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 second quarter net income of $48.2 million or $0.68 diluted earnings per share. Excluding expenses related to an executive non-renewal charge, net income was $51.2 million or $0.72 diluted earnings per share. This compares to $51.0 million or $0.71 diluted earnings per share in the second quarter of 2013. Non-GAAP net income and diluted earnings per share for the second quarter, excluding share-based compensation, amortization of acquired intangible assets and an executive non-renewal charge were $57.9 million and $0.81, respectively, compared to $57.5 million and $0.80 in 2013.
"Our quarterly results demonstrated the strength of our diversified business model and our continued commitment to executing on our business plan," stated Michael J. Kasbar, chairman and chief executive officer. "We remain well positioned to capitalize on a growing set of strategic opportunities worldwide."
The company's aviation segment generated gross profit of $81.8 million, an increase of $12.9 million or 19% sequentially and $5.8 million or 8% year-over-year. The company's marine segment generated gross profit of $48.8 million, an increase of $1.0 million or 2% sequentially, but a decrease of $3.5 million or 7% year-over-year. The company's land segment posted gross profit of $60.9 million, a decrease of $10.4 million or 15% sequentially, but an increase of $0.8 million or 1% year-over-year.
"Our effective balance sheet management and strong cash flow generation has allowed us to continue to invest in both organic and acquisition related opportunities as evidenced by the Colt International acquisition," said Ira M. Birns, executive vice president and chief financial officer. "Our solid liquidity profile provides a platform for growth as we look to maximize value for our customers, suppliers and 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, amortization of acquired intangible assets, expenses related to the acquisition of Watson Petroleum Limited and the executive non-renewal charge 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 acquisition of Watson Petroleum Limited and the executive non-renewal charge, 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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