C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q2 2021 Earnings Presentation
22 slides from C.h. Robinson Worldwide's earnings presentation, Jul 27, 2021
Slide 1: Q2 2021 Earnings Presentation
Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR Q2 2021 Earnings Presentation July 27, 2021 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 2021 Key Highlights
Q2 2021 Key Highlights ▪ Record quarter for Total Volumes, Revenues, Adjusted Gross Profit ("AGP") & Operating Income(1) ▪ Largest service lines delivered both year-over-year and sequential growth in total volumes, revenues & AGP ▪ Year-over-year volume growth in NAST Truckload & higher AGP/load ▪ R
Slide 4: Company Highlights
Company Highlights Total NAST volume up 16% year-over-year and at an all-time high Truckload volume up _Less-than-truckload volume up 6.0% 23.5% and AGP/load up 7.0% and AGP/order down 1.5% Technology Advancement 290,000 90” of North America truckload fully automated truckload freight is available t
Slide 5: Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies
Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies Beginning of Increased Tech Investment Beginning of Increased Tech Investment 5
Slide 6: Results Q2 2021
Results Q2 2021 Three Months Ended June 30 Six Months Ended June 30 $ in thousands, except per share amounts 2021 2020 % CHANGE 2021 2020 % CHANGE Total Revenues $5,532,726 $3,627,846 52.5 % $10,336,595 $7,432,854 39.1 % Total Adjusted Gross Profits(1) $749,176 $614,453 21.9 % $1,451,556 $1,182,406
Slide 7: Cash Flow and Capital Distribution
Q2 2021 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution Share (67%) 199% Repurchases $204.8M Cash $447.1M Dividends $68.4M $149.3M Q2 2020 Q2 2021 Q2 2020 Q2 2021 • $297.8 million decrease in cash flow driven • $204.8 million returned to shareholders primarily by an
Slide 8: Balance Sheet
Q2 2021 Balance Sheet $ in thousands June 30, 2021 June 30, 2020 % CHANGE Accounts Receivable, Net(1) $3,459,529 $2,172,606 59.2% (2) Accounts Payable $1,916,109 $1,409,614 35.9% (3) Net Operating Working Capital $1,543,420 $762,992 102.3% • Increases in accounts receivable and accounts payable driv
Slide 9: Truckload Price and Cost Change
Truckload Price and Cost Change(1)(2)(3) 55% YoY % Change in Price and Cost 50% 45% YoY Price Change 40% 35% YoY Cost Change 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Truckload Q2 • 55% / 45% truckload contractual to transactional volume mix compared t
Slide 10: NAST Results by Service
Q2 2021 NAST Results by Service Truckload, LTL and Other Three Months Ended June 30 Adjusted Gross Profits(1) ($ in thousands) 2021 2020 % Change • Truckload volume up 6.0% and LTL Truckload $286,574 $252,165 13.6 % volume up 23.5%(2) LTL $128,155 $105,428 21.6 % • Truckload AGP per load increased O
Slide 11: NAST Operating Income
Q2 2021 NAST Operating Income Operating Income Adjusted Operating Margin % 10.4% (150 bps) $151.1M 36.1% $136.8M 34.6% Q2 2020 Q2 2021 Q2 2020 Q2 2021 • Improved operating income due to 15.0% increase in AGP • Operating expenses increased 17.6%, primarily due to higher incentive compensation and the
Slide 12: Global Forwarding Results by Service
Q2 2021 Global Forwarding Results by Service Ocean, Air, Customs and Other Three Months Ended June 30 Adjusted Gross Profits(1) ($ in thousands) 2021 2020 % Change • Continuing to add new commercial Ocean $150,916 $78,734 91.7 % relationships with strategic, multi-national Air $52,179 $51,541 1.2 %
Slide 13: Global Forwarding Operating Income
Q2 2021 Global Forwarding Operating Income Operating Income Adjusted Operating Margin % 84.1% 920 bps 45.3% $108.2M 36.1% $58.8M Q2 2020 Q2 2021 Q2 2020 Q2 2021 • Improved operating income due to 46.5% increase in AGP • Operating expenses increased 25.3%, primarily due to higher salaries, technology
Slide 14: All Other and Corporate Results
Q2 2021 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation Adjusted Gross Profits1 Three Months Ended June 30 ($ in thousands) 2021 2020 % Change Robinson Fresh $29,940 $30,202 (0.9)% Managed Services $26,234 $23,503 11.6% Other Surface Transportation $
Slide 15: Appendix
-H. ROBINSON Appendix ee |
Slide 16: Transportation Results
Q2 2021 Transportation Results(1) Three Months Ended June 30 Six Months Ended June 30 Transportation ($ in thousands) 2021 2020 % Change 2021 2020 % Change Total Revenues $5,240,448 $3,348,611 56.5% $9,800,675 $6,890,729 42.2% Total Adjusted Gross Profits(2) $721,143 $586,021 23.1% $1,400,085 $1,128
Slide 17: NAST Results
Q2 2021 NAST Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $3,585,481 $2,475,292 44.9% $6,796,904 $5,299,037 28.3% Total Adjusted Gross Profits(1) $436,596 $379,556 15.0% $857,704 $752,334 14.0% Adjusted Gross Profit M
Slide 18: Global Forwarding Results
Q2 2021 Global Forwarding Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $1,450,794 $707,820 105.0% $2,606,833 $1,238,204 110.5% Total Adjusted Gross Profits(1) $238,754 $162,960 46.5% $453,054 $291,274 55.5% Adjusted G
Slide 19: All Other and Corporate Results
Q2 2021 All Other and Corporate Results Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $496,451 $444,734 11.6% $932,858 $895,613 4.2% Total Adjusted Gross Profits(1) $73,826 $71,937 2.6% $140,798 $138,798 1.4% Income from Opera
Slide 20: 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 21: 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. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary
Slide 22: Thank you
-H. ROBINSON WL] Mi =~ Thank you
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