CORRECTING and REPLACING World Fuel Services Corporation Reports Fourth Quarter and Full Year 2018 Results
MIAMI--(BUSINESS WIRE)--Feb 21, 2019--This press release replaces the press release published at 4:26pm EST, correcting a typographical error in the second sub-heading of the headline.
The corrected release reads:
WORLD FUEL SERVICES CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2018 RESULTS
Surpasses $1 Billion of Gross Profit
Significantly Improves Operating Leverage
World Fuel Services Corporation (NYSE: INT)
Fourth-Quarter 2018 Highlights
Full-Year 2018 Highlights
Fiscal Year 2018 Highlights
“2018 was a year of continuing transformation for World Fuel and our actions advanced our value creation strategy of continuous cost management and sharpening our portfolio to drive enhanced returns,” stated Michael J. Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “Our business performed well in 2018, led by record results in our aviation segment and a solid rebound in profitability in marine. We are optimistic about our efforts to reposition our land portfolio and drive operating efficiencies and profitable growth in our global land business in 2019.”
For the full year, our aviation segment generated gross profit of $507.8 million, an increase of 15% year-over-year, primarily driven by solid organic growth in our international fueling operations and increased government-related activity. Our marine segment generated gross profit of $145.8 million, an increase of 16% year-over-year, principally related to stronger performance in our core resale operations. Our land segment generated gross profit of $364.9 million, relatively flat year-over-year, with growth in commercial and industrial activity in the U.S., our Kinect global energy services platform and our MultiService payment solutions business, offset by the elimination of certain non-core activities.
“Our heightened focus and execution on cost management initiatives resulted in a 425 basis point improvement in operating leverage in 2018 compared to the prior year,” said Ira M. Birns, executive vice president and chief financial officer. “Record adjusted EBITDA contributed to a reduction in net debt-to-EBITDA to 1.4x, the lowest level since 2015, providing us with additional liquidity to fund organic growth and strategic investment opportunities.”
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including adjusted net income, adjusted diluted earnings per share, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), and net debt (collectively, the “Non-GAAP Measures”). The Non-GAAP measures exclude acquisition-related charges and severance and restructuring charges primarily because we do not believe they are reflective of the Company’s core operating results. We believe that the Non-GAAP 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 the Non-GAAP Measures 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 Services 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 restricted stock units 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 in this press release and on our website.
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 value creation strategy, our beliefs and expectations with respect to repositioning our land portfolio and driving operating efficiencies and profitable growth in our global land business in 2019, as well as our expectations about our liquidity, organic growth and strategic investment opportunities. 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 most recent Annual Report on Form 10-K filed with the SEC. Actual results may differ materially from any forward-looking statements due to risks and uncertainties, including, but not limited to: our ability to effectively leverage technology and operating systems and realize the anticipated benefits, our ability to successfully execute and achieve efficiencies and other benefits related to our transformation initiatives, our ability to achieve the expected level of benefit from our restructuring activities and cost reduction initiatives, unanticipated tax liabilities or adverse results of tax audits, assessments, or disputes, the loss of, or reduced sales, to a significant government customer such as the North Atlantic Treaty Organization, our ability to successfully implement our growth strategy, our ability to effectively integrate acquired businesses and recognize the anticipated benefits, risks related to the complexity of U.S. Tax Reform and our ability to accurately predict its impact on our returns and future earnings, our ability to capitalize on new market opportunities and changes in supply and other market dynamics in the regions where we operate, potential liabilities and the extent of any insurance coverage, the outcome of pending litigation and other proceedings, the impact of quarterly fluctuations in results, particularly as a result of seasonality, 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, supply disruptions, border closures and other logistical difficulties that can arise when sourcing and delivering fuel in areas that are actively engaged in war or other military conflicts, our failure to effectively hedge certain financial risks associated with the use of derivatives, non-performance by counterparties or customers on derivatives contracts, uninsured losses, the impact of natural disasters, adverse results in legal disputes, our ability to retain and attract senior management and other key employees and other risks detailed from time to time in our 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, except as required by law.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global energy management company involved in providing energy procurement advisory services, supply fulfillment and transaction and payment management solutions to commercial and industrial customers, principally 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.
For more information, call 305-428-8000 or visit www.wfscorp.com.
-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --
* The adoption of ASU 2016-15 resulted in operating cash flow decreases and investing cash flow increases of $12.3 million and $102.5 million for the three months ended December 31, 2018 and 2017, respectively, and $369.8 million and $338.8 million for the twelve months ended December 31, 2018 and 2017, respectively.
(1) The Company defines adjusted EBITDA as income from operations, excluding the impact of depreciation and amortization, and items that are considered to be non-operational and are not representative of our core business, including those associated with severance, restructuring and acquisition-related costs.
(1) Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (KwH) for our Kinect power business.
(2) Converted from metric tons to gallons at a rate of 264 gallons per metric ton. Marine segment metric tons were 6.1 and 23.7 for the three and twelve months ended December 31, 2018.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190221005973/en/
CONTACT: World Fuel Services Corporation
Ira M Birns, 305-428-8000
Executive Vice President & Chief Financial Officer
Glenn Klevitz, 305-428-8000
Vice President, Treasury & Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA FLORIDA
INDUSTRY KEYWORD: ENERGY OIL/GAS
SOURCE: World Fuel Services Corporation
Copyright Business Wire 2019.
PUB: 02/21/2019 05:14 PM/DISC: 02/21/2019 05:14 PM