C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q4 2023 Earnings Presentation
24 slides from C.h. Robinson Worldwide's earnings presentation, Jan 31, 2024
Slide 1: Q4 2023 Earnings Presentation
Dave Bozeman, President & CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations Q4 2023 Earnings Presentation January 31, 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-loo
Slide 3: Thoughts from President & CEO, Dave Bozeman
Thoughts from President & CEO, Dave Bozeman ■ My initial diagnosis of the company is complete, we're charting our path forward, and we're taking action on the items below to unlock the power of our portfolio. ■ Our structural cost base grew too much during the pandemic. We made significant progress
Slide 4: Q4 Highlights
Q4 Highlights ■ Experienced normal seasonal declines in shipments ■ Global freight markets continue to be impacted by weak demand and excess capacity, resulting in a loose market and suppressed Q4 2023 transportation rates $4.2B $619M ■ Providing superior service to our customers and carriers, as re
Slide 5: Complementary Global Suite of Services
Complementary Global Suite of Services Over half of total revenues came from customers to whom we provide both surface transportation and global forwarding services.(1) Q4 2023 Adjusted Global Forwarding (GF) North American Surface Gross Profits(2) -14.0% ■ Reduced global demand and excess capacity
Slide 6: NAST Q4'23 Results by Service
NAST Q4’23 Results by Service Adjusted Gross Profits(1) ($ in millions) 4Q23 4Q22 %▲ ■ Truckload volume down 1.5% year-over-year(2) ■ Truckload AGP per shipment decreased 29.5% due Truckload (“TL”) $223.1 $322.3 (30.8)% to declining profit per shipment on contractual volume(2) Less than Truckload (“
Slide 7: YoY % Change in Price and Cost per Mile
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 YoY Price Change YoY Cost Change Truckload Q4 ■ 65% / 35% truckload contractual / transactional volume mix in Q4 Volume(2)(4) -1.5% Price/Mi
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 Q4'23 Results by Service
Global Forwarding Q4’23 Results by Service Adjusted Gross Profits (1) ($ in millions) ■ Reduced global demand and excess capacity 4Q23 4Q22 %▲ impacted ocean and air pricing and volumes on a year-over-year basis Ocean $99.5 $120.2 (17.2)% ■ Ocean AGP decreased due to a 20.5% decrease in Air $27.9 $3
Slide 10: All Other & Corporate Q4'23 Results
All Other & Corporate Q4’23 Results Adjusted Gross Profits (1) ($ in millions) Robinson Fresh 4Q23 4Q22 %▲ ■ Increased AGP due to a 4.5%(2) increase in case volume Robinson Fresh $31.1 $28.5 9.2% and integrated supply chain solutions for foodservice and wholesale customers Managed Services $28.8 $29
Slide 11: Streamlining & Automating Processes to Drive Profitable Growth
Streamlining & Automating Processes to Drive Profitable Growth 11
Slide 12: New Carrier & Customer Experiences Driving Digital Adoption
New Carrier & Customer Experiences Driving Digital Adoption ■ Improving customer outcomes with technology that supports our people and processes ■ Q4 NAST shipments per person per day increased 17% year-over- year vs our goal of 15% ■ Q4 Global Forwarding shipments per person per month increased 20%
Slide 13: Pillars of Our Customer Promise
Pillars of Our Customer Promise Best-in-class solutions delivered through a global network of experts you can rely on ■ Diversified, global suite of servicesTM - we can reliably meet all logistics services needs today and in the future ■ An information advantage driving smarter solutionsTM and bette
Slide 14: Capital Allocation Priorities: Balanced and Opportunistic
Capital Allocation Priorities: Balanced and Opportunistic Cash Flow from Operations & Capital Distribution ($M) ■ $74 million of cash returned to shareholders in Q4 2023 ■ The decline in the cost and price of purchased transportation (inclusive of fuel surcharges) has slowed ■ Q4 2023 capital distri
Slide 15: Appendix
Appendix 15
Slide 16: Q4 2023 Transportation Results
(1) Q4 2023 Transportation Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $ 3,930,461 $ 4,798,027 (18.1)% $ 16,372,660 $ 23,516,384 (30.4)% Total Adjusted Gross Profits(2) $ 590,988 $ 741,951 (20.3)% $ 2,486,
Slide 17: Q4 2023 NAST Results
Q4 2023 NAST Results Three Months Ended December 31 Twelve Months Ended December 31, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $ 3,000,650 $ 3,563,071 (15.8)% $ 12,471,075 $ 15,827,467 (21.2)% Total Adjusted Gross Profits(1) $ 380,157 $ 502,266 (24.3)% $ 1,593,854 $ 2,196,7
Slide 18: Q4 2023 Global Forwarding Results
Q4 2023 Global Forwarding Results Three Months Ended December 31 Twelve Months Ended December 31 $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $ 708,814 $ 1,013,306 (30.0)% $ 2,997,704 $ 6,812,008 (56.0)% Total Adjusted Gross Profits(1) $ 162,322 $ 188,749 (14.0)% $ 689,365 $ 1
Slide 19: Q4 2023 All Other and Corporate Results
Q4 2023 All Other and Corporate Results Three Months Ended December 31 Twelve Months Ended December 31, $ in thousands 2023 2022 % Change 2023 2022 % Change Total Revenues $ 512,423 $ 490,444 4.5% $ 2,127,664 $ 2,057,150 3.4% Total Adjusted Gross Profits(1) $ 76,144 $ 77,159 (1.3%) $ 321,389 $ 313,0
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 and gain on sale of property is a similar non-GAAP financial measure as adjusted operating m
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and gain on sale of property, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and gain on sale of property, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share
Slide 24: Thank you
INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com Thank you 24
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