World Fuel Services 2012 Annual Report Download - page 46

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Our marine segment revenue for 2012 was $14.8 billion, an increase of $0.2 billion, or 1.3%, as
compared to 2011. The increase in marine segment revenue was principally due to an increase in the
average price per metric ton sold as a result of higher world oil prices in 2012 as compared to 2011.
Our land segment revenue for 2012 was $9.5 billion, an increase of $2.3 billion, or 32.1%, as compared
to 2011. The increase in land segment revenue was due to $0.7 billion attributable to the inclusion of
revenue from acquired businesses, $0.7 billion in increased volume attributable to crude oil marketing
activities and $0.6 billion in increased volume attributable to new and existing customers. The remaining
$0.3 billion increase was due to an increase in the average price per gallon sold as a result of higher world
oil prices in 2012 as compared to 2011.
Gross Profit. Our gross profit for 2012 was $673.4 million, an increase of $38.4 million, or 6.1%, as
compared to 2011. Our gross profit during these periods was attributable to the following segments (in
thousands):
2011 $ Change
Aviation segment $294,601 $306,112 $(11,511)
Marine segment 208,028 195,109 12,919
Land segment 170,818 133,782 37,036
Total $673,447 $635,003 $ 38,444
Our aviation segment gross profit for 2012 was $294.6 million, a decrease of $11.5 million, or 3.8%, as
compared to 2011. The decrease in aviation segment gross profit was due to $8.9 million in lower gross
profit per gallon sold in our physical inventory business as a result of the volatility, timing and direction of
jet fuel price movements in 2012 as compared to 2011. The remaining decrease in aviation gross profit
of $2.6 million was principally due to fluctuations in customer mix.
Our marine segment gross profit for 2012 was $208.0 million, an increase of $12.9 million, or 6.6%, as
compared to 2011. The increase in marine segment gross profit was principally due to higher gross profit
per metric ton sold due to fluctuations in customer mix.
Our land segment gross profit for 2012 was $170.8 million, an increase of $37.0 million, or 27.7%, as
compared to 2011. Of the increase in land segment gross profit, $30.3 million was due to gross profit
from acquired businesses and $23.2 million was due to increased volume attributable to crude oil
marketing activities, which were partially offset by a decrease in land segment gross profit of
$16.5 million principally due to fluctuations in customer mix.
Operating Expenses. Total operating expenses for 2012 were $416.4 million, an increase of
$38.4 million, or 10.2%, as compared to 2011. The following table sets forth our expense categories (in
thousands):
2011 $ Change
Compensation and employee benefits $237,362 $215,275 $22,087
Provision for bad debt 4,790 8,173 (3,383)
General and administrative 174,272 154,583 19,689
Total $416,424 $378,031 $38,393
The $22.1 million increase in compensation and employee benefits was due to $13.5 million in increased
expenses to support our growing global business and $8.6 million related to the inclusion of expenses
from acquired businesses. We had a lower increase in our accounts receivable balance in 2012 as
compared to 2011, resulting in a $3.4 million decrease in provision for bad debt in 2012. The $19.7 million
increase in general and administrative expenses was due to $10.3 million related to the inclusion of
expenses from acquired businesses, $4.9 million in increased expenses to support our growing global
business and $4.5 million in expenses related to the acquisition of the Multi Service business in
December 2012.
27
2012
2012