World Kinect Corporation · NYSE:WKC
World Kinect — World Fuel Services — Q3 2018 Earnings Presentation
22 slides from World Kinect's earnings presentation, Oct 25, 2018
Slide 1: Third Quarter 2018 Earnings Call
Third Quarter 2018 Earnings Call Thursday, October 25, 2018 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 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 4: Our Three Pillars
Our Three Pillars Aggressive Continuous Cost Sharpening Organic Management our Portfolio Growth Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 6: Financial Overview
Financial Overview Record results in our aviation segment Highest level of profitability in our marine segment in nearly three years Consolidated adjusted EBITDA grew to more than $100 million Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 7: Adjusted Net Income & Adjusted Diluted Earnings Per Share
Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $42.5 $40.9 $0.63 $0.60 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Adjusted Net Income Adjusted Diluted EPS Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 8: Consolidated Revenue
Consolidated Revenue ($ in millions) $10,430 $8,543 Q3 2017 Q3 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 9: Volume by Segment
Volume by Segment 2,089 6.8 2,059 6.0 1,497 1,345 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 10: Non-Operational Items
Non-Operational Items (1) ($ in millions) LAND SEGMENT ….......................................................................... $2.4 UNALLOCATED CORPORATE…........................................................... $2.2 AVIATION SEGMENT …...........................................................
Slide 11: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $267 $240 Q3 2017 Q3 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 12: Gross Profit by Segment
Gross Profit by Segment ($ in millions) $141 $124 $85 $83 $43 $30 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Aviation Marine Land Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 13: Consolidated Operating Expenses (excluding bad debt provision)
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q4’18 Estimate: $175 - $180 $180 $180 $174 Q3 2017 Q2 2018 Q3 2018 Q4 2018E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 14: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $84 $64 Q3 2017 Q3 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 15: Consolidated EBITDA
Consolidated EBITDA ($ in millions) $104 $331 $311 $85 Q3 2017 Q3 2018 TTM Q2 2018 TTM Q3 2018 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 16: Non-Operating Expenses
Non-Operating Expenses ($ in millions) Q4’18 Estimate: $17 - $19 $15.8 $16.4 Q3 2017 Q3 2018 Q4 2018E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 17: Effective Tax Rate
Effective Tax Rate Q4’18 Estimate: 34% - 36% 36.0% 13.6% Q3 2017 Q3 2018 Q4 2018E Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 5
Slide 18: Balance Sheet Management
Balance Sheet Management Total Accounts Receivable $3.1 Billion at quarter end Net debt-to-Adjusted EBITDA 1.8x driven by solid working capital management Share Repurchase $20 million of common stock repurchased during the third quarter Copyright 2018 World Fuel Services Corporation. All Rights Rese
Slide 19: Financial Overview
Financial Overview • Our business performed very well highlighted by record profitability in aviation and better than expected marine profits • We generated record adjusted EBITDA of more than $100 million • We are committed to driving further efficiencies in our business model Copyright 2018 World
Slide 20: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 21: Questions + Answers
Questions + Answers Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 22: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q3 2017 Q3 2018 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $123.9 $0.0 $123.9 $140.7 $0.2 $140.9 Operating Expenses 62.3 (0.3) 62.0 64.3 (1.0) 63.3 Income from Operations 61.6 0.3 61.9