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![]() | Contact: Ira M. Birns, Executive Vice President & Chief Financial Officer Glenn Klevitz Vice President, Treasury & Investor Relations 305-428-8000 |
• | GAAP net income of $38.2 million or $0.56 per diluted share |
• | Adjusted net income of $42.5 million, or $0.63 per diluted share |
• | Total of 5.0 billion gallons of fuel sold |
• | Total gross profit of $266.7 million, up 11% year-over-year |
• | Adjusted EBITDA of $104.3 million, up 23% year-over-year |
As of | ||||||||
September 30, | December 31, | |||||||
2018 | 2017 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 142.1 | $ | 372.3 | ||||
Accounts receivable, net | 3,106.9 | 2,705.6 | ||||||
Inventories | 679.3 | 505.0 | ||||||
Prepaid expenses | 78.9 | 64.4 | ||||||
Short-term derivative assets, net | 61.8 | 51.1 | ||||||
Other current assets | 265.8 | 241.9 | ||||||
Total current assets | 4,334.7 | 3,940.4 | ||||||
Property and equipment, net | 338.8 | 329.8 | ||||||
Goodwill | 855.6 | 845.5 | ||||||
Identifiable intangible and other non-current assets | 485.7 | 472.1 | ||||||
Total assets | $ | 6,014.8 | $ | 5,587.8 | ||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital leases | $ | 35.7 | $ | 25.6 | ||||
Accounts payable | 2,785.9 | 2,239.7 | ||||||
Customer deposits | 105.9 | 108.3 | ||||||
Accrued expenses and other current liabilities | 357.1 | 344.9 | ||||||
Total current liabilities | 3,284.5 | 2,718.6 | ||||||
Long-term debt | 706.6 | 884.6 | ||||||
Non-current income tax liabilities, net | 192.6 | 202.4 | ||||||
Other long-term liabilities | 49.9 | 44.2 | ||||||
Total liabilities | 4,233.6 | 3,849.8 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
World Fuel shareholders' equity: | ||||||||
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued | — | — | ||||||
Common stock, $0.01 par value; 100.0 shares authorized, 67.0 and 67.7 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 0.7 | 0.7 | ||||||
Capital in excess of par value | 340.8 | 354.9 | ||||||
Retained earnings | 1,580.4 | 1,492.8 | ||||||
Accumulated other comprehensive loss | (156.7 | ) | (126.5 | ) | ||||
Total World Fuel shareholders' equity | 1,765.2 | 1,721.9 | ||||||
Noncontrolling interest | 16.0 | 16.0 | ||||||
Total equity | 1,781.2 | 1,738.0 | ||||||
Total liabilities and equity | $ | 6,014.8 | $ | 5,587.8 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | $ | 10,429.5 | $ | 8,543.0 | $ | 29,761.7 | $ | 24,823.4 | ||||||||
Cost of revenue | 10,162.8 | 8,303.1 | 29,005.4 | 24,121.1 | ||||||||||||
Gross profit | 266.7 | 239.9 | 756.3 | 702.3 | ||||||||||||
Operating expenses: | ||||||||||||||||
Compensation and employee benefits | 117.9 | 107.6 | 342.0 | 314.5 | ||||||||||||
General and administrative | 70.6 | 71.0 | 217.8 | 225.0 | ||||||||||||
188.5 | 178.6 | 559.8 | 539.5 | |||||||||||||
Income from operations | 78.2 | 61.3 | 196.4 | 162.8 | ||||||||||||
Non-operating expenses, net: | ||||||||||||||||
Interest expense and other financing costs, net | (18.3 | ) | (15.8 | ) | (52.5 | ) | (42.2 | ) | ||||||||
Other expense, net | 1.9 | (0.9 | ) | (2.0 | ) | (5.0 | ) | |||||||||
(16.4 | ) | (16.7 | ) | (54.5 | ) | (47.3 | ) | |||||||||
Income before income taxes | 61.8 | 44.6 | 142.0 | 115.6 | ||||||||||||
Provision for income taxes | 23.0 | 82.6 | 42.7 | 92.2 | ||||||||||||
Net income (loss) including noncontrolling interest | 38.7 | (37.9 | ) | 99.2 | 23.4 | |||||||||||
Net income attributable to noncontrolling interest | 0.6 | 0.6 | 1.1 | 0.6 | ||||||||||||
Net income (loss) attributable to World Fuel | $ | 38.2 | $ | (38.5 | ) | $ | 98.1 | $ | 22.8 | |||||||
Basic earnings per common share | $ | 0.57 | $ | (0.57 | ) | $ | 1.45 | $ | 0.33 | |||||||
Basic weighted average common shares | 67.5 | 67.9 | 67.5 | 68.3 | ||||||||||||
Diluted earnings per common share | $ | 0.56 | $ | (0.57 | ) | $ | 1.45 | $ | 0.33 | |||||||
Diluted weighted average common shares | 67.7 | 68.2 | 67.8 | 68.6 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income including noncontrolling interest | $ | 38.7 | $ | (37.9 | ) | $ | 99.2 | $ | 23.4 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | (4.7 | ) | 12.2 | (23.0 | ) | 29.8 | ||||||||||
Cash flow hedges, net of income tax benefit of $3.5 and $5.5 for the three months ended September 30, 2018 and 2017, respectively, and net of income tax benefit of $5.2 and income tax expense of $1.1 for the nine months ended September 30, 2018 and 2017, respectively | (5.6 | ) | (8.7 | ) | (8.4 | ) | 1.8 | |||||||||
Other comprehensive income (loss): | (10.3 | ) | 3.5 | (31.4 | ) | 31.6 | ||||||||||
Comprehensive income (loss) including noncontrolling interest | 28.5 | (34.4 | ) | 67.8 | 55.0 | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 0.1 | 1.1 | (1.2 | ) | 2.2 | |||||||||||
Comprehensive income (loss) attributable to World Fuel | $ | 28.4 | $ | (35.5 | ) | $ | 69.1 | $ | 52.8 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) including noncontrolling interest | $ | 38.7 | $ | (37.9 | ) | $ | 99.2 | $ | 23.4 | |||||||
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 20.6 | 20.7 | 59.0 | 64.1 | ||||||||||||
Provision for bad debt | 3.5 | 2.4 | 7.6 | 6.3 | ||||||||||||
Valuation allowance against the net U.S. deferred tax assets | — | 76.9 | — | 76.9 | ||||||||||||
Share-based payment award compensation costs | 1.6 | 6.0 | 8.0 | 15.3 | ||||||||||||
Deferred income tax benefit | (0.7 | ) | (13.2 | ) | (1.8 | ) | (21.2 | ) | ||||||||
Foreign currency losses, net | 7.4 | 14.9 | 4.9 | 8.4 | ||||||||||||
Other | (1.2 | ) | (0.6 | ) | (0.8 | ) | (2.4 | ) | ||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable, net (reduced by beneficial interests received in exchange for accounts receivables sold of $109.3 million and $82.1 million for the three months ended September 30, 2018 and 2017, respectively, and $353.0 million and $239.2 million for the nine months ended September 30, 2018 and 2017, respectively.) | (275.8 | ) | (444.9 | ) | (775.5 | ) | (492.6 | ) | ||||||||
Inventories | (120.4 | ) | (84.7 | ) | (177.1 | ) | (69.5 | ) | ||||||||
Prepaid expenses | (19.4 | ) | (10.2 | ) | (17.2 | ) | (9.8 | ) | ||||||||
Short-term derivative assets, net | (13.7 | ) | 14.2 | (35.7 | ) | 28.4 | ||||||||||
Other current assets | (11.5 | ) | (52.7 | ) | (43.7 | ) | (49.7 | ) | ||||||||
Cash collateral with financial counterparties | (1.7 | ) | (9.7 | ) | 40.0 | (15.6 | ) | |||||||||
Other non-current assets | (6.5 | ) | (6.9 | ) | (39.3 | ) | (19.3 | ) | ||||||||
Accounts payable | 253.1 | 241.0 | 554.0 | 253.7 | ||||||||||||
Customer deposits | 11.0 | 7.3 | (1.1 | ) | 6.4 | |||||||||||
Accrued expenses and other current liabilities | 17.2 | 72.7 | (5.4 | ) | — | |||||||||||
Non-current income tax, net and other long-term liabilities | 10.3 | 14.1 | 8.9 | 5.9 | ||||||||||||
Total adjustments | (126.2 | ) | (152.6 | ) | (415.2 | ) | (214.5 | ) | ||||||||
Net cash used in operating activities | (87.4 | ) | (190.6 | ) | (316.0 | ) | (191.1 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Cash receipts of retained beneficial interests in receivable sales | 115.6 | 80.0 | 357.5 | 236.3 | ||||||||||||
Acquisition of businesses, net of cash acquired | — | (6.1 | ) | (21.0 | ) | (94.6 | ) | |||||||||
Capital expenditures | (15.8 | ) | (6.3 | ) | (44.7 | ) | (37.8 | ) | ||||||||
Other investing activities, net | (0.3 | ) | (0.1 | ) | 7.3 | (0.5 | ) | |||||||||
Net cash provided by investing activities | 99.5 | 67.4 | 299.0 | 103.4 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of debt | 1,788.5 | 1,508.3 | 4,663.5 | 3,500.1 | ||||||||||||
Repayments of debt | (1,821.6 | ) | (1,381.5 | ) | (4,841.2 | ) | (3,492.6 | ) | ||||||||
Dividends paid on common stock | (4.1 | ) | (4.1 | ) | (12.1 | ) | (12.3 | ) | ||||||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to share-based payment awards | (0.1 | ) | (0.1 | ) | (2.2 | ) | (4.0 | ) | ||||||||
Purchases of common stock | (20.0 | ) | (30.0 | ) | (20.0 | ) | (61.9 | ) | ||||||||
Other financing activities, net | — | (1.6 | ) | — | (2.0 | ) | ||||||||||
Net cash (used in) provided by financing activities | (57.3 | ) | 91.0 | (212.0 | ) | (72.7 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (0.2 | ) | 2.6 | (1.3 | ) | 7.8 | ||||||||||
Net decrease in cash and cash equivalents | (45.5 | ) | (29.6 | ) | (230.3 | ) | (152.6 | ) | ||||||||
Cash and cash equivalents, as of beginning of period | 187.6 | 575.6 | 372.3 | 698.6 | ||||||||||||
Cash and cash equivalents, as of end of period | $ | 142.1 | $ | 546.0 | $ | 142.1 | $ | 546.0 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Non-GAAP financial measures and reconciliation: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income attributable to World Fuel | $ | 38.2 | $ | (38.5 | ) | $ | 98.1 | $ | 22.8 | |||||||
Acquisition related charges | 0.3 | 1.3 | 1.7 | 6.8 | ||||||||||||
Severance and other restructuring-related costs | 5.2 | 2.1 | 12.2 | 7.1 | ||||||||||||
Valuation allowance against the net U.S. deferred tax assets | — | 76.9 | — | 76.9 | ||||||||||||
Income tax impacts | (1.2 | ) | (0.9 | ) | (2.9 | ) | (4.0 | ) | ||||||||
Adjusted net income attributable to World Fuel | $ | 42.5 | $ | 40.9 | $ | 109.2 | $ | 109.6 | ||||||||
Diluted earnings per common share | $ | 0.56 | $ | (0.57 | ) | $ | 1.45 | $ | 0.33 | |||||||
Acquisition related charges | 0.01 | 0.02 | 0.03 | 0.10 | ||||||||||||
Severance and other restructuring-related costs | 0.08 | 0.03 | 0.18 | 0.10 | ||||||||||||
Valuation allowance against the net U.S. deferred tax assets | — | 1.13 | — | 1.12 | ||||||||||||
Income tax impacts | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.06 | ) | ||||||||
Adjusted diluted earnings per common share | $ | 0.63 | $ | 0.60 | $ | 1.61 | $ | 1.60 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Non-GAAP financial measures and reconciliation: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Income from operations | $ | 78.2 | $ | 61.3 | $ | 196.4 | $ | 162.8 | ||||||||
Depreciation and amortization | 20.6 | 20.7 | 59.0 | 64.1 | ||||||||||||
Acquisition-related charges | 0.3 | 0.5 | 1.7 | 6.0 | ||||||||||||
Severance and other restructuring-related costs | 5.2 | 2.1 | 12.2 | 6.5 | ||||||||||||
Adjusted EBITDA(1) | $ | 104.3 | $ | 84.6 | $ | 269.4 | $ | 239.5 |
(1) | The Company defines adjusted EBITDA as income from operations, excluding the impact of depreciation and amortization, and items that are considered to be non-operational and are not representative of our core business, including those associated with severance, restructuring and acquisition-related costs. |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Revenue: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Aviation segment | $ | 5,025.3 | $ | 3,705.8 | $ | 14,218.9 | $ | 10,531.6 | ||||||||
Land segment | 2,854.4 | 2,770.5 | 8,675.3 | 8,117.9 | ||||||||||||
Marine segment | 2,549.8 | 2,066.7 | 6,867.5 | 6,173.9 | ||||||||||||
$ | 10,429.5 | $ | 8,543.0 | $ | 29,761.7 | $ | 24,823.4 | |||||||||
Gross profit: | ||||||||||||||||
Aviation segment | $ | 140.7 | $ | 123.9 | $ | 378.0 | $ | 334.8 | ||||||||
Land segment | 83.0 | 85.5 | 273.8 | 270.5 | ||||||||||||
Marine segment | 43.0 | 30.5 | 104.5 | 97.0 | ||||||||||||
$ | 266.7 | $ | 239.9 | $ | 756.3 | $ | 702.3 | |||||||||
Income from operations: | ||||||||||||||||
Aviation segment | $ | 76.4 | $ | 61.6 | $ | 188.3 | $ | 151.7 | ||||||||
Land segment | 7.8 | 13.1 | 37.7 | 46.7 | ||||||||||||
Marine segment | 14.4 | 4.3 | 30.9 | 19.9 | ||||||||||||
98.6 | 79.1 | 256.9 | 218.4 | |||||||||||||
Corporate overhead - unallocated | (20.5 | ) | (17.8 | ) | (60.4 | ) | (55.5 | ) | ||||||||
$ | 78.2 | $ | 61.3 | $ | 196.4 | $ | 162.8 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
Volume (Gallons): | 2018 | 2017 | 2018 | 2017 | ||||||||
Aviation Segment | 2,089.5 | 2,059.2 | 6,146.8 | 5,921.7 | ||||||||
Land Segment (1) | 1,344.6 | 1,497.4 | 4,235.3 | 4,466.8 | ||||||||
Marine Segment (2) | 1,575.0 | 1,799.5 | 4,653.9 | 5,388.6 | ||||||||
Consolidated Total | 5,009.1 | 5,356.2 | 15,036.1 | 15,777.1 |
(1) | Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (KwH) for our Kinect power business. |
(2) | Converted from metric tons to gallons at a rate of 264 gallons per metric ton. Marine segment metric tons were 6.0 and 17.6 for the three and nine months ended September 30, 2018. |
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