An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
World Kinect (NYSE: WKC) has completed the sale of the Avinode Group and aviation software products to CAMP Systems International, Inc. The sale generated approximately $200 million in cash proceeds and is expected to result in a one-time after-tax gain of $75-80 million in the second quarter. The sale allows World Kinect to reduce interest expenses and invest in core business opportunities.
World Kinect (NYSE: WKC) ha completato la vendita del Gruppo Avinode e dei prodotti software per l'aviazione a CAMP Systems International, Inc. La vendita ha generato circa 200 milioni di dollari in contanti e si prevede che comporterà un guadagno una tantum dopo le tasse di 75-80 milioni di dollari nel secondo trimestre. La vendita permette a World Kinect di ridurre le spese per interessi e di investire in opportunità di business principali.
World Kinect (NYSE: WKC) ha completado la venta del Grupo Avinode y los productos de software de aviación a CAMP Systems International, Inc. La venta generó aproximadamente $200 millones en efectivo y se espera que resulte en una ganancia única después de impuestos de $75-80 millones en el segundo trimestre. La venta permite a World Kinect reducir los gastos de intereses e invertir en oportunidades de negocio fundamentales.
World Kinect (NYSE: WKC)는 Avinode 그룹 및 항공 소프트웨어 제품을 CAMP Systems International, Inc.에 판매했습니다. 이 거래로 약 2억 달러의 현금이 발생했으며, 2분기에 7500만에서 8000만 달러의 일회성 세후 이익이 발생할 것으로 예상됩니다. 이 판매를 통해 World Kinect는 이자 비용을 줄이고 핵심 비즈니스 기회에 투자할 수 있게 되었습니다.
World Kinect (NYSE: WKC) a finalisé la vente du Groupe Avinode et des produits logiciels d'aviation à CAMP Systems International, Inc. La vente a généré environ 200 millions de dollars en liquidités et devrait résulter en un gain unique après impôt de 75 à 80 millions de dollars au deuxième trimestre. La vente permet à World Kinect de réduire les dépenses d'intérêt et d'investir dans les opportunités commerciales principales.
World Kinect (NYSE: WKC) hat den Verkauf der Avinode Gruppe und der Flugsoftwareprodukte an CAMP Systems International, Inc. abgeschlossen. Der Verkauf erbrachte etwa 200 Millionen Dollar in bar und wird voraussichtlich zu einem einmaligen Gewinn nach Steuern von 75-80 Millionen Dollar im zweiten Quartal führen. Der Verkauf ermöglicht es World Kinect, Zinskosten zu senken und in Kerngeschäftschancen zu investieren.
Positive
World Kinect received gross cash proceeds of approximately $200 million from the sale of the Avinode Group and aviation software products.
Negative
None.
Insights
The recent sale by World Kinect Corporation of the Avinode Group and associated aviation software products marks a strategic realignment of the company's assets. With gross cash proceeds of approximately $200 million and a projected after-tax gain of $75-80 million, this transaction not only bolsters the company's liquidity but also offers an opportunity to decrease its annual interest expense by an estimated $10 million. This financial maneuver seems to improve the balance sheet in the near term, potentially enhancing shareholder value. The company's intention to reinvest in synergistic opportunities indicates a proactive approach to growth, focusing on areas that could generate complementarity and efficiency within its core business. Investors might view this as a positive sign of the company's commitment to prudent financial management and strategic capital allocation.
The divestiture of the Avinode Group by World Kinect Corporation to CAMP Systems, a subsidiary of Hearst, could signify a pivot towards more lucrative or core areas of operation. This transaction not only streamlines World Kinect's business model by shedding non-core assets but also might enhance its competitive position within its primary market. With the company looking to deploy the capital in synergistic opportunities, it shows intent to leverage its strengths and possibly enter into or expand within growth markets. For retail investors, the potential for reinvestment in areas that align closely with World Kinect's core competencies could mean a stronger, more focused company in the long run. However, the success of such strategic investments remains to be seen and would be a key factor in evaluating the company's future performance.
MIAMI--(BUSINESS WIRE)--
World Kinect Corporation (NYSE: WKC) announced today it has completed the sale of the Avinode Group, the world’s leading air charter sourcing platform, and its portfolio of aviation FBO software products to CAMP Systems International, Inc., a wholly-owned subsidiary of Hearst.
World Kinect received gross cash proceeds at closing of approximately $200 million, and expects to report a one-time after-tax gain of approximately $75-80 million in the second quarter.
“We are pleased to close on this strategic sale – another example of our efforts to sharpen our portfolio,” said Ira M. Birns, Executive Vice President and Chief Financial Officer. “In the short-term, this transaction provides us with liquidity to reduce our annual run-rate of interest expense by approximately $10 million and, longer-term, the transaction provides additional capital to invest in synergistic opportunities in our core business.”
About World Kinect Corporation
Headquartered in Miami, Florida, World Kinect Corporation (NYSE: WKC) is a global energy management company offering fulfillment and related services to more than 150,000 customers across the aviation, marine, and land-based transportation sectors. We also supply natural gas and power in the United States and Europe along with a growing suite of other sustainability-related products and services.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "will be," "will continue," "plan," or words or phrases of similar meaning. Specifically, this release includes forward-looking statements regarding our future financial performance, including our operating margin, adjusted EBITDA and free cash flow. This release also includes statements regarding our future capital return plans, which are subject to board approval, applicable law and provisions governing the terms of our credit arrangements. All of our forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our Securities and Exchange Commission ("SEC") filings, including our 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: customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts; changes in the market prices of energy or commodities or extremely high or low fuel prices that continue for an extended period of time; adverse conditions in the industries in which our customers operate; our inability to effectively mitigate certain financial risks and other risks associated with derivatives and our physical fuel products; our ability to achieve the expected level of benefit from our restructuring activities and cost reduction initiatives; relationships with our employees and potential labor disputes associated with employees covered by collective bargaining agreements; our failure to comply with restrictions and covenants governing our outstanding indebtedness; the impact of cyber and other information security related incidents; changes in the political, economic or regulatory environment generally and in the markets in which we operate, such as the current conflicts in Eastern Europe and the Middle East; greenhouse gas reduction programs and other environmental and climate change legislation adopted by governments around the world, including cap and trade regimes, carbon taxes, increased efficiency standards and mandates for renewable energy, each of which could increase our operating and compliance costs as well as adversely impact our sales of fuel products; changes in credit terms extended to us from our suppliers; non-performance of suppliers on their sale commitments and customers on their purchase commitments; non-performance of third-party service providers; our ability to effectively integrate and derive benefits from acquired businesses; our ability to meet financial forecasts associated with our operating plan; lower than expected cash flows and revenues, which could impair our ability to realize the value of recorded intangible assets and goodwill; the availability of cash and sufficient liquidity to fund our working capital and strategic investment needs; currency exchange fluctuations; inflationary pressures and their impact on our customers or the global economy, including sudden or significant increases in interest rates or a global recession; our ability to effectively leverage technology and operating systems and realize the anticipated benefits; failure to meet fuel and other product specifications agreed with our customers; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational harm from adverse publicity arising out of spills, environmental contamination or public perception about the impacts on climate change by us or other companies in our industry; risks associated with operating in high-risk locations, including supply disruptions, border closures and other logistical difficulties that arise when working in these areas; uninsured or underinsured losses; seasonal variability that adversely affects our revenues and operating results, as well as the impact of natural disasters, such as earthquakes, hurricanes and wildfires; declines in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in U.S. or foreign tax laws, interpretations of such laws, changes in the mix of taxable income among different tax jurisdictions, or adverse results of tax audits, assessments, or disputes; our failure to generate sufficient future taxable income in jurisdictions with material deferred tax assets and net operating loss carryforwards; changes in multilateral conventions, treaties, tariffs or other arrangements between or among sovereign nations, including the U.K.'s exit from the European Union; our ability to comply with U.S. and international laws and regulations, including those related to anti-corruption, economic sanction programs and environmental matters; the outcome of litigation, regulatory investigations and other legal matters, including the associated legal and other costs; and other risks described 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.
How much cash proceeds did World Kinect receive from the sale?
World Kinect received approximately $200 million in gross cash proceeds from the sale.
What is the expected one-time after-tax gain from the sale?
The sale is expected to result in a one-time after-tax gain of approximately $75-80 million in the second quarter.
Who did World Kinect sell the Avinode Group and aviation software products to?
World Kinect sold the Avinode Group and aviation software products to CAMP Systems International, Inc., a subsidiary of Hearst.
How will World Kinect utilize the proceeds from the sale?
World Kinect plans to reduce its annual run-rate of interest expense by approximately $10 million in the short-term and invest in synergistic opportunities in its core business in the longer term.
