World Kinect Corporation · NYSE:WKC
World Kinect — World Fuel Services — Q1 2018 Earnings Presentation
18 slides from World Kinect's earnings presentation, Apr 26, 2018
Slide 1: World Fuel Services Corporation 2018 First Quarter Earnings Call
World Fuel Services Corporation 2018 First Quarter Earnings Call April 26, 2018 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Caution Concerning Forward Looking Statements Certain statements made today, including comments about World Fuel's expectations regarding future plans, performance and acquisitions are forward- looking statements that are subject to a range of uncertainties and risks that could
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 3
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 4
Slide 5: Consolidated Revenue
Consolidated Revenue ($ in millions) $9,181 $8,194 Q1'17 Q1'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 5
Slide 6: Volume by Segment
Volume by Segment 1,967 1,831 6.8 5.8 1,497 1,458 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Aviation Marine Land(1) (Gallons in millions) (Metric tons in millions) (Gallons in millions) (1) Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours
Slide 7: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $244 $231 Q1'17 Q1'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 7
Slide 8: Gross Profit by Segment
Gross Profit by Segment ($ in millions) $102 $110 $98 $100 $34 $31 Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Aviation Marine Land 8 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 9: Non-Operational Items
Non-Operational Items(1) ($ in millions) For the Three Months Ended March 31, 2018 Land $ 2.5 Marine $ 1.0 Aviation $ 1.0 Un-allocated corporate $ 0.3 Total $ 4.8 (1) Consists of acquisition, severance and other restructuring costs. Copyright © 2017 World Fuel Services Corporation. Proprietary & Con
Slide 10: Consolidated Operating Expenses
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q2’18E: $188 $177 – $181 $180 $174 Q1'17 Q4'17 Q1'18 Q2'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 10
Slide 11: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $62 $55 Q1'17 Q1'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 11
Slide 12: Consolidated EBITDA
Consolidated EBITDA ($ in millions) $81 $77 Q1'17 Q1'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 12
Slide 13: Non-Operating Expenses
Non-Operating Expenses ($ in millions) Q2’18E: $16 – $19 18.6 13.7 Q1'17 Q1'18 Q2'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 13
Slide 14: Effective Tax Rate
Effective Tax Rate Q2-Q4 ‘18E: Mid-20% 19.3% 16.0% Q1'17 Q1'18 Q2-Q4'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 14
Slide 15: Adjusted Net Income & Adjusted Diluted Earnings Per Share
Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $35.0 $34.6 $0.52 $0.50 Q1'17 Q1'18 Q1'17 Q1'18 Adjusted Net Income Adjusted Diluted EPS Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 15
Slide 16: In Closing
In Closing • All three of our segments delivered solid first quarter results • Operating expenses declined sequentially, demonstrating our commitment to drive greater efficiencies • We are more adept at driving cost efficiencies while investing in growth where appropriate Copyright © 2017 World Fuel
Slide 17: Questions & Answers
Questions & Answers Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 17
Slide 18: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q1 2017 Q1 2018 As Reported Adjustments1 As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $100.0 $0.0 $100.0 $110.0 $0.2 $110.2 Operating Expenses 59.5 (2.7) 56.9 62.2 (0.8) 61.4 Income from Operations 40.4 2.7 43.1