Exhibit 99.1
NEWS RELEASE for August 9, 2005 at 4:30 PM EDT
| | | | |
| Contact: | | Allen & Caron Inc | | World Fuel Services Corporation |
| | | Michael Mason (Investors) | | Robert S. Tocci, CFO & EVP |
| | | michaelm@allencaron.com (212) 691-8087 | | btocci@wfscorp.com (305) 428-8000 |
| | | or | | |
| | | Len Hall (Media) | | |
| | | len@allencaron.com | | |
| | | (949) 474-4300 | | |
WORLD FUEL SERVICES REPORTS EXCELLENT RESULTS FOR THE SECOND QUARTER AND
THE FIRST SIX MONTHS OF 2005 AND AN EXPANSION OF ITS REVOLVING CREDIT FACILITY
MIAMI, FL (August 9, 2005) . . . 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 its results for the second quarter and the first six months of 2005.
Net income for the second quarter of 2005 rose 50 percent to $9.6 million, or $0.40 per diluted share, as compared to $6.4 million, or $0.27 per diluted share, for the same quarter in the prior year. For the first six months of 2005, the Company reported net income of $16.9 million, or $0.71 per diluted share, as compared to $11.9 million, or $0.51 per diluted share, for the same period a year ago. The results for the second quarter and six months ended June 30, 2005 included $1.3 million and $2.6 million, respectively, in unrealized losses (after tax) on the hedging of fuel inventories and open purchase commitments, as compared to $0.4 million for the second quarter and the first six months of 2004. Unrealized losses for each reporting period will be off-set with profits on product sales in future periods.
World Fuel Services also reported that, on August 9, 2005, its existing syndicated revolving credit facility was amended to, among other things, increase available borrowings under the facility to $220 million from $150 million.
“We are very pleased with our results and the further expansion of our revolving credit facility,” said Paul Stebbins, Chairman and Chief Executive Officer. “Our global team continues to deliver outstanding performance and we look forward to the balance of the year.”
MORE-MORE-MORE
WORLD FUEL SERVICES REPORTS EXCELLENT RESULTS FOR THE SECOND QUARTER AND
THE FIRST SIX MONTHS OF 2005
Page 2-2-2
SECOND QUARTER AND SIX MONTHS FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | |
| | | Quarter Ended
| | Six Months Ended
|
| | | ($ in thousands, except per share data)
|
| | | 6/30/05
| | 6/30/04
| | 6/30/05
| | 6/30/04
|
Revenue | | $ | 2,117,749 | | $ | 1,379,956 | | $ | 3,892,335 | | $ | 2,294,552 |
Income From Operations | | $ | 11,973 | | $ | 9,026 | | $ | 20,376 | | $ | 16,143 |
Net Income | | $ | 9,565 | | $ | 6,379 | | $ | 16,947 | | $ | 11,899 |
Diluted earnings per share | | $ | 0.40 | | $ | 0.27 | | $ | 0.71 | | $ | 0.51 |
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services Corporation is a global leader in the marketing and sale of marine and aviation fuel products and related services. World Fuel Services provides fuel and related services at more than 2,500 airports and seaports worldwide. With 43 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 international container and tanker fleets and time-charter operators. For more information, call (305) 428-8000 or visit www.wfscorp.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 EXCELLENT RESULTS FOR THE SECOND QUARTER AND
THE FIRST SIX MONTHS OF 2005
Page 3-3-3
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited - In thousands)
| | | | | | |
| | | As of
|
| | | June 30,
2005
| | December 31,
2004
|
ASSETS | | | | | | |
CURRENT ASSETS: | | | | | | |
Cash and cash equivalents | | $ | 93,831 | | $ | 64,178 |
Accounts and notes receivable, net | | | 582,645 | | | 490,780 |
Inventories | | | 37,574 | | | 40,901 |
Receivables related to marking derivative contracts to market | | | 36,158 | | | 10,224 |
Prepaid expenses and other current assets | | | 32,325 | | | 41,985 |
| | |
|
| |
|
|
Total current assets | | | 782,533 | | | 648,068 |
| | |
PROPERTY AND EQUIPMENT, NET | | | 8,173 | | | 7,092 |
| | |
OTHER ASSETS | | | 59,512 | | | 57,011 |
| | |
|
| |
|
|
| | | $ | 850,218 | | $ | 712,171 |
| | |
|
| |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
CURRENT LIABILITIES: | | | | | | |
Short-term debt | | $ | 483 | | $ | 1,100 |
Accounts payable | | | 498,923 | | | 385,243 |
Payables related to marking derivative contracts to market | | | 40,376 | | | 10,102 |
Customer deposits | | | 32,038 | | | 36,476 |
Accrued expenses and other current liabilities | | | 25,716 | | | 34,064 |
| | |
|
| |
|
|
Total current liabilities | | | 597,536 | | | 466,985 |
| | |
LONG-TERM LIABILITIES | | | 46,194 | | | 56,683 |
| | |
COMMITMENTS AND CONTINGENCIES | | | | | | |
| | |
STOCKHOLDERS’ EQUITY | | | 206,488 | | | 188,503 |
| | |
|
| |
|
|
| | | $ | 850,218 | | $ | 712,171 |
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MORE-MORE-MORE
WORLD FUEL SERVICES REPORTS EXCELLENT RESULTS FOR THE SECOND QUARTER AND
THE FIRST SIX MONTHS OF 2005
Page 4-4-4
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited - In thousands, except per share data)
| | | | | | | | | | | | | | | | |
| | | For the Three Months Ended June 30,
| | | For the Six Months Ended June 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Revenue | | $ | 2,117,749 | | | $ | 1,379,956 | | | $ | 3,892,335 | | | $ | 2,294,552 | |
Cost of sales | | | 2,076,687 | | | | 1,349,200 | | | | 3,815,762 | | | | 2,237,518 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Gross profit | | | 41,062 | | | | 30,756 | | | | 76,573 | | | | 57,034 | |
| | |
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| |
|
|
| |
|
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|
Operating expenses: | | | | | | | | | | | | | | | | |
Salaries and wages | | | 15,853 | | | | 11,594 | | | | 30,119 | | | | 21,782 | |
Provision for bad debts | | | 1,604 | | | | 1,354 | | | | 4,095 | | | | 2,239 | |
Other | | | 11,632 | | | | 8,782 | | | | 21,983 | | | | 16,870 | |
| | |
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|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 29,089 | | | | 21,730 | | | | 56,197 | | | | 40,891 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income from operations | | | 11,973 | | | | 9,026 | | | | 20,376 | | | | 16,143 | |
Other expense, net | | | 165 | | | | (1,373 | ) | | | 175 | | | | (1,198 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income before income taxes | | | 12,138 | | | | 7,653 | | | | 20,551 | | | | 14,945 | |
Provision for income taxes | | | 2,207 | | | | 1,194 | | | | 3,151 | | | | 2,857 | |
| | |
|
|
| |
|
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| |
|
|
| |
|
|
|
Income before income taxes | | | 9,931 | | | | 6,459 | | | | 17,400 | | | | 12,088 | |
Minority interest in income of consolidated subsidiaries | | | (366 | ) | | | (80 | ) | | | (453 | ) | | | (189 | ) |
| | |
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|
| |
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|
| |
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|
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|
Net income | | $ | 9,565 | | | $ | 6,379 | | | $ | 16,947 | | | $ | 11,899 | |
| | |
|
|
| |
|
|
| |
|
|
| |
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|
|
Basic earnings per share | | $ | 0.43 | | | $ | 0.29 | | | $ | 0.76 | | | $ | 0.54 | |
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Basic weighted average shares | | | 22,448 | | | | 22,112 | | | | 22,428 | | | | 21,838 | |
| | |
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|
Diluted earnings per share | | $ | 0.40 | | | $ | 0.27 | | | $ | 0.71 | | | $ | 0.51 | |
| | |
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|
Diluted weighted average shares | | | 23,977 | | | | 23,502 | | | | 23,965 | | | | 23,256 | |
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