World Fuel Services 2012 Annual Report Download - page 48

Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income
for 2012 was $215.9 million, a decrease of $5.2 million, or 2.3%, as compared to 2011. Non-GAAP
diluted earnings per common share for 2012 was $3.01 per common share, a decrease of $0.08 per
common share, or 2.6%, as compared to 2011. The following table sets forth the reconciliation between
our net income and our non-GAAP net income for 2012 and 2011 (in thousands):
2011
Net income attributable to World Fuel $189,345 $194,029
Share-based compensation expense, net of income taxes of
$4,441 and $3,480 for 2012 and 2011, respectively 9,637 7,558
Intangible asset amortization expense, net of income taxes of
$4,090 and $5,465 for 2012 and 2011, respectively 14,037 19,546
Expenses related to the acquisition of the Multi Service
business, net of income taxes of $1,574 2,924 —
Non-GAAP net income attributable to World Fuel $215,943 $221,133
The following table sets forth the reconciliation between our diluted earnings per common share and our
non-GAAP diluted earnings per common share for 2012 and 2011:
2011
Diluted earnings per common share $2.64 $2.71
Share-based compensation expense, net of income taxes 0.13 0.11
Intangible asset amortization expense, net of income taxes 0.20 0.27
Expenses related to the acquisition of the Multi Service business,
net of income taxes 0.04 —
Non-GAAP diluted earnings per common share $3.01 $3.09
The non-GAAP financial measures exclude costs associated with share-based compensation,
amortization of acquired intangible assets and expenses related to the acquisition of the Multi Service
business 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 and
expenses related to the acquisition of the Multi Service business 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.
2011 compared to 2010
Revenue. Our revenue for 2011 was $34.6 billion, an increase of $15.5 billion, or 81.0%, as compared to
2010. Our revenue during these periods was attributable to the following segments (in thousands):
2011 2010 $ Change
Aviation segment $12,866,019 $ 7,132,749 $ 5,733,270
Marine segment 14,565,086 9,220,998 5,344,088
Land segment 7,191,749 2,777,400 4,414,349
Total $34,622,854 $19,131,147 $15,491,707
29
2012
2012