EX-99.1 2 ex991earningsreleaseq30930.htm EX-99.1 Document

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C.H. Robinson
14701 Charlson Rd.
Eden Prairie, MN 55347
www.chrobinson.com

FOR IMMEDIATE RELEASE
FOR INQUIRIES, CONTACT:
Chuck Ives, Senior Director of Investor Relations
Email: chuck.ives@chrobinson.com

C.H. Robinson Reports 2024 Third Quarter Results
Eden Prairie, MN, October 30, 2024 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2024.
Third Quarter Highlights:
•Significant year-over-year increase in profitability, driven by strong execution, disciplined volume growth and improvement in gross profit, productivity and operating leverage
•Gross profits increased 15.5% to $723.8 million
•Income from operations increased 58.7% to $180.1 million
•Adjusted operating margin(1) increased 660 basis points to 24.5%
•Adjusted operating margin, excluding restructuring and loss on divestiture(1), increased 1,120 basis points to 32.9%
•Diluted earnings per share (EPS) increased 17.6% to $0.80
•Adjusted EPS(1) increased 45.5% to $1.28
•Cash generated by operations decreased by $97.2 million to $108.1 million provided by operations, due to an increase in net operating working capital related to higher ocean rates
(1) Adjusted operating margin, adjusted operating margin, excluding restructuring and loss on divestiture, and adjusted EPS 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 pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

"I’m pleased with our third quarter results that reflect continued improvement in our execution, as we continue to deploy our new operating model. We are raising the bar, even in a historically prolonged freight recession, with strong execution and disciplined volume growth across divisions while delivering exceptional service for our customers and carriers," said C.H. Robinson's President and Chief Executive
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Officer, Dave Bozeman. "I want to thank our people, one of our greatest competitive advantages, for their relentless efforts to embrace our new operating model and execute in a fit, fast and focused way so we can keep pushing that bar higher."

"Due to a focus on constantly testing market conditions and optimizing yield, we improved the quality of our volume in the third quarter and continued to expand our NAST gross profit margin. We also continued to push our efficiency to higher levels in both NAST and Global Forwarding, and we remain on track to deliver greater than 30% compound growth in productivity over the two-year period from the end of 2022 to end of 2024."

"Our new operating model has changed how we discover and inspect root cause issues and quickly implement countermeasures to improve the level of our operational execution. The reliability of our operating reviews continues to increase, as we leverage our data rich environment to inform our decision making and enhance our competitive differentiation," said Bozeman. "At an organizational level, we continue to cascade the operating model deeper into the organization and build operational muscle at various levels of the enterprise to deliver on our strategic roadmap. As part of this effort, an evolving toolkit is being used by our employees in the form of problem resolution, balanced scorecard reviews, daily management, and value stream mapping, to name a few."

"Empowering our people with the Robinson operating model is creating a flywheel of performance, talent development and accountability that is evolving our culture to be driven by progress, execution and proactive problem identification and resolution. This is showing up in improvements such as more disciplined pricing and better decisions on the volume that we’re seeking. We are still early in our journey, but the operating model is helping us execute a solid strategy even better, and we expect further improvement as our team continues to embrace this new way of operating. As I’ve said before, I know from my past experiences of implementing Lean operating models that improvement isn’t always linear. But I’m confident in the team’s willingness and ability to drive a higher and more consistent level of discipline in our operational execution," Bozeman concluded.
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Summary of Third Quarter of 2024 Results Compared to the Third Quarter of 2023
•Total revenues increased 7.0% to $4.6 billion, primarily driven by higher pricing and volume in our ocean services, partially offset by lower pricing and volume in truckload services.
•Gross profits increased 15.5% to $723.8 million. Adjusted gross profits increased 15.8% to $735.3 million, primarily driven by higher adjusted gross profit per transaction in our ocean and truckload services.
•Operating expenses increased 6.5% to $555.1 million. Personnel expenses increased 5.2% to $361.6 million, primarily due to higher variable compensation, partially offset by cost optimization efforts. Average employee headcount declined 9.6%. Other selling, general and administrative (“SG&A”) expenses increased 8.9% to $193.6 million, primarily due to a $57.0 million loss on the planned divestiture of our Europe Surface Transportation business. The prior year included $21.4 million of restructuring expenses, primarily related to the divestiture of our operations in Argentina. In addition, other SG&A expenses decreased across several expense categories in the current year.
•Income from operations totaled $180.1 million, up 58.7% due to the increase in adjusted gross profits, partially offset by the increase in operating expenses. Adjusted operating margin(1) of 24.5% increased 660 basis points.
•Interest and other income/expense, net totaled $36.3 million of expense, consisting primarily of $22.1 million of interest expense, which increased $0.2 million versus last year, and a $15.1 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate in the quarter was 32.4%, compared to 11.7% in the third quarter last year. The higher rate in the third quarter of this year was driven by the impact of higher pre-tax income and non-recurring discrete items in the quarter, partially offset by increased tax benefit related to stock-based compensation and higher U.S. tax credits.
•Net income totaled $97.2 million, up 18.6% from a year ago. Diluted EPS of $0.80 increased 17.6%. Adjusted EPS(1) of $1.28 increased 45.5%.
(1) Adjusted operating margin and adjusted EPS 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 pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

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Summary of 2024 Year-to-Date Results Compared to 2023

•Total revenues increased 1.2% to $13.5 billion, primarily driven by higher pricing and volume in our ocean services, partially offset by lower pricing in our truckload services.
•Gross profits increased 4.4% to $2.0 billion. Adjusted gross profits increased 4.8% to $2.1 billion, primarily driven by higher adjusted gross profit per transaction in our ocean and truckload services.
•Operating expenses increased 1.0% to $1.6 billion. Personnel expenses decreased 0.2% to $1.1 billion, primarily due to cost optimization efforts partially offset by higher variable compensation. Average employee headcount declined 10.5%. Other SG&A expenses increased 3.9% to $493.2 million primarily due to the $57.0 million loss on the planned divestiture of our Europe Surface Transportation business. The prior year included $22.6 million of restructuring expenses, primarily related to the divestiture of our operations in Argentina. In addition, other SG&A expenses decreased across several expense categories in the current year.
•Income from operations totaled $485.3 million, up 19.2% from last year, due to the increase in adjusted gross profits, partially offset by an increase in operating expenses. Adjusted operating margin(1) of 23.3% increased 280 basis points.
•Interest and other income/expense, net totaled $74.6 million of expense, primarily consisting of $67.1 million of interest expense, which decreased $1.5 million versus last year, due to a lower average debt balance. The year-to-date results also include a $10.7 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate for the nine months ended September 30, 2024 was 23.0% compared to 13.5% in the year-ago period. The higher rate in the current period was driven by the impact of higher pre-tax income and non-recurring discrete items in the quarter, partially offset by higher U.S. tax credits.
•Net income totaled $316.4 million, up 7.6% from a year ago. Diluted EPS of $2.63 increased 6.9%. Adjusted EPS(1) of $3.30 increased 17.9%.
(1) Adjusted operating margin and adjusted EPS 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 pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

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North American Surface Transportation (“NAST”) Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Total revenues$2,934,617 $3,086,970 (4.9)%$8,924,839 $9,470,425 (5.8)%
Adjusted gross profits(1)
420,664 386,510 8.8 %1,237,431 1,213,697 2.0 %
Income from operations148,767 112,121 32.7 %398,764 364,002 9.5 %
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the NAST segment totaled $2.9 billion, a decrease of 4.9% over the prior year, primarily driven by lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. NAST adjusted gross profits increased 8.8% in the quarter to $420.7 million. Adjusted gross profits in truckload increased 16.6% due to a 21.0% increase in adjusted gross profit per shipment, partially offset by a 3.5% decrease in truckload shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 2.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, also decreased 0.5%, resulting in a 21.5% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 3.7% versus the year-ago period, driven by a 2.5% increase in LTL volume and a 1.0% increase in adjusted gross profit per order. NAST overall volume increased modestly for the quarter. Operating expenses decreased 0.9%, primarily due to cost optimization efforts and lower credit losses, which were partially offset by higher variable compensation. NAST average employee headcount was down 10.9% in the quarter. Income from operations increased 32.7% to $148.8 million, and adjusted operating margin expanded 640 basis points to 35.4%.


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Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Total revenues$1,141,190 $719,045 58.7 %$2,921,050 $2,288,890 27.6 %
Adjusted gross profits(1)
234,636 169,893 38.1 %598,748 527,043 13.6 %
Income from operations88,115 3,491 N/M160,649 63,254 154.0 %
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the Global Forwarding segment increased 58.7% to $1.1 billion, primarily driven by higher pricing and volume in our ocean services. Adjusted gross profits increased 38.1% in the quarter to $234.6 million. Ocean adjusted gross profits increased 57.4%, driven by a 47.0% increase in adjusted gross profit per shipment and a 7.0% increase in shipments. Air adjusted gross profits increased 11.4%, driven by a 20.0% increase in metric tons shipped, partially offset by a 7.0% decrease in adjusted gross profit per metric ton shipped. Customs adjusted gross profits increased 13.5%, driven by both a 7.0% increase in adjusted gross profit per transaction and a 6.5% increase in transaction volume. Operating expenses decreased 11.9%, primarily due to a $23.6 million of restructuring expenses in the prior year, primarily related to the divestiture of our operations in Argentina, and due to cost optimization efforts in the current year. Third quarter average employee headcount decreased 10.4%. Income from operations increased to $88.1 million, and adjusted operating margin expanded 3,550 basis points to 37.6% in the quarter.


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All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Total revenues$568,834 $535,015 6.3 %$1,694,411 $1,615,241 4.9 %
Adjusted gross profits(1):
Robinson Fresh$36,708 $31,083 18.1 %$110,327 $100,123 10.2 %
Managed Services27,949 29,427 (5.0)%85,637 87,350 (2.0)%
Other Surface Transportation15,296 17,936 (14.7)%48,248 57,772 (16.5)%
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter Robinson Fresh adjusted gross profits increased 18.1% to $36.7 million due to an increase in integrated supply chain solutions for retail and foodservice customers. Managed Services adjusted gross profits decreased 5.0% due to lower transaction volume. Other Surface Transportation adjusted gross profits decreased 14.7% to $15.3 million, primarily due to a 17.0% decrease in Europe truckload adjusted gross profits.

Other Income Statement Items
Interest and other income/expense, net totaled $36.3 million of expense, consisting primarily of $22.1 million of interest expense, which increased $0.2 million versus the third quarter of 2023 and a $15.1 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
The third quarter effective tax rate was 32.4%, up from 11.7% last year. The higher rate in the third quarter of this year was driven by the impact of higher pre-tax income and non-recurring discrete items in the quarter, partially offset by increased tax benefit related to stock-based compensation and higher U.S. tax credits. For 2024, we now expect our full-year effective tax rate to be 18% to 20%.
Diluted weighted average shares outstanding in the quarter were up 1.2%.


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Cash Flow Generation and Capital Distribution
Cash generated from operations totaled $108.1 million in the third quarter, compared to $205.2 million of cash generated from operations in the third quarter of 2023. The $97.2 million decrease in cash flow from operations was primarily related to a $190.0 million decline in cash provided by changes in net operating working capital, due to a $165.5 million sequential increase in net operating working capital in the third quarter of 2024 compared to a $24.5 million sequential decrease in the third quarter of 2023.
In the third quarter of 2024, cash returned to shareholders totaled $77.1 million, with $73.0 million in cash dividends and $4.1 million in repurchases of common stock.
Capital expenditures totaled $17.3 million in the quarter. Capital expenditures for 2024 are now expected to be $75 million to $85 million.

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About C.H. Robinson
C.H. Robinson delivers logistics like no one else™. Companies around the world look to us to reimagine supply chains, advance freight technology, and solve logistics challenges—from the simple to the most complex. Over 90,000 customers and 450,000 contract carriers in our network trust us to manage $22 billion in freight annually. Through our unmatched expertise, unrivaled scale, and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air, and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW).

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, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; 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.

Conference Call Information:
C.H. Robinson Worldwide Third Quarter 2024 Earnings Conference Call
Wednesday, October 30, 2024; 5:00 p.m. Eastern Time
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 chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

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Adjusted Gross Profit by Service Line
(in thousands)

This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines.

Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Adjusted gross profits(1):
  Transportation
     Truckload$279,564 $245,439 13.9 %$811,164 $795,240 2.0 %
     LTL143,228 137,949 3.8 %430,187 413,771 4.0 %
     Ocean163,314 104,116 56.9 %392,831 321,692 22.1 %
     Air33,607 30,201 11.3 %95,045 95,246 (0.2)%
     Customs28,266 24,904 13.5 %81,013 73,366 10.4 %
     Other logistics services54,338 64,838 (16.2)%171,216 196,333 (12.8)%
     Total transportation702,317 607,447 15.6 %1,981,456 1,895,648 4.5 %
  Sourcing32,936 27,402 20.2 %98,935 90,337 9.5 %
Total adjusted gross profits$735,253 $634,849 15.8 %$2,080,391 $1,985,985 4.8 %
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.
10

GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Revenues:
Transportation$4,278,300 $4,029,407 6.2 %$12,482,818 $12,442,199 0.3 %
Sourcing366,341 311,623 17.6 %1,057,482 932,357 13.4 %
Total revenues4,644,641 4,341,030 7.0 %13,540,300 13,374,556 1.2 %
Costs and expenses:
Purchased transportation and related services3,575,983 3,421,960 4.5 %10,501,362 10,546,551 (0.4)%
Purchased products sourced for resale333,405 284,221 17.3 %958,547 842,020 13.8 %
Direct internally developed software amortization11,441 8,233 39.0 %32,546 24,299 33.9 %
Total direct expenses3,920,829 3,714,414 5.6 %11,492,455 11,412,870 0.7 %
Gross profit$723,812 $626,616 15.5 %$2,047,845 $1,961,686 4.4 %
Plus: Direct internally developed software amortization11,441 8,233 39.0 %32,546 24,299 33.9 %
Adjusted gross profit$735,253 $634,849 15.8 %$2,080,391 $1,985,985 4.8 %
Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring and loss on divestiture is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring and loss on divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring and loss on divestiture are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring and loss on divestiture are presented below:
Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Total revenues$4,644,641 $4,341,030 7.0 %$13,540,300 $13,374,556 1.2 %
Income from operations180,119 113,522 58.7 %485,342 407,178 19.2 %
Operating margin3.9 %2.6 %130 bps3.6 %3.0 %60 bps
Adjusted gross profit$735,253 $634,849 15.8 %$2,080,391 $1,985,985 4.8 %
Income from operations180,119 113,522 58.7 %485,342 407,178 19.2 %
Adjusted operating margin24.5 %17.9 %660  bps23.3 %20.5 %280  bps
Adjusted gross profit$735,253 $634,849 15.8 %$2,080,391 $1,985,985 4.8 %
Adjusted income from operations241,584 137,985 75.1 %574,941 449,495 27.9 %
Adjusted operating margin - excluding restructuring and loss on divestiture32.9 %21.7 %1,120  bps27.6 %22.6 %500  bps
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GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)

Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impact of restructuring, losses from divestitures, and foreign currency losses from our Argentina operations. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and loss on divestiture, adjusted net income and adjusted net income per share (diluted). The reconciliation of these non-GAAP measures are presented below (in thousands except per share data):
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Three Months Ended September 30, 2024
Non-GAAP Reconciliation:
Income (loss) from operations$148,767 $88,115 $(56,763)$180,119 
Severance and other personnel expenses1,238 461 1,221 2,920 
Other selling, general, and administrative expenses560 855 57,130 58,545 
Total adjustments to income (loss) from operations(1)
1,798 1,316 58,351 61,465 
Adjusted income from operations$150,565 $89,431 $1,588 $241,584 
Adjusted gross profit$420,664 $234,636 $79,953 $735,253 
Adjusted income from operations150,565 89,431 1,588 241,584 
Adjusted operating margin - excluding restructuring and loss on divestiture35.8 %38.1 %2.0 %32.9 %
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Nine Months Ended September 30, 2024
Income (loss) from operations$398,764 $160,649 $(74,071)$485,342 
Severance and other personnel expenses9,022 5,855 5,430 20,307 
Other selling, general, and administrative expenses6,214 2,448 60,630 69,292 
Total adjustments to income (loss) from operations(2)
15,236 8,303 66,060 89,599 
Adjusted income (loss) from operations$414,000 $168,952 $(8,011)$574,941 
Adjusted gross profit$1,237,431 $598,748 $244,212 $2,080,391 
Adjusted income (loss) from operations414,000 168,952 (8,011)574,941 
Adjusted operating margin - excluding restructuring and loss on divestiture33.5 %28.2 %N/M27.6 %
Three Months Ended
September 30, 2024		Nine Months Ended
September 30, 2024
$ in 000'sper share$ in 000'sper share
Net income and per share (diluted)$97,229 $0.80 $316,384 $2.63 
Restructuring and related costs, pre-tax4,429 0.04 32,563 0.28 
Loss on divestiture, pre-tax57,036 0.47 57,036 0.47 
Tax effect of adjustments(3,176)(0.03)(9,922)(0.08)
Adjusted net income and per share (diluted)$155,518 $1.28 $396,061 $3.30 
____________________________________________
(1) The three months ended September 30, 2024 include restructuring expenses of $2.9 million related to workforce reductions and $58.5 million of other charges, which includes a $57.0 million loss on the planned divestiture of our Europe Surface Transportation business.
(2) The nine months ended September 30, 2024 include restructuring expenses of $20.3 million related to workforce reductions and $69.3 million of
other charges, which includes a $57.0 million loss on the planned divestiture of our Europe Surface Transportation business, an impairment of internally developed software, and charges related to reducing our facilities footprint including early termination or abandonment of office buildings under operating leases.
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NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Three Months Ended September 30, 2023
Non-GAAP Reconciliation:
Income (loss) from operations$112,121 $3,491 $(2,090)$113,522 
Severance and other personnel expenses(73)2,513 578 3,018 
Other selling, general, and administrative expenses4 21,079 362 21,445 
Total adjustments to income (loss) from operations(1)
(69)23,592 940 24,463 
Adjusted income (loss) from operations$112,052 $27,083 $(1,150)$137,985 
Adjusted gross profit$386,510 $169,893 $78,446 $634,849 
Adjusted income (loss) from operations112,052 27,083 (1,150)137,985 
Adjusted operating margin - excluding restructuring and loss on divestiture29.0 %15.9 %N/M21.7 %
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Nine Months Ended September 30, 2023
Income (loss) from operations$364,002 $63,254 $(20,078)$407,178 
Severance and other personnel expenses1,083 4,742 13,918 19,743 
Other selling, general, and administrative expenses8 21,242 1,324 22,574 
Total adjustments to income (loss) from operations(2)
1,091 25,984 15,242 42,317 
Adjusted income (loss) from operations$365,093 $89,238 $(4,836)$449,495 
Adjusted gross profit$1,213,697 $527,043 $245,245 $1,985,985 
Adjusted income (loss) from operations365,093 89,238 (4,836)449,495 
Adjusted operating margin - excluding restructuring and loss on divestiture30.1 %16.9 %N/M22.6 %
Three Months Ended
September 30, 2023		Nine Months Ended
September 30, 2023
$ in 000'sper share$ in 000'sper share
Net income and per share (diluted)$81,949 $0.68 $294,156 $2.46 
Restructuring and related costs, pre-tax(1)(2)
(139)— 17,715 0.15 
Loss on divestiture, pre-tax24,602 0.21 24,602 0.20 
Foreign currency loss on divested operations, pre-tax5,112 0.04 8,921 0.07 
Tax effect of adjustments(5,469)(0.05)(9,755)(0.08)
Adjusted net income and per share (diluted)$106,055 $0.88 $335,639 $2.80 

____________________________________________
(1) The three months ended September 30, 2023 includes restructuring expenses of $3.0 million related to workforce reductions and $21.4 million of other charges, primarily related to the divestiture of our Argentina operations.
(2) The nine months ended September 30, 2023 includes restructuring expenses of $19.7 million related to workforce reductions and $22.6 million of other charges, primarily related to the divestiture of our Argentina operations.
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Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share data)
Three Months Ended September 30,Nine Months Ended September 30,
20242023% change20242023% change
Revenues:
 Transportation$4,278,300 $4,029,407 6.2 %$12,482,818 $12,442,199 0.3 %
 Sourcing366,341 311,623 17.6 %1,057,482 932,357 13.4 %
   Total revenues4,644,641 4,341,030 7.0 %13,540,300 13,374,556 1.2 %
Costs and expenses:
 Purchased transportation and related services3,575,983 3,421,960 4.5 %10,501,362 10,546,551 (0.4)%
 Purchased products sourced for resale333,405 284,221 17.3 %958,547 842,020 13.8 %
 Personnel expenses361,559 343,532 5.2 %1,101,868 1,103,915 (0.2)%
Other selling, general, and administrative expenses193,575 177,795 8.9 %493,181 474,892 3.9 %
   Total costs and expenses4,464,522 4,227,508 5.6 %13,054,958 12,967,378 0.7 %
Income from operations180,119 113,522 58.7 %485,342 407,178 19.2 %
Interest and other income/expense, net(36,282)(20,748)74.9 %(74,587)(67,272)10.9 %
Income before provision for income taxes143,837 92,774 55.0 %410,755 339,906 20.8 %
Provision for income taxes46,608 10,825 330.6 %94,371 45,750 106.3 %
Net income$97,229 $81,949 18.6 %$316,384 $294,156 7.6 %
Net income per share (basic)$0.81 $0.69 17.4 %$2.65 $2.48 6.9 %
Net income per share (diluted)$0.80 $0.68 17.6 %$2.63 $2.46 6.9 %
Weighted average shares outstanding (basic)119,860 118,464 1.2 %119,542 118,532 0.9 %
Weighted average shares outstanding (diluted)121,179 119,751 1.2 %120,155 119,762 0.3 %


14

Business Segment Information
(unaudited, in thousands, except average employee headcount)
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Three Months Ended September 30, 2024
Total revenues$2,934,617 $1,141,190 $568,834 $4,644,641 
Adjusted gross profits(1)
420,664 234,636 79,953 735,253 
Income (loss) from operations148,767 88,115 (56,763)180,119 
Depreciation and amortization4,904 2,608 16,436 23,948 
Total assets(2)
3,026,031 1,566,427 1,020,897 5,613,355 
Average employee headcount5,595 4,552 3,938 14,085 
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Three Months Ended September 30, 2023
Total revenues$3,086,970 $719,045 $535,015 $4,341,030 
Adjusted gross profits(1)
386,510 169,893 78,446 634,849 
Income (loss) from operations112,121 3,491 (2,090)113,522 
Depreciation and amortization5,882 5,446 14,216 25,544 
Total assets(2)
3,162,720 1,081,262 1,073,685 5,317,667 
Average employee headcount6,278 5,082 4,217 15,577 
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.
(2) All cash and cash equivalents are included in All Other and Corporate.


15

Business Segment Information
(unaudited, in thousands, except average employee headcount)
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Nine Months Ended September 30, 2024
Total revenues$8,924,839 $2,921,050 $1,694,411 $13,540,300 
Adjusted gross profits(1)
1,237,431 598,748 244,212 2,080,391 
Income (loss) from operations398,764 160,649 (74,071)485,342 
Depreciation and amortization15,779 8,245 48,856 72,880 
Total assets(2)
3,026,031 1,566,427 1,020,897 5,613,355 
Average employee headcount5,800 4,714 4,023 14,537 
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Nine Months Ended September 30, 2023
Total revenues$9,470,425 $2,288,890 $1,615,241 $13,374,556 
Adjusted gross profits(1)
1,213,697 527,043 245,245 1,985,985 
Income (loss) from operations364,002 63,254 (20,078)407,178 
Depreciation and amortization17,389 16,410 42,100 75,899 
Total assets(2)
3,162,720 1,081,262 1,073,685 5,317,667 
Average employee headcount6,574 5,276 4,390 16,240 

____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.
(2) All cash and cash equivalents are included in All Other and Corporate.




16

Condensed Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2024December 31, 2023
Assets
   Current assets:
     Cash and cash equivalents$131,704 $145,524 
     Receivables, net of allowance for credit loss2,630,350 2,381,963 
     Contract assets, net of allowance for credit loss273,251 189,900 
     Prepaid expenses and other137,871 163,307 
     Assets held for sale165,810 — 
        Total current assets3,338,986 2,880,694 
 
  Property and equipment, net of accumulated depreciation and amortization132,632 144,718 
  Right-of-use lease assets333,936 353,890 
  Intangible and other assets, net of accumulated amortization1,807,801 1,845,978 
Total assets$5,613,355 $5,225,280 
Liabilities and stockholders’ investment
  Current liabilities:
     Accounts payable and outstanding checks$1,372,807 $1,370,334 
     Accrued expenses:
        Compensation165,163 135,104 
        Transportation expense212,608 147,921 
        Income taxes7,178 4,748 
        Other accrued liabilities161,870 159,435 
Current lease liabilities74,538 74,451 
Current portion of debt150,000 160,000 
Liabilities held for sale96,673 — 
        Total current liabilities2,240,837 2,051,993 
Long-term debt1,411,356 1,420,487 
Noncurrent lease liabilities281,015 297,563 
Noncurrent income taxes payable24,215 21,289 
Deferred tax liabilities11,714 13,177 
Other long-term liabilities4,152 2,074 
Total liabilities3,973,289 3,806,583 
Total stockholders’ investment1,640,066 1,418,697 
Total liabilities and stockholders’ investment$5,613,355 $5,225,280 

17

Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)
Nine Months Ended September 30,
Operating activities:2024
2023(1)
Net income$316,384 $294,156 
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
 Depreciation and amortization72,880 75,899 
 Provision for credit losses3,755 (4,032)
 Stock-based compensation64,249 37,309 
 Deferred income taxes(7,033)(35,269)
 Excess tax benefit on stock-based compensation(5,509)(9,899)
Loss on disposal group held for sale48,232 21,113 
Other operating activities11,845 3,740 
Changes in operating elements:
Receivables(398,059)525,761 
Contract assets (88,171)52,810 
Prepaid expenses and other24,588 (7,632)
Right of use asset5,884 20,374 
Accounts payable and outstanding checks77,397 (122,312)
Accrued compensation33,921 (106,943)
Accrued transportation expenses68,588 (42,481)
Accrued income taxes10,634 3,131 
Other accrued liabilities4,809 (2,636)
Lease liability(5,917)(17,737)
Other assets and liabilities2,677 (737)
Net cash provided by operating activities241,154 684,615 
Investing activities:
Purchases of property and equipment(19,977)(25,889)
Purchases and development of software(39,122)(42,086)
Proceeds from sale of property and equipment— 1,324 
Net cash used for investing activities(59,099)(66,651)
Financing activities:
Proceeds from stock issued for employee benefit plans79,914 46,061 
Stock tendered for payment of withholding taxes(23,902)(23,754)
Repurchase of common stock— (63,884)
Cash dividends(220,256)(218,942)
Payments on long-term borrowings(10,000)— 
Proceeds from short-term borrowings2,461,500 2,778,750 
Payments on short-term borrowings(2,471,500)(3,169,750)
Net cash used for financing activities(184,244)(651,519)
Effect of exchange rates on cash and cash equivalents(653)(6,708)
Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale(2,842)(40,263)
Less: net increase in cash and cash equivalents within assets held for sale(10,978)(2,486)
Cash and cash equivalents, beginning of period145,524 217,482 
Cash and cash equivalents, end of period$131,704 $174,733 
As of September 30,
Operational Data:20242023
Employees 13,956 15,391 
(1) The nine months ended September 30, 2023 has been adjusted to conform to current year presentation.

Source: C.H. Robinson
CHRW-IR
18