Posts Tagged ‘#oilandgasnews’

Curaҫao takes important step towards a sustainable energy future with Wärtsilä Battery Energy Storage System

Aqualectra and Wärtsilä representatives celebrate the order of a 25 MW / 25 MWh Battery Energy Storage System (BESS) to the Caribbean island of Curaҫao
From left to right: Rudolf Garmes, Joseph Everon, Reagan Celestijn, Marc Tarbox, Tganni Louisy, Neysa Isenia, Vianney Muzo, Staffan Nygard, Mathias West, Christoffer Ek, Edul Raphaela, Granger Jahnastasio.

CARIBPR WIRE, WILLEMSTAD, Curaçao, May 20, 2024: Technology group Wärtsilä will supply the Caribbean island of Curaҫao with a 25 MW / 25 MWh Battery Energy Storage System (BESS). The system will enable the expansion of renewable energy capacity and the reduction of carbon emissions, representing an important step towards a sustainable energy future for the island. The order was placed by Aqualectra, Curacao’s government owned utilities company, and will be booked by Wärtsilä in Q2, 2024.

The BESS and the GEMS Digital Energy Platform will provide grid stability and reliability, reduce unserved energy and help mitigate the risk of brownouts and blackouts. In addition, the BESS system will allow Aqualectra to expand their renewables’ vision thus allowing more renewable generation in the power system. The BESS system will also help smooth the intermittency of renewables.

“Aqualectra’s strategic objective is to provide the community with affordable, sustainable, and reliable electricity. The Wärtsilä solution will support all these objectives through reducing generation costs, enabling the integration of renewables, and decreasing CO2 emissions, while providing high reliability,” comments Joseph Everon, Advisor to the CTO at Aqualectra.

The order with Wärtsilä follows a detailed modelling of the power system to determine the best way forward.

“The BESS and GEMS provide the reserves needed to improve asset loading, and therefore efficiency, availability of energy, grid stability and reliability. Wärtsilä’s leading technologies and our capabilities of lifecycle services will support Aqualectra’s vision of a sustainable energy future. We are pleased to continue our close partnership with this project,” says Christoffer Ek, Director of Decarbonisation services at Wärtsilä Energy.

“The Caribbean has been an important region for Wärtsilä for decades and we have established many long-term relationships over that time. Aqualectra has been one of those great partners and this announcement to add BESS to their system with Wärtsilä is another sign of that strong relationship. Wärtsilä is here with solutions and capabilities for the Caribbean, and we are excited to continue serving this market for decades to come,” says Jon Rodriguez, Energy Business Director at Wärtsilä Energy.

The Wärtsilä equipment is scheduled for delivery in Q1/2025, and the project is expected to be fully operational by the end of Q2/2025.

Aqualectra is an existing Wärtsilä customer. The company operates three Wärtsilä engine power plants comprising a total of 16 generating sets.

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

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

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a8af488e-6f63-4ea6-91b8-936849dd227f


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Parkland Issues Statement in Response to Simpson Oil Limited

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

Parkland Corporation logo

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

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

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

Simpson Reverses Its Position on Successful Parkland Strategy

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

Simpson is in Violation of Shareholder Governance Agreement

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

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

Parkland is Committed to Maximizing Shareholder Value

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

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include renewable fuels sourcing, manufacturing, and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance.

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward looking statements”). When used in this news release, the words “aim”, “continue”, “will”, “would” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the evaluation of opportunities to enhance and maximize shareholder value, Parkland’s corporate strategy and plans, Parkland’s contractual rights and the enforcement thereof, including the terms of the Governance Agreement, and Parkland’s Customer Advantage.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to:  general economic, market and business conditions; Parkland’s ability to execute its business strategy; action by other companies; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Management’s Discussion and Analysis for the most recently completed financial period, each as filed on SEDAR+ and available on Parkland’s website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland’s Burnaby Refinery safely returned to normal operations

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

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

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

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include renewable fuels sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward looking statements”). When used in this news release, the words “expect”, “anticipate”, ”will”, ”could”, ”would”, ”believe” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, expectations for composite utilization of the refinery, total Adjusted EBITDA and Adjusted EBITDA loss during the first quarter of 2024; expectations regarding our operational plans and execution, including with respect to the refinery; and expectations regarding our 2024 Adjusted EBITDA Guidance range.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: the refinery continuing to operate as expected during the remainder of the first quarter of 2024 and for the rest of 2024; general economic, market and business conditions; Parkland’s ability to execute its business strategy, including without limitation, Parkland’s ability to successfully integrate acquisitions, capture synergies, successfully implement organic growth initiatives and to finance such initiatives on reasonable terms; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including, but not limited to, increases in taxes; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin of approximately 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $45 to $46 per barrel and average Burnaby Refinery composite utilization of 75 percent to 80 percent (factoring in the unplanned outage) based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; the financial impact of the unplanned outage at the Burnaby Refinery and resumption of normal operations; enhancements to operations, utilization and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Management’s Discussion and Analysis for the most recently completed financial period, each as filed on SEDAR+ and available on Parkland’s website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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Parkland appoints James Neate to its Board of Directors

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

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

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

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

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution, and trading capabilities to accelerate growth and business performance.

In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast EV charging. Parkland’s proven business model is centered around organic growth, our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently and integrating successfully.

Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience, and renewable energy businesses, and helping customers to decarbonize. Our business is underpinned by our people, our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

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Parkland Announces Board of Directors Changes

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

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

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

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

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

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

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

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

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.

In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast EV charging. Parkland’s proven business model is centered around organic growth, our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently and integrating successfully.

Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience and renewable energy businesses and helping customers to decarbonize. Our business is underpinned by our people, our values of safety, integrity, community and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements“). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business objectives, strategies and model; Parkland’s cash flow, organic growth and the progress thereof; and Parkland’s Revised financial targets, including Adjusted EBITDA and Available Cash Flow per share objectives. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; the competitive environment of our industry; retail pricing, margins and refinery margins; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. See also the assumptions, risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q3 2023 MD&A, each filed on SEDAR+ and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures“). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 16 of the Q3 2023 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

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

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

Available cash flow per share1,2 to double by 2028

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

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

Parkland Logo

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

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

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

Customer Advantage

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

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

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

Supply Advantage

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

Disciplined Capital Allocation

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

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

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

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

2024 Guidance2

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

2028 Ambitions

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

__________

1

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

2

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

3

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

Investor Day Webcast Details

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

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

About Parkland Corporation

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 25 countries across the Americas. We serve over one million customers each day. Our vast retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provides businesses with industrial fuels so that they can better serve their customers. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.

In addition to meeting our customers’ needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include carbon and renewables trading, solar power, renewables manufacturing and ultra-fast EV charging. Parkland’s proven business model is centered around organic growth, our supply advantage, and is driven by scale, our integrated refinery and supply infrastructure, and focus on acquiring prudently and integrating successfully.

Our strategy is focused on developing our existing business in resilient markets, growing our food, convenience and renewable energy businesses and helping customers to decarbonize. Our business is underpinned by our people, our values of safety, integrity, community and respect, which are deeply embedded across our organization.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; expected market trends; Parkland’s 2024 Adjusted EBITDA Guidance, 2024 Capital Expenditure Guidance, 2024 Available cash flow per share Guidance, 2024 ROIC Guidance; Parkland’s 2028 Available cash flow per share Ambition, 2028 Adjusted EBITDA Ambition, and anticipated potential to generate up to $3 billion of Adjusted EBITDA in 2028; Parkland’s expectation to generate $6 billion in cumulative Available cash flow between 2024 and 2028, and expected uses for such under Parkland’s capital allocation program, including direction of approximately $1.5 billion (25 percent) to dividends and share buybacks, $1.5 billion (25 percent) to organic growth initiatives, and $3 billion (50 percent) to reduction of Parkland’s Leverage Ratio to low 2x by 2025, and subsequently to additional share buybacks and inorganic growth opportunities.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; customer preferences and trends; Parkland’s competitive advantages, including key products and brands, proprietary infrastructure and supply advantage, and ability to maintain such advantages; Parkland’s ability to retain key employees; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s ability to identify buyers and complete divestments, if any, on terms reasonable to Parkland and in a timely manner; Parkland’s ability to execute on accretive organic initiatives and grow to meet its 2024 Guidance and 2028 Ambitions and expected outcomes; Parkland’s management systems and programs and risk management strategy; Parkland’s ability to pay future dividends and complete share buybacks; competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; expectations with respect to debt repayment and non-cash working capital; and other factors, many of which are beyond the control of Parkland. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses and synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ending December 31, 2023; the realization of $100 million of MG&A cost efficiencies by 2024; and Refining adjusted gross margin of approximately $37 to $38 per barrel and average Burnaby Refinery utilization of 85 percent to 90 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day. 2024 Available cash flow per share Guidance and 2024 ROIC Guidance assumes invested capital grows at a slower pace than Net Operating Profit After Tax through 2024. 2024 Capital Expenditure Guidance is mainly driven by increased Adjusted EBITDA and assumes no material changes to underlying operations and no planned major turnaround at the Burnaby Refinery. 2028 Ambitions reflect continued organic growth from growth capital expenditure attributable to Parkland in line with historical returns, synergy capture from previously completed acquisitions, identified cost efficiencies, potential acquisitions (not identified, but reflective of expected market returns and similar to expected returns from organic growth initiatives), disciplined inorganic growth opportunities, major planned Burnaby Refinery turnarounds in 2025 and 2028, interest rates on long term bank debt and corporate bonds as set out in the Interim Consolidated Financial Statements for the three and nine months ended September 30, 2023, with any maturing debts set to retire in the interim periods extended at current prevailing market rates, income taxes at expected corporate income tax rates, including the impact of Pilar II legislation, and the key material assumptions and risks include: ongoing operations without any material economic, legal, environmental or income tax changes and per share metrics impacted by share buybacks, with the assumption that the outstanding common shares do not change materially. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recently filed Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” in the Management’s Discussion and Analysis dated November 1, 2023, for the three and nine months ended September 30, 2023 (”Q3 2023 MD&A”), each as filed on the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) and available on the Parkland website at www.parkland.ca.

Supplementary Financial Measures

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

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

2021

2022

TTM Q3 2023

Cash generated from (used in) operating activities

$                 904

$              1,326

$               1,992

Exclude: Adjusted EBITDA to NCI

$                  (92)

$                  (64)

$                    —

Subtotal

$                 812

$              1,262

$              1,992

Reverse: change in other liabilities and assets

$                  (11)

$                    (3)

$                  (16)

Reverse: change in risk management and other

$                   15

$                     5

$                  (87)

Reverse: net change in working capital

$                 342

$                 139

$                (286)

Include: maintenance capital expenditures

$                (217)

$                (253)

$                (310)

Include: dividends from investments

$                   14

$                   17

$                    22

Include: interest on leases and debt

$                (223)

$                (295)

$                (350)

Exclude: interest on leases and debt from NCI

$                     4

$                     2

$                    —

Include: lease principal

$                (142)

$                (177)

$                (216)

Exclude: lease principal from NCI

$                   18

$                   11

$                    —

Available cash flow

$                 612

$                 708

$                  749

Weighted average shares outstanding (basic)

151

160

176

Available cash flow per share

$                4.05

$                4.43

$                 4.25

Return on Invested Capital (”ROIC”) is a non-GAAP ratio and is composed of Net Operating Profit After Tax (”NOPAT”) and Invested Capital. NOPAT describes the profitability of Parkland’s base operations, excluding the impact of leverage and expenses not directly related to operations. Invested capital is a measure of the total amount of capital deployed by Parkland that includes debt and equity, net of cash and cash equivalents (restricted and unrestricted). ROIC is used by management to assess the Company’s efficiency in allocating capital. The most directly comparable financial measure to ROIC is net earnings. ROIC Guidance is the forward-looking metric of this historical measure for 2024. 2024 NOPAT is assumed to grow in proportion to Adjusted EBITDA. The ROIC Guidance of 11 percent+ assumes Invested Capital increases at a slower pace than NOPAT through 2024. The ROIC calculated here differs from the absolute ROIC disclosed in the Management Information Circular. See following table for a calculation of historical ROIC for 2021 and 2022, the calculation of NOPAT and the reconciliation to net earnings and the calculation of Invested Capital.

ROIC

2021

2022

In C$ Millions Unless Otherwise Noted

Net Earnings

$                  126

$                  346

Income Tax Expense

$                    36

$                    70

Acquisition, Integration and Other

$                    52

$                  117

Depreciation

$                  616

$                  743

Finance Costs

$                  323

$                  331

Unrealized Foreign Exchange

$                     (7)

$                     (8)

Unrealized Risk Management

$                    10

$                    39

Other (Gains) and Losses

$                  190

$                    23

Other Adjusting Items

$                    12

$                    26

Adjusted EBITDA, Including NCI

$               1,358

$               1,687

Depreciation

$                 (616)

$                 (743)

Adjusted EBIT

$                  742

$                  944

Average Effective Tax Rate

23 %

23 %

Taxes

$                 (171)

$                 (217)

Net Operating Profit After Tax

$                  571

$                  727

Average Invested Capital

$               7,300

$               8,722

ROIC

7.8 %

8.3 %

Invested Capital

2020

2021

2022

Long-Term Debt – Current Portion

$                      114

$                 124

$                 173

Long-Term Debt

$                   3,861

$              5,432

$              6,799

Shareholders’ Equity

$                   2,266

$              2,332

$              3,037

Sol Put Option

$                      503

$                 589

$                   —

Less: Cash and Cash Equivalents

$                     (296)

$                (326)

$                (716)

Total

$                   6,448

$              8,151

$              9,293

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Parkland Announces Date of 2023 Third Quarter Results

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

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

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 19474746). International participants may call 1-800-389-0704 (toll free) (Conference ID: 19474746).

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

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

About Parkland Corporation

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

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

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

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

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

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

Parkland Logo

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

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

2023 Adjusted EBITDA Guidance Raised

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

2024 Adjusted EBITDA Guidance of approximately $2 billion2

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

2023 Investor Day Registration is Open

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

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

About Parkland Corporation

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

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

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

Forward-Looking Statements

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

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

Supplementary Financial Measures

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

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

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

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

ROIC

2022

2021

In C$ Millions Unless Otherwise Noted

Net Earnings

346

126

Income Tax Expense

70

36

Acquisition, Integration and Other

117

52

Depreciation

743

616

Finance Costs

331

323

Unrealized Foreign Exchange

(8)

(7)

Unrealized Risk Management

39

10

Other (Gains) and Losses

23

190

Other Adjusting Items

26

12

Adjusted EBITDA, Including NCI

1,687

1,358

Depreciation

(743)

(616)

Adjusted EBIT

944

742

Average Effective Tax Rate

23 %

23 %

Taxes

(217)

(171)

Net Operating Profit After Tax

727

571

Average Invested Capital

8,722

7,300

ROIC

8.3 %

7.8 %

Invested Capital

2022

2021

2020

Long-Term Debt – Current Portion

173

124

114

Long-Term Debt

6,799

5,432

3,861

Shareholders’ Equity

3,037

2,332

2,266

Sol Put Option

589

503

Less: Cash and Cash Equivalents

(716)

(326)

(296)

Total

9,293

8,151

6,448

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

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

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

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Parkland Reports 2023 Second Quarter Results

Second quarter Adjusted EBITDA of $470 million
Publishes 2022 Sustainability Report

CALGARY, AB, Aug. 3, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and six months ended June 30, 2023.

Q2 2023 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $470 million, up 4 percent from the second quarter of 2022.
  • Net earnings attributable to Parkland (”net earnings”) of $78 million ($0.44 per share, basic) down 4 percent from the second quarter of 2022, and Adjusted earnings attributable to Parkland (”Adjusted earnings”2) of $130 million ($0.74 per share, basic) down 22 percent from the second quarter of 2022.
  • Cash generated from (used in) operating activities of $521 million ($2.97 per share, basic3) up 53 percent from the second quarter of 2022.
  • Leverage ratio4 of 3.3x and liquidity available3 of $1.6 billion.
  • In July, launched proprietary food offering, Bites ON the RUN by M&M Food Market, within a standalone ON the RUN convenience store in Montreal.
  • As of July 31, 2023, completed or reached agreements to sell non-core assets totaling approximately $100 million.

“I would like to thank the Parkland team for safe, consistent execution this quarter. We are building tremendous momentum across Parkland, positioning us to deliver a strong year at the higher end of our 2023 Adjusted EBITDA guidance,” said Bob Espey, President and Chief Executive Officer. “We are advancing every part of our strategy, driving organic growth through customer-focused marketing programs, capturing synergies and cost efficiencies, and advancing our portfolio optimization efforts. I am confident we will deliver our $2 billion Adjusted EBITDA ambition by 2025 without further acquisitions, while reducing leverage, and improving shareholder returns.”

Q2 2023 Segment Highlights

  • Canada delivered Adjusted EBITDA of $150 million, down 14 percent from Q2 2022 ($174 million). Fuel unit margins were lower than the comparable historical highs in the second quarter of 2022. Fuel volume increased from the prior year due to Company Volume Same Store Sales Growth (”SSSG”2) of 9.3 percent and the incremental benefit of 2022 acquisitions. Food and Company C-Store SSSG (excluding cigarettes)2 increased to 3.1 percent, up from (0.6) percent in Q2 2022.
  • International delivered Adjusted EBITDA of $168 million, up 93 percent, from Q2 2022 ($87 million). Performance was driven by the consolidation of Sol, higher volumes in our retail and contracted commercial businesses, organic growth in our aviation business, and contributions from our Jamaica acquisition.
  • USA delivered Adjusted EBITDA of $74 million, up 45 percent from Q2 2022 ($51 million). Strong performance reflects the capabilities of our USA team and was underpinned by strong fuel unit margins. Favourable market conditions and strong market positions enabled us to capture margin opportunities.
  • Refining delivered Adjusted EBITDA of $109 million, down 34 percent, from Q2 2022 ($164 million) primarily reflecting lower crack spreads. The scheduled maintenance turnaround was completed in early April and composite utilization5 was 91.0 percent.
  • The Company realized non-recurring foreign exchange gains of $25 million on the settlement of financing balances during the quarter.
  • Parkland’s total recordable injury frequency rate5 on a trailing-twelve-months basis was 0.87, a decrease of 18 percent compared to 1.06 in the second quarter of 2022.

___________________________

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

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

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

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

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


2022 Sustainability Report

Today, we published our fourth Sustainability Report. Titled ‘Drive to Zero’, it outlines our strategy and the actions we are taking to drive sustainable growth and shareholder returns. The report highlights the many successful initiatives underway. Among them are: industry-leading efforts on co-processing low-carbon, renewable fuels; safer, more diverse, and inclusive work environments; and the incorporation of sustainability metrics into executive compensation.

Parkland’s Sustainability Report can be viewed here:
https://www.parkland.ca/sustainability/sustainability-report

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended June 30,

Financial Summary

2023

2022

Sales and operating revenue

7,819

9,715

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

470

450

Canada

150

174

International

168

87

USA

74

51

Refining

109

164

Corporate

(31)

(26)

Net earnings (loss) attributable to Parkland

78

81

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

0.44

0.52

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

0.44

0.52

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

1,868

611

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

10.99

3.97

Cash generated from (used in) operating activities

521

341

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

2.97

2.19

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

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

Q2 2023 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, August 4, 2023 at 6:30 am MDT (8:30 am EDT) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/XDpG4K6kMy5

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 77390959). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 77390959).

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

MD&A and Consolidated Financial Statements

The management’s discussion and analysis for the three and six months ended June 30, 2023 (the “Q2 2023 MD&A”) and consolidated financial statements for the three and six months ended June 30, 2023 (the “Q2 2023 Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2023. 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.sedarplus.ca. The French versions of the Q2 2023 MD&A and the Q2 2023 Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

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

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

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business model, objectives and strategies, including its ambition to reach $2 billion of Adjusted EBITDA by 2025 without further acquisitions, reduce leverage and improve shareholder returns and Parkland’s expectation of delivering at the higher end of its 2023 Adjusted EBITDA guidance.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; the competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. In addition, the key material assumptions underlying the 2023 Adjusted EBITDA Guidance Range include: an increase in the retail fuel and petroleum product volumes by approximately 10% as compared to the year ended December 31, 2022, reflecting the full year contribution of 2022 acquisitions, integration and synergy capture, and organic growth initiatives; Food, convenience and other gross margin of approximately 30% of total retail gross margin and approximately 20% of total commercial gross margin; Refining adjusted gross margin of approximately $40 per barrel and average Burnaby Refinery utilization of between 75% and 85% based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; and an approximate $100 million Adjusted EBITDA impact as a result of 2023 refinery turnaround and maintenance capital expenditure of approximately $100 million relating thereto. The key material assumptions underlying the 2025 Adjusted EBITDA Ambition include an estimated $150 million of synergies and cost efficiencies and $180 million of organic growth compared to 2022 actuals. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q2 2023 MD&A, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

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

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

Adjusted earnings (loss) excludes costs that are not considered representative of Parkland’s underlying core operating performance including: (i) costs related to potential and completed acquisitions, (ii) non-core acquisition and integration employee costs, (iii) business integration and restructuring costs, (iv) changes in the fair value of share-based compensation liabilities, (v) unrealized gains and losses on (a) foreign exchange, (b) risk management assets and liabilities unless they relate to underlying physical sales activity in the current period and (c) derivatives, (vi) adjustments to foreign exchange gains and losses as a result of cash pooling arrangements and refinancing activities, (vii) realized foreign exchange gains and losses on accrued financing costs in foreign currency and the offsetting realized risk management gains and losses on the related foreign exchange risk management instruments, (viii) changes in values of the Sol Put Option, Redemption Options, environmental liabilities and asset retirement obligations, (ix) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, (x) impairments of non-current assets, (xi) loss on modification of long-term debt, (xii) earnings impact from hyperinflation accounting, (xiii) certain realized gains and losses on risk management assets and liabilities that are related to underlying physical sales activity in another period, (xiv) gains and losses on asset disposals, (xv) adjustment for the effect of market-based performance conditions for equity settled share-based award settlements, and (xvi) other adjusting items. Parkland’s Adjusted earnings (loss) and Adjusted earnings (loss) per share are also adjusted to include Parkland’s proportionate share of its joint-venture investees’ Adjusted earnings (loss). Concurrently with Parkland entering into the Share Exchange Agreement, effective August 4, 2022, Parkland does not allocate a portion of Adjusted earnings (loss) to NCI and includes 100 percent of International results as Adjusted earnings (loss).

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

Three months ended June 30,

($ millions, unless otherwise stated)

2023

2022

Net earnings (loss) attributable to Parkland

78

81

Add: Net earnings (loss) attributable to NCI

10

Net earnings (loss)

78

91

Add:

Acquisition, integration and other costs

39

18

Loss on modification of long-term debt

2

(Gain) loss on foreign exchange – unrealized

27

(6)

(Gain) loss on risk management and other – unrealized

(11)

20

Other (gains) and losses

14

60

Other adjusting items(1)

1

4

Tax normalization(2)

(18)

(12)

Adjusted earnings (loss) including NCI

130

177

Less: Adjusted earnings (loss) attributable to NCI

11

Adjusted earnings (loss)

130

166

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

176

156

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

178

157

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

Basic

0.74

1.07

Diluted

0.73

1.06

(1)

Other adjusting Items for the three months ended June 30, 2023 include: (i) the share of depreciation and income taxes for Isla joint venture of $3 million (2022 – $3 million); (ii) other income of $2 million (2022 – $1 million expense); (iii) customer finance income of $1 million (2022 – nil); (iv) realized risk management gain related to underlying physical sales activity in another period of $4 million (2022 – nil); and (v) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $1 million (2022 – $2 million).

(2)

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

(3)

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

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

Three months ended June 30,

($ millions)

2023

2022

%(1)

Food and Company C-Store revenue

79

102

Add:

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

316

256

Less:

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

(64)

(52)

Same Store revenue adjustments(4) (excluding cigarettes)

(34)

(16)

Food and Company C-Store same-store sales

297

290

2.5 %

Less:

Same Store revenue adjustments(4) (cigarettes)

(104)

(103)

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

193

187

3.1 %

Three months ended June 30,

($ millions)

2022

2021

%(1)

Food and Company C-Store revenue

102

103

Add:

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

256

155

Less:

Rental income from retailers and others(3)

(36)

(28)

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

(124)

(14)

Food and Company C-Store same-store sales

198

216

(8.2) %

Less:

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

(96)

(113)

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

102

103

(0.6) %

(1)

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

(2)

POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland’s consolidated financial statements as Parkland earns rental income from retailers in the form of a percentage rent on convenience store sales. POS values are calculated based on the information obtained from Parkland’s POS systems at retail sites, including transactional data, such as sales, costs and volumes which are subject to internal controls over financial reporting. We also use this data to calculate rental income from retailers in the form of a percentage rent on convenience store sales, which is recorded as revenue in our consolidated financial statements.

(3)

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

(4)

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

(5)

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

The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including cash generated from (used in) operating activities per share, and liquidity available to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the Q2 2023 Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 16 of the Q2 2023 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months ended June 30, 2023 and June 30, 2022.

Three months ended June 30,

($ millions)

2023

2022

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

470

450

Add: Attributable to NCI

28

Adjusted EBITDA including NCI

470

478

Less/(add):

Acquisition, integration and other costs

39

18

Depreciation and amortization

206

174

Finance costs

98

80

(Gain) loss on foreign exchange – unrealized

27

(6)

(Gain) loss on risk management and other – unrealized

(11)

20

Other (gains) and losses(1)

14

60

Other adjusting items(2)

1

4

Income tax expense (recovery)

18

37

Net earnings (loss)

78

91

Net earnings (loss) attributable to Parkland

78

81

Net earnings (loss) attributable to NCI

10

(1)

Other (gains) and losses for the three months ended June 30, 2023 include the following: (i) $5 million non-cash valuation loss (2022 – $16 million loss) due to the change in fair value of redemption options; and (ii) $9 million loss (2022 – $44 million loss) in Other items, including (a) nil non-cash valuation gain (2022 – $44 million loss) due to the change in redemption value of Sol Put Option and (b) $1 million loss (2022 – nil) in write-off of certain assets related to renewable diesel complex. Refer to Note 12 of the Interim Condensed Consolidated Financial Statements.

(2)

Other adjusting Items for the three months ended June 30, 2023 mainly include: (i) the share of depreciation and income taxes for Isla joint venture of $3 million (2022 – $3 million); (ii) other income of $2 million (2022 – $1 million expense); (iii) customer finance income of $1 million (2022 – nil); (iv) realized risk management gain related to underlying physical sales activity in another period of $4 million (2022 – nil); and (v) realized gain on foreign exchange related to cash pooling arrangements of $1 million (2022 – $2 million loss).

Parkland uses Adjusted gross margin as a measure of segment profit (loss) to analyze the performance of sale and purchase transactions and performance on margin. Adjusted gross margin excludes the effects of significant items of income and expenditure that are not considered representative of Parkland’s underlying core margin performance and may have an impact on the quality of margins, such as (i) unrealized gains and losses on (a) foreign exchange, (b) risk management and other unless underlying physical sales activity has occurred, (ii) loss on inventory write-downs for which there are offsetting associated risk management and other with unrealized gains, (iii) certain realized gains and losses on risk management assets and liabilities that are related to underlying physical sales activity in another period, and (iv) other adjusting items. Refer to the table below for a detailed calculation of Adjusted gross margin for the three months ended June 30, 2023 and June 30, 2022

Three months ended June 30,

($ millions)

2023

2022

Sales and operating revenue

7,819

9,715

Cost of purchases

(6,873)

(8,561)

Gain (loss) on risk management and other – realized

20

(197)

Gain (loss) on foreign exchange – realized

2

(10)

Other adjusting items to Adjusted gross margin (1)

(5)

2

Adjusted gross margin

963

949

Fuel and petroleum product adjusted gross margin

775

785

Convenience and other non-fuel adjusted gross margin

188

164

Adjusted gross margin

963

949

(1)

Other adjusting items to Adjusted gross margin for the three months ended June 30, 2023 include (i) realized risk management gain related to underlying physical sales activity in another period of $4 million (2022 – nil); and (ii) realized gain on foreign exchange related to cash pooling arrangements of $1 million (2022 – $2 million loss).

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Parkland Announces Date of 2023 Second Quarter Results

CALGARY, AB, July 21, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI) expects to announce its 2023 second quarter results after markets close on Thursday, August 3, 2023. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Friday, August 4, 2023, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/XDpG4K6kMy5

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 77390959). International participants may call 1-800-389-0704 (toll free) (Conference ID: 77390959).

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

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

About Parkland Corporation

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

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

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

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Parkland Reports 2023 First Quarter Results

First quarter Adjusted EBITDA of $395 million
Safely completed scheduled turnaround at Burnaby Refinery on time and on budget

CALGARY, AB, May 3, 2023 /PRNewswire/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three months ended March 31, 2023.

Q1 2023 Highlights

  • Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”1) of $395 million, consistent with the first quarter of 2022 with contributions from acquisitions and organic growth offsetting the impact of the scheduled turnaround completed at the Burnaby Refinery in the first quarter of 2023 (the “2023 Turnaround”).
  • Net earnings attributable to Parkland (”net earnings”) of $77 million ($0.44 per share, basic) up 40 percent from the first quarter of 2022, and Adjusted earnings attributable to Parkland (”Adjusted earnings”2) of $114 million ($0.65 per share, basic) down 16 percent from the first quarter of 2022.
  • Cash generated from operating activities of $314 million ($1.79 per share, basic3) up $362 million from the first quarter of 2022.
  • Leverage ratio4 of 3.3x (3.4x in Q4 2022) and liquidity available3 of $1.5 billion.
  • Continued to expand our ON the RUN convenience brand to approximately 670 locations and grew our JOURNIETM rewards loyalty program to 4.5 million members.
  • Subsequent to the quarter, announced a partnership between JOURNIETM rewards loyalty program and Aeroplan and opened the first ON the RUN standalone retail location in British Columbia.

“The Company’s disciplined focus on delivering shareholder value continues to guide us and we are on track for a successful year. Our performance this quarter demonstrates our ability to execute on our strategy, capture synergies and deliver organic growth throughout our retail and commercial businesses,” said Bob Espey, President and Chief Executive Officer. “I am confident Parkland will deliver its $2 billion Adjusted EBITDA ambition by 2025 without additional acquisitions, while reducing leverage and improving shareholder returns.”

Q1 2023 Segment Highlights

  • Canada delivered Adjusted EBITDA of $167 million, down 13 percent from Q1 2022 ($191 million). Unseasonably warm weather lowered commercial volumes, partially offset by 2022 acquisitions and organic growth. Fuel margins declined year-over-year due to favourable retail market conditions in Q1 2022. Food and Company C-Store Same Store Sales Growth (”SSSG”) (excluding cigarettes)2 was 6.8 percent (1.7 percent in Q1 2022).
  • International delivered Adjusted EBITDA of $183 million, up 123 percent, from Q1 2022 ($82 million). Performance was largely driven by the consolidation of the remaining 25% of Sol and additional volumes captured largely in the contracted commercial and retail business, organic growth initiatives and synergies.
  • USA delivered Adjusted EBITDA of $21 million, down 55 percent, from Q1 2022 ($47 million). Results were negatively impacted by the compliance obligations accounted for in the current period of $17 million, commodity price fluctuations in 2022 and severe winter weather across certain markets.
  • Refining delivered Adjusted EBITDA of $38 million, down 57 percent, from Q1 2022 ($89 million) reflecting the scheduled 2023 Turnaround. Composite utilization5 was 33.9 percent. These impacts were partially offset by increased sales of imported product and efficient management of pipeline capacity.

Parkland’s sustainability accomplishments are described in the Q1 2023 MD&A (as defined below). Notably, Parkland’s total recordable injury frequency rate (”TRIF”5) on a trailing-twelve-months basis was 0.97 in Q1 2023, a decrease of 18 percent compared to the Q1 2022 TRIF of 1.19.

__________________________

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

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

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

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

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

Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended March 31,

Financial Summary

2023

2022

Sales and operating revenue

8,156

7,606

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

395

387

Canada

167

191

International

183

82

USA

21

47

Refining

38

89

Corporate

(14)

(22)

Net earnings (loss) attributable to Parkland

77

55

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

0.44

0.36

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

0.43

0.35

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

1,688

592

Cash generated from (used in) operating activities

314

(48)

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

10.23

3.88

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

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

Q1 2023 Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 4, 2023 at 6:30 am MDT (8:30 am EDT) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/nog8aEnNBqP

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 79037941). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 79037941).

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

MD&A and Consolidated Financial Statements

The management’s discussion and analysis for the three months ended March 31, 2023 (the “Q1 2023 MD&A”) and consolidated financial statements for the three months ended March 31, 2023 (the “Q1 2023 Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The French versions of the Q1 2023 MD&A and the Q1 2023 Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

About Parkland Corporation

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

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

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: Parkland’s business model, objectives and strategies, including its ambition to reach $2 billion of Adjusted EBITDA by 2025 without further acquisitions, reduce leverage and improve shareholder returns.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic and the Russia-Ukraine conflict; micro and macroeconomic trends and conditions, including increases in interest rates, inflation and commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom and meeting our targets and commitments relating thereto; Parkland’s management systems and programs and risk management strategy; the competitive environment of our industry; retail pricing, margins and refining crack spreads; availability and pricing of petroleum product supply; volatility of crude oil and refined product prices; ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; environmental impact; changes in environmental and regulatory laws, including the ability to obtain or maintain required permits; and other factors, many of which are beyond the control of Parkland. Assumptions related to Parkland’s ambition to reach $2 billion of Adjusted EBITDA by 2025 include an estimated $150 million of synergies from completed acquisitions and cost efficiencies and $180 million of organic growth compared to the 2022 financial results. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s most recent Annual Information Form, and in “Forward-Looking Information” and “Risk Factors” included in the Q1 2023 MD&A, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable International Financial Reporting Standards (”IFRS”) measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage and liquidity of the business. These specified financial measures do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

Adjusted earnings (loss) and Adjusted earnings (loss) per share are a non-GAAP financial measure and a non-GAAP financial ratio, respectively, representing the underlying core operating performance of business activities of Parkland at a consolidated level.

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

Adjusted earnings (loss) excludes costs that are not considered representative of Parkland’s underlying core operating performance including: (i) costs related to potential and completed acquisitions, (ii) non-core acquisition and integration employee costs, (iii) business integration and restructuring costs, (iv) changes in the fair value of share-based compensation liabilities, (v) unrealized gains and losses on (a) foreign exchange, (b) risk management assets and liabilities unless they relate to underlying physical sales activity in current period and (c) derivatives, (vi) realized foreign exchange gains and losses as a result of cash pooling arrangements and refinancing activities, (vii) realized foreign exchange gains and losses on accrued financing costs in foreign currency and the offsetting realized risk management gains and losses on the related foreign exchange risk management instruments, (viii) changes in values of the Sol put option, redemption options under Parkland’s senior unsecured notes, environmental liabilities and asset retirement obligations, (ix) loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, (x) impairments of non-current assets, (xi) loss on modification of long-term debt, (xii) earnings impact from hyperinflation accounting, (xiii) certain realized gains and losses on risk management assets and liabilities that are related to underlying physical sales activity in another period, (xiv) gains and losses on asset disposals, (xv) adjustment for the effect of market-based performance conditions for equity settled share-based award settlements, and (xvi) other adjusting items. Parkland’s Adjusted earnings (loss) and Adjusted earnings (loss) per share are also adjusted to include Parkland’s proportionate share of its joint-venture investees’ Adjusted earnings (loss). Concurrently with Parkland entering into the Share Exchange Agreement, effective August 4, 2022, Parkland does not allocate a portion of Adjusted earnings (loss) to NCI and includes 100 percent of International results as Adjusted earnings (loss).

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

Three months ended March 31,

($ millions, unless otherwise stated)

2023

2022

Net earnings (loss) attributable to Parkland

77

55

Add: Net earnings (loss) attributable to NCI

13

Net earnings (loss)

77

68

Add:

Acquisition, integration and other costs

27

13

(Gain) loss on foreign exchange – unrealized

7

6

(Gain) loss on risk management and other – unrealized

(32)

11

Other (gains) and losses

21

72

Other adjusting items(1)

21

6

Tax normalization(2)

(7)

(26)

Adjusted earnings (loss) including NCI

114

150

Less: Adjusted earnings (loss) attributable to NCI

14

Adjusted earnings (loss)

114

136

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

175

155

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

177

156

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

Basic

0.65

0.88

Diluted

0.64

0.87

(1)

Other Adjusting Items for the three months ended March 31, 2023 include: (i) the effect of market-based performance conditions for equity-settled share-based award settlements of $13 million (2022 – nil), and (ii) the share of depreciation and income taxes for Isla joint venture of $3 million (2022 – $4 million).

(2)

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

(3)

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

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

Three months ended March 31,

($ millions)

2023

2022

%(1)

Food and Company C-Store revenue

70

100

Add:

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

278

165

Less:

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

(55)

(34)

Same Store revenue adjustments(4) (excluding cigarettes)

(80)

(21)

Food and Company C-Store same-store sales

213

210

1.6 %

Less:

Same Store revenue adjustments(4) (cigarettes)

(87)

(92)

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

126

118

6.8 %

Three months ended March 31,

($ millions)

2022

2021

%(1)

Food and Company C-Store revenue

100

92

Add:

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

165

129

Less:

Rental income from retailers and others(3)

(25)

(24)

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

(60)

(7)

Food and Company C-Store same-store sales

180

190

(5.5) %

Less:

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

(91)

(103)

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

89

87

1.7 %

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including cash generated from (used in) operating activities per share and liquidity available to evaluate the success of our strategic objectives and to set variable compensation targets for employees. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the Q1 2023 Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 16 of the Q1 2023 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months ended March 31, 2023 and March 31, 2022.

Three months ended March 31,

($ millions)

2023

2022

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

395

387

Add: Attributable to NCI

27

Adjusted EBITDA including NCI

395

414

Less:

Acquisition, integration and other costs

27

13

Depreciation and amortization

190

155

Finance costs

104

70

(Gain) loss on foreign exchange – unrealized

7

6

(Gain) loss on risk management and other – unrealized

(32)

11

Other (gains) and losses(1)

21

72

Other adjusting items(2)

21

6

Income tax expense (recovery)

(20)

13

Net earnings (loss)

77

68

Net earnings (loss) attributable to Parkland

77

55

Net earnings (loss) attributable to NCI

13

(1)

Other (gains) and losses for the three months ended March 31, 2023 include the following: (i) nil non-cash valuation gain (2022 – $4 million loss) due to the change in redemption value of Sol Put Option; (ii) $9 million non-cash valuation gain (2022 – $86 million loss) due to the change in fair value of redemption options; and (iii) $30 million loss (2022 – $18 million gain) in Other items including $23 million (2022 – nil) in write-off of certain assets related to renewable diesel complex. Refer to Note 12 of the Interim Condensed Consolidated Financial Statements.

(2)

Other Adjusting Items for the three months ended March 31, 2023 mainly include: (i) the effect of market-based performance conditions for equity-settled share-based award settlements of $13 million (2022 – nil), and (ii) the share of depreciation and income taxes for Isla joint venture of $3 million (2022 – $4 million).

Parkland uses Adjusted gross margin as a measure of segment profit (loss) to analyze the performance of sale and purchase transactions and performance on margin. Adjusted gross margin excludes the effects of significant items of income and expenditure that are not considered representative of Parkland’s underlying core margin performance and may have an impact on the quality of margins, such as (i) unrealized gains and losses on (a) foreign exchange, (b) risk management and other unless underlying physical sales activity has occurred, (ii) loss on inventory write-downs for which there are offsetting associated risk management and other with unrealized gains, (iii) certain realized gains and losses on risk management assets and liabilities that are related to underlying physical sales activity in another period, and (iv) other adjusting items. Refer to the table below for the reconciliation of Adjusted gross margn.

Three months ended March 31,

($ millions)

2023

2022

Sales and operating revenue

8,156

7,606

Cost of purchases

(7,265)

(6,563)

Gain (loss) on risk management and other – realized

39

(183)

Gain (loss) on foreign exchange – realized

6

8

Other adjusting items to Adjusted gross margin

2

Adjusted gross margin

938

868

Fuel and petroleum product adjusted gross margin

766

734

Convenience and other non-fuel adjusted gross margin

172

134

Adjusted gross margin

938

868

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Parkland Announces Date of 2023 First Quarter Results and Annual and Special Meeting of Shareholders

CALGARY, AB, April 21, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) expects to announce its 2023 first quarter results after markets close on Wednesday, May 3, 2023. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Thursday, May 4, 2023, to discuss the results.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/nog8aEnNBqP

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID:79037941). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 79037941).

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

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

Annual and Special Meeting of Shareholders

Parkland will host its 2023 Annual and Special  Meeting of Shareholders in a virtual-only format. The virtual-only meeting will be conducted via live audio webcast online on Thursday, May 4, 2023, at 9:00 a.m. MDT (11:00 a.m. EDT).

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

About Parkland Corporation

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

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

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

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

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

Addresses letter received today from activist Engine Capital

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

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

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

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

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

Addresses Letter Received from Engine Capital

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

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

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

About Parkland

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

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

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

Advisors

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

Forward-Looking Statement

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

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

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Parkland Reports Record 2022 Fourth Quarter and Year-End Results

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

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

Annualized dividend increasing to $1.36 per share

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

Q4 2022 Highlights

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

2022 Highlights

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

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

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

Q4 2022 Segment Highlights

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

Renewable Diesel Complex Update

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

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

Enhancing Shareholder Distributions

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

Sustainability

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

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

_____________________________

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

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

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

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

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


Consolidated Financial Overview

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

Financial Summary

2022

2021(1)

2022

2021

Fuel and petroleum product volume (million litres)

6,637

6,397

27,036

23,900

Sales and operating revenue

8,719

6,286

35,462

21,468

Adjusted EBITDA(2)

455

260

1,620

1,260

Canada(1)(2)(4)

197

153

702

562

International

110

78

383

294

USA(1)

46

40

126

132

Refining(1)(2)(4)

128

16

516

362

Corporate(1)

(26)

(27)

(107)

(90)

Net earnings attributable to Parkland

69

22

310

97

Net earnings per share – basic ($ per share)

0.39

0.15

1.94

0.64

Net earnings per share – diluted ($ per share)

0.39

0.15

1.92

0.64

Adjusted earnings(3)

117

55

468

372

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

0.67

0.36

2.93

2.46

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

0.67

0.36

2.91

2.45

TTM Distributable cash flow(3)

818

660

818

660

TTM Distributable cash flow per share(3)

5.11

4.34

5.11

4.34

Cash generated from operating activities

629

118

1,326

904

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

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

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

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


Q4 2022 Conference Call and Webcast Details

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

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

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

MD&A and Annual Consolidated Financial Statements

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

About Parkland Corporation

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

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

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

Forward-Looking Statements

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

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

Non-Financial Measures

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

Specified Financial Measures

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

Non-GAAP Financial Measures and Ratios

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

Three months ended December 31,

Year ended December 31,

($ millions, unless otherwise stated)

2022

2021

2022

2021

Net earnings (loss) attributable to Parkland

69

22

310

97

Add: Net earnings (loss) attributable to NCI

5

36

29

Net earnings (loss)

69

27

346

126

Add:

Acquisition, integration and other costs

41

24

117

52

Loss on modification of long-term debt

18

2

77

(Gain) loss on foreign exchange – unrealized

8

6

(8)

(7)

(Gain) loss on risk management and other – unrealized

9

(11)

39

10

Other (gains) and losses(1)

(21)

15

23

190

Other adjusting items(2)

21

4

26

12

Tax normalization(3)

(10)

(13)

(46)

(42)

Adjusted earnings (loss) including NCI

117

70

499

418

Less: Adjusted earnings (loss) attributable to NCI

15

31

46

Adjusted earnings (loss)

117

55

468

372

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

173

153

160

151

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

174

153

161

152

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

Basic

0.67

0.36

2.93

2.46

Diluted

0.67

0.36

2.91

2.45

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

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

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

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

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

Three months ended

Trailing
twelve
months
ended

December
31, 2022

($ millions, unless otherwise noted)

March 31,
2022

June 30,
2022

September
30, 2022

December
31, 2022

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

(48)

343

402

629

1,326

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(26)

(27)

(11)

(64)

(74)

316

391

629

1,262

Reverse: Change in other liabilities and other assets

(2)

(1)

23

(23)

(3)

Reverse: Net change in non-cash working capital

436

36

(112)

(221)

139

Include: Maintenance capital expenditures attributable to Parkland

(29)

(44)

(62)

(118)

(253)

Exclude: Turnaround maintenance capital expenditures

4

3

7

Include: Proceeds on asset disposals

1

2

1

4

8

Reverse: Acquisition, integration and other costs

13

18

45

41

117

Include: Interest on leases and long-term debt

(64)

(71)

(74)

(86)

(295)

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

1

1

2

Include: Payments on principal amount on leases

(37)

(38)

(50)

(52)

(177)

Exclude: Payments on principal amount on leases attributable to NCI

5

4

2

11

Distributable cash flow

250

223

168

177

818

Weighted average number of common shares (million shares)

160

Distributable cash flow per share

5.11

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

Three months ended

Trailing
twelve

months
ended

December
31, 2021

($ millions, unless otherwise noted)

March 31,
2021

June 30,
2021

September
30, 2021

December
31, 2021

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

264

322

200

118

904

Exclude: Adjusted EBITDA attributable to NCI, net of tax

(23)

(21)

(26)

(22)

(92)

241

301

174

96

812

Reverse: Change in other liabilities and other assets

(14)

(9)

4

8

(11)

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

53

22

119

148

342

Include: Maintenance capital expenditures attributable to Parkland

(20)

(45)

(40)

(112)

(217)

Exclude: Turnaround maintenance capital expenditures

3

8

11

Include: Proceeds on asset disposals

5

1

4

4

14

Reverse: Acquisition, integration and other costs

5

11

12

24

52

Include: Interest on leases and long-term debt

(54)

(54)

(56)

(59)

(223)

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

1

1

1

1

4

Include: Payments on principal amount on leases

(35)

(33)

(36)

(38)

(142)

Exclude: Payments on principal amount on leases attributable to NCI

4

4

5

5

18

Distributable cash flow(4)

186

199

190

85

660

Weighted average number of common shares (million shares)

152

Distributable cash flow per share

4.34

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

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

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

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

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2022

2021

%(1)

2022

2021

%(1)

Food and Company C-Store revenue

88

93

359

390

Add:

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

306

141

1,029

590

Less:

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

(43)

(26)

(144)

(105)

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

(164)

(15)

(460)

(44)

Food and Company C-Store same-store sales

187

193

(3.5) %

784

831

(5.7) %

Less:

Same Store revenue adjustments(4) (cigarettes)

(87)

(99)

(375)

(434)

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

100

94

6.0 %

409

397

3.1 %

Three months ended December 31,

Twelve months ended December 31,

($ millions)

2021

2020

%(1)

2021

2020

%(1)

Food and Company C-Store revenue

93

95

390

406

Add:

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

141

143

590

582

Less:

Rental income from retailers and others(3)

(26)

(23)

(105)

(99)

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

(9)

(9)

(30)

(28)

Food and Company C-Store same-store sales

199

206

(3.2) %

845

861

(1.8) %

Less:

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

(102)

(114)

(441)

(479)

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

97

92

4.7 %

404

382

5.8 %

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

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

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

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

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


Supplementary Financial Measures

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

Capital Management Measures

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

Total of Segments Measures

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

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(4)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(5)

For the three months ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

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

129

142

3,412

3,307

3,541

3,449

1,054

731

1,054

731

129

142

4,466

4,038

1,762

1,541

1,129

1,394

(849)

(718)

6,637

6,397

Sales and operating revenue

179

146

4,364

3,297

4,543

3,443

122

70

1,145

660

1,267

730

301

216

5,509

3,957

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,961

6,489

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Sales and operating revenue – after eliminations

4,364

3,297

1,204

673

2,324

1,541

1,872

1,413

1

(1,046)

(638)

8,719

6,286

Cost of purchases

173

138

3,938

2,979

4,111

3,117

121

47

933

588

1,054

635

294

185

4,871

3,567

2,129

1,367

1,675

1,279

(1,045)

(638)

7,924

5,760

Sub-segment eliminations(2)

(179)

(146)

(63)

(57)

(242)

(203)

Cost of purchases – after eliminations

3,932

2,971

991

578

2,129

1,367

1,675

1,279

(1,045)

(638)

7,682

5,557

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

6

8

323

266

329

274

1

23

209

66

210

89

7

31

532

332

162

151

148

87

849

601

Gain (loss) on risk management and other – realized

2

2

(2)

(1)

1

1

(21)

(6)

(20)

(6)

3

2

(23)

(7)

(8)

(17)

(28)

(6)

(56)

(28)

Gain (loss) on foreign exchange – realized

4

1

4

1

4

1

(6)

1

1

(1)

2

Other adjusting items to adjusted gross margin(3)

(2)

(2)

4

4

2

4

(3)

10

(1)

15

(3)

Fuel and petroleum product adjusted gross margin

8

10

319

265

327

275

2

23

196

61

198

84

10

33

515

326

152

132

130

81

807

572

Food, convenience and other adjusted gross margin

103

52

103

52

3

6

3

6

106

58

33

23

49

47

1

(1)

188

128

Total adjusted gross margin

8

10

422

317

430

327

2

23

199

67

201

90

10

33

621

384

185

155

179

128

1

(1)

995

700

Operating costs

1

1

169

133

170

134

2

67

70

69

70

3

1

236

203

57

40

112

64

(1)

407

308

Marketing, general and administrative

2

62

40

64

40

1

3

4

4

4

3

65

44

28

24

20

24

29

27

(1)

144

119

Share in (earnings) loss of associates and joint ventures

(5)

(5)

(5)

(5)

Other adjusting items to Adjusted EBITDA

(1)

(1)

(1)

(5)

(7)

1

(1)

(6)

(7)

Adjusted EBITDA (loss) including NCI

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

103

46

40

(26)

(27)

455

285

Attributable to NCI

25

25

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

5

9

192

144

197

153

(1)

23

129

(7)

128

16

4

32

321

137

110

78

46

40

(26)

(27)

455

260

Add: Adjusted EBITDA attributable to NCI

25

Less:

Acquisition, integration and other costs

41

24

Depreciation and amortization

212

156

Finance costs

94

86

(Gain) loss on foreign exchange – unrealized

8

6

(Gain) loss on risk management and other – unrealized

9

(11)

Other (gains) and losses

(21)

15

Other adjusting items

21

4

Income tax expense (recovery)

22

(22)

Net earnings (loss)

69

27

Less: Net earnings (loss) attributable to NCI

5

Net earnings (loss) attributable to Parkland

69

22

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

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

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

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

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

Reporting segments

Canada

Refining

International

USA

Corporate

Intersegment Eliminations(5)

Consolidated

Sub-segments

Renewable

Conventional

Total

Renewable

Conventional

Total

Total Renewable

Sub-segment

Total Conventional

Sub-segment(6)

For the year ended December 31,

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

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

586

528

12,928

12,485

13,514

13,013

4,065

3,343

4,065

3,343

586

528

16,993

15,828

6,567

5,296

6,147

5,151

(3,257)

(2,903)

27,036

23,900

Sales and operating revenue

871

568

17,252

11,515

18,123

12,083

418

303

4,700

2,680

5,118

2,983

1,289

871

21,952

14,195

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

36,561

22,275

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Sales and operating revenue – after eliminations

17,252

11,515

4,890

2,744

8,708

4,870

8,760

4,811

1

(4,149)

(2,472)

35,462

21,468

Cost of purchases

841

542

15,746

10,328

16,587

10,870

373

219

3,810

2,134

4,183

2,353

1,214

761

19,556

12,462

7,867

4,201

8,051

4,367

(4,148)

(2,472)

32,540

19,319

Sub-segment eliminations(2)

(871)

(568)

(228)

(239)

(1,099)

(807)

Cost of purchases – after eliminations

15,716

10,302

3,955

2,114

7,867

4,201

8,051

4,367

(4,148)

(2,472)

31,441

18,512

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

30

26

1,179

983

1,209

1,009

45

84

880

537

925

621

75

110

2,059

1,520

735

583

489

275

3,358

2,488

Gain (loss) on risk management and other – realized

7

10

3

(8)

10

2

(123)

(22)

(123)

(22)

7

10

(120)

(30)

(138)

(73)

(85)

(21)

(336)

(114)

Gain (loss) on foreign exchange – realized

1

(1)

1

(1)

(12)

2

(12)

2

1

(12)

1

(7)

(1)

2

3

(16)

3

Other adjusting items to adjusted gross margin(3)

4

4

4

1

(3)

2

1

7

(2)

Fuel and petroleum product adjusted gross margin

38

36

1,182

974

1,220

1,010

45

84

749

517

794

601

83

120

1,931

1,491

591

506

404

254

4

4

3,013

2,375

Food, convenience and other adjusted gross margin

327

204

327

204

10

9

10

9

337

213

106

86

220

169

1

(1)

663

468

Total adjusted gross margin

38

36

1,509

1,178

1,547

1,214

45

84

759

526

804

610

83

120

2,268

1,704

697

592

624

423

5

4

(1)

3,676

2,843

Operating costs

6

4

620

503

626

507

9

6

262

227

271

233

15

10

882

730

186

146

393

223

1,476

1,109

Marketing, general and administrative

4

1

217

145

221

146

1

16

15

17

15

5

1

233

160

98

83

105

68

113

94

(1)

553

406

Share in (earnings) loss of associates and joint ventures

(21)

(16)

(21)

(16)

Other adjusting items to Adjusted EBITDA(4)

(2)

(1)

(2)

(1)

(2)

(1)

(16)

(13)

(1)

(19)

(14)

Adjusted EBITDA including NCI

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

450

392

126

132

(107)

(90)

1,687

1,358

Attributable to NCI

67

98

67

98

Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)

28

31

674

531

702

562

35

78

481

284

516

362

63

109

1,155

815

383

294

126

132

(107)

(90)

1,620

1,260

Add: Adjusted EBITDA attributable to NCI

67

98

Less:

Acquisition, integration and other costs

117

52

Depreciation and amortization

743

616

Finance costs

331

323

(Gain) loss on foreign exchange – unrealized

(8)

(7)

(Gain) loss on risk management and other – unrealized

39

10

Other (gains) and losses

23

190

Other adjusting items

26

12

Income tax expense (recovery)

70

36

Net earnings (loss)

346

126

Less: Net earnings (loss) attributable to NCI

36

29

Net earnings (loss) attributable to Parkland

310

97

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

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

(3) Other