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): February 28, 2008


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 the 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 February 28, 2008, World Fuel Services Corporation issued a press release reporting its financial results for the fourth quarter and year ended December 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

This information and 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 February 28, 2008.


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 hereunto duly authorized.

Date:

February 28, 2008

World Fuel Services Corporation

 

 

 

/s/ Ira M. Birns

Ira M. Birns

Executive Vice President and Chief Financial Officer

Exhibit 99.1

World Fuel Services Corporation Reports Results for the Fourth Quarter and Full Year 2007

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 fourth quarter net income of $18.1 million, ($0.64 and $0.63 per share on a basic and diluted basis, respectively), compared to $17.3 million, ($0.62 and $0.60 per share on a basic and diluted basis, respectively), in the fourth quarter of 2006. Our 2007 fourth quarter results were adversely affected by an impairment charge of $2.4 million relating to the write down of capitalized software development costs associated with an aviation flight planning company acquired in 1998. The after-tax effect of the impairment charge was $1.7 million, or $0.06 per share on a basic and diluted basis. For the full year, net income was $64.8 million ($2.30 and $2.23 per share on a basic and diluted basis, respectively), compared to $63.9 million ($2.33 and $2.21 per share on a basic and diluted basis, respectively) in 2006. Our full year results were impacted by impairment charges relating to the write down of a commercial paper investment and capitalized software development costs, aggregating $3.0 million after-tax, or $0.11 per share on a basic and diluted basis.

“While full year results were clearly impacted by strategic investments in people and systems, we finished the year with a strong fourth quarter,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. “Our aviation segment which delivered strong growth in volumes and gross profit for the year, generated record gross profit of $39.1 million in the fourth quarter, an increase of 18% sequentially and 37% year-over-year. As in the third quarter, our aviation segment benefited from increases in jet fuel prices during the quarter,” added Stebbins.

Our marine segment also delivered solid growth in volume and profitability in 2007, generating gross profit of $32.8 million in the fourth quarter, an increase of 22% from the third quarter and 20% year-over-year. “Our marine segment has now generated year-over-year increases in gross profit for twelve out of the last thirteen quarters and while gross profit in our land segment decreased 8% sequentially, gross profit increased 10% year-over-year, our sixth consecutive year-over-year increase in gross profit,” stated Michael J. Kasbar, president and chief operating officer.

“During the fourth quarter, the company also refinanced its bank credit facility, increasing availability under the facility to $475 million and extending the terms of such facility through December 2012,” stated Ira M. Birns, Executive Vice President and Chief Financial Officer. “This facility provides us with increased liquidity to support both organic and strategic growth opportunities going forward,” added Birns.


FOURTH QUARTER AND FULL YEAR FINANCIAL HIGHLIGHTS

($ in thousands, except per share data)

 

 

Quarter Ended December 31,

 

Year Ended December 31,

2007   2006 2007   2006
Revenue $ 4,145,522 $ 2,618,733 $ 13,729,555 $ 10,785,136
Gross profit $ 73,841 $ 57,721 $ 245,272 $ 214,069

Income from operations

$ 24,554 $ 18,837 $ 85,888 $ 76,646
Net income $ 18,130 $ 17,269 $ 64,773 $ 63,948

Basic earnings per share

$ 0.64 $ 0.62 $ 2.30 $ 2.33

Diluted earnings per share

$

0.63 $ 0.60 $ 2.23 $ 2.21

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.


WORLD FUEL SERVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)
     
For the Three Months Ended For the Year Ended
December 31, December 31,
2007 2006 2007 2006
 
Revenue $ 4,145,522 $ 2,618,733 $ 13,729,555 $ 10,785,136
Cost of sales   4,071,681   2,561,012   13,484,283   10,571,067
Gross profit   73,841   57,721   245,272   214,069
 
Operating expenses:
Compensation and employee benefits 26,104 21,828 94,809 82,987
Executive severance costs - - - 1,545
Provision for bad debts 1,298 2,292 1,892 3,869
General and administrative   21,885   14,764   62,683   49,022
  49,287   38,884   159,384   137,423
 
Income from operations 24,554 18,837 85,888 76,646
 
Interest and other income, net   582   2,278   698   4,753
 
Income before income taxes 25,136 21,115 86,586 81,399
Provision for income taxes   6,876   3,698   21,235   17,353
18,260 17,417 65,351 64,046
 

Minority interest in income of consolidated subsidiaries

  130   148   578   98
 
Net income $ 18,130 $ 17,269 $ 64,773 $ 63,948
 
Basic earnings per share $ 0.64 $ 0.62 $ 2.30 $ 2.33
 
Basic weighted average shares   28,213   27,835   28,102   27,467
 
Diluted earnings per share $ 0.63 $ 0.60 $ 2.23 $ 2.21
 
Diluted weighted average shares   29,004   29,021   29,062   28,923

WORLD FUEL SERVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED - IN THOUSANDS)
   
As of December 31,
2007 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 36,151 $ 176,495
Restricted cash 10,000 -
Short-term investments 8,100 12,500
Accounts and notes receivable, net 1,370,656 860,084
Inventories 103,029 74,519
Receivables related to derivative contracts 86,531 37,070
Prepaid expenses and other current assets   50,841   35,423
 
Total current assets 1,665,308 1,196,091
 
PROPERTY AND EQUIPMENT, NET 36,870 26,730
 
GOODWILL 52,104 44,321
 
IDENTIFIABLE INTANGIBLE ASSETS, NET 26,478 4,961
 
OTHER ASSETS   17,286   5,297
 
$ 1,798,046 $ 1,277,400
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 53 $ 10
Accounts payable 1,066,971 720,790
Payables related to derivative contracts 88,302 34,209
Customer deposits 38,452 23,399
Accrued expenses and other current liabilities   37,333   48,353
 
Total current liabilities 1,231,111 826,761
 
DEBT

 

45,191 20,062
 
LONG-TERM LIABILITIES 37,867 4,608
 
SHAREHOLDERS' EQUITY   483,877   425,969
 
$ 1,798,046 $ 1,277,400

WORLD FUEL SERVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED - IN THOUSANDS)
     
For the Three Months Ended For the Year Ended
December 31, December 31,
2007 2006 2007 2006
Cash flows from operating activities:
Net income $ 18,130   $ 17,269   $ 64,773   $ 63,948  

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Provision for bad debts 1,298 2,292 1,892 3,869
Depreciation and amortization 2,710 1,431 6,901 4,866
Deferred income tax (benefit) provision (2,373 ) 814 (3,020 ) 4,187
Unrealized derivatives losses (gains), net 715 561 107 (856 )

Share based payment compensation costs for employees and non-employee directors

1,731 2,152 7,166 7,035
Software write-down 2,445 - 2,445 -
Impairment on short-term investments - - 1,900 -
Other non-cash operating charges (credits) 688 133 449 73
Changes in operating assets and liabilities:
Accounts receivable (175,411 ) (31,831 ) (454,293 ) (174,348 )
Inventories 11,481 (7,912 ) (26,780 ) (37,871 )
Other current assets (44,704 ) (3,155 ) (57,182 ) 3,607
Other assets (7,623 ) 29 (9,094 ) (26 )
Accounts payable 88,980 59,979 316,277 185,215
Accrued expenses and other current liabilities 41,765 12,175 60,351 8,406
Other   9,074     (746 )   10,181     (221 )
Total adjustments   (69,224 )   35,922     (142,700 )   3,936  
Net cash (used in) provided by operating activities   (51,094 )   53,191     (77,927 )   67,884  
Cash flows from investing activities:
Capital expenditures (3,912 ) (4,698 ) (16,581 ) (20,031 )
Purchases of short-term investments - (27,500 ) (30,060 ) (58,555 )
Proceeds from the sale of short-term investments - 25,000 32,560 56,055
Acquisition of business, net of cash acquired   (54,907 )   -     (54,907 )   (2,646 )
Net cash used in investing activities   (58,819 )   (7,198 )   (68,988 )   (25,177 )
Cash flows from financing activities:
Dividends paid on common stock (1,064 ) (1,066 ) (4,253 ) (4,160 )
Borrowings (repayments), net, under revolving credit facility 20,000 - 20,000 -
Restricted cash (10,000 ) - (10,000 ) -
Other   2,675     1,370     824     4,664  
Net cash used in financing activities   11,611     304     6,571     504  
Net (decrease) increase in cash and cash equivalents (98,302 ) 46,297 (140,344 ) 43,211
Cash and cash equivalents, at beginning of period   134,453     130,198     176,495     133,284  
Cash and cash equivalents, at end of period $ 36,151   $ 176,495   $ 36,151   $ 176,495  

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