C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q2 2020 Earnings Presentation
20 slides from C.h. Robinson Worldwide's earnings presentation, Jul 29, 2020
Slide 1: Earnings Conference Call – Second Quarter 2020
Earnings Conference Call – Second Quarter 2020 July 29, 2020 Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director 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: Q2 2020 Opening Remarks
Q2 2020 Opening Remarks ▪ Solid performance from all business segments despite unprecedented volatility ▪ Continued market share gains in NAST ▪ Results benefited from diverse portfolio of logistics services ▪ Productivity improvements driven by technology investments and cost control ▪ Improved liq
Slide 4: Results Q2 2020
Results Q2 2020 in thousands, except per share amounts and headcount Three Months Ended June 30 Six Months Ended June 30 2020 2019 % Change 2020 2019 % Change Total Revenues $3,627,846 $3,908,840 (7.2%) $7,432,854 $7,660,050 (3.0%) Total Net Revenues $614,453 $695,216 (11.6%) $1,182,406 $1,374,016 (
Slide 5: Other Income Statement Items
Q2 2020 Other Income Statement Items ▪ Q2 effective tax rate of 19.4% vs. 23.4% in Q2 2019 ▪ Lower tax rate due to tax benefit from delivery of a one-time deferred stock award granted to prior CEO in 2000 ▪ Expect full-year 2020 effective tax rate to be 20.0%-22.0% ▪ $1.8 million favorable impact fr
Slide 6: Cash Flow and Capital Distribution
Q2 2020 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution 124.0% (61.9%) $179.8M $447.1M Share Repurchases $199.6M Cash Dividends $68.4M Q2 2019 Q2 2020 Q2 2019 Q2 2020 ▪ $247.5 million increase in cash flow ▪ $68.4 million returned to shareholders driven by changes i
Slide 7: Balance Sheet
Q2 2020 Balance Sheet in thousands June 30, 2020 June 30, 2019 % Change Accounts Receivable, Net(1) $2,172,606 $2,279,261 (4.7%) Accounts Payable(2) $1,409,614 $1,261,615 11.7% Net Operating Working Capital(3) $762,992 $1,017,646 (25.0%) ▪ Total debt balance $1.09 billion ▪ $600 million senior unsec
Slide 8: NAST Truckload Cost and Price Change
(1)(2) 25% NAST Truckload Cost and Price Change YOY % CHANGE IN COST AND PRICE 20% 15% 10% 5% 0% -5% -10% YoY Price Change YoY Cost Change -15% -20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NAST Q2 Truckload ▪ 65% / 35% truckload contractual to transactional volume mix Volume(2) (4.5%)
Slide 9: NAST Results by Service Line
Q2 2020 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended June 30 ▪ Net revenue margin Net Revenues 2020 2019 % Change compression in truckload Truckload $252,165 $352,912 (28.5%) and LTL LTL $105,428 $121,526 (13.2%) Intermodal $7,588 $6,021
Slide 10: NAST Operating Income
Q2 2020 NAST Operating Income Operating Income Operating Margin % (33.2%) (600 bps) $204.7M 42.1% 36.1% $136.8M Q2 2019 Q2 2020 Q2 2019 Q2 2020 ▪ Decrease in net revenues vs. historically high net revenue in Q2 2019 ▪ Lower personnel expenses and reduced SG&A expenses ▪ Average headcount including f
Slide 11: Global Forwarding Results by Service Line
Q2 2020 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended June 30 ▪ Air net revenue increase Net Revenues 2020 2019 % Change due to unusually high rates Ocean $78,734 $85,389 (7.8%) and market share gains Air $51,541 $25,212 104.4% ▪ Air market impacted
Slide 12: Global Forwarding Operating Income
Q2 2020 Global Forwarding Operating Income Operating Income Operating Margin % 120.8% 1,730 bps 36.1% $58.8M 18.8% $26.6M Q2 2019 Q2 2020 Q2 2019 Q2 2020 ▪ 14.8% increase in net revenues ▪ Lower personnel expenses and reduced SG&A expenses ▪ 0.9% decrease in average headcount including furloughed em
Slide 13: All Other and Corporate Results
Q2 2020 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation in thousands Three Months Ended June 30 Net Revenues 2020 2019 % Change Robinson Fresh $30,202 $31,236 (3.3%) Managed Services $23,503 $20,099 16.9% Other Surface $18,232 $15,527 17.4% Transport
Slide 14: Final Comments
Final Comments ▪ Balancing continued investment in technology to drive growth with cost reductions ▪ Committed to emerging stronger from this time of uncertainty ‹#› 14
Slide 15: Appendix
Appendix 15
Slide 16: Q2 2020 Transportation Results
(1) Q2 2020 Transportation Results in thousands Three Months Ended June 30 Six Months Ended June 30 Transportation 2020 2019 % Change 2020 2019 % Change Total Revenues $3,348,611 $3,638,612 (8.0%) $6,890,729 $7,143,544 (3.5%) Total Net Revenues $586,021 $665,614 (12.0%) $1,128,026 $1,317,290 (14.4%)
Slide 17: NAST Results
Q2 2020 NAST Results in thousands, except headcount Three Months Ended June 30 Six Months Ended June 30 2020 2019 % Change 2020 2019 % Change Total Revenues $2,475,292 $2,872,053 (13.8%) $5,299,037 $5,668,837 (6.5%) Total Net Revenues $379,556 $486,418 (22.0%) $752,334 $972,968 (22.7%) Net Revenue M
Slide 18: Global Forwarding Results
Q2 2020 Global Forwarding Results in thousands, except headcount Three Months Ended June 30 Six Months Ended June 30 2020 2019 % Change 2020 2019 % Change Total Revenues $707,820 $592,483 19.5% $1,238,204 $1,130,050 9.6% Total Net Revenues $162,960 $141,936 14.8% $291,274 $269,172 8.2% Net Revenue M
Slide 19: All Other and Corporate Results
Q2 2020 All Other and Corporate Results in thousands, except headcount Three Months Ended June 30 Six Months Ended June 30 2020 2019 % Change 2020 2019 % Change Total Revenues $444,734 $444,304 0.1% $895,613 $861,163 4.0% Total Net Revenues $71,937 $66,862 7.6% $138,798 $131,876 5.2% Income from Ope
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