UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 29, 2016
WORLD FUEL SERVICES CORPORATION
(Exact name of registrant as specified in its charter)
|
Florida (State or other jurisdiction of incorporation) |
1-9533 (Commission File Number) |
59-2459427 (I.R.S. Employer Identification No.) |
|
9800 N.W. 41st Street Miami, Florida (Address of principal executive offices) |
33178 (Zip Code) |
Registrant’s telephone number, including area code: (305) 428-8000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
World Fuel Services Corporation (the “Company”) is filing this Form 8-K to provide additional information and details regarding the correction of previously issued financial statements disclosed in its Current Report on Form 8-K filed with the Securities and Exchange Commission on July 28, 2016. During the quarter ended June 30, 2016, the Company identified a correction to its provision for income taxes in certain prior periods due to the accounting for the tax effects of foreign currency translation changes on intercompany loans that are considered to be of a long-term investment nature. The Company determined that it had incorrectly applied the accounting guidance in ASC 740, Income Taxes and recorded a deferred tax asset related to foreign currency translation losses in the provision for income taxes, resulting in the Company reporting a lower provision for income taxes in the periods that were impacted.
In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, management evaluated the materiality of the error from qualitative and quantitative perspectives, and concluded the error was not material to its previously issued annual and interim financial statements. The cumulative amounts of the corrections were approximately $20.0 million, of which approximately $12.5 million was attributable to the year ended December 31, 2015. The cumulative amount of the prior period adjustments would have been material to the Company’s current Statements of Income and Comprehensive Income had it made the correction in the current period and, accordingly the Company will revise its previously issued financial statements prospectively to correct these errors.
The corrections associated with the provision for income taxes line item as well as other immaterial adjustments are reflected below and will also be reflected in the Company’s regularly filed financial reports commencing with its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2016 for all periods presented
The following table presents the effect of the correction on the previously reported Balance Sheet as of December 31, 2015 and December 31, 2014:
Consolidated Balance Sheets
(Unaudited - In millions, except per share data)
|
|
|
As of December 31, 2015 |
|
|
As of December 31, 2014 |
|||||||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
|
|
As Reported |
|
Adjustment |
|
Revised |
|||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
582.5 |
|
— |
|
$ |
582.5 |
|
$ |
302.3 |
|
— |
|
$ |
302.3 |
|
Accounts receivable, net |
|
|
1,812.6 |
|
— |
|
|
1,812.6 |
|
|
2,306.4 |
|
1.8 |
|
|
2,308.2 |
|
Inventories |
|
|
359.1 |
|
— |
|
|
359.1 |
|
|
437.6 |
|
— |
|
|
437.6 |
|
Prepaid expenses |
|
|
57.9 |
|
— |
|
|
57.9 |
|
|
76.9 |
|
— |
|
|
76.9 |
|
Short-term derivative assets, net |
|
|
227.2 |
|
(6.8) |
|
|
220.4 |
|
|
303.6 |
|
— |
|
|
303.6 |
|
Other current assets |
|
|
209.8 |
|
(1.8) |
|
|
208.0 |
|
|
246.6 |
|
— |
|
|
246.6 |
|
Current assets held for sale |
|
|
5.5 |
|
— |
|
|
5.5 |
|
|
— |
|
— |
|
|
— |
|
Total current assets |
|
|
3,254.6 |
|
(8.6) |
|
|
3,246.0 |
|
|
3,673.4 |
|
1.8 |
|
|
3,675.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
225.6 |
|
— |
|
|
225.6 |
|
|
203.4 |
|
0.6 |
|
|
204.0 |
|
Goodwill |
|
|
675.8 |
|
— |
|
|
675.8 |
|
|
653.3 |
|
(0.6) |
|
|
652.7 |
|
Identifiable intangible and other non-current assets |
|
|
356.9 |
|
(15.5) |
|
|
341.4 |
|
|
350.9 |
|
(4.7) |
|
|
346.2 |
|
Non-current assets held for sale |
|
|
36.5 |
|
— |
|
|
36.5 |
|
|
— |
|
— |
|
|
— |
|
Total assets |
|
$ |
4,549.4 |
|
(24.1) |
|
$ |
4,525.3 |
|
$ |
4,881.0 |
|
(2.9) |
|
$ |
4,878.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt |
|
$ |
25.5 |
|
— |
|
$ |
25.5 |
|
$ |
17.9 |
|
— |
|
$ |
17.9 |
|
Accounts payable |
|
|
1,349.6 |
|
— |
|
|
1,349.6 |
|
|
1,850.1 |
|
— |
|
|
1,850.1 |
|
Customer deposits |
|
|
118.3 |
|
— |
|
|
118.3 |
|
|
138.8 |
|
— |
|
|
138.8 |
|
Accrued expenses and other current liabilities |
|
|
263.8 |
|
(8.6) |
|
|
255.2 |
|
|
232.5 |
|
2.6 |
|
|
235.1 |
|
Current liabilities held for sale |
|
|
5.6 |
|
— |
|
|
5.6 |
|
|
— |
|
— |
|
|
— |
|
Total current liabilities |
|
|
1,762.8 |
|
(8.6) |
|
|
1,754.2 |
|
|
2,239.3 |
|
2.6 |
|
|
2,241.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
746.7 |
|
— |
|
|
746.7 |
|
|
672.0 |
|
— |
|
|
672.0 |
|
Non-current income tax liabilities, net |
|
|
87.7 |
|
— |
|
|
87.7 |
|
|
85.5 |
|
— |
|
|
85.5 |
|
Other long-term liabilities |
|
|
25.8 |
|
— |
|
|
25.8 |
|
|
19.3 |
|
— |
|
|
19.3 |
|
Non-current liabilities held for sale |
|
|
5.0 |
|
— |
|
|
5.0 |
|
|
— |
|
— |
|
|
— |
|
Total liabilities |
|
|
2,628.0 |
|
(8.6) |
|
|
2,619.4 |
|
|
3,016.1 |
|
2.6 |
|
|
3,018.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
World Fuel shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $1.00 par value; 100 shares authorized, none issued |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Common stock, $0.01 par value; 100,000 shares authorized, 70,788 and 72,082 shares issued and outstanding as of December 31, 2015 and 2014, respectively |
|
|
0.7 |
|
— |
|
|
0.7 |
|
|
0.7 |
|
— |
|
|
0.7 |
|
Capital in excess of par value |
|
|
435.3 |
|
— |
|
|
435.3 |
|
|
496.4 |
|
— |
|
|
496.4 |
|
Retained earnings |
|
|
1,588.6 |
|
(19.2) |
|
|
1,569.4 |
|
|
1,418.5 |
|
(6.5) |
|
|
1,412.0 |
|
Accumulated other comprehensive loss |
|
|
(113.2) |
|
3.7 |
|
|
(109.5) |
|
|
(60.2) |
|
1.0 |
|
|
(59.2) |
|
Total World Fuel shareholders' equity |
|
|
1,911.4 |
|
(15.5) |
|
|
1,895.9 |
|
|
1,855.4 |
|
(5.5) |
|
|
1,849.9 |
|
Noncontrolling interest equity |
|
|
10.0 |
|
— |
|
|
10.0 |
|
|
9.5 |
|
— |
|
|
9.5 |
|
Total equity |
|
|
1,921.4 |
|
(15.5) |
|
|
1,905.9 |
|
|
1,864.9 |
|
(5.5) |
|
|
1,859.4 |
|
Total liabilities and equity |
|
$ |
4,549.4 |
|
(24.1) |
|
$ |
4,525.3 |
|
$ |
4,881.0 |
|
(2.9) |
|
$ |
4,878.1 |
The following tables present the effect of the correction on the previously reported statements of income and comprehensive income:
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
For the Year ended |
||||||
|
|
|
December 31, 2015 |
||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
||
|
Revenue |
|
$ |
30,379.7 |
|
1.7 |
|
$ |
30,381.4 |
|
Cost of revenue |
|
|
29,519.2 |
|
1.2 |
|
|
29,520.4 |
|
Gross profit |
|
|
860.5 |
|
0.5 |
|
|
861.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
365.8 |
|
— |
|
|
365.8 |
|
Provision for bad debt |
|
|
7.5 |
|
— |
|
|
7.5 |
|
General and administrative |
|
|
240.0 |
|
2.1 |
|
|
242.1 |
|
|
|
|
613.3 |
|
2.1 |
|
|
615.4 |
|
Income from operations |
|
|
247.2 |
|
(1.6) |
|
|
245.6 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(29.9) |
|
— |
|
|
(29.9) |
|
Other income (expense), net |
|
|
2.0 |
|
— |
|
|
2.0 |
|
|
|
|
(27.9) |
|
— |
|
|
(27.9) |
|
Income before income taxes |
|
|
219.3 |
|
(1.6) |
|
|
217.7 |
|
Provision for income taxes |
|
|
36.3 |
|
10.8 |
|
|
47.1 |
|
Net income including noncontrolling interest |
|
|
183.0 |
|
(12.4) |
|
|
170.6 |
|
Net loss attributable to noncontrolling interest |
|
|
(3.9) |
|
— |
|
|
(3.9) |
|
Net income attributable to World Fuel |
|
$ |
186.9 |
|
(12.4) |
|
$ |
174.5 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
2.66 |
|
(0.17) |
|
$ |
2.49 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
70.2 |
|
— |
|
|
70.2 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
2.64 |
|
(0.17) |
|
$ |
2.47 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
70.7 |
|
— |
|
|
70.7 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
183.0 |
|
(12.4) |
|
$ |
170.6 |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(49.6) |
|
4.0 |
|
|
(45.6) |
|
Cash Flow hedge, net |
|
|
0.6 |
|
(1.4) |
|
|
(0.8) |
|
|
|
|
(49.0) |
|
2.6 |
|
|
(46.4) |
|
Comprehensive income including noncontrolling interest |
|
|
134.0 |
|
(9.8) |
|
|
124.2 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
0.1 |
|
(2.3) |
|
|
(2.2) |
|
Comprehensive income attributable to World Fuel |
|
$ |
133.9 |
|
(7.5) |
|
$ |
126.4 |
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
For the Year ended |
|
For the Year ended |
||||||||||||
|
|
|
December 31, 2014 |
|
December 31, 2013 |
||||||||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
|
As Reported |
|
Adjustment |
|
Revised |
||||
|
Revenue |
|
$ |
43,386.4 |
|
5.4 |
|
$ |
43,391.8 |
|
$ |
41,561.9 |
|
(2.0) |
|
$ |
41,559.9 |
|
Cost of revenue |
|
|
42,572.8 |
|
— |
|
|
42,572.8 |
|
|
40,809.1 |
|
(1.4) |
|
|
40,807.7 |
|
Gross profit |
|
|
813.6 |
|
5.4 |
|
|
819.0 |
|
|
752.8 |
|
(0.6) |
|
|
752.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
319.8 |
|
— |
|
|
319.8 |
|
|
288.0 |
|
— |
|
|
288.0 |
|
Provision for bad debt |
|
|
3.8 |
|
— |
|
|
3.8 |
|
|
11.7 |
|
— |
|
|
11.7 |
|
General and administrative |
|
|
220.9 |
|
(2.1) |
|
|
218.8 |
|
|
188.6 |
|
— |
|
|
188.6 |
|
|
|
|
544.5 |
|
(2.1) |
|
|
542.4 |
|
|
488.3 |
|
— |
|
|
488.3 |
|
Income from operations |
|
|
269.1 |
|
7.6 |
|
|
276.7 |
|
|
264.5 |
|
(0.6) |
|
|
263.9 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(25.2) |
|
— |
|
|
(25.2) |
|
|
(17.3) |
|
— |
|
|
(17.3) |
|
Other income (expense), net |
|
|
25.6 |
|
(2.3) |
|
|
23.3 |
|
|
(0.4) |
|
2.3 |
|
|
1.9 |
|
|
|
|
0.4 |
|
(2.3) |
|
|
(1.9) |
|
|
(17.7) |
|
2.3 |
|
|
(15.4) |
|
Income before income taxes |
|
|
269.5 |
|
5.3 |
|
|
274.8 |
|
|
246.7 |
|
1.8 |
|
|
248.5 |
|
Provision for income taxes |
|
|
51.1 |
|
2.5 |
|
|
53.6 |
|
|
39.5 |
|
6.5 |
|
|
46.0 |
|
Net income including noncontrolling interest |
|
|
218.4 |
|
2.8 |
|
|
221.2 |
|
|
207.2 |
|
(4.7) |
|
|
202.5 |
|
Net loss attributable to noncontrolling interest |
|
|
(3.3) |
|
— |
|
|
(3.3) |
|
|
4.1 |
|
0.3 |
|
|
4.4 |
|
Net income attributable to World Fuel |
|
$ |
221.7 |
|
2.8 |
|
$ |
224.5 |
|
$ |
203.1 |
|
(5.0) |
|
$ |
198.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
3.13 |
|
0.04 |
|
$ |
3.17 |
|
$ |
2.85 |
|
(0.07) |
|
$ |
2.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
70.8 |
|
— |
|
|
70.8 |
|
|
71.2 |
|
— |
|
|
71.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
3.11 |
|
0.04 |
|
$ |
3.15 |
|
$ |
2.83 |
|
(0.07) |
|
$ |
2.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
71.3 |
|
— |
|
|
71.3 |
|
|
71.8 |
|
— |
|
|
71.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
218.4 |
|
2.8 |
|
$ |
221.2 |
|
$ |
207.2 |
|
(4.7) |
|
$ |
202.5 |
|
Other comprehensive (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
Foreign currency translation adjustments |
|
|
(30.9) |
|
— |
|
|
(30.9) |
|
|
(13.2) |
|
1.5 |
|
|
(11.7) |
|
Cash Flow hedge, net |
|
|
— |
|
— |
|
|
— |
|
|
(0.1) |
|
— |
|
|
(0.1) |
|
|
|
|
(30.9) |
|
— |
|
|
(30.9) |
|
|
(13.3) |
|
1.5 |
|
|
(11.8) |
|
Comprehensive income including noncontrolling interest |
|
|
187.5 |
|
2.8 |
|
|
190.3 |
|
|
193.9 |
|
(3.2) |
|
|
190.7 |
|
Comprehensive (loss) income attributable to noncontrolling interest |
|
|
(3.3) |
|
2.2 |
|
|
(1.1) |
|
|
4.1 |
|
0.4 |
|
|
4.5 |
|
Comprehensive income attributable to World Fuel |
|
$ |
190.8 |
|
0.6 |
|
$ |
191.4 |
|
$ |
189.8 |
|
(3.6) |
|
$ |
186.2 |
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
For the Three Months ended |
||||||
|
|
|
March 31, 2016 |
||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
||
|
Revenue |
|
$ |
5,192.6 |
|
(1.7) |
|
$ |
5,190.9 |
|
Cost of revenue |
|
|
4,968.8 |
|
0.6 |
|
|
4,969.4 |
|
Gross profit |
|
|
223.8 |
|
(2.3) |
|
|
221.5 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
95.9 |
|
— |
|
|
95.9 |
|
Provision for bad debt |
|
|
1.5 |
|
— |
|
|
1.5 |
|
General and administrative |
|
|
63.1 |
|
— |
|
|
63.1 |
|
|
|
|
160.5 |
|
— |
|
|
160.5 |
|
Income from operations |
|
|
63.3 |
|
(2.3) |
|
|
61.0 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(7.6) |
|
— |
|
|
(7.6) |
|
Other income, net |
|
|
1.3 |
|
— |
|
|
1.3 |
|
|
|
|
(6.3) |
|
— |
|
|
(6.3) |
|
Income before income taxes |
|
|
57.1 |
|
(2.3) |
|
|
54.7 |
|
Provision for income taxes |
|
|
4.8 |
|
(1.6) |
|
|
3.2 |
|
Net income including noncontrolling interest |
|
|
52.3 |
|
(0.8) |
|
|
51.5 |
|
Net loss attributable to noncontrolling interest |
|
|
(0.1) |
|
— |
|
|
(0.1) |
|
Net income attributable to World Fuel |
|
$ |
52.4 |
|
(0.8) |
|
$ |
51.6 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.75 |
|
(0.01) |
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
69.5 |
|
— |
|
|
69.5 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.75 |
|
(0.01) |
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
70.0 |
|
— |
|
|
70.0 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
52.3 |
|
(0.8) |
|
$ |
51.5 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
2.5 |
|
(1.2) |
|
|
1.3 |
|
Cash Flow hedge, net of income tax benefit: 2016 -$0.2 |
|
|
(1.7) |
|
1.4 |
|
|
(0.3) |
|
|
|
|
0.8 |
|
0.2 |
|
|
1.0 |
|
Comprehensive income including noncontrolling interest |
|
|
53.1 |
|
(0.6) |
|
|
52.5 |
|
Comprehensive income attributable to noncontrolling interest |
|
|
1.5 |
|
— |
|
|
1.5 |
|
Comprehensive income attributable to World Fuel |
|
$ |
51.6 |
|
(0.6) |
|
$ |
51.0 |
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
For the Three Months ended |
|
For the Nine Months ended |
||||||||||||
|
|
|
September 30, 2015 |
|
September 30, 2015 |
||||||||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
|
As Reported |
|
Adjustment |
|
Revised |
||||
|
Revenue |
|
$ |
7,810.7 |
|
— |
|
$ |
7,810.7 |
|
$ |
23,647.8 |
|
— |
|
$ |
23,647.8 |
|
Cost of revenue |
|
|
7,584.0 |
|
— |
|
|
7,584.0 |
|
|
23,015.2 |
|
1.9 |
|
|
23,017.1 |
|
Gross profit |
|
|
226.7 |
|
— |
|
|
226.7 |
|
|
632.6 |
|
(1.9) |
|
|
630.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
94.2 |
|
— |
|
|
94.2 |
|
|
270.5 |
|
(0.2) |
|
|
270.3 |
|
Provision for bad debt |
|
|
1.6 |
|
— |
|
|
1.6 |
|
|
5.2 |
|
— |
|
|
5.2 |
|
General and administrative |
|
|
64.5 |
|
— |
|
|
64.5 |
|
|
177.6 |
|
2.0 |
|
|
179.6 |
|
|
|
|
160.3 |
|
— |
|
|
160.3 |
|
|
453.3 |
|
1.8 |
|
|
455.1 |
|
Income from operations |
|
|
66.4 |
|
— |
|
|
66.4 |
|
|
179.3 |
|
(3.7) |
|
|
175.6 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(7.9) |
|
— |
|
|
(7.9) |
|
|
(21.5) |
|
— |
|
|
(21.5) |
|
Other income, net |
|
|
1.9 |
|
— |
|
|
1.9 |
|
|
0.5 |
|
— |
|
|
0.5 |
|
|
|
|
(6.0) |
|
— |
|
|
(6.0) |
|
|
(21.0) |
|
— |
|
|
(21.0) |
|
Income before income taxes |
|
|
60.4 |
|
— |
|
|
60.4 |
|
|
158.3 |
|
(3.7) |
|
|
154.6 |
|
Provision for income taxes |
|
|
11.8 |
|
5.9 |
|
|
17.7 |
|
|
26.8 |
|
6.8 |
|
|
33.6 |
|
Net income including noncontrolling interest |
|
|
48.6 |
|
(5.9) |
|
|
42.7 |
|
|
131.5 |
|
(10.5) |
|
|
121.0 |
|
Net loss attributable to noncontrolling interest |
|
|
(1.0) |
|
— |
|
|
(1.0) |
|
|
(3.6) |
|
0.1 |
|
|
(3.5) |
|
Net income attributable to World Fuel |
|
$ |
49.6 |
|
(5.9) |
|
$ |
43.7 |
|
$ |
135.1 |
|
(10.6) |
|
$ |
124.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.71 |
|
(0.09) |
|
$ |
0.62 |
|
$ |
1.92 |
|
(0.15) |
|
$ |
1.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
70.0 |
|
— |
|
|
70.0 |
|
|
70.5 |
|
— |
|
|
70.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.71 |
|
(0.09) |
|
$ |
0.62 |
|
$ |
1.90 |
|
(0.15) |
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
70.3 |
|
— |
|
|
70.3 |
|
|
71.0 |
|
— |
|
|
71.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
48.6 |
|
(5.9) |
|
$ |
42.7 |
|
$ |
131.5 |
|
(10.5) |
|
$ |
121.0 |
|
Other comprehensive loss: |
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
Foreign currency translation adjustments |
|
|
(31.0) |
|
3.6 |
|
|
(27.4) |
|
|
(42.8) |
|
4.8 |
|
|
(38.0) |
|
Cash Flow hedge, net of income tax benefit of $0.7 for the three and nine months ended September 30,2015, respectively |
|
|
(1.1) |
|
— |
|
|
(1.1) |
|
|
(1.1) |
|
— |
|
|
(1.1) |
|
|
|
|
(32.1) |
|
3.6 |
|
|
(28.5) |
|
|
(43.9) |
|
4.8 |
|
|
(39.1) |
|
Comprehensive income including noncontrolling interest |
|
|
16.5 |
|
(2.3) |
|
|
14.2 |
|
|
87.6 |
|
(5.7) |
|
|
81.9 |
|
Comprehensive income (loss) attributable to noncontrolling interest |
|
|
1.1 |
|
(2.3) |
|
|
(1.2) |
|
|
1.0 |
|
(2.2) |
|
|
(1.2) |
|
Comprehensive income attributable to World Fuel |
|
$ |
15.4 |
|
— |
|
$ |
15.4 |
|
$ |
86.6 |
|
(3.5) |
|
$ |
83.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months ended |
|
For the Six Months ended |
||||||||||||
|
|
|
June 30, 2015 |
|
June 30, 2015 |
||||||||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
|
As Reported |
|
Adjustment |
|
Revised |
||||
|
Revenue |
|
$ |
8,496.4 |
|
— |
|
$ |
8,496.4 |
|
$ |
15,837.1 |
|
— |
|
$ |
15,837.1 |
|
Cost of revenue |
|
|
8,306.0 |
|
— |
|
|
8,306.0 |
|
|
15,431.3 |
|
1.8 |
|
|
15,433.1 |
|
Gross profit |
|
|
190.4 |
|
— |
|
|
190.4 |
|
|
405.8 |
|
(1.8) |
|
|
404.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
87.5 |
|
— |
|
|
87.5 |
|
|
176.2 |
|
— |
|
|
176.2 |
|
Provision for bad debt |
|
|
2.3 |
|
— |
|
|
2.3 |
|
|
3.6 |
|
— |
|
|
3.6 |
|
General and administrative |
|
|
59.0 |
|
— |
|
|
59.0 |
|
|
113.0 |
|
2.0 |
|
|
115.0 |
|
|
|
|
148.8 |
|
— |
|
|
148.8 |
|
|
292.8 |
|
2.0 |
|
|
294.8 |
|
Income from operations |
|
|
41.6 |
|
— |
|
|
41.6 |
|
|
113.0 |
|
(3.8) |
|
|
109.2 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(6.4) |
|
— |
|
|
(6.4) |
|
|
(13.7) |
|
— |
|
|
(13.7) |
|
Other (expense) income, net |
|
|
(1.6) |
|
— |
|
|
(1.6) |
|
|
(1.3) |
|
— |
|
|
(1.3) |
|
|
|
|
(8.0) |
|
— |
|
|
(8.0) |
|
|
(15.0) |
|
— |
|
|
(15.0) |
|
Income before income taxes |
|
|
33.6 |
|
— |
|
|
33.6 |
|
|
98.0 |
|
(3.8) |
|
|
94.2 |
|
Provision for income taxes |
|
|
5.2 |
|
(0.6) |
|
|
4.6 |
|
|
15.1 |
|
0.8 |
|
|
15.9 |
|
Net income including noncontrolling interest |
|
|
28.4 |
|
0.6 |
|
|
29.0 |
|
|
82.9 |
|
(4.6) |
|
|
78.3 |
|
Net loss attributable to noncontrolling interest |
|
|
(1.5) |
|
— |
|
|
(1.5) |
|
|
(2.6) |
|
— |
|
|
(2.6) |
|
Net income attributable to World Fuel |
|
$ |
29.9 |
|
0.6 |
|
$ |
30.5 |
|
$ |
85.5 |
|
(4.6) |
|
$ |
80.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.42 |
|
0.01 |
|
$ |
0.43 |
|
$ |
1.21 |
|
(0.07) |
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
70.7 |
|
— |
|
|
70.7 |
|
|
70.7 |
|
— |
|
|
70.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.42 |
|
0.01 |
|
$ |
0.43 |
|
$ |
1.20 |
|
(0.06) |
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
71.2 |
|
— |
|
|
71.2 |
|
|
71.3 |
|
— |
|
|
71.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
28.4 |
|
0.6 |
|
$ |
29.0 |
|
$ |
82.9 |
|
(4.6) |
|
$ |
78.3 |
|
Other comprehensive income (loss): |
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
Foreign currency translation adjustments |
|
|
22.0 |
|
(0.6) |
|
|
21.4 |
|
|
(11.8) |
|
1.2 |
|
|
(10.6) |
|
|
|
|
22.0 |
|
(0.6) |
|
|
21.4 |
|
|
(11.8) |
|
1.2 |
|
|
(10.6) |
|
Comprehensive income including noncontrolling interest |
|
|
50.4 |
|
— |
|
|
50.4 |
|
|
71.1 |
|
(3.4) |
|
|
67.7 |
|
Comprehensive loss attributable to noncontrolling interest |
|
|
(1.2) |
|
— |
|
|
(1.2) |
|
|
(0.1) |
|
— |
|
|
(0.1) |
|
Comprehensive income attributable to World Fuel |
|
$ |
51.6 |
|
— |
|
$ |
51.6 |
|
$ |
71.2 |
|
(3.4) |
|
$ |
67.8 |
Consolidated Statements of Income and Comprehensive Income
(Unaudited – In millions, except per share data)
|
|
|
For the Three Months ended |
||||||
|
|
|
March 31, 2015 |
||||||
|
|
|
As Reported |
|
Adjustment |
|
Revised |
||
|
Revenue |
|
$ |
7,340.7 |
|
— |
|
$ |
7,340.7 |
|
Cost of revenue |
|
|
7,125.3 |
|
1.8 |
|
|
7,127.1 |
|
Gross profit |
|
|
215.4 |
|
(1.8) |
|
|
213.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
88.6 |
|
— |
|
|
88.6 |
|
Provision for bad debt |
|
|
1.3 |
|
— |
|
|
1.3 |
|
General and administrative |
|
|
54.0 |
|
2.1 |
|
|
56.1 |
|
|
|
|
143.9 |
|
2.1 |
|
|
146.0 |
|
Income from operations |
|
|
71.5 |
|
(3.9) |
|
|
67.6 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net |
|
|
(7.3) |
|
— |
|
|
(7.3) |
|
Other income (expense), net |
|
|
0.3 |
|
— |
|
|
0.3 |
|
|
|
|
(7.0) |
|
— |
|
|
(7.0) |
|
Income before income taxes |
|
|
64.5 |
|
(3.9) |
|
|
60.6 |
|
Provision for income taxes |
|
|
9.9 |
|
1.4 |
|
|
11.3 |
|
Net income including noncontrolling interest |
|
|
54.6 |
|
(5.3) |
|
|
49.3 |
|
Net loss attributable to noncontrolling interest |
|
|
(1.0) |
|
— |
|
|
(1.0) |
|
Net income attributable to World Fuel |
|
$ |
55.6 |
|
(5.3) |
|
$ |
50.3 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.79 |
|
(0.08) |
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
70.7 |
|
— |
|
|
70.7 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
0.78 |
|
(0.08) |
|
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares |
|
|
71.4 |
|
— |
|
|
71.4 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
54.6 |
|
(5.3) |
|
$ |
49.3 |
|
Other comprehensive (loss): |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(33.8) |
|
1.8 |
|
|
(32.0) |
|
|
|
|
(33.8) |
|
1.8 |
|
|
(32.0) |
|
Comprehensive income including noncontrolling interest |
|
|
20.8 |
|
(3.5) |
|
|
17.3 |
|
Comprehensive income attributable to noncontrolling interest |
|
|
1.2 |
|
— |
|
|
1.2 |
|
Comprehensive income attributable to World Fuel |
|
$ |
19.6 |
|
(3.5) |
|
$ |
16.1 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Date: July 29, 2016 |
|
World Fuel Services Corporation |
|
|
|
|
|
|
|
/s/ Ira M. Birns |
|
|
|
Ira M. Birns |
|
|
|
Executive Vice President and Chief Financial Officer |