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

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

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

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

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

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

2021 Investor Day – Registration is open

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

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

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

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

About Parkland

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

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

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

CARIB PR WIRE, CALGARY, Alberta, Aug. 06, 2020: Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced today its financial and operating results for the three and six months ended June 30, 2020. Highlights from the second quarter (three months) include:

• Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $191 million.
• Net earnings attributable to Parkland of $32 million or $0.22 per share, basic.
• Cash flow from operations fully funded capital expenditures, acquisitions and net dividend payments.
• Fuel and petroleum product volume decreased by 14 percent relative to 2019 due to the impact of COVID-19.
• Operating and marketing, general and administrative (”MG&A”) costs decreased by a combined $80 million relative to 2019. The cost reductions and strong per unit fuel margins helped offset the impact of volume declines.
• Refinery utilization was 64 percent for the quarter, reflecting the impact of the Burnaby refinery turnaround (the “Turnaround”). Post the Turnaround, utilization was between 75 – 80 percent to account for lower product demand.
• Closed $400 million offering of Senior Notes due 2028 and subsequently redeemed $400 million of Senior Notes maturing in 2021 and 2022.
• Improved liquidity of $1.6 billion and Total Funded Debt to Credit Facility EBITDA ratio of 2.7 times as of June 30, 2020.
• Modest increase to expected 2020 capital expenditures of $50 million, to an expected total of $325 million +/- 5%.
• Proudly supported our Canadian, US and International communities through the COVID-19 pandemic by donating over $4 million of fuel and premium food items.

“I would like to thank the Parkland team for safely serving our customers and delivering strong financial and operating performance, in what was the most challenging macro environment we have ever seen,” said Bob Espey, President and Chief Executive Officer. “We delivered solid margins, won new business and successfully managed our cash flow by reducing costs and controlling capital expenditures. Our financial and operating performance through the second quarter demonstrates the flexibility and resilience of our diversified business model. While we remain nimble in light of ongoing COVID-19 uncertainty, we are confident in our ability to advance our growth agenda.”

Q2 2020 Segment Highlights

Canada

Strong per unit fuel margins and convenience store traffic drove an over 30 percent increase in Adjusted EBITDA relative to 2019. We advanced key organic growth initiatives such as real-time pricing and enhanced digital analytics and continued to win new commercial business. We delivered our 18^th consecutive quarter of Company C-Store same-store sales growth (”SSSG’), completed the roll out of our JOURNIE™ Rewards program and advanced our National Fueling Network (”NFN”) to prepare for a second half 2020 launch. Second quarter highlights include:

• Adjusted EBITDA of $93 million, an increase of $22 million relative to 2019. The increase was primarily driven by strong per unit fuel margins, higher convenience store baskets and lower operating and MG&A costs.
• Fuel and petroleum product volume of 1.8 billion litres, a decrease of 24 percent relative to 2019 due to the impact of COVID-19. Retail fuel volume declined 28 percent while commercial and other volume declined 16 percent.
• Company volume SSSG of negative 29.3 percent, reflecting the volume decline due to COVID-19.
• Company C-Store SSSG of 12.1 percent, our 18th consecutive quarter of positive C-Store SSSG. The convenience store channel has been an attractive consumer option through COVID-19 and performed well despite the significant decline in forecourt traffic. The sales increase was driven by strong tobacco, alcohol, household essential, grocery and take-home format performance offset by lower car wash, fresh food and dispensed beverage offerings. Excluding the impact of cigarettes, Company C-Store SSSG was 7.3 percent.
• Operating Costs decreased $25 million and MG&A costs decreased $11 million relative to 2019, reflecting the natural variability in our cost structure, proactive cost control measures and a benefit from relief provided under the Canada Emergency Wage Subsidy (”CEWS”) program.
• Completed the roll out of JOURNIE™ Rewards at over 900 sites under the Chevron, Pioneer and Ultramar brands in Canada. Initial results are encouraging, with increased convenience and fuel baskets and early momentum with CIBC linked customers. We plan to begin joint marketing efforts with CIBC later this year as market conditions warrant. For more information on JOURNIE™, to save money on your fuel purchases and earn in-store rewards, please visit www.journie.ca.
• Our Canadian Commercial team secured a series of new organic business wins, including multi-million litre cardlock customers.

International

The International segment delivered a strong quarter despite an extensive COVID-19 impact in the Caribbean and South American regions. Our geographic and product diversity underpinned performance, with natural resource sector activity in South America and diversified economies in the Spanish Caribbean helping offset significant declines in aviation and retail. In addition, we meaningfully reduced costs and completed some of our ongoing integration work. The International team grew market share with minimal capital investment, including an exclusive commercial fuel supply agreement in Guyana and continued growth in the commercial mining sector. Our second quarter results demonstrate a robust base business excluding tourism and reinforce the long-term potential for International. Second quarter highlights include:

• Adjusted EBITDA of $54 million, a decrease of $20 million relative to 2019. The decrease was primarily driven by COVID-19 shutdowns, national curfew measures which required us to close certain retail gasoline and convenience stores, and lower aviation activity.
• Fuel and petroleum product volume of 1.2 billion litres, a decrease of 4 percent relative to 2019 due to the impact of COVID-19. Retail fuel volume declined 35 percent while commercial and other volume increased 15 percent. While Commercial and other volumes have lower per unit margins, this organic growth helped mitigate the overall decline.
• Reduced operating costs by $9 million and MG&A costs by $10 million relative to 2019, reflecting the natural variability in our cost structure, integration efforts and proactive cost control measures taken during the quarter.
• Our International team secured a five-year marine fuel contract with an international energy company in Guyana and continues to grow our presence in the power, energy, mining and construction sectors across the region.

USA

Our USA business performed well, with strong fuel margins, recent acquisitions, organic national accounts growth and proactive cost management contributing to a year over year increase in Adjusted EBITDA. We closed our previously announced acquisition of ConoMart Super Stores in mid-May, bringing seven high quality corporate retail locations and expanding our presence in Montana. Our recent acquisitions continue to perform well, and in particular, Tropic Oil delivered a record quarter through organic growth initiatives, including joint business opportunities with International and strength in the marine bunkering business in Miami. COVID-19 volume declines were offset by strong per unit retail and marine fuel margins. Second quarter highlights include:

• Adjusted EBITDA of $22 million, an increase of $9 million relative to 2019. The increase was primarily due to acquisitions, organic growth and strong retail and marine fuel margins.
• Fuel and petroleum product volume of 626 million litres, an increase of 59 percent relative to 2019 due to the impact of acquisitions and organic growth, offset by the impact of COVID-19. Retail fuel volume declined 14 percent while wholesale and commercial volume increased 73 percent.
• Operating Costs increased $15 million and MG&A costs increased $1 million relative to 2019, due to the impact of acquisitions.
• Our US team continues to win new business in a tough environment, adding national accounts customers in seven states, including several multi-million litre customers.

Supply

The Supply team delivered a safe and successful restart of the planned Turnaround in late April and reliable fuel supply to our customers with no interruptions. Our integrated logistics business performed well despite COVID-19 supply and demand impacts which lowered overall system volume. Refinery utilization and margins increased through June as the market recovered and we exited the quarter with balanced crude and finished product inventory levels. Second quarter highlights include:

• Adjusted EBITDA of $40 million, a decrease of $178 million relative to 2019 due to extended Turnaround timing driven by labour productivity challenges, some of which were COVID-19 related, reduced refinery utilization in response to lower product demand and strong refining crack spreads in the comparable 2019 period.
• Refinery utilization was 64 percent, reflecting downtime in early April and a standard production ramp up process. Utilization was between 75 – 80 percent for the remainder of the quarter and was supported by our integrated marketing channels in British Columbia.
• Invested $71 million of capital on the Turnaround during the six months ended June 30, 2020. Capital expenditures for the Turnaround were above original estimates of $60 million due to labour productivity challenges, some of which were COVID-19 related.
• Reduced operating costs by $26 million and MG&A costs by $3 million relative to 2019, reflecting the variable components of production costs, proactive cost control measures and relief provided under the CEWS program.
• We continue to pursue high-quality growth projects that extend our supply advantage, such as a fuel import terminal opportunity in the Port of Oshawa, Ontario, to provide a further cost-effective fuel supply source to our integrated marketing operations in the Greater Toronto Area.

Corporate

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

• MG&A costs of $17 million, a decrease of $12 million relative to 2019, reflecting the natural variability in our cost structure, deliberate cost control measures and relief provided under the CEWS program.
• Adjusted EBITDA expense of $18 million, which includes MG&A costs and minor foreign exchange impacts during the quarter.
• As a percentage of total adjusted gross profit, MG&A costs decreased to 3.5 percent (from 4.0 percent in 2019).
• We continue to enhance base systems and processes to capture efficiency, limit costs from re-emerging in 2021 and position ourselves to scale the business without adding complexity. Examples include teaming up with Amazon Web Services to strengthen our customer value proposition and accelerate our digital transformation and process improvements to further simplify reporting and deliver efficiencies.

Consolidated Financial Overview

^{(1)  Measure of segment profit and Non-GAAP financial measures. See Section 12 of the MD&A.
(2)  For comparative purposes, information for the three and six months ended June 30, 2019 was restated due to a change in segment presentation. Canada Retail and Canada Commercial, formerly presented separately as individual segments and Canadian distribution business, formerly presented in Supply are now included in Canada, reflecting a change in organizational structure in the first six months of 2020.
(3)  Calculated using the weighted average number of common shares.
(4)  2020 and 2019 results reflect the adoption of IFRS 16 as of January 1, 2019. 2018 comparative figures reflect the accounting standards in effect for that year and are not restated to reflect the impact of IFRS 16, as is allowed under the modified retrospective approach for IFRS 16 adoption.
(5)  Amounts presented on a trailing-twelve-month (”TTM”) basis.
(6)  Beginning in Q1 2020, Credit Facility EBITDA includes Adjusted EBITDA attributable to NCI and excludes IFRS 16 impact attributable to NCI, and Total Funded Debt includes long term debt attributable to NCI, letters of credit attributable to NCI and cash and cash equivalents attributable to NCI. The amounts presented for 2019 and 2018 have not been restated.}

Update on COVID-19 Business Impacts

While the beginning of the economic recovery from COVID-19 has not been linear, we saw a steady increase in fuel volumes through the second quarter and into July. The potential for a COVID-19 second wave and associated economic impacts are difficult to forecast, however, our business has demonstrated tremendous resilience and flexibility through the uncertainty and these characteristics position us well for the future. Operational highlights subsequent to quarter end include:

• Canada segment volumes steadily improved through the quarter and continued into July and are now trending approximately 15 percent lower relative to 2019, consisting of an approximate 15 percent decline in both retail volume and commercial and other volume. Retail volume continues to trend upwards, while the recovery in commercial and wholesale volume has slowed in-line with seasonal activity. Consolidated per unit fuel margins have moderated slightly from Q2 2020 but remain above prior year levels.
• Canadian convenience store sales have remained robust through July. Convenience store margins have improved slightly relative to Q2 2020 as higher margin categories such as car wash and fresh food and beverage offerings recover.
• Our International segment is entering a seasonal low period. Although many countries have begun to reopen their economies, certain key markets have temporarily increased their restrictions as a result of rising COVID-19 cases. Volumes are trending approximately 20 percent lower in July relative to 2019 as a result of lower wholesale and aviation volumes, consisting of an approximate 25 percent decline in the commercial lines of business and 10 percent in the retail line of business. Per unit fuel margins for the segment have modestly increased relative to Q2 2020 as a result of the shifting product mix.
• Including the impact of acquisitions, US retail gasoline volumes in July are trending in-line relative to 2019 while preliminary wholesale and commercial volume continues to trend well above 2019. Per unit fuel margins have moderated from the historical strength in Q2 2020.
• Refinery utilization has been between 80 and 85 percent through July 2020. We continue to optimize throughput rates and refinery yields to maximize margin within current market conditions.

2020 Capital Guidance

On March 30, 2020, Parkland took decisive action in response to COVID-19 and reduced its guidance for 2020 total capital expenditures to $275 million +/- 5%, a reduction of $300 million. This reduction was consistent with our priority to maintain financial flexibility and balance sheet strength. Based on stronger cash flow generation relative to our initial COVID-19 planning scenario, higher Turnaround costs and other maintenance spend, we have increased our 2020 total capital expenditure guidance (the “2020 Capital Program”) by $50 million to $325 million +/- 5%. We remain flexible with our second half program to adapt to the economic environment. Details of our amended capital program are below:

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, August 7, at 6:30am MDT (8:30am EDT) to discuss the results.

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

https://produceredition.webcasts.com/starthere.jsp?ei=1345078

Analysts and institutional investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 51995975). International participants can call 1-587-880-2171 (toll) (Conference ID: 51995975).

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

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

MD&A and Consolidated Financial Statements

The Q2 2020 MD&A and Q2 2020 Financial Statements provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2020. An English version of these documents will be available online at www.parkland.ca and SEDAR after the results are released by newswire under Parkland’s profile at www.sedar.com. The Q2 2020 French MD&A and Q2 2020 French Financial Statements will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, estimated 2020 capital expenditures, the ongoing launch of the JOURNIE™ Rewards loyalty program, expected Burnaby refinery utilization rates, the expected launch of the National Fueling Network program in the second half of 2020, potential supply import opportunities, and Parkland’s ability to advance its growth agenda. Additionally, this press release contains certain preliminary July results to illustrate the impact COVID-19 has had on our business. These numbers are preliminary, subject to finalization and quarter-end accounting procedures and do not constitute guidance.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions, including the duration and impact of the COVID-19 pandemic; Parkland’s ability to execute its business strategies; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 20, 2020, and “Forward-Looking Information” and “Risk Factors” included in the Q2 2020 MD&A dated August 6, 2020, each filed on SEDAR and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, total funded debt to credit facility EBITDA ratio, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 12 of the Q2 2020 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 12 of the Q2 2020 MD&A and Note 20 of the Q2 2020 FS for a reconciliation of these measures of segment profit. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

In addition to non-GAAP financial measures, Parkland uses a number of operational KPIs to measure the success of our strategic objectives and to set variable compensation targets for employees. These KPIs are not accounting measures, do not have comparable IFRS measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 12 of the Q2 2020 MD&A for further details.

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

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

About Parkland Corporation

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

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

CaribPR Wire, CALGARY, Alberta, May 08, 2020: Parkland Fuel Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) held its annual and special meeting of shareholders on May 7, 2020 (the “Meeting”).

The Company is pleased to announce that shareholders representing approximately 99.9% of votes cast approved a special resolution authorizing the Company to amend its articles to change its name to “Parkland Corporation” and the adoption of “Corporation Parkland” as its French name. The common shares of the Company will continue to trade on the Toronto Stock Exchange (TSX) under its existing trading symbol, PKI. The effective date of the name change will be May 15, 2020 and the Company’s common shares will commence trading on the TSX under the new name within 2-3 business days. Each existing share certificate reflecting the current name of the Company will continue to represent a valid certificate until such certificate is transferred, re-registered or otherwise exchanged.

Furthermore, all matters presented at the meeting were approved included the election of all nine of the nominees listed in its management information circular dated March 31, 2020 (the “Information Circular”). The complete results of voting for business considered at the Meeting are set out below:

Resolution 1

Election of directors of Parkland for the ensuing year.

Resolution 2

The reappointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditor of Parkland for the fiscal year ending December 31, 2020.

Resolution 3

The approval of Parkland’s restated shareholder rights plan, as set forth and described in the Information Circular.

Resolution 4

The approval of unallocated options under Parkland’s stock option plan, as set forth and described in the Information Circular.

Resolution 5

The approval of amendments to Parkland’s restricted share unit plan, as set forth and described in the Information Circular.

Resolution 6

The approval of unallocated restricted share units under Parkland’s restricted share unit plan, as set forth and described in the Information Circular.

Resolution 7

The approval of Parkland’s corporate name change from “Parkland Fuel Corporation” or “Corporation Pétroles Parkland” to “Parkland Corporation” or “Corporation Parkland”, respectively, as set forth and described in the Information Circular.

Resolution 8

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

Voting results for all matters have been posted on SEDAR.

About Parkland Fuel Corporation

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

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

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

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

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

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

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

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

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

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

About Parkland

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

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

Click Here for More Information »

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

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

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

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

Dividend Increase

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

Segment Highlights

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

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

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

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

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

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

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

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

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

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

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

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

Consolidated Financial Overview

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

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

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

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

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

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

2020 Adjusted EBITDA and Capital Program Guidance

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

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

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

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

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

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

Conference Call and Webcast Details

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

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

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

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

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

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

MD&A and Consolidated Financial Statements

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

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

About Parkland Fuel Corporation

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

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

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

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

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

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

Voting results for all matters have been posted on SEDAR.

About Parkland Fuel Corporation

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

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