Q3 2024 World Kinect Corp Earnings Call Transcript
Key Points
- World Kinect Corp (WKC) reported a rebound in its land segment from the second quarter, indicating improved market conditions.
- The aviation segment achieved double-digit growth in operating margin, driven by strong summer demand and strategic business decisions.
- The marine segment saw an 8% year-over-year increase in gross profit and a 450 basis point improvement in operating margin.
- The company completed a strategic tuck-in acquisition in the aviation sector, expected to enhance its distribution network and customer base.
- World Kinect Corp (WKC) repurchased $28 million of shares during the quarter, demonstrating a commitment to returning capital to shareholders.
- Consolidated gross profit declined by 5% year-over-year, primarily due to lower gross profit in the land segment.
- The land segment experienced a 16% year-over-year decline in gross profit, impacted by unfavorable market conditions in Brazil and North America.
- Operating cash flow was negative $39 million in the third quarter, largely due to increased capital requirements in the aviation business.
- The company anticipates a sequential seasonal decline in gross profit for the aviation segment in the fourth quarter.
- Interest expense, although reduced, remains a significant cost, with expectations of $23 million to $25 million in the fourth quarter.
Thank you for standing by and welcome to World Kinect Corporation Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session to ask a question during the session. You will need to press star 11 on your telephone to remove yourself from the queue. You may press star eleven again.
I would now like to hand the call over to Braulio Medrano; World Kinect Corp.; Senior Director FP&A and Investor Relations. Please go ahead.
Good evening, everyone and welcome to World Kinect Corporation Third 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 Braulio Medrano, Senior Director FP&A and Investor Relations. With me on the call today is Michael Kasbar, Chairman and Chief Executive Officer; and Ira Birns,
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