World Kinect(US:WKC)2024-10-25 15:57PART I. Financial Information This section provides comprehensive financial data, including unaudited statements, management's discussion, market risk disclosures, and controls and procedures Item 1. Financial Statements (Unaudited) Presents unaudited consolidated financial statements: balance sheets, income statements, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheet Summary | Metric | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | Change (Millions $) | | :----- | :------------------------ | :------------------------ | :------------------ | | Total Assets | 6,984.6 | 7,375.3 | (390.7) | | Total Liabilities | 4,933.6 | 5,425.7 | (492.1) | | Total Equity | 2,051.0 | 1,949.6 | 101.4 | Condensed Consolidated Statements of Income and Comprehensive Income This section outlines the company's financial performance, including revenue, gross profit, operating income, and net income over specified periods Condensed Consolidated Statements of Income and Comprehensive Income Summary | Metric | 3 Months Ended Sep 30, 2024 (Millions $) | 3 Months Ended Sep 30, 2023 (Millions $) | 9 Months Ended Sep 30, 2024 (Millions $) | 9 Months Ended Sep 30, 2023 (Millions $) | | :----- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | 10,490.9 | 12,245.3 | 32,407.5 | 35,707.6 | | Gross Profit | 268.1 | 281.4 | 767.5 | 825.8 | | Income from Operations | 72.3 | 73.3 | 180.7 | 213.3 | | Net Income Attributable to World Kinect | 33.5 | 34.9 | 169.2 | 87.7 | | Basic EPS | 0.57 | 0.58 | 2.84 | 1.42 | | Diluted EPS | 0.57 | 0.58 | 2.82 | 1.41 | Condensed Consolidated Statements of Shareholders' Equity This section details changes in shareholders' equity, including common shares, retained earnings, and comprehensive income components Condensed Consolidated Statements of Shareholders' Equity Summary | Metric | Dec 31, 2023 (Millions $) | Sep 30, 2024 (Millions $) | | :----- | :------------------------ | :------------------------ | | Common Shares | 59.8 | 58.1 | | Common Stock Amount | 0.6 | 0.6 | | Capital in Excess of Par Value | 109.6 | 64.3 | | Retained Earnings | 1,981.6 | 2,120.6 | | Accumulated Other Comprehensive Income (Loss) | (148.9) | (141.1) | | Total World Kinect Shareholders' Equity | 1,943.0 | 2,044.4 | - Net income for the nine months ended September 30, 2024, was $169.1 million, contributing to the increase in retained earnings7 - Cash dividends declared totaled $28.6 million for the nine months ended September 30, 20247 Condensed Consolidated Statements of Cash Flows This section reports cash inflows and outflows from operating, investing, and financing activities over specified periods Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Category | 9 Months Ended Sep 30, 2024 (Millions $) | 9 Months Ended Sep 30, 2023 (Millions $) | Change (Millions $) | | :----------------- | :--------------------------------------- | :--------------------------------------- | :------------------ | | Operating Activities | 139.6 | 266.8 | (127.2) | | Investing Activities | 98.9 | (77.4) | 176.3 | | Financing Activities | (162.6) | (140.4) | (22.2) | | Net Increase (Decrease) in Cash | 69.5 | 37.2 | 32.3 | | Cash and Cash Equivalents, End of Period | 373.8 | 335.6 | 38.2 | - Proceeds from the sale of business (Avinode) contributed $200.1 million to investing activities in 202411 Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations of accounting policies, financial instruments, segment performance, and other critical financial information Note 1. Basis of Presentation, New Accounting Standards, and Significant Accounting Policies This note describes the company's business, the basis of financial statement presentation, and recently adopted or issued accounting standards - World Kinect Corporation is a global energy management company providing fulfillment and related services across aviation, marine, and land-based transportation sectors, and supplies natural gas and power1371 - ASU 2023-07 (Segment Reporting) is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 202414 - ASU 2023-09 (Income Taxes) is effective for fiscal years beginning after December 15, 202416 Note 2. Accounts Receivable This note provides details on accounts receivable, including net balances, allowance for credit losses, and activities related to receivables purchase agreements Accounts Receivable Balances | Metric | Sep 30, 2024 (Millions $) | Dec 31, 2023 (Millions $) | | :----- | :------------------------ | :------------------------ | | Accounts Receivable, net | 2,476.1 | 2,735.5 | | Allowance for Credit Losses | 21.5 | 20.8 | - 97% of accounts receivable were outstanding less than 60 days as of September 30, 202419 Receivables Purchase Agreement Activity | RPA Activity | 9 Months Ended Sep 30, 2024 (Millions $) | 9 Months Ended Sep 30, 2023 (Millions $) | | :----------- | :--------------------------------------- | :--------------------------------------- | | Receivables Sold | 8,900 | 7,700 | | Fees Recognized | 29.5 | 30.7 | Note 3. Acquisitions and Divestitures This note details significant acquisition and divestiture activities, including the sale of the Avinode Group and its financial impact - Sale of Avinode Group and aviation FBO software products completed on May 1, 202423 Avinode Group Divestiture Financial Impact | Metric | Amount (Millions $) | | :----- | :------------------ | | Cash Proceeds (net of cash sold) | 200.1 | | Pre-tax Gain on Sale | 96.0 | | Related Tax Expense | 11.2 | Note 4. Goodwill This note presents the carrying amounts of goodwill by segment and explains changes, including adjustments from divestitures Goodwill by Segment | Segment | Dec 31, 2023 (Millions $) | Sep 30, 2024 (Millions $) | Change (Millions $) | | :------ | :------------------------ | :------------------------ | :------------------ | | Aviation | 398.3 | 337.0 | (61.3) | | Land | 839.7 | 844.7 | 5.0 | | Total Goodwill | 1,238.0 | 1,181.7 | (56.3) | - Goodwill adjustment for the Avinode sale was $(59.5) million24 Note 5. Derivative Instruments This note describes the company's use of derivative instruments to manage exposures to commodity prices, foreign currency, and interest rate risks - Derivative instruments are used to hedge risks related to commodity prices, foreign currency exchange rates, and interest rates26 Notional Value of Derivative Instruments | Derivative Type | Notional Value (Millions $) as of Sep 30, 2024 | | :-------------- | :--------------------------------------------- | | Commodity contracts (Long) | 84.5 | | Commodity contracts (Short) | (87.2) | | Foreign currency contracts (Sell USD, buy other) | (757.1) | | Foreign currency contracts (Buy USD, sell other) | 821.8 | | Interest rate swap | 300.