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 second quarter net income of $50.2 million or $0.70 diluted earnings per common share compared to $37.0 million or $0.61 diluted earnings per common share in the second quarter of 2010. Non-GAAP net income for the second quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $57.7 million or $0.81 non-GAAP diluted earnings per common share compared to $40.2 million or $0.66 non-GAAP diluted earnings per common share in the second quarter of 2010.

The company's aviation segment generated gross profit of $82.0 million in the second quarter of 2011, an increase of $11.9 million or 17% sequentially, and an increase of $29.1 million or 55% year-over-year. The marine segment generated gross profit of $50.7 million, an increase of $10.5 million or 26% sequentially, and an increase of $7.5 million or 17% from last year's results. The company's land segment posted gross profit of $32.4 million in the second quarter, an increase of $6.0 million or 23% sequentially, and $20.9 million or 182% year-over-year.

"This quarter’s results demonstrate the durability of our business model in a wide range of operating environments and the importance of having a clear business strategy," said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. "Our investments in people, process and technology, as well as our continued focus on risk management and execution have served us well and we are excited about the prospects for further expansion."

"The record earnings posted this quarter are a testament to our ability to develop the business through both organic and strategic investment initiatives," stated Michael J. Kasbar, president and chief operating officer.

The company also announced today that it has obtained a new $250 million five-year term loan, amended and restated its existing $800 million credit facility and extended the maturity date of the facility to 2016. Combined, these facilities represent $1.05 billion of committed financing.

"Given continued global economic uncertainty, we are very pleased with the issuance of a $250 million five-year term loan which carries an initial rate of approximately 2%, further enhancing our liquidity profile,” stated Ira M. Birns, executive vice president and chief financial officer. “We also amended and restated our credit facility which reduces funding costs, enhances flexibility and extends the maturity date of the facility to July 2016.”

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 aviation, marine 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. 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 For the Six Months ended June 30, June 30, 2011 2010 2011 2010   Revenue $

8,708,709

$

4,397,275

$

15,788,115

$

8,315,296

Cost of revenue   8,543,607     4,289,706     15,486,245     8,108,909     Gross profit   165,102     107,569     301,870     206,387     Operating expenses: Compensation and employee benefits 54,877 38,900 101,946 73,701 Provision for bad debt 3,531 1,696 4,327 2,065 General and administrative   40,591     21,909     73,969     43,432     Total operating expenses   98,999     62,505     180,242     119,198     Income from operations 66,103 45,064 121,628 87,189 Non-operating expenses, net   (4,381 )   (248 )   (7,834 )   (852 )   Income before income taxes 61,722 44,816 113,794 86,337 Provision for income taxes   11,049     7,765     21,464     15,446     Net income including noncontrolling interest 50,673 37,051 92,330 70,891 Net income attributable to noncontrolling interest   470     74     1,018     211     Net income attributable to World Fuel $ 50,203   $ 36,977   $ 91,312   $ 70,680     Basic earnings per share $ 0.71   $ 0.62   $ 1.30   $ 1.19     Basic weighted average common shares   70,856     59,418     70,400     59,371     Diluted earnings per share $ 0.70   $ 0.61   $ 1.28   $ 1.17     Diluted weighted average common shares   71,558     60,685     71,299     60,646       WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)     As of June 30, December 31, 2011 2010   Assets: Current assets: Cash and cash equivalents $ 149,735 $ 272,893 Accounts receivable, net 1,982,962 1,386,700 Inventories 429,206 211,526 Prepaid expenses and other current assets   232,029   196,748     Total current assets 2,793,932 2,067,867   Property and equipment, net 84,651 64,106   Goodwill, identifiable intangible and non-current other assets   483,475   434,477     Total assets $ 3,362,058 $ 2,566,450     Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 15,787 $ 17,076 Accounts payable 1,646,847 1,131,228 Accrued expenses and other current liabilities   218,121   210,180     Total current liabilities 1,880,755 1,358,484   Long-term debt 167,020 24,566 Other long-term liabilities   59,986   56,836   Total liabilities   2,107,761   1,439,886     Equity: World Fuel shareholders' equity 1,243,267 1,127,208 Noncontrolling interest equity (deficit)   11,030   (644 ) Total equity   1,254,297   1,126,564     Total liabilities and equity $ 3,362,058 $ 2,566,450       WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED - IN THOUSANDS)       For the Three Months ended For the Six Months ended June 30, June 30, 2011 2010 2011 2010   Cash flows from operating activities: Net income including noncontrolling interest $ 50,673   $ 37,051   $ 92,330   $ 70,891   Adjustments to reconcile net income including noncontrolling interest to net cash provided by (used in) operating activities: Depreciation and amortization 10,573 4,205 18,740 8,624 Provision for bad debt 3,531 1,696 4,327 2,065 Share-based payment award compensation costs 2,793 2,411 5,658 3,717 Other 7,295 (1,655 ) 7,046 (2,840 ) Changes in assets and liabilities, net of acquisitions   (68,078 )   (36,502 )   (265,800 )   (58,685 ) Total adjustments   (43,886 )   (29,845 )   (230,029 )   (47,119 ) Net cash provided by (used in) operating activities   6,787     7,206     (137,699 )   23,772     Cash flows from investing activities: Acquisition of businesses, net of cash acquired (39,013 ) - (106,013 ) (8,315 )

Capital expenditures

  (4,766 )   (3,262 )   (7,394 )   (4,153 ) Net cash used in investing activities   (43,779 )   (3,262 )   (113,407 )   (12,468 )   Cash flows from financing activities: Borrowings under revolving credit facility, net 98,000 - 138,000 - Other   (5,120 )   (9,314 )   (11,682 )   (11,411 ) Net cash provided by (used in) financing activities   92,880     (9,314 )   126,318     (11,411 )   Effect of exchange rate changes on cash and cash equivalents   473     (324 )   1,630     (1,350 )   Net increase (decrease) in cash and cash equivalents 56,361 (5,694 ) (123,158 ) (1,457 )   Cash and cash equivalents, at beginning of period   93,374     303,080     272,893     298,843     Cash and cash equivalents, at end of period $ 149,735   $ 297,386   $ 149,735   $ 297,386       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 Six Months ended June 30, June 30, 2011 2010 2011 2010   GAAP net income attributable to World Fuel $ 50,203 $ 36,977 $ 91,312 $ 70,680 Share-based compensation expense, net of taxes 1,879 1,741 3,888 2,744 Intangible asset amortization expense, net of taxes   5,571   1,447   9,233   2,941 Non-GAAP net income attributable to World Fuel $ 57,653 $ 40,165 $ 104,433 $ 76,365   GAAP diluted earnings per share $ 0.70 $ 0.61 $ 1.28 $ 1.17 Share-based compensation expense, net of taxes 0.03 0.03 0.05 0.05 Intangible asset amortization expense, net of taxes   0.08   0.02   0.13   0.05 Non-GAAP diluted earnings per share $ 0.81 $ 0.66 $ 1.46 $ 1.27     WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (UNAUDITED - IN THOUSANDS)           For the Three Months ended For the Six Months ended June 30, June 30, 2011 2010 2011 2010 Revenue: Aviation segment $ 3,364,829 $ 1,691,042 $ 6,011,421 $ 3,150,766 Marine segment 3,532,983 2,276,651 6,532,402 4,375,263 Land segment   1,810,897   429,582   3,244,292   789,267 $ 8,708,709 $ 4,397,275 $ 15,788,115 $ 8,315,296   Gross profit: Aviation segment $ 82,027 $ 52,887 $ 152,155 $ 101,262 Marine segment 50,674 43,204 90,889 82,593 Land segment   32,401   11,478   58,826   22,532 $ 165,102 $ 107,569 $ 301,870 $ 206,387   Income from operations: Aviation segment $ 37,624 $ 28,701 $ 75,794 $ 55,395 Marine segment 25,763 23,972 43,118 43,980 Land segment   14,026   1,780   24,689   4,128 77,413 54,453 143,601 103,503 Corporate overhead   11,310   9,389   21,973   16,314 $ 66,103 $ 45,064 $ 121,628 $ 87,189