World Kinect Corporation · NYSE:WKC

World Kinect — World Fuel Services — Q1 2016 Earnings Presentation

19 slides from World Kinect's earnings presentation, 2016

  1. Slide 1: Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

    Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  2. 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

  3. Slide 3: Business Overview

    Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  4. Slide 4: First Quarter Overview

    First Quarter Overview • First quarter adjusted net income of $54 million or $0.77 adjusted diluted earnings per share • Generated $139 million of operating cash flow o Maintaining ample liquidity to fund organic growth and strategic investments • Aviation segment sold 1.6 billion gallons o Volume g

  5. Slide 5: Financial Overview

    Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  6. Slide 6: Volume by Segment

    Volume by Segment 7.7 7.7 1,626 1,213 1,450 1,118 Q1'15 Q1'16 Q1'15 Q1'16 Q1'15 Q1'16 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  7. Slide 7: Consolidated Gross Profit

    Consolidated Gross Profit ($ in millions) $224 $217 $188 Q1'14 Q1'15 Q1'16 Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  8. Slide 8: Gross Profit by Segment

    Gross Profit by Segment ($ in millions) $91 $94 $85 $79 $71 $69 $54 $47 $39 Q1'14 Q1'15 Q1'16 Q1'14 Q1'15 Q1'16 Q1'14 Q1'15 Q1'16 Aviation Marine Land Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  9. Slide 9: Consolidated Operating Expenses (excluding bad debt provision)

    Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q2’16E: $161 – $166 $157 $139 Q1'15 Q1'16 Q2'16E Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  10. Slide 10: Consolidated Income from Operations

    Consolidated Income from Operations ($ in millions) $77 $65 Q1'15 Q1'16 Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  11. Slide 11: Non-Operating Expense

    Non-Operating Expense ($ in millions) Q2’16E: $6 – $8 7.0 6.3 Q1'15 Q1'16 Q2'16E Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  12. Slide 12: Effective Tax Rate

    Effective Tax Rate Q2’16E: 16% – 19% 17.0% 15.7% 8.7% Q1'15 Q1'16 Q2'16E Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  13. Slide 13: Net Income

    Net Income ($ in millions) $59.0 $65.0 $63.1 $53.6 Q1'15 Q1'16 Q1'15 Q1'16 Adjusted Net Income Non-GAAP Net Income Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  14. Slide 14: Diluted Earnings Per Share

    Diluted Earnings Per Share $0.91 $0.91 $0.83 $0.77 Q1'15 Q1'16 Q1'15 Q1'16 Adjusted EPS Non-GAAP EPS Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  15. Slide 15: Balance Sheet Management

    Balance Sheet Management • Total accounts receivable was $1.7 billion at quarter end o Down more than $500 million year-over-year • Net working capital was $850 million o Net working capital declined $40 million year-over-year o Return on working capital was 31% for the quarter • Generated $139 mill

  16. Slide 16: In Closing

    In Closing • We delivered solid results despite continued headwinds in certain markets • We continue to consistently generate operating cash flow, driving an improved return on invested capital • Allowing us to continue to invest in organic growth initiatives and strategic M&A Copyright © 2015 World

  17. Slide 17: Questions & Answers

    Questions & Answers Copyright © 2015 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.

  18. Slide 18: Earnings Reconciliation

    Earnings Reconciliation ($ in millions, except per share data) Q1 2015 Q1 2016 Revenue, as reported $ 7,340.7 $ 5,192.6 Deferred revenue purchase accounting adjustment 2.1 - Revenue, as adjusted $ 7,342.7 $ 5,192.6 Gross profit, as reported $ 215.4 $ 223.8 Deferred revenue purchase accounting adjust

  19. Slide 19: Earnings Reconciliation (continued)

    Earnings Reconciliation (continued) ($ in millions, except per share data) Q1 2015 Q1 2016 Provision for income taxes, as reported $ 9.9 $ 4.8 Expenses related to the acquisitions and other non-recurring charges - 0.3 Deferred revenue purchase accounting adjustment 0.5 - Termination of employment 1.

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