C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q3 2024 Earnings Presentation
25 slides from C.h. Robinson Worldwide's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Strategy & Innovation Officer Damon Lee, Chief Financial Officer Michael Castagnetto, President of NAST Chuck Ives, Senior Director of Investor Relations Q3 2024 Earnings Presentation October 30, 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 ■ Our Q3 results reflect continued improvement in our execution, as we continue to deploy our new operating model. We are raising the bar, even in a historically prolonged freight recession, with strong execution and disciplined volume growth across divisi
Slide 4: Robinson Operating Model
Robinson Operating Model 1 2 3 4 5 Clear Defined Scorecard: Continuous Continuously Long-Term Strategic Measurable and and Rigorous Improving. Strategy Workstreams Actionable Measurement Never and Goals Inputs and Action Stops. Plans • Enterprise • Enterprise • Regular • Accountable Strategy Map • D
Slide 5: Q3 Highlights
Q3 Highlights ■ Q3 NAST volume increased modestly Y/Y, which outpaced the market indices for the sixth consecutive quarter. Truckload AGP/ Q3 2024 load improved Y/Y and sequentially, driving NAST adjusted income from operations up 34% Y/Y ■ Q3 ocean and air volume grew Y/Y, ocean AGP/shipment $4.6B
Slide 6: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues is garnered from customers to whom we provide both surface transportation and global forwarding services.(1) Q3 2024 Adjusted Global Forwarding (GF) North American Surface Gross Profits(2) +38.1% ■ Ongoing conflict in the Red Sea has
Slide 7: NAST Q3'24 Results by Service
NAST Q3’24 Results by Service Adjusted Gross Profits(1) Third Quarter Highlights ($ in millions) ■ Truckload AGP per shipment increased 21.0% due to 3Q24 3Q23 %▲ disciplined pricing and procurement efforts, resulting in higher profit per shipment on transactional volume Truckload (“TL”) $260.0 $223.
Slide 8: 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 Q3 ■ 70% / 30% truckload contractual / transactional volume mix in Q3 Volume(2)(4) -3.5% Pri
Slide 9: 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 10: Global Forwarding Q3'24 Results by Service
Global Forwarding Q3’24 Results by Service Adjusted Gross Profits (1) Third Quarter Highlights ($ in millions) ■ Ongoing conflict in the Red Sea continues to cause 3Q24 3Q23 %▲ transit interruptions and vessel re-routing, which has put a strain on ocean capacity, resulted in port Ocean $163.3 $103.8
Slide 11: All Other & Corporate Q3'24 Results
All Other & Corporate Q3’24 Results Adjusted Gross Profits (1) Third Quarter Highlights ($ in millions) Robinson Fresh 3Q24 3Q23 %▲ ■ Increased AGP due to an increase in integrated supply Robinson Fresh $36.7 $31.1 18.1% chain solutions for retail and foodservice customers Managed Services Managed S
Slide 12: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 12
Slide 13: New Customer & Carrier Experiences Driving Digital Adoption
New Customer & Carrier Experiences Driving Digital Adoption ■ Improving customer and carrier outcomes with technology that supports our people and processes ■ Leveraging GenAI to capitalize on our data and information advantage ■ Concurrent workstreams are delivering process optimization by eliminat
Slide 14: Our Customer Promise
Our Customer Promise © C.H. Robinson Worldwide, Inc. All rights reserved. © C.H. Robinson Worldwide, Inc. All rights reserved. 14
Slide 15: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ $77 million of cash returned to shareholders in Q3 2024 ■ The cost and price of ocean transportation has risen, resulting in growth of net operating working capital and ■ Q3 2024 capital
Slide 16: Appendix
Appendix 16
Slide 17: Q3 2024 Transportation Results
(1) Q3 2024 Transportation Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 4,278,300 $ 4,029,407 6.2 % $ 12,482,818 $ 12,442,199 0.3 % Total Adjusted Gross Profits(2) $ 702,317 $ 607,447 15.6 % $ 1,981,456 $
Slide 18: Q3 2024 NAST Results
Q3 2024 NAST Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 2,934,617 $ 3,086,970 (4.9)% $ 8,924,839 $ 9,470,425 (5.8)% Total Adjusted Gross Profits(1) $ 420,664 $ 386,510 8.8 % $ 1,237,431 $ 1,213,697 2.0
Slide 19: Q3 2024 Global Forwarding Results
Q3 2024 Global Forwarding Results Three Months Ended September 30 Nine Months Ended September 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 1,141,190 $ 719,045 58.7 % $ 2,921,050 $ 2,288,890 27.6 % Total Adjusted Gross Profits(1) $ 234,636 $ 169,893 38.1 % $ 598,748 $ 527,
Slide 20: Q3 2024 All Other and Corporate Results
Q3 2024 All Other and Corporate Results Three Months Ended September 30 Nine Months Ended September 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 568,834 $ 535,015 6.3% $ 1,694,411 $ 1,615,241 4.9% Total Adjusted Gross Profits(1) $ 79,953 $ 78,446 1.9% $ 244,212 $ 245,245
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. Our adjusted operating margin - excluding restructuring and loss on divestiture is a similar non-GAAP financial measure to adjusted operating margin
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impa
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impa
Slide 25: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 25
C.H. Robinson Worldwide — Q3 2024 Earnings Presentation on 6ix