EX-99.1 2 ex991earningsrelease.htm EXHIBIT 99.1 Exhibit


C.H. Robinson Worldwide, Inc.
14701 Charlson Road
Eden Prairie, Minnesota 55347

Andrew Clarke, Chief Financial Officer (952) 683-3474
Tim Gagnon, Director, Investor Relations (952) 683-5007

FOR IMMEDIATE RELEASE
C.H. ROBINSON REPORTS THIRD QUARTER RESULTS
MINNEAPOLIS, October 31, 2017 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended September 30, 2017. This table of summary results presents our service line net revenues consistent with our historical presentation and is on an enterprise basis. The service line net revenues in the table differ from the segment service line net revenues discussed below as our segments have revenues from multiple service lines. Summarized financial results are set forth in the following table (dollars in thousands, except per share data).
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Total revenues
 
$
3,784,451

 
$
3,355,754

 
12.8
 %
 
$
10,909,594

 
$
9,729,438

 
12.1
 %
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
 
  Transportation
 
 
 
 
 
 
 
 
 
 
 
 
     Truckload
 
$
301,025

 
$
309,027

 
-2.6
 %
 
$
887,865

 
$
960,451

 
-7.6
 %
     LTL
 
101,870

 
96,447

 
5.6
 %
 
301,706

 
287,518

 
4.9
 %
     Intermodal
 
7,478

 
7,676

 
-2.6
 %
 
23,278

 
25,961

 
-10.3
 %
     Ocean
 
81,182

 
56,506

 
43.7
 %
 
217,495

 
175,243

 
24.1
 %
     Air
 
25,529

 
19,897

 
28.3
 %
 
73,166

 
58,424

 
25.2
 %
     Customs
 
17,421

 
12,320

 
41.4
 %
 
49,810

 
34,649

 
43.8
 %
     Other logistics services
 
29,580

 
26,771

 
10.5
 %
 
87,563

 
76,965

 
13.8
 %
     Total transportation
 
564,085

 
528,644

 
6.7
 %
 
1,640,883

 
1,619,211

 
1.3
 %
  Sourcing
 
29,761

 
29,818

 
-0.2
 %
 
95,318

 
96,801

 
-1.5
 %
Total net revenues
 
593,846

 
558,462

 
6.3
 %
 
1,736,201

 
1,716,012

 
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
399,381

 
347,195

 
15.0
 %
 
1,171,958

 
1,072,046

 
9.3
 %
Income from operations
 
194,465

 
211,267

 
-8.0
 %
 
564,243

 
643,966

 
-12.4
 %
Net income
 
$
119,186

 
$
129,028

 
-7.6
 %
 
$
352,337

 
$
391,081

 
-9.9
 %
Diluted EPS
 
$
0.85


$
0.90

 
-5.6
 %
 
$
2.49

 
$
2.73

 
-8.8
 %

Our total revenues increased 12.8 percent in the third quarter of 2017 compared to the third quarter of 2016. The increase in total revenues was driven by increased pricing and volume growth across all of our transportation services. Our total net revenues increased 6.3 percent in the third quarter of 2017 compared to the third quarter of 2016. APC Logistics (“APC”), which was acquired at the close of business on September 30, 2016, represented approximately two percent of our total net revenues in the third quarter of 2017. As previously announced, we acquired Milgram & Company Ltd. ("Milgram") on August 31, 2017, for the purpose of expanding our global presence and bringing additional capabilities and expertise to our portfolio.
For the third quarter of 2017, our total operating expenses increased 15.0 percent compared to the third quarter of 2016. Personnel expenses increased 14.1 percent in the third quarter of 2017 compared to the third quarter of 2016. The increase in personnel expenses was the result of an increase in average headcount of 8.7 percent and an increase in variable compensation in the third quarter of 2017 compared to the third quarter of 2016. Other selling, general, and administrative expenses increased 17.6 percent. This increase was driven by costs related to the addition of the APC and Milgram businesses, and increases in the provision for bad debt, claims expenses, and warehouse costs.
Interest and other expenses increased approximately $3.1 million, or 41.2 percent, in the third quarter of 2017 compared to the third quarter of 2016. Interest expense increased due to a higher average debt balance and higher interest rates during the third

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C.H. Robinson Worldwide, Inc.
October 31, 2017
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quarter of 2017 compared to the third quarter of 2016. The higher average debt balance is a result of borrowings for the acquisition of Milgram and increased working capital needs.
The provision for income taxes decreased 13.4 percent in the third quarter of 2017 compared to the third quarter of 2016. During the third quarter of 2017, the provision for income taxes decreased by $2.7 million due to tax credits associated with foreign earnings deemed to be subject to U.S. taxation. During the first quarter of 2017, we adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718). The adoption of ASU 2016-09 prospectively impacts the recording of income taxes related to share-based payment awards in our consolidated financial position and results of operations, as well as the operating and financing cash flows on the consolidated statements of cash flows. This adoption resulted in a decrease in our provision for income taxes of $1.3 million in the third quarter of 2017.
Results by Segment
Our three reportable segments are: North American Surface Transportation (“NAST”), Global Forwarding, and Robinson Fresh. The balance of our business is reported as “All Other and Corporate.” All Other and Corporate includes our non-reportable segments, including Managed Services and Other Surface Transportation.
NAST provides freight transportation services across North America through a network of offices in the United States, Canada, and Mexico. The primary services provided by NAST include truckload, less than truckload (“LTL”), and intermodal. Summarized financial results of our NAST segment are as follows (dollars in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Total revenues (1)
 
$
2,469,420

 
$
2,252,187

 
9.6
 %
 
$
7,110,223

 
$
6,456,281

 
10.1
 %
Net revenues
 
377,403

 
378,073

 
-0.2
 %
 
1,109,749

 
1,161,074

 
-4.4
 %
Income from operations
 
151,392

 
171,733

 
-11.8
 %
 
447,553

 
516,805

 
-13.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 

NAST total revenues increased 9.6 percent to $2.5 billion in the third quarter of 2017 from $2.3 billion in the third quarter of 2016. This increase was driven by pricing increases in all services. NAST net revenues decreased 0.2 percent to $377.4 million in the third quarter of 2017 compared to $378.1 million in the third quarter of 2016, primarily from a decline in truckload net revenues.

NAST truckload net revenues decreased 2.1 percent to $266.6 million in the third quarter of 2017 compared to $272.4 million in the third quarter of 2016, while truckload volumes were flat. NAST truckload net revenue margin decreased in the third quarter of 2017 compared to the third quarter of 2016, due to transportation costs rising faster than truckload pricing.

NAST accounted for approximately 93 percent of our total North America truckload net revenues in the third quarter of 2017 and 92 percent in the third quarter of 2016. The majority of the remaining North American truckload net revenues is included in Robinson Fresh. Excluding the estimated impacts of the change in fuel prices, our average North America truckload rate per mile charged to our customers increased 6.5 percent in the third quarter of 2017 compared to the third quarter of 2016. Our truckload transportation costs increased approximately 8.5 percent, excluding the estimated impacts of the change in fuel prices.

NAST LTL net revenues increased 4.8 percent to $97.6 million in the third quarter of 2017 compared to $93.1 million in the third quarter of 2016. NAST LTL volumes increased approximately 6.5 percent in the third quarter of 2017 compared to the third quarter of 2016, and net revenue margin decreased.

NAST intermodal net revenues decreased 1.4 percent to $7.1 million in the third quarter of 2017 compared to $7.2 million in the third quarter of 2016. NAST intermodal net revenues and net revenue margin decreased while volume increased in the third quarter of 2017 compared to the third quarter of 2016 due to contractual volume growth, partially offset by a decrease in transactional business.

NAST operating expenses increased 9.5 percent in the third quarter of 2017 to $226.0 million compared to $206.3 million in the third quarter of 2016. This increase was due to increases in selling, general, and administrative expenses and personnel expenses. The increase in selling, general, and administrative expenses is primarily due to an increase in the provision for bad debt and claims expense. The increase in personnel expense is related an increase in average headcount of 1.9 percent. The operating expenses of NAST and all other segments include allocated corporate expenses.

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October 31, 2017
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Global Forwarding provides global logistics services through an international network of offices in North America, Asia, Europe, Australia, and South America and also contracts with independent agents worldwide. The primary services provided by Global Forwarding include ocean freight services, airfreight services, and customs brokerage. Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Total revenues (1)
 
$
552,134

 
$
390,830

 
41.3
%
 
$
1,549,742

 
$
1,098,715

 
41.1
%
Net revenues
 
129,842

 
93,368

 
39.1
%
 
357,411

 
283,458

 
26.1
%
Income from operations
 
31,125

 
17,047

 
82.6
%
 
75,006

 
56,300

 
33.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 

Global Forwarding total revenues increased 41.3 percent in the third quarter of 2017 to $552.1 million from $390.8 million in the third quarter of 2016. Global Forwarding net revenues increased 39.1 percent to $129.8 million in the third quarter of 2017 compared to $93.4 million in the third quarter of 2016. The acquisitions of APC and Milgram accounted for approximately 18 percentage points of the net revenue growth in Global Forwarding.

Ocean net revenues increased 44.0 percent to $81.1 million in the third quarter of 2017 compared to $56.3 million in the third quarter of 2016. Air net revenues increased 32.7 percent to $24.0 million in the third quarter of 2017 compared to $18.1 million in the third quarter of 2016. Customs net revenues increased 41.4 percent to $17.4 million in the third quarter of 2017 compared to $12.3 million in the third quarter of 2016. These increases were primarily due to volume increases, including those from acquisitions.

Global Forwarding operating expenses increased 29.3 percent in the third quarter of 2017 to $98.7 million from $76.3 million in the third quarter of 2016. This increase was due to increases in both personnel and selling, general, and administrative expenses. The personnel expense increase was driven by an average headcount increase of 20.8 percent. The acquisitions of APC and Milgram added approximately 18 percent to Global Forwarding average headcount. The selling, general, and administrative expense increase was primarily driven by the acquisition amortization related to APC and Milgram.

Robinson Fresh provides sourcing services under the name of Robinson Fresh. Our sourcing services primarily include the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. Robinson Fresh sources products from around the world and has a physical presence in North America, Europe, Asia, and South America. This segment often provides the logistics and transportation of the products it sells, in addition to temperature controlled transportation services for its customers. Summarized financial results of our Robinson Fresh segment are as follows (dollars in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Total revenues (1)
 
$
613,646

 
$
590,385

 
3.9
 %
 
$
1,821,094

 
$
1,814,682

 
0.4
 %
Net revenues
 
54,253

 
57,036

 
-4.9
 %
 
171,936

 
183,041

 
-6.1
 %
Income from operations
 
11,586

 
17,733

 
-34.7
 %
 
40,487

 
62,777

 
-35.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 

Robinson Fresh total revenues increased 3.9 percent to $613.6 million in the third quarter of 2017 from $590.4 million in the third quarter of 2016. Robinson Fresh net revenues decreased 4.9 percent to $54.3 million in the third quarter of 2017 compared to $57.0 million in the third quarter of 2016 primarily as a result of declines in transportation net revenues.

Robinson Fresh sourcing net revenues were flat at $29.8 million in the third quarter of 2017 compared to the third quarter of 2016. A slight increase in net revenue margin was offset by a case volume decrease of one percent compared to the third quarter of 2016.


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October 31, 2017
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Robinson Fresh transportation net revenues decreased 10.0 percent to $24.5 million in the third quarter of 2017 compared to $27.2 million in the third quarter of 2016, primarily due to a decrease in truckload revenue. Robinson Fresh transportation net revenue margin decreased in the third quarter of 2017 compared to the third quarter of 2016.

Robinson Fresh operating expenses increased 8.6 percent in the third quarter of 2017 to $42.7 million from $39.3 million in the third quarter of 2016. This was primarily due to an increase in warehousing expenses related to expanding facilities and a 1.5 percent increase in average headcount.

All Other and Corporate includes our Managed Services segment, as well as Other Surface Transportation outside of North America and other miscellaneous revenues. It also includes any unallocated corporate expenses. Managed Services provides Transportation Management Service, or Managed TMS. Europe Surface Transportation provides services similar to NAST across the European continent. Net revenues for Managed Services and Other Surface Transportation are summarized as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Net revenues
 
2017
 
2016
 
% change
 
2017
 
2016
 
% change
Managed Services
 
$
18,487

 
$
16,680

 
10.8
%
 
$
53,844

 
$
47,034

 
14.5
%
Other Surface Transportation
 
13,861

 
13,305

 
4.2
%
 
43,261

 
41,405

 
4.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 

Managed Services net revenues increased 10.8 percent in the third quarter of 2017 to $18.5 million compared to $16.7 million the third quarter of 2016. This increase was a result of new business. Other surface transportation net revenues increased 4.2 percent in the third quarter of 2017 to $13.9 million compared to $13.3 million in the third quarter of 2016. This increase is primarily the result of increased volumes, partially offset by margin compression in the surface transportation business in Europe.

About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 113,000 customers and 107,000 contract carriers through our integrated network of offices and more than 14,000 employees. In addition, the company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded on the NASDAQ since 1997. For more information, visit http://www.chrobinson.com or view our company video.

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 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 successfully integrate the operations of acquired companies with our historic operations; 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; risks of unexpected or unanticipated events or opportunities that might require additional capital expenditures; the impact of war on the economy; 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.

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C.H. Robinson Worldwide, Inc.
October 31, 2017
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Conference Call Information:
C.H. Robinson Worldwide Third Quarter 2017 Earnings Conference Call
Wednesday, November 1, 2017; 8:30 a.m. Eastern Time
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 adrienne.brausen@chrobinson.com.

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
Callers should reference the conference ID, which is 13670605
An audio replay will be available at http://investor.chrobinson.com.
Telephone audio replay available until 11:30 a.m. Eastern Time on November 8, 2017: 877-660-6853;
passcode: 13670605#
International callers dial +1-201-612-7415


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C.H. Robinson Worldwide, Inc.
October 31, 2017
Page 6





CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share data)

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 Transportation
 
$
3,433,701

 
$
2,998,583

 
$
9,855,739

 
$
8,593,767

 Sourcing
 
350,750

 
357,171

 
1,053,855

 
1,135,671

   Total revenues
 
3,784,451

 
3,355,754

 
10,909,594

 
9,729,438

Costs and expenses:
 
 
 
 
 
 
 
 
 Purchased transportation and related services
 
2,869,616

 
2,469,939

 
8,214,856

 
6,974,556

 Purchased products sourced for resale
 
320,989

 
327,353

 
958,537

 
1,038,870

 Personnel expenses
 
293,204

 
256,883

 
867,928

 
804,631

 Other selling, general, and administrative expenses
 
106,177

 
90,312

 
304,030

 
267,415

   Total costs and expenses
 
3,589,986

 
3,144,487

 
10,345,351

 
9,085,472

Income from operations
 
194,465

 
211,267

 
564,243

 
643,966

Interest and other expense
 
(10,484
)
 
(7,426
)
 
(29,154
)
 
(22,463
)
Income before provision for income taxes
 
183,981

 
203,841

 
535,089

 
621,503

Provisions for income taxes
 
64,795

 
74,813

 
182,752

 
230,422

Net income
 
$
119,186

 
$
129,028

 
$
352,337

 
$
391,081

 
 
 
 
 
 
 
 
 
Net income per share (basic)
 
$
0.85

 
$
0.90

 
$
2.50

 
$
2.73

Net income per share (diluted)
 
$
0.85

 
$
0.90

 
$
2.49

 
$
2.73

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding (basic)
 
140,422

 
142,611

 
140,962

 
143,040

Weighted average shares outstanding (diluted)
 
141,022

 
142,883

 
141,403

 
143,245



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C.H. Robinson Worldwide, Inc.
October 31, 2017
Page 7



BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)

 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,469,420

 
$
552,134

 
$
613,646

 
$
149,251

 
$
—

 
$
3,784,451

Intersegment revenues (1)
 
115,796

 
7,873

 
43,272

 
3,228

 
(170,169
)
 
—

   Total revenues
 
$
2,585,216

 
$
560,007

 
$
656,918

 
$
152,479

 
$
(170,169
)
 
$
3,784,451

Net revenues
 
$
377,403

 
$
129,842

 
$
54,253

 
$
32,348

 
$
—

 
$
593,846

Operating income
 
$
151,392

 
$
31,125

 
$
11,586

 
$
362

 
$
—

 
$
194,465

Depreciation and amortization
 
$
5,808

 
$
8,455

 
$
1,190

 
$
8,510

 
$
—

 
$
23,963

Total Assets
 
$
2,297,980

 
$
840,762

 
$
413,520

 
$
623,326

 
$
—

 
$
4,175,588

Average headcount
 
6,998

 
4,301

 
970

 
2,634

 
—

 
14,903

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,252,187

 
$
390,830

 
$
590,385

 
$
122,352

 
$
—

 
$
3,355,754

Intersegment revenues (1)
 
79,728

 
8,742

 
32,255

 
100

 
(120,825
)
 
—

   Total revenues
 
$
2,331,915

 
$
399,572

 
$
622,640

 
$
122,452

 
$
(120,825
)
 
$
3,355,754

Net revenues
 
$
378,073

 
$
93,368

 
$
57,036

 
$
29,985

 
$
—

 
$
558,462

Operating income
 
$
171,733

 
$
17,047

 
$
17,733

 
$
4,754

 
$
—

 
$
211,267

Depreciation and amortization
 
$
5,547

 
$
5,073

 
$
983

 
$
6,054

 
$
—

 
$
17,657

Total Assets
 
$
2,115,467

 
$
625,267

 
$
405,832

 
$
517,496

 
$
—

 
$
3,664,062

Average headcount (2)
 
6,869

 
3,559

 
956

 
2,322

 
—

 
13,706


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
(2) Average headcount does not include employees of APC added on September 30, 2016.



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October 31, 2017
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BUSINESS SEGMENT INFORMATION
(unaudited, dollars in thousands)

 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
7,110,223

 
$
1,549,742

 
$
1,821,094

 
$
428,535

 
$
—

 
$
10,909,594

Intersegment revenues (1)
 
329,193

 
23,456

 
116,281

 
13,776

 
(482,706
)
 
—

   Total revenues
 
$
7,439,416

 
$
1,573,198

 
$
1,937,375

 
$
442,311

 
$
(482,706
)
 
$
10,909,594

Net revenues
 
$
1,109,749

 
$
357,411

 
$
171,936

 
$
97,105

 
—

 
$
1,736,201

Operating income
 
$
447,553

 
$
75,006

 
$
40,487

 
$
1,197

 
—

 
$
564,243

Depreciation and amortization
 
$
17,104

 
$
24,574

 
$
3,534

 
$
24,128

 
—

 
$
69,340

Total Assets
 
$
2,297,980

 
$
840,762

 
$
413,520

 
$
623,326

 
—

 
$
4,175,588

Average headcount
 
6,921

 
4,113

 
966

 
2,590

 
—

 
14,590

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NAST
 
Global Forwarding
 
Robinson Fresh
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
6,456,281

 
$
1,098,715

 
$
1,814,682

 
$
359,760

 
$
—

 
$
9,729,438

Intersegment revenues (1)
 
211,540

 
23,585

 
83,200

 
642

 
(318,967
)
 
—

   Total revenues
 
$
6,667,821

 
$
1,122,300

 
$
1,897,882

 
$
360,402

 
$
(318,967
)
 
$
9,729,438

Net revenues
 
$
1,161,074

 
$
283,458

 
$
183,041

 
$
88,439

 
$
—

 
$
1,716,012

Operating income
 
$
516,805

 
$
56,300

 
$
62,777

 
$
8,084

 
—

 
$
643,966

Depreciation and amortization
 
$
16,551

 
$
15,231

 
$
2,590

 
$
18,344

 
—

 
$
52,716

Total Assets
 
$
2,115,467

 
$
625,267

 
$
405,832

 
$
517,496

 
—

 
$
3,664,062

Average headcount (2)
 
6,767

 
3,523

 
939

 
2,249

 
—

 
13,478


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.
(2) Average headcount does not include employees of APC added on September 30, 2016.



(more)
C.H. Robinson Worldwide, Inc.
October 31, 2017
Page 9



CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)


 
September 30, 2017
 
December 31, 2016
Assets
 
 
 
   Current assets:
 
 
 
     Cash and cash equivalents
$
297,307

 
$
247,666

     Receivables, net
2,104,314

 
1,711,191

     Other current assets
53,225

 
49,245

        Total current assets
2,454,846

 
2,008,102

 
 
 
 
  Property and equipment, net
232,905

 
232,953

  Intangible and other assets
1,487,837

 
1,446,703

Total assets
$
4,175,588

 
$
3,687,758

 
 
 
 
Liabilities and stockholders’ investment
 
 
 
  Current liabilities:
 
 
 
     Accounts payable and outstanding checks
$
1,104,060

 
$
921,788

     Accrued compensation
92,005

 
98,107

     Accrued income taxes
11,477

 
15,472

     Other accrued expenses
59,760

 
70,351

     Current portion of debt
719,000

 
740,000

        Total current liabilities
1,986,302

 
1,845,718

 
 
 
 
Long term debt
750,000

 
500,000

Noncurrent income taxes payable
17,774

 
18,849

Deferred tax liability
66,396

 
65,122

  Other long-term liabilities
241

 
222

Total liabilities
2,820,713

 
2,429,911

 
 
 
 
Total stockholders’ investment
1,354,875

 
1,257,847

Total liabilities and stockholders’ investment
$
4,175,588

 
$
3,687,758



(more)
C.H. Robinson Worldwide, Inc.
October 31, 2017
Page 10



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except operational data)

 
Nine Months Ended
 
September 30,
 
2017
 
2016
Operating activities:
 
 
 
  Net income
$
352,337

 
$
391,081

  Stock-based compensation
24,509

 
30,626

  Depreciation and amortization
69,340

 
52,716

  Provision for doubtful accounts
11,176

 
2,738

  Deferred income taxes
(6,779
)
 
21,832

  Excess tax benefit on stock-based compensation
(11,908
)
 
(17,207
)
  Other
1,352

 
566

Changes in operating elements, net of acquisitions:
 
 
 
  Receivables
(377,280
)
 
(137,813
)
  Prepaid expenses and other
677

 
(12,148
)
  Other non-current assets
(2,220
)
 
(2,793
)
  Accounts payable and outstanding checks
166,152

 
93,510

  Accrued compensation and profit-sharing contribution
(6,102
)
 
(50,105
)
  Accrued income taxes
7,873

 
14,048

  Other accrued liabilities
(10,778
)
 
(10,223
)
      Net cash provided by operating activities
218,349

 
376,828

 
 
 
 
Investing activities:
 
 
 
  Purchases of property and equipment
(32,132
)
 
(56,125
)
  Purchases and development of software
(14,286
)
 
(14,986
)
  Acquisitions, net of cash
(48,446
)
 
(220,203
)
  Other
204

 
(735
)
       Net cash used for investing activities
(94,660
)
 
(292,049
)
 
 
 
 
Financing activities:
 
 
 
  Borrowings on accounts receivable securitization facility
250,000

 
—

  Borrowings on line of credit
6,448,000

 
4,415,000

  Repayments on line of credit
(6,469,000
)
 
(4,140,000
)
  Net repurchases of common stock
(127,467
)
 
(129,302
)
  Excess tax benefit on stock-based compensation
—

 
17,207

  Cash dividends
(192,765
)
 
(191,129
)
      Net cash used for financing activities
(91,232
)
 
(28,224
)
Effect of exchange rates on cash
17,184

 
(335
)
 
 
 
 
      Net change in cash and cash equivalents
49,641

 
56,220

Cash and cash equivalents, beginning of period
247,666

 
168,229

Cash and cash equivalents, end of period
$
297,307

 
$
224,449

 
 
 
 
 
As of September 30,
Operational Data:
2017
 
2016 (1)
  Employees
14,998

 
14,023

(1) Includes 313 APC Logistics employees added on September 30, 2016 
Source: C.H. Robinson
###