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C.H. Robinson Worldwide Inc. Reports Operating Results (10-Q)

May 10, 2012 | About:
10qk

10qk

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C.H. Robinson Worldwide Inc. (CHRW) filed Quarterly Report for the period ended 2012-03-31.

Ch Robinson Wwd has a market cap of $9.66 billion; its shares were traded at around $60.58 with a P/E ratio of 22 and P/S ratio of 0.9. The dividend yield of Ch Robinson Wwd stocks is 2.2%. Ch Robinson Wwd had an annual average earning growth of 19% over the past 10 years. GuruFocus rated Ch Robinson Wwd the business predictability rank of 3.5-star.

Highlight of Business Operations:

Total revenues and direct costs. Our consolidated total revenues increased 7.9 percent in the first quarter of 2012 compared to the first quarter of 2011. Total Transportation revenues increased 9.3 percent to $2.2 billion in the first quarter of 2012 from $2.0 billion in the first quarter of 2011. This increase was driven by higher volumes in all of our transportation services and increased pricing to our customers, including the impacts of higher fuel costs. Total purchased transportation services increased 9.8 percent in the first quarter of 2012 to $1.8 billion from $1.6 billion in the first quarter of 2011. This increase was due to higher volumes in all of our transportation services and higher transportation costs, including the impacts of higher fuel costs. Our Sourcing revenue decreased 0.1 percent to $359.7 million in the first quarter of 2012. Purchased products sourced for resale increased 0.2 percent in the first quarter of 2012 to $327.8 million from $327.0 million in the first quarter of 2011. Our Payment Services revenue increased 8.1 percent to $15.6 million in the first quarter of 2012 from $14.4 million in the first quarter of 2011. The increase was driven primarily by higher fuel prices and changes to merchant agreements, and by an increase in MasterCard® transactions and other fuel card services.

Truck net revenues, which consist of truckload and less-than-truckload (LTL) services, comprise approximately 76 percent of our total net revenues. Our truck net revenues increased 7.1 percent to $315.4 million in the first quarter of 2012 from $294.5 million in the first quarter of 2011. Our truckload volumes increased approximately eight percent. Truckload net revenue margin declined in the first quarter of 2012. Excluding the estimated impacts of the change in fuel, on average, our truckload pricing to our customers increased approximately one percent in the first quarter of 2012 compared to the first quarter of 2011. Our truckload transportation costs increased approximately two percent, excluding the estimated impacts of the change in fuel.

Our personnel expenses are driven by headcount and earnings growth. For the first quarter, personnel expenses increased to $183.4 million in 2012 from $175.1 million in 2011. Our personnel expenses as a percentage of net revenue decreased in the first quarter of 2012 to 44.2 percent compared to 44.9 percent in the first quarter of 2011. Our average headcount increased approximately nine percent in the first quarter of 2012 from the first quarter of 2011. Expenses related to our various incentive plans that are designed to keep expenses variable with changes in net revenues and profitability declined in the quarter.

Cash flow from operating activities. We generated $77.1 million and $52.6 million of cash flow from operations during the three months ended March 31, 2012 and 2011. Accounts payable increased by $43 million from December 31, 2011 to March 31, 2012. The increase in payables was driven by growth in transaction volumes and the increased cost of capacity. Accounts receivable increased by $55.7 million from December 31, 2011 to March 31, 2012. This increase was driven by growth in total revenues and transaction volumes during the same period.

Cash used for investing activities. We used $13.8 million and $1.3 million of cash flow for investing activities during the three months ended March 31, 2012 and 2011. We used $13.8 million and $9.6 million of cash for capital expenditures, including the purchase and development of software, during the three months ended March 31, 2012 and 2011. We had $8.3 million of cash provided from net purchases, sales, and maturities of available-for-sale securities during the three months ended March 31, 2011.

Read the The complete Report

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