World Kinect Corporation · NYSE:WKC
World Kinect — World Fuel Services — Q2 2018 Earnings Presentation
18 slides from World Kinect's earnings presentation, Jul 26, 2018
Slide 1: World Fuel Services Corporation 2018 Second Quarter Earnings Call
World Fuel Services Corporation 2018 Second Quarter Earnings Call July 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: Adjusted Net Income & Adjusted Diluted Earnings Per Share
Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $34.2 $31.7 $0.50 $0.47 Q2'17 Q2'18 Q2'17 Q2'18 Adjusted Net Income Adjusted Diluted EPS Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 5
Slide 6: Consolidated Revenue
Consolidated Revenue ($ in millions) $10,152 $8,086 Q2'17 Q2'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 6
Slide 7: Volume by Segment
Volume by Segment 2,032 2,090 6.8 5.9 1,472 1,432 Q2'17 Q2'18 Q2'17 Q2'18 Q2'17 Q2'18 (1) Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) (1) Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours
Slide 8: Non-Operational Items
(1) Non-Operational Items ($ in millions) For the Three Months Ended June 30, 2018 Land $2.2 Unallocated Corporate $1.3 Marine $0.1 Aviation - Total $3.6 (1) Consists of acquisition, severance and other restructuring costs. Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential
Slide 9: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $247 $231 Q2'17 Q2'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 9
Slide 10: Gross Profit by Segment
Gross Profit by Segment ($ in millions) $127 $111 $87 $89 $33 $30 Q2'17 Q2'18 Q2'17 Q2'18 Q2'17 Q2'18 Aviation Marine Land Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 10
Slide 11: Consolidated Operating Expenses
Consolidated Operating Expenses (excluding bad debt provision and non-operational items, $ in millions) $180 $180 $176 – $180 $173 Q2'17 Q1'18 Q2'18 Q3'18E (1) Excludes a bad debt provision of $1.5, $1.8, and $2.3 and non-operational items in the amount of $5.7, $4.6 and $2.9 for the quarters ended
Slide 12: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $65 $57 Q2'17 Q2'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 12
Slide 13: Consolidated EBITDA
Consolidated EBITDA ($ in millions) $84 $78 Q2'17 Q2'18 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 13
Slide 14: Non-Operating Expenses
Non-Operating Expenses ($ in millions) $19.5 $17 – $19 $16.4 Q2'17 Q2'18 Q3'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 14
Slide 15: Effective Tax Rate
Effective Tax Rate 25% – 30% 28.8% 15.1% Q2'17 Q2'18 FY'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 15
Slide 16: In Closing
In Closing We generated record consolidated gross profit and record gross profit in our aviation segment We have improved our operating leverage EBITDA increased and we continue to effectively manage our balance sheet We have increasing confidence in our ability to drive meaningful improvement in ou
Slide 17: Questions & Answers
Questions & Answers Questions & Answers Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 18: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q2 2017 Q2 2018 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $110.9 $0.0 $110.9 $127.4 $0.0 $127.4 Operating Expenses 61.2 (3.2) 57.9 63.2 (0.3) 62.9 Income from Operations 49.7 3.2 53.0