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C.H. Robinson Reports 2019 Second Quarter Results

MINNEAPOLIS--(BUSINESS WIRE)--

C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (CHRW) today reported financial results for the quarter ended June 30, 2019.

  • Net revenues increased 3.5 percent to $695.2 million
  • Income from operations increased 3.9 percent to $227.5 million
  • Operating margin improved 10 basis points to 32.7 percent
  • Diluted earnings per share (EPS) increased 8.0 percent to $1.22
  • Cash flow from operations increased 85.0 percent to $199.6 million

“In the second quarter, we achieved 3.5 percent net revenue growth, solid performance versus the year-ago period where net revenues increased 17 percent. We delivered our fifth consecutive quarter of operating margin expansion and an 8 percent increase in earnings per share,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. “We continued to make improvements in working capital, which combined with increased earnings, allowed us to generate nearly $200 million in cash flow from operations and increase cash returns to our shareholders. We are pleased with our second quarter results in this soft freight environment.”

Second Quarter Results Summary

  • Total revenues decreased 8.6 percent to $3.9 billion, driven by lower pricing across most transportation service lines.
  • Net revenues increased 3.5 percent to $695.2 million, primarily driven by margin improvement in truckload services.
  • Operating expenses increased 3.4 percent to $467.7 million. Personnel expenses decreased 0.5 percent to $338.9 million, driven primarily by declines in performance-based compensation, partially offset by a 3.2 percent increase in average headcount. Selling, general and administrative (“SG&A”) expenses increased 15.2 percent to $128.8 million, due primarily to increases in purchased services, particularly commercial off-the-shelf software, and occupancy.
  • Income from operations totaled $227.5 million, up 3.9 percent from last year due to growth in North American Surface Transportation (“NAST”), partially offset by declines in Global Forwarding and All Other and Corporate. Operating margin of 32.7 percent increased 10 basis points.
  • Interest and other expenses totaled $6.6 million, which primarily consists of interest expense. The second quarter also included a $2.8 million favorable impact from currency revaluation.
  • The effective tax rate in the quarter was 23.4 percent compared to 25.6 percent last year.
  • Net income totaled $169.2 million, up 6.3 percent from a year ago. Diluted EPS of $1.22 increased 8.0 percent.

Year-to-Date Results Summary

  • Total revenues decreased 6.6 percent to $7.7 billion, driven by declines across most transportation service lines.
  • Net revenues increased 5.9 percent to $1.4 billion, primarily driven by margin improvement in truckload services.
  • Operating expenses increased 4.0 percent to $921.9 million. Personnel expenses increased 1.5 percent to $679.0 million, driven primarily by a 2.5 percent increase in average headcount, partially offset by declines in performance-based compensation. SG&A expenses increased 11.5 percent to $242.9 million, due primarily to increases in purchased services, particularly commercial off-the-shelf software, and occupancy, partially offset by a reduction in bad debt expense.
  • Income from operations totaled $452.1 million, up 10.1 percent from last year due to growth in NAST and Global Forwarding, partially offset by a decline in All Other and Corporate. Operating margin of 32.9 percent increased 130 basis points.
  • Interest and other expenses totaled $23.8 million, which primarily consists of interest expense. The six-month period also included a $2.2 million unfavorable impact from currency revaluation.
  • The effective tax rate for the first six months was 22.7 percent compared to 23.6 percent in the year-ago period.
  • Net income totaled $331.0 million, up 9.8 percent from a year ago. Diluted EPS of $2.39 increased 11.7 percent.

North American Surface Transportation Results

Summarized financial results of our NAST segment are as follows (dollars in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

2,872,053

 

 

$

3,163,185

 

 

(9.2

)%

 

$

5,668,837

 

 

$

6,071,604

 

 

(6.6

)%

Net revenues

 

486,418

 

 

459,706

 

 

5.8

%

 

972,968

 

 

898,108

 

 

8.3

%

Income from operations

 

204,732

 

 

188,244

 

 

8.8

%

 

416,015

 

 

367,881

 

 

13.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Second quarter total revenues for C.H. Robinson's NAST segment totaled $2.9 billion, a decrease of 9.2 percent over the prior year, primarily driven by decreased pricing. NAST net revenues increased 5.8 percent in the quarter to $486.4 million. Net revenues in truckload increased 8.6 percent, less than truckload (“LTL”) net revenues increased 2.8 percent, and intermodal net revenues decreased 33.8 percent versus the year ago period. Excluding the impact of the change in fuel prices, average North America truckload rate per mile charged to customers decreased approximately 11.5 percent in the quarter, while truckload transportation cost per mile decreased approximately 14.5 percent. Truckload volumes declined 2.5 percent in the quarter. LTL volumes grew 3.5 percent, and intermodal volumes declined 30.5 percent versus the prior year. Operating expenses increased 3.8 percent, due to increased SG&A expenses, partially offset by a decline in personnel expenses. NAST second quarter results include a contingent auto liability claim of $5 million. The prior year period also included a contingent auto liability claim of $4 million. Income from operations increased 8.8 percent to $204.7 million, and operating margin expanded 120 basis points to 42.1 percent. NAST average headcount was up 1.8 percent in the quarter. As a reminder, second quarter and year-to-date NAST results include Robinson Fresh transportation, which was previously reported under the Robinson Fresh segment.

Global Forwarding Results

Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

592,483

 

 

$

617,597

 

 

(4.1

)%

 

$

1,130,050

 

 

$

1,171,351

 

 

(3.5

)%

Net revenues

 

141,936

 

 

144,031

 

 

(1.5

)%

 

269,172

 

 

267,068

 

 

0.8

%

Income from operations

 

26,618

 

 

29,788

 

 

(10.6

)%

 

40,821

 

 

38,009

 

 

7.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Second quarter total revenues for the Global Forwarding segment decreased 4.1 percent to $592.5 million, primarily driven by lower pricing in ocean and air and a decline in air volume. Net revenues decreased 1.5 percent in the quarter to $141.9 million. The acquisition of The Space Cargo Group (“Space Cargo”) contributed 3 percentage points of net revenue growth in the quarter. Ocean net revenues decreased 1.6 percent driven by pricing declines. Net revenues in air decreased 12.2 percent, as a decline in shipments more than offset margin expansion. Customs net revenues increased 12.0 percent, primarily driven by improved mix, partially offset by a modest decline in transaction volume. Operating expenses increased 0.9 percent, driven by increased investments in technology. Second quarter average headcount increased 0.7 percent, with Space Cargo contributing 3.5 percentage points to the growth. Income from operations decreased 10.6 percent to $26.6 million, and operating margin declined 190 basis points to 18.8 percent in the quarter.

All Other and Corporate Results

Net revenues for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Net revenues

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Robinson Fresh

 

$

31,236

 

 

$

32,644

 

 

(4.3

)%

 

$

59,894

 

 

$

62,881

 

 

(4.8

)%

Managed Services

 

20,099

 

 

20,074

 

 

0.1

%

 

40,411

 

 

38,391

 

 

5.3

%

Other Surface Transportation

 

15,527

 

 

15,028

 

 

3.3

%

 

31,571

 

 

30,960

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Second quarter Robinson Fresh net revenues decreased 4.3 percent to $31.2 million, driven by strategic decisions to exit unprofitable business. Managed Services net revenues were approximately flat this quarter. Other Surface Transportation net revenues increased 3.3 percent to $15.5 million, with the acquisition of Dema Service contributing 4 percentage points of net revenue growth.

Other Income Statement Items

The second quarter effective tax rate was 23.4 percent, down from 25.6 percent last year. We continue to expect our full-year effective tax rate to be between 24 and 25 percent in 2019.

Interest and other expenses totaled $6.6 million, which primarily consists of interest expense. The second quarter also included a $2.8 million favorable impact from currency revaluation.

Diluted weighted average shares outstanding in the quarter were down 1.7 percent, as share repurchases were partially offset by activity in our equity compensation plans.

Cash Flow Generation and Capital Distribution

Cash from operations totaled $199.6 million, up 85.0 percent versus the prior year, primarily due to improved working capital performance and increased earnings versus the year-ago period.

In the second quarter, $179.8 million was returned to shareholders, with $69.3 million in cash dividends and $110.5 million in share repurchases. This represents an increase of 32.0 percent over the prior year.

Capital expenditures totaled $17.7 million in the quarter. We continue to expect 2019 capital expenditures to be between $80 and $90 million, with the majority dedicated to technology.

Outlook

“We expect the soft freight environment to continue through the balance of 2019,” Biesterfeld stated. “Despite the current freight environment, our long-term goals remain unchanged. We remain focused on taking market share, automating core processes while delivering industry-leading quality service to our customers and carriers, and improving operating leverage in our businesses.”

About C.H. Robinson

At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 124,000 customers and 76,000 active contract carriers through our integrated network of offices and more than 15,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded since 1997. For more information, visit www.chrobinson.com.

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 such 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; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; 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 Second Quarter 2019 Earnings Conference Call
Wednesday, July 31, 2019; 8:30 a.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

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 adrienne.brausen@chrobinson.com.

Summarized Financial Results
($ in thousands, except per share data)

This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the service line net revenues discussed within the segments as our segments have revenues from multiple service lines.

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

% change

 

2019

 

2018

 

% change

Total revenues

 

$

3,908,840

 

 

$

4,276,037

 

 

(8.6

)%

 

$

7,660,050

 

 

$

8,201,364

 

 

(6.6

)%

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

 

Truckload

 

$

371,351

 

 

$

341,442

 

 

8.8

%

 

$

749,344

 

 

$

671,733

 

 

11.6

%

LTL

 

122,991

 

 

119,189

 

 

3.2

%

 

239,220

 

 

231,333

 

 

3.4

%

Intermodal

 

6,298

 

 

9,181

 

 

(31.4

)%

 

12,374

 

 

15,513

 

 

(20.2

)%

Ocean

 

85,472

 

 

87,035

 

 

(1.8

)%

 

157,005

 

 

155,879

 

 

0.7

%

Air

 

26,134

 

 

30,905

 

 

(15.4

)%

 

53,716

 

 

59,788

 

 

(10.2

)%

Customs

 

23,306

 

 

20,794

 

 

12.1

%

 

45,184

 

 

41,449

 

 

9.0

%

Other logistics services

 

30,062

 

 

31,397

 

 

(4.3

)%

 

60,447

 

 

60,286

 

 

0.3

%

Total transportation

 

665,614

 

 

639,943

 

 

4.0

%

 

1,317,290

 

 

1,235,981

 

 

6.6

%

Sourcing

 

29,602

 

 

31,540

 

 

(6.1

)%

 

56,726

 

 

61,427

 

 

(7.7

)%

Total net revenues

 

695,216

 

 

671,483

 

 

3.5

%

 

1,374,016

 

 

1,297,408

 

 

5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

467,681

 

 

452,475

 

 

3.4

%

 

921,931

 

 

886,815

 

 

4.0

%

Income from operations

 

227,535

 

 

219,008

 

 

3.9

%

 

452,085

 

 

410,593

 

 

10.1

%

Net income

 

$

169,180

 

 

$

159,163

 

 

6.3

%

 

$

330,968

 

 

$

301,460

 

 

9.8

%

Diluted EPS

 

$

1.22

 

 

$

1.13

 

 

8.0

%

 

$

2.39

 

 

$

2.14

 

 

11.7

%

Our total revenues represent the total dollar value of services and goods we sell to our customers. Net revenues are a non-GAAP financial measure calculated as total revenues less the cost of purchased transportation and related services and the cost of purchased products sourced for resale. We believe net revenues are a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider net revenues to be our primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our net revenues. The reconciliation of total revenues to net revenues is presented below (in thousands):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

 

Transportation

 

$

3,638,612

 

 

$

3,953,139

 

 

$

7,143,544

 

 

$

7,590,779

 

Sourcing

 

270,228

 

 

322,898

 

 

516,506

 

 

610,585

 

Total revenues

 

3,908,840

 

 

4,276,037

 

 

7,660,050

 

 

8,201,364

 

Costs and expenses:

 

 

 

 

 

 

 

 

Purchased transportation and related services

 

2,972,998

 

 

3,313,196

 

 

5,826,254

 

 

6,354,798

 

Purchased products sourced for resale

 

240,626

 

 

291,358

 

 

459,780

 

 

549,158

 

Total costs and expenses

 

3,213,624

 

 

3,604,554

 

 

6,286,034

 

 

6,903,956

 

Net revenues

 

$

695,216

 

 

$

671,483

 

 

$

1,374,016

 

 

$

1,297,408

 

 

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Transportation

 

$

3,638,612

 

 

$

3,953,139

 

 

$

7,143,544

 

 

$

7,590,779

 

Sourcing

 

270,228

 

 

322,898

 

 

516,506

 

 

610,585

 

Total revenues

 

3,908,840

 

 

4,276,037

 

 

7,660,050

 

 

8,201,364

 

Costs and expenses:

 

 

 

 

 

 

 

 

Purchased transportation and related services

 

2,972,998

 

 

3,313,196

 

 

5,826,254

 

 

6,354,798

 

Purchased products sourced for resale

 

240,626

 

 

291,358

 

 

459,780

 

 

549,158

 

Personnel expenses

 

338,886

 

 

340,630

 

 

678,984

 

 

668,927

 

Other selling, general, and administrative expenses

 

128,795

 

 

111,845

 

 

242,947

 

 

217,888

 

Total costs and expenses

 

3,681,305

 

 

4,057,029

 

 

7,207,965

 

 

7,790,771

 

Income from operations

 

227,535

 

 

219,008

 

 

452,085

 

 

410,593

 

Interest and other expense

 

(6,615

)

 

(5,128

)

 

(23,755

)

 

(15,828

)

Income before provision for income taxes

 

220,920

 

 

213,880

 

 

428,330

 

 

394,765

 

Provisions for income taxes

 

51,740

 

 

54,717

 

 

97,362

 

 

93,305

 

Net income

 

$

169,180

 

 

$

159,163

 

 

$

330,968

 

 

$

301,460

 

 

 

 

 

 

 

 

 

 

Net income per share (basic)

 

$

1.23

 

 

$

1.14

 

 

$

2.41

 

 

$

2.16

 

Net income per share (diluted)

 

$

1.22

 

 

$

1.13

 

 

$

2.39

 

 

$

2.14

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (basic)

 

137,185

 

 

139,464

 

 

137,518

 

 

139,745

 

Weighted average shares outstanding (diluted)

 

138,256

 

 

140,611

 

 

138,667

 

 

140,960

 

 

Business Segment Information

(unaudited, dollars in thousands)

All

 

 

 

 

 

Global

 

Other and

 

 

NAST

Forwarding

Corporate

Consolidated

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

2,872,053

 

 

$

592,483

 

 

$

444,304

 

 

$

3,908,840

 

Net revenues

 

486,418

 

 

141,936

 

 

66,862

 

 

695,216

 

Income (loss) from operations

 

204,732

 

 

26,618

 

 

(3,815

)

 

227,535

 

Depreciation and amortization

 

6,131

 

 

9,315

 

 

9,636

 

 

25,082

 

Total assets (1)

 

2,685,477

 

 

1,014,235

 

 

984,397

 

 

4,684,109

 

Average headcount

 

7,533

 

 

4,770

 

 

3,409

 

 

15,712

 

 

 

 

 

 

 

 

 

 

All

 

Global

Other and

 

 

 

NAST

 

Forwarding

 

Corporate

 

Consolidated

Three Months Ended June 30, 2018 (2)

 

 

 

 

 

 

 

 

Total revenues

 

$

3,163,185

 

 

$

617,597

 

 

$

495,255

 

 

$

4,276,037

 

Net revenues

 

459,706

 

 

144,031

 

 

67,746

 

 

671,483

 

Income from operations

 

188,244

 

 

29,788

 

 

976

 

 

219,008

 

Depreciation and amortization

 

6,288

 

 

8,753

 

 

9,197

 

 

24,238

 

Total assets (1)

 

2,692,908

 

 

861,080

 

 

899,296

 

 

4,453,284

 

Average headcount

 

7,401

 

 

4,736

 

 

3,092

 

 

15,229

 

(1) All cash and cash equivalents are included in All Other and Corporate.
(2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019.

Business Segment Information

(unaudited, dollars in thousands)

 

All

 

Global

Other and

 

 

 

NAST

 

Forwarding

 

Corporate

 

Consolidated

Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

Total revenues

 

$

5,668,837

 

 

$

1,130,050

 

 

$

861,163

 

 

$

7,660,050

 

Net revenues

 

972,968

 

 

269,172

 

 

131,876

 

 

1,374,016

 

Income from operations

 

416,015

 

 

40,821

 

 

(4,751

)

 

452,085

 

Depreciation and amortization

 

12,390

 

 

18,241

 

 

19,011

 

 

49,642

 

Total assets (1)

 

2,685,477

 

 

1,014,235

 

 

984,397

 

 

4,684,109

 

Average headcount

 

7,486

 

 

4,728

 

 

3,343

 

 

15,557

 

 

 

 

 

 

 

 

 

 

All

 

Global

Other and

 

 

 

NAST

 

Forwarding

 

Corporate

 

Consolidated

Six Months Ended June 30, 2018 (2)

 

 

 

 

 

 

 

 

Total revenues

 

$

6,071,604

 

 

$

1,171,351

 

 

$

958,409

 

 

$

8,201,364

 

Net revenues

 

898,108

 

 

267,068

 

 

132,232

 

 

1,297,408

 

Income from operations

 

367,881

 

 

38,009

 

 

4,703

 

 

410,593

 

Depreciation and amortization

 

12,619

 

 

17,662

 

 

18,198

 

 

48,479

 

Total assets (1)

 

2,692,908

 

 

861,080

 

 

899,296

 

 

4,453,284

 

Average headcount

 

7,368

 

 

4,743

 

 

3,066

 

 

15,177

 

(1) All cash and cash equivalents are included in All Other and Corporate.
(2) Amounts have been reclassified to reflect the segment reorganization announced in the first quarter of 2019.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

   

 

 

June 30, 2019

 

December 31, 2018

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

355,307

 

 

$

378,615

 

Receivables, net of allowance for doubtful accounts

 

2,100,246

 

 

2,162,438

 

Contract assets

 

179,015

 

 

159,635

 

Prepaid expenses and other

 

72,005

 

 

52,386

 

Total current assets

 

2,706,573

 

 

2,753,074

 

 

 

 

 

 

Property and equipment, net

 

222,390

 

 

228,301

 

Right-of-use lease assets

 

262,355

 

 

 

Intangible and other assets

 

1,492,791

 

 

1,446,037

 

Total assets

 

$

4,684,109

 

 

$

4,427,412

 

 

 

 

 

 

Liabilities and stockholders’ investment

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and outstanding checks

 

$

1,122,645

 

 

$

1,063,107

 

Accrued expenses:

 

 

 

 

Compensation

 

92,676

 

 

153,626

 

Transportation expense

 

138,970

 

 

119,820

 

Income taxes

 

25,309

 

 

28,360

 

Other accrued liabilities

 

61,948

 

 

63,410

 

Current lease liabilities

 

54,792

 

 

 

Current portion of debt

 

 

 

5,000

 

Total current liabilities

 

1,496,340

 

 

1,433,323

 

 

 

 

 

 

Long-term debt

 

1,253,849

 

 

1,341,352

 

Noncurrent lease liabilities

 

215,830

 

 

 

Noncurrent income taxes payable

 

22,063

 

 

21,463

 

Deferred tax liability

 

36,344

 

 

35,757

 

Other long-term liabilities

 

372

 

 

430

 

Total liabilities

 

3,024,798

 

 

2,832,325

 

 

 

 

 

 

Total stockholders’ investment

 

1,659,311

 

 

1,595,087

 

Total liabilities and stockholders’ investment

 

$

4,684,109

 

 

$

4,427,412

 

 

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

 

 

 

Six Months Ended June 30,

 

 

2019

 

2018

Operating activities:

 

 

 

 

Net income

 

$

330,968

 

 

$

301,460

 

Depreciation and amortization

 

49,642

 

 

48,479

 

Provision for doubtful accounts

 

3,224

 

 

9,055

 

Stock-based compensation

 

31,807

 

 

44,704

 

Deferred income taxes

 

(5,322

)

 

(9,014

)

Excess tax benefit on stock-based compensation

 

(5,353

)

 

(7,502

)

Other operating activities

 

961

 

 

668

 

Changes in operating elements, net of acquisitions:

 

 

 

 

Receivables

 

89,175

 

 

(214,620

)

Contract assets

 

(19,380

)

 

(34,483

)

Prepaid expenses and other

 

(16,404

)

 

5,326

 

Accounts payable and outstanding checks

 

37,378

 

 

101,770

 

Accrued compensation

 

(60,976

)

 

(7,381

)

Accrued transportation expenses

 

19,149

 

 

45,420

 

Accrued income taxes

 

(3,051

)

 

12,068

 

Other accrued liabilities

 

4,166

 

 

9,277

 

Other assets and liabilities

 

542

 

 

3,243

 

Net cash provided by operating activities

 

456,526

 

 

308,470

 

 

 

 

 

 

Investing activities:

 

 

 

 

Purchases of property and equipment

 

(16,774

)

 

(20,569

)

Purchases and development of software

 

(14,790

)

 

(9,514

)

Acquisitions, net of cash acquired

 

(58,379

)

 

(1,315

)

Other investing activities

 

8

 

 

(1,546

)

Net cash used for investing activities

 

(89,935

)

 

(32,944

)

 

 

 

 

 

Financing activities:

 

 

 

 

Proceeds from stock issued for employee benefit plans

 

27,952

 

 

35,846

 

Net repurchases of common stock

 

(186,302

)

 

(138,390

)

Cash dividends

 

(139,010

)

 

(130,559

)

Proceeds from long-term borrowings

 

473,000

 

 

591,012

 

Payments on long-term borrowings

 

(561,000

)

 

 

Proceeds from short-term borrowings

 

14,000

 

 

2,418,000

 

Payments on short-term borrowings

 

(19,000

)

 

(3,067,000

)

Net cash used for financing activities

 

(390,360

)

 

(291,091

)

Effect of exchange rates on cash

 

461

 

 

(7,750

)

 

 

 

 

 

Net change in cash and cash equivalents

 

(23,308

)

 

(23,315

)

Cash and cash equivalents, beginning of period

 

378,615

 

 

333,890

 

Cash and cash equivalents, end of period

 

$

355,307

 

 

$

310,575

 

 

 

 

 

 

 

 

As of June 30,

Operational Data:

 

2019

 

2018

Employees

 

15,910

 

 

15,357

 

Source: C.H. Robinson
CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20190730006074/en/