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