World Fuel Services Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Earnings Guidance for the Third Quarter and Effective Tax Rate Guidance for the Full Year of 2018
July 26, 2018 at 09:16 pm
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World Fuel Services Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net income attributable to the company of $28.7 million or $0.42 per diluted share on revenue of $10,150.8 million compared to net income attributable to the company of $30.0 million or $0.44 per diluted share on revenue of $8,086.2 million reported in the same period last year. Adjusted net income attributable to the company was $31.7 million or $0.47 per diluted share against $34.2 million or $0.50 per diluted share reported last year. Net cash provided by operating activities was $0.3 million against net cash used in operating activities of $64.7 million reported last year. This reflects the impact of a change in classification of $121.8 million of cash proceeds received from the beneficial interest in receivables sold from cash flow from operating activities to cash flow from investing activities due to a recently adopted accounting standard. Income from operations was $61.1 million against $51.2 million reported last year. Income before income taxes was $41.6 million against $34.9 million reported last year. Capital expenditures were $13.4 million against $21.4 million reported last year. Adjusted EBITDA was $84.2 million against $77.7 million reported last year. Revenue was up $2 billion or 26% compared to the second quarter of 2017. Again, this was principally due to the significant increase in fuel prices compared to the second quarter of last year.
For the six months, the company reported net income attributable to the company of $59.9 million or $0.88 per diluted share on revenue of $19,332.2 million compared to net income attributable to the company of $61.4 million or $0.89 per diluted share on revenue of $16,280.4 million reported in the same period last year. Adjusted net income attributable to the company was $66.7 million or $0.98 per diluted share against $68.8 million or $1.00 per diluted share reported last year. Net cash used in operating activities was $228.6 million against $0.6 million reported last year. Income from operations was $118.3 million against $101.6 million reported last year. Income before income taxes was $80.2 million against $70.9 million reported last year. Capital expenditures were $28.9 million against $31.5 million reported last year. Adjusted EBITDA was $165.1 million against $154.8 million reported last year.
For the third quarter, the company expects operating expenses, excluding bad debt and nonoperational items, to be in a range of $176 million to $180 million, down slightly on a sequential basis. Interest expense should be in a range of $17 million to $19 million for the third quarter.
The company's second quarter effective tax rate was higher than expected going into the quarter. And the company have therefore adjusted forecasted rate for the full year to be in the mid-to-upper 20s. The company continues to focus on opportunities which will allow to bring effective tax rate down over time.
World Kinect Corporation is a global energy management company. The Company is engaged in offering fulfillment and related services across the aviation, marine, and land-based transportation sectors. It also supplies natural gas and power in the United States and Europe along with a suite of other sustainability-related products and services. Its segments include Aviation, Land and Marine. Its Aviation segment provides aviation-related service offerings, which include fuel management, price risk management, ground handling, 24/7 global dispatch services, and trip planning services, including flight planning and scheduling, weather reports and overflight permits. Its Land segment offers fuel, lubricants, heating oil, and related products and services to commercial, industrial, residential and government customers, as well as retail petroleum operators. Its Marine segment markets fuel, lubricants, and related products and services to a base of marine customers.
World Fuel Services Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Earnings Guidance for the Third Quarter and Effective Tax Rate Guidance for the Full Year of 2018