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

May 10, 2010 | About:
10qk

10qk

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C.H. Robinson Worldwide Inc. (CHRW) filed Quarterly Report for the period ended 2010-03-31.

C.h. Robinson Worldwide Inc. has a market cap of $10.07 billion; its shares were traded at around $57.83 with a P/E ratio of 27.15 and P/S ratio of 1.33. The dividend yield of C.h. Robinson Worldwide Inc. stocks is 1.73%. C.h. Robinson Worldwide Inc. had an annual average earning growth of 22.4% over the past 10 years. GuruFocus rated C.h. Robinson Worldwide Inc. the business predictability rank of 5-star.CHRW is in the portfolios of Ron Baron of Baron Funds, PRIMECAP Management, Bill Frels of MAIRS & POWER INC, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Steven Cohen of SAC Capital Advisors, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.

Highlight of Business Operations:

Total revenues and direct costs. Our consolidated total revenues increased 22.9 percent in the first quarter of 2010 compared to the first quarter of 2009. Total Transportation revenues increased 24.3 percent to $1.6 billion in the first quarter of 2010 from $1.3 billion in the first quarter of 2009. This increase was driven by increased volume in most of our transportation modes, partially offset by lower pricing to our customers. Total purchased transportation services increased 32.7 percent in the first quarter of 2010 to $1.4 billion from $1.0 billion in the first quarter of 2009. This increase was due to increased volumes in most of our transportation modes, higher transportation costs, and higher fuel prices. Our Sourcing revenue increased 17.7 percent to $422.7 million in the first quarter of 2010. Purchased products sourced for resale increased 18.0 percent in the first quarter of 2010 to $387.7 million from $328.6 million in the first quarter of 2009. These increases were primarily due to the previously announced acquisition of Rosemont Farms, Inc. (Rosemont) on September 15, 2009 and volume growth. Our Information Services revenue increased 23.1 percent to $12.7 million in the first quarter of 2010 from $10.3 million in the first quarter of 2009. The increase was driven by an increase in transactions and increases in some fees that are impacted by fuel prices.

Net Income. Net income decreased 1.6 percent to $84.0 million for the three months ended March 31, 2010. Basic net income per share was $0.51 and $0.50 for the three months ended March 31, 2010 and 2009. Diluted net income per share was $0.50 and $0.50 for the three months ended March 31, 2010 and 2009.

We have historically generated substantial cash from operations, which has enabled us to fund our growth while paying cash dividends and repurchasing stock. Cash and cash equivalents totaled $229.6 million and $449.7 million as of March 31, 2010 and 2009. Available-for-sale securities consisting primarily of highly liquid investments totaled $53.6 million and $2.0 million as of March 31, 2010 and 2009. Working capital at March 31, 2010 and 2009 was $567.4 million and $644.5 million.

Cash flow from operating activities. We generated $3.9 million and $58.7 million of cash flow from operations during the three months ended March 31, 2010 and 2009. Accounts receivable increased by $119.1 million from December 31, 2009 to March 31, 2010. This increase was driven by growth in total revenues and transaction volumes during the quarter. This increased investment in working capital resulted in a decrease in our cash flow from operating activities.

Cash flow from investing activities. We used $6.5 million and $10.9 million of cash flow for investing activities during the three months ended March 31, 2010 and 2009. We used $4.4 million and $11.6 million of cash for capital expenditures during the three months ended March 31, 2010 and 2009. During the first quarter of 2009, we used $6.6 million for capital expenditures related to our data center which was completed in August, 2009. We used $2.0 million of cash for net purchases, sales, and maturities of available-for-sale securities during the three months ended March 31, 2010.

We used $42.4 million and $39.6 million to pay cash dividends during the three months ended March 31, 2010 and 2009, with the increase in 2010 due to a four percent increase in our quarterly dividend rate to $0.25 per share in 2010 from $0.24 per share in 2009.

Read the The complete Report

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