By a News Reporter-Staff News Editor at Investment Weekly News -- 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 and related products and services, reported full year net income of $203.1 million or $2.83 diluted earnings per share. This compares to $189.3 million or $2.64 diluted earnings per share for the same period in 2012. Non-GAAP net income and diluted earnings per share for the full year, excluding share-based compensation, amortization of acquired intangible assets and expenses related to certain acquisitions were $230.5 million and $3.22, respectively, compared to $215.9 million and $3.01 in 2012.
For the fourth quarter, net income was $51.9 million or $0.73 diluted earnings per share. This compares to $42.8 million or $0.60 diluted earnings per share in the fourth quarter of 2012. Non-GAAP net income and diluted earnings per share for the fourth quarter, excluding share-based compensation, amortization of acquired intangible assets and expenses related to certain acquisitions were $60.1 million and $0.85, respectively, compared to $52.3 million and $0.73 in the fourth quarter of 2012.
"Considering continued macro-economic headwinds, we are pleased with our strong results in the fourth quarter," stated Michael J. Kasbar, president and chief executive officer of World Fuel Services Corporation. "We continue to expand the breadth of our fuel and service offerings, further enhancing our value proposition and enabling us to continue to grow faster than the markets in which we participate."
For the full year, the company's aviation segment generated gross profit of $327.2 million, an increase of approximately $32.6 million or 11.1% year-over-year. The company's marine segment generated gross profit of $177.1 million, a decrease of $31.0 million or 14.9% year-over-year. The company's land segment posted gross profit of $248.5 million, an increase of $77.7 million or 45.5% year-over-year.
"We posted strong operating cash flow in 2013 and have now generated more than $410 million of operating cash flow during the past two years," said Ira M. Birns, executive vice president and chief financial officer. "Our solid cash flow profile has enabled us to invest organically and through strategic acquisitions and more recently, repurchase company stock as we did again during the fourth quarter, all while maintaining a strong and liquid balance sheet." 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, amortization of acquired intangible assets and expenses related to certain acquisitions primarily because we do not believe they are reflective of the Company's core operating results. We believe the exclusion of share-based compensation from operating expenses is useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of which is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also, we believe the exclusion of the amortization of acquired intangible assets, as well as the expenses related to the anticipated acquisition of Watson Petroleum Limited and the acquisition of select assets of the Multi Service business, are useful for purposes of evaluating operating performance of our core operating results and comparing them period-over-period. We believe that these non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance of the Company and to provide greater transparency as supplemental information to our GAAP results.
Keywords for this news article include: Finance, Aviation, World Fuel Services Corporation.
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