World Fuel Services 2013 Annual Report Download - page 33

Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income for 2013 was $230.5 million,
an increase of $14.6 million, or 6.8%, as compared to 2012. Non-GAAP diluted earnings per common share for 2013 was $3.22 per
common share, an increase of $0.21 per common share, or 7.0%, as compared to 2012. The following table sets forth the
reconciliation between our net income and non-GAAP net income for 2013 and 2012 (in thousands):
2013 2012
Net income attributable to World Fuel $203,075 $189,345
Share-based compensation expense, net of income taxes of $5,534 and $4,442 for 2013 and 2012,
respectively 11,182 9,637
Intangible asset amortization expense, net of income taxes of $8,128 and $4,090 for 2013 and 2012,
respectively 14,448 14,037
Expenses related to certain acquisitions, net of income taxes of $1,574 for 2012* 1,822 2,924
Non-GAAP net income attributable to World Fuel $230,527 $215,943
* The expenses incurred in 2013 relate to the anticipated 2014 acquisition of Watson Petroleum Limited. The 2012 expenses relate to
the acquisition of the Multi Service business.
The following table sets forth the reconciliation between our diluted earnings per common share and our non-GAAP diluted earnings
per common share for 2013 and 2012:
2013 2012
Diluted earnings per common share $2.83 $2.64
Share-based compensation expense, net of income taxes 0.16 0.13
Intangible asset amortization expense, net of income taxes 0.20 0.20
Expenses related to certain acquisitions net of income taxes* 0.03 0.04
Non-GAAP diluted earnings per common share $3.22 $3.01
* The expenses incurred in 2013 relate to the anticipated 2014 acquisition of Watson Petroleum Limited. The 2012 expenses relate to
the acquisition of the Multi Service business.
The non-GAAP financial measures exclude costs associated with share based compensation, amortization of acquired intangible
assets and expenses related to certain acquisitions 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, as well as the expenses related to the anticipated acquisition of Watson Petroleum Limited and the
acquisition of the Multi Service business, are 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 diluted earnings per common share may not be
comparable to the presentation of such metrics by other companies. Non-GAAP diluted earnings per common share is computed by
dividing non-GAAP net income attributable to World Fuel and available to common shareholders by the sum of the weighted average
number of shares of common stock, stock units, restricted stock entitled to dividends not subject to forfeiture and vested RSUs
outstanding during the period and the number of additional shares of common stock that would have been outstanding if our
outstanding potentially dilutive securities had been issued. Investors are encouraged to review the reconciliation of these non-GAAP
measures to their most directly comparable GAAP financial measures.
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