C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2019 Earnings Presentation
21 slides from C.h. Robinson Worldwide's earnings presentation, Jan 29, 2020
Slide 1: Earnings Conference Call – Fourth Quarter 2019
Earnings Conference Call – Fourth Quarter 2019 January 29, 2020 Bob Biesterfeld, CEO Mike Zechmeister, CFO Bob Houghton, VP of Corporate Finance
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 2019 Summary
Q4 2019 Summary ▪ Fourth quarter results below our long-term targets ▪ Improving volume trends in truckload ▪ Entered a definitive agreement to acquire Prime Distribution Services 3
Slide 4: Results Q4 2019
Results Q4 2019 in thousands, except per share amounts and headcount Three Months Ended December 31 Twelve Months Ended December 31 2019 2018 % Change 2019 2018 % Change Total Revenues $3,793,326 $4,137,908 (8.3%) $15,309,508 $16,631,172 (7.9%) Total Net Revenues $578,863 $713,783 (18.9%) $2,586,310
Slide 5: Other Income Statement Items
Q4 2019 Other Income Statement Items ▪ Q4 effective tax rate of 21.4% vs. 23.9% last year ▪ $3.2 million benefit from one-time items ▪ Expect full-year 2020 effective tax rate to be 22.0-24.0% ▪ $0.9 million unfavorable impact from currency revaluation ▪ Interest expense decline due to lower debt le
Slide 6: Cash Flow and Capital Distribution
Q4 2019 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution (19.9%) (18.5%) $264.0M $168.4M $211.6M $137.3M Share Repurchases Cash Dividends Q4 2018 Q4 2019 Q4 2018 Q4 2019 ▪ $52.4 million decrease in cash flow ▪ $137.3 million returned to primarily driven by lower net
Slide 7: Balance Sheet
Q4 2019 Balance Sheet in thousands December 31, December 31, % Change 2019 2018 Accounts Receivable, Net(1) $2,107,255 $2,322,073 (9.3%) Accounts Payable(2) $1,164,029 $1,182,927 (1.6%) Net Operating Working Capital(3) $943,226 $1,139,146 (17.2%) ▪ Total debt balance $1.24 billion ▪ $600 million sen
Slide 8: First Quarter 2020 Trends – January
First Quarter 2020 Trends – January ▪ January to date total company net revenue per business day has decreased approximately 18 percent when compared to January 2019 ▪ North America truckload volume per business day has increased 6 percent on a year-over-year basis in January 8
Slide 9: NAST Truckload Cost and Price Change
25% NAST Truckload Cost and Price Change(1) YOY % CHANGE IN COST AND PRICE 20% 15% 10% 5% 0% -5% YoY Price Change -10% YoY Cost Change -15% -20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NAST Q4 Truckload ▪ North American Surface Transportation ("NAST") truckload Volume(1) 0.0% cost and pric
Slide 10: NAST Results by Service Line
Q4 2019 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended December 31 ▪ Year-over-year price Net Revenues 2019 2018 % Change declines in truckload, LTL Truckload $264,191 $375,289 (29.6%) and intermodal LTL $112,213 $116,195 (3.4%) Intermodal
Slide 11: NAST Operating Income
Q4 2019 NAST Operating Income Q4 Operating Income Q4 Operating Margin % (43.3%) (1,180 bps) $230.1M 45.2% 33.4% $130.5M Q4 2018 Q4 2019 Q4 2018 Q4 2019 ▪ Decreased net revenues ▪ Average headcount decreased 3.3 percent ▪ Lower variable compensation 11
Slide 12: Global Forwarding Results by Service Line
Q4 2019 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended December 31 ▪ Ocean, air and customs net Net Revenues 2019 2018 % Change revenue declines due to Ocean $73,445 $82,113 (10.6%) lower pricing and volume Air $24,448 $28,051 (12.8%) ▪ Space Cargo a
Slide 13: Global Forwarding Operating Income
Q4 2019 Global Forwarding Operating Income Q4 Operating Income Q4 Operating Margin % (49.5%) (920 bps) $29.8M 20.9% 11.7% $15.0M Q4 2018 Q4 2019 Q4 2018 Q4 2019 ▪ Decreased net revenues ▪ 3.4 percent increase in average headcount ▪ Space Cargo acquisition contributed 3.5 percentage points to Global
Slide 14: All Other and Corporate Results
Q4 2019 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation in thousands Three Months Ended December 31 Net Revenues 2019 2018 % Change Robinson Fresh $22,907 $27,003 (15.2%) Managed Services $21,380 $20,318 5.2% Other Surface $14,946 $15,035 (0.6%) Tran
Slide 15: Final Comments
Final Comments ▪ Expectations for 2020: ▪ Expect net revenue per load headwinds through the first half of 2020 ▪ Leverage technology investments to drive productivity gains and increasing levels of automation ▪ Three-year $100 million cost reduction initiative ▪ Opportunistic share repurchases 15
Slide 16: Appendix
Appendix
Slide 17: Transportation Results
Q4 2019 Transportation Results(1) in thousands Three Months Ended December 31 Twelve Months Ended December 31 Transportation 2019 2018 % Change 2019 2018 % Change Total Revenues $3,570,405 $3,896,750 (8.4%) $14,322,295 $15,515,921 (7.7%) Total Net Revenues $557,205 $688,891 (19.1%) $2,482,862 $2,593
Slide 18: NAST Results
Q4 2019 NAST Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2019 2018 % Change 2019 2018 % Change Total Revenues $2,788,547 $3,050,247 (8.6%) $11,283,692 $12,346,757 (8.6%) Total Net Revenues $390,641 $508,690 (23.2%) $1,797,369 $1,906,261 (5.7%
Slide 19: Global Forwarding Results
Q4 2019 Global Forwarding Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2019 2018 % Change 2019 2018 % Change Total Revenues $600,168 $677,125 (11.4%) $2,327,913 $2,487,744 (6.4%) Total Net Revenues $128,989 $142,737 (9.6%) $533,976 $543,906 (1
Slide 20: All Other and Corporate Results
Q4 2019 All Other and Corporate Results in thousands, except headcount Three Months Ended December 31 Twelve Months Ended December 31 2019 2018 % Change 2019 2018 % Change Total Revenues $404,611 $410,536 (1.4%) $1,697,903 $1,796,671 (5.5%) Total Net Revenues $59,233 $62,356 (5.0%) $254,965 $255,068
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