C.H. Robinson Reports Second Quarter Results
19 July 2000
Net Revenues Up 45.0 Percent For the Quarter
MINNEAPOLIS - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") , today reported financial results for the three months and six months ended June 30, 2000.For the second quarter of 2000, net revenues increased 45.0 percent to $106.4 million from $73.4 million in 1999. Income from operations increased 42.5 percent to $31.4 million from $22.1 million in 1999. Net income increased 35.5 percent to $18.9 million from $14.0 million in 1999. Basic net income per share increased 32.4 percent to $0.45 from $0.34 cents per share in 1999. Diluted net income per share increased 29.4 percent to $0.44 from $0.34 cents per share in 1999.
For the first six months of 2000, net revenues increased 45.8 percent to $204.8 million from $140.4 million in 1999. Income from operations increased 45.0 percent to $56.5 million from $39.0 million in 1999. Net income increased 38.0 percent to $34.2 million from $24.8 million in 1999. Basic net income per share increased 35.0 percent to $0.81 from $0.60 cents per share in 1999. Diluted net income per share increased 33.3 percent to $0.80 from $0.60 cents per share in 1999.
"We're proud to again report strong results in our top and bottom line performance," said D.R. "Sid" Verdoorn, C.H. Robinson chairman and chief executive officer. "We continue to show solid growth across all areas of our business. We believe these results demonstrate that our integrated service model is very attractive to both our customers and to our carrier network."
C.H. Robinson also announced that its Board of Directors has increased the number of Directors of the company to eight, and has appointed Gregory D. Goven, 49, to fill that position for the three-year term of 2000-2003. Goven is a 27-year employee of C.H. Robinson and was appointed based on his strategic understanding of the transportation industry and the instrumental role he has played in the company's growth. Goven oversees the development and operations of the company's profit center network, and has also provided the leadership for most of C.H. Robinson's innovations in personnel recruiting, training and performance-based management.
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, operating through a network of 132 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 that are dependent on 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, the effect of the company's accounting policies, 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 24, 2000.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
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2000 1999 2000 1999
-------- --------- ---------- -----------
Gross revenues $750,994 $579,423 $1,401,085 $1,088,698
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Net revenues:
Transportation:
Truck $77,407 $50,223 $150,705 $96,756
Intermodal 3,667 2,349 6,837 4,465
Ocean 4,823 3,567 8,227 6,046
Air 1,024 772 1,623 1,255
Miscellaneous 1,819 1,596 3,857 3,056
-------- --------- ---------- -----------
Total transportation 88,740 58,507 171,249 111,578
Sourcing 12,615 11,065 23,505 21,439
Information services 5,043 3,824 10,019 7,398
-------- --------- ---------- -----------
Total net revenues 106,398 73,396 204,773 140,415
-------- --------- ---------- -----------
Operating costs and expenses:
Personnel expenses 50,303 34,120 100,458 66,422
Selling, general
and administrative 24,659 17,216 47,790 35,022
-------- --------- ---------- -----------
Total operating costs
and expenses 74,962 51,336 148,248 101,444
-------- --------- ---------- -----------
Income from operations 31,436 22,060 56,525 38,971
Investment and other
income (expense) (123) 1,133 (73) 2,080
--------- --------- ----------- -----------
Income before provision for income
taxes 31,313 23,193 56,452 41,051
Provision for income taxes 12,369 9,211 22,299 16,297
-------- --------- ---------- -----------
Net income $18,944 $13,982 $34,153 $24,754
======== ========= ========== ===========
Net income per share
(basic) $0.45 $0.34 $0.81 $0.60
Net income per share
(diluted) $0.44 $0.34 $0.80 $0.60
Weighted average shares outstanding
(basic) 42,291 41,195 42,286 41,190
Weighted average shares outstanding
(diluted) 42,813 41,478 42,775 41,410
As of June 30,
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Operational Data: 2000 1999
--------------- --------------
Employees 3,478 2,427
Branches 132 129
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, 2000
(unaudited)
(In thousands, except per share data)
Assets
Current assets:
Cash & investments $ 39,568
Receivables 367,657
Other current assets 26,432
---------------
Total current assets 433,657
Net property and equipment 29,209
Intangible and other assets
151,674
---------------
$ 614,540
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Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $ 294,480
Accrued compensation 22,383
Other accrued expenses 24,441
---------------
Total current liabilities 341,304
Total stockholders' investment 273,236
---------------
$ 614,540
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