C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2021 Earnings Presentation
24 slides from C.h. Robinson Worldwide's earnings presentation, Oct 26, 2021
Slide 1: Q3 2021 Earnings Presentation
Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR Q3 2021 Earnings Presentation October 26, 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: Tech-plus strategy with best-in-class solutions delivered through a global network of experts
Tech-plus strategy with best-in-class solutions delivered through a global network of experts that you can rely on • Technology built by and for supply chain experts—proven, tailored, market-leading solutions that drive better outcomes • A diversified, global suite of services—we can reliably meet a
Slide 4: Diversified, global suite of logistics services
Diversified, global suite of logistics services Q3 2021 Total Revenue Mix North American Surface Transportation (NAST) 7% • Largest network of truckload and LTL carriers in North America • Industry-leading technology to automate the entire shipment lifecycle and provide better end-to-end visibility
Slide 5: Key Highlights
Q3 2021 Key Highlights Record quarterly financial results • NAST Truckload volume growth continues • Sixth consecutive quarter of year-over-year growth in Global Forwarding results • Digital investments are delivering differentiated value and unlocking growth • Capacity-constrained environment expec
Slide 6: Company Highlights
Company Highlights NAST Total NAST AGP up 25% year-over-year Truckload volume up —_Less-than-truckload volume up 45% 1.0% and AGPiload up 30.0% | and AGP/order up 10.5% Technology Advancement 340,000 90% of North America truckload freight is available to be booked in a fully digital manner 24" 880 i
Slide 7: Results Q3 2021
Results Q3 2021 Three Months Ended September 30 Nine Months Ended September 30 $ in thousands, except per share amounts 2021 2020 % CHANGE 2021 2020 % CHANGE Total Revenues $6,263,695 $4,224,800 48.3 % $16,600,290 $11,657,654 42.4 % Total Adjusted Gross Profits(1) $844,192 $589,273 43.3 % $2,295,748
Slide 8: NAST Results by Service
Q3 2021 NAST Results by Service Truckload, LTL and Other Three Months Ended September 30 Adjusted Gross Profits(1) ($ in thousands) 2021 2020 % Change Truckload $309,787 $226,992 36.5 % LTL $131,166 $117,602 11.5 % Other $19,196 $23,349 (17.8)% Total Adjusted Gross Profits $460,149 $367,943 25.1 % A
Slide 9: Truckload Price and Cost Change
Truckload Price and Cost Change(1)(2)(3) 50% YoY % Change in Price 40% 30% and Cost 20% 10% 0% -10% -20% 2016 2017 2018 2019 2020 2021 YoY Price Change YoY Cost Change Truckload Q3 • 60% / 40% truckload contractual to transactional volume mix, consistent with Q3 Volume(2)(4) +4.5% last year Pricing(
Slide 10: Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies
Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies Beginning of Increased Tech Investment Beginning of Increased Tech Investment (1) 2020 metrics based on average full-time equivalents rather than average headcount, due to the impact of furloughed employees in 2020. A
Slide 11: NAST Operating Income
Q3 2021 NAST Operating Income Operating Income Adjusted Operating Margin % 21.6% (90 bps) $149.0M 33.3% 32.4% $122.5M Q3 2020 Q3 2021 Q3 2020 Q3 2021 • Improved operating income due to 25.1% increase in AGP • Operating expenses increased 26.8%, primarily due to higher incentive compensation and the
Slide 12: Global Forwarding Results by Service
Q3 2021 Global Forwarding Results by Service Ocean, Air, Customs and Other Three Months Ended September 30 Adjusted Gross Profits(1) ($ in thousands) 2021 2020 % Change • Continuing to add new commercial Ocean $214,824 $88,878 141.7 % relationships with strategic, multi-national Air $59,621 $33,836
Slide 13: Global Forwarding Operating Income
Q3 2021 Global Forwarding Operating Income Operating Income Adjusted Operating Margin % 256.7% 2,370 bps 53.1% $165.2M 29.4% $46.3M Q3 2020 Q3 2021 Q3 2020 Q3 2021 • Improved operating income due to 97.2% increase in AGP • Operating expenses increased 30.9%, primarily due to higher personnel expense
Slide 14: All Other and Corporate Results
Q3 2021 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation Adjusted Gross Profits(1) Three Months Ended September 30 ($ in thousands) 2021 2020 % Change Robinson Fresh $26,651 $24,449 9.0% Managed Services $26,720 $24,060 11.1% Other Surface Transportat
Slide 15: Cash Flow and Capital Distribution
Q3 2021 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution Share 56% 230% Repurchases $237.2M Cash Dividends ($73.5)M $71.9M $(168.6)M Q3 2020 Q3 2021 Q3 2020 Q3 2021 • $95.1 million increase in cash flow driven primarily • $237.2 million returned to shareholders by an
Slide 16: Balance Sheet
Q3 2021 Balance Sheet $ in thousands September 30, 2021 September 30, 2020 % CHANGE Accounts Receivable, Net(1) $4,138,542 $2,534,357 63.3% (2) Accounts Payable $2,183,343 $1,416,495 54.1% (3) Net Operating Working Capital $1,955,199 $1,117,862 74.9% • Increases in accounts receivable were driven pr
Slide 17: Appendix
-H. ROBINSON Appendix ee |
Slide 18: Transportation Results
Q3 2021 Transportation Results(1) Three Months Ended September 30 Nine Months Ended September 30 Transportation ($ in thousands) 2021 2020 % Change 2021 2020 % Change Total Revenues $5,999,901 $3,944,981 52.1% $15,800,576 $10,835,710 45.8% Total Adjusted Gross Profits(2) $819,511 $566,330 44.7% $2,2
Slide 19: NAST Results
Q3 2021 NAST Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $3,814,988 $2,923,842 30.5% $10,611,892 $8,222,879 29.1% Total Adjusted Gross Profits(1) $460,149 $367,943 25.1% $1,317,853 $1,120,277 17.6% Adjuste
Slide 20: Global Forwarding Results
Q3 2021 Global Forwarding Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $1,978,901 $831,957 137.9% $4,585,734 $2,070,161 121.5% Total Adjusted Gross Profits(1) $310,898 $157,657 97.2% $763,952 $448,931 70.2%
Slide 21: All Other and Corporate Results
Q3 2021 All Other and Corporate Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2021 2020 % Change 2021 2020 % Change Total Revenues $469,806 $469,001 0.2% $1,402,664 $1,364,614 2.8% Total Adjusted Gross Profits(1) $73,145 $63,673 14.9% $213,943 $202,471 5.7% In
Slide 22: 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 23: 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 24: Thank you
-H. ROBINSON WL] Mi =~ Thank you
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