Ira M. Birns, Executive Vice President &
Chief Financial Officer
Vice President, Treasurer & Investor Relations
World Fuel Services Corporation Reports Second Quarter 2019 Results
MIAMI—July 25, 2019-- World Fuel Services Corporation (NYSE: INT)
Second-Quarter 2019 Highlights
Total gross profit of $268.6 million, up 9% year-over-year
GAAP net income of $37.0 million, or $0.55 per diluted share
Adjusted net income of $38.8 million, or $0.58 per diluted share
Adjusted EBITDA of $98.3 million, up 17% year-over-year
“We delivered strong results in the second quarter, benefiting from our actions to drive improvements in operating efficiencies and profitability,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “Our priority is to leverage our diversified business model and industry expertise to provide our customers with innovative solutions that deliver value today and in the future.”
Our aviation segment generated gross profit of $140.5 million in the second quarter, an increase of 10% year-over-year, primarily driven by continued strength in our core commercial and government-related activities. Our marine segment generated gross profit of $36.4 million, an increase of 20% year-over-year, principally related to improved performance in our core resale operations. Our land segment generated gross profit of $91.7 million, an increase of 3.5%, principally related to the continued expansion of our Kinect global energy services platform and our MultiService payment solutions business.
“Our strengthening EBITDA performance combined with the amendment of our bank facility has further improved our liquidity profile, providing us with greater financial flexibility to continue executing on organic growth and strategic investment opportunities,” said Ira M. Birns, executive vice president and chief financial officer. “During the quarter, we repurchased $65 million of common stock, which combined with our recently announced dividend increase, demonstrates our commitment to returning capital to shareholders.”
Additional Financial Information
Cash flow generated by operating activities was $125.0 million for the second quarter of 2019 compared to cash flow generated of $0.3 million in the second quarter of 2018, which was negatively impacted by approximately $121.8 million resulting from a statement of cash flows accounting standard adopted in 2018.
Our operating expense ratio improved from 73.8% to 71.1% year-over year, reflecting our focus on continuous cost management and we remain on track to meet our goal of a 250 basis point improvement compared to last year.
The following information was filed by World Fuel Services Corp (INT) on Thursday, July 25, 2019 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.