Record second quarter Adjusted EBITDA¹ of $508 million

Demonstrates strength and run rate potential of Parkland’s diversified business

Advancing the Sunoco Transaction²

CALGARY, AB, Aug. 5, 2025 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and six months ended June 30, 2025.

“I want to thank the Parkland team for safely serving our customers to deliver record second quarter results,” said Bob Espey, President and Chief Executive Officer. “Our Canadian and International businesses continue to demonstrate strength and resilience, while strong supply optimization coupled with solid operations at the Burnaby refinery enabled us to capture above mid-cycle refining margins. These results reflect the run rate potential of Parkland’s integrated platform and together with Sunoco, the combined scale is well positioned to grow cash flow for years to come.”

Q2 2025 Highlights

• Delivered Adjusted EBITDA of $508 million, as compared to $504 million in Q2 2024, primarily driven by strong operations and margins at the Burnaby Refinery and robust performance in the Canada segment. These were partially offset by lower fuel unit margins in the International segment and continued softness in the USA segment primarily due to ongoing macroeconomic pressures.
• Net earnings of $172 million ($0.99 per share, basic), as compared to $70 million ($0.40 per share, basic) in Q2 2024, and Adjusted earnings³ of $158 million ($0.91 per share, basic³), as compared to $156 million ($0.89 per share, basic) in Q2 2024.
• Trailing twelve months (”TTM”) Available cash flow³ of $551 million ($3.17 per share³), as compared to $823 million ($4.69 per share) in 2024, primarily reflecting a significantly lower refining margin environment during the second half of 2024 and realized losses due to the wind down of California compliance market positions in the first quarter of 2025. TTM Cash generated from (used in) operating activities⁴ of $1,656 million ($9.52 per share⁴), as compared to $1,612 million ($9.19 per share) in 2024, reflecting favourable working capital movements in the current period.
• Leverage Ratio⁵ decreased to 3.4 times (3.6 times in Q4 2024) and liquidity available⁴ of approximately $2.2 billion.
• Parkland’s total recordable injury frequency rate⁶ on a TTM basis was 1.15, compared to 1.21 in Q2 2024, reflecting the Parkland team’s continued focus on operational integrity.

Q2 2025 Segment Highlights

• Canada delivered Adjusted EBITDA of $190 million, as compared to $168 million in Q2 2024. The increase was primarily driven by stronger fuel unit margins from continued price and supply optimization, and volume growth in our company-owned network. We delivered company same-store volume growth (”Company SSVG”)⁶ of 4.6 percent and Food and Company C-Store same-store sales growth (”Food and Company C-Store SSSG”)³ excluding cigarettes of 4.2 percent, reflecting stronger site execution, and increased engagement though our loyalty program.
• International delivered Adjusted EBITDA of $168 million, as compared to $180 million in Q2 2024. Continued strength in the retail business was more than offset by lower unit margins driven by market instability from global conflicts resulting in price volatility, particularly in diesel.
• USA delivered Adjusted EBITDA of $26 million, as compared to $47 million in Q2 2024. The decrease was primarily driven by lower fuel unit margins due to an ongoing competitive pricing environment and reduced rail and regional arbitrage opportunities. Lower retail volumes, consumer spending, and foot traffic in convenience stores were consistent with broader industry trends.
• Refining delivered Adjusted EBITDA of $136 million, as compared to $119 million in Q2 2024. The increase was primarily driven by higher refining margins combined with strong composite utilization⁶ of 94.0 percent.

____________________________________
(1)	Total of segments measure. See “Measures of Segment Profit(Loss) and Total of Segments Measures” section of this news release.
(2)	On May 5, 2025, Parkland and Sunoco LP (NYSE: SUN) (”Sunoco”) announced that they entered into a definitive agreement whereby Sunoco will acquire all outstanding shares of Parkland in a cash and equity transaction valued at approximately U.S.$9.1 billion, including assumed debt (the “Sunoco Transaction”).
(3)	Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.
(4)	Supplementary financial measure. See “Supplementary Financial Measures” section of this news release.
(5)	Capital management measure. See “Capital Management Measures” section of this news release.
(6)	Non-financial measure. See “Non-Financial Measures” section of this news release.

Update on the Sunoco Transaction

Parkland shareholders approved the Sunoco Transaction at the June 24, 2025 Annual and Special Meeting, with more than 93 percent of votes cast in favour. Following this strong shareholder endorsement, Parkland received a final order from the Court of King’s Bench of Alberta’s approval and the parties have obtained Competition Act (Canada) clearance.

The Sunoco Transaction continues to advance through the remaining regulatory review processes and other closing conditions, including the ongoing review under the Investment Canada Act, and is expected to close in the fourth quarter of 2025.

The Company will terminate its Dividend Reinvestment Plan (”DRIP”) effective August 6, 2025. The DRIP has been suspended since November 2, 2022.

2025 Guidance

Following strong second quarter 2025 operating and financial results, Parkland remains on track to be within its previously stated 2025 Adjusted EBITDA Guidance⁴ range of $1,800 to $2,100 million and 2025 Capital Expenditure Guidance⁴ range of $475 to $525 million.

Due to expected transaction-related costs and certain restrictions associated with the Sunoco Transaction, and to simplify external guidance, Parkland will no longer provide updates with respect to its 2025 Available cash flow per share, 2025 Leverage Ratio, non-core asset divestment program from 2023 to 2025 and 2025 Adjusted EBITDA for its Refining segment.

Consolidated Financial Overview

($ millions, unless otherwise noted)	Three months ended June 30,
Financial Summary	2025	2024
Sales and operating revenue	6,874	7,504
Adjusted EBITDA(1)	508	504
Canada(2)(3)	190	168
International(2)(3)	168	180
USA(2)(3)	26	47
Refining(2)(3)	136	119
Corporate(2)(3)	(12)	(10)
Net earnings (loss)	172	70
Net earnings (loss) per share – basic ($ per share)	0.99	0.40
Net earnings (loss) per share – diluted ($ per share)	0.97	0.39
Trailing twelve months (”TTM”) Cash generated from (used in) operating activities(4)	1,656	1,612
TTM Cash generated from (used in) operating activities per share(4)	9.52	9.19
TTM Available cash flow(5)(6)	551	823
TTM Available cash flow per share(5)(6)	3.17	4.69
TTM ROIC(6)	7.7 %	9.0 %

(1)	Total of segments measure. See “Measures of Segment Profit (Loss) and Total of Segments Measures” section of this news release.
(2)	For comparative purposes, certain amounts in 2024 were revised to conform to the presentation used in the current period with respect to the allocation of Corporate costs. See Note 2d of the Interim Condensed Consolidated Financial Statements for further details
(3)	Measure of segment profit (loss). See “Measures of Segment Profit (Loss) and Total of Segments Measures” section of this news release.
(4)	Supplementary financial measure. See “Supplementary Financial Measures” section of this news release.
(5)	For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management with no changes to Adjusted EBITDA or net earnings to conform to the presentation used in the current period.
(6)	Non-GAAP financial measure or non-GAAP financial ratio. See “Non-GAAP Financial Measures and Ratios” section of this news release.

MD&A and Annual Consolidated Financial Statements

The Management’s Discussion and Analysis for the three and six months ended June 30, 2025 (the “Q2 2025 MD&A”) and Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025 (the “Q2 2025 Condensed Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2025. 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 Q2 2025 MD&A and the Q2 2025 Condensed Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.

About Parkland Corporation

Parkland is a leading international fuel distributor, marketer, and convenience retailer with safe and reliable operations in 26 countries across the Americas. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with fuel to operate, complete projects and better serve their customers. In addition to meeting our customers’ needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact, including manufacturing and blending renewable fuels, ultra-fast EV charging, a variety of solutions for carbon credits and renewables, and solar power. 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 interconnected pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers through our proprietary brands, differentiated offers, extensive network, competitive pricing, reliable service, and 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 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; run rate potential of Parkland’s integrated platform; Parkland and Sunoco well positioned to grow cash flow for years to come; the Sunoco Transaction, including progress of regulatory approvals and other closing conditions and expectation to close in the fourth quarter of 2025; expected costs relating to the Sunoco Transaction; expected to remain on track to be within its 2025 Adjusted EBITDA Guidance and 2025 Capital Expenditure Guidance ranges; and the termination of the DRIP and timing thereof.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any 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: the completion of the Sunoco Transaction, including the ability to obtain the approvals required in connection thereto, the timing thereof and realizing the benefits resulting therefrom; Parkland’s ability to successfully integrate its operations with Sunoco following the Sunoco Transaction; general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation, imposition of tariffs and fluctuating commodity prices; Parkland’s ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom, meeting our targets, outlook and commitments relating thereto, and the impact of the Sunoco Transaction thereon; ability to fall within its 2025 Adjusted EBITDA Guidance and 2025 Capital Expenditure Guidance ranges and the assumptions relating thereto; and other factors, many of which are beyond the control of Parkland and the assumptions and risks 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 Q4 2024 MD&A, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. In addition, the 2025 Adjusted EBITDA Guidance reflects continued integration of acquired businesses and synergy capture, and progression of organic growth initiatives, and key material assumptions include: market trends in line with Parkland’s current expectations; expected performance from Parkland’s retail and commercial lines of business during the 2025 financial year that is consistent with the prior year; Burnaby Refinery composite utilization of 90 to 95% based on the Burnaby Refinery’s crude processing capacity of 55,000 bpd, and completion of planned maintenance, including deferral of the previously planned turnaround to 2026; and implementation of ongoing cost reductions across the business. The 2025 Capital Expenditure Guidance is mainly driven by increased Adjusted EBITDA and assumes no material change to underlying operations and no planned turnaround at the Burnaby Refinery. The forward-looking statements contained in this news release as expressly qualified by these cautionary statements.

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 as issued by the International Accounting Standards Board (”IFRS Accounting Standards”) 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 the IFRS Accounting Standards. See Section 15 of the Q2 2025 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 items that are not reflective of the Company’s underlying business operations.

See Section 15 of the Q2 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss) and Adjusted earnings (loss) per share.

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

	Three months ended June 30,		Six months ended June 30,
($ millions, unless otherwise stated)	2025	2024	2025	2024
Net earnings (loss)	172	70	236	65
Add/(less):
Acquisition, integration and other costs	46	46	75	76
(Gain) loss on foreign exchange – unrealized	(4)	4	(9)	7
(Gain) loss on risk management and other – unrealized(4)	(51)	56	(48)	59
Costs related to the Sunoco Transaction	46	—	46	—
Other (gains) and losses	(70)	(1)	(89)	9
Other adjusting items(1)(4)	17	8	11	26
Tax normalization(2)	2	(27)	1	(43)
Adjusted earnings (loss)	158	156	223	199
Weighted average number of common shares (million shares)(3)	174	175	174	175
Weighted average number of common shares adjusted for the effects of dilution (million shares)(3)	177	177	176	178
Adjusted earnings (loss) per share ($ per share)
Basic	0.91	0.89	1.28	1.14
Diluted	0.90	0.88	1.27	1.12

(1)	Other adjusting items for the three months ended June 30, 2025 include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $12 million loss (2024 – $1 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $8 million (2024 – $3 million); (iii) other income of $1 million (2024 – $3 million); (iv)adjustment to foreign exchange gains and losses related to cash pooling arrangements of $4 million (2024 – $2 million); and (v) adjustment to realized risk management gains related to interest rate swaps, as these gains do not relate to commodity sale and purchase transactions, of nil (2024 – $1 million). Other adjusting items for the six months ended June 30, 2025 include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $1 million gain (2024 – $12 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $13 million (2024 – $7 million) (iii) other income of $3 million (2024 – $5 million); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $4 million (2024 – $4 million); and (v) adjustment to realized risk management gains related to interest rate swaps, as these gains do not relate to commodity sale and purchase transactions, of nil (2024 – $2 million gain). For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management with no changes to Adjusted EBITDA or net earnings, to conform to the presentation used in the current period.
(2)	The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign exchange gains and losses, unrealized gains and losses on risk management and other, gains and losses on asset disposals, changes in fair value of redemption options, changes in estimates of environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, impairments of non-current assets and strategic transaction costs. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.
(3)	Weighted average number of common shares is calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.
(4)	For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management with no changes to Adjusted earnings (loss) to conform to the presentation used in the current period.

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 set targets (including annual guidance and variable compensation target) and monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. See Section 15 of the Q2 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Available cash flow and Available cash flow per share. See the following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.

	Three months ended
					Trailing twelve months ended June 30, 2025
($ millions, unless otherwise noted)	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025
Cash generated from (used in) operating activities	406	462	286	502	1,656
Reverse: Change in other assets and other liabilities	(68)	80	1	(7)	6
Reverse: Net change in non-cash working capital related to operating activities(1)	21	(180)	53	(87)	(193)
Include: Maintenance capital expenditures	(71)	(96)	(62)	(70)	(299)
Include: Dividends received from investments in associates and joint ventures	3	7	5	6	21
Include: Interest on leases and long-term debt	(85)	(87)	(89)	(83)	(344)
Include: Payments of principal amount on leases	(69)	(76)	(77)	(74)	(296)
Available cash flow	137	110	117	187	551
Weighted average number of common shares (millions)(2)					174
TTM Available cash flow per share					3.17

	Three months ended
					Trailing twelve months ended June 30, 2024
($ millions, unless otherwise noted)	September 30, 2023	December 31, 2023	March 31, 2024 (1)	June 30, 2024
Cash generated from (used in) operating activities	528	417	217	450	1,612
Reverse: Change in other assets and other liabilities	7	(4)	28	3	34
Reverse: Net change in non-cash working capital related to operating activities(1)	(14)	17	55	(34)	24
Include: Maintenance capital expenditures	(52)	(93)	(59)	(53)	(257)
Include: Dividends received from investments in associates and joint ventures	4	3	2	8	17
Include: Interest on leases and long-term debt	(83)	(88)	(85)	(88)	(344)
Include: Payments on principal amount on leases	(57)	(71)	(71)	(64)	(263)
Available cash flow	333	181	87	222	823
Weighted average number of common shares (millions)(2)					175
TTM Available cash flow per share					4.69

(1)	For comparative purposes, certain amounts within the net change in non-cash working capital related to operating activities for the three months ended March 31, 2024, were revised to conform to the current period presentation.
(2)	Weighted average number of common shares is calculated in accordance with Parkland’s accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.

ROIC is a non-GAAP financial ratio. The measure is calculated as a ratio 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, defined in the “Measures of Segment Profit (Loss) and Total of Segments Measures” section of this news release, less depreciation and amortization expense, including pro-forma depreciation on assets classified as held for sale, 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, including debt liabilities classified as held for sale, as well as shareholder’s equity, including equity reserves, net of cash and cash equivalents. We use this non-GAAP measure to assess Parkland’s efficiency in investing capital.

($ millions, unless otherwise noted)	Three months ended
ROIC	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025	Trailing twelve months ended June 30, 2025
Net earnings (loss)	91	(29)	64	172	298
Add/(less):
Income tax expense (recovery)	17	(8)	8	39	56
Acquisition, integration and other costs	61	81	29	46	217
Depreciation and amortization	207	210	202	220	839
Finance cost	96	92	99	93	380
(Gain) loss on foreign exchange – unrealized	1	(2)	(5)	(4)	(10)
(Gain) loss on risk management and other – unrealized	(48)	34	3	(51)	(62)
Costs related to the Sunoco Transaction	—	—	—	46	46
Other (gains) and losses	(1)	30	(19)	(70)	(60)
Other adjusting items	7	20	(6)	17	38
Adjusted EBITDA	431	428	375	508	1,742
Less: Depreciation and amortization	(207)	(210)	(202)	(220)	(839)
Less: Pro-forma depreciation and amortization on assets classified as held for sale	—	(7)	(7)	14	—
Adjusted EBIT	224	211	166	302	903
Average effective tax rate					21.0 %
Less: Taxes					(189)
Net operating profit after tax					714
Opening invested capital					9,362
Closing invested capital					9,201
Average invested capital					9,282
Return on invested capital					7.7 %

Invested Capital	June 30,
($ millions, unless otherwise noted)	2025	2024
Long-term debt – current portion	847	213
Long-term debt	5,618	6,275
Long-term debt in liabilities classified as held for sale(1)	2	52
Shareholders’ equity	3,173	3,138
Exclude: Cash and cash equivalents	(439)	(316)
Total	9,201	9,362

($ millions, unless otherwise noted)	Three months ended
ROIC	September 30, 2023	December 31, 2023	March 31, 2024	June 30, 2024	Trailing twelve months ended June 30, 2024
Net earnings (loss)	230	86	(5)	70	381
Add/(less):
Income tax expense (recovery)	54	(15)	(29)	20	30
Acquisition, integration and other costs	38	42	30	46	156
Depreciation and amortization	205	222	206	202	835
Finance cost	93	89	91	99	372
(Gain) loss on foreign exchange – unrealized	1	—	3	4	8
(Gain) loss on risk management and other – unrealized(2)	(19)	28	3	56	68
Other (gains) and losses	(37)	5	10	(1)	(23)
Other adjusting items(2)	20	6	18	8	52
Adjusted EBITDA	585	463	327	504	1,879
Less: Depreciation and amortization	(205)	(222)	(206)	(202)	(835)
Less: Pro-forma depreciation and amortization on assets classified as held for sale	—	—	—	—	—
Adjusted EBIT	380	241	121	302	1,044
Average effective tax rate					19.9 %
Less: Taxes					(208)
Net operating profit after tax					836
Opening invested capital					9,191
Closing invested capital					9,362
Average invested capital					9,277
Return on invested capital					9.0 %

Invested Capital	June 30,
($ millions, unless otherwise noted)	2024	2023
Long-term debt – current portion	213	178
Long-term debt	6,275	6,278
Long-term debt in liabilities classified as held for sale(1)	52	—
Shareholders’ equity	3,138	3,080
Exclude: Cash and cash equivalents	(316)	(345)
Total	9,362	9,191

(1)	For comparative purposes, long-term debt in liabilities classified as held for sale were included as part of invested capital as at March 31, 2024, to conform to the current period presentation.
(2)	For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management for the three months ended March 31, 2024, with no changes to Adjusted EBITDA.

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.

Below is a reconciliation of convenience store revenue (Food and C-Store revenue) for the Canada segment with the Food and Company C-Store same store sales (”SSS”), and the calculation of the Food and Company C-Store SSSG.

	Three months ended June 30,			Six months ended June 30,
($ millions, unless otherwise noted)	2025	2024	%(1)	2025	2024	%(1)
Food and Company C-Store revenue	83	82		162	160
Add:
Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers and franchisees(2)	300	303		563	579
Less:
Rental and royalty income from retailers, franchisees and other(3)	(61)	(63)		(118)	(122)
Same Store revenue adjustments(4) (excluding cigarettes)	(5)	(4)		(17)	(14)
Food and Company C-Store same-store sales (including cigarettes)	317	318	(0.3) %	590	603	(2.1) %
Less:
Same Store revenue adjustments(4) (cigarettes)	(98)	(108)		(182)	(203)
Food and Company C-Store same-store sales (excluding cigarettes)	219	210	4.2 %	408	400	2.0 %
	Three months ended June 30,			Six months ended June 30,
($ millions, unless otherwise noted)	2024	2023	%(1)	2024	2023	%(1)
Food and Company C-Store revenue	82	79		160	149
Add:
Point-of-sale (”POS”) value of goods and services sold at Food and Company C-Store operated by retailers(2)	305	316		581	594
Less:
Rental income from retailers and other(3)	(63)	(64)		(122)	(119)
Same Store revenue adjustments(4)(5) (excluding cigarettes)	(16)	(15)		(28)	(26)
Food and Company C-Store same-store sales (including cigarettes)	308	316	(3.0) %	591	598	(1.3) %
Less:
Same Store revenue adjustments(4)(5) (cigarettes)	(105)	(112)		(200)	(213)
Food and Company C-Store same-store sales (excluding cigarettes)	203	204	(0.7) %	391	385	1.1 %

(1)	Percentages are calculated based on actual amounts and are impacted by rounding.
(2)	POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland’s consolidated financial statements as Parkland earns rental income from retailers in the form of a percentage rent on convenience store sales. POS values are calculated based on the information obtained from Parkland’s POS systems at retail sites, including transactional data, such as sales, costs and volumes, which are subject to internal controls over financial reporting. We also use this data to calculate rental income from retailers in the form of a percentage rent on convenience store sales, which is recorded as revenue in our consolidated financial statements.
(3)	Includes rental income from retailers in the form of a percentage rent on Food and Company C-Store sales, royalty, and franchisee fees and excludes revenues from automated teller machines, POS system licensing fees, and other.
(4)	This adjustment excludes the effects of acquisitions, opening and closing stores, temporary closures (including closures for On the Run / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models, to derive a comparable same-store metric.
(5)	Excludes sales from acquisitions completed within the year as these will not impact the metric until after the completion of one year of the acquisitions when the sales or volume generated establishes the baseline for these metrics.

These 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 Accounting Standards. Except as otherwise indicated, these non-GAAP financial measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 15 of the Q2 2025 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 the Leverage Ratio is as follows:

($ millions, unless otherwise noted)	June 30, 2025	December 31, 2024
Leverage Debt	4,979	5,268
Leverage EBITDA	1,468	1,481
Leverage Ratio	3.4	3.6

($ millions, unless otherwise noted)	June 30, 2025	December 31, 2024
Long-term debt	6,465	6,641
Less:
Lease obligations	(1,104)	(1,054)
Cash and cash equivalents	(439)	(385)
Non-recourse debt(1)	(55)	(30)
Risk management liability (asset)(2)	1	(30)
Add:
Non-recourse cash(1)	35	31
Letters of credit and other	76	95
Leverage Debt	4,979	5,268

(1)	Represents non-recourse debt and non-recourse cash balance related to project financing.
(2)	Represents the risk management asset/liability associated with the spot element of the cross-currency swap designated in a cash flow hedge relationship to hedge the variability of principal cash flows of the 2024 Senior Notes resulting from changes in the spot exchange rates.

	Three months ended				Trailing twelve months ended June 30, 2025
($ millions, unless otherwise noted)	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025
Adjusted EBITDA	431	428	375	508	1,742
Share incentive compensation	6	11	8	7	32
Reverse: IFRS 16 impact(1)	(84)	(91)	(93)	(90)	(358)
	353	348	290	425	1,416
Acquisition pro-forma adjustment(2)					6
Other adjustments(3)					46
Leverage EBITDA					1,468

(1)	Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management’s view of the impact of earnings.
(2)	Includes the impact of pro-forma pre-acquisition EBITDA estimates based on anticipated benefits, costs and synergies from acquisitions.
(3)	Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to the unplanned shutdown at the Burnaby Refinery, and the EBITDA attributable to EV charging operations financed through non-recourse project financing.

	Three months ended				Trailing twelve months ended December 31, 2024
($ millions, unless otherwise noted)	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024
Adjusted EBITDA	327	504	431	428	1,690
Share incentive compensation	6	8	6	11	31
Reverse: IFRS 16 impact(1)	(83)	(80)	(84)	(91)	(338)
	250	432	353	348	1,383
Acquisition pro-forma adjustment(2)					11
Other adjustments(3)					4481068-1-4_Proof.html Displaying 4481068-1-4_Proof.html.back to scg. Press tab to insert.

2025 Adjusted EBITDA guidance^1,2 of $1.95 billion +/- $150 million

To listen to the live webcast and watch the presentation, please use the following link:
https://produceredition.webcasts.com/starthere.jsp?ei=1544615&tp_key=5bc5cc6104

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: 22960035). International participants can call 1-800-389-0704 (toll-free) (Conference ID: 22960035).

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.caand www.sedar.com after the results are released.

Parkland will hold its 2022 Annual General Meeting of shareholders in a virtual-only format. The virtual-only meeting will be conducted via live audio webcast online on Thursday, May 5, 2022, at 9:00 a.m. MDT (11:00 a.m. EDT).

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

Parkland’s purpose is to Power Journeys and Energize Communities. Through our portfolio of trusted and locally relevant food, convenience, retail, commercial and wholesale brands, we serve over one million customers per day across Canada, the United States, the Caribbean region and Central and South America. In addition to leveraging our supply and storage capabilities to provide the essential fuels that our diverse customers rely on, we are a leader in renewable energy and are building an Electric Vehicle (”EV”) charging network to serve growing demand for convenient charging from EV drivers in select markets and decarbonizing through renewable fuels manufacturing, compliance and carbon offsets marketing and trading.

Parkland’s proven strategy is centered around growing organically, realizing a supply advantage, acquiring prudently, and integrating successfully. We are positioned to lead through the energy transition and are focused on developing our existing business in resilient markets, further diversifying our retail business into food, convenience, and renewable energy solutions (including EV charging), and helping our commercial customers decarbonize their operations. Our strategy is enabled and underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

]]> https://caribpr.com/parkland-announces-date-of-2022-first-quarter-results-and-virtual-annual-general-meeting/feed/ 0 https://caribpr.com/parkland-advances-growth-with-two-international-transactions/ https://caribpr.com/parkland-advances-growth-with-two-international-transactions/#comments Mon, 17 May 2021 12:37:55 +0000 caribpr https://caribpr.com/?p=14531 CaribPRWire, CALGARY, Alberta, May 17, 2021: Parkland Corporation (“Parkland”, “we”, “our”, or “the Company”) (TSX:PKI) is pleased to announce, through its 75 percent ownership in Sol Investments SEZC (“Sol”), two transactions in our International business (the “International transactions”) which provide additional scale in the Caribbean and strengthen our position as a natural acquirer in the region.

“These transactions strengthen Parkland’s network throughout the Caribbean and extend our portfolio of growth opportunities in retail, commercial, LPG and aviation,” said Pierre Magnan, President of Parkland International. “Our International business currently spans 23 countries and provides a platform for continued organic growth and consolidation in the region. We are excited about the opportunity set in the International segment which we expect to play a significant role in achieving Parkland’s 2025 growth ambition.”

Details of the International transactions are as follows:

Creating the Dominican Republic’s largest retail network

Through the contribution of our approximately 80 retail locations, commercial and aviation marketing operations in the Dominican Republic (”DR”) and a follow-on investment, Sol will become a 50 percent indirect partner in Isla Dominicana de Petroleo Corp. (”Isla”). Isla currently operates a high-quality retail network with approximately 160 locations. The combined portfolio will comprise 240 retail locations (the largest retail network in the DR) alongside an integrated commercial and aviation business. As part of the agreement, Isla will operate the joint onshore marketing operations while Parkland will become the principal fuel supplier to the combined network.

Strategic rationale includes:

• A market leading retail network in all major DR population centers with operational synergies
• Strong free cash flow conversion with regulated on-shore margins in a high-growth market
• Unlocks supply synergies through improved scale and optimized shipping logistics
• A new partnership with a shared appetite for continued growth and renewable opportunities

Becoming the leading fuel marketer in St. Maarten

We have signed an agreement for the purchase of an integrated fuel marketing business with operations in St. Maarten. The acquisition includes retail, commercial, marine, LPG distribution and an aviation business. The acquisition strengthens our activities at the Princess Juliana International Airport (a hub for surrounding islands and major North American and European markets) and adds a complementary retail network.

As a result of the acquisition, we will become the leading fuel marketer in the Dutch side of St. Maarten and are well positioned to drive operational synergies.

Together with the Puerto Rico aviation acquisition disclosed with our first quarter 2021 results, the International transactions are expected to increase our International segment’s annual run-rate Adjusted EBITDA including non-controlling interest by approximately C$20 million (C$15 million attributable to Parkland), prior to additional growth and synergy upside.

The International transactions will be funded out of existing credit facility capacity. Subject to customary closing conditions, the transactions are expected to close in the third quarter of 2021.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: the successful completion of the transactions and timings thereof; expected benefits of the transactions, collectively and independently, as applicable, including without limitation, expected increase to the International segment’s run rate Adjusted EBITDA resulting from the International transactions, strengthening Parkland’s position as a natural acquirer in the region and its network in the Caribbean, extending Parkland’s growth opportunities, the projected growth and synergy upside, organic growth and consolidation opportunities, post-closing synergy opportunities, renewable opportunities, the creation of the largest retail network in DR and the size thereof and becoming the leading fuel marketer in St. Maarten; the International segment’s expected contribution to Parkland’s 2025 growth ambition; and the anticipated funding of the transactions.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete these transactions; failure to satisfy the conditions to closing of the transactions; failure to realize all or any of the anticipated benefits of the transactions; general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 5, 2021 and in “Forward-Looking Information” and “Risk Factors” in Parkland’s annual MD&A for the year ended December 31, 2020 dated March 4, 2021 and in the interim MD&A for the three month period ended March 31, 2021 dated May 3, 2021, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Expected increase in our International segment’s annual run-rate Adjusted EBITDA is based on anticipated full-year impact of the combined Puerto Rico aviation acquisition (disclosed May 3, 2021) and the International transactions; future performance of such businesses may differ from expectations due to the numerous risks and uncertainties as noted above. Due to closing date impacts of the transactions and other factors, this does not represent the expected 2021 Adjusted EBITDA impact for the International segment.

Non-GAAP Financial Measures

Adjusted EBITDA is a measure of segment profit. See Section 9 and Section 14 of the Q1 2021 MD&A and Note 13 of the Q1 2021 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.

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.

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.

• Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $338 million.
• Net earnings attributable to Parkland of $76 million, or $0.51 per share, basic.
• Adjusted distributable cash flow of $342 million (nine months ended September 30, 2020) fully funded growth capital expenditures, acquisitions and net dividend payments.
• Fuel and petroleum product volume continued to recover from the impact of COVID-19; total company volumes were within 5 percent of Q3 2019 volumes.
• Pro-active cost reductions and strong per unit fuel margins continued to offset the impact of volume declines. Operating and marketing, general and administrative (”MG&A”) costs were $47 million lower relative to Q3 2019.
• Marketing segments (Canada, International and USA) generated a 24 percent increase in Adjusted EBITDA over Q3 2019.
• Strong refinery utilization of 90 percent, which highlights the quality of our Burnaby refinery. This utilization rate reflected robust local demand and our best-in-class ability to successfully market distillate through the challenges of COVID-19.
• Maintained liquidity of $1.6 billion and lowered our Total Funded Debt to Credit Facility EBITDA ratio to 2.6 times as of September 30, 2020.
• Published our inaugural Sustainability Report outlining our established environmental, social and governance practices and setting the stage for development of our enterprise-wide sustainability strategy.

“I would like to congratulate the Parkland team for exceptional financial and operating performance,” said Bob Espey, President and Chief Executive Officer. “We continue to prove the resilience of our business model and first-rate execution capabilities. These strengths have underpinned our success year-to-date and give us confidence in our ability to manage through challenging market environments, grow the business and add shareholder value.”

“I am especially proud of the way our team has maintained a focus on safety, managed costs, won new business, published our inaugural Sustainability Report and continued to serve our customers and support our communities over the last nine months,” added Espey. “In addition, we have maintained strict financial discipline and positioned ourselves to grow our existing business organically and through acquisitions in the current environment.”

Q3 2020 Segment Highlights

Canada: Recovering volumes, strong margins and c-store sales

Steady volume recovery, strong fuel margins and convenience store sales drove a 23 percent increase in Adjusted EBITDA relative to Q3 2019. We delivered our 19^th consecutive quarter of Company C-Store same-store sales growth (”SSSG’), surpassed one million JOURNIE™ Rewards members and continued to win new business. Third quarter highlights include:

• Adjusted EBITDA of $128 million, up $24 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 2.3 billion litres, a decrease of 7 percent relative to 2019 due to the impact of COVID-19. Retail fuel volumes were 8 percent lower than prior year while commercial and other volumes were 6 percent lower.
• Company C-Store SSSG of 10.7 percent, reflecting the attractiveness of the convenience store channel, the quality of our customer value proposition, strong execution and domestic tourism impacts. We saw particular strength in our new-to-industry and rebranded On the Run sites, with sales increases across most major categories, offset by lower car wash.
• Operating Costs decreased $10 million and MG&A costs decreased $8 million relative to 2019, reflecting proactive cost control measures and natural variability in our cost structure.
• JOURNIE™ Rewards membership continued to grow and now exceeds one million active members. We have witnessed high engagement from our initial promotional campaigns, increases in backcourt conversion and growing CIBC cardholder penetration.

International: Strong supply performance, shipping optimization and cost efficiencies

The International segment delivered a 22 percent increase in Adjusted EBITDA relative to Q3 2019, driven by strong supply performance, shipping optimization and cost reduction initiatives. Rolling COVID-19 lockdowns resulted in lower volumes; however, we continued to benefit from geographic and product diversity within our portfolio. The International team continued to drive new growth, in particular, securing new natural resource sector business in Suriname and new diesel supply contracts in the Spanish Caribbean. Third quarter highlights include:

• Adjusted EBITDA of $77 million, up $14 million relative to 2019. The increase was primarily driven by profitable supply sourcing initiatives, including a one-off supply gain of approximately $10 million, and lower costs, offset by reduced aviation and retail activity.
• Fuel and petroleum product volume of 1.1 billion litres, a decrease of 8 percent relative to 2019 due to the impact of COVID-19. Retail fuel volumes were 15 percent lower while commercial and other volumes were 3 percent lower. Although International is experiencing continuing progress in demand recovery with the easing of COVID-19 restrictions, we anticipate the recovery will be tempered until COVID-19 restrictions are lifted and tourism activity returns to normal.
• Reduced operating costs by $7 million and MG&A costs by $6 million relative to 2019, reflecting the sustained benefit of proactive cost control measures, natural variability in our cost structure and integration.

USA: National accounts growth and strong margins

The USA segment delivered a 35 percent increase in Adjusted EBITDA relative to Q3 2019, driven by recent acquisitions, organic growth and strong fuel and non-fuel unit margins. This performance was partially offset by COVID-19 volume impacts and lower commercial activity in our Northern Regional Operations Center (”ROC”). The USA team is realizing the benefits of local scale, winning new business and growing volume in the Rockies and Southeast ROCs and improving fuel and lubricant supply economics. We continue to evaluate acquisition opportunities to increase our marketing presence and optimize our growing supply advantage. Third quarter highlights include:

• Adjusted EBITDA of $23 million, up $6 million relative to 2019. The increase was primarily due to acquisitions, strong unit margins and coordinated marketing efforts to grow national accounts.
• Fuel and petroleum product volume of 653 million litres, an increase of 44 percent relative to 2019 due to the impact of acquisitions and organic growth, offset by the impact of COVID-19. Retail fuel volume increased 4 percent while wholesale and commercial volume increased 51 percent.
• Operating Costs increased $8 million and MG&A costs increased $4 million relative to 2019, due to the impact of acquisitions.
• Consistent with our strategy to grow our non-fuel business, we acquired the license for the exclusive use of the On the Run trademark in the majority of U.S. states. This positions us to create a unified, North American convenience store brand and our first pilot rebranding is planned for the first half of 2021.

Supply: Burnaby refinery operated at 90 percent utilization

Adjusted EBITDA in the Supply segment decreased 16% relative to Q3 2019, driven by the impacts of COVID-19 but mitigated by strong refining utilization and steady performance from our integrated logistics business. Our ability to market diesel and jet fuel allowed our refinery to run more efficiently, resulting in utilization rates meaningfully above the North American average. Third quarter highlights include:

• Adjusted EBITDA of $122 million, down $24 million relative to 2019 due to COVID-19 related volume and pricing impacts which drove lower refinery utilization and margins compared to 2019, but strong considering external market factors.
• Refinery utilization was 90 percent, underpinned by our integrated marketing channels in British Columbia and ability to place both diesel and jet fuel at prevailing market prices.
• Reduced operating costs by $15 million and MG&A costs by $6 million relative to 2019, reflecting the variable components of production costs and proactive cost control measures.
• We continue to pursue high-quality growth projects that extend our supply advantage, such as diesel import and export opportunities and development of our renewable fuel strategy.

Corporate – organizational efficiency delivering sustainable MG&A savings

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

• MG&A costs of $22 million, down $7 million relative to 2019, reflecting the sustained benefit of proactive cost control measures and natural variability in our cost structure.
• As a percentage of total adjusted gross profit, MG&A costs decreased to 3.3 percent (from 4.3 percent in 2019).
• Adjusted EBITDA expense of $12 million, which includes MG&A costs and foreign exchange gains on US dollar debt repayments during the quarter.

Consolidated Financial Overview

_{(1)  Measure of segment profit and Non-GAAP financial measures. See Section 12 of this MD&A.
(2)  For comparative purposes, information for the three and nine months ended September 30, 2019 was restated due to a change in segment presentation. Canada Retail and Canada Commercial, formerly presented separately as individual segments, and the 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.}

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Wednesday, November 4, 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://produceredition.webcasts.com/starthere.jsp?ei=1390182&tp_key=aefbc264cf

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: 51942789). International participants can call 1-587-880-2171 (toll) (Conference ID: 51942789).

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

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

MD&A and Consolidated Financial Statements

The Q3 2020 MD&A and Q3 2020 Financial Statements provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 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 Q3 2020 French MD&A and Q3 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 and strategies, estimated 2020 capital expenditures, potential acquisition opportunities, potential projects to extend Parkland’s supply advantage, the ongoing roll out of the JOURNIE™ Rewards loyalty program, expected Burnaby refinery utilization rates, and Parkland’s ability to advance its growth agenda.

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 Q3 2020 MD&A dated November 3, 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, adjusted dividend payout ratio and growth and maintenance capital expenditures attributable to Parkland are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 12 of the Q3 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 Q3 2020 MD&A and Note 19 of the Q3 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, such as SSSG and refinery utilization, 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 Q3 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.

• 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.

• An additional C$300 million of commitments under our syndicated credit facilities, maturing January 8, 2023. Pro forma the amendment, cash and cash equivalents plus unused credit facilities as of March 31, 2020 would have been C$1.2 billion.
• As at March 31, 2020 Total Funded Debt to Credit Facility EBITDA was 2.9 times, with a covenant limit of 5.0 times. Effective from Q4 2020 though Q3 2021, Parkland’s Total Funded Debt to Credit Facility EBITDA covenant limit will increase to 6.0 times, reverting to 5.0 times thereafter.
• The effective interest rate on the updated syndicated credit facilities is materially unchanged and all other financial covenants remain the same.

“We continue to see improvement in fuel demand and robust convenience store sales in most markets,” said Darren Smart, Interim-Chief Financial Officer. “Recognizing that the COVID-19 recovery remains dynamic, we have taken proactive steps to secure additional financial flexibility and to position us to take advantage of potential future growth opportunities. We remain focused on maintaining our balance sheet strength and are committed to exercising strict capital discipline. We would like to thank our banking group for their ongoing support and partnership in our future success.”

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 “potential” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to the ability to take advantage of potential future growth opportunities.

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 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. See the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 30, 2020 and in “Forward-Looking Information” and “Risk Factors” in the Q1 2020 MD&A, which are 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”). See Section 12 – “Non-GAAP Financial Measures” of the Q1 2020 MD&A for a description of “Credit Facility EBITDA” and “Total Funded Debt to Credit Facility EBITDA”.

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.

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.

• Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”) of $191 million.
• Net earnings (loss) attributable to Parkland of $(79) million or $(0.53) per share, basic.
• Strong financial position with significant liquidity to manage through challenging market environments. Cash and cash equivalents plus unused credit facilities was $908 million as of March 31, 2020.
• Total Funded Debt to Credit Facility EBITDA ratio was 2.9 times (relative to a covenant of 5.0 times) as of March 31, 2020.
• Cash flow from operating activities of $258 million fully funded growth and maintenance capital expenditures, dividend payments and the Kellerstrass acquisition.
• Trailing-twelve-month adjusted dividend payout ratio of 40 percent.
• Fuel and petroleum product volume of 6.0 billion litres, up 12 percent from Q1 2019.
• Acted decisively and prudently in response to the novel coronavirus (”Covid-19″) to ensure the safety of our employees, customers and communities, mitigate the impacts of the pandemic, maintain balance sheet strength and increase the resilience of our business.

“We delivered strong financial and operating performance through the first 10 weeks of the year with base operations and growth initiatives on-track with our plan,” said Bob Espey, President and Chief Executive Officer. “Covid-19 paused this momentum in mid-March, however, despite this and other economic headwinds, including a declining Canadian dollar and lower, more volatile commodity prices, our diverse business is proving resilient.”

“We entered this challenging period with a strong balance sheet and acted decisively to protect it. We removed over $300 million of capital expenditures from our 2020 plans and reduced our fixed and variable expenses,” added Espey. “I want to thank the Parkland team who are intensely focused on safely providing essential products and services to our customers and supporting our communities. These characteristics underpin our resilience and growth capabilities. I would also like to thank the refinery team for their hard work and for safely completing the turnaround in April.”

Our commitment to safety, customers and community

Parkland’s top priority is the safety of its employees, customers and communities and to reliably provide an essential service in the 25 countries we operate.

In response to Covid-19 and in-line with recommendations from local health authorities, enhanced operating procedures and protocols were instituted to maintain our sites to even higher levels of cleanliness. From rigorous sanitization and disinfecting protocols, plexiglass guards in our company-owned convenience stores and navigating global supply shortages to provide personal protective equipment to our front-line teams, we have, and will continue to put safety first.

Parkland’s retail and commercial brands remain trusted, integral parts of their communities. Consistent with our values, we have extended over $3.5 million of fuel discounts to front-line health care workers and first responders across Canada, the US and our International business through April. We are providing free hot showers, as well as food and snack discounts, to Canada’s truck-driving community at select company cardlock and convenience store locations. We will continue to monitor the needs of our customers and communities and remain committed to providing safe and reliable services and giving back to those in need.

Q1 2020 Segment Highlights

Supply

Operations were focused on the safe and successful execution of the Burnaby refinery turnaround and continued performance from our integrated logistics operations. Our supply team reliably sourced and maintained uninterrupted fuel supply for our customers during the turnaround. We advanced our US supply business through the expansion of our Houston office operations and saw strong organic growth in wholesale volumes. First quarter highlights include:

• Due to the Burnaby refinery turnaround which began on February 1, 2020, Adjusted EBITDA was $39 million; a decrease of $104 million relative to 2019.
• As a result of the planned turnaround, refinery utilization was 30.9 percent.
• Invested $55 million of capital and $27 million of operating costs on the turnaround. The additional operating expenses were mostly offset by lower fuel, catalyst and chemical costs while the plant was shut down.

Canada

We have combined Canada Retail and Canada Commercial into one “Canada” segment to align with our US and International segment reporting and to reflect the operational accountability of our Canadian leadership team.

Our Canadian business performed well through the quarter. We gained momentum on our growth initiatives through the first 10 weeks but experienced a pause in mid-March due to the Covid-19 pandemic. We delivered our 17^th consecutive quarter of Company C-Store same-store-sales growth (”SSSG”), progressed the national roll out of our JOURNIE™ Rewards program and developed our network through On-the-Run (”OTR”) conversions and New to Industry (”NTI”) sites. In addition, we grew our industrial propane market share and benefited from the high-grading of our commercial customer base in 2019.  First quarter highlights include:

• Adjusted EBITDA of $103 million, a decrease of $14 million relative to 2019. The decrease was driven by lower retail fuel margins in the first part of the quarter, a warmer winter heating season and lower volume demand in the second half of March due to Covid-19.
• Fuel and petroleum product volume of 2.4 billion litres, a decrease of 6 percent relative to 2019. The business saw strong growth early in the year but was offset by weakness in March due to Covid-19.
• Company C-Store SSSG of 0.4 percent, our 17th consecutive quarter of positive C-store SSSG despite weakening sales in the latter half of March due to Covid-19.
• Company volume SSSG of negative 4.3 percent. Company volume was trending well through the first 10 weeks of the quarter relative to 2019 but decreased in March due to Covid-19.
• Commenced the national launch of JOURNIE™ Rewards in January 2020 with CIBC as our strategic banking partner. Initial results remain encouraging with strong membership acquisition and engagement. Due to reduced site traffic and additional preventative safety measures as a result of Covid-19, we deferred our national roll-out strategy and marketing campaigns until the economy improves. For more information on JOURNIE™ and how to become a registered member please visit www.journie.ca.

International

Our International business had a strong start to the year, benefiting from organic growth initiatives, supply synergies and a robust tourist industry. We continued to benefit from strength in our wholesale channel and marine bunkering business which resulted from new customer wins and the collaboration with our Tropic Oil operations in Florida. This momentum paused in mid-March due to Covid-19 which led to a decline in fuel demand and lower supply margins. First quarter highlights include:

• Adjusted EBITDA of $67 million, a decrease of $4 million relative to 2019. The decrease was driven by demand reductions in March due to Covid-19 and margin pressure due to commodity price volatility.
• Fuel and petroleum product volume of 1.4 billion litres, an increase of 31 percent relative to 2019, consisting of 406 million litres sold through retail channels and 990 million litres sold through commercial and wholesale channels.

USA

Our USA business had a strong quarter with improved operational efficiency and significant growth excluding the impact of M&A. We closed our previously announced acquisition of Kellerstrass Oil in mid-February, bringing 84 new dealer locations and expanding our presence in Idaho, Wyoming and northern Utah. Our recent acquisitions have exceeded investment case to date, and in particular, Tropic Oil has driven strong organic growth and also benefited our International business. We saw a volume decline in mid-March due to the Covid-19 pandemic which was offset by strength in retail and marine fuel margins.  First quarter highlights include:

• Adjusted EBITDA of $18 million, an increase of $7 million relative to 2019. The increase was primarily due to our 2019 acquisitions, organic growth and strong retail and marine fuel margins.
• Fuel and petroleum product volume was 634 million litres, up 92 percent relative to 2019.

Corporate

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

• Marketing, General and Administrative (”MG&A”) costs were flat relative to 2019, at $27 million.
• Adjusted EBITDA of negative $36 million, which includes MG&A costs and a loss on US dollar debt repayments resulting from the significant decline in the USD/CAD exchange rate during the quarter.
• As a percentage of total adjusted gross profit, marketing, general and administrative expenses increased to 4.6 percent (up from 3.9 percent in 2019).

Consolidated Financial Overview

(1) Measure of segment profit. See Section 12 of this MD&A.
(2) For comparative purposes, information for the three months ended March 31, 2019 was restated due to a change in segment presentation. Canada Retail and Canada Commercial, formerly presented separately as individual segments, are now combined as the Canada segment, reflecting a change in organizational structure in the first quarter of 2020.
(3) Non-GAAP financial measure. See Section 12 of this MD&A.
(4) Calculated using the weighted average number of common shares.
(5)  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.
(6) Amounts presented on a trailing-twelve-month (”TTM”) basis
(7) Beginning in Q1 2020, Parkland includes Adjusted EBITDA attributable to NCI and excludes IFRS 16 impact attributable to NCI in Credit Facility EBITDA and includes long term debt attributable to NCI, letters of credit attributable to NCI and cash and cash equivalents attributable to NCI in Senior Funded Debt and Total Funded Debt. The 2019 and 2018 numbers have not been adjusted.

Update on Covid-19 business impacts

The duration and impact of Covid-19 is difficult to forecast, however, it has already led to significantly reduced global economic activity and fuel demand. Based on our own conservative demand and economic recovery model, we took immediate action to protect our business and financial strength, and enhance our resilience to position the Company to emerge stronger.

• Canada segment volumes have declined approximately 35 percent in April relative to 2019, consisting of an approximate 40 percent decline in retail gasoline volumes and 25 percent in commercial and other volume. Rural markets have been less impacted than major urban centers and key supply chains have remained open for trucking traffic.
• US segment volumes have declined approximately 20 percent in April relative to 2019, excluding the impact of acquisitions, consisting of an approximate 20 percent decline in wholesale and commercial volume and 35 percent in US retail gasoline volume. The US segment has fewer major urban centers in our areas of operations and a higher commercial weighting of the portfolio.
• International segment on-shore volumes have declined approximately 40 percent in April relative to 2019, consisting of an approximate 25 percent decline in the commercial lines of business and 55 percent in the retail line of business. Many countries in the International segment have extensive curfew measures and higher exposure to tourist activity.
• The impact of the volume declines has been partially offset by generally stronger fuel margins (per litre) in April. This benefit has been most pronounced in the US, followed by our Canada segment, and less so in our International segment.
• Convenience store sales in Canada are marginally down in April relative to 2019. Tobacco, alcohol and household essentials have performed well, while confectionery items and car wash traffic have declined along with the temporary suspension of frozen and hot beverage offerings and fresh food service. We have altered our merchandising strategy where appropriate to prioritize higher demand categories and our teams have done a great job at keeping shelves merchandised.
• Refinery utilization as of May 6, 2020 is approximately 75 percent, which accounts for lower fuel demand in locally served markets. Based on the current refinery throughput, we have been able to reduce jet fuel to less than 10 percent of output. We will continue to optimize utilization rates going forward based on demand projections.
• Despite the current economic slowdown and reduction to our 2020 capital program, there are several high return initiatives we are focused on in the interim such as the integration of recent acquisitions and enhancing our digital capability and back-office systems. These initiatives will allow us to resume our growth programs when the economy improves.

2020 Capital Program Guidance

On March 30, 2020, Parkland reduced its guidance for 2020 Total Capital expenditures to $275 million +/- 5%, a reduction of $300 million. This reduction is consistent with our priority to maintain financial flexibility and balance sheet strength. The capital expenditures included in the reduction can be deferred until an improvement in the current economic environment. Further detail can be found in our press release dated March 30, 2020 and in the Q1 2020 MD&A.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 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=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). International participants can call 1-587-880-2171 (toll) (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.

MD&A and Consolidated Financial Statements

The Q1 2020 MD&A and Q1 2020 FS provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 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. 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, business objectives, estimated 2020 capital expenditures, the ongoing launch of the JOURNIE™ Rewards loyalty program, expected Burnaby refinery utilization rates, and Parkland’s ability to quickly resume growth strategy when economic conditions improve. Additionally, this press release contains certain preliminary April 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; 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 Q1 2020 MD&A dated May 6, 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 12 of the Q1 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 Q1 2020 MD&A and Note 20 of the Q1 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 Q1 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 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.