World Fuel Services 2014 Annual Report Download - page 35

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30
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.
Liquidity and Capital Resources
Cash Flows
The following table reflects the major categories of cash flows for 2014, 2013 and 2012. For additional details, please see
the consolidated statements of cash flows in the consolidated financial statements.
2014 2013 2012
Net cash provided by operating activities $ 141,160 $ 264,302 $ 145,791
Net cash used in investing activities (297,087) (174,560) (246,622)
Net cash provided by financing activities 169,515 29,509 66,858
2014 compared to 2013
Operating Activities. For 2014, net cash provided by operating activities was $141.2 million as compared to $264.3 million
for 2013. The $123.1 million decrease in operating cash flows was primarily due to unfavorable year-over-year changes in
assets and liabilities, net of acquisitions.
Investing Activities. For 2014, net cash used in investing activities was $297.1 million as compared to $174.6 million for
2013. The $122.5 million increase in cash used in investing activities was principally due to an increase in the cash used
for the acquisition of businesses in 2014 as compared to 2013.
Financing Activities. For 2014, net cash provided by financing activities was $169.5 million as compared to $29.5 million
for 2013. The $140.0 million increase in cash provided by financing activities was principally due to increased net borrowings
under our Credit Facility in 2014 as compared to 2013.
2013 compared to 2012
Operating Activities. For 2013, net cash provided by operating activities was $264.3 million as compared to $145.8 million
for 2012. The $118.5 million increase in operating cash flows was principally due to favorable year-over-year changes in
assets and liabilities, net of acquisitions.
Investing Activities. For 2013, net cash used in investing activities was $174.6 million as compared to $246.6 million for
2012. The $72.0 million decrease in cash used in investing activities was principally due to a $140.8 million reduction in
cash used for acquisitions and other investments in 2013 as compared to 2012, which was partially offset by a $54.3 million
increase in capital expenditures for the upgrade and expansion of certain inventory storage and crude oil transloading joint
venture facilities in 2013.
Financing Activities. For 2013, net cash provided by financing activities was $29.5 million as compared to $66.9 million for
2012. The $37.4 million decrease in cash provided by financing activities was principally due to purchases of common stock
of $35.0 million.
Other Liquidity Measures
Cash and Cash Equivalents. As of December 31, 2014 and 2013, we had cash and cash equivalents of $302.3 million and
$292.1 million, respectively. Our primary uses of cash and cash equivalents are to fund accounts receivable, purchase
inventory and make strategic investments, primarily acquisitions. We are usually extended unsecured trade credit from our
suppliers for our fuel purchases; however, certain suppliers require us to either prepay or provide a letter of credit. Increases
in oil prices can negatively affect liquidity by increasing the amount of cash needed to fund fuel purchases as well as
reducing the amount of fuel which we can purchase on an unsecured basis from our suppliers.
Credit Facility and Term Loans. On January 30, 2015, we amended our Credit Facility to, among other things, increase the
maximum availability under the Credit Facility from $1.10 billion to $1.26 billion and added a new $100.0 million term loan
facility to our existing Term Loans, for a total amount outstanding of $341.3 million. Under the Credit Facility, we have the
right to request increases in available borrowings up to an additional $150.0 million, subject to the satisfaction of certain