Attached files
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| 8-K - FORM 8-K - C. H. ROBINSON WORLDWIDE, INC. | d292695d8k.htm |
| EX-99.1 - PRESS RELEASE DATED JANUARY 31, 2012 - C. H. ROBINSON WORLDWIDE, INC. | d292695dex991.htm |
 Earnings Conference Call –
Fourth Quarter 2011
January 31, 2012
John Wiehoff, Chairman & CEO
Chad Lindbloom, CFO
Angie Freeman, VP Investor Relations
Exhibit 99.2 |
 2
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-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; and the impact of war on the economy; and other risks and
uncertainties detailed in our Annual and Quarterly Reports.
|
 3
Q4 & YTD 2012 Results
2011
2010
% Change
2011
2010
% Change
Total revenues
$2,568,284
$2,325,349
10.4%
$10,336,346
$9,274,305
11.5%
Total net revenues
$401,385
$388,164
3.4%
$1,632,658
$1,467,978
11.2%
Income from operations
$171,955
$164,065
4.8%
$692,730
$622,860
11.2%
Net income
$109,214
$103,161
5.9%
$431,612
$387,026
11.5%
Earnings per share
(diluted)
$0.67
$0.62
8.1%
$2.62
$2.33
12.4%
Three months ended December 31
Twelve months ended December 31
In thousands, except per share amounts
•
Active customers in 2011: approximately 37,000, compared to 36,000 in 2010
•
Active carriers in 2011: approximately 53,000, compared to 49,000 in 2010
•
Approximately 10.0 million shipments in 2011, up from 9.2 million in 2010
|
 4
Transportation Results Q4 2011
•
Volumes up in nearly all services in Q4.
•
Pricing changes varied by service line.
•
Consolidated transportation net revenue margin declined in the quarter, due in
part to fuel impact.
•
Transportation margin fluctuations driven by fuel, supply and demand, account
management strategies, and mix.
2011
2010
% Change
2011
2010
% Change
Total revenues
$2,200,258
$1,946,325
13.0%
$8,740,524
$7,575,659
15.4%
Total net revenues
$358,672
$341,773
4.9%
$1,443,916
$1,273,129
13.4%
Net revenue margin
16.3%
17.6%
-7.2%
16.5%
16.8%
-1.7%
Three months ended December 31
Twelve months ended December 31
TRANSPORTATION in thousands
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Q1
17.5%
17.7%
17.8%
16.8%
17.4%
18.3%
20.2%
18.2%
22.6%
17.4%
Q2
16.9%
16.1%
15.9%
15.4%
16.3%
17.1%
17.9%
15.4%
20.6%
15.8%
Q3
16.6%
15.6%
16.0%
15.9%
16.3%
17.5%
18.0%
15.9%
19.8%
16.6%
Q4
16.0%
16.2%
15.8%
16.0%
15.7%
18.3%
17.7%
19.0%
18.3%
17.6%
TRANSPORTATION MARGIN PERCENTAGE
2011
17.2%
16.2%
16.4%
16.3% |
 5
Truck Results Q4 2011
2011
2010
% Change
2011
2010
% Change
$306,443
$290,465
5.5%
$1,236,611
$1,076,247
14.9%
Three months ended December 31
Twelve months ended December 31
TRUCK NET REVENUES in thousands
Quarter
Year to Date
Volume
7%
5%
Pricing *
3%
5%
Net revenue margin
TRUCKLOAD
Quarter
Year to Date
Volume
14%
15%
Pricing
Net revenue margin
LTL
Year over year change
Year over year change
*Excluding estimated impact of fuel
•
Truckload net revenue growth was driven by volume growth, partially offset by
decreased net revenue margin.
•
Decline in Truckload net revenue margin due to the higher cost of fuel and cost per
mile rising faster than price per mile.
•
Less-than-Truckload (LTL) net revenue growth was driven primarily by
increased volumes and increased pricing, offset partially by a decreased net
revenue margin. |
 6
Intermodal Results Q4 2011
•
Net
revenue
growth
was
driven
by
volume
growth,
partially
offset
by
decreased
net
revenue
margin.
•
Net revenue margin decline due to changing mix of business.
•
We are achieving our operational and service metric goals with committed and
pooled equipment.
2011
2010
% Change
2011
2010
% Change
$10,189
$9,441
7.9%
$41,189
$36,550
12.7%
Three months ended Dec. 31
Twelve months ended Dec. 31
INTERMODAL NET REVENUES in thousands
Year over year change
Volume
Pricing
Net revenue margin
Quarter
Year to Date |
 7
Ocean & Air Results Q4 2011
•
Ocean net revenue growth was driven by increased volumes, largely offset by
decreased pricing.
•
Air net revenue decline was driven by decreased volumes, pricing, and net revenue
margin compression.
•
Significant volume and price volatility.
2011
2010
% Change
2011
2010
% Change
Ocean
$17,022
$16,714
1.8%
$66,873
$60,763
10.1%
Air
$8,811
$10,756
-18.1%
$39,371
$42,315
-7.0%
Three months ended Dec. 31
Twelve months ended Dec. 31
NET REVENUES in thousands
Quarter
Year to Date
Volume
Pricing
Net revenue margin
OCEAN
Quarter
Year to Date
Volume
Pricing
Net revenue margin
AIR
Year over year change
Year over year change |
 8
Other Logistics Services Results Q4 2011
•
Other Logistics Services includes Transportation Management Fees, Customs,
Warehousing, and Small Parcel.
•
Net revenue growth primarily due to increases in our management fee and customs
services. •
Integrated, outsourced logistics arrangements, including fee-based services,
are providing continued growth in Other Logistics Services.
2011
2010
% Change
2011
2010
% Change
$16,207
$14,397
12.6%
$59,872
$57,254
4.6%
Three months ended Dec. 31
Twelve months ended Dec. 31
NET REVENUES in thousands
|
 9
Sourcing Results Q4 2011
•
Sourcing net revenues continue to be impacted by change in product and customer
mix. •
Volume growth offset by decreased net revenue margin.
2011
2010
% Change
2011
2010
% Change
Total revenues
$352,744
$364,337
-3.2%
$1,535,528
$1,643,174
-6.6%
Total net revenues
$27,431
$31,704
-13.5%
$128,448
$139,377
-7.8%
Net revenue margin
7.8%
8.7%
-10.6%
8.4%
8.5%
-1.4%
Three months ended Dec. 31
Twelve months ended Dec. 31
SOURCING in thousands |
 10
Payment Services Results Q4 2011
•
Volume
growth
was
driven
by
increase
in
MasterCard
®
and
other
fuel
card
services.
•
Increased fees were driven by higher fuel prices and changes to merchant
agreements. 2011
2010
% Change
2011
2010
% Change
$15,282
$14,687
4.1%
$60,294
$55,472
8.7%
Three months ended Dec. 31
Twelve months ended Dec. 31
PAYMENT SERVICES Net Revenues in thousands
Quarter
Year to Date
Volume
Pricing
Year over year change |
 11
Summarized Income Statement
2011
2010
% Change
2011
2010
% Change
Total net revenues
$401,385
$388,164
3.4%
$1,632,658
$1,467,978
11.2%
Operating expenses:
Personnel expenses
$164,062
$169,271
-3.1%
$696,233
$632,064
10.2%
Percent of net revenues
40.9%
43.6%
42.6%
43.1%
Other operating expenses
$65,368
$54,828
19.2%
$243,695
$213,054
14.4%
Percent of net revenues
16.3%
14.1%
14.9%
14.5%
Total Operating expenses
$229,430
$224,099
2.4%
$939,928
$845,118
11.2%
Income from Operations
$171,955
$164,065
4.8%
$692,730
$622,860
11.2%
Percent of net revenues
42.8%
42.3%
42.4%
42.4%
Three months ended December 31
Twelve months ended December 31
In thousands, except per share amounts
•
Overall, operating expense growth was in line with growth of business.
•
For the quarter, personnel expense decreased compared to last year and decreased
as a percentage of net revenues. This decrease was driven by a reduction in
certain incentive compensation plans that are based on growth in earnings,
including our restricted stock program.
•
Other operating expense growth was driven by an increase in claims, travel,
temporary services,
depreciation,
and
amortization
of
internally
developed
software. |
 12
2011
2010
% Change
2011
2010
% Change
Net cash provided by
operating activities
$136,157
$207,643
-34.4%
$429,712
$344,779
24.6%
Capital expenditures, net
$23,725
$6,962
240.8%
$52,806
$28,677
84.1%
Three months ended Dec. 31
Twelve months ended Dec. 31
Quarter
Year to Date
Shares repurchased
1,259,369
3,540,171
Average price per
share
$67.84
$69.75
Total cost of shares
repurchased
$85,436,299
$246,934,597
Dec. 31, 2011
Cash & investments
$373,669
Current assets
$1,611,543
Total assets
$2,138,041
Current liabilities
$876,632
Stockholder’s equity
$1,248,474
Long term debt
$0
CASH FLOW DATA
2011
BALANCE SHEET DATA
REPURCHASES OF COMMON STOCK
Other Financial Information
In thousands, except per share amounts |
 13
Long Term Growth Strategy
•
Our goal is a long term average growth rate of 15% for Net Revenue,
Operating Income, and Diluted EPS.
•
Our strategies for reaching that long-term goal include:
•
Taking market share
•
Adding new supply chain services to our portfolio
•
Expanding our global network
•
Despite our size in our industry, our market share is still small. We have
significant available market share opportunity.
•
Supply chain trends, globalization, and increased volatility driving growing
demand for our service model. |
 14
Historical Financial Summary
Operating Results (in 000’s) (1)
Percent Change (1)
Percent of Net
Revenue (1)
(1)
Excludes special dividends and distributions related to our initial public offering
in October 1997. Period
Gross
Revenue
Net
Revenue
Total
Expense
Operating
Income
Diluted
EPS
Net
Revenue
Operating
Income
Diluted
EPS
Operating
Income
1996
$1,605,905
$179,069
$129,040
$50,029
$0.19
11.9%
11.2%
11.8%
27.9%
1997
$1,790,785
$206,020
$149,285
$56,735
$0.22
15.1%
13.4%
15.8%
27.5%
1998
$2,038,139
$245,666
$177,223
$68,443
$0.26
19.2%
20.6%
18.2%
27.9%
1999
$2,261,027
$293,283
$209,445
$83,828
$0.32
19.4%
22.5%
23.1%
28.6%
2000
$2,822,175
$419,343
$305,791
$113,552
$0.40
43.0%
35.5%
25.0%
27.1%
2001
$3,090,072
$456,572
$328,170
$128,402
$0.47
8.9%
13.1%
17.5%
28.1%
2002
$3,294,473
$483,778
$334,846
$148,932
$0.52
6.0%
16.0%
10.6%
30.8%
2003
$3,613,645
$544,848
$368,802
$176,046
$0.62
12.6%
18.2%
19.2%
32.3%
2004
$4,341,538
$660,991
$438,223
$222,768
$0.79
21.3%
26.5%
27.4%
33.7%
2005
$5,688,948
$879,750
$553,389
$326,361
$1.16
33.1%
46.5%
46.8%
37.1%
2006
$6,556,194
$1,082,544
$664,699
$417,845
$1.53
23.1%
28.0%
31.9%
38.6%
2007
$7,316,223
$1,243,778
$734,094
$509,684
$1.86
14.9%
22.0%
21.6%
41.0%
2008
$8,578,614
$1,374,963
$803,377
$571,586
$2.08
10.5%
12.1%
11.8%
41.6%
2009
$7,577,189
$1,381,959
$797,148
$584,811
$2.13
0.5%
2.3%
2.4%
42.3%
2010
$9,274,305
$1,467,978
$845,118
$622,860
$2.33
6.2%
6.5%
9.4%
42.4%
2011
$10,336,346
$1,632,658
$939,928
$692,730
$2.62
11.2%
11.2%
12.4%
42.4%
CAGR
Gross Revenue
Net Revenue
Total Expense
Operating Income
Diluted EPS
5yr 06-11
9.5%
8.6%
7.2%
10.6%
11.4%
10yr 01-11
12.8%
13.6%
11.1%
18.4%
18.7%
15yr 96-11
13.2%
15.9%
14.2%
19.1%
19.1% |
 15
2012 Comments
•
Through January 30:
•
North American Truckload volume growth per business day was
approximately 7%
•
Total net revenue growth per business day was approximately 6%
•
We are hiring, investing heavily in training and our people.
•
We are aggressively selling and developing our relationships.
•
We continue to make significant investments in our IT capabilities.
•
Our scale and financial stability continue to be important advantages.
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