World Fuel Services Corporation Reports Fourth Quarter and Full Year Earnings

  World Fuel Services Corporation Reports Fourth Quarter and Full Year
  Earnings

 Generated Operating Cash Flow of $98 Million in the Fourth Quarter and $146
                          Million for the Full Year

Business Wire

MIAMI -- February 21, 2013

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
full year net income of $189.3 million or $2.64 diluted earnings per share.
Excluding one-time expenses of $4.5 million related to the acquisition of
select assets of Multi Service Corporation (“Multi Service”), net income was
$192.3 million or $2.68 diluted earnings per share. This compares to $194.0
million or $2.71 diluted earnings per share for the same period in 2011.
Non-GAAP net income and diluted earnings per share for the full year,
excluding share-based compensation, amortization of acquired intangible assets
and expenses related to the Multi Service acquisition, were $215.9 million and
$3.01, respectively, compared to $221.1 million and $3.09 in 2011.

For the fourth quarter, net income was $42.8 million or $0.60 diluted earnings
per share. Excluding expenses related to the Multi Service acquisition, net
income was $45.8 million or $0.64 diluted earnings per share. This compares to
$50.1 million or $0.70 diluted earnings per share in the fourth quarter of
2011. Non-GAAP net income and diluted earnings per share for the fourth
quarter, excluding share-based compensation, amortization of acquired
intangible assets and expenses related to the Multi Service acquisition, were
$52.3 million and $0.73, respectively, compared to $57.4 million and $0.81 in
the fourth quarter of 2011.

“In 2012, despite a stagnant market, we posted record revenue, gross profit,
and volume while completing two strategic acquisitions,” stated Michael J.
Kasbar, president and chief executive officer of World Fuel Services
Corporation. “Multi Service enhances our comprehensive solutions offering and
opens up new opportunities for growth and value creation.”

For the full year, the company’s marine segment generated gross profit of
$208.0 million, an increase of approximately $12.9 million or 7 percent
year-over-year. The company’s aviation segment generated gross profit of
$294.6 million, a decrease of $11.5 million or 4 percent year-over-year. The
company’s land segment posted gross profit of $170.8 million, an increase of
$37.0 million or 28 percent year-over-year.

“The two accretive and strategic acquisitions we completed this past year will
further expand the value proposition we offer to our customers and suppliers
and provide new avenues for growth,” said Ira M. Birns, executive vice
president and chief financial officer. “Our operating cash flow contributed to
our very strong and liquid balance sheet enabling us to further fuel organic
growth as well as make additional strategic acquisitions.”

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, amortization of acquired
intangible assets and one-time expenses related to the acquisition of select
assets of Multi Service, 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 within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements regarding our
expectations of opportunities for growth and value creation, as well as our
expectation about our value proposition. 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
filings, including the company’s Annual Report on Form 10-K. 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, 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
Securities and Exchange Commission 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 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
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, 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
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)

               For the Three Months ended     For the Year ended
                   December 31,                    December 31,
                    2012         2011          2012          2011       
                                                                    
                                                                    
Revenue            $ 9,935,813     $ 9,323,947     $ 38,945,338     $ 34,622,854
Cost of revenue     9,772,476     9,161,661     38,271,891     33,987,851 
                                                                    
Gross profit        163,337       162,286       673,447        635,003    
                                                                    
Operating
expenses:
  Compensation
  and employee       60,809          56,114          237,362          215,275
  benefits
  Provision for      377             1,424           4,790            8,173
  bad debt
  General and       47,790        40,329        174,272        154,583    
  administrative
                                                                    
Total operating     108,976       97,867        416,424        378,031    
expenses
                                                                    
Income from          54,361          64,419          257,023          256,972
operations
Non-operating       (4,341    )    (4,501    )    (17,428    )    (18,769    )
expenses, net
                                                                    
Income before        50,020          59,918          239,595          238,203
income taxes
Provision for       4,995         6,888         38,244         39,001     
income taxes
                                                                    
Net income
including            45,025          53,030          201,351          199,202
noncontrolling
interest
Net income
attributable to     2,189         2,968         12,006         5,173      
noncontrolling
interest
                                                                    
Net income
attributable to    $ 42,836       $ 50,062       $ 189,345       $ 194,029    
World Fuel
                                                                    
Basic earnings     $ 0.60         $ 0.70         $ 2.66          $ 2.74       
per common share
                                                                    
Basic weighted
average common      71,232        71,036        71,154         70,687     
shares
                                                                    
Diluted earnings   $ 0.60         $ 0.70         $ 2.64          $ 2.71       
per common share
                                                                    
Diluted weighted
average common      71,906        71,772        71,817         71,510     
shares


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

                                               As of
                                                   December 31,  December 31,
                                                   2012           2011
                                                                  
Assets:
Current assets:
   Cash and cash equivalents                       $  172,740     $  205,415
   Accounts receivable, net                           2,193,866      2,160,561
   Inventories                                        572,313        472,584
   Prepaid expenses and other current assets         342,458       283,667
                                                                  
                 Total current assets                 3,281,377      3,122,227
                                                                  
Property and equipment, net                           112,525        90,710
                                                                  
Goodwill, identifiable intangible and                713,849       484,309
non-current other assets
                                                                  
                 Total assets                      $  4,107,751   $  3,697,246
                                                                  
Liabilities and equity:
Liabilities:
Current liabilities:
   Short-term debt                                 $  26,065      $  17,800
   Accounts payable                                   1,814,794      1,739,678
   Accrued expenses and other current                308,439       268,664
   liabilities
                                                                  
                 Total current liabilities            2,149,298      2,026,142
                                                                  
Long-term debt                                        354,253        269,348
Other long-term liabilities                          62,576        55,038
                 Total liabilities                   2,566,127     2,350,528
                                                                  
Equity:
   World Fuel shareholders' equity                    1,517,174      1,332,961
   Noncontrolling interest equity                    24,450        13,757
                 Total equity                        1,541,624     1,346,718
                                                                  
                 Total liabilities and equity      $  4,107,751   $  3,697,246


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

                   For the Three Months ended  For the Year ended
                         December 31,                 December 31,
                          2012        2011        2012        2011     
                                                                     
Cash flows from
operating activities:
  Net income including
  noncontrolling         $ 45,025      $ 53,030     $ 201,351     $ 199,202  
  interest
  Adjustments to
  reconcile net income
  including
    noncontrolling
    interest to net
    cash provided by
    (used in)
    operating
    activities:
        Depreciation
        and                9,914          11,419        36,714         40,530
        amortization
        Provision for      377            1,424         4,790          8,173
        bad debt
        Share-based
        payment award      3,738          2,842         14,079         11,041
        compensation
        costs
        Other              292            (501    )     (7,193   )     (3,276   )
        Change in cash
        collateral
        deposits held      (18,000  )     5,252         (11,059  )     4,957
        by financial
        counterparties
        Changes in
        assets and
        liabilities,      56,174       861         (92,891  )    (403,163 )
        net of
        acquisitions
           Total          52,495       21,297      (55,560  )    (341,738 )
           adjustments
    Net cash provided
    by (used in)          97,520       74,327      145,791      (142,536 )
    operating
    activities
                                                                     
Cash flows from
investing activities:
  Acquisition of
  businesses, net of       (146,445 )     (10,387 )     (217,782 )     (122,702 )
  cash acquired
  Capital expenditures     (9,717   )     (3,685  )     (28,454  )     (19,492  )
  Other                   -            268         (386     )    (2,438   )
    Net cash used in
    investing             (156,162 )    (13,804 )    (246,622 )    (144,632 )
    activities
                                                                     
Cash flows from
financing activities:
  Borrowings
  (repayments) of          93,096         (4,794  )     80,236         234,641
  debt, net
  Dividends paid on        (2,666   )     (2,654  )     (10,685  )     (10,603  )
  common stock
  Other                   1,919        (362    )    (2,693   )    (1,472   )
    Net cash provided
    by (used in)          92,349       (7,810  )    66,858       222,566  
    financing
    activities
                                                                     
Effect of exchange
rate changes on cash
and
  cash equivalents        (368     )    848         1,298        (2,876   )
                                                                     
Net increase
(decrease) in cash and     33,339         53,561        (32,675  )     (67,478  )
cash equivalents
                                                                     
Cash and cash
equivalents, at           139,401      151,854     205,415      272,893  
beginning of period
                                                                     
Cash and cash
equivalents, at end of   $ 172,740     $ 205,415    $ 172,740     $ 205,415  
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       For the Year ended
                        ended
                        December 31,                December 31,
                          2012        2011         2012         2011
                                                                   
Non-GAAP financial
measures and
reconciliation:
                                                                   
GAAP net income
attributable to         $  42,836     $  50,062     $  189,345     $  194,029
World Fuel
Share-based
compensation               3,054         1,932         9,637          7,558
expense, net of
taxes ^(1)
Intangible asset
amortization               3,500         5,443         14,037         19,546
expense, net of
taxes ^(2)
Expenses related to
the Multi Service
acquisition,
net of taxes ^(3)         2,924        -            2,924         -
Non-GAAP net income
attributable to         $  52,314     $  57,437     $  215,943     $  221,133
World Fuel
                                                                   
GAAP diluted
earnings per common     $  0.60       $  0.70       $  2.64        $  2.71
share
Share-based
compensation               0.04          0.03          0.13           0.11
expense, net of
taxes
Intangible asset
amortization               0.05          0.08          0.20           0.27
expense, net of
taxes
Expenses related to
the Multi Service
acquisition,
net of taxes              0.04         -            0.04          -
Non-GAAP diluted
earnings per common     $  0.73       $  0.81       $  3.01        $  3.09
share


          The pre-tax amount of share-based compensation expense was $4,529
^(1   ^)  and $2,840 for the three months ended December 31, 2012 and 2011,
          respectively, and $14,079 and $11,038 for the year ended December
          31, 2012 and 2011, respectively.
                                                                   
          The pre-tax amount of intangible asset amortization expense was
^(2   ^)  $4,950 and $6,895 for the three months ended December 31, 2012 and
          2011, respectively, and $18,127 and $25,011 for the year ended
          December 31, 2012 and 2011, respectively.
                                                                   
          The pre-tax amount of expenses related to the Multi Service
^(3   ^)  acquisition was $4,498 for the three and twelve months ended
          December 31, 2012.

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

                  For the Three Months ended  For the Year ended
                      December 31,                 December 31,
                      2012          2011          2012          2011
Revenue:
  Aviation segment    $  3,909,286   $ 3,314,095   $ 14,692,042   $ 12,866,019
  Marine segment         3,448,996     3,987,508     14,750,425     14,565,086
  Land segment          2,577,531    2,022,344    9,502,871     7,191,749
                      $  9,935,813   $ 9,323,947   $ 38,945,338   $ 34,622,854
                                                                  
Gross profit:
  Aviation segment    $  76,319      $ 69,991      $ 294,601      $ 306,112
  Marine segment         47,243        54,151        208,028        195,109
  Land segment          39,775       38,144       170,818       133,782
                      $  163,337     $ 162,286     $ 673,447      $ 635,003
                                                                  
Income from
operations:
  Aviation segment    $  35,552      $ 29,389      $ 128,153      $ 146,411
  Marine segment         20,557        27,965        103,229        95,982
  Land segment          12,554       18,707       75,291        62,049
                         68,663        76,061        306,673        304,442
  Corporate
  overhead -            14,302       11,642       49,650        47,470
  unallocated
                      $  54,361      $ 64,419      $ 257,023      $ 256,972


Contact:

World Fuel Services Corporation
Ira M. Birns
Executive Vice President & Chief Financial Officer
or
Jason Bewley
Vice President Corporate Finance
305-428-8000