World Kinect Corporation · NYSE:WKC

World Kinect — World Fuel Services — Q1 2019 Earnings Presentation

20 slides from World Kinect's earnings presentation, Apr 25, 2019

  1. Slide 1: First Quarter 2019 Earnings Call

    First Quarter 2019 Earnings Call Thursday, April 25, 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 2018 World Fuel Services Corporation. All Rights Reserved.

  4. Slide 4: Financial Overview

    Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  5. Slide 5: Financial Overview

    Financial Overview  Adjusted EBITDA for the first quarter was $95 million, up $14 million or 17%  Improved operating leverage; 2019 improvement target remains 250 bps  Net debt-to-adjusted EBITDA fell to 1.3x Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  6. Slide 6: Consolidated Revenue ($ in millions)

    Consolidated Revenue ($ in millions) $9,181 $8,679 Q1 2018 Q1 2019 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  7. Slide 7: Volume by Segment

    Volume by Segment 1,967 1,971 5.8 5.2 1,458 1,346 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  8. Slide 8: Non-Operational Items

    Non-Operational Items (1) ($ in millions) LAND SEGMENT ….......................................................................... $1.1 UNALLOCATED CORPORATE…........................................................... $0.4 AVIATION SEGMENT …...........................................................

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

    Consolidated Gross Profit ($ in millions) $251 $244 Q1 2018 Q1 2019 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

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

    Gross Profit by Segment ($ in millions) $114 $110 $102 $102 $31 $35 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Aviation Marine Land Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  11. Slide 11: Consolidated Operating Expenses (excluding bad debt provision)

    Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q2’19 Estimate: $180 - $184 $180 $179 $176 Q1 2018 Q4 2018 Q1 2019 Q2 2019E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  12. Slide 12: Consolidated Income From Operations ($ in millions)

    Consolidated Income From Operations ($ in millions) $73 $62 Q1 2018 Q1 2019 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  13. Slide 13: Consolidated EBITDA ($ in millions)

    Consolidated EBITDA ($ in millions) $374 $360 $95 $81 Q1 2018 Q1 2019 TTM Q4 2018 TTM Q1 2019 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  14. Slide 14: Non-Operating Expenses ($ in millions)

    Non-Operating Expenses ($ in millions) Q2’19 Estimate: $18 - $20 $18.6 $19.0 Q1 2018 Q1 2019 Q2 2019E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  15. Slide 15: Effective Tax Rate

    Effective Tax Rate Q2’19-Q4’19 Estimate: 32% - 36% 32.4% 19.3% Q1 2018 Q1 2019 * Q2-Q4 2019E * Q1 2019 excludes a discrete tax benefit of $8.8 million which corrects a prior period with respect to a foreign tax filing Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  16. Slide 16: Adjusted Net Income & Adjusted Diluted Earnings Per Share

    Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $44.5 $35.0 $0.66 $0.52 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Adjusted Net Income Adjusted Diluted EPS Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5

  17. Slide 17: Balance Sheet Management

    Balance Sheet Management Total Accounts Receivable $2.7 Billion at quarter end Cash Flow from Operations $22 million generated in the first quarter Net debt-to-Adjusted EBITDA 1.3x driven by solid working capital management Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  18. Slide 18: Financial Overview

    Financial Overview • We delivered strong results while further improving our balance sheet and liquidity profile • We remain focused on sharpening our portfolio of business activities • Continued focus on cost control resulted in improvement in operating expense ratio • We remain focused on deliveri

  19. Slide 19: Questions + Answers

    Questions + Answers Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  20. Slide 20: Earnings Reconciliation ($ in millions except per share data)

    Earnings Reconciliation ($ in millions except per share data) As Reported Adjustments1 As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $110.0 $0.2 $110.2 $114.3 $0.0 $114.3 Operating Expenses 62.2 (0.8) 61.4 58.7 (0.3) 58.4 Income from Operations 47.8 1.0 48.8 55.6 0.4 56.0 Ma

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