World Fuel Services 2007 Annual Report Download - page 55

ˆ1KGX9SH6TVF1J5WÊ
1KGX9SH6TVF1J5W
64435 TX 47WORLD FUEL SERVICES
ANNUAL REPORT
28-Feb-2008 15:15 EST
CLN PSTAM
RR Donnelley ProFile SER willj0da
START PAGE
12*
PMT 2C
TX8724AC351073
9.9.26
WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Year ended December 31,
2007 2006 2005
Cash flows from operating activities:
Net income ...................................................................... $ 64,773 $ 63,948 $ 39,609
Adjustments to reconcile net income to net cash (used in) provided by operating activities -
Provision for bad debts ........................................................... 1,892 3,869 8,644
Depreciation and amortization ..................................................... 6,901 4,866 3,826
Deferred income tax (benefit) provision .............................................. (3,020) 4,187 705
Unrealized derivatives losses (gains), net ............................................. 107 (856) (272)
Share-based payment compensation costs for employee and non-employee directors .......... 7,166 7,035 3,976
Software write-down ............................................................. 2,445 — 605
Impairment on short-term investments ............................................... 1,900 — —
Goodwill impairment ............................................................ — — 528
Other ......................................................................... 449 73 1,060
Changes in assets and liabilities, net of acquisitions
Accounts and notes receivable ................................................... (454,293) (174,348) (206,297)
Inventories ................................................................... (26,780) (37,871) 4,942
Receivables related to short-term derivative contracts ................................. (49,619) (14,673) (13,649)
Prepaid expenses and other current assets .......................................... (7,563) 18,280 (9,227)
Receivables related to long-term derivative contracts ................................. (7,108) — —
Non-current income tax receivable and other assets ................................... (1,986) (26) (1,255)
Accounts payable ............................................................. 316,277 185,215 148,822
Payables related to short-term derivative contracts ................................... 52,262 12,093 13,964
Customer deposits ............................................................. 14,340 (377) (12,700)
Accrued expenses and other current liabilities ....................................... (6,251) (3,310) 14,107
Payables related to long-term derivative contracts .................................... 7,109 — —
Non-current income tax payable, deferred compensation and other long-term liabilities ...... 3,072 (221) (1,414)
Total adjustments ........................................................... (142,700) 3,936 (43,635)
Net cash (used in) provided by operating activities ................................... (77,927) 67,884 (4,026)
Cash flows from investing activities:
Capital expenditures ............................................................... (16,581) (20,031) (4,615)
Purchase of short-term investments ................................................... (30,060) (58,555) (20,000)
Proceeds from the sale of short-term investments ........................................ 32,560 56,055 10,000
Acquisition of business, net of cash acquired ............................................ (54,907) (2,646) —
Net cash used in investing activities ................................................. (68,988) (25,177) (14,615)
Cash flows from financing activities:
Dividends paid on common stock ..................................................... (4,253) (4,160) (3,440)
Minority interest distribution ........................................................ (426) (410) —
Borrowings under senior revolving credit facility ........................................ 276,000 25,000 186,000
Repayments under senior revolving credit facility ........................................ (256,000) (25,000) (216,000)
Payment of senior revolving credit facility loan costs ..................................... (1,278) — —
Repayment of promissory notes ...................................................... — (500) (1,100)
Proceeds from exercise of stock options ................................................ 1,056 6,733 3,033
Purchases of stock tendered by employees to satisfy the required withholding taxes related to share-
based awards ................................................................... (2,583) (1,050) (1,234)
Federal and state tax benefits resulting from tax deductions in excess of the compensation cost
recognized for share-based awards .................................................. 3,883 128 —
Restricted cash ................................................................... (10,000) — —
Proceeds from sale of equity shares, net of estimated expenses .............................. — — 120,262
Other ........................................................................... 172 (237) 226
Net cash provided by financing activities ............................................. 6,571 504 87,747
Net (decrease) increase in cash and cash equivalents ........................................ (140,344) 43,211 69,106
Cash and cash equivalents, at beginning of period .......................................... 176,495 133,284 64,178
Cash and cash equivalents, at end of period ............................................... $ 36,151 $ 176,495 $ 133,284
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest, net of capitalized interest .................................................. $ 709 $ 1,104 $ 1,877
Income taxes ................................................................... $ 19,760 $ 17,503 $ 11,738
The accompanying notes are an integral part of these consolidated financial statements.
47