C.H. Robinson(CHRW) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $4,046,740, a decrease of 8.3% from $4,412,311 in Q1 2024[13] - Net income for Q1 2025 increased to $135,302, up 45.5% from $92,904 in Q1 2024[13] - Basic net income per share rose to $1.12 in Q1 2025, compared to $0.78 in Q1 2024, reflecting a 43.6% increase[13] - The company reported a comprehensive income of $145,737 for Q1 2025, significantly higher than $73,414 in Q1 2024[13] - Revenues from external customers in the NAST segment were $2,868,420 in Q1 2025, down from $3,000,313 in Q1 2024, representing a decline of 4.4%[71] - Segment operating income for Q1 2025 was $186,614, compared to $140,447 in Q1 2024, reflecting an increase of 32.8%[69] Assets and Liabilities - Total current assets decreased to $2,923,725 as of March 31, 2025, down from $2,969,603 at the end of 2024, a decline of 1.5%[11] - Total liabilities decreased to $3,491,389 as of March 31, 2025, down from $3,575,875 at the end of 2024, a reduction of 2.4%[11] - Cash and cash equivalents at the end of Q1 2025 were $129,942, down from $145,762 at the end of 2024, a decrease of 10.9%[11] - As of March 31, 2025, total debt amounted to $1,389.9 million, an increase from $1,377.6 million as of December 31, 2024[37] - Goodwill balance as of March 31, 2025, was $1,432.1 million, down from $1,457.6 million as of December 31, 2024, primarily due to the divestiture[27] - Identifiable intangible assets totaled $80.2 million as of March 31, 2025, down from $86.9 million as of December 31, 2024[29] Cash Flow and Dividends - Operating cash flow for Q1 2025 was $106,531, compared to a cash outflow of $33,323 in Q1 2024[18] - The company declared dividends of $0.62 per share in Q1 2025, totaling $74,418[15] - The company repurchased 485 shares of common stock for a total cost of $48,722 during Q1 2025[15] Restructuring and Impairments - The company initiated a restructuring program in 2024 aimed at reducing costs and optimizing management hierarchy, which included workforce reductions[83] - The company reported a significant impairment charge of $6.3 million related to its Kansas City regional center lease in Q1 2025[77] - Accrued restructuring reserves were $1.5 million as of March 31, 2025, down from $4.0 million as of December 31, 2024[85] - The company paid $2.5 million in cash during Q1 2025 related to the 2024 Restructuring Program, with total restructuring charges amounting to $12.9 million for the three months ended March 31, 2024[85] Divestitures - The Company completed the sale of its Europe Surface Transportation business on February 1, 2025, resulting in a $44.5 million loss recorded in the twelve months ended December 31, 2024[33] - A pre-tax loss of $44.5 million was recognized in 2024 from the divestiture of the Europe Surface Transportation business, which included a $32.8 million loss on the disposal group classified as held for sale[89] - The sale of the Europe Surface Transportation business closed on February 1, 2025, with $27.7 million received at closing and additional consideration due in installments[90] - An additional pre-tax loss of $2.4 million was recognized in Q1 2025 related to the Europe Surface Transportation divestiture[90] - The company reported personnel expenses of $1.2 million and other selling, general, and administrative expenses of $1.2 million related to the Europe Surface Transportation divestiture in Q1 2025[91] Credit Facilities and Interest Rates - The Company has a senior unsecured revolving credit facility with a total availability of $1 billion, maturing on November 19, 2027[38] - The average interest rate for the revolving credit facility as of March 31, 2025, was 5.55%, slightly down from 5.58% as of December 31, 2024[37] - The Company recorded $467.9 million in receivables securitization facility debt as of March 31, 2025, compared to $446.8 million as of December 31, 2024[37] - The Receivables Securitization Facility has a total availability of $500 million as of March 31, 2025, with an interest rate based on SOFR plus a credit spread adjustment of 0.90 percent[44] - The Receivables Securitization Facility was amended on November 7, 2023, extending the termination date to November 7, 2025, while maintaining the total available amount of $500 million[47] Tax and Compensation - The effective income tax rate for the three months ended March 31, 2025, was 13.7%, down from 15.8% in the same period of 2024[53] - Total stock-based compensation expense for the three months ended March 31, 2025, was $23.1 million, compared to $22.7 million in 2024[55] - As of March 31, 2025, there was unrecognized compensation expense of $220.3 million related to previously granted stock awards assuming maximum achievement on PSUs[62] - The company has $23.9 million of unrecognized tax benefits and expects this liability to decrease by approximately $1.1 million in the next 12 months due to the lapsing of statutes of limitations[54] Workforce and Employee Metrics - The average employee headcount increased to 13,347 in Q1 2025 from 14,990 in Q1 2024, indicating a reduction in workforce[70] - Operating lease expense for Q1 2025 was $27,885, up from $25,637 in Q1 2024, marking an increase of 8.8%[77] - The allowance for credit losses on accounts receivable decreased to $12,666 as of March 31, 2025, from $14,038 at the end of 2024, a reduction of 9.7%[79] - Other comprehensive income for Q1 2025 was $10.4 million, compared to a loss of $19.5 million in Q1 2024, indicating a significant improvement[81] Market Risk - There were no material changes in market risk as of March 31, 2025, compared to disclosures in the company's 2024 Annual Report[148]