World Kinect Corporation · NYSE:WKC
World Kinect — Q1 2024 Earnings Presentation
26 slides from World Kinect's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call April 25, 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: Reminder of Financial Targets Announced at Investor Day
Reminder of Financial Targets Announced at Investor Day2 2026 2024 – 2028 Adjusted Five-year EBITDA1,2,3 Target 30% Aggregate Free Cash Flow1,2,5 $900 $480 – Target Million Adjusted $520 Operating – $1.2 Million Margin1,2,4 Target Billion Note: 1. Adjusted Operating Margin, Adjusted EBITDA, and Free
Slide 6: Financial Overview
Financial Overview Ira M. Birns Executive Vice President & CFO © World Kinect Corporation 6
Slide 7: Q1 2024 Results
Q1 2024 Results © World Kinect Corporation 7
Slide 8: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Gross Profit Operating Cash Flow GAAP Diluted EPS (3)% (23)% 25% $254MM $110MM $0.45 Total Volumes1 Free Cash Flow2 Adj. Diluted EPS3 (1)% (25)% 31% 4.4Bn $93MM $0.47 Note: Q1 2024 information as reported as of March 31, 2024, compared to prior year’s results. 1. Include
Slide 9: Q1 2024 Results
Q1 2024 Results Volumes1 Gross Profit -1% -3% 4,472 4,414 $263 $254 Aviation 1,777 1,673 $101 $108 Marine Land 1,143 $52 1,130 $48 Gallons $110 1,565 1,598 $MM $97 in MM1 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Note: 1. Includes gallons and gallon equivalents. © World Kinect Corporation 9
Slide 10: Segment Overview: Aviation
Segment Overview: Aviation Quarter Highlights & Q2 Outlook Volumes Gross Profit Q1 2024 Highlights Versus Q1 2023: +8% -6% • Volume decreased 6% year-over-year, 1,777 $108.4 principally due to winding-down specific 1,673 $100.6 low-profitability bulk activity representing ~100mm gallons of volume pe
Slide 11: Segment Overview: Land
Segment Overview: Land Quarter Highlights & Q2 Outlook Volumes Gross Profit Q1 2024 Highlights Versus Q1 2023: +2% -12% • Increases in our natural gas, power and 1,598 $110 1,565 retail fuel volume were partially offset by $97 decreased volume in the UK as well as in our lower-margin North American
Slide 12: Segment Overview: Marine
Segment Overview: Marine Quarter Highlights & Q2 Outlook Volumes Gross Profit Q1 2024 Highlights Versus Q1 2023: 1% -7% • Gross Profit decreased 7% year-over- 4.3 4.3 $52 year driven principally by the reduction in $48 market volatility experienced throughout 2022 and into the first quarter of 2023.
Slide 13: Adjusted Operating Expenses Down 4% Year-Over-Year
Adjusted Operating Expenses Down 4% Year-Over-Year Total Adjusted Operating Expenses $MM Q2 2024 Prior Guidance: Guidance2 $205 $208 $207 $199 - 2031 $198 $190 $196 - 200MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024E Note: 1. Guidance from Q4 2023 earnings provided on February 22, 2024. 2. Not
Slide 14: We Remain Committed to our FY26 Adjusted Operating Margin Target
We Remain Committed to our FY26 Adjusted Operating Margin Target… Income and Adjusted Income from Operations as a Percentage of Gross Profit Income from Operations as a % of Gross Profit (GAAP) Adjusted Income from Operations as a % of Gross Profit1 ~30% 25% 25% 26% 21% 20% 18% 19% 16% FY20 FY21 FY2
Slide 15: Interest Expense Down 16% Year-Over-Year
Interest Expense Down 16% Year-Over-Year Interest Expense $MM Prior Guidance: $34 $30 – $321 $32 $32 Q2 2024 $29 $29 Guidance2 $28–29MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024E Note: 1. Guidance from Q1 2024 earnings provided on February 22, 2024. 2. Not a guarantee of actual future performa
Slide 16: Strong Cash Flow Provides Financial Flexibility
Strong Cash Flow Provides Financial Flexibility Operating Cash Flow1 Free Cash Flow2 $MM $143 Total Trailing Five $110 Quarters3 $80 Operating Cash Flow: $124 $382mm $44 $93 $59 $5 Free Cash Flow2: $16 $276mm -$15 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Note: 1. Full bars represent Total Operating C
Slide 17: Capital Allocation Framework Supports Growth With Reasonable Leverage and Rewards Shareholders
Capital Allocation Framework Supports Growth With Reasonable Leverage and Rewards Shareholders Balance Strong Balance Sheet & Liquidity Position Sheet ▪ Low leverage through prudent capital management Strength ▪ Liquidity strong through business cycles Shareholder Returns M&A Priorities ▪ Focus on i
Slide 18: We Remain Focused on Medium-Term Financial Targets
We Remain Focused on Medium-Term Financial Targets2 2026 2024 – 2028 Adjusted Five-year EBITDA1,2,3 Target 30% Aggregate Free Cash Flow1,2,5 $900 $480 – Target Million Adjusted $520 Operating – $1.2 Million Margin1,2,4 Target Billion Note: 1. Adjusted Operating Margin, Adjusted EBITDA, and Free Cash
Slide 19: Guidance Summary
Guidance Summary1 Date Guidance Period Guidance Metric Guidance Actual Provided Q1 2024 Adj. Operating Expense $199 – 203MM ✓ $190MM February 22, 20242 Q1 2024 Interest Expense $30 – 32MM ✓ $29MM FY 2024 FY 2024 Tax Rate 23 – 27% Q2 2024 Adj. Operating Expense $196 –200MM April 25, 2024 Q2 2024 Inte
Slide 20: Appendix
Appendix © World Kinect Corporation 20
Slide 21: Non-GAAP Reconciliation (1/5)
Non-GAAP Reconciliation (1/5) $ in millions, except per share data For the Three Months Ended March 31, $ in millions, except per share data 2024 2023 Net Diluted Earnings Net Diluted Earnings Income per share Income per share GAAP Measure $27.4 $0.45 $22.8 $0.36 Finnish bid error 0.9 0.01 - - Restr
Slide 22: Non-GAAP Reconciliation (2/5)
Non-GAAP Reconciliation (2/5) $$ in inmillions millions For the Three Months Ended March 31, 2024 2023 Net income (loss) including noncontrolling interest $27.2 $22.6 Interest expense and other financing cost, net 28.9 34.3 Provision (benefit) for income taxes 3.3 4.2 Depreciation and amortization 2
Slide 23: Non-GAAP Reconciliation (3/5)
Non-GAAP Reconciliation (3/5) $$ininmillions millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Operating Expenses GAAP Measure $198.2 $206.2 $208.2 $247.7 $190.8 Acquisition and divestiture related expenses - 0.5 - 0.4 - Finish bid e
Slide 24: Non-GAAP Reconciliation (4/5)
Non-GAAP Reconciliation (4/5) $ in millions For the Twelve Months Ended December 31 GAAP Acquisition Asset Integration Finnish bid Restructuring Total Adjusted Non- Measure and divestiture Impairments Costs error Charges Adjustments GAAP Measure 2020 Consolidated Gross Profit $851.8 - - - - $0.2 $0.
Slide 25: Non-GAAP Reconciliation (5/5)
Non-GAAP Reconciliation (5/5) $ ininmillions $ millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Operating Cash Flow $143 $44 $80 $5 $110 CapEx 19 28 21 20 17 Free Cash Flow 124 16 59 (15) 93 © World Kinect Corporation 25
Slide 26: Investor Relations Contacts
Ira M. Birns Investor Executive Vice President & Chief Financial Officer Relations Elsa Ballard Vice President of Investor Relations & Communications Contacts Investor@worldkinect.com © World Kinect Corporation 26