C.H. Robinson Reports 2023 Fourth Quarter Results
- None.
- None.
Insights
The reported financial results by C.H. Robinson highlight significant declines across various key metrics, including gross profits, income from operations and diluted earnings per share (EPS). The substantial decrease in these figures, particularly the 34.5% drop in income from operations and the 67.5% reduction in diluted EPS, suggests a challenging quarter for the company. The contraction in cash generated by operations is also noteworthy, given its potential impact on the company's liquidity and future investment capabilities.
From an investment perspective, these results may influence market sentiment and could potentially lead to a reevaluation of the company's stock. The decline in profitability metrics is a red flag for investors, indicating the need for operational adjustments. The reported improvement in productivity, such as the 17% improvement in NAST shipments per person per day, may mitigate concerns to some extent by demonstrating the company's efforts to enhance efficiency.
Examining the broader logistics and freight market, the performance of C.H. Robinson reflects industry-wide pressures such as excess carrier capacity and weak freight demand. The mention of an 'elongated market trough' indicates a prolonged period of suboptimal market conditions that have impacted the company's financial performance. The strategic shift towards more truckload volume in the spot market suggests an attempt to adapt to the competitive environment, yet the decline in profit per load in December underscores the volatility and challenges within the sector.
Investors and stakeholders should be aware that the logistics industry is highly sensitive to macroeconomic factors, including cyclical and geopolitical events. The company's focus on productivity and cost optimization is a critical strategy in such an environment. However, the efficacy of these measures will only be proven over time and in the context of a potential market rebound.
The financial results of C.H. Robinson may be indicative of broader economic trends, such as consumer demand fluctuations and the impact of geopolitical tensions on global trade. The company's performance could serve as a bellwether for the health of the global economy, particularly in the freight and logistics sector. The decline in adjusted operating margin by 1,550 basis points to 19.8% is a significant contraction, highlighting the company's reduced profitability in a challenging economic climate.
It is essential to monitor the company's future quarters to discern whether these results are symptomatic of a temporary downturn or signal a more systemic issue within the industry. The CEO's reference to an eventual freight market rebound suggests anticipation of cyclical recovery, which could present opportunities for growth and improved performance. However, the timing and strength of such a rebound remain uncertain and are contingent on numerous external factors.
Fourth Quarter Key Metrics:
-
Gross profits decreased
20.0% to$609.3 million -
Income from operations decreased
34.5% to$107.4 million -
Adjusted operating margin(1) decreased 400 basis points to
17.4% -
Diluted earnings per share (EPS) decreased
67.5% to$0.26 -
Adjusted EPS(1) decreased
52.8% to$0.50 -
Cash generated by operations decreased by
$726.1 million $47.3 million
Full-Year Key Metrics:
-
Gross profits decreased
27.9% to$2.6 billion -
Income from operations decreased
59.4% to$514.6 million -
Adjusted operating margin(1) decreased 1,550 basis points to
19.8% -
Diluted EPS decreased
63.2% to$2.72 -
Adjusted EPS(1) decreased
56.2% to$3.30 -
Cash generated by operations decreased by
$918.2 million $731.9 million
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.
"Our fourth quarter results did not meet our expectations as we continue to battle through a poor demand and pricing environment. Weak freight demand in an elongated market trough, combined with excess carrier capacity, continued to result in a very competitive market," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman. "With this environment in play, we targeted more truckload volume in the spot market, where we could capture more profit due to seasonal market tension. This led to a sequential improvement in our overall truckload profit per load in October and November. However, in December, our profit per load declined as the cost of purchased transportation moved seasonally higher. In Global Forwarding, we increased our ocean shipments on a year-over-year basis, but they were down sequentially, as they typically are in a fourth quarter.
"As the global freight market fluctuates due to seasonal, cyclical and geopolitical factors, we remain focused on what we can control, by providing superior service to our customers and carriers, streamlining our processes by removing waste and manual touches, and delivering tools that enable our customer and carrier-facing employees to allocate their time to relationship building, value-added solutioning and exception management. Our
"We share the sentiment of some of our peers, in that we’re happy to say goodbye to 2023. And although 2024 still presents some of the same challenges and headwinds, I’m excited about the work that we’re doing to reinvigorate Robinson’s winning culture and unlock the power of our portfolio. I continue to see an opportunity for the company to reach its full potential and create more shareholder value by improving our value proposition, increasing our market share, accelerating growth, further reducing our structural costs, and improving our efficiency, operating margins and profitability. I’m confident that together we will win for our customers, carriers, employees and shareholders, and I’m incredibly excited about our future," Bozeman concluded.
Summary of Fourth Quarter of 2023 Results Compared to the Fourth Quarter of 2022
-
Total revenues decreased
16.7% to$4.2 billion -
Gross profits decreased
20.0% to$609.3 million 19.5% to$618.6 million -
Operating expenses decreased
15.4% to$511.2 million 15.3% to$361.8 million 13.3% . Other selling, general and administrative (“SG&A”)expenses decreased15.5% to$149.4 million -
Income from operations totaled
$107.4 million 34.5% due to the decrease in adjusted gross profits, partially offset by the decline in operating expenses. Adjusted operating margin(1) of17.4% declined 400 basis points. -
Interest and other income/expense, net totaled
$38.1 million $21.6 million $3.1 million $18.5 million -
The effective tax rate in the quarter was
55.3% , compared to20.9% in the fourth quarter last year. The higher rate in the fourth quarter of this year was driven by one-time impacts of a settlement with the IRS related to tax incentives for domestic investments in the years 2014 through 2017 and the tax effects of the divestiture of ourArgentina operations, partially offset by lower income before taxes. -
Net income totaled
$31.0 million 67.8% from a year ago. Diluted EPS of$0.26 67.5% . Adjusted EPS(1) of$0.50 52.8% .
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.
Summary of 2023 Year-to-Date Results Compared to 2022
-
Total revenues decreased
28.7% to$17.6 billion -
Gross profits decreased
27.9% to$2.6 billion 27.5% to$2.6 billion -
Operating expenses decreased
10.2% to$2.1 billion 14.9% to$1.5 billion 8.9% . Other SG&A expenses increased3.5% to$624.3 million $25.3 million Kansas City regional center recorded in the prior year, partially offset by decreased purchased and contracted services in the current year. -
Income from operations totaled
$514.6 million 59.4% from last year, due to the decrease in adjusted gross profits, partially offset by the decline in operating expenses. Adjusted operating margin(1) of19.8% decreased 1,550 basis points. -
Interest and other income/expense, net totaled
$105.4 million $90.2 million $13.1 million $24.4 million -
The effective tax rate for the full year ended December 31, 2023 was
20.5% compared to19.4% in the year-ago period. The higher rate in the current period was driven by one-time impacts of a settlement with the IRS related to tax incentives for domestic investments in the years 2014 through 2017, the tax effects of the divestiture of ourArgentina operations, and lowerU.S. tax credits and incentives, partially offset by lower income before taxes. -
Net income totaled
$325.1 million 65.4% from a year ago. Diluted EPS of$2.72 63.2% . Adjusted EPS(1) of$3.30 56.2% .
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.
North American Surface Transportation (“NAST”) Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||
Total revenues |
$ |
3,000,650 |
|
$ |
3,563,071 |
|
(15.8 |
)% |
|
$ |
12,471,075 |
|
$ |
15,827,467 |
|
(21.2 |
)% |
Adjusted gross profits(1) |
|
380,157 |
|
|
502,266 |
|
(24.3 |
)% |
|
|
1,593,854 |
|
|
2,196,704 |
|
(27.4 |
)% |
Income from operations |
|
95,958 |
|
|
162,550 |
|
(41.0 |
)% |
|
|
459,960 |
|
|
833,302 |
|
(44.8 |
)% |
____________________________________________ |
|||||||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||||||
Fourth quarter total revenues for the NAST segment totaled
Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||
Total revenues |
$ |
708,814 |
|
$ |
1,013,306 |
|
(30.0 |
)% |
|
$ |
2,997,704 |
|
$ |
6,812,008 |
|
(56.0 |
)% |
Adjusted gross profits(1) |
|
162,322 |
|
|
188,749 |
|
(14.0 |
)% |
|
|
689,365 |
|
|
1,083,473 |
|
(36.4 |
)% |
Income from operations |
|
22,576 |
|
|
28,216 |
|
(20.0 |
)% |
|
|
85,830 |
|
|
449,364 |
|
(80.9 |
)% |
____________________________________________ |
|||||||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||||||
Fourth quarter total revenues for the Global Forwarding segment decreased
All Other and Corporate Results
Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||
Total revenues |
$ |
512,423 |
|
$ |
490,444 |
|
4.5 |
% |
|
$ |
2,127,664 |
|
$ |
2,057,150 |
|
3.4 |
% |
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Robinson Fresh |
$ |
31,093 |
|
$ |
28,476 |
|
9.2 |
% |
|
$ |
131,216 |
|
$ |
121,639 |
|
7.9 |
% |
Managed Services |
|
28,846 |
|
|
29,799 |
|
(3.2 |
)% |
|
|
116,196 |
|
|
115,094 |
|
1.0 |
% |
Other Surface Transportation |
|
16,205 |
|
|
18,884 |
|
(14.2 |
)% |
|
|
73,977 |
|
|
76,267 |
|
(3.0 |
)% |
____________________________________________ |
|||||||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||||||
Fourth quarter Robinson Fresh adjusted gross profits increased
Other Income Statement Items
The fourth quarter effective tax rate was
Interest and other income/expense, net totaled
Diluted weighted average shares outstanding in the quarter were down
Cash Flow Generation and Capital Distribution
Cash generated from operations totaled
In the fourth quarter of 2023, cash returned to shareholders totaled
Capital expenditures totaled
About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With
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, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the
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 Fourth Quarter 2023 Earnings Conference Call
Wednesday, January 31, 2024; 5:00 p.m. Eastern Time
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: 877-269-7756
International callers dial +1-201-689-7817
Adjusted Gross Profit by Service Line
(in thousands)
This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines.
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||
Adjusted gross profits(1): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
|
|
|
|
|
|
|
|
|
|
|
||||||
Truckload |
$ |
243,839 |
|
$ |
346,845 |
|
(29.7 |
)% |
|
$ |
1,039,079 |
|
$ |
1,561,310 |
|
(33.4 |
)% |
LTL |
|
136,602 |
|
|
149,376 |
|
(8.6 |
)% |
|
|
550,373 |
|
|
632,116 |
|
(12.9 |
)% |
Ocean |
|
99,191 |
|
|
120,296 |
|
(17.5 |
)% |
|
|
420,883 |
|
|
729,839 |
|
(42.3 |
)% |
Air |
|
28,224 |
|
|
32,030 |
|
(11.9 |
)% |
|
|
123,470 |
|
|
198,166 |
|
(37.7 |
)% |
Customs |
|
23,730 |
|
|
24,495 |
|
(3.1 |
)% |
|
|
97,096 |
|
|
107,691 |
|
(9.8 |
)% |
Other logistics services |
|
59,402 |
|
|
68,909 |
|
(13.8 |
)% |
|
|
255,735 |
|
|
251,547 |
|
1.7 |
% |
Total transportation |
|
590,988 |
|
|
741,951 |
|
(20.3 |
)% |
|
|
2,486,636 |
|
|
3,480,669 |
|
(28.6 |
)% |
Sourcing |
|
27,635 |
|
|
26,223 |
|
5.4 |
% |
|
|
117,972 |
|
|
112,508 |
|
4.9 |
% |
Total adjusted gross profits |
$ |
618,623 |
|
$ |
768,174 |
|
(19.5 |
)% |
|
$ |
2,604,608 |
|
$ |
3,593,177 |
|
(27.5 |
)% |
____________________________________________ |
|||||||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||||||
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Transportation |
$ |
3,930,461 |
|
$ |
4,798,027 |
|
(18.1 |
)% |
|
$ |
16,372,660 |
|
$ |
23,516,384 |
|
(30.4 |
)% |
Sourcing |
|
291,426 |
|
|
268,794 |
|
8.4 |
% |
|
|
1,223,783 |
|
|
1,180,241 |
|
3.7 |
% |
Total revenues |
|
4,221,887 |
|
|
5,066,821 |
|
(16.7 |
)% |
|
|
17,596,443 |
|
|
24,696,625 |
|
(28.7 |
)% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchased transportation and related services |
|
3,339,473 |
|
|
4,056,076 |
|
(17.7 |
)% |
|
|
13,886,024 |
|
|
20,035,715 |
|
(30.7 |
)% |
Purchased products sourced for resale |
|
263,791 |
|
|
242,571 |
|
8.7 |
% |
|
|
1,105,811 |
|
|
1,067,733 |
|
3.6 |
% |
Direct internally developed software amortization |
|
9,320 |
|
|
6,656 |
|
40.0 |
% |
|
|
33,620 |
|
|
25,487 |
|
31.9 |
% |
Total direct expenses |
|
3,612,584 |
|
|
4,305,303 |
|
(16.1 |
)% |
|
|
15,025,455 |
|
|
21,128,935 |
|
(28.9 |
)% |
Gross profit |
$ |
609,303 |
|
$ |
761,518 |
|
(20.0 |
)% |
|
$ |
2,570,988 |
|
$ |
3,567,690 |
|
(27.9 |
)% |
Plus: Direct internally developed software amortization |
|
9,320 |
|
|
6,656 |
|
40.0 |
% |
|
|
33,620 |
|
|
25,487 |
|
31.9 |
% |
Adjusted gross profit |
$ |
618,623 |
|
$ |
768,174 |
|
(19.5 |
)% |
|
$ |
2,604,608 |
|
$ |
3,593,177 |
|
(27.5 |
)% |
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 margin, but also excludes the impact of restructuring and the gain on sale and leaseback of our
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues |
$ |
4,221,887 |
|
|
$ |
5,066,821 |
|
|
(16.7 |
%) |
|
$ |
17,596,443 |
|
|
$ |
24,696,625 |
|
|
(28.7 |
%) |
Income from operations |
|
107,429 |
|
|
|
164,034 |
|
|
(34.5 |
%) |
|
|
514,607 |
|
|
|
1,266,782 |
|
|
(59.4 |
%) |
Operating margin |
|
2.5 |
% |
|
|
3.2 |
% |
|
(70) bps |
|
|
2.9 |
% |
|
|
5.1 |
% |
|
(220) bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross profit |
$ |
618,623 |
|
|
$ |
768,174 |
|
|
(19.5 |
%) |
|
$ |
2,604,608 |
|
|
$ |
3,593,177 |
|
|
(27.5 |
%) |
Income from operations |
|
107,429 |
|
|
|
164,034 |
|
|
(34.5 |
%) |
|
|
514,607 |
|
|
|
1,266,782 |
|
|
(59.4 |
%) |
Adjusted operating margin |
|
17.4 |
% |
|
|
21.4 |
% |
|
(400) bps |
|
|
19.8 |
% |
|
|
35.3 |
% |
|
(1,550) bps |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross profit |
$ |
618,623 |
|
|
$ |
768,174 |
|
|
(19.5 |
%) |
|
$ |
2,604,608 |
|
|
$ |
3,593,177 |
|
|
(27.5 |
%) |
Adjusted income from operations |
|
103,153 |
|
|
|
200,718 |
|
|
(48.6 |
%) |
|
|
552,648 |
|
|
|
1,278,170 |
|
|
(56.8 |
%) |
Adjusted operating margin - excluding restructuring and gain on sale of property |
|
16.7 |
% |
|
|
26.1 |
% |
|
(940) bps |
|
|
21.2 |
% |
|
|
35.6 |
% |
|
(1,440) bps |
||
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
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 (diluted) is calculated as income (loss) from operations, adjusted operating margin - excluding restructuring and gain on sale of property, and net income per share (diluted) excluding the impact of restructuring and gain on sale of property. The adjustments to net income per share (diluted) include restructuring-related costs, gain on sale of property, a foreign currency loss on divested operations, and an income tax settlement. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and gain on sale of property, and adjusted net income per share (diluted). The reconciliation of income (loss) from operations to adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and gain on sale of property, and net income per share (diluted) to adjusted income (loss) from operations and adjusted net income per share (diluted) is presented below (in thousands except per share data):
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
||||||||
Three Months Ended December 31, 2023 |
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
95,958 |
|
|
$ |
22,576 |
|
|
$ |
(11,105 |
) |
|
$ |
107,429 |
|
Severance and other personnel expenses |
|
— |
|
|
|
(925 |
) |
|
|
(409 |
) |
|
|
(1,334 |
) |
Other selling, general, and administrative expenses |
|
— |
|
|
|
(3,084 |
) |
|
|
142 |
|
|
|
(2,942 |
) |
Total adjustments to operating income (loss)(1) |
|
— |
|
|
|
(4,009 |
) |
|
|
(267 |
) |
|
|
(4,276 |
) |
Adjusted income (loss) from operations |
$ |
95,958 |
|
|
$ |
18,567 |
|
|
$ |
(11,372 |
) |
|
$ |
103,153 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
380,157 |
|
|
$ |
162,322 |
|
|
$ |
76,144 |
|
|
$ |
618,623 |
|
Adjusted income (loss) from operations |
|
95,958 |
|
|
|
18,567 |
|
|
|
(11,372 |
) |
|
|
103,153 |
|
Adjusted operating margin - excluding restructuring |
|
25.2 |
% |
|
|
11.4 |
% |
|
|
N/M |
|
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
||||||||
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
||||||||
Twelve Months Ended December 31, 2023 |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
459,960 |
|
|
$ |
85,830 |
|
|
$ |
(31,183 |
) |
|
$ |
514,607 |
|
Severance and other personnel expenses |
|
1,083 |
|
|
|
3,817 |
|
|
|
13,509 |
|
|
|
18,409 |
|
Other selling, general, and administrative expenses |
|
8 |
|
|
|
18,158 |
|
|
|
1,466 |
|
|
|
19,632 |
|
Total adjustments to operating income (loss)(2) |
|
1,091 |
|
|
|
21,975 |
|
|
|
14,975 |
|
|
|
38,041 |
|
Adjusted income (loss) from operations |
$ |
461,051 |
|
|
$ |
107,805 |
|
|
$ |
(16,208 |
) |
|
$ |
552,648 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
1,593,854 |
|
|
$ |
689,365 |
|
|
$ |
321,389 |
|
|
$ |
2,604,608 |
|
Adjusted income (loss) from operations |
|
461,051 |
|
|
|
107,805 |
|
|
|
(16,208 |
) |
|
|
552,648 |
|
Adjusted operating margin - excluding restructuring |
|
28.9 |
% |
|
|
15.6 |
% |
|
|
N/M |
|
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
$ in 000's |
|
per share |
|
$ in 000's |
|
per share |
||||||||
Net income and per share (diluted) |
$ |
30,973 |
|
|
$ |
0.26 |
|
|
$ |
325,129 |
|
|
$ |
2.72 |
|
Restructuring and related costs, pre-tax(1)(2) |
|
(2,856 |
) |
|
|
(0.02 |
) |
|
|
39,461 |
|
|
|
0.32 |
|
Foreign currency loss on divested operations, pre-tax |
|
7,454 |
|
|
|
0.06 |
|
|
|
16,375 |
|
|
|
0.14 |
|
Income tax settlement and tax effect of adjustments |
|
23,928 |
|
|
|
0.20 |
|
|
|
14,172 |
|
|
|
0.12 |
|
Adjusted net income and per share (diluted) |
$ |
59,499 |
|
|
$ |
0.50 |
|
|
$ |
395,137 |
|
|
$ |
3.30 |
|
____________________________________________ |
|||||||||||||||
(1) The three months ended December 31, 2023 include restructuring expense adjustments of |
|||||||||||||||
(2) The twelve months ended December 31, 2023 include restructuring expenses of |
|||||||||||||||
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
||||||||
Three Months Ended December 31, 2022 |
|
|
|
|
|
|
|
||||||||
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
162,550 |
|
|
$ |
28,216 |
|
|
$ |
(26,732 |
) |
|
$ |
164,034 |
|
Severance and other personnel expenses |
|
6,323 |
|
|
|
3,831 |
|
|
|
11,380 |
|
|
|
21,534 |
|
Other selling, general, and administrative expenses |
|
3,175 |
|
|
|
3,174 |
|
|
|
8,801 |
|
|
|
15,150 |
|
Total adjustments to operating income (loss)(1) |
|
9,498 |
|
|
|
7,005 |
|
|
|
20,181 |
|
|
|
36,684 |
|
Adjusted income (loss) from operations |
$ |
172,048 |
|
|
$ |
35,221 |
|
|
$ |
(6,551 |
) |
|
$ |
200,718 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
502,266 |
|
|
$ |
188,749 |
|
|
$ |
77,159 |
|
|
$ |
768,174 |
|
Adjusted income (loss) from operations |
|
172,048 |
|
|
|
35,221 |
|
|
|
(6,551 |
) |
|
|
200,718 |
|
Adjusted operating margin - excluding restructuring |
|
34.3 |
% |
|
|
18.7 |
% |
|
|
N/M |
|
|
|
26.1 |
% |
|
|
|
|
|
|
|
|
||||||||
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
||||||||
Twelve Months Ended December 31, 2022 |
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
$ |
833,302 |
|
|
$ |
449,364 |
|
|
$ |
(15,884 |
) |
|
$ |
1,266,782 |
|
Severance and other personnel expenses |
|
6,323 |
|
|
|
3,831 |
|
|
|
11,380 |
|
|
|
21,534 |
|
Other selling, general, and administrative expenses |
|
3,175 |
|
|
|
3,174 |
|
|
|
(16,495 |
) |
|
|
(10,146 |
) |
Total adjustments to operating income (loss)(1)(2) |
|
9,498 |
|
|
|
7,005 |
|
|
|
(5,115 |
) |
|
|
11,388 |
|
Adjusted income (loss) from operations |
$ |
842,800 |
|
|
$ |
456,369 |
|
|
$ |
(20,999 |
) |
|
$ |
1,278,170 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit |
$ |
2,196,704 |
|
|
$ |
1,083,473 |
|
|
$ |
313,000 |
|
|
$ |
3,593,177 |
|
Adjusted income (loss) from operations |
|
842,800 |
|
|
|
456,369 |
|
|
|
(20,999 |
) |
|
|
1,278,170 |
|
Adjusted operating margin - excluding restructuring and gain on sale of property |
|
38.4 |
% |
|
|
42.1 |
% |
|
|
N/M |
|
|
|
35.6 |
% |
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
$ in 000's |
|
per share |
|
$ in 000's |
|
per share |
||||||||
Net income and per share (diluted) |
$ |
96,193 |
|
|
$ |
0.80 |
|
|
$ |
940,524 |
|
|
$ |
7.40 |
|
Restructuring and related costs, pre-tax(1) |
|
36,684 |
|
|
|
0.30 |
|
|
|
36,684 |
|
|
|
0.29 |
|
Gain on sale of property, pre-tax(2) |
|
— |
|
|
|
— |
|
|
|
(25,296 |
) |
|
|
(0.20 |
) |
Foreign currency loss on divested operations, pre-tax |
|
3,407 |
|
|
|
0.03 |
|
|
|
9,268 |
|
|
|
0.07 |
|
Tax effect of adjustments |
|
(8,804 |
) |
|
$ |
(0.07 |
) |
|
|
(2,733 |
) |
|
$ |
(0.02 |
) |
Adjusted net income and per share (diluted) |
$ |
127,480 |
|
|
$ |
1.06 |
|
|
$ |
958,447 |
|
|
$ |
7.54 |
|
____________________________________________ |
|||||||||||||||
(1) The three and twelve months ended December 31, 2022 include restructuring expenses of |
|||||||||||||||
(2) The twelve months ended December 31, 2022 include a gain on sale of property and equipment of |
|||||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||||||||||
(unaudited, in thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
|
||||||||||||||||||||
|
2023 |
|
2022 |
|
% change |
|
2023 |
|
2022 |
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transportation |
$ |
3,930,461 |
|
|
$ |
4,798,027 |
|
|
(18.1 |
)% |
|
$ |
16,372,660 |
|
|
$ |
23,516,384 |
|
|
(30.4 |
)% |
Sourcing |
|
291,426 |
|
|
|
268,794 |
|
|
8.4 |
% |
|
|
1,223,783 |
|
|
|
1,180,241 |
|
|
3.7 |
% |
Total revenues |
|
4,221,887 |
|
|
|
5,066,821 |
|
|
(16.7 |
)% |
|
|
17,596,443 |
|
|
|
24,696,625 |
|
|
(28.7 |
)% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased transportation and related services |
|
3,339,473 |
|
|
|
4,056,076 |
|
|
(17.7 |
)% |
|
|
13,886,024 |
|
|
|
20,035,715 |
|
|
(30.7 |
)% |
Purchased products sourced for resale |
|
263,791 |
|
|
|
242,571 |
|
|
8.7 |
% |
|
|
1,105,811 |
|
|
|
1,067,733 |
|
|
3.6 |
% |
Personnel expenses |
|
361,820 |
|
|
|
427,310 |
|
|
(15.3 |
)% |
|
|
1,465,735 |
|
|
|
1,722,980 |
|
|
(14.9 |
)% |
Other selling, general, and administrative expenses |
|
149,374 |
|
|
|
176,830 |
|
|
(15.5 |
)% |
|
|
624,266 |
|
|
|
603,415 |
|
|
3.5 |
% |
Total costs and expenses |
|
4,114,458 |
|
|
|
4,902,787 |
|
|
(16.1 |
)% |
|
|
17,081,836 |
|
|
|
23,429,843 |
|
|
(27.1 |
)% |
Income from operations |
|
107,429 |
|
|
|
164,034 |
|
|
(34.5 |
)% |
|
|
514,607 |
|
|
|
1,266,782 |
|
|
(59.4 |
)% |
Interest and other income/expense, net |
|
(38,149 |
) |
|
|
(42,476 |
) |
|
(10.2 |
)% |
|
|
(105,421 |
) |
|
|
(100,017 |
) |
|
5.4 |
% |
Income before provision for income taxes |
|
69,280 |
|
|
|
121,558 |
|
|
(43.0 |
)% |
|
|
409,186 |
|
|
|
1,166,765 |
|
|
(64.9 |
)% |
Provision for income taxes |
|
38,307 |
|
|
|
25,365 |
|
|
51.0 |
% |
|
|
84,057 |
|
|
|
226,241 |
|
|
(62.8 |
)% |
Net income |
$ |
30,973 |
|
|
$ |
96,193 |
|
|
(67.8 |
)% |
|
$ |
325,129 |
|
|
$ |
940,524 |
|
|
(65.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share (basic) |
$ |
0.26 |
|
|
$ |
0.81 |
|
|
(67.9 |
)% |
|
$ |
2.74 |
|
|
$ |
7.48 |
|
|
(63.4 |
)% |
Net income per share (diluted) |
$ |
0.26 |
|
|
$ |
0.80 |
|
|
(67.5 |
)% |
|
$ |
2.72 |
|
|
$ |
7.40 |
|
|
(63.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding (basic) |
|
118,605 |
|
|
|
119,212 |
|
|
(0.5 |
)% |
|
|
118,551 |
|
|
|
125,743 |
|
|
(5.7 |
)% |
Weighted average shares outstanding (diluted) |
|
119,613 |
|
|
|
120,472 |
|
|
(0.7 |
)% |
|
|
119,677 |
|
|
|
127,150 |
|
|
(5.9 |
)% |
Business Segment Information |
|||||||||||||
(unaudited, in thousands, except average employee headcount) |
|||||||||||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Three Months Ended December 31, 2023 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
3,000,650 |
|
$ |
708,814 |
|
$ |
512,423 |
|
|
$ |
4,221,887 |
Adjusted gross profits(1) |
|
|
380,157 |
|
|
162,322 |
|
|
76,144 |
|
|
|
618,623 |
Income (loss) from operations |
|
|
95,958 |
|
|
22,576 |
|
|
(11,105 |
) |
|
|
107,429 |
Depreciation and amortization |
|
|
5,638 |
|
|
2,915 |
|
|
14,533 |
|
|
|
23,086 |
Total assets(2) |
|
|
3,008,459 |
|
|
1,094,895 |
|
|
1,121,926 |
|
|
|
5,225,280 |
Average employee headcount |
|
|
6,103 |
|
|
5,021 |
|
|
4,195 |
|
|
|
15,319 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Three Months Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
3,563,071 |
|
$ |
1,013,306 |
|
$ |
490,444 |
|
|
$ |
5,066,821 |
Adjusted gross profits(1) |
|
|
502,266 |
|
|
188,749 |
|
|
77,159 |
|
|
|
768,174 |
Income (loss) from operations |
|
|
162,550 |
|
|
28,216 |
|
|
(26,732 |
) |
|
|
164,034 |
Depreciation and amortization |
|
|
5,542 |
|
|
5,441 |
|
|
13,070 |
|
|
|
24,053 |
Total assets(2) |
|
|
3,304,480 |
|
|
1,507,913 |
|
|
1,142,171 |
|
|
|
5,954,564 |
Average employee headcount |
|
|
7,251 |
|
|
5,745 |
|
|
4,676 |
|
|
|
17,672 |
____________________________________________ |
|||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||
(2) All cash and cash equivalents are included in All Other and Corporate. |
|||||||||||||
Business Segment Information |
|||||||||||||
(unaudited, in thousands, except average employee headcount) |
|||||||||||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Twelve Months Ended December 31, 2023 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
12,471,075 |
|
$ |
2,997,704 |
|
$ |
2,127,664 |
|
|
$ |
17,596,443 |
Adjusted gross profits(1) |
|
|
1,593,854 |
|
|
689,365 |
|
|
321,389 |
|
|
|
2,604,608 |
Income (loss) from operations |
|
|
459,960 |
|
|
85,830 |
|
|
(31,183 |
) |
|
|
514,607 |
Depreciation and amortization |
|
|
23,027 |
|
|
19,325 |
|
|
56,633 |
|
|
|
98,985 |
Total assets(2) |
|
|
3,008,459 |
|
|
1,094,895 |
|
|
1,121,926 |
|
|
|
5,225,280 |
Average employee headcount |
|
|
6,469 |
|
|
5,222 |
|
|
4,350 |
|
|
|
16,041 |
|
|
|
|
|
|
|
|
|
|||||
|
|
NAST |
|
Global
|
|
All
|
|
Consolidated |
|||||
Twelve Months Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|||||
Total revenues |
|
$ |
15,827,467 |
|
$ |
6,812,008 |
|
$ |
2,057,150 |
|
|
$ |
24,696,625 |
Adjusted gross profits(1) |
|
|
2,196,704 |
|
|
1,083,473 |
|
|
313,000 |
|
|
|
3,593,177 |
Income (loss) from operations |
|
|
833,302 |
|
|
449,364 |
|
|
(15,884 |
) |
|
|
1,266,782 |
Depreciation and amortization |
|
|
23,643 |
|
|
21,835 |
|
|
47,298 |
|
|
|
92,776 |
Total assets(2) |
|
|
3,304,480 |
|
|
1,507,913 |
|
|
1,142,171 |
|
|
|
5,954,564 |
Average employee headcount |
|
|
7,365 |
|
|
5,712 |
|
|
4,524 |
|
|
|
17,601 |
____________________________________________ |
|||||||||||||
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material. |
|||||||||||||
(2) All cash and cash equivalents are included in All Other and Corporate. |
|||||||||||||
Condensed Consolidated Balance Sheets |
|||||
(unaudited, in thousands) |
|||||
|
December 31, 2023 |
|
December 31, 2022 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
145,524 |
|
$ |
217,482 |
Receivables, net of allowance for credit loss |
|
2,381,963 |
|
|
2,991,753 |
Contract assets, net of allowance for credit loss |
|
189,900 |
|
|
257,597 |
Prepaid expenses and other |
|
163,307 |
|
|
122,406 |
Total current assets |
|
2,880,694 |
|
|
3,589,238 |
|
|
|
|
||
Property and equipment, net of accumulated depreciation and amortization |
|
144,718 |
|
|
159,432 |
Right-of-use lease assets |
|
353,890 |
|
|
372,141 |
Intangible and other assets, net of accumulated amortization |
|
1,845,978 |
|
|
1,833,753 |
Total assets |
$ |
5,225,280 |
|
$ |
5,954,564 |
|
|
|
|
||
Liabilities and stockholders’ investment |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and outstanding checks |
$ |
1,370,334 |
|
$ |
1,570,559 |
Accrued expenses: |
|
|
|
||
Compensation |
|
135,104 |
|
|
242,605 |
Transportation expense |
|
147,921 |
|
|
199,092 |
Income taxes |
|
4,748 |
|
|
15,210 |
Other accrued liabilities |
|
159,435 |
|
|
168,009 |
Current lease liabilities |
|
74,451 |
|
|
73,722 |
Current portion of debt |
|
160,000 |
|
|
1,053,655 |
Total current liabilities |
|
2,051,993 |
|
|
3,322,852 |
|
|
|
|
||
Long-term debt |
|
1,420,487 |
|
|
920,049 |
Noncurrent lease liabilities |
|
297,563 |
|
|
313,742 |
Noncurrent income taxes payable |
|
21,289 |
|
|
28,317 |
Deferred tax liabilities |
|
13,177 |
|
|
14,256 |
Other long-term liabilities |
|
2,074 |
|
|
1,926 |
Total liabilities |
|
3,806,583 |
|
|
4,601,142 |
|
|
|
|
||
Total stockholders’ investment |
|
1,418,697 |
|
|
1,353,422 |
Total liabilities and stockholders’ investment |
$ |
5,225,280 |
|
$ |
5,954,564 |
Condensed Consolidated Statements of Cash Flow |
|||||||
(unaudited, in thousands, except operational data) |
|||||||
|
Twelve Months Ended December 31, |
||||||
Operating activities: |
2023 |
|
2022(1) |
||||
|
|
|
|
||||
Net income |
$ |
325,129 |
|
|
$ |
940,524 |
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
98,985 |
|
|
|
92,776 |
|
Provision for credit losses |
|
(6,047 |
) |
|
|
(4,476 |
) |
Stock-based compensation |
|
58,169 |
|
|
|
90,677 |
|
Deferred income taxes |
|
(37,746 |
) |
|
|
(58,566 |
) |
Excess tax benefit on stock-based compensation |
|
(11,319 |
) |
|
|
(13,662 |
) |
Loss on disposal group held for sale |
|
17,698 |
|
|
|
— |
|
Other operating activities |
|
5,541 |
|
|
|
(6,627 |
) |
Changes in operating elements, net of acquisitions: |
|
|
|
||||
Receivables |
|
607,259 |
|
|
|
923,524 |
|
Contract assets |
|
68,041 |
|
|
|
197,097 |
|
Prepaid expenses and other |
|
(39,048 |
) |
|
|
(28,495 |
) |
Right of use asset |
|
19,255 |
|
|
|
(82,754 |
) |
Accounts payable and outstanding checks |
|
(200,843 |
) |
|
|
(307,266 |
) |
Accrued compensation |
|
(108,084 |
) |
|
|
42,266 |
|
Accrued transportation expenses |
|
(51,171 |
) |
|
|
(143,686 |
) |
Accrued income taxes |
|
(2,284 |
) |
|
|
(69,817 |
) |
Other accrued liabilities |
|
(11,991 |
) |
|
|
2,371 |
|
Lease liability |
|
(16,500 |
) |
|
|
83,084 |
|
Other assets and liabilities |
|
16,902 |
|
|
|
(6,799 |
) |
Net cash provided by operating activities |
|
731,946 |
|
|
|
1,650,171 |
|
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(29,989 |
) |
|
|
(61,915 |
) |
Purchases and development of software |
|
(54,122 |
) |
|
|
(66,582 |
) |
Proceeds from sale of property and equipment |
|
1,324 |
|
|
|
63,579 |
|
Net cash used for investing activities |
|
(82,787 |
) |
|
|
(64,918 |
) |
Financing activities: |
|
|
|
||||
Proceeds from stock issued for employee benefit plans |
|
56,914 |
|
|
|
100,059 |
|
Stock tendered for payment of withholding taxes |
|
(25,294 |
) |
|
|
(28,388 |
) |
Repurchases of common stock |
|
(63,884 |
) |
|
|
(1,459,900 |
) |
Cash dividends |
|
(291,569 |
) |
|
|
(285,317 |
) |
Proceeds from long-term borrowings |
|
— |
|
|
|
200,000 |
|
Proceeds from short-term borrowings |
|
3,893,750 |
|
|
|
4,500,000 |
|
Payments on short-term borrowings |
|
(4,287,750 |
) |
|
|
(4,646,000 |
) |
Net cash used for financing activities |
|
(717,833 |
) |
|
|
(1,619,546 |
) |
Effect of exchange rates on cash and cash equivalents |
|
(3,284 |
) |
|
|
(5,638 |
) |
Net change in cash and cash equivalents |
|
(71,958 |
) |
|
|
(39,931 |
) |
Cash and cash equivalents, beginning of period |
|
217,482 |
|
|
|
257,413 |
|
Cash and cash equivalents, end of period |
$ |
145,524 |
|
|
$ |
217,482 |
|
|
As of December 31, |
||||||
Operational Data: |
|
2023 |
|
|
|
2022 |
|
Employees |
|
15,246 |
|
|
|
17,399 |
|
____________________________________________ |
|||||||
(1) The Twelve Months Ended December 31, 2022 has been adjusted to conform to current year presentation. |
|||||||
CHRW-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20240131786378/en/
Chuck Ives, Director of Investor Relations
chuck.ives@chrobinson.com
Source: C.H. Robinson
FAQ
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