UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): April 30, 2015
WORLD
FUEL SERVICES CORPORATION
(Exact
name of registrant as specified in its charter)
Florida
|
1-9533
|
59-2459427
|
(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.)
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9800 N.W. 41st Street, Suite 400
Miami, Florida
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33178
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(Address
of principal executive offices)
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(Zip
Code)
|
Registrant’s telephone number,
including area code: (305) 428-8000
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
Item 7.01. Regulation FD Disclosure
The following information is provided pursuant to Item 7.01 of Form 8-K,
“Regulation FD Disclosure” and Item 2.02 of Form 8-K, “Results of
Operations and Financial Condition.”
On April 30, 2015, World Fuel Services Corporation issued a press
release reporting its financial results for the first quarter ended
March 31, 2015. A copy of the press release is attached hereto as
Exhibit 99.1.
This information and the information contained in Exhibit 99.1 shall not
be deemed “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or incorporated by
reference in any filing under the Securities Act of 1933, as amended, or
the Exchange Act, except as may be expressly set forth by specific
reference in any such filing.
Item 9.01. Financial Statements and Exhibits
(d)
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Exhibits
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Exhibit No.
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Description
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99.1
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Press Release, dated April 30, 2015.
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SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date:
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April 30, 2015
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World Fuel Services Corporation
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/s/ Ira M. Birns
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Ira M. Birns
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Executive Vice President and Chief Financial
Officer
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EXHIBIT INDEX
Exhibit
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Description
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99.1
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Press Release, dated April 30, 2015.
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Exhibit 99.1
World
Fuel Services Corporation Reports Record First Quarter Earnings
Generated
$107 million of Operating Cash Flow in the First Quarter
MIAMI--(BUSINESS WIRE)--April 30, 2015--World Fuel Services Corporation
(NYSE: INT) today reported first quarter net income of $55.6 million or
$0.78 diluted earnings per share compared to $50.7 million or $0.71
diluted earnings per share in the first quarter of 2014. Excluding the
impact of the previously disclosed retirement of our former aviation
segment president and a deferred revenue purchase accounting adjustment,
adjusted first quarter net income was $59.0 million or $0.83 diluted
earnings per share. Non-GAAP net income and diluted earnings per share
for the first quarter, excluding share-based compensation, amortization
of acquired intangible assets, costs associated with the aforementioned
retirement and deferred revenue adjustments were $65.0 million and
$0.91, respectively, compared to $58.5 million and $0.83 in 2014.
“The strength of our business model and the diversity of our markets
served us well as we posted a solid result in the first quarter,” stated
Michael J. Kasbar, chairman and chief executive officer of World Fuel
Services Corporation. “We continue to develop our global energy,
logistics, transaction management and payment processing platform within
our existing markets and products and expand into adjacencies that will
provide us with sustainable growth.”
The company’s aviation segment generated gross profit of $82.9 million,
an increase of $8.3 million or 11% sequentially and $14 million or 20%
year-over-year. The company’s marine segment generated gross profit of
$53.9 million, a decrease of $5.6 million or 9% sequentially, but an
increase of $6.1 million or 13% year-over-year. The company’s land
segment posted gross profit of $78.6 million, a decrease of $6.7 million
or 8% sequentially, but an increase of $7.3 million or 10%
year-over-year.
“We generated $107 million of operating cash flow in the first quarter,
which marks the eleventh consecutive quarter of positive cash flow from
operations and totals more than $700 million over this period,” said Ira
M. Birns, executive vice president and chief financial officer. “We
continue to drive operational excellence across all of our business
segments, while delivering solid returns to our shareholders.”
Non-GAAP Financial Measures
The non-GAAP financial measures exclude costs associated with
share-based compensation, amortization of acquired intangible assets,
deferred revenue purchase accounting adjustments, expenses related to
the acquisition of Watson Petroleum and the termination of an employment
agreement primarily because we do not believe they are reflective of the
Company’s core operating results. We believe the exclusion of
share-based compensation from operating expenses is useful given the
variation in expense that can result from changes in the fair value of
our common stock, the effect of which is unrelated to the operational
conditions that give rise to variations in the components of our
operating costs. Also, we believe the exclusion of the amortization of
acquired intangible assets, the expenses related to the acquisition of
Watson Petroleum and the termination of an employment agreement are
useful for purposes of evaluating operating performance of our core
operating results and comparing them period over period. In accordance
with the fair value provisions applicable to the accounting for business
combinations, acquired deferred revenue is often recorded on the opening
balance sheet at an amount that is lower than the historical carrying
value. Although this acquisition accounting requirement has no impact on
our business or cash flows, it adversely impacts our reported GAAP
revenue in the reporting periods following an acquisition. We believe
that the exclusion of the deferred revenue purchase accounting
adjustment is useful to investors as an additional means to reflect
trends of our business and provides investors with financial information
that facilitates comparison of both historical and future results. We
believe that these non-GAAP financial measures, when considered in
conjunction with our financial information prepared in accordance with
GAAP, are useful to investors to further aid in evaluating the ongoing
financial performance of the Company and to provide greater transparency
as supplemental information to our GAAP results.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. In addition, our presentation of non-GAAP net income and
non-GAAP diluted earnings per common share may not be comparable to the
presentation of such metrics by other companies. Non-GAAP diluted
earnings per common share is computed by dividing non-GAAP net income
attributable to World Fuel and available to common shareholders by the
sum of the weighted average number of shares of common stock, stock
units, restricted stock entitled to dividends not subject to forfeiture
and vested RSUs outstanding during the period and the number of
additional shares of common stock that would have been outstanding if
our outstanding potentially dilutive securities had been issued.
Investors are encouraged to review the reconciliation of these non-GAAP
measures to their most directly comparable GAAP financial measures.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding our expectations about our expansion and
sustainable growth. These forward-looking statements are qualified in
their entirety by cautionary statements and risk factor disclosures
contained in the company’s Securities and Exchange Commission (“SEC”)
filings, including the company’s Annual Report on Form 10-K filed with
the SEC on February 12, 2015. Actual results may differ materially from
any forward-looking statements due to risks and uncertainties,
including, but not limited to: our ability to effectively integrate and
derive benefits from acquired businesses, our ability to capitalize on
new market opportunities, potential liabilities and the extent of any
insurance coverage, the outcome of pending litigation and other
proceedings, the impact of quarterly fluctuations in results, the
creditworthiness of our customers and counterparties and our ability to
collect accounts receivable, fluctuations in world oil prices or foreign
currency, changes in political, economic, regulatory, or environmental
conditions, adverse conditions in the markets or industries in which we
or our customers and suppliers operate, our failure to effectively hedge
certain financial risks associated with the use of derivatives,
non-performance by counterparties or customers on derivatives contracts,
loss of, or reduced sales, to a significant government customer,
uninsured losses, the impact of natural disasters, adverse results in
legal disputes, unanticipated tax liabilities, our ability to retain and
attract senior management and other key employees and other risks
detailed from time to time in the company’s SEC filings. New risks
emerge from time to time and it is not possible for management to
predict all such risk factors or to assess the impact of such risks on
our business. Accordingly, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, changes in expectations, future events, or otherwise.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global fuel
logistics, transaction management and payment processing company,
principally engaged in the distribution of fuel and related products and
services in the aviation, marine and land transportation industries.
World Fuel Services sells fuel and delivers services to its clients at
more than 8,000 locations in more than 200 countries and territories
worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, residential and government accounts. The
company also offers transaction management services which consist of
card payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(UNAUDITED - IN MILLIONS)
|
|
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As of
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March 31,
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December 31,
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2015
|
|
2014
|
|
|
|
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Assets:
|
|
|
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Current assets:
|
|
|
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Cash and cash equivalents
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$
|
391.0
|
|
$
|
302.3
|
Accounts receivable, net
|
|
2,202.3
|
|
|
2,307.9
|
Inventories
|
|
421.9
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|
|
437.6
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Prepaid expenses and other current assets
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580.4
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|
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627.1
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|
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|
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Total current assets
|
|
3,595.6
|
|
|
3,674.9
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|
|
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Property and equipment, net
|
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203.9
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|
|
202.7
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|
|
|
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Goodwill, identifiable intangible and other non-current assets
|
|
988.5
|
|
|
1,002.4
|
|
|
|
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Total assets
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$
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4,788.0
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|
$
|
4,880.0
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|
|
|
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Liabilities and equity:
|
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Liabilities:
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Current liabilities:
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|
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Short-term debt
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$
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21.4
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$
|
17.9
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Accounts payable
|
|
1,736.2
|
|
|
1,850.1
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Accrued expenses and other current liabilities
|
|
355.2
|
|
|
373.3
|
|
|
|
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Total current liabilities
|
|
2,112.8
|
|
|
2,241.3
|
|
|
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Long-term debt
|
|
679.4
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|
|
672.0
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Other long-term liabilities
|
|
113.6
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|
|
101.8
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Total liabilities
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|
2,905.8
|
|
|
3,015.1
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|
|
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Equity:
|
|
|
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World Fuel shareholders' equity
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1,871.5
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|
1,855.4
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Noncontrolling interest equity
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|
10.7
|
|
|
9.5
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Total equity
|
|
1,882.2
|
|
|
1,864.9
|
|
|
|
|
Total liabilities and equity
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$
|
4,788.0
|
|
$
|
4,880.0
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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME
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(UNAUDITED - IN MILLIONS, EXCEPT EARNINGS PER SHARE DATA)
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|
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For the Three Months ended
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|
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March 31,
|
|
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2015
|
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2014
|
|
|
|
|
|
|
|
|
|
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Revenue
|
|
$
|
7,340.7
|
|
|
$
|
10,550.9
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Cost of revenue
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|
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7,125.3
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|
|
|
10,362.9
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|
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|
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Gross profit
|
|
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215.4
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|
|
|
188.0
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|
|
|
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|
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Operating expenses:
|
|
|
|
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Compensation and employee benefits
|
|
|
88.6
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|
|
|
71.1
|
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Provision for bad debt
|
|
|
1.3
|
|
|
|
1.1
|
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General and administrative
|
|
|
54.0
|
|
|
|
51.5
|
|
|
|
|
|
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Total operating expenses
|
|
|
143.9
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|
|
|
123.7
|
|
|
|
|
|
|
Income from operations
|
|
|
71.5
|
|
|
|
64.3
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|
Non-operating expenses, net
|
|
|
(7.0
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)
|
|
|
(2.5
|
)
|
|
|
|
|
|
Income before income taxes
|
|
|
64.5
|
|
|
|
61.8
|
|
Provision for income taxes
|
|
|
9.9
|
|
|
|
11.3
|
|
|
|
|
|
|
Net income including noncontrolling interest
|
|
|
54.6
|
|
|
|
50.5
|
|
Net loss attributable to noncontrolling interest
|
|
|
(1.0
|
)
|
|
|
(0.2
|
)
|
|
|
|
|
|
Net income attributable to World Fuel
|
|
$
|
55.6
|
|
|
$
|
50.7
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
0.79
|
|
|
$
|
0.72
|
|
|
|
|
|
|
Basic weighted average common shares
|
|
|
70.7
|
|
|
|
70.7
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
0.78
|
|
|
$
|
0.71
|
|
|
|
|
|
|
Diluted weighted average common shares
|
|
|
71.4
|
|
|
|
71.4
|
|
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED - IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income including noncontrolling interest
|
|
$
|
54.6
|
|
|
$
|
50.5
|
|
Adjustments to reconcile net income including
|
|
|
|
|
noncontrolling interest to net cash provided by
|
|
|
|
|
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
13.4
|
|
|
|
12.4
|
|
Provision for bad debt
|
|
|
1.3
|
|
|
|
1.1
|
|
Share-based payment award compensation costs
|
|
|
4.2
|
|
|
|
4.0
|
|
Other
|
|
|
(8.5
|
)
|
|
|
4.5
|
|
Change in cash collateral with financial counterparties
|
|
|
43.6
|
|
|
|
(10.1
|
)
|
Changes in assets and liabilities, net of acquisitions
|
|
|
(1.7
|
)
|
|
|
29.2
|
|
|
Total adjustments
|
|
|
52.3
|
|
|
|
41.1
|
|
Net cash provided by operating activities
|
|
|
106.9
|
|
|
|
91.6
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Acquisition of businesses, net of cash acquired and other investments
|
|
|
(3.7
|
)
|
|
|
(154.0
|
)
|
Capital expenditures
|
|
|
(13.1
|
)
|
|
|
(8.9
|
)
|
Escrow payment related to an assumed obligation of an acquired
business
|
|
|
-
|
|
|
|
(21.7
|
)
|
Other
|
|
|
5.3
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(11.5
|
)
|
|
|
(184.6
|
)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings of debt, net
|
|
|
6.7
|
|
|
|
252.2
|
|
Dividends paid on common stock
|
|
|
(2.6
|
)
|
|
|
(2.6
|
)
|
Other
|
|
|
(6.5
|
)
|
|
|
(2.3
|
)
|
Net cash (used in) provided by financing activities
|
|
|
(2.4
|
)
|
|
|
247.3
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(4.3
|
)
|
|
|
0.1
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
88.7
|
|
|
|
154.4
|
|
|
|
|
|
|
|
Cash and cash equivalents, as of beginning of period
|
|
|
302.3
|
|
|
|
292.1
|
|
|
|
|
|
|
|
Cash and cash equivalents, as of end of period
|
|
$
|
391.0
|
|
|
$
|
446.5
|
|
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(UNAUDITED - IN MILLIONS, EXCEPT EARNINGS PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Non-GAAP financial measures and reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to World Fuel
|
|
$
|
55.6
|
|
|
$
|
50.7
|
|
Share-based compensation expense, net of income taxes (1)
|
|
|
2.3
|
|
|
|
2.7
|
|
Intangible asset amortization expense, net of income taxes (2)
|
|
|
3.7
|
|
|
|
4.0
|
|
Deferred revenue purchase accounting adjustment, net of income taxes
(3)
|
|
1.1
|
|
|
|
-
|
|
Expenses related to the acquisition of Watson Petroleum, net of
income taxes
|
|
-
|
|
|
|
1.1
|
|
Termination of employment agreement, net of income taxes (4)
|
|
|
2.3
|
|
|
|
-
|
Non-GAAP net income attributable to World Fuel
|
|
$
|
65.0
|
|
|
$
|
58.5
|
|
|
|
|
|
|
|
GAAP diluted earnings per common share
|
|
$
|
0.78
|
|
|
$
|
0.71
|
|
Share-based compensation expense, net of income taxes (1)
|
|
|
0.03
|
|
|
|
0.04
|
|
Intangible asset amortization expense, net of income taxes (2)
|
|
|
0.05
|
|
|
|
0.06
|
|
Deferred revenue purchase accounting adjustment, net of income taxes
(3)
|
|
0.02
|
|
|
|
-
|
|
Expenses related to the acquisition of Watson Petroleum, net of
income taxes
|
|
-
|
|
|
|
0.02
|
|
Termination of employment agreement, net of income taxes (4)
|
|
|
0.03
|
|
|
|
-
|
Non-GAAP diluted earnings per common share
|
|
$
|
0.91
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The pre-tax amount of share-based compensation expense was $3.4 and
$4.0 million for the three months ended March 31, 2015 and 2014,
respectively.
|
(2)
|
|
The pre-tax amount of intangible asset amortization expense was $5.4
and $6.0 million for the three months ended March 31, 2015 and 2014,
respectively.
|
(3)
|
|
The pre-tax amount of deferred revenue purchase accounting
adjustment was $1.5 million for the three months ended March 31,
2015.
|
(4)
|
|
The pre-tax amount of the termination of employment agreement was
$3.8 million for the three months ended March 31, 2015.
|
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
|
BUSINESS SEGMENTS INFORMATION
|
(UNAUDITED - IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2015
|
|
2014
|
Revenue:
|
|
|
|
|
|
|
|
Aviation segment
|
|
$
|
2,897.0
|
|
$
|
4,249.8
|
|
Marine segment
|
|
|
2,320.7
|
|
|
3,480.2
|
|
Land segment
|
|
|
2,123.0
|
|
|
2,820.9
|
|
|
|
|
|
$
|
7,340.7
|
|
$
|
10,550.9
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
Aviation segment
|
|
$
|
82.9
|
|
$
|
68.9
|
|
Marine segment
|
|
|
53.9
|
|
|
47.8
|
|
Land segment
|
|
|
78.6
|
|
|
71.3
|
|
|
|
|
|
$
|
215.4
|
|
$
|
188.0
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
Aviation segment
|
|
$
|
27.8
|
|
$
|
30.1
|
|
Marine segment
|
|
|
26.1
|
|
|
21.0
|
|
Land segment
|
|
|
31.8
|
|
|
26.5
|
|
|
|
|
|
$
|
85.7
|
|
$
|
77.6
|
|
Corporate overhead - unallocated
|
|
|
14.2
|
|
|
13.3
|
|
|
|
|
|
$
|
71.5
|
|
$
|
64.3
|
CONTACT:
World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive
Vice President & Chief Financial Officer
or
Glenn Klevitz,
305-428-8000
Vice President, Assistant Treasurer
World Fuel Services (NYSE:INT)
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From Aug 2024 to Sep 2024
World Fuel Services (NYSE:INT)
Historical Stock Chart
From Sep 2023 to Sep 2024