C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2023 Earnings Presentation
25 slides from C.h. Robinson Worldwide's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q3 2023 Earnings Presentation November 1, 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: Thoughts from President & CEO, Dave Bozeman
Thoughts from President & CEO, Dave Bozeman ■ Customers value the quality, stability and reliability that we provide, and they prefer partners who have the financial strength to invest through cycles and the expertise to provide innovative tech-enabled solutions ■ Focus on delivering quality and imp
Slide 4: Q3 Highlights
Q3 Highlights ■ Global freight markets continue to be impacted by weak demand and excess capacity, resulting in a loose market and suppressed transportation rates Q3 2023 ■ Focused on providing superior service to our customers and carriers and continuing to streamline our processes by removing wast
Slide 5: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues came from customers to whom we provide both surface transportation and global forwarding services.(1) Q3 2023 Adjusted Global Forwarding (GF) North American Surface Gross Profits(2) -31.6% Transportation (NAST) Y/Y ■ Reduced global d
Slide 6: NAST Q3'23 Results by Service
NAST Q3’23 Results by Service Adjusted Gross Profit(1) ($ in millions) 3Q23 3Q22 %▲ ■ Truckload volume down 6.0% year-over-year(2) ■ Truckload AGP per shipment decreased 36.5% due Truckload (“TL”) $223.0 $374.1 (40.4)% to declining profit per shipment on both contractual and transactional volume(2)
Slide 7: YoY % Change in Price and Cost per Mile
Truckload Price and Cost Change (1)(2)(3) 50% YoY % Change in Price and Cost per Mile 40% 30% 20% 10% 0% -10% -20% -30% 2016 2017 2018 2019 2020 2021 2022 2023 YoY Price Change YoY Cost Change Truckload Q3 ■ 70% / 30% truckload contractual / transactional volume mix in Q3 Volume(2)(4) -6.0% Price/Mi
Slide 8: Truckload AGP $ per Shipment Trend
Truckload AGP $ per Shipment Trend NAST Adjusted Gross Profit $ per Truckload Shipment (left axis) NAST Adjusted Gross Profit Margin % (right axis) Average NAST AGP $ per Truckload Shipment (left axis) 20% NAST Adjusted Gross Profit $ per Truckload 19% NAST Adjusted Gross Profit Margin % 18% 17% Shi
Slide 9: Global Forwarding Q3'23 Results by Service
Global Forwarding Q3’23 Results by Service Adjusted Gross Profit (1) ($ in millions) 3Q23 3Q22 %▲ ■ Reduced global demand and excess capacity impacted ocean and air pricing and volumes on a Ocean $103.8 $159.7 (35.0)% year-over-year basis ■ Ocean AGP decreased due to a 34.5% decrease in Air $29.7 $4
Slide 10: All Other & Corporate Q3'23 Results
All Other & Corporate Q3’23 Results Adjusted Gross Profit (1) ($ in millions) Robinson Fresh 3Q23 3Q22 %▲ ■ Increased AGP driven by a 23.0%(2) increase in case Robinson Fresh $31.1 $27.7 12.3% volume, primarily in retail and integrated supply chain solutions for foodservice customers Managed Service
Slide 11: Sustainable Profitable Growth Strategy
Sustainable Profitable Growth Strategy Increase Grow Scale Optimize Spend Share Globally Digitally Processes Strategically ■ Leverage integrated ■ Expand Global ■ Provide customers ■ Digitize more ■ Support organic service model to Forwarding business and carriers the internal tools and growth by le
Slide 12: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 12
Slide 13: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Improving customer outcomes with technology that supports our people and processes ■ Shipments per person per day increased 18% YTD as of Q3 vs our goal of 15% year-over-year improvement by Q4 – Accelerated the digital execution of critic
Slide 14: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 15: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ $76 million of cash returned to shareholders in Q3 2023 ■ As the cost and price of purchased transportation (inclusive of fuel surcharges) has come down over the last ■ Q3 2023 capital d
Slide 16: Appendix
Appendix 16
Slide 17: Q3 2023 Transportation Results
(1) Q3 2023 Transportation Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $4,029,407 $5,724,364 (29.6)% $12,442,199 $18,718,357 (33.5)% Total Adjusted Gross Profits(2) $607,447 $861,823 (29.5)% $1,895,648 $2,
Slide 18: Q3 2023 NAST Results
Q3 2023 NAST Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $3,086,970 $4,002,461 (22.9)% $9,470,425 $12,264,396 (22.8)% Total Adjusted Gross Profits(1) $386,510 $563,787 (31.4)% $1,213,697 $1,694,438 (28.4)
Slide 19: Q3 2023 Global Forwarding Results
Q3 2023 Global Forwarding Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $719,045 $1,511,115 (52.4)% $2,288,890 $5,798,702 (60.5)% Total Adjusted Gross Profits(1) $169,893 $248,433 (31.6)% $527,043 $894,724 (
Slide 20: Q3 2023 All Other and Corporate Results
Q3 2023 All Other and Corporate Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $535,015 $501,800 6.6 % $1,615,241 $1,566,706 3.1 % Total Adjusted Gross Profits(1) $78,446 $74,974 4.6 % $245,245 $235,841 4.0
Slide 21: 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 22: 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. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, 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 i
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income from operations and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income from operations and adjusted net income per share (diluted) is calculated as income from operations and net income per share (diluted) excluding t
Slide 25: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 25
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