World Fuel Services Corporation Reports Second Quarter 2018 Results
MIAMI—July 26, 2018-- World Fuel Services Corporation (NYSE: INT)
Second-Quarter 2018 Highlights
GAAP net income of $28.7 million or $0.42 per diluted share
Adjusted net income of $31.7 million, or $0.47 per diluted share
Total of 5.1 billion gallons of fuel sold
Total gross profit of $246.2 million, up 7% year-over-year
Adjusted EBITDA of $84.2 million, up 8% year-over-year
“During the second quarter, our aviation segment posted record profitability,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “Our focus on operating efficiencies, portfolio refinement and organic growth initiatives should position the company for improved operating performance in 2018 and 2019.”
For the quarter, the company’s aviation segment generated gross profit of $127.4 million, an increase of 15% year-over-year, primarily driven by strong government-related sales and international core resale operations. The company’s marine segment generated gross profit of $30.2 million, a decrease of 8% year-over-year, primarily due to exiting low return activities. The company’s land segment generated gross profit of $88.6 million, up 2% year-over-year, driven by growth in our payment solutions business and natural gas and power operations, partially offset by our continued reduction of certain non-core activities in North America.
“Our business performed well and recent cost management initiatives have contributed to a 170 basis point improvement in operating leverage during the first half of the year compared to 2017. These actions contributed to year-over-year adjusted EBITDA improvement for the fifth consecutive quarter,” said Ira M. Birns, executive vice president and chief financial officer. “We remain committed to improving our operating leverage by 250 basis points in 2018 and 2019, which will aid us in growing future profitability and free cash flow.”
Liquidity and Capital
Cash flow generated from operating activities was $0.3 million for the second quarter of 2018. This reflects the impact of a change in classification of $121.8 million of cash proceeds received from the beneficial interest of receivables sold from cash flow from operating activities to cash flow from investing activities due to a recently adopted accounting standard beginning in 2018. Strong working capital
The following information was filed by World Fuel Services Corp (INT) on Thursday, July 26, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: INT CIK: 789460 Form Type:10-Q Quarterly Report Accession Number: 0001628280-18-009716 Submitted to the SEC: Fri Jul 27 2018 7:54:10 PM EST Accepted by the SEC: Mon Jul 30 2018 Period: Saturday, June 30, 2018 Industry: Wholesale Petroleum And Petroleum Products No Bulk Stations