Ladies and gentlemen, thank you for standing by and welcome to the World Fuel Services Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Gigi, and I'll be coordinating the call this evening. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Glenn Klevitz, World Fuel’s Vice President, Treasurer and Investor Relations. Mr. Klevitz, you may begin your conference.

Thank you, Gigi. Good evening, everyone, and welcome to the World Fuel Services fourth quarter and full year 2022 earnings conference call, which will be presented alongside our live slide presentation. Today's presentation 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 Birns, 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 World Fuel Safe Harbor statement. Certain statements made today, including comments about World Fuel's expectations regarding future plans and performance. Our forward-looking statements that are subject to a range of uncertainties and risks that could cause World Fuel'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 World Fuel's most recent Form 10-K and other reports filed with the Securities and Exchange Commission. World Fuel assumes no obligation to revise or publicly released 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 World Fuel'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 have 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 Kasbar.

Thanks, Glenn and good evening, everyone. I'll start by first thanking our talented global team and our customers, suppliers and partners who all contributed to an extremely successful outcome for our company in 2022. It was another eventful year, and we once again demonstrated our ability to perform well through significant market turbulence. One of the core principles of our strategy has been to build a complimentary portfolio of businesses with a common operating model to deliver reasonable recurring revenue and returns while preserving capabilities for us to add value during market volatility and supply chain challenges as they emerge in markets from time to time. In the last few years, if the last few years have shown us anything, it is that the world is changing at an accelerated pace where resiliency is a critical element necessary to succeed in an increasingly turbulent world. For us, 2022 proved to be an extraordinary example of just that. Despite experiencing extreme headwinds in the first half of the year from unprecedented market backwardation, our commercial aviation business delivered solid overall results, with volumes closer to pre-pandemic levels, as passenger air traffic continued to normalize throughout the year. Our business in general aviation activities meanwhile continued to grow and were a significant contributor to our overall results in 2022. A key element of our strategy to grow this business and all of our businesses has been to offer a broad array of physical and digital services to create a solutions ecosystem that provides a comprehensive suite of operational and data services that support our customers complete energy and logistics needs. One example of that is our closed loop payment processing system appcard, which provides our customers with the access to on demand fueling options at 1000s of locations around the world, whether…

Thank you, Mike. Before I walk through our fourth quarter and full year results, please note, the following figures exclude the impact of certain non-operational items, which are highlighted our earnings release. These items principally consist of a nonoperating legal settlement and a loss related to our estimated earnout arising from the sale of multi service in 2020. These items, however, resulted in approximately $26 million of related cash inflows during the first half of this year 20 million of which was already received during the first quarter. To assist you in reconciling the results published on earnings released the breakdown of the nonoperational items can be found on our website and on the last slide of today's webcast presentation. So now on to the financial highlights. Consolidated revenue for the full year was a record $59 billion, up $28 billion are at 8% year-over-year, related to the increase in average fuel prices, as well as volume increases across all of our business segments compared to 2021. Adjusted fourth quarter net income and earnings per share with $33.5 million and $0.54 per share, respectively, up by 16 million and $0.26 per share compared to the fourth quarter of 2021. Adjusted full year net income and earnings per share were $128 million in $2.40 per share respectively, both increasing nearly 50% from prior year results. Adjusted EBITDA for the fourth quarter was $107 million. That's an increase of $51 million, or 93% compared to the fourth quarter of 2021. And for the full year, adjusted EBITDA was $380 million, up $142 million, or 60%, compared to 2021. Consolidated volume again increased principally related to our aviation segment, continuing to bounce back from pandemic lows, and the addition of the Flyers Energy business at the beginning of 2022. With fourth quarter and…

[Operator Instructions] Our first question comes from the line of Ross Kowalski from Bank of America.

It's Ken Hoexter from BofA. Ira just want to try and put together the -- hopefully you can hear me the 2023 outlook. It sounds like you've got some pressure on marine. I don't know if aviation [indiscernible] helps out. Maybe walk through [Technical Difficulty]

Well, first of all, Ken, we're happy that you're supporting the cruise side of our business today. But because of that, we didn't hear you that well. But I think I got the question. I'll try to answer it as best I can. So if you piece things together, aviation obviously had a significant impact from the backwardation story in the first half of last year. So when you look at '23, we expect a significant rebound from that alone, because we don't expect you know that situation to reoccur. And while we do expect some growth in addition to that element of the rebound, we're also being very careful and making sure we're going after the right growth in this interest rate environment, but we are looking to try to grow the business a bit beyond the backwardation related rebounds. So aviation in a nutshell will be up significantly, or I guess I should always say should be up significantly. When you look at Marine you had for many months of the year you had bunker fuel prices, hanging around the $1,000 per ton level. And there was a tremendous amount of market volatility. So, we just had a phenomenal record year in Marine last year, which is very difficult to replicate. We expect that we'll still have a very good year this year. The team's doing a great job. We're also being mindful of risk and managing that element to the business as well as we typically do. But even saying that, Marine will be down from the highs of 2023, unless something materially changes in the marketplace over the next 10 months to put it in scale, those pluses and minuses are fairly similar. So, the aviation increase and the marine and the Marine decrease for the reasons I described are relatively similar within several million dollars. Land, which obviously benefited from FLIs. We now have a much stronger base going into ‘23. There are certainly some opportunities for growth there, so we should see a bit of improvement in the land business. So, when you put everything together, net net, we have some improvement, but we got some material ups and downs related to aviation and Marine. I think that addressed generally addressed your question on the operating side of the business.

That's a great one through, and hopefully you can hear me, so if you can, I'll try and run through. I've catched a couple, I'll throw you away and maybe you can hear it. Working capital seemed to a quarter and you walk us through there were that we didn't see any buybacks. Is that something because of the change in price of fuel with that seasonality? Maybe talk through that. And then my, my second one is just shift. And thank you for the chart. It's a great to finally see what the is --? Because I know, we've asked that so on the call but does that mean we should seasonally see it flatter? Obviously, UK becomes a smaller part of that, so should that just be less impactful and maybe just greater contribution going forward? Is that --

Yeah, let me answer each of your questions, again, you're breaking up, but I think we heard you well enough. In terms, I think your first question related to the use of cash in the fourth quarter, we did a really good job as tip as usual managing cash flow during the quarter. There are elements that are timing related, but on the side of our business, which are derivative related, there are also timing issues on cash flows associated with the margin positions that we may hold with various institutions. And in the fourth quarter that we had a net outflow mo mostly related to activity in Europe. So, we're hoping that that turns itself around and we're hoping to generate a better full year result in ‘23 as compared to 2022. In terms of the seasonality in land, you're right, because UK has now become, as you could see on that chart that we had on the webcast, a much smaller piece of the pie. The seasonality has been muted a bit because adding in Flyers, Flyers has strong seasonality when we used to be weak in land. So it's balanced things out a bit more. So, you're probably looking at Q2 and Q3 being the stronger quarters give or take for land, but not materially different. So, you now have a, a relatively rateable mix of business when you put it all together, where we used to peak in Q4 and Q1 when the UK had such a meaningful piece of the pie.

Thank you. Mr. Kasbar, there are no further questions at this time. I will now turn the call back to you for closing remarks.

Well, I just want to thank everybody for dialing in. As we discussed in our prepared comments, we feel pretty good about where we are as a company as an organization. It's been an incredible couple of years. And it certainly made the company much stronger company, the quality of earnings is I think significantly better the composition of our portfolio is much stronger, the platforms emerging in land and connect are starting to occur certainly the addition of flyers, but the common operating model that we're building and that methodology across all of our businesses to buy transport, sell, and finance molecules and electrons and deal with the risk management, I think is going to really prove to be a very wise decision. And be able to drive operating leverage. We've got a far better technology backbone than ever before. Certainly, our ability to adjust is I want to say legendary, but I think it's pretty incredible in terms of our ability to pivot and deal with what the market has got to throw at us. And I think it's a testament to our incredible team and culture. So I want to take a moment to just thank the team. It's great working with everybody, every single day. We've got great support from our customers and suppliers. So it's a pleasure to come to work every day. And I want to thank the support of our investors or shareholders. So stay tuned, we feel pretty good in terms of where we are now. And as I mentioned in my comments, we do have different things hitting our business from quarter-to-quarter, but our trajectory is good. So we feel like we're extremely well positioned to develop greater efficiency in our conventional energy and commercial aviation, business aviation, liquid land and marine. And our sustainability activities are getting stronger every day. So we feel really good about that important work that we're doing. And we're investing intelligently, and our digital services and products helping all of it drive readable recurring revenue, and become an important component of global commerce. So thanks very much for listening, and I look forward to talking to all of you next quarter.

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.