World Fuel Services Reports Strong First-Quarter Results
MIAMI, May 1 -- World Fuel Services Corporation , a global leader in the marketing and financing of aviation and marine fuel products and related services, today reported that net income for the first quarter ended March 31, 2003, rose 18 percent to $5.3 million, or $0.48 per diluted share, as compared to $4.5 million, or $0.42 per diluted share, for the same quarter the prior year.
Revenue for the first quarter ended March 31, 2003, was $658.0 million, versus $351.3 million in the same quarter of the prior year, reflecting significant increases in business volumes in the aviation segment and higher fuel prices for both the marine and aviation segments.
"We are very pleased with these results, which validate our business model and demonstrate strong performance in a difficult operating environment," said Paul Stebbins, Chairman and Chief Executive Officer. "Our team has done a great job and we are right on track for a good year."
FIRST QUARTER FINANCIAL HIGHLIGHTS
Quarter Ended
($ in thousands) 3/31/03 3/31/02
Revenue $658,000 $351,284
Income from Operations $6,918 $6,383
Net Income $5,268 $4,473
Diluted earnings per share $0.48 $0.42
About World Fuel Services Corporation
Headquartered in Miami, FL, World Fuel Services Corporation is a global leader in the downstream marketing and financing of aviation and marine fuel products and related services. As the marketer of choice in the aviation and shipping industries, World Fuel Services provides fuel and services at more than 1,100 airports and seaports worldwide. With 30 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' aviation customers include commercial, passenger and cargo operators as well as corporate clientele. The Company's marine customers include premier blue-chip companies from all segments of the market. For more information, call (305) 428-8000 or visit www.worldfuel.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.
For further information, please contact Investors, Michael Mason, +1-212-691-8087, michaelm@allencaron.com , or Media, Len Hall, +1-949-474-4300, len@allencaron.com , both of Allen & Caron, for World Fuel Services Corporation; or Francis X. Shea, CFO & EVP of World Fuel Services Corporation, +1-305-428-8000, fshea@wfscorp.com .
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
March 31, December 31,
2003 2002
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $49,800 $57,776
Accounts and notes receivable, net 182,913 177,360
Inventories 14,350 5,144
Prepaid expenses and other current assets 23,440 22,300
Total current assets 270,503 262,580
PROPERTY AND EQUIPMENT, NET 7,333 6,874
OTHER ASSETS:
Goodwill, net 34,003 34,003
Intangible assets, net 1,380 1,472
Other 7,620 7,358
$320,839 $312,287
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $2,439 $2,527
Accounts payable 96,211 97,560
Accrued expenses 53,339 66,012
Other current liabilities 16,400 14,260
Total current liabilities 168,389 180,359
LONG-TERM LIABILITIES 19,933 4,198
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY 132,517 127,730
$320,839 $312,287
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
2003 2002
Revenue $658,000 $351,284
Cost of sales (630,689) (330,138)
Gross profit 27,311 21,146
Operating expenses:
Salaries and wages (10,098) (8,070)
Provision for bad debts (2,701) (684)
Other (7,594) (6,009)
(20,393) (14,763)
Income from operations 6,918 6,383
Other (expense) income, net (253) 104
Income before income taxes 6,665 6,487
Provision for income taxes (1,397) (2,014)
Net income $5,268 $4,473
Basic earnings per share $0.50 $0.43
Weighted average shares - basic 10,584 10,391
Diluted earnings per share $0.48 $0.42
Weighted average shares - diluted 11,034 10,776