World Fuel Services Corporation Reports First Quarter 2018 Results

MIAMI--(BUSINESS WIRE)--Apr. 26, 2018--
World Fuel Services Corporation (NYSE: INT)

First-Quarter 2018 Highlights

  • GAAP net income of $31.2 million or $0.46 per diluted share
  • Adjusted net income of $35.0 million, or $0.52 per diluted share
  • Total of 4.9 billion gallons of fuel sold
  • Total gross profit of $243.4 million, up 5% year-over-year
  • Adjusted EBITDA of $80.9 million, up 5% year-over-year

“We are off to a good start in 2018, benefiting from seasonal increases
in our land business and solid performance by our aviation and marine
segments,” stated
Michael J. Kasbar, chairman and chief executive
officer of World Fuel Services Corporation. “While we are pleased with
our first quarter results, we remain focused on increasing levels of
profitability and returns by continuing to sharpen our portfolio and
drive greater cost efficiencies.”

For the first quarter, the company’s aviation segment generated gross
profit of $110.0 million, an increase of 10% year-over-year, primarily
driven by our government-related business and increased volume and
profitability in our international fueling operations. The company’s
marine segment generated gross profit of $31.2 million a decrease of 7%
year-over-year, primarily driven by the continued challenges in the
maritime industry and our strategy to reduce business in certain regions
where we were not generating satisfactory returns on capital. The
company’s land segment generated gross profit of $102.2 million, up 4%
year-over-year, primarily driven by the solid seasonal performance in
our land business in the United Kingdom.

“Our continued cost savings initiatives contributed to year-over-year
growth in adjusted operating income in all three operating segments in
the first quarter,” said
Ira M. Birns, executive vice president and
chief financial officer. “We believe that our commitment to a higher
standard of operational excellence will allow us to drive further
efficiencies in our business model and result in greater operating
leverage in the next 12 to 24 months, accelerating EBITDA growth.”

Liquidity and Capital

Cash flow used in operating activities was $229 million for the first
quarter 2018, primarily due to higher fuel prices combined with seasonal
and strategic investments in inventory of $108 million, as well as
approximately $121 million resulting from a newly adopted statement of
cash flows accounting standard. Our net debt to adjusted EBITDA ratio
stood at 2.2x at March 31, 2018 up from 1.8x at December 31, 2017.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including
adjusted net income, adjusted diluted earnings per share, adjusted
earnings before interest, taxes, depreciation and amortization
(“EBITDA”), and net debt (collectively, the “Non-GAAP Measures”). The
Non-GAAP measures exclude acquisition-related charges and severance and
restructuring charges primarily because we do not believe they are
reflective of the Company’s core operating results. We believe that the
Non-GAAP Measures, when considered in conjunction with our financial
information prepared in accordance with GAAP, are useful to investors to
further aid in evaluating the ongoing financial performance of the
Company and to provide greater transparency as supplemental information
to our GAAP results.

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 the Non-GAAP Measures may
not be comparable to the presentation of such metrics by other
companies. Non-GAAP diluted earnings per common share is computed by
dividing non-GAAP net income attributable to World Fuel Services and
available to common shareholders by the sum of the weighted average
number of shares of common stock, stock units, restricted stock entitled
to dividends not subject to forfeiture and vested restricted stock units
outstanding during the period and the number of additional shares of
common stock that would have been outstanding if our outstanding
potentially dilutive securities had been issued. Investors are
encouraged to review the reconciliation of these Non-GAAP Measures to
their most directly comparable GAAP financial measures in this press
release and on our website.

Information Relating to Forward-Looking Statements

This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding our beliefs and expectations with respect to our
continued focus on increasing levels of profitability and returns by
continuing to sharpen our portfolio and drive greater cost efficiencies,
as well as our commitment to a higher standard of operational excellence
and our expectations about driving efficiencies, our operating leverage
and EBITDA growth. These forward-looking statements are qualified in
their entirety by cautionary statements and risk factor disclosures
contained in the Company’s Securities and Exchange Commission (“SEC”)
filings, including the Company’s most recent Annual Report on Form 10-K
filed with the SEC. Actual results may differ materially from any
forward-looking statements due to risks and uncertainties, including,
but not limited to: our ability to effectively leverage technology and
operating systems and realize the anticipated benefits, our ability to
successfully execute and achieve efficiencies and other benefits related
to our transformation initiatives, our ability to achieve the expected
level of benefit from our restructuring activities and cost reduction
initiatives, unanticipated tax liabilities or adverse results of tax
audits, assessments, or disputes, our ability to successfully implement
our growth strategy, our ability to effectively integrate acquired
businesses and recognize the anticipated benefits, risks related to the
complexity of U.S. Tax Reform and our ability to accurately predict its
impact on our returns, our ability to capitalize on new market
opportunities and changes in supply and other market dynamics in the
regions where we operate, potential liabilities and the extent of any
insurance coverage, the outcome of pending litigation and other
proceedings, risks related to the complexity of U.S. Tax Reform and our
ability to accurately predict its impact on our future earnings, the
impact of quarterly fluctuations in results, particularly as a result of
seasonality, the creditworthiness of our customers and counterparties
and our ability to collect accounts receivable, 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 and suppliers
operate, our failure to effectively hedge certain financial risks
associated with the use of derivatives, non-performance by
counterparties or customers on derivatives contracts, loss of, or
reduced sales, to a significant government customer, uninsured losses,
the impact of natural disasters, adverse results in legal disputes, our
ability to retain and attract senior management and other key employees
and other risks detailed from time to time in our SEC filings. New risks
emerge from time to time and it is not possible for management to
predict all such risk factors or to assess the impact of such risks on
our business. Accordingly, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, changes in expectations, future events, or otherwise,
except as required by law.

About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services is a global energy
management company involved in providing energy procurement advisory
services, supply fulfillment and transaction and payment management
solutions to commercial and industrial customers, principally in the
aviation, marine and land transportation industries. World Fuel Services
sells fuel and delivers services to its clients at more than 8,000
locations in more than 200 countries and territories worldwide.

For more information, call 305-428-8000 or visit www.wfscorp.com.

-- Some amounts in this press release may not add due to rounding. All
percentages have been calculated using unrounded amounts --

Source: World Fuel Services Corporation

World Fuel Services Corporation
Ira M. Birns, Executive Vice
President &
Chief Financial Officer
or
Glenn Klevitz
Vice
President, Assistant Treasurer
305-428-8000

WORLD FUEL SERVICES CORPORATION CONSOLIDATED BALANCE SHEETS
(Unaudited - In millions, except per share data)

WORLD FUEL SERVICES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - In millions)

WORLD FUEL SERVICES CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited - In millions, except per share data)

WORLD FUEL SERVICES CORPORATION BUSINESS SEGMENTS INFORMATION
(Unaudited - In millions)

SALES VOLUME SUPPLEMENTAL INFORMATION
(Unaudited - In millions)