World Fuel Services Corporation Reports Third Quarter 2017 Results

MIAMI--(BUSINESS WIRE)--Oct. 26, 2017--
World Fuel Services Corporation (NYSE: INT) today reported third quarter
2017 net loss of $38.5 million or $0.57 diluted loss per share, which
includes a non-cash accounting charge of $76.9 million relating to a
U.S. deferred tax valuation allowance (“DTA”). Excluding the DTA and
certain other one-time items, adjusted third quarter net income was
$40.9 million or $0.60 adjusted diluted earnings per share. In the third
quarter of 2016, net income as adjusted for one-time items was $45.1
million
or $0.65 adjusted diluted earnings per share. Non-GAAP net
income and diluted earnings per share for the third quarter of 2017,
excluding share-based compensation, amortization of acquired intangible
assets and other one-time items were $52.0 million and $0.77,
respectively, compared to $57.2 million and $0.82 in 2016.

“In the third quarter, we were pleased with our performance despite the
challenges brought by an unprecedented series of hurricanes,” stated

Michael J. Kasbar, chairman and chief executive officer of World Fuel
Services Corporation
. “We have a solid pipeline of initiatives to
accelerate organic growth and remain committed to our long-term strategy
of leveraging our comprehensive energy management, omni-channel
fulfillment and payments platform.”

The company’s aviation segment generated gross profit of $123.9 million,
an increase of $12.3 million or 11.0% year-over-year. The company’s
marine segment generated gross profit of $30.5 million, a decrease of
$6.8 million or 18.2% year-over-year. The company’s land segment
generated gross profit of $85.5 million, a decrease of $2.3 million or
2.6% year-over-year.

“Despite operational disruptions during the quarter, our strategically
diversified business model delivered a solid financial result,” said
Ira
M. Birns
, executive vice president and chief financial officer. “We
repurchased an additional $30 million of our common stock during the
quarter, taking year-to-date repurchases to $62 million, delivering on
our commitment to return further value to our shareholders.”

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, including
Non-GAAP and adjusted net income and diluted earnings per share (“EPS”)
for the three and nine months ended September 30, 2017 and 2016
(collectively, the “2017 Non-GAAP Measures”). The 2017 Non-GAAP Measures
exclude costs associated with share-based compensation, amortization of
acquired intangible assets, acquisition-related charges, valuation
allowance against the net U.S. deferred tax assets, severance and other
restructuring-related costs primarily because we do not believe they are
reflective of the Company’s core operating results. We believe the
exclusion of share-based compensation from operating expenses is useful
given the variation in expense that can result from changes in the fair
value of our common stock, the effect of which is unrelated to the
operational conditions that give rise to variations in the components of
our operating costs. Also, we believe the exclusion of the amortization
of acquired intangible assets, acquisition-related charges, valuation
allowance against the net U.S. deferred tax assets, severance and other
restructuring-related costs are useful for purposes of evaluating
operating performance of our core operating results and comparing them
period over period. We believe that the 2017 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 2017 Non-GAAP Measures
may not be comparable to the presentation of such metrics by other
companies. Non-GAAP and adjusted diluted earnings per common share is
computed by dividing non-GAAP net income and adjusted net income,
respectively, 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 2017 Non-GAAP Measures to their most directly
comparable GAAP financial measures.

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 expectations about accelerating organic growth
and executing on our long-term strategy. 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 effectively integrate and derive benefits from acquired
businesses, 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, 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,
unanticipated tax liabilities, our ability to retain and attract senior
management and other key employees and other risks detailed from time to
time in the Company’s 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.

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, 305-428-8000
Executive
Vice President & Chief Financial Officer
or
Glenn Klevitz,
305-428-8000
Vice President, Assistant Treasurer & Investor
Relations

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

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

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

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

SALES VOLUME SUPPLEMENTAL INFORMATION
(Unaudited - In millions)