MIAMI--(BUSINESS WIRE)--Jul. 5, 2016--
World Fuel Services Corporation (NYSE: INT), today announced that it has
completed the previously announced acquisitions of PAPCO, Inc. and
Associated Petroleum Products, Inc.
PAPCO is headquartered in Virginia Beach, VA, with 150 employees and
2015 revenue of $1 billion and APP is headquartered in Tacoma, WA, with
275 employees and 2015 revenue of $600 million. Both are leading
distributors of gasoline, diesel, lubricants, propane and related
services in their respective regions.
“We are pleased to welcome the PAPCO and APP teams to the World Fuel
Services organization,” stated Michael J. Kasbar, chairman and chief
executive officer of World Fuel Services Corporation. “These
transactions, combined with our existing World Fuel land segment
operations, will serve to further enhance our commercial and industrial
platforms to deliver value-added solutions to customers across the
United States.”
Excluding the impact of one-time acquisition related expenses and
amortization of acquired intangible assets of approximately $4 million
and $9 million respectively, the transactions are expected to be $0.22
to $0.26 accretive to earnings on a Non-GAAP basis in the first twelve
months.
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”). Specifically, we have used
non-GAAP accretion to earnings per share, which excludes one-time
acquisition-related expenses 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 this non-GAAP
financial measure, when considered in conjunction with our financial
information prepared in accordance with GAAP, is useful to investors to
further aid in evaluating the ongoing financial performance of the
Company and to provide greater transparency as supplemental information
to our GAAP results. 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 accretion may not be comparable to the
presentation of such metric by other companies. Investors are encouraged
to review the reconciliation of this non-GAAP measure to its most
directly comparable GAAP financial measure contained in this press
release.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding our expectations about the effect of the
acquisitions on our land segment, our commercial and industrial platform
and delivery of value-added solutions, as well as the effect of the
transaction on our earnings. These forward-looking statements are
qualified in their entirety by cautionary statements and risk factor
disclosures contained in the company’s Securities and Exchange
Commission (“SEC”) filings, including the company’s Annual Report on
Form 10-K filed with the SEC on February 16, 2016. Actual results may
differ materially from any forward-looking statements due to risks and
uncertainties, including, but not limited to: our ability to effectively
integrate and derive benefits from the acquisitions, our ability to
capitalize on new market opportunities, potential liabilities, limited
indemnities and the extent of any insurance coverage, the outcome of
pending litigation and other proceedings, the impact of quarterly
fluctuations in results, the creditworthiness of our customers and
counterparties and our ability to collect accounts receivable,
environmental and other risks associated with the storage,
transportation and delivery of petroleum products, our failure to
effectively hedge certain financial risks associated with the use of
derivatives, non-performance by counterparties or customers on
derivatives contracts, loss of, or reduced sales, to a significant
government customer, uninsured losses, the failure of fuel and other
products we sell to meet specifications, 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 and suppliers operate, the
impact of natural disasters, adverse results in legal disputes,
unanticipated tax liabilities, our ability to retain and attract senior
management and other key employees and other risks detailed from time to
time in the company’s SEC filings. New risks emerge from time to time
and it is not possible for management to predict all such risk factors
or to assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, changes in
expectations, future events, or otherwise.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global fuel
logistics, transaction management and payment processing company,
principally engaged in the distribution of fuel and related products and
services in the aviation, marine and land transportation industries.
World Fuel Services sells fuel and delivers services to its clients at
more than 8,000 locations in more than 200 countries and territories
worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, residential and government accounts. The
company also offers transaction management services which consist of
card payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160705005561/en/
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive
Vice President & Chief Financial Officer
or
Glenn Klevitz,
305-428-8000
Vice President, Assistant Treasurer
