Slide 1: Second Quarter 2019 Earnings Call
Second Quarter 2019 Earnings Call Thursday, July 25, 2019 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 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview Adjusted EBITDA for the second quarter was $98 million, up $14 million or 17% Adjusted diluted earnings per share was $0.58, up 23% compared to Q2’18 Generated operating cash flow of $125 million o Repurchased $65 million common stock o Previously announced dividend increase
Slide 6: Consolidated Revenue
Consolidated Revenue ($ in millions) $10,152 $9,459 Q2 2018 Q2 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 7: Volume by Segment
Volume by Segment 2,090 2,144 5.9 5.1 1,432 1,330 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 8: Non-Operational Items
Non-Operational Items (1) ($ in millions) MARINE SEGMENT……………………………….…..................................$0.9 AVIATION SEGMENT ….................................................................. $0.7 LAND SEGMENT ….......................................................................... $0.3 UNALLOC
Slide 9: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $269 $247 Q2 2018 Q2 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 10: Gross Profit by Segment
Gross Profit by Segment ($ in millions) $140 $127 $89 $92 $36 $30 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Aviation Marine Land Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 11: Consolidated Operating Expenses
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q3’19 Estimate: $185 - $189 $188 $180 $176 Q2 2018 Q1 2019 Q2 2019 Q3 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 12: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $78 $65 Q2 2018 Q2 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 13: Consolidated EBITDA
Consolidated EBITDA ($ in millions) $388 $98 $84 $311 Q2 2018 Q2 2019 TTM Q2 2018 TTM Q2 2019 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 14: Interest Expense
Interest Expense ($ in millions) Q3’19 Estimate: $20.2 $19.0 $17.9 Q2 2018 Q2 2019 Q3 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 15: Effective Tax Rate
Effective Tax Rate Q3’19-Q4’19 Estimate: 32% - 36% 34.3% 28.8% Q2 2018 Q2 2019 Q3-Q4 2019E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 16: Adjusted Net Income & Adjusted Diluted Earnings Per Share
Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $38.8 $31.7 $0.58 $0.47 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Adjusted Net Income Adjusted Diluted EPS Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 17: Balance Sheet Management
Balance Sheet Management Total Accounts Receivable $2.7 Billion at quarter end Cash Flow from Operations $125 million generated in the second quarter Net debt-to-Adjusted EBITDA 1.2x driven by solid working capital management Amended and Extended Bank Facility Further strengthening liquidity profile
Slide 18: Financial Overview
Financial Overview • TTM adjusted EBITDA increased to $388 million, up 32% since Q2 2017 • Generated operating cash flow of $373 over the past two years * • TTM operating expense ratio declined by 640 basis points since Q2 2017 • We repurchased $65 million of our common stock and increased our divid
Slide 19: Questions + Answers
Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 20: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q2 2018 Q2 2019 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $127.4 $0.0 $127.4 $140.5 $0.0 $140.5 Operating Expenses 63.2 (0.3) 62.9 67.0 (0.7) 66.3 Income from Operations 64.2 0.3 64.5