C.H. Robinson(CHRW) - 2024 Q1 - Quarterly Results

Financial Performance - Adjusted gross profits decreased 4.1% to $657.7 million, primarily driven by lower adjusted gross profit per transaction in truckload[14]. - Total revenues decreased 4.3% to $4.4 billion, primarily due to lower pricing in truckload services[25]. - Income from operations decreased 21.1% year-over-year to $127.1 million[11]. - Diluted earnings per share (EPS) decreased 18.8% to $0.78, while adjusted EPS decreased 14.0% to $0.86[16][22]. - Net income for the quarter was $92,904, representing a 19.1% decrease from $114,891 in the same quarter of 2023[42]. - Adjusted income from operations was $140,076, down 15.0% from $164,755 in the prior year[42]. - Adjusted operating margin was 19.3%, a decline of 420 basis points from 23.5% in the previous year[42]. Revenue Breakdown - NAST segment total revenues for the first quarter were $3.0 billion, a decrease of 9.2% year-over-year[18]. - Transportation revenues decreased by 5.7% to $4,082,588, while sourcing revenues increased by 16.2% to $329,723[42]. - Total revenues for the three months ended March 31, 2024, were $4,412,311, a decrease of 4.3% compared to $4,611,670 in the same period of 2023[42]. - Total revenues for the Global Forwarding segment were $3,000,313 for the three months ended March 31, 2024[67]. - Total revenues for the three months ended March 31, 2024, were $4,412,311, an increase of 8.7% compared to $4,061,670 for the same period in 2023[54]. Operating Expenses and Cash Flow - Operating expenses increased 1.1% to $530.6 million, with personnel expenses decreasing 1.0%[26]. - Cash used by operations totaled $33.3 million, a significant decline from $254.5 million generated in the first quarter of 2023[49]. - The company reported a net cash used for operating activities of $(33,323) for the three months ended March 31, 2024, compared to $254,544 in the same period last year[65]. Shareholder Returns - Cash returned to shareholders totaled $90.7 million, including $74.6 million in cash dividends and $16.1 million in stock repurchases[5]. Tax and Liabilities - The effective tax rate increased to 15.8%, up from 13.5% in the prior year[27]. - Current liabilities increased to $2,274,286 as of March 31, 2024, from $2,051,993 at the end of the previous year[58]. Capital Expenditures and Assets - Capital expenditures for the quarter were $22.5 million, with expectations for 2024 to be between $85 million and $95 million[50]. - Total assets as of March 31, 2024, amounted to $5,472,088, an increase from $5,225,280 as of December 31, 2023[58]. Employee Metrics - Average employee headcount for the three months ended March 31, 2024, was 14,990, compared to 16,902 in the same period last year[67]. Strategic Initiatives - The company is implementing a new Lean-based operating model to improve execution and accountability[12][13]. Market Risks - The company continues to face risks related to economic conditions, competition, and regulatory changes that could impact future performance[52].