INT World Fuel Services Corporation

World Fuel Services Corporation (NYSE: INT) today reported third quarter net income of $36.8 million or $0.60 diluted earnings per share compared to $29.1 million or $0.48 diluted earnings per share in the third quarter of 2009. Non-GAAP net income for the third quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $40.3 million or $0.66 non-GAAP diluted earnings per share compared to $31.4 million or $0.52 non-GAAP diluted earnings per share in the third quarter of 2009.

The company’s aviation segment generated gross profit of $55.8 million in the third quarter of 2010, an increase of $2.9 million or 6% sequentially, and an increase of $12.9 million or 30% year-over-year. The marine segment generated gross profit of $41.2 million, a decrease of $2 million or 5% sequentially, but an increase of $1 million or 3% from last year’s results. The company’s land segment posted gross profit of $15.1 million in the third quarter, increases of $3.6 million or 31% sequentially, and $3.4 million or 30% year-over-year.

“We again generated solid results, which reflects our ability to continue to execute well despite a persistently challenging global economic environment,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. “Our recent investments demonstrate our continued commitment to strategic growth, which we believe will benefit our customers, suppliers and shareholders.”

“During the quarter, we closed and integrated the Lakeside acquisition, which was immediately accretive to our results,” stated Michael J. Kasbar, president and chief operating officer. “We have also recently completed the acquisition of Western Petroleum, which expands our product offerings in the unbranded wholesale land and general aviation distribution markets, increasing our current annual run-rate of land volume to two billion gallons.”

“As a result of our recently completed equity offering and bank facility expansion, we now have over $1 billion of available liquidity,” stated Ira M. Birns, executive vice president and chief financial officer. “This leaves us financially well positioned to continue to support our ongoing growth strategies.”

Non-GAAP Financial Measures

This press release includes selected financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). This information includes non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP financial measures exclude costs associated with share-based compensation and amortization of acquired intangible assets, primarily because we do not believe they are reflective of the company’s core operating results. We believe that these non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful for investors to evaluate our core operating results and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, our presentation of non-GAAP net income and non-GAAP earnings per share may not be comparable to the presentation of such metrics by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

Information Relating to 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 creditworthiness of customers and counterparties and our ability to collect accounts receivable and settle derivatives contracts, fluctuations in world oil prices or foreign currency, changes in political, economic, regulatory, or environmental conditions, adverse conditions in the markets or industries in which we or our customers operate, our failure to effectively hedge certain financial risks associated with the use of derivatives, non-performance by counterparties or customers on derivatives contracts, the integration of acquired businesses, uninsured losses, our ability to retain and attract senior management and other key employees 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.

About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services is a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of marine, aviation and land fuel products and related services on a worldwide basis. World Fuel Services sells fuel and delivers services to its clients at more than 6,000 locations in 200 countries, including airports, seaports, tanker truck loading terminals and other customer storage locations. With 44 strategically located global offices, World Fuel Services offers its clients 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, cruise lines and time-charter operators, as well as the United States and foreign governments. Aviation customers include commercial airlines, cargo carriers and private aircraft, as well as the United States and foreign governments. Land customers include petroleum distributors, retail petroleum operators, and industrial, commercial and government accounts. For more information, call (305) 428-8000 or visit http://www.wfscorp.com.

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)             For the Three Months ended For the Nine Months ended September 30, September 30, 2010   2009 2010 2009     Revenue $ 4,987,074 $ 3,202,653 $ 13,302,370 $ 7,749,936 Cost of revenue   4,874,967     3,107,921   12,983,876     7,476,301   Gross profit   112,107     94,732   318,494     273,635   Operating expenses: Compensation and employee benefits 43,048 32,359 116,749 101,231 Provision for bad debt 1,097 1,774 3,162 2,696 General and administrative   22,875     19,726   66,307     59,603   Total operating expenses   67,020     53,859   186,218     163,530   Income from operations 45,087 40,873 132,276 110,105 Non-operating expenses, net   1,198     1,339   2,050     3,256   Income before income taxes 43,889 39,534 130,226 106,849 Provision for income taxes   7,515     10,437   22,961     23,990   Net income including noncontrolling interest 36,374 29,097 107,265 82,859

Net (loss) income attributable to noncontrolling interest

  (381 )   25   (170 )   215   Net income attributable to World Fuel $ 36,755   $ 29,072 $ 107,435   $ 82,644   Basic earnings per share $ 0.61   $ 0.49 $ 1.80   $ 1.40   Basic weighted average common shares   60,496     59,156   59,768     58,866   Diluted earnings per share $ 0.60   $ 0.48 $ 1.76   $ 1.39   Diluted weighted average common shares   61,663     60,162   60,985     59,532   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)         As of September 30, December 31, 2010 2009   Assets: Current assets: Cash and cash equivalents $ 424,869 $ 298,843 Short-term investments - 8,100 Accounts receivable, net 1,163,383 951,398 Inventories 219,908 126,793 Short-term derivative assets, net 10,078 11,853 Prepaid expenses and other current assets   110,778   66,991   Total current assets 1,929,016 1,463,978   Property and equipment, net 52,516 38,777   Goodwill, identifiable intangible and other assets   287,483   238,473   Total assets $ 2,269,015 $ 1,741,228   Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 8,822 $ 6,684 Accounts payable 980,171 796,978 Short-term derivative liabilities, net 7,875 9,133 Customer deposits 51,419 63,967 Accrued expenses and other current liabilities   95,752   70,980   Total current liabilities 1,144,039 947,742   Long-term debt 8,348 9,925 Other long-term liabilities   52,194   50,312 Total liabilities   1,204,581   1,007,979   Equity: World Fuel shareholders' equity 1,064,376 733,021 Noncontrolling interest equity   58   228 Total equity   1,064,434   733,249   Total liabilities and equity $ 2,269,015 $ 1,741,228   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED - IN THOUSANDS)                 For the Three Months ended For the Nine Months ended September 30, September 30, 2010 2009 2010 2009   Cash flows from operating activities: Net income including noncontrolling interest $ 36,374   $ 29,097   $ 107,265   $ 82,859   Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: Depreciation and amortization 4,469 4,987 13,093 13,127 Provision for bad debt 1,097 1,774 3,162 2,696 Share-based payment award compensation costs 2,721 869 6,438 4,754 Other (461 ) 1,501 (3,301 ) 5,018 Changes in assets and liabilities, net of acquisitions   (100,944 )   (42,058 )   (159,629 )   8,701   Total adjustments   (93,118 )   (32,927 )   (140,237 )   34,296  

Net cash (used in) provided by operating activities

  (56,744 )   (3,830 )   (32,972 )   117,155     Cash flows from investing activities: Acquisition of businesses, net of cash acquired (37,700 ) - (46,015 ) (51,982 ) Other   6,253     3,256     2,100     (5,234 )

Net cash (used in) provided by investing activities

  (31,447 )   3,256     (43,915 )   (57,216 )   Cash flows from financing activities: Proceeds from sale of equity shares, net of

expenses

218,816 - 218,816 - Other   (4,632 )   (5,296 )   (16,043 )   (28,179 )

Net cash provided by (used in) financing activities

  214,184     (5,296 )   202,773     (28,179 )   Effect of exchange rate changes on cash and cash equivalents   1,490     1,563     140     2,392     Net increase (decrease) in cash and cash equivalents 127,483 (4,307 ) 126,026 34,152   Cash and cash equivalents, beginning of period   297,386     352,811     298,843     314,352     Cash and cash equivalents, end of period $ 424,869   $ 348,504   $ 424,869   $ 348,504   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)             For the Three Months ended For the Nine Months ended September 30, September 30, 2010 2009 2010 2009   Non-GAAP financial measures and reconciliation:   GAAP net income attributable to World Fuel $ 36,755 $ 29,072 $ 107,435 $ 82,644 Share-based compensation expense, net of taxes 1,860 718 4,604 3,244 Intangible asset amortization expense, net of taxes   1,641   1,630   4,582   4,487 Non-GAAP net income attributable to World Fuel $ 40,256 $ 31,420 $ 116,621 $ 90,375   GAAP diluted earnings per share $ 0.60 $ 0.48 $ 1.76 $ 1.39 Share-based compensation expense, net of taxes 0.03 0.01 0.08 0.05 Intangible asset amortization expense, net of taxes   0.03   0.03   0.08   0.08 Non-GAAP diluted earnings per share $ 0.66 $ 0.52 $ 1.92 $ 1.52   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (UNAUDITED - IN THOUSANDS)             For the Three Months ended For the Nine Months ended September 30, September 30, 2010 2009 2010 2009 Revenue: Marine segment $ 2,356,093 $ 1,706,151 $ 6,731,356 $ 4,190,510 Aviation segment 1,857,154 1,154,206 5,007,920 2,696,786 Land segment   773,827     342,296     1,563,094     862,640   $ 4,987,074   $ 3,202,653   $ 13,302,370   $ 7,749,936     Gross profit: Marine segment $ 41,194 $ 40,190 $ 123,787 $ 127,629 Aviation segment 55,829 42,892 157,091 114,657 Land segment   15,084     11,650     37,616     31,349   $ 112,107   $ 94,732   $ 318,494   $ 273,635     Income from operations: Marine segment $ 20,667 $ 22,058 $ 64,647 $ 74,039 Aviation segment 31,564 21,204 86,959 50,603 Land segment   3,234     2,743     7,362     7,715   55,465 46,005 158,968 132,357 Corporate overhead   (10,378 )   (5,132 )   (26,692 )   (22,252 ) $ 45,087   $ 40,873   $ 132,276   $ 110,105