World Fuel Services 2011 Annual Report Download - page 52

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Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. The following table sets
forth the reconciliation between our net income and our non-GAAP net income for 2011 and 2010 (in
thousands):
2010
Net income $194,029 $146,865
Share-based compensation expense, net of taxes 7,558 7,111
Intangible asset amortization expense, net of taxes 19,546 6,739
Non-GAAP net income $221,133 $160,715
The following table sets forth the reconciliation between our diluted earnings per common share and our
non-GAAP diluted earnings per common share for 2011 and 2010:
2010
Diluted earnings per common share $2.71 $2.31
Share-based compensation expense, net of taxes 0.11 0.11
Intangible asset amortization expense, net of taxes 0.27 0.11
Non-GAAP diluted earnings per common share $3.09 $2.53
The non-GAAP financial measures exclude costs associated with share-based compensation and
amortization of acquired intangible assets, 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 is 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 earnings per common share may not be comparable to the presentation of such metrics
by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measure.
2010 compared to 2009
Revenue. Our revenue for 2010 was $19.1 billion, an increase of $7.8 billion, or 69.4%, as compared to
2009. Our revenue during these periods was attributable to the following segments (in thousands):
2010 2009 $ Change
Aviation segment $ 7,132,749 $ 4,049,565 $3,083,184
Marine segment 9,220,998 6,040,643 3,180,355
Land segment 2,777,400 1,204,969 1,572,431
Total $19,131,147 $11,295,177 $7,835,970
Our aviation segment contributed $7.1 billion in revenue for 2010, an increase of $3.1 billion, or 76.1% as
compared to 2009. Of the total increase in aviation segment revenue, $1.7 billion was primarily due to
increased sales volume from both new and existing customers. The remaining increase of $1.4 billion
was due to an increase in the average price per gallon sold as a result of higher world oil prices in 2010 as
compared to 2009.
Our marine segment contributed $9.2 billion in revenue for 2010, an increase of $3.2 billion, or 52.6%, as
compared to 2009. Of the total increase in marine segment revenue, $2.2 billion was due to an increase
in the average price per metric ton sold as a result of higher world oil prices in 2010 compared to 2009.
The remaining increase of $1.0 billion was primarily due to increased sales volume from both new and
existing customers.
28
2011
2011