Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call July 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: Q2 2024 Results
Q2 2024 Results © World Kinect Corporation 7
Slide 8: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Gross Profit Operating Cash Flow GAAP Diluted EPS (13)% +277% $245MM $68MM $1.81 Total Volumes1 Free Cash Flow2 Adj. Diluted EPS3 (2)% 4.4Bn $53MM $0.48 Note: Q2 2024 information as reported as of July 25, 2024, compared to prior year’s results. 1. Includes gallons and g
Slide 9: Q2 2024 Results
Q2 2024 Results Volumes1 Gross Profit -2% -13% 4,465 4,373 $282 $245 Aviation 1,847 1,825 $128 Marine $128 Land 1,111 1,098 $42 $37 Gallons $111 1,508 1,449 $MM in MM1 $81 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Note: 1. Includes gallons and gallon equivalents. © World Kinect Corporation 9
Slide 10: Segment Overview: Aviation
Segment Overview: Aviation Quarter Highlights & Q3 Outlook Volumes Gross Profit Q2 2024 Highlights Versus Q2 2023: -1% • Note that results were impacted by the 1,847 1,825 $128.2 $127.7 Avinode sale, completed in May. • Volumes were down principally related to a reduction in low-margin activity over
Slide 11: Segment Overview: Land
Segment Overview: Land Quarter Highlights & Q3 Outlook Volumes1 Gross Profit Q2 2024 Highlights Versus Q2 2023: -4% -28% • While commercial & industrial, retail and 1,508 $111 natural gas volumes increased year-over- 1,449 year, overall volumes decreased principally driven by a decline in our North
Slide 12: Segment Overview: Marine
Segment Overview: Marine Quarter Highlights & Q3 Outlook Volumes Gross Profit Q2 2024 Highlights Versus Q2 2023: -1% -13% • While volumes were essentially flat year- 4.2 4.2 $42 over-year, gross profit decreased $37 approximately 13%, driven principally by lower market volatility than experienced in
Slide 13: Q3 2024 Gross Profit Guidance
Q3 2024 Gross Profit Guidance Total Gross Profit Guidance1 $MM Q3 2024 Guidance1 $265 – $274MM Q3 2024E Note: 1. Not a guarantee of actual future performance. Actual performance is subject to various risks and uncertainties, including those referenced in our 2023 Form 10-K and other filings with the
Slide 14: Adjusted Operating Expense Continue to Trend Down Year-over-Year
Adjusted Operating Expense Continue to Trend Down Year-over-Year Total Adjusted Operating Expenses $MM Prior Guidance: Q3 2024 $196-200MM1 Guidance2 $205 $208 $207 $198 $190 $192 $193-197MM Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024E Note: 1. Guidance for Q2 2024 earnings provided on Ap
Slide 15: Interest Expenses Continue to Decrease
Interest Expenses Continue to Decrease Interest Expense $MM Q3 2024 $36 Prior Guidance2 $34 Guidance: $32 $32 $28 – 29MM1 $29 $29 $27 $26–27MM Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024E Note: 1. Guidance for Q2 2024 earnings provided on April 25, 2024. 2. Not a guarantee of act
Slide 16: Strong Cash Flow Provides Financial Flexibility
Strong Cash Flow Provides Financial Flexibility Operating Cash Flow1 Free Cash Flow2 $MM $143 $110 $80 $68 $124 $44 $93 $59 $5 $53 $16 -$15 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Note: 1. Full bars represent Total Operating Cash Flow. 2. Free Cash Flow is defined as operating cash flow minu
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: Guidance Summary
Guidance Summary1 Date Guidance Period Guidance Metric Guidance Actual Provided Q2 2024 Adj. Operating Expense $196 –200MM ✓ $192MM April 25, 20242 Q2 2024 Interest Expense $28–29MM ✓ $27MM FY 2024 FY 2024 Tax Rate 23 – 27% Q3 2024 Adj. Operating Expense $193 – 197MM Q3 2024 Interest Expense $26–27M
Slide 19: Appendix
Appendix © World Kinect Corporation 19
Slide 20: Non-GAAP Reconciliation (1/6)
Non-GAAP Reconciliation (1/6) For the Three Months Ended June 30, For the Six Months Ended June 30, $ in millions, except per share data 2024 2023 2024 2023 Net Earnings per Net Earnings per Net Earnings per Net Earnings per Income share Income share Income share Income share GAAP Measure $108.3 $1.
Slide 21: Non-GAAP Reconciliation (2/6)
Non-GAAP Reconciliation (2/6) $ in millions For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net income (loss) including noncontrolling interest $106.9 $30.5 $134.1 $53.0 Interest expense and other financing cost, net 27.5 32.5 56.4 66.8 Provision (benefit) f
Slide 22: Non-GAAP Reconciliation (3/6)
Non-GAAP Reconciliation (3/6) $ in millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, 2023 2023 2023 2023 2024 2024 Operating Expenses GAAP Measure 198.2 206.2 208.2 247.7 190.8 200.0 Acquisition and divestiture related expenses - 0.5 - 0.4 - - Finis
Slide 23: Non-GAAP Reconciliation (4/6)
Non-GAAP Reconciliation (4/6) $ 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 24: Non-GAAP Reconciliation (5/6)
Non-GAAP Reconciliation (5/6) $ in millions For the Three Months Ended June 30, GAAP Acquisition Asset Integration Finnish bid Restructuring Total Adjusted Non- Measure and divestiture Impairments Costs error Charges Adjustments GAAP Measure 2024 Consolidated Gross Profit $245.2 - - - - - - $245.2 2
Slide 25: Non-GAAP Reconciliation (6/6)
Non-GAAP Reconciliation (6/6) $ in millions For the Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, 2023 2023 2023 2023 2024 2024 Operating Cash Flow $143 $44 $80 $5 $110 $68 CapEx 19 28 21 20 17 15 Free Cash Flow 124 16 59 (15) 93 53 © 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