C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2019 Earnings Presentation
21 slides from C.h. Robinson Worldwide's earnings presentation, Oct 30, 2019
Slide 1: Earnings Conference Call – Third Quarter 2019
Earnings Conference Call – Third Quarter 2019 October 30, 2019 Bob Biesterfeld, CEO Mike Zechmeister, CFO Bob Houghton, VP of Investor Relations 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 2019 – Key Themes
Q3 2019 – Key Themes ▪ Results below our long-term expectations ▪ Price and cost declines in most service lines ▪ Low-single-digit growth in truckload contractual volume 3 3
Slide 4: Results Q3 2019
Results Q3 2019 in thousands, except per share amounts and headcount Three Months Ended September 30 Nine Months Ended September 30 2019 2018 % Change 2019 2018 % Change Total Revenues $3,856,132 $4,291,900 (10.2%) $11,516,182 $12,493,264 (7.8%) Total Net Revenues $633,431 $694,044 (8.7%) $2,007,447
Slide 5: Other Income Statement Items
Q3 2019 Other Income Statement Items ▪ Q3 effective tax rate of 21.8% vs. 26.5% last year ▪ $2.7 million reduction in income tax provision in Q3 ▪ Expect full-year 2019 effective tax rate to be 23.0-24.0% ▪ $5.8 million gain from office building sale included in All Other and Corporate operating inc
Slide 6: Cash Flow and Capital Distribution
Q3 2019 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution (24.1%) (9.9%) $220.4M $150.8M Share $167.3M $135.9M Repurchases Cash Dividends Q3 2018 Q3 2019 Q3 2018 Q3 2019 ▪ $53.1 million decrease in cash flow ▪ $135.9 million returned to primarily driven by lower net i
Slide 7: Balance Sheet
Q3 2019 Balance Sheet in thousands September 30, September 30, 2019 2018 % Change Accounts Receivable, Net(1) $2,225,018 $2,453,355 (9.3%) Accounts Payable(2) $1,191,095 $1,309,443 (9.0%) Net Operating Working Capital(3) $1,033,923 $1,143,912 (9.6%) ▪ Total debt balance $1.25 billion ▪ $600 million
Slide 8: Fourth Quarter 2019 Trends – October
Fourth Quarter 2019 Trends – October ▪ October to date total company net revenue per business day has decreased approximately 15 percent when compared to October 2018 ▪ North America truckload volume per business day is approximately flat on a year-over-year basis in October 8 8
Slide 9: NAST Truckload Cost and Price Change
NAST Truckload Cost and Price Change(1) 25% E C 20% I R P 15% D N A 10% T S O 5% C N I 0% E G N -5% A H C -10% YoY Price Change % Y YoY Cost Change -15% O Y -20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 NAST Q3 ▪ North American Surface Transportation ("NAST") truckload Truckload cost and pr
Slide 10: NAST Results by Service Line
Q3 2019 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended September 30 ▪ Year-over-year price Net Revenues 2019 2018 % Change declines in truckload, Truckload $299,065 $362,115 (17.4%) LTL, intermodal and LTL $122,959 $121,438 1.3% Other Inter
Slide 11: NAST Operating Income
Q3 2019 NAST Operating Income Q3 Operating Income Q3 Operating Margin % (21.3%) (420 bps) $223.9M 44.8% 40.6% $176.2M Q3 2018 Q3 2019 Q3 2018 Q3 2019 ▪ Decreased net revenues ▪ Average headcount decreased 0.1 percent ▪ Lower variable compensation ‹#› 11
Slide 12: Global Forwarding Results by Service Line
Q3 2019 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended September 30 ▪ Ocean net revenue increase due to margin Net Revenues 2019 2018 % Change expansion Ocean $77,777 $74,700 4.1% ▪ Air net revenue decline due Air $26,195 $28,228 (7.2%) to declines i
Slide 13: Global Forwarding Operating Income
Q3 2019 Global Forwarding Operating Income Q3 Operating Income Q3 Operating Margin % + 3.5% + 40 bps 17.8% 18.2% $23.8M $24.7M Q3 2018 Q3 2019 Q3 2018 Q3 2019 ▪ Increased net revenues ▪ 2.3 percent increase in average headcount ▪ Space Cargo acquisition contributed 3.5 percentage points to Global Fo
Slide 14: All Other and Corporate Results
Q3 2019 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation in thousands Three Months Ended September 30 Net Revenues 2019 2018 % Change Robinson Fresh $26,382 $26,399 (0.1%) Managed Services $21,574 $20,080 7.4% Other Surface Transportation $15,900 $14,
Slide 15: Final Comments
Final Comments ▪ Expect current market conditions to continue ▪ Continued investments in technology ▪ Focused on long-term strategies of taking market share and improving operating leverage ‹#› 15
Slide 16: Appendix
Appendix 16
Slide 17: Transportation Results
Q3 2019 Transportation Results(1) in thousands Three Months Ended September 30 Nine Months Ended September 30 Transportation 2019 2018 % Change 2019 2018 % Change Total Revenues $3,608,346 $4,028,392 (10.4%) $10,751,890 $11,619,171 (7.5%) Total Net Revenues $608,367 $668,872 (9.0%) $1,925,657 $1,904
Slide 18: NAST Results
Q3 2019 NAST Results in thousands, except headcount Three Months Ended September 30 Nine Months Ended September 30 2019 2018 % Change 2019 2018 % Change Total Revenues $2,826,308 $3,224,906 (12.4%) $8,495,145 $9,296,510 (8.6%) Total Net Revenues $433,760 $499,463 (13.2%) $1,406,728 $1,397,571 0.7% N
Slide 19: Global Forwarding Results
Q3 2019 Global Forwarding Results in thousands, except headcount Three Months Ended September 30 Nine Months Ended September 30 2019 2018 % Change 2019 2018 % Change Total Revenues $597,695 $639,268 (6.5%) $1,727,745 $1,810,619 (4.6%) Total Net Revenues $135,815 $134,101 1.3% $404,987 $401,169 1.0%
Slide 20: All Other and Corporate Results
Q3 2019 All Other and Corporate Results in thousands, except headcount Three Months Ended September 30 Nine Months Ended September 30 2019 2018 % Change 2019 2018 % Change Total Revenues $432,129 $427,726 1.0% $1,293,292 $1,386,135 (6.7%) Total Net Revenues $63,856 $60,480 5.6% $195,732 $192,712 1.6
Slide 21: C.H. Robinson
C.H. ROBINSON
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