World Kinect Corporation Reports Second Quarter 2024 Results
World Kinect (NYSE: WKC) reported its Q2 2024 financial results. Key highlights include:
- Revenue of $11.0 billion, flat year-over-year
- Gross profit of $245.2 million, down 13%
- Net income of $108.3 million, up 262% (including $86.9 million after-tax gain on sale)
- Adjusted EBITDA of $80.9 million, down 18%
The Aviation segment performed well, while the Land business faced unfavorable market conditions. The company sold Avinode Group and is focusing on streamlining its Land portfolio. Cash flow from operations was $68 million, enhancing liquidity for core business investments and shareholder returns.
World Kinect (NYSE: WKC) ha riportato i risultati finanziari del secondo trimestre 2024. I punti salienti includono:
- Ricavi di 11,0 miliardi di dollari, stabili rispetto all'anno precedente
- Utile lordo di 245,2 milioni di dollari, in calo del 13%
- Utile netto di 108,3 milioni di dollari, in aumento del 262% (incluso un guadagno dopo le tasse di 86,9 milioni di dollari sulla vendita)
- EBITDA rettificato di 80,9 milioni di dollari, in diminuzione del 18%
Il segmento Aeronautico ha registrato buone performance, mentre il settore Terrestre ha dovuto affrontare condizioni di mercato sfavorevoli. L'azienda ha venduto Avinode Group e si sta concentrando sulla razionalizzazione del suo portafoglio Terrestre. Il flusso di cassa dalle operazioni è stato di 68 milioni di dollari, migliorando la liquidità per investimenti nel core business e per i ritorni agli azionisti.
World Kinect (NYSE: WKC) reportó sus resultados financieros del segundo trimestre de 2024. Los aspectos destacados incluyen:
- Ingresos de 11,0 mil millones de dólares, sin cambios en comparación con el año anterior
- Beneficio bruto de 245,2 millones de dólares, una disminución del 13%
- Ingreso neto de 108,3 millones de dólares, un aumento del 262% (incluyendo una ganancia de 86,9 millones de dólares después de impuestos por la venta)
- EBITDA ajustado de 80,9 millones de dólares, una caída del 18%
El segmento de Aviación tuvo un buen desempeño, mientras que el negocio de Tierra enfrentó condiciones de mercado desfavorables. La compañía vendió Avinode Group y se está enfocando en optimizar su cartera de Tierra. El flujo de caja de las operaciones fue de 68 millones de dólares, mejorando la liquidez para inversiones en el negocio principal y retornos a los accionistas.
월드 키넥트 (NYSE: WKC)가 2024년 2분기 금융 결과를 보고했습니다. 주요 내용은 다음과 같습니다:
- 수익 110억 달러, 전년 대비 변화 없음
- 총 이익 2억 4,520만 달러, 13% 감소
- 순이익 1억 8,300만 달러, 262% 증가 (세후 판매 이익 8,690만 달러 포함)
- 조정된 EBITDA 8,090만 달러, 18% 감소
항공 부문은 좋은 성과를 보인 반면, 육상 사업은 불리한 시장 상황에 직면했습니다. 회사는 Avinode Group을 매각하고 육상 포트폴리오를 간소화하는 데 집중하고 있습니다. 운영에서의 현금 흐름은 6,800만 달러로, 핵심 사업 투자 및 주주 환원을 위한 유동성을 향상시켰습니다.
World Kinect (NYSE: WKC) a publié ses résultats financiers du deuxième trimestre 2024. Les faits saillants incluent :
- Un chiffre d'affaires de 11,0 milliards de dollars, stable par rapport à l'année précédente
- Un bénéfice brut de 245,2 millions de dollars, en baisse de 13%
- Un revenu net de 108,3 millions de dollars, en hausse de 262% (incluant un gain d'après impôt de 86,9 millions de dollars provenant de la vente)
- Un EBITDA ajusté de 80,9 millions de dollars, en baisse de 18%
Le segment Aviation a bien performé, tandis que l'activité Terrestre a rencontré des conditions de marché défavorables. L'entreprise a vendu Avinode Group et se concentre sur la rationalisation de son portefeuille Terrestre. Le flux de trésorerie provenant des opérations était de 68 millions de dollars, améliorant la liquidité pour les investissements dans les activités principales et les retours aux actionnaires.
World Kinect (NYSE: WKC) hat seine finanziellen Ergebnisse des zweiten Quartals 2024 veröffentlicht. Wichtige Highlights sind:
- Umsatz von 11,0 Milliarden US-Dollar, unverändert im Vergleich zum Vorjahr
- Bruttogewinn von 245,2 Millionen US-Dollar, ein Rückgang von 13%
- Nettoeinkommen von 108,3 Millionen US-Dollar, ein Anstieg von 262% (einschließlich eines nach Steuern realisierten Gewinns von 86,9 Millionen US-Dollar aus dem Verkauf)
- Bereinigtes EBITDA von 80,9 Millionen US-Dollar, ein Rückgang von 18%
Das Luftfahrtsegment schnitt gut ab, während das Landgeschäft ungünstigen Marktbedingungen gegenüberstand. Das Unternehmen hat die Avinode Group verkauft und konzentriert sich darauf, sein Landportfolio zu straffen. Der Cashflow aus dem operativen Geschäft betrug 68 Millionen US-Dollar und verbesserte die Liquidität für Investitionen in das Kerngeschäft und die Rückflüsse an die Aktionäre.
- Net income increased 262% to $108.3 million
- Aviation segment gross profit remained flat at $127.7 million despite Avinode sale
- Strong operating cash flow of $68 million
- Increased liquidity from Avinode sale proceeds
- Overall gross profit decreased 13% to $245.2 million
- Adjusted EBITDA declined 18% to $80.9 million
- Land segment gross profit fell 28% due to unfavorable market conditions
- Marine segment gross profit decreased 13% due to reduced market volatility
Insights
World Kinect 's Q2 2024 results present a mixed picture, with some concerning trends but also positive developments. Revenue remained flat at $11.0 billion, while gross profit declined 13% to $245.2 million. This suggests pressure on margins, likely due to challenging market conditions.
The standout figure is the 262% increase in net income to $108.3 million. However, this includes an after-tax gain of $86.9 million from the sale of Avinode Group. Excluding this one-time gain, core profitability appears to have declined significantly. The 18% drop in Adjusted EBITDA to $80.9 million provides a clearer picture of the underlying business performance.
Segment-wise, Aviation held steady, while Land and Marine segments saw substantial declines:
- Aviation: Gross profit flat at $127.7 million
- Land: Gross profit down 28% to $80.8 million
- Marine: Gross profit down 13% to $36.7 million
The company's focus on expense control and working capital management is positive, generating $68 million in operating cash flow. This, combined with proceeds from the Avinode sale, strengthens the company's liquidity position.
Overall, while the headline numbers look impressive due to the asset sale, the core business appears to be facing headwinds, particularly in the Land segment. Investors should monitor whether management's efforts to streamline operations and focus on core activities will lead to improved performance in coming quarters.
World Kinect's Q2 results reflect broader market dynamics affecting the energy sector. The 2% decline in volume to 4,373 million gallons indicates softening demand, possibly due to economic uncertainties or shifts towards alternative energy sources.
The Land segment's poor performance, with a 28% drop in gross profit, highlights the challenges in North America and Brazil. This could be attributed to:
- Oversupply in natural gas markets
- Reduced volatility limiting trading opportunities
- Potential shift towards renewable energy sources
The Aviation segment's resilience is noteworthy, maintaining flat gross profit despite the Avinode Group sale. This suggests underlying strength in core aviation services, possibly benefiting from increased travel demand post-pandemic.
The Marine segment's 13% decline in gross profit likely reflects normalizing shipping activity and fuel prices compared to the volatile post-pandemic period.
The company's strategic moves, including the Avinode sale and focus on streamlining the Land portfolio, indicate a shift towards higher-margin, more stable revenue streams. This aligns with industry trends of consolidation and focus on core competencies.
Looking ahead, World Kinect's performance will likely be influenced by:
- Global economic conditions affecting energy demand
- Volatility in energy markets
- Progress in portfolio optimization efforts
- Ability to capitalize on aviation sector recovery
Investors should watch for signs of improvement in the Land segment and the company's success in redeploying capital from divestitures into growth areas.
Results compared to the same period last year are as follows (unaudited - in millions, except percentages and per share data):
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||
Volume (1) |
|
|
4,373 |
|
|
|
4,465 |
|
|
(2 |
)% |
|
|
8,787 |
|
|
|
8,937 |
|
|
(2 |
)% |
Revenue |
|
$ |
10,965 |
|
|
$ |
10,981 |
|
|
— |
% |
|
$ |
21,917 |
|
|
$ |
23,462 |
|
|
(7 |
)% |
Gross profit |
|
$ |
245 |
|
|
$ |
282 |
|
|
(13 |
)% |
|
$ |
499 |
|
|
$ |
544 |
|
|
(8 |
)% |
Operating expenses |
|
$ |
200 |
|
|
$ |
206 |
|
|
(3 |
)% |
|
$ |
391 |
|
|
$ |
404 |
|
|
(3 |
)% |
Adjusted operating expenses |
|
$ |
192 |
|
|
$ |
205 |
|
|
(7 |
)% |
|
$ |
381 |
|
|
$ |
404 |
|
|
(5 |
)% |
Income (loss) from operations |
|
$ |
45 |
|
|
$ |
76 |
|
|
(40 |
)% |
|
$ |
108 |
|
|
$ |
140 |
|
|
(23 |
)% |
Operating margin |
|
|
18 |
% |
|
|
27 |
% |
|
|
|
|
22 |
% |
|
|
26 |
% |
|
|
||
Adjusted income from operations |
|
$ |
54 |
|
|
$ |
76 |
|
|
(30 |
)% |
|
$ |
118 |
|
|
$ |
141 |
|
|
(16 |
)% |
Adjusted operating margin |
|
|
22 |
% |
|
|
27 |
% |
|
|
|
|
24 |
% |
|
|
26 |
% |
|
|
||
Net income including noncontrolling interest |
|
$ |
107 |
|
|
$ |
30 |
|
|
251 |
% |
|
$ |
134 |
|
|
$ |
53 |
|
|
153 |
% |
Adjusted EBITDA |
|
$ |
81 |
|
|
$ |
99 |
|
|
(18 |
)% |
|
$ |
167 |
|
|
$ |
186 |
|
|
(10 |
)% |
Diluted earnings per common share |
|
$ |
1.81 |
|
|
$ |
0.48 |
|
|
277 |
% |
|
$ |
2.25 |
|
|
$ |
0.84 |
|
|
168 |
% |
Adjusted diluted earnings per common share |
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
— |
% |
|
$ |
0.94 |
|
|
$ |
0.84 |
|
|
12 |
% |
(1) Includes gallons and gallon equivalents converted as described in the table below. |
"While our Land business faced unusually unfavorable market conditions this quarter, our Aviation business performed very well and is poised with strong momentum heading into the second half of the year," said Michael Kasbar, Chairman and Chief Executive Officer. "We made progress in sharpening our portfolio through the sale of Avinode and remain focused on streamlining our Land portfolio for increased ratability and improved operating leverage."
"Our continued focus on expense control and working capital management resulted in
Second Quarter 2024 Compared to 2023
Year-Over-Year Highlights
-
Revenue of
, effectively flat year-over-year.$11.0 billion -
Gross profit of
, a decrease of$245.2 million 13% . -
Net income of
, an increase of$108.3 million 262% (including an after-tax gain on sale of ).$86.9 million -
Adjusted EBITDA of
, a decrease of$80.9 million 18% .
Year-Over-Year Segment Profitability
-
Aviation – Gross profit of
, effectively flat year-over-year. Aviation continued to benefit from improved year over year returns in our core business and further improvement in performance in our operated airport locations. These benefits were generally offset by the impact of the sale of the Avinode Group during the quarter.$127.7 million -
Land – Gross profit of
, a decrease of$80.8 million 28% , driven by unfavorable market conditions inNorth America andBrazil , as well as lower profit contribution from our natural gas business as a result of oversupplied market conditions and lower market volatility. -
Marine – Gross profit of
, a decrease of$36.7 million 13% , principally due to reduced market volatility year-over-year.
Year-to-Date 2024 Compared to 2023
Year-Over-Year Highlights
-
Revenue of
, a decrease of$21.9 billion 7% . -
Gross profit of
, a decrease of$499.3 million 8% . -
Net income of
, an increase of$135.7 million 157% (including an after-tax gain on sale of ).$86.9 million -
Adjusted EBITDA of
, a decrease of$166.8 million 10% .
Year-Over-Year Segment Profitability
-
Aviation – Gross profit of
, an increase of$236.2 million 3% -
Land – Gross profit of
, a decrease of$178.1 million 20% . -
Marine – Gross profit of
, a decrease of$85.0 million 10% .
Earnings Conference Call
An investor conference call will be held today, July 25, 2024, at 5:00 PM Eastern Time to discuss second quarter 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, 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. 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, 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 including noncontrolling interest and 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 (as defined below).
- 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 improved operating efficiencies, 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. 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 technology or security related incidents on us, our customers or other parties; changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in
-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --
WORLD KINECT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - In millions, except per share data) |
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets: |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
524.6 |
|
|
$ |
304.3 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
2,592.0 |
|
|
|
2,735.5 |
|
Inventories |
|
|
646.7 |
|
|
|
664.6 |
|
Prepaid expenses |
|
|
83.3 |
|
|
|
77.6 |
|
Short-term derivative assets, net |
|
|
188.4 |
|
|
|
275.4 |
|
Other current assets |
|
|
360.6 |
|
|
|
446.4 |
|
Total current assets |
|
|
4,395.6 |
|
|
|
4,503.8 |
|
Property and equipment, net |
|
|
495.3 |
|
|
|
515.3 |
|
Goodwill |
|
|
1,174.9 |
|
|
|
1,238.0 |
|
Identifiable intangible assets, net |
|
|
275.8 |
|
|
|
299.7 |
|
Other non-current assets |
|
|
847.6 |
|
|
|
818.6 |
|
Total assets |
|
$ |
7,189.2 |
|
|
$ |
7,375.3 |
|
Liabilities: |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
81.4 |
|
|
$ |
78.8 |
|
Accounts payable |
|
|
2,975.9 |
|
|
|
3,097.6 |
|
Short-term derivative liabilities, net |
|
|
101.2 |
|
|
|
128.2 |
|
Accrued expenses and other current liabilities |
|
|
660.4 |
|
|
|
745.0 |
|
Total current liabilities |
|
|
3,818.9 |
|
|
|
4,049.7 |
|
Long-term debt |
|
|
797.8 |
|
|
|
809.1 |
|
Other long-term liabilities |
|
|
535.1 |
|
|
|
566.9 |
|
Total liabilities |
|
|
5,151.8 |
|
|
|
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 |
|
|
87.0 |
|
|
|
109.6 |
|
Retained earnings |
|
|
2,097.0 |
|
|
|
1,981.6 |
|
Accumulated other comprehensive income (loss) |
|
|
(152.3 |
) |
|
|
(148.9 |
) |
Total World Kinect shareholders' equity |
|
|
2,032.3 |
|
|
|
1,943.0 |
|
Noncontrolling interest |
|
|
5.1 |
|
|
|
6.7 |
|
Total equity |
|
|
2,037.4 |
|
|
|
1,949.6 |
|
Total liabilities and equity |
|
$ |
7,189.2 |
|
|
$ |
7,375.3 |
|
WORLD KINECT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited – In millions, except per share data) |
||||||||||||||||
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
10,965.2 |
|
|
$ |
10,980.7 |
|
|
$ |
21,916.6 |
|
|
$ |
23,462.3 |
|
Cost of revenue |
|
|
10,720.0 |
|
|
|
10,699.0 |
|
|
|
21,417.2 |
|
|
|
22,917.9 |
|
Gross profit |
|
|
245.2 |
|
|
|
281.7 |
|
|
|
499.3 |
|
|
|
544.4 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits |
|
|
119.2 |
|
|
|
125.1 |
|
|
|
234.7 |
|
|
|
244.2 |
|
General and administrative |
|
|
72.8 |
|
|
|
80.8 |
|
|
|
147.9 |
|
|
|
159.8 |
|
Asset impairments |
|
|
2.4 |
|
|
|
0.3 |
|
|
|
2.4 |
|
|
|
0.3 |
|
Restructuring charges |
|
|
5.6 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
Total operating expenses |
|
|
200.0 |
|
|
|
206.2 |
|
|
|
390.9 |
|
|
|
404.3 |
|
Income (loss) from operations |
|
|
45.2 |
|
|
|
75.5 |
|
|
|
108.5 |
|
|
|
140.1 |
|
Non-operating income (expenses), net: |
|
|
|
|
|
|
|
|
||||||||
Interest expense and other financing costs, net |
|
|
(27.5 |
) |
|
|
(32.5 |
) |
|
|
(56.4 |
) |
|
|
(66.8 |
) |
Other income (expense), net |
|
|
98.9 |
|
|
|
(2.8 |
) |
|
|
95.0 |
|
|
|
(6.3 |
) |
Total non-operating income (expense), net |
|
|
71.4 |
|
|
|
(35.3 |
) |
|
|
38.6 |
|
|
|
(73.1 |
) |
Income (loss) before income taxes |
|
|
116.6 |
|
|
|
40.3 |
|
|
|
147.1 |
|
|
|
67.0 |
|
Provision for income taxes |
|
|
9.7 |
|
|
|
9.8 |
|
|
|
13.0 |
|
|
|
14.0 |
|
Net income (loss) including noncontrolling interest |
|
|
106.9 |
|
|
|
30.5 |
|
|
|
134.1 |
|
|
|
53.0 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(1.4 |
) |
|
|
0.5 |
|
|
|
(1.6 |
) |
|
|
0.3 |
|
Net income (loss) attributable to World Kinect |
|
$ |
108.3 |
|
|
$ |
29.9 |
|
|
$ |
135.7 |
|
|
$ |
52.7 |
|
Basic earnings (loss) per common share |
|
$ |
1.81 |
|
|
$ |
0.48 |
|
|
$ |
2.27 |
|
|
$ |
0.85 |
|
Basic weighted average common shares |
|
|
59.8 |
|
|
|
62.3 |
|
|
|
59.9 |
|
|
|
62.4 |
|
Diluted earnings (loss) per common share |
|
$ |
1.81 |
|
|
$ |
0.48 |
|
|
$ |
2.25 |
|
|
$ |
0.84 |
|
Diluted weighted average common shares |
|
|
60.0 |
|
|
|
62.5 |
|
|
|
60.3 |
|
|
|
62.8 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
106.9 |
|
|
$ |
30.5 |
|
|
$ |
134.1 |
|
|
$ |
53.0 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
|
11.2 |
|
|
|
9.1 |
|
|
|
(0.6 |
) |
|
|
14.8 |
|
Cash flow hedges, net of income tax expense (benefit) of ( |
|
|
(1.8 |
) |
|
|
1.1 |
|
|
|
(2.8 |
) |
|
|
(1.1 |
) |
Total other comprehensive income (loss) |
|
|
9.4 |
|
|
|
10.2 |
|
|
|
(3.4 |
) |
|
|
13.7 |
|
Comprehensive income (loss) including noncontrolling interest |
|
|
116.3 |
|
|
|
40.7 |
|
|
|
130.7 |
|
|
|
66.8 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
(1.4 |
) |
|
|
0.5 |
|
|
|
(1.6 |
) |
|
|
0.3 |
|
Comprehensive income (loss) attributable to World Kinect |
|
$ |
117.7 |
|
|
$ |
40.1 |
|
|
$ |
132.2 |
|
|
$ |
66.4 |
|
WORLD KINECT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - In millions) |
||||||||||||||||
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
106.9 |
|
|
$ |
30.5 |
|
|
$ |
134.1 |
|
|
$ |
53.0 |
|
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivatives |
|
|
29.7 |
|
|
|
(52.0 |
) |
|
|
46.4 |
|
|
|
(146.1 |
) |
(Gain) loss on sale of business |
|
|
(96.0 |
) |
|
|
— |
|
|
|
(96.0 |
) |
|
|
— |
|
Depreciation and amortization |
|
|
24.4 |
|
|
|
25.8 |
|
|
|
49.8 |
|
|
|
51.7 |
|
Noncash operating lease expense |
|
|
7.7 |
|
|
|
10.4 |
|
|
|
16.0 |
|
|
|
19.0 |
|
Provision for credit losses |
|
|
1.0 |
|
|
|
2.2 |
|
|
|
4.0 |
|
|
|
2.5 |
|
Share-based payment award compensation costs |
|
|
6.0 |
|
|
|
4.0 |
|
|
|
11.8 |
|
|
|
10.1 |
|
Deferred income tax expense (benefit) |
|
|
(5.6 |
) |
|
|
2.7 |
|
|
|
(31.5 |
) |
|
|
(0.1 |
) |
Unrealized foreign currency (gains) losses, net |
|
|
(0.3 |
) |
|
|
5.0 |
|
|
|
14.1 |
|
|
|
(10.1 |
) |
Other |
|
|
7.7 |
|
|
|
5.3 |
|
|
|
14.1 |
|
|
|
10.5 |
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
78.6 |
|
|
|
524.6 |
|
|
|
114.7 |
|
|
|
820.4 |
|
Inventories |
|
|
7.2 |
|
|
|
66.6 |
|
|
|
18.5 |
|
|
|
228.0 |
|
Prepaid expenses |
|
|
(9.7 |
) |
|
|
(3.4 |
) |
|
|
(10.4 |
) |
|
|
(1.4 |
) |
Other current assets |
|
|
(20.9 |
) |
|
|
(35.8 |
) |
|
|
16.1 |
|
|
|
(27.8 |
) |
Cash collateral with counterparties |
|
|
(43.1 |
) |
|
|
84.6 |
|
|
|
79.4 |
|
|
|
181.5 |
|
Other non-current assets |
|
|
(38.4 |
) |
|
|
(48.7 |
) |
|
|
(66.5 |
) |
|
|
(56.0 |
) |
Change in derivative assets and liabilities, net |
|
|
(4.6 |
) |
|
|
(2.3 |
) |
|
|
(4.2 |
) |
|
|
(1.8 |
) |
Accounts payable |
|
|
19.8 |
|
|
|
(514.3 |
) |
|
|
(102.8 |
) |
|
|
(826.6 |
) |
Accrued expenses and other current liabilities |
|
|
(16.5 |
) |
|
|
(73.9 |
) |
|
|
(45.9 |
) |
|
|
(130.2 |
) |
Other long-term liabilities |
|
|
13.9 |
|
|
|
12.2 |
|
|
|
16.3 |
|
|
|
9.8 |
|
Net cash provided by (used in) operating activities |
|
|
67.9 |
|
|
|
43.5 |
|
|
|
178.1 |
|
|
|
186.5 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of business, net of divested cash |
|
|
200.4 |
|
|
|
— |
|
|
|
200.4 |
|
|
|
— |
|
Capital expenditures |
|
|
(14.6 |
) |
|
|
(27.7 |
) |
|
|
(32.1 |
) |
|
|
(46.5 |
) |
Other investing activities, net |
|
|
(5.0 |
) |
|
|
(4.9 |
) |
|
|
(4.5 |
) |
|
|
(9.6 |
) |
Net cash provided by (used in) investing activities |
|
|
180.7 |
|
|
|
(32.5 |
) |
|
|
163.8 |
|
|
|
(56.1 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Borrowings of debt |
|
|
946.0 |
|
|
|
1,120.3 |
|
|
|
1,885.0 |
|
|
|
3,221.3 |
|
Repayments of debt |
|
|
(953.1 |
) |
|
|
(1,307.2 |
) |
|
|
(1,896.1 |
) |
|
|
(3,531.4 |
) |
Issuance of Convertible Notes |
|
|
— |
|
|
|
350.0 |
|
|
|
— |
|
|
|
350.0 |
|
Dividends paid on common stock |
|
|
(10.1 |
) |
|
|
(8.6 |
) |
|
|
(18.5 |
) |
|
|
(17.3 |
) |
Repurchases of common stock |
|
|
(29.1 |
) |
|
|
(50.0 |
) |
|
|
(29.1 |
) |
|
|
(50.0 |
) |
Purchase of convertible note hedges |
|
|
— |
|
|
|
(70.5 |
) |
|
|
— |
|
|
|
(70.5 |
) |
Sale of warrants |
|
|
— |
|
|
|
40.0 |
|
|
|
— |
|
|
|
40.0 |
|
Payments of deferred consideration for acquisitions |
|
|
(0.2 |
) |
|
|
(2.0 |
) |
|
|
(50.9 |
) |
|
|
(62.8 |
) |
Other financing activities, net |
|
|
(3.9 |
) |
|
|
(8.3 |
) |
|
|
(5.1 |
) |
|
|
(8.6 |
) |
Net cash provided by (used in) financing activities |
|
|
(50.5 |
) |
|
|
63.6 |
|
|
|
(114.7 |
) |
|
|
(129.3 |
) |
Cash and cash equivalents reclassified as assets held for sale |
|
|
6.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(1.2 |
) |
|
|
2.7 |
|
|
|
(7.0 |
) |
|
|
(5.6 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
203.2 |
|
|
|
77.2 |
|
|
|
220.3 |
|
|
|
(4.5 |
) |
Cash and cash equivalents, as of the beginning of the period |
|
|
321.3 |
|
|
|
216.7 |
|
|
|
304.3 |
|
|
|
298.4 |
|
Cash and cash equivalents, as of the end of the period |
|
$ |
524.6 |
|
|
$ |
293.9 |
|
|
$ |
524.6 |
|
|
$ |
293.9 |
|
WORLD KINECT CORPORATION BUSINESS SEGMENTS INFORMATION (Unaudited - In millions) |
||||||||||||||||
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||||||||||
Revenue: |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Aviation segment |
|
$ |
5,368.7 |
|
|
$ |
5,194.4 |
|
|
$ |
10,512.9 |
|
|
$ |
11,417.2 |
|
Land segment |
|
|
3,292.4 |
|
|
|
3,642.3 |
|
|
|
6,709.0 |
|
|
|
7,533.5 |
|
Marine segment |
|
|
2,304.1 |
|
|
|
2,144.0 |
|
|
|
4,694.6 |
|
|
|
4,511.6 |
|
Total revenue |
|
$ |
10,965.2 |
|
|
$ |
10,980.7 |
|
|
$ |
21,916.6 |
|
|
$ |
23,462.3 |
|
Gross profit: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
127.7 |
|
|
$ |
128.2 |
|
|
$ |
236.2 |
|
|
$ |
228.8 |
|
Land segment |
|
|
80.8 |
|
|
|
111.5 |
|
|
|
178.1 |
|
|
|
221.6 |
|
Marine segment |
|
|
36.7 |
|
|
|
42.0 |
|
|
|
85.0 |
|
|
|
94.0 |
|
Total gross profit |
|
$ |
245.2 |
|
|
$ |
281.7 |
|
|
$ |
499.3 |
|
|
$ |
544.4 |
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
68.0 |
|
|
$ |
58.1 |
|
|
$ |
112.0 |
|
|
$ |
92.1 |
|
Land segment |
|
|
(4.2 |
) |
|
|
24.6 |
|
|
|
14.2 |
|
|
|
50.8 |
|
Marine segment |
|
|
10.4 |
|
|
|
19.8 |
|
|
|
37.2 |
|
|
|
50.6 |
|
Corporate overhead - unallocated |
|
|
(29.0 |
) |
|
|
(27.0 |
) |
|
|
(54.9 |
) |
|
|
(53.4 |
) |
Total income (loss) from operations |
|
$ |
45.2 |
|
|
$ |
75.5 |
|
|
$ |
108.5 |
|
|
$ |
140.1 |
|
SALES VOLUME SUPPLEMENTAL INFORMATION (Unaudited - In millions) |
||||||||
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||
Volume (Gallons): |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Aviation Segment |
|
1,825.0 |
|
1,846.6 |
|
3,498.1 |
|
3,623.7 |
Land Segment (1) |
|
1,449.2 |
|
1,507.6 |
|
3,047.4 |
|
3,072.3 |
Marine Segment (2) |
|
1,098.4 |
|
1,111.2 |
|
2,241.6 |
|
2,241.2 |
Consolidated Total |
|
4,372.6 |
|
4,465.4 |
|
8,787.0 |
|
8,937.1 |
(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 4.2 and 4.2 for the three months ended June 30, 2024 and 2023, respectively; and 8.5 and 8.5 for the six months ended June 30, 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 June 30, |
|
For the Six Months Ended June 30, |
||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||||||
|
Net Income |
|
Diluted Earnings per Share |
|
Net Income |
|
Diluted Earnings per Share |
|
Net Income |
|
Diluted Earnings per Share |
|
Net Income |
|
Diluted Earnings per Share |
|||||||||||||||||
GAAP measure |
|
$ |
108.3 |
|
|
$ |
1.81 |
|
|
$ |
29.9 |
|
|
$ |
0.48 |
|
|
$ |
135.7 |
|
|
$ |
2.25 |
|
|
$ |
52.7 |
|
|
$ |
0.84 |
|
Acquisition and divestiture related expenses |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.01 |
|
(Gain) loss on sale of business |
|
|
(96.0 |
) |
|
|
(1.60 |
) |
|
|
(0.6 |
) |
|
|
(0.01 |
) |
|
|
(96.0 |
) |
|
|
(1.59 |
) |
|
|
(0.6 |
) |
|
|
(0.01 |
) |
Asset impairments |
|
|
2.4 |
|
|
|
0.04 |
|
|
|
0.3 |
|
|
|
0.01 |
|
|
|
2.4 |
|
|
|
0.04 |
|
|
|
0.3 |
|
|
|
0.01 |
|
Finnish bid error |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Restructuring charges |
|
|
5.6 |
|
|
|
0.09 |
|
|
|
— |
|
|
|
— |
|
|
|
5.8 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
— |
|
Income tax impacts |
|
|
8.0 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
— |
|
Adjusted non-GAAP measure |
|
$ |
28.7 |
|
|
$ |
0.48 |
|
|
$ |
30.1 |
|
|
$ |
0.48 |
|
|
$ |
56.9 |
|
|
$ |
0.94 |
|
|
$ |
52.9 |
|
|
$ |
0.84 |
|
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income (loss) including noncontrolling interest |
|
$ |
106.9 |
|
|
$ |
30.5 |
|
|
$ |
134.1 |
|
|
$ |
53.0 |
|
Interest expense and other financing costs, net |
|
|
27.5 |
|
|
|
32.5 |
|
|
|
56.4 |
|
|
|
66.8 |
|
Provision (benefit) for income taxes |
|
|
9.7 |
|
|
|
9.8 |
|
|
|
13.0 |
|
|
|
14.0 |
|
Depreciation and amortization |
|
|
24.4 |
|
|
|
25.8 |
|
|
|
49.8 |
|
|
|
51.7 |
|
EBITDA |
|
|
168.5 |
|
|
|
98.6 |
|
|
|
253.3 |
|
|
|
185.5 |
|
Acquisition and divestiture related expenses |
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
(Gain) loss on sale of business |
|
|
(96.0 |
) |
|
|
(0.6 |
) |
|
|
(96.0 |
) |
|
|
(0.6 |
) |
Asset impairments |
|
|
2.4 |
|
|
|
0.3 |
|
|
|
2.4 |
|
|
|
0.3 |
|
Finnish bid error |
|
|
0.4 |
|
|
|
— |
|
|
|
1.3 |
|
|
|
— |
|
Restructuring charges |
|
|
5.6 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
80.9 |
|
|
$ |
98.8 |
|
|
$ |
166.8 |
|
|
$ |
185.7 |
|
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Three Months Ended June 30, |
||||||||||||||||||
|
2024 |
|
2023 |
|||||||||||||||||
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|||||||||
GAAP measure |
|
$ |
245.2 |
|
$ |
200.0 |
|
|
$ |
45.2 |
|
$ |
281.7 |
|
$ |
206.2 |
|
|
$ |
75.5 |
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(0.5 |
) |
|
|
0.5 |
Asset impairments |
|
|
— |
|
|
(2.4 |
) |
|
|
2.4 |
|
|
— |
|
|
(0.3 |
) |
|
|
0.3 |
Finnish bid error |
|
|
— |
|
|
(0.4 |
) |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
|
— |
Restructuring charges |
|
|
— |
|
|
(5.6 |
) |
|
|
5.6 |
|
|
— |
|
|
— |
|
|
|
— |
Adjusted non-GAAP measure |
|
$ |
245.2 |
|
$ |
191.6 |
|
|
$ |
53.6 |
|
$ |
281.7 |
|
$ |
205.3 |
|
|
$ |
76.3 |
Reconciliation of GAAP to non-GAAP financial measures: |
|
For the Six Months Ended June 30, |
||||||||||||||||||
|
2024 |
|
2023 |
|||||||||||||||||
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|
Gross Profit |
|
Operating Expenses |
|
Operating Income |
|||||||||
GAAP measure |
|
$ |
499.3 |
|
$ |
390.9 |
|
|
$ |
108.5 |
|
$ |
544.4 |
|
$ |
404.3 |
|
|
$ |
140.1 |
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(0.5 |
) |
|
|
0.5 |
Asset impairments |
|
|
— |
|
|
(2.4 |
) |
|
|
2.4 |
|
|
— |
|
|
(0.3 |
) |
|
|
0.3 |
Finnish bid error |
|
|
— |
|
|
(1.3 |
) |
|
|
1.3 |
|
|
— |
|
|
— |
|
|
|
— |
Restructuring charges |
|
|
— |
|
|
(5.8 |
) |
|
|
5.8 |
|
|
— |
|
|
— |
|
|
|
— |
Adjusted non-GAAP measure |
|
$ |
499.3 |
|
$ |
381.4 |
|
|
$ |
118.0 |
|
$ |
544.4 |
|
$ |
403.5 |
|
|
$ |
140.9 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725874539/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
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