World Kinect Corporation Reports Third Quarter 2023 Results
- World Kinect Corporation reports solid results within the quarter and remains focused on accelerating growth and expanding energy-management solutions.
- Gross profit decreased 13% to $281 million, net income decreased 18% to $35 million, and adjusted EBITDA decreased 18% to $101 million compared to the same period last year.
Third Quarter 2023 Highlights
-
Gross profit decreased
13% to$281 million -
Net income decreased
18% to$35 million -
GAAP diluted earnings and Adjusted diluted earnings per share of
$0.58 -
Adjusted EBITDA decreased
18% to$101 million
Results compared to the same period last year are as follows (unaudited - in millions, except percentages and per share data):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Volume (1) |
|
|
4,536 |
|
|
|
4,629 |
|
|
(2 |
)% |
|
|
13,473 |
|
|
|
13,757 |
|
|
(2 |
)% |
Revenue |
|
$ |
12,245 |
|
|
$ |
15,661 |
|
|
(22 |
)% |
|
$ |
35,708 |
|
|
$ |
45,165 |
|
|
(21 |
)% |
Gross profit |
|
$ |
281 |
|
|
$ |
322 |
|
|
(13 |
)% |
|
$ |
826 |
|
|
$ |
807 |
|
|
2 |
% |
Income from operations |
|
$ |
73 |
|
|
$ |
100 |
|
|
(27 |
)% |
|
$ |
213 |
|
|
$ |
194 |
|
|
10 |
% |
Income from operations as a percentage of gross profit |
|
|
26 |
% |
|
|
31 |
% |
|
|
|
|
26 |
% |
|
|
24 |
% |
|
|
||
Adjusted income from operations |
|
$ |
73 |
|
|
$ |
99 |
|
|
(26 |
)% |
|
$ |
214 |
|
|
$ |
196 |
|
|
10 |
% |
Adjusted income from operations as a percentage of gross profit |
|
|
26 |
% |
|
|
31 |
% |
|
|
|
|
26 |
% |
|
|
24 |
% |
|
|
||
Net income (loss) including noncontrolling interest |
|
$ |
35 |
|
|
$ |
44 |
|
|
(19 |
)% |
|
$ |
89 |
|
|
$ |
95 |
|
|
(7 |
)% |
Adjusted EBITDA |
|
$ |
101 |
|
|
$ |
123 |
|
|
(18 |
)% |
|
$ |
287 |
|
|
$ |
274 |
|
|
5 |
% |
Diluted earnings (loss) per common share |
|
$ |
0.58 |
|
|
$ |
0.68 |
|
|
(15 |
)% |
|
$ |
1.41 |
|
|
$ |
1.48 |
|
|
(5 |
)% |
Adjusted diluted earnings (loss) per common share |
|
$ |
0.58 |
|
|
$ |
0.67 |
|
|
(13 |
)% |
|
$ |
1.41 |
|
|
$ |
1.50 |
|
|
(6 |
)% |
(1) | Includes gallons and gallon equivalents converted as described in the table below. |
“As our team continues to deliver for our global customer base, evidenced by our solid results within the quarter, we remain focused on our strategy to accelerate growth by maximizing efficiencies in our conventional business, expanding our suite of energy-management solutions and increasing the availability of renewable and low-carbon fuels,” said Michael J. Kasbar, Chairman and Chief Executive Officer. “We remain focused on enhancing our performance and driving greater value for our shareholders, and are optimistic about the opportunities which lie ahead.”
“Despite marine’s decline from last year’s near record performance, we delivered solid results this quarter, benefiting, in part, from our emerging sustainability-related business activities which continue to grow,” said Ira M. Birns, Executive Vice President and Chief Financial Officer. “Despite higher fuel prices during the quarter, we also generated
Third Quarter 2023 Segment Profitability
-
Aviation – Gross profit of
, a decrease of$126 million 3% year-over-year. The decrease during the three months ended September 30, 2023 was primarily attributable to lower physical inventory-related profitability as well as a rationalization of lower-return business activity. These decreases were partially offset by higher margins driven by our focus on improving returns in a higher interest rate environment. -
Land – Gross profit of
, an increase of$121 million 3% year-over-year. The increase was primarily driven by continued growth in our sustainability-related offerings. This increase was partially offset by a decline in our core fuel business activity inNorth America , when compared to the third quarter of 2022. -
Marine – Gross profit of
, a decrease of$35 million 54% year-over-year, principally due to the significant benefit from record bunker fuel prices and significant market volatility in the third quarter of 2022.
Year-to-Date 2023 Compared to 2022
Highlights
-
Gross profit of
, an increase of$825.8 million 2% year-over-year. -
Net income of
, a decrease of$87.7 million 6% year-over-year. -
Adjusted EBITDA of
, an increase of$286.7 million 5% year-over-year.
Segment Profitability
-
Aviation – Gross profit of
, an increase of$354.4 million 44% year-over-year. -
Land – Gross profit of
, a decrease of$342.8 million 5% year-over-year. -
Marine – Gross profit of
, a decrease of$128.6 million 36% year-over-year.
Earnings Conference Call
An investor conference call will be held today, October 26, 2023, at 5:00 PM Eastern Time to discuss third quarter results. Participants can access the live webcast or participate by phone by visiting the company’s website at https://ir.worldkinect.com. To join the conference call by phone, participants must pre-register 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 the Company’s website through November 8, 2023.
About World Kinect Corporation
Headquartered in
For more information, visit https://corp.worldkinect.com.
Definitions and Non-GAAP Financial Measures
This press release makes reference to "Net income." Net income means Net income attributable to World Kinect as presented in the Statements of Income and Comprehensive Income.
This press release contains non-GAAP financial measures (collectively, the "Non-GAAP Measures"), including the following:
- adjusted income from operations;
- adjusted income from operations as a percentage of gross profit;
- adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA");
- adjusted net income attributable to World Kinect; and
- adjusted diluted earnings per common share.
The Non-GAAP 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 believe that the Non-GAAP Measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance of the Company and to provide greater transparency as supplemental information to our GAAP results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, our presentation of the Non-GAAP Measures may not be comparable to the presentation of such metrics by other companies.
Adjusted net income attributable to World Kinect is defined as net income (loss) attributable to World Kinect 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, and non-operating legal settlements.
Adjusted diluted earnings per common share is computed by dividing adjusted net income attributable to World Kinect and available to common shareholders by the sum of the weighted average number of shares of common stock, stock units, restricted stock entitled to dividends not subject to forfeiture and vested restricted stock units outstanding during 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.
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, and non-operating legal settlements.
Adjusted income from operations is defined as Income from operations excluding the impact of acquisition and divestiture related expenses, restructuring charges, impairments, and integration costs. Adjusted income from operations as a percentage of gross profit is computed by dividing adjusted income from operations by gross profit.
Investors are encouraged to review the reconciliation of these Non-GAAP 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 expectations for our future plans and performance, and the expansion of certain of our products and services, including those relating to sustainability. Our forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission ("SEC") filings, including the Company’s 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; sudden changes in the market price of fuel 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; 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
-- 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) |
||||||||
|
|
|
|
|
||||
|
|
September 30, 2023 |
|
December 31, 2022 |
||||
Assets: |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
335.6 |
|
|
$ |
298.4 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
2,882.2 |
|
|
|
3,294.1 |
|
Inventories |
|
|
654.2 |
|
|
|
779.9 |
|
Prepaid expenses |
|
|
92.5 |
|
|
|
83.6 |
|
Short-term derivative assets, net |
|
|
218.2 |
|
|
|
302.1 |
|
Other current assets |
|
|
408.6 |
|
|
|
479.9 |
|
Total current assets |
|
|
4,591.3 |
|
|
|
5,238.1 |
|
Property and equipment, net |
|
|
509.8 |
|
|
|
484.2 |
|
Goodwill |
|
|
1,231.7 |
|
|
|
1,233.0 |
|
Identifiable intangible assets, net |
|
|
308.7 |
|
|
|
336.2 |
|
Other non-current assets |
|
|
841.5 |
|
|
|
873.2 |
|
Total assets |
|
$ |
7,483.1 |
|
|
$ |
8,164.6 |
|
Liabilities: |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current maturities of long-term debt |
|
$ |
63.0 |
|
|
$ |
15.8 |
|
Accounts payable |
|
|
3,293.3 |
|
|
|
3,529.5 |
|
Short-term derivative liabilities, net |
|
|
150.5 |
|
|
|
325.2 |
|
Accrued expenses and other current liabilities |
|
|
607.5 |
|
|
|
738.2 |
|
Total current liabilities |
|
|
4,114.2 |
|
|
|
4,608.6 |
|
Long-term debt |
|
|
812.3 |
|
|
|
829.9 |
|
Other long-term liabilities |
|
|
581.5 |
|
|
|
735.3 |
|
Total liabilities |
|
|
5,508.0 |
|
|
|
6,173.8 |
|
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
World Kinect shareholders' equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
0.6 |
|
|
|
0.6 |
|
Capital in excess of par value |
|
|
113.4 |
|
|
|
182.4 |
|
Retained earnings |
|
|
2,024.8 |
|
|
|
1,962.5 |
|
Accumulated other comprehensive income (loss) |
|
|
(170.4 |
) |
|
|
(160.6 |
) |
Total World Kinect shareholders' equity |
|
|
1,968.3 |
|
|
|
1,984.9 |
|
Noncontrolling interest |
|
|
6.7 |
|
|
|
5.9 |
|
Total equity |
|
|
1,975.1 |
|
|
|
1,990.7 |
|
Total liabilities and equity |
|
$ |
7,483.1 |
|
|
$ |
8,164.6 |
|
WORLD KINECT CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||||||||||||
(Unaudited – In millions, except per share data) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
|
$ |
12,245.3 |
|
|
$ |
15,661.3 |
|
|
$ |
35,707.6 |
|
|
$ |
45,165.4 |
|
Cost of revenue |
|
|
11,963.9 |
|
|
|
15,339.0 |
|
|
|
34,881.8 |
|
|
|
44,358.7 |
|
Gross profit |
|
|
281.4 |
|
|
|
322.3 |
|
|
|
825.8 |
|
|
|
806.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits |
|
|
132.0 |
|
|
|
141.1 |
|
|
|
376.3 |
|
|
|
374.3 |
|
General and administrative |
|
|
76.1 |
|
|
|
81.7 |
|
|
|
235.9 |
|
|
|
238.8 |
|
Asset impairments |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Restructuring charges |
|
|
— |
|
|
|
(0.8 |
) |
|
|
— |
|
|
|
(0.8 |
) |
Total operating expenses |
|
|
208.2 |
|
|
|
222.0 |
|
|
|
612.5 |
|
|
|
612.3 |
|
Income from operations |
|
|
73.3 |
|
|
|
100.3 |
|
|
|
213.3 |
|
|
|
194.4 |
|
Non-operating income (expenses), net: |
|
|
|
|
|
|
|
|
||||||||
Interest expense and other financing costs, net |
|
|
(28.6 |
) |
|
|
(34.0 |
) |
|
|
(95.4 |
) |
|
|
(74.8 |
) |
Other income (expense), net |
|
|
1.6 |
|
|
|
(3.5 |
) |
|
|
(4.7 |
) |
|
|
(1.9 |
) |
Total non-operating income (expense), net |
|
|
(26.9 |
) |
|
|
(37.5 |
) |
|
|
(100.0 |
) |
|
|
(76.7 |
) |
Income (loss) before income taxes |
|
|
46.3 |
|
|
|
62.8 |
|
|
|
113.3 |
|
|
|
117.7 |
|
Provision for income taxes |
|
|
10.8 |
|
|
|
18.9 |
|
|
|
24.8 |
|
|
|
22.7 |
|
Net income (loss) including noncontrolling interest |
|
|
35.5 |
|
|
|
43.9 |
|
|
|
88.5 |
|
|
|
95.0 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
0.6 |
|
|
|
1.4 |
|
|
|
0.9 |
|
|
|
1.8 |
|
Net income (loss) attributable to World Kinect |
|
$ |
34.9 |
|
|
$ |
42.5 |
|
|
$ |
87.7 |
|
|
$ |
93.2 |
|
Basic earnings (loss) per common share |
|
$ |
0.58 |
|
|
$ |
0.69 |
|
|
$ |
1.42 |
|
|
$ |
1.49 |
|
Basic weighted average common shares |
|
|
60.3 |
|
|
|
62.0 |
|
|
|
61.7 |
|
|
|
62.5 |
|
Diluted earnings (loss) per common share |
|
$ |
0.58 |
|
|
$ |
0.68 |
|
|
$ |
1.41 |
|
|
$ |
1.48 |
|
Diluted weighted average common shares |
|
|
60.4 |
|
|
|
62.3 |
|
|
|
62.1 |
|
|
|
62.8 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
35.5 |
|
|
$ |
43.9 |
|
|
$ |
88.5 |
|
|
$ |
95.0 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
|
(18.1 |
) |
|
|
(32.4 |
) |
|
|
(3.3 |
) |
|
|
(77.5 |
) |
Cash flow hedges, net of income tax expense (benefit) of ( |
|
|
(5.4 |
) |
|
|
15.1 |
|
|
|
(6.4 |
) |
|
|
22.9 |
|
Total other comprehensive income (loss) |
|
|
(23.5 |
) |
|
|
(17.2 |
) |
|
|
(9.8 |
) |
|
|
(54.6 |
) |
Comprehensive income (loss) including noncontrolling interest |
|
|
12.0 |
|
|
|
26.7 |
|
|
|
78.8 |
|
|
|
40.4 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
0.6 |
|
|
|
1.4 |
|
|
|
0.9 |
|
|
|
1.8 |
|
Comprehensive income (loss) attributable to World Kinect |
|
$ |
11.5 |
|
|
$ |
25.3 |
|
|
$ |
77.9 |
|
|
$ |
38.6 |
|
WORLD KINECT CORPORATION |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(Unaudited - In millions) |
||||||||||||||||
|
||||||||||||||||
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) including noncontrolling interest |
|
$ |
35.5 |
|
|
$ |
43.9 |
|
|
$ |
88.5 |
|
|
$ |
95.0 |
|
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivatives |
|
|
(45.6 |
) |
|
|
104.3 |
|
|
|
(191.7 |
) |
|
|
88.0 |
|
Depreciation and amortization |
|
|
26.1 |
|
|
|
26.6 |
|
|
|
77.8 |
|
|
|
80.1 |
|
Noncash operating lease expense |
|
|
7.6 |
|
|
|
9.1 |
|
|
|
26.6 |
|
|
|
26.9 |
|
Provision for credit losses |
|
|
2.7 |
|
|
|
1.4 |
|
|
|
5.2 |
|
|
|
6.1 |
|
Share-based payment award compensation costs |
|
|
6.2 |
|
|
|
7.3 |
|
|
|
16.2 |
|
|
|
14.0 |
|
Deferred income tax expense (benefit) |
|
|
(4.3 |
) |
|
|
7.6 |
|
|
|
(4.4 |
) |
|
|
(8.0 |
) |
Unrealized foreign currency (gains) losses, net |
|
|
0.6 |
|
|
|
20.9 |
|
|
|
(9.5 |
) |
|
|
15.7 |
|
Other |
|
|
5.7 |
|
|
|
18.3 |
|
|
|
16.2 |
|
|
|
19.8 |
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(431.3 |
) |
|
|
740.5 |
|
|
|
389.1 |
|
|
|
(798.6 |
) |
Inventories |
|
|
(100.0 |
) |
|
|
175.8 |
|
|
|
128.1 |
|
|
|
(207.1 |
) |
Prepaid expenses |
|
|
(6.8 |
) |
|
|
(1.3 |
) |
|
|
(8.2 |
) |
|
|
(27.9 |
) |
Other current assets |
|
|
(10.5 |
) |
|
|
(134.5 |
) |
|
|
(38.3 |
) |
|
|
(85.9 |
) |
Cash collateral with counterparties |
|
|
7.4 |
|
|
|
(158.6 |
) |
|
|
188.8 |
|
|
|
76.7 |
|
Other non-current assets |
|
|
(17.7 |
) |
|
|
(26.5 |
) |
|
|
(73.7 |
) |
|
|
(9.9 |
) |
Change in derivative assets and liabilities, net |
|
|
(4.3 |
) |
|
|
19.8 |
|
|
|
(6.1 |
) |
|
|
2.7 |
|
Accounts payable |
|
|
609.7 |
|
|
|
(657.8 |
) |
|
|
(216.9 |
) |
|
|
845.7 |
|
Accrued expenses and other current liabilities |
|
|
15.7 |
|
|
|
83.5 |
|
|
|
(114.6 |
) |
|
|
186.6 |
|
Other long-term liabilities |
|
|
(16.3 |
) |
|
|
(21.7 |
) |
|
|
(6.5 |
) |
|
|
(90.6 |
) |
Net cash provided by (used in) operating activities |
|
|
80.4 |
|
|
|
258.5 |
|
|
|
266.8 |
|
|
|
229.3 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
(2.3 |
) |
|
|
— |
|
|
|
(641.7 |
) |
Capital expenditures |
|
|
(21.4 |
) |
|
|
(18.5 |
) |
|
|
(67.9 |
) |
|
|
(56.2 |
) |
Other investing activities, net |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
(9.5 |
) |
|
|
(1.3 |
) |
Net cash provided by (used in) investing activities |
|
|
(21.3 |
) |
|
|
(20.7 |
) |
|
|
(77.4 |
) |
|
|
(699.2 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Borrowings of debt |
|
|
830.0 |
|
|
|
2,465.3 |
|
|
|
4,051.3 |
|
|
|
6,238.1 |
|
Repayments of debt |
|
|
(831.3 |
) |
|
|
(2,793.8 |
) |
|
|
(4,362.7 |
) |
|
|
(6,038.7 |
) |
Issuance of Convertible Notes |
|
|
— |
|
|
|
— |
|
|
|
350.0 |
|
|
|
— |
|
Dividends paid on common stock |
|
|
(8.4 |
) |
|
|
(7.4 |
) |
|
|
(25.7 |
) |
|
|
(22.4 |
) |
Repurchases of common stock |
|
|
— |
|
|
|
— |
|
|
|
(50.0 |
) |
|
|
(48.7 |
) |
Purchase of convertible note hedges |
|
|
— |
|
|
|
— |
|
|
|
(70.5 |
) |
|
|
— |
|
Sale of warrants |
|
|
— |
|
|
|
— |
|
|
|
40.0 |
|
|
|
— |
|
Payments of deferred consideration for acquisitions |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(62.9 |
) |
|
|
(10.0 |
) |
Other financing activities, net |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(10.0 |
) |
|
|
(3.3 |
) |
Net cash provided by (used in) financing activities |
|
|
(11.2 |
) |
|
|
(336.0 |
) |
|
|
(140.4 |
) |
|
|
115.0 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(6.2 |
) |
|
|
(7.3 |
) |
|
|
(11.8 |
) |
|
|
(17.0 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
41.7 |
|
|
|
(105.5 |
) |
|
|
37.2 |
|
|
|
(371.9 |
) |
Cash and cash equivalents, as of the beginning of the period |
|
|
293.9 |
|
|
|
385.8 |
|
|
|
298.4 |
|
|
|
652.2 |
|
Cash and cash equivalents, as of the end of the period |
|
$ |
335.6 |
|
|
$ |
280.3 |
|
|
$ |
335.6 |
|
|
$ |
280.3 |
|
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 September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||||||||||||||
|
Net
|
|
Earnings
|
|
Net
|
|
Earnings
|
|
Net
|
|
Earnings
|
|
Net
|
|
Earnings
|
|||||||||||||||
Net income and Diluted earnings per common share |
|
$ |
34.9 |
|
$ |
0.58 |
|
$ |
42.5 |
|
|
$ |
0.68 |
|
|
$ |
87.7 |
|
|
$ |
1.41 |
|
|
$ |
93.2 |
|
|
$ |
1.48 |
|
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.01 |
|
|
|
0.6 |
|
|
|
0.01 |
|
Loss (gain) on sale of business |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Asset impairments |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Integration costs |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
|
0.02 |
|
Restructuring charges |
|
|
— |
|
|
— |
|
|
(0.8 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.8 |
) |
|
|
(0.01 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
0.01 |
|
Income tax impacts |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
(0.01 |
) |
Adjusted net income and Adjusted diluted earnings per common share |
|
$ |
34.9 |
|
$ |
0.58 |
|
$ |
41.8 |
|
|
$ |
0.67 |
|
|
$ |
87.8 |
|
|
$ |
1.41 |
|
|
$ |
94.5 |
|
|
$ |
1.50 |
|
Reconciliation of GAAP to Non-GAAP financial measures: |
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Net income (loss) including noncontrolling interest |
|
$ |
35.5 |
|
$ |
43.9 |
|
|
$ |
88.5 |
|
|
$ |
95.0 |
|
|
Interest expense and other financing costs, net |
|
|
28.6 |
|
|
34.0 |
|
|
|
95.4 |
|
|
|
74.8 |
|
|
Provision (benefit) for income taxes |
|
|
10.8 |
|
|
18.9 |
|
|
|
24.8 |
|
|
|
22.7 |
|
|
Depreciation and amortization |
|
|
26.1 |
|
|
26.6 |
|
|
|
77.8 |
|
|
|
80.1 |
|
|
EBITDA |
|
|
101.0 |
|
|
123.4 |
|
|
|
286.5 |
|
|
|
272.6 |
|
|
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
Loss (gain) on sale of business |
|
|
— |
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
|
Asset impairments |
|
|
— |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
Integration costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1.4 |
|
|
Restructuring charges |
|
|
— |
|
|
(0.8 |
) |
|
|
— |
|
|
|
(0.8 |
) |
|
Adjusted EBITDA |
|
$ |
101.0 |
|
$ |
122.5 |
|
|
$ |
286.7 |
|
|
$ |
273.8 |
|
Reconciliation of GAAP to Non-GAAP financial measures: |
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Income from operations |
|
$ |
73.3 |
|
$ |
100.3 |
|
|
$ |
213.3 |
|
$ |
194.4 |
|
||
Acquisition and divestiture related expenses |
|
|
— |
|
|
— |
|
|
|
0.5 |
|
|
0.6 |
|
||
Asset impairments |
|
|
— |
|
|
— |
|
|
|
0.3 |
|
|
— |
|
||
Integration costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.4 |
|
||
Restructuring charges |
|
|
— |
|
|
(0.8 |
) |
|
|
— |
|
|
(0.8 |
) |
||
Adjusted Income from Operations |
|
$ |
73.3 |
|
$ |
99.5 |
|
|
$ |
214.2 |
|
$ |
195.5 |
|
WORLD KINECT CORPORATION |
||||||||||||||||
BUSINESS SEGMENTS INFORMATION |
||||||||||||||||
(Unaudited - In millions) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
Revenue: |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Aviation segment |
|
$ |
5,983.5 |
|
|
$ |
7,262.0 |
|
|
$ |
17,400.8 |
|
|
$ |
20,116.0 |
|
Land segment |
|
|
3,983.5 |
|
|
|
5,013.9 |
|
|
|
11,517.1 |
|
|
|
14,826.6 |
|
Marine segment |
|
|
2,278.2 |
|
|
|
3,385.4 |
|
|
|
6,789.8 |
|
|
|
10,222.9 |
|
Total revenue |
|
$ |
12,245.3 |
|
|
$ |
15,661.3 |
|
|
$ |
35,707.6 |
|
|
$ |
45,165.4 |
|
Gross profit: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
125.6 |
|
|
$ |
129.6 |
|
|
$ |
354.4 |
|
|
$ |
246.6 |
|
Land segment |
|
|
121.2 |
|
|
|
117.9 |
|
|
|
342.8 |
|
|
|
360.1 |
|
Marine segment |
|
|
34.6 |
|
|
|
74.8 |
|
|
|
128.6 |
|
|
|
200.0 |
|
Total gross profit |
|
$ |
281.4 |
|
|
$ |
322.3 |
|
|
$ |
825.8 |
|
|
$ |
806.7 |
|
Income from operations: |
|
|
|
|
|
|
|
|
||||||||
Aviation segment |
|
$ |
58.6 |
|
|
$ |
57.9 |
|
|
$ |
150.7 |
|
|
$ |
58.5 |
|
Land segment |
|
|
31.8 |
|
|
|
22.2 |
|
|
|
82.6 |
|
|
|
88.5 |
|
Marine segment |
|
|
12.4 |
|
|
|
48.1 |
|
|
|
63.0 |
|
|
|
124.0 |
|
Corporate overhead - unallocated |
|
|
(29.5 |
) |
|
|
(27.9 |
) |
|
|
(83.0 |
) |
|
|
(76.6 |
) |
Total income from operations |
|
$ |
73.3 |
|
|
$ |
100.3 |
|
|
$ |
213.3 |
|
|
$ |
194.4 |
|
SALES VOLUME SUPPLEMENTAL INFORMATION |
||||||||
(Unaudited - In millions) |
||||||||
|
|
|
|
|
||||
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||
Volume (Gallons): |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Aviation Segment |
|
1,920.4 |
|
1,839.6 |
|
5,544.1 |
|
5,326.2 |
Land Segment (1) |
|
1,546.0 |
|
1,515.1 |
|
4,618.3 |
|
4,629.4 |
Marine Segment (2) |
|
1,069.9 |
|
1,274.7 |
|
3,311.0 |
|
3,801.2 |
Consolidated Total |
|
4,536.2 |
|
4,629.4 |
|
13,473.3 |
|
13,756.8 |
(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 4.8 for the three months ended September 30, 2023 and 2022, respectively; and 12.5 and 14.4 for the nine months ended September 30, 2023 and 2022, respectively. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231026119713/en/
Ira M. Birns, Executive Vice President & Chief Financial Officer
Elsa Ballard, Vice President of Investor Relations
investor@worldkinect.com
Source: World Kinect Corporation
FAQ
What were the financial results for World Kinect Corporation in Q3 2023?
What is World Kinect Corporation's focus for growth?