Financial Data and Key Metrics Changes - The company reported Q3 total revenues of $4.3 billion, down 28% year-over-year, with adjusted gross profit (AGP) also down 28% or $252 million, driven by a 31.4% decline in North American Surface Transportation (NAST) and a 31.6% decline in Global Forwarding [111] - Q3 cash flow generated from operations was $205 million, a decline from $626 million in Q3 of the previous year, primarily due to changes in net operating working capital [115] - The company ended Q3 with approximately $1 billion in liquidity, including $837 million of committed funding and a cash balance of $175 million [116] Business Line Data and Key Metrics Changes - In the NAST truckload business, Q3 volume declined approximately 6% year-over-year, with a 4.5% decline on a per business day basis [112] - The average truckload line haul rate, excluding fuel surcharges, declined 16.5% year-over-year, resulting in a 34% year-over-year decrease in truckload AGP per mile and a 36.5% decrease in AGP per load [113] - In the Global Forwarding business, AGP generated was approximately $170 million, a 32% decline year-over-year, with ocean forwarding AGP declining by 35% year-over-year [22][112] Market Data and Key Metrics Changes - The freight market remains soft, with global freight demand continuing to be weak in Q3, leading to low spot rates and a loose market [15][111] - The company noted a mix of 70% contractual volume and 30% transactional volume in the truckload business, indicating a suppressed spot market [20][121] - The company observed a seasonal bump in spot rates in Q4, driven by holiday demand and some carriers taking time off [8][9] Company Strategy and Development Direction - The company is focused on improving customer and carrier experiences through enhanced visibility and increased automation, which has resulted in positive feedback and high net promoter scores [96] - The leadership is driving productivity improvements, targeting a 15% year-over-year improvement in shipments per person per day, with an 18% year-to-date improvement achieved by Q3 [97][108] - The company is leveraging generative AI and technology to streamline processes, reduce manual touches, and improve overall efficiency [29][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capacity to handle incremental volume without adding headcount, preparing for a market rebound [3][15] - The management highlighted the importance of maintaining financial strength and investing through cycles to meet customer needs [16] - The company expects to see continued pricing pressure in the LTL market due to temporary capacity exiting, but anticipates that some of this capacity will return [44][126] Other Important Information - The company has reduced Q3 operating expenses in NAST by 22% year-over-year, despite a volume decline of only 3.5% [97] - Personnel expenses for Q3 were $343.5 million, down 21.5% year-over-year, with a headcount reduction of 14.2% [24] - The company plans to return $76 million to shareholders in Q3 through dividends and share repurchases, equating to 92% of Q3 net income [31] Q&A Session Summary Question: How is October trending in terms of AGP? - Management noted that the mix of volume in truckload is currently 70% contract and 30% spot, with expectations for improved AGP as demand returns [121] Question: What is the outlook for personnel costs heading into Q4? - Personnel expenses are expected to increase from Q3 to Q4, primarily due to lower incentive costs in Q3 that are not expected to repeat [122] Question: What impact does the exit of certain competitors have on the market? - Management indicated that while the exit of competitors like Convoy does not have a material impact on results, it does create opportunities for capturing profitable volume [41][126] Question: How does the company plan to balance market share and profitability during the bid season? - The company aims to gain both margin and market share, operating within the current market dynamics while protecting margins [78]

Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings 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 e ...

22 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------|-------|-----------------------|-------|-----------------------------|-------|---------------|--------|---------------------------|-------| | | | Three Months \n2023 | | Ended June 30, \n2022 | | Six \n2023 | Months | Ended June 30, \n2022 | | | Revenues: | | | | | | | | | | | Transportation | $ | 4,084,827 | $ | 6,465,642 | | $ 8,412,792 | | $ 12,993,993 | | | Sourcing | | 3 ...

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET Company Participants Dave Bozeman - President, Chief Executive Officer Mike Zechmeister - Chief Financial Officer Arun Rajan - Chief Operating Officer Chuck Ives - Director of Investor Relations Conference Call Participants Jack Atkins - Stephens Scott Group - Wolfe Research David Vernon - Bernstein Christopher Kuhn - The Benchmark Company Jason Seidl - TD Cowen Matthew Spahn - TCW Stephanie Moore - Jeffer ...

3 2. Growth rates are rounded to the nearest 0.5 percent. 18% 1 Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings 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 expectat ...

Revenue and Profit Decline - Total revenues decreased 32.3% to $4.6 billion, driven primarily by lower ocean and truckload pricing[113] - Adjusted gross profits decreased 24.3% to $685.6 million, primarily driven by lower adjusted gross profits per transaction in ocean and truckload[113] - Income from operations decreased 53.4% to $161.0 million, driven by decreased adjusted gross profits, partially offset by the decline in operating expenses[118] - Adjusted operating margin of 23.5% declined 1,460 basis points[118] - Net income totaled $114.9 million, down 57.5% from a year ago[120] - Diluted earnings per share (EPS) decreased 53.2% to $0.96[120] - NAST total revenues decreased by 19.7% to $3,304,187 in Q1 2023 compared to $4,114,889 in Q1 2022[129] - NAST adjusted gross profits decreased by 15.7% to $426,655 in Q1 2023, with Truckload adjusted gross profits down 21.9% and LTL down 9.1%[129] - Global Forwarding total revenues decreased by 64.0% to $789,978 in Q1 2023, with Ocean adjusted gross profits down 50.3% and Air down 49.0%[139] Cost and Expense Management - Personnel expenses decreased 7.3% to $383.1 million, primarily due to cost optimization efforts, including lower average employee headcount, which decreased 2.1%[114] - Average employee headcount decreased by 6.5% to 6,870 in Q1 2023 compared to 7,348 in Q1 2022[129] - Global Forwarding average employee headcount decreased by 2.5% to 5,471 in Q1 2023 compared to 5,610 in Q1 2022[139] Transportation and Logistics Performance - Ocean volumes decreased 14.5% while air freight tonnage decreased 18.5%[112] - The average truckload linehaul cost per mile, excluding fuel surcharges, decreased approximately 28.5% during the first quarter of 2023[111] - NAST truckload linehaul rate per mile decreased by 27.5% in Q1 2023 compared to Q1 2022, while truckload linehaul cost per mile decreased by 28.5%[136] Cash Flow and Financial Position - Cash flow from operations improved $268.5 million in the three months ended March 31, 2023 driven by changes in operating working capital[120] - Cash provided by operating activities in Q1 2023 was $254.544 million, compared to a net use of $13.928 million in Q1 2022, representing a significant improvement[147] - Cash used for investing activities in Q1 2023 was $26.95 million, a 12.4% increase from $23.979 million in Q1 2022[147] - Cash used for financing activities in Q1 2023 was $205.992 million, compared to $21.77 million provided in Q1 2022[147] - Net change in cash and cash equivalents in Q1 2023 was $21.678 million, compared to a net decrease of $14.604 million in Q1 2022[147] - The company expects available cash, future cash from operations, and credit facilities to be sufficient for working capital, capital expenditures, and cash dividends for at least the next 12 months[150] Debt and Capital Management - Total debt as of March 31, 2023, was $1,873,031, with a borrowing capacity of $3,100,000 across various debt facilities[144] - Net payments on debt in Q1 2023 were used to reduce the current portion of outstanding debt, with potential impacts on future share repurchases[149] Tax and Accounting - Effective income tax rate for Q1 2023 was 13.5%, down from 18.4% in Q1 2022, primarily due to tax benefits from share-based payment awards and U.S. tax credits[127] - No material changes to critical accounting policies and estimates as of March 31, 2023[154] - No material changes in market risk as of March 31, 2023 compared to the 2022 Annual Report[155] Segment Performance - Robinson Fresh adjusted gross profits increased due to integrated supply chain solutions for foodservice and retail customers[143]

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) Q1 2023 Earnings Conference Call April 26, 2023 5:00 PM ET Company Participants Chuck Ives - Director, IR Scott Anderson - Interim CEO Mike Zechmeister - CFO Arun Rajan - COO Conference Call Participants Jack Atkins - Stephens Stephanie Moore - Jefferies Jason Seidl - TD Cowen David Zazula - Barclays Chris Wetherbee - Citigroup Bruce Chan - Stifel Jordan Alliger - Goldman Sachs David Vernon - Bernstein Ken Hoexter - Bank of America Operator Good afternoon, ladies ...

| --- | --- | --- | --- | --- | --- | --- | |----------|-------|-----------------------|-------|-------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Scott Anderson, Interim CEO Arun Rajan, Chief Operating Officer Mike Zechmeister, Chief Financial Officer Chuck Ives, Director of Investor Relations | | Q1 2023 | | | | | | | | 26, 2023 ...

Table of contents Operating expenses. Personnel expenses increased primarily due to an increase in salaries and incentive compensation driven by an increase in average employee headcount. These increases were partially offset by a reduction in stock-based compensation expense as the prior year included significant stock-based compensation expense on performance-based equity awards granted prior to 2021. Other SG&A expenses increased primarily due to increases in purchased and contracted services, legal sett ...

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) Q4 2022 Earnings Conference Call February 1, 2023 5:00 PM ET Company Participants Chuck Ives - Director, IR Scott Anderson - Interim CEO Mike Zechmeister - CFO Arun Rajan - COO Conference Call Participants Jack Atkins - Stephens Bruce Chan - Stifel Jeff Kauffman - Vertical Research Partners Chris Wetherbee - Citi Jordan Alliger - Goldman Sachs Jon Chappell - Evercore ISI Brian Ossenbeck - JPMorgan Stephanie Moore - Jefferies Operator Good afternoon, ladies and gen ...