World Kinect Corporation · NYSE:WKC
World Kinect — World Fuel Services — FY2020 Earnings Presentation
23 slides from World Kinect's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter & Full Year 2020 Earnings Call
Fourth Quarter & Full Year 2020 Earnings Call Thursday, February 25, 2021 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: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview • Consolidated volume for the fourth quarter increased sequentially to 3.5 billion gallons, driven by increases in the aviation and land segments • For the full year, our consolidated volume was 14.4 billion gallons, down approximately 26% compared to 2019 • Adjusted fourth quarte
Slide 6: Consolidated Revenue
Consolidated Revenue ($ in millions) $9,358 $36,819 $20,358 $4,702 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 7: Volume by Segment – Aviation
Volume by Segment – Aviation (gallons in millions) 2,207 8,497 1,144 4,694 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 8: Volume by Segment – Marine
Volume by Segment – Marine (metric tons in millions) 20.9 5.1 17.5 4.2 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 9: Volume by Segment – Land
Volume by Segment – Land (gallons and gallon equivalents in millions) 1,424 5,450 1,272 5,063 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 10: Total Consolidated Volume
Total Consolidated Volume (gallons and gallon equivalents in millions) 4,972 19,466 3,529 14,369 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 11: Consolidated Adjusted Gross Profit (Quarter)
Consolidated Adjusted Gross Profit ($ in millions) $287 $165 Q4 2019 Q4 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 12: Consolidated Adjusted Gross Profit (Full Year)
Consolidated Adjusted Gross Profit ($ in millions) $1,112 $852 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 13: Adjusted Gross Profit by Segment – Aviation
Adjusted Gross Profit by Segment – Aviation ($ in millions) $140 $552 $353 $70 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 14: Adjusted Gross Profit by Segment – Marine
Adjusted Gross Profit by Segment – Marine ($ in millions) $57 $182 $151 $23 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 15: Adjusted Gross Profit by Segment – Land
Adjusted Gross Profit by Segment – Land ($ in millions) $379 $90 $348 $72 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 16: Consolidated Adjusted Operating Expenses
Consolidated Adjusted Operating Expenses (excluding bad debt provision) ($ in millions) $205 Q1’21 Estimate: $148 $138 - $142 $135 Q4 2019 Q3 2020 Q4 2020 Q1 2021E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 17: Consolidated Adjusted Income From Operations
Consolidated Adjusted Income From Operations ($ in millions) $75 $322 $176 $25 Q4 2019 Q4 2020 FY 2019 FY 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 18: Interest Expense
Interest Expense ($ in millions) $16.7 Q1’21 Estimate: $10 - $11 $12.2 Q4 2019 Q4 2020 Q1 2021E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 19: Balance Sheet Management
Balance Sheet Management Total Accounts Receivable $1.2 Billion at quarter end Solid Operating Cash Flow Generation $114 million generated in the fourth quarter $604 million generated for the full year Return to Shareholders Repurchased $68 million of common stock in 2020 Paid $26 million in regular
Slide 20: Financial Overview
Financial Overview • 2020 was a tough and unprecedented year • We reacted quickly on expenses and as well as credit risk • We strengthened our balance sheet by reducing debt by more than $575 million • We have the capital to invest to further strengthen multiple areas of our business Copyright 2018
Slide 21: Questions + Answers
Questions + Answers Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 22: Earnings Reconciliation (Q4)
Earnings Reconciliation ($ in millions except per share data) Q4 2019 Q4 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $139.8 ($0.0) $139.8 $70.3 $0.1 $70.4 Operating Expenses 71.3 (1.1) 70.2 53.0 (0.6) 52.3 Income from Operations 68.5 1.1 69.6
Slide 23: Earnings Reconciliation (Full Year)
Earnings Reconciliation ($ in millions except per share data) For the Year Ended December 31, 2019 For the Year Ended December 31, 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $551.6 $0.0 $551.6 $352.9 $0.1 $353.1 Operating Expenses 267.6 (2.8