C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2020 Earnings Presentation
21 slides from C.h. Robinson Worldwide's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Earnings Presentation
Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR Q3 2020 Earnings Presentation October 28, 2020 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: Q3 2020 Opening Remarks
Q3 2020 Opening Remarks ▪ Transitional quarter, with net revenue improving through the quarter ▪ Continued market share gains in NAST ▪ Honoring our contractual commitments and capturing more spot market opportunities ▪ Strong portfolio of services continues to benefit our results ▪ Continued produc
Slide 4: Engaging Customers in New & Innovative Ways
Engaging Customers in New & Innovative Ways • Forged an alliance with Microsoft to help shippers digitally transform their supply chains • Delivered new tech capabilities for Freightquote by C.H. Robinson • Includes innovative partnership with TaskRabbit for small business e- commerce • Unprecedente
Slide 5: Strategies Creating Shareholder Value
Strategies Creating Shareholder Value • Creating better outcomes for our customers and carriers • Utilizing our unmatched combination of experience, scale and information advantage • Leveraging our broad service portfolio • Focusing on profitable market share growth • Delivering industry leading tec
Slide 6: Results Q3 2020
Results Q3 2020 Three Months Ended September 30 Nine Months Ended September 30 $ in thousands, except per share amounts 2020 2019 % CHANGE 2020 2019 % CHANGE Total Revenues $4,224,800 $3,856,132 9.6 % $11,657,654 $11,516,182 1.2 % Total Net Revenues $589,273 $633,431 (7.0)% $1,771,679 $2,007,447 (11
Slide 7: Other Income Statement Items
Q3 2020 Other Income Statement Items Q3 effective tax rate of $3.3 million favorable Interest expense declined 15.1% vs. 21.8% in Q3 impact from currency $0.8 million versus Q3 2019 revaluation, versus a $1.1 2019 due to a lower million unfavorable impact average debt balance Lower tax rate due to d
Slide 8: Cash Flow and Capital Distribution
Q3 2020 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution Share (200.8%) (47.1%) Repurchases $167.3M $135.9M Cash Dividends ($168.6)M $71.9M Q3 2019 Q3 2020 Q3 2019 Q3 2020 • $335.9 million decrease in cash flow driven by • $71.9 million returned to shareholders an in
Slide 9: Balance Sheet
Q3 2020 Balance Sheet $ in thousands September 30, 2020 September 30, 2019 % CHANGE Accounts Receivable, Net(1) $2,534,357 $2,225,018 13.9% (2) Accounts Payable $1,416,495 $1,191,095 18.9% (3) Net Operating Working Capital $1,117,862 $1,033,923 8.1% • Increases in accounts receivable and accounts pa
Slide 10: Truckload Price and Cost Change
Truckload Price and Cost Change(1)(2)(3) 30% YOY % CHANGE IN COST AND 25% YoY Price Change 20% YoY Cost Change 15% 10% PRICE 5% 0% -5% -10% -15% -20% 2013 2014 2015 2016 2017 2018 2019 2020 Truckload Q3 • 60% / 40% truckload contractual to transactional volume mix compared to 70% / Volume(2)(4) 0.5%
Slide 11: NAST Results by Service Line
Q3 2020 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal Three Months Ended September 30 Net Revenues ($ in thousands) 2020 2019 % Change • Net revenue margin compression in Truckload $226,992 $299,065 (24.1)% truckload due to rising cost environment LTL $117,602 $122,959 (
Slide 12: NAST Operating Income
Q3 2020 NAST Operating Income Operating Income Operating Margin % (30.5%) (730 bps) $176.2M 40.6% 33.3% $122.5M Q3 2019 Q3 2020 Q3 2019 Q3 2020 • Decrease in truckload net revenues due to rising costs in a tight capacity environment • Personnel expenses reduced by 12.2% • Average headcount including
Slide 13: Global Forwarding Results by Service Line
Q3 2020 Global Forwarding Results by Service Line Ocean, Air and Customs Three Months Ended September 30 • Air and ocean net revenue increased due Net Revenues ($ in thousands) 2020 2019 % Change to higher pricing and market share gains Ocean $88,878 $77,777 14.3 % • Air market impacted by reduced a
Slide 14: Global Forwarding Operating Income
Q3 2020 Global Forwarding Operating Income Operating Income Operating Margin % $46.3M 1,120 bps 29.4% 87.6% $24.7M 18.2% Q3 2019 Q3 2020 Q3 2019 Q3 2020 • Improved operating leverage from • 16.1% increase in net revenues • Higher pricing in air and ocean and higher ocean volumes • 3.8% decrease in a
Slide 15: All Other and Corporate Results
Q3 2020 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation Three Months Ended September 30 Net Revenues ($ in thousands) 2020 2019 % Change Robinson Fresh $24,449 $26,382 (7.3)% Managed Services $24,060 $21,574 11.5% Other Surface Transportation $15,164
Slide 16: Appendix
-H. ROBINSON Appendix
Slide 17: Transportation Results
Q3 2020 Transportation Results(1) Three Months Ended September 30 Nine Months Ended September 30 Transportation ($ in thousands) 2020 2019 % Change 2020 2019 % Change Total Revenues $3,944,981 $3,608,346 9.3% $10,835,710 $10,751,890 0.8% Total Net Revenues $566,330 $608,367 (6.9%) $1,694,356 $1,925,
Slide 18: NAST Results
Q3 2020 NAST Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $2,923,842 $2,826,308 3.5% $8,222,879 $8,495,145 (3.2%) Total Net Revenues $367,943 $433,760 (15.2%) $1,120,277 $1,406,728 (20.4%) Net Revenue Margi
Slide 19: Global Forwarding Results
Q3 2020 Global Forwarding Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $831,957 $597,695 39.2% $2,070,161 $1,727,745 19.8% Total Net Revenues $157,657 $135,815 16.1% $448,931 $404,987 10.9% Net Revenue Marg
Slide 20: All Other and Corporate Results
Q3 2020 All Other and Corporate Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $469,001 $432,129 8.5% $1,364,614 $1,293,292 5.5% Total Net Revenues $63,673 $63,856 (0.3%) $202,471 $195,732 3.4% Income from Op
Slide 21: Thank you
H. ROBINSON le Thank you
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