INT

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World Fuel Services Corp.
9800 NW 41st Street
Suite 400
Miami, FL 33178
United States - Map
Phone: 305-428-8000
Fax: 201-692-3247
Web Site: http://www.wfscorp.com

DETAILS  
Index Membership: S&P 600 SmallCap
S&P 1500 Super Comp
Sector: Services
Industry: Basic Materials Wholesale
Full Time Employees: 743


BUSINESS SUMMARY  
World Fuel Services Corporation, through its subsidiaries, engages in the marketing and sale of marine, aviation, and land fuel products and related services worldwide. It operates in three segments: Marine, Aviation, and Land. The Marine segment markets fuel and related services to various customers, including international container and tanker fleets, and time-charter operators, as well as to the United States and foreign governments. It offers these products and services under World Fuel, Trans-Tec, Bunkerfuels, Oil Shipping, Marine Energy, Norse Bunker, Casa Petro, and Tramp Oil trade names. The Aviation segment markets fuel and related services to commercial airlines, second and third-tier airlines, cargo carriers, regional and low cost carriers, corporate fleets, fractional operators, private aircraft, military fleets, and to the United States and foreign governments. Its aviation related services include fuel management and price risk management, as well as arranges ground handling and international trip planning, including flights plans, weather reports, and overflight permits. It offers these products and services under World Fuel, Baseops, Airdata, PetroServicios de Mexico, and PetroServicios de Costa Rica trade names. The Land segment markets fuel and related services to petroleum distributors operating in the land transportation market. Its land related services include management services for the procurement of fuel, price risk management, and financing. The company sells its products and services through a network of offices located in the United States, the United Kingdom, Denmark, Norway, the Netherlands, Germany, Greece, Turkey, the United Arab Emirates, Russia, the People's Republic of China, Taiwan, South Korea, Singapore, Japan, Hong Kong, Costa Rica, Brazil, Chile, Argentina, Mexico, Colombia, and South Africa. World Fuel Services was founded in 1984 and is based in Miami, Florida.

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World Fuel Services Corporation Reports Results for the Fourth Quarter and Full Year 2007
Thursday February 28, 4:05 pm ET


MIAMI--(BUSINESS WIRE)--World Fuel Services Corporation (NYSE:INT - News), a global leader in the marketing and sale of marine, aviation and land fuel products and related services, today reported fourth quarter net income of $18.1 million, ($0.64 and $0.63 per share on a basic and diluted basis, respectively), compared to $17.3 million, ($0.62 and $0.60 per share on a basic and diluted basis, respectively), in the fourth quarter of 2006. Our 2007 fourth quarter results were adversely affected by an impairment charge of $2.4 million relating to the write down of capitalized software development costs associated with an aviation flight planning company acquired in 1998. The after-tax effect of the impairment charge was $1.7 million, or $0.06 per share on a basic and diluted basis. For the full year, net income was $64.8 million ($2.30 and $2.23 per share on a basic and diluted basis, respectively), compared to $63.9 million ($2.33 and $2.21 per share on a basic and diluted basis, respectively) in 2006. Our full year results were impacted by impairment charges relating to the write down of a commercial paper investment and capitalized software development costs, aggregating $3.0 million after-tax, or $0.11 per share on a basic and diluted basis.
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"While full year results were clearly impacted by strategic investments in people and systems, we finished the year with a strong fourth quarter," said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. "Our aviation segment which delivered strong growth in volumes and gross profit for the year, generated record gross profit of $39.1 million in the fourth quarter, an increase of 18% sequentially and 37% year-over-year. As in the third quarter, our aviation segment benefited from increases in jet fuel prices during the quarter," added Stebbins.

Our marine segment also delivered solid growth in volume and profitability in 2007, generating gross profit of $32.8 million in the fourth quarter, an increase of 22% from the third quarter and 20% year-over-year. "Our marine segment has now generated year-over-year increases in gross profit for twelve out of the last thirteen quarters and while gross profit in our land segment decreased 8% sequentially, gross profit increased 10% year-over-year, our sixth consecutive year-over-year increase in gross profit," stated Michael J. Kasbar, president and chief operating officer.

"During the fourth quarter, the company also refinanced its bank credit facility, increasing availability under the facility to $475 million and extending the terms of such facility through December 2012," stated Ira M. Birns, Executive Vice President and Chief Financial Officer. "This facility provides us with increased liquidity to support both organic and strategic growth opportunities going forward," added Birns.

FOURTH QUARTER AND FULL YEAR FINANCIAL HIGHLIGHTS

($ in thousands, except per share data)

   
 
Quarter Ended December 31,
    Year Ended December 31,

2007     2006   2007     2006 
Revenue  $  4,145,522   $  2,618,733   $  13,729,555   $  10,785,136 
Gross profit  $  73,841   $  57,721   $  245,272   $  214,069 
Income from operations
$  24,554   $  18,837   $  85,888   $  76,646 
Net income  $  18,130   $  17,269   $  64,773   $  63,948 
Basic earnings per share
$  0.64   $  0.62   $  2.30   $  2.33 
Diluted earnings per share
$
0.63   $  0.60   $  2.23   $  2.21 


About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services Corporation is a global leader in the marketing and sale of marine, aviation and land fuel products and related services. World Fuel Services provides fuel and related services at more than 2,500 airports, seaports and tanker truck loading terminals worldwide. With 43 offices (including satellite offices) strategically located throughout the world, World Fuel Services offers its customers a value-added outsource service for the supply, quality control, logistical support and price risk management of marine, aviation and land fuel.

The Company's global team of market makers provides deep domain expertise in all aspects of marine, aviation and land fuel management. World Fuel Services' marine customers include international container and tanker fleets and time-charter operators, as well as the United States and foreign governments. Aviation customers include commercial airlines, cargo carriers and corporate clientele, as well as the United States and foreign governments. Land customers are primarily petroleum distributors. For more information, call (305) 428-8000 or visit http://www.wfscorp.com.

Information Relating to Forward-Looking Statements

With the exception of historical information in this news release, this document includes forward-looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, fluctuations in world oil prices or foreign currency, major changes in political, economic, regulatory, or environmental conditions, the loss of key customers, suppliers or key members of senior management, uninsured losses, competition, credit risk associated with accounts and notes receivable, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from any forward-looking statements set forth herein.

WORLD FUEL SERVICES CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA) 
             
For the Three Months Ended   For the Year Ended 
December 31,   December 31, 
2007   2006   2007   2006 
         
Revenue  $  4,145,522   $  2,618,733   $  13,729,555   $  10,785,136 
Cost of sales     4,071,681      2,561,012      13,484,283      10,571,067 
Gross profit     73,841      57,721      245,272      214,069 
         
Operating expenses:         
Compensation and employee benefits   26,104    21,828    94,809    82,987 
Executive severance costs   -    -    -    1,545 
Provision for bad debts   1,298    2,292    1,892    3,869 
General and administrative     21,885      14,764      62,683      49,022 
    49,287      38,884      159,384      137,423 
         
Income from operations   24,554    18,837    85,888    76,646 
         
Interest and other income, net     582      2,278      698      4,753 
         
Income before income taxes   25,136    21,115    86,586    81,399 
Provision for income taxes     6,876      3,698      21,235      17,353 
  18,260    17,417    65,351    64,046 
             
Minority interest in income of consolidated subsidiaries
    130      148      578      98 
         
Net income  $  18,130   $  17,269   $  64,773   $  63,948 
         
Basic earnings per share  $  0.64   $  0.62   $  2.30   $  2.33 
         
Basic weighted average shares     28,213      27,835      28,102      27,467 
         
Diluted earnings per share  $  0.63   $  0.60   $  2.23   $  2.21 
         
Diluted weighted average shares     29,004      29,021      29,062      28,923 


WORLD FUEL SERVICES CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(UNAUDITED - IN THOUSANDS) 
         
  As of December 31, 
  2007   2006 
ASSETS     
CURRENT ASSETS:     
Cash and cash equivalents   $  36,151   $  176,495 
Restricted cash    10,000    - 
Short-term investments    8,100    12,500 
Accounts and notes receivable, net    1,370,656    860,084 
Inventories    103,029    74,519 
Receivables related to derivative contracts    86,531    37,070 
Prepaid expenses and other current assets      50,841      35,423 
       
Total current assets    1,665,308    1,196,091 
       
PROPERTY AND EQUIPMENT, NET    36,870    26,730 
       
GOODWILL    52,104    44,321 
       
IDENTIFIABLE INTANGIBLE ASSETS, NET    26,478    4,961 
       
OTHER ASSETS      17,286      5,297 
         
  $  1,798,046   $  1,277,400 
       
LIABILITIES AND SHAREHOLDERS' EQUITY     
CURRENT LIABILITIES:     
Short-term debt   $  53   $  10 
Accounts payable    1,066,971    720,790 
Payables related to derivative contracts    88,302    34,209 
Customer deposits    38,452    23,399 
Accrued expenses and other current liabilities      37,333      48,353 
       
Total current liabilities    1,231,111    826,761 
       
DEBT   
  45,191    20,062 
       
LONG-TERM LIABILITIES    37,867    4,608 
       
SHAREHOLDERS' EQUITY      483,877      425,969 
         
  $  1,798,046   $  1,277,400 


WORLD FUEL SERVICES CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(UNAUDITED - IN THOUSANDS) 
             
For the Three Months Ended   For the Year Ended 
December 31,   December 31, 
2007   2006   2007   2006 
Cash flows from operating activities:         
Net income  $  18,130      $  17,269      $  64,773      $  63,948     
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
       
Provision for bad debts   1,298     2,292     1,892     3,869   
Depreciation and amortization   2,710     1,431     6,901     4,866   
Deferred income tax (benefit) provision   (2,373  )    814     (3,020  )    4,187   
Unrealized derivatives losses (gains), net   715     561     107     (856  ) 
Share based payment compensation costs for employees and non-employee directors
  1,731     2,152     7,166     7,035   
Software write-down   2,445     -     2,445     -   
Impairment on short-term investments   -     -     1,900     -   
Other non-cash operating charges (credits)   688     133     449     73   
Changes in operating assets and liabilities:         
Accounts receivable   (175,411  )    (31,831  )    (454,293  )    (174,348  ) 
Inventories   11,481     (7,912  )    (26,780  )    (37,871  ) 
Other current assets   (44,704  )    (3,155  )    (57,182  )    3,607   
Other assets   (7,623  )    29     (9,094  )    (26  ) 
Accounts payable   88,980     59,979     316,277     185,215   
Accrued expenses and other current liabilities   41,765     12,175     60,351     8,406   
Other     9,074         (746  )      10,181         (221  ) 
Total adjustments     (69,224  )      35,922         (142,700  )      3,936     
Net cash (used in) provided by operating activities     (51,094  )      53,191         (77,927  )      67,884     
Cash flows from investing activities:         
Capital expenditures   (3,912  )    (4,698  )    (16,581  )    (20,031  ) 
Purchases of short-term investments   -     (27,500  )    (30,060  )    (58,555  ) 
Proceeds from the sale of short-term investments   -     25,000     32,560     56,055   
Acquisition of business, net of cash acquired     (54,907  )      -         (54,907  )      (2,646  ) 
Net cash used in investing activities     (58,819  )      (7,198  )      (68,988  )      (25,177  ) 
Cash flows from financing activities:         
Dividends paid on common stock   (1,064  )    (1,066  )    (4,253  )    (4,160  ) 
Borrowings (repayments), net, under revolving credit facility   20,000     -     20,000     -   
Restricted cash   (10,000  )    -     (10,000  )    -   
Other     2,675         1,370         824         4,664     
Net cash used in financing activities     11,611         304         6,571         504     
Net (decrease) increase in cash and cash equivalents   (98,302  )    46,297     (140,344  )    43,211   
Cash and cash equivalents, at beginning of period     134,453         130,198         176,495         133,284     
Cash and cash equivalents, at end of period  $  36,151      $  176,495      $  36,151      $  176,495     

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