World Fuel Services 2014 Annual Report Download - page 32

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The following table sets forth the reconciliation between our diluted earnings per common share and our non-GAAP diluted
earnings per common share for 2014 and 2013:
2014 2013
Diluted earnings per common share $ 3.11 $ 2.83
Share-based compensation expense, net of income taxes 0.14 0.16
Intangible asset amortization expense, net of income taxes 0.31 0.20
Expenses related to acquisitions, net of income taxes 0.03 0.03
Gain on the sale of the crude oil joint venture interests (net of certain related operating
expenses), net of income taxes (0.14) —
Executive non-renewal charge, net of income taxes 0.04 —
Non-GAAP diluted earnings per common share $ 3.49 $ 3.22
The non-GAAP financial measures exclude costs associated with share-based compensation, amortization of acquired
intangible assets, expenses related to acquisitions, the gain on the sale of the crude oil joint venture interests (net of certain
related operating expenses) and the executive non-renewal charge primarily because we do not believe they are reflective
of the Company’s core operating results. We believe the exclusion of share-based compensation from operating expenses
is useful given the variation in expense that can result from changes in the fair value of our common stock, the effect of
which is unrelated to the operational conditions that give rise to variations in the components of our operating costs. Also,
we believe the exclusion of the amortization of acquired intangible assets, the expenses related to acquisitions, the gain on
the sale of the crude oil joint venture interests (net of certain related operating) expenses and the executive non-renewal
charge are useful for purposes of evaluating operating performance of our core operating results and comparing them period
over period. We believe that these non-GAAP financial measures, when considered in conjunction with our financial
information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial
performance of the Company and to provide greater transparency as supplemental information to our GAAP results. Non-
GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared
in accordance with GAAP. In addition, our presentation of non-GAAP net income and non-GAAP diluted earnings per
common share may not be comparable to the presentation of such metrics by other companies. Non-GAAP diluted earnings
per common share is computed by dividing non-GAAP net income attributable to World Fuel and available to common
shareholders by the sum of the weighted average number of shares of common stock, stock units, restricted stock entitled
to dividends not subject to forfeiture and vested RSUs outstanding during the period and the number of additional shares
of common stock that would have been outstanding if our outstanding potentially dilutive securities had been issued.
Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP
financial measures.
2013 compared to 2012
Revenue. Our revenue for 2013 was $41.6 billion, an increase of $2.6 billion, or 6.7%, as compared to 2012. Our revenue
during these periods was attributable to the following segments (in thousands):
2013 2012 $ Change
Aviation segment $ 16,087,611 $ 14,692,042 $ 1,395,569
Marine segment 14,790,342 14,750,425 39,917
Land segment 10,683,994 9,502,871 1,181,123
Total $ 41,561,947 $ 38,945,338 $ 2,616,609
Our aviation segment revenue for 2013 was $16.1 billion, an increase of $1.4 billion, or 9.5% as compared to 2012. Of the
increase in aviation segment revenue, $2.0 billion was due to increased volume attributable to new and existing customers,
which was partially offset by $0.6 billion due to a decrease in the average price per gallon sold as a result of lower average
jet fuel prices in 2013 as compared to 2012.
Our marine segment revenue for 2013 and 2012 was $14.8 billion. Of the increase in marine segment revenue, $0.5 billion
was due to increased volume attributable to new and existing customers, which was principally offset by a decrease in the
average price per metric ton sold as a result of lower average marine fuel prices in 2013 as compared to 2012.
Our land segment revenue for 2013 was $10.7 billion, an increase of $1.2 billion, or 12.4%, as compared to 2012. The
increase in land segment revenue was principally due to revenue from acquired businesses.
Gross Profit. Our gross profit for 2013 was $752.8 million, an increase of $79.3 million, or 11.8%, as compared to 2012.
Our gross profit during these periods was attributable to the following segments (in thousands):