World Fuel Services 2014 Annual Report Download - page 33

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2013 2012 $ Change
Aviation segment $ 327,178 $ 294,601 $ 32,577
Marine segment 177,052 208,028 (30,976)
Land segment 248,528 170,818 77,710
Total $ 752,758 $ 673,447 $ 79,311
Our aviation segment gross profit for 2013 was $327.2 million, an increase of $32.6 million, or 11.1%, as compared to 2012.
Of the increase in aviation segment gross profit, $28.6 million was due to increased volume attributable to new and existing
customers and $10.9 million was due to gross profit from acquired businesses. These increases were partially offset by
$6.9 million in lower gross profit per gallon sold principally due to fluctuations in customer mix.
Our marine segment gross profit for 2013 was $177.1 million, a decrease of $31.0 million, or 14.9%, as compared to 2012.
Of the decrease in marine segment gross profit, $37.6 million was due to decreased gross profit per metric ton sold
principally due to limited price volatility in 2013 and fluctuations in customer mix. This decrease was partially offset by
$6.6 million due to increased volume attributable to new and existing customers.
Our land segment gross profit for 2013 was $248.5 million, an increase of $77.7 million, or 45.5%, as compared to 2012.
The increase in land segment gross profit was principally due to gross profit from acquired businesses.
Operating Expenses. Total operating expenses for 2013 were $488.4 million, an increase of $72.0 million, or 17.3%, as
compared to 2012. The following table sets forth our expense categories (in thousands):
2013 2012 $ Change
Compensation and employee benefits $ 288,021 $ 237,362 $ 50,659
Provision for bad debt 11,745 4,790 6,955
General and administrative 188,634 174,272 14,362
Total $ 488,400 $ 416,424 $ 71,976
The $50.7 million increase in compensation and employee benefits was principally due to the inclusion of expenses from
acquired businesses. The $7.0 million increase in provision for bad debt was principally due to an overall increase in the
accounts receivable balance in 2013 as compared to 2012 and additional reserves for specific customers. The $14.4 million
increase in general and administrative expenses was due to $26.2 million related to the inclusion of expenses from acquired
businesses, which was partially offset by $11.8 million in decreased expenses due to efforts to drive greater operational
efficiencies.
Income from Operations. Our income from operations for 2013 was $264.4 million, an increase of $7.3 million, or 2.9%, as
compared to 2012. Income from operations during these periods was attributable to the following segments (in thousands):
2013 2012 $ Change
Aviation segment $ 150,886 $ 128,153 $ 22,733
Marine segment 73,770 103,229 (29,459)
Land segment 84,767 75,291 9,476
309,423 306,673 2,750
Corporate overhead – unallocated 45,065 49,650 (4,585)
Total $ 264,358 $ 257,023 $ 7,335
Our aviation segment income from operations for 2013 was $150.9 million, an increase of $22.7 million, or 17.7%, as
compared to 2012. This increase resulted from $32.6 million in higher gross profit, which was partially offset by $9.9 million
in increased operating expenses attributable to the inclusion of acquired businesses.
Our marine segment income from operations for 2013 was $73.8 million, a decrease of $29.5 million, or 28.5%, as compared
to 2012. This decrease principally resulted from $31.0 million in lower gross profit.
Our land segment income from operations for 2013 was $84.8 million, an increase of $9.5 million, or 12.6%, as compared
to 2012. This increase resulted from $77.7 million in higher gross profit, which was partially offset by increased operating
expenses of $68.2 million. Of the increase in land segment operating expenses, $67.1 million was related to the inclusion
of acquired businesses.