World Fuel Services 2012 Annual Report Download - page 49

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Our aviation segment revenue for 2011 was $12.9 billion, an increase of $5.7 billion, or 80.4% as
compared to 2010. Of the total increase in aviation segment revenue, $3.3 billion was due to an increase
in the average price per gallon sold as a result of higher world oil prices in 2011 as compared to 2010. Of
the remaining increase, $1.3 billion was due to incremental sales derived from the NCS, Ascent, Hiller
and Western acquisitions and $1.1 billion was due to increased sales volume from additional sales to
both new and existing customers.
Our marine segment revenue for 2011 was $14.6 billion, an increase of $5.3 billion, or 58.0%, as
compared to 2010. Of the total increase in marine segment revenue, $3.8 billion was due to an increase
in the average price per metric ton sold as a result of higher world oil prices in 2011 as compared to 2010.
The remaining increase of $1.5 billion was due to increased sales volume from additional sales to both
new and existing customers.
Our land segment revenue for 2011 was $7.2 billion, an increase of $4.4 billion, as compared to 2010. Of
the total increase in land segment revenue, $1.9 billion was due to incremental sales derived as a result
of the Western and Lakeside business acquisitions and $0.8 billion was due to increased sales volume to
both new and existing customers. The remaining increase of $1.7 billion was due to an increase in the
average price per gallon sold as a result of higher world oil prices in 2011 as compared to 2010.
Gross Profit. Our gross profit for 2011 was $635.0 million, an increase of $192.9 million, or 43.6%, as
compared to 2010. Our gross profit during these periods was attributable to the following segments (in
thousands):
2011 2010 $ Change
Aviation segment $306,112 $215,130 $ 90,982
Marine segment 195,109 165,344 29,765
Land segment 133,782 61,667 72,115
Total $635,003 $442,141 $192,862
Our aviation segment gross profit for 2011 was $306.1 million, an increase of $91.0 million, or 42.3%, as
compared to 2010. The increase in aviation segment gross profit was due to $68.1 million in increased
sales volume and $22.9 million in increased gross profit per gallon sold principally as a result of sales
derived from the NCS, Ascent, Hiller and Western acquisitions.
Our marine segment gross profit for 2011 was $195.1 million, an increase of $29.8 million, or 18.0%, as
compared to 2010. The increase in marine segment gross profit was due to $28.0 million of increased
sales volume to both new and existing customers. The remaining increase of $1.8 million was due to
increased gross profit per metric ton sold primarily due to fluctuations in customer mix.
Our land segment gross profit for 2011 was $133.8 million, an increase of $72.1 million as compared to
2010. The increase in land segment gross profit was due to $53.4 million in increased sales volume and
$18.7 million in increased gross profit per gallon sold principally as a result of sales derived from the
Western and Lakeside business acquisitions, which were included in 2011 for a full year.
Operating Expenses. Total operating expenses for 2011 were $378.0 million, an increase of
$116.8 million, or 44.7%, as compared to 2010. The following table sets forth our expense categories (in
thousands):
2011 2010 $ Change
Compensation and employee benefits $215,275 $162,451 $ 52,824
Provision for bad debt 8,173 4,262 3,911
General and administrative 154,583 94,562 60,021
Total $378,031 $261,275 $116,756
Of the total increase in operating expenses, $52.8 million was related to compensation and employee
benefits, $3.9 million was related to provision for bad debt and $60.0 million was related to general and
administrative expenses. The $52.8 million increase in compensation and employee benefits was due to
$26.3 million related to the inclusion of expenses from acquired businesses and $26.5 million in
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