Economic and Market Conditions - Significant inflation in the U.S. and other jurisdictions has increased costs, potentially impacting financial results if costs rise faster than revenue[104] - The company faces intense competition from large multinational corporations and specialized firms, which may lead to a loss of market share or reduced prices[105] - The company relies on a limited number of suppliers for fuel and related products, which may affect its business if suppliers do not provide favorable terms[106] Regulatory and Compliance Risks - Climate change regulations and GHG emissions monitoring could significantly impact business operations and financial results[109] - The Inflation Reduction Act (IRA) imposes a fee on GHG emissions and provides funding for renewable energy, potentially affecting the use of petroleum-based fuels[111] - Increasing focus on ESG issues may lead to higher operational costs and compliance requirements, impacting the company's reputation and financial performance[121] - The company is subject to extensive environmental laws and regulations, which can result in significant liabilities and increased operating costs[124] - Compliance with evolving data privacy and protection laws may increase operational costs and expose the company to regulatory penalties[126] - The evolving nature of privacy laws in the U.S., E.U., and other jurisdictions may require costly changes to IT systems for data handling[127] - Non-compliance with data privacy regulations could lead to substantial fines, penalties, and adverse effects on business reputation and financial condition[128] - International operations are subject to anti-corruption laws, which may impose significant compliance costs and expose the company to civil and criminal penalties[129] - The company operates in countries with high corruption risks, increasing the likelihood of improper payments and enforcement actions[130] - Economic sanctions and international trade controls restrict business dealings with certain countries, impacting operations and compliance costs[131] - The company has established policies to comply with laws and regulations, but violations could lead to severe penalties and affect financial stability[134] Operational Risks - The company faces risks related to pandemics and infectious diseases, which could adversely impact operations and financial condition[135] Financial Instruments and Valuation - The notional and fair market values of commodity-based derivative instruments as of December 31, 2024, were $88.9 million and $122.7 million, respectively[238] - The total fair value of foreign currency exchange derivative contracts was a net asset of $6.2 million as of December 31, 2024[241] - A hypothetical 10% change in exchange rates is not expected to materially impact income from operations[239] - As of December 31, 2024, the company had a $455.3 million Term Loan with applicable margins of 0.875% for base rate loans and 1.875% for Eurodollar rate loans[242] - The aggregate outstanding balance of finance lease obligations was $29.9 million, with interest rates ranging from 2.6% to 7.2%[242] - The company entered into a $300 million Eurodollar floating-for-fixed interest rate swap, locking in a pay rate of 0.435%[243] - A fluctuation of 100 basis points in the interest rate would result in a $10.4 million change in interest expense over the next twelve months[244] - The fair value of the interest rate swap contract was $2.9 million as of December 31, 2024[244] - The fair value of outstanding Convertible Notes is influenced by the company's common stock price, which can increase or decrease their value[245] - Upon conversion of Convertible Notes, the company can settle in cash, shares, or a combination, potentially affecting market prices of its common stock[246] - The company entered into convertible note hedge transactions to reduce potential dilution upon conversion of the notes[247] - Warrant transactions related to the Convertible Notes could have a dilutive effect if the market price exceeds the strike price[247]

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [2] Group 2 - World Kinect (WKC) has shown a four-week price change of 6.8%, indicating growing investor interest and positioning it as a strong candidate for momentum investing [3] - WKC has gained 6.2% over the past 12 weeks and has a beta of 1.27, suggesting it moves 27% more than the market, indicating strong momentum [4] - WKC holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential gains [5] Group 3 - WKC has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors and drive prices higher [6] - The stock is trading at a Price-to-Sales ratio of 0.04, indicating it is undervalued, as investors pay only 4 cents for each dollar of sales [6] - WKC appears to have significant growth potential while maintaining a reasonable valuation, making it an attractive investment option [7] Group 4 - In addition to WKC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Various Zacks Premium Screens are available to help investors find winning stock picks based on different investing styles [8]

Financial Data and Key Metrics Changes - The company reported a consolidated fourth quarter total volume of 4.5 billion gallons, down 1% year-over-year, and a full year volume of 17.7 billion gallons, down approximately 2% [22] - Consolidated adjusted gross profit for the fourth quarter was $259 million, an 8% decline from the previous year, while the full year adjusted gross profit was $1.03 billion, down 7% from 2023 [22][23] - Adjusted consolidated operating expenses were $197 million in the fourth quarter, down 5% year-over-year, and for the full year, adjusted operating expenses were $773 million, a 6% decrease from 2023 [31][32] Business Line Data and Key Metrics Changes - **Aviation**: Fourth quarter aviation volume was 1.8 billion gallons, up 4% year-over-year, while full year aviation volume was 7.3 billion gallons, down 1% [24] - **Land**: Fourth quarter land volumes decreased 5% year-over-year, with adjusted gross profit of $104 million, effectively flat compared to 2023. Full year land adjusted gross profit was $384 million, down 14% year-over-year [27][28] - **Marine**: Fourth quarter marine volumes were down 4% year-over-year, with gross profit decreasing approximately 22%. For the full year, marine gross profit was down 9% year-over-year [29] Market Data and Key Metrics Changes - Natural gas and power volumes represented 40% of total volume in the fourth quarter, up from 37% in the same period of 2023 [27] - The company experienced unfavorable market conditions in Brazil and the UK, contributing to lower profit contributions from natural gas and power businesses [28] Company Strategy and Development Direction - The company is focused on efficient capital allocation and operational efficiencies, with a commitment to enhancing shareholder returns through share repurchases and dividends [10][14] - A key strategic move was the divestiture of the Brazilian business, which was underperforming and subject to significant earnings volatility [12][18] - The company aims to streamline its land operations and is committed to shedding underperforming activities while reallocating capital to improve financial returns [13][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium-term financial targets, particularly in operating margin and free cash flow, despite challenges in certain segments [9][14] - The company anticipates further improvements in land gross profit as the year progresses, driven by core business activities in North America [28][80] - Management highlighted the importance of focusing on the U.S. market, which is seen as a significant growth opportunity [60] Other Important Information - The company generated operating cash flow of $120 million in the fourth quarter and $260 million for the full year, aligning with long-term cash flow targets [36] - Total capital allocated to share repurchases and dividends was $139 million for the full year, representing a 47% increase year-over-year [38] Q&A Session Summary Question: Can you describe the Brazil sale and the North American businesses that were shed? - Management indicated that the Brazilian business was small but volatile, generating close to zero gross profit. The U.S. business included a poorly performing heating oil segment that was restructured to improve profitability [47][49][56] Question: What is the scale of the revenue shed from Brazil and the U.S.? - The revenue from Brazil was negligible, with net revenue close to zero. The U.S. business also had minimal revenue, focusing more on shedding expenses [56][57] Question: Are there further opportunities to refine the business? - Management noted that there are still one or two opportunities to eliminate underperforming activities that do not contribute significantly to profitability [58][59] Question: What are the drivers of gross profit growth in the land segment for Q1? - Expected improvements in the core cardlock and retail businesses in North America, along with a slight improvement in natural gas profitability, were highlighted as key drivers [80]

World Kinect (WKC) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.23%. A quarter ago, it was expected that this company that services ships, jets and trucks would post earnings of $0.62 per share when it actually produced earnings of $0.62, delivering no surprise.Over the last fou ...

Q4 2024 Earnings Call February 20, 2025 www.world-kinect.com Copyright © 2025 World Kinect Corporation. All rights reserved. Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Kinect's actual results to materially differ from the forward-looking in ...

Financial Performance - Gross profit for Q4 2024 was $259 million, an 11% increase year-over-year[4] - GAAP net loss for Q4 2024 was $102 million, or $1.77 per diluted share, compared to a loss of $35 million in Q4 2023[6] - Adjusted net income for Q4 2024 was $36 million, or $0.62 per diluted share, a 15% increase from $0.54 per diluted share in Q4 2023[6] - Full year 2024 revenue decreased by 12% to $42.168 billion from $47.711 billion in 2023[6] - Adjusted EBITDA for Q4 2024 was $95 million, a 5% decrease from $100 million in Q4 2023[6] - Gross profit for the year ended December 31, 2024, was $1,026.4 million, down from $1,058.2 million in 2023, reflecting a gross margin of 2.4%[22] - Net loss attributable to World Kinect for the year ended December 31, 2024, was $67.4 million, compared to a net income of $52.9 million in 2023[22] - Basic earnings per share for the year ended December 31, 2024, was $(1.14), a decline from $0.86 in 2023[22] - Total revenue for Q4 2024 was $9,760.5 million, a decrease of 18.5% from $12,002.9 million in Q4 2023[27] - The total income from operations for the year ended December 31, 2024, was $210.6 million, compared to $198.0 million in 2023, reflecting a 6.6% increase[27] Cash Flow and Liquidity - Operating cash flow generated in 2024 was $260 million, with $139 million returned to shareholders through dividends and share repurchases, reflecting a 47% year-over-year increase[7] - Free cash flow for 2024 was $192 million, indicating strong cash generation capabilities[7] - Cash and cash equivalents increased to $382.9 million as of December 31, 2024, from $304.3 million in 2023, an increase of 25.8%[20] - The company reported a net cash provided by operating activities of $120.3 million for Q4 2024, compared to $4.5 million in Q4 2023[24] - Free cash flow for the three months ended December 31, 2024, was $102.4 million, significantly improved from $(15.2) million in the same period of 2023[35] Segment Performance - Gross profit in the Land segment increased by 83% year-over-year, primarily due to a non-recurring item in Q4 2023[4] - The Aviation segment reported a gross profit of $120 million, an 8% decrease year-over-year[4] - The Aviation segment reported revenue of $4,737.8 million in Q4 2024, down 19.3% from $5,874.3 million in Q4 2023[27] - The Land segment's revenue decreased to $2,951.1 million in Q4 2024, down 19.6% from $3,672.8 million in Q4 2023[27] - The Marine segment's revenue decreased to $2,071.7 million in Q4 2024, down 15.6% from $2,455.8 million in Q4 2023[27] Assets and Liabilities - Total current assets decreased to $3,959.2 million as of December 31, 2024, from $4,503.8 million in 2023, a reduction of 12.1%[20] - Total liabilities decreased to $4,775.8 million as of December 31, 2024, from $5,425.7 million in 2023, a decline of 11.9%[20] - Retained earnings increased to $2,009.2 million as of December 31, 2024, compared to $1,981.6 million in 2023, an increase of 1.4%[20] - Total equity for World Kinect increased slightly to $1,955.9 million as of December 31, 2024, from $1,949.6 million in 2023[20] Other Financial Metrics - The company recorded a one-time, non-cash pre-tax loss of approximately $111 million due to the sale of its Brazil subsidiaries[4] - Comprehensive income for the year ended December 31, 2024, was $(51.7) million, compared to $(13.2) million in 2023, indicating a significant decline[22] - The company experienced a significant unrealized loss on derivatives of $7.1 million in Q4 2024, compared to a loss of $75.8 million in Q4 2023[24] - The total depreciation and amortization expense for the year ended December 31, 2024, was $106.4 million, compared to $104.5 million in 2023[33] - Interest expense and other financing costs for the year ended December 31, 2024, totaled $102.2 million, down from $127.7 million in 2023[33] Strategic Initiatives - The company expects to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[34]

The upcoming report from World Kinect (WKC) is expected to reveal quarterly earnings of $0.55 per share, indicating an increase of 1.9% compared to the year-ago period. Analysts forecast revenues of $10.56 billion, representing a decrease of 12% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 13.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this time ...

Core Insights - The article compares World Kinect (WKC) and Ormat Technologies (ORA) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - WKC has a forward P/E ratio of 11.16, while ORA has a forward P/E of 29.71, indicating WKC is potentially undervalued [5] - WKC's PEG ratio is 0.92, suggesting a favorable valuation relative to its expected earnings growth, whereas ORA's PEG ratio is 2.97 [5] - WKC has a P/B ratio of 0.80, compared to ORA's P/B of 1.53, further supporting WKC's valuation attractiveness [6] Earnings Outlook - WKC is noted for having an improving earnings outlook, which enhances its appeal in the Zacks Rank model [7]

Core Insights - The article compares World Kinect (WKC) and TC Energy (TRP) to determine which stock offers better value for investors [1] - A strong Zacks Rank combined with a good Value grade is highlighted as an effective strategy for identifying value stocks [2] Valuation Metrics - WKC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while TRP has a Zacks Rank of 3 (Hold) [3] - WKC's forward P/E ratio is 11.53, significantly lower than TRP's forward P/E of 17.95 [5] - WKC's PEG ratio is 0.95, compared to TRP's PEG ratio of 4.49, suggesting WKC is more favorably valued in terms of expected earnings growth [5] - WKC's P/B ratio is 0.81, while TRP's P/B ratio is 1.77, indicating WKC is undervalued relative to its book value [6] - These metrics contribute to WKC receiving a Value grade of A, whereas TRP has a Value grade of C [6] Conclusion - WKC exhibits stronger estimate revision activity and more attractive valuation metrics than TRP, making it the preferred choice for value investors at this time [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach may involve investing in bargain stocks that have recently shown price momentum [2] Group 2: World Kinect (WKC) Stock Analysis - World Kinect (WKC) has a four-week price change of 3.8%, indicating growing investor interest [3] - WKC gained 6.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.28, suggesting it moves 28% higher than the market in either direction [4] Group 3: Valuation and Earnings Estimates - WKC has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - WKC is trading at a Price-to-Sales ratio of 0.04, meaning investors pay only 4 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides WKC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]