Posts Tagged ‘#ParklandFuelCorporation’

Parkland increases 2023 Guidance and announces Investor Day; Expects to deliver $2 billion Adjusted EBITDA ambition one year early

  • 2023 Adjusted EBITDA Guidance1 increased to $1.8 billion to $1.85 billion, up from $1.7 billion to $1.8 billion
  • 2024 Adjusted EBITDA Guidance of approximately $2 billion, which is one year earlier than our previously stated ambition
  • Investor Day to provide update on strategy execution, capital allocation framework, and financial outlook

CALGARY, AB, Sept. 5, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, “our”, or the “Company”) (TSX: PKI) announced that strong performance has resulted in higher 2023 Adjusted EBITDA Guidance of $1.8 billion to $1.85 billion and accelerated the delivery of its $2 billion Adjusted EBITDA ambition to 2024, one year earlier than anticipated. Parkland will host an Investor Day on November 14, 2023 to provide an update on the execution of its strategy, capital allocation framework, and financial outlook.

Parkland Logo

“At our 2021 Investor Day, we shared the ambitious goal of doubling our Adjusted EBITDA to $2 billion by 2025,” said Bob Espey, President and Chief Executive Officer. “By integrating acquired companies, capturing synergies, and driving organic growth and cost efficiencies, we now expect to accomplish this goal without further acquisitions, one year early.”

“We have built a strong platform for continued growth,” added Espey. “The operational improvements we have made are enabling us to reduce leverage, increase cash flow, and enhance returns. We look forward to sharing more on our future growth plans and capital allocation priorities at our upcoming Investor Day.”

2023 Adjusted EBITDA Guidance Raised

  • 2023 Adjusted EBITDA Guidance increased to $1,800 million to $1,850 million2 (”Revised 2023 Adjusted EBITDA Guidance”), up from $1,700 million to $1,800 million, reflecting the successful execution of our strategy, favourable crack margins, and confidence in our operational performance.
  • 2023 Capital Expenditures Guidance1 lowered to $450 million to $500 million (”Revised 2023 Capital Expenditures Guidance”), down from $500 million to $550 million, reflecting cost-effective procurement, prudent capital allocation, and the successful completion of our scheduled Burnaby Refinery turnaround.
  • Leverage Ratio Guidance1,2 of approximately 3 times by the end of 2023, down from 3.4 times at the end of 2022.

2024 Adjusted EBITDA Guidance of approximately $2 billion2

  • 2024 Adjusted EBITDA Guidance reflects ongoing synergy capture, realization of our previously disclosed $100 million MG&A cost efficiencies, organic growth across our retail and commercial lines of business, and optimized supply advantage.
  • Cash flow per share Guidance1,2,3 of approximately $9.50 in 2024, up from $8.30 in 2022.
  • Return on Invested Capital (”ROIC”) Guidance2 of more than 11 percent in 2024, up from 8.3 percent in 2022.
  • Leverage Ratio Guidance1,2 within our target range of 2 to 3 times by the end of 2024.

2023 Investor Day Registration is Open

Parkland will host its 2023 Investor Day presentation on November 14, 2023 at 9:00 a.m. EST (7:00 a.m. MST) to provide details on the continued execution of our strategy, capital allocation framework, and the Company’s financial outlook. The event will be held at the Fairmont Royal York in Toronto, Ontario and simultaneously webcast with video for those unable to attend in person. Analysts and investors who wish to attend the event, either in person or remotely, are invited to register using the following link:

https://humancontact.formstack.com/forms/pkl_2023_investor_day

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five countries. Our purpose is to power what moves people, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast electric vehicle charging.

Our proven business model is centered around organic growth, our supply advantage, driven by scale and our integrated refinery and supply infrastructure, acquiring prudently, and integrating successfully. Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business objectives, strategies and model; Parkland’s strategy to deliver synergies, cost efficiencies, and organic growth and the progress thereof; Parkland’s Revised 2023 Adjusted EBITDA Guidance of $1,800 million to $1,850 million and 2024 Adjusted EBITDA Guidance of approximately $2 billion; Parkland’s ability to realize $100 million of MG&A cost efficiencies by 2024; Parkland’s Revised 2023 Capital Expenditures Guidance of $450 million to $500 million; Parkland’s Leverage Ratio Guidance of 3 times by the end of 2023 and 2 to 3 times by the end of 2024; Parkland’s Cash generated from (used in) operating activities per share Guidance of $9.50 by 2024; and Parkland’s ROIC Guidance of more than 11 percent by 2024.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; the competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. In addition, the Revised 2023 Adjusted EBITDA Guidance range reflects the full year contribution of 2022 acquisitions, integration and synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin of approximately 10% and Food, convenience and other adjusted gross margin of approximately 15% as compared to the year ended December 31, 2022; and Refining adjusted gross margin of approximately $45 per barrel and average Burnaby Refinery utilization of approximately 80% based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. 2024 Adjusted EBITDA Guidance reflects continued integration and synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin and Food, convenience and other adjusted gross margin of approximately 5% as compared to the year ending December 31, 2023; the realization of $100 million of MG&A cost efficiencies by 2024; and Refining adjusted gross margin of approximately $40 per barrel and average Burnaby Refinery utilization of 90% to 95% based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. Leverage Ratio Guidance and Cash generated from (used in) operating activities per share Guidance are mainly driven by increases in Adjusted EBITDA and assume no change in non-cash working capital. Interest expense is excluded from Cash generated from (used in) operating activities. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q2 2023 MD&A, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Supplementary Financial Measures

This news release refers to Adjusted EBITDA Guidance, Capital Expenditures Guidance (which is the summation of Maintenance Capital Expenditures Guidance and Growth Capital Expenditures Guidance), Leverage Ratio Guidance, Cash generated from (used in) operating activities per share Guidance, Fuel and petroleum adjusted gross margin, and Food, convenience and other adjusted gross margin, which are supplementary financial measures and may not be comparable to similar measures used by other issuers, who may calculate these measures differently. See below and Section 16 of the Q2 2023 MD&A for a discussion of these supplementary financial measures, which is incorporated by reference into this presentation.

Cash generated from (used in) operating activities per share Guidance
This measure represents our forecast of Cash generated from (used in) operating activities per share for the twelve months ending December 31, 2024 and is calculated based on historical data and estimates of future conditions as inputs to make informed forecasts that are predictive in determining the direction of future trends. This measure is a forward-looking measure and the equivalent historical measure is Trailing-twelve-months (”TTM”) cash generated from (used in) operating activities per share. Parkland uses this measure as Guidance to shareholders regarding expected cash generation of Parkland’s business. See Section 16 of the Q2 2023 MD&A for further detail on the composition of TTM cash generated from (used in) operating activities per share. TTM cash generated from (used in) operating activities per share does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

Return on Invested Capital (”ROIC”)
This measure is composed of Net Operating Profit After Tax (”NOPAT”) and Invested Capital. ROIC is a non-GAAP ratio and NOPAT and Invested Capital are non-GAAP measures, which do not have standardized meanings under IFRS and therefore may not be comparable to similarly named measures disclosed by other issuers. NOPAT describes the profitability of Parkland’s base operations, excluding the impact of leverage and expenses not directly related to operations. Invested Capital is a measure for the total amount of capital deployed by Parkland. Each is used by management to assess the Company’s efficiency in allocating capital. See table below for a calculation of historical ROIC for 2021 and 2022, the calculation of NOPAT and the reconciliation to net earnings and the calculation of Invested Capital.

ROIC Guidance
This measure is the forward-looking metric of ROIC for 2024. 2024 NOPAT is assumed to grow in proportion to Adjusted EBITDA, where Parkland’s Adjusted EBITDA Guidance is $2 billion for 2024. The ROIC Guidance of more than 11 percent assumes Invested Capital increases at a slower pace than NOPAT through 2024. The ROIC calculated here differs from the absolute ROIC disclosed in the Management Information Circular.

ROIC

2022

2021

In C$ Millions Unless Otherwise Noted

Net Earnings

346

126

Income Tax Expense

70

36

Acquisition, Integration and Other

117

52

Depreciation

743

616

Finance Costs

331

323

Unrealized Foreign Exchange

(8)

(7)

Unrealized Risk Management

39

10

Other (Gains) and Losses

23

190

Other Adjusting Items

26

12

Adjusted EBITDA, Including NCI

1,687

1,358

Depreciation

(743)

(616)

Adjusted EBIT

944

742

Average Effective Tax Rate

23 %

23 %

Taxes

(217)

(171)

Net Operating Profit After Tax

727

571

Average Invested Capital

8,722

7,300

ROIC

8.3 %

7.8 %

Invested Capital

2022

2021

2020

Long-Term Debt – Current Portion

173

124

114

Long-Term Debt

6,799

5,432

3,861

Shareholders’ Equity

3,037

2,332

2,266

Sol Put Option

589

503

Less: Cash and Cash Equivalents

(716)

(326)

(296)

Total

9,293

8,151

6,448

1 Supplementary Financial Measure. See “Supplementary Financial Measure” section of this news release.

2 See “Forward Looking Statements” section of this news release for assumptions underlying Parkland’s 2023 and 2024 Guidance.

3 Cash generated from (used in) operating activities per share Guidance. Supplementary Financial Measure. See “Supplementary Financial Measure” section of this news release. Assumes approximately 175 million common shares are issued and outstanding in 2024.

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Jim Pantelidis Announces Retirement from Parkland Board of Directors – Steven Richardson appointed as new Board Chair

CALGARY, AB, July 28, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) today announced that Jim Pantelidis, Parkland’s Chair of the Board, has announced his retirement from the Board effective today. Although Mr. Pantelidis will no longer be a director of the Company, he will remain as an advisor to the Board, with the honourary title of “Chairman Emeritus”, until the next annual general meeting of shareholders in recognition of his significant contributions to the Company.

For over two decades, Mr. Pantelidis guided the company through its evolution from a small regional player to an international organization operating in 25 countries.  “On behalf of the Board of Directors I would like to thank Jim for his invaluable contributions to Parkland’s growth and strategy,” said Bob Espey, President, and CEO of Parkland. “We wish him well in retirement and look forward to his support as an advisor to the company.”

Effective immediately, the Board has appointed Steven Richardson as Chair of the Board. Mr. Richardson joined the Board in 2017 and currently serves on the Human Resources and Compensation Committee and is the Chair of the Audit Committee. Mr. Richardson has over 30 years of experience in the financial and retail sectors. From 2003 to 2009, Mr. Richardson held senior financial positions at Hudson’s Bay Company, including Chief Financial Officer from 2006 to 2009. Previously, Mr. Richardson held senior executive positions with financial services companies, including Chief Financial Officer of Wells Fargo Financial Canada, Executive Vice President and Chief Financial Officer of Associates Financial Services of Canada, and Chief Financial Officer of Beneficial Canada.

Mr. Richardson currently serves on the Board of Directors of SupremeX Inc., where he chairs the Audit Committee. He previously served on the Board of Directors for RONA Inc. and easyhome Ltd. (currently goeasy Ltd.), where he served on both Audit Committees.

Mr. Pantelidis’ retirement, and Mr. Richardson’s appointment as Chair of the Board, form part of Parkland’s ongoing Board refreshment process.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five countries. Our purpose is to power what moves people, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultrafast Electric Vehicle charging.

Our proven business model is centred around organic growth, our supply advantage, driven by scale and our integrated refinery and supply infrastructure, acquiring prudently, and integrating successfully. Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values; safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland Corporation Announces Agreement with Largest Shareholder Simpson Oil; Builds on Longstanding Relationship

Ensures Simpson’s representation and continued support for Parkland to maximize shareholder value

Addresses letter received today from activist Engine Capital

CALGARY, AB, March 22, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced it has entered into an agreement dated March 21, 2023 (the “Agreement”) with its largest long-term shareholder Simpson Oil Limited (”Simpson Oil”).   The Agreement furthers the longstanding and successful relationship between Parkland and Simpson Oil. The Agreement provides Simpson Oil, holder of over 19% of the issued and outstanding Parkland shares, the right to designate up to two nominees for election to the Board of Directors of Parkland and includes customary voting support obligations in favour of the Board.

“We appreciate the confidence that Simpson Oil has shown in the Parkland Team and the Company’s strategic direction,” said Jim Pantelidis, Chairman of the Board of Directors of Parkland. “Since Simpson Oil became our largest shareholder, we have continued to advance our strategy and strengthen our growth platform through prudent acquisitions, while increasing our dividend each year. Through this agreement we have secured our largest shareholders’ ongoing support for our Board of Directors and Management. We look forward to our continued relationship with Simpson Oil, and our mutual confidence and commitment in the long-term strategy and future of our business.”

Under the terms of the Agreement, two nominees of Simpson Oil will be nominated for election at the Company’s upcoming annual and special meeting of shareholders. “The Board will be recommending shareholders vote in favour of the nominees’ election at the upcoming shareholder meeting and we look forward to welcoming them to the Board should they be elected,” said Pantelidis. Additional details on the Agreement will be included in the Management Information Circular for the meeting that will be published in the coming days.

As part of the Board’s ongoing refreshment process, David Spencer and John Bechtold will not be standing for re-election at the meeting, a decision which has been planned for some time. “I want to thank David and John for their service to the Board and their tireless work on behalf of shareholders. Their vision, expertise, and guidance have helped us navigate complex challenges and achieve remarkable success,” said Pantelidis.

The full Agreement is available at www.sedar.com.

Addresses Letter Received from Engine Capital

Separately, the Company wishes to acknowledge receipt of a letter this morning from activist Engine Capital LP (”Engine Capital”).  The company will not speculate on the coincidental timing of activist Engine Capital’s letter in conjunction with today’s announced agreement with Simpson Oil.

As  previously announced, having purposefully accelerated acquisitions over the past two years, Parkland is focused on delivering value from the unique and integrated business it has built. The Company is focused on integrating its recent acquisitions, capturing synergies, lowering leverage, and enhancing shareholder returns. The company is also examining opportunities for dispositions where it creates strong returns for the Company’s shareholders.

Parkland actively communicates with all of its shareholders on an ongoing basis and will continue to do so.

About Parkland

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast electric vehicle charging.

Our proven business model is centered around organic growth and our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently, and integrating successfully. Our strategy is focused on developing the existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Advisors

Parkland Corporation has retained Kingsdale Advisors as strategic shareholder advisor.  Norton Rose Fulbright Canada LLP is acting as legal counsel and Teneo is acting as strategic communication advisor.

Forward-Looking Statement

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “continue”, “strategy”, “focus” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business objectives, projects and plans and the execution and impact thereof; and its long-term strategy and relationship with its significant shareholder.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 21, 2023, and “Forward-Looking Information” and “Risk Factors” included in the Q4 2022 MD&A dated March 2, 2023 , each filed on SEDAR and available on the Parkland website at www.parkland.ca.

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Parkland Reports Record 2022 Fourth Quarter and Year-End Results

Record fourth quarter and full year Adjusted EBITDA of $455 million and $1.620 billion

Not proceeding with stand-alone renewable diesel complex; committed to co-processing expansion

Annualized dividend increasing to $1.36 per share

CALGARY, AB, March 2, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three months and year ended December 31, 2022.

Q4 2022 Highlights

  • Record Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $455 million, up 75 percent from the fourth quarter of 2021, with each segment increasing compared to the prior year.
  • Cash generated from operating activities of $629 million ($3.65 per share, basic2) up 433 percent from 2021.
  • Net earnings attributable to Parkland (”net earnings”) of $69 million ($0.39 per share, basic) up 214 percent from the fourth quarter of 2021, and Adjusted earnings attributable to Parkland (”Adjusted earnings”3) of $117 million ($0.67 per share, basic) up 113 percent from the fourth quarter of 2021.
  • Repurchased $40 million of Parkland common shares for cancellation.
  • Consolidated 100 percent ownership of our International segment effective October 18, 2022.

2022 Highlights

  • Parkland delivered its best safety performance in 2022, with a total recordable injury frequency rate4 of 1.05, an 8 percent improvement from the prior year.
  • Record Adjusted EBITDA of $1.620 billion, up 29 percent from 2021.
  • Cash generated from operating activities of $1.326 billion ($8.29 per share, basic2) up 47 percent from 2021.
  • Net earnings of $310 million ($1.94 per share, basic) up 220 percent from 2021 and Adjusted earnings of $468 million ($2.93 per share, basic) up 26 percent from 2021.
  • Leverage ratio5 of 3.4x and liquidity available2 of $1.5 billion.
  • Fuel volumes of 27 billion litres, up over 13 percent from 2021.
  • Continued to expand our ON the RUN convenience brand to more than 650 locations and grew our JOURNIE™ rewards loyalty program to 4.1 million members.

“I would like to thank the Parkland team for delivering an excellent year and commend them for their ongoing focus on safely serving our customers,” said Bob Espey, President and Chief Executive Officer. “We advanced our strategy, strengthened our supply advantage, delivered record Adjusted EBITDA, and enhanced shareholder distributions. Our accomplishments demonstrate the strength of our integrated business model and highlight our focus on creating long-term shareholder value. We expect record Adjusted EBITDA in 2023 and are raising our annual dividend for the eleventh consecutive year.”

“Having accelerated acquisitions, we are focused on integration, capturing synergies, deleveraging and enhancing shareholder returns,” added Espey. “While we are not proceeding with the planned renewable diesel complex at our Burnaby Refinery, we will continue to expand our co-processing volumes. We are grateful for the support our renewable diesel project has had from all levels of government, particularly the Province of B.C.”

Q4 2022 Segment Highlights

  • Canada delivered Adjusted EBITDA1 of $197 million, up 29 percent from Q4 2021 ($153 million). Performance was underpinned by strong fuel unit and c-store margins and acquisitions. Food and Company C-Store Same Store Sales Growth (excluding cigarettes)3 was 6 percent (4.7 percent in Q4 2021).
  • International delivered Adjusted EBITDA of $110 million, up 41 percent, from Q4 2021 ($78 million). Performance was underpinned by the consolidation of our International segment and wholesale, aviation and retail volume growth which was driven by tourism recovery.
  • USA delivered Adjusted EBITDA of $46 million, up 15 percent from Q4 2021 ($40 million). Performance was underpinned by incremental contribution from acquisitions and growth in our base business.
  • Refining delivered Adjusted EBITDA1 of $128 million, up 700 percent, from Q4 2021 ($16 million). Performance was underpinned by composite utilization4 of 97.7 percent, safe and consistent operations, and robust margins while the fourth quarter of 2021 was impacted by the shutdown of a major pipeline and turnaround activities at Parkland’s refinery in Burnaby, British Columbia (the “Burnaby Refinery”).

Renewable Diesel Complex Update

After careful consideration, and consistent with Parkland’s commitment to capital discipline, the Company will not proceed with its plans to build a stand-alone renewable diesel complex at the Burnaby Refinery at this time. Several factors have impacted the competitiveness of the renewable diesel complex, including rising project costs, a lack of market certainty around emerging renewable fuels and the U.S. Inflation Reduction Act of 2022, which advantages U.S. producers.

Parkland remains committed to its low carbon journey and will continue to extend its low carbon fuel innovation and leadership by expanding co-processing at the Burnaby Refinery to 5,500 barrels per day. Co-processing forms part of Parkland’s commercial decarbonization strategy to provide its customers with a portfolio of low carbon products and services to help them meet their low carbon goals.

Enhancing Shareholder Distributions

  • Parkland’s quarterly dividend will increase from $0.325 to $0.340 per common share, effective with the quarterly dividend payable on April 14, 2023 to shareholders of record at the close of business on March 22, 2023. Dividends are expected to be declared and paid on a quarterly basis.
  • To augment the ongoing return of capital to shareholders through dividends, Parkland purchased for cancellation 1.45 million Parkland shares for $40 million under its normal course issuer bid (”NCIB”) program in the fourth quarter. Operating within its disciplined capital allocation framework which prioritizes deleveraging, followed by enhancing shareholder distributions and growth, the Company expects to continue to opportunistically utilize its NCIB program.

Sustainability

Sustainability is deeply embedded across Parkland’s business. Sustainability accomplishments in 2022 are described in the Q4 2022 MD&A. Highlights include:

  • Co-processed over 111 million litres of bio-feedstocks at the Burnaby Refinery in 2022, which has the equivalent impact of taking over 113,000 cars off the road.
  • Awarded the Emerging Clean Technologies Award at the 2022 Global Energy Show in recognition of the Company’s co-processing success at the Burnaby Refinery.
  • Launched one of western Canada’s largest ultra-fast electric vehicle charging networks, with 26 sites currently operational. Parkland received $6.8 million in funding support from National Resources Canada and the Government of British Columbia.
  • Parkland maintains an AA ESG rating from Morgan Stanley Capital International (MSCI), representing the top 22 percent of the index constituents.

_____________________________

1 Total of segments measure. See “Total of Segments Measures” section of this news release.

2 Supplementary financial measure. See “Supplementary Financial Measures” section of this news release.

3 Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.

4 Non-financial measure. See “Non-Financial Measures” section of this news release.

5 Capital management measure. See “Capital Management Measures” section of this news release.


Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

Financial Summary

2022

2021(1)

2022

2021

Fuel and petroleum product volume (million litres)

6,637

6,397

27,036

23,900

Sales and operating revenue

8,719

6,286

35,462

21,468

Adjusted EBITDA(2)

455

260

1,620

1,260

Canada(1)(2)(4)

197

153

702

562

International

110

78

383

294

USA(1)

46

40

126

132

Refining(1)(2)(4)

128

16

516

362

Corporate(1)

(26)

(27)

(107)

(90)

Net earnings attributable to Parkland

69

22

310

97

Net earnings per share – basic ($ per share)

0.39

0.15

1.94

0.64

Net earnings per share – diluted ($ per share)

0.39

0.15

1.92

0.64

Adjusted earnings(3)

117

55

468

372

Adjusted earnings per share – basic ($ per share)(3)

0.67

0.36

2.93

2.46

Adjusted earnings per share – diluted ($ per share)(3)

0.67

0.36

2.91

2.45

TTM Distributable cash flow(3)

818

660

818

660

TTM Distributable cash flow per share(3)

5.11

4.34

5.11

4.34

Cash generated from operating activities

629

118

1,326

904

(1) Certain amounts in the comparative periods were restated and reclassified to conform to the presentation used in the current period with respect to the allocation of Corporate costs

(2) Total of segments measure. See “Total of Segments Measures” section of this news release.

(3) Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.

(4) For comparative purposes, information for the comparative periods were restated due to a change in segment presentation. Refer to the Basis of presentation section of the Q4 2022 MD&A.


Q4 2022 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, March 3, 2023 at 6:30 am MST (8:30 am EST) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/91L3lBVlvgx

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 58680945). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 58680945).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Annual Consolidated Financial Statements

The management’s discussion and analysis for the three months and year ended December 31, 2022 (the “Q4 2022 MD&A”) and Annual Consolidated Financial Statements for the year ended December 31, 2022 (the “2022 Annual Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three months and year ended December 31, 2022. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French versions of the Q4 2022 MD&A and the 2022 Annual Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

Parkland is an international fuel distributor and retailer with operations in 25 countries. Our purpose is to Power Journeys and Energize Communities, and every day, we provide over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast electric vehicle charging.

Our proven business model is centered around organic growth and our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently, and integrating successfully. Our strategy is focused on developing the existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business model, objectives and strategies, including its focus on developing the existing business in resilient markets, growing our food, convenience and renewable energy businesses, and helping customers to decarbonize; creating long-term shareholder value; integrating acquired businesses and capturing synergies relating thereto; Parkland’s disciplined capital allocation framework, including prioritizing deleveraging, followed by enhancing shareholder distributions and growth; Parkland’s commitment to its low carbon journey and continuing to extend its low carbon fuel innovation and leadership by expanding co-processing at the Burnaby Refinery to 5,500 barrels per day; future share repurchases under the NCIB program, if any; expectation of delivering record Adjusted EBITDA in 2023; future dividends, if any, including the amount, timing and payment thereof; and building one of western Canada’s largest ultra-fast electric vehicle networks, including the size, completion and funding thereof.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statements Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q4 2022 MD&A, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization, and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings is a non-GAAP financial measure and Adjusted earnings per share is a non-GAAP financial ratio included in this news release to assist management, investors and analysts with the analysis of the core operating performance of business activities of Parkland on a consolidated level. This non-GAAP financial measure and ratio do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios. See below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share for the three months and year ended December 31, 2022 and December 31, 2021.

Three months ended December 31,

Year ended December 31,

($ millions, unless otherwise stated)

2022

2021

2022

2021

Net earnings (loss) attributable to Parkland

69

22

310

97

Add: Net earnings (loss) attributable to NCI

5

36

29

Net earnings (loss)

69

27

346

126

Add:

Acquisition, integration and other costs

41

24

117

52

Loss on modification of long-term debt

18

2

77

(Gain) loss on foreign exchange – unrealized

8

6

(8)

(7)

(Gain) loss on risk management and other – unrealized

9

(11)

39

10

Other (gains) and losses(1)

(21)

15

23

190

Other adjusting items(2)

21

4

26

12

Tax normalization(3)

(10)

(13)

(46)

(42)

Adjusted earnings (loss) including NCI

117

70

499

418

Less: Adjusted earnings (loss) attributable to NCI

15

31

46

Adjusted earnings (loss)

117

55

468

372

Weighted average number of common shares (million shares)(4)

173

153

160

151

Weighted average number of common shares adjusted for the effects of dilution (million shares)(4)

174

153

161

152

Adjusted earnings (loss) per share ($ per share)

Basic

0.67

0.36

2.93

2.46

Diluted

0.67

0.36

2.91

2.45

(1) Other (gains) and losses for the three months ended December 31, 2022 include the following: (i) $19 million non-cash valuation gain (2021 – $25 million gain) due to the change in redemption value of Sol Put Option; (ii) $2 million non-cash valuation loss (2021 – $34 million loss) due to the change in fair value of Redemption Options; and (iii) $4 million gain (2021 – $6 million loss) in Other items. Other (gains) and losses for the year ended December 31, 2022 include the following: (i) $30 million non-cash valuation gain (2021 – $87 million loss) due to change in redemption value of Sol Put Option; (ii) $67 million non-cash valuation loss (2021 – $86 million loss) due to change in fair value of redemption options; (iii) $14 million gain (2021 – $17 million loss) in Other items. Refer to Note 23 of the Annual Consolidated Financial Statements.

(2) Other Adjusting Items for the three months ended December 31, 2022 and for the year ended December 31, 2022 mainly include: (i) the share of depreciation and income taxes for Isla joint venture of $3 million (2021 – $4 million) and $11 million (2021 – $7 million) respectively.

(3) The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as gains and losses on asset disposals, acquisition, integration and other costs, unrealized foreign exchange gains and losses, gains and losses on risk management and other, changes in fair value of redemption options, changes in estimates of environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(4) Weighted average number of common shares are calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

TTM distributable cash flow is a non-GAAP financial measure and TTM distributable cash flow per share is a non-GAAP ratio. TTM distributable cash flow is a cash metric that adjusts for the impact of seasonality in Parkland’s business by removing non-cash working capital items and excludes the effect of items that are not considered representative of Parkland’s ability to generate cash flows. Such items include: (i) acquisition, integration, and other costs; (ii) turnaround maintenance capital expenditures, and; (iii) interest on leases and long-term debt, and principal payments on leases attributable to non-controlling interests. Distributable cash flow does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Parkland uses this non-GAAP financial measure to monitor normalized cash flows of the business by eliminating the impact of Parkland’s working capital fluctuations and expenditures used in acquisition, integration and other activities, which can vary significantly from quarter-to-quarter. See below for a reconciliation of distributable cash flow and TTM distributable cash flow to cash generated from operating activities and TTM cash generated from operating activities.

Three months ended

Trailing
twelve
months
ended

December
31, 2022

($ millions, unless otherwise noted)

March 31,
2022

June 30,
2022

September
30, 2022

December
31, 2022

Cash generated from (used in) operating activities(1)

(48)

343

402

629

1,326

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(26)

(27)

(11)

(64)

(74)

316

391

629

1,262

Reverse: Change in other liabilities and other assets

(2)

(1)

23

(23)

(3)

Reverse: Net change in non-cash working capital

436

36

(112)

(221)

139

Include: Maintenance capital expenditures attributable to Parkland

(29)

(44)

(62)

(118)

(253)

Exclude: Turnaround maintenance capital expenditures

4

3

7

Include: Proceeds on asset disposals

1

2

1

4

8

Reverse: Acquisition, integration and other costs

13

18

45

41

117

Include: Interest on leases and long-term debt

(64)

(71)

(74)

(86)

(295)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

2

Include: Payments on principal amount on leases

(37)

(38)

(50)

(52)

(177)

Exclude: Payments on principal amount on leases attributable to NCI

5

4

2

11

Distributable cash flow

250

223

168

177

818

Weighted average number of common shares (million shares)

160

Distributable cash flow per share

5.11

(3) Supplementary financial measure except for annual reporting periods, See “Supplementary Financial Measures” section of this news release.

Three months ended

Trailing
twelve

months
ended

December
31, 2021

($ millions, unless otherwise noted)

March 31,
2021

June 30,
2021

September
30, 2021

December
31, 2021

Cash generated from (used in) operating activities(1)(2)

264

322

200

118

904

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(23)

(21)

(26)

(22)

(92)

241

301

174

96

812

Reverse: Change in other liabilities and other assets

(14)

(9)

4

8

(11)

Reverse: Net change in non-cash working capital(3)

53

22

119

148

342

Include: Maintenance capital expenditures attributable to Parkland

(20)

(45)

(40)

(112)

(217)

Exclude: Turnaround maintenance capital expenditures

3

8

11

Include: Proceeds on asset disposals

5

1

4

4

14

Reverse: Acquisition, integration and other costs

5

11

12

24

52

Include: Interest on leases and long-term debt

(54)

(54)

(56)

(59)

(223)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(35)

(33)

(36)

(38)

(142)

Exclude: Payments on principal amount on leases attributable to NCI

4

4

5

5

18

Distributable cash flow(4)

186

199

190

85

660

Weighted average number of common shares (million shares)

152

Distributable cash flow per share

4.34

(1) For comparative purposes, information for certain comparative periods was restated due to a change in presentation of cash flows from (used in) operating and financing activities. Interest paid on long-term debt and leases, formerly included in “Cash generated from (used in) operating activities”, is now included in “Cash generated from (used in) financing activities”, reflecting a more relevant presentation of finance costs payments.

(2) Supplementary financial measure except for annual reporting periods, See “Supplementary Financial Measures” section of this news release.

(3) For comparative purposes, information for the quarter ended September 30, 2021 was restated due to a change in presentation for certain emission credits and allowances held for trading, which were formerly included in “Risk management and other” and are now included in “Inventories”.

Food and Company C-Store Same Store Sales Growth (”SSSG”) is a non-GAAP financial ratio and refers to the period-over-period sales growth generated by retail food and convenience stores at the same company sites. The effects of opening and closing stores, temporary closures (including closures for ON the RUN / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models in the period are excluded to derive a comparable same-store metric. Same-store sales growth is a metric commonly used in the retail industry that provides meaningful information to investors in assessing the health and strength of Parkland’s brands and retail network, which ultimately impacts financial performance. Food and Company SSSG does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. The change in label of this metric from Company C-Store SSSG to Food and Company C-Store SSSG reflects the addition of the frozen food retail business acquired as part of the M&M Acquisition. Please see below for a reconciliation of convenience store revenue (Food and C-Store revenue) of the Canada segment with the Food and Company C-Store same store sales (”SSS”) and calculation of the Food and Company C-Store SSSG.

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2022

2021

%(1)

2022

2021

%(1)

Food and Company C-Store revenue

88

93

359

390

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers and franchisees(2)

306

141

1,029

590

Less:

Rental and royalty income from retailers, franchisees and others(3)

(43)

(26)

(144)

(105)

Same Store revenue adjustments(4)(5) (excluding cigarettes)

(164)

(15)

(460)

(44)

Food and Company C-Store same-store sales

187

193

(3.5) %

784

831

(5.7) %

Less:

Same Store revenue adjustments(4) (cigarettes)

(87)

(99)

(375)

(434)

Food and Company C-Store same-store sales (excluding cigarettes)

100

94

6.0 %

409

397

3.1 %

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2021

2020

%(1)

2021

2020

%(1)

Food and Company C-Store revenue

93

95

390

406

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers(2)

141

143

590

582

Less:

Rental income from retailers and others(3)

(26)

(23)

(105)

(99)

Same Store revenue adjustments(4)(5) (excluding cigarettes)

(9)

(9)

(30)

(28)

Food and Company C-Store same-store sales

199

206

(3.2) %

845

861

(1.8) %

Less:

Same Store revenue adjustments(4)(5) (cigarettes)

(102)

(114)

(441)

(479)

Food and Company C-Store same-store sales (excluding cigarettes)

97

92

4.7 %

404

382

5.8 %

(1) Percentages are calculated based on actual amounts and are impacted by rounding.

(2) POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland’s consolidated financial statements.

(3) Includes rental income from retailers in the form of a percentage rent on Food and Company C-Store sales, royalty, franchisee fees and excludes revenues from automated teller machine, POS system licensing fees, and others.

(4) This adjustment excludes the effects of acquisitions, opening and closing stores, temporary closures (including closures for ON the RUN / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models, to derive a comparable same-store metric.

(5) Excludes sales from the 2022 Acquisitions as these will not impact the metric until after the completion of one year of the acquisitions in 2023 as the sales or volume generated in 2022 establish the baseline for these metrics.


Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including cash generated from (used in) operating activities, other than annual periods, cash generated from (used in) operating activities per share, and liquidity available to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the 2022 Annual Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. Adjusted EBITDA for the Canada and Refining segments and Total Renewable Adjusted EBITDA (being a summation of Canada and Refining segment renewable subsegments) are also total of segments measures. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 15 of the Q4 2022 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months and year ended December 31, 2022 and December 31, 2021.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(4)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(5)

For the three months ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

129

142

3,412

3,307

3,541

3,449

1,054

731

1,054

731

129

142

4,466

4,038

1,762

1,541

1,129

1,394

(849)

(718)

6,637

6,397

Sales and operating revenue

179

146

4,364

3,297

4,543

3,443

122

70

1,145

660

1,267

730

301

216

5,509

3,957

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,961

6,489

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Sales and operating revenue – after eliminations

4,364

3,297

1,204

673

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,719

6,286

Cost of purchases

173

138

3,938

2,979

4,111

3,117

121

47

933

588

1,054

635

294

185

4,871

3,567

2,129

1,367

1,675

1,279

(1,045)

(638)

7,924

5,760

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Cost of purchases – after eliminations

3,932

2,971

991

578

2,129

1,367

1,675

1,279

(1,045)

(638)

7,682

5,557

Fuel and petroleum product adjusted gross margin, before the following:

6

8

323

266

329

274

1

23

209

66

210

89

7

31

532

332

162

151

148

87

849

601

Gain (loss) on risk management and other – realized

2

2

(2)

(1)

1

1

(21)

(6)

(20)

(6)

3

2

(23)

(7)

(8)

(17)

(28)

(6)

(56)

(28)

Gain (loss) on foreign exchange – realized

4

1

4

1

4

1

(6)

1

1

(1)

2

Other adjusting items to adjusted gross margin(3)

(2)

(2)

4

4

2

4

(3)

10

(1)

15

(3)

Fuel and petroleum product adjusted gross margin

8

10

319

265

327

275

2

23

196

61

198

84

10

33

515

326

152

132

130

81

807

572

Food, convenience and other adjusted gross margin

103

52

103

52

3

6

3

6

106

58

33

23

49

47

1

(1)

188

128

Total adjusted gross margin

8

10

422

317

430

327

2

23

199

67

201

90

10

33

621

384

185

155

179

128

1

(1)

995

700

Operating costs

1

1

169

133

170

134

2

67

70

69

70

3

1

236

203

57

40

112

64

(1)

407

308

Marketing, general and administrative

2

62

40

64

40

1

3

4

4

4

3

65

44

28

24

20

24

29

27

(1)

144

119

Share in (earnings) loss of associates and joint ventures

(5)

(5)

(5)

(5)

Other adjusting items to Adjusted EBITDA

(1)

(1)

(1)

(5)

(7)

1

(1)

(6)

(7)

Adjusted EBITDA (loss) including NCI

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

103

46

40

(26)

(27)

455

285

Attributable to NCI

25

25

Adjusted EBITDA (loss) attributable to Parkland (”Adjusted EBITDA (loss)”)

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

78

46

40

(26)

(27)

455

260

Add: Adjusted EBITDA attributable to NCI

25

Less:

Acquisition, integration and other costs

41

24

Depreciation and amortization

212

156

Finance costs

94

86

(Gain) loss on foreign exchange – unrealized

8

6

(Gain) loss on risk management and other – unrealized

9

(11)

Other (gains) and losses

(21)

15

Other adjusting items

21

4

Income tax expense (recovery)

22

(22)

Net earnings (loss)

69

27

Less: Net earnings (loss) attributable to NCI

5

Net earnings (loss) attributable to Parkland

69

22

(1) Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2) Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3) Other adjusting items to adjusted gross margin mainly include $10 million (2021 – nil) of unrealized risk management gain related to underlying physical sales activity in the current period.

(4) Includes inter-segment sales and cost of purchases. See Note 26 of the Annual Consolidated Financial Statements.

(5) Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only.

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(5)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(6)

For the year ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

586

528

12,928

12,485

13,514

13,013

4,065

3,343

4,065

3,343

586

528

16,993

15,828

6,567

5,296

6,147

5,151

(3,257)

(2,903)

27,036

23,900

Sales and operating revenue

871

568

17,252

11,515

18,123

12,083

418

303

4,700

2,680

5,118

2,983

1,289

871

21,952

14,195

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

36,561

22,275

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Sales and operating revenue – after eliminations

17,252

11,515

4,890

2,744

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

35,462

21,468

Cost of purchases

841

542

15,746

10,328

16,587

10,870

373

219

3,810

2,134

4,183

2,353

1,214

761

19,556

12,462

7,867

4,201

8,051

4,367

(4,148)

(2,472)

32,540

19,319

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Cost of purchases – after eliminations

15,716

10,302

3,955

2,114

7,867

4,201

8,051

4,367

(4,148)

(2,472)

31,441

18,512

Fuel and petroleum product adjusted gross margin, before the following:

30

26

1,179

983

1,209

1,009

45

84

880

537

925

621

75

110

2,059

1,520

735

583

489

275

3,358

2,488

Gain (loss) on risk management and other – realized

7

10

3

(8)

10

2

(123)

(22)

(123)

(22)

7

10

(120)

(30)

(138)

(73)

(85)

(21)

(336)

(114)

Gain (loss) on foreign exchange – realized

1

(1)

1

(1)

(12)

2

(12)

2

1

(12)

1

(7)

(1)

2

3

(16)

3

Other adjusting items to adjusted gross margin(3)

4

4

4

1

(3)

2

1

7

(2)

Fuel and petroleum product adjusted gross margin

38

36

1,182

974

1,220

1,010

45

84

749

517

794

601

83

120

1,931

1,491

591

506

404

254

4

4

3,013

2,375

Food, convenience and other adjusted gross margin

327

204

327

204

10

9

10

9

337

213

106

86

220

169

1

(1)

663

468

Total adjusted gross margin

38

36

1,509

1,178

1,547

1,214

45

84

759

526

804

610

83

120

2,268

1,704

697

592

624

423

5

4

(1)

3,676

2,843

Operating costs

6

4

620

503

626

507

9

6

262

227

271

233

15

10

882

730

186

146

393

223

1,476

1,109

Marketing, general and administrative

4

1

217

145

221

146

1

16

15

17

15

5

1

233

160

98

83

105

68

113

94

(1)

553

406

Share in (earnings) loss of associates and joint ventures

(21)

(16)

(21)

(16)

Other adjusting items to Adjusted EBITDA(4)

(2)

(1)

(2)

(1)

(2)

(1)

(16)

(13)

(1)

(19)

(14)

Adjusted EBITDA including NCI

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

450

392

126

132

(107)

(90)

1,687

1,358

Attributable to NCI

67

98

67

98

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

383

294

126

132

(107)

(90)

1,620

1,260

Add: Adjusted EBITDA attributable to NCI

67

98

Less:

Acquisition, integration and other costs

117

52

Depreciation and amortization

743

616

Finance costs

331

323

(Gain) loss on foreign exchange – unrealized

(8)

(7)

(Gain) loss on risk management and other – unrealized

39

10

Other (gains) and losses

23

190

Other adjusting items

26

12

Income tax expense (recovery)

70

36

Net earnings (loss)

346

126

Less: Net earnings (loss) attributable to NCI

36

29

Net earnings (loss) attributable to Parkland

310

97

(1) Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon-intensity feedstocks used for co-processing and blending.

(2) Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3) Other adjusting items to adjusted gross margin mainly include $4 million (2021 – nil) of realized risk management loss related to underlying physical sales activity in another period.

(4) Other adjusting items to Adjusted EBITDA mainly include the share of depreciation and income taxes for the Isla joint venture of $11 million (2021 – $7 million). See Note 11 of the Annual Consolidated Financial Statements for further details.

(5) Includes inter-segment sales and cost of purchases. See Note 26 of the Annual Consolidated Financial Statements.

(6) Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for reconciliation purposes only.

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Parkland Announces Date of 2022 Second Quarter Results

CALGARY, AB, July 21, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2022 second quarter results after markets close on Thursday, August 4, 2022. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Friday, August 5, 2022, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/8OZXrAXJQa5

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 77903406). International participants may call 1-800-389-0704 (toll free) (Conference ID: 77903406).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and www.sedar.com after the results are released.

About Parkland

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region, and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland delivers record quarterly results

CALGARY, AB, May 4, 2022 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), a leading international food and convenience store operator, independent supplier and marketer of fuel and petroleum products and leader in renewable energy, announced today its financial and operating results for the three months ended March 31, 2022. Highlights include:

Q1 2022 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)1 of $387 million, up 23 percent year-over-year underpinned by the impact of acquisitions, consistent operating performance, continued organic growth in our marketing business, strong supply performance and robust margins.
  • Net earnings attributable to Parkland (”net earnings”) of $55 million, or $0.36 per share, basic, an increase of 90 percent from prior year and Adjusted earnings attributable to Parkland (”Adjusted earnings”)1 of $136 million, or $0.88 per share, basic, up approximately 48 percent year-over-year.
  • Trailing twelve months (”TTM”) distributable cash flow per share1 of $4.73, an increase of approximately 9 percent relative to Q1 2021.
  • Cash used in operating activities of $48 million, compared to cash generated from operating activities of $264 million, down $312 million year-over-year, driven by a working capital outlay of $436 million related to increasing commodity prices.
  • Continued to strengthen our customer proposition with the close of the previously announced acquisitions of Crevier and M&M Food Market.
  • Fuel volumes of approximately 7 billion liters, up over 26 percent from Q1 2021, reflecting the impact of acquisitions, growing customer demand for essential fuels and ongoing economic recovery from COVID.
  • Continued to expand our ON the RUN convenience brand with 37 additional locations and attracted 300,000 new members to our JOURNIE™ Rewards loyalty program.
  • Generated $25 million of Total Renewable Adjusted EBITDA1 and accomplished a world first by co-processing tall oil to create renewable fuels at the Burnaby refinery. In addition to demonstrating our leading position in co-processing, tall oil further diversifies our bio-feedstock supply chain.

______________________________________

1

Specified Financial Measure. See “Specified Financial Measures” section of this news release.

“Our first quarter results demonstrate the strength of our strategy,” said Bob Espey President and Chief Executive Officer. “We grew our marketing business by integrating recent acquisitions and leveraging our supply advantage.”

“We continue to prioritize organic growth initiatives, integrate and capture synergies from recent acquisitions and are confident we can achieve the high end of our 2022 Adjusted EBITDA guidance,” added Espey. “I am proud of the Parkland team who are dedicated to powering our customers’ journeys and energizing the communities we serve.”

Q1 2022 Segment Highlights

To align with strategic initiatives and provide greater visibility into our operations, we have made several enhancements to our reporting disclosures. To align with USA and International segment reporting, the Canada segment now includes its respective supply, trading and wholesale activities. The Burnaby refinery results can be found in a new Refining segment. In addition, Total Renewable Adjusted EBITDA and the results of our Retail and Commercial lines of business are separately disclosed. For comparative purposes, prior period information has been restated and reclassified to conform to the presentation used in the current period.

  • Canada delivered Adjusted EBITDA2 of $191 million, up 28 percent, from Q1 2021 ($149 million). Performance was underpinned by strong margins, increasing fuel volumes, the close of our previously announced acquisitions (Crevier and M&M Food Market), and organic growth. Food and Company C-Store Same Store Sales Growth2 (”SSSG”) (excluding cigarettes) was 1.7 percent. We opened 37 new ON the RUN stores and welcomed an additional 300,000 customers to our JOURNIE™ Rewards loyalty program, bringing total members to 3.2 million.
  • International delivered Adjusted EBITDA of $82 million, up 22 percent, from Q1 2021 ($67 million). Performance was underpinned by fuel volume growth primarily driven by a recovery in tourism (aviation) and wholesale, contribution from our previously announced acquisition in St. Maarten, and supply synergies from our Isla joint venture in Dominican Republic.
  • USA delivered Adjusted EBITDA of $47 million, up 147 percent, from Q1 2021 ($19 million). Performance was underpinned by prior year acquisitions and related synergies, strong margins, higher marine fuel demand and new cruise ship contracts. Margin improvements helped mitigate the impact of inflation.
  • Refining delivered Adjusted EBITDA2 of $89 million, down 8 percent, from Q1 2021 ($97 million). Utilization3 of 92.2 percent (Q1 2021 – 91.0 percent) and a stronger margin was offset by higher operating costs.

__________________________________________

2 Specified Financial Measure. See “Specified Financial Measures” section of this news release.
3 Non-Financial Measure. See “Non-Financial Measures” section of this news release.

Sustainability Leadership

Sustainability is deeply embedded across our business. Our ‘Drive to Zero’ strategy includes our goals to achieve zero safety incidents, zero spills, zero tolerance for racism and discrimination, zero tolerance for corruption, bribery, and unethical behaviour and to help our governments achieve their goal of net-zero emissions by 2050. Notable accomplishments from the first quarter include:

  • Improving our TTM lost time injury frequency rate4 to 0.14 (Q1 2021 – 0.25) and TTM total recordable injury frequency rate4 to 1.19 (Q1 2021 – 1.22), reflecting our continued focus on safety.
  • Delivering a world first, by co-processing tall oil in a fluid catalytic cracker without pretreatment to produce renewable fuels with approximately one eighth of the carbon intensity of regular fuels (tall oil is a waste product from the pulp and paper industry).
  • Co-processing over 20 million litres of bio-feedstocks, which has the equivalent impact of taking over 16,000 cars off the road.
  • Generating $25 million of Total Renewable Adjusted EBITDA.
  • Advancing our plans to launch the largest (by site count) electric vehicle ultra-fast charger network in British Columbia, which is expected to open to customers in 2022.

___________________________________

4Non-Financial Measure. See “Non-Financial Measures” section of this news release.

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended March 31,

Financial Summary

2022

2021

Fuel and petroleum product volume (million litres)

6,972

5,523

Sales and operating revenue(2)

7,606

4,226

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(4)

387

314

Canada(2)(3)(4)

191

149

International

82

67

USA(1)(3)

47

19

Refining(1)(2)(3)(4)

89

97

Corporate(3)

(22)

(18)

Net earnings (loss) attributable to Parkland

55

29

Net earnings (loss) per share – basic ($ per share)

0.36

0.19

Net earnings (loss) per share – diluted ($ per share)

0.35

0.19

Adjusted earnings (loss) attributable to Parkland (”Adjusted earnings”)(5)

136

92

Adjusted earnings (loss) per share – basic ($ per share)(5)

0.88

0.61

Adjusted earnings (loss) per share – diluted ($ per share)(5)

0.87

0.61

TTM Distributable cash flow(5)

724

646

TTM Distributable cash flow per share(5)

4.73

4.34

Dividends

49

47

Dividends per share(6)

0.3141

0.3053

Weighted average number of common shares (million shares)

155

150

Total assets

12,844

9,592

Non-current financial liabilities

6,846

4,311

(1)

The supply and trading business in the United States, formerly presented in the Supply segment (now Refining), is now included in the USA segment, reflecting a change in organizational structure in the first three months of 2021.

(2)

Certain amounts within sales and operating revenue, cost of purchases, and marketing, general and administrative were restated and reclassified to conform to the presentation used in the current period. For comparative purposes, information for the three-months ended March 31, 2021 was restated due to a change in segment presentation. The supply, wholesale and logistics businesses, formerly presented in the Supply segment, are now included in the Canada segment, reflecting a change in organizational structure in the first three months of 2022. Following the change, the Supply segment has been renamed to “Refining” as it only includes the results of the Burnaby refinery. This change better aligns Canada results with those of USA and International which carry supply businesses within their respective divisions.

(3)

Certain amounts in the comparative period were also restated and reclassified to conform to the presentation used in the current period with respect to the allocation of Corporate costs.

(4)

Total of segments measure. See “Specified Financial Measures” section of this news release.

(5)

Non-GAAP financial measure or non-GAAP financial ratio. See “Specified Financial Measures” section of this news release.

(6)

Supplementary financial measure. See “Specified Financial Measures” section of this news release.

Q1 2022 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 5, at 6:30 am MDT (8:30 am EDT) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link:

https://produceredition.webcasts.com/starthere.jsp?ei=1544615&tp_key=5bc5cc6104

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 22960035). International participants can call 1-800-389-0704 (toll-free) (Conference ID: 22960035).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The management’s discussion and analysis for the three months ended March 31, 2022 (the “Q1 2022 MD&A”) and consolidated financial statements for the three months ended March 31, 2022 (the “Q1 2022 Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 2022. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French version of the Q1 2022 MD&A and Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

Parkland’s purpose is to Power Journeys and Energize Communities. We serve essential needs in our communities, providing our customers with the essential fuels they depend on to get around, quality foods and convenience items, while helping them achieve their goals of lowering their environmental impact. Through our portfolio of trusted and locally relevant brands, we serve well over one million customers per day across Canada, the United States, the Caribbean region and Central and South America.

In addition to leveraging our supply and storage capabilities to provide the essential fuels our diverse customers depend on; we are leading our customers through the energy transition. From electric vehicle charging, renewable fuels, solar energy and compliance and carbon offset trading, we are leaders in helping our customers lower their environmental impact.

Parkland’s proven strategy is centered around organic growth, our supply advantage, acquiring prudently, and integrating successfully. We are focused on developing our existing business in resilient markets, growing, and diversifying our retail business into food, convenience, and renewable energy solutions and helping our commercial customers decarbonize their operations. Our strategy is underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives and strategies, Parkland’s ability to meet the high end of its 2022 Adjusted EBITDA guidance; Parkland’s ESG goals and targets; expected benefits and synergies to be derived from acquisitions; and Parkland’s ability to advance its growth agenda.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to, general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic; Parkland’s ability to execute its business strategies, including without limitation, Parkland’s ability to consistently identify accretive acquisition targets and successfully integrate them, successfully implement organic growth initiatives and to finance such acquisitions and initiatives on reasonable terms; Parkland’s ability to grow its supply advantage by leveraging its scale and infrastructure; Parkland’s ability to achieve its goals and targets relating to its “Drive to Zero” sustainability; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Revised Annual Information Form dated March 17, 2022, and “Forward-Looking Information” and “Risk Factors” included in the Q1 2022 MD&A dated May 4, 2022, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization, TTM lost time injury frequency rate and TTM total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q1 2022 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and ratios and supplementary financial measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 14 of the Q1 2022 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings is a non-GAAP financial measure and Adjusted earnings per share is a non-GAAP financial ratio included in this news release to assist management, investors and analysts with the analysis of the core operating performance of business activities of Parkland on a consolidated level. These non-GAAP financial measures and ratios do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 14 of the Q1 2022 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios. See below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share for the three months ended March 31, 2022 and March 31, 2021.

Three months ended March 31,

($ millions, unless otherwise stated)

2022

2021

Net earnings (loss) attributable to Parkland

55

29

Add: Net earnings (loss) attributable to NCI

13

7

Net earnings (loss)

68

36

Add:

Acquisition, integration and other costs

13

5

Loss on modification of long-term debt

24

(Gain) loss on foreign exchange – unrealized

6

4

(Gain) loss on risk management and other – unrealized

11

5

Other (gains) and losses(1)

72

45

Other adjusting items(2)

6

(1)

Tax normalization(3)

(26)

(18)

Adjusted earnings (loss) including NCI

150

100

Less: Adjusted earnings (loss) attributable to NCI

14

8

Adjusted earnings (loss)

136

92

Weighted average number of common shares (million shares)(4)

155

150

Weighted average number of common shares adjusted for the effects of dilution (million shares)(4)

156

152

Adjusted earnings (loss) per share ($ per share)

Basic

0.88

0.61

Diluted

0.87

0.61

(1)

Other (gains) and losses for the three months ended March 31, 2022, include the following: (i) $4 million non-cash valuation loss (2021 – $8 million non-cash valuation gain) due to the change in redemption value of Sol Put Option; (ii) $86 million non-cash valuation loss (2021 – $59 million non-cash valuation loss) due to the change in fair value of redemption options; (iii) $18 million gain (2021 – $6 million gain) in Other items. Refer to Note 12 of the Q1 2022 Consolidated Financial Statements.

(2)

Other Adjusting Items for the three months ended March 31, 2022 include the share of depreciation and income taxes for the Isla joint venture of $4 million (2021 – nil).

(3)

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as gains and losses on asset disposals, acquisition, integration and other costs, unrealized foreign exchange gains and losses, gains and losses on risk management and other, changes in fair value of redemption options, changes in estimates of environmental provisions, and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(4)

Weighted average number of common shares are calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

TTM distributable cash flow is a non-GAAP financial measure and TTM distributable cash flow per share is a non-GAAP ratio. TTM distributable cash flow is a cash metric that adjusts for the impact of seasonality in Parkland’s business by removing non-cash working capital items and excludes the effect of items that are not considered representative of Parkland’s ability to generate cash flows. Such items include: (i) acquisition, integration, and other costs; (ii) turnaround maintenance capital expenditures, and; (iii) interest on leases and long-term debt, and principal payments on leases attributable to non-controlling interests. Distributable cash flow does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Parkland uses this non-GAAP financial measure to monitor normalized cash flows of the business by eliminating the impact of Parkland’s working capital fluctuations and expenditures used in acquisition, integration and other activities, which can vary significantly from quarter-to-quarter.

Three months ended

Trailing twelve
months ended

March 31,
2022

($ millions, unless otherwise noted)

June 30,
2021

September 30,
2021

December 31,
2021

March 31,
2022

Cash generated from (used in) operating activities(1)

322

200

118

(48)

592

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(21)

(26)

(22)

(26)

(95)

301

174

96

(74)

497

Reverse: Change in other liabilities and other assets(2)

(9)

4

8

(2)

1

Reverse: Net change in non-cash working capital(2)

22

119

148

436

725

Include: Maintenance capital expenditures attributable to Parkland

(45)

(40)

(112)

(29)

(226)

Exclude: Turnaround maintenance capital expenditures

3

8

11

Include: Proceeds on asset disposals

1

4

4

1

10

Reverse: Acquisition, integration and other costs

11

12

24

13

60

Include: Interest on leases and long-term debt

(54)

(56)

(59)

(64)

(233)

Exclude: Interest on leases and long-term debt attributable to NCI

1

1

1

1

4

Include: Payments on principal amount on leases

(33)

(36)

(38)

(37)

(144)

Exclude: Payments on principal amount on
leases attributable to NCI

4

5

5

5

19

Distributable cash flow

199

190

85

250

724

Weighted average number of common shares (million shares)

153

Distributable cash flow per share

4.73

(1)

Supplementary financial measure. See “Specified Financial Measures” section of this news release.

(2)

For comparative purposes, information for the quarter ended September 30, 2021 was restated due to a change in presentation for certain emission credits and allowances held for trading, which were formerly included in “Risk management and other” and are now included in “Inventories”.

Three months ended

Trailing twelve

months ended

March 31,
2021

($ millions, unless otherwise noted)

June 30,
2020

September 30,
2020

December 31,
2020

March 31,
2021

Cash generated from (used in) operating activities(1)(2)

629

253

(40)

264

1,106

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(15)

(24)

(20)

(23)

(82)

614

229

(60)

241

1,024

Reverse: Change in other liabilities, other assets and other instruments

(3)

27

12

(14)

22

Reverse: Net change in non-cash working capital

(425)

89

288

53

5

Include: Maintenance capital expenditures attributable to Parkland

(50)

(18)

(39)

(20)

(127)

Exclude: Turnaround maintenance capital expenditures

16

1

2

19

Include: Proceeds on asset disposals

5

2

6

5

18

Reverse: Acquisition, integration and other costs

8

9

14

5

36

Include: Interest on leases and long-term debt

(59)

(59)

(56)

(54)

(228)

Exclude: Interest on leases and long-term debt attributable to NCI(3)

1

1

1

3

Include: Payments on principal amount on leases

(35)

(40)

(35)

(35)

(145)

Exclude: Payments on principal amount on
leases attributable to NCI

5

6

4

4

19

Distributable cash flow(4)

76

247

137

186

646

Weighted average number of common shares (million shares)

149

Distributable cash flow per share

4.34

(1)

For comparative purposes, information for previous periods was restated due to a change in presentation of cash flows from (used in) operating and financing activities. Interest paid on long-term debt and leases, formerly included in “Cash generated from (used in) operating activities”, is now included in “Cash generated from (used in) financing activities”, reflecting a more relevant presentation of finance costs payments.

(2)

Supplementary financial measure. See “Specified Financial Measures” section of this news release.

(3)

Beginning September 30, 2020, interest on leases and long-term debt attributable to NCI is excluded from distributable cash flow.

(4)

Prior to March 31, 2021, distributable cash flow and the dividend payout ratio were referred to as adjusted distributable cash flow and adjusted dividend payout ratio, respectively. The previous measures were consolidated to a single primary measure representing Parkland’s ability to generate cash flows.

Food and Company C-Store SSSG refers to the period-over-period sales growth generated by retail convenience stores at the same company sites. The effects of opening and closing stores, temporary closures (including closures for ON the RUN / Marché Express conversions), expansions, renovations, and changes in food service models in the period are excluded to derive a comparable same-store metric. Same-store sales growth is a metric commonly used in the retail industry that provides meaningful information to investors in assessing the health and strength of Parkland’s brands and retail network, which ultimately impacts financial performance. Food and Company C-Store SSSG does not have any standardized meaning under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. See below for a reconciliation of convenience store revenue of the Canada segment with the Food and C-Store Same Store Sales (”SSS”) and calculation of the Food and Company C-Store SSSG.

Three months ended March 31,

($ millions)

2022

2021

%(1)

2021

2020

%(1)

Food and Company C-Store revenue

100

92

92

89

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company
C-Store operated by retailers and franchisees(2)

130

129

130

121

Less:

Rental and royalty income from retailers, franchisees and others(3)

(25)

(24)

(24)

(24)

Same Store revenue adjustments(4)(5) (excluding cigarettes)

(25)

(7)

(5)

(3)

Same Store Food and Company C-Store Sales

180

190

(5.5)%

193

183

5.5%

Less:

Same Store revenue adjustments(4)(5) (cigarettes)

(91)

(103)

(104)

(102)

Same Store Food and Company C-Store Sales (excluding cigarettes)

89

87

1.7%

89

81

10.2%

(1)

Percentages are calculated based on actual amounts and are impacted by rounding.

(2)

POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland’s consolidated financial statements.

(3)

Includes rental income from retailers in the form of a percentage rent on Food and Company C-Store sales, royalty, franchisee fees and excludes revenues from automated teller machine, POS system licensing fees, and others.

(4)

This adjustment excludes the effects of acquisitions, opening and closing stores, temporary closures (including closures for On the Run / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models, to derive a comparable same-store metric.

(5)

Excludes sales from the businesses acquired in 2022 as these will not impact the metric until after the completion of one year of the acquisitions in 2023 as the sales or volume generated in 2022 establish the baseline for these metrics.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including dividends per share, TTM dividends and TTM cash generated from (used in) operating activities, to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 14 of the Q1 2022 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance.  Adjusted EBITDA for the Canada and Refining segments and Total Renewable Adjusted EBITDA (being a summation of Canada and Refining segment renewable subsegments) are also total of segments measures. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 14 of the Q1 2022 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months ended March 31, 2022 and March 31, 2021.

Reporting segments

Canada

Refining

International

USA

Corporate

IntersegmentEliminations(3)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(4)

For the three months ended March 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Fuel and petroleum product volume (million litres)(1)

120

80

3,300

3,044

3,420

3,124

979

804

979

804

120

80

4,279

3,848

1,524

1,229

1,860

1,086

(811)

(720)

6,972

5,523

Sales and operating revenue

121

66

3,731

2,332

3,852

2,398

73

56

1,003

554

1,076

610

194

122

4,734

2,886

1,722

1,004

2,018

892

(878)

(557)

7,790

4,347

Sub-segment eliminations(2)

(121)

(66)

(63)

(55)

(184)

(121)

Sales and operating revenue – after eliminations

3,731

2,332

1,013

555

1,722

1,004

2,018

892

(878)

(557)

7,606

4,226

Cost of purchases

109

62

3,354

2,031

3,463

2,093

54

24

798

436

852

460

163

86

4,152

2,467

1,470

835

1,840

813

(878)

(557)

6,747

3,644

Sub-segment eliminations(2)

(121)

(66)

(63)

(55)

(184)

(121)

Cost of purchases – after eliminations

3,342

2,027

789

405

1,470

835

1,840

813

(878)

(557)

6,563

3,523

Fuel and petroleum product adjusted gross margin, before the following:

12

4

317

253

329

257

19

32

203

117

222

149

31

36

520

370

229

147

129

48

909

601

Gain (loss) on risk management and other – realized

(3)

1

(4)

(3)

(3)

(70)

(5)

(70)

(5)

(3)

1

(70)

(9)

(92)

(32)

(18)

(5)

(183)

(45)

Gain (loss) on foreign exchange – realized

1

(1)

1

(1)

2

3

2

3

1

2

2

2

3

3

4

8

9

Other adjusting items to adjusted gross margin

(2)

(2)

Fuel and petroleum product adjusted gross margin

10

5

317

248

327

253

19

32

135

115

154

147

29

37

452

363

139

118

111

43

3

2

734

563

Food, convenience and other adjusted gross margin

60

48

60

48

2

1

2

1

62

49

23

22

49

31

134

102

Total adjusted gross margin

10

5

377

296

387

301

19

32

137

116

156

148

29

37

514

412

162

140

160

74

3

2

868

665

Operating costs

1

1

149

119

150

120

2

2

61

46

63

48

3

3

210

165

40

34

84

42

337

244

Marketing, general and administrative

1

1

46

31

47

32

4

3

4

3

1

1

50

34

23

19

29

13

25

20

128

87

Share in (earnings) loss of associates and joint ventures

(5)

(2)

(5)

(2)

Other adjusting items to Adjusted EBITDA

(1)

(1)

(1)

(5)

(1)

(6)

(1)

Adjusted EBITDA including NCI

8

3

183

146

191

149

17

30

72

67

89

97

25

33

255

213

109

90

47

19

(22)

(18)

414

337

Attributable to NCI

27

23

27

23

Adjusted EBITDA attributable to Parkland (”AdjustedEBITDA”)

8

3

183

146

191

149

17

30

72

67

89

97

25

33

255

213

82

67

47

19

(22)

(18)

387

314

Add: Adjusted EBITDA attributable to NCI

27

23

Less:

Acquisition, integration and other costs

13

5

Depreciation and amortization

155

154

Finance costs

70

83

(Gain) loss on foreign exchange – unrealized

6

4

(Gain) loss on risk management and other – unrealized

11

5

Other (gains) and losses

72

45

Other adjusting items(2)

6

(1)

Income tax expense (recovery)

13

6

Net earnings (loss)

68

36

Less: Net earnings (loss) attributable to NCI

13

7

Net earnings (loss) attributable to Parkland

55

29

(1) Fuel and petroleum product volume for renewable activities only includes fuel trading volumes and does not include volumes of low-carbon intensity feedstocks used for co-processing and blending.

(2) Represents elimination of transactions between Renewable and Conventional sub-segments within Canada and Refining.

(3) Includes inter-segment sales and cost of purchases. See Note 13 of the Interim Condensed Consolidated Financial Statements.

(4) Total of Conventional sub-segment is not a financial measure used by Parkland to evaluate performance and is not a Total of segment measure under NI 52-112. It is included in the table above for the reconciliation purposes only.

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Parkland announces date of 2021 Third Quarter Results and opens registration for its 2021 Investor Day

CALGARY AB, Oct. 14, 2021 /PRNewswire-HISPANIC PR WIRE/ – Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2021 third quarter results after markets close on Tuesday, November 2, 2021. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Wednesday, November 3, 2021, to discuss the results.

Parkland Logo

To listen to the live webcast and watch the presentation, please use the following link:

https://produceredition.webcasts.com/starthere.jsp?ei=1502999&tp_key=0713d330d0

Analysts and institutional investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 88891002). International participants can call 1-587-880-2171 (toll) (Conference ID: 88891002).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and SEDAR after the results are released.

2021 Investor Day – Registration is open

Parkland will host its 2021 Investor Day presentation on November 16, 2021 at 7:00 a.m. MDT (9:00 a.m. EDT). The event will be held at the Fairmont Royal York in Toronto, Ontario and simultaneously webcast with video for those unable to attend in person.

To ensure a safe and engaging in-person event, we will be following Ontario’s COVID-19 protocols, which include showing proof of vaccination, wearing face masks when not consuming food, and physical distancing.

Analysts and investors who wish to attend the event, either in person or remotely, are invited to register using the following link: https://parkland.fluid.events/ParklandInvestorDay

The event will include presentations from Parkland’s leadership team on our long-term growth and energy transition strategy, capital allocation and financial outlook.

About Parkland

Parkland is a leading convenience store operator and independent supplier and marketer of fuel and petroleum products. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Photo – https://mma.prnewswire.com/media/1660423/Parkland_Corporation_Parkland_announces_date_of_2021_Third_Quart.jpg

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Parkland advances U.S. growth strategy with acquisition of Sevier Valley Oil Company, Inc.

CaribPR Wire, CALGARY, Alberta, Nov. 10, 2020: Parkland Corporation (“Parkland”, “we”, “our”, or “the Company”) (TSX:PKI) is pleased to announce that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has entered into an agreement to acquire all the assets of Sevier Valley Oil Company, Inc. and its related companies (collectively, “SVO”).

Based in Richfield, Utah, SVO is a well-established retail and commercial fuel business with annual fuel and petroleum product volume of approximately 350 million litres. SVO’s primary operations are in Southwestern Utah along with a presence in Northern Utah and Colorado. The acquisition of SVO adds seven company retail locations and over 20 retail dealers in addition to robust diesel and lubricant distribution capabilities.

“We continue to expand our U.S. footprint and execute on our growth strategy,” said Doug Haugh, President of Parkland USA. “This acquisition meaningfully expands our retail presence in rapidly growing Southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience store brand, enhance our customer proposition and drive incremental value.”

“The acquisition strongly complements our existing Rockies Regional Operating Center and positions us for further organic and acquisition growth in neighboring Nevada and Arizona,” added Haugh. “We are delighted to welcome Garrett Ekker and the SVO team to Parkland and look forward to the continued growth of our USA business.”

This acquisition is at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded out of existing credit facility capacity. SVO’s annual fuel and petroleum product volume of approximately 350 million litres is based on the trailing-twelve-month period ending July 2020 and contains a mix of retail, wholesale and commercial volume consistent with our existing USA segment.

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.

Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the acquisition of SVO and the timing thereof; expected benefits of the acquisition, including potential organic growth and acquisition opportunities and the anticipated funding of the acquisition.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete this acquisition; failure to satisfy the conditions to closing of the acquisition; failure to achieve the anticipated benefits of the acquisition; general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 30, 2020 and in “Forward-Looking Information” and “Risk Factors” in Parkland’s annual MD&A for the year ended December 31, 2019 dated March 5, 2020 and in the interim MD&A for the three and nine month period ended September 30, 2020 dated November 3, 2020, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

About Parkland
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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Parkland Corporation Announces Date of 2020 Third Quarter Results

CaribPR Wire, CALGARY, Alberta, Oct. 20, 2020: Parkland Corporation (“Parkland”) (TSX:PKI) expects to announce its 2020 third quarter results after markets close on Tuesday, November 3, 2020. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Wednesday, November 4, 2020, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link:
https://produceredition.webcasts.com/starthere.jsp?ei=1390182&tp_key=aefbc264cf

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 51942789).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and SEDAR after the results are released.

About Parkland

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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Parkland releases inaugural Sustainability Report

CaribPR Wire, CALGARY, Alberta, Sept. 30, 2020: Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) is pleased to publish its inaugural Sustainability Report which outlines its established environmental, social and governance practices and sets the stage for the development of an enterprise-wide sustainability strategy. The report includes insight into Parkland’s 2019 operations and key 2020 milestones and is available at www.parkland.ca/Sustainability

“Our inaugural Sustainability Report is a natural next step in our sustainability journey,” said Bob Espey, President and Chief Executive Officer. “While sustainability practices are already deeply embedded across our business, we have completed critical work to identify five strategic focus areas that are important to our business and stakeholders and align with our ambitious growth strategy. This report and the work that underpins it are just a start. Together, they set the stage for us to develop an enterprise-wide sustainability strategy that is grounded in meaningful targets, ongoing transparency and regular performance reporting.”

The report highlights Parkland’s existing sustainability practices coupled with the company’s philosophy and aspirations within each of its five strategic focus areas;

  • Climate Change: We are committed to meeting our customers growing need for energy while at the same time contributing to the world’s transition to a lower carbon future.
  • Safety and Emergency Preparedness: Safety is foundational to our organizational culture, and the safety of our people, customers and communities is our top priority.
  • Product Transportation and Storage: Extensive systems and processes across our operations protect the environment and ensure our products stay safely where they belong.
  • Diversity and Inclusion (D&I): Underpinning our focus on attracting and retaining the best talent, we are committed to delivering equal opportunities and an environment where all employees can contribute their best.
  • Governance and Ethics: We measure our business practices against the highest standards of ethical conduct, and are guided by our values of Safety, Integrity, Community and Respect.

“This report highlights the importance of sustainability to Parkland and provides a springboard to the creation of our enterprise sustainability strategy,” said Christy Elliott, Vice President, Senior General Counsel and Executive Sponsor of Sustainability. “We will build on our accomplishments and low carbon leadership and are actively developing meaningful targets across our business.”

Parkland’s Sustainability Report is aligned with recommendations from the Task Force on Climate Related Financial Disclosures (TCFD) and includes guidance from the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI).

About Parkland Corporation
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage, acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Forward Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). In particular, this news release contains forward-looking statements with respect to, among other things, the development of an enterprise-wide sustainability strategy that is grounded in meaningful targets, ongoing transparency and annual performance reporting, and Parkland’s aspirations with respect to Climate Change, Safety and Emergency Preparedness, Product Transportation and Storage, Diversity and Inclusion (D&I) and Governance and Ethics.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators; changes and developments in regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form and in “Forward-Looking Information” and “Risk Factors” in Parkland’s quarterly MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

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Parkland increases financial flexibility under its syndicated credit facilities

CaribPR Wire, CALGARY, Alberta, June 09, 2020: Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) is pleased to announce a proactive update to its syndicated credit agreement terms. Highlights of the amended credit agreement include:

  • An additional C$300 million of commitments under our syndicated credit facilities, maturing January 8, 2023. Pro forma the amendment, cash and cash equivalents plus unused credit facilities as of March 31, 2020 would have been C$1.2 billion.
  • As at March 31, 2020 Total Funded Debt to Credit Facility EBITDA was 2.9 times, with a covenant limit of 5.0 times. Effective from Q4 2020 though Q3 2021, Parkland’s Total Funded Debt to Credit Facility EBITDA covenant limit will increase to 6.0 times, reverting to 5.0 times thereafter.
  • The effective interest rate on the updated syndicated credit facilities is materially unchanged and all other financial covenants remain the same.

“We continue to see improvement in fuel demand and robust convenience store sales in most markets,” said Darren Smart, Interim-Chief Financial Officer. “Recognizing that the COVID-19 recovery remains dynamic, we have taken proactive steps to secure additional financial flexibility and to position us to take advantage of potential future growth opportunities. We remain focused on maintaining our balance sheet strength and are committed to exercising strict capital discipline. We would like to thank our banking group for their ongoing support and partnership in our future success.”

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “potential” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to the ability to take advantage of potential future growth opportunities.

No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. See the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 30, 2020 and in “Forward-Looking Information” and “Risk Factors” in the Q1 2020 MD&A, which are filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). See Section 12 – “Non-GAAP Financial Measures” of the Q1 2020 MD&A for a description of “Credit Facility EBITDA” and “Total Funded Debt to Credit Facility EBITDA”.

About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Click Here for More Information »

Parkland completes acquisition of ConoMart Super Stores

CaribPR Wire, CALGARY, Alberta, May 13, 2020: Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) announced today that through its wholly-owned U.S. subsidiaries (collectively, “Parkland USA”), it has completed the previously announced asset agreement to acquire ConoMart Super Stores.

ConoMart Super Stores operates seven retail sites located in and around Billings, Montana. Please see Parkland’s press release dated March 9, 2020, for more information about this acquisition.

About Parkland
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Click Here for More Information »

Parkland announces date of 2020 first quarter results, virtual Annual General Meeting and confirms completion of the Burnaby Refinery turnaround

CaribPR Wire, CALGARY, Alberta, April 27, 2020: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) expects to announce its 2020 first quarter results after markets close on Wednesday, May 6, 2020. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Thursday, May 7, 2020, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link:
https://produceredition.webcasts.com/starthere.jsp?ei=1302735&tp_key=014a45b92e

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 14261230).

Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Financial Statements and Management’s Discussion and Analysis will be posted to www.parkland.ca and SEDAR after the results are released.

Virtual Annual General Meeting
Due to the ongoing public health concerns regarding COVID-19, Parkland will hold its 2020 Annual and Special Meeting of shareholders in a virtual-only format. The virtual-only meeting will be conducted via live audio webcast online on Thursday, May 7, 2020, at 9:00 a.m. MDT (11:00 a.m. EDT).

All Shareholders will be able to attend the live virtual meeting. Information for shareholders is posted in Parkland’s Management Information Circular dated March 31, 2020 available at www.parkland.ca and under Parkland’s profile at www.sedar.com.

Burnaby Refinery turnaround
Parkland is pleased to announce the Burnaby Refinery turnaround is complete and confirm the facility is now fully operational.

About Parkland

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Click Here for More Information »

Parkland delivers record 2019 Adjusted EBITDA and increases dividend

CaribPR Wire, CALGARY, Alberta, March 05, 2020: Parkland Fuel Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced today its fourth quarter and full-year 2019 financial and operating results and provided its 2020 Guidance. Fourth quarter and full-year highlights include:

  • Fourth quarter Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $302 million and net earnings (attributable to Parkland) of $176 million ($1.19 per share, basic), up 6 percent and 129 percent respectively from the fourth quarter of 2018
  • Full-year 2019 Adjusted EBITDA of $1,265 million, up 43 percent from 2018
  • Full-year 2019 net earnings (attributable to Parkland) of $382 million ($2.60 per share, basic), up 85 percent from 2018
  • Full-year 2019 fuel and petroleum product volume of 22.4 billion litres, up 32 percent from 2018
  • Full-year 2019 Adjusted distributable cash flow of $561 million ($3.82 per share) and adjusted dividend payout ratio of 32 percent
  • Delivered $180 million run-rate synergies from the 2017 Ultramar and Chevron acquisitions; one year ahead of schedule
  • Demonstrated continued balance sheet strength and financial flexibility with a Total Funded Debt to Credit Facility EBITDA ratio of 2.8 times as of December 31, 2019
  • 2020 Adjusted EBITDA Guidance of $1,130 million +/- 5 percent and 2020 Total Capital Expenditures of $575 million +/- 5 percent

“I am proud of the team’s accomplishments in 2019,” said Bob Espey, President and Chief Executive Officer. “In addition to celebrating our 50th year as a publicly traded company, we continued to deliver across all our strategic pillars. We advanced our organic growth initiatives, acquired and integrated four businesses, captured synergies and accelerated our low carbon fuel capability. We achieved an outstanding first year of International operations, our 16th straight quarter of positive C-store SSSG in Canada, and saw our US organic growth strategy bear fruit.”

“Underpinned by our integrated business model, diverse geographic platform, extensive product offering and balance sheet strength, we funded our 2019 growth capital and US M&A program within cash flow,” added Espey. “Parkland has a proven history of growth and value creation and the opportunities in front of us have never been greater. Thank you to the Parkland team for another great year and for continuing our focus on safe and reliable operations.”

Dividend Increase

Parkland’s annualized common share dividend will increase two cents per share, from $1.194 to $1.214, effective with the monthly dividend payable on April 15, 2020 to shareholders of record at the close of business on March 20, 2020.

Segment Highlights

Supply
The Supply segment delivered strong performance through full-year 2019, driven by safe and reliable operations at the Burnaby refinery, strong refining margins and consistent execution from our integrated logistics operations. We continued to successfully co-process biofeeds at the Burnaby refinery, reinforcing our leadership in low-carbon fuel refining while supporting British Columbia’s low carbon fuel aspirations. Fourth quarter and full-year highlights include:

  • Fourth quarter Adjusted EBITDA of $152 million (Pre-IFRS 16: $142 million), a decrease of $57 million relative to 2018 (excluding the impact of IFRS 16). The fourth quarter of 2018 experienced exceptionally wide Western Canadian crude differentials which drove higher than normal refining margins in that period
  • Fourth quarter Burnaby refinery utilization of 91.6 percent was slightly lower than expected due to a third party electrical outage which interrupted throughput for 6 days
  • Produced approximately 1,200 bbl per day of biofuels throughout 2019; enough to supply around 10,000 vehicles with renewable gasoline for a year

Canada
We continued to advance our retail initiatives, including the national roll out of JOURNIE™ Rewards with CIBC as our strategic banking partner. We are highly focused on network development, growing our On the Run / Marché Express brand and developing innovative store concepts to enhance our customer value proposition and drive traffic. In 2019 we held our market share position in a competitive fuel margin environment and continued to grow the snacks, beverages and carwash categories. Fourth quarter and full-year highlights for Canada Retail include:

  • Fourth quarter Adjusted EBITDA of $56 million (Pre-IFRS 16: $48 million), a decrease of $30 million relative to 2018 (excluding the impact of IFRS 16) driven by lower retail fuel margins and $3 million of additional Marketing, General and Administrative costs attributed to the development of JOURNIETM
  • Fourth quarter Company C-Store same-store-sales growth (”SSSG”) of 0.9 percent, our 16th straight quarter of positive C-store SSSG. Excluding the impact of cigarette sales, C-Store SSSG would have been 7.1 percent. For the full year 2019, Company C-Store SSSG was 2.5 percent, or 5.5 percent excluding the impact of cigarettes
  • Fourth quarter Company volume SSSG was (3.1) percent. For full-year 2019, we maintained our market share and Company volume SSSG was essentially flat
  • Added 27 New to Industry (”NTI”) sites and converted 65 sites to On the Run / Marché Express in 2019
  • After a year of piloting the JOURNIE™ Rewards program, soft launch in Q4 2019 and full launch beginning in January 2020, we are seeing strong program metrics across Canada. Mobile membership engagement and members opting for mobile communication are both over 50 percent. We are seeing higher average fill rates and C-store basket size for program members, which indicates the program design is resonating for customers. We are halfway through our national launch and target approximately 1,000 participating sites by March 31, 2020. We encourage readers to sign up for the program using the mobile app available for anyone to download on iOS and Android platforms. For more information on JOURNIE™ and how to become a registered member please visit www.journie.ca
  • On February 24, 2020, we announced a multi-year agreement with Triple O’s restaurants to strengthen our range of freshly prepared, high quality meal options across Canada

The Canada Commercial segment continues to position for growth, advancing our Regional Operating Center (”ROC”) model transition and National Fueling Network (”NFN”) platform. We continue to improve our operating efficiency through the ROC transition, cost management initiatives and strategic focus on higher margin business. NFN is a unifying national commercial brand which we expect to launch in the second half of 2020. We continue to feel the impact of weaker forestry and upstream energy sectors but have benefited from our diverse product and geographic offering within Canada. Fourth quarter highlights for Canada Commercial include:

  • Adjusted EBITDA of $33 million (Pre-IFRS 16: $31 million), up $4 million relative to 2018 (excluding the impact of IFRS 16)
  • Fuel and petroleum product volume of 804 million litres, relatively flat to 2018

International
The International segment delivered strong performance in 2019, exceeding our investment case in the first year. Supported by operational execution, we delivered on our organic growth initiatives with strong volume growth in wholesale, LPG, aviation, and bunkering, managed costs and improved shipping optimization. We are on track to meet our synergy targets by the end of 2021. Fourth quarter highlights include:

  • Adjusted EBITDA of $73 million (Pre-IFRS 16: $58 million)
  • Fuel and petroleum product volume of 1,581 million litres, consisting of 460 million litres sold through retail channels and 1,121 million litres sold through commercial and wholesale channels

USA
We continued to progress our organic growth and acquisition strategy in the US, adding three businesses in 2019 and another subsequent to year-end. The Tropic Oil acquisition, based in Florida, added a third ROC which will be the operating platform that drives organic growth and enables further acquisitions across the region, while also leveraging our International operations. We are starting to realize the benefits of local scale, delivering strong organic fuel volume growth, improved lubricant supply economics and C-store merchandising savings. Fourth quarter highlights include:

  • Adjusted EBITDA of $15 million (Pre-IFRS 16: $15 million), up $4 million relative to 2018
  • Fuel and petroleum product volume was 621 million litres, up 93 percent relative to 2018

Corporate
The Corporate segment includes centralized administrative services and expenses incurred to support operations. Fourth quarter highlights include:

  • Total costs of $27 million (Pre-IFRS 16: $28 million)
  • As a percentage of total adjusted gross profit, marketing, general and administrative expenses favorably decreased to 3.8 percent (down from 5.5 percent in 2018)

Consolidated Financial Overview

On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. For further information, refer to the Q4 2019 Annual Consolidated Financial Statements (”Q4 2019 FS”) and Q4 2019 Management’s Discussion and Analysis (”Q4 2019 MD&A”) for the year ended December 31, 2019.

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

2019(4)

2018(4)

2017(4)

2019(4)

2018(4)

2017(4)

Financial Summary
Fuel and petroleum product volume (million litres)

5,925

4,354

4,432

22,408

16,978

13,333

Adjusted gross profit(1)

728

587

469

2,832

1,995

1,094

Adjusted EBITDA including non-controlling interest (”NCI”)

327

285

198

1,358

887

418

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1)

302

285

198

1,265

887

418

Supply

152

199

94

658

561

160

Canada Retail

56

78

94

283

316

231

International

73

281

Canada Commercial

33

27

28

99

93

70

USA

15

11

4

56

28

16

Corporate

(27

)

(30

)

(22

)

(112

)

(111

)

(59

)
Net earnings

186

77

49

414

206

82

Net earnings attributable to Parkland

176

77

49

382

206

82

Net earnings per share ($ per share)
Per share – basic

1.19

0.58

0.37

2.60

1.56

0.70

Per share – diluted

1.17

0.57

0.37

2.55

1.53

0.69

Distributable cash flow(2)

149

151

45

564

416

151

Per share(2)(3)

1.01

1.14

0.33

3.84

3.15

1.29

Adjusted distributable cash flow(2)

142

175

102

561

568

251

Per share(2)(3)

0.96

1.32

0.78

3.82

4.30

2.15

Dividends

44

41

39

177

159

138

Dividends declared per share outstanding

0.2985

0.2934

0.2886

1.1906

1.1704

1.1510

Dividend payout ratio(2)

30

%

27

%

89

%

31

%

38

%

91

%

Adjusted dividend payout ratio(2)

31

%

23

%

38

%

32

%

28

%

55

%

Shares outstanding (millions)

148

134

131

148

134

131

Weighted average number of common shares (million shares)

148

133

131

147

132

117

Total Funded Debt to Credit Facility EBITDA ratio(2)

2.79

2.47

2.62

2.79

2.47

2.62

Interest coverage ratio(2)

5.32

6.52

7.65

5.32

6.52

7.65

Growth capital expenditures attributable to Parkland

69

57

15

221

109

35

Maintenance capital expenditures attributable to Parkland

91

52

50

232

187

75

(1) Measure of segment profit. See Section 13 of the MD&A.
(2) Non-GAAP financial measure. See Section 13 of the MD&A.
(3) Calculated using the weighted average number of common shares.
(4) 2019 results reflect the adoption of IFRS 16 as of January 1, 2019. 2018 and 2017 comparative figures reflect the accounting standards in effect for those years. Specifically, they are not restated to reflect the impact of IFRS 16, which is allowed under the modified retrospective approach for the adoption of IFRS 16.

The following table outlines the impact of IFRS 16 on Adjusted EBITDA as reported for the year ended December 31, 2019:

Three months ended December 31,

Year ended December 31,

($ millions)

2019

2018

2019

2018

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Supply

152

(10

)

142

199

658

(32

)

626

561

Canada Retail

56

(8

)

48

78

283

(26

)

257

316

Canada Commercial

33

(2

)

31

27

99

(7

)

92

93

International

73

(15

)

58

281

(57

)

224

USA

15

15

11

56

(2

)

54

28

Corporate

(27

)

(1

)

(28

)

(30

)

(112

)

(4

)

(116

)

(111

)
Consolidated

302

(36

)

266

285

1,265

(128

)

1,137

887

(1) Pre-IFRS 16 amounts are comparable to the reported information for the respective prior periods, which were calculated under IAS 17.

Formalization of Environmental, Social & Governance (”ESG”) Committee

In 2019, Parkland’s Board appointed an Environmental, Social & Governance (”ESG”) committee to carry out its governance and oversight responsibilities in relation to these matters. We also initiated a Sustainability Task Force which is comprised of cross-functional leaders that represent each of our business streams. The Sustainability Task Force is responsible for helping develop our sustainability strategy, policy and disclosure. As part of this process, we will look for innovative sustainable business opportunities to continue providing value to our customers, shareholders and communities.

2020 Adjusted EBITDA and Capital Program Guidance

Our 2020 plan targets cash flow in excess of capital expenditures. Details of our 2020 plans are below:

Guidance Metric ($ millions)
Adjusted EBITDA (1)

1,130

+/- 5%
Capital Expenditures
Growth

300

2020 Refinery Turnaround Maintenance

60

Other Maintenance

215

Total Capital Expenditures (2)

575

+/- 5%
Approximate Capital Breakdown

Total Capital Expenditures (2)

Supply

40%

Canada

35%

International

15%

USA

5%

Corporate

5%

Consolidated

100%

(1) the “2020 Adjusted EBITDA Guidance Range” (2) the “2020 Capital Program”

Our 2020 Capital Program supports our 3-5 percent organic growth target on marketing related volumes and is focused on network development, expanding digital capabilities, improving customer value proposition, enhancing our supply & logistics capability and investing in our low carbon advantage. 2020 Refinery Turnaround Maintenance capital expenditures exclude an additional $25 million of operating expenses related to the turnaround.

The 2020 Adjusted EBITDA Guidance Range and 2020 Capital Program include some other key assumptions highlighted below:

  • An 8-week turnaround at the Burnaby refinery, currently underway and expected to last until the beginning of April 2020
  • Refining, fuel and non-fuel margin forecasts based on our view of future market conditions which are consistent with rolling three year averages
  • Includes the portion of International operations that is attributable to Parkland (75 percent)
  • The low end of our 2020 Guidance Range accounts for potential adverse market conditions or interruptions to our operations, as well as the potential for lower margins than currently observable, while the high end of our 2020 Guidance Range accounts for greater than expected contributions from acquisition synergies, organic growth and higher margins than currently observable

In addition, the factors and assumptions which contribute to Parkland’s assessment of the 2020 Adjusted EBITDA Guidance Range and 2020 Capital Program are consistent with existing Parkland disclosure and such guidance is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Q4 2019 MD&A and the Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, March 6 at 6:30am MST (8:30am EST) to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link:

https://event.on24.com/wcc/r/2202396/DE9374B8003A48A6DC3F09374333E802

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 95848696). International participants can call 1-587-880-2171 (toll) (Conference ID: 95848696).

Please connect and log in approximately 10 minutes before the beginning of the call.

The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The Q4 2019 MD&A and Q4 2019 FS provide a detailed explanation of Parkland’s operating results for the year ended December 31, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, cash flow growth, run-rate synergies, fuel volume growth, business objectives, the 2020 Adjusted EBITDA Guidance Range and the 2020 Capital Program, the expected launch of the National Fueling Network, contribution of the Sol business and other previous acquisitions, strategic marketing and operational efforts to increase fuel volume, the ongoing launch of the JOURNIE™ Rewards loyalty program, U.S. growth opportunities, and supply improvement and optimization and plans and objectives of or involving Parkland.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in the Q4 2019 MD&A dated March 5, 2020, filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, total funded debt to credit facility EBITDA ratio, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 13 of the Q4 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q4 2019 MD&A and Note 27 of the Q4 2019 FS for a reconciliation of these measures of segment profit. Annual synergies is a forecasted annualized measure and is considered to be forward-looking information. See Section 13 of the Q4 2019 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

In addition to non-GAAP financial measures, Parkland uses a number of operational KPIs to measure the success of our strategic objectives and to set variable compensation targets for employees. These KPIs are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Sections 3 and 13 of the Q4 2019 MD&A for further details.

Investors are cautioned that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indication of Parkland’s performance.

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q4 2019 FS and Q4 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Click Here for More Information »

Parkland completes acquisition of Kellerstrass Oil

CaribPR Wire, CALGARY, Alberta, Feb. 14, 2020: Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has completed the previously announced acquisition of the entities and assets comprising Kellerstrass Oil Company (collectively, “Kellerstrass”).

Based in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming. Please see Parkland’s press release dated January 16, 2020 for more information about this acquisition.

About Parkland
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

Click Here for More Information »

Parkland announces internal appointment of Darren Smart to Interim Chief Financial Officer

CaribPR Wire, CALGARY, Alberta, Nov. 12, 2019: Parkland Fuel Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced that Darren Smart has assumed the role of Interim Chief Financial Officer (“CFO”) in addition to his current role as Parkland’s Senior Vice President, Strategy and Corporate Development. As previously announced, Mike McMillan, who has served as the company’s CFO since 2015 will be leaving the company. Mike will be available to support Darren’s transition until December 31, 2019.

“We are pleased that Darren has assumed the Interim CFO role in addition to his existing accountabilities,” said Bob Espey, Parkland’s President and Chief Executive Officer. “During the past five-years, Darren has played a significant commercial and financial leadership role in the company. I am confident he will do an excellent job and provide strong continuity as we search for a permanent Chief Financial Officer.”

“Mike has made exceptional contributions during his ten-years with Parkland,” said Espey. “On behalf of the Parkland team, I thank him for his commitment to our growth and success and offer my best wishes.”

Darren Smart joined Parkland in 2014 and leads the company’s enterprise wide strategy and corporate development activity.  He has been a member of the company’s Senior Leadership Team since 2015. Prior to joining Parkland, Darren was a Portfolio Manager at Teachers’ Private Capital, the private equity arm of the Ontario Teachers’ Pension Plan, where he was responsible for sourcing, evaluating and managing energy-related investments. Darren has a Master of Business Administration from Harvard Business School and a Bachelor of Business Administration with distinction from Wilfrid Laurier University.

About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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Parkland announces launch of new JOURNIE™ Rewards Canadian customer loyalty program with CIBC as its strategic banking partner

CaribPR Wire, CALGARY, Alberta, Oct. 17, 2019: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today that it is launching JOURNIE™, a nationwide rewards and customer loyalty program with CIBC as its strategic banking partner. JOURNIE™ will offer Canadians compelling fuel savings and merchandise offers and will launch in select Ontario, British Columbia and Quebec markets this fall with a full national rollout in early 2020.

JOURNIE™ members that link their personal CIBC credit and debit cards will enjoy fuel savings of three cents per litre at participating locations when paying with their CIBC card. Following its full national rollout, JOURNIE™ Rewards and the CIBC fuel savings will be available across Parkland’s coast-to-coast network of approximately 1,300 Chevron, Ultramar, Pioneer and Fas Gas sites. In addition to instant fuel savings, customers can simultaneously collect JOURNIE™ Rewards as well as rewards they already earn with their CIBC credit card.

“The launch of our JOURNIE™ Rewards program and CIBC’s participation is a major milestone for Parkland,” said Ian White, Senior Vice President of Strategic Marketing and Innovation. “By connecting our national network of fuel retail sites and On the Run and Marché Express convenience stores under a single proprietary rewards program with compelling fuel and merchandise offers, we are creating a powerful customer loyalty offer with nationwide scale.”

“This is an exciting loyalty program bringing together two innovative and customer focused companies that have an extensive nationwide retail presence and broad consumer reach,” added White. “In addition to enhancing our JOURNIE™ value proposition, our partnership with CIBC supports our strategy to grow our fuel sales volumes and increase foot traffic in our Canadian convenience stores.”

“This partnership builds on our exceptional credit card benefits, such as our four per cent cashback on fuel purchases with our CIBC Dividend® Visa Infinite* Card,” said Jeff Smith, Vice President, Client Loyalty Solutions and Partnerships, Personal Banking Products, CIBC.  “With JOURNIE™ Rewards, we’re making it radically simple for our clients to receive discounts at the pump, while helping them achieve their reward ambitions sooner.”

Parkland’s JOURNIE™ Rewards program is supported by a newly developed mobile app which will be available for anyone to download on iOS and Android platforms from October 23, 2019. For more information on JOURNIE™ and how to become a registered member please visit www.journie.ca.

Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward looking statements”). When used in this news release, the words “expect’’, ‘‘will’’, ‘‘could’’, ‘‘would’’, ‘‘supports’’ and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, launch of JOURNIE™ in early 2020, the availability of JOURNIE™ in Parkland’s coast-to-coast network, growth of fuel sales volumes and increase foot traffic in our Canadian convenience stores.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: failure to achieve the anticipated benefits of the JOURNIE™ loyalty program, general economic, market and business conditions, industry capacity, competitive action by other companies, refining and marketing margins, the ability of suppliers and/or strategic business partners to meet commitments, actions by governmental authorities and other regulators including increases in taxes, changes and developments in regulations, and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Management’s Discussion and Analysis for the most recently completed financial period, each as filed on SEDAR and available on Parkland’s website at www.parkland.ca.

About Parkland
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization. *JOURNIE and associated work marks are trade-marks of Parkland Fuel Corporation.

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Parkland Fuel Corporation Announces Record 2019 Second Quarter Results and Increases its 2019 Adjusted EBITDA Guidance Range to $1.165 Billion ± 5%

Adjusted EBITDA Guidance Range Increased on Strength of Supply, International, USA and Synergy Capture

CARIBPR WIRE, CALGARY, Alberta, Aug. 01, 2019: Parkland Fuel Corporation (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced today the financial and operating results for the three and six months ended June 30, 2019. All financial figures are expressed in Canadian dollars unless otherwise noted.

“The strength of Parkland’s diverse portfolio and integrated assets was on full display in the second quarter, driving outstanding results” said Bob Espey, President and Chief Executive Officer. “Our International, USA and Supply segments underpinned our performance, and we also benefited from further synergy capture including early wins within Sol. Our Canadian Retail business exhibited another quarter of strong volume and convenience store KPI’s, demonstrating the strength of our marketing program and operational execution. Our first half performance and outlook for the base business give us confidence to increase our full-year 2019 Adjusted EBITDA Guidance Range from $1,065 million to $1,165 million (± 5%). Thanks to the entire Parkland team for their hard work and continued focus on safety to deliver another strong quarter.”

Q2 2019 Highlights

  • Second quarter Adjusted EBITDA was $346 million and net earnings attributable to Parkland were $105 million ($0.72 per share, basic). The strong performance was primarily driven by positive contributions from the Sol Transaction, strong Supply results due to refining margins and synergy capture, and continued execution of our US growth strategy. Excluding the impact of IFRS 16, Parkland’s Adjusted EBITDA was $315 million and net earnings were $110 million.
  • Second quarter fuel and petroleum product volume was 5.5 billion litres, compared to 4.2 billion litres in Q2 2018. The increase was primarily driven by volumes from the Sol Transaction.
  • Second quarter adjusted distributable cash flow increased by $17 million to $156 million (increased by $0.01 per share to $1.06 per share), resulting in an adjusted dividend payout ratio of 29%. Adjusted distributable cash flow is a non-GAAP measure, which we have amended to remove the impact of IFRS 16 such that this metric is comparable year over year.
  • Growth capital expenditures attributable to Parkland were $52 million and maintenance capital expenditures attributable to Parkland were $45 million, which reflects the addition of our new International segment and higher Canada Retail and Canada Commercial growth investments.
  • Completed initiatives that are expected to result in run-rate annual synergies of approximately $140 million from the 2017 Ultramar and Chevron acquisitions. We continue to expect that annual run-rate synergies from these acquisitions will reach approximately $180 million by the end of 2020.
  • Total Funded Debt to Credit Facility EBITDA ratio of 2.5 times as at June 30, 2019.
  • Subsequent to the quarter, on July 10, 2019, Parkland closed the private offering (the “2019 offering”) of US$500 million aggregate principal amount of senior unsecured notes due 2027 (the “2019 notes”). The 2019 notes were priced at par and bear interest at a rate of 5.875% per annum, payable semi-annually in arrears beginning January 15, 2020. Parkland used the net proceeds from the offering to: (i) repay in full its US$250 million term loan facility due 2021; and (ii) repay certain outstanding amounts borrowed under its existing revolving credit facilities.
  • Total recordable injury frequency (”TRIF”), calculated on a trailing twelve-month basis, was 1.78 as at June 30, 2019 compared to 1.95 as at June 30, 2018. The reduction in our TRIF demonstrates our culture of care and drive to zero injuries and incidents in our workplace.
  • On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance and other costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. For further information, refer to the unaudited Q2 2019 Interim Condensed Consolidated Financial Statements (”Q2 2019 FS”) and Q2 2019 Management’s Discussion and Analysis (”Q2 2019 MD&A”) for the three and six months ended June 30, 2019.

Canada Retail Highlights

  • Second quarter Adjusted EBITDA was $63 million (Pre-IFRS 16: $57 million), a decrease of $25 million compared to the same period in 2018, excluding the impact of IFRS 16. The decrease in Adjusted EBITDA is primarily due to weaker retail gasoline margins across Canada, and accelerated, non-recurring marketing, general and administrative costs associated with the development of our loyalty program. Growth in volume and same-store-sales metrics demonstrate our focus on market share, operational excellence and strategic marketing programs.
  • Second quarter Company volume same-store-sales growth (”SSSG”) was 0.7%, despite poor spring weather which reduced customer traffic. The strong results demonstrate the success of our network development planning strategy, strategic marketing, operational execution and promotional efforts in response to the poor weather conditions.
  • Second quarter Company C-Store SSSG was 2.7%, our 14th consecutive quarter of positive Company C-Store SSSG. Growth was seen across all merchandise categories and was attributable to strong field level execution and the successful implementation of the On the Run / Marché Express store concepts, Parkland’s proprietary private label brand 59th Street Food Co., and higher forecourt to backcourt conversion rates despite poor spring weather conditions.
  • Partially offsetting the decrease in Adjusted EBITDA was lower operating costs, driven by continued cost control measures and the conversion of company-owned, company-operated (”COCO”) sites to company-owned, retailer-operated (”CORO”) sites, which lowers store labour costs. We continued to evolve our retail site composition in the quarter, converting approximately 10 additional Ultramar COCO sites to CORO sites. As of June 30, 2019, we have approximately 40 Ultramar sites remaining to convert.
  • Pilot results from our “Journie” loyalty program are very promising. With over six months of data, results are in-line with expectations and support our plans for our Q4 2019 launch.

Canada Commercial Highlights

  • Second quarter Adjusted EBITDA was $10 million (Pre-IFRS 16: $8 million), a decrease of $10 million compared to the same period in 2018, excluding the impact of IFRS 16. The decrease in Adjusted EBITDA is due to the decline in the Alberta oil and gas sector, specifically lower rig activity, extended break-up period and production curtailments. Wet weather conditions in the eastern provinces also impacted volumes in the agricultural, forestry, and construction segments. We continue to build for growth through our regional operations centers (”ROC”) structure, growing our national fueling network and expanding our industrial propane offer. Our cardlock strategy is also evolving to be integrated with our retail network development program and aims to increase fleet card acceptance and reciprocity.
  • Second quarter fuel and petroleum product volume decreased 8% relative to Q2 2018, primarily due to lower volumes from the Alberta oil and gas sector and unfavorable weather conditions in parts of Canada.

USA Highlights

  • Second quarter Adjusted EBITDA was $13 million (Pre-IFRS 16: $12 million), an increase of $7 million compared to the same period in 2018, excluding the impact of IFRS 16. The increase in Adjusted EBITDA is primarily due to acquisition activity, organic growth and synergy realization. The US business also benefited from strong diesel margins by sourcing product from the Canadian market via rail.
  • Parkland closed the acquisition of all the assets of Ken Bettridge Distributing Inc. (”KB Oil”) on June 1, 2019, a bulk fuel and lubricants distributor and operator of fleet fueling, convenience stores and cardlock services in Southwest Utah and Southeast Nevada. With the acquisition, Parkland added two bulk plants with cardlocks, fuel distribution through 23 trucks, nine retail stores and a small lubricants business. The acquisition of KB Oil follows on our U.S. growth strategy by establishing scale through the addition of strong local operators.
  • Second quarter fuel and petroleum product volume was 394 million litres, an increase of 148 million litres compared to the same period in 2018. The increase was primarily due to acquisition activity and organic growth initiatives.

International Highlights

  • Second quarter Adjusted EBITDA was $74 million (Pre-IFRS 16: $60 million), which reflects Parkland’s 75% ownership in Sol. Performance was driven by strong execution across the regions, early synergy capture, wholesale sales and corporate cost savings. We expect to exceed our initial expectations for 2019 Adjusted EBITDA in this segment and are on track to meet our synergy targets by the end of 2021.
  • Second quarter fuel and petroleum product volume was 1,270 million litres, consisting of 469 million litres sold through retail channels and 801 million litres sold through commercial and wholesale channels.

Supply Highlights

  • Second quarter Adjusted EBITDA was $216 million (Pre-IFRS 16: $209 million), an increase of $39 million compared to the same period in 2018, excluding the impact of IFRS 16. The increase in Adjusted EBITDA is primarily due to safe and reliable operations, strong refining crack spreads, higher refinery utilization, crude oil and diesel exports to the United States and import and blending opportunities in eastern Canada. In addition, Parkland continues to capture synergies from prior acquisitions, including the repatriation of previously exported volumes into the British Columbia market, refinery efficiencies, infrastructure optimization, economies of scale benefits and other supply initiatives. Parkland’s recently opened supply and distribution office in Houston enables Parkland to participate more effectively in global markets to support our Caribbean and US business and is integral to our supply advantage. Offsetting the increase in Adjusted EBITDA was slightly higher operating costs at the Burnaby refinery due to a third party natural gas pipeline interruption and pre-spend for the 2020 turnaround.
  • Refining margins in the quarter were driven by strong refining crack spreads and high utilization rates. For the first two months of the quarter, crack spreads were primarily driven by planned and unplanned refinery outages along the west coast of the United States. In addition, Elbow River Marketing was successful in realizing opportunities to increase crude exports to the United States.
  • Refinery utilization, which measures the amount of crude oil processed and converted to products in the Burnaby Refinery, was 94.9% for the second quarter, compared to 90.9% for Q2 2018, which was lower due to the turnaround at the Burnaby refinery.
  • We continue to successfully co-process biofeeds (tallow and canola) at the Burnaby refinery, which helps us meet provincial and federal climate regulations and establishes Parkland as a leader in low-carbon fuel refining.

Corporate Segment Highlights

  • The Corporate segment includes centralized administrative services and expenses incurred to support operations. Second quarter Adjusted EBITDA was negative $30 million (Pre-IFRS 16: negative $31 million). Marketing, general and administrative expenses increased by $2 million compared to Q2 2018, but as a percentage of total adjusted gross profit, favorably decreased to 4.0% (down from 5.3% in Q2 2018). Parkland’s objective is to manage corporate expenses tightly so that they increase at a slower pace than Parkland’s adjusted gross profit.


Consolidated Financial Overview

($ millions, unless otherwise noted) Three months ended June 30, Six months ended June 30,
2019 2018 2017 2019 2018 2017
Financial Summary
Sales and operating revenue 4,854 3,783 1,806 9,069 7,125 3,591
Adjusted gross profit(1) 728 513 168 1,425 943 359
Adjusted EBITDA including non-controlling interest (”NCI”) 370 249 54 709 402 124
Adjusted EBITDA attributable to NCI 24 48
Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1) 346 249 54 661 402 124
Net earnings (loss) 111 60 (1 ) 202 80 21
Net earnings (loss) attributable to:
Parkland 105 60 (1 ) 182 80 21
NCI 6 20
Net earnings (loss) per share ($ per share)
Per share – basic 0.72 0.45 (0.01 ) 1.25 0.61 0.20
Per share – diluted 0.70 0.45 (0.01 ) 1.22 0.60 0.20
Distributable cash flow(2) 168 118 23 293 147 61
Per share(2)(3) 1.14 0.89 0.20 2.01 1.12 0.59
Adjusted distributable cash flow(2) 156 139 39 293 249 85
Per share(2)(3) 1.06 1.05 0.35 2.01 1.89 0.82
Dividends 45 41 33 88 79 61
Dividends declared per share outstanding 0.2985 0.2934 0.2886 0.5936 0.5836 0.5738
Dividend payout ratio(2) 27 % 35 % 146 % 30 % 54 % 99 %
Adjusted dividend payout ratio(2) 29 % 29 % 84 % 30 % 32 % 71 %
Total assets 9,104 5,592 4,281 9,104 5,592 4,281
Total long-term liabilities 4,958 2,533 2,075 4,958 2,533 2,075
Shares outstanding (millions) 147 132 130 147 132 130
Weighted average number of common shares (millions) 147 132 111 146 132 104
Operating Summary
Fuel and petroleum product volume (million litres)(4) 5,525 4,202 2,588 10,861 8,413 5,344
Fuel and petroleum product adjusted gross profit(2) (cpl)(5)(7)
Canada Retail 6.75 8.00 5.78 7.15 7.94 5.53
Canada Commercial(6) 7.29 8.08 9.25 9.05 11.59
USA 5.08 3.66 4.83 3.66 3.43
International 10.71 11.27
Refinery utilization(7) 94.9 % 90.9 % % 93.5 % 62.2 % %

(1) Measure of segment profit. See Section 13 of the Q2 2019 MD&A.
(2) Non-GAAP financial measure. See Section 13 of the Q2 2019 MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Canada Retail and Canada Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 13 of the Q2 2019 MD&A.
(6) For comparative purposes, fuel and petroleum product volume, and sales and operating revenue for the three and six months ended June 30, 2018 were restated due to a change in segment presentation, resulting from a reclassification of the wholesale business from the Canada Commercial segment to the Supply segment, reflecting a change in organizational structure in the second quarter of 2019.
(7) Key performance indicator. See Sections 4 and 13 of the Q2 2019 MD&A.

The following table outlines the impact of IFRS 16 on Adjusted EBITDA as reported for the three and six months ended June 30, 2019:

Three months ended June 30, Six months ended June 30,
($ millions) 2019 2018 2019 2018
Adjusted EBITDA as reported IFRS 16 Impact Pre-IFRS 16 Amount(1) Adjusted EBITDA as reported Adjusted EBITDA as reported IFRS 16 Impact Pre-IFRS 16 Amount(1) Adjusted EBITDA as reported
Canada Retail 63 (6 ) 57 82 136 (11 ) 125 151
Canada Commercial 10 (2 ) 8 18 54 (3 ) 51 56
USA 13 (1 ) 12 5 24 (1 ) 23 9
Supply 216 (7 ) 209 170 359 (13 ) 346 241
International 74 (14 ) 60 145 (28 ) 117
Corporate (30 ) (1 ) (31 ) (26 ) (57 ) (2 ) (59 ) (55 )
Consolidated 346 (31 ) 315 249 661 (58 ) 603 402

(1) Pre-IFRS 16 amounts are comparable to the reported information for the respective prior periods which was calculated under IAS 17.

Updated 2019 Outlook & Guidance Range

Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently.

Our 2019 Guidance for Adjusted EBITDA attributable to Parkland, which includes the impact of IFRS 16, is increased by $100 million to $1,165 million with an anticipated variance of up to 5% (the “2019 Guidance Range”). The increase in our 2019 Guidance Range reflects our strong performance in the Supply, International and USA segments, continued synergy capture across the portfolio, a conservative outlook for retail fuel margins and lower activity levels for the Commercial segment.

In addition, the Company continues to expect approximately $200 million of growth capital expenditures and $200 million of maintenance capital expenditures in 2019. We have identified additional growth capital opportunities within the Sol business which will be evaluated for investment later in the year.

The 2019 Guidance Range includes some other key assumptions highlighted below:

  • Includes Sol’s Adjusted EBITDA that is attributable to Parkland, now forecast above initial expectations
  • Burnaby refining margins forecast is based on our view of future market conditions
  • The performance of recently acquired businesses, general market conditions, including but not limited to fuel margins and weather, will remain substantially consistent for the remainder of 2019
  • The low end of our 2019 Guidance Range accounts for potential adverse market conditions across our areas of operations, as well as the potential for lower refining margins than currently observable, while the high end of our 2019 Guidance Range accounts for greater than expected contributions from acquisition synergies, refining margins and organic growth

In addition, the factors and assumptions which contribute to Parkland’s assessment of the 2019 Guidance Range are consistent with existing Parkland disclosure and such guidance range is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Q2 2019 MD&A and the Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, August 2, 2019 at 6:30am MST (8:30am EST) to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link:

https://event.on24.com/wcc/r/2050152/33EA5040C6B8F9BB492A319582DB696A

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 65159943). International participants can call 1-587-880-2175 (toll) (Conference ID: 65159943).

Please connect and log in approximately 10 minutes before the beginning of the call.

The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The Q2 2019 MD&A and Q2 2019 FS provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, cash flow growth, run-rate synergies, private label program expansion, fuel volume growth, new business objectives, organic growth initiatives, growth of supply and trading business in the U.S. and Caribbean, Adjusted EBITDA Guidance, capital and maintenance expenditure forecasts, contribution of the Sol business and other previous acquisitions, strategic marketing and operational efforts to increase fuel volume, expected launch of marketing and loyalty programs, U.S. growth opportunities, and supply improvement and optimization and plans and objectives of or involving Parkland.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q2 2019 MD&A and annual MD&A dated February 28, 2019, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, total funded debt to credit facility EBITDA ratio, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 13 of the Q2 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q2 2019 MD&A and Note 20 of the Q2 2019 FS for a reconciliation of these measures of segment profit. Annual synergies is a forecasted annualized measure and is considered to be forward-looking information. See Section 13 of the Q2 2019 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

Investors are cautioned that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indication of Parkland’s performance. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q2 2019 FS and Q2 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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Parkland Fuel Corporation Announces the Results of the 2019 Annual General Meeting of Shareholders

CaribPR Wire, CALGARY, Alberta, May 02, 2019: Parkland Fuel Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced that all nine of the nominees listed in its management information circular dated March 22, 2019 (the “Information Circular”) were elected as directors of the Corporation and PricewaterhouseCoopers LLP was reappointed as Parkland’s auditor at its annual general meeting of shareholders held today (the “Meeting”). The results of these votes, as well as the results for the other items of business considered at the Meeting are set out below:

Resolution 1
Election of directors of Parkland for the ensuing year.

Nominee Votes For %For Votes Withheld %Withheld
John F. Bechtold 103,302,674 99.33% 695,848 0.67%
Lisa Colnett 103,731,193 99.74% 267,329 0.26%
Robert Espey 103,799,639 99.81% 198,883 0.19%
Timothy Hogarth 103,372,069 99.40% 626,453 0.60%
Jim Pantelidis 101,180,405 97.29% 2,818,117 2.71%
Domenic Pilla 103,893,980 99.90% 104,542 0.10%
Steven Richardson 103,791,234 99.80% 207,288 0.20%
David A. Spencer 103,727,846 99.74% 270,676 0.26%
Deborah Stein 103,786,664 99.80% 211,858 0.20%

Resolution 2
The reappointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditor of Parkland for the fiscal year ending December 31, 2019.

Votes For 103,714,046 99.68%
Votes Withheld 330,147 0.32%
Total 104,044,193

Resolution 3
The approval, on a non-binding and advisory basis, of Parkland’s approach to executive compensation as more particularly set forth and described in the Information Circular.

Votes For 96,725,902 93.01%
Votes Against 7,272,620 6.99%
Total 103,998,522

Voting results for all matters have been posted on SEDAR.


About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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Parkland Fuel Corporation Announces Record 2019 First Quarter Results

CaribPR Wire, CALGARY, Alberta, May 01, 2019: Parkland Fuel Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced today the financial and operating results for the three months ended March 31, 2019 (”Q1 2019″). All financial figures are expressed in Canadian dollars unless otherwise noted.

“Parkland had a very strong start for 2019,” said Bob Espey, President and Chief Executive Officer. “As demonstrated by our KPI’s, the Parkland team delivered another standout quarter of growth on the back of disciplined execution, a robust marketing and logistics environment and healthy refining margins. This was also the first quarter with our new International business, and we are very pleased with the results to date.

2019 marks a significant milestone in the history of Parkland, as the Company celebrates its 50th anniversary as a publicly traded company. Parkland began as a single retail gas station in Red Deer, Alberta, and today supplies or owns over 2,600 retail sites across our operations. We are proud to service retail, commercial and wholesale customers throughout Canada, the United States, the Caribbean region and the Americas. I would like to thank the entire Parkland team for their hard work and continued focus on safety to deliver another strong quarter.”

Parkland also announces that Mike McMillan, Senior Vice President and Chief Financial Officer, has decided to move back to Ontario where he can spend more time with his family. The Company will immediately begin a search process to replace Mike, and he has agreed to support us until a successor has been named and an appropriate transition period is completed.

“Mike has made exceptional contributions during his ten years with Parkland,” said Mr. Espey. “As CFO since 2015, his responsible stewardship of the Company’s financial position has allowed Parkland to execute on its growth strategy and deliver outstanding results. Mike has been instrumental in numerous initiatives across the Company, including supporting acquisition and integration efforts and driving synergies. On behalf of the Board of Directors, and all of his colleagues at Parkland, I thank Mike for his commitment to our success and offer my very best wishes in his future endeavors.”

Q1 2019 Highlights

  • On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance and other costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. Refer to the Q1 2019 Interim Condensed Consolidated Financial Statements (”Q1 2019 FS”) and Q1 2019 Management’s Discussion and Analysis (”Q1 2019 MD&A”) for further information.
  • First quarter Adjusted EBITDA was $315 million and net earnings attributable to Parkland were $77 million ($0.53 per share, basic). Excluding the impact of IFRS 16, Parkland’s Adjusted EBITDA was $288 million, and net earnings were $80 million. This exceptional performance was primarily driven by additional contributions from the Sol Transaction (as defined herein), strong Supply results as a result of the 2018 Turnaround in the first quarter of 2018 (”Q1 2018″) and continued efforts in executing Parkland’s supply strategy.
  • First quarter fuel and petroleum product volume was 5.3 billion litres, compared to 4.2 billion litres in Q1 2018. The increase was primarily driven by incremental volumes from the Sol Transaction.
  • First quarter Adjusted distributable cash flow increased by $25 million to $135 million ($0.93 per share), resulting in an Adjusted dividend payout ratio of 32%. Adjusted distributable cash flow is a non-GAAP measure, which we have amended to remove the impact of IFRS 16 such that this metric is comparable year over year.
  • Growth capital expenditures were $29 million and maintenance capital expenditures were $50 million. Combined growth and maintenance capital expenditures attributable to Parkland decreased $7 million compared to Q1 2018. First quarter capital expenditures reflects the addition of our new International segment and higher Canada Retail and Commercial growth investments, offset by lower maintenance expenditures related to a turnaround at the Burnaby refinery last year.
  • Total Funded Debt to Credit Facility EBITDA ratio of 2.7 times as at March 31, 2019.
  • We continue to expect that annual run-rate synergies on the Ultramar and Chevron acquisitions in 2017 will reach approximately $180 million by the end of 2020.
  • Subsequent to the quarter, Parkland successfully completed the second and final phase of the Chevron Transitional Services Agreement (”TSA”). Parkland converted the Enterprise Resource Planning (”ERP”) system used in the Supply segment of the Chevron business to Parkland’s ERP system on April 1, 2019.
  • In the first quarter, Parkland opened a Houston office which supports its growing supply and trading business in the U.S. and Caribbean markets.

Canada Retail Highlights

  • First quarter Adjusted EBITDA was $73 million (Pre-IFRS 16: $68 million), driven by strong volume growth and convenience store sales, offset by weaker gasoline margins in most provinces. Excluding the impact of IFRS 16, Adjusted EBITDA was relatively flat compared the same period in 2018.
  • First quarter Company Volume same-store-sales growth (”SSSG”) was 1.4%, demonstrating the success of our network development planning strategy which focuses on high growth areas, along with strategic marketing and operational efforts to increase volume.
  • First quarter Company C-Store SSSG was 6.0%, our 13th consecutive quarter of positive Company C-Store SSSG. Growth was seen across all merchandise categories and was attributable to strong field level execution and the successful implementation of the On the Run / Marché Express store concepts, Parkland’s proprietary private label brand 59th Street Food Co., and higher forecourt to backcourt conversion rates.
  • We continued to evolve our retail site composition, converting approximately 40 Company Owned, Company Operated (”COCO”) sites to Company Owned, Retailer Operated (”CORO”) sites in the quarter. As of March 31, 2019, we have approximately 50 COCO sites remaining to convert in 2019.
  • We retrofitted 12 existing On the Run / Marché Express locations and constructed one new-to-industry (”NTI”) locations in the first quarter. We are now offering 28 “59th Street Food Co.” products at select locations and are encouraged by pilot market results from our “Journie” loyalty program. We continue to plan for a Q4 2019 roll out of our Journie program across our Canadian portfolio.

Canada Commercial Highlights

  • First quarter Adjusted EBITDA was $44 million (Pre-IFRS 16: $43 million), driven by strong fuel margins on cardlock, propane, and furnace oil (particularly in Ontario and Quebec), and lower operating costs. Excluding the impact of IFRS 16, Adjusted EBITDA increased by $5 million compared to the same period in 2018.
  • First quarter fuel and petroleum product volume decreased 9% relative to Q1 2018, primarily due to margin improvement initiatives which decreased volume, but increased gross profit.
  • We continue to evolve our customer value proposition by leveraging an integrated offering of delivered diesel and lubricants, propane, home heat and cardlock road diesel across the country.

USA Highlights

  • First quarter Adjusted EBITDA was $11 million (the impact of IFRS 16 was negligible), driven by strong lubricant margins and our focus on driving new business, growing organically and managing costs. Adjusted EBITDA increased by $7 million compared the same period in 2018, primarily due to the acquisition of all of the issued and outstanding equity interests of Rhinehart Oil Co., LLC and its affiliates (the “Rhinehart Acquisition”) in 2018.
  • First quarter fuel and petroleum product volume was 331 million litres, an increase of 112 million litres compared to the same period in 2018. The increase was primarily due to the Rhinehart Acquisition and organic growth initiatives.
  • The US remains our highest growth potential area and we will continue to evaluate opportunities in this market as they arise.

International Highlights

  • Parkland successfully completed the acquisition of 75% of the outstanding shares of Sol Investments Limited (collectively, with its subsidiaries “Sol”) on January 8, 2019 (the “Sol Transaction”). Business continuity through the transition phase has been our key focus and is proceeding as planned.
  • First quarter Adjusted EBITDA was $71 million (Pre-IFRS 16: $57 million), which reflects Parkland’s 75% ownership in Sol. The performance was driven by strong fundamentals in the Eastern Caribbean and South American markets. We are encouraged by our first quarter with the new International segment and results have been tracking in-line with our expectations.
  • First quarter Fuel and petroleum product volume was 1,063 million litres, consisting of 424 million litres sold through retail channels and 639 million litres sold through commercial and wholesale channels.
  • The volumes and Adjusted EBITDA of the Eastern, Western, Spanish and French Caribbean are expected to be higher in the first and fourth quarters of the year during tourism high season. South America’s volumes and Adjusted EBITDA are expected to be influenced by activity in the natural resource industries. Adjusted EBITDA results may further be partly influenced by fluctuations in supply cost and weather.
  • The first quarter with the Sol portfolio has reinforced our thesis for the acquisition. The business has strong local teams, fortress assets with unique regional scale, and significant growth potential in several business lines such as LPG, Aviation, Retail, Commercial and Wholesale. We continue to expect approximately $42 million of annual run-rate synergies (attributable to Parkland based on its 75% share of the Sol business) by the end of 2021.

Supply Highlights

  • First quarter Adjusted EBITDA was $143 million (Pre-IFRS 16: $137 million), driven by profitable supply sourcing initiatives, propane marketing and strong refining margins near the end of the quarter. Excluding the impact of IFRS 16, Adjusted EBITDA increased by $66 million compared to Q1 2018, which was lower due to the turnaround at the Burnaby refinery. Parkland continues to drive ongoing cost improvements in our storage and distribution operations as part of our supply advantage strategy.
  • Refinery utilization, which measures the amount of crude oil processed and converted to products in the Burnaby Refinery, was 92.0% for the first quarter, compared to 33.2% for Q1 2018 which was lower due to the turnaround at the Burnaby refinery.

Corporate Segment Highlights

  • First quarter Adjusted EBITDA was negative $27 million (Pre-IFRS 16: negative $28 million). Marketing, general and administrative expenses were relatively flat compared to Q1 2018, and as a percentage of total adjusted gross profit, favorably decreased to 3.9% (down from 6.0% in Q1 2018). Parkland’s objective is to manage corporate expenses tightly so that they increase at a slower pace than Parkland’s adjusted gross profit.


Consolidated Financial Overview

($ millions, unless otherwise noted) Three months ended March 31,
2019 2018 2017
Financial Summary
Sales and operating revenue 4,215 3,342 1,765
Adjusted gross profit(1) 697 430 191
Adjusted EBITDA including non-controlling interest (”NCI”) 339 153 70
Adjusted EBITDA attributable to NCI 24
Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1) 315 153 70
Net earnings 91 20 22
Net earnings attributable to:
Parkland 77 20 22
NCI 14
Net earnings per share ($ per share)
Per share – basic 0.53 0.15 0.23
Per share – diluted 0.52 0.15 0.22
Distributable cash flow(2) 122 29 38
Per share(2)(3) 0.84 0.22 0.40
Adjusted distributable cash flow(2) 135 110 46
Per share(2)(3) 0.93 0.84 0.48
Dividends 43 38 28
Dividends declared per share outstanding 0.2951 0.2902 0.2852
Dividend payout ratio(2) 35 % 131 % 72 %
Adjusted dividend payout ratio(2) 32 % 35 % 60 %
Total assets 8,998 5,492 2,469
Total long-term liabilities 5,108 2,524 690
Shares outstanding (millions) 146 132 97
Weighted average number of common shares (millions) 145 131 96
Operating Summary
Fuel and petroleum product volume (million litres)(4) 5,336 4,211 2,756
Fuel and petroleum product adjusted gross profit(2) (cpl)(5)(7)
Canada Retail 7.59 7.88 5.25
Canada Commercial(6) 7.91 6.74 7.11
USA 4.53 3.65 3.58
International 11.95
Refinery utilization(3) 92.0 % 33.2 % %

(1) Measure of segment profit. See Section 13 of the MD&A.
(2) Non-GAAP financial measure. See Section 13 of the MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Canada Retail and Canada Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 13 of the MD&A.
(6) For comparative purposes, fuel and petroleum product volume, and sales and operating revenue for the three months ended March 31, 2018 were restated due to a change in segment presentation, resulting from a reclassification of wholesale customers from the Supply segment to the Canada Commercial segment, reflecting a change in organizational structure in 2019.
(7) Key performance indicator. See Sections 4 and 13 of the MD&A.

The following table outlines the impact of IFRS 16 on Adjusted EBITDA as reported for the three months ended March 31, 2019:

For the three months ended March 31, 2019
2019 2018
Adjusted
EBITDA as
reported

IFRS 16
Impact

Pre-IFRS
16
Amount(1)

Adjusted
EBITDA as
reported
Canada Retail 73 (5 ) 68 69
Canada Commercial 44 (1 ) 43 38
USA 11 11 4
Supply 143 (6 ) 137 71
International 71 (14 ) 57
Corporate (27 ) (1 ) (28 ) (29 )
Consolidated 315 (27 ) 288 153

(1) Pre-IFRS 16 amounts are comparable to the reported information in Q1 2018, which was calculated under IAS 17.


2019 Outlook & Guidance Range

Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently. Our 2019 Guidance for Adjusted EBITDA attributable to Parkland, prior to the impact of IFRS 16, remains $960 million with anticipated variance of up to 5 percent.

The Adjusted EBITDA impact of adopting IFRS 16 was $27 million during Q1 2019 and is expected to be approximately $105 million for full-year 2019. As a result, our 2019 Guidance for Adjusted EBITDA attributable to Parkland, including the impact of IFRS 16, is $1,065 million with an anticipated variance of up to 5% (the “2019 Guidance Range”). Our Q1 2019 results give us a high level of confidence in our 2019 Guidance Range.

In addition, the Company continues to expect approximately $200 million of growth capital expenditures and $200 million of maintenance capital expenditures in 2019.

The 2019 Guidance Range includes some key assumptions highlighted below:

  • Includes the 75% of Sol’s Adjusted EBITDA that is attributable to Parkland
  • Burnaby refining margins forecast is based on our view of future market conditions
  • The performance of recently acquired businesses, general market conditions, including but not limited to fuel margins and weather, will remain substantially consistent for the remainder of 2019
  • The low end of our 2019 Guidance Range accounts for potential adverse market conditions across our areas of operations, as well as the potential for lower refining margins than currently observable, while the high end of our 2019 Guidance Range accounts for greater than expected contributions from acquisition synergies, refining margins and organic growth

In addition, the factors and assumptions which contribute to Parkland’s assessment of the 2019 Guidance Range are consistent with existing Parkland disclosure and such guidance range is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Annual MD&A and the Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 2, 2019 at 6:30am MDT (8:30am EDT) to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link:

https://event.on24.com/wcc/r/1985616/DF7D3C78C608DF8C797A716E1CE5B7A1

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 86334895). International participants can call 1-587-880-2175 (toll) (Conference ID: 86334895).

Please connect and log in approximately 10 minutes before the beginning of the call.

The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.

Annual General Meeting

Parkland Fuel Corporation’s 2019 Annual General Meeting (”AGM”) will be held on Thursday, May 2, 2019 at 9:00am MDT at the Metropolitan Conference Centre in Calgary, Alberta. This year’s AGM will mark a significant milestone in the history of Parkland, as the Company celebrates its 50th anniversary as a publicly traded company.

MD&A and Consolidated Financial Statements

The Q1 2019 MD&A and Q1 2019 FS provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, cash flow growth, run-rate synergies, private label program expansion, fuel volume growth, new business objectives, organic growth initiatives, growth of supply and trading business in the U.S. and Caribbean, Adjusted EBITDA Guidance, capital and maintenance expenditure forecasts, contribution of the Sol business and 2018 U.S. acquisitions, strategic marketing and operational efforts to increase fuel volume, expected launch of marketing and loyalty programs, forecast crack spreads and refining margins, U.S. growth opportunities, seasonal EBITDA and volume projections, and supply improvement and optimization and plans and objectives of or involving Parkland.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q1 2019 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industries. See Section 13 of the Q1 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q1 2019 MD&A and Note 20 of the Q1 2019 FS for a reconciliation of these measures of segment profit. Annual Synergies is an annualized measure and is considered to be forward-looking information. See Section 10 of the Q1 2019 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q1 2019 FS and Q1 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

Investors are cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indication of Parkland’s performance. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

About Parkland Fuel Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

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