Exhibit 99.1
NEWS RELEASE for August 9, 2006 at 4:01 PM EDT
| | | | |
| Contact: | | Allen & Caron Inc | | World Fuel Services Corporation |
| | Michael Mason (Investors) | | Francis X. Shea, EVP, CRAO & |
| | michaelm@allencaron.com | | Interim CFO |
| | (212) 691-8087 | | fshea@wfscorp.com |
| | or | | (305) 428-8000 |
| | Len Hall (Media) | | |
| | len@allencaron.com | | |
| | (949) 474-4300 | | |
WORLD FUEL SERVICES REPORTS CONTINUED STRONG
QUARTERLY EARNINGS
MIAMI, FL (August 9, 2006) . .. . World Fuel Services Corporation (NYSE:INT), a global leader in the marketing and sale of marine, aviation and land fuel products and related services, today reported that net income for the second quarter ended June 30, 2006 was $14.5 million, or $0.50 per diluted share, compared to $9.6 million, or $0.40 per diluted share, for the same quarter in the prior year. For the first six months of 2006, the Company reported earnings of $29.5 million, or $1.02 per diluted share, as compared to $16.9 million, or $0.71 per diluted share, for the same period a year ago.
The Company’s results for the second quarter and six months ended June 30, 2006 included executive severance costs of $1.5 million. The after-tax effect of the severance was $1.0 million, or $0.03 per diluted share, for both periods.
“We are very pleased with our earnings for the second quarter of 2006,” said Paul Stebbins, Chairman and Chief Executive Officer. “Our global team can be proud of their continued strong performance.”
Second Quarter and Six Months Financial Highlights
| | | | | | | | | | | | |
| | | Quarter ended June 30, | | Six Months ended June 30, |
| | | 2006 | | 2005 | | 2006 | | 2005 |
| | | (In thousands, except per share data) |
Revenue | | $ | 2,856,852 | | $ | 2,117,749 | | $ | 5,390,858 | | $ | 3,892,335 |
Income from operations | | $ | 17,036 | | $ | 12,216 | | $ | 36,989 | | $ | 20,939 |
Net income | | $ | 14,503 | | $ | 9,565 | | $ | 29,480 | | $ | 16,947 |
Diluted earnings per share | | $ | 0.50 | | $ | 0.40 | | $ | 1.02 | | $ | 0.71 |
- Continued -
WORLD FUEL SERVICES REPORTS CONTINUED STRONG QUARTERLY EARNINGS
Page 2-2-2
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 42 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 visithttp://www.wfscorp.com.
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.
- Tables Follow -
WORLD FUEL SERVICES REPORTS CONTINUED STRONG QUARTERLY EARNINGS
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World Fuel Services Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited - In thousands, except per share data)
| | | | | | | | | | | | | | | |
| | | For the Three Months ended June 30, | | | For the Six Months ended June 30, | |
| | | 2006 | | 2005 | | | 2006 | | | 2005 | |
Revenue | | $ | 2,856,852 | | $ | 2,117,749 | | | $ | 5,390,858 | | | $ | 3,892,335 | |
Cost of sales | | | 2,805,410 | | | 2,076,687 | | | | 5,289,671 | | | | 3,815,762 | |
| | | | | | | | | | | | | | | |
Gross profit | | | 51,442 | | | 41,062 | | | | 101,187 | | | | 76,573 | |
| | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | |
Compensation and employee benefits | | | 20,476 | | | 18,426 | | | | 39,220 | | | | 35,160 | |
Executive severance costs | | | 1,545 | | | — | | | | 1,545 | | | | — | |
Provision for bad debts | | | 640 | | | 1,604 | | | | 1,148 | | | | 4,095 | |
General and administrative | | | 11,745 | | | 8,816 | | | | 22,285 | | | | 16,379 | |
| | | | | | | | | | | | | | | |
| | | 34,406 | | | 28,846 | | | | 64,198 | | | | 55,634 | |
| | | | | | | | | | | | | | | |
Income from operations | | | 17,036 | | | 12,216 | | | | 36,989 | | | | 20,939 | |
| | | | |
Other income (expense), net | | | 833 | | | (78 | ) | | | 804 | | | | (388 | ) |
| | | | | | | | | | | | | | | |
Income before income taxes | | | 17,869 | | | 12,138 | | | | 37,793 | | | | 20,551 | |
| | | | |
Provision for income taxes | | | 3,287 | | | 2,207 | | | | 8,403 | | | | 3,151 | |
| | | | | | | | | | | | | | | |
| | | 14,582 | | | 9,931 | | | | 29,390 | | | | 17,400 | |
Minority interest in income (loss) of consolidated subsidiaries | | | 79 | | | 366 | | | | (90 | ) | | | 453 | |
| | | | | | | | | | | | | | | |
Net income | | $ | 14,503 | | $ | 9,565 | | | $ | 29,480 | | | $ | 16,947 | |
| | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.53 | | $ | 0.43 | | | $ | 1.09 | | | $ | 0.76 | |
| | | | | | | | | | | | | | | |
Basic weighted average shares | | | 27,115 | | | 22,448 | | | | 27,064 | | | | 22,428 | |
| | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.50 | | $ | 0.40 | | | $ | 1.02 | | | $ | 0.71 | |
| | | | | | | | | | | | | | | |
Diluted weighted average shares | | | 28,873 | | | 23,977 | | | | 28,780 | | | | 23,965 | |
| | | | | | | | | | | | | | | |
- Continued -
WORLD FUEL SERVICES REPORTS CONTINUED STRONG QUARTERLY EARNINGS
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World Fuel Services Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited - In thousands)
| | | | | | |
| | | As of |
| | | June 30,
2006 | | December 31, 2005 |
Assets: | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 159,154 | | $ | 133,284 |
Short-term investments | | | — | | | 10,000 |
Accounts and notes receivable, net | | | 776,359 | | | 688,129 |
Inventories | | | 55,022 | | | 35,802 |
Prepaid expenses and other current assets | | | 97,957 | | | 81,095 |
| | | | | | |
Total current assets | | | 1,088,492 | | | 948,310 |
Property and equipment, net | | | 18,799 | | | 11,579 |
Goodwill, intangible and other assets | | | 55,245 | | | 54,112 |
| | | | | | |
Total assets | | $ | 1,162,536 | | $ | 1,014,001 |
| | | | | | |
Liabilities: | | | | | | |
Current liabilities: | | | | | | |
Current maturities of long-term debt | | $ | 5 | | $ | 737 |
Accounts payable | | | 639,578 | | | 534,064 |
Customer deposits | | | 33,819 | | | 23,776 |
Payables related to derivative contracts | | | 39,045 | | | 23,637 |
Accrued expenses and other current liabilities | | | 36,280 | | | 53,342 |
| | | | | | |
Total current liabilities | | | 748,727 | | | 635,556 |
Long-term liabilities | | | 25,712 | | | 25,098 |
| | | | | | |
Total liabilities | | | 774,439 | | | 660,654 |
| | | | | | |
Commitments and contingencies | | | — | | | — |
| | | | | | |
Stockholders’ equity | | | 388,097 | | | 353,347 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,162,536 | | $ | 1,014,001 |
| | | | | | |
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