World Fuel Services 2008 Annual Report Download - page 42

2008 compared to 2007
Operating activities. For 2008, net cash provided by operating activities totaled $393.5 million as compared
to net cash used in operating activities of $77.9 million in 2007. The increase in cash flow provided by operating
activities was primarily due to increased net income and a reduction in operating assets and liabilities resulting
from a decline in oil prices and an improvement in our net trade cycle as compared to 2007.
Investing activities. During 2008, net cash used in investing activities was $100.2 million as compared to
$69.0 million in 2007. The increase in cash used in investing activities in 2008 was due to increased acquisition
activity offset by a reduction in capital expenditures. In 2008, we acquired the Texor business for $93.4 million
net of cash acquired of $0.3 million.
Financing activities. For 2008, net cash used in financing activities was $13.4 million as compared to net
cash provided by financing activities of $6.6 million in 2007. The increase in cash used in financing activities in
2008 was primarily due to a $40.0 million debt repayment under our Credit Facility offset by borrowings under
our BA Facility of $14.5 million, a net increase of $10.0 million resulting from the payment of restricted cash
held as collateral from a customer and $5.8 million in federal and state tax benefits resulting from a tax deduction
in excess of compensation cost recognized for share-based payment awards.
2007 compared to 2006
Operating activities. For 2007, net cash used in operating activities totaled approximately $77.9 million as
compared to net cash provided by operating activities of $67.9 million in 2006. This $145.8 million change in
cash flows from operating activities was primarily due to a net increase in working capital.
Investing activities. During 2007, net cash used in investing activities was approximately $69.0 million
compared to $25.2 million in 2006. This $43.8 million increase in cash used in investing activities was due to
$54.9 million cash used for the acquisition of AVCARD as compared to $2.6 million cash used for the
acquisition of the minority ownership interest of Tramp Oil (Brasil) Limitada. Partially offsetting these increases
in cash used in investing activities was $5.0 million of net proceeds from the sale of short-term investments and a
$3.5 million decrease in capital expenditures.
Financing activities. For 2007, net cash provided by financing activities was $6.6 million as compared to
$0.5 million in 2006. This $6.1 million increase was primarily due to a $20.0 million increase in net borrowings
under the Credit Facility and $3.9 million U.S. federal and state tax benefits resulting from tax deductions in
excess of the compensation cost recognized for share-based payment awards, partially offset by $10.0 million in
restricted cash received as collateral from a customer, a $5.7 million decrease in proceeds from the exercise of
stock options, a $1.3 million payment of loan costs for our Credit Facility and a $1.5 million increase in
purchases of stock tendered by employees to satisfy the required withholding taxes related to share-based
payment awards.
Contractual Obligations and Off-Balance Sheet Arrangements
Our significant contractual obligations and off-balance sheet arrangements are set forth below. For
additional information on any of the following and other contractual obligations and off-balance sheet
arrangements, see Notes 7 and 10 in the notes to the consolidated financial statements in Item 15 of this Form
10-K.
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