Exhibit 99.1
[LOGO OF WORLD FUEL SERVICES CORPORATION]
NEWS RELEASE for February 26, 2003 at 8:00 AM EDT
Contact: | Allen & Caron Inc | World Fuel Services Corporation | ||
Michael Mason (Investors) | Francis X Shea, CFO & EVP | |||
michaelm@allencaron.com | fshea@wfscorp.com | |||
(212) 691-8087 | (305) 884-2001 | |||
or | ||||
Len Hall (Media) | ||||
len@allencaron.com | ||||
(949) 474-4300 |
WORLD FUEL SERVICES REPORTS RESULTS
FOR THE THREE AND NINE MONTHS/FISCAL YEAR ENDED DECEMBER 31, 2002
MIAMI SPRINGS, FL (February 26, 2003) . . . World Fuel Services Corporation (NYSE:INT), a global leader in the marketing and financing of aviation and marine fuel products and related services, today reported that net income for the quarter ended December 31, 2002, was $4.7 million, or $0.43 per diluted share, as compared to $4.5 million, or $0.42 per diluted share, for the same quarter the prior year. For the truncated nine-month fiscal year ended December 31, 2002, World Fuel reported earnings of $9.9 million or $0.91 per diluted share, as compared to $12.8 million, or $1.20 per diluted share, for the same nine-month period a year earlier. The Company is reporting a nine-month fiscal year for 2002 because of the change from a fiscal year end of March 31 to a calendar year end of December 31.
The results for the nine-month fiscal year just ended included two previously announced non-recurring charges, totaling $3.7 million, or $0.34 per diluted share, relating to executive severance and litigation settlement and the results for the previous nine-month period included an insurance recovery [see notes (a) and (b) below]. Excluding these non-recurring charges, net income for the nine-month fiscal year ended December 31, 2002, would have been $13.6 million, or $1.25 per diluted share, as compared to $11.8 million, or $1.11 per diluted share, for the same nine-month period a year earlier.
Revenue for the quarter ended December 31, 2002, was $577.4 million, versus $326.0 million in the same quarter of the prior year, reflecting increases in business volumes and fuel prices for both the marine and aviation segments. For the nine-month fiscal year ended December 31, 2002, revenue was $1.5 billion versus $1.0 billion in the corresponding period of the previous year.
“These results demonstrate the success of our strategy to diversify our customer base, expand our service offering and manage our risks aggressively in a difficult economic environment,” said Paul. H. Stebbins, Chairman and Chief Executive Officer. “We are very pleased with our results to date and with our market position as we enter this pivotal year of 2003.”
MORE-MORE-MORE
WORLD FUEL SERVICES REPORTS THREE AND NINE MONTHS ENDED RESULTS
Page 2-2-2
QUARTER AND NINE MONTHS FINANCIAL HIGHLIGHTS
Quarter Ended | Nine Months Ended | |||||||||
12/31/02 | 12/31/01 | 12/31/02 | 12/31/01 | |||||||
Revenue | $577,387,000 | $325,964,000 | $1,546,897,000 |
| $1,013,781,000 |
| ||||
Income from Operations | 6,812,000 | 5,561,000 | 13,786,000 |
| 14,906,000 |
| ||||
Net Income | 4,719,000 | 4,473,000 | 9,872,000 | (a) | 12,762,000 | (b) | ||||
Diluted earnings per share | $0.43 | $0.42 | $ 0.91 | (a) | $ 1.20 | (b) | ||||
| (a) | Includes after-tax, non-recurring charges of $2.8 million and $970 thousand, or $0.25 and $0.09 per diluted share, relating to a previously announced executive severance and a litigation settlement, respectively. |
| (b) | Includes the receipt of $1.0 million, or $0.09 per diluted share, from a previously announced insurance recovery. |
About World Fuel Services Corporation
Headquartered in Miami Springs, FL, World Fuel Services Corporation is a global leader in the downstream marketing and financing of aviation and marine fuel products and related services. As the marketer of choice in the aviation and shipping industries, World Fuel Services provides fuel and services at more than 1,100 airports and seaports worldwide. With 30 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 and aviation fuel.
The company’s global team of market makers provides deep domain expertise in all aspects of marine and aviation fuel management. World Fuel Services’ aviation customers include commercial, passenger and cargo operators as well as corporate clientele. The company’s marine customers include premier blue-chip companies from all segments of the market. For more information, call (305) 884-2001 or visitwww.worldfuel.com.
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.
TABLES FOLLOW
WORLD FUEL SERVICES REPORTS THREE AND NINE MONTHS ENDED RESULTS
Page 3-3-3
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
December 31, 2002 | March 31, 2002 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 57,776 | $ | 58,172 | ||
Accounts and notes receivable, net |
| 177,360 |
| 132,586 | ||
Inventories |
| 5,144 |
| 2,219 | ||
Prepaid expenses and other current assets |
| 22,300 |
| 20,162 | ||
Total current assets |
| 262,580 |
| 213,139 | ||
PROPERTY AND EQUIPMENT, NET |
| 6,874 |
| 5,618 | ||
OTHER ASSETS: | ||||||
Goodwill, net |
| 34,003 |
| 34,003 | ||
Intangible assets, net |
| 1,472 |
| 1,748 | ||
Other |
| 7,358 |
| 3,415 | ||
$ | 312,287 | $ | 257,923 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Short-term debt | $ | 2,527 | $ | 5,710 | ||
Accounts payable |
| 97,560 |
| 82,904 | ||
Accrued expenses |
| 66,012 |
| 30,806 | ||
Other current liabilities |
| 14,260 |
| 14,431 | ||
Total current liabilities |
| 180,359 |
| 133,851 | ||
LONG-TERM LIABILITIES |
| 4,198 |
| 7,633 | ||
COMMITMENTS AND CONTINGENCIES | ||||||
STOCKHOLDERS’ EQUITY |
| 127,730 |
| 116,439 | ||
$ | 312,287 | $ | 257,923 | |||
MORE – MORE – MORE
WORLD FUEL SERVICES REPORTS THREE AND NINE MONTHS ENDED RESULTS
Page 4-4-4
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenue | $ | 577,387 |
| $ | 325,964 |
| $ | 1,546,897 |
| $ | 1,013,781 |
| ||||
Cost of sales |
| (554,706 | ) |
| (307,115 | ) |
| (1,483,976 | ) |
| (958,753 | ) | ||||
Gross profit |
| 22,681 |
|
| 18,849 |
|
| 62,921 |
|
| 55,028 |
| ||||
Operating expenses: | ||||||||||||||||
Salaries and wages |
| (8,339 | ) |
| (7,455 | ) |
| (23,484 | ) |
| (22,445 | ) | ||||
Executive severance charge |
| — |
|
| — |
|
| (4,492 | ) |
| — |
| ||||
Provision for bad debts |
| (736 | ) |
| (1,072 | ) |
| (2,182 | ) |
| (3,244 | ) | ||||
Other |
| (6,794 | ) |
| (4,761 | ) |
| (18,977 | ) |
| (14,433 | ) | ||||
| (15,869 | ) |
| (13,288 | ) |
| (49,135 | ) |
| (40,122 | ) | |||||
Income from operations |
| 6,812 |
|
| 5,561 |
|
| 13,786 |
|
| 14,906 |
| ||||
Other (expense) income, net |
| (182 | ) |
| 579 |
|
| (2,030 | ) (a) |
| 1,833 | (d) | ||||
Income before income taxes |
| 6,630 |
|
| 6,140 |
|
| 11,756 |
|
| 16,739 |
| ||||
Provision for income tax |
| (1,911 | ) |
| (1,667 | ) |
| (1,884 | ) (b) |
| (3,977 | ) | ||||
Net income | $ | 4,719 |
| $ | 4,473 |
| $ | 9,872 | (a)(c) | $ | 12,762 | (d) | ||||
Basic earnings per share | $ | 0.45 |
| $ | 0.43 |
| $ | 0.94 | (a)(c) | $ | 1.23 | (d) | ||||
Weighted average shares—basic |
| 10,562 |
|
| 10,341 |
|
| 10,468 |
|
| 10,378 |
| ||||
Diluted earnings per share | $ | 0.43 |
| $ | 0.42 |
| $ | 0.91 | (a) | $ | 1.20 | (d) | ||||
Weighted average shares—diluted |
| 11,020 |
|
| 10,763 |
|
| 10,900 |
|
| 10,652 |
| ||||
| (a) | Includes a non-recurring charge of $1.6 million ($970 thousand after-tax), or $0.09 per basic and diluted share, from a previously announced litigation settlement. |
| (b) | Reflects the impact of the non-recurring executive severance charge and litigation settlement, for which the Company received an income tax benefit. |
| (c) | Includes $2.8 million in after-tax charges, or $0.26 per basic share and $0.25 per diluted share, from previously announced executive severance charges for the former Chairman of the Board of Directors and four other executives. |
| (d) | Includes the receipt of $1 million, or $0.10 per basic share and $0.09 per diluted share, from a previously announced insurance recovery. |
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