952

 

 

448,931

 

 

70.2

%

Income from operations

165,155

 

 

46,299

 

 

256.7

%

 

363,956

 

 

117,033

 

 

211.0

%

 

 

 

 

 

 

 

 

 

 

 

 

____________________________________________

(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.

Third quarter total revenues for the Global Forwarding segment increased 137.9% to $2.0 billion, primarily driven by higher pricing and higher volume in both our ocean and air services, reflecting the strong demand environment, market share gains and strained capacity. Adjusted gross profits increased 97.2% in the quarter to $310.9 million. Ocean adjusted gross profits increased 141.7%, driven by a 116.5% increase in adjusted gross profit per shipment and a 12.0% increase in volumes. Adjusted gross profits in air increased 76.2% driven by a 50.5% increase in metric tons shipped and a 17.0% increase in adjusted gross profit per metric ton. Customs adjusted gross profits increased 13.4%, primarily driven by a 10.5% increase in transaction volume. Operating expenses increased 30.9%, primarily driven by increased salaries, technology and incentive compensation expenses and partially offset by lower amortization expense. Third quarter average headcount increased 12.2%. Income from operations increased 256.7% to $165.2 million, and adjusted operating margin expanded 2,370 basis points to 53.1% in the quarter.

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 September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Total revenues

$

469,806

 

 

$

469,001

 

 

0.2

%

 

$

1,402,664

 

 

$

1,364,614

 

 

2.8

%

Adjusted gross profits(1):

 

 

 

 

 

 

 

 

 

 

 

Robinson Fresh

$

26,651

 

 

$

24,449

 

 

9.0

%

 

$

81,539

 

 

$

82,109

 

 

(0.7

)%

Managed Services

26,720

 

 

24,060

 

 

11.1

%

 

78,510

 

 

70,090

 

 

12.0

%

Other Surface Transportation

19,774

 

 

15,164

 

 

30.4

%

 

53,894

 

 

50,272

 

 

7.2

%

 

____________________________________________

(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.

Third quarter Robinson Fresh adjusted gross profits increased 9.0% to $26.7 million, due to an increase in adjusted gross profit per case and a 2.5% increase in case volume. Managed Services adjusted gross profits increased 11.1% in the quarter, primarily due to a 12.5% increase in volume. Other Surface Transportation adjusted gross profits increased 30.4% to $19.8 million, primarily due to a 31.6% increase in Europe truckload adjusted gross profits, with the acquisition of Combinex Holding B.V. contributing 13.5 percentage points of growth to truckload adjusted gross profits.

Other Income Statement Items

The third quarter effective tax rate was 16.0%, up from 15.1% last year, but lower than our expectations, primarily due to a favorable mix of foreign earnings and U.S. tax incentives. We now expect our 2021 full-year effective tax rate to be 18% to 19% compared to our prior estimate of 20% to 22%.

Interest and other expenses totaled $16.7 million, consisting primarily of $13.1 million of interest expense, which increased $1.2 million versus last year due to a higher average debt balance. The third quarter also included a $3.8 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses.

Diluted weighted average shares outstanding in the quarter were down 2.7% due primarily to share repurchases over the past twelve months.

Cash Flow Generation and Capital Distribution

Cash used by operations totaled $73.5 million in the third quarter, compared to $168.6 million of cash used in the third quarter of 2020. The $95.1 million improvement in cash flow was driven primarily by an improvement in net income, partially offset by an increase in operating working capital in the third quarter of 2021. Sequentially, operating working capital increased by $411.8 million or 26.7% in the third quarter of 2021, compared to a sequential increase of 12.7% in total adjusted gross profits.

In the third quarter of 2021, $237.2 million of cash was returned to shareholders, with $168.1 million in total repurchases of common stock and $69.2 million in cash dividends.

Capital expenditures totaled $22.7 million in the quarter. We now expect 2021 capital expenditures, which are driven by technology-related investments, to be $70 million to $80 million.

Outlook

"Our strong financial results demonstrate that our integrated services model is working. Given the current structural constraints around expansion of supply, coupled with continued strong demand as we head into the holiday season, we expect capacity to remain tight and to perform well in that environment," Biesterfeld stated. "We’ll continue to leverage the strength of our diversified non-asset-based business model that delivers strong returns on invested capital. We'll stay the course with our strategy of pursuing market share gains that align with our profitability expectations, and we'll continue to invest back into the business, in order to drive innovation, improve service to our customers and carriers, and drive growth across our global suite of modes and services."

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 $26 billion in freight under management and 19 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 105,000 customers and 73,000 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 2021 Earnings Conference Call

Tuesday, October 26, 2021; 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 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

(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 have revenues from multiple service lines.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Adjusted gross profits(1):

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

Truckload

$

333,067

 

 

$

251,072

 

 

32.7

%

 

$

941,117

 

 

$

794,364

 

 

18.5

%

LTL

132,482

 

 

118,561

 

 

11.7

%

 

383,903

 

 

339,426

 

 

13.1

%

Ocean

214,926

 

 

88,927

 

 

141.7

%

 

501,422

 

 

237,682

 

 

111.0

%

Air

60,552

 

 

34,977

 

 

73.1

%

 

159,503

 

 

115,720

 

 

37.8

%

Customs

25,466

 

 

22,464

 

 

13.4

%

 

75,201

 

 

63,118

 

 

19.1

%

Other logistics services

53,018

 

 

50,329

 

 

5.3

%

 

158,450

 

 

144,046

 

 

10.0

%

Total transportation

819,511

 

 

566,330

 

 

44.7

%

 

2,219,596

 

 

1,694,356

 

 

31.0

%

Sourcing

24,681

 

 

22,943

 

 

7.6

%

 

76,152

 

 

77,323

 

 

(1.5

)%

Total adjusted gross profits

$

844,192

 

 

$

589,273

 

 

43.3

%

 

$

2,295,748

 

 

$

1,771,679

 

 

29.6

%

 

____________________________________________

(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 September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

$

5,999,901

 

 

$

3,944,981

 

 

52.1

%

 

$

15,800,576

 

 

$

10,835,710

 

 

45.8

%

Sourcing

263,794

 

 

279,819

 

 

(5.7

)%

 

799,714

 

 

821,944

 

 

(2.7

)%

Total revenues

6,263,695

 

 

4,224,800

 

 

48.3

%

 

16,600,290

 

 

11,657,654

 

 

42.4

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation and related services

5,180,390

 

 

3,378,651

 

 

53.3

%

 

13,580,980

 

 

9,141,354

 

 

48.6

%

Purchased products sourced for resale

239,113

 

 

256,876

 

 

(6.9

)%

 

723,562

 

 

744,621

 

 

(2.8

)%

Direct internally developed software amortization

5,152

 

 

4,388

 

 

17.4

%

 

14,601

 

 

12,124

 

 

20.4

%

Total direct expenses

5,424,655

 

 

3,639,915

 

 

49.0

%

 

14,319,143

 

 

9,898,099

 

 

44.7

%

Gross profit

$

839,040

 

 

$

584,885

 

 

43.5

%

 

$

2,281,147

 

 

$

1,759,555

 

 

29.6

%

Plus: Direct internally developed software amortization

5,152

 

 

4,388

 

 

17.4

%

 

14,601

 

 

12,124

 

 

20.4

%

Adjusted gross profit

$

844,192

 

 

$

589,273

 

 

43.3

%

 

$

2,295,748

 

 

$

1,771,679

 

 

29.6

%

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 September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

6,263,695

 

 

$

4,224,800

 

 

48.3

%

 

$

16,600,290

 

 

$

11,657,654

 

 

42.4

%

Operating income

310,769

 

 

168,239

 

 

84.7

%

 

794,702

 

 

466,466

 

 

70.4

%

Operating margin

5.0

%

 

4.0

%

 

100 bps

 

4.8

%

 

4.0

%

 

80 bps

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted gross profit

$

844,192

 

 

$

589,273

 

 

43.3

%

 

$

2,295,748

 

 

$

1,771,679

 

 

29.6

%

Operating income

310,769

 

 

168,239

 

 

84.7

%

 

794,702

 

 

466,466

 

 

70.4

%

Adjusted operating margin

36.8

%

 

28.6

%

 

820 bps

 

34.6

%

 

26.3

%

 

830 bps

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Transportation

$

5,999,901

 

 

 

$

3,944,981

 

 

 

52.1

%

 

$

15,800,576

 

 

 

$

10,835,710

 

 

 

45.8

%

Sourcing

263,794

 

 

 

279,819

 

 

 

(5.7

)%

 

799,714

 

 

 

821,944

 

 

 

(2.7

)%

Total revenues

6,263,695

 

 

 

4,224,800

 

 

 

48.3

%

 

16,600,290

 

 

 

11,657,654

 

 

 

42.4

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation and related services

5,180,390

 

 

 

3,378,651

 

 

 

53.3

%

 

13,580,980

 

 

 

9,141,354

 

 

 

48.6

%

Purchased products sourced for resale

239,113

 

 

 

256,876

 

 

 

(6.9

)%

 

723,562

 

 

 

744,621

 

 

 

(2.8

)%

Personnel expenses

399,880

 

 

 

302,904

 

 

 

32.0

%

 

1,123,616

 

 

 

933,607

 

 

 

20.4

%

Other selling, general, and administrative expenses

133,543

 

 

 

118,130

 

 

 

13.0

%

 

377,430

 

 

 

371,606

 

 

 

1.6

%

Total costs and expenses

5,952,926

 

 

 

4,056,561

 

 

 

46.7

%

 

15,805,588

 

 

 

11,191,188

 

 

 

41.2

%

Income from operations

310,769

 

 

 

168,239

 

 

 

84.7

%

 

794,702

 

 

 

466,466

 

 

 

70.4

%

Interest and other expense

(16,662

)

 

 

(7,465

)

 

 

123.2

%

 

(41,419

)

 

 

(32,904

)

 

 

25.9

%

Income before provision for income taxes

294,107

 

 

 

160,774

 

 

 

82.9

%

 

753,283

 

 

 

433,562

 

 

 

73.7

%

Provision for income taxes

47,054

 

 

 

24,245

 

 

 

94.1

%

 

139,136

 

 

 

74,948

 

 

 

85.6

%

Net income

$

247,053

 

 

 

$

136,529

 

 

 

81.0

%

 

$

614,147

 

 

 

$

358,614

 

 

 

71.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

$

1.87

 

 

 

$

1.01

 

 

 

85.1

%

 

$

4.61

 

 

 

$

2.65

 

 

 

74.0

%

Net income per share (diluted)

$

1.85

 

 

 

$

1.00

 

 

 

85.0

%

 

$

4.56

 

 

 

$

2.63

 

 

 

73.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

131,845

 

 

 

135,671

 

 

 

(2.8

)%

 

133,201

 

 

 

135,385

 

 

 

(1.6

)%

Weighted average shares outstanding (diluted)

133,436

 

 

 

137,128

 

 

 

(2.7

)%

 

134,661

 

 

 

136,137

 

 

 

(1.1

)%

Business Segment Information

(unaudited, in thousands, except average headcount)

 

 

 

NAST

 

Global Forwarding

 

All

Other and Corporate

 

Consolidated

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

Total revenues

 

$

3,814,988

 

 

$

1,978,901

 

 

$

469,806

 

 

 

$

6,263,695

 

Adjusted gross profits(1)

 

460,149

 

 

310,898

 

 

73,145

 

 

 

844,192

 

Income (loss) from operations

 

149,035

 

 

165,155

 

 

(3,421

)

 

 

310,769

 

Depreciation and amortization

 

6,620

 

 

5,427

 

 

10,359

 

 

 

22,406

 

Total assets (2)

 

3,437,461

 

 

2,438,106

 

 

727,039

 

 

 

6,602,606

 

Average headcount

 

6,764

 

 

5,167

 

 

4,037

 

 

 

15,968

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Adjusted gross profits(1)

 

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 (2)

 

3,041,974

 

 

1,148,118

 

 

884,746

 

 

 

5,074,838

 

Average headcount

 

6,702

 

 

4,607

 

 

3,595

 

 

 

14,904

 

 

____________________________________________

(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 headcount)

 

 

 

NAST

 

Global Forwarding

 

All

Other and Corporate

 

Consolidated

Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

Total revenues

 

$

10,611,892

 

 

$

4,585,734

 

 

$

1,402,664

 

 

 

$

16,600,290

 

Adjusted gross profits(1)

 

1,317,853

 

 

763,952

 

 

213,943

 

 

 

2,295,748

 

Income (loss) from operations

 

436,911

 

 

363,956

 

 

(6,165

)

 

 

794,702

 

Depreciation and amortization

 

19,779

 

 

17,352

 

 

31,490

 

 

 

68,621

 

Total assets (2)

 

3,437,461

 

 

2,438,106

 

 

727,039

 

 

 

6,602,606

 

Average headcount

 

6,650

 

 

4,951

 

 

3,881

 

 

 

15,482

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Adjusted gross profits(1)

 

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 (2)

 

3,041,974

 

 

1,148,118

 

 

884,746

 

 

 

5,074,838

 

Average headcount

 

6,870

 

 

4,716

 

 

3,591

 

 

 

15,177

 

____________________________________________

(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)

 

 

September 30, 2021

 

December 31, 2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

202,649

 

 

$

243,796

 

Receivables, net of allowance for credit loss

3,721,571

 

 

2,449,577

 

Contract assets, net of allowance for credit loss

416,971

 

 

197,176

 

Prepaid expenses and other

89,472

 

 

51,152

 

Total current assets

4,430,663

 

 

2,941,701

 

 

 

 

 

Property and equipment, net of accumulated depreciation and amortization

177,418

 

 

178,949

 

Right-of-use lease assets

297,249

 

 

319,785

 

Intangible and other assets, net of accumulated amortization

1,697,276

 

 

1,703,823

 

Total assets

$

6,602,606

 

 

$

5,144,258

 

 

 

 

 

Liabilities and stockholders’ investment

 

 

 

Current liabilities:

 

 

 

Accounts payable and outstanding checks

$

1,864,189

 

 

$

1,283,364

 

Accrued expenses:

 

 

 

Compensation

173,353

 

 

138,460

 

Transportation expense

319,154

 

 

153,574

 

Income taxes

39,276

 

 

43,700

 

Other accrued liabilities

157,251

 

 

154,460

 

Current lease liabilities

66,470

 

 

66,174

 

Current portion of debt

632,000

 

 

 

Total current liabilities

3,251,693

 

 

1,839,732

 

 

 

 

 

Long-term debt

1,093,950

 

 

1,093,301

 

Noncurrent lease liabilities

245,902

 

 

268,572

 

Noncurrent income taxes payable

25,449

 

 

26,015

 

Deferred tax liabilities

20,259

 

 

22,182

 

Other long-term liabilities

14,553

 

 

14,523

 

Total liabilities

4,651,806

 

 

3,264,325

 

 

 

 

 

Total stockholders’ investment

1,950,800

 

 

1,879,933

 

Total liabilities and stockholders’ investment

$

6,602,606

 

 

$

5,144,258

 

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

 

 

Nine Months Ended September 30,

 

2021

 

2020

Operating activities:

 

 

 

Net income

$

614,147

 

 

 

$

358,614

 

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

 

 

 

Depreciation and amortization

68,621

 

 

 

77,067

 

 

Provision for credit losses

3,979

 

 

 

12,701

 

 

Stock-based compensation

93,962

 

 

 

33,127

 

 

Deferred income taxes

(11,683

)

 

 

(9,468

)

 

Excess tax benefit on stock-based compensation

(10,830

)

 

 

(17,127

)

 

Other operating activities

1,384

 

 

 

13,104

 

 

Changes in operating elements, net of acquisitions:

 

 

 

Receivables

(1,290,485

)

 

 

(367,538

)

 

Contract assets

(220,889

)

 

 

(56,131

)

 

Prepaid expenses and other

(38,525

)

 

 

12,331

 

 

Accounts payable and outstanding checks

595,036

 

 

 

186,755

 

 

Accrued compensation

35,413

 

 

 

16,458

 

 

Accrued transportation expenses

165,580

 

 

 

46,396

 

 

Accrued income taxes

6,400

 

 

 

17,125

 

 

Other accrued liabilities

4,947

 

 

 

8,907

 

 

Other assets and liabilities

2,043

 

 

 

4,728

 

 

Net cash provided by operating activities

19,100

 

 

 

337,049

 

 

 

 

 

 

Investing activities:

 

 

 

Purchases of property and equipment

(26,503

)

 

 

(17,446

)

 

Purchases and development of software

(26,062

)

 

 

(22,815

)

 

Acquisitions, net of cash acquired

(14,749

)

 

 

(223,230

)

 

Other investing activities

 

 

 

5,525

 

 

Net cash used for investing activities

(67,314

)

 

 

(257,966

)

 

 

 

 

 

Financing activities:

 

 

 

Proceeds from stock issued for employee benefit plans

43,183

 

 

 

100,542

 

 

Total repurchases of common stock

(454,047

)

 

 

(85,098

)

 

Cash dividends

(208,926

)

 

 

(207,428

)

 

Payments on long-term borrowings

(2,048

)

 

 

 

 

Proceeds from short-term borrowings

2,768,000

 

 

 

1,043,600

 

 

Payments on short-term borrowings

(2,136,251

)

 

 

(1,126,600

)

 

Net cash used for financing activities

9,911

 

 

 

(274,984

)

 

Effect of exchange rates on cash

(2,844

)

 

 

612

 

 

 

 

 

 

Net change in cash and cash equivalents

(41,147

)

 

 

(195,289

)

 

Cash and cash equivalents, beginning of period

243,796

 

 

 

447,858

 

 

Cash and cash equivalents, end of period

$

202,649

 

 

 

$

252,569

 

 

 

 

 

 

 

As of September 30,

Operational Data:

2021

 

2020

Employees

16,231

 

 

 

14,695

 

 

Source: C.H. Robinson

CHRW-IR

@CHRobinson reports record quarterly financial results

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