INT World Fuel Services Corporation

World Fuel Services Corporation (NYSE:INT), a leading global fuel logistics company, today reported fourth quarter net income of $39.4 million or $0.56 diluted earnings per share compared to $34.5 million or $0.57 diluted earnings per share in the fourth quarter of 2009. Non-GAAP net income and diluted earnings per share for the fourth quarter, which exclude share-based compensation and amortization of acquired intangible assets, were $44.1 million and $0.63, respectively, compared to $37.5 million or $0.61 in the fourth quarter of 2009. The impact of the additional outstanding shares associated with the company’s recent equity offering on GAAP and non-GAAP diluted earnings per share was approximately $0.08 in the fourth quarter of 2010.

The company’s aviation segment generated gross profit of $58.0 million in the fourth quarter of 2010, an increase of $2.2 million or 4% sequentially and $9.0 million or 18% year-over-year. The marine segment generated gross profit of $41.6 million, an increase of approximately $0.3 million or 1% both sequentially and year-over-year. The company’s land segment posted gross profit of $24.1 million, an increase of $9.0 million or 59% sequentially and $12.4 million or 107% year-over-year.

“Disciplined risk management, strategic focus and strong cross-functional execution drove record results in 2010,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. “On every level it was a transformational year for World Fuel and, heading into 2011, we look to continue capitalizing on an expanding set of opportunities in the markets we serve.”

“Our team performed extremely well in 2010, integrating new businesses and driving growth,” stated Michael J. Kasbar, president and chief operating officer. “We continued to invest both organically and through strategic investments, further strengthening our platform for growth,” added Kasbar.

For the full year, net income was $146.9 million or $2.31 diluted earnings per share compared to $117.1 million or $1.96 diluted earnings per share in 2009. Non-GAAP net income was $160.7 million or $2.53 non-GAAP diluted earnings per share compared to $127.9 million or $2.13 non-GAAP diluted earnings per share in 2009.

“In addition to posting record earnings in 2010, we completed several strategic acquisitions, enhanced our already strong liquidity position, and again delivered above average returns to our shareholders,” stated Ira M. Birns, executive vice president and chief financial officer.

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 diluted 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, 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 aviation, marine and land fuel products and related services on a worldwide basis. World Fuel Services sells fuel and provides 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 47 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 aviation, marine 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 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 Year ended December 31, December 31, 2010   2009 2010   2009     Revenue $ 5,828,777 $ 3,545,241 $ 19,131,147 $ 11,295,177 Cost of revenue   5,705,130     3,443,285     18,689,006     10,919,586     Gross profit   123,647     101,956     442,141     375,591     Operating expenses: Compensation and employee benefits 45,702 36,177 162,451 137,408 Provision for bad debt 1,100 1,856 4,262 4,552 General and administrative   28,255     20,033     94,562     79,636     Total operating expenses   75,057     58,066     261,275     221,596     Income from operations 48,590 43,890 180,866 153,995 Non-operating expenses, net   (1,286 )   (830 )   (3,336 )   (4,086 )   Income before income taxes 47,304 43,060 177,530 149,909 Provision for income taxes   8,066     8,356     31,027     32,346     Net income including noncontrolling interest 39,238 34,704 146,503 117,563 Net (loss) income attributable to noncontrolling interest   (192 )   209     (362 )   424     Net income attributable to World Fuel $ 39,430   $ 34,495   $ 146,865   $ 117,139     Basic earnings per share $ 0.57   $ 0.58   $ 2.36   $ 1.99     Basic weighted average common shares   69,192     59,298     62,168     59,003     Diluted earnings per share $ 0.56   $ 0.57   $ 2.31   $ 1.96     Diluted weighted average common shares   70,565     60,534     63,441     59,901     WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)           As of December 31,   December 31, 2010 2009   Assets: Current assets: Cash and cash equivalents $ 272,893 $ 298,843 Short-term investments - 8,100 Accounts receivable, net 1,386,700 951,398 Inventories 211,526 126,793 Prepaid expenses and other current assets   196,748     82,813   Total current assets 2,067,867 1,467,947   Property and equipment, net 64,106 38,777   Goodwill, identifiable intangible and non-current other assets   434,477     241,271   Total assets $ 2,566,450   $ 1,747,995   Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 17,076 $ 6,684 Accounts payable 1,131,228 796,978 Accrued expenses and other current liabilities   210,180     148,049   Total current liabilities 1,358,484 951,711   Long-term debt 24,566 9,925 Other long-term liabilities   56,836     53,110 Total liabilities   1,439,886     1,014,746   Equity: World Fuel shareholders' equity 1,127,208 733,021 Noncontrolling interest (deficit) equity   (644 )   228 Total equity   1,126,564     733,249   Total liabilities and equity $ 2,566,450   $ 1,747,995   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED - IN THOUSANDS)               For the Three Months ended   For the Year ended December 31, December 31, 2010   2009 2010   2009   Cash flows from operating activities: Net income including noncontrolling interest $ 39,238   $ 34,704   $ 146,503   $ 117,563   Adjustments to reconcile net income including noncontrolling interest to net cash (used in) provided by operating activities: Depreciation and amortization 6,013 3,829 19,106 16,956 Provision for bad debt 1,100 1,856 4,262 4,552 Share-based payment award compensation costs 2,351 1,726 8,789 6,480 Other (5,668 ) 2,790 (8,969 ) 7,808 Changes in assets and liabilities, net of acquisitions   (45,760 )   (84,139 )   (205,389 )   (75,438 ) Total adjustments   (41,964 )   (73,938 )   (182,201 )   (39,642 ) Net cash (used in) provided by operating activities   (2,726 )   (39,234 )   (35,698 )   77,921     Cash flows from investing activities: Acquisition of businesses, net of cash acquired (131,792 ) - (177,807 ) (51,982 ) Other   (4,585 )   (4,612 )   (2,485 )   (9,846 ) Net cash used in investing activities   (136,377 )   (4,612 )   (180,292 )   (61,828 )   Cash flows from financing activities: Proceeds from sale of equity shares, net of expenses - - 218,816 - Other   (12,822 )   (6,257 )   (28,865 )   (34,436 ) Net cash (used in) provided by financing activities   (12,822 )   (6,257 )   189,951     (34,436 )   Effect of exchange rate changes on cash and cash equivalents   (51 )   442     89     2,834     Net decrease in cash and cash equivalents (151,976 ) (49,661 ) (25,950 ) (15,509 )   Cash and cash equivalents, at beginning of period   424,869     348,504     298,843     314,352     Cash and cash equivalents, at end of period $ 272,893   $ 298,843   $ 272,893   $ 298,843     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 Year ended December 31, December 31, 2010   2009 2010   2009   Non-GAAP financial measures and reconciliation:   GAAP net income attributable to World Fuel $ 39,430 $ 34,495 $ 146,865 $ 117,139 Share-based compensation expense, net of taxes 2,507 1,485 7,111 4,729 Intangible asset amortization expense, net of taxes   2,157   1,499   6,739   5,986 Non-GAAP net income attributable to World Fuel $ 44,094 $ 37,479 $ 160,715 $ 127,854   GAAP diluted earnings per share $ 0.56 $ 0.57 $ 2.31 $ 1.96 Share-based compensation expense, net of taxes 0.04 0.02 0.11 0.07 Intangible asset amortization expense, net of taxes   0.03   0.02   0.11   0.10 Non-GAAP diluted earnings per share $ 0.63 $ 0.61 $ 2.53 $ 2.13   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (UNAUDITED - IN THOUSANDS)           For the Three Months ended   For the Year ended December 31, December 31, 2010   2009 2010   2009 Revenue: Aviation segment $ 2,124,829 $ 1,352,779 $ 7,132,749 $ 4,049,565 Marine segment 2,489,642 1,850,133 9,220,998 6,040,643 Land segment   1,214,306   342,329   2,777,400   1,204,969 $ 5,828,777 $ 3,545,241 $ 19,131,147 $ 11,295,177   Gross profit: Aviation segment $ 58,039 $ 49,073 $ 215,130 $ 163,730 Marine segment 41,557 41,261 165,344 168,890 Land segment   24,051   11,622   61,667   42,971 $ 123,647 $ 101,956 $ 442,141 $ 375,591   Income from operations: Aviation segment $ 31,392 $ 24,859 $ 118,351 $ 75,462 Marine segment 20,009 23,597 84,656 97,636 Land segment   8,586   3,063   15,948   10,778 59,987 51,519 218,955 183,876 Corporate overhead   11,397   7,629   38,089   29,881 $ 48,590 $ 43,890 $ 180,866 $ 153,995