Business Wire | Oct 27, 2020 04:17PM EDT

C.H. Robinson Reports 2020 Third Quarter Results

Oct. 27, 2020

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 27, 2020--C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2020.

Third Quarter Key Metrics:

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

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

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

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

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

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

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

North American Surface Transportation Results

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

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 % change 2020 2019 % change

Total revenues $ 2,923,842 $ 2,826,308 3.5 % $ 8,222,879 $ 8,495,145 (3.2 ) %

Net revenues 367,943 433,760 (15.2 ) % 1,120,277 1,406,728 (20.4 ) %

Income from 122,526 176,200 (30.5 ) % 357,898 592,215 (39.6 ) %operations



Third quarter total revenues for C.H. Robinson's NAST segment totaled $2.9 billion, an increase of 3.5 percent over the prior year, primarily driven by higher truckload pricing and an increase in less than truckload ("LTL") shipments. NAST net revenues decreased 15.2 percent in the quarter to $367.9 million, with the March 2020 acquisition of Prime contributing 3.5 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased 24.1 percent, less than truckload net revenues decreased 4.4 percent, and intermodal net revenues increased 6.1 percent versus the year-ago period. Excluding fuel surcharges and costs, average North America truckload linehaul rate per mile charged to customers increased approximately 10.5 percent in the quarter, while truckload linehaul cost per mile increased approximately 16.5 percent. Truckload volume increased 0.5 percent in the quarter, and LTL volumes grew 13.5 percent, both representing market share gains in the quarter when compared to an 8 percent decline in industry volumes, as measured by the Cass Freight Index. Intermodal volumes grew 2.5 percent versus the prior year. Operating expenses decreased 4.7 percent primarily due to short-term cost reductions. Income from operations decreased 30.5 percent to $122.5 million, and operating margin declined 730 basis points to 33.3 percent. NAST average headcount was down 10.0 percent in the quarter, with Prime contributing 4.5 percentage points of growth. NAST average full-time equivalents, which excludes furloughed employees and accounts for employees with reduced work hours, was down 13.4 percent.

Global Forwarding Results

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

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 % 2020 2019 % change change

Total $ 831,957 $ 597,695 39.2 % $ 2,070,161 $ 1,727,745 19.8 %revenues

Net 157,657 135,815 16.1 % 448,931 404,987 10.9 %revenues

Incomefrom 46,299 24,676 87.6 % 117,033 65,497 78.7 %operations



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

All Other and Corporate Results

Total revenues and net revenues for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 % change 2020 2019 % change

Total revenues $ 469,001 $ 432,129 8.5 % $ 1,364,614 $ 1,293,292 5.5 %

Net revenues:

Robinson Fresh $ 24,449 $ 26,382 (7.3 ) % $ 82,109 $ 86,276 (4.8 ) %

Managed Services 24,060 21,574 11.5 % 70,090 61,985 13.1 %

Other Surface 15,164 15,900 (4.6 ) % 50,272 47,471 5.9 %Transportation



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

Other Income Statement Items

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

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

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

Cash Flow Generation and Capital Distribution

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

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

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

Outlook

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

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, we are one of the world's largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world's economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 119,000 customers and 78,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers' businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, such factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; changes due to catastrophic events including pandemics such as COVID-19; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.

Conference Call Information:

C.H. Robinson Worldwide Third Quarter 2020 Earnings Conference CallWednesday, October 28, 2020; 8:30 a.m. Eastern TimePresentation 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: 877-269-7756International callers dial +1-201-689-7817

We invite call participants to submit questions in advance of the conference call, and we will respond to as many of the questions as we can in the time allowed. To submit your question(s) in advance of the call, please email chuck.ives@chrobinson.com.

Summarized Financial Results($ in thousands, except per share data)

This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the service line net revenues discussed within the segments as our segments have revenues from multiple service lines.

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 % change 2020 2019 % change

Total revenues $ 4,224,800 $ 3,856,132 9.6 % $ 11,657,654 $ 11,516,182 1.2 %

Net revenues:

Transportation

Truckload $ 251,072 $ 317,990 (21.0 ) % $ 794,364 $ 1,067,334 (25.6 ) %

LTL 118,561 124,523 (4.8 ) % 339,426 363,743 (6.7 ) %

Intermodal 7,455 7,110 4.9 % 22,775 19,484 16.9 %

Ocean 88,927 77,879 14.2 % 237,682 234,884 1.2 %

Air 34,977 27,121 29.0 % 115,720 80,837 43.2 %

Customs 22,464 23,719 (5.3 ) % 63,118 68,903 (8.4 ) %

Other logistics 42,874 30,025 42.8 % 121,271 90,472 34.0 %services

Total transportation 566,330 608,367 (6.9 ) % 1,694,356 1,925,657 (12.0 ) %

Sourcing 22,943 25,064 (8.5 ) % 77,323 81,790 (5.5 ) %

Total net revenues 589,273 633,431 (7.0 ) % 1,771,679 2,007,447 (11.7 ) %



Operating expenses 421,034 432,346 (2.6 ) % 1,305,213 1,354,277 (3.6 ) %

Income from 168,239 201,085 (16.3 ) % 466,466 653,170 (28.6 ) %operations

Net income $ 136,529 $ 146,894 (7.1 ) % $ 358,614 $ 477,862 (25.0 ) %

Diluted EPS $ 1.00 $ 1.07 (6.5 ) % $ 2.63 $ 3.45 (23.8 ) %

Our total revenues represent the total dollar value of services and goods we sell to our customers. Net revenues are a non-GAAP financial measure calculated as total revenues less the cost of purchased transportation and related services and the cost of purchased products sourced for resale. We believe net revenues are a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider net revenues to be our primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our net revenues. The reconciliation of total revenues to net revenues is presented below (in thousands):

Three Months Ended September Nine Months Ended September 30, 30,

2020 2019 2020 2019

Revenues:

Transportation $ 3,944,981 $ 3,608,346 $ 10,835,710 $ 10,751,890

Sourcing 279,819 247,786 821,944 764,292

Total revenues 4,224,800 3,856,132 11,657,654 11,516,182

Costs and expenses:

Purchasedtransportation 3,378,651 2,999,979 9,141,354 8,826,233 and relatedservices

Purchasedproducts 256,876 222,722 744,621 682,502 sourced forresale

Total costs and 3,635,527 3,222,701 9,885,975 9,508,735 expenses

Total net $ 589,273 $ 633,431 $ 1,771,679 $ 2,007,447 revenues

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Revenues:

Transportation

$

3,944,981

$

3,608,346

$

10,835,710

$

10,751,890

Sourcing

279,819

247,786

821,944

764,292

Total revenues

4,224,800

3,856,132

11,657,654

11,516,182

Costs and expenses:

Purchased transportation and related services

3,378,651

2,999,979

9,141,354

8,826,233

Purchased products sourced for resale

256,876

222,722

744,621

682,502

Personnel expenses

302,904

320,563

933,607

999,547

Other selling, general, and administrative expenses

118,130

111,783

371,606

354,730

Total costs and expenses

4,056,561

3,655,047

11,191,188

10,863,012

Income from operations

168,239

201,085

466,466

653,170

Interest and other expense

(7,465

)

(13,180

)

(32,904

)

(36,935

)

Income before provision for income taxes

160,774

187,905

433,562

616,235

Provision for income taxes

24,245

41,011

74,948

138,373

Net income

$

136,529

$

146,894

$

358,614

$

477,862

Net income per share (basic)

$

1.01

$

1.08

$

2.65

$

3.48

Net income per share (diluted)

$

1.00

$

1.07

$

2.63

$

3.45

Weighted average shares outstanding (basic)

135,671

136,380

135,385

137,274

Weighted average shares outstanding (diluted)

137,128

137,476

136,137

138,373

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019



Revenues:

Transportation $ 3,944,981 $ 3,608,346 $ 10,835,710 $ 10,751,890

Sourcing 279,819 247,786 821,944 764,292

Total revenues 4,224,800 3,856,132 11,657,654 11,516,182

Costs and expenses:

Purchasedtransportation 3,378,651 2,999,979 9,141,354 8,826,233 and relatedservices

Purchasedproducts 256,876 222,722 744,621 682,502 sourced forresale

Personnel 302,904 320,563 933,607 999,547 expenses

Other selling,general, and 118,130 111,783 371,606 354,730 administrativeexpenses

Total costs 4,056,561 3,655,047 11,191,188 10,863,012 and expenses

Income from 168,239 201,085 466,466 653,170 operations

Interest and (7,465 ) (13,180 ) (32,904 ) (36,935 ) other expense

Income beforeprovision for 160,774 187,905 433,562 616,235 income taxes

Provision for 24,245 41,011 74,948 138,373 income taxes

Net income $ 136,529 $ 146,894 $ 358,614 $ 477,862



Net income per $ 1.01 $ 1.08 $ 2.65 $ 3.48 share (basic)

Net income pershare $ 1.00 $ 1.07 $ 2.63 $ 3.45 (diluted)



Weightedaverage shares 135,671 136,380 135,385 137,274 outstanding(basic)

Weightedaverage shares 137,128 137,476 136,137 138,373 outstanding(diluted)

Business Segment Information

(unaudited, dollars in thousands)

NAST

Global Forwarding

All Other and Corporate

Consolidated

Three Months Ended September 30, 2020

Total revenues

$

2,923,842

$

831,957

$

469,001

$

4,224,800

Net revenues

367,943

157,657

63,673

589,273

Income (loss) from operations

122,526

46,299

(586

)

168,239

Depreciation and amortization

7,095

9,385

10,436

26,916

Total assets (1)

3,041,974

1,148,118

884,746

5,074,838

Average headcount

6,702

4,607

3,595

14,904

Average full-time equivalents(2)

6,351

4,430

3,449

14,230

NAST

Global Forwarding

All Other and Corporate

Consolidated

Three Months Ended September 30, 2019

Total revenues

$

2,826,308

$

597,695

$

432,129

$

3,856,132

Net revenues

433,760

135,815

63,856

633,431

Income from operations

176,200

24,676

209

201,085

Depreciation and amortization

5,734

9,186

10,560

25,480

Total assets (1)

2,649,259

995,137

992,153

4,636,549

Average headcount

7,448

4,790

3,544

15,782

Average full-time equivalents(2)

7,332

4,647

3,425

15,404

____________________________________________

Business Segment Information

(unaudited, dollars in thousands)

Global All NAST Forwarding Other and Consolidated Corporate

Three MonthsEnded September 30, 2020

Total revenues $ 2,923,842 $ 831,957 $ 469,001 $ 4,224,800

Net revenues 367,943 157,657 63,673 589,273

Income (loss) 122,526 46,299 (586 ) 168,239 from operations

Depreciation and 7,095 9,385 10,436 26,916 amortization

Total assets ^(1) 3,041,974 1,148,118 884,746 5,074,838

Average headcount 6,702 4,607 3,595 14,904

Average full-time 6,351 4,430 3,449 14,230 equivalents^(2)



Global All NAST Forwarding Other and Consolidated Corporate

Three MonthsEnded September 30, 2019

Total revenues $ 2,826,308 $ 597,695 $ 432,129 $ 3,856,132

Net revenues 433,760 135,815 63,856 633,431

Income from 176,200 24,676 209 201,085 operations

Depreciation and 5,734 9,186 10,560 25,480 amortization

Total assets ^(1) 2,649,259 995,137 992,153 4,636,549

Average headcount 7,448 4,790 3,544 15,782

Average full-time 7,332 4,647 3,425 15,404 equivalents^(2)

____________________________________________

^ All cash and cash equivalents are included in All Other and Corporate.(1)^ Average full-time equivalents excludes furloughed employees and accounts(2) for employees with reduced work hours.

Business Segment Information

(unaudited, dollars in thousands)

NAST

Global Forwarding

All Other and Corporate

Consolidated

Nine Months Ended September 30, 2020

Total revenues

$

8,222,879

$

2,070,161

$

1,364,614

$

11,657,654

Net revenues

1,120,277

448,931

202,471

1,771,679

Income (loss) from operations

357,898

117,033

(8,465

)

466,466

Depreciation and amortization

19,550

27,740

29,777

77,067

Total assets (1)

3,041,974

1,148,118

884,746

5,074,838

Average headcount

6,870

4,716

3,591

15,177

NAST

Global Forwarding

All Other and Corporate

Consolidated

Nine Months Ended September 30, 2019

Total revenues

$

8,495,145

$

1,727,745

$

1,293,292

$

11,516,182

Net revenues

1,406,728

404,987

195,732

2,007,447

Income (loss) from operations

592,215

65,497

(4,542

)

653,170

Depreciation and amortization

18,124

27,427

29,571

75,122

Total assets (1)

2,649,259

995,137

992,153

4,636,549

Average headcount

7,436

4,748

3,398

15,582

____________________________________________

Business Segment Information

(unaudited, dollars in thousands)

Global All NAST Forwarding Other and Consolidated Corporate

Nine MonthsEnded September30, 2020

Total $ 8,222,879 $ 2,070,161 $ 1,364,614 $ 11,657,654 revenues

Net revenues 1,120,277 448,931 202,471 1,771,679

Income(loss) from 357,898 117,033 (8,465 ) 466,466 operations

Depreciationand 19,550 27,740 29,777 77,067 amortization

Total assets 3,041,974 1,148,118 884,746 5,074,838 ^(1)

Average 6,870 4,716 3,591 15,177 headcount



Global All NAST Forwarding Other and Consolidated Corporate

Nine MonthsEnded September30, 2019

Total $ 8,495,145 $ 1,727,745 $ 1,293,292 $ 11,516,182 revenues

Net revenues 1,406,728 404,987 195,732 2,007,447

Income(loss) from 592,215 65,497 (4,542 ) 653,170 operations

Depreciationand 18,124 27,427 29,571 75,122 amortization

Total assets 2,649,259 995,137 992,153 4,636,549 ^(1)

Average 7,436 4,748 3,398 15,582 headcount

____________________________________________

^(1) All cash and cash equivalents are included in All Other and Corporate.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

September 30, 2020

December 31, 2019

Assets

Current assets:

Cash and cash equivalents

$

252,569

$

447,858

Receivables, net of allowance for credit loss

2,346,384

1,974,381

Contract assets, net of allowance for credit loss

187,973

132,874

Prepaid expenses and other

65,773

85,005

Total current assets

2,852,699

2,640,118

Property and equipment, net

183,244

208,423

Right-of-use lease assets

339,819

310,860

Intangible and other assets

1,699,076

1,481,659

Total assets

$

5,074,838

$

4,641,060

Liabilities and stockholders' investment

Current liabilities:

Accounts payable and outstanding checks

$

1,268,905

$

1,062,835

Accrued expenses:

Compensation

130,958

112,784

Transportation expense

147,590

101,194

Income taxes

12,074

12,354

Other accrued liabilities

74,781

62,706

Current lease liabilities

66,692

61,280

Current portion of debt

59,979

142,885

Total current liabilities

1,760,979

1,556,038

Long-term debt

1,093,087

1,092,448

Noncurrent lease liabilities

279,212

259,444

Noncurrent income taxes payable

22,981

22,354

Deferred tax liabilities

44,942

39,776

Other long-term liabilities

278

270

Total liabilities

3,201,479

2,970,330

Total stockholders' investment

1,873,359

1,670,730

Total liabilities and stockholders' investment

$

5,074,838

$

4,641,060

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

September 30, December 31, 2020 2019

Assets

Current assets:

Cash and cash equivalents $ 252,569 $ 447,858

Receivables, net of allowance for credit 2,346,384 1,974,381 loss

Contract assets, net of allowance for 187,973 132,874 credit loss

Prepaid expenses and other 65,773 85,005

Total current assets 2,852,699 2,640,118



Property and equipment, net 183,244 208,423

Right-of-use lease assets 339,819 310,860

Intangible and other assets 1,699,076 1,481,659

Total assets $ 5,074,838 $ 4,641,060



Liabilities and stockholders' investment

Current liabilities:

Accounts payable and outstanding checks $ 1,268,905 $ 1,062,835

Accrued expenses:

Compensation 130,958 112,784

Transportation expense 147,590 101,194

Income taxes 12,074 12,354

Other accrued liabilities 74,781 62,706

Current lease liabilities 66,692 61,280

Current portion of debt 59,979 142,885

Total current liabilities 1,760,979 1,556,038



Long-term debt 1,093,087 1,092,448

Noncurrent lease liabilities 279,212 259,444

Noncurrent income taxes payable 22,981 22,354

Deferred tax liabilities 44,942 39,776

Other long-term liabilities 278 270

Total liabilities 3,201,479 2,970,330



Total stockholders' investment 1,873,359 1,670,730

Total liabilities and stockholders' $ 5,074,838 $ 4,641,060 investment

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

Nine Months Ended September 30,

2020

2019

Operating activities:

Net income

$

358,614

$

477,862

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

Depreciation and amortization

77,067

75,122

Provision for credit losses

12,701

642

Stock-based compensation

33,127

40,657

Deferred income taxes

(9,468

)

(3,360

)

Excess tax benefit on stock-based compensation

(17,127

)

(6,908

)

Other operating activities

13,104

(4,471

)

Changes in operating elements, net of acquisitions:

Receivables

(367,538

)

104,108

Contract assets

(56,131

)

9,067

Prepaid expenses and other

12,331

(18,940

)

Accounts payable and outstanding checks

186,755

3,871

Accrued compensation

16,458

(45,319

)

Accrued transportation expenses

46,396

(5,323

)

Accrued income taxes

17,125

(7,042

)

Other accrued liabilities

8,907

5,210

Other assets and liabilities

4,728

(1,318

)

Net cash provided by operating activities

337,049

623,858

Investing activities:

Purchases of property and equipment

(17,446

)

(26,661

)

Purchases and development of software

(22,815

)

(24,282

)

Acquisitions, net of cash acquired

(223,230

)

(59,188

)

Other investing activities

5,525

16,625

Net cash used for investing activities

(257,966

)

(93,506

)

Financing activities:

Proceeds from stock issued for employee benefit plans

100,542

40,442

Total repurchases of common stock

(85,098

)

(255,655

)

Cash dividends

(207,428

)

(207,865

)

Proceeds from long-term borrowings

-

929,000

Payments on long-term borrowings

-

(1,018,000

)

Proceeds from short-term borrowings

1,043,600

14,000

Payments on short-term borrowings

(1,126,600

)

(19,000

)

Net cash used for financing activities

(274,984

)

(517,078

)

Effect of exchange rates on cash

612

(7,465

)

Net change in cash and cash equivalents

(195,289

)

5,809

Cash and cash equivalents, beginning of period

447,858

378,615

Cash and cash equivalents, end of period

$

252,569

$

384,424

As of September 30,

Operational Data:

2020

2019

Employees

14,695

15,654

Source: C.H. Robinson CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20201027006117/en/

CONTACT: Chuck Ives, Director of Investor Relations Email:chuck.ives@chrobinson.com