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): March 16, 2006 (March 16, 2006)
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 |
33178 | |
(Address of principal executive offices) | (Zip Code) |
Registrants 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 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 March 16, 2006, World Fuel Services Corporation issued a press release reporting its financial results for the quarter and year ended December 31, 2005. 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 shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(c) | Exhibits |
Exhibit No. | Description | |
99.1 | Press Release dated March 16, 2006. |
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: March 16, 2006 | World Fuel Services Corporation | |
/s/ Michael J. Kasbar | ||
Michael J. Kasbar | ||
General Counsel and Corporate Secretary |
-2-
Exhibit 99.1
NEWS RELEASE for March 16, 2006
Contact: | Allen & Caron Inc | World Fuel Services Corporation | ||||
Michael Mason (Investors) | Robert S. Tocci, CFO & EVP | |||||
michaelm@allencaron.com | btocci@wfscorp.com | |||||
(212) 691-8087 | (305) 428-8000 | |||||
or | ||||||
Len Hall (Media) | ||||||
len@allencaron.com | ||||||
(949) 474-4300 |
WORLD FUEL SERVICES CORPORATION REPORTS RECORD
EARNINGS FOR 2005, UP 39% FROM 2004
MIAMI (March 16, 2006) World Fuel Services Corporation (NYSE:INT) (the Company), a global leader in the marketing and financing of marine and aviation fuel products and related services, today reported that net income for the fourth quarter ended December 31, 2005 was $12.0 million, or $0.42 per diluted share, compared to $11.2 million, or $0.47 per diluted share, for the same quarter in the prior year. For the year ended December 31, 2005, the Company reported a 39% increase in net income to $39.6 million, or $1.57 per diluted share, from $28.6 million, or $1.22 per diluted share, for the same period in the prior year.
During December 2005, the Company elected to repatriate $40.0 million in foreign earnings in order to take advantage of the special taxing provisions, available only through the end of 2005, contained in the American Jobs Creation Act of 2004. Under the special taxing provisions, only 15% of foreign earnings repatriated were subject to U.S. tax. The repatriation increased our tax expense for the year ended December 31, 2005 by $2.8 million, or $0.11 per diluted share, and increased our effective tax rate by approximately 5.1%.
We are very pleased to report record results for the year, said Paul Stebbins, Chairman and Chief Executive Officer. Our global team has done an outstanding job and provided an excellent platform for 2006.
FOURTH QUARTER AND YEAR END FINANCIAL HIGHLIGHTS
($ in thousands, except per share data)
Quarter Ended December 31, | Year Ended December 31, | |||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||
Revenue |
$ | 2,534,255 | $ | 1,790,847 | $ | 8,733,947 | $ | 5,654,373 | ||||
Income From Operations |
$ | 19,739 | $ | 14,825 | $ | 56,620 | $ | 37,972 | ||||
Net Income |
$ | 11,970 | $ | 11,221 | $ | 39,609 | $ | 28,559 | ||||
Diluted earnings per share |
$ | 0.42 | $ | 0.47 | $ | 1.57 | $ | 1.22 |
- CONTINUED -
WORLD FUEL SERVICES CORPORATION REPORTS RECORD EARNINGS FOR 2005, UP 39% FROM 2004
Page 2
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services Corporation is a global leader in the marketing and sale of marine and aviation fuel products and related services. World Fuel Services provides fuel and related services at more than 2,500 airports and seaports worldwide. With 43 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 and aviation fuel.
The Companys global team of market makers provides deep domain expertise in all aspects of marine and aviation 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. The Companys aviation customers include commercial airlines, cargo carriers and corporate clientele, as well as the United States and foreign governments. For more information, call (305) 428-8000 or visit www.wfscorp.com.
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, material disruptions in the availability or supply of fuel, adverse conditions in the shipping and aviation industries, major changes in political, economic, regulatory, or environmental conditions, the impact of natural disasters, the loss of key customers, suppliers or key members of senior management, uninsured losses, changes in United States and foreign laws, competition, credit risk associated with accounts and notes receivable, financial risks associated with our business and our price risk management services, and other risks detailed from time to time in the Companys 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 RECORD EARNINGS FOR 2005, UP 39% FROM 2004
Page 3
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue |
$ | 2,534,255 | $ | 1,790,847 | $ | 8,733,947 | $ | 5,654,373 | ||||||||
Cost of sales |
2,478,401 | 1,747,599 | 8,555,283 | 5,524,417 | ||||||||||||
Gross profit |
55,854 | 43,248 | 178,664 | 129,956 | ||||||||||||
Operating expenses: |
||||||||||||||||
Compensation and employee benefits |
20,947 | 18,331 | 74,030 | 58,634 | ||||||||||||
Provision for bad debts |
2,072 | 1,527 | 8,644 | 4,338 | ||||||||||||
General and administrative |
13,096 | 8,565 | 39,370 | 29,012 | ||||||||||||
36,115 | 28,423 | 122,044 | 91,984 | |||||||||||||
Income from operations |
19,739 | 14,825 | 56,620 | 37,972 | ||||||||||||
Other income (expense), net |
391 | (221 | ) | (792 | ) | (2,138 | ) | |||||||||
Income before income taxes |
20,130 | 14,604 | 55,828 | 35,834 | ||||||||||||
Provision for income taxes |
7,886 | 3,328 | 15,475 | 6,969 | ||||||||||||
12,244 | 11,276 | 40,353 | 28,865 | |||||||||||||
Minority interest in income of consolidated subsidiaries |
(274 | ) | (55 | ) | (744 | ) | (306 | ) | ||||||||
Net income |
$ | 11,970 | $ | 11,221 | $ | 39,609 | $ | 28,559 | ||||||||
Basic earnings per share |
$ | 0.44 | $ | 0.50 | $ | 1.67 | $ | 1.29 | ||||||||
Basic weighted average shares |
26,938 | 22,368 | 23,700 | 22,104 | ||||||||||||
Diluted earnings per share |
$ | 0.42 | $ | 0.47 | $ | 1.57 | $ | 1.22 | ||||||||
Diluted weighted average shares |
28,428 | 23,668 | 25,214 | 23,454 | ||||||||||||
Continued
WORLD FUEL SERVICES CORPORATION REPORTS RECORD EARNINGS, UP 39% FROM 2004
Page 4
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
As of December 31, 2005 |
As of December 31, 2004 | |||||
ASSETS |
||||||
CURRENT ASSETS: |
||||||
Cash and cash equivalents |
$ | 133,284 | $ | 64,178 | ||
Short-term investments |
10,000 | | ||||
Accounts and notes receivable, net |
688,129 | 490,780 | ||||
Inventories |
35,802 | 40,901 | ||||
Prepaid fuel and expenses |
81,095 | 52,209 | ||||
Total current assets |
948,310 | 648,068 | ||||
PROPERTY AND EQUIPMENT, NET |
11,579 | 7,092 | ||||
OTHER ASSETS |
54,112 | 57,011 | ||||
$ | 1,014,001 | $ | 712,171 | |||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||
CURRENT LIABILITIES: |
||||||
Short-term debt |
$ | 737 | $ | 1,100 | ||
Accounts payable |
534,064 | 385,243 | ||||
Customer deposits |
23,776 | 36,476 | ||||
Accrued expenses |
76,979 | 44,166 | ||||
Total current liabilities |
635,556 | 466,985 | ||||
LONG-TERM LIABILITIES |
25,098 | 56,683 | ||||
STOCKHOLDERS EQUITY |
353,347 | 188,503 | ||||
$ | 1,014,001 | $ | 712,171 | |||
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