World Fuel Services 2013 Annual Report Download - page 34

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2012 compared to 2011
Revenue. Our revenue for 2012 was $38.9 billion, an increase of $4.3 billion, or 12.5%, as compared to 2011. Our revenue during
these periods was attributable to the following segments (in thousands):
2012 2011 $ Change
Aviation segment $14,692,042 $12,866,019 $1,826,023
Marine segment 14,750,425 14,565,086 185,339
Land segment 9,502,871 7,191,749 2,311,122
Total $38,945,338 $34,622,854 $4,322,484
Our aviation segment revenue for 2012 was $14.7 billion, an increase of $1.8 billion, or 14.2% as compared to 2011. The increase in
aviation segment revenue was principally due to increased volume attributable to new and existing customers.
Our marine segment revenue for 2012 was $14.8 billion, an increase of $0.2 billion, or 1.3%, as compared to 2011. The increase in
marine segment revenue was principally due to an increase in the average price per metric ton sold as a result of higher world oil prices
in 2012 as compared to 2011.
Our land segment revenue for 2012 was $9.5 billion, an increase of $2.3 billion, or 32.1%, as compared to 2011. The increase in land
segment revenue was due to $0.7 billion attributable to the inclusion of revenue from acquired businesses, $0.7 billion in increased
volume attributable to crude oil marketing activities and $0.6 billion in increased volume attributable to new and existing customers.
The remaining $0.3 billion increase was due to an increase in the average price per gallon sold as a result of higher world oil prices in
2012 as compared to 2011.
Gross Profit. Our gross profit for 2012 was $673.4 million, an increase of $38.4 million, or 6.1%, as compared to 2011. Our gross profit
during these periods was attributable to the following segments (in thousands):
2012 2011 $ Change
Aviation segment $294,601 $306,112 $(11,511)
Marine segment 208,028 195,109 12,919
Land segment 170,818 133,782 37,036
Total $673,447 $635,003 $ 38,444
Our aviation segment gross profit for 2012 was $294.6 million, a decrease of $11.5 million, or 3.8%, as compared to 2011. The
decrease in aviation segment gross profit was due to $8.9 million in lower gross profit per gallon sold in our physical inventory business
as a result of the volatility, timing and direction of jet fuel price movements in 2012 as compared to 2011. The remaining decrease in
aviation gross profit of $2.6 million was principally due to fluctuations in customer mix.
Our marine segment gross profit for 2012 was $208.0 million, an increase of $12.9 million, or 6.6%, as compared to 2011. The
increase in marine segment gross profit was principally due to higher gross profit per metric ton sold due to fluctuations in customer
mix.
Our land segment gross profit for 2012 was $170.8 million, an increase of $37.0 million, or 27.7%, as compared to 2011. Of the
increase in land segment gross profit, $30.3 million was due to gross profit from acquired businesses and $23.2 million was due to
increased volume attributable to crude oil marketing activities, which were partially offset by a decrease in land segment gross profit of
$16.5 million principally due to fluctuations in customer mix.
Operating Expenses. Total operating expenses for 2012 were $416.4 million, an increase of $38.4 million, or 10.2%, as compared to
2011. The following table sets forth our expense categories (in thousands):
2012 2011 $ Change
Compensation and employee benefits $237,362 $215,275 $22,087
Provision for bad debt 4,790 8,173 (3,383)
General and administrative 174,272 154,583 19,689
Total $416,424 $378,031 $38,393
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