Slide 1: Third Quarter 2020 Earnings Call
Third Quarter 2020 Earnings Call Thursday, October 29, 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 2: Caution Concerning Forward Looking Statements
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 cause World Fuel's act
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview ❑ Volume increased sequentially in all three of our business segments ❑ Completed sale of MultiService business, resulting in after-tax gain of $64 million or $1.00 per share ❑ Adjusted third quarter net income and earnings per share were $20.7 million or $0.33 per share ❑ Adjuste
Slide 6: Volume by Segment
Volume by Segment 2,175 5.5 1,351 4.4 1,242 4.0 1,168 1,017 688 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) * * Includes gallon and gallon equivalents Copyright 2019 World Fuel Serv
Slide 7: Consolidated Gross Profit ($ in millions)
Consolidated Gross Profit ($ in millions) $306 $214 $214 Q3 2019 Q2 2020 Q3 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 8: Gross Profit by Segment ($ in millions)
Gross Profit by Segment ($ in millions) $157 $95 $98 $85 $84 $92 $53 $37 $32 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Aviation Marine Land Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 9: Consolidated Operating Expenses (excluding bad debt provision)
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) $195 Q4’20 Estimate: $147 - $152 $154 $148 Q3 2019 Q2 2020 Q3 2020 Q4 2020E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 10: Consolidated Income From Operations ($ in millions)
Consolidated Income From Operations ($ in millions) $96 $42 $35 Q3 2019 Q2 2020 Q3 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 11: Interest Expense ($ in millions)
Interest Expense ($ in millions) $21.2 $9.4 Q3 2019 Q3 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 12: Effective Tax Rate
Effective Tax Rate Q4’20 Estimate: ~ 32% 32.1% 30.1% Q3 2019 Q3 2020 Q4 2020E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 13: Financial Overview
Financial Overview • Total Accounts Receivable balance was $1.25 billion • We generated $246 million of cash flow from operations • Reduced debt balance by $570 million, resulting in a net cash position at quarter end Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 14: Questions + Answers
Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 15: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Q3 2019 Q3 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $156.9 $0.0 $156.9 $97.6 $0.0 $97.6 Operating Expenses 70.6 (0.7) 69.9 68.4 (2.0) 66.4 Income from Operations 86.3 0.7 87.0 2
Slide 16: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Sep YTD 2019 Sep YTD 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $411.7 $0.0 $411.7 $282.6 $0.0 $282.6 Operating Expenses 196.3 (1.7) 194.6 215.4 (10.0) 205.4 Income from Operation