Form 8-K

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)

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 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-

Press Release

Exhibit 99.1

LOGO

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 Company’s 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 Company’s 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 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 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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