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 full year net income of $194.0 million or $2.71 diluted earnings per share compared to $146.9 million or $2.31 diluted earnings per share in 2010. Non-GAAP net income and diluted earnings per share for the full year, which exclude share-based compensation and amortization of acquired intangible assets, were $221.1 million and $3.09, respectively, compared to $160.7 million or $2.53 in 2010.

For the fourth quarter, net income was $50.1 million or $0.70 diluted earnings per share compared to $39.4 million or $0.56 diluted earnings per share in the fourth quarter of 2010. Non-GAAP net income and diluted earnings per share for the fourth quarter, were $57.4 million and $0.81, respectively, compared to $44.1 million or $0.63 in the fourth quarter of 2010.

“2011 was a year of achievements as we posted records in revenue, gross profit, net income, earnings per share and volume,” stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. “As we move into 2012, we will work to continue to fortify our success through growth, diversification, and differentiation.”

The company’s marine segment generated gross profit of $54.2 million, an increase of approximately $4.1 million or 8% sequentially and $12.6 million or 30% year-over-year. Our aviation segment generated gross profit of $70.0 million in the fourth quarter of 2011, a decrease of $14.0 million or 17% sequentially, but an increase of $12.0 million or 21% year-over-year. The company’s land segment posted gross profit of $38.1 million, an increase of $1.3 million or 4% sequentially and $14.1 million or 59% year-over-year.

“In 2011, we delivered another year of record earnings, successfully completed and integrated two strategic acquisitions and further strengthened our liquidity profile,” said Ira M. Birns, executive vice president and chief financial officer. “We continued to provide exceptional value to our customers and suppliers, while delivering above-average returns to our shareholders.”

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 worldwide.

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 Year ended December 31, December 31, 2011   2010   2011   2010       Revenue $ 9,323,947 $ 5,828,777 $ 34,622,854 $ 19,131,147 Cost of revenue   9,161,661     5,705,130     33,987,851     18,689,006     Gross profit   162,286     123,647     635,003     442,141     Operating expenses: Compensation and employee benefits 56,114 45,702 215,275 162,451 Provision for bad debt 1,424 1,100 8,173 4,262 General and administrative   40,329     28,255     154,583     94,562     Total operating expenses   97,867     75,057     378,031     261,275     Income from operations 64,419 48,590 256,972 180,866 Non-operating expenses, net   (4,501 )   (1,286 )   (18,769 )   (3,336 )   Income before income taxes 59,918 47,304 238,203 177,530 Provision for income taxes   6,888     8,066     39,001     31,027     Net income including noncontrolling interest 53,030 39,238 199,202 146,503 Net income (loss) attributable to noncontrolling interest   2,968     (192 )   5,173     (362 )   Net income attributable to World Fuel $ 50,062   $ 39,430   $ 194,029   $ 146,865     Basic earnings per share $ 0.70   $ 0.57   $ 2.74   $ 2.36     Basic weighted average common shares   71,036     69,192     70,687     62,168     Diluted earnings per share $ 0.70   $ 0.56   $ 2.71   $ 2.31     Diluted weighted average common shares   71,772     70,565     71,510     63,441   WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED - IN THOUSANDS)     As of December 31, December 31, 2011 2010     Assets: Current assets: Cash and cash equivalents $ 205,415 $ 272,893 Accounts receivable, net 2,160,561 1,386,700 Inventories 472,584 211,526 Prepaid expenses and other current assets   283,667   196,748     Total current assets 3,122,227 2,067,867   Property and equipment, net 90,710 64,106   Goodwill, identifiable intangible and non-current other assets   484,309   434,477     Total assets $ 3,697,246 $ 2,566,450     Liabilities and equity: Liabilities: Current liabilities: Short-term debt $ 17,800 $ 17,076 Accounts payable 1,739,678 1,131,228 Accrued expenses and other current liabilities   268,664   210,180     Total current liabilities 2,026,142 1,358,484   Long-term debt 269,348 24,566 Other long-term liabilities   55,038   56,836   Total liabilities   2,350,528   1,439,886     Equity: World Fuel shareholders' equity 1,332,961 1,127,208 Noncontrolling interest equity (deficit)   13,757   (644 ) Total equity   1,346,718   1,126,564     Total liabilities and equity $ 3,697,246 $ 2,566,450   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, 2011   2010   2011   2010     Cash flows from operating activities: Net income including noncontrolling interest $ 53,030   $ 39,238   $ 199,202   $ 146,503   Adjustments to reconcile net income including noncontrolling interest to net cash provided by (used in) operating activities: Depreciation and amortization 11,419 6,013 40,530 19,106 Provision for bad debt 1,424 1,100 8,173 4,262 Share-based payment award compensation costs 2,842 3,688 11,041 10,126 Other 2,020 (5,668 ) 5,072 (8,969 ) Changes in assets and liabilities, net of acquisitions   3,592     (47,097 )   (406,554 )   (206,726 ) Total adjustments   21,297     (41,964 )   (341,738 )   (182,201 ) Net cash provided by (used in) operating activities   74,327     (2,726 )   (142,536 )   (35,698 )   Cash flows from investing activities: Acquisition of businesses, net of cash acquired (10,387 ) (131,792 ) (122,702 ) (177,807 ) Capital expenditures (3,685 ) (4,585 ) (19,492 ) (12,485 ) Other   268     -     (2,438 )   10,000   Net cash used in investing activities   (13,804 )   (136,377 )   (144,632 )   (180,292 )   Cash flows from financing activities: (Repayments) borrowings of debt, net (4,794 ) (947 ) 237,124 (6,470 ) Proceeds from sale of equity shares, net of expenses - - - 218,816 Dividends paid on common stock (2,654 ) (2,226 ) (10,603 ) (8,911 ) Payment of assumed employee benefits related to acquisitions - (11,306 ) (5,421 ) (11,306 ) Other   (362 )   1,657     1,466     (2,178 ) Net cash (used in) provided by financing activities   (7,810 )   (12,822 )   222,566     189,951     Effect of exchange rate changes on cash and cash equivalents   848     (51 )   (2,876 )   89     Net increase (decrease) in cash and cash equivalents 53,561 (151,976 ) (67,478 ) (25,950 )   Cash and cash equivalents, at beginning of period   151,854     424,869     272,893     298,843     Cash and cash equivalents, at end of period $ 205,415   $ 272,893   $ 205,415   $ 272,893   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, 2011 2010 2011 2010   Non-GAAP financial measures and reconciliation:   GAAP net income attributable to World Fuel $ 50,062 $ 39,430 $ 194,029 $ 146,865 Share-based compensation expense, net of taxes 1,932 2,507 7,558 7,111 Intangible asset amortization expense, net of taxes   5,443   2,157   19,546   6,739 Non-GAAP net income attributable to World Fuel $ 57,437 $ 44,094 $ 221,133 $ 160,715   GAAP diluted earnings per share $ 0.70 $ 0.56 $ 2.71 $ 2.31 Share-based compensation expense, net of taxes 0.03 0.04 0.11 0.11 Intangible asset amortization expense, net of taxes   0.08   0.03   0.27   0.11 Non-GAAP diluted earnings per share $ 0.81 $ 0.63 $ 3.09 $ 2.53 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, 2011 2010 2011 2010 Revenue: Aviation segment $ 3,314,095 $ 2,124,829 $ 12,866,019 $ 7,132,749 Marine segment 3,987,508 2,489,642 14,565,086 9,220,998 Land segment   2,022,344   1,214,306   7,191,749   2,777,400 $ 9,323,947 $ 5,828,777 $ 34,622,854 $ 19,131,147   Gross profit: Aviation segment $ 69,991 $ 58,039 $ 306,112 $ 215,130 Marine segment 54,151 41,557 195,109 165,344 Land segment   38,144   24,051   133,782   61,667 $ 162,286 $ 123,647 $ 635,003 $ 442,141   Income from operations: Aviation segment $ 29,389 $ 31,392 $ 146,411 $ 118,351 Marine segment 27,965 20,009 95,982 84,656 Land segment   18,707   8,586   62,049   15,948 76,061 59,987 304,442 218,955 Corporate overhead   11,642   11,397   47,470   38,089 $ 64,419 $ 48,590 $ 256,972 $ 180,866