Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call October 24, 2024
Slide 2: Disclaimer and Cautionary Note Regarding Forward-Looking Statements
Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation’s expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that cou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures We believe that the non-GAAP financial measures (collectively, the “Non-GAAP Measures”), when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance
Slide 4: Business Overview
\Business Overview Michael J. Kasbar Chairman & CEO © World Kinect Corporation 4
Slide 5: Financial Overview
Financial Overview Ira M. Birns Executive Vice President & CFO © World Kinect Corporation 5
Slide 6: Q3 2024 Results
Q3 2024 Results © World Kinect Corporation 6
Slide 7: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Net Income1 Gross Profit $35MM (1)% Adj. EBITDA3 $268MM $100MM (1)% (5)% GAAP Diluted EPS $0.57 (2)% Total Volumes2 Share Repurchases Adj. Diluted EPS3 4.4B $28MM $0.62 (2)% +7% Note: Q3 2024 information as reported as of October 24, 2024, compared to prior year’s result
Slide 8: Q3 2024 Results
Q3 2024 Results Volumes1 Gross Profit -2% -5% 4,536 4,443 $281.4 $268.1 1,920 1,905 $125.6 $129.0 Aviation Marine Land $34.6 1,070 1,043 $37.2 $121.2 Gallons 1,546 1,496 $MM $101.9 in MM1 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Note: 1. Includes gallons and gallon equivalents. © World Kinect Corporation 8
Slide 9: Segment Overview: Aviation
Segment Overview: Aviation Quarter Highlights & Q4 Outlook Volumes Gross Profit Q3 2024 Highlights vs Q3 2023: -1% +3% • Volume was down approximately 1% 1,920 1,905 $129.0 year over year but up 4% excluding the $125.6 impact of exiting low margin bulk fuel related activity. • Gross Profit increased
Slide 10: Segment Overview: Land
Segment Overview: Land Quarter Highlights & Q4 Outlook Volumes1 Gross Profit Q3 2024 Highlights vs Q3 2023: -3% -16% • Volumes decreased 3% year-over-year, 1,546 $121.2 principally related to our North American 1,496 Wholesale and Retail business activities. $101.9 • While North American fuel activi
Slide 11: Segment Overview: Marine
Segment Overview: Marine Quarter Highlights & Q4 Outlook Volumes Gross Profit Q3 2024 Highlights vs Q3 2023: -3% +7% • Volumes were down 3% year-over-year, 4.1 $37.2 4.0 and gross profit increased approximately $34.6 7%, principally driven by strong performance in our core resale business activities
Slide 12: Consolidated Adjusted Gross Profit Trends
Consolidated Adjusted Gross Profit Trends Consolidated Adjusted Gross Profit Trends $MM Prior Guidance: Q4 2024 $265-274MM1 Guidance2 $282 $281 $280 $263 $268 $254 $245 $253- 260MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Note: 1. Guidance for Q3 2024 earnings provided on July
Slide 13: Adjusted Operating Expense Continues to Trend Down Year-over-Year
Adjusted Operating Expense Continues to Trend Down Year-over-Year Total Adjusted Operating Expenses $MM Prior Guidance: Q4 2024 $193-197MM1 Guidance2 $205 $208 $207 $198 $192 $195 $190 $194- 198MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Note: 1. Guidance for Q3 2024 earnings
Slide 14: Interest Expense Has Declined Significantly Year-over-Year
Interest Expense Has Declined Significantly Year-over-Year Interest Expense $MM $34 $32 $32 Prior Guidance: Q4 2024 $29 $29 $26-27MM1 Guidance2 $27 $24 $23- 25MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Note: 1. Guidance for Q3 2024 earnings provided on July 25, 2024. 2. Not a
Slide 15: Cash Flow Profile Remains Strong
Cash Flow Profile Remains Strong Operating and Free Cash Flow $MM Operating Cash Flow Free Cash Flow1 $143 $110 $80 $68 $124 $44 $93 $59 $5 $53 $16 ($39) ($15) ($57) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Note: 1. Free Cash Flow is defined as operating cash flow minus total capital
Slide 16: Total Capital Allocated to Share Repurchases and Dividends has Increased
Total Capital Allocated to Share Repurchases and Dividends has Increased Total Share Repurchases and Dividends +14% Dividends Paid $MM $86 Share Repurchases $76 $71 $29 $26 $22 $46 $21 $57 $49 $50 $24 YTD 2021 YTD 2022 YTD 2023 YTD 2024 Note: 1. Full bars represent Total Share Repurchases and Divide
Slide 17: Guidance Summary
Guidance Summary1 Date Guidance Period Guidance Metric Guidance Actual Provided Q3 2024 Total Gross Profit $265 – 274MM ✓ $268MM Q3 2024 Adj. Operating Expense $193 – 197MM ✓ $195MM July 25, 20242 Q3 2024 Interest Expense $26 – 27MM ✓ $24MM FY 2024 FY 2024 Tax Rate 15 – 18% Q4 2024 Total Gross Profi
Slide 18: Appendix
Appendix © World Kinect Corporation 18
Slide 19: Non-GAAP Reconciliation (1/4)
Non-GAAP Reconciliation (1/4) For the Three Months Ended September 30, For the Nine Months Ended September 30, $ in millions, except per share data 2024 2023 2024 2023 Net Earnings per Net Earnings per Net Earnings per Net Earnings per Income share Income share Income share Income share GAAP Measure
Slide 20: Non-GAAP Reconciliation (2/4)
Non-GAAP Reconciliation (2/4) $ in millions For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 Net income (loss) including noncontrolling interest $35.0 $35.5 $169.1 $88.5 Interest expense and other financing cost, net 24.0 28.6 80.4 95.4 Provision (
Slide 21: Non-GAAP Reconciliation (3/4)
Non-GAAP Reconciliation (3/4) $ in millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, 2023 2023 2023 2023 2024 2024 2024 Gross Profit GAAP Measures 262.7 281.7 281.4 232.4 254.1 245.2 268.1 Finnish bid Error - - - 48.0 - - - Gross Profi
Slide 22: Non-GAAP Reconciliation (4/4)
Non-GAAP Reconciliation (4/4) $ in millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, 2023 2023 2023 2023 2024 2024 2024 Operating Cash Flow $143 $44 $80 $5 $110 $68 ($39) CapEx 19 28 21 20 17 15 18 Free Cash Flow 124 16 59 (15) 93 53 (
Slide 23: Investor Relations Contacts
Ira M. Birns Investor Executive Vice President & Chief Financial Officer Relations Braulio Medrano Senior Director FP&A and Investor Relations Contacts Investor@worldkinect.com © World Kinect Corporation 23