C.H. Robinson Reports Second Quarter Results

C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended June 30, 2013. Summarized financial results for the quarter ended June 30 are as follows (dollars in thousands, except per share data):
         
Three months ended June 30, Six months ended June 30,
        %         %
2013     2012     change 2013     2012     change
 
Total revenues $ 3,288,262 $ 2,955,714 11.3 % $ 6,282,529 $ 5,507,828 14.1 %
 

Net revenues:
Transportation
Truckload $ 264,335 $ 256,193 3.2 % $ 532,939 $ 519,775 2.5 %
LTL 60,711 56,445 7.6 % 119,202 108,272 10.1 %
Intermodal 9,920 10,019 -1.0 % 19,021 19,730 -3.6 %
Ocean 49,124 16,958 189.7 % 91,612 32,719 180.0 %
Air 20,202 10,577 91.0 % 36,970 19,450 90.1 %
Customs 9,769 3,934 148.3 % 18,375 7,334 150.5 %
Other logistics services   17,084       14,880 14.8 %   34,278       28,942 18.4 %
Total transportation 431,145 369,006 16.8 % 852,397 736,222 15.8 %
Sourcing 38,752 40,205 -3.6 % 70,598 72,148 -2.1 %
Payment services   2,705       16,312 -83.4 %   5,329       31,899 -83.3 %
Total net revenues 472,602 425,523 11.1 % 928,324 840,269 10.5 %
 

Operating expenses
 

290,126
     

240,609

20.6

%
 

577,142
     

485,810

18.8

%
Operating income 182,476 184,914 -1.3 % 351,182 354,459 -0.9 %
Net income $ 111,872     $ 114,582 -2.4 % $ 215,215     $ 221,082 -2.7 %
Diluted EPS $ 0.70 $ 0.71 -1.4 % $ 1.34 $ 1.36 -1.5 %
 

Pro Forma Comparison - The following shows the effects of the disposition of the Company’s T-Chek Payment Services business (“T-Chek”), which was completed in October 2012, and the acquisition of Phoenix International Freight Services, Ltd. (“Phoenix”), which was completed in November 2012, as if these transactions had occurred at the beginning of 2012. A reconciliation of these pro forma measures is described on page 4.
         
Three months ended June 30, Six months ended June 30,
2013     2012     % 2013     2012     %
      Reported     Pro Forma     change Reported     Pro Forma     change
Total net revenues $ 472,602 $ 458,208 3.1 % $ 928,324 $ 897,060 3.5 %
Income from operations 182,476 188,700 -3.3 % 351,182 356,899 -1.6 %
 

Discussion of Second Quarter 2013 Results

Our truckload net revenues increased 3.2 percent in the second quarter of 2013 compared to the second quarter of 2012. Our truckload volumes increased approximately nine percent in the second quarter of 2013 compared to the second quarter of 2012. Our North American truckload volumes increased approximately five percent. We estimate that our acquisition of Apreo Logistics S.A. (“Apreo”), which was completed in October 2012, contributed approximately four percent to our volume growth in the second quarter of 2013. Our truckload net revenue margin decreased in the second quarter of 2013 compared to the second quarter of 2012, due primarily to the net revenue margin decline of our European truckload business. In North America, our truckload net revenue margin was relatively flat as rates charged to our customers and truckload transportation costs increased approximately one percent.

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