World Fuel Services Corporation

Ladies and gentlemen, thank you for standing by and welcome to the World Fuel Service's third quarter 2021 earnings conference call. My name is Andrew and I'll be coordinating the call this evening. During the presentation, all participants will be in only mode. After the speaker's remarks, there will be a question and answer session. Instructions on how to ask will be given at the beginning of the Q&A session. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Glenn Clevitz, WorldFuel's Vice President, Treasurer, and Investor Relations. Mr. Clevitz, you may begin your conference.

Thank you, Andrew. Good evening, everyone, and welcome to the WorldFuel Services Third Quarter 2021 Earnings Conference Call. I'm Glenn Clevitz, and I'll be doing the introductions on this evening's call alongside our live slide presentation. This call is also available via webcast. To access this webcast or future webcasts, please visit the World Fuel Services website and click on the webcast icon. With us on the call today are Michael Kasbar, Chairman and Chief Executive Officer, and Ira Burns, Executive Vice President and Chief Financial Officer. By now you should have all received a copy of our earnings release. If not, you can access the release on our website. Before we get started, I would like to review WorldFuel's safe harbor statement. Certain statements made today, including comments about WorldFuel's expectations regarding future plans and performance, are forward-looking statements that are subject to a range of uncertainties and risks that could cause WorldFuel's actual results to materially differ from the forward-looking information. A description of the risk factors that could cause results to materially differ from these projections can be found in WorldFuel's most recent Form 10-K and other reports filed with the Securities and Exchange Commission. WorldFuel 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 financial measures as defined in Regulation G. A reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures is included in WorldFuel's press release and can be found on its website. We'll begin with several minutes of prepared remarks, which will then be followed by a question and answer period. As with prior conference calls, we ask that members of the media and individual private investors on the line participate in listen-only mode. At this time, I would like to introduce our Chairman and Chief Executive Officer, Michael Kasbart.

Thank you, Glenn, and good evening to everyone listening on the phone and on the webcast. I hope that you are all doing well while continuing to stay safe and healthy. We obviously have some very exciting news to talk about this evening regarding the definitive agreement to acquire the Flyers Energy Group that we just announced. which Ira and I will cover after Ira's financial review. Flyers is an ideal addition to our U.S. land business and will significantly contribute to the scale and density of our commercial and industrial platform in the U.S. More about this exciting news later. Overall, our business performed well in the third quarter as we witnessed some encouraging trends, primarily in our aviation segment, where commercial passenger activity continued to increase both domestically with activity climbing to more than 80% of its pre-pandemic levels, and internationally, where easing travel restrictions have led to increased activity in Europe and Asia. We continue to make strides in expanding our aviation service network and comprehensive offering. In marine, market conditions remain challenging in the third quarter, compounded by the fact that we did not have the benefit from certain seasonal business we have generated in prior years. However, we have begun seeing improvement in certain markets, such as the cruise sector, where activity continues to recover with more ships sailing monthly. We also recently concluded a term LNG bunker supply agreement on the U.S. West Coast, demonstrating our ability to provide a broader range of energy solutions and cleaner marine fuels. And lastly, we are continuing to build a stronger foundation in our land segment by remaining laser-focused on enhancing our core product and service offerings and meeting the evolving demands of our customers throughout the world, including recently developing a multi-year carbon offset program for a large cruise operator, facilitated by World Connect, our gas, power, and sustainability business. In addition to continuing to invest in the commercial and industrial ground fuels market in North America, our inorganic focus will also include World Connect activities to help our growing global base, customer base, effectively navigate the energy transition. I will now turn the call over to Ira for his financial review.