INT - Earnings call transcript Q2 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 Second 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 recorded. As Instructions] this being conference [Operator

Mr. conference to Mr. President, I now Relations. like the the Treasurer you over conference. begin Investor Vice would now Fuel’s turn to may World Glenn and Klevitz, Klevitz,

Glenn Klevitz

everyone Ash. available call. our the conference World welcome you, webcast. on alongside and also Klevitz Glenn call slide and second Thank presentation. webcasts, future click our icon. doing and XXXX this the call on Services’ introductions quarter to access To this live This evening, webcast the Good or via earnings I’m Fuel I’ll visit be is evening’s webcast please website

Financial the received not, Chief today Ira on you Vice our and copy Officer. us Michael Kasbar, release our you website. Chief of If Executive call should have By Executive on a earnings now, all Officer can Chairman and release. Birns, the With and access are President

future statements Securities most release factors new could to Form I the Statement. are the differ and future Commission. risks recent Exchange results World light any performance Fuel’s cause be started, XX-K a revisions expectations to forward-looking publicly could with cause review in regarding forward-looking would plans to or materially made results get found uncertainties differ reports World of materially range actual about risk to results to World Fuel’s World that comments the that no revise and from that information statements description statements to obligation we the of including information. are can from these forward-looking these A Certain Fuel’s Before Fuel World events. like Harbor subject and projections Safe other or and of Fuel’s today, assumes of in filed

financial press and included measures financial found non-GAAP World can in directly on Fuel’s its reconciliation these A of their certain Regulation includes release to in GAAP measures non-GAAP defined measures is financial website. as G. also most presentation This comparable be

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

that and the in media prior with private listen-only calls, on we ask line As investors members participate mode. the of individual

At Michael like would our Executive Kasbar. I this Chairman to Officer, Chief and time, introduce

Michael Kasbar

Good to afternoon, I the this first that quarter joining results our you, for in a of us the established Glenn. today. Thank am everyone. earnings you year. report Thank demonstrated continuation of pleased momentum quarter second

strategy, delivering reliably to profit and improve in solutions growth expanding We our through to our creation businesses by the to pillars shareholder organic the to continue energy efficient allocation three management with leverage market. guided base streams, sharpening to driving of value by provide portfolio sustainable differentiated and customer maintaining continuous and be predictable commitment operating greater order our our cost capital to our value more

our together performance, as financial facility to increased earnings year-over-year our has renegotiation strength favorable stable improved our execute Our have significantly greater liquidity. our of credit strategic flexibility a and with counterparty. maintain We initiatives financial a on now

an income in of expand double for exceptional effective at asset and quarter. team response to cost airline and delivery network increasing job locations, the second demand aviation posted aviation our Our done in by the year-over-year improving to segment The continuing reliable efficiency increase fuel customers has physical operating digit chain while of many supply percentage our in utilization our solutions.

complex established QX, geographically long theaters remote on in demonstrating results requirements, to our expertise continued logistics strong operation. delivered again business support or of and in energy and relying our challenging ability government Our

and new during locations our continues to problems growth Latin a in operations several growth. the organic partner, America as and management differentiates operations Europe strategic drive and us energy commenced fueling customers’ Solving our We at quarter.

payment and and development invest the facilitate their platforms offering requirements. that fuel facing to technology complement trip of customer continue in our planning We customers’

heightened customer, to experiencing Our concentrating XXXX. of the where primarily fuel segmenting consistent greater value capabilities on The from strong enhancing marine growth that supply earnings customers comparisons, to a supply geographies in satisfying represents segment the has on deliver established challenges. specific resulted the trend continues quarter first focused with earnings and in demand are

Following strong core cost exposure performance We QX. returns, margins QX, deploying to remain solid in in financial remaining counterparty capital focused risk remain prudently, while resale and committed on management.

regarding QX focus contributed the challenges represented by on has ratio sulfur QX. cap both cautiously customers cost expense standards. optimistic IMO management of in maintain the with and Our our compliance to XXXX facing view operating reduce the a We adoption the continued opportunity

and capacity, exceptionally capability, logistics new position up and the technical the of to regulatory wake environment. leading requirements, capabilities supply address Our in our substantial extensive customers’ cross us segment financial to well and

During to initiative businesses the energy deliver valuable customers. converge and an land liquid Kinect launched quarter, commercial industrial of solutions our we our to to our comprehensive fuels more second set a and management and

to a together our our accelerated at pace. an globalize have and opportunity pull land grow breadth We tremendous business scale and to

In addition continue user liquid industrial fuel, that we financial with objective satisfy are and and demand redeploying power simultaneously sharpen portfolio and of offerings, commercial sustainability capital to our gas the our talent and end combining more the businesses and predictable durable. to toward

confirm in power commercial strategy ongoing North government has compared important posted UK expansion spring Global trading the marketplace. gas our changing warm navigating operations offsetting and relevant that momentum QX activity the is growth. of digit double year, our to negative supply in recorded a organic commercial decline energy growth and the Kinect results. profit strategically quarter and American represented our strong, prior remained our industrial impact in consecutive related industrial The fuel comparative which the of increasingly sixth of and and the in businesses a activity and and our And a business Kinect

global track and this grow the year, partner to Our strategic our digit increasing land continue value prospective on rates is to segment to at and remains poised double as customers. existing

and yet of scalability quarter, infrastructure. platform. the our and multi-tenant onboard another which customers, another to installed double in continued digit Our gain, multiservice solid transaction business leverage the recording turned processing payment team earnings a payment continues The will reflecting solution new global further demonstrating volumes multi-service ramp in increase

Before turning the to their team like members over XXXX Ira, I'd dedication. over call professionalism thank and for to our

are now people I'll our never competitive been ask clearer. Ira focus to and pause our has and indisputably our objectives results. their on advantage strategic Our review financial

Ira Birns

our strategies quarter for We Good and in solid to second delivered Thanks Mike. afternoon, continuous management pausing, execute the enhanced on continue everyone. returns. cost our of financial sharpening to drive results portfolio and core

into quarter, some of second of as highlights Before details I get are the follows. the the

year. compared quarter That's million. second $XX the increase million to of for last EBITDA an $XX was or Adjusted XX%

now returning the continue the balance for bank to consecutive quarter year. we EBITDA our of remains And XX% common nine our a strong, of and in announced dividend liquidity was lastly, our trailing to quarter $XX announced, increased additional an flexibility by shareholders. increase extended EBITDA previously our to earnings $XXX sheet investing flow aided cash amended of increases this further us by earlier during the XX%. million. last as with million. repurchased our and week, quarter million providing capital XX stock operating month and We adjusted $XXX and quarters, per facility, And profile, generation delivered compared improving our have business We during adjusted financial in the as we to $X.XX, for quarter record year-over-year Adjusted our of share have has increased second

and Average second marine Consolidated down volumes second $X.X year-over-year in revenue or quarter in principally billion, land decline for as as the XX% compared of X% fuel decline the The quarter in our revenue in to well million was the by was $XXX year-over-year XXXX. the decrease prices. driven segments

Our or the an was X% or sequentially. XXX volume second aviation X.X XX gallons gallons billion gallons segment in million increase million and year-over-year, X% quarter, of

effectively our reduction quarters. second which for principally the related flat the for activities XXX,XXX which of had million metric the last quarter of in quarter business segment several low tons in year compared marine the sequentially. The volume Volume we certain margin to X.X Asia, second mentioned past is year-over-year exit down to was tons, and

quarter. Our our was million to flat efforts down continuing reduce trading gallons volume quarter in low non-core the and land in the supply land gallons was margin related billion to decline X% XXX The around or volume second activities That's also second but XXXX, to of equivalents year-over-year or compared North gallon principally sequentially. X.X segment segment during America.

be Total gallon second impact quarter, that note a as was or consolidated of gallons XXX found webcast well approximately release. release, the non-operational of published equivalents, earnings principally in in our our X.X Please non-operational related of last the and on breakdown million gallons the website periods in you acquisition These items of billion quarter volume To figures items as for earnings all such reported, second decrease previously today’s highlighted the items costs. and the of presentation. non-operational can restructuring represent pre-tax slide exclude X% year-over-year. the items in the results or following reconciling assist our on on as

Consolidated million, quarter for $XXX million, to of XXXX. an X% increase the $XX gross or of was second profit the second quarter compared

profit million $XXX commercial aviation $XX the to of or our government the of an in strength and principally profit XX% quarter gross gross continued activities. contributed million the segment quarter, in aviation Year-over-year, was of result increase of second related core Our second compared increase XXXX. in

and operations. Looking core ahead driven quarter, aviation, fueling our strong principally in in by expect a quarter third we growth to the business, seasonal commercial international

That's second an year-over-year. segment of marine quarter Our profit increase $X million. million of XX% $XX generated or gross

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

sequential profit, the to quarter, for Looking which the ahead we third to activity, gross few summers. in seasonal principally now marine expect due we experienced have past increase a

increase Kinect drivers of year-over-year. business. the in to an related Our second weakness American in partially well decline to $X increase X% When supply multi-service profit the a as related as growth as principal related land as trading growth million weather the segment North payment the year, business UK. our well of offset solutions of in This results last delivered in our compared government gross million quarter, in by $XX or and activity, was

$X business the compared XXXX, Gross second business growing quarter increase to multi-service $XX multi-service hit of payment quarter, the profit or million in of the XX% our the second an continued reflecting that's in solutions strength of million model.

were bad the Kinect, million. the to increase and business second items, industrial expenses activity. ahead third of commercial an $XXX excluding of expense That's year. for retail second and quarter, in land, quarter improvement expect $X Operating and the in Looking non-operational compared million last sequential to quarter debt we

on any debt our basis non-operational expect were expense In third meet expenses higher the a operating in improvement operating remain quarter, we year-over-year track again on excluding bad we XXX expenses, operating total and basis, goal our of ratio. quarter a million. year-over-year of $XXX $XX represents to While $XXX second be million in EBITDA to consecutive improvement XXXX. was quarter, of XX% the this second million year-over-year items, $XX adjusted Again, up Adjusted in quarter ninth range EBITDA. million to from or the of in the the point

in trailing our $XXX XX I earlier, and result. month record Additionally, as another was adjusted the that's quarter, second million, EBITDA mentioned

Adjusted the income quarter from operations $XX $XX for that's million, million up or XX% year-over-year. was second

as the facility forecasted costs interest third the in year, That's interest last expense rates quarter, higher interest in the up quarter assume well quarter million as expense compared principally around was of associated quarter with Second the decline lower $XX to to Considering due our compared third rates quarter to during new somewhere impact to to $X.X the I second bank of $XX.X million. would during the decline XXXX. million. average the

of XX.X% rate in the was up from year. Our last adjusted tax effective quarter second in the second quarter XX.X%,

continue the our compared introduced complexities effective We has business, tax tax period’s that increased which to to significantly our reform. rate has to pretax reform navigate many

the tax rate our we forward, to tax focused effective remain in year, XX%. our the on the identifying rate of we of for balance XX% going will to be still expect While opportunities reduce range

XX%, was the an in was to for Adjusted increase quarter And again, XXXX. up $X.XX second year-over-year. second quarter net or $X when million adjusted diluted of earnings second income million. the the $XX quarter that's share XX% of per compared That's and

quarter end, stood of compared last sequentially that's effectively down year. billion when quarter $XXX the accounts at flat second million to $X.X but receivable at total Our

was a our decline and our the volume helped cycle marine related reduce The segment, period. in fuel as working land in over Strong that $XXX as solid to this principally capital decline prices free million contributing quarter, average in even And of X.X flow. during flow $XXX despite the and from that's of fuel activities days to operating prices increase cash million sequential to trade net year-over-year declines the well management quarter. cash

quarter from Our we of XXX the improvement reduced XXXX. capital. balance, of X.X balance XX to our debt total reduction in in in return drive invested second debt times months sheet to point times, helped trailing in down first on resulting remained strong, X.X a our a This adjusted as EBITDA net year-over-year basis ratio has

have credit announced term liquidity our this week, have earlier July we the we profile As extended facility revolving of strengthened and to further XXXX. our maturity and loans

funding We favorably renegotiated same facility while billion The oversubscribed capacity by remain $X.X all support. to a our the the increases strategy. costs. nearly bank our of billion, and facility other their commitment which in which the confidence available size to lowered group, under increased testament time, further the fee reducing borrowing at term XX% of community's transaction true the the was spread our for from overall We $X.X banking continued long very today, appreciative and is terms,

to actions further shareholder have value. drive we Additionally, taken

ever quarter, which by we we've had the As XX%. I repurchased $XX our dividend quarterly we program of million and the mentioned during increased repurchase was largest stock earlier, common

I to the restructuring more comparisons seriously make quarter cost XXXX. activities it we closing, and shortly valuable In be of afterwards, back would some focusing savings. second And thought to get on

starters, has million. for trailing capital actually So $XX million investment by to the overall $XXX or XX XX%, $XXX at our has while month time, working increased same from million declined EBITDA

by this flow, of is recently XXXX cash years. which a accounting trailing to management. longer two on over expense period This principally cash has over XXX our impacted no again, flow past cash which of heightened standard, XX two is that this basis from focus points operating month $XXX to forward. the flow contributing XX.X% same impacting million our And adopted driven cost impact declined going operating And year all XX.X%, excludes our ratio

week's facilitating income million share. credit $XXX operating greater facility EBITDA, of more XXXX, cash financial Strong providing ability by And earnings increasing stock investment quarter, extension our our further to strategic flow. repurchase our increases the working driving increase well strengthen Back our of again net and of loan and to our opportunities. term and $XX capital, with in business, million performed balance we also quarter common dividend second and to performance, our pursue again amendment business while the this adjusted during and flow actively per manage sheet, significant year-over-year cash core flexibility XX% of in and reinvest while EBITDA,

begin the the operator I Q&A you. back turn now Thank will session. call over our to to

Operator

question first Stifel. [Operator Ben the Instructions] And from with line our of now, comes Nolan

Ben Nolan

to and two have I one my follow-up. question So, questions. Well, stick one I'll

just grow The been same of better aviation to sort have first relates to down strategically out which group, in you’re but thinking at businesses. and And the lot. volumes to time, out about in carving generate drifting land various the quite margin one Obviously, able we've grow been clearly the a volume the organically a -- great. marine, bit both profit the is order lower of little business

to an those at been business in is to right in able organically do two margins cadence how set particular you there in successfully structurally to curious, what you similar opportunity business is aviation out forward, there you Just do now? that, can as not about out think businesses to something that are similar going have just in healthy or shake aviation grow to there a the are things that going opportunities the

Michael Kasbar

dealing the also aviation, fragmented management, our obviously we risk. with reselling underwriting credit were a of a Great exhibited the our entire question, of bit origins, basically risk, aviation, essentially maker business bank, within little but where past, the as think that in and company, price past, and and evolution in aviation model, market risk I've and a I've most Ben. were a I I've commented the the said in of we notably manifestation And said market,

fantastic, with this, great and the then was it extremely we Latin distribution stewardship, it was reseller in of move services Marine, business, America. to value we things added that aviation, that's out a into started Rau, and worked supply the And was but journey lot inventory, in John's with assets, started And party technology. into XXXX, third and fun, moving well. change. and that under John UK, And then physical into from

lot marine started has had and with So, marine challenges. that has journey a of

We all there. a got more much ways. than know, way different we're But industries hit on of lot in very most our

about a like industry, is And, journey feel our shipping I because is industry way. not like, going pretty we've to Land that, is it's well IMO I but it's think, and oil with of think, we've interesting. the feel change cautiously marine the it. both surprise, good. been conservative, optimistic that, is XXXX, certainly got So tremendously the we're and We manages sort resilient, reasonably good within then we respond a to on well pretty --

a We physically a distribution within our those side, and and XXXX, fracking, out the because were little business, into with QX of in all QX business, significant We commodity business. bit took into and departure then with But moved commercial and bottom of locally terms land the started in there industrial ‘XX. ‘XX, in opportunities retail out of of and falling our there. changed,

that I we're still reposition, mean, not painful, of we done. So but was kind

excellence certainly the not take There's but logistics, done time, These moving these have but a you the in management, Crosby within end that that jobs we excellence, little and the as underwriting, is really different, lot supply bit and model, both unfortunately, set we've about pieces use word this Mike land physical operations. and a of differences molecule creating of across of the a up and the the businesses and the and the it's phenomenal risk John centers of cut markets, we company, certainly foundational within a there's commonality, lot things, convergence. talk of and

and and matter up to some good perfectly time, focus businesses, business we we're and of pick seeing as pivot are on just trying looking common we're some to businesses get the but these it a leveraging platform. transition leverage of that and So a activities core exit across businesses, it's all

it to me aviation, in of opportunity significant position where that a got really a talk journey about the truly we're we've and one going, global a term the for So, of We're of thanks and an marine offering. aviation. question, gives because companies have longer handful

presence them Land there. and and major have of tightly you but because mean, aviation that's participants functional the Horse, the making doing is of I down it's on. just proud coming list. are road with rough with that aviation. if very further will, a now entire It's kind well. exciting, is power So engaged of is and dark diesel customer extremely the on rest do as team together and team some been progress, we and, and should marine We're business gas be market the the endless sustainability and renewables that, a we're that little we the putting

still certainly extremely we're and of platforms, that, working money, together, So, but has the come out takes and it which team time all is encouraging.

any too the to So don't but up commonality. there much that take case, strategy want I time, really and is is

the common if Ira, I geographic stop I to a functional don't is team The got know, any footprint. there. We you’ve functional team to that? add and are case, I'll guess you leveraging want anything

Ira Birns

that's answer. No, fulsome I think a

Ben Nolan

that fit? what good it think still all, land land the little two bit it from I'm view know, the opportunities present you that, of to about quarters and itself, a began something might you take extent curious, guys time. I specifically to organically talking is, or just of Is the be the And said first down little marine the we you that and profitably that, should how thinking? and acquisitions, within that's bit as are a but businesses the like, value are land feel fit, I should targeting if segment? So can there grow quarter color there? specific within dive are of business geographically, can really last you maybe where find able and you a give ago, as there opportunity lines you any that over that about making to again good possibility yes,

Michael Kasbar

thanks So, that. for

camp sort took fit being So, the that we I again. his And, of the pause, to terms scale and before commented valuation. past, in of we’ve of right base about regrouped we're think course Ira reactivating, we that start think is ready he's I commented we're in script what in do to and a we're that, on thoughtful

business, essentially So the and I makes sense. within it's what it and we like we aviation commercial marine. mean, industrial do

like So retail flow. the there's its those cash business of a commonality terms in within spaces. We

little but the southeast, and business, a a industrial transition, Makes commercial a started in continuing in sense States. of our That's Midwest, the US, throughout to us. the the of certainly we and the out, in to that lot within build United out and MidCon, bit the northwest and

to our continue interface this look marine We business. land at land and an there and aviation business our globally, is and between

to confluence a aviation have and is certainly a and different there using the So, lot locations. at you're And gas within more marine is there, the industry, use you diesel. diesel, do power whole industry going XXXX various

and The a business, to we the marketplace. our gas we're like of We’ll a grow continue lot. reflection that,

price we with a conversations amount the that at So, There's LNGs extremely that of our clients, with in LNG of activity. the significant now. interested have competitive our they're is capability

So, gas in understanding a sense. makes of expertise terms of our lot natural

and didn't got understand when I these intelligently pivoted we companies and So, those. we've wanted XXXX CNG We into and solutions, ship owners that LNG in markets. think trucking to

bill or people, they've interested of and like businesses the Energy conservation, other we energy together. risk a And together bunch so much, Bergen, competent in we because of fine Kinect US with some lot. business, together and needs, Minneapolis, have gas Norway, So, common of in and our of the those deal got group. because or to to different company, a put those liked customer, and common C&I And put we the ways then energy decided in found put it's we've and people, it's great a it management, common now few group understand whole we we companies everybody's a tremendously a sustainability. with capable others Not their people a power lot so that's a

inorganic end but about some a there's within day, and really So, And marine, it's land. together and talent. the to of are there's the figure and opportunities and land. time at buying lot good intelligently those how we in really in competencies it's out opportunities There's putting capability organic

So how do lot we together. I it And how of smarter, to just in in whole trying be of put that. to a think terms thoughtful, we're terms we're

we will to of do conference we're that, we on couple we'd we've that. I it. active, tell said over working lot you up, calls, last will that, So the of that got speed it like a people happen, can but But

So is there any other color you want to add to that?

Ira Birns

The to repetitive, only had taking able to to pricing. of achieve better trying to cost actions extend thing you add, enjoyed were the with consider low this out it's I would for transaction good years. not facility took just we be we strong wasn't the is capital bank advantage condition many if bank something week, life of we've facility, And a the do. But the like always we market

cash Our quarter. this we have has solid cash more become really flow flow ratable,

into strong quite and the Mike's a back with the et take combine you the buyback time, to our balance this much than has allowing we firepower to liquidity us and did capital to more rising return invest shareholders, the with as deal and while has to the but business for cetera. fact sufficient market, prices, profile lot still with more fuel risk them run of have comments, liquidity stronger, gotten which quarter, gives us been that you if some sheet and So consider jumping our

opportunities. an opportune us right the all around, to for find time So, it's

Ben Nolan

hopefully vein, be would this split the right and a quick What what's one that it's And answer. target? real I'll ideal an size? In

Ira Birns

something personal takes really really, as it much a don't will small, right about more to tough big, a something I fit that size. it's strategic but I moment there's share size. think about views take there's really effort, it’s my than to tell, really

higher that than depends find transactions out to opportunities end small bracket done the I transactions the bracket tough we've a millions provide maybe where learning past. now put a again, upper of in So, been the end, of but the of And, and the it of end smaller more a a smarter, which synergies it's may digit a didn't think with relatively is number could lot put a a being guess, we what's you the there's combine while if But some our incremental a it EBITDA, really high than lot more really just from there. number, on back, meaningful could past, that on have affordability number it's single if low and of I bracket on for you would on put synergies something achieve on And tough actual size. to we that we that. in value an have, very should

Michael Kasbar

accelerate that business just as different within a be think that and I capability within acquisition type the certainly to we've parts certainly sizable the is the interesting land. got for color right way to of certainly the would add of that, to and appetite more the with the certainly core, valuation, fits right

Operator

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

Ari Rosa

love comprehensive that. hear to Pretty answers,

like global it's wars, little the seeing of what start guys much. growth of So would doesn't kind the bit just you're impacting I to to just to like But you seems a seem on be impact it in of of exposed that. out, your touch wanted trade and business terms too some it

So maybe having you could there. your just give with you're conversations you're thoughts some what on customers and kind of us seeing what

Michael Kasbar

Okay.

in and evolved. geography chains diverse pretty and terms pretty our marketplace, in of of it’s terms are supply So

disrupt it we used little to. speaking, that, and doesn't the disruption a is disruption, guarantee like world generally when always different, have there's whole bit So can't been capitalized

far, commercial in commercial got any business locations, diversified And, that we concentrations And a anything. really So, I so or model. we pretty clients. expect we've don't haven't wouldn't exposure, have we've experienced got big a concentration deep in

a that diversified orientation. So, always -- had we've

it's crazy we XX% in areas. don't I any of our we're exposure, manufacturing some that trade, world heavy So, or we've have in commercial certain live anything China, not happen terms can like activity but in we concentration known exposure, think the with in, our that no got manufacturing, certainly really of in

thinking about. time we not So, trade a spend of that lot is wars something whole

Ari Rosa

it the undervalued? could I with are there, thinking your about think is you're more or guys a think fair, suggests switch the Obviously, in to guys the be are flow that's little you be terms stock how the there? you If quarter look to that still just guys activity you buyback? doing is opportunistic is to based going to you on going buyback, in buyback of free methodical what Do cash

Ira Birns

cash question, improved. Ari, our Ira. say profile flows Great liquidity there of what moments I our being ratable, mentioned has think that, of it’s if I ago, couple a again. would you are more

choices have getting been business but we're is pause our a And we there a always think shares strategic are which, yes, Our shoes our capital while, did focusing the again, in availability the bought we that if for quarter bit they we wouldn't getting -- investing were growing. mean, on and taken first a in we've undervalued. have didn't opportunities, bigger, the I

it to serious the done than think shares that, more we that to let's is of past. lot the increase back I the things we've may a that's that greater to, something we're thoughtful quarter. dividend, be which have do thought no during capital say, of led that's, the in So, buy like our buyback of guarantees But And, that doing portion every day. we'll using, a given

have you So, Mike, to add that. anything if don’t know I to

Michael Kasbar

So concerned, asset class, as I'm far really – as it's

Ira Birns

advertisement EPS. my tax this add I Sorry, I'll for don't asked lost Fuel. an thought, to that, know is one because World just do on I reform, our Mike has I I thing obviously, if that, But as which significantly higher, played than was, anything our mentioned is about rate P&L, right, earlier, now trick it for that impacted has we can't a

EPS or grown on So significantly, over couple went last years, guys of focus you tax years. couple I dramatically. when all our earlier, Ironically, EBITDA the mentioned almost evaluation It's Right. million, our rate basis. the up an last of up most I the on as over know, of of fairly has $XXX

X a a between what impact reform. victim on X, to multiple So dropped that's EPS basically still tax innocent everyone's to has of EBITDA focused EPS, and our the of kind since is created disparity as an

because we're about of as say, do would we in do well. reform. the to We the had EPS continue an perspective, of means direction understand to undervalued, with and just think So, headwinds I number impact element trying but everyone. And seriously what don't we EBITDA the drive remain growth, equation. from EBITDA that the know tax right multiple we that why I That's for EBITDA we talk obviously,

So to note I it was thought too. that important

Ari Rosa

point, So that's to just great a up I Ira. could before And if getting question. that on my get point final a maybe follow

of having guys rate down pay So, your the talk cash bring could about maybe actively government? to doing flow get that what through tax you of to to more to flow activities instead or are you

Ira Birns

in still complex So XX we're still have are answers, a in law and regime, and new laws second right? That's tax reform the Ari? -- the great question very changing, lengthy tax You flux. of related a in minutes, state a it's even quarter, we're

Our organizational reform, structure as worldwide world for was pre-tax designed right. reform to opposed tax post

I believe driving you carefully profitability, as and that down. profitability the have opportunities I winner clear bring see more to rate the a reevaluate more US So help past, be structure exist that efficient. in to now, is to mentioned in what Obviously, may

M&A strategy organically through of even investing USA a now, of our centric. and for is, very part So

extra overnight. we but we be types did time likely, Because, transpire it portion that part that there those of that start many our this will seeing focusing global me great are to us of their team, reminds to complicated. good meaningful Unfortunately, beyond or we so get And are will it’s week. some new large internally or bank of Glenn time, are that that, got spending a tax to if externally positively deal the reform rate, a their are really of We've in portion and that they benefit, nuances tax effective on a value impacting never XXXX. just opportunities. available more become going of

right now direction, and of use direction potentially countries sorry. US could outside tax wrong facilitate We borrow terms the also our many capabilities the that -- improvements some have in in driving we to in of in the to rate

on same quarter. where you. I like. Unfortunately, think update still should the, to look quarters in generally more what be next in I XXXX we think XXXX is come zip were going could the as as And have code along, we'll the this couple So to of intelligence we

as good yeah, question So, well.

Ari Rosa

higher a it little if could to if then of color could of related more and lot level a higher give Makes be you'll I more customers, is like activity then result have to the And that. to to will you on how And expect XXXX, there's that potentially given kind see in. that much advance the customers. complexity of that, on squeeze complexity of the lookout sense, just fuel costs. seems higher accommodate just, returns a required to you're you for maybe IMO as to services those one going Related provide

Michael Kasbar

be see planning there's going of and both be every you're more every to some going fuel control. is experimentation, to buyers and to going Well, location, amount on logistics perhaps available at and Not and sellers. quality

of market So, going more going is the I is things lot leverage be may there's wanting more external be to be fueling, there think one have certainly certainly it. of there that we’re we expecting the interaction, frequent to expertise, a to

way from XXs us. cards have capabilities. like way to calling still in differentiated the that, in our of we it, of back the One terms technical leader was a were And it when the I’d we we that industry say and

that. and advisory. There going So, a will sourcing and be there's be logistics certainly of to lot different

So, give add. opportunity value an that additional will for

it's not there's that to think like demand is services. remains happened it's overnight. surprise, I it and So, be positive generally a a our seen, be it greater because going for to All a

with years advance This was notice. thing

well of, Kinect certainly terms in prepared a then So, business, like and LNG, and land by with capability. we've and positioned, distillate and amount of we're we feel tremendous sourcing got virtue our of extremely internal well business, our

could say all generally else to to giving So, going in for how I I'm positive of seen us. in and color. it's what should be prepared terms it but be of terms It feel not remains sure shake we out,

Ari Rosa

conversations you of some maybe can what in kind on from will of are like, higher any of then higher of order fact, customers magnitude how in with are if, place what be profitability commentary preparations profitability looks and directionally, business. those that of progressing terms So scale the type there in give or some

Michael Kasbar

on services. carrying with time. and our have have a customers the that pretty with interacting for tools engaged need, And been we're some different with quite them we're So, and and products discussions

engagement that different have we've some surprise parts is that. the word, happy We've our in is customers of organization know, and leveraging our of our pretty terms And, of the parts with but been been pretty resources So different of we're leveraging organization. been strong. surprised that, don’t if right I

getting collaboration lot the of across We're fantastic. that's So a organization.

a that's good very thing. So

Can't it. of really terms reckless And guidance In early that. too the quantum, give to be certainly, it's to tell. any on of really do I sort would you

Operator

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

Michael Kasbar

to Well, and that you've I put an in support that us new certainly team. finding world. to and us to interesting are the the much investments the for best We've shareholders thank our given shareholders as want very the years over your place the team got

up both Thank challenge waking something thank a and interesting Fuel, It really much. in World to. so you. So you makes worth working

to So let's quarter. talking keep look next it to and forward rolling everyone

Operator

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

World Kinect (WKC) 25 Jul 192019 Q2 Earnings call transcript