World Kinect Corporation (NYSE:WKC) Q1 2024 Earnings Call Transcript

World Kinect Corporation (NYSE:WKC) Q1 2024 Earnings Call Transcript April 25, 2024

World Kinect Corporation misses on earnings expectations. Reported EPS is $0.47 EPS, expectations were $0.49. WKC isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Goo day and thank you for standing by. Welcome to World Kinect Corporation First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Elsa Ballard, Vice President of Investor Relations and Communication. Please go ahead.

Elsa Ballard: Good evening everyone and welcome to the World Kinect’s first quarter 2024 earnings conference call, which will be presented alongside our live slide presentation. Today’s presentation is also available via webcast on our Investor Relations' website. I'm Elsa Ballard, VP of Investor Relations and Communications. With me on the call today is Michael Kasbar, Chairman and Chief Executive Officer; and Ira Birns, Executive Vice President and Chief Financial Officer. Before I get started, I'd like to review our Safe Harbor statement. Certain statements made today, including comments about our expectations regarding future plans and performance, are forward-looking statements that are subject to a range of uncertainties and risk that could cause results to materially differ.

Factors that could cause results to materially differ can be found in our most recent Form 10-K and other reports filed with the Securities and Exchange Commission. We assumes no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. This presentation also includes certain non-GAAP measures. A reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure is included in our press release and can be found on our website. We will begin with several minutes of prepared remarks, which will then be followed by a Q&A period. At this time, I would like to introduce our Chairman and Chief Executive Officer, Michael Kasbar.

Michael Kasbar: Thank you, Elsa and good evening everyone. Given that we just spoke several weeks ago at our Investor Day, I'm going to keep my remarks brief. We had some ups and downs in the first quarter from a profitability standpoint, we also generated very strong cash flow. I will give more color on this in a few minutes. But in the meantime, I'd like to give a high level update on the focus paths we are on today building a more readable and leverageable business model. As you know, we have grown our Aviation and Marine businesses to create diversified scalable platforms that are built to weather the dynamics of the marketplace. Within our land business today, we have a higher proportion of variability in our portfolio.

And we are actively working to grow and scale those parts of the business that we believe are best suited for increased readability and operating leverage. As we scale these readable business activities, and further sharpen the portfolio, we believe this variability will be attenuated and result in more readable and predictable results, improved growth, and solid shareholder return. We've been disciplined about exiting relationships or business activities that we believe no longer provide acceptable returns or fit well within our future strategic plans. This is the sharpening the portfolio message we've been sharing and a strong example of this is the recently announced sale of Evernote, which we expect to close in the next few weeks. We will continue evaluating our broader portfolio of business activities for further opportunities to drive greater profitability, whether it be by acquiring businesses that can enhance current revenue streams, or exiting certain activities that may not be core will have the DNA to deliver the returns we expect to generate across our entire business platform.

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To continue reading the Q&A session, please click here.