World Fuel Services 2008 Annual Report Download - page 19

Our business is dependent on the ability to obtain financing to meet our capital requirements and fund our
future growth, which may be particularly difficult to obtain because of the recent tightening and volatility
of the credit and capital markets.
We rely on credit arrangements with banks, suppliers and other parties as a significant source of liquidity for
capital requirements not satisfied by operating cash flow. There has been a substantial tightening of the global
credit markets recently, which, along with our then-current financial condition and the restrictions in our existing
debt agreements, could affect our ability to obtain credit as and when we need it on commercially reasonable
terms or at all and, consequently, could have a negative impact on our future development and growth. If we are
unable to obtain debt financing and instead raise capital through an equity issuance, outstanding equity interests
would be diluted. Even if we are able to obtain debt financing, the restrictions creditors place on our operations
and our increased interest expense and leverage could limit our ability to grow.
If we are unable to retain our senior management and key employees, our business and results of
operations could be harmed.
Our ability to maintain our competitive position is dependent largely on the services of our senior
management and professional team. Although we have employment agreements with certain of our key executive
officers, the employment agreements do not prevent those officers from ceasing their employment with us at any
time. If we are unable to retain the existing senior management and professional personnel, or to attract other
qualified senior management and professional personnel on terms satisfactory to us, our business will be
adversely affected. While we maintain key man life insurance with respect to certain members of our senior
management, our coverage levels may not be sufficient to offset any losses we may suffer as a result of our loss
of the officer, and there is no assurance that we will continue to maintain key man life insurance in the future.
Businesses we have acquired or may acquire in the future as well as strategic investments will expose us to
increased operating risks.
As part of our growth strategy, we have been acquisitive and intend to continue to explore acquisition
opportunities of fuel resellers and other related service businesses. For example, we purchased the Texor
business in 2008 and AVCARD in 2007. We cannot assure you, however, that we will find attractive acquisition
candidates in the future, that we will be able to acquire such candidates on economically acceptable terms, or that
we will be able to finance acquisitions on economically acceptable terms. Even if we are able to acquire new
businesses in the future, they could result in the incurrence of substantial additional indebtedness and other
expenses or potentially dilutive issuances of equity securities and may affect the market price of our common
stock, inhibit our ability to pay dividends or restrict our operations.
These investments could expose us to additional business and operating risks and uncertainties, including:
• the ability to effectively integrate and manage acquired businesses or strategic investments, while
maintaining uniform standards and controls;
• the ability to realize our investment and anticipated synergies in the acquired businesses or strategic
investments;
• the diversion of management’s time and attention from other business concerns, the potentially negative
impact of changes in management on existing business relationships, and other disruptions of our
business;
• the risk of entering markets in which we may have no or limited direct prior experience;
• the potential loss of key employees, customers or suppliers of the acquired businesses;
• the requirement to write-down acquired assets as a result of the acquired business being worth less than
we paid for it;
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