Form 8-K C H ROBINSON WORLDWIDE For: Oct 27

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: October 27, 2015

(Date of earliest event reported)

 

 

C.H. ROBINSON WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)

 

 

Commission File Number: 000-23189

 

Delaware		41-1883630
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

14701 Charlson Road, Eden Prairie, MN 55347

(Address of principal executive offices, including zip code)

(952) 937-8500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

---

Item 2.02. Results of Operations and Financial Condition.

The following information is being “furnished” in accordance with General Instruction B.2 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Furnished herewith as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein are the text of C.H. Robinson Worldwide, Inc.’s announcement regarding its financial results for the quarter ended September 30, 2015 and its earnings conference call slides.

Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits.

 

99.1		Press Release dated October 27, 2015 of C.H. Robinson Worldwide, Inc.
99.2		Earnings conference call slides dated October 28, 2015.

---

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: October 27, 2015

---

EXHIBIT INDEX

 

99.1		Press Release dated October 27, 2015 of C.H. Robinson Worldwide, Inc.
99.2		Earnings conference call slides dated October 28, 2015.

Exhibit 99.1

C.H. Robinson Worldwide, Inc.

14701 Charlson Road

Eden Prairie, Minnesota 55347

Andrew Clarke, Chief Financial Officer (952) 683-3474

Tim Gagnon, Director, Investor Relations (952) 683-5007

FOR IMMEDIATE RELEASE

C.H. ROBINSON REPORTS THIRD QUARTER RESULTS

MINNEAPOLIS, October 27, 2015 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended September 30, 2015. Summarized financial results are as follows (dollars in thousands, except per share data):

 

		Three months ended September 30,												Nine months ended September 30,
		2015				2014				% change				2015				2014				% change
Total revenues		$	3,419,253			$	3,467,362				-1.4	%		$	10,265,231			$	10,112,865				1.5	%
Net revenues:
Transportation
Truckload (1)		$	344,715			$	311,152				10.8	%		$	977,641			$	891,651				9.6	%
LTL			94,190				67,968				38.6	%			271,084				195,482				38.7	%
Intermodal			10,168				10,593				-4.0	%			32,219				30,396				6.0	%
Ocean			58,322				57,380				1.6	%			167,578				151,478				10.6	%
Air			20,248				20,520				-1.3	%			60,483				59,721				1.3	%
Customs			12,012				11,107				8.1	%			33,248				30,751				8.1	%
Other logistics services			20,436				19,043				7.3	%			61,331				54,816				11.9	%
Total transportation			560,091				497,763				12.5	%			1,603,584				1,414,295				13.4	%
Sourcing			28,484				29,801				-4.4	%			94,119				91,541				2.8	%
Total net revenues			588,575				527,564				11.6	%			1,697,703				1,505,836				12.7	%
Operating expenses			355,864				324,227				9.8	%			1,053,972				945,146				11.5	%
Operating income			232,711				203,337				14.4	%			643,731				560,690				14.8	%
Net income		$	139,432			$	124,981				11.6	%		$	383,116			$	336,764				13.8	%
Diluted EPS		$	0.96			$	0.85				12.9	%		$	2.63			$	2.28				15.4	%

 

(1)	Includes Payment Services revenues which were previously reported separately.

“We are proud of our results across our global business in the third quarter,” said John Wiehoff, CEO and Chairman. “We were able to continue to take market share in the third quarter while maintaining discipline and focus on our customer service and efficiency initiatives.”

Our truckload net revenues increased 10.8 percent in the third quarter of 2015 compared to the third quarter of 2014. Organic truckload net revenues increased approximately eight percent in the third quarter of 2015 compared to the third quarter of 2014. Our acquisition of Freightquote.com (“Freightquote”) on January 1, 2015 contributed approximately three percentage points to our truckload net revenue growth in the third quarter of 2015. Our North American truckload volumes increased approximately seven percent in the third quarter of 2015 compared to the same period of 2014. North American truckload volumes, excluding

 

(more)

---

C.H. Robinson Worldwide, Inc.

October 27, 2015

Page 2

 

Freightquote, increased approximately four percent in the third quarter of 2015 compared to the third quarter of 2014. Our truckload net revenue margin increased in the third quarter of 2015 compared to the third quarter of 2014, due primarily to lower transportation costs, including fuel. In North America, excluding the estimated impacts of the reduction in fuel costs, our average truckload rate per mile charged to our customers was flat in the third quarter of 2015 compared to the third quarter of 2014. In North America, our truckload transportation costs decreased approximately one percent, excluding the estimated impacts of the reduction in fuel costs.

Our less-than-truckload (“LTL”) net revenues increased 38.6 percent in the third quarter of 2015 compared to the third quarter of 2014. Freightquote contributed approximately 33 percentage points to our LTL net revenue growth in the third quarter of 2015. LTL volumes increased approximately 32 percent in the third quarter of 2015 compared to the third quarter of 2014. Organic LTL volume increased approximately 13 percent in the third quarter of 2015 compared to the third quarter of 2014. Net revenue margin increased in the third quarter of 2015 compared to the third quarter of 2014. This was primarily the result of a change in our freight mix with more small customers from the higher margin Freightquote business.

Our intermodal net revenues decreased 4.0 percent in the third quarter of 2015 compared to the third quarter of 2014, notwithstanding the increase in intermodal net revenues attributed to Freightquote. Conversion to truckload from intermodal negatively impacted intermodal volumes and net revenues in the third quarter of 2015.

Our ocean transportation net revenues increased 1.6 percent in the third quarter of 2015 compared to the third quarter of 2014. The increase in net revenues was primarily due to increased net revenue margin and a small volume increase.

Our air transportation net revenues decreased 1.3 percent in the third quarter of 2015 compared to the third quarter of 2014. The decrease was due to lower rates charged to our customers, partially offset by increased net revenue margin and an increase in volumes.

Our customs net revenues increased 8.1 percent in the third quarter of 2015 compared to the third quarter of 2014. The increase was due to increased transaction volumes.

Our other logistics services revenues, which includes managed services, warehousing, and small parcel, increased 7.3 percent in the third quarter of 2015 compared to the third quarter of 2014 primarily from growth in managed services. Freightquote contributed approximately two percentage points to our other logistics services net revenue growth in the third quarter of 2015.

Sourcing net revenues decreased 4.4 percent in the third quarter of 2015 compared to the third quarter of 2014. This decrease was primarily due to a decline in net revenue per case, offset partially by a case volume increase of 2.5 percent across a variety of commodities and services.

For the third quarter, operating expenses increased 9.8 percent to $355.9 million in 2015 from $324.2 million in 2014. Operating expenses as a percentage of net revenues decreased to 60.5 percent in the third quarter of 2015 from 61.5 percent in the third quarter of 2014.

For the third quarter, personnel expenses increased 8.0 percent to $264.1 million in 2015 from $244.6 million in 2014. This was primarily due to an average headcount increase of 13.1 percent compared to the third quarter of 2014. Our acquisition of Freightquote contributed approximately nine percentage points of the growth in average headcount during the third quarter of 2015. Total personnel expenses did not grow as fast as average headcount in the quarter as the expenses related to variable compensation plans were relatively flat compared to the third quarter of 2014.

 

(more)

---

C.H. Robinson Worldwide, Inc.

October 27, 2015

Page 3

 

For the third quarter, other selling, general, and administrative expenses increased 15.3 percent to $91.8 million in 2015 from $79.6 million in 2014. This increase was primarily due to our acquisition of Freightquote including amortization expense of approximately $1.9 million, and an increase in claims and travel expenses.

About C.H. Robinson

Founded in 1905, C.H. Robinson Worldwide, Inc. is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 46,000 active customers through a network of offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with approximately 66,000 transportation providers worldwide.

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call and we undertake no obligation to update the replay.

Conference Call Information:

C.H. Robinson Worldwide Third Quarter 2015 Earnings Conference Call

Wednesday, October 28, 2015 8:30 a.m. Eastern Time

The call will be limited to 60 minutes, including questions and answers. We invite call participants to submit questions in advance of the conference call and we will respond to as many of the questions as we can in the time allowed. To submit your question(s) in advance of the call, please email [email protected].

Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com.

To participate in the conference call by telephone, please call ten minutes early by dialing: 800-768-6490

International callers dial +1-785-830-7987

Callers should reference the conference ID, which is 359696

Webcast replay available through Investor Relations link at www.chrobinson.com

Telephone audio replay available until 11:30 a.m. Eastern Time on November 4, 2015: 888-203-1112;

passcode: 359696#

International callers dial +1-719-457-0820

 

(more)

---

C.H. Robinson Worldwide, Inc.

October 27, 2015

Page 4

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited, in thousands, except per share data)

 

		Three months ended September 30,								Nine months ended September 30,
		2015				2014				2015				2014
Revenues:
Transportation (1)		$	3,044,500			$	3,073,382			$	9,122,479			$	8,922,261
Sourcing			374,753				393,980				1,142,752				1,190,604
Total revenues			3,419,253				3,467,362				10,265,231				10,112,865
Costs and expenses:
Purchased transportation and related services (1)			2,484,409				2,575,619				7,518,895				7,507,966
Purchased products sourced for resale			346,269				364,179				1,048,633				1,099,063
Personnel expenses			264,077				244,621				783,220				703,904
Other selling, general, and administrative expenses			91,787				79,606				270,752				241,242
Total costs and expenses			3,186,542				3,264,025				9,621,500				9,552,175
Income from operations			232,711				203,337				643,731				560,690
Interest and other expense			(6,559	)			(6,204	)			(22,058	)			(18,587	)
Income before provision for income taxes			226,152				197,133				621,673				542,103
Provisions for income taxes			86,720				72,152				238,557				205,339
Net income		$	139,432			$	124,981			$	383,116			$	336,764
Net income per share (basic)		$	0.96			$	0.85			$	2.63			$	2.28
Net income per share (diluted)		$	0.96			$	0.85			$	2.63			$	2.28
Weighted average shares outstanding (basic)			144,578				146,646				145,423				147,661
Weighted average shares outstanding (diluted)			144,782				146,856				145,601				147,819

 

(1)	Includes Payment Services revenues and related costs which were previously reported separately.

 

(more)

---

C.H. Robinson Worldwide, Inc.

October 27, 2015

Page 5

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

 

		September 30, 2015				December 31, 2014
Assets
Current assets:
Cash and cash equivalents		$	143,087			$	128,940
Restricted cash			—				359,388
Receivables, net			1,651,794				1,571,591
Other current assets			61,330				45,540
Total current assets			1,856,211				2,105,459
Property and equipment, net			190,244				152,471
Intangible and other assets			1,266,110				956,408
Total assets		$	3,312,565			$	3,214,338
Liabilities and stockholders’ investment
Current liabilities:
Accounts payable and outstanding checks		$	860,192			$	795,255
Accrued compensation			124,011				125,624
Accrued income taxes			21,215				4,616
Other accrued expenses			45,841				45,365
Current portion of debt			530,000				605,000
Total current liabilities			1,581,259				1,575,860
Noncurrent income taxes payable			23,588				24,279
Deferred tax liabilities			76,144				66,961
Long-term debt			500,000				500,000
Other long term liabilities			211				223
Total liabilities			2,181,202				2,167,323
Total stockholders’ investment			1,131,363				1,047,015
Total liabilities and stockholders’ investment		$	3,312,565			$	3,214,338

 

(more)

---

C.H. Robinson Worldwide, Inc.

October 27, 2015

Page 6

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands, except operational data)

 

		Nine months ended September 30,
		2015				2014
Operating activities:
Net income		$	383,116			$	336,764
Stock-based compensation			43,512				33,561
Depreciation and amortization			49,513				43,442
Provision for doubtful accounts			11,975				15,917
Deferred income taxes			(8,356	)			901
Other			459				(1,280	)
Changes in operating elements, net of acquisitions:
Receivables			(39,051	)			(206,970	)
Prepaid expenses and other			(6,347	)			(4,081	)
Other non-current assets			124				270
Accounts payable and outstanding checks			23,037				67,125
Accrued compensation and profit-sharing contribution			(3,585	)			23,058
Accrued income taxes			17,774				2,690
Other accrued liabilities			(7,728	)			(6,075	)
Net cash provided by operating activities			464,443				305,322
Investing activities:
Purchases of property and equipment			(19,317	)			(19,291	)
Purchases and development of software			(13,494	)			(5,845	)
Restricted cash			359,388				—
Acquisitions, net of cash			(367,108	)			—
Other			535				428
Net cash used for investing activities			(39,996	)			(24,708	)
Financing activities:
Borrowings on line of credit			5,508,000				3,498,000
Repayments on line of credit			(5,583,000	)			(3,528,000	)
Net repurchases of common stock			(159,059	)			(127,106	)
Excess tax benefit on stock-based compensation			7,298				6,202
Cash dividends			(171,448	)			(157,590	)
Net cash used for financing activities			(398,209	)			(308,494	)
Effect of exchange rates on cash			(12,091	)			(6,451	)
Net change in cash and cash equivalents			14,147				(34,331	)
Cash and cash equivalents, beginning of period			128,940				162,047
Cash and cash equivalents, end of period		$	143,087			$	127,716
		As of September 30,
		2015				2014
Operational Data:
Employees			13,156				11,542

###

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wolfe Research Upgrades C.H. Robinson Worldwide (CHRW) to Peerperform
• Voxtur Engages ICP Securities Inc. for Automated Market Making Services
• Three From Lyons & Simmons Selected Among Best Lawyers in Dallas