C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q1 2024 Earnings Presentation
24 slides from C.h. Robinson Worldwide's earnings presentation, May 1, 2024
Slide 1: Q1 2024 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q1 2024 Earnings Presentation May 1, 2024 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- lo
Slide 3: Thoughts from President & CEO, Dave Bozeman
Thoughts from President & CEO, Dave Bozeman ■ In Q1, we began implementing a new operating model at the enterprise, divisional and shared service levels, which is evolving our execution and accountability. ■ New way of operating is starting to enable greater discipline, transparency, urgency and con
Slide 4: Q1 Highlights
Q1 Highlights ■ Global freight markets continue to be impacted by excess capacity, resulting in a loose market and suppressed transportation rates. Q1 2024 ■ Q1 truckload volume declined 0.5% Y/Y, which outpaced the market indices, and truckload AGP/load improved as we moved through the quarter. $4.
Slide 5: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues came from customers to whom we provide both surface transportation and global forwarding services.(1) Q1 2024 Adjusted Global Forwarding (GF) North American Surface Gross Profits(2) 1.2% ■ Ongoing conflict in the Red Sea has reduced
Slide 6: NAST Q1'24 Results by Service
NAST Q1’24 Results by Service Adjusted Gross Profits(1) ($ in millions) 1Q24 1Q23 %▲ ■ Truckload volume down 0.5% year-over-year(2) ■ Truckload AGP per shipment decreased 9.5% due to Truckload (“TL”) $235.7 $261.5 (9.9)% declining profit per shipment on contractual volume(2) Less than Truckload (“LT
Slide 7: Truckload Price and Cost Change
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 2024 YoY Price Change YoY Cost Change Truckload Q1 ■ 65% / 35% truckload contractual / transactional volume mix in Q1 Volume(2)(4) -0.5% Pri
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 Q1'24 Results by Service
Global Forwarding Q1’24 Results by Service Adjusted Gross Profits (1) ($ in millions) ■ Ongoing conflict in the Red Sea is causing transit 1Q24 1Q23 %▲ interruptions and vessel re-routing, which has reduced ocean capacity and driven rates higher on a Ocean $112.9 $110.1 2.5% sequential basis Air $30
Slide 10: All Other & Corporate Q1'24 Results
All Other & Corporate Q1’24 Results Adjusted Gross Profits (1) ($ in millions) Robinson Fresh 1Q24 1Q23 %▲ ■ Increased AGP due to a 1.5%(2) increase in case volume Robinson Fresh $33.7 $31.1 8.3% and integrated supply chain solutions for retail customers Managed Services Managed Services $28.9 $29.0
Slide 11: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 11
Slide 12: New Customer & Carrier Experiences Driving Digital Adoption
New Customer & Carrier Experiences Driving Digital Adoption ■ Improving customer and carrier outcomes with technology that supports our people and processes ■ Leveraging GenAI to capitalize on our data and information advantage ■ Concurrent workstreams are delivering process optimization by eliminat
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ $91 million of cash returned to shareholders in Q1 2024 ■ The decline in the cost and price of purchased transportation (inclusive of fuel surcharges) has slowed ■ Q1 2024 capital distri
Slide 15: Appendix
Appendix 15
Slide 16: Q1 2024 Transportation Results
(1) Q1 2024 Transportation Results Three Months Ended March 31 $ in thousands 2024 2023 % Change Total Revenues $ 4,082,588 $ 4,327,965 (5.7)% Total Adjusted Gross Profits(2) $ 627,592 $ 656,934 (4.5)% Adjusted Gross Profit Margin % 15.4% 15.2% 20 bps Transportation Adjusted Gross 2015 2016 2017 201
Slide 17: Q1 2024 NAST Results
Q1 2024 NAST Results Three Months Ended March 31 $ in thousands 2024 2023 % Change Total Revenues $ 3,000,313 $ 3,304,187 (9.2)% Total Adjusted Gross Profits(1) $ 397,110 $ 426,655 (6.9)% Adjusted Gross Profit Margin % 13.2% 12.9% 30 bps Income from Operations(2) $ 108,895 $ 134,022 (18.7)% Adjusted
Slide 18: Q1 2024 Global Forwarding Results
Q1 2024 Global Forwarding Results Three Months Ended March 31 $ in thousands 2024 2023 % Change Total Revenues $ 858,637 $ 789,978 8.7 % Total Adjusted Gross Profits(1) $ 180,045 $ 177,919 1.2 % Adjusted Gross Profit Margin % 21.0% 22.5% (150 bps) Income from Operations(2) $ 31,552 $ 30,116 4.8 % Ad
Slide 19: Q1 2024 All Other and Corporate Results
Q1 2024 All Other and Corporate Results Three Months Ended March 31 $ in thousands 2024 2023 % Change Total Revenues $ 553,361 $ 517,505 6.9% Total Adjusted Gross Profits(1) $ 80,574 $ 81,066 (0.6%) Income (loss) from Operations(2) $ (13,314) $ (3,105) N/M Depreciation and Amortization $ 15,684 $ 13
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. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure to adjusted operating margin, but also excludes the
Slide 22: 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 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: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 24
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