Freaking cool CH Robinson – it's the operating model, stupid!
Bless the ‘new operating model’
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PRESS RELEASE
CH Robinson Reports 2021 Third Quarter Results
MINNEAPOLIS, MN, October 26, 2021 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2021.
Third Quarter Key Metrics:
– Total revenues increased 48.3% to $6.3 billion
– Gross profits increased 43.5% to $839.0 million
– Adjusted gross profits(1) increased 43.3% to $844.2 million
– Income from operations increased 84.7% to $310.8 million
– Adjusted operating margin(1) increased 820 basis points to 36.8%
– Diluted earnings per share (EPS) increased 85.0% to $1.85
– Cash used by operations improved by $95.1 million to $73.5 million
(1) Adjusted gross profits and adjusted operating margin 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 page 10 for further discussion and a GAAP to Non-GAAP reconciliation.
“The third quarter was another quarter of progress and strong execution, resulting in record quarterly financial results,” said Bob Biesterfeld, Chief Executive Officer of C.H. Robinson. “The trajectory of our business is heading in the right direction as we continue to leverage our tech-plus strategy to help customers navigate through an extremely challenging and capacity-constrained environment, which we expect to continue. Demand for our global suite of services and for the benefit of our powerful technology platform continues to be strong, and digitalization continues to take hold and be engrained in an increasing percentage of our business.”
Summary of Third Quarter Results Compared to the Third Quarter of 2020
– Total revenues increased 48.3% to $6.3 billion, driven primarily by higher pricing and higher volume across most of our services.
– Gross profits increased 43.5% to $839.0 million. Adjusted gross profits increased 43.3% to $844.2 million, primarily driven by higher adjusted gross profit per transaction and higher volume across most of our services.
– Operating expenses increased 26.7% to $533.4 million. Personnel expenses increased 32.0% to $399.9 million, primarily due to higher incentive compensation costs and also due to the benefit realized in the third quarter of 2020 from our short-term, pandemic-related cost reductions. Average headcount increased 7.1%. Selling, general and administrative (“SG&A”) expenses of $133.5 million increased 13.0%, primarily due to the benefit realized in the third quarter of 2020 from our short-term, pandemic-related cost reductions.
– Income from operations totaled $310.8 million, up 84.7% due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin of 36.8% increased 820 basis points.
– Interest and other expenses totaled $16.7 million, consisting primarily of $13.1 million of interest expense, which increased $1.2 million versus last year due to a higher average debt balance. The third quarter also included a $3.8 million unfavorable impact from foreign currency revaluation and realized foreign currency gains and losses.
– The effective tax rate in the quarter was 16.0% compared to 15.1% in the third quarter last year. The rate increase was due primarily to a lower tax benefit related to stock-based compensation.
– Net income totaled $247.1 million, up 81.0% from a year ago. Diluted EPS of $1.85 increased 85.0%.
To read the full release, please click here.
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