CaribPR Wire

First quarter Adjusted EBITDA¹ of $327 million

Safely restarted the Burnaby Refinery and returned to normal operations

Progressing $500 million of non-core asset dispositions

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

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

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

Q1 2024 Highlights

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

Q1 2024 Segment Highlights

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

Consolidated Financial Overview

Q1 2024 Conference Call and Webcast Details

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

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 10413873). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 10413873).

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

MD&A and Interim Condensed Consolidated Financial Statements

The Management’s Discussion and Analysis for the three months ended March 31, 2024 (the “Q1 2024 MD&A”) and Interim Condensed Consolidated Financial Statements for the three months ended March 31, 2024 (the “2024 Interim Condensed Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 2024. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q1 2024 MD&A and the Q1 2024 Condensed Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.

About Parkland Corporation

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

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

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release, the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; Parkland’s 2024 Adjusted EBITDA Guidance range and goal of achieving a Leverage Ratio at the low end of our 2-3x target range by the end of 2025; Parkland’s expectation to enhance the Burnaby Refinery’s utilization and profitability for the remainder of 2024; Parkland’s expectations regarding future dividend amounts, and timing and frequency of payments; Parkland’s portfolio optimization strategy and target of completing $500 million of non-core asset dispositions, and the timing in respect thereof; and Parkland’s plans to implement ongoing operating and MG&A cost reductions.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; Parkland’s ability to pay future dividends and complete share repurchases, if any, using its NCIB program; realization of the expected impact of the maintenance and refining optimization work completed on the Burnaby Refinery’s utilization and profitability; Parkland’s ability to execute on its asset disposition target, including with respect to identifying buyers, and completing such dispositions, if any, on terms reasonable to Parkland and in a timely manner; and the assumptions and risks described under “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s most recent Annual Information Form, and under “Forward-Looking Information” and “Risk Factors” in the Q1 2024 MD&A, which are incorporated by reference herein, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin of approximately 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $45 to $46 per barrel and average Burnaby Refinery composite utilization of 75 percent to 80 percent (factoring in the unplanned outage) based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; enhancements to operations, utilization and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards (”IFRS”) and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

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

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

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

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

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

The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. In order to manage its financing requirements, Parkland may adjust capital spending or dividends paid to shareholders, or issue new shares or new debt. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS Accounting Standards. It is therefore unlikely to be comparable to similar measures presented by other companies. The detailed calculation of Leverage Ratio is as follows:

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the  three months ended March 31, 2024 and March 31, 2023.

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

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

Supplementary Financial Measures

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

Non-Financial Measures

Parkland uses a number of non-financial measures, including Company SSVG, composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q1 2024 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

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.

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

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

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

CALGARY, AB, Feb. 27, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three months and year ended December 31, 2023.

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

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

Q4 2023 Highlights

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

2023 Highlights

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

Q4 2023 Segment Highlights

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

Enhancing Shareholder Distributions

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

Refinery Update

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

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

Consolidated Financial Overview

Q4 2023 Conference Call and Webcast Details

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

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 97733547). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 97733547).

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

Annual General Meeting of Shareholders

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

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

MD&A and Annual Consolidated Financial Statements

The Management’s Discussion and Analysis for the year ended December 31, 2023 (the “Q4 2023 MD&A”) and Annual Consolidated Financial Statements for the year ended December 31, 2023 (the “2023 Annual Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the year ended December 31, 2023. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q4 2023 MD&A and the 2023 Annual Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.

About Parkland Corporation

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

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

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release, the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; Parkland’s 2024 Adjusted EBITDA Guidance; Parkland’s expectations regarding the Burnaby Refinery outage and resuming operations at the Burnaby Refinery, including the timing in respect thereof; Parkland’s plans to enhance operations and optimize supply at the Burnaby Refinery; Parkland’s expectations regarding future dividend amounts, and timing and frequency of payments, and with respect to completing additional share repurchases, if any, using its NCIB program; and Parkland’s plans to implement ongoing operating and MG&A cost reductions.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; Parkland’s ability to commence restart procedures and resume normal operations at the Burnaby Refinery successfully and within the expected timeframe; Parkland’s ability to pay future dividends and complete share repurchases; and the assumptions and risks described under “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s Annual Information Form for the year ended December 31, 2023, and under “Forward-Looking Information” and “Risk Factors” in the Q4 2023 MD&A, which are incorporated by reference herein, each as filed on SEDAR+ and available on the Parkland website at http://www.parkland.ca. In addition, the 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin of approximately 5 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate MG&A cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $41 to $43 per barrel and average Burnaby Refinery composite utilization of 80 percent to 85 percent based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; the impact of the unplanned outage at the Burnaby Refinery and resumption of normal operations during the first quarter of 2024; enhancements to operations and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing operating and MG&A cost reductions across the business. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards (”IFRS”) and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

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

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

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

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

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

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

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

The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Capital Management Measures

Parkland’s primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland’s overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA (each as defined in the 2023 Annual Consolidated Financial Statements) and does not have any standardized meaning prescribed under IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding capital management measures used by Parkland.

Total of Segments Measures

Adjusted EBITDA is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three months and year ended December 31, 2023 and December 31, 2022.

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

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

Supplementary Financial Measures

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

Non-Financial Measures

Parkland uses a number of non-financial measures, including composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 17 of the Q4 2023 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

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

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

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 97733547). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 97733547).

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

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

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

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

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

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.

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.

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.

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.

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.

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.

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

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

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

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

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

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

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

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

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

Visit journie.ca to sign up today.

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.

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

Adjusted EBITDA^1,2 of approximately $2.5 billion in 2028, with anticipated upside to $3 billion

Available cash flow per share^1,2 to double by 2028

Reduce Leverage Ratio^1,2 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.

“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.

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.

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.

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

CALGARY, AB, Nov. 1, 2023 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and nine months ended September 30, 2023.

Q3 2023 Highlights

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

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

Q3 2023 Segment Highlights

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

Consolidated Financial Overview