INT World Fuel Services Corporation

World Fuel Services Corporation (NYSE: INT), a leading fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services, today reported first quarter net income of $41.1 million or $0.58 diluted earnings per share compared to $33.7 million or $0.56 diluted earnings per share in the first quarter of 2010. Non-GAAP net income for the first quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $46.8 million or $0.66 non-GAAP diluted earnings per share compared to $36.2 million or $0.60 non-GAAP diluted earnings per share in the first quarter of 2010.

The company’s aviation segment generated gross profit of $70.1 million in the first quarter of 2011, an increase of $12.1 million or 21% sequentially, and an increase of $21.8 million or 45% year-over-year. The marine segment generated gross profit of $40.2 million, a decrease of $1.3 million or 3% sequentially, but an increase of $800 thousand or 2% from last year’s results. The company’s land segment posted gross profit of $26.4 million in the first quarter, an increase of $2.4 million or 10% sequentially, and $15.4 million or 139% year-over-year.

“During the quarter, we continued to demonstrate our ability to leverage our risk management disciplines, while profitably growing the business,” said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. “We are pleased with our strong results in what continues to be a very challenging operating environment.”

“We closed and integrated the NCS acquisition during the quarter, which will allow us to leverage our existing business activities in the fuel logistics marketplace,” stated Michael J. Kasbar, president and chief operating officer. “We have also recently completed the acquisition of Ascent, which combined with the other recent acquisitions and core business, strengthens our leadership position in the general and business aviation space.”

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 delivers services to its clients at more than 6,000 locations in 200 countries and territories, including airports, seaports, tanker truck loading terminals and other customer storage locations. With 48 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. Aviation customers include commercial airlines, cargo carriers, private aircraft and fixed base operators (FBO’s), as well as the United States and foreign governments. 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. 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 March 31, 2011 2010   Revenue $ 7,079,406 $ 3,918,021 Cost of revenue   6,942,638     3,819,203     Gross profit   136,768     98,818     Operating expenses: Compensation and employee benefits 47,069 34,801 Provision for bad debt 796 369 General and administrative   33,378     21,523     Total operating expenses   81,243     56,693     Income from operations 55,525 42,125 Non-operating expenses, net   (3,453 )   (604 )   Income before income taxes 52,072 41,521 Provision for income taxes   10,415     7,681     Net income including noncontrolling interest 41,657 33,840 Net income attributable to noncontrolling interest   548     137     Net income attributable to World Fuel $ 41,109   $ 33,703     Basic earnings per share $ 0.59   $ 0.57     Basic weighted average common shares   69,970     59,324     Diluted earnings per share $ 0.58   $ 0.56     Diluted weighted average common shares   70,982     60,601     WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)           As of March 31, December 31, 2011 2010   Assets: Current assets: Cash and cash equivalents $ 93,374 $ 272,893 Accounts receivable, net 1,892,307 1,386,700 Inventories 312,379 211,526 Prepaid expenses and other current assets   213,226   196,748     Total current assets 2,511,286 2,067,867   Property and equipment, net 64,899 64,106   Goodwill, identifiable intangible and non-current other assets   461,598   434,477     Total assets $ 3,037,783 $ 2,566,450     Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 17,401 $ 17,076 Accounts payable 1,488,592 1,131,228 Accrued expenses and other current liabilities   213,103   210,180     Total current liabilities 1,719,096 1,358,484   Long-term debt 64,133 24,566 Other long-term liabilities   59,787   56,836   Total liabilities   1,843,016   1,439,886     Equity: World Fuel shareholders' equity 1,194,084 1,127,208 Noncontrolling interest equity (deficit)   683   (644 ) Total equity   1,194,767   1,126,564     Total liabilities and equity $ 3,037,783 $ 2,566,450     WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED - IN THOUSANDS)               For the Three Months ended March 31, 2011 2010   Cash flows from operating activities: Net income including noncontrolling interest $ 41,657   $ 33,840   Adjustments to reconcile net income including noncontrolling interest to net cash (used in) provided by operating activities: Depreciation and amortization 8,167 4,419 Provision for bad debt 796 369 Share-based payment award compensation costs 2,865 1,306 Other (249 ) (1,185 ) Changes in assets and liabilities, net of acquisitions   (197,722 )   (22,183 ) Total adjustments   (186,143 )   (17,274 ) Net cash (used in) provided by operating activities   (144,486 )   16,566     Cash flows from investing activities: Acquisition of businesses, net of cash acquired (67,000 ) (8,315 ) Other   (2,628 )   (891 ) Net cash used in investing activities   (69,628 )   (9,206 )   Cash flows from financing activities: Borrowings under revolving credit facility, net 40,000 - Other   (6,562 )   (2,097 ) Net cash provided by (used in) financing activities   33,438     (2,097 )   Effect of exchange rate changes on cash and cash equivalents   1,157     (1,026 )   Net (decrease) increase in cash and cash equivalents (179,519 ) 4,237   Cash and cash equivalents, at beginning of period   272,893     298,843     Cash and cash equivalents, at end of period $ 93,374   $ 303,080     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 March 31, 2011 2010   GAAP net income attributable to World Fuel $ 41,109 $ 33,703 Share-based compensation expense, net of taxes 2,009 1,003 Intangible asset amortization expense, net of taxes   3,662   1,494 Non-GAAP net income attributable to World Fuel $ 46,780 $ 36,200   GAAP diluted earnings per share $ 0.58 $ 0.56 Share-based compensation expense, net of taxes 0.03 0.02 Intangible asset amortization expense, net of taxes   0.05   0.02 Non-GAAP diluted earnings per share $ 0.66 $ 0.60   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (UNAUDITED - IN THOUSANDS)           For the Three Months ended March 31, 2011 2010 Revenue: Aviation segment $ 2,646,592 $ 1,459,724 Marine segment 2,999,419 2,098,612 Land segment   1,433,395   359,685 $ 7,079,406 $ 3,918,021   Gross profit: Aviation segment $ 70,128 $ 48,375 Marine segment 40,215 39,389 Land segment   26,425   11,054 $ 136,768 $ 98,818   Income from operations: Aviation segment $ 38,170 $ 26,694 Marine segment 17,355 20,007 Land segment   10,663   2,348 66,188 49,049 Corporate overhead   10,663   6,924 $ 55,525 $ 42,125