C.h. Robinson Worldwide, Inc. · NASDAQ:CHRW
C.h. Robinson Worldwide — Q1 2020 Earnings Presentation
20 slides from C.h. Robinson Worldwide's earnings presentation, Apr 29, 2020
Slide 1: Earnings Conference Call – First Quarter 2020
Earnings Conference Call – First Quarter 2020 April 29, 2020 Bob Biesterfeld, CEO Mike Zechmeister, CFO Bob Houghton, VP of Corporate Finance
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 2020 Opening Remarks
Q1 2020 Opening Remarks ▪ Three key pillars as guideposts for our decision-making: ▪ Ensuring the health and safety of our employees ▪ Providing supply chain continuity for our customers and carriers ▪ Protecting the economic security of our people to the greatest extent possible ▪ High-single-digit
Slide 4: Results Q1 2020
Results Q1 2020 in thousands, except per share amounts and headcount Three Months Ended March 31 2020 2019 % Change Total Revenues $3,805,008 $3,751,210 1.4% Total Net Revenues $567,953 $678,800 (16.3%) Net Revenue Margin % 14.9% 18.1% (320 bps) Personnel Expenses $330,220 $340,098 (2.9%) Selling, G
Slide 5: Other Income Statement Items
Q1 2020 Other Income Statement Items ▪ Q1 effective tax rate of 17.1% vs. 22.0% in Q1 2019 ▪ Lower tax rate due to benefit from stock-based compensation ▪ Expect full-year 2020 effective tax rate to be on the lower end of the 22.0-24.0% range ▪ $2.9 million unfavorable impact from currency revaluati
Slide 6: Cash Flow and Capital Distribution
Q1 2020 Cash Flow and Capital Distribution Cash Flow from Operations Capital Distribution (77.2%) 4.0% $256.9M $146.4M $152.2M Share Repurchases Cash Dividends $58.5M Q1 2019 Q1 2020 Q1 2019 Q1 2020 ▪ $198.4 million decrease in cash flow ▪ $152.2 million returned to shareholders primarily driven by
Slide 7: Balance Sheet
Q1 2020 Balance Sheet in thousands March 31, March 31, % Change 2020 2019 Accounts Receivable, Net(1) $2,216,171 $2,223,487 (0.3%) Accounts Payable(2) $1,244,454 $1,186,658 4.9% Net Operating Working Capital(3) $971,717 $1,036,829 (6.3%) ▪ Total debt balance $1.41 billion ▪ $600 million senior unsec
Slide 8: NAST Truckload Cost and Price Change
25% NAST Truckload Cost and Price Change(1)(2) YOY % CHANGE IN COST AND PRICE 20% 15% 10% 5% 0% -5% YoY Price Change -10% YoY Cost Change -15% -20% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NAST Q1 Truckload ▪ 65% / 35% truckload contractual to transactional volume mix Volume(2) 7.5% ▪
Slide 9: NAST Results by Service Line
Q1 2020 NAST Results by Service Line Truckload, Less Than Truckload and Intermodal in thousands Three Months Ended March 31 ▪ Net revenue margin Net Revenues 2020 2019 % Change compression in truckload Truckload $243,686 $359,031 (32.1%) and LTL LTL $112,330 $114,918 (2.3%) Intermodal $7,312 $5,976
Slide 10: NAST Operating Income
Q1 2020 NAST Operating Income Operating Income Operating Margin % (53.4%) (1,700 bps) $211.3M 43.4% 26.4% $98.5M Q1 2019 Q1 2020 Q1 2019 Q1 2020 ▪ Decreased net revenues ▪ Average headcount decreased 5.2 percent ▪ Prime Distribution acquisition contributed 2.0 percentage points to NAST headcount gro
Slide 11: Global Forwarding Results by Service Line
Q1 2020 Global Forwarding Results by Service Line Ocean, Air and Customs in thousands Three Months Ended March 31 ▪ Ocean and customs net Net Revenues 2020 2019 % Change revenue declines due to Ocean $69,810 $71,457 (2.3%) lower pricing and volume Air $26,877 $26,136 2.8% ▪ Air net revenue increase
Slide 12: Global Forwarding Operating Income
Q1 2020 Global Forwarding Operating Income Operating Income Operating Margin % (15.8%) (190 bps) $14.2M 11.2% $12.0M 9.3% Q1 2019 Q1 2020 Q1 2019 Q1 2020 ▪ Modest increase in net revenues ▪ 2.5 percent increase in average headcount ▪ Space Cargo acquisition contributed 2.0 percentage points to Globa
Slide 13: All Other and Corporate Results
Q1 2020 All Other and Corporate Results Robinson Fresh, Managed Services and Other Surface Transportation in thousands Three Months Ended March 31 Net Revenues 2020 2019 % Change Robinson Fresh $27,458 $28,658 (4.2%) Managed Services $22,527 $20,312 10.9% Other Surface $16,876 $16,044 5.2% Transport
Slide 14: Final Comments
Final Comments ▪ Continue to monitor impacts of COVID-19 ▪ Balancing cost reductions with continued investment in technology ▪ Committed to our vital role in the global supply chain, especially in this time of crisis 14
Slide 15: Appendix
Appendix
Slide 16: Transportation Results
Q1 2020 Transportation Results(1) in thousands Three Months Ended March 31 Transportation 2020 2019 % Change Total Revenues $3,542,118 $3,504,932 1.1% Total Net Revenues $542,005 $651,676 (16.8%) Net Revenue Margin % 15.3% 18.6% (330 bps) Transportation Net 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 17: NAST Results
Q1 2020 NAST Results in thousands, except headcount Three Months Ended March 31 2020 2019 % Change Total Revenues $2,823,745 $2,796,784 1.0% Total Net Revenues $372,778 $486,550 (23.4%) Net Revenue Margin % 13.2% 17.4% (420 bps) Income from Operations $98,526 $211,283 (53.4%) Operating Margin % 26.4
Slide 18: Global Forwarding Results
Q1 2020 Global Forwarding Results in thousands, except headcount Three Months Ended March 31 2020 2019 % Change Total Revenues $530,384 $537,567 (1.3%) Total Net Revenues $128,314 $127,236 0.8% Net Revenue Margin % 24.2% 23.7% 50 bps Income from Operations $11,959 $14,203 (15.8%) Operating Margin %
Slide 19: All Other and Corporate Results
Q1 2020 All Other and Corporate Results in thousands, except headcount Three Months Ended March 31 2020 2019 % Change Total Revenues $450,879 $416,859 8.2% Total Net Revenues $66,861 $65,014 2.8% Income from Operations ($1,045) ($936) NM Depreciation and Amortization $9,990 $9,375 6.6% Total Assets
Slide 20: Slide 20
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