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): November 8,
2007
________________
WORLD
FUEL SERVICES CORPORATION
(Exact
name of registrant as specified in its charter)
________________
|
Florida
(State
or other jurisdiction of
incorporation)
|
1-9533
(Commission
File Number)
|
59-2459427
(I.R.S.
Employer
Identification
No.)
|
|
9800
N.W. 41st
Street, Suite 400
Miami,
Florida
(Address
of principal executive offices)
|
33178
(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
November 8, 2007, World Fuel
Services Corporation issued a press release reporting its financial results
for
the third quarter and nine months ended September 30, 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 in
any
such filing.
Item
9.01. Financial Statements and Exhibits
|
(d)
|
Exhibits
|
|
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
Release dated November 8, 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:
November 8, 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, Executive Vice President &
Chief
Financial Officer
Or
Francis
X. Shea, Executive Vice President &
Chief
Risk and Administrative Officer
(305)
428-8000
|
WORLD
FUEL SERVICES CORPORATION REPORTS
RESULTS
FOR THE THIRD QUARTER OF 2007
GROSS
PROFIT AND VOLUMES INCREASED ACROSS ALL SEGMENTS
MIAMI,
FL
-- November 8, 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 third quarter net income of $14.8 million
($0.53 and $0.51 per share on a basic and diluted basis, respectively) compared
to $17.2 million ($0.62 and $0.59 per share on a basic and diluted basis,
respectively), in the third quarter of 2006. Our third quarter
results were adversely affected by the recording of an impairment charge
of $1.9
million relating to a commercial paper investment. The after-tax
effect of the impairment charge was $1.3 million, or $0.05 per
share.
Our
aviation segment generated record gross profit of $33.2 million, an increase
of
8% sequentially and 20% year-over-year. “The company delivered solid
year-over-year growth in volume and profitability in our aviation segment,” said
Paul H. Stebbins, Chairman and Chief Executive Officer of World Fuel Services
Corporation. “Our aviation results benefited, in part, by continued increases in
jet fuel prices during the quarter,” added Mr. Stebbins.
Our
marine
segment generated gross profit of $26.9 million, an increase of 6% from the
second quarter and 4% year-over-year. “Our marine segment has now generated
year-over-year increases in gross profit for eleven out of the last twelve
quarters and again experienced a sequential and year-over-year increase in
volume,” stated Michael J. Kasbar, President and Chief Operating Officer. “Our
gross profit in our land segment increased 7% sequentially and 29%
year-over-year, our fifth consecutive quarter of year-over-year increases
in
gross profit,” added Mr. Kasbar.
“Despite
increases in gross profit in each of our three business segments, our operating
results were negatively impacted, principally, by further increases in
compensation and general and administrative expenses as we continue to
strategically invest in our business to accelerate future growth,” stated Ira M.
Birns, Executive Vice President & Chief Financial Officer.
WORLD
FUEL
SERVICES CORPORATION REPORTS
RESULTS
FOR THE THIRD QUARTER OF 2007
Page
2
THIRD
QUARTER FINANCIAL HIGHLIGHTS
($
in
thousands, except per share data)
|
|
Quarter
Ended September 30,
|
|||||||
|
2007
|
2006
|
|||||||
|
Revenue
|
$ |
3,608,465
|
$ |
2,775,545
|
||||
|
Income
from operations
|
$ |
22,317
|
$ |
20,820
|
||||
|
Net
income
|
$ |
14,826
|
$ |
17,199
|
||||
|
Basic
earnings per share
|
$ |
0.53
|
$ |
0.62
|
||||
|
Diluted
earnings per share
|
$ |
0.51
|
$ |
0.59
|
||||
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.
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 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 THIRD QUARTER OF 2007
Page
3
|
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,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Revenue
|
$ |
3,608,465
|
$ |
2,775,545
|
$ |
9,584,033
|
$ |
8,166,403
|
||||||||
|
Cost
of sales
|
3,546,190
|
2,720,384
|
9,412,602
|
8,010,055
|
||||||||||||
|
Gross
profit
|
62,275
|
55,161
|
171,431
|
156,348
|
||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Compensation
and employee benefits
|
23,743
|
21,939
|
68,705
|
61,159
|
||||||||||||
|
Executive
severance costs
|
-
|
-
|
-
|
1,545
|
||||||||||||
|
Provision
for bad debts
|
1,294
|
429
|
594
|
1,577
|
||||||||||||
|
General
and administrative
|
14,921
|
11,973
|
40,798
|
34,258
|
||||||||||||
|
39,958
|
34,341
|
110,097
|
98,539
|
|||||||||||||
|
Income
from operations
|
22,317
|
20,820
|
61,334
|
57,809
|
||||||||||||
|
Interest
and other income, net
|
(2,209 | ) |
1,671
|
116
|
2,475
|
|||||||||||
|
Income
before income taxes
|
20,108
|
22,491
|
61,450
|
60,284
|
||||||||||||
|
Provision
for income taxes
|
5,014
|
5,252
|
14,359
|
13,655
|
||||||||||||
|
15,094
|
17,239
|
47,091
|
46,629
|
|||||||||||||
|
Minority
interest in (income) loss of
|
||||||||||||||||
|
consolidated
subsidiaries
|
(268 | ) | (40 | ) | (448 | ) |
50
|
|||||||||
|
Net
income
|
$ |
14,826
|
$ |
17,199
|
$ |
46,643
|
$ |
46,679
|
||||||||
|
Basic
earnings per share
|
$ |
0.53
|
$ |
0.62
|
$ |
1.66
|
$ |
1.71
|
||||||||
|
Basic
weighted average shares
|
28,153
|
27,777
|
28,067
|
27,304
|
||||||||||||
|
Diluted
earnings per share
|
$ |
0.51
|
$ |
0.59
|
$ |
1.60
|
$ |
1.62
|
||||||||
|
Diluted
weighted average shares
|
29,077
|
29,010
|
29,090
|
28,891
|
||||||||||||
-
Continued –
WORLD
FUEL
SERVICES CORPORATION REPORTS
RESULTS
FOR THE THIRD QUARTER OF 2007
Page
4
|
WORLD
FUEL SERVICES CORPORATION
|
||||||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
|
(UNAUDITED
- IN THOUSANDS)
|
||||||||
|
As
of
|
||||||||
|
September
30,
|
December
31,
|
|||||||
|
2007
|
2006
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ |
134,453
|
$ |
176,495
|
||||
|
Short-term
investments
|
8,100
|
12,500
|
||||||
|
Accounts
and notes receivable, net
|
1,138,372
|
860,084
|
||||||
|
Inventories
|
113,938
|
74,519
|
||||||
|
Receivables
related to derivative contracts
|
40,251
|
37,070
|
||||||
|
Prepaid
expenses and other current assets
|
47,053
|
35,423
|
||||||
|
Total
current assets
|
1,482,167
|
1,196,091
|
||||||
|
PROPERTY
AND EQUIPMENT, NET
|
34,738
|
26,730
|
||||||
|
OTHER
ASSETS
|
58,361
|
54,579
|
||||||
| $ |
1,575,266
|
$ |
1,277,400
|
|||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Short-term
debt
|
$ |
34
|
$ |
10
|
||||
|
Accounts
payable
|
948,087
|
720,790
|
||||||
|
Payables
related to derivative contracts
|
40,683
|
34,209
|
||||||
|
Accrued
expenses and other current liabilities
|
77,217
|
71,752
|
||||||
|
Total
current liabilities
|
1,066,021
|
826,761
|
||||||
|
LONG-TERM
LIABILITIES
|
47,988
|
24,670
|
||||||
|
SHAREHOLDERS'
EQUITY
|
461,257
|
425,969
|
||||||
| $ |
1,575,266
|
$ |
1,277,400
|
|||||
-
Continued -
WORLD
FUEL
SERVICES CORPORATION REPORTS
RESULTS
FOR THE THIRD QUARTER OF 2007
Page
5
|
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,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Cash
flows from operating activities:
|
||||||||||||||||
|
Net
income
|
$ |
14,826
|
$ |
17,199
|
$ |
46,643
|
$ |
46,679
|
||||||||
|
Adjustments
to reconcile net income to net cash (used in)
|
||||||||||||||||
|
by
operating activities:
|
||||||||||||||||
|
Provision
for bad debts
|
1,294
|
429
|
594
|
1,577
|
||||||||||||
|
Depreciation
and amortization
|
1,429
|
1,332
|
4,191
|
3,435
|
||||||||||||
|
Deferred
income tax provision (benefit)
|
770
|
753
|
(647 | ) |
3,373
|
|||||||||||
|
Impairment
on short-term investments
|
1,900
|
-
|
1,900
|
-
|
||||||||||||
|
Share
based payment compensation costs for employees and
|
-
|
-
|
||||||||||||||
|
non-employee
directors
|
1,778
|
2,393
|
5,435
|
4,883
|
||||||||||||
|
Unrealized
gains from derivatives and related hedged items, net
|
(649 | ) | (1,682 | ) | (608 | ) | (1,417 | ) | ||||||||
|
Other
non-cash operating charges
|
(52 | ) | (28 | ) | (239 | ) | (60 | ) | ||||||||
|
Changes
in operating assets and liabilities:
|
-
|
-
|
-
|
-
|
||||||||||||
|
Accounts
receivable
|
(134,363 | ) | (53,139 | ) | (278,882 | ) | (142,517 | ) | ||||||||
|
Inventories
|
(28,113 | ) | (10,850 | ) | (38,261 | ) | (29,959 | ) | ||||||||
|
Receivables
related to derivative contracts
|
3,737
|
18,480
|
(3,300 | ) | (6,519 | ) | ||||||||||
|
Prepaid
expenses and other current assets
|
5,310
|
6,711
|
(9,178 | ) |
13,281
|
|||||||||||
|
Non-current
income tax receivable and other assets
|
(82 | ) |
63
|
(1,471 | ) | (55 | ) | |||||||||
|
Accounts
payable
|
61,159
|
19,722
|
227,297
|
125,236
|
||||||||||||
|
Payables
related to derivative contracts
|
(3,736 | ) | (10,282 | ) |
5,924
|
4,750
|
||||||||||
|
Accrued
expenses and other current liabilities
|
5,847
|
(4,325 | ) |
12,662
|
(8,519 | ) | ||||||||||
|
Non-current
income tax payable, deferred compensation
|
-
|
-
|
||||||||||||||
|
and
other long-term liabilities
|
812
|
690
|
1,107
|
525
|
||||||||||||
|
Total
adjustments
|
(82,959 | ) | (29,733 | ) | (73,476 | ) | (31,986 | ) | ||||||||
|
Net cash (used in) provided by operating activities
|
(68,133 | ) | (12,534 | ) | (26,833 | ) |
14,693
|
|||||||||
|
Cash
flows from investing activities:
|
||||||||||||||||
|
Capital
expenditures
|
(5,539 | ) | (5,287 | ) | (12,669 | ) | (15,333 | ) | ||||||||
|
Purchases
of short-term investments
|
(10,000 | ) | (10,000 | ) | (30,060 | ) | (31,055 | ) | ||||||||
|
Proceeds
from the sale of short-term investments
|
-
|
-
|
32,560
|
31,055
|
||||||||||||
|
Acquisition
of minority interests
|
-
|
-
|
-
|
(2,646 | ) | |||||||||||
|
Net
cash used in investing activities
|
(15,539 | ) | (15,287 | ) | (10,169 | ) | (17,979 | ) | ||||||||
|
Cash
flows from financing activities:
|
||||||||||||||||
|
Dividends
paid on common stock
|
(1,063 | ) | (1,026 | ) | (3,189 | ) | (3,094 | ) | ||||||||
|
Minority
interest distribution
|
-
|
-
|
(426 | ) | (410 | ) | ||||||||||
|
Borrowings
under revolving credit facility
|
-
|
25,000
|
-
|
25,000
|
||||||||||||
|
Repayments
under revolving credit facility
|
-
|
(25,000 | ) |
-
|
(25,000 | ) | ||||||||||
|
Repayment
of promissory notes
|
-
|
-
|
-
|
(500 | ) | |||||||||||
|
Proceeds
from exercise of stock options
|
104
|
628
|
730
|
5,298
|
||||||||||||
|
Purchases
of stock tendered by employees to satisfy the required
|
||||||||||||||||
|
withholding
taxes related to share-based awards
|
(1,644 | ) | (941 | ) | (2,583 | ) | (1,050 | ) | ||||||||
|
Other
|
141
|
204
|
428
|
(44 | ) | |||||||||||
|
Net
cash (used in) provided by financing activities
|
(2,462 | ) | (1,135 | ) | (5,040 | ) |
200
|
|||||||||
|
Net
decrease in cash and cash equivalents
|
(86,134 | ) | (28,956 | ) | (42,042 | ) | (3,086 | ) | ||||||||
|
Cash
and cash equivalents, at beginning of period
|
220,587
|
159,154
|
176,495
|
133,284
|
||||||||||||
|
Cash
and cash equivalents, at end of period
|
$ |
134,453
|
$ |
130,198
|
$ |
134,453
|
$ |
130,198
|
||||||||