C.H. Robinson(US:CHRW)2021-10-28 16:00Revenue Growth - Total revenues increased by 48.3% to $6.3 billion, driven primarily by higher pricing and volume across most services [103] - Total revenues for the three months ended September 30, 2021, increased by 48.3 percent to $6,263.7 million compared to $4,224.8 million in the same period last year [112] - Transportation revenues increased by 52.1 percent to $5,999.9 million, driven by higher pricing and increased volumes [112] - Total revenues for the three months ended September 30, 2021, increased to $3,814,988, a 30.5% increase from $2,923,842 in the same period of 2020 [126] - Global Forwarding total revenues for the three months ended September 30, 2021, increased to $1,978,901, a 137.9% increase from $831,957 in the same period of 2020 [138] Profitability - Gross profits rose by 43.5% to $839.0 million, while adjusted gross profits increased by 43.3% to $844.2 million, mainly due to higher adjusted gross profit per transaction [104] - Adjusted operating margin increased by 820 basis points to 36.8 percent [107] - Diluted earnings per share (EPS) rose by 85.0 percent to $1.85 [109] - Net income increased by 81.0 percent to $247.1 million compared to $136.5 million in the same quarter last year [112] - Adjusted gross profits for truckload services increased by 36.5% to $309,787 compared to $226,992 in the third quarter of 2020 [128] - Ocean adjusted gross profits for the three months ended September 30, 2021, were $214,824, a 141.7% increase from $88,878 in Q3 2020 [138] - Total adjusted gross profits for the nine months ended September 30, 2021, reached $1,317,853, a 17.6% increase from $1,120,277 in the same period of 2020 [126] - Total adjusted gross profits for the nine months ended September 30, 2021, were $213.9 million, reflecting a 5.7% increase from $202.5 million in the prior year [147] Expenses and Costs - Total costs and expenses increased by 46.7 percent to $5,952.9 million, driven by higher purchased transportation costs [112] - Personnel expenses increased by 32.0% to $399.9 million, primarily due to higher incentive compensation costs [104] - Average truckload linehaul cost per mile, excluding fuel costs, increased by 26.0% during Q3 2021 [96] - Average truckload linehaul rate charged to customers, excluding fuel surcharges, increased by approximately 27.0% during Q3 2021 [96] - Personnel expenses rose by 32.0 percent to $399.9 million, reflecting increased incentive compensation and headcount [112] - Total costs and expenses for the three months ended September 30, 2021, were $3,665,953, reflecting a 30.9% increase from $2,801,316 in the same period of 2020 [126] - Personnel expenses increased by 35.8% to $202,304 in Q3 2021, up from $148,958 in Q3 2020, driven by incentive compensation increases [126] - Total purchased transportation and related services for the three months ended September 30, 2021, were $1,668,003, a 147.4% increase from $674,300 in Q3 2020 [138] Cash Flow and Capital Expenditures - Cash flow from operations decreased by $317.9 million due to a significant increase in working capital [110] - Cash provided by operating activities significantly decreased by 94.3% to $19.1 million for the nine months ended September 30, 2021, compared to $337.0 million in the same period of 2020 [156] - Capital expenditures for the nine months ended September 30, 2021, totaled $52.6 million, up from $40.3 million in the prior year [156] - Cash and cash equivalents decreased to $202.6 million as of September 30, 2021, down from $243.8 million as of December 31, 2020 [154] Debt and Compliance - Net borrowings on debt for the nine months ended September 30, 2021, were $629.7 million, compared to net repayments of $83.0 million in the same period of 2020 [156] - The company expects to utilize current debt facilities to fund working capital, capital expenditures, and potential acquisitions [153] - As of September 30, 2021, the company was in compliance with all covenants under its credit agreements [162] Acquisitions - On June 3, 2021, the company acquired Combinex Holding B.V. to expand its European road transportation presence [98] - The company used $14.7 million for the acquisition of Combinex during the nine months ended September 30, 2021 [159] Market Conditions - The global forwarding market faced significant increases in purchased transportation costs due to port congestion and labor shortages [95] - The average routing guide depth of tender in Q3 2021 was 1.7, indicating tight carrier capacity [94]