INT World Fuel Services Corporation

MIAMI, Aug. 9 /PRNewswire-FirstCall/ -- 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 that net income for the second quarter ended June 30, 2006 was $14.5 million, or $0.50 per diluted share, compared to $9.6 million, or $0.40 per diluted share, for the same quarter in the prior year. For the first six months of 2006, the Company reported earnings of $29.5 million, or $1.02 per diluted share, as compared to $16.9 million, or $0.71 per diluted share, for the same period a year ago. The Company's results for the second quarter and six months ended June 30, 2006 included executive severance costs of $1.5 million. The after-tax effect of the severance was $1.0 million, or $0.03 per diluted share, for both periods. "We are very pleased with our earnings for the second quarter of 2006," said Paul Stebbins, Chairman and Chief Executive Officer. "Our global team can be proud of their continued strong performance." Second Quarter and Six Months Financial Highlights Quarter ended June 30, Six Months ended June 30, 2006 2005 2006 2005 (In thousands, except per share data) Revenue $2,856,852 $2,117,749 $5,390,858 $3,892,335 Income from operations $17,036 $12,216 $36,989 $20,939 Net income $14,503 $9,565 $29,480 $16,947 Diluted earnings per share $0.50 $0.40 $1.02 $0.71 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 42 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/. 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. Contact: Allen & Caron Inc World Fuel Services Corporation Michael Mason (Investors) Francis X. Shea, EVP, CRAO & Interim CFO (212) 691-8087 or (305) 428-8000 Len Hall (Media) (949) 474-4300 World Fuel Services Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited - In thousands, except per share data) For the Three Months For the Six Months ended June 30, ended June 30, 2006 2005 2006 2005 Revenue $2,856,852 $2,117,749 $5,390,858 $3,892,335 Cost of sales 2,805,410 2,076,687 5,289,671 3,815,762 Gross profit 51,442 41,062 101,187 76,573 Operating expenses: Compensation and employee benefits 20,476 18,426 39,220 35,160 Executive severance costs 1,545 -- 1,545 -- Provision for bad debts 640 1,604 1,148 4,095 General and administrative 11,745 8,816 22,285 16,379 34,406 28,846 64,198 55,634 Income from operations 17,036 12,216 36,989 20,939 Other income (expense), net 833 (78) 804 (388) Income before income taxes 17,869 12,138 37,793 20,551 Provision for income taxes 3,287 2,207 8,403 3,151 14,582 9,931 29,390 17,400 Minority interest in income (loss) of consolidated subsidiaries 79 366 (90) 453 Net income $14,503 $9,565 $29,480 $16,947 Basic earnings per share $0.53 $0.43 $1.09 $0.76 Basic weighted average shares 27,115 22,448 27,064 22,428 Diluted earnings per share $0.50 $0.40 $1.02 $0.71 Diluted weighted average shares 28,873 23,977 28,780 23,965 World Fuel Services Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited - In thousands) As of June 30, December 31, 2006 2005 Assets: Current assets: Cash and cash equivalents $159,154 $133,284 Short-term investments -- 10,000 Accounts and notes receivable, net 776,359 688,129 Inventories 55,022 35,802 Prepaid expenses and other current assets 97,957 81,095 Total current assets 1,088,492 948,310 Property and equipment, net 18,799 11,579 Goodwill, intangible and other assets 55,245 54,112 Total assets $1,162,536 $1,014,001 Liabilities: Current liabilities: Current maturities of long- term debt $5 $737 Accounts payable 639,578 534,064 Customer deposits 33,819 23,776 Payables related to derivative contracts 39,045 23,637 Accrued expenses and other current liabilities 36,280 53,342 Total current liabilities 748,727 635,556 Long-term liabilities 25,712 25,098 Total liabilities 774,439 660,654 Commitments and contingencies -- -- Stockholders' equity 388,097 353,347 Total liabilities and stockholders' equity $1,162,536 $1,014,001 DATASOURCE: World Fuel Services Corporation CONTACT: Investors, Michael Mason, , +1-212-691-8087, or Media, Len Hall, +1-949-474-4300, , both of Allen & Caron Inc, for World Fuel Services Corporation; or Francis X. Shea, EVP, CRAO & Interim CFO of World Fuel Services Corporation, +1-305-428-8000, Web site: http://www.wfscorp.com/

Copyright