World Fuel Services Corporation Reports Third Quarter Results

  World Fuel Services Corporation Reports Third Quarter Results

             -- Generates Operating Cash Flow of $105 Million --

Business Wire

MIAMI -- November 01, 2012

World Fuel Services Corporation (NYSE:INT), a leading global fuel logistics
company, principally engaged in the marketing, sale and distribution of
aviation, marine and land fuel products and related services, today reported
third quarter net income of $51.5 million or $0.72 diluted earnings per share
compared to $52.7 million or $0.74 diluted earnings per share in the third
quarter of 2011. Non-GAAP net income and diluted earnings per share for the
third quarter, which exclude share-based compensation and amortization of
acquired intangible assets, were $57.9 million and $0.81, respectively,
compared to $59.3 million or $0.83 in 2011.

“Our market expertise and value-added service offerings continue to
differentiate World Fuel as a solid counterparty to our customers and
suppliers worldwide,” stated Michael J. Kasbar, president and chief executive
officer of World Fuel Services Corporation. “We were pleased to complete the
CarterEnergy acquisition and look to continue to grow our business across all
of our segments organically and through further strategic investments.”

The company’s marine segment generated gross profit of $54 million, an
increase of approximately $2.2 million or 4% sequentially, and $3.9 million or
8% year-over-year. Our aviation segment generated gross profit of $84.2
million in the third quarter of 2012, an increase of $15 million or 22%
sequentially, and flat year-over-year. The company’s land segment posted gross
profit of $42.6 million, a decrease of $8.6 million or 17% sequentially, but
an increase of $5.8 million or 16% year-over-year.

“We continue to execute on our long-term growth strategy by capitalizing on
organic growth opportunities and strategic investments such as CarterEnergy,"
said Ira M. Birns, executive vice president and chief financial officer. “Our
strong balance sheet, solid liquidity profile and strong risk management
discipline should continue to serve us well as we navigate the volatile global
marketplace.”

Non-GAAP Financial Measures

This press release includes selected financial information that has not been
prepared in accordance with accounting principles generally accepted in the
United States (“GAAP”). This information includes non-GAAP net income and
non-GAAP diluted earnings per share. The non-GAAP financial measures exclude
costs associated with share-based compensation and amortization of acquired
intangible assets, primarily because we do not believe they are reflective of
the company’s core operating results. We believe that these non-GAAP financial
measures, when considered in conjunction with our financial information
prepared in accordance with GAAP, are useful for investors to evaluate our
core operating results and trends.

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 share may not be comparable to the presentation of such metrics
by other companies. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measure. A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release.

Information Relating to Forward-Looking Statements

With the exception of historical information in this news release, this
document includes forward-looking statements that involve risks and
uncertainties, including, but not limited to, quarterly fluctuations in
results, the creditworthiness of 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 operate, our failure to effectively hedge certain financial risks
associated with the use of derivatives, non-performance by counterparties or
customers on derivatives contracts, the integration of acquired businesses,
uninsured losses, our ability to retain and attract senior management and
other key employees and other risks detailed from time to time in the
company’s Securities and Exchange Commission filings. Actual results may
differ materially from any forward-looking statements set forth herein.

About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services is a leading global fuel
logistics company, principally engaged in the marketing, sale and distribution
of aviation, marine and land fuel products and related services on a worldwide
basis. World Fuel Services sells fuel and delivers services to its clients at
6,000 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 (FBO’s), 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 and government accounts. For
more information, call 305-428-8000 or visit www.wfscorp.com.

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)

                  For the Three Months ended   For the Nine Months ended
                   September 30,                 September 30,
                    2012         2011          2012          2011       
                                                                
                                                                
Revenue            $ 9,911,673   $ 9,510,792     $ 29,009,525   $ 25,298,907
Cost of revenue     9,730,921    9,339,945     28,499,415    24,826,190 
                                                                
Gross profit        180,752      170,847       510,110       472,717    
                                                                
Operating
expenses:
Compensation and
employee             65,843        57,215          176,553        159,161
benefits
Provision for        3,631         2,422           4,413          6,749
bad debt
General and         40,230       40,285        126,482       114,254    
administrative
                                                                
Total operating     109,704      99,922        307,448       280,164    
expenses
                                                                
Income from          71,048        70,925          202,662        192,553
operations
Non-operating       (3,467    )  (6,434    )    (13,087    )  (14,268    )
expenses, net
                                                                
Income before        67,581        64,491          189,575        178,285
income taxes
Provision for       14,683       10,649        33,249       32,113     
income taxes
                                                                
Net income
including            52,898        53,842          156,326        146,172
noncontrolling
interest
Net income
attributable to     1,404        1,187         9,817         2,205      
noncontrolling
interest
                                                                
Net income
attributable to    $ 51,494      $ 52,655       $ 146,509      $ 143,967    
World Fuel
                                                                
Basic earnings     $ 0.72        $ 0.74         $ 2.06         $ 2.04       
per common share
                                                                
Basic weighted
average common      71,216       70,939        71,128        70,593     
shares
                                                                
Diluted earnings   $ 0.72       $ 0.74         $ 2.04         $ 2.02       
per common share
                                                                
Diluted weighted
average common      71,816       71,587        71,791        71,415     
shares


WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED - IN THOUSANDS)

                                                As of
                                                  September 30,  December 31,
                                                  2012            2011
                                                                  
Assets:
Current assets:
Cash and cash equivalents                         $  139,401      $  205,415
Accounts receivable, net                             2,380,451       2,160,561
Inventories                                          591,870         472,584
Prepaid expenses and other current assets           415,840        283,667
                                                                  
Total current assets                                 3,527,562       3,122,227
                                                                  
Property and equipment, net                          101,742         90,710
                                                                  
Goodwill, identifiable intangible and               549,161        484,309
non-current other assets
                                                                  
Total assets                                      $  4,178,465    $  3,697,246
                                                                  
Liabilities and equity:
Liabilities:
Current liabilities:
Short-term debt                                   $  26,516       $  17,800
Accounts payable                                     2,037,836       1,739,678
Accrued expenses and other current                  299,424        268,664
liabilities
                                                                  
Total current liabilities                            2,363,776       2,026,142
                                                                  
Long-term debt                                       260,649         269,348
Other long-term liabilities                         59,750         55,038
Total liabilities                                   2,684,175      2,350,528
                                                                  
Equity:
World Fuel shareholders' equity                      1,472,038       1,332,961
Noncontrolling interest equity                      22,252         13,757
Total equity                                        1,494,290      1,346,718
                                                                  
Total liabilities and equity                      $  4,178,465    $  3,697,246


WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED - IN THOUSANDS)

                    For the Three Months ended  For the Nine Months ended
                      September 30,                September 30,
                       2012       2011         2012        2011     
                                                                  
Cash flows from
operating
activities:
Net income
including              52,898     $ 53,842       156,326     $ 146,172  
noncontrolling
interest
Adjustments to
reconcile net
income including
noncontrolling
interest to net
cash provided by
(used in)
operating
activities:
Depreciation and        9,132         10,371         26,800         29,111
amortization
Provision for bad       3,631         2,422          4,413          6,749
debt
Share-based payment
award compensation      4,384         2,541          10,341         8,199
costs
Other                   (6,462  )     (6,655   )     (7,485   )     (2,775   )
Change in cash
collateral deposits     134,999       355            6,941          (295     )
held by financial
counterparties
Changes in other
assets and             (93,388 )    (142,040 )    (149,065 )    (404,024 )
liabilities, net of
acquisitions
Total adjustments      52,296      (133,006 )    (108,055 )    (363,035 )
Net cash provided
by (used in)           105,194     (79,164  )    48,271       (216,863 )
operating
activities
                                                                  
Cash flows from
investing
activities:
Acquisitions and
other investments,      (42,299 )     (6,302   )     (71,337  )     (112,315 )
net of cash
acquired
Capital                 (9,170  )     (8,413   )     (18,737  )     (15,807  )
expenditures
Other                  (386    )    (2,706   )    (386     )    (2,706   )
Net cash used in
investing              (51,855 )    (17,421  )    (90,460  )    (130,828 )
activities
                                                                  
Cash flows from
financing
activities:
(Repayments)
borrowings of debt,     (50,453 )     107,558        (12,860  )     239,435
net
Dividends paid on       (2,669  )     (2,655   )     (8,019   )     (7,949   )
common stock
Other                  1,335       (845     )    (4,612   )    (1,110   )
Net cash (used in)
provided by            (51,787 )    104,058      (25,491  )    230,376  
financing
activities
                                                                  
Effect of exchange
rate changes on
cash and
cash equivalents       1,173       (5,354   )    1,666        (3,724   )
                                                                  
Net increase
(decrease) in cash      2,725         2,119          (66,014  )     (121,039 )
and cash
equivalents
                                                                  
Cash and cash
equivalents, as of     136,676     149,735      205,415      272,893  
beginning of period
                                                                  
Cash and cash
equivalents, as of    $ 139,401    $ 151,854     $ 139,401     $ 151,854  
end of period


WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)

                       For the Three Months ended  For the Nine Months ended
                        September 30,                September 30,
                        2012           2011         2012          2011
                                                                    
Non-GAAP financial
measures and
reconciliation:
                                                                    
GAAP net income
attributable to World   $   51,494      $  52,655    $  146,509     $  143,967
Fuel
Share-based
compensation expense,       2,475          1,738        6,583          5,626
net of taxes
Intangible asset
amortization expense,      3,953         4,870       10,537        14,103
net of taxes
Non-GAAP net income
attributable to World   $   57,922      $  59,263    $  163,629     $  163,696
Fuel
                                                                    
GAAP diluted earnings   $   0.72        $  0.74      $  2.04        $  2.02
per common share
Share-based
compensation expense,       0.03           0.02         0.09           0.08
net of taxes
Intangible asset
amortization expense,      0.06          0.07        0.15          0.20
net of taxes
Non-GAAP diluted
earnings per common     $   0.81        $  0.83      $  2.28        $  2.30
share


WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED - IN THOUSANDS)

                     For the Three Months       For the Nine Months ended
                       ended
                       September 30,               September 30,
                        2012        2011         2012         2011
Revenue:
         Aviation      $ 3,823,338   $ 3,540,503   $ 10,782,756   $ 9,551,924
         segment
         Marine          3,630,094     4,045,176     11,301,429     10,577,578
         segment
         Land           2,458,241    1,925,113    6,925,340     5,169,405
         segment
                       $ 9,911,673   $ 9,510,792   $ 29,009,525   $ 25,298,907
                                                                  
Gross profit:
         Aviation      $ 84,197      $ 83,966      $ 218,282      $ 236,121
         segment
         Marine          53,960        50,069        160,785        140,958
         segment
         Land           42,595       36,812       131,043       95,638
         segment
                       $ 180,752     $ 170,847     $ 510,110      $ 472,717
                                                                  
Income from
operations:
         Aviation      $ 39,808      $ 41,228      $ 92,601       $ 117,022
         segment
         Marine          27,296        24,899        82,672         68,017
         segment
         Land           18,185       18,653       62,737        43,342
         segment
                         85,289        84,780        238,010        228,381
         Corporate
         overhead -     14,241       13,855       35,348        35,828
         unallocated
                       $ 71,048      $ 70,925      $ 202,662      $ 192,553

Contact:

World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive Vice President & Chief Financial Officer
 
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