World Kinect Corporation Reports Fourth Quarter and Full Year 2024 Results
Fourth Quarter 2024 Highlights
-
Gross profit of
$259 million -
GAAP net loss of
, or$102 million per diluted share$1.77 -
Adjusted net income of
, or$36 million per diluted share$0.62 -
Generated
of operating cash flow$120 million -
Repurchased
of common stock$43 million -
Adjusted EBITDA of
$95 million
Year-Over-Year Segment Profitability
-
Aviation – Gross profit of
, a decrease of$120 million 8% , primarily driven by the sale of Avinode during the second quarter of 2024 and lower inventory-related profitability year-over-year, partially offset by growth in our commercial resale business as well as further growth in our business and general aviation activities. -
Land – Gross profit of
, an increase of$104 million 83% , driven primarily by a non-recurring item in the fourth quarter of 2023. Adjusted gross profit of , a decrease of$104 million 1% , driven by lower profit contribution from our sustainability-related offerings as well as unfavorable market conditions inBrazil , principally offset by improved performance in our core liquid fuel business inNorth America . -
Marine – Gross profit of
, a decrease of$34 million 22% , principally due to lower profit contribution from our resale businesses, driven primarily by reduced bunker fuel prices and market volatility year-over-year.
Fourth Quarter 2024 – Brazil Divestiture, Exit Activities and Impairments
-
We sold our
Brazil subsidiaries during the quarter ended December 31, 2024. As a result, we recorded a one-time, non-cash pre-tax loss of approximately during the fourth quarter, which included the recognition of cumulative translation losses of$111 million , which had no impact to shareholder equity or cash flows.$80 million -
Additionally, during the quarter ended December 31, 2024, we decided to take actions to exit certain operations within our North American land business. We recognized related pre-tax asset impairment and exit costs, including the write-off of certain accounts receivable, aggregating approximately
during the fourth quarter.$9 million -
We also recorded approximately
of additional asset impairments which were primarily related to an equity-method investment in a non-core business activity during the fourth quarter.$22 million
Full Year 2024 Highlights
-
Gross profit of
$1.03 billion -
GAAP net income of
, or$67 million per diluted share$1.13 -
Adjusted net income of
, or$130 million per diluted share$2.18 -
Generated
of operating cash flow$260 million -
Free cash flow of
$192 million -
Returned
to shareholders through share repurchases and dividends$139 million -
Adjusted EBITDA of
$361 million
Financial Summary
(Unaudited - in millions, except per share data)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Volume (1) |
|
|
4,472 |
|
|
|
4,533 |
|
|
(1 |
)% |
|
|
17,703 |
|
|
|
18,006 |
|
|
(2 |
)% |
Revenue |
|
$ |
9,761 |
|
|
$ |
12,003 |
|
|
(19 |
)% |
|
$ |
42,168 |
|
|
$ |
47,711 |
|
|
(12 |
)% |
Gross profit |
|
$ |
259 |
|
|
$ |
232 |
|
|
11 |
% |
|
$ |
1,026 |
|
|
$ |
1,058 |
|
|
(3 |
)% |
Adjusted gross profit |
|
$ |
259 |
|
|
$ |
280 |
|
|
(8 |
)% |
|
$ |
1,026 |
|
|
$ |
1,106 |
|
|
(7 |
)% |
Operating expenses |
|
$ |
229 |
|
|
$ |
248 |
|
|
(8 |
)% |
|
$ |
816 |
|
|
$ |
860 |
|
|
(5 |
)% |
Adjusted operating expenses |
|
$ |
197 |
|
|
$ |
207 |
|
|
(5 |
)% |
|
$ |
773 |
|
|
$ |
819 |
|
|
(6 |
)% |
Income (loss) from operations |
|
$ |
30 |
|
|
$ |
(15 |
) |
|
295 |
% |
|
$ |
211 |
|
|
$ |
198 |
|
|
6 |
% |
Operating margin |
|
|
12 |
% |
|
|
(7 |
)% |
|
|
|
|
21 |
% |
|
|
19 |
% |
|
|
||
Adjusted income from operations |
|
$ |
61 |
|
|
$ |
74 |
|
|
(16 |
)% |
|
$ |
253 |
|
|
$ |
288 |
|
|
(12 |
)% |
Adjusted operating margin |
|
|
24 |
% |
|
|
26 |
% |
|
|
|
|
25 |
% |
|
|
26 |
% |
|
|
||
Net income including noncontrolling interest |
|
$ |
(101 |
) |
|
$ |
(35 |
) |
|
(191 |
)% |
|
$ |
68 |
|
|
$ |
54 |
|
|
26 |
% |
Adjusted EBITDA |
|
$ |
95 |
|
|
$ |
100 |
|
|
(5 |
)% |
|
$ |
361 |
|
|
$ |
386 |
|
|
(6 |
)% |
Diluted earnings per common share |
|
$ |
(1.77 |
) |
|
$ |
(0.58 |
) |
|
(206 |
)% |
|
$ |
1.13 |
|
|
$ |
0.86 |
|
|
32 |
% |
Adjusted diluted earnings per common share |
|
$ |
0.62 |
|
|
$ |
0.54 |
|
|
15 |
% |
|
$ |
2.18 |
|
|
$ |
1.95 |
|
|
12 |
% |
(1) |
Includes gallons and gallon equivalents converted as described in the table below. |
"At the start of 2024, we held our Investor Day where we outlined our story and medium-term strategic objectives, and throughout the year, we took deliberate actions to advance these goals," said Michael J. Kasbar, Chairman and Chief Executive Officer." As we begin 2025, we continue to execute on these strategies to deliver enhanced shareholder returns."
"We generated
Earnings Conference Call
An investor conference call will be held today, February 20, 2025, at 5:00 PM Eastern Time to discuss fourth quarter and full year results. Participants can access the live webcast by visiting our website at ir.worldkinect.com. An on-demand replay of the webcast will be available shortly after the call.
About World Kinect Corporation
Headquartered in
For more information, visit world-kinect.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, costs associated with restructuring activities (including all costs associated with exit activities), 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. We also exclude 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, costs associated with restructuring activities (including all costs associated with exit activities), 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 ("Adjusted EPS") 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. For the purpose of calculating Adjusted EPS, the weighted average number of shares of common stock outstanding is adjusted to include the convertible note hedges. 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, settled stock appreciation rights awards, and the convertible notes.
- Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is defined as net income including noncontrolling interest and excluding the impact of interest, income taxes, and depreciation and amortization, in addition to acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), 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, costs associated with restructuring activities (including all costs associated with exit activities), 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 (as defined below).
- Adjusted operating expenses is defined as operating expenses excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), 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.
- Free cash flow is defined as operating cash flow minus total capital expenditures.
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 improved operating efficiencies, performance of our core businesses, and the achievement of our financial goals. 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. Our actual results may differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the results and events anticipated by such forward-looking statements include, but are not limited to: the imposition of tariffs in connection with the new
-- 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, 2024 |
|
December 31, 2023 |
||||
Assets: |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
382.9 |
|
|
$ |
304.3 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
2,432.6 |
|
|
|
2,735.5 |
|
Inventories |
|
|
513.5 |
|
|
|
664.6 |
|
Prepaid expenses |
|
|
71.4 |
|
|
|
77.6 |
|
Short-term derivative assets, net |
|
|
176.5 |
|
|
|
275.4 |
|
Other current assets |
|
|
382.2 |
|
|
|
446.4 |
|
Total current assets |
|
|
3,959.2 |
|
|
|
4,503.8 |
|
Property and equipment, net |
|
|
513.3 |
|
|
|
515.3 |
|
Goodwill |
|
|
1,181.7 |
|
|
|
1,238.0 |
|
Identifiable intangible assets, net |
|
|
261.2 |
|
|
|
299.7 |
|
Other non-current assets |
|
|
816.4 |
|
|
|
818.6 |
|
Total assets |
|
$ |
6,731.8 |
|
|
$ |
7,375.3 |
|
Liabilities: |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
84.0 |
|
|
$ |
78.8 |
|
Accounts payable |
|
|
2,726.5 |
|
|
|
3,097.6 |
|
Short-term derivative liabilities, net |
|
|
91.5 |
|
|
|
128.2 |
|
Accrued expenses and other current liabilities |
|
|
535.8 |
|
|
|
745.0 |
|
Total current liabilities |
|
|
3,437.8 |
|
|
|
4,049.7 |
|
Long-term debt |
|
|
796.8 |
|
|
|
809.1 |
|
Other long-term liabilities |
|
|
541.2 |
|
|
|
566.9 |
|
Total liabilities |
|
|
4,775.8 |
|
|
|
5,425.7 |
|
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
World Kinect shareholders' equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
0.6 |
|
|
|
0.6 |
|
Capital in excess of par value |
|
|
30.0 |
|
|
|
109.6 |
|
Retained earnings |
|
|
2,009.2 |
|
|
|
1,981.6 |
|
Accumulated other comprehensive income (loss) |
|
|
(91.0 |
) |
|
|
(148.9 |
) |
Total World Kinect shareholders' equity |
|
|
1,948.7 |
|
|
|
1,943.0 |
|
Noncontrolling interest |
|
|
7.2 |
|
|
|
6.7 |
|
Total equity |
|
|
1,955.9 |
|
|
|
1,949.6 |
|
Total liabilities and equity |
|
$ |
6,731.8 |
|
|
$ |
7,375.3 |
|
WORLD KINECT CORPORATION CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited – In millions, except per share data) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
9,760.5 |
|
|
$ |
12,002.9 |
|
|
$ |
42,168.0 |
|
|
$ |
47,710.6 |
|
Cost of revenue |
|
|
9,501.6 |
|
|
|
11,770.6 |
|
|
|
41,141.6 |
|
|
|
46,652.4 |
|
Gross profit |
|
|
258.9 |
|
|
|
232.4 |
|
|
|
1,026.4 |
|
|
|
1,058.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits |
|
|
124.9 |
|
|
|
136.0 |
|
|
|
482.5 |
|
|
|
512.3 |
|
General and administrative |
|
|
77.4 |
|
|
|
72.1 |
|
|
|
297.1 |
|
|
|
308.0 |
|
Asset impairments |
|
|
25.3 |
|
|
|
32.4 |
|
|
|
29.0 |
|
|
|
32.8 |
|
Restructuring charges |
|
|
1.4 |
|
|
|
7.2 |
|
|
|
7.1 |
|
|
|
7.2 |
|
Total operating expenses |
|
|
229.0 |
|
|
|
247.7 |
|
|
|
815.7 |
|
|
|
860.2 |
|
Income (loss) from operations |
|
|
29.9 |
|
|
|
(15.3 |
) |
|
|
210.6 |
|
|
|
198.0 |
|
Non-operating income (expenses), net: |
|
|
|
|
|
|
|
|
||||||||
Interest expense and other financing costs, net |
|
|
(21.8 |
) |
|
|
(32.3 |
) |
|
|
(102.2 |
) |
|
|
(127.7 |
) |
Other income (expense), net |
|
|
(109.3 |
) |
|
|
1.1 |
|
|
|
(12.9 |
) |
|
|
(3.6 |
) |
Total non-operating income (expense), net |
|
|
(131.1 |
) |
|
|
(31.3 |
) |
|
|
(115.1 |
) |
|
|
(131.3 |
) |
Income (loss) before income taxes |
|
|
(101.2 |
) |
|
|
(46.6 |
) |
|
|
95.5 |
|
|
|
66.7 |
|
Provision for income taxes |
|
|
— |
|
|
|
(11.8 |
) |
|
|
27.6 |
|
|
|
13.0 |
|
Net income (loss) including noncontrolling interest |
|
|
(101.2 |
) |
|
|
(34.8 |
) |
|
|
67.9 |
|
|
|
53.7 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
0.6 |
|
|
|
(0.1 |
) |
|
|
0.5 |
|
|
|
0.8 |
|
Net income (loss) attributable to World Kinect |
|
$ |
(101.8 |
) |
|
$ |
(34.8 |
) |
|
$ |
67.4 |
|
|
$ |
52.9 |
|
Basic earnings (loss) per common share |
|
$ |
(1.77 |
) |
|
$ |
(0.58 |
) |
|
$ |
1.14 |
|
|
$ |
0.86 |
|
Basic weighted average common shares |
|
|
57.5 |
|
|
|
60.1 |
|
|
|
59.0 |
|
|
|
61.4 |
|
Diluted earnings (loss) per common share |
|
$ |
(1.77 |
) |
|
$ |
(0.58 |
) |
|
$ |
1.13 |
|
|
$ |
0.86 |
|
Diluted weighted average common shares |
|
|
57.5 |
|
|
|
60.1 |
|
|
|
59.5 |
|
|
|
61.7 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
(101.2 |
) |
|
$ |
(34.8 |
) |
|
$ |
67.9 |
|
|
$ |
53.7 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
|
50.9 |
|
|
|
23.2 |
|
|
|
67.4 |
|
|
|
19.9 |
|
Cash flow hedges, net of income tax expense (benefit) of ( |
|
|
(0.8 |
) |
|
|
(1.7 |
) |
|
|
(9.6 |
) |
|
|
(8.1 |
) |
Total other comprehensive income (loss) |
|
|
50.1 |
|
|
|
21.5 |
|
|
|
57.9 |
|
|
|
11.8 |
|
Comprehensive income (loss) including noncontrolling interest |
|
|
(51.1 |
) |
|
|
(13.3 |
) |
|
|
125.8 |
|
|
|
65.5 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
0.6 |
|
|
|
(0.1 |
) |
|
|
0.5 |
|
|
|
0.8 |
|
Comprehensive income (loss) attributable to World Kinect |
|
$ |
(51.7 |
) |
|
$ |
(13.2 |
) |
|
$ |
125.3 |
|
|
$ |
64.7 |
|
WORLD KINECT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - In millions) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
(101.2 |
) |
|
$ |
(34.8 |
) |
|
$ |
67.9 |
|
|
$ |
53.7 |
|
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivatives |
|
|
(7.1 |
) |
|
|
(75.8 |
) |
|
|
24.9 |
|
|
|
(267.5 |
) |
(Gain) loss on sale of business |
|
|
111.2 |
|
|
|
(1.6 |
) |
|
|
15.2 |
|
|
|
(2.2 |
) |
Depreciation and amortization |
|
|
31.1 |
|
|
|
26.7 |
|
|
|
106.4 |
|
|
|
104.5 |
|
Noncash operating lease expense |
|
|
11.7 |
|
|
|
8.2 |
|
|
|
36.0 |
|
|
|
34.7 |
|
Provision for credit losses |
|
|
6.6 |
|
|
|
(0.5 |
) |
|
|
12.0 |
|
|
|
4.7 |
|
Share-based payment award compensation costs |
|
|
10.3 |
|
|
|
7.9 |
|
|
|
28.1 |
|
|
|
24.2 |
|
Deferred income tax expense (benefit) |
|
|
2.7 |
|
|
|
(26.4 |
) |
|
|
(15.3 |
) |
|
|
(30.7 |
) |
Unrealized foreign currency (gains) losses, net |
|
|
11.2 |
|
|
|
(7.0 |
) |
|
|
30.6 |
|
|
|
(16.5 |
) |
Asset impairment charges |
|
|
25.3 |
|
|
|
32.4 |
|
|
|
29.0 |
|
|
|
32.8 |
|
Other |
|
|
(0.4 |
) |
|
|
8.7 |
|
|
|
16.6 |
|
|
|
25.2 |
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
6.9 |
|
|
|
180.1 |
|
|
|
259.1 |
|
|
|
569.2 |
|
Inventories |
|
|
89.9 |
|
|
|
58.7 |
|
|
|
133.0 |
|
|
|
186.8 |
|
Prepaid expenses |
|
|
14.1 |
|
|
|
14.9 |
|
|
|
(2.3 |
) |
|
|
6.7 |
|
Other current assets |
|
|
17.5 |
|
|
|
7.8 |
|
|
|
20.7 |
|
|
|
(30.5 |
) |
Cash collateral with counterparties |
|
|
28.8 |
|
|
|
(19.9 |
) |
|
|
105.4 |
|
|
|
168.9 |
|
Other non-current assets |
|
|
(32.9 |
) |
|
|
(14.3 |
) |
|
|
(117.7 |
) |
|
|
(88.0 |
) |
Change in derivative assets and liabilities, net |
|
|
2.4 |
|
|
|
1.5 |
|
|
|
(3.4 |
) |
|
|
(4.7 |
) |
Accounts payable |
|
|
(2.3 |
) |
|
|
(225.0 |
) |
|
|
(355.9 |
) |
|
|
(441.9 |
) |
Accrued expenses and other current liabilities |
|
|
(120.9 |
) |
|
|
66.5 |
|
|
|
(164.1 |
) |
|
|
(48.0 |
) |
Other long-term liabilities |
|
|
15.2 |
|
|
|
(3.7 |
) |
|
|
33.7 |
|
|
|
(10.1 |
) |
Net cash provided by (used in) operating activities |
|
|
120.3 |
|
|
|
4.5 |
|
|
|
259.9 |
|
|
|
271.3 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Acquisition of business, net of cash acquired |
|
|
(40.0 |
) |
|
|
(13.7 |
) |
|
|
(40.0 |
) |
|
|
(13.7 |
) |
Proceeds from sale of business, net of divested cash |
|
|
8.9 |
|
|
|
9.3 |
|
|
|
209.0 |
|
|
|
9.3 |
|
Capital expenditures |
|
|
(17.8 |
) |
|
|
(19.8 |
) |
|
|
(68.2 |
) |
|
|
(87.6 |
) |
Other investing activities, net |
|
|
14.6 |
|
|
|
0.4 |
|
|
|
(36.3 |
) |
|
|
(9.1 |
) |
Net cash provided by (used in) investing activities |
|
|
(34.3 |
) |
|
|
(23.7 |
) |
|
|
64.5 |
|
|
|
(101.1 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Borrowings of debt |
|
|
1,097.0 |
|
|
|
1,870.5 |
|
|
|
3,844.0 |
|
|
|
5,921.8 |
|
Repayments of debt |
|
|
(1,110.1 |
) |
|
|
(1,861.8 |
) |
|
|
(3,876.2 |
) |
|
|
(6,224.4 |
) |
Issuance of Convertible Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
Dividends paid on common stock |
|
|
(9.9 |
) |
|
|
(8.4 |
) |
|
|
(38.5 |
) |
|
|
(34.0 |
) |
Repurchases of common stock |
|
|
(42.6 |
) |
|
|
(10.1 |
) |
|
|
(100.0 |
) |
|
|
(60.1 |
) |
Purchase of convertible note hedges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(70.5 |
) |
Sale of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40.0 |
|
Payments of deferred consideration for acquisitions |
|
|
(0.5 |
) |
|
|
— |
|
|
|
(51.8 |
) |
|
|
(62.9 |
) |
Other financing activities, net |
|
|
(1.9 |
) |
|
|
(2.2 |
) |
|
|
(8.0 |
) |
|
|
(12.2 |
) |
Net cash provided by (used in) financing activities |
|
|
(68.0 |
) |
|
|
(12.0 |
) |
|
|
(230.6 |
) |
|
|
(152.4 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(8.8 |
) |
|
|
(0.1 |
) |
|
|
(15.2 |
) |
|
|
(12.0 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
9.1 |
|
|
|
(31.3 |
) |
|
|
78.7 |
|
|
|
5.9 |
|
Cash and cash equivalents, as of the beginning of the period |
|
|
373.8 |
|
|
|
335.6 |
|
|
|
304.3 |
|
|
|
298.4 |
|
Cash and cash equivalents, as of the end of the period |
|
$ |
382.9 |
|
|
$ |
304.3 |
|
|
$ |
382.9 |
|
|
$ |
304.3 |
|
WORLD KINECT CORPORATION BUSINESS SEGMENTS INFORMATION (Unaudited - In millions) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
Revenue: |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Aviation segment |
|
$ |
4,737.8 |
|
|
$ |
5,874.3 |
|
|
$ |
20,469.1 |
|
|
$ |
23,275.1 |
|
Land segment |
|
|
2,951.1 |
|
|
|
3,672.8 |
|
|
|
12,811.7 |
|
|
|
15,189.9 |
|
Marine segment |
|
|
2,071.7 |
|
|
|
2,455.8 |
|
|
|
8,887.2 |
|
|
|
9,245.6 |
|
Total revenue |
|
$ |
9,760.5 |
|
|
$ |
12,002.9 |
|
|
$ |
42,168.0 |
|
|
$ |
47,710.6 |
|
Gross profit: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
120.3 |
|
|
$ |
131.4 |
|
|
$ |
485.5 |
|
|
$ |
485.8 |
|
Land segment |
|
|
104.4 |
|
|
|
57.0 |
|
|
|
384.4 |
|
|
|
399.8 |
|
Marine segment |
|
|
34.2 |
|
|
|
44.0 |
|
|
|
156.4 |
|
|
|
172.6 |
|
Total gross profit |
|
$ |
258.9 |
|
|
$ |
232.4 |
|
|
$ |
1,026.4 |
|
|
$ |
1,058.2 |
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
59.7 |
|
|
$ |
58.1 |
|
|
$ |
240.4 |
|
|
$ |
208.8 |
|
Land segment |
|
|
11.7 |
|
|
|
(42.5 |
) |
|
|
41.1 |
|
|
|
40.1 |
|
Marine segment |
|
|
12.7 |
|
|
|
19.3 |
|
|
|
64.8 |
|
|
|
82.3 |
|
Corporate overhead - unallocated |
|
|
(54.3 |
) |
|
|
(50.2 |
) |
|
|
(135.7 |
) |
|
|
(133.2 |
) |
Total income (loss) from operations |
|
$ |
29.9 |
|
|
$ |
(15.3 |
) |
|
$ |
210.6 |
|
|
$ |
198.0 |
|
SALES VOLUME SUPPLEMENTAL INFORMATION (Unaudited - In millions) |
||||||||
|
|
For the Three Months Ended
|
|
For the Year Ended
|
||||
Volume (Gallons): |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Aviation Segment. |
|
1,847.8 |
|
1,784.0 |
|
7,250.5 |
|
7,328.0 |
Land Segment (1) |
|
1,535.2 |
|
1,619.3 |
|
6,078.1 |
|
6,237.6 |
Marine Segment (2) |
|
1,089.5 |
|
1,129.7 |
|
4,374.1 |
|
4,440.8 |
Consolidated Total |
|
4,472.4 |
|
4,533.0 |
|
17,702.6 |
|
18,006.4 |
(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 4.1 and 4.3 for the three months ended December 31, 2024 and 2023, respectively; and 16.6 and 16.8 for the year ended December 31, 2024 and 2023, 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, |
||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||||
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
|
Net
|
|
Diluted
|
|||||||||||||||
GAAP measure |
|
$ |
(101.8 |
) |
|
$ |
(1.77 |
) |
|
$ |
(34.8 |
) |
|
$ |
(0.58 |
) |
|
$ |
67.4 |
|
$ |
1.13 |
|
$ |
52.9 |
|
|
$ |
0.86 |
|
Impact of adjustments to weighted average diluted shares outstanding (1) |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Acquisition and divestiture related expenses |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
0.4 |
|
|
|
0.01 |
|
|
|
0.4 |
|
|
0.01 |
|
|
1.0 |
|
|
|
0.02 |
|
(Gain) loss on sale of business |
|
|
111.3 |
|
|
|
1.92 |
|
|
|
(1.6 |
) |
|
|
(0.03 |
) |
|
|
15.1 |
|
|
0.25 |
|
|
(2.2 |
) |
|
|
(0.04 |
) |
Asset impairments |
|
|
25.3 |
|
|
|
0.44 |
|
|
|
32.4 |
|
|
|
0.54 |
|
|
|
29.0 |
|
|
0.49 |
|
|
32.8 |
|
|
|
0.53 |
|
Exit costs - provision for credit losses |
|
|
4.4 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
|
|
4.4 |
|
|
0.07 |
|
|
— |
|
|
|
— |
|
Finnish bid error |
|
|
0.1 |
|
|
|
— |
|
|
|
48.8 |
|
|
|
0.81 |
|
|
|
1.3 |
|
|
0.02 |
|
|
48.8 |
|
|
|
0.79 |
|
Restructuring charges |
|
|
1.4 |
|
|
|
0.02 |
|
|
|
7.2 |
|
|
|
0.12 |
|
|
|
7.1 |
|
|
0.12 |
|
|
7.2 |
|
|
|
0.12 |
|
Income tax impacts |
|
|
(5.0 |
) |
|
|
(0.09 |
) |
|
|
(20.4 |
) |
|
|
(0.34 |
) |
|
|
4.9 |
|
|
0.08 |
|
|
(20.4 |
) |
|
|
(0.33 |
) |
Adjusted non-GAAP measure |
|
$ |
36.0 |
|
|
$ |
0.62 |
|
|
$ |
32.2 |
|
|
$ |
0.54 |
|
|
$ |
129.7 |
|
$ |
2.18 |
|
$ |
120.0 |
|
|
$ |
1.95 |
|
(1) |
For the three months ended December 31, 2024, Adjusted diluted earnings per share is calculated considering the impact of dilutive shares that were not considered for GAAP purposes as the quarter is in a net loss position, and considers the convertible note hedges as described under “Non-GAAP Financial Measures” above. GAAP weighted-average shares outstanding was 57.5 million, there were 0.7 million dilutive shares outstanding and the impact of the convertible note hedge was 0.2 million shares, resulting in a non-GAAP weighted average shares outstanding of 58.0 million. For the three months ended December 31, 2023, the dilutive shares outstanding that were excluded due to the GAAP net loss for the period did not impact the calculation of Adjusted EPS. There are no adjustments made to diluted weighted-average shares outstanding for any other period presented. |
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Three Months Ended
|
|
For the Year Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
Net income (loss) including noncontrolling interest |
|
$ |
(101.2 |
) |
|
$ |
(34.8 |
) |
|
$ |
67.9 |
|
$ |
53.7 |
|
Interest expense and other financing costs, net |
|
|
21.8 |
|
|
|
32.3 |
|
|
|
102.2 |
|
|
127.7 |
|
Provision (benefit) for income taxes |
|
|
— |
|
|
|
(11.8 |
) |
|
|
27.6 |
|
|
13.0 |
|
Depreciation and amortization |
|
|
31.1 |
|
|
|
26.7 |
|
|
|
106.4 |
|
|
104.5 |
|
EBITDA |
|
|
(48.3 |
) |
|
|
12.4 |
|
|
|
304.0 |
|
|
298.9 |
|
Acquisition and divestiture related expenses |
|
|
0.4 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
1.0 |
|
(Gain) loss on sale of business |
|
|
111.3 |
|
|
|
(1.6 |
) |
|
|
15.1 |
|
|
(2.2 |
) |
Asset impairments |
|
|
25.3 |
|
|
|
32.4 |
|
|
|
29.0 |
|
|
32.8 |
|
Exit costs - provision for credit losses |
|
|
4.4 |
|
|
|
— |
|
|
|
4.4 |
|
|
— |
|
Finnish bid error |
|
|
0.1 |
|
|
|
48.8 |
|
|
|
1.3 |
|
|
48.8 |
|
Restructuring charges |
|
|
1.4 |
|
|
|
7.2 |
|
|
|
7.1 |
|
|
7.2 |
|
Adjusted EBITDA |
|
$ |
94.5 |
|
|
$ |
99.8 |
|
|
$ |
361.5 |
|
$ |
386.4 |
|
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Three Months Ended December 31, |
|||||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||||||
|
Land (1) |
|
Consolidated |
|
Land (1) |
|
Consolidated |
||||||||||||||||||||
|
Gross
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Gross
|
|
Gross
|
|
Operating
|
|
Operating
|
||||||||||||
GAAP measure |
|
$ |
104.4 |
|
$ |
258.9 |
|
$ |
229.0 |
|
|
$ |
29.9 |
|
$ |
57.0 |
|
$ |
232.4 |
|
$ |
247.7 |
|
|
$ |
(15.3 |
) |
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
(0.4 |
) |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
(0.4 |
) |
|
|
0.4 |
|
Asset impairments |
|
|
— |
|
|
— |
|
|
(25.3 |
) |
|
|
25.3 |
|
|
— |
|
|
— |
|
|
(32.4 |
) |
|
|
32.4 |
|
Exit costs - provision for credit losses |
|
|
— |
|
|
— |
|
|
(4.4 |
) |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
Finnish bid error |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
48.0 |
|
|
48.0 |
|
|
(0.8 |
) |
|
|
48.8 |
|
Restructuring charges |
|
|
— |
|
|
— |
|
|
(1.4 |
) |
|
|
1.4 |
|
|
— |
|
|
— |
|
|
(7.2 |
) |
|
|
7.2 |
|
Adjusted non-GAAP measure |
|
$ |
104.4 |
|
$ |
258.9 |
|
$ |
197.4 |
|
|
$ |
61.5 |
|
$ |
105.0 |
|
$ |
280.4 |
|
$ |
206.8 |
|
|
$ |
73.6 |
|
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Year Ended December 31, |
||||||||||||||||||||||||
|
2024 |
|
2023 |
|||||||||||||||||||||||
|
Land (1) |
|
Consolidated |
|
Land (1) |
|
Consolidated |
|||||||||||||||||||
|
Gross
|
|
Gross
|
|
Operating
|
|
Operating
|
|
Gross
|
|
Gross
|
|
Operating
|
|
Operating
|
|||||||||||
GAAP measure |
|
$ |
384.4 |
|
$ |
1,026.4 |
|
$ |
815.7 |
|
|
$ |
210.6 |
|
$ |
399.8 |
|
$ |
1,058.2 |
|
$ |
860.2 |
|
|
$ |
198.0 |
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
(0.4 |
) |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
(1.0 |
) |
|
|
1.0 |
Asset impairments |
|
|
— |
|
|
— |
|
|
(29.0 |
) |
|
|
29.0 |
|
|
— |
|
|
— |
|
|
(32.8 |
) |
|
|
32.8 |
Exit costs - provision for credit losses |
|
|
— |
|
|
— |
|
|
(4.4 |
) |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Finnish bid error |
|
|
— |
|
|
— |
|
|
(1.3 |
) |
|
|
1.3 |
|
|
48.0 |
|
|
48.0 |
|
|
(0.8 |
) |
|
|
48.8 |
Restructuring charges |
|
|
— |
|
|
— |
|
|
(7.1 |
) |
|
|
7.1 |
|
|
— |
|
|
— |
|
|
(7.2 |
) |
|
|
7.2 |
Adjusted non-GAAP measure |
|
$ |
384.4 |
|
$ |
1,026.4 |
|
$ |
773.5 |
|
|
$ |
252.9 |
|
$ |
447.9 |
|
$ |
1,106.2 |
|
$ |
818.5 |
|
|
$ |
287.7 |
(1) |
Land segment gross profit. There are no adjustments to gross profit made for the aviation or marine segments. |
Reconciliation of GAAP to non-GAAP financial measure: |
|
For the Three Months Ended
|
|
For the Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net cash provided by (used in) operating activities |
|
$ |
120.3 |
|
|
$ |
4.5 |
|
|
$ |
259.9 |
|
|
$ |
271.3 |
|
Capital expenditures |
|
|
(17.8 |
) |
|
|
(19.8 |
) |
|
|
(68.2 |
) |
|
|
(87.6 |
) |
Free cash flow |
|
$ |
102.4 |
|
|
$ |
(15.2 |
) |
|
$ |
191.7 |
|
|
$ |
183.7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220322296/en/
Ira M. Birns, Executive Vice President & Chief Financial Officer
Braulio Medrano, Senior Director FP&A and Investor Relations
investor@worldkinect.com
Source: World Kinect Corporation