Ira M. Birns, Executive Vice President &
Chief Financial Officer
Vice President, Treasurer & Investor Relations
World Fuel Services Corporation Reports Third Quarter 2020 Results
MIAMI—October 29, 2020 -- World Fuel Services Corporation (NYSE: INT)
Third-Quarter 2020 Highlights
•Total gross profit of $214.0 million, down 30% year-over-year
•GAAP net income of $82.0 million, or $1.29 per diluted share
•After-tax gain on sale of Multi Service of $63.9 million, or $1.00 per diluted share
•Adjusted net income of $20.7 million, or $0.33 per diluted share
•Adjusted EBITDA of $64.3 million
“Modest improvements in certain areas of our global business, as well as the continued focus on cost containment and portfolio refinement, enabled us to profitably execute in what continues to be a weak operating environment,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “We are continuing to focus on refining our portfolio, actively seeking opportunities to invest in activities such as our World Kinect energy management business to contribute to accelerating the transition to a low carbon world.”
For the third quarter, our aviation segment generated gross profit of $97.6 million, a decrease of 38% year-over-year, driven by the decline in volume as a consequence of the depressed demand for air travel due to the COVID-19 pandemic, together with a reduction in our government-related activity in Afghanistan as a result of the ongoing drawdown of troops. Our marine segment generated gross profit of $32.0 million, a decrease of 40% year-over-year, principally attributable to lower volume and profitability due to a decline in demand as a consequence of the pandemic and lower average fuel prices. Our land segment generated gross profit of $84.3 million, a decrease of 12% year-over-year, primarily resulting from a decline in our retail, commercial and industrial activities in North America and a reduction in our government-related activity in Afghanistan.
“Through continued focus on working capital management, we generated $246 million of cash flow from operations during the third quarter and have now generated nearly $500 million of cash flow from operations during the first nine months of the year,” said Ira M. Birns, executive vice president and chief financial officer. “Combined with the proceeds received from the sale of the Multi Service business, we significantly reduced our debt balance during the quarter, resulting in a record level of liquidity.”
Beginning in the first quarter of 2020, the aviation, marine and land transportation industries, along with global economic conditions generally, have been significantly impacted by the coronavirus pandemic. A large number of our customers in these industries have experienced substantial reductions in their operations, especially commercial airlines and cruise lines, which have been particularly impacted by ongoing travel restrictions. Customers in our marine and land segments have also been adversely affected by these restrictions and the reduction in operations of various businesses in affected regions.
The following information was filed by World Fuel Services Corp (INT) on Thursday, October 29, 2020 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.