World Kinect(WKC) - 2024 Q4 - Annual Results

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]