Slide 1: 2017 Third Quarter Earnings Call
World Fuel Services Corporation 2017 Third Quarter Earnings Call October 26, 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 3
Slide 4: Third Quarter Overview
Third Quarter Overview • Today we announced third quarter adjusted earnings of $41 million or $0.60 adjusted diluted earnings per share • During the third quarter we experienced a concentrated series of natural events which impacted our business operations in the US, Mexico and Puerto Rico • Our avi
Slide 5: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 5
Slide 6: Consolidated Revenue
Consolidated Revenue ($ in millions) $8,543 $7,400 Q3'16 Q3'17 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 6
Slide 7: Volume by Segment
Volume by Segment 7.8 6.8 2,059 1,893 1,497 1,422 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 7
Slide 8: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $240 $237 Q3'16 Q3'17 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 8
Slide 9: Gross Profit by Segment
Gross Profit by Segment ($ in millions) $124 $112 $88 $85 $37 $30 Q3'16 Q3'17 Q3'16 Q3'17 Q3'16 Q3'17 Aviation Marine Land 9 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 10: Non-Recurring Items
Non-Recurring Items ($ in millions) Land segment $ 1.4 Marine segment $ 0.5 Aviation segment $ 0.3 Corporate overhead-unallocated $ 0.4 Non-operating expense $ 0.8 Total non-recurring items $ 3.4 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 10
Slide 11: Consolidated Operating Expenses (excluding bad debt provision)
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q4’17E: $175 – $179 $174 $174 Q3'16 Q3'17 Q4'17E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 11
Slide 12: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $64 $61 Q3'16 Q3'17 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 12
Slide 13: Non-Operating Expenses
Non-Operating Expenses ($ in millions) Q4’17E: $15 – $17 15.8 9.8 Q3'16 Q3'17 Q4'17E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 13
Slide 14: Effective Tax Rate
Effective Tax Rate Q4’17E: 15% – 19% 13.6% 11.0% Q3'16 Q3'17 Q4'17E Q3 2017 excludes the impact of the deferred tax asset valuation allowance of $77 million. Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 14
Slide 15: Net Income
Net Income ($ in millions) $57.2 $52.0 $45.1 $40.9 Q3'16 Q3'17 Q3'16 Q3'17 Adjusted Net Income Non-GAAP Net Income Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 15
Slide 16: Diluted Earnings Per Share
Diluted Earnings Per Share $0.82 $0.77 $0.65 $0.60 Q3'16 Q3'17 Q3'16 Q3'17 Adjusted EPS Non-GAAP EPS Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 16
Slide 17: Balance Sheet Management
Balance Sheet Management • Total accounts receivable was $2.6 billion at quarter end • Net working capital was $1.1 billion o Driven by higher average fuel prices during the quarter • Operating cash outflow of $111 million during the third quarter • Repurchased additional $30 million of common stock
Slide 18: In Closing
In Closing • We delivered reasonably strong results in a quarter where we faced significant market disruptions • We are strategically reviewing all non-core assets and businesses and identifying additional cost efficiency opportunities • Working with Board of Directors to formulate our strategic pla
Slide 19: Questions & Answers
Questions & Answers Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 19
Slide 20: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q3 2016 Q3 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Revenue $7,399.8 $0.0 $7,399.8 $8,543.0 $0.0 $8,543.0 Gross Profit 236.7 - 236.7 239.9 - 239.9 Operating Expenses 178.4 (2.6) 175.9 178.6 (2.5) 176.0
Slide 21: Guidance Reconciliation
Guidance Reconciliation With regard to the Company’s outlook for 2017, reconciliation of Adjusted EPS to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and complexity with respect to the charges excluded