C.H. Robinson Reports First Quarter Results; Income From Operations Up 15.2 Percent for the Quarter
MINNEAPOLIS--April 23, 2002--C.H. Robinson Worldwide, Inc. ("C.H. Robinson") , today reported financial results for the three months ended March 31, 2002.For the first quarter of 2002, gross profits increased 0.3 percent to $113.6 million from $113.3 million in 2001. Income from operations increased 15.2 percent to $33.8 million from $29.4 million in 2001. Net income increased 14.9 percent to $20.8 million from $18.1 million in 2001. Basic net income per share increased 19.0 percent to $0.25 from $0.21 cents per share in 2001. Diluted net income per share increased 14.3 percent to $0.24 from $0.21 per share in 2001.
"We're pleased with our performance this quarter," said John Wiehoff, president of C.H. Robinson. "As we expected, the environment continued to be challenging for revenue growth. We continue to concentrate on sales and profitable growth, while aggressively managing our expenses. We believe that this focus, combined with our strong core competencies and long-term growth strategy, position us very well for the future."
For the first quarter, transportation gross profits decreased 0.2 percent. The decline in truck gross profits of 1.4 percent was due to a decline in truckload volumes.
Sourcing gross profits decreased 1.8 percent in the first quarter. The company continues to see the trend of less volume with its traditional business with produce wholesalers, which is offset by increases in volumes with large retailers.
For the first quarter, information services gross profits increased 12.9 percent. T-Chek related revenues, which now comprise 100 percent of information services, increased 19.4 percent during the quarter.
For the quarter, selling, general, and administrative expenses were $20.9 million, a decrease of 21.7 percent from $26.7 million in 2001. Amortization of certain intangible assets has been eliminated due to new accounting rules, which reduced amortization expense by $1.3 million in the first quarter. In addition, we had notable declines in communications costs, travel expenses, and contractor costs.
Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest third-party logistics companies in North America. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, serving 15,000 customers through a network of 144 offices in North America, South America and Europe. C.H. Robinson maintains the single largest network of motor carrier capacity in North America through contracts with more than 20,000 motor carriers, and is one of the largest third-party providers of intermodal services in the United States.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements which are based on certain assumptions and expectations of future events. These assumptions and expectations are dependent on and subject to certain risks and uncertainties including, but not limited to such factors as market demand, pricing, risks associated with operations outside of the U.S., changing economic conditions such as general economic slowdown and decreased consumer confidence, and other risk factors detailed under "Cautionary Statement" in Exhibit 99 to C.H. Robinson's Annual Report on Form 10-K filed on March 15, 2002.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
Three months ended
March 31,
------------------
2002 2001
-------- --------
Gross revenues and management fees $740,031 $732,484
======== ========
Gross profits:
Transportation:
Truck $ 85,952 $ 87,208
Intermodal 4,168 3,745
Ocean 3,839 3,475
Air 553 663
Miscellaneous 2,056 1,637
-------- --------
Total transportation 96,568 96,728
Sourcing 11,324 11,530
Information services 5,705 5,051
-------- --------
Total gross profits 113,597 113,309
-------- --------
Operating costs and expenses:
Personnel expenses 58,886 57,263
Selling, general, and administrative expenses 20,873 26,672
-------- --------
Total operating costs and expenses 79,759 83,935
-------- --------
Income from operations 33,838 29,374
Investment and other income 328 506
-------- --------
Income before provision for income taxes 34,166 29,880
Provision for income taxes 13,324 11,746
-------- --------
Net income $ 20,842 $ 18,134
======== ========
Net income per share (basic) $ 0.25 $ 0.21
Net income per share (diluted) $ 0.24 $ 0.21
Weighted average shares outstanding (basic) 84,567 84,372
Weighted average shares outstanding (diluted) 85,978 85,755
As of March 31,
-------------------
Operational Data: 2002 2001
-------- --------
Employees 3,775 3,694
Branches 144 138
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands)
March 31, Dec. 31,
2002 2001
-------- --------
Assets
Current assets:
Cash and investments $118,037 $115,741
Receivables, net 360,063 370,378
Deferred taxes 11,104 12,164
Other current assets 4,151 4,932
-------- --------
Total current assets 493,355 503,215
Net property and equipment 29,799 30,920
Intangible and other assets 162,808 149,355
-------- --------
$685,962 $683,490
======== ========
Liabilities and stockholders' investment
Current liabilities:
Accounts payable $267,455 $267,708
Accrued compensation 11,756 32,098
Other accrued expenses 28,447 23,722
-------- --------
Total current liabilities 307,658 323,528
Total long term liabilities 5,794 4,147
Total stockholders' investment 372,510 355,815
-------- --------
$685,962 $683,490
======== ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands, except per share data)
Three months ended
March 31,
----------------------
2002 2001
--------- ---------
Operating activities:
Net income $ 20,842 $ 18,134
Depreciation and amortization 3,542 4,838
Other non-cash expenses 1,963 3,415
Net changes in operating elements (1,962) (25,542)
--------- ---------
Net cash provided by operations 24,385 845
Investing activities:
Net property additions (1,576) (2,419)
Cash paid for acquisitions, net (15,716) --
Other assets, net (93) (1,548)
--------- ---------
Net cash used for investing (17,385) (3,967)
Financing activities:
Net sales (repurchases) of common stock 360 (1,001)
Cash dividends (5,064) (4,220)
--------- ---------
Net cash used for financing activity (4,704) (5,221)
Net increase (decrease) in cash 2,296 (8,343)
Cash and cash equivalents, beginning of period 115,741 79,912
--------- ---------
Cash and cash equivalents, end of period $ 118,037 $ 71,569
========= =========