C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q1 2023 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, Apr 26, 2023
Slide 1: Q1 2023 Earnings Presentation
Scott Anderson, Interim CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q1 2023 Earnings Presentation April 26, 2023 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-loo
Slide 3: Q1 Highlights
Q1 Highlights ■ Freight demand continues to be soft, driven by shippers managing through elevated inventory levels amidst slowing economic growth Q1 2023 ■ Staying focused on customers and carriers and streamlining processes that are core to our operating model $4.6B $686M Total Revenues Adj. Gross
Slide 4: Segment Highlights: Diversified, Global Suite of Services
Segment Highlights: Diversified, Global Suite of Services Over half of total revenues and adjusted gross profits came from customers to whom we provide both surface transportation and global forwarding services.(1) Q1 2023 Adjusted North American Surface Global Forwarding (GF) Gross Profit(2) -44.7%
Slide 5: NAST Q1'23 Results by Service
NAST Q1’23 Results by Service Adjusted Gross Profit(1) ($ in millions) 1Q23 1Q22 %▲ ▪ Truckload volume down 3.5% year-over-year(2) ▪ Truckload AGP per shipment decreased 19.0% due Truckload (“TL”) $261.5 $334.9 (21.9)% to a lower AGP per shipment on transactional Less than Truckload (“LTL”) $137.1 $
Slide 6: Truckload Price and Cost Change
Truckload Price and Cost Change (1)(2)(3) Truckload Q1 ■ 70% / 30% truckload contractual / transactional volume mix in Q1 Volume(2)(4) -3.5% Price/Mile(1)(2)(3) ■ Average routing guide depth of 1.2 in Managed Services business vs. 1.7 in Q1 last -27.5% year Cost/Mile(1)(2)(3) -28.5% Adjusted Gross P
Slide 7: Truckload AGP $ per Shipment Trend
Truckload AGP $ per Shipment Trend ■ AGP $ per Truckload Shipment reflects business performance better than AGP Margin % (1) ■ While NAST AGP Margin % has declined 240 bps compared to Q2 2020, AGP $ per Truckload Shipment increased 2% over the same timeframe 1. Adjusted gross profit and adjusted gro
Slide 8: Global Forwarding Q1'23 Results by Service
Global Forwarding Q1’23 Results by Service Adjusted Gross Profit (1) ($ in millions) ▪ Destocking of elevated inventory levels and a 1Q23 1Q22 %▲ slowdown in global demand impacting ocean and air pricing and volumes Ocean $110.1 $221.4 (50.3)% ▪ Ocean AGP decreased due to a 41.5% decrease in Air $30
Slide 9: All Other & Corporate Q1'23 Results
All Other & Corporate Q1’23 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 1Q23 1Q22 %▲ ▪ Increased AGP driven by integrated supply chain solutions Robinson Fresh $31.1 $30.5 2.1% for foodservice and retail customers Managed Services Managed Services $29.0 $28.1 3.2% ▪ AGP growth d
Slide 10: Sustainable Growth Strategy
Sustainable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage integrated ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic service model to Forwarding business and carriers the internal tools and growth by leveraging gr
Slide 11: Scalable Operating Model to Drive Profitable Growth
Scalable Operating Model to Drive Profitable Growth 11
Slide 12: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Shipments per person per day increased 4% sequentially in Q1, as we progress toward our goal of 15% year-over-year improvement by Q4 2023 – Accelerated the digital execution of critical touch points in the lifecycle of a load, including:
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ Changes in cash from operations have been driven ■ $125 million of cash returned to shareholders in Q1 2023, down 50% primarily by sequential changes in operating working capital due to
Slide 15: Appendix
Appendix 15
Slide 16: Q1 2023 Transportation Results
Q1 2023 Transportation Results(1) Three Months Ended March 31 $ in thousands 2023 2022 % Change Total Revenues $4,327,965 $6,528,351 (33.7)% Total Adjusted Gross Profits(2) $656,934 $878,127 (25.2)% Adjusted Gross Profit Margin % 15.2 % 13.5 % 170 bps Transportation Adjusted 2014 2015 2016 2017 2018
Slide 17: Q1 2023 NAST Results
Q1 2023 NAST Results Three Months Ended March 31 $ in thousands 2023 2022 % Change Total Revenues $3,304,187 $4,114,889 (19.7)% Total Adjusted Gross Profits(1) $426,655 $506,100 (15.7)% Adjusted Gross Profit Margin % 12.9 % 12.3 % 60 bps Income from Operations(2) $134,022 $182,354 (26.5)% Adjusted O
Slide 18: Q1 2023 Global Forwarding Results
Q1 2023 Global Forwarding Results Three Months Ended March 31 $ in thousands 2023 2022 % Change Total Revenues $789,978 $2,194,397 (64.0)% Total Adjusted Gross Profits(1) $177,919 $321,848 (44.7)% Adjusted Gross Profit Margin % 22.5 % 14.7 % 780 bps Income from Operations(2) $30,116 $167,638 (82.0)%
Slide 19: Q1 2023 All Other and Corporate Results
Q1 2023 All Other and Corporate Results Three Months Ended March 31 $ in thousands 2023 2022 % Change Total Revenues $517,505 $506,667 2.1 % Total Adjusted Gross Profits(1) $81,066 $78,248 3.6 % Income (loss) from Operations(2) -$3,105 -$4,518 (31.3)% Depreciation and Amortization $13,249 $10,692 23
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations 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 and net income per share
Slide 23: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 23
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