Slide 1: Fourth Quarter & Full Year 2018 Earnings Call
Fourth Quarter & Full Year 2018 Earnings Call Thursday, February 21, 2019 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 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 4: Our Three Pillars
Our Three Pillars Aggressive Continuous Cost Sharpening Organic Management our Portfolio Growth Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 6: Financial Overview
Financial Overview Achieved more than $1 billion in gross profit for the first time Aviation segment delivered record results Adjusted EBITDA increased 20% to $360 million Significantly improved operating leverage ratio by 425 basis points Generated $188 million of cash flow from operation
Slide 7: Consolidated Revenue ($ in millions)
Consolidated Revenue ($ in millions) $9,989 $39,752 $8,872 $33,696 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 8: Volume by Segment – Aviation
Volume by Segment – Aviation (gallons in millions) 2,017 2,047 7,938 8,194 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 9: Volume by Segment – Marine
Volume by Segment – Marine (metric tons in millions) 26.5 6.1 6.1 23.7 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 10: Volume by Segment – Land
Volume by Segment – Land (gallons in millions) 5,940 1,474 5,592 1,356 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 11: Total Consolidated Volume
Total Consolidated Volume (gallons in millions) 5,109 5,011 20,887 20,047 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 12: Consolidated Adjusted Gross Profit ($ in millions)
Consolidated Adjusted Gross Profit ($ in millions) $265 $230 Q4 2017 Q4 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 13: Adjusted Gross Profit by Segment – Aviation
Adjusted Gross Profit by Segment – Aviation ($ in millions) $130 $508 $440 $106 Q4 2017 Q4 2018 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 14: Adjusted Gross Profit by Segment – Marine
Adjusted Gross Profit by Segment – Marine ($ in millions) $148 $44 $126 $29 Q4 2017 Q4 2018 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 15: Adjusted Gross Profit by Segment – Land
Adjusted Gross Profit by Segment – Land ($ in millions) $366 $366 $96 $91 Q4 2017 Q4 2018 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 16: Consolidated Adjusted Gross Profit ($ in millions)
Consolidated Adjusted Gross Profit ($ in millions) $1,023 $932 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 17: Consolidated Adjusted Operating Expenses (excluding bad debt provision)
Consolidated Adjusted Operating Expenses (excluding bad debt provision) ($ in millions) Q1’19 Estimate: $188 $175 - $179 $180 $179 Q4 2017 Q3 2018 Q4 2018 Q1 2019E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 18: Consolidated Adjusted Income From Operations
Consolidated Adjusted Income From Operations ($ in millions) $279 $68 $215 $39 Q4 2017 Q4 2018 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 19: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA ($ in millions) $360 $91 $301 $61 Q4 2017 Q4 2018 FY 2017 FY 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 20: Non-Operating Expenses
Non-Operating Expenses ($ in millions) Q1’19 Estimate: $18 - $20 $20.3 $19.4 Q4 2017 Q4 2018 Q1 2019E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 21: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate FY’19 Estimate: 32% - 35% 29.7% 18.3% Q4 2017 Q4 2018 FY 2019E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 22: Adjusted Net Income ($ in millions except EPS)
Adjusted Net Income ($ in millions except EPS) $142.9 $126.6 $33.7 $17.0 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 23: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share $2.11 $1.86 $0.50 $0.25 Q4 2017 Q4 2018 2017 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 24: Balance Sheet Management
Balance Sheet Management Total Accounts Receivable $2.8 Billion at quarter end Solid Operating Cash Flow* Generation $147 million generated in the fourth quarter $188 million generated for the full year Reduction of Total Debt $200 million reduction of debt Net Debt-to-Adjusted EBITDA of 1.4x lowest
Slide 25: Financial Overview
Financial Overview • We delivered solid results in 2018 • Continue to drive profitable organic growth, identify additional operating efficiencies and sharpen portfolio to divest non-core businesses and reinvest in core activities • All to support increasing returns on capital and shareholder returns
Slide 26: Questions + Answers
Questions + Answers Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 27: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Q4 2017 Q4 2018 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $105.7 $0.0 $105.7 $129.7 ($0.2) $129.5 Operating Expenses 64.5 (0.8) 63.7 67.5 (0.5) 67.0 Income from Operations 41.2 0.8 42
Slide 28: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Dec YTD 2017 Dec YTD 2018 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $440.5 $0.0 $440.5 $507.8 $0.2 $508.0 Operating Expenses 247.5 (7.0) 240.5 257.2 (2.6) 254.5 Income from Operations