Aviation Volume Increases 21% Sequentially
MIAMI--(BUSINESS WIRE)--Nov. 3, 2009--
World Fuel Services Corporation (NYSE:INT), a global leader in the
marketing and sale of marine, aviation and land fuel products and
related services, today reported third quarter net income of $29.1
million or $0.97 diluted earnings per share compared to $40.1 million or
$1.37 diluted earnings per share in the third quarter of 2008. Non-GAAP
net income for the third quarter, which excludes share-based
compensation and amortization of acquired intangible assets, was $31.4
million or $1.04 non-GAAP diluted earnings per share compared to $43.6
million or $1.49 non-GAAP diluted earnings per share in the third
quarter of 2008. A reconciliation of GAAP to non-GAAP results has been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below under
the heading “Non-GAAP Financial Measures.”
“Our aviation segment posted strong sequential volume growth, resulting
in the first year-over-year increase in five quarters and achieving
volumes not seen since the second quarter of 2008,” said Paul H.
Stebbins, chairman and chief executive officer of World Fuel Services
Corporation. “We remain focused on aggressively managing risk, improving
our customer offering and enhancing our global supply relationships.”
“The marine business performed well despite challenging economic
conditions,” stated Michael J. Kasbar, president and chief operating
officer. “Our land business delivered solid results for the second
consecutive quarter,” added Kasbar.
The company’s aviation segment generated gross profit of $42.9 million
in the third quarter of 2009, an increase of $3.1 million or 8%
sequentially, but a decrease of 15% from last year’s record third
quarter. The marine segment generated third quarter gross profit of
$40.2 million, flat sequentially and a decline of 37% from the record
results achieved in the third quarter of last year. The company’s land
segment posted gross profit of $11.7 million in the third quarter, an
increase of 2% sequentially and 15% year-over-year.
Non-GAAP Financial Measures
This press release includes selected financial information that has not
been prepared in accordance with accounting principles generally
accepted in the United States (“GAAP”). This information includes
non-GAAP net income and non-GAAP diluted earnings per share. The
non-GAAP financial measures exclude costs associated with share-based
compensation and amortization of acquired intangible assets, primarily
because we do not believe they are reflective of the company’s core
operating results. We believe that these non-GAAP financial measures,
when considered in conjunction with our financial information prepared
in accordance with GAAP, are useful for investors to evaluate our core
operating results and trends.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. In addition, our presentation of non-GAAP net income and
non-GAAP earnings per share may not be comparable to the presentation of
such metrics by other companies. Investors are encouraged to review the
reconciliation of these non-GAAP measures to their most directly
comparable GAAP financial measure. As previously mentioned, a
reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release.
Information Relating to Forward-Looking
Statements
With the exception of historical information in this news release, this
document includes forward-looking statements that involve risks and
uncertainties, including, but not limited to, quarterly fluctuations in
results, the creditworthiness of customers and counterparties and our
ability to collect accounts receivable and settle derivatives contracts,
fluctuations in world oil prices or foreign currency, changes in
political, economic, regulatory, or environmental conditions, adverse
conditions in the markets or industries in which we or our customers
operate, our failure to effectively hedge certain financial risks
associated with the use of derivatives, non-performance by
counterparties or customers on derivatives contracts, the integration of
acquired businesses, uninsured losses, our ability to retain and attract
senior management and other key employees and other risks detailed from
time to time in the Company’s Securities and Exchange Commission
filings. Actual results may differ materially from any forward-looking
statements set forth herein.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global leader
in the marketing and sale of marine, aviation and land fuel products, as
well as related services. World Fuel Services sells fuel and delivers
services to its clients at more than 6,000 locations in more than 190
countries, including airports, seaports, tanker truck loading terminals
and other customer storage locations. With 44 strategically located
global offices (including satellite offices), World Fuel Services offers
its clients a value-added outsource service for the supply, quality
control, logistical support and price risk management of marine,
aviation and land fuel.
The Company’s global team of market makers provides deep domain
expertise in all aspects of marine, aviation and land fuel management.
World Fuel Services’ marine customers include international container
and tanker fleets and time-charter operators, as well as the United
States and foreign governments. Aviation customers include commercial
airlines, cargo carriers and corporate clientele, as well as the United
States and foreign governments. Land customers include petroleum
distributors, retail petroleum operators, and industrial, commercial and
government accounts. For more information, call 305-428-8000 or visit http://www.wfscorp.com.
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WORLD FUEL SERVICES CORPORATION
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
For the Nine Months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
3,202,653
|
|
$
|
5,453,351
|
|
$
|
7,749,936
|
|
$
|
15,595,955
|
|
Cost of revenue
|
|
|
3,107,921
|
|
|
5,329,546
|
|
|
7,476,301
|
|
|
15,304,019
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
94,732
|
|
|
123,805
|
|
|
273,635
|
|
|
291,936
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
|
32,359
|
|
|
35,503
|
|
|
101,231
|
|
|
100,381
|
|
Provision for bad debt
|
|
|
1,774
|
|
|
6,842
|
|
|
2,696
|
|
|
16,899
|
|
General and administrative
|
|
|
19,726
|
|
|
21,144
|
|
|
59,603
|
|
|
62,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,859
|
|
|
63,489
|
|
|
163,530
|
|
|
179,477
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
40,873
|
|
|
60,316
|
|
|
110,105
|
|
|
112,459
|
|
Interest and other expense, net
|
|
|
1,339
|
|
|
5,348
|
|
|
3,256
|
|
|
10,316
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
39,534
|
|
|
54,968
|
|
|
106,849
|
|
|
102,143
|
|
Provision for income taxes
|
|
|
10,437
|
|
|
14,848
|
|
|
23,990
|
|
|
25,552
|
|
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling
|
|
|
|
|
|
|
|
|
|
interest
|
|
|
29,097
|
|
|
40,120
|
|
|
82,859
|
|
|
76,591
|
|
Less: net income attributable to
|
|
|
|
|
|
|
|
|
|
noncontrolling interest
|
|
|
25
|
|
|
35
|
|
|
215
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to World Fuel
|
|
$
|
29,072
|
|
$
|
40,085
|
|
$
|
82,644
|
|
$
|
76,386
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.98
|
|
$
|
1.38
|
|
$
|
2.81
|
|
$
|
2.65
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares
|
|
|
29,578
|
|
|
29,123
|
|
|
29,433
|
|
|
28,778
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.97
|
|
$
|
1.37
|
|
$
|
2.78
|
|
$
|
2.63
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares
|
|
|
30,081
|
|
|
29,307
|
|
|
29,766
|
|
|
29,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLD FUEL SERVICES CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED - IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
348,504
|
|
$
|
314,352
|
|
Short-term investments
|
|
|
8,100
|
|
|
8,100
|
|
Accounts receivable, net
|
|
|
864,562
|
|
|
676,100
|
|
Inventories
|
|
|
101,462
|
|
|
28,726
|
|
Short-term derivative assets, net
|
|
|
19,255
|
|
|
72,260
|
|
Prepaid expenses and other current assets
|
|
|
50,778
|
|
|
72,612
|
|
|
|
|
|
|
|
Total current assets
|
|
|
1,392,661
|
|
|
1,172,150
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
39,279
|
|
|
35,328
|
|
|
|
|
|
|
|
Other assets
|
|
|
238,476
|
|
|
197,148
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,670,416
|
|
$
|
1,404,626
|
|
|
|
|
|
|
|
Liabilities and equity:
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
10,871
|
|
$
|
23,840
|
|
Accounts payable
|
|
|
770,476
|
|
|
548,876
|
|
Short-term derivative liabilities, net
|
|
|
23,367
|
|
|
66,302
|
|
Customer deposits
|
|
|
53,235
|
|
|
40,961
|
|
Accrued expenses and other current liabilities
|
|
|
57,989
|
|
|
70,808
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
915,938
|
|
|
750,787
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
9,796
|
|
|
9,537
|
|
Other long-term liabilities
|
|
|
46,412
|
|
|
36,156
|
|
Total liabilities
|
|
|
972,146
|
|
|
796,480
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
World Fuel shareholders' equity
|
|
|
698,247
|
|
|
607,887
|
|
Noncontrolling interest equity
|
|
|
23
|
|
|
259
|
|
Total equity
|
|
|
698,270
|
|
|
608,146
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
1,670,416
|
|
$
|
1,404,626
|
|
|
|
|
|
|
|
|
|
|
|
WORLD FUEL SERVICES CORPORATION
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED - IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
For the Nine Months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest
|
|
$
|
29,097
|
|
|
$
|
40,120
|
|
|
$
|
82,859
|
|
|
$
|
76,591
|
|
|
Adjustments to reconcile net income including
|
|
|
|
|
|
|
|
|
|
noncontrolling interest to net cash (used in)
|
|
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
4,987
|
|
|
|
3,971
|
|
|
|
13,127
|
|
|
|
9,869
|
|
|
Provision for bad debt
|
|
|
1,774
|
|
|
|
6,842
|
|
|
|
2,696
|
|
|
|
16,899
|
|
|
Deferred income tax provision (benefit)
|
|
|
2,732
|
|
|
|
2,280
|
|
|
|
5,916
|
|
|
|
(3,852
|
)
|
|
Share-based payment compensation costs
|
|
|
869
|
|
|
|
2,923
|
|
|
|
4,471
|
|
|
|
6,808
|
|
|
Foreign currency transaction (gains)
|
|
|
|
|
|
|
|
|
|
losses, net
|
|
|
(1,479
|
)
|
|
|
2,010
|
|
|
|
(1,671
|
)
|
|
|
1,502
|
|
|
Other
|
|
|
248
|
|
|
|
77
|
|
|
|
773
|
|
|
|
307
|
|
|
Changes in assets and liabilities, net of
|
|
|
|
|
|
|
|
|
|
acquisitions
|
|
|
(42,058
|
)
|
|
|
230,672
|
|
|
|
8,984
|
|
|
|
91,668
|
|
|
Total adjustments
|
|
|
(32,927
|
)
|
|
|
248,775
|
|
|
|
34,296
|
|
|
|
123,201
|
|
|
Net cash (used in) provided by operating
|
|
|
|
|
|
|
|
|
|
activities
|
|
|
(3,830
|
)
|
|
|
288,895
|
|
|
|
117,155
|
|
|
|
199,792
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used in)
|
|
|
|
|
|
|
|
|
|
investing activities
|
|
|
3,256
|
|
|
|
(640
|
)
|
|
|
(57,216
|
)
|
|
|
(99,419
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows (used in) provided by financing activities
|
|
|
(5,296
|
)
|
|
|
(181,948
|
)
|
|
|
(28,179
|
)
|
|
|
24,004
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and
|
|
|
|
|
|
|
|
|
|
cash equivalents
|
|
|
1,563
|
|
|
|
(2,010
|
)
|
|
|
2,392
|
|
|
|
(1,502
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and
|
|
|
|
|
|
|
|
|
|
cash equivalents
|
|
|
(4,307
|
)
|
|
|
104,297
|
|
|
|
34,152
|
|
|
|
122,875
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, at beginning
|
|
|
|
|
|
|
|
|
|
of period
|
|
|
352,811
|
|
|
|
54,729
|
|
|
|
314,352
|
|
|
|
36,151
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, at end of period
|
|
$
|
348,504
|
|
|
$
|
159,026
|
|
|
$
|
348,504
|
|
|
$
|
159,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLD FUEL SERVICES CORPORATION
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial measures and reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to World Fuel
|
|
$
|
29,072
|
|
$
|
40,085
|
|
$
|
82,644
|
|
$
|
76,386
|
|
Share-based compensation expense, net of taxes
|
|
|
718
|
|
|
2,052
|
|
|
3,244
|
|
|
4,702
|
|
Intangible asset amortization expense, net of taxes
|
|
|
1,630
|
|
|
1,416
|
|
|
4,487
|
|
|
2,689
|
|
Non-GAAP net income attributable to World Fuel
|
|
$
|
31,420
|
|
$
|
43,553
|
|
$
|
90,375
|
|
$
|
83,777
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share
|
|
$
|
0.97
|
|
$
|
1.37
|
|
$
|
2.78
|
|
$
|
2.63
|
|
Share-based compensation expense, net of taxes
|
|
|
0.02
|
|
|
0.07
|
|
|
0.11
|
|
|
0.16
|
|
Intangible asset amortization expense, net of taxes
|
|
|
0.05
|
|
|
0.05
|
|
|
0.15
|
|
|
0.09
|
|
Non-GAAP diluted earnings per share
|
|
$
|
1.04
|
|
$
|
1.49
|
|
$
|
3.04
|
|
$
|
2.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLD FUEL SERVICES CORPORATION
|
|
BUSINESS SEGMENT INFORMATION
|
|
(UNAUDITED - IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
For the Nine Months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Marine segment
|
|
$
|
1,706,151
|
|
|
$
|
2,925,300
|
|
|
$
|
4,190,510
|
|
|
$
|
8,386,490
|
|
|
Aviation segment
|
|
|
1,154,206
|
|
|
|
2,045,278
|
|
|
|
2,696,786
|
|
|
|
6,169,625
|
|
|
Land segment
|
|
|
342,296
|
|
|
|
482,773
|
|
|
|
862,640
|
|
|
|
1,039,840
|
|
|
|
|
$
|
3,202,653
|
|
|
$
|
5,453,351
|
|
|
$
|
7,749,936
|
|
|
$
|
15,595,955
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
Marine segment
|
|
$
|
40,190
|
|
|
$
|
63,247
|
|
|
$
|
127,629
|
|
|
$
|
144,615
|
|
|
Aviation segment
|
|
|
42,892
|
|
|
|
50,451
|
|
|
|
114,657
|
|
|
|
130,762
|
|
|
Land segment
|
|
|
11,650
|
|
|
|
10,107
|
|
|
|
31,349
|
|
|
|
16,559
|
|
|
|
|
$
|
94,732
|
|
|
$
|
123,805
|
|
|
$
|
273,635
|
|
|
$
|
291,936
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
|
Marine segment
|
|
$
|
22,058
|
|
|
$
|
42,355
|
|
|
$
|
74,039
|
|
|
$
|
83,695
|
|
|
Aviation segment
|
|
|
21,204
|
|
|
|
23,906
|
|
|
|
50,603
|
|
|
|
54,075
|
|
|
Land segment
|
|
|
2,743
|
|
|
|
2,422
|
|
|
|
7,715
|
|
|
|
1,052
|
|
|
|
|
|
46,005
|
|
|
|
68,683
|
|
|
|
132,357
|
|
|
|
138,822
|
|
|
Corporate overhead
|
|
|
(5,132
|
)
|
|
|
(8,367
|
)
|
|
|
(22,252
|
)
|
|
|
(26,363
|
)
|
|
|
|
$
|
40,873
|
|
|
$
|
60,316
|
|
|
$
|
110,105
|
|
|
$
|
112,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, Executive Vice
President &
Chief Financial Officer
or
Francis X.
Shea, Executive Vice President &
Chief Risk and Administrative
Officer
305-428-8000
|
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