Archive for the ‘energy’ Category

Parkland announces acquisition of ConoMart Super Stores

CaribPR Wire, CALGARY, Alberta, March 09, 2020: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has entered into an asset agreement to acquire seven retail sites located in and around Billings, Montana. All seven retail sites feature a strong convenience store offering and a Conoco-branded forecourt.

“This acquisition expands our Montana business and scales our existing Northern Tier Regional Operating Center,” said Doug Haugh, President of Parkland USA. “ConoMart Super Stores is a well-run, customer-focused business and we look forward to welcoming the team to Parkland.”

Pro forma the acquisition, Parkland expects a modest increase in annual run-rate adjusted EBITDA for its USA operating segment. The transaction is expected to close in the second quarter of 2020 and is subject to customary closing conditions.

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

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

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”, “pro forma” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of this acquisition and the timing thereof; expected benefits of the acquisition, including potential synergies, organic growth and acquisition opportunities and the expected annual run-rate adjusted EBITDA of Parkland’s USA operating segment following the acquisition.

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

Annual run-rate adjusted EBITDA is an internally-prepared estimate of annualized adjusted EBITDA which assumes full year contributions from the acquisitions to date. Annual run-rate adjusted EBITDA is a non-GAAP financial measure and may not be comparable to similar measures used by other issuers. See Parkland’s Annual MD&A for further information on how Parkland calculates adjusted EBITDA and a reconciliation to the nearest IFRS measure.

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Parkland delivers record 2019 Adjusted EBITDA and increases dividend

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

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

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

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

Dividend Increase

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

Segment Highlights

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

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

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

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

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

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

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

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

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

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

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

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

Consolidated Financial Overview

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

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

2019(4)

2018(4)

2017(4)

2019(4)

2018(4)

2017(4)

Financial Summary
Fuel and petroleum product volume (million litres)

5,925

4,354

4,432

22,408

16,978

13,333

Adjusted gross profit(1)

728

587

469

2,832

1,995

1,094

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

327

285

198

1,358

887

418

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

302

285

198

1,265

887

418

Supply

152

199

94

658

561

160

Canada Retail

56

78

94

283

316

231

International

73

281

Canada Commercial

33

27

28

99

93

70

USA

15

11

4

56

28

16

Corporate

(27

)

(30

)

(22

)

(112

)

(111

)

(59

)
Net earnings

186

77

49

414

206

82

Net earnings attributable to Parkland

176

77

49

382

206

82

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

1.19

0.58

0.37

2.60

1.56

0.70

Per share – diluted

1.17

0.57

0.37

2.55

1.53

0.69

Distributable cash flow(2)

149

151

45

564

416

151

Per share(2)(3)

1.01

1.14

0.33

3.84

3.15

1.29

Adjusted distributable cash flow(2)

142

175

102

561

568

251

Per share(2)(3)

0.96

1.32

0.78

3.82

4.30

2.15

Dividends

44

41

39

177

159

138

Dividends declared per share outstanding

0.2985

0.2934

0.2886

1.1906

1.1704

1.1510

Dividend payout ratio(2)

30

%

27

%

89

%

31

%

38

%

91

%

Adjusted dividend payout ratio(2)

31

%

23

%

38

%

32

%

28

%

55

%

Shares outstanding (millions)

148

134

131

148

134

131

Weighted average number of common shares (million shares)

148

133

131

147

132

117

Total Funded Debt to Credit Facility EBITDA ratio(2)

2.79

2.47

2.62

2.79

2.47

2.62

Interest coverage ratio(2)

5.32

6.52

7.65

5.32

6.52

7.65

Growth capital expenditures attributable to Parkland

69

57

15

221

109

35

Maintenance capital expenditures attributable to Parkland

91

52

50

232

187

75

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

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

Three months ended December 31,

Year ended December 31,

($ millions)

2019

2018

2019

2018

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Supply

152

(10

)

142

199

658

(32

)

626

561

Canada Retail

56

(8

)

48

78

283

(26

)

257

316

Canada Commercial

33

(2

)

31

27

99

(7

)

92

93

International

73

(15

)

58

281

(57

)

224

USA

15

15

11

56

(2

)

54

28

Corporate

(27

)

(1

)

(28

)

(30

)

(112

)

(4

)

(116

)

(111

)
Consolidated

302

(36

)

266

285

1,265

(128

)

1,137

887

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

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

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

2020 Adjusted EBITDA and Capital Program Guidance

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

Guidance Metric ($ millions)
Adjusted EBITDA (1)

1,130

+/- 5%
Capital Expenditures
Growth

300

2020 Refinery Turnaround Maintenance

60

Other Maintenance

215

Total Capital Expenditures (2)

575

+/- 5%
Approximate Capital Breakdown

Total Capital Expenditures (2)

Supply

40%

Canada

35%

International

15%

USA

5%

Corporate

5%

Consolidated

100%

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

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

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

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

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

Conference Call and Webcast Details

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

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

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

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

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

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

MD&A and Consolidated Financial Statements

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

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

About Parkland Fuel Corporation

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

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

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Parkland extends relationship with Triple O’s restaurants to bring fresh, high quality food options to On the Run locations in new Canadian markets

CaribPR Wire, CALGARY, Alberta, Feb. 24, 2020: Parkland Fuel Corporation (“Parkland”) (TSX: PKI) announced today a multi-year agreement to strengthen its already extensive range of freshly prepared, high quality meal options by expanding its existing, long-standing relationship with Triple O’s restaurants.

This new and exclusive agreement builds on the success of Parkland’s existing network of convenience stores which feature Triple O’s in British Columbia. Importantly, it paves the way for more restaurants in British Columbia, as well as Triple O’s entry into new and densely populated markets in Alberta and Ontario.

“We look forward to working with Triple O’s to expand their presence in BC and launch their high-quality food brand and award-winning menu into Alberta and Ontario,” said Ian White, Parkland’s Senior Vice President of Strategic Marketing and Innovation. “As part of our organic growth strategy, our goal is to include a high-quality food offering in every new and retrofitted On the Run convenience store.”

The combination of Parkland’s powerful network of fuel brands, accompanied by Triple O’s freshly prepared, high-quality, breakfast, lunch, dinner and snack options strongly complement Parkland’s already extensive food offering and is a natural, differentiated extension to its On the Run convenience store brand.

“This is an exciting day for the Triple O’s family,” said Warren Erhart, President of White Spot Hospitality. “We have a longstanding and successful partnership with Parkland in British Columbia and look forward to expanding on this success in new markets. With consumers’ evolving needs for convenience and premium quality food, it is with great pride and passion that we are now able to share our delicious and craveable taste of Triple O’s with our signature burgers, fresh-cut Kennebec fries and hand-scooped milkshakes, to so many more Canadians. Simply put, Triple O’s offers a taste like no other!”

Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). In particular, this news release contains forward-looking statements with respect to, among other things, strengthening the range of freshly prepared meal options, expanding Parkland’s relationship with Triple O’s; expansion of Triple O’s presence in British Columbia, Alberta and Ontario; including a good offering in every new and retrofitted On the Run convenience store; statements related to operational efficiency; business objectives and growth strategies.

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

About Parkland

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

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

About Triple O’s
Triple O’s Restaurants is a division of White Spot Hospitality, Canada’s longest-running restaurant chain since 1928. With over 60 premium quick service restaurants throughout British Columbia, Alberta and Asia, our guests can enjoy our signature burgers made with 100% fresh Canadian beef and Secret Triple “O” Sauce, fresh-cut Kennebec fries and hand-scooped milkshakes. Our restaurants offer a casual and authentic West Coast dining experience at Chevron gas stations, free-standing restaurants, sports arenas and on university and college campuses. White Spot Hospitality is proud to be recognized with the platinum status designation as one of Canada’s Best Managed Companies, one of Canada’s top 150 iconic brands as awarded by Interbrand Canada, awarded a gold medal for excellence in franchising by the Canadian Franchise Association and as one of BC’s Most Loved Brands as recognized by Ipsos. www.tripleos.com.

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Parkland Announces Date of 2019 Fourth Quarter & Year-End Results

CaribPR Wire, CALGARY, Alberta, Feb. 21, 2020: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) expects to announce its 2019 fourth quarter and year-end results after markets close on Thursday, March 5, 2020. A conference call and webcast will then be held at 6:30 a.m. MST (8:30 a.m. EST) on Friday, March 6, 2020 to discuss the results.

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

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

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 95848696). Please connect and log in approximately 10 minutes before the beginning of the call.

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

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

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

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

Click Here for More Information »

Parkland completes acquisition of Kellerstrass Oil

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

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

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

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

Click Here for More Information »

Parkland announces acquisition of Kellerstrass Oil

CaribPR Wire, CALGARY, Alberta, Jan. 16, 2020: Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has entered into an agreement to acquire the entities and assets comprising Kellerstrass Oil Company (collectively, “Kellerstrass”).

Based in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming. In addition to highly efficient trucking, routing and distribution practices, Kellerstrass brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business. Kellerstrass will complement and strengthen Parkland’s existing Rockies Regional Operating Center.

“We continue to deliver on our growth strategy and expand our U.S. footprint,” said Doug Haugh, President of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland.”

This acquisition is at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded out of existing credit facility capacity. Pro forma the acquisition and reflecting our previously disclosed third quarter results and subsequent acquisition of the assets of Mort Distributing, Inc. and its affiliates, Parkland expects annual run-rate adjusted EBITDA of approximately C$70 million for its USA segment. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2020.

About Parkland

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

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the acquisition of Kellerstrass and the timing thereof; expected benefits of the acquisition, including potential synergies, organic growth and acquisition opportunities; and expected run-rate adjusted EBITDA of Parkland USA following the acquisition.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete the acquisition of Kellerstrass; failure to satisfy the conditions to closing of the acquisition; failure to achieve the anticipated benefits of the acquisition; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q3 2019 MD&A and annual MD&A dated February 28, 2019, each as filed on SEDAR and available on the Parkland website at www.parkland.ca

Annual run-rate adjusted EBITDA is an internally-prepared estimate of annualized adjusted EBITDA which assumes full year contributions from the acquisitions to date. Annual run-rate adjusted EBITDA is a non-GAAP financial measure and may not be comparable to similar measures used by other issuers. See Parkland’s Q3 2019 MD&A and annual MD&A for further information on how Parkland calculates adjusted EBITDA and a reconciliation to the nearest IFRS measure.

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Parkland completes acquisition of assets from Mort Distributing, Inc.

CaribPR Wire, CALGARY, Alberta, Dec. 17, 2019: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has completed the previously announced acquisition of the assets of Mort Distributing, Inc. and its affiliates (collectively, “Mort”).

Mort is a marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers across Montana. Please see Parkland’s press release dated November 21, 2019 for more information about this acquisition.

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

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

Click Here for More Information »

Parkland announces acquisition of the assets of Mort Distributing, Inc.

CaribPR Wire, CALGARY, Alberta, Nov. 21, 2019: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has entered into an agreement to acquire the assets of Montana-based Mort Distributing, Inc. and its affiliates (collectively, “Mort”).

Founded in 1958, Mort is a family-owned marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers. Mort’s operations are focused in Montana which will enable Parkland to further capture distribution efficiencies and enhance customer service across its Northern Tier Regional Operating Center (“ROC”).

“This acquisition is consistent with our U.S. growth strategy and will complement and strengthen our existing Northern Tier ROC,” said Doug Haugh, President of Parkland USA. “We look forward to welcoming the Mort team into Parkland and to continuing to deliver high-quality products and excellent service to Mort’s broad customer base.”

The acquisition will primarily be funded from cash from operations. Pro forma the acquisition, Parkland expects a modest increase in annual run-rate adjusted EBITDA for its USA segment. The transaction is expected to close by the end of 2019 and is subject to customary closing conditions.

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

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

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

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete the acquisition of Mort; failure to satisfy the conditions to closing of the acquisition; failure to achieve the anticipated benefits of the acquisition; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q3 2019 MD&A and annual MD&A dated February 28, 2019, each as filed on SEDAR and available on the Parkland website at www.parkland.ca

Annual run-rate adjusted EBITDA is an internally-prepared estimate of annualized adjusted EBITDA which assumes full year contributions from the acquisitions to date. Annual run-rate adjusted EBITDA is a non-GAAP financial measure and may not be comparable to similar measures used by other issuers. See Parkland’s Q3 2019 MD&A and annual MD&A for further information on how Parkland calculates adjusted EBITDA and a reconciliation to the nearest IFRS measure.

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

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

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

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

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

About Parkland Fuel Corporation

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

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

Click Here for More Information »

Parkland delivers record third quarter results and raises 2019 Adjusted EBITDA Guidance to $1.24 Billion

Parkland delivers record third quarter results and raises 2019 Adjusted EBITDA Guidance to $1.24 Billion

CaribPR Wire, CALGARY, Alberta, Nov. 04, 2019: Parkland Fuel Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced today the financial and operating results for the three and nine months ended September 30, 2019. The Company’s results were underpinned by operational excellence, continued synergy capture, and strong performance across the portfolio. All financial figures are expressed in Canadian dollars unless otherwise noted. Highlights from the third quarter include:

  • Adjusted EBITDA (attributable to Parkland) of $302 million and net earnings of $24 million ($0.16 per share, basic). We now expect to deliver full-year Adjusted EBITDA of $1.24 Billion +/- 5 percent
  • Fuel and petroleum product volumes of 5.6 billion litres, up 34 percent year over year
  • Non-GAAP Adjusted distributable cash flow of $125 million ($0.84 per share) and adjusted dividend payout ratio of 36 percent
  • Achieved run-rate annual synergies of approximately $160 million from the 2017 Ultramar and Chevron acquisitions; on track to reach approximately $180 million by the end of 2020
  • Demonstrated continued balance sheet strength and financial flexibility with Total Funded Debt to Credit Facility EBITDA ratio of 2.6 times

“We delivered strong financial and operating performance across all segments and continue to demonstrate our ability to operate efficiently at scale,” said Bob Espey, President and Chief Executive Officer. “Our resilient business and diverse portfolio has generated consistent results through 2019 and we expect to deliver an increased full-year 2019 Adjusted EBITDA Guidance Range of $1.24 Billion +/- 5 percent. We are well positioned for continued growth and value creation.

“In Canada, we began the national rollout of our JOURNIE™ Rewards customer loyalty program with CIBC as a strategic banking partner. The International segment continues to track ahead of plan and our acquisition of Tropic Oil in October contributed to our ongoing US growth strategy. We also achieved high utilization rates at our Burnaby Refinery. I would like to thank the Parkland team for their continued focus on advancing our strategy and setting ourselves up for continued success in 2020.”

Third Quarter Segment Highlights

Canada Retail: Continuing to enhance our customer value proposition

  • Adjusted EBITDA of $91 million (Pre-IFRS 16: $84 million), down $3 million from the same period in 2018 (excluding the impact of IFRS 16), due to slightly weaker industry gasoline margins in British Columbia and Ontario, offset by growth in non-fuel gross profit and lower operating costs.
  • Company volume same-store-sales growth (”SSSG”) was (0.3) percent, holding market share through strategic pricing improvements and targeted promotional activities but offset by weaker traffic across the industry.
  • Achieved Company C-Store SSSG of 0.9 percent, marking the 15th consecutive quarter of growth. Driven by strong execution, the successful implementation of the On the Run / Marché Express store concepts, our proprietary private label 59th Street Food Co. brand and strategic marketing efforts, we drove higher forecourt to backcourt conversion rates to deliver growth across the snacks, beverages and carwash categories.
  • Disciplined cost control measures and the conversion of company-owned, company-operated (”COCO”) sites to company-owned, retailer-operated (”CORO”) sites delivered lower operating and labour costs. We continued to evolve our retail site composition, converting approximately 20 additional Ultramar COCO sites to CORO sites. We now have approximately 20 Ultramar COCO sites remaining to convert.
  • Invested $27 million of growth capital on new to industry (”NTI”) retail sites, rebrands and refreshes including investments in the new On the Run / Marché Express store concepts.
  • On October 17, 2019 we announced the launch of JOURNIE™ Rewards, with CIBC as a strategic banking partner. JOURNIE™ will offer Canadians compelling fuel savings and merchandise offers and supports our strategy to grow our fuel sales volumes and increase foot traffic in our Canadian convenience stores. See our press release dated October 17, 2019 for further details.

Canada Commercial: Business optimization and positioning for growth

  • Adjusted EBITDA of $12 million (Pre-IFRS 16: $10 million), consistent with the same period in 2018 (excluding the impact of IFRS 16).
  • Fuel and petroleum product volumes decreased 7 percent relative to Q3 2018. We more than mitigated the impact of weaker forestry and upstream energy sector volumes and grew fuel and petroleum product adjusted gross profit per litre by 9 percent to 7.50 cpl, through a continued strategic reduction in high volume, low margin business in other areas of our portfolio.

USA: Acquisitions, organic growth, synergy capture and leveraging our supply advantage

  • Adjusted EBITDA of $17 million (Pre-IFRS 16: $16 million), up $8 million from the same period in 2018 (excluding the impact of IFRS 16), due to previously announced acquisitions, organic growth and synergy realization. We benefited from strong retail margins within our Rockies Regional Operations Center and strong diesel margins through the continued sourcing of diesel via rail from Canada.
  • Fuel and petroleum product volume was 455 million litres, up 65 percent from the same period in 2018 due to acquisition activity and organic growth initiatives.
  • Trailing twelve-month operating ratio continues to improve, at 69 percent, demonstrating our focus on cost control and the growing benefits of scale.
  • On October 1, 2019, we closed the previously announced acquisition of Tropic Oil. Tropic Oil is headquartered in Miami, Florida, and transports, distributes and markets a full range of fuels and lubricants across the Central and South Florida region. See press release dated September 5, 2019 for more details.

International: Volume growth, synergy capture and cost control

  • Adjusted EBITDA of $63 million (Pre-IFRS 16: $49 million), reflecting Parkland’s 75 percent ownership in Sol. The third quarter is a seasonally low quarter for Sol due to reduced tourism activity.
  • Fuel and petroleum product volume totaled 1,204 million litres, consisting of 458 million litres sold through retail channels and 746 million litres sold through commercial and wholesale channels.
  • Performance was driven by solid execution across all regions, including strong volumes in South America and the Western Caribbean and cost control measures in the French Caribbean.
  • We continue to benefit from early synergy capture and are on track to meet our targets by the end of 2021.

Supply: High refinery utilization and reliability, strong logistics performance

  • Adjusted EBITDA of $147 million (Pre-IFRS 16: $138 million), up $17 million from the same period in 2018 (excluding the impact of IFRS 16). The Supply segment continues to perform well, underpinned by safe and reliable operations at the Burnaby refinery and consistent performance from our integrated logistics operations (Supply & Distribution, Elbow River Marketing).
  • Solid refinery utilization of 96.2 percent, lower average crude transportation costs and profitable supply sourcing initiatives allowed us to capture strong refining crack spreads, specifically in September.
  • We continue to successfully co-process biofeeds at the Burnaby refinery, which helps establish Parkland as a leader in low-carbon fuel refining while meeting British Columbia’s low carbon fuel requirements.

Corporate: Disciplined cost control and efficiency

The Corporate segment includes centralized administrative services and expenses incurred to support operations.

  • Adjusted EBITDA of negative $28 million (Pre-IFRS 16: negative $29 million).
  • As a percentage of total adjusted gross profit, marketing, general and administrative expenses favorably decreased to 4.3 percent (down from 5.6 percent in Q3 2018).
  • Parkland manages its corporate expenses tightly and is focused on ensuring they increase at a slower pace than the Company’s adjusted gross profit.

Consolidated Financial Overview

On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance and other costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. For further information, refer to the unaudited Q3 2019 Interim Condensed Consolidated Financial Statements (”Q3 2019 FS”) and Q3 2019 Management’s Discussion and Analysis (”Q3 2019 MD&A”) for the three and nine months ended September 30, 2019.

($ millions, unless otherwise noted) Three months ended September 30, Nine months ended September 30,
2019 2018 2017 2019 2018 2017
Financial Summary
Sales and operating revenue 4,605 3,811 2,580 13,674 10,936 6,131
Adjusted gross profit(1) 679 465 266 2,104 1,408 625
Adjusted EBITDA including non-controlling interest (”NCI”) 322 200 96 1,031 602 220
Adjusted EBITDA attributable to NCI 20 68
Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1) 302 200 96 963 602 220
Net earnings 26 49 12 228 129 33
Net earnings attributable to:
Parkland 24 49 12 206 129 33
NCI 2 22
Net earnings per share ($ per share)
Per share – basic 0.16 0.37 0.10 1.41 0.98 0.30
Per share – diluted 0.16 0.36 0.10 1.38 0.95 0.29
Distributable cash flow(2) 122 118 45 415 265 106
Per share(2)(3) 0.82 0.89 0.34 2.82 2.01 0.95
Adjusted distributable cash flow(2) 125 144 64 418 393 149
Per share(2)(3) 0.84 1.08 0.49 2.84 2.98 1.33
Dividends 45 39 38 133 118 99
Dividends declared per share outstanding 0.2985 0.2934 0.2886 0.8921 0.8770 0.8624
Dividend payout ratio(2) 37 % 33 % 84 % 32 % 45 % 92 %
Adjusted dividend payout ratio(2) 36 % 27 % 59 % 32 % 30 % 66 %
Total assets 9,157 5,736 4,830 9,157 5,736 4,830
Total long-term liabilities 5,126 2,544 2,325 5,126 2,544 2,325
Shares outstanding (millions) 148 133 131 148 133 131
Weighted average number of common shares (millions) 148 133 131 147 132 113
Operating Summary
Fuel and petroleum product volume (million litres)(1)(4) 5,622 4,211 3,557 16,483 12,624 8,901
Fuel and petroleum product adjusted gross profit(2) (cpl)(5)(6)
Canada Retail 7.65 7.78 7.10 7.33 7.88 6.28
Canada Commercial 7.50 6.86 6.95 8.74 8.40 9.48
USA 4.84 3.27 2.97 4.83 3.51 3.27
International 10.22 10.91
Refinery utilization(6) 96.2 % 97.7 % % 94.4 % 74.1 % %

(1) Measure of segment profit. See Section 12 of the Q3 2019 MD&A.
(2) Non-GAAP financial measure. See Section 12 of the Q3 2019 MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Canada Retail and Canada Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 12 of the Q3 2019 MD&A.
(6) Key performance indicator. See Sections 3 and 12 of the Q3 2019 MD&A.

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

Three months ended September 30, Nine months ended September 30,
($ millions) 2019 2018 2019 2018
Adjusted
EBITDA as reported
IFRS 16
Impact
Pre-IFRS 16 Amount(1) Adjusted
EBITDA as
reported
Adjusted
EBITDA as
reported
IFRS 16
Impact
Pre-IFRS 16 Amount(1) Adjusted
EBITDA as
reported
Canada Retail 91 (7 ) 84 87 227 (18 ) 209 238
Canada Commercial 12 (2 ) 10 10 66 (5 ) 61 66
USA 17 (1 ) 16 8 41 (2 ) 39 17
Supply 147 (9 ) 138 121 506 (22 ) 484 362
International 63 (14 ) 49 208 (42 ) 166
Corporate (28 ) (1 ) (29 ) (26 ) (85 ) (3 ) (88 ) (81 )
Consolidated 302 (34 ) 268 200 963 (92 ) 871 602

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

Updated 2019 Outlook & Guidance Range

Parkland is focused on its key strategies of organic growth, building a strong supply advantage, acquiring prudently and enabling our teams to succeed. Driven by strong performance year to date and high confidence in our fourth quarter projections, our 2019 Adjusted EBITDA Guidance Range (attributable to Parkland), which includes the impact of IFRS 16, is increased by $75 million to $1,240 million with an anticipated variance of up to 5 percent (the “2019 Guidance Range”).

In addition, the Company continues to expect approximately $200 million of maintenance capital expenditures for 2019. As indicated last quarter, we have identified additional opportunities within the Sol business which are now expected to increase 2019 growth capital expenditures by approximately $20 million, to $220 million.

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

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

In addition, the factors and assumptions which contribute to Parkland’s assessment of the 2019 Guidance Range are consistent with existing Parkland disclosure and such guidance range is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Q3 2019 MD&A and the Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Tuesday, November 5, 2019 at 6:30am MT (8:30am ET) to discuss the results.

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

https://event.on24.com/wcc/r/2117142/9A4DB55629572B2AF379B48C738BD8D0

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 47536039). International participants can call 1-587-880-2175 (toll) (Conference ID: 47536039).

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

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

MD&A and Consolidated Financial Statements

The Q3 2019 MD&A and Q3 2019 FS provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

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

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q3 2019 MD&A and annual MD&A dated February 28, 2019, each as filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, total funded debt to credit facility EBITDA ratio, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 12 of the Q3 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 12 of the Q3 2019 MD&A and Note 20 of the Q3 2019 FS for a reconciliation of these measures of segment profit. Annual synergies is a forecasted annualized measure and is considered to be forward-looking information. See Section 12 of the Q3 2019 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

In addition to non-GAAP financial measures, Parkland uses a number of operational KPIs to measure the success of our strategic objectives and to set variable compensation targets for employees. These KPIs are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Sections 3 and 12 of the Q3 2019 MD&A for further details.

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

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q3 2019 FS and Q3 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

About Parkland Fuel Corporation

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

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

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

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

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

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

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

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

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

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

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

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

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

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Leclanché and Government of St. Kitts Agree to Build Largest Solar Generation Plus Storage Project in Caribbean

Fully Integrated Solar Photovoltaic and Lithium‐ion Battery Energy Storage System Will Provide Clean and Reliable Energy for Residents of St. Kitts and Nevis

BASSETERRE, St. Kitts and Nevis, DALLAS and YVERDON LES BAINS, Switzerland, Aug. 7, 2019 /PRNewswire-HISPANIC

PR WIRE/ — The largest solar generation plus energy storage project ever to be built in the Caribbean has been

announced by the Government of St. Kitts and Nevis, the state-owned St. Kitts Electric Company (SKELEC)

and Leclanché SA (SIX: LECN), one of the world’s leading energy storage companies.

https://mma.prnewswire.com/media/711940/Leclanche_Logo.jpg

The Honorable Ian Patches Liburd, St. Kitts and Nevis Minister of Public Infrastructure, Post, Urban Development and Transport, said: “We are set to embark on this vital solar+storage project as a key part of our renewable energy thrust that is critical to the future development of our country.”

The 35.6 MW solar energy plant and 44.2 MWh battery storage facility will be built on government provided land in the Basseterre Valley, adjacent to the City of Basseterre and the current SKELEC PowerStation on the island of St. Kitts. It will provide the residents of this Caribbean twin-island Federation with a reliable and renewable clean energy source with fixed cost savings compared to the current diesel-generated power system. The system will provide between 25-30% of the nation’s current power generation needs, while displacing the same amount of diesel-generated capacity.

The solar storage project will help solidify the financial strength of SKELEC over the next 20+ years, while substantially reducing the islands’ fuel cost over that period,”said Liburd“The expected fuel avoidance cost from the installation of the solar farm will not only be beneficial to the energy demand of the Federation but represents that most viable option for securing SKELEC’s financial future.”

Leclanché will serve as the prime engineering, procurement and construction contractor for the installation of both the solar photovoltaic (PV) system and battery energy storage system (BESS).

“We want to thank Prime Minister Timothy Harris, Public Infrastructure Minister Liburd, the Government of St. Kitts-Nevis, and the SKELEC Board and Executive Team for their tremendous vision, cooperation and efforts in support of this exciting project,” said Anil Srivastava, CEO of Leclanché“This project marks the first time a megawatt-scale solar energy system, stabilized by a state-of-the art lithium battery energy storage system, can be utilized to provide true ‘base load’ power for a utility on a Caribbean island. It sends a strong signal to other Caribbean countries, and those around the world, that there is a cleaner, more cost-efficient and viable alternative to diesel power.”

Minister Liburd said“We are pleased to partner with Leclanché, one of the world’s leading energy storage solution providers, in this milestone project for the citizens of St. Kitts and Nevis. The solar and battery storage project represents a giant step forward in the government’s efforts to ensure a clean, safe and affordable energy future for our country. This project offers many benefits for our residents, businesses and the millions of tourists who visit St. Kitts and Nevis each year.”

The government recently approved an allocation of land for the project site which will be provided under a lease between the Government of St. Kitts and Nevis and the project company. SKELEC and Leclanché have already entered into a 20-year Power Purchase Agreement (PPA) which ensures the system will supply essential power capacity for St. Kitts for many years to come.

Leclanché has established a St. Kitts special purpose vehicle (SPV) along with local partner Solrid, to fund, own and operate the facility. Once the energy generation and storage project is completed and delivered, Leclanché will be responsible for the management of all project operations, maintenance and equipment warranties.

“SKELEC’s leadership in this solar generation and storage project is commendable on many levels,” said St. Kitts and Nevis Prime Minister Timothy Sylvester Harris“This project is an example of the bold thinking and actions being undertaken by our electric utility to ensure a reliable power supply and a cleaner, more sustainable environment for our citizens and tourists.”

“The cost of this project to St. Kitts and Nevis citizens is zero,” said Bryan Urban, Executive Vice President and Head of Leclanché Stationary Business Unit“It is being fully paid-for over 20 years through the savings created by the switch to clean and reliable solar energy.”

Ground-breaking for the solar and energy storage project is scheduled for mid-October 2019 with an anticipated completion date of September 2020.

For more information, write to info@leclanche.com or visit www.leclanche.com.

About Leclanché
Headquartered in Switzerland, Leclanché SA is a leading provider of high-quality energy storage solutions designed to accelerate our progress towards a clean energy future. Leclanché’s history and heritage is rooted in over 100 years of battery and energy storage innovation and the Company is a trusted provider of energy storage solutions globally. This coupled with the Company’s culture of German engineering and Swiss precision and quality, continues to make Leclanché the partner of choice for both disruptors, established companies and governments who are pioneering positive changes in how energy is produced, distributed and consumed around the world. The energy transition is being driven primarily by changes in the management of our electricity networks and the electrification of transport, and these two end markets form the backbone of our strategy and business model. Leclanché is at the heart of the convergence of the electrification of transport and the changes in the distribution network. Leclanché is the only listed pure play energy storage company in the world, organised along three business units: stationary storage solutions, e-Transport solutions and specialty batteries systems. Leclanché is listed on the Swiss Stock Exchange (SIX: LECN).

SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9

Disclaimer
This press release contains certain forward-looking statements relating to Leclanché’s business, which can be identified by terminology such as “strategic”, “proposes”, “to introduce”, “will”, “planned”, “expected”, “commitment”, “expects”, “set”, “preparing”, “plans”, “estimates”, “aims”, “would”, “potential”, “awaiting”, “estimated”, “proposal”, or similar expressions, or by expressed or implied discussions regarding the ramp up of Leclanché’s production capacity, potential applications for existing products, or regarding potential future revenues from any such products, or potential future sales or earnings of Leclanché or any of its business units. You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of Leclanché regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that Leclanché’s products will achieve any particular revenue levels. Nor can there be any guarantee that Leclanché, or any of the business units, will achieve any particular financial results.

Logo - https://mma.prnewswire.com/media/711940/Leclanche_Logo.jpg

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

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

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

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

Q2 2019 Highlights

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

Canada Retail Highlights

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

Canada Commercial Highlights

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

USA Highlights

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

International Highlights

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

Supply Highlights

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

Corporate Segment Highlights

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


Consolidated Financial Overview

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

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

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

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

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

Updated 2019 Outlook & Guidance Range

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

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

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

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

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

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

Conference Call and Webcast Details

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

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

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

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

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

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

MD&A and Consolidated Financial Statements

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

About Parkland Fuel Corporation

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

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

Click Here for More Information »

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

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

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

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

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

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

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

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

Voting results for all matters have been posted on SEDAR.


About Parkland Fuel Corporation

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

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

Click Here for More Information »

Parkland Fuel Corporation Announces Record 2019 First Quarter Results

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

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

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

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

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

Q1 2019 Highlights

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

Canada Retail Highlights

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

Canada Commercial Highlights

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

USA Highlights

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

International Highlights

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

Supply Highlights

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

Corporate Segment Highlights

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


Consolidated Financial Overview

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

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

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

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

IFRS 16
Impact

Pre-IFRS
16
Amount(1)

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

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


2019 Outlook & Guidance Range

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

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

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

The 2019 Guidance Range includes some key assumptions highlighted below:

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

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

Conference Call and Webcast Details

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

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

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

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

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

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

Annual General Meeting

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

MD&A and Consolidated Financial Statements

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

About Parkland Fuel Corporation

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

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

Click Here for More Information »

Parkland Fuel Corporation Hosts Investor Day

CaribPR Wire, CALGARY, Alberta, April 03, 2019: Parkland Fuel Corporation (“Parkland”, the “Company”) (TSX:PKI) will host its Investor Day later this morning, with webcast details confirmed below.

Parkland’s executive team will be providing a business overview, update on corporate strategy and a review of Parkland’s financial outlook.  Highlights of the presentation include:

  • An expected growth capital investment of approximately $200 million for 2019;
  • An update on Parkland’s 2020 Burnaby refinery turnaround, which has an initial cost estimate of approximately $85 million and is expected to take 8 weeks to complete. This cost estimate may vary by plus or minus 30% depending on scope finalization and discoveries made during the actual turnaround. The 2020 major turnaround was previously outlined and is considered an approximate 5-year cycle event; and
  • Additional details regarding the product offerings and geographic breakdowns that contributed to Parkland 2018 Adjusted EBITDA in its various segments.

Investor Day Webcast Details

The Investor Day presentation will be webcast beginning at 9 a.m. Eastern Time (7 a.m. Mountain Time) today, and will be available using the following link:

https://event.on24.com/wcc/r/1939128/F208F2F5CA75B5006B4B051A8BB0DF9A

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

For analysts and investors interested in attending in person, or if you require additional information, please contact Melanie Forsyth at Melanie.Forsyth@parkland.ca.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. This news release contains forward-looking statements with respect to, 2019 growth capital estimates, 2020 turnaround costs and timing, corporate strategy and financial positions, plans and objectives of or involving Parkland. Please review the forward-looking statement in the linked presentation for further details regarding forward-looking information included in the presentation.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 29, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q4 2018 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Non-GAAP Financial Measures

Adjusted EBITDA is a measures of segment profit. See Section 13 of the Q4 2018 MD&A and Note 24 of the 2018 Consolidated Financial Statements for a reconciliation of this measures of segment profit. Investors are encouraged to evaluate this measure and the reasons Parkland considers it appropriate for supplemental analysis.

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

About Parkland Fuel Corporation

Parkland is Canada and the Caribbean’s largest, and one of America’s fastest growing, independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers in 25 countries through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

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

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WRB Energy: What Will It Take to Develop More Renewable Energy in the Caribbean?

TAMPA, Florida, March 12, 2019 /PRNewswire-HISPANIC PR WIRE/ – With the abundance of clean energy resources in the Caribbean—sun, wind, water, and geothermal—it’s a natural environment for more renewable energy generation.  So why isn’t there more renewable energy produced in the Caribbean, and why aren’t there more projects in the pipeline?

With more than three decades of experience developing renewable energy projects and operating utilities, WRB Energy can address some of the challenges that hinder increased renewable energy generation in the Caribbean.

Contain costs

Most small Caribbean island nations lack economies of scale to absorb the high costs and complexities of developing relatively small renewable installations as compared to those in larger, more developed countries.  With relatively smaller populations, economies, and electricity demand, there are fewer kilowatt-hours produced to amortize the up-front investment expenses cost-effectively. However, as the prices for renewable energy equipment continue to decrease and technologies advance, solar, wind, and geothermal are increasingly more viable, least-cost options for diversified energy portfolios.

Flatten the learning curve

Government leaders with a stable long-term vision and implementation plans for increased renewable energy attract the best opportunities for project development. By working collaboratively, utilities, government, regulators and developers can help level the learning curve for initial projects.

Understand that land is precious

Securing appropriate land for project siting poses significant challenges. There is tremendous pride in land ownership, with parcels of land being passed on from generation to generation. Also, there is a history of informal land dealings, which leads to clouded property titles. Consequently, these issues can create local owner resistance to land transactions and long-term leases.

Clarify investment requirements

Banks, investors, and multilateral organizations have mandates, terms, securities and covenants that can be misunderstood in negotiations with governments, utilities and regulators. Policies and processes need to be clearly defined to avoid misinterpretation of project terms.

Harness a sustainable future

Developing renewable systems reliably and affordably requires due diligence to avoid electricity rate increases. It’s a long-term strategy requiring cooperation between stable government policies, flexible utilities, competent regulatory bodies, responsible investors, and credible development partners to design, develop and deliver renewable energy projects as promised.  Read more at https://wrbenergy.com/wp-content/uploads/2013/08/FINAL-ENERGY-0032-2019-feature-article-3-4-19.pdf. Download photos at https://www.dropbox.com/sh/8u4fxjjpjghexce/AACs-LpeFMSgBQ58o7_NrmzQa?dl=0

WRB Energy develops renewable energy projects to help stabilize electricity prices, reduce dependence on imported fuels, and drive economic growth in Latin America and the Caribbean. Visit www.wrbenergy.com and https://wrbenergy.com/content-solar-jamaicas-first-utility-scale-solar-plant/.

Click Here for More Information »

Parkland Fuel Corporation Announces Record 2018 Adjusted EBITDA of $887 million & Dividend Increase

Exceptional 2018 Driven by Full Year Contributions From Acquisitions, Strong Supply Performance and Integration Synergies

CaribPR Wire, CALGARY, Alberta, Feb. 28, 2019: Parkland Fuel Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced today the financial and operating results for the three months and year ended December 31, 2018. All financial figures are expressed in Canadian dollars unless otherwise noted.

“Parkland continues to deliver strong performance across the enterprise,” said Bob Espey, President and Chief Executive Officer. “A standout fourth quarter in the supply segment underpinned our record results, while continued synergy realization and underlying organic growth initiatives positively contributed. While Parkland benefited from higher than normal refining margins in the fourth quarter, we are focused on driving sustainable and long-term cash flow growth within the ratable portions of our business. I would like to thank the entire Parkland team for their hard work and continued focus on safety to deliver another record year.”

Dividend Increase

Parkland’s annualized common share dividend will increase two cents per share, from $1.174 to $1.194, effective with the monthly dividend payable on April 15, 2019 to shareholders of record at the close of business on March 22, 2019.

Q4 & Full-Year 2018 Highlights

  • Fourth quarter Adjusted EBITDA of $285 million and net earnings of $77 million ($0.58 per share, basic) was driven by strong refining crack spreads, continued efforts in executing Parkland’s supply strategy and synergy realization.
  • Full-year Adjusted EBITDA of $887 million and net earnings of $206 million ($1.56 per share, basic). As the acquisition of the majority of the Canadian business and assets of CST Brands, Inc. (the “Ultramar Acquisition”) closed on June 28, 2017, and the acquisition of all outstanding shares of Chevron Canada R & M ULC (the “Chevron Acquisition”) closed on October 1, 2017 (collectively, the “Acquisitions”), the increase in full-year Adjusted EBITDA and net earnings was driven by full year contributions from the Acquisitions in addition to the factors outlined above. See Section 3 of the Management’s Discussion and Analysis for further discussion.
  • Fourth quarter fuel and petroleum product volume was 4.4 billion litres, relatively flat compared to the fourth quarter of 2017 (”Q4 2017″). On a full-year basis, fuel and petroleum product volume was 17.0 billion litres, up 27% year-over year, primarily driven by incremental business from the Acquisitions.
  • Fourth quarter Adjusted distributable cash flow increased by $73 million to $175 million, resulting in an Adjusted dividend payout ratio of 23%. Full-year Adjusted distributable cash flow increased by $317 million to $568 million, resulting in an Adjusted dividend payout ratio of 28%.
  • Total Funded Debt to Credit Facility EBITDA ratio of 2.5 times as at December 31, 2018.
  • Completed 2018 initiatives that are expected to result in run-rate annual synergies on the Acquisitions of approximately $100 million. We continue to expect that annual run-rate synergies on the Acquisitions will reach approximately $180 million by the end of 2020.
  • Announced during the fourth quarter a new strategic initiative to bring Filld’s mobile fuelling service to consumers across Canada, starting in Vancouver, British Columbia. Parkland co-led a $15 million investment into Series B Preferred Shares in the capital of Filld in October 2018. As part of Parkland’s investment, Parkland will be the exclusive supplier of fuel to Filld in Canada.

Retail Highlights

  • Fourth quarter Adjusted EBITDA of $78 million, a decrease of $16 million relative to Q4 2017 due to very strong comparable gasoline and diesel margins in Q4 2017 and softer fourth quarter 2018 margins in some markets. Our underlying Retail business is performing well, with consistent execution in the field resulting in strong key performance indicators. Full-year Adjusted EBITDA was $316 million, an increase of $85 million relative to 2017 primarily due to the Acquisitions.
  • Fourth quarter Company C-Store SSSG was 10.3%, our 12th consecutive quarter of positive Company C-Store SSSG, while full-year Company C-Store SSSG was 7.6%. Growth was attributable to the successful implementation of the new On the Run / Marché Express Flagship and Retrofit store concepts, the successful roll-out of Parkland’s proprietary private label brand 59th Street Food Co., and continued backcourt convenience store optimization that resulted in higher forecourt to backcourt conversion rates.
  • Fourth quarter Company Volume SSSG was 3.5%, while full-year Company Volume SSSG was 0.7%. The increases were primarily due to strategic efforts to increase same-store volume at Company sites.
  • We retrofitted 78 existing On the Run / Marché Express locations and constructed twelve Flagship locations in 2018. Our development initiatives will see the brand rolled out across our Canadian network in the coming years. In 2018, we expanded our private label brand, “59th Street Food Co.”, and are now offering 20 products at select Parkland locations. We are planning to launch an additional 20 private label products in 2019. In addition, we are currently testing our “Journie” loyalty program in two Canadian markets, and expect to expand the program across our network in 2019.

Commercial Highlights

  • Fourth quarter Adjusted EBITDA of $27 million, approximately flat compared to Q4 2017. Full-year Adjusted EBITDA was $93 million, an increase of $23 million relative to 2017 primarily due to the Acquisitions and strong first half 2018 propane organic growth and customer wins.
  • Fourth quarter Fuel and petroleum product volume decreased 4% relative to Q4 2017, primarily due to softer volumes in Western Canada. This was partially offset by a 4% decrease in operating costs as Parkland continues to maintain a strong emphasis on cost management.
  • Ongoing optimization of our Commercial brand portfolio in various geographies has seen certain legacy operations, particularly in Eastern Canada, successfully rebranded to Ultramar. This enables Parkland to drive future growth and sustained profitability under one aligned customer value proposition.

Supply Highlights

  • Fourth quarter Adjusted EBITDA of $199 million, an increase of $105 million relative to Q4 2017. These exceptional results were primarily driven by profitable supply sourcing initiatives, improved supply economics, continued efforts in executing Parkland’s supply advantage strategy and strong refining crack spreads. Due to the rapid price decrease of both crude feedstock and refined products in the fourth quarter, Parkland also realized a $49 million benefit from its working capital funding agreement at the Burnaby Refinery which flows through cost of purchases. On a full-year basis, this benefit totalled $20 million.
  • Full-year Adjusted EBITDA of $561 million, an increase of $401 million relative to 2017. The increase was driven by full year contributions from the Acquisitions and the factors outlined above.
  • Refinery utilization, which measures the amount of crude oil processed and converted to products in the Burnaby Refinery, was 87.8% for the fourth quarter, compared to 94.4% for Q4 2017. The Burnaby Refinery processed intermediary products and bio-fuels such as canola and tallow which are not reflected in crude throughput, and therefore not included in refinery utilization.

Parkland USA Highlights

  • Completed three acquisitions in 2018, the largest of which was the acquisition of all of the issued and outstanding equity interests of Rhinehart Oil Co., LLC and its affiliates (the “Rhinehart Acquisition”). The Rhinehart Acquisition closed on August 27, 2018, and added 10 distribution facilities, 9 retail sites, and 4 cardlock facilities across Utah, Colorado, Wyoming and New Mexico.
  • Fourth quarter Adjusted EBITDA of $11 million, an increase of $7 million relative to Q4 2017. Full-year Adjusted EBITDA was $28 million, an increase of $12 million relative to 2017. The increases are primarily due to the Rhinehart Acquisition and Parkland’s continued focus on its strategy to drive new business, grow organically and manage costs.
  • Fuel and petroleum product volume increased 92 million litres in the fourth quarter and 119 million litres on a full-year basis, relative to Q4 2017 and full-year 2017, respectively. The increase was primarily due to the Rhinehart Acquisition and organic growth initiatives.
  • Subsequent to the quarter, Parkland opened a Houston office that will support its growing supply and trading business in the U.S. and Caribbean markets.
  • Parkland will continue to look for acquisition opportunities in the U.S., including tuck-in opportunities in and around its existing regional operations centers and new regional operations centers in areas where we can establish a supply advantage.

Corporate Segment Highlights

  • Marketing, general and administrative expenses were $32 million in the fourth quarter and $111 million on a full-year basis. As expected, these expenses increased primarily due to additional corporate costs to support the larger integrated business and execute future growth strategies. In particular, additional costs were incurred for technological innovation initiatives and employee costs to support Parkland’s growth.

Consolidated Financial Overview

($ millions, unless otherwise noted) Three months ended December 31, Year ended December 31,
2018 2017 2016 2018 2017 2016
Financial Summary
Sales and operating revenue(6) 3,526 3,429 1,740 14,442 9,560 6,266
Adjusted gross profit(1) 587 469 197 1,995 1,094 708
Adjusted EBITDA(1) 285 198 77 887 418 253
Net earnings 77 49 3 206 82 48
Per share – basic 0.58 0.37 0.03 1.56 0.70 0.50
Per share – diluted 0.57 0.37 0.03 1.53 0.69 0.49
Distributable cash flow(2) 151 45 29 416 151 120
Per share(2)(3) 1.14 0.33 0.30 3.15 1.29 1.26
Adjusted distributable cash flow(2) 175 102 43 568 251 153
Per share(2)(3) 1.32 0.78 0.45 4.30 2.15 1.60
Dividends 41 39 28 159 138 110
Dividends declared per share outstanding 0.2934 0.2886 0.2835 1.1704 1.1510 1.1250
Dividend payout ratio(2) 27 % 89 % 94 % 38 % 91 % 91 %
Adjusted dividend payout ratio(2) 23 % 38 % 64 % 28 % 55 % 71 %
Total assets 5,661 5,412 2,562 5,661 5,412 2,562
Total long-term liabilities 2,750 2,469 692 2,750 2,469 692
Shares outstanding (millions) 134 131 96 134 131 96
Weighted average number of common shares (millions) 133 131 96 132 117 95
Operating Summary
Fuel and petroleum product volume (million litres)(4) 4,354 4,432 2,783 16,978 13,333 10,415
Fuel and petroleum product adjusted gross profit(1) (cpl)(5):
Retail 7.69 8.95 5.39 7.83 7.17 5.48
Commercial(6) 9.02 8.59 11.47 8.56 9.25 11.09
Parkland USA 4.97 3.48 3.62 3.95 3.32 3.46

(1) Measure of segment profit. See Section 13 of the MD&A.

(2) Non-GAAP financial measure. See Section 13 of the MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Retail and Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 13 of the MD&A.
(6) For comparative purposes, sales and operating revenue and fuel and petroleum product adjusted gross profit (cpl) for the three months ended December 31, 2017 was restated for a reclassification from Commercial to Supply, reflecting a change in customer service delivery structure in 2018.

2019 Outlook & Guidance Range

Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently. We will focus our efforts across three areas of operation (Canada, US & International):

  • Canada: Network development, optimize operations, increase customer loyalty and penetration, leverage scale
  • United States: Continued organic growth, target acquisitions with potential to enhance our supply advantage
  • International: Business continuity, asset optimization and growth

Enabled by integrated supply and marketing:

  • Supply: Leverage market inefficiencies and expand our supply advantage
  • Marketing: Enhanced customer value proposition across our entire portfolio

Our 2019 Guidance for Adjusted EBITDA attributable to Parkland is $960 million, with anticipated variance of up to 5 percent (”2019 Guidance Range”). In addition, the Company expects to spend approximately $200 million of maintenance capital expenditures. Our 2019 Guidance Range includes the expected contribution from Parkland’s 75% interest in SOL Investments Limited (”SOL”) and excludes the impact of adopting IFRS 16 – Leases. Parkland is in the process of assessing the impact of adopting IFRS 16 – Leases, which will be completed and disclosed in the March 31, 2019 Interim Condensed Consolidated Financial Statements and MD&A.

The 2019 Guidance Range includes some key assumptions highlighted below:

  • Burnaby refining margins forecast in line with the 5-year historical average
  • The performance of recently acquired businesses, general market conditions, including but not limited to fuel margins and weather, will remain substantially consistent in 2019
  • The low end of our 2019 Guidance Range accounts for potential adverse market conditions across our areas of operations, as well as the potential for lower refining margins than currently observable, while the high end of our 2019 Guidance Range accounts for greater than expected contributions from acquisition synergies, refining margins and organic growth

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

Conference Call and Webcast Details: Q4 2018 & Year-end Results

Parkland will host a webcast and conference call on Friday, March 1, 2019 at 6:30am MST (8:30am EST) to discuss the results.

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

https://event.on24.com/wcc/r/1939108/C2E33F78683C1160CA31B32003C1BF58

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 46696156).

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. It will remain available at the link above for one year and will also be posted to www.parkland.ca.

MD&A and Consolidated Financial Statements

The Q4 2018 Management’s Discussion and Analysis (”MD&A”) and the 2018 Consolidated Financial Statements provide a detailed explanation of Parkland’s operating results for the year ended December 31, 2018. An English version of these documents will be available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

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

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 9, 2018 and in “Forward-Looking Information” and “Risk Factors” in the Q4 2018 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industries. See Section 13 of the Q4 2018 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q4 2018 MD&A and Note 24 of the 2018 Consolidated Financial Statements for a reconciliation of these measures of segment profit. Annual Synergies is an annualized measure and is considered to be forward-looking information. See Section 10 of the Q4 2018 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

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

ABOUT PARKLAND FUEL CORPORATION

Parkland is Canada and the Caribbean’s largest, and one of America’s fastest growing, independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers in 25 countries through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

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

Click Here for More Information »

Perfect Water for the Caribbean – Zero Mass Water Unveils SOURCE Hydropanels in Jamaica

Zero Mass Water’s SOURCE Hydropanels make water from air for the University Hospital of the West Indies’ Pediatric Ward

KINGSTON, Jamaica, Feb. 27, 2019 /PRNewswire-HISPANIC PR WIRE/ — How does a hospital maintain continuous access to its most precious resource? Zero Mass Water has the answer: SOURCE Hydropanels that use only sunlight and air to make high-quality, resilient water.

The Caribbean Climate-Smart Accelerator was formed by Caribbean leaders in 2017 to strengthen the region’s readiness and response to disasters. The Accelerator’s objective is to create the globes’ first climate-smart zone to transform Caribbean economies with investment opportunities that support climate action. Zero Mass Water’s SOURCE Hydropanels attracted the attention of the University Hospital of the West Indies’ (UHWI) Pediatric Ward. Looking to provide high-quality water while supporting Jamaica’s pioneering efforts as one of only a handful of countries to have banned single-use plastics, the Hospital eagerly joined the ranks of communities worldwide taking their drinking water off-grid with the renewable water technology.

“We’re excited about the impact of this hospital project, our first in partnership with the Accelerator,” says Zero Mass Water Founder and CEO Cody Friesen, “This array of SOURCE Hydropanels is providing clean, resilient drinking water to staff and patients, and represents the impact we have across the broader Caribbean.”

Installed on the Hospital’s rooftop, the Hydropanel array produces up to 3,000 liters of water per month. This installation is the first of several arrays Zero Mass Water will complete through its partnership with the Caribbean Climate-Smart Accelerator.

Until now, communities in Jamaica lacked good options for water access. With the island’s water infrastructure often deemed too old and ineffective –Jamaicans often turn to bottled water as their primary supply, contributing to the nation’s plastic waste troubles. Recent water lock offs in Jamaica have left institutions, like UHWI, to seek better solutions.

SOURCE Hydropanels make, mineralize, and deliver high-quality drinking water by converting moisture in the air, representing a new choice for water that is both waste-less and reliable.

“A first step in building resilience is having access to clean drinking water after a disaster. The elegance in this solution is that it provides that facility while also displacing plastic water bottles that are contributors to our climate challenge. Zero Mass Water’s delivery of an innovative solution to our most vulnerable is an example to others, it embodies the kind of partnerships most desired by the Accelerator,” said Sir Richard Branson, Virgin Group Founder.

Zero Mass Water’s SOURCE Hydropanels are available for purchase and have been installed for homes and communities across the Caribbean.

About Zero Mass Water

Zero Mass Water’s mission is to make drinking water an unlimited resource. SOURCE is a Hydropanel that creates drinking water simply from sunlight and air – made possible by the combination of thermodynamics, materials science and controls technology. Zero Mass Water puts the power of safe, high-quality water production into the hands of every person in nearly every climate and corner of the world. Zero Mass Water is headquartered in Scottsdale, Arizona.

For more information, go to zeromasswater.com or follow Zero Mass Water on Twitter @zeromasswater.

Photo – https://mma.prnewswire.com/media/828018/Zero_Mass_Water_SOURCE_Water.jpg

Click Here for More Information »

Parkland Fuel Corporation Announces Date of 2018 Fourth Quarter & Year-End Results

CaribPR Wire, CALGARY, Alberta, Feb. 20, 2019: Parkland Fuel Corporation (“Parkland”, the “Company”) (TSX:PKI) expects to announce 2018 fourth quarter and year-end results after markets close on Thursday, February 28, 2019. A conference call and webcast will then be held at 6:30 a.m. MST (8:30 a.m. EST) on Friday March 1, 2019 to discuss the results. To listen to the live webcast and watch the presentation, please use the following link:

https://event.on24.com/wcc/r/1939108/C2E33F78683C1160CA31B32003C1BF58

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0605 (toll-free) (Conference ID: 46696156).

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

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

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

About Parkland Fuel Corporation
Parkland is Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating the Parkland Burnaby Refinery, and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings, including its On the Run/Marché Express banners, in the communities it serves.

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

Click Here for More Information »