C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2020 Earnings Presentation
23 slides from C.h. Robinson Worldwide's earnings presentation, Jan 27, 2021
Slide 1: Q4 2020 Earnings Presentation
Bob Biesterfeld, CEO Mike Zechmeister, CFO Chuck Ives, Director of IR Q4 2020 Earnings Presentation January 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: Q4 2020 Opening Remarks
Q4 2020 Opening Remarks ▪ 51% improvement in Operating Income ▪ 48% improvement in Dilutive EPS ▪ Global forwarding business sustaining its strong execution ▪ Repricing our contractual truckload business to reflect the changing market conditions ▪ Capturing more spot market opportunities ▪ Technolog
Slide 4: Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies
Technology Advancements & Transformation Efforts Providing Meaningful Efficiencies
Slide 5: Strategies Creating Shareholder Value
Strategies Creating Shareholder Value • Creating better outcomes for our customers and carriers • Utilizing our unmatched combination of experience, scale and information advantage • Leveraging our broad service portfolio • Focusing on profitable market share growth • Delivering industry leading tec
Slide 6: Results Q4 2020
Results Q4 2020 Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands, except per share amounts 2020 2019 % CHANGE 2020 2019 % CHANGE Total Revenues $4,549,452 $3,793,326 19.9 % $16,207,106 $15,309,508 5.9 % Total Adjusted Gross Profits(1) $640,578 $578,863 10.7 % $2,412,257
Slide 7: Other Income Statement Items
Q4 2020 Other Income Statement Items Q4 effective tax rate of $1.1 million favorable Interest expense declined 24.1% vs. 21.4% in Q4 impact from currency $0.1 million versus Q4 2019 revaluation, versus a $0.9 2019 due to a lower million unfavorable impact average debt balance Increase was primarily
Slide 8: Cash Flow and Capital Distribution
Q4 2020 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution Share (23.4%) (17.8%) Repurchases $137.3M Cash $211.6M $112.8M Dividends $162.1M Q4 2019 Q4 2020 Q4 2019 Q4 2020 • $49.5 million decrease in cash flow driven by • $112.8 million returned to shareholders an incr
Slide 9: Balance Sheet
Q4 2020 Balance Sheet $ in thousands December 31, 2020 December 31, 2019 % CHANGE Accounts Receivable, Net(1) $2,646,753 $2,107,255 25.6% (2) Accounts Payable $1,436,938 $1,164,029 23.4% (3) Net Operating Working Capital $1,209,815 $943,226 28.3% • Increases in accounts receivable and accounts payab
Slide 10: Truckload Price and Cost Change
Truckload Price and Cost Change(1)(2)(3) 35% YoY % Change in Price and Cost 30% YoY Price Change 25% 20% YoY Cost Change 15% 10% 5% 0% -5% -10% -15% -20% 2013 2014 2015 2016 2017 2018 2019 2020 Truckload Q4 • 55% / 45% truckload contractual to transactional volume mix compared to 70% / Volume(2)(4)
Slide 11: NAST Results by Service Line
Q4 2020 NAST Results by Service Line Truckload and Less Than Truckload ("LTL") Three Months Ended December 31 Adjusted Gross Profits ($ in thousands) 2020 2019 % Change • Adjusted gross profit margin compression Truckload $258,577 $264,191 (2.1)% in truckload due to rising cost environment LTL $116,
Slide 12: NAST Operating Income
Q4 2020 NAST Operating Income Operating Income Adjusted Operating Margin % 15.3% 450 bps 37.9% $150.6M 33.4% $130.5M Q4 2019 Q4 2020 Q4 2019 Q4 2020 • Increase in adjusted gross profits due to contributions from Prime Distribution acquisition • Operating expenses reduced by 5.3% • Average headcount
Slide 13: Global Forwarding Results by Service Line
Q4 2020 Global Forwarding Results by Service Line Ocean, Air and Customs Three Months Ended December 31 • Ocean and air adjusted gross profit Adjusted Gross Profits ($ in thousands) 2020 2019 % Change increased due to higher pricing and market share gains Ocean $112,446 $73,445 53.1 % Air $33,802 $2
Slide 14: Global Forwarding Operating Income
Q4 2020 Global Forwarding Operating Income Operating Income Adjusted Operating Margin % $58.5M 2,080 bps 289.1% 32.5% 11.7% $15.0M Q4 2019 Q4 2020 Q4 2019 Q4 2020 • Improved operating leverage from • 39.6% increase in adjusted gross profits ◦ Higher pricing in ocean and air, higher ocean volumes and
Slide 15: All Other and Corporate Results
Q4 2020 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation Three Months Ended December 31 Adjusted Gross Profits ($ in thousands) 2020 2019 % Change Robinson Fresh $23,591 $22,907 3.0% Managed Services $24,738 $21,380 15.7% Other Surface Transportation
Slide 16: Appendix
-H. ROBINSON Appendix
Slide 17: Transportation Results
Q4 2020 Transportation Results(1) Three Months Ended December 31 Twelve Months Ended December 31 Transportation ($ in thousands) 2020 2019 % Change 2020 2019 % Change Total Revenues $4,311,852 $3,570,405 20.8% $15,147,562 $14,322,295 5.8% Total Adjusted Gross Profits(2) $618,598 $557,205 11.0% $2,31
Slide 18: NAST Results
Q4 2020 NAST Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $3,089,674 $2,788,547 10.8% $11,312,553 $11,283,692 0.3% Total Adjusted Gross Profits(1) $396,814 $390,641 1.6% $1,517,091 $1,797,369 (15.6%) Adjust
Slide 19: Global Forwarding Results
Q4 2020 Global Forwarding Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $1,030,364 $600,168 71.7% $3,100,525 $2,327,913 33.2% (1) Total Adjusted Gross Profits $180,057 $128,989 39.6% $628,988 $533,976 17.8%
Slide 20: All Other and Corporate Results
Q4 2020 All Other and Corporate Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2020 2019 % Change 2020 2019 % Change Total Revenues $429,414 $404,611 6.1% $1,794,028 $1,697,903 5.7% Total Adjusted Gross Profits(1) $63,707 $59,233 7.6% $266,178 $254,965 4.4% Inc
Slide 21: 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 22: 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 23: Thank you
H. ROBINSON le Thank you
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