Exhibit 99.1
| NEWS RELEASE for February 25, 2004 at 8:00 AM EST | ||||
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) 428-8000 | |||
or | ||||
Len Hall (Media) | ||||
len@allencaron.com | ||||
(949) 474-4300 | ||||
WORLD FUEL SERVICES REPORTS RECORD RESULTS
MIAMI (Feb 25, 2004) … 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 fourth quarter ended December 31, 2003, was $5.6 million, or $0.50 per diluted share, compared to $4.7 million, or $0.43 per diluted share, for the same quarter in the prior year. For the year ended December 31, 2003, the Company reported net income of $21.9 million, or $1.96 per diluted share, compared to $14.3 million, or $1.32 per diluted share, for the same period a year ago. Included in last year’s December 31, 2002, year-end results was a non-recurring after-tax charge of $970 thousand or $0.09 per diluted share from a previously announced debt settlement and a $2.8 million after-tax charge, or $0.25 per diluted share, from previously announced executive severance for the former Chairman of the Board of Directors and four other executives.
“2003 was a very good year for World Fuel Services,” said Paul Stebbins, Chairman and Chief Executive Officer. “Due to the tremendous effort of our global team we delivered strong financial performance and significantly expanded our business. We will continue to focus on building durable long-term value for our shareholders and look forward to further growth in 2004.”
FOURTH QUARTER AND YEAR END FINANCIAL HIGHLIGHTS
| Quarter Ended | Year Ended | ||||||||||||
| ($ in thousands, except per share data) | |||||||||||||
| 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | ||||||||||
Revenue | $ | 705,571 | $ | 577,387 | $ | 2,661,790 | $ | 1,898,181 | |||||
Income From Operations | $ | 7,127 | $ | 6,812 | $ | 26,990 | $ | 20,169 | (a) | ||||
Net Income | $ | 5,629 | $ | 4,719 | $ | 21,874 | $ | 14,345 | (a)(b) | ||||
Diluted earnings per share | $ | 0.50 | $ | 0.43 | $ | 1.96 | $ | 1.32 | (a)(b) | ||||
MORE-MORE-MORE
WORLD FUEL SERVICES REPORTS RECORD RESULTS
Page 2-2-2
| (a) | Includes non-recurring charges of $4.5 million, or $2.8 million after-tax charges, or $0.25 per diluted share for the year ended December 31, 2002, from previously announced executive severance for the former Chairman of the Board of Directors and four other executives. |
| (b) | Includes a $970 thousand after-tax non-recurring charge for the year ended December 31, 2002, or $0.09 per diluted share, from a previously announced debt settlement. |
About World Fuel Services Corporation
Headquartered in Miami, 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) 428-8000 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 RECORD RESULTS
Page 3-3-3
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
| As of December 31, | ||||||
| 2003 | 2002 | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 76,256 | $ | 57,776 | ||
Accounts and notes receivable, net | 192,119 | 177,360 | ||||
Inventories | 22,940 | 5,144 | ||||
Prepaid expenses and other current assets | 19,706 | 22,300 | ||||
Total current assets | 311,021 | 262,580 | ||||
PROPERTY AND EQUIPMENT, NET | 6,963 | 6,874 | ||||
OTHER ASSETS: | ||||||
Goodwill, net | 34,003 | 34,003 | ||||
Intangible assets, net | 1,104 | 1,472 | ||||
Other | 4,587 | 7,358 | ||||
| $ | 357,678 | $ | 312,287 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Short-term debt | $ | 1,600 | $ | 2,527 | ||
Accounts payable | 172,885 | 146,784 | ||||
Accrued expenses | 9,987 | 16,788 | ||||
Other current liabilities | 20,290 | 14,260 | ||||
Total current liabilities | 204,762 | 180,359 | ||||
LONG-TERM LIABILITIES | 4,537 | 4,198 | ||||
COMMITMENTS AND CONTINGENCIES | — | — | ||||
STOCKHOLDERS’ EQUITY | 148,379 | 127,730 | ||||
| $ | 357,678 | $ | 312,287 | |||
MORE – MORE – MORE
WORLD FUEL SERVICES REPORTS RECORD RESULTS
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WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months December 31, | For the Year Ended December 31, | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenue | $ | 705,571 | $ | 577,387 | $ | 2,661,790 | $ | 1,898,181 | ||||||||
Cost of sales | (682,191 | ) | (554,706 | ) | (2,561,082 | ) | (1,814,114 | ) | ||||||||
Gross profit | 23,380 | 22,681 | 100,708 | 84,067 | ||||||||||||
Operating expenses: | ||||||||||||||||
Salaries and wages | (8,815 | ) | (8,339 | ) | (38,757 | ) | (31,554 | ) | ||||||||
Executive severance charge | — | — | — | (4,492 | ) | |||||||||||
Provision for bad debts | (808 | ) | (736 | ) | (6,281 | ) | (2,866 | ) | ||||||||
Other | (6,630 | ) | (6,794 | ) | (28,680 | ) | (24,986 | ) | ||||||||
| (16,253 | ) | (15,869 | ) | (73,718 | ) | (63,898 | ) | |||||||||
Income from operations | 7,127 | 6,812 | �� | 26,990 | 20,169 | |||||||||||
Other income (expense), net | 316 | (182 | ) | 628 | (1,926 | )(a) | ||||||||||
Income before income taxes | 7,443 | 6,630 | 27,618 | 18,243 | ||||||||||||
Provision for income tax | (1,814 | ) | (1,911 | ) | (5,744 | ) | (3,898 | )(b) | ||||||||
Net income | $ | 5,629 | $ | 4,719 | $ | 21,874 | $ | 14,345 | (a)(c) | |||||||
Basic earnings per share | $ | 0.53 | $ | 0.45 | $ | 2.06 | $ | 1.37 | (a)(c) | |||||||
Weighted average shares - basic | 10,649 | 10,562 | 10,617 | 10,449 | ||||||||||||
Diluted earnings per share | $ | 0.50 | $ | 0.43 | $ | 1.96 | $ | 1.32 | (a)(c) | |||||||
Weighted average shares - diluted | 11,321 | 11,020 | 11,169 | 10,895 | ||||||||||||
| (a) | Include a non-recurring charge of $1.6 million, or $970 thousand after-tax, or $0.09 per basic and diluted share, from a debt settlement. |
| (b) | Reflect the impact of the executive severance charges and the non-recurring charge, for which the Company received an income tax benefit. |
| (c) | Include $2.8 million after-tax charges, or $0.26 per basic share and $0.25 per diluted share, from executive severance for the former Chairman of the Board of Directors and four other executives. |
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