World Fuel Services Corporation Reports Solid Earnings for the Third Quarter of 2009

http://www.businesswire.com/news/home/20091103006637/en

Aviation Volume Increases 21% Sequentially
MIAMI--(Business Wire)--
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 third quarter net income of $29.1 million or $0.97 diluted earnings per
share compared to $40.1 million or $1.37 diluted earnings per share in the third
quarter of 2008. Non-GAAP net income for the third quarter, which excludes
share-based compensation and amortization of acquired intangible assets, was
$31.4 million or $1.04 non-GAAP diluted earnings per share compared to $43.6
million or $1.49 non-GAAP diluted earnings per share in the third quarter of
2008. A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release. An explanation of
these measures is also included below under the heading "Non-GAAP Financial
Measures."

"Our aviation segment posted strong sequential volume growth, resulting in the
first year-over-year increase in five quarters and achieving volumes not seen
since the second quarter of 2008," said Paul H. Stebbins, chairman and chief
executive officer of World Fuel Services Corporation. "We remain focused on
aggressively managing risk, improving our customer offering and enhancing our
global supply relationships."

"The marine business performed well despite challenging economic conditions,"
stated Michael J. Kasbar, president and chief operating officer. "Our land
business delivered solid results for the second consecutive quarter," added
Kasbar.

The company`s aviation segment generated gross profit of $42.9 million in the
third quarter of 2009, an increase of $3.1 million or 8% sequentially, but a
decrease of 15% from last year`s record third quarter. The marine segment
generated third quarter gross profit of $40.2 million, flat sequentially and a
decline of 37% from the record results achieved in the third quarter of last
year. The company`s land segment posted gross profit of $11.7 million in the
third quarter, an increase of 2% sequentially and 15% year-over-year.

Non-GAAP Financial Measures

This press release includes selected financial information that has not been
prepared in accordance with accounting principles generally accepted in the
United States ("GAAP"). This information includes non-GAAP net income and
non-GAAP diluted earnings per share. The non-GAAP financial measures exclude
costs associated with share-based compensation and amortization of acquired
intangible assets, primarily because we do not believe they are reflective of
the company`s core operating results. We believe that these non-GAAP financial
measures, when considered in conjunction with our financial information prepared
in accordance with GAAP, are useful for investors to evaluate our core operating
results and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP. In
addition, our presentation of non-GAAP net income and non-GAAP earnings per
share may not be comparable to the presentation of such metrics by other
companies. Investors are encouraged to review the reconciliation of these
non-GAAP measures to their most directly comparable GAAP financial measure. As
previously mentioned, a reconciliation of GAAP to non-GAAP results has been
provided in the financial statement tables included in this press release.

Information Relating to 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
creditworthiness of customers and counterparties and our ability to collect
accounts receivable and settle derivatives contracts, fluctuations in world oil
prices or foreign currency, changes in political, economic, regulatory, or
environmental conditions, adverse conditions in the markets or industries in
which we or our customers operate, our failure to effectively hedge certain
financial risks associated with the use of derivatives, non-performance by
counterparties or customers on derivatives contracts, the integration of
acquired businesses, uninsured losses, our ability to retain and attract senior
management and other key employees 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.

About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services is a global leader in the
marketing and sale of marine, aviation and land fuel products, as well as
related services. World Fuel Services sells fuel and delivers services to its
clients at more than 6,000 locations in more than 190 countries, including
airports, seaports, tanker truck loading terminals and other customer storage
locations. With 44 strategically located global offices (including satellite
offices), World Fuel Services offers its clients 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
include petroleum distributors, retail petroleum operators, and industrial,
commercial and government accounts. For more information, call 305-428-8000 or
visit http://www.wfscorp.com.

WORLD FUEL SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)

For the Three Months ended For the Nine Months ended
September 30, September 30,
2009 2008 2009 2008

Revenue $ 3,202,653 $ 5,453,351 $ 7,749,936 $ 15,595,955
Cost of revenue 3,107,921 5,329,546 7,476,301 15,304,019

Gross profit 94,732 123,805 273,635 291,936

Operating expenses:
Compensation and employee benefits 32,359 35,503 101,231 100,381
Provision for bad debt 1,774 6,842 2,696 16,899
General and administrative 19,726 21,144 59,603 62,197

53,859 63,489 163,530 179,477

Income from operations 40,873 60,316 110,105 112,459
Interest and other expense, net 1,339 5,348 3,256 10,316

Income before income taxes 39,534 54,968 106,849 102,143
Provision for income taxes 10,437 14,848 23,990 25,552

Net income including noncontrolling
interest 29,097 40,120 82,859 76,591
Less: net income attributable to
noncontrolling interest 25 35 215 205

Net income attributable to World Fuel $ 29,072 $ 40,085 $ 82,644 $ 76,386

Basic earnings per share $ 0.98 $ 1.38 $ 2.81 $ 2.65

Basic weighted average common shares 29,578 29,123 29,433 28,778

Diluted earnings per share $ 0.97 $ 1.37 $ 2.78 $ 2.63

Diluted weighted average common shares 30,081 29,307 29,766 29,083

WORLD FUEL SERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED - IN THOUSANDS)

As of
September 30, December 31,
2009 2008

Assets:
Current assets:
Cash and cash equivalents $ 348,504 $ 314,352
Short-term investments 8,100 8,100
Accounts receivable, net 864,562 676,100
Inventories 101,462 28,726
Short-term derivative assets, net 19,255 72,260
Prepaid expenses and other current assets 50,778 72,612

Total current assets 1,392,661 1,172,150

Property and equipment, net 39,279 35,328

Other assets 238,476 197,148

Total assets $ 1,670,416 $ 1,404,626

Liabilities and equity:
Current liabilities:
Short-term debt $ 10,871 $ 23,840
Accounts payable 770,476 548,876
Short-term derivative liabilities, net 23,367 66,302
Customer deposits 53,235 40,961
Accrued expenses and other current liabilities 57,989 70,808

Total current liabilities 915,938 750,787

Long-term debt 9,796 9,537
Other long-term liabilities 46,412 36,156
Total liabilities 972,146 796,480

Equity:
World Fuel shareholders' equity 698,247 607,887
Noncontrolling interest equity 23 259
Total equity 698,270 608,146

Total liabilities and equity $ 1,670,416 $ 1,404,626

WORLD FUEL SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED - IN THOUSANDS)

For the Three Months ended For the Nine Months ended
September 30, September 30,
2009 2008 2009 2008

Cash flows from operating activities:
Net income including noncontrolling interest $ 29,097 $ 40,120 $ 82,859 $ 76,591
Adjustments to reconcile net income including
noncontrolling interest to net cash (used in)
provided by operating activities:
Depreciation and amortization 4,987 3,971 13,127 9,869
Provision for bad debt 1,774 6,842 2,696 16,899
Deferred income tax provision (benefit) 2,732 2,280 5,916 (3,852 )
Share-based payment compensation costs 869 2,923 4,471 6,808
Foreign currency transaction (gains)
losses, net (1,479 ) 2,010 (1,671 ) 1,502
Other 248 77 773 307
Changes in assets and liabilities, net of
acquisitions (42,058 ) 230,672 8,984 91,668
Total adjustments (32,927 ) 248,775 34,296 123,201
Net cash (used in) provided by operating
activities (3,830 ) 288,895 117,155 199,792

Cash flows provided by (used in)
investing activities 3,256 (640 ) (57,216 ) (99,419 )

Cash flows (used in) provided by financing activities (5,296 ) (181,948 ) (28,179 ) 24,004

Effect of exchange rate changes on cash and
cash equivalents 1,563 (2,010 ) 2,392 (1,502 )

Net (decrease) increase in cash and
cash equivalents (4,307 ) 104,297 34,152 122,875

Cash and cash equivalents, at beginning
of period 352,811 54,729 314,352 36,151

Cash and cash equivalents, at end of period $ 348,504 $ 159,026 $ 348,504 $ 159,026

WORLD FUEL SERVICES CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)

For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

Non-GAAP financial measures and reconciliation:

GAAP net income attributable to World Fuel $ 29,072 $ 40,085 $ 82,644 $ 76,386
Share-based compensation expense, net of taxes 718 2,052 3,244 4,702
Intangible asset amortization expense, net of taxes 1,630 1,416 4,487 2,689
Non-GAAP net income attributable to World Fuel $ 31,420 $ 43,553 $ 90,375 $ 83,777

GAAP diluted earnings per share $ 0.97 $ 1.37 $ 2.78 $ 2.63
Share-based compensation expense, net of taxes 0.02 0.07 0.11 0.16
Intangible asset amortization expense, net of taxes 0.05 0.05 0.15 0.09
Non-GAAP diluted earnings per share $ 1.04 $ 1.49 $ 3.04 $ 2.88

WORLD FUEL SERVICES CORPORATION
BUSINESS SEGMENT INFORMATION
(UNAUDITED - IN THOUSANDS)

For the Three Months ended For the Nine Months ended
September 30, September 30,
2009 2008 2009 2008
Revenue:
Marine segment $ 1,706,151 $ 2,925,300 $ 4,190,510 $ 8,386,490
Aviation segment 1,154,206 2,045,278 2,696,786 6,169,625
Land segment 342,296 482,773 862,640 1,039,840
$ 3,202,653 $ 5,453,351 $ 7,749,936 $ 15,595,955

Gross profit:
Marine segment $ 40,190 $ 63,247 $ 127,629 $ 144,615
Aviation segment 42,892 50,451 114,657 130,762
Land segment 11,650 10,107 31,349 16,559
$ 94,732 $ 123,805 $ 273,635 $ 291,936

Income from operations:
Marine segment $ 22,058 $ 42,355 $ 74,039 $ 83,695
Aviation segment 21,204 23,906 50,603 54,075
Land segment 2,743 2,422 7,715 1,052
46,005 68,683 132,357 138,822
Corporate overhead (5,132 ) (8,367 ) (22,252 ) (26,363 )
$ 40,873 $ 60,316 $ 110,105 $ 112,459

World Fuel Services Corporation
Ira M. Birns, Executive Vice President &
Chief Financial Officer
or
Francis X. Shea, Executive Vice President &
Chief Risk and Administrative Officer
305-428-8000

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