World Fuel Services 2013 Annual Report Download - page 36

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Non-GAAP Net Income and Non-GAAP Diluted Earnings per Common Share. Our non-GAAP net income for 2012 was $215.9 million, a
decrease of $5.2 million, or 2.3%, as compared to 2011. Non-GAAP diluted earnings per common share for 2012 was $3.01 per
common share, a decrease of $0.08 per common share, or 2.6%, as compared to 2011. The following table sets forth the
reconciliation between our net income and our non-GAAP net income for 2012 and 2011 (in thousands):
2012 2011
Net income attributable to World Fuel $189,345 $194,029
Share-based compensation expense, net of income taxes of $4,442 and $3,480 for 2012 and 2011,
respectively 9,637 7,558
Intangible asset amortization expense, net of income taxes of $4,090 and $5,465 for 2012 and 2011,
respectively 14,037 19,546
Expenses related to the acquisition of the Multi Service business, net of income taxes of $1,574 2,924 —
Non-GAAP net income attributable to World Fuel $215,943 $221,133
The following table sets forth the reconciliation between our diluted earnings per common share and our non-GAAP diluted earnings
per common share for 2012 and 2011:
2012 2011
Diluted earnings per common share $2.64 $2.71
Share-based compensation expense, net of income taxes 0.13 0.11
Intangible asset amortization expense, net of income taxes 0.20 0.27
Expenses related to the acquisition of the Multi Service business, net of income taxes 0.04 —
Non-GAAP diluted earnings per common share $3.01 $3.09
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 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.
Liquidity and Capital Resources
Cash Flows
The following table reflects the major categories of cash flows for 2013, 2012 and 2011. For additional details, please see the
consolidated statements of cash flows in the consolidated financial statements.
2013 2012 2011
Net cash provided by (used in) operating activities $ 264,302 $ 145,791 $(142,536)
Net cash used in investing activities (174,560) (246,622) (144,632)
Net cash provided by financing activities 29,509 66,858 222,566
2013 compared to 2012
Operating Activities.For 2013, net cash provided by operating activities was $264.3 million as compared to $145.8 million for 2012. The
$118.5 million increase in operating cash flows was principally due to favorable year-over-year changes in working capital.
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