Slide 1: Second Quarter 2020 Earnings Call
Second Quarter 2020 Earnings Call Thursday, July 30, 2020 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: Business Overview
Business Overview Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 6: Financial Overview
Financial Overview Adjusted net income and EPS were $8 million and $0.13 per share, Adjusted EBITDA for the second quarter was $57 million We generated $236 million of cash flow from operations Announced sale of the MultiService business to Corsair Capital Copyright 2019 World Fuel Services
Slide 7: Consolidated Revenue ($ in millions)
Consolidated Revenue ($ in millions) $9,459 $3,158 Q2 2019 Q2 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 8: Volume by Segment
Volume by Segment 2,144 5.1 1,330 4.0 1,168 688 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) * * Includes gallon and gallon equivalents Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 9: Consolidated Gross Profit ($ in millions)
Consolidated Gross Profit ($ in millions) $269 $214 Q2 2019 Q2 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 10: Gross Profit by Segment ($ in millions)
Gross Profit by Segment ($ in millions) $140 $92 $92 $85 $36 $37 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Aviation Marine Land Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 11: Consolidated Operating Expenses (excluding bad debt provision)
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) $188 $175 Q3’20 Estimate: $154 $149 - $154 Q2 2019 Q1 2020 Q2 2020 Q3 2020E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 12: Cost Reduction Measures We Have Taken
Cost Reduction Measures We Have Taken Global hiring freeze and other organizational changes Postponement or elimination of all non-essential projects and initiatives Rationalization of global office footprint Significant reduction in discretionary spending Copyright 2019 World Fuel Services
Slide 13: Consolidated Income From Operations ($ in millions)
Consolidated Income From Operations ($ in millions) $78 $35 Q2 2019 Q2 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 14: Non-operating Expense ($ in millions)
Non-operating Expense ($ in millions) $17.6 $14.9 Q2 2019 Q2 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5
Slide 15: Financial Overview
Financial Overview • Total Accounts Receivable balance was $1.4 billion • We generated $236 million of cash flow from operations • Our net debt declined by $200 million sequentially to $450 million • Available liquidity remained at more than $1 billion • The announced sale of our MultiService busine
Slide 16: Questions + Answers
Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 17: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Q2 2019 Q2 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $140.5 $0.0 $140.5 $91.9 $0.0 $91.9 Operating Expenses 67.0 (0.7) 66.3 82.9 (7.6) 75.3 Income from Operations 73.5 0.7 74.1 9
Slide 18: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Jun YTD 2019 Jun YTD 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $254.8 $0.0 $254.8 $185.0 $0.0 $185.0 Operating Expenses 125.7 (1.0) 124.7 147.0 (8.0) 139.0 Income from Operations