Archive for the ‘energy’ Category

Aruba Utility Celebrates Final Takeover of Fourth Wärtsilä Power Plant over 20 Year Partnership

WEB Aruba’s Recip Phase IV Plant
WEB Aruba’s Recip Phase IV Plant

CARIBPR WIRE, ORANJESTAD, Aruba, Fri. May 17, 2024: Technology group Wärtsilä and Water – En Energiebedrijf Aruba N.V. (WEB) will celebrate the final takeover of Recip Phase IV, a 102 MW dual-fuel power plant on the Caribbean island of Aruba. The celebration marks the completion of four power plant projects with Wärtsilä delivered over the past 20 years. Wärtsilä supplied these plants on an Engineering, Procurement and Construction (EPC) basis. WEB’s baseload power production is based on an all-Wärtsilä generating fleet totalling 194 MW.

In 2017, WEB began an earnest effort to diversify its fuel mix with liquefied natural gas (LNG). The Recip Phase IV power plant features six Wärtsilä 18V50DF dual-fuel engines which can operate on both liquid and gaseous fuels, allowing for the transition to cleaner fuels. Initially, the plant will operate on heavy fuel oil (HFO) and transition to LNG as it becomes available on the island. The increased efficiency and transition to LNG will reduce overall emissions from the WEB generating complex.

As WEB continues to add renewables to the island, the flexibility provided by Wärtsilä’s faststarting and stopping engines will enable optimal use of these intermittent resources while ensuring system stability. Renewables, such as wind and solar, are highly variable in their energy production. The flexibility provided by Wärtsilä engine technology will allow for increased adoption of renewables while avoiding grid instability and blackouts, renewable curtailment, and higher system costs.

WEB Aruba has selected the most efficient assets to complement renewables as WEB works to build a reliable, renewable energy future for Aruba. Wärtsilä’s engine power plants have replaced older units with more efficient and flexible generation. The fuel flexibility provided by dual-fuel engines adds resiliency to the company’s system while also allowing for the transition to cleaner fuels and lower emissions.

“We are excited to partner with utilities like WEB who are actively making the energy transition happen. As the Caribbean region works to decarbonise electricity generation, it is crucial to increase system flexibility to manage cost, maintain reliability and optimally enable renewables to perform,” said Jon Rodriguez, Director, Engine Power Plants, North America at Wärtsilä Energy.

The final takeover signing ceremony will take place at the WEB Aruba on 17 May, 2024.

© Wärtsilä Corporation

All Wärtsilä releases are available at www.wartsila.com/media/news-releases and at news.cision.com/wartsila-corporation where also the images can be downloaded. Use of the image(s) is allowed only in connection with the contents of this press release. Wärtsilä images are available at www.wartsila.com/media/image-bank.

Wärtsilä Energy in brief

Wärtsilä Energy is at the forefront of the transition towards a 100% renewable energy future. We help our customers and the power sector to accelerate their decarbonisation journeys through our market-leading technologies and power system expertise. Our solutions include flexible engine power plants, energy storage and optimisation technology, and services for the whole lifecycle of our installations. Our engines are future-proof and can run on sustainable fuels. Our track record comprises 79 GW of power plant capacity, of which 18 GW are under service agreements, and over 125 energy storage systems, in 180 countries around the world.

www.wartsila.com/energy

Wärtsilä in brief

Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve environmental and economic performance. Our dedicated and passionate team of 17,800 professionals in more than 280 locations in 79 countries shape the decarbonisation transformation of our industries across the globe. In 2023, Wärtsilä’s net sales totalled EUR 6.0 billion. Wärtsilä is listed on Nasdaq Helsinki.

www.wartsila.com

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Aruba Utility celebra adquisición final de cuarta central eléctrica Wärtsilä en 20 años de asociación

Central Recip Fase IV de WEB Aruba
Central Recip Fase IV de WEB Aruba

CARIBPR WIRE, ORANJESTAD, Aruba, May 18, 2024: El grupo de tecnología Wärtsilä and Water – En Energiebedrijf Aruba N.V. (WEB) celebrará la adquisición final de Recip Fase IV, una central eléctrica de biocombustible de 102 MW en la isla caribeña de Aruba. La celebración marca la conclusión de cuatro proyectos de centrales eléctricas con Wärtsilä entregados en los últimos 20 años. Wärtsilä suministró estas centrales sobre una base de ingeniería, adquisición y construcción (EPC). La producción de energía de carga base de WEB se basa en una flota generadora totalmente Wärtsilä totalizando 194 MW.

En 2017, WEB inició un serio esfuerzo para diversificar su mezcla de combustibles con gas natural licuado (GNL). La central eléctrica Recip Fase IV presenta seis motores de biocombustible Wärtsilä 18V50DF que pueden operar con combustibles líquidos y gaseosos, lo que permite la transición a combustibles más limpios. Inicialmente, la central operará con fuelóleo pesado (HFO) y hará la transición a GNL a medida que esté disponible en la isla. El aumento de la eficacia y la transición al GNL reducirán las emisiones generales del complejo generador de WEB.

Mientras WEB continúa la adición de energías renovables a la isla, la flexibilidad proporcionada por los motores de rápido arranque y parada de Wärtsilä permitirá la utilización de estos recursos intermitentes al mismo tiempo que asegura estabilidad del sistema. Las energías renovables, como eólica y solar, son altamente variables en su producción de energía. La flexibilidad proporcionada por la tecnología del motor Wärtsilä permitirá mayor adopción de energías renovables mientras que evita inestabilidad y apagones de red, reducción de energías renovables y mayores costos del sistema.

WEB Aruba ha seleccionado los activos más eficaces para complementar las energías renovables mientras que WEB trabaja para construir un futuro de energía renovable confiable para Aruba. Las centrales eléctricas de motores de Wärtsilä han reemplazado las unidades más antiguas por una generación más eficaz y flexible. La flexibilidad de combustible proporcionada por los motores de biocombustible agrega resistencia al sistema de la empresa al tiempo que permite la transición a combustibles más limpios y menores emisiones.

“Estamos muy contentos de asociarnos con empresas de servicios públicos como WEB que hacen que la transición energética ocurra de manera activa. Mientras la región del Caribe trabaja para descarbonizar la generación de electricidad, es crucial aumentar la flexibilidad del sistema para administrar los costos, mantener la confiabilidad y permitir que las energías renovables funcionen de manera óptima”, dijo Jon Rodríguez, director de centrales eléctricas de motores, América del Norte en Wärtsilä Energy.

La ceremonia final de firma de adquisición tendrá lugar en WEB Aruba el 17 de mayo de 2024.

© Wärtsilä Corporation

Todos los comunicados de prensa de Wärtsilä están disponibles en, www.wartsila.com/media/news-releases y en news.cision.com/wartsila-corporation, donde también se pueden descargar las imágenes. El uso de la (s) imagen(es) solo está permitido en conexión con el contenido de este comunicado de prensa. Las imágenes de Wärtsilä están disponibles en www.wartsila.com/media/image-bank.

Wärtsilä Energy en resumen

Wärtsilä Energy lidera la transición hacia un futuro energético cien por ciento renovable. Ayudamos a nuestros clientes y al sector de energía a acelerar sus procesos de descarbonización a través de nuestras tecnologías líderes en el mercado y experiencia en sistemas de energía. Nuestras soluciones incluyen centrales eléctricas de motores flexibles, tecnología de almacenamiento y optimización de energía y servicios para todo el ciclo de vida de nuestras instalaciones. Nuestros motores están preparados para el futuro y pueden funcionar con combustibles sostenibles. Nuestra trayectoria incluye 79 GW de capacidad de central eléctrica, de los cuales 18 GW están bajo acuerdos de servicio y más de 125 sistemas de almacenamiento de energía distribuidos a 180 países en todo el mundo.

www.wartsila.com/energy

Wärtsilä en resumen

Wärtsilä es un líder mundial en tecnologías innovadoras y soluciones de ciclo de vida para los mercados marino y energético. Enfatizamos la innovación en tecnología y servicios sostenibles para ayudar a nuestros clientes a mejorar continuamente el rendimiento ecológico y económico. Nuestro equipo dedicado y apasionado de 17.800 profesionales en más de 280 ubicaciones en 79 países da forma a la transformación de la descarbonización de nuestras industrias en todo el mundo. En 2023, las ventas netas de Wärtsilä alcanzaron un total de 6.0 mil millones de euros. Wärtsilä cotiza en el Nasdaq Helsinki.

www.wartsila.com

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Parkland Reports 2024 First Quarter Results

First quarter Adjusted EBITDA1 of $327 million

Safely restarted the Burnaby Refinery and returned to normal operations

Progressing $500 million of non-core asset dispositions

CALGARY, AB, May 1, 2024 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three months ended March 31, 2024.

“The team continues to deliver on our strategy and optimize our portfolio,” said Bob Espey, President and Chief Executive Officer. “We have identified more than $400 million of non-core assets for disposition, many of which have been sold or are in the advanced stages of negotiation. This represents more than 80 percent of our $500 million target by the end of 2025.”

“I have full confidence in our team’s ability to execute our operational plan that leverages our customer advantage and unique supply benefits, despite headwinds in some of the markets where we operate,” added Espey. “We expect to deliver our 2024 Adjusted EBITDA Guidance range of $1.95 to $2.05 billion and see a clear pathway to achieving a Leverage Ratio at the low end of our 2 to 3 times target range by the end of 2025.”

Q1 2024 Highlights

  • Adjusted EBITDA of $327 million, a decrease of 17 percent as compared to the first quarter of 2023, driven by an unplanned shutdown of the Burnaby Refinery, which began as a result of extreme cold weather and was extended by technical issues during the subsequent start-up. The Burnaby Refinery safely returned to normal operations on March 29, 2024.
  • Net loss of $5 million ($0.03 per share, basic), a decrease of $82 million as compared to the first quarter of 2023, and Adjusted earnings2 of $43 million ($0.25 per share, basic), a decrease of $71 million from the first quarter of 2023.
  • TTM Available cash flow2 of $770 million, an increase of 23 percent from 2023, and TTM Cash generated from (used in) operating activities3 of $1,683 million, consistent with 2023.
  • TTM Available cash flow per share2 of $4.38, an increase of 16 percent from 2023, and TTM Cash generated from (used in) operating activities per share3 of $9.56, a decrease of 7 percent from 2023.
  • Leverage Ratio4 of 3.1 times (2.8 times at Q4 2023), reflecting the impact of the unplanned shutdown of the Burnaby Refinery.
  • Purchased for cancellation approximately 1.8 million common shares for $82 million under our normal course issuer bid (”NCIB”) program in Q1 2024.
  • Parkland’s quarterly dividend increased from $0.34 to $0.35 per common share, or $1.40 per common share annualized, representing a 3 percent increase from the prior year. Dividends are expected to be declared and paid on a quarterly basis.

Q1 2024 Segment Highlights

  • Canada delivered Adjusted EBITDA of $191 million, up 14 percent from Q1 2023 ($167 million). This increase was primarily driven by stronger fuel unit margins, partially offset by lower commercial volumes due to unseasonably warm weather. Company same-store volume growth (”Company SSVG”5) was 5.9 percent, demonstrating the improved productivity of our company-owned network.
  • International delivered Adjusted EBITDA of $149 million, down 19 percent from Q1 2023 ($183 million). The decrease was primarily driven by lower fuel unit margins and wholesale volumes as compared to Q1 2023, partially offset by successful cost controls.
  • USA delivered Adjusted EBITDA of $33 million, up 57 percent from Q1 2023 ($21 million). Performance reflects ongoing integration efforts, including C-store improvements and On the Run rebrands. Lower fuel unit margins and volumes reflect broader industry trends.
  • Refining reported an Adjusted EBITDA loss of $32 million, compared to Adjusted EBITDA of $38 million in Q1 2023. Composite utilization5 at the Burnaby Refinery was 20 percent, reflecting the unplanned shutdown, compared to 34 percent in Q1 2023, reflecting a scheduled turnaround. During the quarter, we accelerated maintenance and refining optimization work previously scheduled for the third quarter of 2024. As a result, we expect to enhance the Burnaby Refinery’s utilization and profitability for the remainder of the year.
  • Parkland’s total recordable injury frequency rate5 on a trailing-twelve-months basis was 1.07, compared to 0.97 at March 31, 2023.

_______________________

1

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

2

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

3

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

4

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

5

Non-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

2024

2023

Sales and operating revenue

6,939

8,156

Adjusted EBITDA(1)

327

395

Canada(2)

191

167

International(2)

149

183

USA(2)

33

21

Refining(2)

(32)

38

Corporate(2)

(14)

(14)

Net earnings (loss)

(5)

77

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

(0.03)

0.44

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

(0.03)

0.43

Trailing-twelve-month (”TTM”) Cash generated from (used in) operating activities(3)

1,683

1,688

TTM Cash generated from (used in) operating activities per share(3)

9.56

10.23

TTM available cash flow(4)

770

625

TTM available cash flow per share(4)

4.38

3.79

1

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

2

Measure of segment profit (loss). See “Total of Segments Measures” section of this news release.

3

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

4

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

Q1 2024 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 2, 2024 at 6:30 am MT (8:30 am ET) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/xr4dJn89YLk

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: 10413873). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 10413873).

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 at www.parkland.ca.

MD&A and Interim Condensed Consolidated Financial Statements

The Management’s Discussion and Analysis for the three months ended March 31, 2024 (the “Q1 2024 MD&A”) and Interim Condensed Consolidated Financial Statements for the three months ended March 31, 2024 (the “2024 Interim Condensed Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 2024. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q1 2024 MD&A and the Q1 2024 Condensed 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, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. 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 herein 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 strategies, objectives and initiatives; Parkland’s 2024 Adjusted EBITDA Guidance range and goal of achieving a Leverage Ratio at the low end of our 2-3x target range by the end of 2025; Parkland’s expectation to enhance the Burnaby Refinery’s utilization and profitability for the remainder of 2024; Parkland’s expectations regarding future dividend amounts, and timing and frequency of payments; Parkland’s portfolio optimization strategy and target of completing $500 million of non-core asset dispositions, and the timing in respect thereof; and Parkland’s plans to implement ongoing operating and MG&A cost reductions.

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 obligation 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, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; Parkland’s ability to pay future dividends and complete share repurchases, if any, using its NCIB program; realization of the expected impact of the maintenance and refining optimization work completed on the Burnaby Refinery’s utilization and profitability; Parkland’s ability to execute on its asset disposition target, including with respect to identifying buyers, and completing such dispositions, if any, on terms reasonable to Parkland and in a timely manner; and the assumptions and risks described under “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s most recent Annual Information Form, and under “Forward-Looking Information” and “Risk Factors” in the Q1 2024 MD&A, which are incorporated by reference herein, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, 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 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $45 to $46 per barrel and average Burnaby Refinery composite utilization of 75 percent to 80 percent (factoring in the unplanned outage) based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; enhancements to operations, utilization and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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 under International Financial Reporting Standards (”IFRS”) 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 16 of the Q1 2024 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 (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level. The most directly comparable financial measure to Adjusted earnings (loss) and Adjusted earnings (loss) per share is Net earnings (loss).

Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland’s operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company’s overall performance, as they exclude certain significant items that are not reflective of the Company’s underlying business operations.

See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss).

Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share.

Three months ended March 31,

($ millions, unless otherwise stated)

2024

2023

Net earnings (loss)

(5)

77

Add:

Acquisition, integration and other costs

30

27

(Gain) loss on foreign exchange – unrealized

3

7

(Gain) loss on risk management and other – unrealized

11

(32)

Other (gains) and losses

10

21

Other adjusting items(1)

10

21

Tax normalization(2)

(16)

(7)

Adjusted earnings (loss)

43

114

Weighted average number of common shares (million shares)(3)

175

175

Weighted average number of common shares adjusted for the effects of dilution (million shares)(3)

175

177

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

Basic

0.25

0.65

Diluted

0.25

0.64

1

Other adjusting items for the three months ended March 31, 2024 include: (i) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $4 million (2023 – $3 million); (ii) other income of $2 million (2023 – $3 million); (iii) realized risk management loss related to underlying physical sales activity in another period of $3 million (2023 – $1 million loss); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $2 million (2023 – $1 million); (v) adjustment to realized risk management gains of $1 million related to interest rate swaps as these gains do not relate to commodity sale and purchase transactions (2023 – nil); and (vi) the effect of market-based performance conditions for equity-settled share-based award settlements of nil (2023 – $13 million).

2

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign exchange gains and losses, unrealized gains and losses on risk management and other, gains and losses on asset disposals, 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, impairments of non-current assets and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

3

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

Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. Parkland uses these measures to monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. Available cash flow is calculated as cash generated from (used in) operating activities adjusted for items such as (i) net change in (a) non-cash working capital and (b) other assets and other liabilities, (ii) maintenance capital expenditures, (iii) dividends received from investments in associates and joint ventures, (iv) interest on leases and long-term debt, and (v) payments on principal amounts on leases. Available cash flow per share is calculated as Available cash flow divided by the weighted average number of outstanding common shares. See following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.

Three months ended

Trailing twelve
months ended

March 31,2024

($ millions, unless otherwise noted)

June 30,
2023(1)

September 30,
2023

December 31,
2023

March 31,
2024

Cash generated from (used in) operating activities

521

528

417

217

1,683

Reverse: Change in other assets and other liabilities

(11)

7

(4)

28

20

Reverse: Net change in non-cash working capital(1)

(145)

(14)

17

63

(79)

Include: Maintenance capital expenditures

(61)

(52)

(93)

(59)

(265)

Include: Dividends received from investments in associates and joint ventures

2

4

3

2

11

Include: Interest on leases and long-term debt

(89)

(83)

(88)

(85)

(345)

Include: Payments of principal amount on leases

(56)

(57)

(71)

(71)

(255)

Available cash flow

161

333

181

95

770

Weighted average number of common shares (millions)(3)

176

TTM Available cash flow per share

4.38

Three months ended

Trailing twelve months
ended

March 31, 2023

($ millions, unless otherwise noted)

June 30,
2022

September 30,
2022

December 31,
2022

March  31,
2023

Cash generated from (used in) operating activities

341

404

629

314

1,688

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(27)

(11)

(38)

314

393

629

314

1,650

Reverse: Change in other assets and other liabilities

(1)

23

(23)

11

10

Reverse: Net change in non-cash working capital

88

(132)

(232)

18

(258)

Include: Maintenance capital expenditures(2)

(44)

(62)

(118)

(79)

(303)

Include: Dividends received from investments in associates and joint ventures

12

5

16

33

Include: Interest on leases and long-term debt

(69)

(76)

(86)

(92)

(323)

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

1

1

Include: Payments on principal amount on leases

(38)

(50)

(52)

(51)

(191)

Exclude: Payments on principal amount on leases attributable to NCI

4

2

6

Available cash flow

267

103

118

137

625

Weighted average number of common shares (millions)(3)

165

TTM Available cash flow per share

3.79

1

For comparative purposes, certain amounts within net change in non-cash working capital for the three months ended June 30, 2023 were revised to conform to the current period presentation.

2

For the three months ended June 30, 2022, and September 30, 2022, and for the trailing twelve months ended March 31, 2023, represents the amounts attributable to Parkland.

3

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

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 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

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. In order to manage its financing requirements, Parkland may adjust capital spending or dividends paid to shareholders, or issue new shares or new debt. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS Accounting Standards. It is therefore unlikely to be comparable to similar measures presented by other companies. The detailed calculation of Leverage Ratio is as follows:

($ millions, unless otherwise noted)

March 31, 2024

December 31, 2023

Leverage Debt

5,208

4,976

Leverage EBITDA

1,657

1,780

Leverage Ratio

3.1

2.8

($ millions, unless otherwise noted)

March 31, 2024

December 31, 2023

Long-term debt

6,630

6,358

Less:

Lease obligations

(1,084)

(1,048)

Cash and cash equivalents

(393)

(387)

Non-recourse debt(1)

(3)

Add:

Non-recourse cash(1)

5

Letters of credit

53

53

Leverage Debt

5,208

4,976

Three months ended

Trailing twelve months
ended

March 31, 2024

($ millions, unless otherwise noted)

June 30,
2023

September 30,
2023

December 31,
2023

March 31,
2024

Adjusted EBITDA

470

585

463

327

1,845

Share incentive compensation

6

5

11

6

28

Reverse: IFRS 16 impact(2)

(68)

(71)

(82)

(83)

(304)

408

519

392

250

1,569

Other adjustments(3)

88

Leverage EBITDA

1,657

Three months ended

Trailing twelve months
ended

December 31, 2023

($ millions, unless otherwise noted)

March 31,
2023

June 30,
2023

September 30,
2023

December 31,
2023

Adjusted EBITDA

395

470

585

463

1,913

Share incentive compensation

8

6

5

11

30

Reverse: IFRS 16 impact(2)

(61)

(68)

(71)

(82)

(282)

342

408

519

392

1,661

Other adjustments(3)

119

Leverage EBITDA

1,780

(1)

Represents Non-recourse debt and Non-recourse cash balances related to project financing.

(2)

Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management’s view of the impact to earnings.

(3)

Includes adjustments to normalize Adjusted EBITDA for non-recurring events including the completion of turnarounds, the unplanned shutdown resulting from an extreme cold weather event, a third-party power outage and the EBITDA attributable to EV charging operations financed through non-recourse project financing.

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. 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 16 of the Q1 2024 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, 2024 and March 31, 2023.

Three months ended March 31,

($ millions)

2024

2023

Adjusted EBITDA

327

395

Less/(add):

Acquisition, integration and other costs

30

27

Depreciation and amortization

206

190

Finance costs

91

104

(Gain) loss on foreign exchange – unrealized

3

7

(Gain) loss on risk management and other – unrealized

11

(32)

Other (gains) and losses(1)

10

21

Other adjusting items(2)

10

21

Income tax expense (recovery)

(29)

(20)

Net earnings (loss)

(5)

77

(1)

Other (gains) and losses for the three months ended March 31, 2024 include the following: (i) $13 million non-cash valuation loss (2023 -$9 million gain) due to the change in fair value redemption options: (ii) $5 million loss (2023 – $23 million loss) in Others, (iii) $4 million non-cash valuation gain (2023 – $4 million loss) due to the change in estimates of environmental provision; (iv) $2 million gain (2023 – $6 million loss) on disposal of assets; and (v) $2 million (2023- $3 million) in Other income.  Refer to Note 12 of the Interim Condensed Consolidated Financial Statements.

(2)

Other adjusting items for the three months ended March 31, 2024 include: (i) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $4 million (2023 – $3 million); (ii) other income of $2 million (2023 – $3 million); (iii) realized risk management loss related to underlying physical sales activity in another period of $3 million (2023 – $1 million loss); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $2 million (2023 – $1 million); (v) adjustment to realized risk management gains of $1 million related to interest rate swaps as these gains do not relate to commodity sale and purchase transactions (2023 – nil); and (vi) the effect of market-based performance conditions for equity-settled share-based award settlements of nil (2023 – $13 million).

Parkland uses Adjusted gross margin as a measure of segment profit (loss) to analyze the performance of sale and purchase transactions and performance on margin. The most directly comparable financial measure is sales and operating revenue. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for the detailed definition of Adjusted gross margin.

Refer to the table below for a detailed calculation of Adjusted gross margin for the three months and three months ended March 31, 2024 and March 31, 2023.

Three months ended March 31,

($ millions)

2024

2023

Sales and operating revenue

6,939

8,156

Cost of purchases

(6,022)

(7,267)

Gain (loss) on risk management and other – realized

(64)

39

Gain (loss) on foreign exchange – realized

(8)

(3)

Other adjusting items to Adjusted gross margin(1)

4

2

Adjusted gross margin

849

927

Fuel and petroleum product adjusted gross margin

666

755

Food, convenience and other adjusted gross margin

183

172

Adjusted gross margin

849

927

1

Includes realized risk management loss related to underlying physical sales activity in another period of $3 million (2023 – $1 million), adjustment to foreign exchange gains and losses related to cash pooling arrangements of $2 million (2023 -$1 million), and adjustment to realized risk management gains of $1 million (2023 – nil) related to interest rate swaps as these gains do not relate to the commodity sale and purchase transactions.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including Adjusted EBITDA Guidance, Leverage Ratio Guidance, TTM Cash generated from (used in) operating activities, and TTM Cash generated from (used in) operating activities per share, and these measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.

Non-Financial Measures

Parkland uses a number of non-financial measures, including Company SSVG, 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 IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

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Parkland Announces Date of 2024 First Quarter Results

CALGARY, AB, April 17, 2024 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2024 first quarter results after markets close on Wednesday, May 1, 2024. A conference call and webcast will then be held at 6:30 a.m. MT (8:30 a.m. ET) on Thursday, May 2, 2024, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/xr4dJn89YLk

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: 10413873). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 10413873).

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.sedarplus.ca after the results are released.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing, and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland Issues Statement in Response to Simpson Oil Limited

CALGARY, AB, April 15, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), announced its determination that a strategic review is unnecessary and does not consider the best interests of the majority of our shareholders. Parkland’s Board of Directors (the “Board”) continuously evaluates opportunities to enhance and maximize shareholder value. The current call for a strategic review represents another attempt by Simpson Oil Limited (”Simpson”) to circumvent established corporate governance without considering the interests of all shareholders.

Parkland Corporation logo

In 2023, while having nominees on our Board, Simpson solicited a potential sale of Parkland at a valuation significantly below the Company’s intrinsic value. The Company engaged legal and financial advisors and conducted a thorough evaluation of the proposed transaction. In addition, the Board established a special committee and engaged their own independent advisors.

“After careful consideration, the Board determined that pursuing this alternative would not serve the best interests of the Company and its shareholders,” said Steven Richardson, Chair of the Board. “Parkland’s Board fulfils its responsibilities for the benefit of all shareholders, not at the direction of one.”

Parkland provides additional context for its determination that a strategic review is unnecessary.

Simpson Reverses Its Position on Successful Parkland Strategy

Before Simpson withdrew its nominees from the Board, they participated in the development of Parkland’s strategy and plans, which following a period of significant acquisitions, are currently aimed at capturing synergies, driving organic growth, and enhancing shareholder returns. This strategy, and the clear and disciplined capital allocation framework it is built on, was presented at the Company’s 2023 Investor Day and received strong support from the majority of shareholders. The significant increase in share price through 2023 demonstrates the effectiveness of our current strategic focus.

Simpson is in Violation of Shareholder Governance Agreement

While the Board values and welcomes the perspectives of shareholders, it must act in the best interests of the Company and all of its shareholders. In accordance with this duty, the Company entered into a Governance Agreement with Simpson dated January 8, 2019 (the “Governance Agreement”) where Simpson agreed to a range of provisions to ensure that Simpson would not be able to exercise undue influence and control over Parkland in pursuing its own interests.

It has become clear that Simpson is disregarding its obligations under the Governance Agreement in a manner that negatively impacts shareholder and other stakeholder interests. Parkland will enforce the terms of the Governance Agreement while remaining willing to engage with Simpson. A copy of the Governance Agreement is available on Parkland’s SEDAR+ profile at www.sedarplus.ca.

Parkland is Committed to Maximizing Shareholder Value

Parkland’s Board always remains open to exploring opportunities that would deliver maximum value for all shareholders. The Board has endeavoured to engage in constructive dialogue with Simpson through personal meetings, calls, and correspondence, all grounded in the principles of fiduciary responsibility, proper governance, and acting in the best interests of all shareholders.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing, and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. 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 “aim”, “continue”, “will”, “would” 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 evaluation of opportunities to enhance and maximize shareholder value, Parkland’s corporate strategy and plans, Parkland’s contractual rights and the enforcement thereof, including the terms of the Governance Agreement, and Parkland’s Customer Advantage.

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 laws. 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; Parkland’s ability to execute its business strategy; action by other companies; 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland’s Burnaby Refinery safely returned to normal operations

CALGARY, AB, April 1, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”) (TSX: PKI) announced today that the Burnaby Refinery (”the refinery”) safely returned to normal operations on March 29, 2024, following an unplanned shutdown originating from extreme cold weather on January 12, 2024.

“I would like to thank the refinery team for their hard work and dedication to safely restore operations,” said Bob Espey, President and Chief Executive Officer. “During this shutdown period, we accelerated maintenance and refining optimization work previously scheduled for the third quarter of 2024. In addition, we have taken proactive steps to improve organization-wide marketing profitability and enhance the refinery’s utilization and profitability for the remainder of the year. I have confidence in our revised operational plan and the proven execution capabilities of our teams. Our 2024 Adjusted EBITDA Guidance range remains unchanged at $1.95 billion to $2.05 billion.”

As a result of this shutdown, we anticipate the refinery will deliver composite utilization of approximately 20 percent and an Adjusted EBITDA loss of between $60 and $65 million for the first quarter 2024. Parkland expects to deliver between $300 to $320 million of total Adjusted EBITDA for the first quarter of 2024.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. 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”, “anticipate”, ”will”, ”could”, ”would”, ”believe” 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, expectations for composite utilization of the refinery, total Adjusted EBITDA and Adjusted EBITDA loss during the first quarter of 2024; expectations regarding our operational plans and execution, including with respect to the refinery; and expectations regarding our 2024 Adjusted EBITDA Guidance range.

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 laws. 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: the refinery continuing to operate as expected during the remainder of the first quarter of 2024 and for the rest of 2024; general economic, market and business conditions; Parkland’s ability to execute its business strategy, including without limitation, Parkland’s ability to successfully integrate acquisitions, capture synergies, successfully implement organic growth initiatives and to finance such initiatives on reasonable terms; 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; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, 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 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $45 to $46 per barrel and average Burnaby Refinery composite utilization of 75 percent to 80 percent (factoring in the unplanned outage) based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; the financial impact of the unplanned outage at the Burnaby Refinery and resumption of normal operations; enhancements to operations, utilization and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland Corporation Announces the Results of the 2024 Annual General Meeting of Shareholders

CALGARY, AB, March 28, 2024 /PRNewswire-HISPANIC PR WIRE/– Parkland Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX: PKI) held its annual general meeting of shareholders on March 28, 2024 (the “Meeting”).

The Company is pleased to announce that all matters presented at the Meeting were approved including the election of all ten nominees listed in the management information circular dated February 27, 2024 (the “Information Circular”). The complete results of voting for business considered at the Meeting are set out below:

Resolution 1

Election of directors of Parkland until the next annual general meeting.

Nominee

Votes For

%For

Votes Withheld

%Withheld

Lisa Colnett

87,985,530

92.68 %

6,947,875

7.32 %

Nora Duke

94,850,886

99.91 %

82,519

0.09 %

Robert Espey

94,709,295

99.76 %

224,110

0.24 %

Timothy Hogarth

94,538,289

99.58 %

395,116

0.42 %

Richard Hookway

94,015,109

99.03 %

918,296

0.97 %

Michael Jennings

94,854,622

99.92 %

78,783

0.08 %

Angela John

94,755,015

99.81 %

178,390

0.19 %

James Neate

94,827,070

99.89 %

106,335

0.11 %

Steven Richardson

81,571,382

85.92 %

13,362,023

14.08 %

Mariame McIntosh Robinson

94,831,476

99.89 %

101,929

0.11 %

Resolution 2

The reappointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditor of Parkland for the fiscal year ending December 31, 2024.

Votes For

89,602,753

93.67 %

Votes Withheld

6,058,872

6.33 %

Resolution 3

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

Votes For

81,796,813

86.16 %

Votes Against

13,136,592

13.84 %

Voting results for all matters have been posted on SEDAR+.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community and respect, which are deeply embedded across our organization.

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Parkland Reports Strong 2023 Fourth Quarter and Record Year-End Results; Increases Dividend for the Twelfth Consecutive Year

Fourth quarter Adjusted EBITDA1 of $463 million and full year Adjusted EBITDA of $1,913 million

Fourth quarter and full year Net earnings per share of $0.49 and $2.68, respectively

Annualized dividend increasing $0.04 per share (3 percent) to $1.40 per share

CALGARY, AB, Feb. 27, 2024 /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, 2023.

“I want to congratulate the Parkland team on an excellent year,” said Bob Espey, President and Chief Executive Officer. “We delivered approximately $300 million of incremental Adjusted EBITDA in 2023 compared to 2022, and have accelerated our $2 billion of Adjusted EBITDA Guidance2 to 2024, with significantly less invested capital than expected. We are firmly on track with our ambitious plan to deliver long-term value to our shareholders, which we outlined at our Investor Day.”

“Parkland continues to progress its Board renewal process,” added Espey. “I would like to welcome Michael Jennings and James Neate to the Parkland Board of Directors and am pleased with the recent nomination of Mariame McIntosh Robinson. Each brings substantial expertise across many areas to Parkland, and their knowledge and insights will be invaluable.”

Q4 2023 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $463 million, consistent with the fourth quarter of 2022.
  • Net earnings attributable to Parkland of $86 million ($0.49 per share, basic), an increase of 25 percent from the fourth quarter of 2022, and Adjusted earnings attributable to Parkland (”Adjusted earnings”2) of $151 million ($0.86 per share, basic) up 29 percent from the fourth quarter of 2022.
  • Available cash flow2 of $181 million, up 53 percent from the fourth quarter of 2022, and Cash generated from operating activities of $417 million, down 34 percent from the fourth quarter of 2022, due to favourable non-cash working capital movements in the prior period.
  • Repaid $106 million of our credit facility with liquidity available3 of $1.3 billion at December 31, 2023.
  • Grew JOURNIETM Rewards to 5.8 million members, reflecting expansion into select International markets and the launch of our partnership with Aeroplan.

2023 Highlights

  • Record Adjusted EBITDA of $1,913 million, up 18 percent from 2022.
  • Net earnings attributable to Parkland of $471 million ($2.68 per share, basic), an increase of 52 percent from 2022, and Adjusted earnings of $626 million ($3.56 per share, basic) up 34 percent from 2022.
  • Available cash flow of $812 million ($4.61 per share, basic), up 15 percent from 2022, and Cash generated from (used in) operating activities of $1,780 million, up 34 percent from 2022.
  • Repaid $747 million of our credit facility and lowered our Leverage Ratio4 to 2.8 times (3.4 times at Q4 2022), demonstrating Parkland’s ongoing commitment to deleveraging.

Q4 2023 Segment Highlights

  • Canada delivered Adjusted EBITDA of $190 million, consistent with Q4 2022 ($197 million). Company Volume Same Store Sales Growth (”Company Volume SSSG”5) was 6.9 percent and Food and Company C-Store SSSG (excluding cigarettes)2 was 1.2 percent. Canada delivered Food and Company C-store revenue of $92 million, consistent with Q4 2022 ($88 million).
  • International delivered Adjusted EBITDA of $157 million, up 43 percent, from Q4 2022 ($110 million). Performance was primarily driven by additional volumes in our commercial business and strong fuel unit margins, due to organic growth and synergy capture.
  • USA delivered Adjusted EBITDA of $39 million, down 15 percent from Q4 2022 ($46 million). The decrease was primarily driven by lower fuel unit margins in our commercial business, partially offset by strong C-Store margins and reduced Operating costs.
  • Refining delivered Adjusted EBITDA of $106 million, down 17 percent, from Q4 2022 ($128 million). Composite utilization5 was 90 percent in Q4 2023, compared to 98 percent in Q4 2022. The decrease was primarily driven by a third-party power outage.
  • Parkland’s total recordable injury frequency rate5 on a trailing-twelve-months basis was 1.07, compared to 1.05 at December 31, 2022.

Enhancing Shareholder Distributions

  • Parkland’s quarterly dividend will increase from $0.34 to $0.35 per common share, effective with the quarterly dividend payable on April 15, 2024 to shareholders of record at the close of business on March 22, 2024. Dividends are expected to be declared and paid on a quarterly basis.
  • Parkland purchased and cancelled approximately 583,000 Parkland common shares for $26 million under its normal course issuer bid (”NCIB”) program in Q4 2023. Additionally, Parkland repurchased approximately 700,000 common shares for $31 million in January 2024 under its automatic share purchase plan. Parkland’s disciplined capital allocation framework balances deleveraging, organic growth, and enhancing shareholder returns and the Company expects to continue to opportunistically utilize its NCIB program.

___________________________________

1

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

2

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

3

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

4

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

5

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

Refinery Update

Following an initial shut down due to extreme cold weather in mid-January, a technical issue with a processing unit led to an unplanned outage beginning January 21, 2024. We have completed inspection and repair work, including maintenance activities previously scheduled for February 2024. We expect to resume normal operations in early March 2024, with the total refinery outage to be approximately eight weeks during the first quarter of 2024.

We have developed a robust recovery plan and expect to meet our 2024 Adjusted EBITDA Guidance range of $1.95 to $2.05 billion. Plans include enhanced refinery operations and optimized refinery supply, as well as ongoing operating and MG&A cost reductions across the business.

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

Financial Summary

2023

2022

2023

2022

Sales and operating revenue

7,746

8,719

32,452

35,462

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

463

455

1,913

1,620

Canada

190

197

713

702

International

157

110

678

383

USA

39

46

186

126

Refining

106

128

441

516

Corporate

(29)

(26)

(105)

(107)

Net earnings (loss) attributable to Parkland

86

69

471

310

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

0.49

0.39

2.68

1.94

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

0.48

0.39

2.63

1.92

Trailing-twelve-month (”TTM”) Cash generated from (used in) operating activities(2)

1,780

1,326

1,780

1,326

TTM Cash generated from (used in) operating activities per share(2)

10.13

8.29

10.13

8.29

TTM available cash flow(3)

812

708

812

708

TTM available cash flow per share(3)

4.61

4.43

4.61

4.43

TTM Return on invested capital(3)

9.8 %

8.4 %

9.8 %

8.4 %

(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 Section 17 of the Q4 2023 MD&A.

Q4 2023 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Wednesday, February 28, 2024 at 6:30 am MT (8:30 am ET) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/VAjLrA2Y10R

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: 97733547). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 97733547).

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 at http://www.parkland.ca.

Annual General Meeting of Shareholders

Parkland will host its 2024 Annual General Meeting of Shareholders on Thursday, March 28, 2024, at 9:00 am MT (11:00 am ET). The meeting will be held at The Westin Calgary hotel in Calgary, Alberta.

Parkland’s Management Information Circular is available at www.parkland.ca and under Parkland’s profile at www.sedarplus.ca.

MD&A and Annual Consolidated Financial Statements

The Management’s Discussion and Analysis for the year ended December 31, 2023 (the “Q4 2023 MD&A”) and Annual Consolidated Financial Statements for the year ended December 31, 2023 (the “2023 Annual Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the year ended December 31, 2023. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q4 2023 MD&A and the 2023 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, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. 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 herein 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 strategies, objectives and initiatives; Parkland’s 2024 Adjusted EBITDA Guidance; Parkland’s expectations regarding the Burnaby Refinery outage and resuming operations at the Burnaby Refinery, including the timing in respect thereof; Parkland’s plans to enhance operations and optimize supply at the Burnaby Refinery; Parkland’s expectations regarding future dividend amounts, and timing and frequency of payments, and with respect to completing additional share repurchases, if any, using its NCIB program; and Parkland’s plans to implement ongoing operating and MG&A cost reductions.

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 obligation 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, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; Parkland’s ability to commence restart procedures and resume normal operations at the Burnaby Refinery successfully and within the expected timeframe; Parkland’s ability to pay future dividends and complete share repurchases; and the assumptions and risks described under “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s Annual Information Form for the year ended December 31, 2023, and under “Forward-Looking Information” and “Risk Factors” in the Q4 2023 MD&A, which are incorporated by reference herein, each as filed on SEDAR+ and available on the Parkland website at http://www.parkland.ca. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, 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 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $41 to $43 per barrel and average Burnaby Refinery composite utilization of 80 percent to 85 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; the impact of the unplanned outage at the Burnaby Refinery and resumption of normal operations during the first quarter of 2024; enhancements to operations and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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 under International Financial Reporting Standards (”IFRS”) 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 17 of the Q4 2023 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 (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level. The most directly comparable financial measure to Adjusted earnings (loss) and Adjusted earnings (loss) per share is Net earnings (loss).

Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland’s operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company’s overall performance, as they exclude certain significant items that are not reflective of the Company’s underlying business operations.

See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss).

Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share.

Three months ended
December 31,

Year ended
December 31,

($ millions, unless otherwise stated)

2023

2022

2023

2022

Net earnings (loss) attributable to Parkland

86

69

471

310

Add: Net earnings (loss) attributable to NCI

36

Net earnings (loss)

86

69

471

346

Add:

Acquisition, integration and other costs

42

41

146

117

Loss on modification of long-term debt

2

(Gain) loss on foreign exchange – unrealized

8

35

(8)

(Gain) loss on risk management and other – unrealized

28

9

(34)

39

Other (gains) and losses

5

(21)

3

23

Other adjusting items(1)

6

21

48

26

Tax normalization(2)

(16)

(10)

(43)

(46)

Adjusted earnings (loss) including NCI

151

117

626

499

Less: Adjusted earnings (loss) attributable to NCI

31

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

151

117

626

468

Weighted average number of common shares (million shares)(3)

176

173

176

160

Weighted average number of common shares adjusted for the effects of dilution (million shares)(3)

180

174

179

161

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

Basic

0.86

0.67

3.56

2.93

Diluted

0.84

0.67

3.50

2.91

(1)

Other adjusting items for the three months ended December 31, 2023 include: (i) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $9 million (2022 – $2 million); (ii) other income of $2 million (2022 – $4 million); (iii) realized risk management gain related to underlying physical sales activity in another period of $2 million (2022 – $7 million loss); (iv) impact of hyperinflation accounting of $2 million loss (2022 – $1 million gain); (v) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (vi) unrealized risk management gain related to underlying physical sales activity in current period of nil (2022 – $10 million); and (vii) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million). Other adjusting items for the year ended December 31, 2023 include: (i) other income of $23 million (2022 – $8 million); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $20 million (2022 – $11 million); (iii) the effect of market-based performance conditions for equity-settled share-based award settlements of $13 million (2022 – nil); (iv) realized risk management gain related to underlying physical sales activity in another period of $6 million (2022 – $4 million loss); (v) impact of hyperinflation accounting of $2 million loss (2022 – $1 million gain); and (vi) adjustment to foreign exchange gains and losses related to cash pooling arrangements of nil (2022 – $2 million).

(2)

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign exchange gains and losses, unrealized gains and losses on risk management and other, gains and losses on asset disposals, 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, impairments of non-current assets and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(3)

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.

Food and Company C-Store 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. The most directly comparable financial measure to Food and Company C-Store SSSG is food and convenience store revenue within sales and operating revenue. Food and Company C-Store SSSG does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. 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,

($ millions)

2023

2022

%(1)

Food and Company C-Store revenue

92

88

Add:

Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers and franchisees(2)(3)

324

323

Less:

Rental and royalty income from retailers, franchisees and other(3)(4)

(67)

(67)

Same Store revenue adjustments(5) (excluding cigarettes)

(20)

(19)

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

329

325

1.1 %

Less:

Same Store revenue adjustments(5) (cigarettes)

(102)

(100)

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

227

225

1.2 %

Three months ended December 31,

($ millions)

2022

2021

%(1)

Food and Company C-Store revenue

88

93

Add:

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

306

141

Less:

Rental income from retailers and other(4)

(43)

(26)

Same Store revenue adjustments(4)(5)(6) (excluding cigarettes)

(164)

(15)

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

187

193

(3.5) %

Less:

Same Store revenue adjustments(5)(6) (cigarettes)

(87)

(99)

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

100

94

6.0 %

(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 as Parkland earns rental income from retailers in the form of a percentage rent on convenience store sales. POS values are calculated based on the information obtained from Parkland’s POS systems at retail sites, including transactional data, such as sales, costs and volumes, which are subject to internal controls over financial reporting. We also use this data to calculate rental income from retailers in the form of a percentage rent on convenience store sales, which is recorded as revenue in our consolidated financial statements.

(3)

Includes the impacts of acquisitions when the relevant information becomes available after the completion of the related system integration activities.

(4)

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 other.

(5)

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.

(6)

Excludes sales from acquisitions completed within the year as these will not impact the metric until after the completion of one year of the acquisitions when the sales or volume generated establish the baseline for these metrics.

Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. Parkland uses these measures to monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. Available cash flow is calculated as cash generated from (used in) operating activities adjusted for items such as (i) net change in (a) non-cash working capital and (b) other assets and other liabilities, (ii) maintenance capital expenditures, (iii) dividends received from investments in associates and joint ventures, (iv) interest on leases and long-term debt, and (v) payments on principal amounts on leases. Available cash flow per share is calculated as Available cash flow divided by the weighted average number of outstanding common shares. See following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.

Three months ended

Trailing twelve
months ended

December 31, 2023(4)

($ millions, unless otherwise noted)

March 31,
2023

June 30,
2023(1)

September 30,
2023

December 31,
2023

Cash generated from (used in) operating activities

314

521

528

417

1,780

Reverse: Change in other assets and other liabilities

11

(11)

7

(4)

3

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

18

(145)

(14)

17

(124)

Include: Maintenance capital expenditures attributable to Parkland(4)

(79)

(61)

(52)

(93)

(285)

Include: Dividends received from investments in associates and joint ventures

16

2

4

3

25

Include: Interest on leases and long-term debt

(92)

(89)

(83)

(88)

(352)

Include: Payments of principal amount on leases

(51)

(56)

(57)

(71)

(235)

Available cash flow

137

161

333

181

812

Weighted average number of common shares (millions)(3)

176

Available cash flow per share

4.61

Three months ended

Trailing twelve

months ended

December 31, 2022(4)

($ millions, unless otherwise noted)

March 31,
2022

June 30,
2022

September 30,
2022

December 31,
2022

Cash generated from (used in) operating activities

(48)

341

404

629

1,326

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(26)

(27)

(11)

(64)

(74)

314

393

629

1,262

Reverse: Change in other assets and other liabilities

(2)

(1)

23

(23)

(3)

Reverse: Net change in non-cash working capital

420

88

(132)

(232)

144

Include: Maintenance capital expenditures attributable to Parkland(4)

(29)

(44)

(62)

(118)

(253)

Include: Dividends received from investments in associates and joint ventures

12

5

17

Include: Interest on leases and long-term debt

(64)

(69)

(76)

(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

Available cash flow

220

267

103

118

708

Weighted average number of common shares (millions)(3)

160

Available cash flow per share

4.43

(1)

For comparative purposes, certain amounts within net change in non-cash working capital for the three months ended June 30, 2023 were revised to conform to the current period presentation.

(2)

Starting in the fourth quarter of 2023, “Changes in risk management and other” are included within net changes in non-cash working capital. For comparative purposes, certain amounts within net change in non-cash working capital were revised to conform to the current period presentation.

(3)

Weighted average number of common shares disclosed is consistent with the Note 3 of the Annual Consolidated Financial Statements.

(4)

Supplementary financial measure. See Section 17 of the Q4 2023 MD&A.

Return on Invested Capital (”ROIC”) is a non-GAAP ratio and is composed of Net operating profit after tax (”NOPAT”) divided by average invested capital. NOPAT describes the profitability of Parkland’s base operations, excluding the impact of leverage and certain other items of income and expenditure that are not considered representative of Parkland’s underlying core operating performance. NOPAT is based on Adjusted EBITDA including NCI, less depreciation expense and the estimated tax expense using the expected average tax rate estimated using statutory tax rates in each jurisdiction where Parkland operates. Average invested capital is the amount of capital deployed by Parkland that represents the average of opening and closing debt and shareholder’s equity, including equity reserves, net of cash and cash equivalents. ROIC is used by management to assess the Company’s efficiency in investing capital. The most directly comparable financial measure to ROIC is net earnings. See following table for a calculation of historical ROIC for 2022 and 2023, the calculation of NOPAT and the reconciliation to net earnings and the calculation of invested capital.

Trailing twelve months
ended December 31,

ROIC

2023

2022

Net earnings (loss)

471

346

Add/(less):

Income tax expense (recovery)

37

70

Acquisition, integration and other costs

146

117

Depreciation and amortization

823

743

Finance cost

384

331

Unrealized foreign exchange (gain) loss

35

(8)

Unrealized loss (gain) on risk management and other

(34)

39

Other (gains) and losses

3

23

Other adjusting items

48

26

Adjusted EBITDA including NCI

1,913

1,687

Less: Depreciation

(823)

(743)

Adjusted EBIT

1,090

944

Average effective tax rate

16.7 %

22.5 %

Less: Taxes

(182)

(212)

Net operating profit after tax

908

732

Opening invested capital

9,293

8,151

Closing invested capital

9,152

9,293

Average invested capital

9,223

8,722

Return on invested capital

9.8 %

8.4 %

Invested capital

December 31,

($ millions, unless otherwise noted)

2023

2022

2021

Long-term debt – current portion

191

173

124

Long-term debt

6,167

6,799

5,432

Shareholders’ equity

3,181

3,037

2,332

Sol Put Option

589

Exclude: Cash and cash equivalents

(387)

(716)

(326)

Total

9,152

9,293

8,151

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 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

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 2023 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 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

December 31, 2023

December 31, 2022

Leverage Debt

4,976

5,480

Leverage EBITDA

1,780

1,602

Leverage Ratio

2.8

3.4

December 31, 2023

December 31, 2022

Long-term debt

6,358

6,972

Less:

Lease obligations

(1,048)

(828)

Cash and cash equivalents

(387)

(716)

Add:

Letters of credit

53

52

Leverage Debt

4,976

5,480

Three months ended

Trailing twelve
months ended
December 31, 2023

March 31,
2023

June 30,
2023

September 30,
2023

December 31,
2023

Adjusted EBITDA including NCI

395

470

585

463

1,913

Share incentive compensation

8

6

5

11

30

Reverse: IFRS 16 impact(1)

(61)

(68)

(71)

(82)

(282)

342

408

519

392

1,661

Other adjustments(2)

119

Leverage EBITDA

1,780

(1)

Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management’s view of the impact to earnings.

(2)

Adjustments to normalize EBITDA in relation to non-recurring events including the completion of turnarounds and third-party power outages.

Three months ended

Trailing twelve
months ended

December 31, 2022

March 31,
2022

June 30,
2022

September 30,
2022

December 31,
2022

Adjusted EBITDA including NCI

414

478

340

455

1,687

Share incentive compensation

9

5

7

9

30

Reverse: IFRS 16 impact(1)

(44)

(46)

(49)

(58)

(197)

379

437

298

406

1,520

Acquisition pro-forma adjustment(2)

51

Other adjustments(3)

31

Leverage EBITDA

1,602

(1)

Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management’s view of the impact to earnings.

(2)

Amounts for the trailing twelve months ended December 31, 2022 include the impact of pro-forma pre-acquisition EBITDA estimates based on anticipated benefits, costs and synergies from acquisitions.

(3)

Adjustments to normalize EBITDA in relation to non-recurring events including the completion of turnarounds, mechanical break-downs, and third-party power outages.

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. 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 17 of the Q4 2023 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, 2023 and December 31, 2022.

Three months ended
December 31,

Year ended
December 31,

($ millions)

2023

2022

2023

2022

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

463

455

1,913

1,620

Add: Attributable to NCI

67

Adjusted EBITDA including NCI

463

455

1,913

1,687

Less/(add):

Acquisition, integration and other costs

42

41

146

117

Depreciation and amortization

222

212

823

743

Finance costs

89

94

384

331

(Gain) loss on foreign exchange – unrealized

8

35

(8)

(Gain) loss on risk management and other – unrealized

28

9

(34)

39

Other (gains) and losses(1)

5

(21)

3

23

Other adjusting items(2)

6

21

48

26

Income tax expense (recovery)

(15)

22

37

70

Net earnings (loss)

86

69

471

346

Net earnings (loss) attributable to Parkland

86

69

471

310

Net earnings (loss) attributable to NCI

36

(1)

Other (gains) and losses for the three months ended December 31, 2023 include the following: (i) $25 million loss (2022 – $13 million gain) in Others, including nil (2022 – $19 million gain) in relation to changes in redemption value of the Sol Put Option, which was de-recognized on Parkland’s acquisition of the remaining 25% of the issued and outstanding shares in Sol in the Share Exchange on October 18, 2022; (ii) $11 million non-cash valuation loss (2022 – $6 million gain) due to the change in estimates of environmental provision; (iii) $14 million non-cash valuation gain (2022 – $2 million loss) due to the change in fair value of redemption options; (iv) $15 million gain (2022 – $2 million gain) on disposal of assets; and (v) $2 million gain (2022 – $2 million) in Other income. Other (gains) and losses for the year ended December 31, 2023 include the following: (i) $57 million loss (2022 – $23 million gain) in Others, including $27 million associated with the write-off of certain assets related to the renewable diesel complex, and nil (2022 – $30 million gain) in relation to changes in redemption value of the Sol Put Option, which was de-recognized on Parkland’s acquisition of the remaining 25% of the issued and outstanding shares in Sol on October 18, 2022; (ii) $14 million loss (2022 – $17 million gain) due to the change in estimates of environmental provision; (iii) $31 million non-cash valuation gain (2022 – $67 million loss) due to the change in fair value of redemption options; (iv) $23 million gain (2022 – $7 million gain) in Other income; and (v) $14 million gain (2022 – $3 million loss) on disposal of assets. Refer to Note 23 of the Annual Consolidated Financial Statements.

(2)

Other adjusting items for the three months ended December 31, 2023 include: (i) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $9 million (2022 – $2 million); (ii) other income of $2 million (2022 – $4 million); (iii) realized risk management gain related to underlying physical sales activity in another period of $2 million (2022 – $7 million loss); (iv) impact of hyperinflation accounting of $2 million loss (2022 – $1 million gain); (v) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (vi) unrealized risk management gain related to underlying physical sales activity in current period of nil (2022 – $10 million); and (vii) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million). Other adjusting items for the year ended December 31, 2023 include: (i) other income of $23 million (2022 – $8 million); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $20 million (2022 – $11 million); (iii) the effect of market-based performance conditions for equity-settled share-based award settlements of $13 million (2022 – nil); (iv) realized risk management gain related to underlying physical sales activity in another period of $6 million (2022 – $4 million loss); (v) impact of hyperinflation accounting of $2 million loss (2022 – $1 million gain); and (vi) adjustment to foreign exchange gains and losses related to cash pooling arrangements of nil (2022 – $2 million).

Parkland uses Adjusted gross margin as a measure of segment profit (loss) to analyze the performance of sale and purchase transactions and performance on margin. The most directly comparable financial measure is sales and operating revenue. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for the detailed definition of Adjusted gross margin.

Refer to the table below for a detailed calculation of Adjusted gross margin for the three months and year ended December 31, 2023 and December 31, 2022.

Three months ended
December 31,

Year ended
December 31,

($ millions)

2023

2022

2023

2022

Sales and operating revenue

7,746

8,719

32,452

35,462

Cost of purchases

(6,850)

(7,682)

(28,484)

(31,441)

Gain (loss) on risk management and other — realized

122

(56)

51

(336)

Gain (loss) on foreign exchange — realized

2

(1)

(7)

(16)

Other adjusting items to Adjusted gross margin(1)

(8)

15

(11)

7

Adjusted gross margin

1,012

995

4,001

3,676

Fuel and petroleum product adjusted gross margin

814

807

3,254

3,013

Food, convenience and other adjusted gross margin

198

188

747

663

Adjusted gross margin

1,012

995

4,001

3,676

(1)

Other adjusting items to Adjusted gross margin for the three months ended December 31, 2023 include (i) impact of hyperinflation accounting of $5 million loss (2022 – $1 million gain); (ii) realized risk management gain related to underlying physical sales activity in another period of $2 million (2022 – $7 million loss); (iii) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (iv) unrealized risk management gain related to underlying physical sales activity in current period of nil (2022 – $10 million); and (v) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million). Other adjusting items to Adjusted gross margin for the year ended December 31, 2023 include (i) realized risk management gain related to underlying physical sales activity in another period of $6 million (2022 – $4 million loss); (ii) impact of hyperinflation accounting of $5 million loss (2022 – $1 million gain); and (iii) adjustment to foreign exchange gains and losses related to cash pooling arrangements of nil (2022 – $2 million).

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including Adjusted EBITDA Guidance, liquidity available, TTM Cash generated from (used in) operating activities, and TTM Cash generated from (used in) operating activities per share, and these measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.

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 IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

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Parkland announces Mariame McIntosh Robinson will stand for election to its Board of Directors at upcoming AGM

CALGARY, AB, Feb. 27, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) today is pleased to announce that financial technology executive Mariame McIntosh Robinson will stand for election to its Board of Directors (the “Board”) at its Annual General Meeting (”AGM”) on March 28, 2024.

“Mariame is an accomplished executive with expertise in key markets that Parkland serves; the Caribbean and the United States,” said Steven Richardson, Chair of the Board. “Mariame’s diverse experience encompasses the digital economy, loyalty, and enterprise risk management and will be invaluable to Parkland as we advance our strategy to deliver long-term value to all our shareholders.”

Ms. McIntosh Robinson’s more than 20-year career in the global financial services industry encompasses several executive leadership roles, including her current position as President, Fintech with Qenta Inc., a global fintech company focused on digitizing assets and transactions. Previously Ms. McIntosh Robinson’s served as President and Chief Executive Officer of First Global Bank Ltd., a commercial bank operating in Jamaica.

Ms. McIntosh Robinson holds a Master of Business Administration from Harvard University, a Master of Economics from the University of Oxford, and a Bachelor of Electrical Engineering from Massachusetts Institute of Technology. She is also a Jamaica Rhodes Scholar.

With today’s announcement of Ms. McIntosh Robinson’s addition, Parkland has added four highly experienced directors to its Board over the past 14 months. Collaborating with two global search firms, Parkland is adhering to a prudent refreshment of its Board, blending continuity with fresh perspectives to ensure a governance structure that supports Parkland’s long-term objectives.

About Parkland Corporation
Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. 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.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community and respect, which are deeply embedded across our organization.

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Parkland Announces Date of 2023 Fourth Quarter and Year-End Results

CALGARY, AB, Feb. 13, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2023 fourth quarter and year-end results after markets close on Tuesday, February 27, 2024. A conference call and webcast will then be held at 6:30 a.m. MT (8:30 a.m. ET) on Wednesday, February 28, 2024, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/VAjLrA2Y10R

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: 97733547). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 97733547).

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.sedarplus.ca after the results are released.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s 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 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, our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland appoints James Neate to its Board of Directors

CALGARY, AB, Feb. 7, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) today is pleased to announce the appointment of investment banking executive, James Neate to its Board of Directors (the “Board”), effective February 10, 2024.

“James is a seasoned executive with significant expertise working within the many markets that Parkland serves,” said Steven Richardson, Chairman of the Board. “His international banking expertise coupled with his understanding of markets in Canada, the Caribbean and South America is invaluable to Parkland. James’ ability to provide strategic insight into global growth opportunities will add additional bench strength to our Board as we continue to advance our strategy to deliver long-term value to all shareholders. We are delighted to welcome James to our Board.”

Mr. Neate’s career spans more than three decades in the Canadian banking industry at Scotiabank. In his time, he held increasingly senior roles, with his most recent as President and Group Head of Corporate and Investment Banking. In this role, he held global management responsibility for Investment Banking, Global Business Payments, and Corporate Banking.

Mr. Neate’s appointment forms part of Parkland’s strategic Board renewal process that has been ongoing for the past 12 months and added three highly experienced directors to Parkland. Collaborating with two global search firms, Parkland has been adhering to a prudent refreshment of its Board, blending continuity with fresh perspectives to ensure a governance structure that supports Parkland’s long-term objectives.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland temporarily shuts down refinery processing operations; Will maintain reliable fuel supply to lower mainland and Vancouver Island

CALGARY, AB, Jan. 24, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced that it has temporarily shut down processing operations at the Burnaby Refinery (”the refinery”). To ensure reliability of supply, Parkland has increased imports of refined products into our on-site shipping terminal, which will be safely delivered to customers across the lower mainland and Vancouver Island.

“Due to recent extreme cold weather, we proactively initiated steps to pause processing operations at the refinery,” said Alex Coles, Vice President and General Manager, Burnaby Refinery. “While restarting, we encountered an issue with a processing unit on January 21, 2024. As a result, we paused the restart and the refinery’s processing operations remain temporarily shut down.”

The refinery’s blending, shipping, terminal, and rack activities remain operational. This enables refined fuels to be offloaded from ships and rail directly into the refinery, where they can be safely stored and reliably distributed to customers. We expect the refinery will return to normal operations in approximately four weeks.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, 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” 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, expectations and plans with respect to maintaining reliable fuel supply to the lower mainland and Vancouver Island; and expectations regarding the refinery returning to normal operations, including the timing with respect thereto of approximately four weeks.

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 laws. 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; Parkland’s ability to successfully increase imports of refined products into its on-site shipping terminal and safely store and deliver such refined products to customers; anticipated weather and environmental conditions; expectations with respect to re-start operations and processes necessary to return the refinery to normal operations, including the timing thereof; expectations for operations of the refinery’s blending, shipping, terminal, and rack activities; actions by governmental authorities and other regulators; 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland appoints Michael Jennings to its Board of Directors

CALGARY, AB, Jan. 23, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) today is pleased to announce the appointment of energy industry veteran, Michael Jennings to its Board of Directors (the “Board”), effective February 10, 2024.

Parkland Logo

“Michael is a seasoned Chief Executive Officer and Board Member with over three decades of international integrated energy experience. We are delighted to welcome him to our Board of Directors,” said Steven Richardson, Chairman of the Board. “Michael brings extensive executive and public board experience. His track record as a CEO underscores his industry knowledge and strategic acumen. Our Board and Parkland’s shareholders will benefit greatly from his expertise as we advance our strategy to deliver long-term value to all shareholders.”

Mr. Jennings’ career includes nearly two decades with HF Sinclair Corporation and predecessor companies Holly Frontier and Frontier Oil. Similar to Parkland, these companies provide petroleum products and renewables across the USA, Canada, and Europe and have extensive transportation and storage infrastructure. As CEO of HF Sinclair, Mr. Jennings led large-scale operational and financial integrations, delivered significant growth, and enhanced shareholder value.

Previously, Mr. Jennings held a variety of senior finance, commercial, business development, and treasury roles within numerous domestic and international organizations. In addition, he previously served as Chairman of public companies HollyFrontier, Frontier Oil, and Holly Energy Partners, as a board member of FTS International and ION Geophysical Corp, and as Chairman of the Board of Montage Resources. Mr. Jennings currently serves on the Board of The Plaza Group.

Mr. Jennings’ appointment forms part of Parkland’s ongoing and strategic Board renewal process.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland Announces Board of Directors Changes

CALGARY, AB, Dec. 31, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced the departure of Simpson Oil Limited (”Simpson“) nominees Michael Christiansen and Marc Halley from the Company’s Board of Directors, effective December 31, 2023.

“We would like to thank Michael and Marc for their contributions to the Board,” stated Steven Richardson, the Chair of Parkland’s Board of Directors. “We have an independent Board that has unwavering confidence in the Company’s strategy and the management team’s capability to deliver shareholder value. The outstanding share performance of Parkland in 2023 is a clear expression of our shareholders’ support of Parkland’s direction and strategy.”

Parkland is in discussions with Simpson about its shareholding in the Company.

At its 2023 Investor Day, Parkland outlined its strategy to reduce debt, grow the business and increase shareholder returns. Driven by consistent operational execution, Parkland confirmed its 2024 Adjusted EBITDA Guidance of $2 billion, accelerating its previous guidance by a year. In addition, the Company set a longer-term objective to double Available Cash Flow per share by 2028.

In 2023, Parkland was a top performer on the Toronto Stock Exchange, achieving a total shareholder return of approximately 50 percent. The Company’s Board and management are focused on executing its strategy that will continue to create long-term value for all shareholders.

Mr. Christiansen and Mr. Halley were nominated for election to the Board pursuant to the terms of the Board Nomination Agreement between Simpson Oil and Parkland, dated March 21, 2023 (the “Board Nomination Agreement“), and subsequently elected to the Board at Parkland’s Annual General Meeting on May 4, 2023. Simpson has provided notice of its waiver of its nomination rights under the Board Nomination Agreement. In accordance with its terms, the Board Nomination Agreement will terminate as of April 2, 2024.

Simpson remains subject to the standstill, voting and other obligations set forth in the governance agreement between Simpson and Parkland dated January 8, 2019 (the “Governance Agreement“). Parkland will continue to enforce the terms of the Governance Agreement going forward. Copies of the Board Nomination Agreement and the Governance Agreement are available on Parkland’s SEDAR+ profile at www.sedarplus.ca.

Supported by a leading global search firm, Parkland is committed to ongoing Board renewal, including identifying qualified professionals to replace today’s departed Board members.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, 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, strategies and model; Parkland’s cash flow, organic growth and the progress thereof; and Parkland’s Revised financial targets, including Adjusted EBITDA and Available Cash Flow per share objectives. 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 refinery margins; 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 assumptions, 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 Q3 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.

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 under IFRS 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 16 of the Q3 2023 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

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Parkland Announces Normal Course Issuer Bid

CALGARY, AB, Nov. 29, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, “our”, or the “Company”) (TSX:PKI) announced today that the Toronto Stock Exchange (”TSX”) has accepted the Company’s notice of intention to implement a normal course issuer bid (the “NCIB”).

Parkland Logo

Under the NCIB, the Company may purchase for cancellation a maximum of 14,056,984 common shares of the Company (the “Shares”), representing 10% of the public float (as defined by the TSX) as of November 20, 2023. On November 20, 2023, Parkland had 176,113,112 Shares issued and outstanding. The NCIB will commence on December 1, 2023 and will terminate upon the earliest of (i) November 30, 2024, (ii) the Company purchasing the maximum of 14,056,984 Shares, and (iii) the Company terminating the NCIB.

The NCIB is intended to augment Parkland’s ongoing return of capital to shareholders through dividends. Parkland believes that the market price of the Shares may not, from time to time, accurately reflect their underlying value. Accordingly, purchasing the Shares for cancellation under the NCIB may represent an attractive investment opportunity to enhance shareholder value.

Purchases under the NCIB will be made through the facilities of the TSX or alternative trading systems in Canada at the prevailing market price at the time of purchase. In accordance with the rules of the TSX, any daily repurchases (other than pursuant to a block purchase exception as defined by the TSX) under the NCIB will be limited to a maximum of 103,818 Shares, which represents 25% of the average daily trading volume on the TSX of 415,273 for the six months ended October 31, 2023.

In connection with the NCIB, the Company has entered into an automatic share purchase plan (the “ASPP”) with its designated broker to allow for the purchase of Shares during certain pre-determined blackout periods during which the Company would ordinarily not be permitted to purchase Shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on purchasing parameters set by Parkland in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will become effective December 1, 2023, concurrently with the commencement of the NCIB. Outside of blackout periods, Shares may be purchased under the NCIB based on management’s discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Shares purchased under the NCIB.

The NCIB continues the Company’s existing NCIB (the “Existing NCIB”). Pursuant to the Existing NCIB, the Company has approval from the TSX to repurchase up to 13,992,412 Shares from December 1, 2022 to November 30, 2023. Under the Existing NCIB, the Company has purchased 1,040,363 Shares on the open market at a weighted average purchase price of $34.9697 per Share.

There can be no assurance as to the precise number of Shares that will be purchased under the NCIB, if any. Parkland may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.

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 NCIB and the ASPP, potential purchases of Shares under the NCIB and the ASPP, the anticipated benefits of the NCIB, including enhancing shareholder value and returning additional capital to shareholders, and Parkland’s business strategies and objectives.

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, the failure to obtain final approval of the NCIB and the ASPP from the TSX, failure to realize the anticipated benefits of the NCIB, failure to execute purchases under the NCIB, including under the ASPP, general economic, market and business conditions; Parkland’s ability to execute its business strategies, including without limitation, Parkland’s ability to make acquisitions prudently and integrate such acquisitions successfully, to implement organic growth initiatives and to finance such acquisitions and initiatives on reasonable terms; 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 Annual Information Form dated March 21, 2023, and “Forward-Looking Information” and “Risk Factors” included in the Q3 2023 MD&A dated November 1, 2023 and the Q4 2022 MD&A dated March 2, 2023, 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.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provides businesses with industrial fuels so that they can better serve their customers.

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 EV charging.

Parkland’s proven business model is centered around organic growth, 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 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, our values of safety, integrity, community and respect, which are deeply embedded across our organization.

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Parkland’s JOURNIE™ loyalty program invites Aeroplan Members to turn their everyday fuel and food purchases into meaningful rewards

  • JOURNIE™ Rewards – Aeroplan partnership launches today, giving members more ways to save at the fuel pump, in the convenience store, and in the sky
  • Aeroplan members can collect Aeroplan points as they refuel and shop at approximately 1,200 Pioneer, Ultramar, FasGas, Chevron and ON the RUN / Marché Express retail locations
  • Members can earn up to 3X the points when they link their Aeroplan and JOURNIE™ Rewards accounts

CALGARY, AB, Nov. 15, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) – announced that starting today, Aeroplan members can begin earning and redeeming points at Parkland’s approximately 1,200 participating Ultramar, Chevron, Pioneer, FasGas, ON the RUN and Marché Express Canadian retail locations.

First announced in April, the partnership between JOURNIE™ Rewards and Aeroplan brings together two Canadian loyalty giants to offer members increased earning and redemption power. Members who link their Aeroplan and JOURNIE™ Rewards accounts can earn up to 3X the points and can access a greater choice of new benefits including savings on convenience items, M&M Food Market, and carwashes.

“We are delighted to welcome Aeroplan members to our national network of retail fuel and convenience stores,” said Uwe Stueckmann, SVP Strategic Marketing and Innovation at Parkland. “The JOURNIE™ and Aeroplan partnership provides members of both programs with a seamless way to turn everyday fuel and convenience purchases into meaningful rewards.”

“Aeroplan is thrilled to be partnering with Parkland and JOURNIE™ Rewards,” said Scott O’Leary, Vice President, Loyalty and Product at Air Canada. “Together we’re excited to give our members more choice, and more ways to get rewarded at every fill-up.”

Parkland’s extensive Canada-wide retail network offers Aeroplan members new and convenient ways to earn Aeroplan points. Members can now get closer to the trip they want and access a range of benefits across the travel journey, including hotels, vacation packages, and car rentals.

JOURNIE™ Rewards is calling on all Aeroplan members to sign up for JOURNIE™ to enhance their rewards experience and boost their earning potential.

Parkland’s JOURNIE™ Rewards provides its customers with access to rewards and benefits as they shop across our coast-to-coast network of approximately 1,200 participating fuel and convenience stores. With real-time fuel savings, free merchandise and targeted food and convenience offers, members earn through their purchases of fuel, convenience items, food and other services at participating Chevron, Ultramar, Pioneer, FasGas and ON the RUN / Marché Express retail locations.

JOURNIE™ Rewards unifies Parkland’s family of consumer brands to deliver one great customer experience and help customers make the most of every stop. Through JOURNIE™ Rewards’ financial services partner, CIBC, our members can go even further when they link their CIBC card with their JOURNIE™ Rewards membership.

Visit journie.ca to sign up today.

About Parkland

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, our values of safety, integrity, community and respect, which are deeply embedded across our organization.

About Air Canada

Air Canada is Canada’s largest airline, the country’s flag carrier and a founding member of Star Alliance, the world’s most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada’s Aeroplan program is Canada’s premier travel loyalty program, where members can earn or redeem points on the world’s largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada’s passenger and freighter aircraft.  Air Canada has committed to a net zero emissions goal from all global operations by 2050. Air Canada shares are publicly traded on the TSX in Canada and the OCTQX in the US.

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Parkland to enhance shareholder returns in refreshed five-year plan; grow Adjusted EBITDA, double cash flow, and reduce leverage

Adjusted EBITDA1,2 of approximately $2.5 billion in 2028, with anticipated upside to $3 billion

Available cash flow per share1,2 to double by 2028

Reduce Leverage Ratio1,2 to low end of 2 to 3 times target range by the end of 2025

CALGARY, AB, Nov. 14, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI), will host its 2023 Investor Day today where its executive team will outline the Company’s continued growth plans, targets, and capital allocation strategy for the next five years.

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“Since our 2021 Investor Day, we have continued to build and invest in our growth platform,” said Bob Espey, President and Chief Executive Officer. “This year, we saw the strength of our business model as we delivered strong organic growth and synergy capture, enabling us to increase Adjusted EBITDA Guidance, exceed our deleveraging goals, and accelerate our $2 billion ambition to 2024, a year ahead of schedule.”

“The success of Parkland’s strategy is due to our industry leading team, which is focused on safe and disciplined execution,” added Espey. “Our business is growing, and we are committed to meeting the evolving needs of our customers. We are reinforcing our financial foundation, delivering substantial cash flow and, through disciplined capital allocation, we will optimize returns for our shareholders.”

During today’s Investor Day, Parkland’s executive team will discuss:

Customer Advantage

Parkland’s customer centric strategy demonstrates our commitment to becoming the number one choice for energy and convenience, for our Retail and Commercial customers, in the markets we serve.

Our JOURNIE™ loyalty platform is a foundation of this strategy as it expands its suite of partners and geographic reach. It will continue to unify our brands, delivering personalized customer offers, while incentivizing and rewarding customer loyalty across our retail fuel and EV charging locations, ON the RUN convenience stores, and food brands.

In addition to its retail footprint, Parkland serves a diverse range of Commercial customers in each of its markets. Our extensive proprietary infrastructure and dedicated team safely and reliably deliver products to our customers that meet their energy needs of today, and their evolving low carbon needs of tomorrow.

Supply Advantage

Parkland’s proven supply expertise underpins its strategy. By delivering approximately 28 billion litres of fuel annually, the Company’s scale, unique logistics assets, and capabilities provide purchasing power and optionality that enable us to achieve the lowest cost to serve. Our supply optimization allows us to create tremendous competitive advantage and unlock significant value in the markets we operate.

Disciplined Capital Allocation

We anticipate $6 billion in cumulative Available cash flow from 2024 to 2028. We are positioned to deliver sustainable growth, enhance shareholder returns and strengthen our balance sheet.

The Company’s capital allocation program will direct approximately $1.5 billion (25 percent) to dividends and share buybacks, and $1.5 billion (25 percent) to organic growth initiatives that reinforce our market position.

With the remaining $3 billion (50 percent) of anticipated capital, we will prioritize reducing our Leverage Ratio to the low end of our two to three times target range by the end of 2025. Beyond that and looking forward through 2028, we expect capital will be strategically allocated toward opportunities that generate the greatest shareholder returns, including additional share buybacks and inorganic growth opportunities. This framework underscores Parkland’s dedication to financial discipline and strategic agility, with the aim of delivering long-term value for our shareholders.

Parkland remains focused on executing its strategy, capturing synergies, lowering costs, and delivering organic growth. During Investor Day, Parkland will outline the Company’s 2024 Guidance and 2028 Ambitions.

2024 Guidance2

  • Adjusted EBITDA of $2 billion +/- $50 million
  • Capital expenditures1 of between $475 million to $525 million.
  • Available cash flow per share of $5.00.
  • ROIC1 of more than 11 percent.

2028 Ambitions

  • Available cash flow of $8.50 per share, doubling from $4.25 per share in 20233.
  • Adjusted EBITDA of $2.5 billion, driven by organic growth, synergy capture and cost efficiencies. We see potential to generate up to $3 billion of Adjusted EBITDA in 2028, reflecting disciplined inorganic growth opportunities as outlined in our capital allocation framework.

__________

1

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

2

See “Forward Looking Statements” section of this news release for assumptions underlying Parkland’s 2024 Guidance and 2028 Ambitions.

3

Trailing-twelve-months (”TTM”) Q3 2023.

Investor Day Webcast Details

The Investor Day presentation will be webcast, with video, beginning at 9 am Eastern Time (7 am Mountain Time) on November 14, 2023. For analysts and investors who have already registered to attend in person, or remotely, we look forward to your participation.

The presentation will be available live at https://investorday.parklandevents.ca/ and will be available for replay at www.parkland.ca/investors/presentations-webcasts following the conclusion of today’s event.

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provides businesses with industrial fuels so that they can better serve their customers. 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 EV charging. Parkland’s proven business model is centered around organic growth, 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 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, our values of safety, integrity, community and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used 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 strategies, objectives and initiatives; expected market trends; Parkland’s 2024 Adjusted EBITDA Guidance, 2024 Capital Expenditure Guidance, 2024 Available cash flow per share Guidance, 2024 ROIC Guidance; Parkland’s 2028 Available cash flow per share Ambition, 2028 Adjusted EBITDA Ambition, and anticipated potential to generate up to $3 billion of Adjusted EBITDA in 2028; Parkland’s expectation to generate $6 billion in cumulative Available cash flow between 2024 and 2028, and expected uses for such under Parkland’s capital allocation program, including direction of approximately $1.5 billion (25 percent) to dividends and share buybacks, $1.5 billion (25 percent) to organic growth initiatives, and $3 billion (50 percent) to reduction of Parkland’s Leverage Ratio to low 2x by 2025, and subsequently to additional share buybacks and inorganic growth opportunities.

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 obligation 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; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; customer preferences and trends; Parkland’s competitive advantages, including key products and brands, proprietary infrastructure and supply advantage, and ability to maintain such advantages; Parkland’s ability to retain key employees; 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 ability to identify buyers and complete divestments, if any, on terms reasonable to Parkland and in a timely manner; Parkland’s ability to execute on accretive organic initiatives and grow to meet its 2024 Guidance and 2028 Ambitions and expected outcomes; Parkland’s management systems and programs and risk management strategy; Parkland’s ability to pay future dividends and complete share buybacks; 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; expectations with respect to debt repayment and non-cash working capital; and other factors, many of which are beyond the control of Parkland. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses 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 percent 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 $37 to $38 per barrel and average Burnaby Refinery utilization of 85 percent to 90 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. 2024 Available cash flow per share Guidance and 2024 ROIC Guidance assumes invested capital grows at a slower pace than Net Operating Profit After Tax through 2024. 2024 Capital Expenditure Guidance is mainly driven by increased Adjusted EBITDA and assumes no material changes to underlying operations and no planned major turnaround at the Burnaby Refinery. 2028 Ambitions reflect continued organic growth from growth capital expenditure attributable to Parkland in line with historical returns, synergy capture from previously completed acquisitions, identified cost efficiencies, potential acquisitions (not identified, but reflective of expected market returns and similar to expected returns from organic growth initiatives), disciplined inorganic growth opportunities, major planned Burnaby Refinery turnarounds in 2025 and 2028, interest rates on long term bank debt and corporate bonds as set out in the Interim Consolidated Financial Statements for the three and nine months ended September 30, 2023, with any maturing debts set to retire in the interim periods extended at current prevailing market rates, income taxes at expected corporate income tax rates, including the impact of Pilar II legislation, and the key material assumptions and risks include: ongoing operations without any material economic, legal, environmental or income tax changes and per share metrics impacted by share buybacks, with the assumption that the outstanding common shares do not change materially. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recently filed Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” in the Management’s Discussion and Analysis dated November 1, 2023, for the three and nine months ended September 30, 2023 (”Q3 2023 MD&A”), each as filed on the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) and available on the Parkland website at www.parkland.ca.

Supplementary Financial Measures

This news release refers to certain non-GAAP financial measures and ratios and supplementary financial measures (collectively “specified financial measures”). Available cash flow and Available cash flow Guidance are non-GAAP measures; Available cash flow per share Guidance, Available cash flow per share Ambition, and ROIC Guidance are non-GAAP financial ratios; and Adjusted EBITDA Guidance, Adjusted EBITDA Ambition, Leverage Ratio Guidance, and Capital Expenditure Guidance are supplementary financial measures, all of which do not have standardized meanings prescribed by International Financial Reporting Standards (”IFRS”) and may not be comparable to similar financial measures used by other issuers who may calculate these measures differently. See below for further information on these specified financial measures. See Section 16 of the Q3 2023 MD&A for a discussion of Adjusted EBITDA Guidance, Leverage Ratio Guidance, and Capital Expenditure Guidance, including an explanation of their composition, and, where applicable, their reconciliations to the nearest IFRS measures, which is hereby incorporated by reference into this presentation. Investors are cautioned that these measures should not be construed as an alternative to net earnings or other directly comparable financial measures determined in accordance with IFRS as an indication of Parkland’s performance.

Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. These measures represent Parkland’s ability to generate cash flows for distribution to shareholders and investment in the growth of the business. Available cash flow is calculated as cash generated from (used in) operating activities adjusted for items such as (i) net change in non-cash working capital, (ii) change in other assets and other liabilities, (iii) change in risk management and other, (iv) maintenance capital expenditures, (v) dividends received from investments in associates and joint ventures, (vi) interest on leases and long-term debt, and (vii) principal payments on leases. Available cash flow per share is calculated as Available cash flow divided by the weighted average number of outstanding common shares. Available cash flow Guidance and Available cash flow per share Guidance are the forward-looking metrics of these historical measures for 2024 and Available cash flow per share Ambition is the forward-looking metric of the historical measure for 2028. Available cash flow per share replaced cash generated from (used in) operating activities per share in Parkland’s 2024 Guidance. See following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.

2021

2022

TTM Q3 2023

Cash generated from (used in) operating activities

$                 904

$              1,326

$               1,992

Exclude: Adjusted EBITDA to NCI

$                  (92)

$                  (64)

$                    —

Subtotal

$                 812

$              1,262

$              1,992

Reverse: change in other liabilities and assets

$                  (11)

$                    (3)

$                  (16)

Reverse: change in risk management and other

$                   15

$                     5

$                  (87)

Reverse: net change in working capital

$                 342

$                 139

$                (286)

Include: maintenance capital expenditures

$                (217)

$                (253)

$                (310)

Include: dividends from investments

$                   14

$                   17

$                    22

Include: interest on leases and debt

$                (223)

$                (295)

$                (350)

Exclude: interest on leases and debt from NCI

$                     4

$                     2

$                    —

Include: lease principal

$                (142)

$                (177)

$                (216)

Exclude: lease principal from NCI

$                   18

$                   11

$                    —

Available cash flow

$                 612

$                 708

$                  749

Weighted average shares outstanding (basic)

151

160

176

Available cash flow per share

$                4.05

$                4.43

$                 4.25

Return on Invested Capital (”ROIC”) is a non-GAAP ratio and is composed of Net Operating Profit After Tax (”NOPAT”) and Invested Capital. 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 of the total amount of capital deployed by Parkland that includes debt and equity, net of cash and cash equivalents (restricted and unrestricted). ROIC is used by management to assess the Company’s efficiency in allocating capital. The most directly comparable financial measure to ROIC is net earnings. ROIC Guidance is the forward-looking metric of this historical measure for 2024. 2024 NOPAT is assumed to grow in proportion to Adjusted EBITDA. The ROIC Guidance of 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. See following table 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

2021

2022

In C$ Millions Unless Otherwise Noted

Net Earnings

$                  126

$                  346

Income Tax Expense

$                    36

$                    70

Acquisition, Integration and Other

$                    52

$                  117

Depreciation

$                  616

$                  743

Finance Costs

$                  323

$                  331

Unrealized Foreign Exchange

$                     (7)

$                     (8)

Unrealized Risk Management

$                    10

$                    39

Other (Gains) and Losses

$                  190

$                    23

Other Adjusting Items

$                    12

$                    26

Adjusted EBITDA, Including NCI

$               1,358

$               1,687

Depreciation

$                 (616)

$                 (743)

Adjusted EBIT

$                  742

$                  944

Average Effective Tax Rate

23 %

23 %

Taxes

$                 (171)

$                 (217)

Net Operating Profit After Tax

$                  571

$                  727

Average Invested Capital

$               7,300

$               8,722

ROIC

7.8 %

8.3 %

Invested Capital

2020

2021

2022

Long-Term Debt – Current Portion

$                      114

$                 124

$                 173

Long-Term Debt

$                   3,861

$              5,432

$              6,799

Shareholders’ Equity

$                   2,266

$              2,332

$              3,037

Sol Put Option

$                      503

$                 589

$                   —

Less: Cash and Cash Equivalents

$                     (296)

$                (326)

$                (716)

Total

$                   6,448

$              8,151

$              9,293

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Sungrow Prepares to Further Drive Energy Transition in the Andean Region

BOGOTA, Colombia, Nov. 10, 2023 /PRNewswire-HISPANIC PR WIRE/ — On October 24 and 25, 2023, the Latam Future Energy Andean Renewable Summit took place in Bogota, Colombia. Sungrow, the global leading PV inverter and energy storage system supplier was key member of the summit, the Company shared insights in both solar and storage markets in varied applications, which is expected to fuel the energy transition.

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Sungrow’s business strategy in the markets of the Andean region is optimistic. According to Héctor Nuñez, Sungrow North LATAM Head of Sales, the markets are focused on the deployment of more solar energy, although some stand out for their stability and growth potential.

Chile is presented as a solid market, among the company’s target markets. Landmark projects Sungrow supplied include the 181.25 MW Coya PV project and the 638 MWh Coya BESS project. However, Sungrow’s approach is not limited to just stable markets.

“Colombia has shown interesting dynamism in recent years where Sungrow is one of the market’s pioneers. Additionally, the company is moving into growing markets, such as countries in Central America and the Caribbean, and supplies landmark projects in each market,” Luis Miguel González Castillo, Sungrow Key Account Manager for Colombia and Central America, who spoke at the summit.

The attributes of the Company allow it to have greater ambitions. When it comes to the core of its success, Oliver Quintero, Key Account Manager at Sungrow said: “Technical innovations are the core of our long-term development.”

Sungrow’s 1+X Modular Inverter for the utility-scale market is a flagship product among its numerous innovations. This product combines the advantages of both central and string inverters, featuring a 1.1 MW single unit at the minimum, and the maximum capacity can be expanded to 8.8 MW by combining eight units; thus, creating a more flexible design for different blocks sizes and allowing for easier on-site operation and maintenance.

Sungrow’s commitment to innovation doesn’t stop with inverters. The company is also focused on improving its energy storage offering. With an emphasis on storage density, cost reduction, and premium safety, Sungrow offers liquid cooled energy storage systems, the PowerStack and the PowerTitan, which are tailored to commercial & industrial and utility-scale energy storage markets respectively.

For the last four years, Sungrow has been ranked as the world’s most bankable inverter brand (source: BloombergNEF). As Latin America is one of its strategic markets, the Company remains a large player in the region. According to its announcement during Intersolar South America 2023, its cumulative PV inverter orders contracted for Latin America hit 15 GW.

About Sungrow

Sungrow Power Supply Co., Ltd. (”Sungrow”) is the world’s most bankable inverter brand with over 405 GW installed worldwide as of June 2023. Founded in 1997 by University Professor Cao Renxian, Sungrow is a leader in the research and development of solar inverters with the largest dedicated R&D team in the industry and a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial & industrial, and residential applications, as well as internationally recognized floating PV plant solutions, NEV driving solutions, EV charging solutions and renewable hydrogen production systems. With a strong 26-year track record in the PV space, Sungrow products power over 150 countries worldwide. For more information about Sungrow, visit www.sungrowpower.com.

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Parkland Reports 2023 Third Quarter Results

Record third quarter and year-to-date Adjusted EBITDA of $585 million and $1,450 million, respectively
Record third quarter and year-to-date Net earnings per share of $1.31 and $2.19, respectively
Leverage Ratio of 2.9 times is within target range

CALGARY, AB, Nov. 1, 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 and nine months ended September 30, 2023.

Q3 2023 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $585 million, up 78 percent from the third quarter of 2022.
  • Net earnings attributable to Parkland (”Net earnings”) of $230 million ($1.31 per share, basic) more than double the Net earnings from the third quarter of 2022, and Adjusted earnings attributable to Parkland (”Adjusted earnings”2) of $231 million ($1.31 per share, basic) nearly five times the Adjusted earnings from the third quarter of 2022.
  • Cash generated from (used in) operating activities of $528 million ($3.00 per share, basic3), up 31 percent from the third quarter of 2022.
  • Reduced borrowing under credit facility by $162 million, liquidity available3 of $1.8 billion, and lowered Leverage Ratio4 to 2.9 times (3.3 times in Q2 2023), within Parkland’s target range of 2 to 3 times.
  • Record Composite utilization5 at the Burnaby Refinery of 102.9 percent including record co-processing volumes of 2,600 barrels per day and consistent operational execution.
  • Parkland has electric vehicle (”EV”) charging operational at 33 sites, including 63 chargers, and is on track to meet our plan for 50 charging sites by early 2024.
  • Parkland now expects to exceed its Revised 2023 Adjusted EBITDA Guidance range of $1.8 to $1.85 billion, driven by strong utilization, optimization at the refinery, and favourable refinery margins, as well as the strength of the International business in the third quarter of 2023.

“I want to congratulate the Parkland team for delivering an exceptional quarter,” said Bob Espey, President and Chief Executive Officer. “Our consistent performance demonstrates the quality of the business we have built and has enabled us to increase our 2023 Adjusted EBITDA Guidance, accelerate our 2024 Adjusted EBITDA Guidance of $2 billion, and lower our Leverage Ratio to 2.9 times. I have conviction in our strategy and confidence in our team’s ability to meet and beat the ambitious targets we have set for ourselves. We look forward to sharing more about our plan to deliver value to shareholders at our upcoming investor day.”

_________________________________

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

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

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

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

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

Q3 2023 Segment Highlights

  • Canada delivered Adjusted EBITDA of $206 million, up 47 percent from Q3 2022 ($140 million). Fuel unit margins were higher than the comparable period as a result of continued optimization of our supply and integrated logistic capabilities and favourable market conditions. Company Volume Same Store Sales Growth (”SSSG”2) was 4.2 percent and Food and Company C-Store SSSG (excluding cigarettes)2 was 3.6 percent, driven by organic growth initiatives in our loyalty and C-store programs. Canada delivered Food and Company C-store revenue of $81 million, up 17 percent from Q3 2022 ($69 million), primarily due to organic growth.
  • International delivered Adjusted EBITDA of $170 million, up 63 percent, from Q3 2022 ($104 million). Performance was driven by organic growth that resulted in higher volumes in the wholesale business, strong fuel unit margins driven by favourable market conditions and pricing strategies, and the consolidation of Sol.
  • USA delivered Adjusted EBITDA of $52 million, up $70 million from Q3 2022 (Adjusted EBITDA loss of $18 million). Results for Q3 2022 include spot wholesale inventory and risk management losses of $65 million. Excluding these losses, Adjusted EBITDA in the third quarter of 2022 was $47 million, and Q3 2023 Adjusted EBITDA was up 11 percent. Performance was underpinned by effective cost management initiatives and strong fuel unit margins in the Commercial line of business, partially offset by weakness in Retail fuel volumes and unit margins.
  • Refining delivered Adjusted EBITDA of $188 million, up more than 39 percent, from Q3 2022 ($135 million). Performance was underpinned by robust crack spreads, record composite utilization of 102.9 percent, including record co-processing volumes of 2,600 barrels per day, and optimization of the production mix.
  • Parkland’s total recordable injury frequency rate5 on a trailing-twelve-months basis was 0.95, a decrease of 16 percent compared to 1.13 in the third quarter of 2022.

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended September 30,

Financial Summary

2023

2022

Sales and operating revenue

8,873

9,422

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

585

328

Canada

206

140

International

170

104

USA

52

(18)

Refining

188

135

Corporate

(31)

(33)

Net earnings (loss) attributable to Parkland

230

105

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

1.31

0.67

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

1.28

0.66

Trailing-twelve-month (”TTM”) Cash generated from (used in) operating activities(2)

1,992

815

TTM Cash generated from (used in) operating activities per share(2)

11.39

5.26

Cash generated from (used in) operating activities

528

404

Cash generated from (used in) operating activities per share(2)

3.00

2.59

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

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

Q3 2023 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, November 2, 2023 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://app.webinar.net/39A5XB5PMgZ

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: 19474746). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 19474746).

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 Interim Consolidated Financial Statements

The Management’s Discussion and Analysis for the three and nine months ended September 30, 2023 (the “Q3 2023 MD&A”) and consolidated financial statements for the three and nine months ended September 30, 2023 (the “Q3 2023 Interim Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2023. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q3 2023 MD&A and the Q3 2023 Interim Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.

2023 Investor Day Registration

Parkland will host its 2023 Investor Day presentation on November 14, 2023 at 9:00 am EST (7:00 am 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:// h umancontact.formstack.com/forms/pkl_2023_investor_day_for m

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provides businesses with industrial fuels so that they can better serve their customers.

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 EV charging.

Parkland’s proven business model is centered around organic growth, 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 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, 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, 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, its expectation to exceed its Revised 2023 Adjusted EBITDA Guidance range of $1.8 to $1.85 billion, and acceleration of the 2024 Adjusted EBITDA Guidance of approximately $2 billion; and Parkland’s plan to have 50 electric vehicle charging stations by early 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 refinery margins; 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 percent and Food, convenience and other adjusted gross margin of approximately 15 percent 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 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. Confidence in Parkland’s ability to exceed the Revised 2023 Adjusted EBITDA Guidance range is driven by the favourable refinery margins environment and the strength of the International wholesale business in the third quarter of 2023. 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 percent 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 percent to 95 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. 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 Q3 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.

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 16 of the Q3 2023 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 under IFRS 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 16 of the Q3 2023 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 (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level.

Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland’s operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company’s overall performance as they exclude certain significant items that are not reflective of the Company’s underlying business operations.

See Section 16 of the Q3 2023 MD&A, which is incorporated by reference into this news release, for the detailed definition of Adjusted earnings (loss).

Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share.

Three months ended
September 30,

($ millions, unless otherwise stated)

2023

2022

Net earnings (loss) attributable to Parkland

230

105

Add: Net earnings (loss) attributable to NCI

13

Net earnings (loss)

230

118

Add:

Acquisition, integration and other costs

38

45

(Gain) loss on foreign exchange – unrealized

1

(16)

(Gain) loss on risk management and other – unrealized

(19)

(1)

Other (gains) and losses

(37)

(88)

Other adjusting items(1)

20

(5)

Tax normalization(2)

(2)

2

Adjusted earnings (loss) including NCI

231

55

Less: Adjusted earnings (loss) attributable to NCI

6

Adjusted earnings (loss)

231

49

Weighted average number of common shares (million shares)(3)

176

156

Weighted average number of common shares adjusted for the effects of dilution (million shares)(3)

180

158

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

Basic

1.31

0.31

Diluted

1.28

0.31

(1)

Other adjusting Items for the three months ended September 30, 2023 include: (i) other income of $15 million (2022 – $3 million); (ii) the share of depreciation and income taxes for the Isla joint venture of $5 million (2022 – $2 million); (iii) realized risk management gain related to underlying physical sales activity in another period of $1 million (2022 – $3 million); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (v) unrealized risk management loss related to underlying physical sales activity in current period of nil (2022 – $10 million); and (vi) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million).

(2)

The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign exchange gains and losses, unrealized gains and losses on risk management and other, gains and losses on asset disposals, 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, impairments of non-current assets and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.

(3)

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.

Food and Company C-Store 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 C-Store SSSG does not have any standardized meaning prescribed under IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. 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 September 30,

($ millions)

2023

2022

%(1)

Food and Company C-Store revenue

81

69

Add:

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

329

302

Less:

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

(64)

(54)

Same Store revenue adjustments(4) (excluding cigarettes)

(37)

(17)

Food and Company C-Store same-store sales

309

300

3.0 %

Less:

Same Store revenue adjustments(4) (cigarettes)

(108)

(105)

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

201

195

3.6 %

Three months ended September 30,

($ millions)

2022

2021

%(1)

Food and Company C-Store revenue

69

102

Add:

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

302

164

Less:

Rental income from retailers and others(3)

(40)

(27)

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

(112)

(8)

Food and Company C-Store same-store sales

219

231

(5.1) %

Less:

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

(101)

(119)

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

118

112

5.2 %

(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 as Parkland earns rental income from retailers in the form of a percentage rent on convenience store sales. POS values are calculated based on the information obtained from Parkland’s POS systems at retail sites, including transactional data, such as sales, costs and volumes which are subject to internal controls over financial reporting. We also use this data to calculate rental income from retailers in the form of a percentage rent on convenience store sales, which is  recorded as revenue in our 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 other.

(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 acquisitions completed within the year as these will not impact the metric until after the completion of one year of the acquisitions when the sales or volume generated establish the baseline for these metrics.

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 16 of the Q3 2023 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including 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 16 of the Q3 2023 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 Q3 2023 Interim 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 16 of the Q3 2023 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. 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 16 of the Q3 2023 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 and nine months ended September 30, 2023 and September 30, 2022.

Three months ended
September 30,

Nine months ended
September 30,

($ millions)

2023

2022

2023

2022

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

585

328

1,450

1,165

Add: Attributable to NCI

12

67

Adjusted EBITDA including NCI

585

340

1,450

1,232

Less/(add):

Acquisition, integration and other costs

38

45

104

76

Depreciation and amortization

205

202

601

531

Finance costs

93

87

295

237

(Gain) loss on foreign exchange – unrealized

1

(16)

35

(16)

(Gain) loss on risk management and other – unrealized

(19)

(1)

(62)

30

Other (gains) and losses(1)

(37)

(88)

(2)

44

Other adjusting items(2)

20

(5)

42

5

Income tax expense (recovery)

54

(2)

52

48

Net earnings (loss)

230

118

385

277

Net earnings (loss) attributable to Parkland

230

105

385

241

Net earnings (loss) attributable to NCI

13

36

(1)

Other (gains) and losses for the three months ended September 30, 2023 include the following: (i) $15 million gain (2022 – $4 million) in Other income; (ii) $13 million non-cash valuation gain (2022 – $37 million) due to the change in fair value of redemption options; (iii) $7 million non-cash valuation gain (2022 – $7 million loss) due to the change in estimates of environment provision; (iv) $6 million gain (2022 – nil) on disposal of assets; and (v) $4 million loss (2022 – $54 million gain) in Others, including $3 million (2022 – nil) associated with the write-off of certain assets related to the renewable diesel complex, and gains of nil (2022 – $59 million) in relation to changes in redemption value of the Sol Put Option, which was de-recognized on Parkland’s acquisition of the remaining 25% of the issued and outstanding shares in Sol on October 18, 2022. Other (gains) and losses for the nine months ended September 30, 2023 include the following: (i) $32 million loss (2022 – $10 million gain) in Others, including $27 million associated with the write-off of certain assets related to the renewable diesel complex, and gains of nil (2022 – $11 million) in relation to changes in redemption value of the Sol Put Option, which was de-recognized on Parkland’s acquisition of the remaining 25% of the issued and outstanding shares in Sol on October 18, 2022; (ii) $21 million gain (2022 – $5 million) in Other income; (iii) $17 million non-cash valuation gain (2022 – $65 million loss) due to the change in fair value of redemption options; (iv) $3 million loss (2022 – $11 million gain) due to the change in estimates of environment provision; and (v) $1 million loss (2022 – $5 million) on disposal of assets. Refer to Note 12 of the Interim Condensed Consolidated Financial Statements.

(2)

Other adjusting items for the three months ended September 30, 2023 include: (i) other income of $15 million (2022 – $3 million); (ii) the share of depreciation and income taxes for the Isla joint venture of $5 million (2022 – $2 million); (iii) realized risk management gain related to underlying physical sales activity in another period of $1 million (2022 – $3 million); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (v) unrealized risk management loss related to underlying physical sales activity in current period of nil (2022 – $10 million); and (vi) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million). Other adjusting items for the nine months ended September 30, 2023 include: (i) other income of $21 million (2022 – $4 million); (ii) the effect of market-based performance conditions for equity-settled share-based award settlements of $13 million (2022 – nil); (iii) the share of depreciation and income taxes for the Isla joint venture of $11 million (2022 – $9 million); (iv) realized risk management gain related to underlying physical sales activity in another period of $4 million (2022 – $3 million); (v) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $3 million); (vi) unrealized risk management loss related to underlying physical sales activity in the current period of nil (2022 – $10 million); and (vii) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million).

Parkland uses Adjusted gross margin as a measure of segment profit (loss) to analyze the performance of sale and purchase transactions and performance on margin.

See Section 16 of the Q3 2023 MD&A, which is incorporated by reference into this news release, for the detailed definition of Adjusted gross margin.

Refer to the table below for a detailed calculation of Adjusted gross margin for the three months ended September 30, 2023 and September 30, 2022

Three months ended September 30,

($ millions)

2023

2022(2)

Sales and operating revenue

8,873

9,422

Cost of purchases

(7,638)

(8,635)

Gain (loss) on risk management and other – realized

(130)

100

Gain (loss) on foreign exchange – realized

(8)

(13)

Other adjusting items to Adjusted gross margin(1)

(10)

Adjusted gross margin

1,097

864

Fuel and petroleum product adjusted gross margin

908

687

Food, convenience and other adjusted gross margin

189

177

Adjusted gross margin

1,097

864

(1) Other adjusting items to Adjusted gross margin for the three months ended September 30, 2023 includes (i) realized risk management gain related to underlying physical sales activity in another period of $1 million (2022 – $3 million); (ii) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $1 million); (iii) unrealized risk management loss related to underlying physical sales activity in current period of nil (2022 – $10 million ); and (iv) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains of nil (2022 – $2 million).

(2) For comparative purposes, certain amounts within sales and operating revenue, and cost of purchases for the three months ended September 30, 2022, were revised to conform to the presentation used in the current period.

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Parkland Announces Date of 2023 Third Quarter Results

CALGARY, AB, Oct. 18, 2023 /PRNewswire-HISPANIC PR WIRE/– Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2023 third quarter results after markets close on Wednesday, November 1, 2023. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Thursday, November 2, 2023, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/39A5XB5PMgZ

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: 19474746). International participants may call 1-800-389-0704 (toll free) (Conference ID: 19474746).

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 Corporation

Parkland is an international fuel distributor and retailer with operations in twenty-five 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 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 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.

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“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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