C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW)
today reported financial results for the quarter ended December 31,
2020.
Fourth Quarter Key
Metrics:
- Total revenues increased 19.9 percent to $4.5
billion
- Gross profits increased 10.5 percent to $636.1
million
- Adjusted gross profits(1) increased 10.7 percent to $640.6
million
- Income from operations increased 51.2 percent to $206.8
million
- Adjusted operating margin(1) increased 870 basis points to
32.3 percent
- Diluted earnings per share (EPS) increased 47.9 percent to
$1.08
- Cash flow from operations decreased 23.4 percent to $162.1
million
Full-Year Key Metrics:
- Total revenues increased 5.9 percent to $16.2
billion
- Gross profits decreased 7.0 percent to $2.4
billion
- Adjusted gross profits(1) decreased 6.7 percent to $2.4
billion
- Income from operations decreased 14.8 percent to $673.3
million
- Adjusted operating margin(1) decreased 260 basis points to
27.9 percent
- Diluted earnings per share (EPS) decreased 11.2 percent to
$3.72
- Cash flow from operations decreased 40.2 percent to $499.2
million
(1) Adjusted gross profits and adjusted operating margin are
Non-GAAP financial measures. The same factors described in this
release that impacted the Non-GAAP measures also impacted the
comparable GAAP measures. Refer to page 10 for further discussion
and a GAAP to Non-GAAP reconciliation.
“Our fourth quarter was marked by solid performance across our
broad service portfolio, continued progress on repricing our
truckload business to reflect the changing market conditions, and
further advancements in our technology and transformation efforts
that are providing meaningful improvements,” said Bob Biesterfeld,
Chief Executive Officer of C.H. Robinson. "Our enterprise portfolio
that allows us to offer end-to-end solutions for our customers is
unique to the logistics industry, and shippers continue to rely on
Robinson's global supply chain expertise and our data and scale
advantages to ensure critical goods are moved as quickly and as
inexpensively as possible."
Fourth Quarter Results
Summary
- Total revenues increased 19.9 percent to $4.5 billion,
driven primarily by higher pricing and higher volume across most of
our service lines.
- Gross profits increased 10.5 percent to $636.1 million.
Adjusted gross profits increased 10.7 percent to $640.6
million, primarily driven by higher pricing and higher volume in
our Global Forwarding business segment and contributions from the
acquisition of Prime Distribution Services ("Prime").
- Operating expenses decreased 1.9 percent to $433.8
million, primarily due to cost savings initiatives. Personnel
expenses increased 3.4 percent to $309.3 million, compared to
the fourth quarter of 2019, which included a reduction in incentive
compensation. Average headcount decreased 4.8 percent, despite
headcount additions from Prime that added approximately 2.0
percentage points. Selling, general and administrative
(“SG&A”) expenses of $124.5 million decreased 13.0 percent,
primarily due to cost savings initiatives including lower travel
expenses.
- Income from operations totaled $206.8 million, up 51.2
percent due to the increase in adjusted gross profits. Adjusted
operating margin of 32.3 percent increased 870 basis
points.
- Interest and other expenses totaled $12.0 million,
consisting primarily of $12.3 million of interest expense, which
decreased $0.1 million versus last year due to a lower average debt
balance. The fourth quarter also included a $1.1 million favorable
impact from foreign currency revaluation and realized foreign
currency gains and losses.
- The effective tax rate in the quarter was 24.1 percent
compared to 21.4 percent in the fourth quarter last year. The
increase was primarily due to one-time items related to the tax
provision in Mexico, which were favorable in the fourth quarter of
2019 and unfavorable in the fourth quarter of 2020.
- Net income totaled $147.8 million, up 49.1 percent from
a year ago. Diluted EPS of $1.08 increased 47.9
percent.
Full Year Results
Summary
- Total revenues increased 5.9 percent to $16.2 billion,
driven primarily by higher pricing in ocean and air services and
contributions from the Prime acquisition.
- Gross profits decreased 7.0 percent to $2.4 billion.
Adjusted gross profits decreased 6.7 percent to $2.4
billion, primarily driven by lower adjusted gross profit margins in
truckload services, partially offset by contributions from the
Prime acquisition and higher adjusted gross profits in air and
ocean services.
- Operating expenses decreased 3.2 percent to $1.7
billion. Personnel expenses decreased 4.3 percent to $1.2
billion, driven primarily by cost savings initiatives, including a
2.8 percent decrease in average headcount, and a decline in
benefits expenses and incentive compensation. SG&A
expenses decreased 0.3 percent to $496.1 million, primarily due
to significantly lower travel expenses, partially offset by the
ongoing expenses from the Prime acquisition.
- Income from operations totaled $673.3 million, down 14.8
percent from last year due to a decline in adjusted gross profits.
Adjusted operating margin of 27.9 percent decreased 260
basis points.
- Interest and other expenses totaled $44.9 million, which
primarily consists of $49.1 million of interest expense. The
twelve-month period also included a $3.3 million favorable impact
from foreign currency revaluation and realized foreign currency
gains and losses.
- The effective tax rate for the full year was 19.4
percent compared to 22.3 percent in the year-ago period. The lower
effective tax rate was due primarily to the tax benefit related to
stock-based compensation, including delivery of a one-time deferred
stock award that was granted to the company's prior Chief Executive
Officer in 2000, and due to tax planning initiatives.
- Net income totaled $506.4 million, down 12.2 percent
from a year ago. Diluted EPS of $3.72 decreased 11.2
percent.
North American Surface Transportation
Results
Summarized financial results of our NAST segment are as follows
(dollars in thousands):
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
% change
2020
2019
% change
Total revenues
$
3,089,674
$
2,788,547
10.8
%
$
11,312,553
$
11,283,692
0.3
%
Adjusted gross profits(1)
396,814
390,641
1.6
%
1,517,091
1,797,369
(15.6)
%
Income from operations
150,577
130,548
15.3
%
508,475
722,763
(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.
Fourth quarter total revenues for C.H. Robinson's NAST segment
totaled $3.1 billion, an increase of 10.8 percent over the prior
year, primarily driven by higher truckload pricing and an increase
in less than truckload ("LTL") shipments. NAST adjusted gross
profits increased 1.6 percent in the quarter to $396.8 million,
with the March 2020 acquisition of Prime contributing 4.0
percentage points of adjusted gross profit growth in the quarter.
Adjusted gross profits in truckload decreased 2.1 percent and LTL
adjusted gross profits increased 4.0 percent versus the year-ago
period. Our average truckload linehaul rate per mile charged to our
customers, which excludes fuel surcharges, increased approximately
29 percent in the quarter, while truckload linehaul cost per mile,
excluding fuel surcharges, increased approximately 32.5 percent.
Truckload volume declined 3.5 percent in the quarter, and LTL
volumes grew 20.0 percent, representing an overall market share
gain for NAST in the quarter when compared to a 4 percent increase
in industry volumes, as measured by the Cass Freight Index.
Operating expenses decreased 5.3 percent primarily due to cost
savings initiatives. Income from operations increased 15.3 percent
to $150.6 million, and adjusted operating margin expanded 450 basis
points to 37.9 percent. NAST average headcount was down 8.4 percent
in the quarter, with Prime contributing 4.0 percentage points of
growth.
Global Forwarding
Results
Summarized financial results of our Global Forwarding segment
are as follows (dollars in thousands):
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
% change
2020
2019
% change
Total revenues
$
1,030,364
$
600,168
71.7
%
$
3,100,525
$
2,327,913
33.2
%
Adjusted gross profits(1)
180,057
128,989
39.6
%
628,988
533,976
17.8
%
Income from operations
58,480
15,030
289.1
%
175,513
80,527
118.0
%
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure
explained later in this release. The difference between adjusted
gross profits and gross profits is not material.
Fourth quarter total revenues for the Global Forwarding segment
increased 71.7 percent to $1.0 billion, primarily driven by higher
pricing in ocean across the industry driven by higher demand and
higher pricing in air due to reduced air cargo capacity, increased
charter flights and larger shipment sizes. Adjusted gross profits
increased 39.6 percent in the quarter to $180.1 million. Ocean
adjusted gross profits increased 53.1 percent, driven by higher
pricing and a 12.0 percent increase in volumes. Adjusted gross
profits in air increased 38.3 percent driven by higher pricing,
partially offset by a 7.5 percent decline in shipments. Customs
adjusted gross profits increased 4.5 percent, primarily driven by
an 8.0 percent increase in transaction volume. Operating expenses
increased 6.7 percent, primarily driven by increased incentive
compensation in personnel expenses and partially offset by cost
savings initiatives. Fourth quarter average headcount decreased 4.1
percent. Income from operations increased 289.1 percent to $58.5
million, and adjusted operating margin expanded 2,080 basis points
to 32.5 percent 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 December
31,
Twelve Months Ended December
31,
2020
2019
% change
2020
2019
% change
Total revenues
$
429,414
$
404,611
6.1
%
$
1,794,028
$
1,697,903
5.7
%
Adjusted gross profits(1):
Robinson Fresh
$
23,591
$
22,907
3.0
%
$
105,700
$
109,183
(3.2)
%
Managed Services
24,738
21,380
15.7
%
94,828
83,365
13.8
%
Other Surface Transportation
15,378
14,946
2.9
%
65,650
62,417
5.2
%
____________________________________________
(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.
Fourth quarter Robinson Fresh adjusted gross profits increased
3.0 percent to $23.6 million, primarily due to volume growth and
margin expansion in our retail vertical. Managed Services adjusted
gross profits increased 15.7 percent in the quarter, primarily due
to a 27.0 percent increase in volume. Other Surface Transportation
adjusted gross profits increased 2.9 percent to $15.4 million.
Europe truckload adjusted gross profit was up 1.7 percent in the
quarter due to a 7.0 percent volume increase and strength of the
Euro.
Other Income Statement
Items
The fourth quarter effective tax rate was 24.1 percent, up from
21.4 percent last year. The increase in effective tax rate was due
primarily to benefits from foreign tax credits recognized in the
fourth quarter of 2019. We expect our 2021 full-year effective tax
rate to be 20 to 22 percent.
Interest and other expenses totaled $12.0 million, consisting
primarily of $12.3 million of interest expense, which decreased
$0.1 million versus last year due to a lower average debt balance.
The fourth quarter also included a $1.1 million favorable impact
from foreign currency revaluation and realized foreign currency
gains and losses.
Diluted weighted average shares outstanding in the quarter were
up 0.4 percent due primarily to a higher share price that created a
higher dilutive effect from stock options.
Cash Flow Generation and Capital
Distribution
Cash from operations totaled $162.1 million in the fourth
quarter, compared to $211.6 million in the fourth quarter of 2019.
The $49.5 million decrease in cash flow was driven by a $112
million sequential increase in accounts receivable and contract
assets that coincided with an increase in gross sales.
In the fourth quarter, $112.8 million was returned to
shareholders, with $110.3 million in total repurchases of common
stock, as the company resumed its opportunistic share repurchase
program in the fourth quarter, and $2.5 million in cash dividends.
The quarterly dividend that was declared in the fourth quarter was
paid on January 4, 2021 rather than in December, which defers the
tax obligation of our shareholders into 2021.
Capital expenditures totaled $13.7 million in the quarter and
$54.0 million for 2020. Capital expenditures for 2021 are expected
to be $55 million to $65 million, with the majority dedicated to
technology.
Outlook
“Due to several factors, including shortages in the number of
drivers and available carrier capacity, freight markets remain
tight, and we anticipate this will continue for much of 2021. We're
committed to creating better outcomes for our customers and
carriers, by delivering industry leading technology that is built
by and for supply chain experts and by leveraging our broad service
portfolio and our unmatched combination of experience, scale and
information advantage to meet their ever-changing needs,”
Biesterfeld stated. "We're also firmly committed to the focus areas
of our investors, including profitable market share growth,
investing in technology to unlock growth and efficiency, being a
responsible corporate citizen, and driving the transformation of
C.H. Robinson, so that we can deliver industry-leading margins and
enhance shareholder value."
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 $21 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 Fourth Quarter 2020 Earnings Conference Call
Wednesday, January 27, 2021; 8:30 a.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
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.
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 December
31,
Twelve Months Ended December
31,
2020
2019
% change
2020
2019
% change
Adjusted gross profits(1):
Transportation
Truckload
$
277,509
$
281,544
(1.4)
%
$
1,071,873
$
1,348,878
(20.5)
%
LTL
117,864
113,605
3.7
%
457,290
477,348
(4.2)
%
Ocean
112,412
73,483
53.0
%
350,094
308,367
13.5
%
Air
35,723
25,940
37.7
%
151,443
106,777
41.8
%
Customs
23,977
22,925
4.6
%
87,095
91,828
(5.2)
%
Other logistics services
51,113
39,708
28.7
%
195,159
149,664
30.4
%
Total transportation
618,598
557,205
11.0
%
2,312,954
2,482,862
(6.8)
%
Sourcing
21,980
21,658
1.5
%
99,303
103,448
(4.0)
%
Total adjusted gross profits
640,578
578,863
10.7
%
2,412,257
2,586,310
(6.7)
%
____________________________________________
(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.
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 December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Revenues:
Transportation
$
4,311,852
$
3,570,405
$
15,147,562
$
14,322,295
Sourcing
237,600
222,921
1,059,544
987,213
Total revenues
4,549,452
3,793,326
16,207,106
15,309,508
Costs and expenses:
Purchased transportation and related
services
3,693,254
3,013,200
12,834,608
11,839,433
Purchased products sourced for resale
215,620
201,263
960,241
883,765
Direct internally developed software
amortization
4,510
3,366
16,634
11,492
Total direct expenses
3,913,384
3,217,829
13,811,483
12,734,690
Gross profit
$
636,068
$
575,497
$
2,395,623
$
2,574,818
Plus: Direct internally developed software
amortization
4,510
3,366
16,634
11,492
Adjusted gross profit
$
640,578
$
578,863
$
2,412,257
$
2,586,310
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 December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Total Revenues
$
4,549,452
$
3,793,326
$
16,207,106
$
15,309,508
Operating income
206,802
136,806
673,268
789,976
Operating margin
4.5
%
3.6
%
4.2
%
5.2
%
Adjusted gross profit
$
640,578
$
578,863
$
2,412,257
$
2,586,310
Operating income
206,802
136,806
673,268
789,976
Adjusted operating margin
32.3
%
23.6
%
27.9
%
30.5
%
Condensed Consolidated
Statements of Income
(unaudited, in thousands, except
per share data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Revenues:
Transportation
$
4,311,852
$
3,570,405
$
15,147,562
$
14,322,295
Sourcing
237,600
222,921
1,059,544
987,213
Total revenues
4,549,452
3,793,326
16,207,106
15,309,508
Costs and expenses:
Purchased transportation and related
services
3,693,254
3,013,200
12,834,608
11,839,433
Purchased products sourced for resale
215,620
201,263
960,241
883,765
Personnel expenses
309,260
298,981
1,242,867
1,298,528
Other selling, general, and administrative
expenses
124,516
143,076
496,122
497,806
Total costs and expenses
4,342,650
3,656,520
15,533,838
14,519,532
Income from operations
206,802
136,806
673,268
789,976
Interest and other expense
(12,033)
(10,784)
(44,937)
(47,719)
Income before provision for income
taxes
194,769
126,022
628,331
742,257
Provision for income taxes
46,962
26,916
121,910
165,289
Net income
$
147,807
$
99,106
$
506,421
$
576,968
Net income per share (basic)
$
1.09
$
0.73
$
3.74
$
4.21
Net income per share (diluted)
$
1.08
$
0.73
$
3.72
$
4.19
Weighted average shares outstanding
(basic)
135,970
135,997
135,532
136,955
Weighted average shares outstanding
(diluted)
137,176
136,621
136,173
137,735
Business Segment
Information
(unaudited, in thousands, except
average headcount)
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended December 31, 2020
Total revenues
$
3,089,674
$
1,030,364
$
429,414
$
4,549,452
Adjusted gross profits(1)
396,814
180,057
63,707
640,578
Income (loss) from operations
150,577
58,480
(2,255)
206,802
Depreciation and amortization
5,764
6,810
12,086
24,660
Total assets (2)
2,946,409
1,392,411
805,438
5,144,258
Average headcount
6,555
4,626
3,610
14,791
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended December 31, 2019
Total revenues
$
2,788,547
$
600,168
$
404,611
$
3,793,326
Adjusted gross profits(1)
390,641
128,989
59,233
578,863
Income (loss) from operations
130,548
15,030
(8,772)
136,806
Depreciation and amortization
6,384
9,293
9,650
25,327
Total assets (2)
2,550,010
1,021,592
1,069,458
4,641,060
Average headcount
7,154
4,824
3,562
15,540
____________________________________________
(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.
(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
Twelve Months Ended December 31, 2020
Total revenues
$
11,312,553
$
3,100,525
$
1,794,028
$
16,207,106
Adjusted gross profits(1)
1,517,091
628,988
266,178
2,412,257
Income (loss) from operations
508,475
175,513
(10,720)
673,268
Depreciation and amortization
25,314
34,550
41,863
101,727
Total assets (2)
2,946,409
1,392,411
805,438
5,144,258
Average headcount
6,811
4,708
3,600
15,119
NAST
Global Forwarding
All Other and Corporate
Consolidated
Twelve Months Ended December 31, 2019
Total revenues
$
11,283,692
$
2,327,913
$
1,697,903
$
15,309,508
Adjusted gross profits(1)
1,797,369
533,976
254,965
2,586,310
Income (loss) from operations
722,763
80,527
(13,314)
789,976
Depreciation and amortization
24,508
36,720
39,221
100,449
Total assets (2)
2,550,010
1,021,592
1,069,458
4,641,060
Average headcount
7,354
4,766
3,431
15,551
____________________________________________
(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.
(2)All cash and cash equivalents are included in All Other and
Corporate.
Condensed Consolidated Balance
Sheets
(unaudited, in thousands)
December 31, 2020
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$
243,796
$
447,858
Receivables, net of allowance for credit
loss
2,449,577
1,974,381
Contract assets, net of allowance for
credit loss
197,176
132,874
Prepaid expenses and other
51,152
85,005
Total current assets
2,941,701
2,640,118
Property and equipment, net
178,949
208,423
Right-of-use lease assets
319,785
310,860
Intangible and other assets
1,703,823
1,481,659
Total assets
$
5,144,258
$
4,641,060
Liabilities and stockholders’
investment
Current liabilities:
Accounts payable and outstanding
checks
$
1,283,364
$
1,062,835
Accrued expenses:
Compensation
138,460
112,784
Transportation expense
153,574
101,194
Income taxes
43,700
12,354
Other accrued liabilities
154,460
62,706
Current lease liabilities
66,174
61,280
Current portion of debt
—
142,885
Total current liabilities
1,839,732
1,556,038
Long-term debt
1,093,301
1,092,448
Noncurrent lease liabilities
268,572
259,444
Noncurrent income taxes payable
26,015
22,354
Deferred tax liabilities
22,182
39,776
Other long-term liabilities
14,523
270
Total liabilities
3,264,325
2,970,330
Total stockholders’ investment
1,879,933
1,670,730
Total liabilities and stockholders’
investment
$
5,144,258
$
4,641,060
Condensed Consolidated
Statements of Cash Flow
(unaudited, in thousands, except
operational data)
Twelve Months Ended December
31,
2020
2019
Operating activities:
Net income
$
506,421
$
576,968
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
101,727
100,449
Provision for credit losses
17,281
5,853
Stock-based compensation
43,995
39,083
Deferred income taxes
(32,984)
(2,407)
Excess tax benefit on stock-based
compensation
(17,581)
(8,492)
Other operating activities
15,096
(3,830)
Changes in operating elements, net of
acquisitions:
Receivables
(452,145)
208,312
Contract assets
(65,454)
26,761
Prepaid expenses and other
27,237
(29,871)
Accounts payable and outstanding
checks
180,272
(17,968)
Accrued compensation
22,547
(40,757)
Accrued transportation expenses
52,380
(18,626)
Accrued income taxes
51,916
(12,636)
Other accrued liabilities
26,503
8,937
Other assets and liabilities
21,980
3,643
Net cash provided by operating
activities
499,191
835,419
Investing activities:
Purchases of property and equipment
(23,133)
(36,290)
Purchases and development of software
(30,876)
(34,175)
Acquisitions, net of cash acquired
(223,230)
(59,200)
Other investing activities
5,525
16,636
Net cash used for investing activities
(271,714)
(113,029)
Financing activities:
Proceeds from stock issued for employee
benefit plans
107,657
63,092
Total repurchases of common stock
(195,368)
(324,559)
Cash dividends
(209,956)
(277,786)
Proceeds from long-term borrowings
—
1,298,000
Payments on long-term borrowings
—
(1,505,000)
Proceeds from short-term borrowings
1,436,600
185,000
Payments on short-term borrowings
(1,579,600)
(90,000)
Net cash used for financing activities
(440,667)
(651,253)
Effect of exchange rates on cash
9,128
(1,894)
Net change in cash and cash
equivalents
(204,062)
69,243
Cash and cash equivalents, beginning of
period
447,858
378,615
Cash and cash equivalents, end of
period
$
243,796
$
447,858
As of December 31,
Operational Data:
2020
2019
Employees
14,888
15,427
Source: C.H. Robinson CHRW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210126006015/en/
Chuck Ives, Director of Investor Relations Email:
chuck.ives@chrobinson.com
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