INT World Fuel Services Corporation

World Fuel Services Corporation (NYSE: INT), a leading global fuel logistics company, principally engaged in the marketing, sale and distribution of aviation, marine and land fuel products and related services, today reported third quarter net income of $52.7 million or $0.74 diluted earnings per common share compared to $36.8 million or $0.60 diluted earnings per common share in the third quarter of 2010. Non-GAAP net income for the third quarter, which excludes share-based compensation and amortization of acquired intangible assets, was $59.3 million or $0.83 non-GAAP diluted earnings per common share compared to $40.3 million or $0.66 non-GAAP diluted earnings per common share in the third quarter of 2010.

The company's aviation segment generated gross profit of $84.0 million in the third quarter of 2011, an increase of $1.9 million or 2% sequentially, and an increase of $28.1 million or 50% year-over-year. The marine segment generated gross profit of $50.0 million, a decrease of $600 thousand or 1% sequentially, but an increase of $8.9 million or 22% from last year's results. The company's land segment posted gross profit of $36.8 million in the third quarter, an increase of $4.4 million or 14% sequentially, and $21.7 million or 144% year-over-year.

"Everything came together this quarter to produce a record result," said Paul H. Stebbins, chairman and chief executive officer of World Fuel Services Corporation. "The continued success of our business model is anchored in strategic focus, commercial agility and tight execution."

"Positive market dynamics in the aviation segment, solid risk management in marine and emerging logistics opportunities in the land segment all led to the exceptional results we posted this quarter," stated Michael J. Kasbar, president and chief operating 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 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 Nine Months ended September 30, September 30, 2011 2010 2011 2010   Revenue $ 9,510,792 $ 4,987,074 $ 25,298,907 $ 13,302,370 Cost of revenue   9,339,945     4,874,967     24,826,190     12,983,876     Gross profit   170,847     112,107     472,717     318,494     Operating expenses: Compensation and employee benefits 57,215 43,048 159,161 116,749 Provision for bad debt 2,422 1,097 6,749 3,162 General and administrative   40,285     22,875     114,254     66,307     Total operating expenses   99,922     67,020     280,164     186,218     Income from operations 70,925 45,087 192,553 132,276 Non-operating expenses, net   (6,434 )   (1,198 )   (14,268 )   (2,050 )   Income before income taxes 64,491 43,889 178,285 130,226 Provision for income taxes   10,649     7,515     32,113     22,961     Net income including noncontrolling interest 53,842 36,374 146,172 107,265 Net income (loss) attributable to noncontrolling interest   1,187     (381 )   2,205     (170 )   Net income attributable to World Fuel $ 52,655   $ 36,755   $ 143,967   $ 107,435     Basic earnings per share $ 0.74   $ 0.61   $ 2.04   $ 1.80     Basic weighted average common shares   70,939     60,496     70,593     59,768     Diluted earnings per share $ 0.74   $ 0.60   $ 2.02   $ 1.76     Diluted weighted average common shares   71,587     61,663     71,415     60,985       WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)     As of September 30, December 31, 2011 2010   Assets: Current assets: Cash and cash equivalents $ 151,854 $ 272,893 Accounts receivable, net 2,166,712 1,386,700 Inventories 427,497 211,526 Prepaid expenses and other current assets   294,103   196,748     Total current assets 3,040,166 2,067,867   Property and equipment, net 89,492 64,106   Goodwill, identifiable intangible and non-current other assets   487,238   434,477     Total assets $ 3,616,896 $ 2,566,450     Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 18,265 $ 17,076 Accounts payable 1,707,705 1,131,228 Accrued expenses and other current liabilities   263,572   210,180     Total current liabilities 1,989,542 1,358,484   Long-term debt 274,495 24,566 Other long-term liabilities   56,970   56,836   Total liabilities   2,321,007   1,439,886     Equity: World Fuel shareholders' equity 1,284,022 1,127,208 Noncontrolling interest equity (deficit)   11,867   (644 ) Total equity   1,295,889   1,126,564     Total liabilities and equity $ 3,616,896 $ 2,566,450       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, 2011 2010 2011 2010   Cash flows from operating activities: Net income including noncontrolling interest $ 53,842   $ 36,374   $ 146,172   $ 107,265   Adjustments to reconcile net income including noncontrolling interest to net cash used in operating activities: Depreciation and amortization 10,371 4,469 29,111 13,093 Provision for bad debt 2,422 1,097 6,749 3,162 Share-based payment award compensation costs 2,541 2,721 8,199 6,438 Other (3,994 ) (461 ) 3,052 (3,301 ) Changes in assets and liabilities, net of acquisitions   (144,346 )   (100,944 )   (410,146 )   (159,629 ) Total adjustments   (133,006 )   (93,118 )   (363,035 )   (140,237 ) Net cash used in operating activities   (79,164 )   (56,744 )   (216,863 )   (32,972 )   Cash flows from investing activities: Acquisition of businesses, net of cash acquired (6,302 ) (37,700 ) (112,315 ) (46,015 ) Capital expenditures (8,413 ) (3,747 ) (15,807 ) (7,900 ) Other   (2,706 )   10,000     (2,706 )   10,000   Net cash used in investing activities   (17,421 )   (31,447 )   (130,828 )   (43,915 )   Cash flows from financing activities: Borrowings under term loan facility 250,000 - 250,000 - Repayments under revolving credit facility, net (138,000 ) - - - Proceeds from sale of equity shares, net of expenses - 218,816 - 218,816 Other   (7,942 )   (4,632 )   (19,624 )   (16,043 ) Net cash provided by financing activities   104,058     214,184     230,376     202,773    

Effect of exchange rate changes on cash and

cash equivalents   (5,354 )   1,490     (3,724 )   140     Net increase (decrease) in cash and cash equivalents 2,119 127,483 (121,039 ) 126,026   Cash and cash equivalents, at beginning of period   149,735     297,386     272,893     298,843     Cash and cash equivalents, at end of period $ 151,854   $ 424,869   $ 151,854   $ 424,869       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, 2011 2010 2011 2010   GAAP net income attributable to World Fuel $ 52,655 $ 36,755 $ 143,967 $ 107,435 Share-based compensation expense, net of taxes 1,738 1,860 5,626 4,604 Intangible asset amortization expense, net of taxes   4,870   1,641   14,103   4,582 Non-GAAP net income attributable to World Fuel $ 59,263 $ 40,256 $ 163,696 $ 116,621   GAAP diluted earnings per share $ 0.74 $ 0.60 $ 2.02 $ 1.76 Share-based compensation expense, net of taxes 0.02 0.03 0.08 0.08 Intangible asset amortization expense, net of taxes   0.07   0.03   0.20   0.08 Non-GAAP diluted earnings per share $ 0.83 $ 0.66 $ 2.30 $ 1.92     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, 2011 2010 2011 2010 Revenue: Aviation segment $ 3,540,503 $ 1,857,154 $ 9,551,924 $ 5,007,920 Marine segment 4,045,176 2,356,093 10,577,578 6,731,356 Land segment   1,925,113   773,827   5,169,405   1,563,094 $ 9,510,792 $ 4,987,074 $ 25,298,907 $ 13,302,370   Gross profit: Aviation segment $ 83,966 $ 55,829 $ 236,121 $ 157,091 Marine segment 50,069 41,194 140,958 123,787 Land segment   36,812   15,084   95,638   37,616 $ 170,847 $ 112,107 $ 472,717 $ 318,494   Income from operations: Aviation segment $ 41,228 $ 31,564 $ 117,022 $ 86,959 Marine segment 24,899 20,667 68,017 64,647 Land segment   18,653   3,234   43,342   7,362 84,780 55,465 228,381 158,968 Corporate overhead   13,855   10,378   35,828   26,692 $ 70,925 $ 45,087 $ 192,553 $ 132,276