World Kinect (WKC) 24 Oct 242024 Q3 Earnings call transcript

Thank you for standing by, and welcome to World Kinect Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Braulio Medrano, Senior Director of FP&A and Investor Relations. Please go ahead.

Good evening, everyone, and welcome to World Kinect's 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. Director and Senior Relations. Medrano, Braulio of Investor FP&A I'm and Michael call Chairman Ira With President the is Birns, Financial Kasbar, Vice and me on Officer; today Chief Officer. Executive and Executive Chief Chief

channels, with to by the be World greater would fantastic of she will driving like job like Elsa call. and improving recognize done this leaving take announce materials. that Connect to our I'd improving that our moment and thank efforts Ballard the to earnings communication after Investor Relations We a transparency Elsa has for quality

opportunities, As want Elsa. she moves on to her Thank wish new in the you, future endeavors. we best her to

And subject to made reports actual performance found of can plans now Factors statement. and could other review and most comments results to could harbor that uncertainties our and forward-looking and Securities differ regarding in safe materially risks materially Certain results be Commission. Exchange today, that statements cause a future filed I'd are statements range the differ. are with like XX-K about to our to Form including our cause that recent expectations

included new these assume the results to most comparable reconciliation found on A publicly financial no our to or in website. non-GAAP This release measures in forward-looking is also future our press or GAAP release their statements directly non-GAAP obligation light revisions any We financial measures. events. of to and financial of can presentation information certain revise includes of be measures these

period. will a prepared minutes with be then followed several question-and-answer begin will which of We by remarks,

Michael our Chairman Kasbar. to this At Chief and introduce like Executive would time, Officer, I

as Last it. for really Elsa, these from persisted about our second challenging you, work quarter, quarter the segment in though great the you, everyone. rebounded land conditions future on that even the appreciate headwinds you third wishes in and us. spoke did some Thank best And evening, your expected. land market our business. all of quarter, all endeavors. Good we Bella, for We And thank

line provided more more predictable management all our financial a with progress our overall prior focused also company's leverageable Our model on the in remains quarters, quarter, highlighting across our business team messaging implementing of last performed guidance with in results. operations. my Consistent business towards

approach Our opportunities predictable capital distribution consistent, allocation within remains while our profile. mouthful, drive our last acceptable shared key prioritizing the half-mile to more -- that's strategy is risk disciplined solution Investor and at the returns a that achieving return, platform. cost what earlier with to leveraging you this energy Day but value-added we That's we targets efficiency do. management year. This risk operating an all

diversified platform we and general great Our air robust highly of combined commercial momentum. margin. marked Aviation example with continues This and yet excellent scalable business of be cargo platform another both offerings sectors, aviation complementary growth operating a in demand summer this and in of passenger to quarter double-digit to strategy, the propelled

Avinode, Avinode but Operating lower margin in profile. strategic growth benefited from the also contribution last core more of quarter offset with from sale in Aviation the revenue income than as a expense

aviation be of distribution fuel quarter, of customer platform distribution bulk tuck-in at fourth the our business, As expanding to base. which some network of completed acquisition we year-end, integrated beginning last we fully and the into the a by and the quarter, noted to from sale aviation expected is reallocated was Avinode proceeds the our

growth drive operating is While will leverage prioritize of strategically and relatively investments a core acquisition complementary the small, returns. to great example we this

is in Our positioned global aviation long-term business to capitalize aviation. on trajectory well the growth

environments. even outsized highly while financial platform, market small still value flow contributing also an delivering operates at scalable less and Although conditions and Aviation, creating economic favorable improvements cash more business cyclical from our results marine efficient in in

to our the under in portfolio, XXX generated of significant power with gross leverage. valuable diversification basis working a the quarter, business X% demonstrating points, represent the potential profit improved component minimal and platform capital a continues margin third operating the Marine by right requirements of increase an mine year-over-year while create operating in conditions. Marine So to upside

in I my in as gas, fuel opening rebounded his will our As comments. stated quarter. of share from uncharacteristically quarter edged remarks, the in where the significantly the as this upward in North volatility market conditions I American levels natural and Land year as low prices details in more business second improved experienced second well

business standardizing for As land liquid predictable offerings New growing a platform. have creation. and business, clear and margins done consolidating as operating more opportunity in is fuel technology aviation discussed our in York single in largest In segments. we American and value on and by scaling efficiency and path marine in the now to much our our our March, we a North operating have improving

should only growth discussed and our space, segments profitability operating We will margin finally accelerate than increase a the attainment we synergy integration key has a and American still business a Day this be marine marine at aviation market our the relatively strategy is business. that it acquisition over Doing and will is North a course an to our efficient replicated in fragmented be so existing our for land this of but combined significantly our will aviation in Investor the as establish been target. of completing what driver Rapid of capture. markets vehicle land XXXX. fuels larger integration initiative for medium-term Not effective migration effective

who energy dedication It passion, global you pleasure team. partners And finally, that are. their and for makes you. our with innovation what the assurance wouldn't what always, day. do we and a require with we suppliers as without our they supply be you serve every logistics to we essential truly Thank and here and are customers, us to serve outstanding that is It's

provide Ira will update. financial business detailed Ira? a now and

Elsa, good again, thank last you, evening, you, everyone. time, and Thank Michael. X And

related sale non-GAAP last review, This third us to segment down X% of million improved. Total year's adjustments. profit delivered improvement from Before and of billion second that after-tax solid tax $X.X was primarily due year-over-year and market the approximately the our principally in profit $X gross slightly core $XXX consolidated decline provided declined to both approximately always website quarter. our land results incremental I financial a The as begin guidance within to Avinode, Relations non-GAAP consolidated lower land with Investor sequentially charge measures associated quarter million Reconciliations quarter meaningful segment. year-over-year our land and our the webcast approximately please of $X.X by segment, our third reflect expense in also our available impacted million, aviation volume quarter offset the presentation. and gross includes total line that in our Marine to of impairment marine. gross note On with on related conditions in and last Aviation was are higher basis, results $X.X million and today's certain an the we profit partially year-over-year, in segments made

fuel was the last to year-over-year. low-margin aviation impacted Our exit down year. million XX quarter during or approximately decision X% volume bulk of certain gallons just our was Again, business by this fourth about

fuel from bulk year-over-year X% If exiting and exclude seasonality. this benefiting up you also summer impact volume approximately activity, sequentially of the was X%

inventory-related -- profit the to business profitability by and fuel of contributed sale when in Business gross offset approximately stronger which profit increased X% core million year-over-year Aviation, customers small is compared card closed of recently year's Aviation of acquisition Avinode, our in gross of positively the or $XX in $X this XXXX, United aviation Mike million in commercial third quarter impacted tuck-in quarter. the as physical part expand Also, network will States. third this a last our we and in mentioned, FBO transaction by

in the fuel quarter, core to improved lower. was XX% the increase we discussed our combined second decreased we look from This, for impact the contributing profit the also continuation -- profit driven in by overall conditions the quarter year-over-year decline third the segment. in quarter, in fourth to while of the Aviation XXXX. American we decline sale. the in land expect volumes sequential seasonal third Avinode XX% X% in our profit soft principally land, up quarter to Natural land gross part natural the the sequential the with activities, American retail decline in in driven in from As year-over-year expect still XX% businesses natural market activity business, represented gross by second year-over-year a In In basis, gas operations and a Brazilian we with fuel gross gas and principally offset increased of power a North contributed and and XX% year-over-year power unfavorable last North of gross American quarter and volume that gas flat by business volume. our in profit. quarter, of the North wholesale a decreases On

should basis, to results a the to land with to Looking to year-over-year. slightly be flat continue up improve fourth on gross expected quarter, profit year-over-year

As have within throughout discussed optimizing on of remain land the year, focused activities refining our we portfolio and the we business.

of medium-term significantly broader head achieve activities, margins We performance earnings and profit resale of year-over-year we our locations this our improved targets. physical our in growth in X%, to As principally the identified to should throughout Marine, by increased our world. next XXXX, hope improve several gross opportunities at the which to February. were have volumes more drive financial benefiting the approximately year-over-year towards profile time including core business. strengthening call foundation several strong we and by X% business down business of In returns, the driven share details and our

to lower profit related to market principally look lower bunker but expect we flat to of volatility XXXX. quarter we year-over-year be fourth the compared gross prices marine fuel As somewhat effectively and the fourth sequentially, quarter, to reduced

the we range a $XXX to $XXX fourth That's to million. to profit moment be related in consolidated $XXX comments million consolidated you of and million the expect to As with quarter, million. the shared of a $XXX look ago, the basis, gross segment gross on backdrop profit

were turn guidance adjusted expenses, to million operating which let's the provided in quarter. with last down consistent the X% Now quarter, $XXX also third year-over-year. consolidated

we consolidated approximately the recent consistent expenses, tuck-in the third are year-over-year, associated target. remain by in X% in $XXX of expenses medium-term by expecting decline million, with operating adjusted Avinode quarter focused aviation quarter, margin part $XXX fourth the expenses acquisition. to part elimination our of offset impacted the of operating For on a related generally and million with

sharpening target. efficiencies a in focused operating efforts this remain be additional But ongoing in making of should of target our activities efficiencies contribute progress towards business greater we earlier, the broader and significant in should factor portfolio our on achievement land well. the to driving mentioned as business also which across As this

the during the recent the lower interest year-over-year from we was rate the down guidance under expense benefited and our liquidity provided utilization in last facilities also and below XX% quarter, third reduction, $XX quarter. had Interest about quarter, as we million

expense to another interest expect quarter XXXX. $XX to approximately with our XX% on expense million to in year-over-year fiscal full We $XX year decline interest in million the in below come track XXXX fourth year

third the Our tax was increases be effective adjusted year In quarter today, of and quarter, rate $XX our The tax XX%. seasonal the specific 'XX third of cash rate adjusted anticipated higher associated our the resulting effective in year-over-year. actually million. we negative was increased cash principally business. XX% effective the capital slightly with the tax than quarter XX% in Aviation was what that's Based business for use adjusted most rate quarter upon in up related a and operating flow range to to full and activity, know XX.X% of in should to to XX% slightly in requirements third fourth

repurchased to shares, work increasing our share year-to-date to Also $XX fourth returning year. And the million to the capital $XXX are million $XX to drive we every announced during also authorization, flow and the solid additional total commitment focusing on quarter, further we of repurchases to increase an million. outcome opportunity third we repurchase through cash As the quarter, finish to our demonstrating you shareholders. a

of strong business, further In Avinode in commercial and which a tuck-in States. offset expands small by leave want acquisition, part we year-over-year the closing, Aviation of a recently our core thoughts. core with United closed the in impact offerings to results, few performance I by sale in again the you driven our delivered solid

quarter. contribution profit million and our resale second business. year-over-year increasing the land to within Marine ratability land from higher Our sharpen focused purchased principally portfolio to again, of delivered X.X And during also $XX remain driving activities, of growth activities million we to shares business core our our on during shares. nicely year-to-date greater rebounded our related from refinement by significant highly the of including activities. repurchases carefully quarter continuing business the segment the optimization weakness experienced across business We

sheet Finally, further we The shareholder return progress and which of strengthen we making March. these highly on greater will on achievement you. all Thank profitability shared medium-term our in balance remain capital, invested targets our targets, driving focused our towards financial improve enhance value.

turn will over back to our now to wonderful operator, begin I Q&A session. the call the Latif,

of [Operator Instructions] the from Our Ken first Hoexter of line question comes BOA.

Great and and for business is discussions maybe businesses? Michael. cost thoughts to also the Are And as now that about my out there your at you the pieces over refine Ira, the just the that look to look talked focus, other just looking you thank throw I'll monetize? you time. you there avenues there other you review any review

we businesses. Avenue certainly yes, achievement in lots the of the at necessarily not an of wouldn't those because we opportunities for to topics. on of the capital was around business. there's may move from that to outlier look to our of great business in got but pieces But There's obviously part outstanding able terms valuation anything again, considering that category But and I reallocate be put our Avinode discussions core core. other necessarily an that into was that

pump drive matters, Now and where in consider the goal also more and activities levels should our growth either our business. us operating what certain core benefit in to sense allow we're accelerating makes land, land is on -- particular, more and across which where the story, make our activities. efforts should of focus sense it even investment on which or to improve our may greater simply exiting time the and -- brakes focused on simplify only the margins really of to to profitability

take ago, have flip coverage, when we me of when were let very very, that time, to kind seems decelerated. you over launched years that the and So side of acquisitive because you

seeing additional the like . opportunities given there tuck-in alternatively, recession, the is sellers you quarter, you it more guess, -- any announced like I this that? freight X So is elongated creating are

to careful opportunities our about moving growing, we in a leverageable, highly inorganically, find very worked always is pipeline I make Yes, we've there's rates have didn't those and anyone, flyers M&A businesses we types in a COVID, a to and a really. actually digesting But we is have We're and the -- were hard would few through very, very decisions. flyers but lived -- we things. while acquisition favor quickly worked which digesting say on -- to American within many ago. a we're in time and North set we were Obviously, where greater skyrocketing, integrated. large for interest were fuels very their years out than rates investments down, come has greater there's I grow bringing say platform those very team the from today would opportunity there would confidence take benefiting because which and our I has efficient to we make our of to integrate opportunity been to that's is something phenomenally our didn't more starting platform ability those opportunities business say of are woodworks.

appreciate I Great. that.

you up performance. more? Is maybe it different it can things -- with little in it listed seasonality being the you talked right? you you impacting things. bit terms Maybe just more understand, a business. . want thought? of disappointing a land that the I little Let a core just through guess, I walk than was of to Was wrap kind So me of bunch business, about

of we to the weak was improve. about that quarter, basis lot on A very a year-over-year, comparative Yes. talked which last things started

because last things quarter stabilized, this the we That nat market an extremely much of has we better prices. situation, gas you low quarter. did had about and oversupplied was One talked

imports and market and Brazil hasn't supplier those Russian from imports, about and single talked we side, improved. aside flip the that On

there weak. comparison America. in year-over-year And we the business quarter, about So then remains last talked North fuels our

on Specifically, country. That in we improvement did bit that hasn't but West of a talked about other going we much, the was what Coast. see in the changed parts

our year. better but last North had than last a a this quarter, fuels certainly down in in bit still still did business we So we outcome quarter American from

and I hopefully your more, to land a a into' So conditions, and I better portfolio maybe enter direction reshaping 'XX, the bit move question think continuing we previous the market with think as in has level we've perform more start higher and particular, targets towards at certainly year. a And opportunity even operating an to moving significantly in target. that, we right, shared next margins, our EBITDA to the need for

next Our comes the John JPMorgan. from line question of Royall of

it the in details of get So are but sounds back I the you land. like of coming some these normalizing? is targeting the in think much much opener it headwinds you and could the discussed? from How and we'll to little operating path on both you're a that more And maybe margin little soon, from was I dig a levers hoping more controllable where how on those you here in maybe you've bridge today, XX% some touched

simply only that strategic businesses it quickly. our Look, could is we the honest, But which 'XX portfolio. -- we but with target operates that control low at cost, towards that's you've low-cost that even moves help that lock M&A with are margin, that you a for is at that So margin, if premium look it help. the well have of significantly that None exercise, relatively have ourselves higher we part shared your market until type to things because And right? overnight that conditions underperformed the us we normalize, also Because by that of be target make outperformed and less can extremely right? There some direction, right as our we've metric and the bigger, doing and provide and an that operation. to on nailed significant right? could right that's category, the example, that number moves underperforming margin in business, unfortunately, goal operating -- could operating an things the given like in progress some target focusing why the in significantly targets card the we your we're

there's mentioned, right could fairway change or our growth So -- synergies our things business multiple stop the and existing and we existing you the the could in drive that of then right? within that control that with middle up platform. rebound M&A doing levers, strategic

on lot hoping lot spending the the items within details a would I of within tangible we share and we're that we'll of described. time of in that focusing more there's our, is direction, control, to and a really umbrella have that say, to is So our I get time we're moving February call. by

a bit of less that, Just of It's variability into its to add to John. of little terms it color that less in market profile. more has

So disproportionate at come results variability and as But good of side, we and commodity platform. again, kind is it, distribution it. pretty the not to obviously, from then and we're the

to make the So platform under is that consolidate the is world. going the all Flyers to going difference we're what and in

So right profile right and the the right and platform. commercial and the dynamics right right selection portfolio team the the both with with financial

they've those team, perfectly and the fit going. that of are the combination of Ira it's been stopping activity and there's will difficult, stopping good, necessarily working rest with able where they to some really to of communicate, that variable, and of as then And -- be amount and disproportionate. to trading said obviously, of results and okay, been don't all we're is and the predictable is of was on the have not parts So businesses but but has additive. are exiting the some

plan. So is clear transformative. be a to a platform there's clear going there's focus, The

of gives little you So hopefully, bit that color. a

know seasonality $XXX was capital. over color. on And helpful And my mentioned Ira some working follow-up just pretty Yes. is in then there. That's really a XQ. million I headwind sizable it

of a is reversion seasonality, tailwinds So then we future . there see some related? that offsetting in any some can that where there there price any headwind quarters? of -- was relatedly, in was And given natural any XQ it

yes. and Yes

first is on the was It a negative cash -- certainly, quarter flow So quarter in for while. from aviation goal recover our a our seasonal strong side. to

asking of some had in temporary came to the customers working increases expected in strong to credit for which coming capital. their us we line summer, pass. because had So investment some We

our So that of some increase requirements. receivable

time then our was that differences that time So of on there inventory world. part we And encounter it. some are price-related the positions on around to from timing

well. So that us a as impacted bit little

that And a longer and shooting remain we shared and range be term 'XX the free approximate so beyond. basis that from an we're in standpoint. we quarter in cash cash annual flow delivering for positive operating -- flow on should and QX, we confident a an in

[Operator of the Instructions] comes of James. line Raymond question Our Pavel next from Molchanov

Thanks quarter? XX% a start. gross the in was to QX. of it Low profit recent question in QX, in X% standard What Yes. carbon most was

profit XX% quarter. Gross was this

Clear. Okay.

still do huge think those year SAF, how at before. you've of this Any things. look lines not But past along grand scheme much obviously, in you had series I of announcements you percentage a few the more a the As you'll on SAF versus volumes, months. over basis, volume in year the -- mean do

of million Well, a law it's gallons. a we're numbers doing only small because still few

a arguably a it and gallons, reference on and couple percentage, incremental of And high percentage made millions that doesn't generates contribute millions but also you of a profit. additive to gross basis, announcements. but So is pretty

and in could further on of that the growth here that depending a some pans how larger One is the out, than accelerate bit the them other, timing U.S.

a would at So XX% a million-gallon you're gallons increase. doing year, few million again, if X increase a be only

year. So hopefully, a 'XX it's each and through that to growth exact tough number, picked by but 'XX in of the an And we've we been the little give to where as will little past. pace you up has accelerate definitely compared head

blase aza this been exit. a about at being for years. XX We've You're little

we've And got only all source of technical the and the capability integrate it. also the to and deliver so the our X of attributes tremendous understand but it help And it, distributor of clients not regulatory SAF to in U.S. largest world.

the of some space. have people accomplished the We in most

is industry. it and -- So aviation only solution the the for decarbonizing

of bigger going what to in and incentives regulatory in the materially U.S. So part we Europe combined become is the with do. the

important, as renewables. all strategically is the of it's So

about without a we energy of the You talking advantage talk competitive have other about renewable And space. our significant certainly compared to can't most participants. really

in about important strategically So discussion it's fuel there SAF. and jet a no fuel, that we about conversation drop have there's isn't that virtually

it's book digital basically physical what we do. soup important do distributions, from an and So the part And nuts. we claim, of it from to

be our that it's market in is where to. the of future more will because heading there So

Yes. If can gas. I on follow up natural

So data kind of a lot nat particularly Is rhetoric macro for question. with of observing about conversations a with AI We're appetite in you're that centers seeing something your the gas, build-out. enterprise customers?

Data centers are data that developed we're -- certain side. within hyperscalers, various with that on something backup energy a the engaged is conversations And center at. we've capability the

semiglutide a the to more So every the for to of the to logistics. our mentioned to it's game just services that broad you seems consumption. those perfect to continue. that pretty energy be all this of combination. is of advisory the GLP ability digital, -- cutting sources Day using, energy to name practically I -- And so more brokerage merchant the across consumption energy across you're single our we participate want There's in no of going Investor to is from source energy, cut to solution energy.

extremely well and within we're hyperscalers range our activities. platform, operators a different broad center of within in So and data engaged we're positioned

it's obviously, focus. So

any of we there little we of everything. is provide But can't can't the our really where You energy isn't spectrum, do a some bit type of of -- beauty orientation service. part the

that that too have I location, is Clearly, a physical beauty fulsome hopefully to clearly we're the activity And are structures to and cross at looking platforms on that, gives that the want sensitive and but so leverage that's to time there is and and able highly leverageable. you're take when so is think that's about model don't on our answer. discussion any a participation what could of the in participation based case, what on much focus density having that we model. So our we're you I appropriate focused

going is but SAF trying bullish number, I'm year. second small was going they not this because volume you to a a year-to-date above wasn't are just But enough. what going-forward back numbers, I to last Mike go give but it year to for our XX% was

say that is time, small increase. number seeing continuing growth for albeit, a the So to but the accelerating, we're I'll base,

So least. you have that metric at

And just rest game. going more emissions about of X% you're and other solution to at as out the larger really it market, see going the stage because important there's And to more represents aviation the carbon-carbonizes, of while global aviation it's segment, this of percentage. no stick as be the a somewhere

So there's going to it. demand be a for greater

So really we're consumers. half play soup from and understand positioned distribution provide last required producers both well on service, nuts, that mile to to full extremely a solution and the data

fits So fuel. it's within again, it -- our model a drop-in

we're of able So moving we're to molecules with whether and the diet. renewable is of to to see electrons PXX what up we types fossil renewable once again, you're understanding a well dealing And We're molecules, renewable. they're or energy be -- with seeing of advantage of. broad-based data now do regardless take and which, that centers go you're reality different today's going opening to nuclear, electrons. positioned as

you in future. positioning we're we and a So little company any of how the terms about how case, the for color gives in that bit think it hopefully, of

of comes Ben next Our the of Nolan question from line Stifel.

All right.

well, in So I've all, couple, but on of actually, I'll the a got start the first quarter. results

You on you came guys the done on of And end. into while things that helped fantastic also to job. that's the guidance bit X and it -- she's range, range, Boys, lower was I that guidance the a although implement think little I'm a

had came bit a maybe can love what of you But you as originally things surprise Elsa. closer or moved range? talk maybe little how of a little what through up you to maybe off hats a bit that to Or relative to shifted you So expected? the . I end lower

variance. shy of was question say aviation else what mean X the I really. what forecast. line Nothing we answer we hard that maybe to it the expected. out because million would Like $X Everything -- I was $X basically in had of best maybe million much with came pretty

like think midpoint were, we the of or guidance that. versus difference where it So I a like was our something

our than going both terms and numbers will exactly in line bit and saw had income, you But close internal as the better profit results quarter we off if came of were came variances but million. day, $X But I well. what actual you projected every happen forecast, of were doesn't higher. interest where by operating were every the give into those in really and we're in where we guided a expected So of on gross almost the fact that expected we exactly tax expenses

way to my really question a the effect there quarter, relates had into to and a this X I you Brazil, of rollover bit little -- noted asking a quarter, was complement next it there. the of lag as months last guys which sort problem know was in ago. -- or I was a No, no. this Elsa But

You how I talked the that always businesses for almost North is business, Or about view Do that always land U.K., in you as operation you growth when land see core? in the exclusively is them? hear not I or know American the but the lot Brazil. international those land. opportunity a you have maybe you there's

be today. mean sizable. look it's really global where compare, right? where energy So runway? consumption, is not of U.S. sure the When the XX% I Ben, market, you is can't at the size U.S. that I'm the about used in to it focus. market, exactly is market of But you

And so There's growth. for much bigger runway. opportunity a clearly, a there greater is

quite we I for came of logistics in level digital we is of unbelievable global the inventory to that make have got I But third-party, think, priority distribution think, distribution, our do acquire Certainly, to other is looking markets. us. the the you tuck-ins, the in terms clearly, say, somewhat a footprint our and to. where size. want of from on there in of excited the give terms to -- we we're global And own U.S. market be expertise able to about where really is be they've runway. management, extraordinary. do that's just where forward So that's we're of large That's drop. our fulfill inventory get a got sure U.S. our is ability no focus physical the you there's to eliminate amount pretty let's EBITDA and comparison certain markets, us capability, digital capability once from the to really fulfillment, into physical our for off quite opportunistically And platform. is We're is what on flyers We cost have have job, biggest inducement, to which assets. and team But going great doing distribution the aviation our

So we're certainly open.

lots We an at as but places, be to is are worth in there global business opportunity business. it's of markets consolidating looking a to know, doing and chase. where We're you

I more to want add you know don't Ira? if So some to that, color

something And massive saying I is want be be mentioned, share so as got very, park double-digit North I'd think similar, the much Marine don't But again, America, hit to market our market know very in I haven't in Mike very of it we've repetitive. pretty out share in necessarily No, Aviation And historically. a We small. it's land still market. we globally that.

before on do some shorter parts we to are North I in may in that I machine of as both North heavy that -- to -- term, that marine opportunities And other make the our move diving niche will America, have America Mike, to similar lifting to other lot always to versa. where lot going running focus vice a international focusing it's time more to alone get going world. to to concentration to sense. as referred a anything, of aviation, think, in think Mike we'll of all time really So think we be spent I higher But of into fashion the opportunities and in about today medium we is some about opposed there a if we've that a opportunities, of agree got

for on that's the U.S., plenty to chew sure. got We've in

Right.

volumes lastly, then the margins the on though business, improved even the were bit. down And Marine little were Okay. a

that bit that your greater I mostly some think, a wins an to do -- of a or Ira, you're looking where you the departure area some seller. from, presence It mentioned you was historically, marine physical it's actual Is part seems reason the you're I of had little physical growth back-to-back the market? facilities. just some for in physical in have that a don't that of know, a like

of assets, for in We we and ended XXXX all of discipline to XXXX. interesting physical. good -- -- buying Oil, it. marine company U.K. and we doing a a I it real acquired Gibralta. a So foray that was in first Ben, was expanded a was called into into and shells, They their earner in a amount way us. it manner. brought think I barrel good We very we got it listen, up that lock Tramp physical were was stock our in in think

passed that ships XXX,XXX streets. Gibralta the got through You've

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like Michael for back Kasbar now Sir? to closing remarks. turn to I'd

our participating, Okay. you. to and luck and to Elsa Well, for everybody, good thank you team thanks,

be everyone now. next forward to look talking safe and for to So quarter. you Bye-bye

Thank This concludes conference call. today's for you participating.

may You disconnect. now