CaribPR Wire

• Parkland advances executive development and progression as part of succession plan
• Brad Monaco, current Vice President, Finance Canada named interim Chief Financial Officer

CALGARY, AB, Dec. 17, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) announced that, effective January 1, 2025, as part of the Company’s executive succession plan, Marcel Teunissen, the Company’s current Chief Financial Officer will transition to the new role of President, North America, responsible for Canadian and US operations.

“Parkland takes a thoughtful approach to senior executive development and progression,” said Bob Espey, President and Chief Executive Officer. “Marcel has been Parkland’s Chief Financial Officer since 2020. During this time, he has demonstrated tremendous business acumen and proven he is a progressive and exceptional leader. I am delighted he will lead our Canadian and US businesses and have confidence that, under his leadership they will contribute strongly to the Company’s continued growth.”

Effective January 1, 2025, Parkland has named Brad Monaco as Interim Chief Financial Officer. Brad will report to Parkland’s President and Chief Executive Officer and work closely with the Company’s Board of Directors.

“I am delighted Brad is stepping in as interim Chief Financial Officer,” added Espey. “Brad has proven to be a highly impactful Parkland leader in both corporate and operational roles. His diverse finance and capital markets experience coupled with his strategic planning capabilities make him the natural choice to lead our finance function on an interim basis. I am confident he will do an excellent job.”

Brad has held progressively senior finance roles at Parkland including Director, Capital Markets, and Vice President Finance for the Company’s Canadian business segment. Prior to Parkland, Brad built considerable experience in various capital markets, strategic planning, and buy-side investment management roles.

Parkland has retained a leading global executive recruitment firm to conduct a search for a permanent Chief Financial Officer.

About Parkland Corporation

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

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

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “focus”, “aim”, “will”, “continue” 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 Company’s succession plan, the new appointments, the timing thereof and the mandates and reporting structures relating thereto, as applicable; confidence in the new appointments and expectations relating thereto; the Company’s search for a permanent Chief Financial Officer; and Parkland’s business strategies and objectives.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: Parkland’s ability to execute its business strategies, objectives and initiatives, including without limitation, its succession plan, the new appointments relating thereto, the timing thereof and realizing the benefits therefrom; Parkland’s ability to recruit a permanent Chief Financial Officer; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s Annual Information Form dated February 27, 2024, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Q3 2024 MD&A dated October 30, 2024 and Q4 2023 MD&A dated February 27, 2024, each filed on SEDAR+ and available on Parkland’s website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Under the NCIB, the Company may purchase for cancellation a maximum of 13,814,717 common shares of the Company (the “Shares”), representing 10% of the public float (as defined by the TSX) as of November 18, 2024. On November 18, 2024, Parkland had 173,781,684 Shares issued and outstanding. The NCIB will commence on December 1, 2024 and will terminate upon the earliest of (i) November 30, 2025, (ii) the Company purchasing the maximum of 13,814,717 Shares, and (iii) the Company terminating the NCIB.

The NCIB is intended to augment Parkland’s ongoing return of capital to shareholders through dividends. Parkland believes that the market price of the Shares may not, from time to time, accurately reflect their underlying value. Accordingly, purchasing the Shares for cancellation under the NCIB may represent an attractive investment opportunity to enhance shareholder value, in line with Parkland’s capital allocation framework.

Purchases under the NCIB will be made through the facilities of the TSX or alternative trading systems in Canada at the prevailing market price at the time of purchase. In accordance with the rules of the TSX, any daily repurchases (other than pursuant to a block purchase exception as defined by the TSX) under the NCIB will be limited to a maximum of 136,675 Shares, which represents 25% of the average daily trading volume on the TSX of 546,700 for the six months ended October 31, 2024.

In connection with the NCIB, the Company has entered into an automatic share purchase plan (the “ASPP”) with its designated broker to allow for the purchase of Shares during certain pre-determined blackout periods and other periods during which the Company would ordinarily not be permitted to purchase Shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on purchasing parameters set by Parkland in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. Outside of blackout periods, Shares may be purchased under the NCIB based on management’s discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Shares purchased under the NCIB. The ASPP has been pre-cleared by the TSX and will become effective December 1, 2024, concurrently with the commencement of the NCIB.

The NCIB continues the Company’s existing NCIB (the “Existing NCIB”). Pursuant to the Existing NCIB, the Company has approval from the TSX to repurchase up to 14,056,984 Shares from December 1, 2023 to November 30, 2024. Under the Existing NCIB, the Company has purchased 3,107,038 Shares on the open market at a weighted average purchase price of $42.6734 per Share.

There can be no assurance as to the precise number of Shares that will be purchased under the NCIB, if any. Parkland may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.

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 NCIB and the ASPP, potential purchases of Shares under the NCIB and the ASPP, the anticipated benefits of the NCIB, including enhancing shareholder value and returning additional capital to shareholders, and Parkland’s business strategies and objectives.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: the failure to obtain final approval of the NCIB and the ASPP from the TSX; failure to realize the anticipated benefits of the NCIB; failure to execute purchases under the NCIB, including under the ASPP; general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including, without limitation, the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators, including but not limited to, increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated February 27, 2024, and “Forward-Looking Information” and “Risk Factors” included in the Q3 2024 MD&A dated October 30, 2024 and the Q4 2023 MD&A dated February 27, 2024, 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.

About Parkland Corporation

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

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

Operational performance highlights the strength of our business, brands and customer proposition

Financial results primarily impacted by lower global refining margins

Demonstrating progress toward 2028 ambitions

CALGARY, AB, Oct. 30, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX: PKI), today announced its financial and operating results for the three and nine months ended September 30, 2024.

“The Parkland Team remains focused on executing our strategic plan and achieving strong operational metrics across the business relative to industry. Although our third quarter 2024 financial results fell short of expectations, this was primarily driven by a challenging refining margin environment,” said Bob Espey, President and Chief Executive Officer. “Our business continues to show strength through increased market share in a soft economic environment. Adjusted EBITDA from our Retail and Commercial lines of business grew by two percent over the last twelve months, demonstrating progress on the organic growth initiatives required to deliver on our 2028 ambitions.”

Q3 2024 Highlights

• Adjusted EBITDA¹ of $431 million, a decrease of 26 percent as compared to Q3 2023, largely due to lower refinery margins in the third quarter of 2024, despite strong operational execution.
• Net earnings of $91 million ($0.52 per share, basic), a decrease of 60 percent as compared to Q3 2023, and Adjusted earnings² of $106 million ($0.61 per share, basic²), a decrease of 54 percent from Q3 2023, largely due to lower refinery margins in the third quarter of 2024.
• Trailing-twelve-month (”TTM”) Available cash flow² of $627 million ($3.58 per share²), a decrease of 16 percent from the same period in 2023, and TTM Cash generated from (used in) operating activities³ of $1,490 million ($8.51 per share³), a decrease of 25 percent from the same period in 2023, largely due to the unplanned shutdown of the Burnaby Refinery in the first quarter of 2024 and lower refining margins in the third quarter of 2024.
• TTM Adjusted EBITDA from our Retail and Commercial lines of business⁴ of $1,568 million, an increase of two percent from the same period in 2023, reflecting organic growth, synergy capture and cost reductions.
• Purchased and cancelled approximately 382,000 Parkland common shares for $14 million, in line with our disciplined capital allocation.
• Liquidity available³ increased to $2 billion ($1,246 million in Q2 2024), reflecting the senior unsecured note issuance used to repay drawings under the Company’s credit facilities during the quarter, and Leverage Ratio⁵ increased to 3.4 times (3.1 times in Q2 2024), reflecting debt repayments being more than offset by lower TTM Adjusted EBITDA.
• Return on invested capital² (”ROIC”) decreased to 7.8 percent from 9.5 percent for the trailing twelve months ended September 30, 2024, as compared to the same period in 2023.
• Announced intention to divest our Florida-based retail and commercial businesses, reflecting our commitment to disciplined capital allocation and redirecting capital towards our highest return opportunities that maximize shareholder value.

Q3 2024 Segment Highlights

• Canada delivered Adjusted EBITDA of $200 million, in line with Q3 2023 ($206 million). Performance was underpinned by strong fuel unit margins from continued price and supply optimization despite lower consumer demand. Company same-store volume growth (”Company SSVG”)⁶ was 1.4 percent, compared to 4.2 percent in Q3 2023. Food and Company C-Store SSSG (excluding cigarettes)² was (1.1) percent, compared to 3.6 percent, in Q3 2023. These decreases were primarily driven by economic conditions that have reduced discretionary spending for consumers. Canada delivered Food and Company C-store revenue of $82 million, consistent with Q3 2023 ($81 million).
• International delivered Adjusted EBITDA of $152 million, down 11 percent from Q3 2023 ($170 million). The decrease was primarily driven by lower wholesale volumes, partially offset by continued growth in our retail, commercial and aviation base businesses.
• USA delivered Adjusted EBITDA of $54 million, in line with Q3 2023 ($52 million). Performance was underpinned by improved supply optimization despite lower consumer demand.
• Refining delivered Adjusted EBITDA of $49 million, compared to $188 million in Q3 2023. This decrease was primarily driven by lower refining margins. Strong composite utilization⁶ at the Burnaby Refinery of 102 percent, compared to 103 percent in Q3 2023.
• Parkland’s total recordable injury frequency rate⁶ on a TTM basis was 1.04, compared to 0.95 at September 30, 2023.

2024 Guidance

As a result of the unplanned shutdown at the Burnaby Refinery in the first quarter of 2024, and unfavorable market conditions experienced for the first nine months of 2024, primarily due to lower refining margins in the third quarter of 2024, which are expected to persist for the remainder of the year, Parkland has further revised its 2024 Adjusted EBITDA Guidance³ to $1,700 million – $1,750 million(the “Updated 2024 Adjusted EBITDA Guidance Range”). This represents a $200 million – $250 million decrease in guidance range from our previous guidance range of $1,900 million – $2,000 million.

Furthermore, Parkland has revised its 2024 Available cash flow per share Guidance and 2024 ROIC Guidance, as a result of the factors outlined above, as follows:

• 2024 ROIC Guidance² is revised to approximately 8 percent, from more than 11 percent (the “Revised 2024 ROIC Guidance”);
• 2024 Available cash flow per share Guidance² is revised to approximately $3.75 per share, from $5.00 per share (the “Revised 2024 Available cash flow per share Guidance”).

Consolidated Financial Overview

Q3 2024
Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, October 31, 2024 at 6:30 am MT (8:30 am ET) to discuss the results. To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/01ap5P1mzRe

Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-510-2154 (toll-free) (Conference ID: 03367). International participants may call 1-437-900-0527 (toll-free) (Conference ID: 03367).

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

MD&A and Interim Condensed Consolidated Financial Statements

The Management’s Discussion and Analysis for the three and nine months ended September 30, 2024 (the “Q3 2024 MD&A”) and Interim Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2024 (the “Q3 2024 Interim Condensed Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2024. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval + (”SEDAR+”) after the results are released by newswire under Parkland’s profile at www.sedarplus.ca. The French versions of the Q3 2024 MD&A and the Q3 2024 Interim Condensed Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.

About Parkland Corporation

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

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

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release, the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; Parkland’s focus on executing its strategic plan and achieving strong operational performance metrics; Parkland’s organic growth initiatives and the progress and 2028 ambitions relating thereto; disciplined capital allocation; Parkland’s plan to divest its Florida-based retail and commercial business and the completion thereof; Parkland’s commitment to disciplined capital allocation and redirecting capital to highest return opportunities and expectations relating thereto; lower refining margins expected for the rest of the year; and Parkland’s Updated 2024 Adjusted EBITDA Guidance, Revised 2024 ROIC Guidance and Revised 2024 Available cash flow per share 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 obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; Parkland’s ability to identify buyers and complete divestments on terms reasonable to Parkland and in a timely manner; and the assumptions and risks described under “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s most recent Annual Information Form, and under “Forward-Looking Information” and “Risk Factors” in the Q3 2024 MD&A, which are incorporated by reference herein, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. In addition, the Revised 2024 Adjusted EBITDA Guidance reflects continued integration of acquired businesses, synergy capture, and organic growth initiatives, and the key material assumptions include: an increase in Retail and Commercial Fuel and petroleum product adjusted gross margin of approximately 1 percent and Food, convenience and other adjusted gross margin of approximately 5 percent as compared to the year ended December 31, 2023; the realization of $100 million of run-rate marketing, general and administrative expense cost efficiencies by the end of 2024; Refining adjusted gross margin of approximately $30 to $31 per barrel and average Burnaby Refinery composite utilization of 75 percent to 80 percent (factoring in the unplanned outage) based on the Burnaby Refinery’s crude processing capacity of 55,000 barrels per day; enhancements to operations, utilization and optimization of supply at the Burnaby Refinery during 2024; and implementation of ongoing cost reductions across the business. The Revised 2024 Available cash flow per share Guidance and the Revised 2024 ROIC Guidance reflect the lower Revised 2024 Adjusted EBITDA Guidance. In addition, the Revised 2024 Available cash flow per share Guidance assumes a lower number of outstanding common shares compared to 2023 as a result of share repurchases completed during 2024, and the revised 2024 ROIC Guidance assumes invested capital grows at a slower pace than Net operating profit after tax (”NOPAT”) through the remainder of 2024. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Specified Financial Measures

This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, “specified financial measures”). Parkland’s management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards 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 16 of the Q3 2024 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.

Non-GAAP Financial Measures and Ratios

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

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

See Section 16 of the Q3 2024 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 calculation of Adjusted earnings (loss) per share.

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

ROIC is a non-GAAP financial ratio. The measure is calculated as a ratio of 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 and Total of Segments Measures” section of this news release, less depreciation expense and the estimated tax expense using the expected average tax rate estimated using statutory tax rates in each jurisdiction where Parkland operates. Average invested capital is the amount of capital deployed by Parkland that represents the average of opening and closing debt and shareholder’s equity, including equity reserves, net of cash and cash equivalents. We use this non-GAAP financial ratio to assess Parkland’s efficiency in investing capital. ROIC Guidance is a non-GAAP financial ratio, which represents the forward-looking metric of ROIC. ROIC Guidance is calculated based on the historic ROIC performance and the assumptions made on the future performance of Parkland.

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.

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 16 of the Q3 2024 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland’s non-GAAP financial measures and ratios.

Capital Management Measures

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

Measures of Segment Profit and Total of Segments Measures

Adjusted earnings (loss) before interest, taxes, depreciation and amortization (”Adjusted EBITDA”) is a measure of segment profit and its aggregate is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS Accounting Standards, adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. As such, Parkland’s Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland’s ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 16 of the Q3 2024 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three and nine months ended September 30, 2024 and September 30, 2023.

Supplementary Financial Measures

Parkland uses a number of supplementary financial measures, including Adjusted EBITDA Guidance, Liquidity available, TTM Cash generated from (used in) operating activities, and TTM Cash generated from (used in) operating activities per share, and these measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 16 of the Q3 2024 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.

Non-Financial Measures

Parkland uses a number of non-financial measures, including Company SSVG, composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable IFRS Accounting Standards measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q3 2024 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.

To listen to the live webcast and watch the presentation, please use the following link: https://app.webinar.net/01ap5P1mzRe

Analysts and investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-510-2154 (toll-free) (Conference ID: 03367). International participants may call 1-437-900-0527 (toll-free) (Conference ID: 03367).

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

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

About Parkland Corporation

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

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

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