Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Safe Harbor Statement
Caution Concerning Forward Looking Statements
Certain statements made today, including comments about World Fuel's expectations
regarding future plans, performance and acquisitions are forward-looking statements
that are subject to a range of uncertainties and risks that could cause World Fuel's
actual results to materially differ from the forward-looking information. A description
of the risk factors that could cause results to materially differ from these projections
can be found in World Fuel’s Form 10-K for the year ended December 31, 2015 and
other reports filed with the Securities and Exchange Commission. World Fuel assumes
no obligation to revise or publicly release the results of any revisions to these forwardlooking statements in light of new information or future events.
This presentation includes certain non‐GAAP financial measures, as defined in
Regulation G. A reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures is included in World Fuel’s press release
and can be found on its website.
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Business Overview
Michael Kasbar
Chairman and Chief Executive Officer
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
First Quarter Overview
•
First quarter adjusted net income of $54 million or $0.77 adjusted diluted earnings per
share
•
Generated $139 million of operating cash flow
o
•
Aviation segment sold 1.6 billion gallons
o
o
o
•
Volume growth of 12% compared to the first quarter of 2015
Core resale business posted solid gains in North America and EMEA
US and foreign military related-activity operations performed well
Marine segment volume remained flat compared to last year
o
o
o
•
Maintaining ample liquidity to fund organic growth and strategic investments
Continued period of low fuel prices and depressed shipping rates
Prevailing sentiment for low fuel prices continue to suppress demand for PRISM products
We continue to support our customers by remaining a reliable counterparty
Land segment volume increased 9%
o
o
Retail and natural gas businesses performed well
Historically warmer weather negatively impacted UK business
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Financial Overview
Ira Birns
Executive Vice President and
Chief Financial Officer
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Volume by Segment
7.7
7.7
1,626
1,213
1,450
Q1'15
1,118
Q1'16
Q1'15
Q1'16
Q1'15
Q1'16
Aviation
Marine
Land
(Gallons in millions)
(Metric tons in millions)
(Gallons in millions)
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Consolidated Gross Profit ($ in millions)
$217
$224
$188
Q1'14
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'15
Q1'16
Gross Profit by Segment ($ in millions)
$94
$91
$85
$79
$71
$69
$54
$47
$39
Q1'14
Q1'15
Q1'16
Aviation
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'14
Q1'15
Marine
Q1'16
Q1'14
Q1'15
Land
Q1'16
Consolidated Operating Expenses (excluding bad debt provision)
Q2’16E:
$161 – $166
$157
$139
Q1'15
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'16
Q2'16E
($ in millions)
Consolidated Income from Operations ($ in millions)
$77
$65
Q1'15
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'16
Non-Operating Expense ($ in millions)
Q2’16E:
$6 – $8
7.0
6.3
Q1'15
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'16
Q2'16E
Effective Tax Rate
Q2’16E:
16% – 19%
17.0%
15.7%
8.7%
Q1'15
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'16
Q2'16E
Net Income ($ in millions)
$65.0
$59.0
$63.1
$53.6
Q1'15
Q1'16
Adjusted Net Income
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'15
Q1'16
Non-GAAP Net Income
Diluted Earnings Per Share
$0.91
$0.91
$0.83
$0.77
Q1'15
Q1'16
Adjusted EPS
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1'15
Q1'16
Non-GAAP EPS
Balance Sheet Management
• Total accounts receivable was $1.7 billion at quarter end
o
Down more than $500 million year-over-year
• Net working capital was $850 million
o
o
Net working capital declined $40 million year-over-year
Return on working capital was 31% for the quarter
• Generated $139 million of operating cash flow during quarter
o
o
o
Positive operating cash flow for the past fifteen consecutive quarters
Net debt reduced to just over $100 million
Return on invested capital improving
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
In Closing
• We delivered solid results despite continued headwinds in certain markets
• We continue to consistently generate operating cash flow, driving an
improved return on invested capital
• Allowing us to continue to invest in organic growth initiatives and strategic
M&A
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Questions & Answers
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Earnings Reconciliation ($ in millions, except per share data)
Revenue, as reported
Deferred revenue purchase accounting adjustment
Revenue, as adjusted
$
Gross profit, as reported
Deferred revenue purchase accounting adjustment
Gross profit, as adjusted
$
Operating expenses, as reported
Expenses related to the acquisitions and other non-recurring charges
Termination of employment
Operating expenses, as adjusted
$
Operating income, as reported
Expenses related to the acquisitions and other non-recurring charges
Deferred revenue purchase accounting adjustment
Termination of employment
Operating income, as adjusted
$
Income before tax, as reported
Expenses related to the acquisitions and other non-recurring charges
Deferred revenue purchase accounting adjustment
Termination of employment
Income before tax, as adjusted
$
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
$
$
$
$
$
Q1 2015
7,340.7
2.1
7,342.7
$
$
215.4
2.1
217.5
$
143.9
(3.8)
140.1
$
71.5
2.1
3.8
77.4
$
64.5
2.1
3.8
70.4
$
$
$
$
$
Q1 2016
5,192.6
5,192.6
223.8
223.8
160.5
(1.5)
159.0
63.3
1.5
64.8
57.1
1.5
58.6
Earnings Reconciliation (continued) ($ in millions, except per share data)
Q1 2015
Provision for income taxes, as reported
Expenses related to the acquisitions and other non-recurring charges
Deferred revenue purchase accounting adjustment
Termination of employment
Provision for income taxes, as adjusted
$
Minority interest , as reported
Deferred revenue purchase accounting adjustment
Minority interest, as adjusted
$
Net income , as reported
Expenses related to the acquisitions and other non-recurring charges
Deferred revenue purchase accounting adjustment
Termination of employment
Net income, as adjusted
$
Diluted earnings per common share, as reported
Expenses related to the acquisitions and other non-recurring charges
Deferred revenue purchase accounting adjustment
Termination of employment
Diluted earnings per common share, as adjusted
Copyright © 2015 World Fuel Services Corporation.
Proprietary & Confidential. All Rights Reserved.
Q1 2016
9.9
0.5
1.5
11.9
$
(1.0)
0.5
(0.5)
$
$
$
55.6
1.1
2.3
59.0
$
52.4
1.2
53.6
$
$
$
$
$
0.78
0.02
0.03
0.83
$
$
$
$
$
0.75
0.02
0.77
$
$
$
$
4.8
0.3
5.1
(0.1)
(0.1)