(Source: Business Wire)
C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ: CHRW), today reported financial results for the quarter ended March 31, 2009.
Summarized financial results for the quarters ended March 31 are as follows (dollars in thousands, except per share data):
Three months ended March 31, 2009 2008 % Change Gross revenues $ 1,688,000 $ 1,985,212 -15.0 % Gross profits 338,603 338,029 0.2 % Operating income 137,368 136,077 0.9 % Net income 85,383 86,318 -1.1 % Diluted EPS $ 0.50 $ 0.50 0.0 % -------------------------------------------------------------------------------
Our consolidated gross revenues decreased 15.0 percent in the first quarter of 2009 compared to the first quarter of 2008. Our Transportation gross revenue decline of 19.7 percent in the first quarter of 2009 was driven by falling transportation rates, due primarily to a reduction in fuel prices, and volume declines in most of our transportation modes. A significant decline in overall transportation market demand due to the economic recession impacted our volumes. Our Sourcing gross revenues increased 8.4 percent in the first quarter of 2009 primarily due to volume growth. Our Information Services gross revenues decreased 16.0 percent in the first quarter of 2009. The decrease was driven by declines in transactions and lower fuel prices.
Total Transportation gross profits decreased 0.3 percent to $297.7 million in the first quarter of 2009 from $298.7 million in the first quarter of 2008. Our Transportation gross profit margin increased to 22.6 percent in 2009 from 18.2 percent in 2008 largely driven by a decline in fuel prices.
Our truck gross profits, which consist of truckload and less-than-truckload ("LTL") services, decreased 1.1 percent in the first quarter of 2009. Our truckload volumes decreased approximately 10 percent. Our truckload gross profit margins increased due to lower fuel prices and lower cost of capacity. Although rates declined as the quarter progressed, excluding the estimated impacts of fuel on average our truckload rates decreased approximately 1 percent in the first quarter of 2009. Our LTL shipment volumes increased approximately 5 percent. Our LTL gross profit margins also increased in the first quarter of 2009.
Our intermodal gross profit increase of 6.8 percent in the first quarter was driven by margin expansion and a small increase in volumes, due to an increase in higher-margin transactional opportunities and cross selling with existing customers.
Our ocean transportation gross profits increased 16.1 percent in the first quarter of 2009 driven by margin expansion, partially offset by decreased volumes. Excluding our previously disclosed acquisition of Transera International Holdings Ltd. ("Transera") on August 1, 2008, our ocean transportation business would have declined approximately 6 percent. Our ocean gross profit margins increased due to lower cost of capacity.
Our air transportation gross profit decrease of 8.9 percent in the first quarter of 2009 was driven by decreased volumes, partially offset by the impact of the Transera acquisition and increased gross profit margins. Excluding Transera, our air transportation business decreased approximately 14 percent.
For the first quarter, Sourcing gross profits increased 13.0 percent to $30.6 million in 2009 from $27.1 million in 2008. This increase was driven primarily by volume growth.
Our Information Services gross profits decreased 16.0 percent in the first quarter of 2009. The decrease was driven by declines in transactions. Lower fuel prices also impacted our growth, as some of our merchant fees are based on a percentage of the total sale amount.
For the first quarter, operating expenses decreased 0.4 percent to $201.2 million in 2009 from $202.0 million in 2008.This was due to a decrease of 0.3 percent in personnel expenses and a decrease of 0.4 percent in selling, general, and administrative expenses.
As a percentage of gross profits, total operating expenses decreased slightly to 59.4 percent in the first quarter of 2009 from 59.7 percent in the first quarter of 2008. This decrease was due to a decline in personnel expenses as a percentage of gross profits from 45.5 percent to 45.3 percent and a decrease in our selling, general, and administrative expenses as a percentage of gross profits from 14.3 percent in 2008 to 14.2 percent in 2009.Expenses related to our restricted stock program and various other incentive plans are variable, based on growth in our earnings. Our decline in earnings in the first quarter of 2009 compared to the growth in earnings in the first quarter of 2008 resulted in a decrease in expense related to some of these incentive plans. This contributed to a decline in personnel expenses.
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 32,000 customers through a network of 231 offices in North America, South America, Europe, Asia, and the Middle East. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 50,000 transportation providers worldwide.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions such as the current recession and decreased consumer confidence, 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 availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.
Conference Call Information:
C.H. Robinson Worldwide First Quarter 2009 Earnings Conference Call
Tuesday, April 21, 2009 5:00 p.m. Eastern time
Live webcast available through Investor Relations link at www.chrobinson.com
Telephone access: 800-218-0530
Webcast replay available through May 6, 2009; Investor Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on April 24, 2009: 800-405-2236;
passcode: 11128676#
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (In thousands, except per share data) Three months ended March 31, 2009 2008 Gross Revenues: Transportation $ 1,318,526 $ 1,641,612 Sourcing 359,134 331,297 Information Services 10,340 12,303 Total gross revenues 1,688,000 1,985,212 Gross Profits: Transportation Truck 256,359 259,323 Intermodal 9,801 9,178 Ocean 14,227 12,255 Air 7,337 8,050 Miscellaneous 9,970 9,867 Total transportation 297,694 298,673 Sourcing 30,569 27,053 Information Services 10,340 12,303 Total gross profits 338,603 338,029 Operating costs and expenses: Personnel expenses 153,223 153,754 Selling, general, and administrative expenses 48,012 48,198 Total operating expenses 201,235 201,952 Income from operations 137,368 136,077 Investment and other income 490 2,474 Income before provision for income taxes 137,858 138,551 Provision for income taxes 52,475 52,233 Net income $ 85,383 $ 86,318 Net income per share (diluted) $ 0.50 $ 0.50 Weighted average shares outstanding (diluted) 170,825 174,028 -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) March 31, 2009 December 31, 2008 Assets Current assets: Cash and cash equivalents $ 449,700 $ 494,743 Available-for-sale securities 1,988 2,644 Receivables, net 798,804 828,884 Other current assets 28,515 21,600 Total current assets 1,279,007 1,347,871 Property and equipment, net 108,547 104,088 Intangible and other assets 361,866 363,762 $ 1,749,420 $ 1,815,721 Liabilities and stockholders' investment Current liabilities: Accounts payable and outstanding checks $ 523,051 $ 568,758 Accrued compensation 36,885 93,431 Other accrued expenses 74,538 35,464 Total current liabilities 634,474 697,653 Long term liabilities 11,743 10,847 Total liabilities 646,217 708,500 Total stockholders' investment 1,103,203 1,107,221 $ 1,749,420 $ 1,815,721 -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (In thousands, except operational data) Three months ended March 31, 2009 2008 Operating activities: Net income $ 85,383 $ 86,318 Stock-based compensation 5,627 8,255 Depreciation and amortization 7,481 7,663 Provision for doubtful accounts 3,858 2,713 Other non-cash expenses, net (1,258 ) 889 Net changes in operating elements (42,408 ) (80,106 ) Net cash provided by operating activities 58,683 25,732 Investing activities: Net property additions (11,613 ) (5,928 ) Purchases of available-for-sale securities - (99,944 ) Sales/maturities of available-for-sale securities 750 181,254 Other assets, net - 500 Net cash (used for) provided by investing activities (10,863 ) 75,882 Financing activities: Net repurchases of common stock (49,278 ) (31,847 ) Excess tax benefit from stock based compensation plans 1,983 7,711 Cash dividends (39,573 ) (37,996 ) Net cash used for financing activities (86,868 ) (62,132 ) Effect of exchange rates on cash (5,995 ) 1,479 Net change in cash and cash equivalents (45,043 ) 40,961 Cash and cash equivalents, beginning of period 494,743 338,885 Cash and cash equivalents, end of period $ 449,700 $ 379,846 As of March 31 2009 2008 Operational Data: Employees 7,481 7,505 Branches 231 220 -------------------------------------------------------------------------------
A service of YellowBrix, Inc.
