World Fuel Services Corporation Completes PAPCO, Inc. and Associated Petroleum Products, Inc. Acquisitions
05 July 2016 - 10:00PM
Business Wire
World Fuel Services Corporation (NYSE: INT), today announced
that it has completed the previously announced acquisitions of
PAPCO, Inc. and Associated Petroleum Products, Inc.
PAPCO is headquartered in Virginia Beach, VA, with 150 employees
and 2015 revenue of $1 billion and APP is headquartered in Tacoma,
WA, with 275 employees and 2015 revenue of $600 million. Both are
leading distributors of gasoline, diesel, lubricants, propane and
related services in their respective regions.
“We are pleased to welcome the PAPCO and APP teams to the World
Fuel Services organization,” stated Michael J. Kasbar, chairman and
chief executive officer of World Fuel Services Corporation. “These
transactions, combined with our existing World Fuel land segment
operations, will serve to further enhance our commercial and
industrial platforms to deliver value-added solutions to customers
across the United States.”
Excluding the impact of one-time acquisition related expenses
and amortization of acquired intangible assets of approximately $4
million and $9 million respectively, the transactions are expected
to be $0.22 to $0.26 accretive to earnings on a Non-GAAP basis in
the first twelve months.
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”). Specifically, we
have used non-GAAP accretion to earnings per share, which excludes
one-time acquisition-related expenses 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
this non-GAAP financial measure, when considered in conjunction
with our financial information prepared in accordance with GAAP, is
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.
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
accretion may not be comparable to the presentation of such metric
by other companies. Investors are encouraged to review the
reconciliation of this non-GAAP measure to its most directly
comparable GAAP financial measure contained in this press
release.
Information Relating to Forward-Looking
Statements
This release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding our expectations about the effect of
the acquisitions on our land segment, our commercial and industrial
platform and delivery of value-added solutions, as well as the
effect of the transaction on our earnings. These forward-looking
statements are qualified in their entirety by cautionary statements
and risk factor disclosures contained in the company’s Securities
and Exchange Commission (“SEC”) filings, including the company’s
Annual Report on Form 10-K filed with the SEC on February 16, 2016.
Actual results may differ materially from any forward-looking
statements due to risks and uncertainties, including, but not
limited to: our ability to effectively integrate and derive
benefits from the acquisitions, our ability to capitalize on new
market opportunities, potential liabilities, limited indemnities
and the extent of any insurance coverage, the outcome of pending
litigation and other proceedings, the impact of quarterly
fluctuations in results, the creditworthiness of our customers and
counterparties and our ability to collect accounts receivable,
environmental and other risks associated with the storage,
transportation and delivery of petroleum products, our failure to
effectively hedge certain financial risks associated with the use
of derivatives, non-performance by counterparties or customers on
derivatives contracts, loss of, or reduced sales, to a significant
government customer, uninsured losses, the failure of fuel and
other products we sell to meet specifications, 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 and suppliers operate, the impact of natural disasters,
adverse results in legal disputes, unanticipated tax liabilities,
our ability to retain and attract senior management and other key
employees and other risks detailed from time to time in the
company’s SEC filings. New risks emerge from time to time and it is
not possible for management to predict all such risk factors or to
assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
changes in expectations, future events, or otherwise.
About World Fuel Services
Corporation
Headquartered in Miami, Florida, World Fuel Services is a global
fuel logistics, transaction management and payment processing
company, principally engaged in the distribution of fuel and
related products and services in the aviation, marine and land
transportation industries. World Fuel Services sells fuel and
delivers services to its clients at more than 8,000 locations in
more than 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 (FBOs), 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, residential and government accounts. The company also
offers transaction management services which consist of card
payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160705005561/en/
World Fuel Services CorporationIra M. Birns,
305-428-8000Executive Vice President & Chief Financial
OfficerorGlenn Klevitz, 305-428-8000Vice President, Assistant
Treasurer
World Fuel Services (NYSE:INT)
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