World Fuel Services Corporation Reports First Quarter 2022 Results
World Fuel Services Corporation (NYSE: INT) reported a strong first quarter for 2022, achieving a total gross profit of $230.9 million, a 21% increase year-over-year. GAAP net income reached $26.3 million, translating to $0.41 per diluted share. The aviation segment faced challenges with a 16% decrease in gross profit, totaling $64.2 million, primarily due to inventory losses and reduced government activity in Afghanistan. Conversely, the marine segment saw an impressive 85% increase to $47.0 million, while the land segment's gross profit rose 34% to $119.8 million following its acquisition of Flyers Energy.
- Total gross profit of $230.9 million, up 21% year-over-year.
- Adjusted EBITDA of $74.9 million.
- Marine segment gross profit increased by 85% to $47.0 million.
- Land segment gross profit rose by 34% to $119.8 million, aided by Flyers Energy acquisition.
- Aviation segment experienced a 16% decrease in gross profit, primarily due to inventory losses and reduced government-related activity.
First-Quarter 2022 Highlights
-
Total gross profit of
, up$230.9 million 21% year-over-year -
GAAP net income of
, or$26.3 million per diluted share$0.41 -
Adjusted net income of
, or$26.8 million per diluted share$0.42 -
Adjusted EBITDA of
$74.9 million
“Our financial performance this quarter again demonstrates the value of our diversified business model, where challenges in our aviation business were counterbalanced by strong results in our marine and land businesses,” stated
For the first quarter, our aviation segment generated gross profit of
“The Flyers Energy business delivered very strong results in the first quarter since we closed the transaction contributing to a record level of quarterly gross profit in our Land segment and a strong overall result,” said
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures (collectively, the “Non-GAAP Measures”), including adjusted net income attributable to
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. Adjusted diluted earnings per common share is computed by dividing adjusted net income attributable to
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 beliefs and expectations about our ability to capitalize on our sustainability solutions and meet our customers' energy requirements, as well as our view of our balance sheet and capital allocation to support organic growth and strategic opportunities. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s
About
Headquartered in
For more information, visit www.wfscorp.com.
-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - In millions, except per share data) |
||||||||
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Assets: |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
266.2 |
|
|
$ |
652.2 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
3,510.2 |
|
|
|
2,355.3 |
|
Inventories |
|
|
680.5 |
|
|
|
477.9 |
|
Prepaid expenses |
|
|
59.3 |
|
|
|
59.2 |
|
Short-term derivative assets, net |
|
|
293.8 |
|
|
|
169.2 |
|
Other current assets |
|
|
215.3 |
|
|
|
305.9 |
|
Total current assets |
|
|
5,025.3 |
|
|
|
4,019.7 |
|
Property and equipment, net |
|
|
473.9 |
|
|
|
348.9 |
|
|
|
|
1,244.6 |
|
|
|
861.9 |
|
Identifiable intangible assets, net |
|
|
369.5 |
|
|
|
189.1 |
|
Other non-current assets |
|
|
854.7 |
|
|
|
522.8 |
|
Total assets |
|
$ |
7,968.0 |
|
|
$ |
5,942.4 |
|
Liabilities: |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
15.0 |
|
|
$ |
30.6 |
|
Accounts payable |
|
|
3,447.5 |
|
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|
2,399.6 |
|
Short-term derivative liabilities, net |
|
|
317.1 |
|
|
|
168.4 |
|
Customer deposits |
|
|
234.9 |
|
|
|
205.5 |
|
Accrued expenses and other current liabilities |
|
|
398.0 |
|
|
|
292.7 |
|
Total current liabilities |
|
|
4,412.5 |
|
|
|
3,096.7 |
|
Long-term debt |
|
|
869.1 |
|
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|
478.1 |
|
Non-current income tax liabilities, net |
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|
208.4 |
|
|
|
213.9 |
|
Other long-term liabilities |
|
|
532.5 |
|
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|
236.8 |
|
Total liabilities |
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|
6,022.6 |
|
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|
4,025.6 |
|
Equity: |
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World Fuel shareholders' equity: |
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Preferred stock, |
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— |
|
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— |
|
Common stock, |
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0.6 |
|
|
|
0.6 |
|
Capital in excess of par value |
|
|
206.7 |
|
|
|
168.1 |
|
Retained earnings |
|
|
1,899.4 |
|
|
|
1,880.6 |
|
Accumulated other comprehensive income (loss) |
|
|
(165.4 |
) |
|
|
(136.7 |
) |
Total World Fuel shareholders' equity |
|
|
1,941.4 |
|
|
|
1,912.7 |
|
Noncontrolling interest |
|
|
4.1 |
|
|
|
4.1 |
|
Total equity |
|
|
1,945.5 |
|
|
|
1,916.8 |
|
Total liabilities and equity |
|
$ |
7,968.0 |
|
|
$ |
5,942.4 |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited – In millions, except per share data) |
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For the Three Months Ended |
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2022 |
|
2021 |
||||
Revenue |
|
$ |
12,459.4 |
|
|
$ |
5,957.9 |
|
Cost of revenue |
|
|
12,228.4 |
|
|
|
5,766.3 |
|
Gross profit |
|
|
230.9 |
|
|
|
191.6 |
|
Operating expenses: |
|
|
|
|
||||
Compensation and employee benefits |
|
|
114.9 |
|
|
|
92.5 |
|
General and administrative |
|
|
74.7 |
|
|
|
59.4 |
|
Restructuring charges |
|
|
— |
|
|
|
2.1 |
|
Total operating expenses |
|
|
189.6 |
|
|
|
154.0 |
|
Income from operations |
|
|
41.3 |
|
|
|
37.6 |
|
Non-operating income (expenses), net: |
|
|
|
|
||||
Interest expense and other financing costs, net |
|
|
(14.3 |
) |
|
|
(8.7 |
) |
Other income (expense), net |
|
|
5.7 |
|
|
|
(1.2 |
) |
Total non-operating income (expense), net |
|
|
(8.7 |
) |
|
|
(10.0 |
) |
Income (loss) before income taxes |
|
|
32.6 |
|
|
|
27.6 |
|
Provision for income taxes |
|
|
6.4 |
|
|
|
8.8 |
|
Net income (loss) including noncontrolling interest |
|
|
26.3 |
|
|
|
18.8 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(0.1 |
) |
|
|
— |
|
Net income (loss) attributable to World Fuel |
|
$ |
26.3 |
|
|
$ |
18.9 |
|
|
|
|
|
|
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Basic earnings (loss) per common share |
|
$ |
0.42 |
|
|
$ |
0.30 |
|
|
|
|
|
|
||||
Basic weighted average common shares |
|
|
63.4 |
|
|
|
63.0 |
|
|
|
|
|
|
||||
Diluted earnings (loss) per common share |
|
$ |
0.41 |
|
|
$ |
0.30 |
|
|
|
|
|
|
||||
Diluted weighted average common shares |
|
|
63.7 |
|
|
|
63.6 |
|
|
|
|
|
|
||||
Comprehensive income: |
|
|
|
|
||||
Net income (loss) including noncontrolling interest |
|
$ |
26.3 |
|
|
$ |
18.8 |
|
Other comprehensive income (loss): |
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
(9.4 |
) |
|
|
(4.0 |
) |
Cash flow hedges, net of income tax expense (benefit) of ( |
|
|
(19.3 |
) |
|
|
16.4 |
|
Total other comprehensive income (loss) |
|
|
(28.7 |
) |
|
|
12.4 |
|
Comprehensive income (loss) including noncontrolling interest |
|
|
(2.4 |
) |
|
|
31.2 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
(0.1 |
) |
|
|
— |
|
Comprehensive income (loss) attributable to World Fuel |
|
$ |
(2.3 |
) |
|
$ |
31.2 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - In millions) |
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For the Three Months Ended |
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2022 |
|
2021 |
||||
Cash flows from operating activities: |
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|
|
||||
Net income (loss) including noncontrolling interest |
|
$ |
26.3 |
|
|
$ |
18.8 |
|
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
27.2 |
|
|
|
19.8 |
|
Provision for credit losses |
|
|
2.0 |
|
|
|
3.6 |
|
Share-based payment award compensation costs |
|
|
3.7 |
|
|
|
8.7 |
|
Deferred income tax expense (benefit) |
|
|
(4.0 |
) |
|
|
(6.8 |
) |
Foreign currency (gains) losses, net |
|
|
(3.7 |
) |
|
|
(12.9 |
) |
Other |
|
|
(16.9 |
) |
|
|
(5.5 |
) |
Changes in assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
||||
Accounts receivable, net |
|
|
(1,051.3 |
) |
|
|
(438.8 |
) |
Inventories |
|
|
(140.6 |
) |
|
|
11.0 |
|
Prepaid expenses |
|
|
3.1 |
|
|
|
(3.0 |
) |
Short-term derivative assets, net |
|
|
(210.6 |
) |
|
|
77.3 |
|
Other current assets |
|
|
72.3 |
|
|
|
69.3 |
|
Cash collateral with counterparties |
|
|
56.3 |
|
|
|
(4.4 |
) |
Other non-current assets |
|
|
(108.9 |
) |
|
|
(4.0 |
) |
Accounts payable |
|
|
996.7 |
|
|
|
394.3 |
|
Customer deposits |
|
|
31.5 |
|
|
|
(22.8 |
) |
Accrued expenses and other current liabilities |
|
|
158.3 |
|
|
|
0.8 |
|
Non-current income tax, net and other long-term liabilities |
|
|
86.6 |
|
|
|
(1.8 |
) |
Total adjustments |
|
|
(98.3 |
) |
|
|
84.6 |
|
Net cash provided by (used in) operating activities |
|
|
(72.0 |
) |
|
|
103.4 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Acquisition of business, net of cash acquired |
|
|
(639.4 |
) |
|
|
— |
|
Capital expenditures |
|
|
(16.7 |
) |
|
|
(2.0 |
) |
Other investing activities, net |
|
|
(1.3 |
) |
|
|
(0.6 |
) |
Net cash provided by (used in) investing activities |
|
|
(657.3 |
) |
|
|
(2.7 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings of debt |
|
|
1,745.8 |
|
|
|
0.2 |
|
Repayments of debt |
|
|
(1,369.7 |
) |
|
|
(4.5 |
) |
Dividends paid on common stock |
|
|
(7.4 |
) |
|
|
(6.1 |
) |
Repurchases of common stock |
|
|
(13.7 |
) |
|
|
— |
|
Other financing activities, net |
|
|
(11.3 |
) |
|
|
(10.4 |
) |
Net cash provided by (used in) financing activities |
|
|
343.7 |
|
|
|
(20.8 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(0.3 |
) |
|
|
(3.5 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(386.0 |
) |
|
|
76.5 |
|
Cash and cash equivalents, as of the beginning of the period |
|
|
652.2 |
|
|
|
658.8 |
|
Cash and cash equivalents, as of the end of the period |
|
$ |
266.2 |
|
|
$ |
735.3 |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited - In millions, except per share data) |
||||||||
|
|
For the Three Months Ended |
||||||
Non-GAAP financial measures and reconciliation: |
|
2022 |
|
2021 |
||||
Net income (loss) attributable to World Fuel |
|
$ |
26.3 |
|
|
$ |
18.9 |
|
Acquisition and divestiture related expenses |
|
|
0.4 |
|
|
|
2.4 |
|
Integration costs |
|
|
0.3 |
|
|
|
— |
|
Restructuring charges |
|
|
— |
|
|
|
2.1 |
|
Income tax impacts |
|
|
(0.2 |
) |
|
|
(2.7 |
) |
Adjusted net income (loss) attributable to World Fuel |
|
$ |
26.8 |
|
|
$ |
20.7 |
|
|
|
|
|
|
||||
Diluted earnings (loss) per common share |
|
$ |
0.41 |
|
|
$ |
0.30 |
|
Acquisition and divestiture related expenses |
|
|
0.01 |
|
|
|
0.04 |
|
Integration costs |
|
|
— |
|
|
|
— |
|
Restructuring charges |
|
|
— |
|
|
|
0.03 |
|
Income tax impacts |
|
|
— |
|
|
|
(0.04 |
) |
Adjusted diluted earnings (loss) per common share |
|
$ |
0.42 |
|
|
$ |
0.33 |
|
|
|
For the Three Months Ended |
||||||
Non-GAAP financial measures and reconciliation: |
|
2022 |
|
2021 |
||||
Net income (loss) including noncontrolling interest |
|
$ |
26.3 |
|
$ |
18.8 |
||
Interest expense and other financing costs, net |
|
|
14.3 |
|
|
8.7 |
||
Provision (benefit) for income taxes |
|
|
6.4 |
|
|
8.8 |
||
Depreciation and amortization |
|
|
27.2 |
|
|
19.8 |
||
Acquisition and divestiture related expenses |
|
|
0.4 |
|
|
2.4 |
||
Integration costs |
|
|
0.3 |
|
|
— |
||
Restructuring charges |
|
|
— |
|
|
2.1 |
||
Adjusted EBITDA(1) |
|
$ |
74.9 |
|
$ |
60.7 |
(1) |
|
The Company defines adjusted EBITDA as net income (loss) excluding the impact of interest, tax and depreciation and amortization, in addition to items that are considered to be non-operational and not representative of our core business, including those associated with acquisition and divestiture related expenses, integration costs, asset impairments, and restructuring charges. As the GAAP measure most comparable to Adjusted EBITDA is net income, the reconciliation was updated in the first quarter of 2022 to start with net income. |
BUSINESS SEGMENTS INFORMATION (Unaudited - In millions) |
||||||||
|
|
For the Three Months Ended |
||||||
Revenue: |
|
2022 |
|
2021 |
||||
Aviation segment |
|
$ |
5,010.5 |
|
|
$ |
2,095.0 |
|
Land segment |
|
|
4,458.2 |
|
|
|
2,188.2 |
|
Marine segment |
|
|
2,990.6 |
|
|
|
1,674.7 |
|
Total revenue |
|
$ |
12,459.4 |
|
|
$ |
5,957.9 |
|
Gross profit: |
|
|
|
|
||||
Aviation segment |
|
$ |
64.2 |
|
|
$ |
76.7 |
|
Land segment |
|
|
119.8 |
|
|
|
89.5 |
|
Marine segment |
|
|
47.0 |
|
|
|
25.4 |
|
Total gross profit |
|
$ |
230.9 |
|
|
$ |
191.6 |
|
Income from operations: |
|
|
|
|
||||
Aviation segment |
|
$ |
7.5 |
|
|
$ |
23.0 |
|
Land segment |
|
|
33.4 |
|
|
|
32.8 |
|
Marine segment |
|
|
23.1 |
|
|
|
6.4 |
|
Corporate overhead - unallocated |
|
|
(22.8 |
) |
|
|
(24.5 |
) |
Total income from operations |
|
$ |
41.3 |
|
|
$ |
37.6 |
|
SALES VOLUME SUPPLEMENTAL INFORMATION (Unaudited - In millions) |
||||||
|
|
For the Three Months Ended |
||||
Volume (Gallons): |
|
2022 |
|
2021 |
||
Aviation Segment |
|
1,655.4 |
|
1,143.4 |
||
Land Segment (1) |
|
1,582.6 |
|
1,303.0 |
||
Marine Segment (2) |
|
1,238.3 |
|
1,117.5 |
||
Consolidated Total |
|
4,476.3 |
|
3,563.9 |
(1) |
|
Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (kWh) for our World Kinect power business. |
(2) |
|
Converted from metric tons to gallons at a rate of 264 gallons per metric ton. Marine segment metric tons were 4.7 and 4.2 for the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006193/en/
Ira M Birns, 305-428-8000
Executive Vice President & Chief Financial Officer
Glenn Klevitz, 305-428-8000
Vice President, Treasurer & Investor Relations
Source:
FAQ
What were the Q1 2022 earnings for World Fuel Services (INT)?
How did the aviation segment perform in Q1 2022 for INT?
What drove the strong performance in the marine segment for INT?
How much did World Fuel Services (INT) earn per share in Q1 2022?