World Kinect Corporation Reports Fourth Quarter and Full Year 2023 Results

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Insights

World Kinect Corporation's reported financial results signal a contraction in both quarterly and annual revenue, with a 14% decline in Q4 and a 19% decline for the full year. This decrease in revenue is a critical indicator of the company's performance and could potentially impact the stock price. The reported net loss of $34.8 million represents a significant downturn from the previous year's net income, which is a red flag for investors and analysts alike. It is essential to scrutinize the underlying reasons for this loss, such as the erroneous bid in the Finnish power market mentioned and evaluate the company's strategies to mitigate such risks in the future.

Furthermore, the increase in operating expenses, particularly the 22% rise in Q4, suggests rising costs that are not being offset by revenue growth, potentially squeezing profit margins. The adjusted EBITDA increase of 2% for the year, however, indicates some level of operational efficiency and could be seen as a positive sign amidst overall negative results. Investors will need to weigh the short-term impacts of these financials against the company's long-term strategy and market position as outlined by the CEO and CFO.

Examining World Kinect Corporation's segment profitability reveals a mixed performance across its business divisions. The aviation sector's 19% gross profit increase in Q4 and 36% for the full year is noteworthy, suggesting a robust strategy that capitalizes on the elevated interest rate environment. This performance contrasts sharply with the land and marine segments, which saw significant profit declines due to factors such as erroneous bids and increased competition. These segment-specific results are crucial for understanding the company's market dynamics and potential for growth.

Additionally, the mention of sustainability-related offerings and the focus on operating efficiencies align with industry trends towards environmental responsibility and cost management. These initiatives could resonate well with socially conscious investors and may provide a competitive edge in attracting investment. However, the impact of the global macroeconomic environment on demand, as seen in the marine segment, is a concern that stakeholders should monitor closely.

The financial outcomes reported by World Kinect Corporation are occurring within a broader economic context marked by macroeconomic shifts and interest rate fluctuations. The company's performance, particularly the decline in revenue and net income, may reflect these larger economic trends which have implications for business operations and investor confidence. For instance, the aviation segment's success despite an elevated interest rate environment is an exception worth noting, potentially indicating a resilient business model within that sector.

The mention of strong liquidity and operating cash flow suggests that the company is maintaining a buffer to weather economic uncertainties. This financial stability is critical for sustaining investments in organic business activities and strategic investments, which could be pivotal for long-term growth. It is essential for stakeholders to consider how external economic factors may continue to influence World Kinect's profitability and operational decisions moving forward.

02/22/2024 - 04:15 PM

MIAMI--(BUSINESS WIRE)-- World Kinect Corporation (NYSE: WKC) today reported financial results for the fourth quarter and full year 2023.

Results compared to the same period last year are as follows (unaudited - in millions, except percentages and per share data):

	Three Months Ended December 31,					Year Ended December 31,
		2023		2022	Change		2023		2022	Change
Volume⁽¹⁾		4,533		4,575	(1)%		18,006		18,331	(2)%
Revenue	$	12,003	$	13,878	(14)%	$	47,711	$	59,043	(19)%
Gross profit	$	232	$	282	(18)%	$	1,058	$	1,089	(3)%
Adjusted gross profit	$	280	$	282	(1)%	$	1,106	$	1,089	2%
Operating expenses	$	248	$	204	22%	$	860	$	816	5%
Adjusted operating expenses	$	207	$	202	2%	$	819	$	813	1%
Income (loss) from operations	$	(15)	$	79	(119)%	$	198	$	273	(28)%
Operating margin		*(7)%*		28%			*19%*		25%
Adjusted income from operations	$	74	$	80	(8)%	$	288	$	276	4%
Adjusted operating margin		*26%*		28%			*26%*		25%
Net income (loss) including noncontrolling interest	$	(35)	$	21	(267)%	$	54	$	116	(54)%
Adjusted EBITDA	$	100	$	106	(6)%	$	386	$	380	2%
Diluted earnings (loss) per common share	$	(0.58)	$	0.33	(273)%	$	0.86	$	1.82	(53)%
Adjusted diluted earnings per common share	$	0.54	$	0.54	— %	$	1.95	$	2.04	(4)%

⁽¹⁾	Includes gallons and gallon equivalents converted as described in the table below.

"Although we experienced non-recurring financial impacts this quarter, we delivered solid core operating results while further advancing our portfolio and platform to better support our customer and supplier requirements for conventional and renewable products and services," said Michael J. Kasbar, Chairman and Chief Executive Officer. "We look forward to providing an update on our unique position in a large and growing market, our clear strategy to capture opportunities across our three business segments, and financial targets to drive attractive long-term shareholder returns at our upcoming Investor Day."

"We delivered $271 million in operating cash flow for the year, further supporting our strong liquidity profile which provides us with the capital we need to invest in organic business activities, fund strategic investments and return capital to our shareholders through buybacks and dividends," said Ira M. Birns, Executive Vice President and Chief Financial Officer. "We also continue to make progress in driving greater operating efficiencies to fuel stronger returns."

Fourth Quarter 2023 Compared to 2022

Year-Over-Year Highlights

Revenue of $12.0 billion, a decrease of 14%.
Gross profit of $232.4 million, a decrease of 18%.
Adjusted gross profit of $280.4 million, a decrease of 1%.
Net loss of $34.8 million, a decrease of 266%.
Adjusted EBITDA of $99.8 million, a decrease of 6%.

Year-Over-Year Segment Profitability

Aviation – Gross profit of $131.4 million, an increase of 19%. The increase during the three months ended December 31, 2023 was primarily attributable to our continued focus on improving returns in an elevated interest rate environment.
Land – Gross profit of $57.0 million, a decrease of 51%. The decrease during the three months ended December 31, 2023 was primarily attributable to losses associated with an erroneous bid submitted in the Finnish power market, which are excluded from our non-GAAP measures. Excluding this non-recurring item, adjusted gross profit was $105.0 million, a decrease of 9% driven by lower profitability in North America and the U.K., partially offset by improved performance in our natural gas activities and our sustainability-related offerings.
Marine – Gross profit of $44.0 million, a decrease of 21%. The decrease during the three months ended December 31, 2023 was primarily attributable to increased competition resulting from lower bunker fuel prices, together with softening demand driven by changes in the global macroeconomic environment.

Full Year 2023 Compared to 2022

Year-Over-Year Highlights

Revenue of $47.7 billion, a decrease of 19%.
Gross profit of $1.06 billion, a decrease of 3%.
Adjusted gross profit of $1.11 billion, an increase of 2%.
Net income of $52.9 million, a decrease of 54%.
Adjusted EBITDA of $386.4 million, an increase of 2%.

Year-Over-Year Segment Profitability

Aviation – Gross profit of $485.8 million, an increase of 36%.
Land – Gross profit of $399.8 million, a decrease of 16%. Adjusted gross profit was $447.9 million, a decrease of 6%.
Marine – Gross profit of $172.6 million, a decrease of 33%.

Earnings Conference Call

An investor conference call will be held today, February 22, 2024, at 5:00 PM Eastern Time to discuss fourth quarter and full year results. Participants can access the live webcast or participate by phone by visiting our website at https://ir.worldkinect.com. To join the conference call by phone, participants must preregister and will then receive dial-in information and a PIN enabling access to the call. A replay of the webcast will be available and can be accessed in the same manner as the live webcast on our website through March 6, 2024.

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.

For more information, visit https://corp.worldkinect.com.

Definitions

"Net income" means net income (loss) attributable to World Kinect as presented in the Statements of Income and Comprehensive Income.
"Operating margin" means income from operations as a percentage of gross profit.

Non-GAAP Financial Measures

We believe that the non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating our ongoing financial performance 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 financial measures may not be comparable to the presentation of such metrics by other companies.

Our non-GAAP financial measures exclude acquisition and divestiture related expenses, restructuring charges, impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs associated with our acquisitions, and non-operating legal settlements, primarily because we do not believe they are reflective of our core operating results. Additionally, in the fourth quarter of 2023, we excluded costs associated with a previously disclosed erroneous bid made in the Finnish power market (the "Finnish bid error") that resulted in the extraordinary losses.

We use the following non-GAAP measures:

Adjusted net income attributable to World Kinect ("Adjusted net income") is defined as net income excluding the impact of acquisition and divestiture related expenses, restructuring charges, impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs, non-operating legal settlements, and costs associated with the Finnish bid error.
Adjusted diluted earnings per common share is computed by dividing adjusted net income by the sum of the weighted average number of shares of common stock outstanding for 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. Potentially dilutive securities include share-based compensation awards, such as non-vested restricted stock units, performance stock units where the performance requirements have been met, and settled stock appreciation rights awards.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is defined as net income (loss) excluding the impact of interest, income taxes, and depreciation and amortization, in addition to acquisition and divestiture related expenses, restructuring charges, impairments, gains or losses on sale of businesses, integration costs, non-operating legal settlements, and costs associated with the Finnish bid error.
Adjusted income from operations is defined as income from operations excluding the impact of acquisition and divestiture related expenses, restructuring charges, impairments, integration costs, and costs associated with the Finnish bid error.
Adjusted income from operations as a percentage of adjusted gross profit ("Adjusted operating margin") is computed by dividing Adjusted income from operations by Adjusted gross profit. Beginning with the three months ended December 31, 2023 we compute Adjusted operating margin using Adjusted gross profit (as defined below). This non-GAAP measure has not been recast in the comparable period as there are no costs that would meet the updated definition.

Beginning with the three months ended December 31, 2023 we added the following non-GAAP measures:

Adjusted operating expenses is defined as operating expenses excluding the impact of acquisition and divestiture related expenses, restructuring charges, impairments, integration costs, and costs associated with the Finnish bid error.
Consolidated and Land Adjusted gross profit is defined as gross profit excluding the impact of costs associated with the Finnish bid error.

Investors are encouraged to review the reconciliation of these non-GAAP financial 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. 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 market position and strategy. 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.

-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --

WORLD KINECT CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited - In millions, except per share data)

	December 31, 2023			December 31, 2022
Assets:
Current assets:
Cash and cash equivalents	$	304.3		$	298.4
Accounts receivable, net of allowance for credit losses of $18.3 million and $14.1 million as of December 31, 2023 and 2022, respectively		2,735.5			3,294.1
Inventories		664.6			779.9
Prepaid expenses		77.6			83.6
Short-term derivative assets, net		275.4			302.1
Other current assets		446.4			479.9
Total current assets		4,503.8			5,238.1
Property and equipment, net		515.3			484.2
Goodwill		1,238.0			1,233.0
Identifiable intangible assets, net		299.7			336.2
Other non-current assets		818.6			873.2
Total assets	$	7,375.3		$	8,164.6
Liabilities:
Current liabilities:
Current maturities of long-term debt	$	78.8		$	15.8
Accounts payable		3,097.6			3,529.5
Short-term derivative liabilities, net		128.2			325.2
Accrued expenses and other current liabilities		745.0			738.2
Total current liabilities		4,049.7			4,608.6
Long-term debt		809.1			829.9
Other long-term liabilities		566.9			735.3
Total liabilities		5,425.7			6,173.8
Commitments and contingencies
Equity:
World Kinect shareholders' equity:
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued		—			—
Common stock, $0.01 par value; 100.0 shares authorized, 59.8 and 62.0 issued and outstanding as of December 31, 2023 and 2022, respectively		0.6			0.6
Capital in excess of par value		109.6			182.4
Retained earnings		1,981.6			1,962.5
Accumulated other comprehensive income (loss)		(148.9	)		(160.6	)
Total World Kinect shareholders' equity		1,943.0			1,984.9
Noncontrolling interest		6.7			5.9
Total equity		1,949.6			1,990.7
Total liabilities and equity	$	7,375.3		$	8,164.6

WORLD KINECT CORPORATION CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited – In millions, except per share data)

	For the Three Months Ended December 31,						For the Year Ended December 31,
		2023			2022			2023			2022
Revenue	$	12,002.9		$	13,877.7		$	47,710.6		$	59,043.1
Cost of revenue		11,770.6			13,595.4			46,652.4			57,954.1
Gross profit		232.4			282.4			1,058.2			1,089.1
Operating expenses:
Compensation and employee benefits		136.0			133.1			512.3			507.4
General and administrative		72.1			69.9			308.0			308.7
Asset impairments		32.4			0.6			32.8			0.6
Restructuring charges		7.2			—			7.2			(0.8	)
Total operating expenses		247.7			203.5			860.2			815.8
Income (loss) from operations		(15.3	)		78.8			198.0			273.2
Non-operating income (expenses), net:
Interest expense and other financing costs, net		(32.3	)		(35.8	)		(127.7	)		(110.6	)
Other income (expense), net		1.1			(15.6	)		(3.6	)		(17.5	)
Total non-operating income (expense), net		(31.3	)		(51.4	)		(131.3	)		(128.1	)
Income (loss) before income taxes		(46.6	)		27.4			66.7			145.1
Provision for income taxes		(11.8	)		6.5			13.0			29.2
Net income (loss) including noncontrolling interest		(34.8	)		20.9			53.7			115.9
Net income (loss) attributable to noncontrolling interest		(0.1	)		—			0.8			1.7
Net income (loss) attributable to World Kinect	$	(34.8	)	$	20.9		$	52.9		$	114.1
Basic earnings (loss) per common share	$	(0.58	)	$	0.34		$	0.86		$	1.83
Basic weighted average common shares		60.1			62.1			61.4			62.3
Diluted earnings (loss) per common share	$	(0.58	)	$	0.33		$	0.86		$	1.82
Diluted weighted average common shares		60.1			62.5			61.7			62.7
Comprehensive income:
Net income (loss) including noncontrolling interest	$	(34.8	)	$	20.9		$	53.7		$	115.9
Other comprehensive income (loss):
Foreign currency translation adjustments		23.2			31.9			19.9			(45.5	)
Cash flow hedges, net of income tax expense (benefit) of ($0.4) and ($0.6) for the three months ended December 31, 2023 and 2022, respectively, and net of income tax expense (benefit) of ($2.7) and $7.6 for the year ended December 31, 2023 and 2022, respectively		(1.7	)		(1.3	)		(8.1	)		21.6
Total other comprehensive income (loss)		21.5			30.6			11.8			(24.0	)
Comprehensive income (loss) including noncontrolling interest		(13.3	)		51.5			65.5			91.9
Comprehensive income (loss) attributable to noncontrolling interest		(0.1	)		—			0.8			1.7
Comprehensive income (loss) attributable to World Kinect	$	(13.2	)	$	51.5		$	64.7		$	90.2

WORLD KINECT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - In millions)

	For the Three Months Ended December 31,						For the Year Ended December 31,
		2023			2022			2023			2022
Cash flows from operating activities:
Net income (loss) including noncontrolling interest	$	(34.8	)	$	20.9		$	53.7		$	115.9
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Unrealized (gain) loss on derivatives		(75.8	)		91.9			(267.5	)		179.9
Depreciation and amortization		26.7			27.6			104.5			107.8
Noncash operating lease expense		8.2			8.1			34.7			35.0
Provision for credit losses		(0.5	)		1.6			4.7			7.7
Share-based payment award compensation costs		7.9			3.5			24.2			17.6
Deferred income tax expense (benefit)		(26.4	)		(10.5	)		(30.7	)		(18.5	)
Unrealized foreign currency (gains) losses, net		(7.0	)		6.0			(16.5	)		21.7
Asset impairment charges		32.4			0.6			32.8			0.6
Other		7.2			11.0			23.0			30.8
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net		180.1			(72.1	)		569.2			(870.7	)
Inventories		58.7			(44.9	)		186.8			(252.1	)
Prepaid expenses		14.9			2.7			6.7			(25.2	)
Other current assets		7.8			(38.3	)		(30.5	)		(124.2	)
Cash collateral with counterparties		(19.9	)		(329.7	)		168.9			(252.9	)
Other non-current assets		(14.3	)		(2.4	)		(88.0	)		(12.3	)
Change in derivative assets and liabilities, net		1.5			0.2			(4.7	)		2.9
Accounts payable		(225.0	)		261.8			(441.9	)		1,107.5
Accrued expenses and other current liabilities		66.5			(38.9	)		(48.0	)		147.8
Other long-term liabilities		(3.7	)		9.9			(10.1	)		(80.7	)
Net cash provided by (used in) operating activities		4.5			(90.8	)		271.3			138.5
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(13.7	)		(2.2	)		(13.7	)		(643.9	)
Proceeds from sale of business, net of divested cash		9.3			—			9.3			—
Capital expenditures		(19.8	)		(22.4	)		(87.6	)		(78.6	)
Other investing activities, net		0.4			(1.2	)		(9.1	)		(2.5	)
Net cash provided by (used in) investing activities		(23.7	)		(25.7	)		(101.1	)		(724.9	)
Cash flows from financing activities:
Borrowings of debt		1,870.5			706.7			5,921.8			6,944.9
Repayments of debt		(1,861.8	)		(572.5	)		(6,224.4	)		(6,611.2	)
Issuance of Convertible Notes		—			—			350.0			—
Dividends paid on common stock		(8.4	)		(8.6	)		(34.0	)		(31.0	)
Repurchases of common stock		(10.1	)		—			(60.1	)		(48.7	)
Purchase of convertible note hedges		—			—			(70.5	)		—
Sale of warrants		—			—			40.0			—
Payments of deferred consideration for acquisitions		—			(2.0	)		(62.9	)		(12.0	)
Other financing activities, net		(2.2	)		(1.3	)		(12.2	)		(4.6	)
Net cash provided by (used in) financing activities		(12.0	)		122.3			(152.4	)		237.3
Effect of exchange rate changes on cash and cash equivalents		(0.1	)		12.3			(12.0	)		(4.7	)
Net increase (decrease) in cash and cash equivalents		(31.3	)		18.1			5.9			(353.8	)
Cash and cash equivalents, as of the beginning of the period		335.6			280.3			298.4			652.2
Cash and cash equivalents, as of the end of the period	$	304.3		$	298.4		$	304.3		$	298.4

WORLD KINECT CORPORATION BUSINESS SEGMENTS INFORMATION (Unaudited - In millions)

	For the Three Months Ended December 31,						For the Year Ended December 31,
Revenue:		2023			2022			2023			2022
Aviation segment	$	5,874.3		$	6,683.9		$	23,275.1		$	26,799.9
Land segment		3,672.8			4,457.1			15,189.9			19,283.7
Marine segment		2,455.8			2,736.7			9,245.6			12,959.6
Total revenue	$	12,002.9		$	13,877.7		$	47,710.6		$	59,043.1
Gross profit:
Aviation segment	$	131.4		$	110.6		$	485.8		$	357.2
Land segment		57.0			115.8			399.8			475.9
Marine segment		44.0			56.0			172.6			256.0
Total gross profit	$	232.4		$	282.4		$	1,058.2		$	1,089.1
Income (loss) from operations:
Aviation segment	$	58.1		$	41.0		$	208.8		$	99.5
Land segment		(42.5	)		37.1			40.1			125.6
Marine segment		19.3			31.5			82.3			155.5
Corporate overhead - unallocated		(50.2	)		(30.7	)		(133.2	)		(107.4	)
Total income (loss) from operations	$	(15.3	)	$	78.8		$	198.0		$	273.2

SALES VOLUME SUPPLEMENTAL INFORMATION (Unaudited - In millions)

	For the Three Months Ended December 31,			For the Year Ended December 31,
Volume (Gallons):		2023	2022		2023	2022
Aviation Segment		1,784.0	1,801.4		7,328.0	7,127.6
Land Segment ⁽¹⁾		1,619.3	1,536.8		6,237.6	6,166.2
Marine Segment ⁽²⁾		1,129.7	1,236.3		4,440.8	5,037.5
Consolidated Total		4,533.0	4,574.5		18,006.4	18,331.4

⁽¹⁾	Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (kWh) for our power business.
⁽²⁾	Converted from metric tons to gallons at a rate of 264 gallons per metric ton. Marine segment metric tons were 4.3 and 4.7 for the three months ended December 31, 2023 and 2022, respectively; and 16.8 and 19.1 for the year ended December 31, 2023 and 2022, respectively.

WORLD KINECT CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited - In millions, except per share data)

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended December 31,												For the Year Ended December 31,
	2023						2022						2023						2022
	Net Income			Earnings per Share			Net Income			Earnings per Share			Net Income			Earnings per Share			Net Income			Earnings per Share
GAAP measure	$	(34.8	)	$	(0.58	)	$	20.9		$	0.33		$	52.9		$	0.86		$	114.1		$	1.82
Acquisition and divestiture related expenses		0.4			0.01			0.9			0.01			1.0			0.02			1.4			0.02
Loss (gain) on sale of business		(1.6	)		(0.03	)		7.7			0.12			(2.2	)		(0.04	)		7.7			0.12
Asset impairments		32.4			0.54			0.6			0.01			32.8			0.53			0.6			0.01
Integration costs		—			—			—			—			—			—			1.4			0.02
Finnish bid error		48.8			0.81			—			—			48.8			0.79			—			—
Restructuring charges		7.2			0.12			—			—			7.2			0.12			(0.8	)		(0.01	)
Non-operating legal settlements		—			—			6.5			0.10			—			—			6.5			0.10
Loss on debt extinguishment		—			—			—			—			—			—			0.7			0.01
Income tax impacts		(20.4	)		(0.34	)		(3.1	)		(0.05	)		(20.4	)		(0.33	)		(3.6	)		(0.06	)
Adjusted non-GAAP measure	$	32.2		$	0.54		$	33.5		$	0.54		$	120.0		$	1.95		$	127.9		$	2.04

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended December 31,					For the Year Ended December 31,
Reconciliation of GAAP to non-GAAP financial measures:		2023			2022		2023			2022
Net income (loss) including noncontrolling interest	$	(34.8	)	$	20.9	$	53.7		$	115.9
Interest expense and other financing costs, net		32.3			35.8		127.7			110.6
Provision (benefit) for income taxes		(11.8	)		6.5		13.0			29.2
Depreciation and amortization		26.7			27.6		104.5			107.8
EBITDA		12.4			90.9		298.9			363.5
Acquisition and divestiture related expenses		0.4			0.9		1.0			1.4
Loss (gain) on sale of business		(1.6	)		7.7		(2.2	)		7.7
Non-operating legal settlements		—			6.5		—			6.5
Asset impairments		32.4			0.6		32.8			0.6
Integration costs		—			—		—			1.4
Finnish bid error		48.8			—		48.8			—
Restructuring charges		7.2			—		7.2			(0.8	)
Adjusted EBITDA	$	99.8		$	106.5	$	386.4		$	380.3

WORLD KINECT CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED) (Unaudited - In millions, except per share data)

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended December 31,
	2023										2022
	Land⁽¹⁾		Consolidated								Land⁽¹⁾		Consolidated
	Gross Profit		Gross Profit		Operating Expenses			Operating Income			Gross Profit		Gross Profit		Operating Expenses			Operating Income
GAAP measure	$	57.0	$	232.4	$	247.7		$	(15.3	)	$	115.8	$	282.4	$	203.5		$	78.8	)
Acquisition and divestiture related expenses		—		—		(0.4	)		0.4			—		—		(0.9	)		0.9
Asset impairments		—		—		(32.4	)		32.4			—		—		(0.6	)		0.6
Finnish bid error		48.0		48.0		(0.8	)		48.8			—		—		—			—
Restructuring charges		—		—		(7.2	)		7.2			—		—		—			—
Adjusted non-GAAP measure	$	105.0	$	280.4	$	206.8		$	73.6		$	115.8	$	282.4	$	202.1		$	80.3

Reconciliation of GAAP to non-GAAP financial measures:	For the Year Ended December 31,
	2023									2022
	Land⁽¹⁾		Consolidated							Land⁽¹⁾		Consolidated
	Gross Profit		Gross Profit		Operating Expenses			Operating Income		Gross Profit		Gross Profit		Operating Expenses			Operating Income
GAAP measure	$	399.8	$	1,058.2	$	860.2		$	198.0	$	475.9	$	1,089.1	$	815.8		$	273.2
Acquisition and divestiture related expenses		—		—		(1.0	)		1.0		—		—		(1.4	)		1.4
Asset impairments		—		—		(32.8	)		32.8		—		—		(0.6	)		0.6
Integration costs		—		—		—			—		—		—		(1.4	)		1.4
Finnish bid error		48.0		48.0		(0.8	)		48.8		—		—		—			—
Restructuring charges		—		—		(7.2	)		7.2		—		—		0.8			(0.8	)
Adjusted non-GAAP measure	$	447.9	$	1,106.2	$	818.5		$	287.7	$	475.9	$	1,089.1	$	813.2		$	275.8

⁽¹⁾	Land segment gross profit. There are no adjustments to gross profit made for the aviation or marine segments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222287750/en/

Ira M. Birns, Executive Vice President & Chief Financial Officer

Elsa Ballard, Vice President of Investor Relations & Communications

investor@worldkinect.com

Source: World Kinect Corporation

FAQ

What was the revenue change for World Kinect Corporation (WKC) in Q4 2023 compared to Q4 2022?

Revenue for World Kinect Corporation (WKC) decreased by 14% in Q4 2023 compared to Q4 2022.

How did the net loss change for World Kinect Corporation (WKC) in Q4 2023 compared to Q4 2022?

The net loss for World Kinect Corporation (WKC) decreased by 266% in Q4 2023 compared to Q4 2022.

What was the gross profit change for the Aviation segment of World Kinect Corporation (WKC) in Q4 2023?

The Aviation segment of World Kinect Corporation (WKC) saw a 19% increase in gross profit in Q4 2023.

How did the Land segment of World Kinect Corporation (WKC) perform in terms of gross profit in Q4 2023?

The Land segment of World Kinect Corporation (WKC) experienced a 51% decrease in gross profit in Q4 2023, excluding a non-recurring item.

What was the adjusted EBITDA change for World Kinect Corporation (WKC) in Q4 2023 compared to Q4 2022?

Adjusted EBITDA for World Kinect Corporation (WKC) decreased by 6% in Q4 2023 compared to Q4 2022.

World Kinect Corporation Reports Fourth Quarter and Full Year 2023 Results

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