UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 10, 2007
WORLD FUEL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
| Florida |
1-9533 |
59-2459427 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 9800 N.W. 41st Street, Suite 400 Miami, Florida |
33178 | |
| (Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (305) 428-8000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
Item 7.01. Regulation FD Disclosure
The following information is provided pursuant to Item 7.01 of Form 8-K, “Regulation FD Disclosure” and Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.”
On May 10, 2007, World Fuel Services Corporation issued a press release reporting its financial results for the first quarter ended March 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933 as amended, or the Exchange Act, except as may be expressly set forth by specific reference any such filing.
Item 9.01. Financial Statements and Exhibits
| (d) |
Exhibits |
| Exhibit No. | Description | |
| 99.1 | Press Release dated May 10, 2007. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: May 10, 2007 |
World Fuel Services Corporation | |||
| /s/ Ira M. Birns | ||||
| Ira M. Birns Executive Vice President and Chief Financial Officer | ||||
Exhibit 99.1
|
|
Contacts: |
Ira M. Birns, EVP & CFO ibirns@wfscorp.com (305) 428-8000 or Francis X. Shea, EVP & CRAO fshea@wfscorp.com (305) 428-8000 |
WORLD FUEL SERVICES CORPORATION REPORTS
RESULTS FOR THE FIRST QUARTER OF 2007
MIAMI (May 10, 2007) … 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 net income for the first quarter ended March 31, 2007 of $14.8 million, or $0.51 per diluted share, compared to $15.0 million, or $0.52 per diluted share, for the same quarter in the prior year.
“The company delivered strong growth in volume and profitability in our marine and land segments as well as strong volume in our aviation segment this quarter,” said Paul H. Stebbins, Chairman and Chief Executive Officer. “However, our aviation segment results were significantly impacted by a rapid decline in jet fuel prices in the early part of the first quarter. And although fuel prices rebounded late in the first quarter, the benefit of this increase was not fully realized until the early part of the second quarter. This timing disconnect notwithstanding, it is important to note, the fundamentals of our business across all segments were strong and we continue to see significant growth opportunities over the balance of 2007.”
FIRST QUARTER FINANCIAL HIGHLIGHTS
($ in thousands, except per share data)
| Quarter Ended March 31, | ||||||
| 2007 | 2006 | |||||
| Revenue |
$ | 2,702,209 | $ | 2,534,006 | ||
| Income from operations |
$ | 16,951 | $ | 19,953 | ||
| Net income |
$ | 14,829 | $ | 14,978 | ||
| Diluted earnings per share |
$ | 0.51 | $ | 0.52 | ||
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services Corporation is a global leader in the marketing and sale of marine, aviation and land fuel products and related services. World Fuel Services provides fuel and related services at more than 2,500 airports, seaports and tanker truck loading terminals worldwide. With 43 offices (including satellite offices) strategically located throughout the world, World Fuel Services offers its customers a value-added outsource service for the supply, quality control, logistical support and price risk management of marine, aviation and land fuel.
The Company’s global team of market makers provides deep domain expertise in all aspects of marine, aviation and land fuel management. World Fuel Services’ marine customers include international container and tanker fleets and time-charter operators, as well as the United States and foreign governments. Aviation customers include commercial airlines, cargo carriers and corporate clientele, as well as the United States and foreign governments. Land customers are primarily petroleum distributors. For more information, call (305) 428-8000 or visit http://www.wfscorp.com.
With the exception of historical information in this news release, this document includes forward-looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, fluctuations in world oil prices or foreign currency, major changes in political, economic, regulatory, or environmental conditions, the loss of key customers, suppliers or key members of senior management, uninsured losses, competition, credit risk associated with accounts and notes receivable, and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ materially from any forward-looking statements set forth herein.
TABLES FOLLOW
WORLD FUEL SERVICES CORPORATION REPORTS
RESULTS FOR THE FIRST QUARTER OF 2007
Page 2
WORLD FUEL SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED—IN THOUSANDS, EXCEPT PER SHARE DATA)
| For the Three Months Ended March 31, |
||||||||
| 2007 | 2006 | |||||||
| Revenue |
$ | 2,702,209 | $ | 2,534,006 | ||||
| Cost of sales |
2,651,041 | 2,484,261 | ||||||
| Gross profit |
51,168 | 49,745 | ||||||
| Operating expenses: |
||||||||
| Compensation and employee benefits |
22,875 | 18,744 | ||||||
| Provision for bad debts |
(387 | ) | 508 | |||||
| General and administrative |
11,729 | 10,540 | ||||||
| 34,217 | 29,792 | |||||||
| Income from operations |
16,951 | 19,953 | ||||||
| Other expense, net |
773 | (28 | ) | |||||
| Income before income taxes |
17,724 | 19,925 | ||||||
| Provision for income taxes |
2,839 | 5,116 | ||||||
| 14,885 | 14,809 | |||||||
| Minority interest in (income) loss of consolidated subsidiaries |
(56 | ) | 169 | |||||
| Net income |
$ | 14,829 | $ | 14,978 | ||||
| Basic earnings per share |
$ | 0.53 | $ | 0.56 | ||||
| Basic weighted average shares |
28,003 | 26,963 | ||||||
| Diluted earnings per share |
$ | 0.51 | $ | 0.52 | ||||
| Diluted weighted average shares |
29,118 | 28,642 | ||||||
- Continued -
WORLD FUEL SERVICES CORPORATION REPORTS
RESULTS FOR THE FIRST QUARTER OF 2007
Page 3
WORLD FUEL SERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED—IN THOUSANDS)
| As of | ||||||
| March 31, 2007 |
December 31, 2006 | |||||
| ASSETS |
||||||
| CURRENT ASSETS: |
||||||
| Cash and cash equivalents |
$ | 164,545 | $ | 176,495 | ||
| Short-term investments |
27,544 | 12,500 | ||||
| Accounts and notes receivable, net |
886,260 | 860,084 | ||||
| Inventories |
65,827 | 74,519 | ||||
| Receivables related to derivative contracts |
47,062 | 37,070 | ||||
| Prepaid expenses and other current assets |
43,405 | 35,423 | ||||
| Total current assets |
1,234,643 | 1,196,091 | ||||
| PROPERTY AND EQUIPMENT, NET |
29,005 | 26,730 | ||||
| OTHER ASSETS |
58,178 | 54,579 | ||||
| $ | 1,321,826 | $ | 1,277,400 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
| CURRENT LIABILITIES: |
||||||
| Short-term debt |
$ | 8 | $ | 10 | ||
| Accounts payable |
731,905 | 720,790 | ||||
| Payables related to derivative contracts |
49,653 | 34,209 | ||||
| Accrued expenses |
62,291 | 71,752 | ||||
| Total current liabilities |
843,857 | 826,761 | ||||
| LONG-TERM LIABILITIES |
48,248 | 24,670 | ||||
| SHAREHOLDERS’ EQUITY |
429,721 | 425,969 | ||||
| $ | 1,321,826 | $ | 1,277,400 | |||