World Fuel Services 2012 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2012 World Fuel Services annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Our debt consisted of the following (in thousands):
As of December 31,
2011
Credit Facility and Term Loans $348,000 $250,000
Acquisition promissory notes 25,878 30,554
Other 6,440 6,594
Total debt 380,318 287,148
Current maturities of long-term debt 26,065 17,800
Long-term debt $354,253 $269,348
The acquisition promissory notes are payable in varying amounts from April 2013 to December 2014 and
bear interest at annual rates ranging from 1.4% to 6.0% as of December 31, 2012. The other debt
primarily relates to loans payable to noncontrolling shareholders of a consolidated subsidiary and capital
leases which are payable in varying amounts from April 2013 to December 2016 and bear interest at
annual rates ranging from 2.3% to 6.3% as of December 31, 2012. The weighted average interest rate
on our short-term debt was 2.4% and 2.5% as of December 31, 2012 and 2011, respectively.
As of December 31, 2012, the aggregate annual maturities of debt are as follows (in thousands):
Year Ended December 31,
2013 $ 26,065
2014 24,848
2015 18,202
2016 311,203
$380,318
The following table provides additional information about our interest income and expense and other
financing costs, net (in thousands):
2011 2010
Interest income $ 908 $ 788 $ 714
Interest expense and other financing costs (20,005) (16,613) (5,459)
$(19,097) $(15,825) $(4,745)
7. Shareholders’ Equity
Dividends
We declared cash dividends of $0.15 per share of common stock for 2012, 2011 and 2010. Our Credit
Facility and Term Loans restrict the payment of cash dividends to a maximum of the sum of
(i) $50.0 million plus (ii) 50% of the consolidated net income calculated quarterly for the previous four
fiscal quarters plus (iii) 100% of the net proceeds of all equity issuances made after the closing date of
the Credit Facility and Term Loans. The payment of the above-referenced dividends was in compliance
with the Credit Facility and Term Loans.
Issuance of Common Stock
In September 2010, we completed a public offering of 9.2 million shares of our common stock at a price
of $25.00 per share of common stock. We received net proceeds of $218.8 million from the offering,
after deducting $10.4 million in commissions paid to the underwriters and an estimated $0.8 million in
other expenses incurred in connection with the offering.
Stock Repurchase Programs
Our Board of Directors, from time to time, has authorized stock repurchase programs under the terms of
which we may repurchase our common stock, subject to certain restrictions contained in our Credit
Facility and Term Loans. We did not repurchase any shares of common stock under any stock
repurchase program in 2012, 2011 or 2010. As of December 31, 2012, we have $50.0 million available to
repurchase shares under our stock repurchase program.
69
2012
2012