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| C.H. Robinson 14701 Charlson Rd. Eden Prairie, MN 55347 www.chrobinson.com
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| FOR INQUIRIES, CONTACT: Chuck Ives, Director of Investor Relations |
FOR IMMEDIATE RELEASE
C.H. Robinson Reports 2020 Fourth Quarter Results
MINNEAPOLIS, MN, January 26, 2021 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended December 31, 2020.
Fourth Quarter Key Metrics:
•Total revenues increased 19.9 percent to $4.5 billion
•Gross profits increased 10.5 percent to $636.1 million
•Adjusted gross profits(1) increased 10.7 percent to $640.6 million
•Income from operations increased 51.2 percent to $206.8 million
•Adjusted operating margin(1) increased 870 basis points to 32.3 percent
•Diluted earnings per share (EPS) increased 47.9 percent to $1.08
•Cash flow from operations decreased 23.4 percent to $162.1 million
Full-Year Key Metrics:
•Total revenues increased 5.9 percent to $16.2 billion
•Gross profits decreased 7.0 percent to $2.4 billion
•Adjusted gross profits(1) decreased 6.7 percent to $2.4 billion
•Income from operations decreased 14.8 percent to $673.3 million
•Adjusted operating margin(1) decreased 260 basis points to 27.9 percent
•Diluted earnings per share (EPS) decreased 11.2 percent to $3.72
•Cash flow from operations decreased 40.2 percent to $499.2 million
(1) Adjusted gross profits and adjusted operating margin are Non-GAAP financial measures. The same factors described in this release that impacted the Non-GAAP measures also impacted the comparable GAAP measures. Refer to page 10 for further discussion and a GAAP to Non-GAAP reconciliation.
“Our fourth quarter was marked by solid performance across our broad service portfolio, continued progress on repricing our truckload business to reflect the changing market conditions, and further advancements in our technology and transformation efforts that are providing meaningful improvements,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. "Our enterprise portfolio that allows us to offer end-to-end solutions for our customers is unique to the logistics industry, and shippers continue to rely on Robinson's global supply chain expertise and our data and scale advantages to ensure critical goods are moved as quickly and as inexpensively as possible."
Fourth Quarter Results Summary
•Total revenues increased 19.9 percent to $4.5 billion, driven primarily by higher pricing and higher volume across most of our service lines.
•Gross profits increased 10.5 percent to $636.1 million. Adjusted gross profits increased 10.7 percent to $640.6 million, primarily driven by higher pricing and higher volume in our Global Forwarding business segment and contributions from the acquisition of Prime Distribution Services ("Prime").
•Operating expenses decreased 1.9 percent to $433.8 million, primarily due to cost savings initiatives. Personnel expenses increased 3.4 percent to $309.3 million, compared to the fourth quarter of 2019, which included a reduction in incentive compensation. Average headcount decreased 4.8 percent, despite headcount additions from Prime that added approximately 2.0 percentage points. Selling, general and administrative (“SG&A”) expenses of $124.5 million decreased 13.0 percent, primarily due to cost savings initiatives including lower travel expenses.
•Income from operations totaled $206.8 million, up 51.2 percent due to the increase in adjusted gross profits. Adjusted operating margin of 32.3 percent increased 870 basis points.
•Interest and other expenses totaled $12.0 million, consisting primarily of $12.3 million of interest expense, which decreased $0.1 million versus last year due to a lower average debt balance. The fourth quarter also included a $1.1 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate in the quarter was 24.1 percent compared to 21.4 percent in the fourth quarter last year. The increase was primarily due to one-time items related to the tax provision in Mexico, which were favorable in the fourth quarter of 2019 and unfavorable in the fourth quarter of 2020.
•Net income totaled $147.8 million, up 49.1 percent from a year ago. Diluted EPS of $1.08 increased 47.9 percent.
Full Year Results Summary
•Total revenues increased 5.9 percent to $16.2 billion, driven primarily by higher pricing in ocean and air services and contributions from the Prime acquisition.
•Gross profits decreased 7.0 percent to $2.4 billion. Adjusted gross profits decreased 6.7 percent to $2.4 billion, primarily driven by lower adjusted gross profit margins in truckload services, partially offset by contributions from the Prime acquisition and higher adjusted gross profits in air and ocean services.
•Operating expenses decreased 3.2 percent to $1.7 billion. Personnel expenses decreased 4.3 percent to $1.2 billion, driven primarily by cost savings initiatives, including a 2.8 percent decrease in average headcount, and a decline in benefits expenses and incentive compensation. SG&A expenses decreased 0.3 percent to $496.1 million, primarily due to significantly lower travel expenses, partially offset by the ongoing expenses from the Prime acquisition.
•Income from operations totaled $673.3 million, down 14.8 percent from last year due to a decline in adjusted gross profits. Adjusted operating margin of 27.9 percent decreased 260 basis points.
•Interest and other expenses totaled $44.9 million, which primarily consists of $49.1 million of interest expense. The twelve-month period also included a $3.3 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate for the full year was 19.4 percent compared to 22.3 percent in the year-ago period. The lower effective tax rate was due primarily to the tax benefit related to stock-based compensation, including delivery of a one-time deferred stock award that was granted to the company's prior Chief Executive Officer in 2000, and due to tax planning initiatives.
•Net income totaled $506.4 million, down 12.2 percent from a year ago. Diluted EPS of $3.72 decreased 11.2 percent.
North American Surface Transportation Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | % change | | 2020 | | 2019 | | % change |
| Total revenues | $ | 3,089,674 | | | $ | 2,788,547 | | | 10.8 | % | | $ | 11,312,553 | | | $ | 11,283,692 | | | 0.3 | % |
Adjusted gross profits(1) | 396,814 | | | 390,641 | | | 1.6 | % | | 1,517,091 | | | 1,797,369 | | | (15.6) | % |
| Income from operations | 150,577 | | | 130,548 | | | 15.3 | % | | 508,475 | | | 722,763 | | | (29.6) | % |
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(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 C.H. Robinson's NAST segment totaled $3.1 billion, an increase of 10.8 percent over the prior year, primarily driven by higher truckload pricing and an increase in less than truckload ("LTL") shipments. NAST adjusted gross profits increased 1.6 percent in the quarter to $396.8 million, with the March 2020 acquisition of Prime contributing 4.0 percentage points of adjusted gross profit growth in the quarter. Adjusted gross profits in truckload decreased 2.1 percent and LTL adjusted gross profits increased 4.0 percent versus the year-ago period. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 29 percent in the quarter, while truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 32.5 percent. Truckload volume declined 3.5 percent in the quarter, and LTL volumes grew 20.0 percent, representing an overall market share gain for NAST in the quarter when compared to a 4 percent increase in industry volumes, as measured by the Cass Freight Index. Operating expenses decreased 5.3 percent primarily due to cost savings initiatives. Income from operations increased 15.3 percent to $150.6 million, and adjusted operating margin expanded 450 basis points to 37.9 percent. NAST average headcount was down 8.4 percent in the quarter, with Prime contributing 4.0 percentage points of growth.
Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | % change | | 2020 | | 2019 | | % change |
| Total revenues | $ | 1,030,364 | | | $ | 600,168 | | | 71.7 | % | | $ | 3,100,525 | | | $ | 2,327,913 | | | 33.2 | % |
Adjusted gross profits(1) | 180,057 | | | 128,989 | | | 39.6 | % | | 628,988 | | | 533,976 | | | 17.8 | % |
| Income from operations | 58,480 | | | 15,030 | | | 289.1 | % | | 175,513 | | | 80,527 | | | 118.0 | % |
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(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 increased 71.7 percent to $1.0 billion, primarily driven by higher pricing in ocean across the industry driven by higher demand and higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Adjusted gross profits increased 39.6 percent in the quarter to $180.1 million. Ocean adjusted gross profits increased 53.1 percent, driven by higher pricing and a 12.0 percent increase in volumes. Adjusted gross profits in air increased 38.3 percent driven by higher pricing, partially offset by a 7.5 percent decline in shipments. Customs adjusted gross profits increased 4.5 percent, primarily driven by an 8.0 percent increase in transaction volume. Operating expenses increased 6.7 percent, primarily driven by increased incentive compensation in personnel expenses and partially offset by cost savings initiatives. Fourth quarter average headcount decreased 4.1 percent. Income from operations increased 289.1 percent to $58.5 million, and adjusted operating margin expanded 2,080 basis points to 32.5 percent in the quarter.
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):
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | % change | | 2020 | | 2019 | | % change |
| Total revenues | $ | 429,414 | | | $ | 404,611 | | | 6.1 | % | | $ | 1,794,028 | | | $ | 1,697,903 | | | 5.7 | % |
Adjusted gross profits(1): | | | | | | | | | | | |
| Robinson Fresh | $ | 23,591 | | | $ | 22,907 | | | 3.0 | % | | $ | 105,700 | | | $ | 109,183 | | | (3.2) | % |
| Managed Services | 24,738 | | | 21,380 | | | 15.7 | % | | 94,828 | | | 83,365 | | | 13.8 | % |
| Other Surface Transportation | 15,378 | | | 14,946 | | | 2.9 | % | | 65,650 | | | 62,417 | | | 5.2 | % |
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(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 3.0 percent to $23.6 million, primarily due to volume growth and margin expansion in our retail vertical. Managed Services adjusted gross profits increased 15.7 percent in the quarter, primarily due to a 27.0 percent increase in volume. Other Surface Transportation adjusted gross profits increased 2.9 percent to $15.4 million. Europe truckload adjusted gross profit was up 1.7 percent in the quarter due to a 7.0 percent volume increase and strength of the Euro.
Other Income Statement Items
The fourth quarter effective tax rate was 24.1 percent, up from 21.4 percent last year. The increase in effective tax rate was due primarily to benefits from foreign tax credits recognized in the fourth quarter of 2019. We expect our 2021 full-year effective tax rate to be 20 to 22 percent.
Interest and other expenses totaled $12.0 million, consisting primarily of $12.3 million of interest expense, which decreased $0.1 million versus last year due to a lower average debt balance. The fourth quarter also included a $1.1 million favorable impact from foreign currency revaluation and realized foreign currency gains and losses.
Diluted weighted average shares outstanding in the quarter were up 0.4 percent due primarily to a higher share price that created a higher dilutive effect from stock options.
Cash Flow Generation and Capital Distribution
Cash from operations totaled $162.1 million in the fourth quarter, compared to $211.6 million in the fourth quarter of 2019. The $49.5 million decrease in cash flow was driven by a $112 million sequential increase in accounts receivable and contract assets that coincided with an increase in gross sales.
In the fourth quarter, $112.8 million was returned to shareholders, with $110.3 million in total repurchases of common stock, as the company resumed its opportunistic share repurchase program in the fourth quarter, and $2.5 million in cash dividends. The quarterly dividend that was declared in the fourth quarter was paid on January 4, 2021 rather than in December, which defers the tax obligation of our shareholders into 2021.
Capital expenditures totaled $13.7 million in the quarter and $54.0 million for 2020. Capital expenditures for 2021 are expected to be $55 million to $65 million, with the majority dedicated to technology.
Outlook
“Due to several factors, including shortages in the number of drivers and available carrier capacity, freight markets remain tight, and we anticipate this will continue for much of 2021. We're committed to creating better outcomes for our customers and carriers, by delivering industry leading technology that is built by and for supply chain experts and by leveraging our broad service portfolio and our unmatched combination of experience, scale and information advantage to meet their ever-changing needs,” Biesterfeld stated. "We're also firmly committed to the focus areas of our investors, including profitable market share growth, investing in technology to unlock growth and efficiency, being a responsible corporate citizen, and driving the transformation of C.H. Robinson, so that we can deliver industry-leading margins and enhance shareholder value."
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 $21 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our 105,000 customers and 73,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).
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; changes due to catastrophic events including pandemics such as COVID-19; 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 Fourth Quarter 2020 Earnings Conference Call
Wednesday, January 27, 2021; 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 [email protected].
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 have revenues from multiple service lines.
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | % change | | 2020 | | 2019 | | % change |
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Adjusted gross profits(1): | | | | | | | | | | | |
| Transportation | | | | | | | | | | | |
| Truckload | $ | 277,509 | | | $ | 281,544 | | | (1.4) | % | | $ | 1,071,873 | | | $ | 1,348,878 | | | (20.5) | % |
| LTL | 117,864 | | | 113,605 | | | 3.7 | % | | 457,290 | | | 477,348 | | | (4.2) | % |
| Ocean | 112,412 | | | 73,483 | | | 53.0 | % | | 350,094 | | | 308,367 | | | 13.5 | % |
| Air | 35,723 | | | 25,940 | | | 37.7 | % | | 151,443 | | | 106,777 | | | 41.8 | % |
| Customs | 23,977 | | | 22,925 | | | 4.6 | % | | 87,095 | | | 91,828 | | | (5.2) | % |
| Other logistics services | 51,113 | | | 39,708 | | | 28.7 | % | | 195,159 | | | 149,664 | | | 30.4 | % |
| Total transportation | 618,598 | | | 557,205 | | | 11.0 | % | | 2,312,954 | | | 2,482,862 | | | (6.8) | % |
| Sourcing | 21,980 | | | 21,658 | | | 1.5 | % | | 99,303 | | | 103,448 | | | (4.0) | % |
| Total adjusted gross profits | 640,578 | | | 578,863 | | | 10.7 | % | | 2,412,257 | | | 2,586,310 | | | (6.7) | % |
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(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):
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| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | 2020 | | 2019 |
| Revenues: | | | | | | | |
| Transportation | $ | 4,311,852 | | | $ | 3,570,405 | | | $ | 15,147,562 | | | $ | 14,322,295 | |
| Sourcing | 237,600 | | | 222,921 | | | 1,059,544 | | | 987,213 | |
| Total revenues | 4,549,452 | | | 3,793,326 | | | 16,207,106 | | | 15,309,508 | |
| Costs and expenses: | | | | | | | |
| Purchased transportation and related services | 3,693,254 | | | 3,013,200 | | | 12,834,608 | | | 11,839,433 | |
| Purchased products sourced for resale | 215,620 | | | 201,263 | | | 960,241 | | | 883,765 | |
| Direct internally developed software amortization | 4,510 | | | 3,366 | | | 16,634 | | | 11,492 | |
| Total direct expenses | 3,913,384 | | | 3,217,829 | | | 13,811,483 | | | 12,734,690 | |
| Gross profit | $ | 636,068 | | | $ | 575,497 | | | $ | 2,395,623 | | | $ | 2,574,818 | |
| Plus: Direct internally developed software amortization | 4,510 | | | 3,366 | | | 16,634 | | | 11,492 | |
| Adjusted gross profit | $ | 640,578 | | | $ | 578,863 | | | $ | 2,412,257 | | | $ | 2,586,310 | |
Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profit which we consider a primary performance metric as discussed above. The comparison of operating margin to adjusted operating margin is presented below:
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| 2020 | | 2019 | | 2020 | | 2019 |
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| Total Revenues | $ | 4,549,452 | | | $ | 3,793,326 | | | $ | 16,207,106 | | | $ | 15,309,508 | |
| Operating income | 206,802 | | | 136,806 | | | 673,268 | | | 789,976 | |
| Operating margin | 4.5 | % | | 3.6 | % | | 4.2 | % | | 5.2 | % |
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| Adjusted gross profit | $ | 640,578 | | | $ | 578,863 | | | $ | 2,412,257 | | | $ | 2,586,310 | |
| Operating income | 206,802 | | | 136,806 | | | 673,268 | | | 789,976 | |
| Adjusted operating margin | 32.3 | % | | 23.6 | % | | 27.9 | % | | 30.5 | % |
Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share data)
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| Three Months Ended December 31, | | Twelve Months Ended December 31, |
| |
| 2020 | | 2019 | | 2020 | | 2019 |
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| Revenues: | | | | | | | |
| Transportation | $ | 4,311,852 | | | $ | 3,570,405 | | | $ | 15,147,562 | | | $ | 14,322,295 | |
| Sourcing | 237,600 | | | 222,921 | | | 1,059,544 | | | 987,213 | |
| Total revenues | 4,549,452 | | | 3,793,326 | | | 16,207,106 | | | 15,309,508 | |
| Costs and expenses: | | | | | | | |
| Purchased transportation and related services | 3,693,254 | | | 3,013,200 | | | 12,834,608 | | | 11,839,433 | |
| Purchased products sourced for resale | 215,620 | | | 201,263 | | | 960,241 | | | 883,765 | |
| Personnel expenses | 309,260 | | | 298,981 | | | 1,242,867 | | | 1,298,528 | |
| Other selling, general, and administrative expenses | 124,516 | | | 143,076 | | | 496,122 | | | 497,806 | |
| Total costs and expenses | 4,342,650 | | | 3,656,520 | | | 15,533,838 | | | 14,519,532 | |
| Income from operations | 206,802 | | | 136,806 | | | 673,268 | | | 789,976 | |
| Interest and other expense | (12,033) | | | (10,784) | | | (44,937) | | | (47,719) | |
| Income before provision for income taxes | 194,769 | | | 126,022 | | | 628,331 | | | 742,257 | |
| Provision for income taxes | 46,962 | | | 26,916 | | | 121,910 | | | 165,289 | |
| Net income | $ | 147,807 | | | $ | 99,106 | | | $ | 506,421 | | | $ | 576,968 | |
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| Net income per share (basic) | $ | 1.09 | | | $ | 0.73 | | | $ | 3.74 | | | $ | 4.21 | |
| Net income per share (diluted) | $ | 1.08 | | | $ | 0.73 | | | $ | 3.72 | | | $ | 4.19 | |
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| Weighted average shares outstanding (basic) | 135,970 | | | 135,997 | | | 135,532 | | | 136,955 | |
| Weighted average shares outstanding (diluted) | 137,176 | | | 136,621 | | | 136,173 | | | 137,735 | |
Business Segment Information
(unaudited, in thousands, except average headcount)
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| | NAST | | Global Forwarding | | | All Other and Corporate | | | | Consolidated |
| Three Months Ended December 31, 2020 | | | | | | | | | | | |
| Total revenues | | $ | 3,089,674 | | | $ | 1,030,364 | | | | $ | 429,414 | | | | | $ | 4,549,452 | |
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Adjusted gross profits(1) | | 396,814 | | | 180,057 | | | | 63,707 | | | | | 640,578 | |
| Income (loss) from operations | | 150,577 | | | 58,480 | | | | (2,255) | | | | | 206,802 | |
| Depreciation and amortization | | 5,764 | | | 6,810 | | | | 12,086 | | | | | 24,660 | |
Total assets (2) | | 2,946,409 | | | 1,392,411 | | | | 805,438 | | | | | 5,144,258 | |
| Average headcount | | 6,555 | | | 4,626 | | | | 3,610 | | | | | 14,791 | |
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| | NAST | | Global Forwarding | | | All Other and Corporate | | | | Consolidated |
| Three Months Ended December 31, 2019 | | | | | | | | | | | |
| Total revenues | | $ | 2,788,547 | | | $ | 600,168 | | | | $ | 404,611 | | | | | $ | 3,793,326 | |
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Adjusted gross profits(1) | | 390,641 | | | 128,989 | | | | 59,233 | | | | | 578,863 | |
| Income (loss) from operations | | 130,548 | | | 15,030 | | | | (8,772) | | | | | 136,806 | |
| Depreciation and amortization | | 6,384 | | | 9,293 | | | | 9,650 | | | | | 25,327 | |
Total assets (2) | | 2,550,010 | | | 1,021,592 | | | | 1,069,458 | | | | | 4,641,060 | |
| Average headcount | | 7,154 | | | 4,824 | | | | 3,562 | | | | | 15,540 | |
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(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 headcount)
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| | NAST | | Global Forwarding | | All Other and Corporate | | | | Consolidated |
| Twelve Months Ended December 31, 2020 | | | | | | | | | | |
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| Total revenues | | $ | 11,312,553 | | | $ | 3,100,525 | | | $ | 1,794,028 | | | | | $ | 16,207,106 | |
Adjusted gross profits(1) | | 1,517,091 | | | 628,988 | | | 266,178 | | | | | 2,412,257 | |
| Income (loss) from operations | | 508,475 | | | 175,513 | | | (10,720) | | | | | 673,268 | |
| Depreciation and amortization | | 25,314 | | | 34,550 | | | 41,863 | | | | | 101,727 | |
Total assets (2) | | 2,946,409 | | | 1,392,411 | | | 805,438 | | | | | 5,144,258 | |
| Average headcount | | 6,811 | | | 4,708 | | | 3,600 | | | | | 15,119 | |
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| | NAST | | Global Forwarding | | All Other and Corporate | | | | Consolidated |
| Twelve Months Ended December 31, 2019 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total revenues | | $ | 11,283,692 | | | $ | 2,327,913 | | | $ | 1,697,903 | | | | | $ | 15,309,508 | |
Adjusted gross profits(1) | | 1,797,369 | | | 533,976 | | | 254,965 | | | | | 2,586,310 | |
| Income (loss) from operations | | 722,763 | | | 80,527 | | | (13,314) | | | | | 789,976 | |
| Depreciation and amortization | | 24,508 | | | 36,720 | | | 39,221 | | | | | 100,449 | |
Total assets (2) | | 2,550,010 | | | 1,021,592 | | | 1,069,458 | | | | | 4,641,060 | |
| Average headcount | | 7,354 | | | 4,766 | | | 3,431 | | | | | 15,551 | |
____________________________________________
(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, 2020 | | December 31, 2019 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 243,796 | | | $ | 447,858 | |
| Receivables, net of allowance for credit loss | 2,449,577 | | | 1,974,381 | |
| Contract assets, net of allowance for credit loss | 197,176 | | | 132,874 | |
| Prepaid expenses and other | 51,152 | | | 85,005 | |
| Total current assets | 2,941,701 | | | 2,640,118 | |
| | | | |
| Property and equipment, net | 178,949 | | | 208,423 | |
| Right-of-use lease assets | 319,785 | | | 310,860 | |
| Intangible and other assets | 1,703,823 | | | 1,481,659 | |
| Total assets | $ | 5,144,258 | | | $ | 4,641,060 | |
| | | |
| Liabilities and stockholders’ investment | | | |
| Current liabilities: | | | |
| Accounts payable and outstanding checks | $ | 1,283,364 | | | $ | 1,062,835 | |
| Accrued expenses: | | | |
| Compensation | 138,460 | | | 112,784 | |
| Transportation expense | 153,574 | | | 101,194 | |
| Income taxes | 43,700 | | | 12,354 | |
| Other accrued liabilities | 154,460 | | | 62,706 | |
| Current lease liabilities | 66,174 | | | 61,280 | |
| Current portion of debt | — | | | 142,885 | |
| Total current liabilities | 1,839,732 | | | 1,556,038 | |
| | | |
| Long-term debt | 1,093,301 | | | 1,092,448 | |
| Noncurrent lease liabilities | 268,572 | | | 259,444 | |
| Noncurrent income taxes payable | 26,015 | | | 22,354 | |
| Deferred tax liabilities | 22,182 | | | 39,776 | |
| Other long-term liabilities | 14,523 | | | 270 | |
| Total liabilities | 3,264,325 | | | 2,970,330 | |
| | | |
| Total stockholders’ investment | 1,879,933 | | | 1,670,730 | |
| Total liabilities and stockholders’ investment | $ | 5,144,258 | | | $ | 4,641,060 | |
Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)
| | | | | | | | | | | |
| Twelve Months Ended December 31, |
| 2020 | | 2019 |
| Operating activities: | | | |
| Net income | $ | 506,421 | | | $ | 576,968 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | 101,727 | | | 100,449 | |
| Provision for credit losses | 17,281 | | | 5,853 | |
| Stock-based compensation | 43,995 | | | 39,083 | |
| Deferred income taxes | (32,984) | | | (2,407) | |
| Excess tax benefit on stock-based compensation | (17,581) | | | (8,492) | |
| Other operating activities | 15,096 | | | (3,830) | |
| Changes in operating elements, net of acquisitions: | | | |
| Receivables | (452,145) | | | 208,312 | |
| Contract assets | (65,454) | | | 26,761 | |
| Prepaid expenses and other | 27,237 | | | (29,871) | |
| Accounts payable and outstanding checks | 180,272 | | | (17,968) | |
| Accrued compensation | 22,547 | | | (40,757) | |
| Accrued transportation expenses | 52,380 | | | (18,626) | |
| Accrued income taxes | 51,916 | | | (12,636) | |
| Other accrued liabilities | 26,503 | | | 8,937 | |
| Other assets and liabilities | 21,980 | | | 3,643 | |
| Net cash provided by operating activities | 499,191 | | | 835,419 | |
| | | |
| Investing activities: | | | |
| Purchases of property and equipment | (23,133) | | | (36,290) | |
| Purchases and development of software | (30,876) | | | (34,175) | |
| Acquisitions, net of cash acquired | (223,230) | | | (59,200) | |
| Other investing activities | 5,525 | | | 16,636 | |
| Net cash used for investing activities | (271,714) | | | (113,029) | |
| | | |
| Financing activities: | | | |
| Proceeds from stock issued for employee benefit plans | 107,657 | | | 63,092 | |
| Total repurchases of common stock | (195,368) | | | (324,559) | |
| Cash dividends | (209,956) | | | (277,786) | |
| Proceeds from long-term borrowings | — | | | 1,298,000 | |
| Payments on long-term borrowings | — | | | (1,505,000) | |
| Proceeds from short-term borrowings | 1,436,600 | | | 185,000 | |
| Payments on short-term borrowings | (1,579,600) | | | (90,000) | |
| Net cash used for financing activities | (440,667) | | | (651,253) | |
| Effect of exchange rates on cash | 9,128 | | | (1,894) | |
| | | |
| Net change in cash and cash equivalents | (204,062) | | | 69,243 | |
| Cash and cash equivalents, beginning of period | 447,858 | | | 378,615 | |
| Cash and cash equivalents, end of period | $ | 243,796 | | | $ | 447,858 | |
| | | |
| As of December 31, |
| Operational Data: | 2020 | | 2019 |
| Employees | 14,888 | | | 15,427 | |
Source: C.H. Robinson
CHRW-IR
