INT - Earnings call transcript Q1 2019 | World Kinect Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the World Fuel Services’ 2019 First Quarter Earnings Conference Call. My name is Ash, and I will be coordinating the call this evening.

During the presentation, all participants will be in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. Instructions on how to ask a question will be given at the beginning of the Q&A session. reminder, is a April, recorded As XXXX. XX, Instructions] this being conference Thursday, [Operator like the to Mr. now would I turn conference to over Glenn President, Vice Klevitz, Investor World Relations. Treasury and Fuel’s Mr. begin may Klevitz, conference. you your

Glenn Klevitz

website this call icon. everyone access webcast. Michael call Thank the you, Services’ or a copy quarter World Services’ slide should alongside webcast the the and Executive and Executive us our can earnings click earnings XXXX and Financial our introductions website. welcome To Klevitz Chairman of and webcast on This Officer are the call. Glenn be you If World live With Officer. first Fuel I’m please and today President all is Ira not, now, you Birns, the conference I’ll webcasts, release Ash. via Vice have visit call received Chief Fuel release. to on access also our evening and on available Good doing future on Kasbar, this Chief presentation. evening’s By the

could revise in are any in risks or of performance range found Before to forward-looking Fuel would XX-K the Commission. expectations with from review cause Harbor these be forward-looking that results the most includes of This results Safe information filed results that of regarding Exchange from and reports GAAP its the revisions found materially Fuel’s World projections World Regulation actual risk other in release Fuel’s made assumes release in like website. plans comments new could can Certain differ events. also defined the to Fuel’s to cause World no to we recent obligation publicly as of and most can forward-looking comparable presentation or future statements factors materially statements World future light uncertainties and I and press directly be non-GAAP on Fuel’s and description to information. of A measures World these A Statement. World G. measures these financial non-GAAP Form differ today, that is financial Fuel’s a financial measures to statements including started, subject get to reconciliation about their are certain Securities included

minutes begin will which question-and-answer by remarks, several with be of will prepared We a then period. followed

with we and and the this would that participate in on private mode. line calls, introduce Chief our As prior Michael Officer, Chairman At ask members Executive Kasbar. media of the individual like time, listen-only investors I to

Michael Kasbar

quarters, had the Good predictable, into first continue driven steady focused diversity say Glenn. the continued in you, to everyone We year the businesses warm you the have start and solid model, we our our our that thank and capital cost and creation today. efforts of in by results, I’m several a execution our our afternoon of sustainable, our health pillars be over portfolio, this me the UK confidence we Thank three XXXX, business continue proud driving enabled focus and the and to I value the on last business. weather to defined joining Through scalable. our of is to earnings a which know and to and to providing The offset this us long progress strength, us momentum. make mantra believed financial are improve quarter trajectory heard growth it discipline. our that is sharpening for organic team consistently our strategy our of say exercising you’ve but

during well of built strategic and the evidences performance this which a balance that we and our organic organic pursuing, evaluating and strategy rationalization, financial quarter positioned robust and are of that remain for we bearing actively of the growth year. both to pipeline we Furthermore, fruit. execute on portfolio solid cost opportunities is have Our management

Our underpinned expansion locations to continuing into strict of aviation supported physical our more adherence our segment chain well operations a supply by and by efforts cost optimization performed management discipline.

areas Our and leveraging energy also of logistics and expertise interest strategic government in Well, supply than delivered complicated volume marginally quarter our to was as and year. demonstrating this business trusted capabilities our reliability in and strong activities support higher results, these partner. only a last

business our We expect continue of within organic the year. balance to growth services aviation over the

efficiency about and Our portfolio marine results year-over-year focus on trend. is that choices segment designed QX a management. to strong on made on judicious profit our and maintaining margins in Gross our capital remain continue prudent delivered and positive risk focus returns while cost

competencies place address businesses our to the augment We are challenge its logistics and supply inherent the challenge, have in of synergies, capture IMO further low-sulfur internal which efforts industry our to is we already the XXXX within regulations. leveraging across all will

grow segment I or This Industrial the quarter, negative by the the business our and in Commercial American it overcame a geographic business. accelerating gas, our remain impact winter diversity business we solutions as our to and my to bullish our global and around about C&I saw at with power momentum the UK benefits C&I and the of North power comprehensive of digit land grow customers bringing warmer-than-expected by sustainability value our this of and fuel continuing of double compelling connect, and to continue call remarks and sustainability last energy customers offer rates during of year capabilities world. existing our by a our together share that will our land suite increasing to gas,

to EBITDA solutions business and gross rate. double-digit continued both Our MSTS payment profit a at grow

to effective to arms organizational alignment, locked pleased acquisition Our continues solutions. truly our excellence. centers while simplify to payment ongoing improve on to processes, team efficiencies by beginning shared best am I how and of practices team functions seeking drive cost businesses all has customer see business activities across customers and employing through and services well execute identifying business-to-business new

to transact Looking with improve to partners to work. in talented creative supply us, streamlining believe operational innovative I the X,XXX our am lead space the most investments and fortunate ease of collaboration not very customers would optimistic and I professionals are be and that whom our that team energy with which truly also but ahead, we and in the will logistics our with within technology more over only

want And to moment, the call review fulfillment and that management, in in I supporting a the payments a results energy of of X,XXX do So, want at business to in further our to shareholders countries and turn first countries solutions I territories. say my sectors. over our XX XXX I’d to government detail. industrial like comprehensive deliver colleagues vision commercial, this to over Ira quarter financial greater to and thank you support energy thank who our global

Ira Birns

thank year the from everyone. the evening to XXXX pleased Good solid report Mike by you. first that we by way the I’m starting welcome, continue results. the with in You’re quarter off and positive momentum

or into increase million. year. some I million the of as $XX highlights That’s are first compared get the to Before was of $XX for last an follows. Adjusted details, EBITDA quarter XX% the

have increases We We in of our the the was full principally for to including which the operating quarters. again the year. our quarter the $X.XX eight the for ratio making delivered now toward in earnings referred XXX year-over-year progress goal per period for related basis improved adjusted leverage our operating earnings EBITDA improvement prior consecutive point corrections, to of tax Adjusted impact share release. expense

segments. Consolidated the EBITDA sheet such strong remains quarter our for ratio debt Excluding share was X.X adjusted times. to per million as $X.X land adjusted $X.XX. to in decrease quarter our our driven was and compared of fell to revenue corrections marine in earnings billion down by And principally XXXX. decline balance the first year-over-year revenue X% net or volumes $XXX The is first lastly, in the

in gallons flat billion effectively X.XX year-over-year. was the volume segment first aviation Our quarter,

For related principally of identification our marine the first margin certain The experience the markets. first team last metric to was XXXX penetration Asia. continues means activities down on tons segment continued which similar focus for new compared the Volume efforts exit year. growth we to quarter X.X thresholds growth to in the business million our low full in aviation which volume the to quarter opportunities, and the segment. marine return to in year, tons, our including expect volume of is The in be XXX,XXX growth to reduction

quarter reported results as on on previously found equivalents that $XXX activities items gallon trading compared increase on principally the gallons XXX in Our all costs. was items segment XXXX. restructuring now quarter first non-operational consolidated release. our The compared $X first To as North be well impact profits. non-operational non-core segment gallons in quarter first low of first million, land the XXXX. of presentation. of acquisition-related of and webcast America. can during the a equivalents, as figure to XXX was items first published – billion note down to land continuing the our principally a of earnings in following items earnings excluded consolidated breakdown of margin volume profits million supply X% periods the X% non-operational is you or first approximately in the related or represent for basis, slide gross last million to volume was gallon million the of On quarter on our the And the X% gallons Please approximately decline the gross pretax quarter volume and in to Total website these to the reconciling non-operational X.X reduce year-over-year. release, or and highlighted of billion for year-over-year gallons or assist X.X quarter our or an efforts income decrease was These

quarter of related segment quarter. principally up backwardation, government supply slightly first the the effects market domestic gross aviation of in by profit our of quarter, during international compared fueling first first contributed the the activity to Strength operations, XXXX. $XXX we’re that’s our Our offset and million in

in growth segment or the core principally last in profit first gross XX% quarter We in marine increase million seasonality The an year-over-year. fueling of related the aviation $XX expect operations. experience resale to similar of gross year, normal business growth and profit million, international $X our to quarter sequential generated second

prior well Our team continues well year. with above remaining to margins core the and returns execute

would expect be year-over-year Looking quarter, improvement. second gross marine quarter, to ahead drive profit to solid the similar first the to we which again,

land of the in Our profit gross first million quarter. $XXX delivered segment

to land by American Connect profit muted down the more was While profit did million, gross was from yet another last of commercial platform UK or of XX% an compared MultiService offset global North $X by essentially profit the year’s with our was UK. Gross solutions strength winter payment model. services such Year-over-year in gross continued last flat profit and of coming winter increase business million sequentially, warm gross and quarter increased energy increase seasonable retail reflecting increase MultiService industrial in the unseasonably from and our first business year, the $XX.X activities.

our by principally quarter, second we driven the by year-over-year to be expect seasonality, quarter, principally to profit expect industrial in segment gross commercial to solid activities. is land which an million, we non-operational driven of profitability retail lower, ahead slightly increasing items first $X and the and improvement Looking while improvement year-over-year, in of excluding sequentially. flat sequentially and bad $XXX an $X expense million improvement expenses the in million Operating were debt

by focus expense percent and as $XXX operating the XX.X% in ratio consecutive non-operational year-over-year for basis first Adjusted the And in $XX target million. in improvement Adjusted XXXX, for represents our excluding expense target a in nearly the profit XX.X% controlling to be quarter in period, we XXXX. $XX In have of Over XX-month from better for in was the and has to the this the EBITDA our expense ratio, million. range items of year-over-year EBITDA. the XXXX. on of expenses, first point addition the million quarter operations a in up total $XXX of of to our first EBITDA XXXX. $XX of expense eighth $XXX a charges non-operating XX% XXXX from testament we increased than ratio first year basis XXX the point focused improvement quarter, from income year improvement or Our operating globally which expect $XX million the quarter, or expenses, million the XXX be is in as we full our reminder, which an trailing operating second range debt XX.X% from gross million this million, we the would second entire done bad a assume was effectively and to $XX of last of any remain first quarter same finance last to up million XX% million, team year-over-year. achieving operating and flat million I principally improved $XX interest past. the and quarter comprised for compared And year costs of to in $XX this and were quarter expense achieved year, to the full of to is quarter interest, Again,

for the tax of the first is effective was adjusted from including last to prior XX.X% the a tax period discrete in quarter correction Our effect rate the first XX.X% year. quarter This of related down items.

rate expected again, of diluted for quarter, a income tax And the was to you than first first earnings Excluding share per year, by expect to an increase our of compared effective $X net the effective adjusted balance quarter our for been increase quarter to first going guided million of XX% the when into rates or than would impact we adjusted tax million, to lower the Adjusted for the XX% of last have quarter. the lower was but XX% year, tax XX.X%, first the still discrete the the compared rate slightly XXXX. to impacted $XX the of be XX%. range rate. an in item, of $X.XX

billion to year-end million fuel million, total This maintain balance net first accounts EBITDA in our total well balance year. is the in In to down to when sequentially organic cash sheet. debt was of invest in our X.X to end and the investment a balance we adjusted despite flow reducing from quarter from closing, opportunities, balance $XXX in a the in which quarter. we first of compared improvement the quarter first quarter increases times, of nearly We X.X reduction the delivered quarter-end, growth. reinvesting-related our last resulting non-core below generated capacity strengthen should of while strong on in Despite further times increase and ratio strategic continuing drive receivable additional to improving well quarter, additional first focused fuel as our strong businesses activities results from in as $XXX Our liquidity prices flat the down year-over-year profile, of million and sheet by debt sheet of our remain our in prices, increase significant balance $XX profitable $X.X effectively core portfolio XXXX. business of the further divesting activities proceeds we sharpening activities, both operating to first at

and reduction in a continued a on ratio and in and focus ratio XXX basis resulted Our on cost improvement our These full significant call opportunities year. remain will bound the expense our returns increasing session. to shareholder now principal quarter, we year-over-year turn Ash tightly the Q&A begin for together operator, in in delivering control increasing goals value. first operating focused I back remained of support capital point the on the of the over to our

Operator

[Operator with comes question your of question. with Please you. first Nolan Ben from Instructions] the proceed Our Stifel. Thank line

Ben Nolan

Yes, thanks. Hey guys.

ambiguous you’d that’s you’ve So, I question, on the well that relates an guess about the business feeling well? mentioned first into my contracting as how year for a the the it of going you I pretty both done know been kind government and somewhat are government for forward to number continuation of then rest pin side. aviation or it’s maybe and and of to as hard uncertain the the that future But business down. outlook of always

Ira Birns

very us the have first particular start. any to – Mike of of other. had that How any were could that question. Yes. part of remains in that our strong for chime regard. Ben? level But that in long given We’ve you equally have I’ll we’ve in the Look, strong. predict in of day doing, the a it’s our while guarantee but always on long-term And one contracts those of materially to upon a that day. or going as quarter terms a time saying doesn’t when change we was lot to in. a what’s to all exposed strongest it’s fact been Thanks of same very, based are very day pleased matter volumes that one factors that’s difficult time, the volume relationship continued, may remains on impossible world. project they or direction the in Activity

that in still always in something will to dime if But deliver XXXX develops that a we’re what that is relatively the change did we similar now, For to on area. results can confident that in caveat anything done withdrawals the But or continues business has our border terms would closures have or to job of business. at moment, the robust. on an that a that and be generally troop team impact phenomenal

Michael Kasbar

think, I just to add that. I’ll

light that it’s the In military terms petroleum fairly we and developed our and of repeat our transformed I’ll It in global logistics benefited of capability it, logistics company the is from what from sophisticated and worth I’ve was the we’ve – company asset logistics an in instrumental but said past, company there has this we’ve really repeating. personnel. to terms

the been military a and different number making that’s we’ve progress that locations. And of helpful. tremendously So we objective to diversifying made are activity on And there. progress

dimensions two that military terms in noteworthy of, are those So, just I activity. are that think

Ben Nolan

would little the is That make theoretically this kind stickier guess diverse. it I right? Okay. and also idea, of more a

Michael Kasbar

the And very obviously, reputation, exactly. serving clients. it’s Exactly, demanding

reputation So, make I’ve past, said having right. to it analogous able it that. handle the being new to car companies. in passenger and Again, Formula I One that to racing

capabilities tremendous capabilities really to us. excellence, that the I and throughout and services be has our driven of been made global shared entire a So the our with for logistics reference and deal that military centre to personnel to has asset capability company. able by that physical strengthened our operations,

Ben Nolan

you’ve perhaps idea that to you’re more the bit Okay. my know sort M&A at around in last maybe, then Great. it capital some sniffing And opportunities. of call, little the talked allocation. a that second relates I question, about

that And a notice logistics less addition of are sort light, opportunities need M&A I have We’re of of curious becoming and inventory a and a there, rising. if call asset we’re support an company debt you’re sort are do to sort it repayment to of as of capital the as the you balance function you but build effectively, that more weigh also broker in have of in to how of sheet the allocation sort having. to levels

Michael Kasbar

you it what keep in returns the I’ll list obviously, place. in step-by-step, are the right

So, you need that to manage carefully.

you’re If able sheet. you get the balance to going your returns, to grow be then

lots asset services are a liked – of side. So, of inventory, within that we the light blending combination services

and growing side. those the have services that grown aviation So, within services

for suppliers are where partner that of becoming really of is strategic right. to in So, terms and in refiners partner notion value our a it the the And offtake for getting strategic and balance we a also the share, them. demand clients bringing

balance has So, sure certainly, and making you balance sheet continue the sheet. your you’re the returns implications and earnings, your to so that there it’s getting that flex growing

Ben Nolan

Okay. it appreciate All I’ll over. right. Thanks I guys. Well, turn it.

Operator

question line proceed with question. next Global your our Sterling Seaport Kevin of comes with the from Securities. Please

Kevin Sterling

Good thank Well, gentlemen. you. afternoon

Michael Kasbar

Hi, Kevin.

Ira Birns

Hey, Kevin.

Kevin Sterling

marine for I mentioned, should growth, improvement should marine profit gross not you think should QX, because volume, So, necessarily and if I price, in about I growth How Ira, organic expect we and organic in said we year-over-year assume from about but land I coming you land? mainly believe the that’s in aviation. we how think think growth know, will? marine, you

Michael Kasbar

marine couple So, really of very physical forward the But look has entire you and terms but much, technology, select within and before, combination The and have marine light, a said of company curve there there asset at, both that if aviation showing isn’t manifestation lot see applies and inventory, I’ve a to distribution on of land. that a wait in got and XXXX, we’ve for being select this deals. of been been that. the

got to a growth. selective have approach capabilities. we’ll We So, tremendous organic

of technology. more both leveraging to all of penetrate within add we’ll asset selectively continue “segments.” across light capabilities grow a services, equation, done where organically, which marine the selectively, So, the to the side, we’ve utilizing of that the side the and we’ll can, cut but on aviation, company physical entered the more are We markets try we

selectively global within and land going that use Within the marine to business. think we platform have land grow I quarter, land, we last and at as I’ve mentioned, marine the aviation, our are to

Europe. within So, got area the an a foothold where is interest, we’ve U.S. certainly, of

within So, space. land there’s acquisitions the

We have share. market small very

quarter. lot us together, industrial a for gas got So to sustainability growth Within within reference business. to continue we that’s Blending those our and a grow our business. commercial we’ve fairly on connect, users, go-to-market and believe made C&I that of sense. within to makes our a power rich that I good place and last

looking applying So, and corporations of to leveraging a capabilities into across using different entire global the combination our the logically platform those selectively acquisitions. And at activities. the in business, it’s extend that then

focused of then we’re with a well we the marine, loyal And good we growth land terms rough our support sort while and of on some are to challenges technology been some able feel in clients. of a prepared has terms complex So XXXX; certainly like there, team we come, we together very overcome are about slow is road, and experience but the putting feel getting getting to in solid together much systems. of to the customer being

hell So, and we feel the a the got engagement and better a a terms It’s power a is and sustainability. on team, of like engine and land come more of both growth within palpable much curve lot gas diesel, momentum starting we’ve in together. to

that So good. feels

the extremely We’re is feeling positive engaged. about well, as that. marine very team And

balance good. the So, it coming all feels together. like the are businesses sheet of looks And

never it’s than ever ready – feel mean, it’s before. we’re So, roll, like we never condition But in simple. to I now we’re better

Kevin Sterling

low bit exiting I should we have there, marine a see continue business? margin you some more and it Yes. ballpark you it business we much you, in don’t or you guys do the to left good left how exit about if Thank do of it, Is done to or digging and think deeper another exiting business more some to exit where quantify two, can have much into And have ports, of you exit? marine, getting guess the Mike. out job quarter Asian to mind little this or how of a you possible your how

Ira Birns

the in probably put vernacular, would inning anything baseball – and or Ira, it’s say been through I you Kevin. say, eighth it as in – we’re would if I would so. I in we’ve

first if you quarter. at look of – kind – permanently in going doing XXXX, terms opportunities we’re forward, in volume So, would may we we’re I never in to opportunities number grow come I pieces if Mike the the at looking expect I should place. hope would you from that pass the more a have hopefully, about low-hanging volume to they’re perspective, to quarter. has first maybe more guarantees business that that replacing out don’t seriously been bottomed talked look always it the fruit on materially that, say always be that second no our to but a going at basis. in than the been called, of obviously, of we identify more one-to-one of that

we’re safe the three material think seeing year. to we Not quarter don’t – uplift, the to course volume first the uplift over quarters. also two, but expect in we So, next the over calling say some start of pretty the it’s from I going number

returns. that activity it’s had low So,

looking various that market from we’re We’re – also right? sense, continue at perspective. not of still at and to a is credit some kind of them may some make them relationships looking fragile, So, of

and looking makes the and whole angles that most the that will improving doing focusing quest balances to have overall on we’re job margins of and business so done and great the from returns a And us, at a of bunch here. in our guys parts driving sense over and the continue that it

of volume likely out because efforts result of all this good year, growth. pretty limited a expect marine those we despite So,

Kevin Sterling

it. Got

going and then you on if And to briefly Mike, here last Thank mind. you question you. this. ask don’t Okay. it touched I’m

You in it’s the of talked time. the leverage, about mentioned low. sheet balance you I’ve probably that quite lowest one opportunities; my levels M&A it’s gosh, seen obviously It’s some

come M&A buyback does pipeline So, can a doesn’t about we how as to if stock fruition, maybe increases think that well? dividend how and look or

Ira Birns

on I’ll and think start Mike, that that question get I every call. we with

we the any our the balance of great as standpoint much maybe good trying that put over course conservative sheet So, XX Look, clean it we’ve a purposely. didn’t to We the sheet, a answer. and a more going little M&A that point XXXX that last in record probably up and better forward. job in from do months position should got balance a on a

our in in cost. balance on time sheet is that much So, gotten better spent shape. lot We’ve a shape. focusing good of We

in much out better opportunities and that our opportunities. our core at there. minds to are we’re extensive, So, lot look are The there a out positioned is now businesses go pipeline of

hopeful will many of come heavy lifting them near couple scrutinizing lot occur in and of that a fruition future, there’s some a We’re we’re time that to before but happens. the to

do our So, I to large our opportunities a stock the of as every sheet, We regular with We We’ll we beauty the dilutive cover basis. do And enough of tried changing, awards. reviewed always find evaluate to dividends. really We buy that a be impact year to don’t buybacks, the to without look the and to balance opportunistically. and so some believe We’ll you buybacks try company. could speak. know, of that that on current I always buyback type think and board we’re shares ever at back going dividends. level

unless whole to going it. than and cash tremendous more generating we never use we feel that of didn’t were amounts lot had a probably better really We’re for do any

shareholders our in buybacks core one, then and say And investing So, number is to business business strategic be with, would additional value would to two. our organic would finding number third. be ways dividends investing for I and today return opportunities, in tied that limited

Kevin Sterling

land say board? across Okay. or the in spread of are your is right. it you Would All M&A opportunities most

Michael Kasbar

Land.

Ira Birns

overall I of worldwide. have the look it if market markets Yes. share business obviously mathematically, you far the I in we mean lowest at terms planned, in by the largest

we’re opportunities not are well. anywhere that opportunities other but and in as then clearly and there businesses So look else, in at are always looking There to land more land opportunities the there. at only

Kevin Sterling

time for That’s much on. Okay. Got your all so it. this Thanks I evening. had

Michael Kasbar

you, Thank Kevin.

Ira Birns

Kevin. Thanks,

Operator

from of line comes question. next America. of Bank Please Ari the your proceed Our Rosa question with with

Ari Rosa

Hey, good looks like solid afternoon guys. Congrats a [indiscernible] on what pretty it

Michael Kasbar

Ari, you. hear we can’t quite

Ari Rosa

hear now? me you Can better

Michael Kasbar

bit, yes. little A

ahead. go aesthetically, So

Ari Rosa

you’ve improvements just extent, for asking what I in put that the swings environment macroeconomy? just think the you of sensitive term a made, the position, apologize I’m you’re where or do that. to you in to some

Michael Kasbar

right, was, can positioned to Macroeconomy. think let the we because I’m everyone insulate from Is me question macroeconomy? I feel it, the you we’ve Ari, got yourselves else that we what hear to you was repeat asked correct? better us do how that well, going you’ve

Ari Rosa

Yes, exactly correct.

Michael Kasbar

crack take that. I’ll at a

the primarily of model our business weight of still asset beauties we’re One business. is an

don’t So, and segments. we’re diverse, have business lots of We’re business markets. in in business different of different lots right? end we’re doing doing We geographies in concentration different

us insulation gives of terms of macroeconomic certain in a amount that So moves.

by was to impact. to a it as a and hits catastrophic something design opposed has having that monoculture so speak, So

that up. one thinking perspective, the at go are with looking XXXX, risk, from that risk got volatility sometimes downturns, economic people goes the undoubtedly rates, if of the pivot. that, you’re the past commented certainly, to going about price If I’ve from of at at the impact, could lot generally, oil, is to things credit price looking up. we’ve the of not we’re in benefit a ability the because that is, we’re we if looking is So, just interest

on Some shipowner is going to the be able to cost. pass

much. so not maybe Some

and is risk to think quality there going performance be going some there. potentially be risk So, is I some, to risk

we one are large, and company. risk big management by So,

got the we from are cost balance a that So, stronger we’ve extent that perspective, most a downturns. I global improvements sheet you’ve companies. company. We’ve to certainly dial back than a the the to perspective, certainly got made, think from And better ability

to go that. back. fairly first we end geographic to resilient We’ve portfolio really of as unpleasant got basically more a mentioned end rather company. little and of I’ve it’s have market market – have diverse We’re we through to terms bit an both in the from perspective. that got to, do a the transformation experience how time, going On a We’ve scale

So I’d a durable we say more a got financial frankly and model that organization. sheet, more perspective, balance and resilient today, business

have comes and got when we in terms we’ve we’re our logistics with think than A, preemptive time in some exits, don’t physical at shape of that have we look that to commitments. Exit So, the many very And companies. long-term capability, really a I better ability

long-term duty heavy with So, commitments. fixed assets we don’t have

than positioned better all companies we’re So, of most previous for I and think the reasons. that

So that answering I to questions. gives color you enough hope that, hope

Ari Rosa

I’ll that And regarding that detail. you as That’s a the you’ve a you you done, about learned how about acquisitions of of been one that’s influenced more, talked of from couple maybe acquisitions, have maybe just and your thinking you’ve level evaluate talk Yes. as – you acquisitions hopefully, just forward? also ask if terrific going what can, there some like pickups now where to past begin

Michael Kasbar

the as Yes. We’ve going yes. went best We learned, to anyway. school

a listen, position Now we’re better now. in far

end the the looking platforms. look As day, and sharpening of it’s it’s at organization at much very portfolio about we about people, very the the our much process and the at the

importantly, us So, the really more idea and valuation acquisition, a having having on realization growth. on focus a for the we’re clear of allows streamlined cost synergies, interested to the on the both in, integration, what both organization, – as selection of well

those areas a that we’ve focus. far sustainability. that think readability, I talked got about So, are scalability, greater We’ve

into keyed of organization maturity. the is level entire areas. got those that a more So, We’ve much I think

think good that I now looking perspective. organization very is right the from

there’s but always a room way. So, come we’ve improvement, long for

making more that. to feeling – in lot the to being and a So, execute relative selections the those on able zone, we’re

So, there’s a higher competence organizational and engagement. level of

Ari Rosa

it. time. Yes. Thanks your for appreciate I Absolutely.

Michael Kasbar

Okay.

Operator

are there closing you Mr. this Kasbar, the will back at further turn I call Okay, now no time. questions remarks. for to

Michael Kasbar

support for very members engagement you. to all that really team Thanks for listening this much thanks and It burning of the the with is a may all thanks the Well, all of desire working succeed. be and us. for for pleasure joining

and we’ll talk quarter. to next everybody thanks So, you

Operator

thank and disconnect does that your that conclude for line. the you you for Ladies We please ask and call your participation today. gentlemen, conference

World Kinect (WKC) 25 Apr 192019 Q1 Earnings call transcript