C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q1 2019 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, May 1, 2019
Slide 1: Earnings Conference Call – First Quarter 2019
Earnings Conference Call – First Quarter 2019 May 1, 2019 John Wiehoff, Chairman & CEO Robert Biesterfeld, COO Scott Hagen, Corporate Controller and Interim CFO Robert 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: Q1 2019 – Key Themes
Q1 2019 – Key Themes ▪ Strong Q1 financial results ▪ Price and cost declines in most service lines ▪ Successfully adapting to changing market conditions ▪ Strength of our business model 3 3
Slide 4: Results Q1 2019
Results Q1 2019 in thousands, except per share amounts and headcount Three Months Ended March 31 2019 2018 % Change Total Revenues $3,751,210 $3,925,327 (4.4%) Total Net Revenues $678,800 $625,925 8.4% Net Revenue Margin % 18.1% 15.9% 220 bps Personnel Expenses $340,098 $328,297 3.6% Selling, Genera
Slide 5: Other Income Statement Items
Q1 2019 Other Income Statement Items ▪ Q1 effective tax rate of 22.0% vs. 21.3% last year ▪ $5 million unfavorable impact from currency revaluation ▪ Interest expense increase due to an increase in interest rates ▪ Weighted average diluted shares outstanding down 1.6 percent ‹#› 5
Slide 6: Cash Flow and Capital Distribution
Q1 2019 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution + 28.1% + 8.7% $256.9M $146.4M Share $134.7M Repurchases $200.6M Cash Dividends ▪ $56.3 million increase in cash flow ▪ $146.4 million of net income returned driven by improved working capital to shareholders p
Slide 7: Balance Sheet
Q1 2019 Balance Sheet in thousands March 31, December 31, 2019 2018 % Change Accounts Receivable, Net(1) $2,223,487 $2,322,073 (4.2%) Accounts Payable(2) $1,186,658 $1,182,927 0.3% Net Operating Working Capital(3) $1,036,829 $1,139,146 (9.0%) ▪ Total debt balance $1.34 billion ▪ $600 million senior
Slide 8: Second Quarter 2019 Trends – April
Second Quarter 2019 Trends – April ▪ April to date total company net revenue per business day has increased approximately 5 percent when compared to April 2018 ▪ Truckload volume per business day has decreased approximately 4 percent on a year-over-year basis in April 8 8
Slide 9: NAST Truckload Cost and Price Change
NAST Truckload Cost and Price Change(1) YoY Price Change YoY Cost Change NAST Truckload Q1 ▪ NAST Truckload cost and price change chart represents truckload shipments in North America. Volume 0.5% Pricing(1)(2) (5.5%) ▪ Includes the impact of the truckload service line previously Cost(1)(2) reported
Slide 10: NAST Truckload Cost and Price Per Mile
NAST Truckload Cost and Price Per Mile(1) Price per Mile Cost per Mile ▪ NAST Truckload cost and price per mile chart represents all truckload shipments in North America ▪ Continued price movements in response to changes in marketplace conditions (1) Cost and price per mile exclude the estimated imp
Slide 11: NAST Results by Service Line
Q1 2019 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended March 31 ▪ Year-over-year price Net Revenues 2019 2018 % Change declines in truckload and Truckload $359,031 $312,952 14.7% LTL LTL $114,918 $110,916 3.6% Intermodal $5,976 $6,217 (3.9%
Slide 12: NAST Operating Income
Q1 2019 NAST Operating Income Q1 Operating Income Q1 Operating Margin % + 17.6% + 240 bps $211.3M 43.4% $179.6M 41.0% ▪ Increased net revenues ▪ Headcount increased 1.7 percent ▪ Continued investments in technology ▪ Four consecutive quarters of year-over-year operating margin expansion ‹#› 12
Slide 13: Global Forwarding Results by Service Line
Q1 2019 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended March 31 Net Revenues 2019 2018 % Change ▪ Ocean net revenue growth due to margin expansion Ocean $71,457 $68,694 4.0% Air $26,136 $26,037 0.4% Customs $21,877 $20,655 5.9% ▪ Air net revenue grow
Slide 14: Global Forwarding Operating Income
Q1 2019 Global Forwarding Operating Income Q1 Operating Income Q1 Operating Margin % + 72.8% + 450 bps $14.2M 11.2% $8.2M 6.7% ▪ Increased net revenues ▪ Improved employee productivity ▪ 1.3 percent decrease in average headcount ‹#› 14
Slide 15: All Other and Corporate Results
Q1 2019 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation in thousands Three Months Ended March 31 Net Revenues 2019 2018 % Change Robinson Fresh $28,658 $30,237 (5.2%) Managed Services $20,312 $18,317 10.9% Other Surface Transportation $16,044 $15,932
Slide 16: Our Areas of Focus
Our Areas of Focus ▪ Grow market share ▪ Automate core processes ▪ Improve operating leverage Long-Term Growth Targets(1) Net Revenues 5 - 10% Operating Income Greater than net revenue growth Earnings Per Share 10%+ (1) Long-term growth targets represent an over time perspective and do not necessari
Slide 17: Final Comments
Final Comments ▪ We add value by helping our customers understand and navigate the marketplace ▪ Our people, processes and technology will allow us to continue to win in the marketplace ▪ John Wiehoff retiring as CEO on May 9, will remain Chairman ▪ Bob Biesterfeld to succeed Wiehoff as CEO ‹#› 17
Slide 18: Appendix
Appendix 18
Slide 19: Transportation Results
Q1 2019 Transportation Results(1) in thousands Three Months Ended March 31 Transportation 2019 2018 % Change Total Revenues $3,504,932 $3,637,640 (3.6%) Total Net Revenues $651,676 $596,038 9.3% Net Revenue Margin % 18.6% 16.4% 220 bps Transportation Net 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 20: NAST Results
Q1 2019 NAST Results in thousands, except headcount Three Months Ended March 31 2019 2018 % Change Total Revenues $2,796,784 $2,908,419 (3.8%) Total Net Revenues $486,550 $438,402 11.0% Net Revenue Margin % 17.4% 15.1% 230 bps Income from Operations $211,283 $179,637 17.6% Operating Margin % 43.4% 4
Slide 21: Global Forwarding Results
Q1 2019 Global Forwarding Results in thousands, except headcount Three Months Ended March 31 2019 2018 % Change Total Revenues $537,567 $553,754 (2.9%) Total Net Revenues $127,236 $123,037 3.4% Net Revenue Margin % 23.7% 22.2% 150 bps Income from Operations $14,203 $8,221 72.8% Operating Margin % 11
Slide 22: All Other and Corporate Results
Q1 2019 All Other and Corporate Results in thousands, except headcount Three Months Ended March 31 2019 2018 % Change Total Revenues $416,859 $463,154 (10.0%) Total Net Revenues $65,014 $64,486 0.8% Income from Operations ($936) $3,727 NM Depreciation and Amortization $9,375 $9,001 4.2% Total Assets
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