World Fuel Services 2013 Annual Report Download - page 31

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Results of Operations
The results of operations include the results of (i) the Multi Service business (aviation, marine, and land segments) commencing on
December 31, 2012, (ii) the CarterEnergy business (land segment) commencing on September 1, 2012, (iii) Ascent (aviation segment)
commencing on April 1, 2011 and (iv) NCS (aviation and land segments) commencing on March 1, 2011.
2013 compared to 2012
Revenue. Our revenue for 2013 was $41.6 billion, an increase of $2.6 billion, or 6.7%, as compared to 2012. Our revenue during these
periods was attributable to the following segments (in thousands):
2013 2012 $ Change
Aviation segment $16,087,611 $14,692,042 $1,395,569
Marine segment 14,790,342 14,750,425 39,917
Land segment 10,683,994 9,502,871 1,181,123
Total $41,561,947 $38,945,338 $2,616,609
Our aviation segment revenue for 2013 was $16.1 billion, an increase of $1.4 billion, or 9.5% as compared to 2012. Of the increase in
aviation segment revenue, $2.0 billion was due to increased volume attributable to new and existing customers, which was partially
offset by $0.6 billion due to a decrease in the average price per gallon sold as a result of lower average jet fuel prices in 2013 as
compared to 2012.
Our marine segment revenue for 2013 and 2012 was $14.8 billion. Of the increase in marine segment revenue, $0.5 billion was due to
increased volume attributable to new and existing customers, which was principally offset by a decrease in the average price per
metric ton sold as a result of lower average marine fuel prices in 2013 as compared to 2012.
Our land segment revenue for 2013 was $10.7 billion, an increase of $1.2 billion, or 12.4%, as compared to 2012. The increase in land
segment revenue was principally due to revenue from acquired businesses.
Gross Profit. Our gross profit for 2013 was $752.8 million, an increase of $79.3 million, or 11.8%, as compared to 2012. Our gross
profit during these periods was attributable to the following segments (in thousands):
2013 2012 $ Change
Aviation segment $327,178 $294,601 $ 32,577
Marine segment 177,052 208,028 (30,976)
Land segment 248,528 170,818 77,710
Total $752,758 $673,447 $ 79,311
Our aviation segment gross profit for 2013 was $327.2 million, an increase of $32.6 million, or 11.1%, as compared to 2012. Of the
increase in aviation segment gross profit, $28.6 million was due to increased volume attributable to new and existing customers and
$10.9 million was due to gross profit from acquired businesses. These increases were partially offset by $6.9 million in lower gross
profit per gallon sold principally due to fluctuations in customer mix.
Our marine segment gross profit for 2013 was $177.1 million, a decrease of $31.0 million, or 14.9%, as compared to 2012. Of the
decrease in marine segment gross profit, $37.6 million was due to decreased gross profit per metric ton sold principally due to limited
price volatility in 2013 and fluctuations in customer mix. This decrease was partially offset by $6.6 million due to increased volume
attributable to new and existing customers.
Our land segment gross profit for 2013 was $248.5 million, an increase of $77.7 million, or 45.5%, as compared to 2012. The increase
in land segment gross profit was principally due to gross profit from acquired businesses.
Operating Expenses. Total operating expenses for 2013 were $488.4 million, an increase of $72.0 million, or 17.3%, as compared to
2012. The following table sets forth our expense categories (in thousands):
2013 2012 $ Change
Compensation and employee benefits $288,021 $237,362 $50,659
Provision for bad debt 11,745 4,790 6,955
General and administrative 188,634 174,272 14,362
Total $488,400 $416,424 $71,976
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