World Fuel Services 2008 Annual Report Download - page 41

Accounts Receivable Facility. In the third quarter of 2008, we entered into a Master Accounts Receivable
Purchase Agreement with a syndicate of financial institutions establishing a facility (the “Receivable Facility”) to
sell up to an aggregate of $160.0 million of our accounts receivable on a revolving basis. The Receivable Facility
may be increased to up to $250.0 million, subject to the satisfaction of certain conditions, and matures in
September 2010 unless an event of termination occurs or the term is extended for subsequent one-year terms with
the prior written consent of the syndicate of financial institutions. The Receivable Facility contains customary
termination events, including, among other things, the failure to make timely payments under the Receivable
Facility, the breach of covenants, and the occurrence and continuance of events of default under our Credit
Facility. As of December 31, 2008, no accounts receivable had been sold under our Receivable Facility. We are
also closely monitoring the potential impact of changes in the financial conditions of our customers, which to
date have not had a material adverse impact on our operating results.
Other credit lines. We have unsecured credit lines aggregating $50.0 million for the issuance of letters of
credit and bank guarantees. Letters of credit issued under these credit lines are subject to fees at market rates
payable semiannually and at maturity in arrears. These credit lines are renewable on an annual basis. As of
December 31, 2008 and December 31, 2007, our outstanding bank guarantees under these credit lines totaled
$20.9 million and $3.9 million, respectively.
Additionally, we have a separate $15.0 million credit facility for the issuance of bankers’ acceptances (the
“BA Facility”) with one of the banks participating in our Credit Facility. The BA Facility is a continuing facility
that will remain in full force and effect until revoked by us or the bank. Bankers’ acceptances issued under the
BA Facility are subject to commissions and fees (finance charges) at the bank’s prevailing rate on the date of
acceptance. As of December 31, 2008, we recorded debt of $14.7 million, net of unamortized finance charges of
$0.1 million, under the BA Facility.
We believe that available funds from existing cash and cash equivalents, our Credit Facility and the
Receivable Facility, together with cash flows generated by operations, remain sufficient to fund our working
capital and capital expenditure requirements for at least the next twelve months. In addition, to further enhance
our liquidity profile we may choose to raise additional funds which may or may not be needed for additional
working capital, capital expenditures or other strategic investments. Our opinions concerning liquidity are based
on currently available information. To the extent this information proves to be inaccurate, or if circumstances
change, future availability of trade credit or other sources of financing may be reduced and our liquidity would
be adversely affected. Factors that may affect the availability of trade credit, or other forms of financing, include
our performance (as measured by various factors, including cash provided from operating activities), the state of
worldwide credit markets, and our levels of outstanding debt. Financing may not be available when needed or
desired on terms favorable to us.
In October 2008, our Board of Directors authorized a $50.0 million share repurchase program. The program
does not require a minimum number of shares to be purchased and may be suspended or discontinued at any
time. As of December 31, 2008, no shares of our common stock had been repurchased under this program. The
timing and amount of shares to be repurchased under the program will depend on market conditions, share price,
securities law and other legal requirements and other factors.
Cash Flows
The following table reflects the major categories of cash flows 2008, 2007 and 2006. For additional details,
please see the Consolidated Statements of Cash Flows in the consolidated financial statements.
2008 2007 2006
Net cash provided by (used in) operating activities . . . . . . . . . . . $ 393,452 $(77,927) $ 67,884
Net cash (used in) provided by investing activities . . . . . . . . . . . (100,157) (68,988) (25,177)
Net cash (used in) provided by financing activities . . . . . . . . . . . (13,372) 6,571 504
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