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![]() | Contact: Ira M. Birns, Executive Vice President & Chief Financial Officer Glenn Klevitz Vice President, Treasury & Investor Relations 305-428-8000 |
• | Total gross profit of $262.2 million, up 14% year-over-year |
• | Adjusted EBITDA of $90.7 million, up 48% year-over-year |
• | GAAP net income of $29.6 million, or $0.44 per diluted share |
• | Adjusted net income of $33.7 million, or $0.50 per diluted share |
• | Total gross profit of $1.02 billion, up 9% year-over-year |
• | Adjusted EBITDA of $360.3 million, up 20% year-over-year |
• | GAAP net income of $127.7 million, or $1.89 per diluted share |
• | Adjusted net income of $142.9 million, or $2.11 per diluted share |
As of | ||||||||
December 31, | December 31, | |||||||
2018 | 2017 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 211.7 | $ | 372.3 | ||||
Accounts receivable, net | 2,751.3 | 2,705.6 | ||||||
Inventories | 523.1 | 505.0 | ||||||
Prepaid expenses | 65.7 | 64.4 | ||||||
Short-term derivative assets, net | 155.2 | 51.1 | ||||||
Other current assets | 279.6 | 241.9 | ||||||
Total current assets | 3,986.7 | 3,940.4 | ||||||
Property and equipment, net | 349.1 | 329.8 | ||||||
Goodwill | 852.7 | 845.5 | ||||||
Identifiable intangible and other non-current assets | 499.0 | 472.1 | ||||||
Total assets | $ | 5,687.5 | $ | 5,587.8 | ||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt and capital leases | $ | 40.7 | $ | 25.6 | ||||
Accounts payable | 2,404.5 | 2,239.7 | ||||||
Customer deposits | 125.2 | 108.3 | ||||||
Accrued expenses and other current liabilities | 376.9 | 344.9 | ||||||
Total current liabilities | 2,947.3 | 2,718.6 | ||||||
Long-term debt | 659.1 | 884.6 | ||||||
Non-current income tax liabilities, net | 194.6 | 202.4 | ||||||
Other long-term liabilities | 54.9 | 44.2 | ||||||
Total liabilities | 3,855.9 | 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 December 31, 2018 and December 31, 2017, respectively | 0.7 | 0.7 | ||||||
Capital in excess of par value | 340.4 | 354.9 | ||||||
Retained earnings | 1,606.1 | 1,492.8 | ||||||
Accumulated other comprehensive loss | (131.7 | ) | (126.5 | ) | ||||
Total World Fuel shareholders' equity | 1,815.4 | 1,721.9 | ||||||
Noncontrolling interest | 16.1 | 16.0 | ||||||
Total equity | 1,831.6 | 1,738.0 | ||||||
Total liabilities and equity | $ | 5,687.5 | $ | 5,587.8 |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | $ | 9,988.6 | $ | 8,872.0 | $ | 39,750.3 | $ | 33,695.5 | ||||||||
Cost of revenue | 9,726.3 | 8,642.1 | 38,731.8 | 32,763.3 | ||||||||||||
Gross profit | 262.2 | 229.9 | 1,018.5 | 932.2 | ||||||||||||
Operating expenses: | ||||||||||||||||
Compensation and employee benefits | 109.9 | 113.8 | 442.1 | 428.2 | ||||||||||||
General and administrative | 84.2 | 81.9 | 299.6 | 306.9 | ||||||||||||
Goodwill and other impairments | — | 91.9 | — | 91.9 | ||||||||||||
Restructuring charges | 4.9 | 59.6 | 17.1 | 59.6 | ||||||||||||
199.0 | 347.2 | 758.8 | 886.6 | |||||||||||||
Income from operations | 63.2 | (117.2 | ) | 259.7 | 45.6 | |||||||||||
Non-operating expenses, net: | ||||||||||||||||
Interest expense and other financing costs, net | (18.5 | ) | (18.1 | ) | (71.0 | ) | (60.3 | ) | ||||||||
Other income (expense), net | (1.8 | ) | (1.3 | ) | (3.8 | ) | (6.4 | ) | ||||||||
(20.3 | ) | (19.4 | ) | (74.8 | ) | (66.7 | ) | |||||||||
Income (loss) before income taxes | 42.9 | (136.7 | ) | 184.9 | (21.1 | ) | ||||||||||
Provision for income taxes | 13.2 | 57.0 | 55.9 | 149.2 | ||||||||||||
Net income (loss) including noncontrolling interest | 29.8 | (193.7 | ) | 129.0 | (170.3 | ) | ||||||||||
Net income (loss) attributable to noncontrolling interest | 0.1 | (0.6 | ) | 1.3 | (0.1 | ) | ||||||||||
Net income (loss) attributable to World Fuel | $ | 29.6 | $ | (193.1 | ) | $ | 127.7 | $ | (170.2 | ) | ||||||
Basic earnings per common share | $ | 0.44 | $ | (2.86 | ) | $ | 1.89 | $ | (2.50 | ) | ||||||
Basic weighted average common shares | 67.1 | 67.4 | 67.4 | 68.1 | ||||||||||||
Diluted earnings per common share | $ | 0.44 | $ | (2.86 | ) | $ | 1.89 | $ | (2.50 | ) | ||||||
Diluted weighted average common shares | 67.4 | 67.4 | 67.7 | 68.1 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) including noncontrolling interest | $ | 29.8 | $ | (193.7 | ) | $ | 129.0 | $ | (170.3 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | (4.3 | ) | 0.3 | (27.3 | ) | 30.1 | ||||||||||
Cash flow hedges, net of income tax expense of $9.9 and income tax benefit of $1.3 for the three months ended December 31, 2018 and 2017, respectively, and net of income tax expense of $7.0 and income tax benefit of $0.3 for the twelve months ended December 31, 2018 and 2017, respectively | 29.4 | (2.1 | ) | 21.0 | (0.3 | ) | ||||||||||
Other comprehensive income (loss): | 25.1 | (1.8 | ) | (6.3 | ) | 29.8 | ||||||||||
Comprehensive income (loss) including noncontrolling interest | 54.8 | (195.5 | ) | 122.6 | (140.5 | ) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 0.1 | (0.1 | ) | (1.2 | ) | 1.5 | ||||||||||
Comprehensive income (loss) attributable to World Fuel | $ | 54.8 | $ | (195.4 | ) | $ | 123.8 | $ | (142.0 | ) |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) including noncontrolling interest | $ | 29.8 | $ | (193.7 | ) | $ | 129.0 | $ | (170.3 | ) | ||||||
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 22.2 | 21.9 | 81.5 | 86.0 | ||||||||||||
Provision for bad debt | 17.5 | 3.0 | 25.1 | 9.3 | ||||||||||||
Goodwill and other impairments | — | 91.9 | — | 91.9 | ||||||||||||
Restructuring Charges | — | 25.7 | — | 25.7 | ||||||||||||
Share-based payment award compensation costs | 0.3 | 6.0 | 8.3 | 21.2 | ||||||||||||
Deferred income tax provision (benefit) | (1.5 | ) | 35.1 | (3.2 | ) | 13.9 | ||||||||||
Foreign currency losses, net | 3.8 | (9.0 | ) | 8.7 | (0.6 | ) | ||||||||||
Other | (2.5 | ) | (75.8 | ) | (3.3 | ) | (1.2 | ) | ||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable, net (reduced by beneficial interests received in exchange for accounts receivables sold of $0.9 and $104.0 for the three months ended December 31, 2018 and 2017, respectively, and $353.9 and $343.3 for the twelve months ended December 31, 2018 and 2017, respectively) | 318.6 | (212.8 | ) | (456.9 | ) | (705.4 | ) | |||||||||
Inventories | 165.3 | 25.6 | (11.8 | ) | (43.9 | ) | ||||||||||
Prepaid expenses | 12.0 | (9.8 | ) | (5.3 | ) | (19.7 | ) | |||||||||
Short-term derivative assets, net | (115.6 | ) | (28.6 | ) | (151.3 | ) | (0.2 | ) | ||||||||
Other current assets | (16.5 | ) | 35.8 | (53.4 | ) | (13.9 | ) | |||||||||
Cash collateral with financial counterparties | (10.8 | ) | (11.2 | ) | 29.2 | (26.7 | ) | |||||||||
Other non-current assets | (22.2 | ) | (11.1 | ) | (61.5 | ) | (30.3 | ) | ||||||||
Accounts payable | (376.3 | ) | 197.5 | 177.7 | 451.2 | |||||||||||
Customer deposits | 19.9 | 7.1 | 18.8 | 13.4 | ||||||||||||
Accrued expenses and other current liabilities | 79.2 | 77.7 | 72.7 | 77.7 | ||||||||||||
Non-current income tax, net and other long-term liabilities | 11.2 | 82.5 | 14.4 | 88.4 | ||||||||||||
Total adjustments | 104.6 | 251.3 | (310.4 | ) | 36.8 | |||||||||||
Net cash provided by (used in) operating activities | 134.3 | 57.6 | (181.4 | ) | (133.5 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Cash receipts of retained beneficial interests in receivable sales | 12.3 | 102.5 | 369.8 | 338.8 | ||||||||||||
Acquisition of businesses, net of cash acquired | (0.2 | ) | (26.1 | ) | (21.3 | ) | (120.7 | ) | ||||||||
Capital expenditures | (26.0 | ) | (16.1 | ) | (70.7 | ) | (54.0 | ) | ||||||||
Other investing activities, net | 2.5 | (4.9 | ) | 9.8 | (5.4 | ) | ||||||||||
Net cash (used in) provided by investing activities | (11.4 | ) | 55.3 | 287.6 | 158.7 | |||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of debt | 1,523.8 | 972.6 | 6,187.2 | 4,472.7 | ||||||||||||
Repayments of debt | (1,567.6 | ) | (1,257.1 | ) | (6,408.8 | ) | (4,749.7 | ) | ||||||||
Dividends paid on common stock | (4.0 | ) | (4.0 | ) | (16.2 | ) | (16.3 | ) | ||||||||
Purchases of common stock | — | — | (20.0 | ) | (61.9 | ) | ||||||||||
Other financing activities, net | 0.1 | (0.3 | ) | (2.1 | ) | (6.3 | ) | |||||||||
Net cash (used in) provided by financing activities | (47.7 | ) | (288.9 | ) | (259.8 | ) | (361.6 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (5.5 | ) | 2.4 | (7.0 | ) | 10.3 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 69.7 | (173.6 | ) | (160.6 | ) | (326.2 | ) | |||||||||
Cash and cash equivalents, as of beginning of period | 142.1 | 546.0 | 372.3 | 698.6 | ||||||||||||
Cash and cash equivalents, as of end of period | $ | 211.7 | $ | 372.3 | $ | 211.7 | $ | 372.3 |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
Non-GAAP financial measures and reconciliation: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income attributable to World Fuel | $ | 29.6 | $ | (193.1 | ) | $ | 127.7 | $ | (170.2 | ) | ||||||
Goodwill and other impairments | — | 91.9 | — | 91.9 | ||||||||||||
Acquisition related charges | 0.3 | 5.1 | 2.0 | 12.0 | ||||||||||||
Severance and other restructuring-related costs | 4.9 | 59.6 | 17.1 | 66.6 | ||||||||||||
Valuation allowance against the net U.S. deferred tax assets | — | (76.9 | ) | — | — | |||||||||||
Income tax impacts | (1.1 | ) | (27.1 | ) | (4.0 | ) | (31.1 | ) | ||||||||
Tax impact of the Tax Cuts and Jobs Act of 2017 | $ | — | $ | 157.4 | $ | — | $ | 157.4 | ||||||||
Adjusted net income attributable to World Fuel | $ | 33.7 | $ | 17.0 | $ | 142.9 | $ | 126.6 | ||||||||
Diluted earnings per common share | $ | 0.44 | $ | (2.86 | ) | $ | 1.89 | $ | (2.50 | ) | ||||||
Goodwill and other impairments | — | 1.36 | — | 1.35 | ||||||||||||
Acquisition related charges | — | 0.08 | 0.03 | 0.18 | ||||||||||||
Severance and other restructuring-related costs | 0.07 | 0.88 | 0.25 | 0.98 | ||||||||||||
Valuation allowance against the net U.S. deferred tax assets | — | (1.14 | ) | — | — | |||||||||||
Income tax impacts | (0.02 | ) | (0.40 | ) | (0.06 | ) | (0.46 | ) | ||||||||
Tax impact of the Tax Cuts and Jobs Act of 2017 | $ | — | $ | 2.33 | $ | — | $ | 2.31 | ||||||||
Adjusted diluted earnings per common share | $ | 0.50 | $ | 0.25 | $ | 2.11 | $ | 1.86 |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
Non-GAAP financial measures and reconciliation: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Income from operations | $ | 63.2 | $ | (117.2 | ) | $ | 259.7 | $ | 45.6 | |||||||
Goodwill and other impairments | — | 91.9 | — | 91.9 | ||||||||||||
Depreciation and amortization | 22.2 | 21.8 | 81.5 | 86.1 | ||||||||||||
Acquisition-related charges | 0.3 | 5.1 | 2.0 | 11.2 | ||||||||||||
Severance and other restructuring-related costs | 4.9 | 59.6 | 17.1 | 66.0 | ||||||||||||
Adjusted EBITDA(1) | $ | 90.7 | $ | 61.2 | $ | 360.3 | $ | 300.8 |
(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 Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
Revenue: | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Aviation segment | $ | 4,900.8 | $ | 4,006.7 | $ | 19,119.7 | $ | 14,538.2 | ||||||||
Land segment | 2,705.7 | 2,840.1 | 11,381.1 | 10,958.0 | ||||||||||||
Marine segment | 2,382.0 | 2,025.3 | 9,249.5 | 8,199.3 | ||||||||||||
$ | 9,988.6 | $ | 8,872.0 | $ | 39,750.3 | $ | 33,695.5 | |||||||||
Gross profit: | ||||||||||||||||
Aviation segment | $ | 129.7 | $ | 105.7 | $ | 507.8 | $ | 440.5 | ||||||||
Land segment | 91.1 | 95.3 | 364.9 | 365.8 | ||||||||||||
Marine segment | 41.3 | 29.0 | 145.8 | 126.0 | ||||||||||||
$ | 262.2 | $ | 229.9 | $ | 1,018.5 | $ | 932.2 | |||||||||
Income from operations: | ||||||||||||||||
Aviation segment | $ | 62.3 | $ | 41.2 | $ | 250.6 | $ | 192.9 | ||||||||
Land segment | 10.1 | (54.7 | ) | 47.8 | (7.9 | ) | ||||||||||
Marine segment | 7.0 | (77.7 | ) | 37.8 | (57.8 | ) | ||||||||||
79.4 | (91.3 | ) | 336.3 | 127.2 | ||||||||||||
Corporate overhead - unallocated | (16.2 | ) | (26.1 | ) | (76.6 | ) | (81.6 | ) | ||||||||
$ | 63.2 | $ | (117.2 | ) | $ | 259.7 | $ | 45.6 |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
Volume (Gallons): | 2018 | 2017 | 2018 | 2017 | ||||||||
Aviation Segment | 2,047.2 | 2,016.6 | 8,194.0 | 7,938.3 | ||||||||
Land Segment (1) | 1,356.4 | 1,473.5 | 5,591.8 | 5,940.4 | ||||||||
Marine Segment (2) | 1,607.4 | 1,619.3 | 6,261.3 | 7,007.9 | ||||||||
Consolidated Total | 5,011.0 | 5,109.4 | 20,047.1 | 20,886.6 |
(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 6.1 and 23.7 for the three and twelve months ended December 31, 2018. |
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World Fuel Services Corp provided additional information to their SEC Filing as exhibits
Ticker: INTEvents:
CIK: 789460
Form Type: 8-K Corporate News
Accession Number: 0001628280-19-001672
Submitted to the SEC: Thu Feb 21 2019 4:50:15 PM EST
Accepted by the SEC: Thu Feb 21 2019
Period: Thursday, February 21, 2019
Industry: Wholesale Petroleum And Petroleum Products No Bulk Stations