C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW)
today reported financial results for the quarter ended December 31,
2024.
Fourth Quarter
Highlights:
- Significant year-over-year increase in profitability, driven
by disciplined execution, a focus on quality of volume, and
improvement in gross profit margin, productivity and operating
leverage
- Gross profits increased 10.4% to $672.9 million
- Income from operations increased 71.1% to $183.8 million
- Adjusted operating margin(1) increased 940 basis points to
26.8%
- Adjusted operating margin, excluding restructuring and loss on
divestiture(1), increased 1,020 basis points to 26.9%
- Diluted earnings per share (EPS) increased 369.2% to $1.22
- Adjusted EPS(1) increased 142.0% to $1.21
- Cash generated by operations increased by $220.6 million to
$267.9 million
Full-Year Key Metrics:
- Gross profits increased 5.8% to $2.7 billion
- Income from operations increased 30.0% to $669.1 million
- Adjusted operating margin(1) increased 440 basis points to
24.2%
- Adjusted operating margin, excluding restructuring and loss on
divestiture(1), increased 630 basis points to 27.5%
- Diluted EPS increased 41.9% to $3.86
- Adjusted EPS(1) increased 36.7% to $4.51
- Cash generated by operations decreased by $222.9 million to
$509.1 million, due to an increase in net operating working capital
related to higher ocean rates
(1) Adjusted operating margin, adjusted
operating margin, excluding restructuring and loss on divestiture,
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 12
through 14 for further discussion and GAAP to Non-GAAP
Reconciliations.
"We’ve talked extensively over the past year about our new
Robinson operating model and the disciplined execution that the
model is enabling, as well as how we’re leveraging our industry
leading talent and technology to raise the bar in logistics," said
President and Chief Executive Officer, Dave Bozeman. "The benefits
of these efforts were never more evident than in the significant
year-over-year improvement in our fourth quarter financial
results."
"In what continues to be a historically prolonged freight
recession, with market growth in 2024 that did not materialize as
had been projected, the difference in our execution versus last
year is stark. Our people are embracing the discipline needed to
generate higher highs and higher lows across market cycles,
resulting in a higher quality of volume, greater productivity, and
an expansion of our gross profit and operating profit margins."
"In a trucking environment where the cost of purchased
transportation increased in the fourth quarter due to a decline in
industry capacity, our dynamic costing and pricing tools, our
revenue management practices and our cost of hire advantage enabled
us to provide greater value to our customers, and at the same time,
improve our NAST gross profit margin both year-over-year and
sequentially," said Bozeman.
"In our Global Forwarding business, the team has debunked the
thesis that C.H. Robinson couldn’t continue to improve productivity
when volumes are growing," Bozeman added. "Throughout 2024, I've
been impressed with and highly appreciative of the team, as they
continued to be nimble and highly engaged with our customers to
help them navigate various market disruptions and to provide
differentiated service and solutions. As a result, our ocean and
air shipments grew each quarter on a year-over-year basis, and each
grew more than 5% for the full year. Through improvements in
process standardization and automation and embracing the rigor of
our operating model, the forwarding team decoupled headcount growth
from volume growth, reduced their average headcount for the year
more than 10%, and achieved productivity improvement of greater
than 15% for the full year."
"Over the two-year period of 2023 and 2024, we delivered
compounded productivity growth of 30% or more in both Global
Forwarding and NAST. As we said at our Investor Day in December, we
view our productivity as evergreen improvements that we do not
expect to give back. Enabled by the operating model disciplines and
tools that are being applied across our company, we expect to
further advance our productivity as we grow our businesses,
including both NAST and Global Forwarding. The productivity
improvements have lowered our cost to serve and increased our
operating leverage. Combined with our expanded gross margins, this
resulted in a 79% increase in our fourth quarter adjusted income
from operations."
"As I reflect on the noteworthy progress that we made in 2024,
I’d like to thank the Robinson team for all the work they’ve put in
to get to this point. I don’t take their efforts and dedication for
granted, and I commend them for helping us get more fit, fast and
focused and for embracing the discipline that the new operating
model demands. On my first earnings call in August of 2023, I said
that I looked forward to leading this great company to new heights
and sharing our progress with all of you along our journey. While
there’s still more grass to cut, I believe we’re on the right path,
and I’m pleased with the progress we’ve made on evolving our
strategy and improving our execution by instilling discipline with
our new operating model," Bozeman concluded.
Summary of Fourth Quarter of 2024
Results Compared to the Fourth Quarter of 2023
- Total revenues decreased 0.9% to $4.2 billion, primarily
driven by lower volume and pricing in truckload services, partially
offset by higher pricing in our ocean services.
- Gross profits increased 10.4% to $672.9 million.
Adjusted gross profits increased 10.7% to $684.6 million,
primarily driven by higher adjusted gross profit per transaction in
our truckload and ocean services.
- Operating expenses decreased 2.0% to $500.8 million.
Personnel expenses decreased 2.1% to $354.4 million,
primarily due to cost optimization efforts and productivity
improvements, partially offset by higher variable compensation.
Average employee headcount declined 9.5%. Other selling, general
and administrative (“SG&A”) expenses decreased 2.0% to
$146.4 million, primarily due to a $12.6 million favorable
adjustment to the loss on the planned divestiture of our Europe
Surface Transportation business, which was partially offset by
impairments related to reducing our facilities footprint.
- Income from operations totaled $183.8 million, up 71.1%
due to both the increase in adjusted gross profit and decrease in
operating expenses. Adjusted operating margin(1) of 26.8%
increased 940 basis points.
- Interest and other income/expense, net totaled $15.4
million of expense, consisting primarily of $18.8 million of
interest expense, which decreased $2.8 million versus last year due
to a lower average debt balance and lower variable interest rates,
and a $3.3 million net gain from foreign currency revaluation and
realized foreign currency gains and losses.
- The effective tax rate in the quarter was 11.4%,
compared to 55.3% in the fourth quarter of 2023. The lower rate in
the fourth quarter of 2024 was driven by the impact of
non-recurring discrete items, higher U.S. tax credits, and
increased tax benefit related to stock-based compensation,
partially offset by lower foreign tax credits.
- Net income totaled $149.3 million, up 382.1% from a year
ago. Diluted EPS of $1.22 increased 369.2%. Adjusted
EPS(1) of $1.21 increased 142.0%.
(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 12 through 14 for
further discussion and GAAP to Non-GAAP Reconciliations.
Summary of 2024 Year-to-Date Results
Compared to 2023
- Total revenues increased 0.7% to $17.7 billion,
primarily driven by higher pricing and volume in our ocean
services, partially offset by lower pricing and volume in our
truckload services.
- Gross profits increased 5.8% to $2.7 billion.
Adjusted gross profits increased 6.2% to $2.8 billion,
primarily driven by higher adjusted gross profit per transaction in
our truckload and ocean services.
- Operating expenses increased 0.3% to $2.1 billion.
Personnel expenses decreased 0.6% to $1.5 billion, primarily
due to cost optimization efforts and productivity improvements,
partially offset by higher variable compensation and higher
restructuring charges related to workforce reductions. Average
employee headcount declined 10.3%. Other SG&A expenses
increased 2.5% to $639.6 million primarily due to a $44.5 million
loss on the planned divestiture of our Europe Surface
Transportation business. The prior year included $19.6 million of
restructuring expenses, primarily related to the divestiture of our
operations in Argentina. In addition, other SG&A expenses
decreased across several expense categories in 2024.
- Income from operations totaled $669.1 million, up 30.0%
from last year, due to the increase in adjusted gross profits,
partially offset by the increase in operating expenses. Adjusted
operating margin(1) of 24.2% increased 440 basis points.
- Interest and other income/expense, net totaled $89.9
million of expense, primarily consisting of $85.9 million of
interest expense, which decreased $4.3 million versus last year,
due to a lower average debt balance. The year-to-date results also
include a $7.4 million net loss from foreign currency revaluation
and realized foreign currency gains and losses.
- The effective tax rate for the full year ended December
31, 2024 was 19.6% compared to 20.5% in the year-ago period. The
lower rate in 2024 was driven by the impact of non-recurring
discrete items and higher U.S. tax credits, partially offset by
higher pre-tax income and lower foreign tax credits.
- Net income totaled $465.7 million, up 43.2% from a year
ago. Diluted EPS of $3.86 increased 41.9%. Adjusted
EPS(1) of $4.51 increased 36.7%.
(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 12 through 14 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,
2024
2023
% change
2024
2023
% change
Total revenues
$
2,802,700
$
3,000,650
(6.6
)%
$
11,727,539
$
12,471,075
(6.0
)%
Adjusted gross profits(1)
403,764
380,157
6.2
%
1,641,195
1,593,854
3.0
%
Income from operations
132,528
95,958
38.1
%
531,292
459,960
15.5
%
____________________________________________
(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.
Fourth quarter total revenues for the NAST segment totaled $2.8
billion, a decrease of 6.6% over the prior year, primarily driven
by lower truckload volume and pricing, reflecting an oversupply of
truckload capacity compared to freight demand. NAST adjusted gross
profits increased 6.2% in the quarter to $403.8 million. Adjusted
gross profits in truckload increased 9.5% due to a 17.0% increase
in adjusted gross profit per shipment, partially offset by a 6.5%
decrease in truckload shipments. Our average truckload linehaul
rate per mile charged to our customers, which excludes fuel
surcharges, increased approximately 6.0% in the quarter compared to
the prior year, while truckload linehaul cost per mile, excluding
fuel surcharges, increased 4.0%, resulting in an 18.0% increase in
truckload adjusted gross profit per mile. LTL adjusted gross
profits increased 4.5% versus the year-ago period, driven by a 2.5%
increase in LTL volume and a 2.0% increase in adjusted gross profit
per order. NAST overall volume decreased approximately 1.0% for the
quarter. Operating expenses decreased 4.6%, primarily due to cost
optimization efforts, productivity improvements and lower claims,
which were partially offset by higher variable compensation. Fourth
quarter average employee headcount was down 12.4% year-over-year.
Income from operations increased 38.1% to $132.5 million, and
adjusted operating margin expanded 760 basis points to 32.8%.
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,
2024
2023
% change
2024
2023
% change
Total revenues
$
883,968
$
708,814
24.7
%
$
3,805,018
$
2,997,704
26.9
%
Adjusted gross profits(1)
203,801
162,322
25.6
%
802,549
689,365
16.4
%
Income from operations
51,827
22,576
129.6
%
212,476
85,830
147.6
%
____________________________________________
(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 24.7% to $884.0 million, primarily driven by higher
pricing in our ocean services. Adjusted gross profits increased
25.6% in the quarter to $203.8 million. Ocean adjusted gross
profits increased 27.7%, driven by a 23.5% increase in adjusted
gross profit per shipment and a 3.5% increase in shipments. Air
adjusted gross profits increased 45.4%, driven by a 26.0% increase
in adjusted gross profit per metric ton shipped and a 15.5%
increase in metric tons shipped. Customs adjusted gross profits
increased 11.6%, driven by a 14.5% increase in adjusted gross
profit per transaction, partially offset by a 2.5% reduction in
transaction volume. Operating expenses increased 8.8%, primarily
due to higher variable compensation, which was partially offset by
cost optimization efforts and productivity improvements. Fourth
quarter average employee headcount decreased 9.5% year-over-year.
Income from operations increased 129.6% to $51.8 million, and
adjusted operating margin expanded 1,150 basis points to 25.4% in
the quarter.
All Other and Corporate
Results
Total revenues and adjusted gross profits for Robinson Fresh,
Managed Solutions and Other Surface Transportation are summarized
as follows (dollars in thousands):
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
% change
2024
2023
% change
Total revenues
$
497,988
$
512,423
(2.8
)%
$
2,192,399
$
2,127,664
3.0
%
Adjusted gross profits(1):
Robinson Fresh
$
35,983
$
31,093
15.7
%
$
146,310
$
131,216
11.5
%
Managed Solutions
28,133
28,846
(2.5
)%
113,770
116,196
(2.1
)%
Other Surface Transportation
12,942
16,205
(20.1
)%
61,190
73,977
(17.3
)%
____________________________________________
(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
15.7% to $36.0 million due to an increase in integrated supply
chain solutions for retail and foodservice customers. Managed
Solutions adjusted gross profits decreased 2.5% due to lower
transaction volume. Other Surface Transportation adjusted gross
profits decreased 20.1% to $12.9 million, primarily due to a 19.4%
decrease in Europe truckload adjusted gross profits.
Other Income Statement
Items
Interest and other income/expense, net totaled $15.4 million of
expense, consisting primarily of $18.8 million of interest expense,
which decreased $2.8 million versus the fourth quarter of 2023 due
to a lower average debt balance and lower variable interest rates,
and a $3.3 million net gain from foreign currency revaluation and
realized foreign currency gains and losses.
The fourth quarter effective tax rate was 11.4%, down from 55.3%
in the fourth quarter of 2023. The lower rate in the fourth quarter
of 2024 was also driven by the impact of non-recurring discrete
items, higher U.S. tax credits, and increased tax benefit related
to stock-based compensation, partially offset by lower foreign tax
credits. For 2025, we expect our full-year effective tax rate to be
18% to 20%.
Diluted weighted average shares outstanding in the quarter were
up 2.2% year-over-year.
Cash Flow Generation and Capital
Distribution
Cash generated from operations totaled $267.9 million in the
fourth quarter, compared to $47.3 million of cash generated from
operations in the fourth quarter of 2023. The $220.6 million
increase in cash flow from operations was primarily related to a
$118.3 million increase in net income and an $81.3 million increase
in cash provided by changes in net operating working capital, due
to a $90.8 million sequential decrease in net operating working
capital in the fourth quarter of 2024 compared to a $9.5 million
sequential decrease in the fourth quarter of 2023.
In the fourth quarter of 2024, cash returned to shareholders
totaled $82.8 million, with $74.5 million in cash dividends and
$8.3 million in repurchases of common stock.
Capital expenditures totaled $15.2 million in the quarter and
$74.3 million for the year. Capital expenditures for 2025 are
expected to be $75 million to $85 million.
About C.H. Robinson
C.H. Robinson delivers logistics like no one else™. Companies
around the world look to us to reimagine supply chains, advance
freight technology, and solve logistics challenges—from the simple
to the most complex. 83,000 customers and 450,000 contract carriers
in our network trust us to manage 37 million shipments and $23
billion in freight annually. Through our unmatched expertise,
unrivaled scale, and tailored solutions, we ensure the seamless
delivery of goods across industries and continents via truckload,
less-than-truckload, ocean, air, and beyond. As a responsible
global citizen, we make supply chains more sustainable and proudly
contribute millions to the causes that matter most to our
employees. For more information, visit us at 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, 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
that could adversely impact our profitability and achieving our
long-term growth targets; freight levels and increasing costs and
availability of truck capacity or alternative means of transporting
freight; risks associated with seasonal changes or significant
disruptions in the transportation industry; risks associated with
identifying and completing suitable acquisitions; our dependence on
and changes in relationships with existing contracted truck, rail,
ocean, and air carriers; risks associated with the loss of
significant 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 U.S.; our ability to successfully integrate the
operations of acquired companies with our historic operations or
efficiently managing divestitures; climate change related risks;
risks associated with our indebtedness; risks associated with
interest rates; risks associated with litigation, including
contingent auto liability and insurance coverage; risks associated
with the potential impact of changes in government regulations
including environmental-related regulations; risks associated with
the changes to income tax regulations; risks associated with the
produce industry, including food safety and contamination issues;
the impact of changes in political and governmental conditions;
changes to our capital structure; changes due to catastrophic
events; risks associated with the usage of artificial intelligence
technologies; risks associated with cybersecurity events; 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 2024 Earnings Conference Call
Wednesday, January 29, 2025; 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 chrobinson.com. To participate in the
conference call by telephone, please call ten minutes early by
dialing: 877-269-7756
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,
2024
2023
% change
2024
2023
% change
Adjusted gross profits(1):
Transportation
Truckload
$
261,527
$
243,839
7.3
%
$
1,072,691
$
1,039,079
3.2
%
LTL
141,982
136,602
3.9
%
572,169
550,373
4.0
%
Ocean
127,139
99,191
28.2
%
519,970
420,883
23.5
%
Air
40,856
28,224
44.8
%
135,901
123,470
10.1
%
Customs
26,467
23,730
11.5
%
107,480
97,096
10.7
%
Other logistics services
54,383
59,402
(8.4
)%
225,599
255,735
(11.8
)%
Total transportation
652,354
590,988
10.4
%
2,633,810
2,486,636
5.9
%
Sourcing
32,269
27,635
16.8
%
131,204
117,972
11.2
%
Total adjusted gross profits
$
684,623
$
618,623
10.7
%
$
2,765,014
$
2,604,608
6.2
%
____________________________________________
(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,
2024
2023
% change
2024
2023
% change
Revenues:
Transportation
$
3,870,927
$
3,930,461
(1.5
)%
$
16,353,745
$
16,372,660
(0.1
)%
Sourcing
313,729
291,426
7.7
%
1,371,211
1,223,783
12.0
%
Total revenues
4,184,656
4,221,887
(0.9
)%
17,724,956
17,596,443
0.7
%
Costs and expenses:
Purchased transportation and related
services
3,218,573
3,339,473
(3.6
)%
13,719,935
13,886,024
(1.2
)%
Purchased products sourced for resale
281,460
263,791
6.7
%
1,240,007
1,105,811
12.1
%
Direct internally developed software
amortization
11,762
9,320
26.2
%
44,308
33,620
31.8
%
Total direct expenses
3,511,795
3,612,584
(2.8
)%
15,004,250
15,025,455
(0.1
)%
Gross profit
$
672,861
$
609,303
10.4
%
$
2,720,706
$
2,570,988
5.8
%
Plus: Direct internally developed software
amortization
11,762
9,320
26.2
%
44,308
33,620
31.8
%
Adjusted gross profit
$
684,623
$
618,623
10.7
%
$
2,765,014
$
2,604,608
6.2
%
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 loss on
divestiture is a similar non-GAAP financial measure as adjusted
operating margin, but also excludes the impact of restructuring and
loss on divestiture. We believe adjusted operating margin and
adjusted operating margin - excluding restructuring and loss on
divestiture are useful measures of our profitability in comparison
to our adjusted gross profit, which we consider a primary
performance metric as discussed above. The comparisons of operating
margin to adjusted operating margin and adjusted operating margin -
excluding restructuring and loss on divestiture are presented
below:
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
% change
2024
2023
% change
Total revenues
$
4,184,656
$
4,221,887
(0.9
%)
$
17,724,956
$
17,596,443
0.7
%
Income from operations
183,799
107,429
71.1
%
669,141
514,607
30.0
%
Operating margin
4.4
%
2.5
%
190 bps
3.8
%
2.9
%
90 bps
Adjusted gross profit
$
684,623
$
618,623
10.7
%
$
2,765,014
$
2,604,608
6.2
%
Income from operations
183,799
107,429
71.1
%
669,141
514,607
30.0
%
Adjusted operating margin
26.8
%
17.4
%
940 bps
24.2
%
19.8
%
440 bps
Adjusted gross profit
$
684,623
$
618,623
10.7
%
$
2,765,014
$
2,604,608
6.2
%
Adjusted income from operations
184,408
103,153
78.8
%
759,349
552,648
37.4
%
Adjusted operating margin - excluding
restructuring and loss on divestiture
26.9
%
16.7
%
1,020 bps
27.5
%
21.2
%
630 bps
GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
Our adjusted income (loss) from operations, adjusted operating
margin - excluding restructuring and loss on divestiture, adjusted
net income and adjusted net income per share (diluted) are non-GAAP
financial measures. These non-GAAP measures are calculated
excluding the impact of restructuring, losses from divestitures,
foreign currency losses from our Argentina operations, and the
impact of an income tax settlement in the prior year. 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 loss on divestiture, adjusted net
income and adjusted net income per share (diluted). The
reconciliation of these non-GAAP measures are presented below (in
thousands except per share data):
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended December 31, 2024
Non-GAAP
Reconciliation:
Income (loss) from operations
$
132,528
$
51,827
$
(556
)
$
183,799
Severance and other personnel expenses
1,154
1,017
1,574
3,745
Other selling, general, and administrative
expenses
671
2,281
(6,088
)
(3,136
)
Total adjustments to income (loss) from
operations(1)
1,825
3,298
(4,514
)
609
Adjusted income (loss) from operations
$
134,353
$
55,125
$
(5,070
)
$
184,408
Adjusted gross profit
$
403,764
$
203,801
$
77,058
$
684,623
Adjusted income (loss) from operations
134,353
55,125
(5,070
)
184,408
Adjusted operating margin - excluding
restructuring and loss on divestiture
33.3
%
27.0
%
N/M
26.9
%
NAST
Global Forwarding
All Other and Corporate
Consolidated
Twelve Months Ended December 31, 2024
Income (loss) from operations
$
531,292
$
212,476
$
(74,627
)
$
669,141
Severance and other personnel expenses
10,176
6,872
7,004
24,052
Other selling, general, and administrative
expenses
6,885
4,729
54,542
66,156
Total adjustments to income (loss) from
operations(2)
17,061
11,601
61,546
90,208
Adjusted income (loss) from operations
$
548,353
$
224,077
$
(13,081
)
$
759,349
Adjusted gross profit
$
1,641,195
$
802,549
$
321,270
$
2,765,014
Adjusted income (loss) from operations
548,353
224,077
(13,081
)
759,349
Adjusted operating margin - excluding
restructuring and loss on divestiture
33.4
%
27.9
%
N/M
27.5
%
Three Months Ended December 31,
2024
Twelve Months Ended December 31,
2024
$ in 000's
per share
$ in 000's
per share
Net income and per share (diluted)
$
149,306
$
1.22
$
465,690
$
3.86
Restructuring and related costs,
pre-tax
13,183
0.11
45,746
0.38
Loss (gain) on divestiture, pre-tax
(12,574
)
(0.10
)
44,462
0.37
Tax effect of adjustments
(1,851
)
(0.02
)
(11,773
)
(0.10
)
Adjusted net income and per share
(diluted)
$
148,064
$
1.21
$
544,125
$
4.51
____________________________________________
(1) The three months ended December 31,
2024 include restructuring expenses of $3.7 million related to
workforce reductions and $3.1 million net gain driven by a $12.6
million favorable adjustment to the loss on the planned divestiture
of our Europe Surface Transportation business, partially offset by
impairments related to reducing our facilities footprint.
(2) The twelve months ended December 31,
2024 include restructuring expenses of $24.1 million related to
workforce reductions and $66.2 million of
other charges, which includes a $44.5
million loss on the planned divestiture of our Europe Surface
Transportation business and impairments related to reducing our
facilities footprint and of internally developed software.
NAST
Global Forwarding
All Other and Corporate
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 income (loss) from
operations(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 and loss on divestiture
25.2
%
11.4
%
N/M
16.7
%
NAST
Global Forwarding
All Other and Corporate
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 income (loss) from
operations(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 and loss on divestiture
28.9
%
15.6
%
N/M
21.2
%
Three Months Ended December 31,
2023
Twelve Months Ended December 31,
2023
$ 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
(239
)
—
17,476
0.14
Loss (gain) on divestiture, pre-tax
(2,617
)
(0.02
)
21,985
0.18
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 a net gain of $4.3 million driven by a favorable
adjustment to the loss on the divestiture of our operations in
Argentina.
(2) The twelve months ended December 31,
2023 includes restructuring expenses of $18.4 million related to
workforce reductions and $19.6 million of asset impairment and
other charges, primarily related to a loss on the divestiture of
our Argentina operations.
Condensed Consolidated
Statements of Income (unaudited, in thousands, except per share
data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
% change
2024
2023
% change
Revenues:
Transportation
$
3,870,927
$
3,930,461
(1.5
)%
$
16,353,745
$
16,372,660
(0.1
)%
Sourcing
313,729
291,426
7.7
%
1,371,211
1,223,783
12.0
%
Total revenues
4,184,656
4,221,887
(0.9
)%
17,724,956
17,596,443
0.7
%
Costs and expenses:
Purchased transportation and related
services
3,218,573
3,339,473
(3.6
)%
13,719,935
13,886,024
(1.2
)%
Purchased products sourced for resale
281,460
263,791
6.7
%
1,240,007
1,105,811
12.1
%
Personnel expenses
354,381
361,820
(2.1
)%
1,456,249
1,465,735
(0.6
)%
Other selling, general, and administrative
expenses
146,443
149,374
(2.0
)%
639,624
624,266
2.5
%
Total costs and expenses
4,000,857
4,114,458
(2.8
)%
17,055,815
17,081,836
(0.2
)%
Income from operations
183,799
107,429
71.1
%
669,141
514,607
30.0
%
Interest and other income/expense, net
(15,350
)
(38,149
)
(59.8
)%
(89,937
)
(105,421
)
(14.7
)%
Income before provision for income
taxes
168,449
69,280
143.1
%
579,204
409,186
41.6
%
Provision for income taxes
19,143
38,307
(50.0
)%
113,514
84,057
35.0
%
Net income
$
149,306
$
30,973
382.1
%
$
465,690
$
325,129
43.2
%
Net income per share (basic)
$
1.24
$
0.26
376.9
%
$
3.89
$
2.74
42.0
%
Net income per share (diluted)
$
1.22
$
0.26
369.2
%
$
3.86
$
2.72
41.9
%
Weighted average shares outstanding
(basic)
120,589
118,605
1.7
%
119,805
118,551
1.1
%
Weighted average shares outstanding
(diluted)
122,291
119,613
2.2
%
120,679
119,677
0.8
%
Business Segment
Information
(unaudited, in thousands, except
average employee headcount)
NAST
Global Forwarding
All Other and Corporate
Consolidated
Three Months Ended December 31, 2024
Total revenues
$
2,802,700
$
883,968
$
497,988
$
4,184,656
Adjusted gross profits(1)
403,764
203,801
77,058
684,623
Income (loss) from operations
132,528
51,827
(556
)
183,799
Depreciation and amortization
4,891
2,357
17,032
24,280
Total assets(2)
2,874,701
1,335,178
1,088,047
5,297,926
Average employee headcount
5,348
4,542
3,979
13,869
NAST
Global Forwarding
All Other and Corporate
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
____________________________________________
(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 Forwarding
All Other and Corporate
Consolidated
Twelve Months Ended December 31, 2024
Total revenues
$
11,727,539
$
3,805,018
$
2,192,399
$
17,724,956
Adjusted gross profits(1)
1,641,195
802,549
321,270
2,765,014
Income (loss) from operations
531,292
212,476
(74,627
)
669,141
Depreciation and amortization
20,670
10,602
65,888
97,160
Total assets(2)
2,874,701
1,335,178
1,088,047
5,297,926
Average employee headcount
5,696
4,678
4,012
14,386
NAST
Global Forwarding
All Other and Corporate
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
____________________________________________
(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, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
145,762
$
145,524
Receivables, net of allowance for credit
loss
2,383,709
2,381,963
Contract assets, net of allowance for
credit loss
200,332
189,900
Prepaid expenses and other
102,166
163,307
Assets held for sale
137,634
—
Total current assets
2,969,603
2,880,694
Property and equipment, net of accumulated
depreciation and amortization
127,189
144,718
Right-of-use lease assets
334,738
353,890
Intangible and other assets, net of
accumulated amortization
1,866,396
1,845,978
Total assets
$
5,297,926
$
5,225,280
Liabilities and stockholders’
investment
Current liabilities:
Accounts payable and outstanding
checks
$
1,212,132
$
1,370,334
Accrued expenses:
Compensation
180,801
135,104
Transportation expense
153,274
147,921
Income taxes
9,326
4,748
Other accrued liabilities
173,318
159,435
Current lease liabilities
72,842
74,451
Current portion of debt
455,792
160,000
Liabilities held for sale
67,413
—
Total current liabilities
2,324,898
2,051,993
Long-term debt
921,857
1,420,487
Noncurrent lease liabilities
290,641
297,563
Noncurrent income taxes payable
23,472
21,289
Deferred tax liabilities
12,565
13,177
Other long-term liabilities
2,442
2,074
Total liabilities
3,575,875
3,806,583
Total stockholders’ investment
1,722,051
1,418,697
Total liabilities and stockholders’
investment
$
5,297,926
$
5,225,280
Condensed Consolidated
Statements of Cash Flow
(unaudited, in thousands, except
operational data)
Twelve Months Ended December
31,
Operating activities:
2024
2023
Net income
$
465,690
$
325,129
Adjustments to reconcile net income to net
cash (used for) provided by operating activities:
Depreciation and amortization
97,160
98,985
Provision for credit losses
6,688
(6,047
)
Stock-based compensation
84,590
58,169
Deferred income taxes
(80,067
)
(37,746
)
Excess tax benefit on stock-based
compensation
(9,411
)
(11,319
)
Loss on disposal group held for sale
32,794
17,698
Other operating activities
20,682
5,541
Changes in operating elements:
Receivables
(164,255
)
607,259
Contract assets
(11,969
)
68,041
Prepaid expenses and other
60,740
(39,048
)
Right of use asset
(5,937
)
19,255
Accounts payable and outstanding
checks
(79,943
)
(200,843
)
Accrued compensation
49,681
(108,084
)
Accrued transportation expenses
6,756
(51,171
)
Accrued income taxes
15,545
(2,284
)
Other accrued liabilities
12,791
(11,991
)
Lease liability
5,076
(16,500
)
Other assets and liabilities
2,473
16,902
Net cash provided by operating
activities
509,084
731,946
Investing activities:
Purchases of property and equipment
(22,653
)
(29,989
)
Purchases and development of software
(51,635
)
(54,122
)
Proceeds from sale of property and
equipment
—
1,324
Net cash used for investing activities
(74,288
)
(82,787
)
Financing activities:
Proceeds from stock issued for employee
benefit plans
114,890
56,914
Stock tendered for payment of withholding
taxes
(32,217
)
(25,294
)
Repurchase of common stock
—
(63,884
)
Cash dividends
(294,772
)
(291,569
)
Proceeds from long-term borrowings
10,000
—
Payments on long-term borrowings
(10,000
)
—
Proceeds from short-term borrowings
3,192,500
3,893,750
Payments on short-term borrowings
(3,396,500
)
(4,287,750
)
Net cash used for financing activities
(416,099
)
(717,833
)
Effect of exchange rates on cash and cash
equivalents
(8,152
)
(3,284
)
Net change in cash and cash equivalents,
including cash and cash equivalents classified within assets held
for sale
10,545
(71,958
)
Less: net increase in cash and cash
equivalents within assets held for sale
(10,307
)
—
Cash and cash equivalents, beginning of
period
145,524
217,482
Cash and cash equivalents, end of
period
$
145,762
$
145,524
As of December 31,
Operational Data:
2024
2023
Employees
13,781
15,246
CHRW-IR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129314724/en/
Chuck Ives, Senior Director of Investor Relations Email:
chuck.ives@chrobinson.com
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