World Fuel Services 2004 Annual Report Download - page 67

The following table sets forth the impact of the restatement to correct the cutoff procedures used to recognize sales and
sales related costs on amounts previously reported in the consolidated statements of income (in thousands, except earnings per
share data):
For the Nine Months For the Year
For the Year ended December 31, ended December 31, ended March 31,
2003 2003 2002 2002 2002 2002 2002 2002
Previously Previously Previously Previously
Reported Restated Reported Restated Reported Restated Reported Restated
(Unaudited) (Unaudited)
Statement of Income
Revenue 2,661,790$ 2,671,557$ 1,898,181$ 1,904,365$ 1,546,897$ 1,551,707$ 1,365,065$ 1,369,392$
Cost of sales (2,561,082) (2,570,434) (1,814,114) (1,820,538) (1,483,976) (1,488,587) (1,288,891) (1,293,568)
Gross profit 100,708 101,123 84,067 83,827 62,921 63,120 76,174 75,824
Salaries and wages (38,757) (38,820) (31,554) (31,456) (23,484) (23,458) (30,515) (30,460)
Operating expenses (73,718) (73,781) (63,898) (63,800) (49,135) (49,109) (54,885) (54,830)
Income from operations 26,990 27,342 20,169 20,027 13,786 14,011 21,289 20,994
Income from operations before
income taxes 27,618 27,970 18,243 18,101 11,756 11,981 23,226 22,931
Provision for income taxes (5,744) (5,809) (3,898) (3,948) (1,884) (1,934) (5,991) (5,947)
Net income 21,874$ 22,161$ 14,345$ 14,153$ 9,872$ 10,047$ 17,235$ 16,984$
Basic earnings per share 1.03$ 1.04$ 0.69$ 0.68$ 0.47$ 0.48$ 0.83$ 0.82$
Diluted earnings per share 0.98$ 0.99$ 0.66
$ 0.65$ 0.45$ 0.46$ 0.81$ 0.80$
b) Restatement related to cash flows presentation of revolving credit facility
We have restated our previously reported consolidated statement of cash flows for the years ended December 31, 2004,
2003 and 2002, and the nine months ended December 31, 2002 to reflect the correction of the presentation of borrowings and
repayments under our revolving credit facility. Under the corrected presentation, borrowings and repayments are reported on a
gross rather than net basis. The restatement had no impact on the net cash flows from operating activities or investing
activities or financing activities for any of the interim periods of 2004 or 2003.
The following table sets forth the impact of the restatement on amounts previously reported within cash flows from
financing activities in the consolidated statements of cash flows (in thousands):
For the Nine
Months Ended
For the Year ended December 31, December 31,
2004 2003 2002 2002
(Unaudited)
Borrowings under revolving credit facility, as restated 285,000$ 32,000$ 10,000$ 10,000$
Repayments under revolving credit facility, as restated (235,000) (32,000) (10,000) (10,000)
Net borrowings under revolving credit facility, previously reported 50,000$ -$ -$ -$
3. Debt
In September 2004, the credit agreement relating to our syndicated revolving credit facility (the “Credit Agreement”) was
amended to increase available borrowings under the revolving credit facility to $145.0 million and to provide us with the
option to increase available borrowings to $150.0 million. Pursuant to the amendment, our sublimit for the issuance of letters
of credit was increased to $60.0 million. In October 2004, we exercised our option to increase our available borrowings under
the revolving credit facility to $150.0 million. Our available borrowings under the revolving credit facility are reduced by the
amount of outstanding letters of credit. Borrowings under the revolving credit facility bear interest at market rates plus
applicable margins ranging from zero percent to 0.75% for U.S. Prime Rate loans and 1.25% to 2.00% for LIBOR Rate loans,
as defined. As of December 31, 2004, our weighted average interest rate on borrowings under the credit facility was 4.27%.
Letters of credit issued under the revolving credit facility are subject to fees (“L/C Fees”) ranging from 1.25% to 2.00%.
Interest and L/C Fees are payable quarterly and at maturity in arrears. The Credit Agreement expires on December 19, 2006.
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