C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2018 Earnings Presentation
27 slides from C.h. Robinson Worldwide's earnings presentation, Jan 30, 2019
Slide 1: Earnings Conference Call – Fourth Quarter 2018
Earnings Conference Call – Fourth Quarter 2018 January 30, 2019 John Wiehoff, Chairman & CEO Andrew Clarke, CFO Robert Biesterfeld, COO Robert Houghton, VP of Investor Relations 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: Q4 2018 – Key Themes
Q4 2018 – Key Themes ▪ Strength of the business model is our ability to rebalance our portfolio ▪ Continued investment through the freight cycle ▪ Excellent fourth quarter and full-year financial performance 3 3
Slide 4: Results Q4 2018
Results Q4 2018 in thousands, except per share amounts and headcount Three Months Ended December 31 2018 2017 % Change Total Revenues $4,137,908 $3,959,786 4.5% Total Net Revenues $713,783 $631,849 13.0% Net Revenue Margin % 17.2% 16.0% 120 bps Personnel Expenses $339,316 $311,599 8.9% Selling, Gene
Slide 5: Q4 2018 Other Income Statement Items
Q4 2018 Other Income Statement Items ▪ Q4 effective tax rate of 23.9% vs. 21.1% last year ▪ $28.4 million favorable impact of U.S. corporate tax reform in the quarter ▪ Year-ago period included one-time tax benefits totaling $31.8 million ▪ $2.4 million favorable impact from currency revaluation ▪ I
Slide 6: 2018 Cash Flow
2018 Cash Flow Q4 Cash Flow from Operations FY 2018 Cash Flow from Operations + 59.4% + 106.5% $792.9M $264.0M $165.7M $384.0M ▪ $98.3 million increase in cash flow ▪ $408.9 million increase in cash flow driven by higher net income and driven by higher net income and improved working capital perform
Slide 7: 2018 Capital Distribution
2018 Capital Distribution Q4 Capital Distribution FY 2018 Capital Distribution + 42.4% + 28.3% $168.4M $590.1M $459.8M $118.3M Share Repurchases Cash Dividends ▪ $168.4 million of net income returned ▪ $590.1 million of net income to shareholders returned to shareholders ▪ $70.0 million in cash divi
Slide 8: Q4 2018 Balance Sheet
Q4 2018 Balance Sheet in thousands December 31, December 31, 2018 2017 % Change Accounts Receivable, Net $2,162,438 $2,113,930 Contract Assets(1) $159,635 — Accounts Payable and O/S Checks $1,063,107 $1,096,664 Accrued Transportation Expense(1) $119,820 — Net Operating Working Capital(2) $1,139,146
Slide 9: Results FY 2018
Results FY 2018 in thousands, except per share amounts and headcount Twelve Months Ended December 31 2018 2017 % Change Total Revenues $16,631,172 $14,869,380 11.8% Total Net Revenues $2,705,235 $2,368,050 14.2% Net Revenue Margin % 16.3% 15.9% 40 bps Personnel Expenses $1,343,542 $1,179,527 13.9% S
Slide 10: First Quarter 2019 Trends – January
First Quarter 2019 Trends – January ▪ January to date total company net revenue per business day has increased approximately 9 percent when compared to January 2018 ▪ Truckload volume per business day has increased approximately 3 percent on a year-over-year basis in January 10 10
Slide 11: North America Truckload Cost and Price Change
North America Truckload Cost and Price Change(1) TRANSPORTATION NET REVENUE MARGIN YoY Price Change YoY Cost Change Transportation Net Revenue Margin North America ▪ North America Truckload cost and price change chart Truckload Q4 represents truckload shipments from all North America Volume (2.5%) s
Slide 12: North America Truckload Cost and Price Per Mile
North America Truckload Cost and Price Per Mile(1) Price per Mile Cost per Mile ▪ North America Truckload cost and price per mile chart represents truckload shipments from all North America segments ▪ 2018 fourth quarter cost and price per mile remain above historical average levels ▪ Continued pric
Slide 13: NAST Results by Service Line
Q4 2018 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended December 31 Net Revenues 2018 2017 % Change ▪ Year-over-year price Truckload $343,978 $304,525 13.0% increases in truckload, LTL LTL $112,110 $100,529 11.5% and intermodal Intermodal $8
Slide 14: NAST Operating Income
Q4 2018 NAST Operating Income Q4 Operating Income Q4 Operating Margin % + 16.9% + 130 bps $211.0M 44.8% $180.6M 43.5% ▪ Increased net revenues ▪ Progress against productivity initiatives ▪ Headcount increased approximately 1 percent ‹#› 14
Slide 15: Global Forwarding Results by Service Line
Q4 2018 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended December 31 ▪ Volume increases in ocean Net Revenues 2018 2017 % Change and customs Ocean $82,113 $73,069 12.4% Air $28,051 $25,668 9.3% ▪ Improved ocean net Customs $23,762 $21,145 12.4% revenue
Slide 16: Global Forwarding Operating Income
Q4 2018 Global Forwarding Operating Income Q4 Operating Income Q4 Operating Margin % + 76.9% + 770 bps $29.8M 20.9% $16.8M 13.2% ▪ Increased net revenues ▪ Improved employee productivity ▪ 0.4 percent decrease in average headcount ‹#› 16
Slide 17: Robinson Fresh Results
Q4 2018 Robinson Fresh Results Transportation and Sourcing in thousands Three Months Ended December 31 Sourcing 2018 2017 % Change ▪ Sourcing case volume declined 6.5 percent Total Revenues(1) $241,158 $312,619 (22.9%) Net Revenues $24,892 $27,116 (8.2%) Net Revenue Margin % 10.3% 8.7% 160 bps ▪ Tru
Slide 18: Robinson Fresh Operating Income
Q4 2018 Robinson Fresh Operating Income Q4 Operating Income Q4 Operating Margin % + 53.5% + 700 bps $19.8M 30.8% $12.9M 23.8% ▪ Increased transportation net revenues ▪ Continued operating expense reduction initiatives ▪ 5.1 percent reduction in average headcount ‹#› 18
Slide 19: All Other and Corporate Results
Q4 2018 All Other and Corporate Results Managed Services and Other Surface Transportation in thousands Three Months Ended December 31 Net Revenues 2018 2017 % Change Managed Services $20,318 $18,322 10.9% Other Surface Transportation $15,035 $16,220 (7.3%) Total $35,353 $34,542 2.3% Managed Services
Slide 20: Final Comments
Final Comments ▪ Evidence of a balanced freight market ▪ Expect economic growth to continue ▪ Investing for future growth ‹#› 20
Slide 21: Appendix
Appendix 21
Slide 22: Transportation Results
Q4 2018 Transportation Results(1) in thousands Three Months Ended December 31 Twelve Months Ended December 31 Transportation 2018 2017 % Change 2018 2017 % Change Total Revenues $3,896,750 $3,647,167 6.8% $15,515,921 $13,502,906 14.9% Total Net Revenues $688,891 $604,733 13.9% $2,593,744 $2,245,616
Slide 23: NAST Results
Q4 2018 NAST Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2018 2017 % Change 2018 2017 % Change Total Revenues(1) $2,774,524 $2,618,587 6.0% $11,247,900 $9,728,810 15.6% Total Net Revenues $471,394 $415,315 13.5% $1,788,498 $1,525,064 17.3% Ne
Slide 24: Global Forwarding Results
Q4 2018 Global Forwarding Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2018 2017 % Change 2018 2017 % Change Total Revenues(1) $677,125 $591,245 14.5% $2,487,744 $2,140,987 16.2% Total Net Revenues $142,737 $127,869 11.6% $543,906 $485,280 12.
Slide 25: Robinson Fresh Results
Q4 2018 Robinson Fresh Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2018 2017 % Change 2018 2017 % Change Total Revenues(1) $531,817 $594,646 (10.6%) $2,268,900 $2,415,740 (6.1%) Total Net Revenues $64,299 $54,123 18.8% $234,046 $226,059 3.5%
Slide 26: All Other and Corporate Results
Q4 2018 All Other and Corporate Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2018 2017 % Change 2018 2017 % Change Total Revenues(1) $154,442 $155,308 (0.6%) $626,628 $583,843 7.3% Total Net Revenues $35,353 $34,542 2.3% $138,785 $131,647 5.4%
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