Ira M. Birns, Executive Vice President &
Chief Financial Officer
Vice President, Treasurer & Investor Relations
World Fuel Services Corporation Reports Third Quarter 2019 Results
---Delivers Solid Year-Over-Year Improvement Across All Segments---
MIAMI—October 30, 2019-- World Fuel Services Corporation (NYSE: INT)
Third-Quarter 2019 Highlights
Total gross profit of $305.7 million, up 15% year-over-year
GAAP net income of $48.2 million, or $0.73 per diluted share
Adjusted net income of $50.7 million, or $0.77 per diluted share
Adjusted EBITDA of $117.6 million, up 13% year-over-year
“We delivered very strong results in the third quarter, as we continue to drive organic growth while focusing on further improving operating efficiencies,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “Our marine segment delivered their strongest quarter in nearly five years contributing to our strong overall results, a reflection of solid execution on our strategy of continuous cost management and sharpening the portfolio to drive enhanced profitability and returns.”
Our aviation segment generated gross profit of $156.9 million in the third quarter, an increase of 12% year-over-year, principally driven by further growth in our government-related operations, as well as continued strength in our core commercial and business aviation activities. Our marine segment generated gross profit of $53.4 million, an increase of 24% year-over-year, due to improved profitability in our core resale operations, principally in Asia. Our land segment generated gross profit of $95.4 million, an increase of 15% year-over-year, primarily resulting from growth in our government-related operations, commercial and industrial activities, as well as our MultiService payment solutions business.
“Over the last twelve months, we generated more than $400 million of adjusted EBITDA, representing significant improvement over the past two years,” said Ira M. Birns, executive vice president and chief financial officer. “Earnings growth, combined with our continued focus on working capital management, has contributed to our highest level of return on invested capital since 2014.”
Additional Financial Information
Cash flow generated by operating activities was $33.0 million for the third quarter of 2019 compared to cash flow used from operations of $87.4 million in the third quarter of 2018. The prior year was negatively impacted by approximately $115.6 million resulting from a statement of cash flows accounting standard adopted in 2018.
Our operating expense ratio improved from 68.7% to 68.4% year-over-year, reflecting our continued focus on improving operating leverage and we remain on track to meet our 2019 goal of a 250 basis-point improvement over 2018.
The following information was filed by World Fuel Services Corp (INT) on Wednesday, October 30, 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.