C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW)
today reported financial results for the quarter ended March 31,
2024.
First Quarter Key
Metrics:
- Gross profits decreased 4.5% year-over-year to $647.5
million, but increased 6.3% sequentially
- Income from operations decreased 21.1% year-over-year to
$127.1 million, but increased 18.3% sequentially
- Adjusted operating margin(1) decreased 420 basis points to
19.3%
- Diluted earnings per share (EPS) decreased 18.8% to
$0.78
- Adjusted EPS(1) decreased 14.0% year-over-year to $0.86, but
increased 72% sequentially
- Cash from operations decreased by $287.9 million to $33.3
million used by operations
(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 10 through 12 for further
discussion and GAAP to Non-GAAP Reconciliations.
"Our first quarter results and adjusted earnings per share of
$0.86 reflects a change in our execution and discipline, as we
began implementing a new Lean-based operating model. And although
we continue to battle through an elongated freight recession with
an oversupply of capacity, I’m optimistic about our ability to
continue improving our execution regardless of the market
environment," said C.H. Robinson's President and Chief Executive
Officer, Dave Bozeman. "Our new operating model is being deployed
at the enterprise, divisional and shared service levels and is
evolving our execution and accountability by bringing more
structure to our continuous improvement cadence and culture. This
new way of operating is starting to enable greater discipline,
transparency, urgency and consistency in our decision making, based
on data and input metrics that can reliably lead to better outputs.
It's also setting the tone of how we operate and hold ourselves
accountable, helping us make systemic improvements, build
operational muscle and drive value at speed. We began to see the
benefits of our new operating model in our first quarter
execution."
"As a result of disciplined pricing and capacity procurement
efforts, we executed better across our contractual and
transactional portfolios in our NAST business, and in particular,
in our truckload business in the first quarter. This resulted in
improved optimization of volume and adjusted gross profit per
truckload, which improved sequentially despite an increase in our
linehaul cost per mile for the full quarter versus the fourth
quarter of 2023. Additionally, our first quarter truckload volume
reflects growing market share, and we outpaced the market indices
for the third quarter in a row," added Bozeman.
"In what continues to be a difficult environment, our resilient
team of freight experts is responding to the challenge and
embracing the new operating model and the innovative tools that we
continue to arm them with. Our people have a powerful desire to
win, and I thank them for their tireless efforts. They continue to
be a differentiator for us and for our customers and carriers, and
I’m confident in the team's willingness and ability to drive a
higher level of discipline in our operational execution. We’re
moving in the right direction, and at the same time, everyone
understands that we have more work to do," Bozeman concluded.
Summary of First Quarter of 2024
Results Compared to the First Quarter of 2023
- Total revenues decreased 4.3% to $4.4 billion, primarily
driven by lower pricing in our truckload services, partially offset
by higher pricing and increased volume in our ocean services.
- Gross profits decreased 4.5% to $647.5 million.
Adjusted gross profits decreased 4.1% to $657.7 million,
primarily driven by lower adjusted gross profit per transaction in
truckload.
- Operating expenses increased 1.1% to $530.6 million.
Personnel expenses decreased 1.0% to $379.1 million,
primarily due to cost optimization efforts and partially offset by
higher restructuring charges related to workforce reductions.
Average headcount declined 11.3%. Other selling, general and
administrative (“SG&A”) expenses increased 7.1% to $151.5
million, primarily due to favorable credit losses in the prior year
and restructuring charges in the current year related to the
impairment of internally developed software.
- Income from operations totaled $127.1 million, down
21.1% due to the decrease in adjusted gross profits. Adjusted
operating margin(1) of 19.3% declined 420 basis points.
- Interest and other income/expense, net totaled $16.8
million of expense, consisting primarily of $22.1 million of
interest expense, which decreased $1.5 million versus last year,
due to a lower average debt balance, and a $3.9 million net gain
from foreign currency revaluation and realized foreign currency
gains and losses.
- The effective tax rate in the quarter was 15.8%,
compared to 13.5% in the first quarter last year. The higher rate
in the first quarter of this year was driven by lower tax benefits
related to stock-based compensation deliveries and higher foreign
taxes, partially offset by higher U.S. tax credits and the impact
of lower pretax income.
- Net income totaled $92.9 million, down 19.1% from a year
ago. Diluted EPS of $0.78 decreased 18.8%. Adjusted
EPS(1) of $0.86 decreased 14.0%.
(1)
Adjusted operating margin and adjusted EPS
are non-GAAP financial measures. The same factors described in this
release that impacted these non-GAAP measures also impacted the
comparable GAAP measures. Refer to pages 10 through 12 for further
discussion and GAAP to Non-GAAP Reconciliations.
North American Surface Transportation
(“NAST”) Results
Summarized financial results of our NAST segment are as follows
(dollars in thousands):
Three Months Ended March 31,
2024
2023
% change
Total revenues
$
3,000,313
$
3,304,187
(9.2
)%
Adjusted gross profits(1)
397,110
426,655
(6.9
)%
Income from operations
108,895
134,022
(18.7
)%
____________________________________________
(1)
Adjusted gross profits is a non-GAAP
financial measure explained later in this release. The difference
between adjusted gross profits and gross profits is not
material.
First quarter total revenues for the NAST segment totaled $3.0
billion, a decrease of 9.2% over the prior year, primarily driven
by lower truckload pricing, reflecting an oversupply of truckload
capacity compared to freight demand. NAST adjusted gross profits
decreased 6.9% in the quarter to $397.1 million. Adjusted gross
profits in truckload decreased 9.9% due to a 9.5% decrease in
adjusted gross profit per shipment and a 0.5% decline in truckload
shipments. Our average truckload linehaul rate per mile charged to
our customers, which excludes fuel surcharges, decreased
approximately 7.5% in the quarter compared to the prior year, while
truckload linehaul cost per mile, excluding fuel surcharges, also
decreased approximately 7.5%, resulting in an 8.5% decrease in
truckload adjusted gross profit per mile. LTL adjusted gross
profits increased 1.7% versus the year-ago period, driven by a 3.0%
increase in LTL volume, partially offset by a 1.0% decrease in
adjusted gross profit per order. NAST overall volume growth
increased 1.5% for the quarter. Operating expenses decreased 1.5%,
primarily due to lower technology expenses which were partially
offset by a benefit in the prior year from lower credit losses.
NAST average employee headcount was down 12.6% in the quarter.
Income from operations decreased 18.7% to $108.9 million, and
adjusted operating margin declined 400 basis points to 27.4%.
Global Forwarding
Results
Summarized financial results of our Global Forwarding segment
are as follows (dollars in thousands):
Three Months Ended March 31,
2024
2023
% change
Total revenues
$
858,637
$
789,978
8.7
%
Adjusted gross profits(1)
180,045
177,919
1.2
%
Income from operations
31,552
30,116
4.8
%
____________________________________________
(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.
First quarter total revenues for the Global Forwarding segment
increased 8.7% to $858.6 million, primarily driven by higher
pricing and increased volume in our ocean services. Adjusted gross
profits increased 1.2% in the quarter to $180.0 million. Ocean
adjusted gross profits increased 2.5%, driven by a 7.0% increase in
shipments, partially offset by a 4.0% decrease in adjusted gross
profit per shipment. Air adjusted gross profits decreased 2.4%,
driven by a 20.5% decrease in adjusted gross profit per metric ton
shipped, partially offset by a 23.0% increase in metric tons
shipped. Customs adjusted gross profits increased 11.8%, driven by
an 8.5% increase in transaction volume and a 3.5% increase in
adjusted gross profit per transaction. Operating expenses increased
0.5%, primarily due to higher variable compensation. First quarter
average employee headcount decreased 10.9%. Income from operations
increased 4.8% to $31.6 million, and adjusted operating margin
expanded 60 basis points to 17.5% 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 March 31,
2024
2023
% change
Total revenues
$
553,361
$
517,505
6.9
%
Adjusted gross profits(1):
Robinson Fresh
$
33,736
$
31,145
8.3
%
Managed Services
28,936
28,970
(0.1
)%
Other Surface Transportation
17,902
20,951
(14.6
)%
____________________________________________
(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.
First quarter Robinson Fresh adjusted gross profits increased
8.3% to $33.7 million due to a 1.5% increase in case volume and
integrated supply chain solutions for retail customers. Managed
Services adjusted gross profits decreased 0.1%. Other Surface
Transportation adjusted gross profits decreased 14.6% to $17.9
million, primarily due to a 16.9% decrease in Europe truckload
adjusted gross profits.
Other Income Statement
Items
The first quarter effective tax rate was 15.8%, up from 13.5%
last year. The higher rate in the first quarter of this year was
driven by lower tax benefits related to stock-based compensation
deliveries and higher foreign taxes, partially offset by higher
U.S. tax credits and the impact of lower pretax income. For 2024,
we expect our full-year effective tax rate to be 17% to 19%.
Interest and other income/expense, net totaled $16.8 million of
expense, consisting primarily of $22.1 million of interest expense,
which decreased $1.5 million versus the first quarter of 2023 due
to a lower average debt balance, and a $3.9 million net gain from
foreign currency revaluation and realized foreign currency gains
and losses.
Diluted weighted average shares outstanding in the quarter were
down 0.3% due to lower dilutive impact of equity awards.
Cash Flow Generation and Capital
Distribution
Cash used by operations totaled $33.3 million in the first
quarter, compared to $254.5 million of cash generated from
operations in the first quarter of 2023. The $287.9 million
decrease in cash flow from operations was primarily related to a
$369.5 million decline in cash provided by changes in net operating
working capital, due to a $134.6 million sequential increase in net
operating working capital in the first quarter of 2024 compared to
a $234.9 million sequential decrease in the first quarter of
2023.
In the first quarter of 2024, cash returned to shareholders
totaled $90.7 million, with $74.6 million in cash dividends and
$16.1 million in repurchases of common stock.
Capital expenditures totaled $22.5 million in the quarter.
Capital expenditures for 2024 are expected to be $85 million to $95
million.
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 $22 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 more than 90,000 customers and
the more than 450,000 contract carriers on our platform. 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, factors such
as changes in economic conditions, including uncertain consumer
demand; changes in market demand and pressures on the pricing for
our services; fuel price increases or decreases, or fuel shortages;
competition and growth rates within the global logistics industry
that could adversely impact our profitability; freight levels and
increasing costs and availability of truck capacity or alternative
means of transporting freight; risks associated with seasonal
changes or significant disruptions in the transportation industry;
risks associated with identifying and completing suitable
acquisitions; our dependence on and changes in relationships with
existing contracted truck, rail, ocean, and air carriers; risks
associated with the loss of significant customers; risks associated
with reliance on technology to operate our business; cyber-security
related risks; our ability to staff and retain employees; risks
associated with operations outside of the U.S.; our ability to
successfully integrate the operations of acquired companies with
our historic operations; climate change related risks; risks
associated with our indebtedness; risks associated with interest
rates; risks associated with litigation, including contingent auto
liability and insurance coverage; risks associated with the
potential impact of changes in government regulations including
environmental-related regulations; risks associated with the
changes to income tax regulations; risks associated with the
produce industry, including food safety and contamination issues;
the impact of changes in political and governmental conditions;
changes to our capital structure; changes due to catastrophic
events; risks associated with the usage of artificial intelligence
technologies; 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 First Quarter 2024 Earnings Conference Call
Wednesday, May 1, 2024; 5:00 p.m. Eastern Time Presentation slides
and a simultaneous live audio webcast of the conference call may be
accessed through the Investor Relations link on C.H. Robinson’s
website at 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 may have revenues from multiple service
lines.
Three Months Ended March 31,
2024
2023
% change
Adjusted gross profits(1):
Transportation
Truckload
$
257,413
$
288,654
(10.8
)%
LTL
141,136
138,637
1.8
%
Ocean
112,858
110,079
2.5
%
Air
30,532
31,317
(2.5
)%
Customs
26,095
23,334
11.8
%
Other logistics services
59,558
64,913
(8.2
)%
Total transportation
627,592
656,934
(4.5
)%
Sourcing
30,137
28,706
5.0
%
Total adjusted gross profits
$
657,729
$
685,640
(4.1
)%
____________________________________________
(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.
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 March 31,
2024
2023
% change
Revenues:
Transportation
$
4,082,588
$
4,327,965
(5.7
)%
Sourcing
329,723
283,705
16.2
%
Total revenues
4,412,311
4,611,670
(4.3
)%
Costs and expenses:
Purchased transportation and related
services
3,454,996
3,671,031
(5.9
)%
Purchased products sourced for resale
299,586
254,999
17.5
%
Direct internally developed software
amortization
10,222
7,317
39.7
%
Total direct expenses
3,764,804
3,933,347
(4.3
)%
Gross profit
$
647,507
$
678,323
(4.5
)%
Plus: Direct internally developed software
amortization
10,222
7,317
39.7
%
Adjusted gross profit
$
657,729
$
685,640
(4.1
)%
Our adjusted operating margin is a
non-GAAP financial measure calculated as operating income divided
by adjusted gross profit. Our adjusted operating margin - excluding
restructuring is a similar non-GAAP financial measure as adjusted
operating margin, but also excludes the impact of restructuring. We
believe adjusted operating margin and adjusted operating margin -
excluding restructuring are useful measures of our profitability in
comparison to our adjusted gross profit, which we consider a
primary performance metric as discussed above. The comparisons of
operating margin to adjusted operating margin and adjusted
operating margin - excluding restructuring are presented
below:
Three Months Ended March 31,
2024
2023
% change
Total revenues
$
4,412,311
$
4,611,670
(4.3
%)
Income from operations
127,133
161,033
(21.1
%)
Operating margin
2.9
%
3.5
%
(60) bps
Adjusted gross profit
$
657,729
$
685,640
(4.1
%)
Income from operations
127,133
161,033
(21.1
%)
Adjusted operating margin
19.3
%
23.5
%
(420) bps
Adjusted gross profit
$
657,729
$
685,640
(4.1
%)
Adjusted income from operations
140,076
164,755
(15.0
%)
Adjusted operating margin - excluding
restructuring
21.3
%
24.0
%
(270) bps
GAAP to Non-GAAP
Reconciliation (unaudited, in thousands)
Our adjusted income (loss) from
operations, adjusted operating margin - excluding restructuring,
and adjusted net income per share (diluted) are non-GAAP financial
measures. Adjusted income (loss) from operations and adjusted net
income per share (diluted) is calculated as income (loss) from
operations, adjusted operating margin - excluding restructuring,
and net income per share (diluted) excluding the impact of
restructuring. The adjustments to net income per share (diluted)
include restructuring-related costs and a foreign currency loss on
divested operations. We believe that these measures provide useful
information to investors and include them within our internal
reporting to our chief operating decision maker. Accordingly, the
discussion of our results of operations includes discussion on the
changes in our adjusted income (loss) from operations, adjusted
operating margin - excluding restructuring, and adjusted net income
per share (diluted). The reconciliation of income (loss) from
operations to adjusted income (loss) from operations, adjusted
operating margin - excluding restructuring, and net income per
share (diluted) to adjusted income (loss) from operations and
adjusted net income per share (diluted) is presented below (in
thousands except per share data):
NAST
Global
Forwarding
All Other
and Corporate
Consolidated
Three Months Ended March 31, 2024
Non-GAAP
Reconciliation:
Income (loss) from operations
$
108,895
$
31,552
$
(13,314
)
$
127,133
Severance and other personnel expenses
3,026
3,215
1,701
7,942
Other selling, general, and administrative
expenses
1,878
261
2,862
5,001
Total adjustments to income (loss) from
operations(1)
4,904
3,476
4,563
12,943
Adjusted income (loss) from operations
$
113,799
$
35,028
$
(8,751
)
$
140,076
Adjusted gross profit
$
397,110
$
180,045
$
80,574
$
657,729
Adjusted income (loss) from operations
113,799
35,028
(8,751
)
140,076
Adjusted operating margin - excluding
restructuring
28.7
%
19.5
%
N/M
21.3
%
Three Months Ended March 31,
2024
$ in 000's
per share
Net income and per share (diluted)
$
92,904
$
0.78
Restructuring and related costs,
pre-tax(1)
12,943
0.11
Tax effect of adjustments
(3,101
)
(0.03
)
Adjusted net income and per share
(diluted)
$
102,746
$
0.86
____________________________________________
(1)
The three months ended March 31, 2024
include restructuring expenses of $7.9 million related to workforce
reductions and $5.0 million of other charges, primarily related to
an impairment of internally developed software due to
reprioritizing the efforts of our product and technology teams on
fewer initiatives to accelerate the capabilities of our
platform.
NAST
Global
Forwarding
All Other
and Corporate
Consolidated
Three Months Ended March 31, 2023
Non-GAAP
Reconciliation:
Income (loss) from operations
$
134,022
$
30,116
$
(3,105
)
$
161,033
Severance and other personnel expenses
829
1,538
1,231
3,598
Other selling, general, and administrative
expenses
—
124
—
124
Total adjustments to income (loss) from
operations(1)
829
1,662
1,231
3,722
Adjusted income (loss) from operations
$
134,851
$
31,778
$
(1,874
)
$
164,755
Adjusted gross profit
$
426,655
$
177,919
$
81,066
$
685,640
Adjusted income (loss) from operations
134,851
31,778
(1,874
)
164,755
Adjusted operating margin - excluding
restructuring
31.6
%
17.9
%
N/M
24.0
%
Three Months Ended March 31,
2023
$ in 000's
per share
Net income and per share (diluted)
$
114,891
$
0.96
Restructuring and related costs,
pre-tax(1)
3,722
0.03
Foreign currency loss on divested
operations, pre-tax
1,757
0.02
Tax effect of adjustments
(894
)
(0.01
)
Adjusted net income and per share
(diluted)
$
119,476
$
1.00
____________________________________________
(1)
The three months ended March 31, 2023
includes restructuring expenses of $3.6 million related to
workforce reductions and $0.1 million of other charges.
Condensed Consolidated
Statements of Income (unaudited, in thousands, except per share
data)
Three Months Ended March 31,
2024
2023
% change
Revenues:
Transportation
$
4,082,588
$
4,327,965
(5.7
)%
Sourcing
329,723
283,705
16.2
%
Total revenues
4,412,311
4,611,670
(4.3
)%
Costs and expenses:
Purchased transportation and related
services
3,454,996
3,671,031
(5.9
)%
Purchased products sourced for resale
299,586
254,999
17.5
%
Personnel expenses
379,087
383,106
(1.0
)%
Other selling, general, and administrative
expenses
151,509
141,501
7.1
%
Total costs and expenses
4,285,178
4,450,637
(3.7
)%
Income from operations
127,133
161,033
(21.1
)%
Interest and other income/expense, net
(16,780
)
(28,265
)
(40.6
)%
Income before provision for income
taxes
110,353
132,768
(16.9
)%
Provision for income taxes
17,449
17,877
(2.4
)%
Net income
$
92,904
$
114,891
(19.1
)%
Net income per share (basic)
$
0.78
$
0.97
(19.6
)%
Net income per share (diluted)
$
0.78
$
0.96
(18.8
)%
Weighted average shares outstanding
(basic)
119,344
118,636
0.6
%
Weighted average shares outstanding
(diluted)
119,604
119,909
(0.3
)%
Business Segment
Information (unaudited, in thousands, except average employee
headcount)
NAST
Global
Forwarding
All Other
and Corporate
Consolidated
Three Months Ended March 31, 2024
Total revenues
$
3,000,313
$
858,637
$
553,361
$
4,412,311
Adjusted gross profits(1)
397,110
180,045
80,574
657,729
Income (loss) from operations
108,895
31,552
(13,314
)
127,133
Depreciation and amortization
5,350
2,844
15,684
23,878
Total assets(2)
3,065,996
1,257,675
1,148,417
5,472,088
Average employee headcount
6,004
4,876
4,110
14,990
NAST
Global
Forwarding
All Other
and Corporate
Consolidated
Three Months Ended March 31, 2023
Total revenues
$
3,304,187
$
789,978
$
517,505
$
4,611,670
Adjusted gross profits(1)
426,655
177,919
81,066
685,640
Income (loss) from operations
134,022
30,116
(3,105
)
161,033
Depreciation and amortization
5,651
5,480
13,249
24,380
Total assets(2)
3,240,898
1,194,575
1,160,111
5,595,584
Average employee headcount
6,870
5,471
4,561
16,902
____________________________________________
(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)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
121,838
$
145,524
Receivables, net of allowance for credit
loss
2,592,576
2,381,963
Contract assets, net of allowance for
credit loss
235,326
189,900
Prepaid expenses and other
174,441
163,307
Total current assets
3,124,181
2,880,694
Property and equipment, net of accumulated
depreciation and amortization
143,497
144,718
Right-of-use lease assets
366,604
353,890
Intangible and other assets, net of
accumulated amortization
1,837,806
1,845,978
Total assets
$
5,472,088
$
5,225,280
Liabilities and stockholders’
investment
Current liabilities:
Accounts payable and outstanding
checks
$
1,453,669
$
1,370,334
Accrued expenses:
Compensation
110,899
135,104
Transportation expense
186,027
147,921
Income taxes
6,246
4,748
Other accrued liabilities
162,627
159,435
Current lease liabilities
74,818
74,451
Current portion of debt
280,000
160,000
Total current liabilities
2,274,286
2,051,993
Long-term debt
1,420,776
1,420,487
Noncurrent lease liabilities
310,285
297,563
Noncurrent income taxes payable
21,798
21,289
Deferred tax liabilities
12,090
13,177
Other long-term liabilities
2,859
2,074
Total liabilities
4,042,094
3,806,583
Total stockholders’ investment
1,429,994
1,418,697
Total liabilities and stockholders’
investment
$
5,472,088
$
5,225,280
Condensed Consolidated
Statements of Cash Flow (unaudited, in thousands, except
operational data)
Three Months Ended March 31,
Operating activities:
2024
2023(1)
Net income
$
92,904
$
114,891
Adjustments to reconcile net income to net
cash (used for) provided by operating activities:
Depreciation and amortization
23,878
24,380
Provision for credit losses
2,813
(6,637
)
Stock-based compensation
22,673
15,607
Deferred income taxes
(6,805
)
(10,272
)
Excess tax benefit on stock-based
compensation
(1,570
)
(7,011
)
Other operating activities
5,596
942
Changes in operating elements:
Receivables
(225,402
)
326,244
Contract assets
(45,574
)
66,124
Prepaid expenses and other
(11,409
)
433
Right of use asset
(13,933
)
13,841
Accounts payable and outstanding
checks
84,966
(90,724
)
Accrued compensation
(23,407
)
(134,795
)
Accrued transportation expenses
38,106
(53,882
)
Accrued income taxes
3,619
(40
)
Other accrued liabilities
5,446
8,169
Lease liability
14,347
(14,003
)
Other assets and liabilities
429
1,277
Net cash (used for) provided by operating
activities
(33,323
)
254,544
Investing activities:
Purchases of property and equipment
(8,620
)
(11,371
)
Purchases and development of software
(13,854
)
(15,579
)
Net cash used for investing activities
(22,474
)
(26,950
)
Financing activities:
Proceeds from stock issued for employee
benefit plans
5,405
19,673
Stock tendered for payment of withholding
taxes
(16,130
)
(20,048
)
Repurchase of common stock
—
(31,182
)
Cash dividends
(74,580
)
(73,435
)
Proceeds from short-term borrowings
912,000
739,000
Payments on short-term borrowings
(792,000
)
(840,000
)
Net cash provided by (used for) financing
activities
34,695
(205,992
)
Effect of exchange rates on cash and cash
equivalents
(2,584
)
76
Net change in cash and cash
equivalents
(23,686
)
21,678
Cash and cash equivalents, beginning of
period
145,524
217,482
Cash and cash equivalents, end of
period
$
121,838
$
239,160
As of March 31,
Operational Data:
2024
2023
Employees
14,734
16,406
____________________________________________
(1)
The three months ended March 31, 2023 has
been adjusted to conform to current year presentation.
CHRW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501515576/en/
Chuck Ives, Director of Investor Relations Email:
chuck.ives@chrobinson.com
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