World Kinect Corporation · NYSE:WKC

World Kinect — World Fuel Services — Q3 2019 Earnings Presentation

21 slides from World Kinect's earnings presentation, Oct 30, 2019

  1. Slide 1: Third Quarter 2019 Earnings Call

    Third Quarter 2019 Earnings Call Wednesday, October 30, 2019 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  2. 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

  3. Slide 3: Business Overview

    Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  4. Slide 4: Business Overview

    Business Overview  Our team executed well driving strong operating results in the third quarter  The aviation segment delivered strong results driven by further growth in our government-related operations, as well as continued strength in our core commercial and business aviation activities  The

  5. Slide 5: Financial Overview

    Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  6. Slide 6: Financial Overview

    Financial Overview  Adjusted EBITDA for the third quarter was $118 million, up $13 million or 13% compared to Q3’18  Adjusted diluted earnings per share was $0.77, up 22% compared to Q3’18  Generated operating cash flow of $33 million Copyright 2019 World Fuel Services Corporation. All Rights Res

  7. Slide 7: Consolidated Revenue ($ in millions)

    Consolidated Revenue ($ in millions) $10,430 $9,323 Q3 2018 Q3 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  8. Slide 8: Volume by Segment

    Volume by Segment 2,175 2,089 6.0 5.5 1,345 1,351 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) * * Includes gallon and gallon equivalents Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  9. Slide 9: Consolidated Gross Profit ($ in millions)

    Consolidated Gross Profit ($ in millions) $306 $267 Q3 2018 Q3 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  10. Slide 10: Gross Profit by Segment ($ in millions)

    Gross Profit by Segment ($ in millions) $157 $141 $95 $83 $53 $43 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Aviation Marine Land Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  11. Slide 11: Significant Disruptions Impacted High Sulfur Fuel Oil in Asia During the Latter Part of the Third Quarter

    Significant Disruptions Impacted High Sulfur Fuel Oil in Asia During the Latter Part of the Third Quarter $475 Fuel 3.5% $455 $150 per ton increase $435 $415 $395 $375 $355 $335 $315 $295 $275 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Source: Singapore Bunkerwire Copyright 2019 World F

  12. Slide 12: Consolidated Operating Expenses (excluding bad debt provision)

    Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q4’19 Estimate: $195 $185 - $189 $188 $180 Q3 2018 Q2 2019 Q3 2019 Q4 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  13. Slide 13: Consolidated Income From Operations ($ in millions)

    Consolidated Income From Operations ($ in millions) $96 $84 Q3 2018 Q3 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  14. Slide 14: Consolidated EBITDA ($ in millions)

    Consolidated EBITDA ($ in millions) $118 $401 $104 $331 Q3 2018 Q3 2019 TTM Q3 2018 TTM Q3 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  15. Slide 15: Interest Expense ($ in millions)

    Interest Expense ($ in millions) Q4’19 Estimate: $21 $20.7 $19.1 Q3 2018 Q3 2019 Q4 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  16. Slide 16: Effective Tax Rate

    Effective Tax Rate Q4’19 Estimate: 31% - 35% 36.0% 30.1% Q3 2018 Q3 2019 Q4 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  17. Slide 17: Adjusted Net Income & Adjusted Diluted Earnings Per Share

    Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $50.7 $42.5 $0.77 $0.63 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Adjusted Net Income Adjusted Diluted EPS Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  18. Slide 18: Balance Sheet Management

    Balance Sheet Management Total Accounts Receivable $2.7 Billion at quarter end Net debt-to-Adjusted EBITDA 1.2x driven by solid working capital management Cash Flow from Operations $316 million generated during the past twelve months Copyright 2019 World Fuel Services Corporation. All Rights Reserve

  19. Slide 19: Financial Overview

    Financial Overview • TTM adjusted EBITDA increased to $401 million • Return on Invested Capital increased to highest level since 2014 • We remain focused on improving operating leverage • Strong liquidity position allows us to drive organic growth and make strategic investments Copyright 2019 World

  20. Slide 20: Questions + Answers

    Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  21. Slide 21: Earnings Reconciliation ($ in millions except per share data)

    Earnings Reconciliation ($ in millions except per share data) Q3 2018 Q3 2019 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $140.7 $0.2 $140.9 $156.9 $0.0 $156.9 Operating Expenses 64.3 (1.0) 63.3 70.6 (0.7) 69.9 Income from Operations 76.4 1.2 77.6

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