| C.H. Robinson Worldwide, Inc. | |||
| Ticker: | CHRW | 8100 Mitchell Road | |
| Exchange: | NASDAQ-National Market | Eden Praire, MN 55444 | |
| Industry: | Transportation (SIC Code 4731) | (612) 937-8500 | |
| # of Employees: | 1801 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/15/97 | |
| U.S. Shares: | 10,578,396 | Offer Date: | 10/14/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $15.00 - $17.00 | |
| Primary Shares: | 0 | Offer Price: | $18.00 | |
| Secondary Shares: | 10,578,396 | Gross Spread: | $1.12 | |
| Offering Amount: | $169,254,336 | Selling: | $0.64 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 41,264,621 |
| Manager | Tier | Phone |
| Alex. Brown & Sons Incorporated | Lead Manager | (410) 895-2700 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Piper Jaffray Incorporated | Co-manager | (612) 342-6220 |
| Issuer's Law Firm: | Dorsey & Whitney |
| Bank's Law Firm: | Piper & Marbury |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $1,605.91 | $855.15 | $775.02 | Assets: | $361.16 |
| Net Income: | $34.60 | $18.13 | $16.77 | Curr Assets: | $321.06 |
| EPS: | $0.78 | $0.42 | $0.37 | Liabilities: | $189.79 |
| Prior EPS: | $0.67 | $12.31 | $10.63 | Curr Liabilities: | $189.79 |
| Cash Flow/Oper: | $35.35 | -$2.14 | -$7.23 | Equity: | $171.37 |
| Cash Flow/Fin: | -$14.52 | -$12.45 | $2.03 | Cash: | $40.29 |
| Cash Flow/Inv: | -$12.71 | -$12.45 | Working Cap: | $131.26 | |
| Business Description |
| The company is the largest third-party logistics company in North America. The company is a global provider of multimodal transportation services and logistics solutions through a network of 116 offices in North America, Europe and South Africa. Through contracts with over 14,000 motor carriers, the Company maintains the single largest network of motor carrier capacity in North America and is one of the largest third-party providers of intermodal services in the United States. In addition, the Company regularly provides air, ocean and customs services. As an integral part of the Company's transportation services, the Company provides a wide range of value-added logistics services, such as raw materials sourcing, freight consolidation, cross-docking and contract warehousing. During 1996, the Company handled over 935,000 shipments for more than 8,600 customers, ranging from Fortune 100 companies to small businesses in a wide variety of industries. During the past five years, the Company has increased net revenues at a compound annual growth rate of 18.6 percent. The Company has developed global multimodal transportation and distribution networks to provide seamless logistics services worldwide. As a result, the Company has the capability of managing all aspects of the supply chain on behalf of its customers. As a non-asset based transportation provider, the Company can focus on optimizing the transportation solution for its customer rather than its own asset utilization, using established relationships with motor carriers, railroads (primarily intermodal service providers), air freight carriers and ocean carriers. Through its motor carrier contracts, the Company maintains access to more than 370,000 dry vans, 128,000 temperature-controlled vans and containers and 96,000 flatbed trailers. The Company also has intermodal marketing contracts with 11 railroads, including all of the major North American railroads, which give the Company access to more than 150,000 additional trailers and containers. |
| Competition |
| The transportation services industry is highly competitive and fragmented. The Company competes primarily against a large number of other non-asset based logistics companies, as well as asset-based logistics companies, third-party freight brokers, carriers offering logistics services and freight forwarders. The Company also competes against carriers' internal sales forces and shippers' own transportation departments. It also buys and sells transportation services from and to companies with which it competes. The Company believes that its most significant competitive advantages are: (i) its large decentralized branch network, staffed by salespersons who are employees rather than agents, which enables the Company's salespersons to gain significant knowledge about individual customers and the local and regional markets they serve, (ii) its ability to provide a broad range of logistics services, and (iii) its ability to provide services on a worldwide basis. |
| Business Plan |
| The company's strategy for future growth is to expand the following: (I) Core transportation business, (ii) International markets and (iii) Enhanced logistics services. |
| Use of Proceeds |
| The proceeds from the proposed offering will be distributed to selling shareholders. |
| Name of Shareholder | % Owned Before | % Owned After |
| D. R. Verdoorn | 12.20% | 8.40% |
| Looe Baker III | 6.40% | 4.70% |
| Donald Lerner | 5.20% |
| Officer Name | Title | Age |
| John P. Wiehoff | Corporate Controller and Treasurer | 35 |
| D. R. Verdoorn | President, Chief Executive Officer and Director | 58 |
| Gregory D. Goven | Vice President | 46 |
| Looe Baker III | Vice President and Director | 47 |
| Barry W. Butzow | Vice President and Director | 50 |
| Jennifer T. Amys | Vice President, Chief Information Officer | 46 |
| Dale S. Hanson | Vice President, Finance, Chief Financial Officer and Director | 58 |
| Owen P. Gleason | Vice President, General Counsel and Secretary and Director | 46 |
| Thomas D. Perdue | Vice President, Intermodal | 47 |
| Bernard M. Madej | Vice President, Logistics | 54 |
| Michael T. Rempe | Vice President, Produce | 43 |
| Thomas M. Jostes | Vice President, Transportation | 37 |
| Robert S. Ingram | Vice President, Transportation | 57 |