Posts Tagged ‘#ParklandFuelCorporation’

Parkland increases financial flexibility under its syndicated credit facilities

CaribPR Wire, CALGARY, Alberta, June 09, 2020: Parkland Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) is pleased to announce a proactive update to its syndicated credit agreement terms. Highlights of the amended credit agreement include:

  • 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.

Click Here for More Information »

Parkland completes acquisition of ConoMart Super Stores

CaribPR Wire, CALGARY, Alberta, May 13, 2020: Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) announced today that through its wholly-owned U.S. subsidiaries (collectively, “Parkland USA”), it has completed the previously announced asset agreement to acquire ConoMart Super Stores.

ConoMart Super Stores operates seven retail sites located in and around Billings, Montana. Please see Parkland’s press release dated March 9, 2020, for more information about this acquisition.

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

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

Click Here for More Information »

Parkland announces date of 2020 first quarter results, virtual Annual General Meeting and confirms completion of the Burnaby Refinery turnaround

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

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

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

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

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

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

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

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

About Parkland

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

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

Click Here for More Information »

Parkland delivers record 2019 Adjusted EBITDA and increases dividend

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

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

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

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

Dividend Increase

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

Segment Highlights

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

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

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

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

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

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

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

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

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

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

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

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

Consolidated Financial Overview

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

($ millions, unless otherwise noted)

Three months ended December 31,

Year ended December 31,

2019(4)

2018(4)

2017(4)

2019(4)

2018(4)

2017(4)

Financial Summary
Fuel and petroleum product volume (million litres)

5,925

4,354

4,432

22,408

16,978

13,333

Adjusted gross profit(1)

728

587

469

2,832

1,995

1,094

Adjusted EBITDA including non-controlling interest (”NCI”)

327

285

198

1,358

887

418

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

302

285

198

1,265

887

418

Supply

152

199

94

658

561

160

Canada Retail

56

78

94

283

316

231

International

73

281

Canada Commercial

33

27

28

99

93

70

USA

15

11

4

56

28

16

Corporate

(27

)

(30

)

(22

)

(112

)

(111

)

(59

)
Net earnings

186

77

49

414

206

82

Net earnings attributable to Parkland

176

77

49

382

206

82

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

1.19

0.58

0.37

2.60

1.56

0.70

Per share – diluted

1.17

0.57

0.37

2.55

1.53

0.69

Distributable cash flow(2)

149

151

45

564

416

151

Per share(2)(3)

1.01

1.14

0.33

3.84

3.15

1.29

Adjusted distributable cash flow(2)

142

175

102

561

568

251

Per share(2)(3)

0.96

1.32

0.78

3.82

4.30

2.15

Dividends

44

41

39

177

159

138

Dividends declared per share outstanding

0.2985

0.2934

0.2886

1.1906

1.1704

1.1510

Dividend payout ratio(2)

30

%

27

%

89

%

31

%

38

%

91

%

Adjusted dividend payout ratio(2)

31

%

23

%

38

%

32

%

28

%

55

%

Shares outstanding (millions)

148

134

131

148

134

131

Weighted average number of common shares (million shares)

148

133

131

147

132

117

Total Funded Debt to Credit Facility EBITDA ratio(2)

2.79

2.47

2.62

2.79

2.47

2.62

Interest coverage ratio(2)

5.32

6.52

7.65

5.32

6.52

7.65

Growth capital expenditures attributable to Parkland

69

57

15

221

109

35

Maintenance capital expenditures attributable to Parkland

91

52

50

232

187

75

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

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

Three months ended December 31,

Year ended December 31,

($ millions)

2019

2018

2019

2018

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Adjusted EBITDA as reported

IFRS 16 Impact

Pre-IFRS 16 Amount(1)

Adjusted EBITDA as reported

Supply

152

(10

)

142

199

658

(32

)

626

561

Canada Retail

56

(8

)

48

78

283

(26

)

257

316

Canada Commercial

33

(2

)

31

27

99

(7

)

92

93

International

73

(15

)

58

281

(57

)

224

USA

15

15

11

56

(2

)

54

28

Corporate

(27

)

(1

)

(28

)

(30

)

(112

)

(4

)

(116

)

(111

)
Consolidated

302

(36

)

266

285

1,265

(128

)

1,137

887

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

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

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

2020 Adjusted EBITDA and Capital Program Guidance

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

Guidance Metric ($ millions)
Adjusted EBITDA (1)

1,130

+/- 5%
Capital Expenditures
Growth

300

2020 Refinery Turnaround Maintenance

60

Other Maintenance

215

Total Capital Expenditures (2)

575

+/- 5%
Approximate Capital Breakdown

Total Capital Expenditures (2)

Supply

40%

Canada

35%

International

15%

USA

5%

Corporate

5%

Consolidated

100%

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

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

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

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

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

Conference Call and Webcast Details

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

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

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

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

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

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

MD&A and Consolidated Financial Statements

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

Forward-Looking Statements

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

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

Non-GAAP Financial Measures

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

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

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

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

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

About Parkland Fuel Corporation

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

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

Click Here for More Information »

Parkland completes acquisition of Kellerstrass Oil

CaribPR Wire, CALGARY, Alberta, Feb. 14, 2020: Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) announced today that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has completed the previously announced acquisition of the entities and assets comprising Kellerstrass Oil Company (collectively, “Kellerstrass”).

Based in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming. Please see Parkland’s press release dated January 16, 2020 for more information about this acquisition.

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

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

Click Here for More Information »

Parkland announces internal appointment of Darren Smart to Interim Chief Financial Officer

CaribPR Wire, CALGARY, Alberta, Nov. 12, 2019: Parkland Fuel Corporation (”Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced that Darren Smart has assumed the role of Interim Chief Financial Officer (“CFO”) in addition to his current role as Parkland’s Senior Vice President, Strategy and Corporate Development. As previously announced, Mike McMillan, who has served as the company’s CFO since 2015 will be leaving the company. Mike will be available to support Darren’s transition until December 31, 2019.

“We are pleased that Darren has assumed the Interim CFO role in addition to his existing accountabilities,” said Bob Espey, Parkland’s President and Chief Executive Officer. “During the past five-years, Darren has played a significant commercial and financial leadership role in the company. I am confident he will do an excellent job and provide strong continuity as we search for a permanent Chief Financial Officer.”

“Mike has made exceptional contributions during his ten-years with Parkland,” said Espey. “On behalf of the Parkland team, I thank him for his commitment to our growth and success and offer my best wishes.”

Darren Smart joined Parkland in 2014 and leads the company’s enterprise wide strategy and corporate development activity.  He has been a member of the company’s Senior Leadership Team since 2015. Prior to joining Parkland, Darren was a Portfolio Manager at Teachers’ Private Capital, the private equity arm of the Ontario Teachers’ Pension Plan, where he was responsible for sourcing, evaluating and managing energy-related investments. Darren has a Master of Business Administration from Harvard Business School and a Bachelor of Business Administration with distinction from Wilfrid Laurier University.

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.

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Parkland announces launch of new JOURNIE™ Rewards Canadian customer loyalty program with CIBC as its strategic banking partner

CaribPR Wire, CALGARY, Alberta, Oct. 17, 2019: Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today that it is launching JOURNIE™, a nationwide rewards and customer loyalty program with CIBC as its strategic banking partner. JOURNIE™ will offer Canadians compelling fuel savings and merchandise offers and will launch in select Ontario, British Columbia and Quebec markets this fall with a full national rollout in early 2020.

JOURNIE™ members that link their personal CIBC credit and debit cards will enjoy fuel savings of three cents per litre at participating locations when paying with their CIBC card. Following its full national rollout, JOURNIE™ Rewards and the CIBC fuel savings will be available across Parkland’s coast-to-coast network of approximately 1,300 Chevron, Ultramar, Pioneer and Fas Gas sites. In addition to instant fuel savings, customers can simultaneously collect JOURNIE™ Rewards as well as rewards they already earn with their CIBC credit card.

“The launch of our JOURNIE™ Rewards program and CIBC’s participation is a major milestone for Parkland,” said Ian White, Senior Vice President of Strategic Marketing and Innovation. “By connecting our national network of fuel retail sites and On the Run and Marché Express convenience stores under a single proprietary rewards program with compelling fuel and merchandise offers, we are creating a powerful customer loyalty offer with nationwide scale.”

“This is an exciting loyalty program bringing together two innovative and customer focused companies that have an extensive nationwide retail presence and broad consumer reach,” added White. “In addition to enhancing our JOURNIE™ value proposition, our partnership with CIBC supports our strategy to grow our fuel sales volumes and increase foot traffic in our Canadian convenience stores.”

“This partnership builds on our exceptional credit card benefits, such as our four per cent cashback on fuel purchases with our CIBC Dividend® Visa Infinite* Card,” said Jeff Smith, Vice President, Client Loyalty Solutions and Partnerships, Personal Banking Products, CIBC.  “With JOURNIE™ Rewards, we’re making it radically simple for our clients to receive discounts at the pump, while helping them achieve their reward ambitions sooner.”

Parkland’s JOURNIE™ Rewards program is supported by a newly developed mobile app which will be available for anyone to download on iOS and Android platforms from October 23, 2019. For more information on JOURNIE™ and how to become a registered member please visit www.journie.ca.

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’’, ‘‘supports’’ 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, launch of JOURNIE™ in early 2020, the availability of JOURNIE™ in Parkland’s coast-to-coast network, growth of fuel sales volumes and increase foot traffic in our Canadian convenience stores.

These forward-looking 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 and uncertainties including, but not limited to: failure to achieve the anticipated benefits of the JOURNIE™ loyalty program, general economic, market and business conditions, industry capacity, competitive action by other companies, refining and marketing margins, the ability of suppliers and/or strategic business partners to meet commitments, actions by governmental authorities and other regulators including increases in taxes, changes and developments in regulations, and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Management’s Discussion and Analysis for the most recently completed financial period, each as filed on SEDAR and available on Parkland’s website at www.parkland.ca.

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. *JOURNIE and associated work marks are trade-marks of Parkland Fuel Corporation.

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Parkland Fuel Corporation Announces Record 2019 Second Quarter Results and Increases its 2019 Adjusted EBITDA Guidance Range to $1.165 Billion ± 5%

Adjusted EBITDA Guidance Range Increased on Strength of Supply, International, USA and Synergy Capture

CARIBPR WIRE, CALGARY, Alberta, Aug. 01, 2019: Parkland Fuel Corporation (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced today the financial and operating results for the three and six months ended June 30, 2019. All financial figures are expressed in Canadian dollars unless otherwise noted.

“The strength of Parkland’s diverse portfolio and integrated assets was on full display in the second quarter, driving outstanding results” said Bob Espey, President and Chief Executive Officer. “Our International, USA and Supply segments underpinned our performance, and we also benefited from further synergy capture including early wins within Sol. Our Canadian Retail business exhibited another quarter of strong volume and convenience store KPI’s, demonstrating the strength of our marketing program and operational execution. Our first half performance and outlook for the base business give us confidence to increase our full-year 2019 Adjusted EBITDA Guidance Range from $1,065 million to $1,165 million (± 5%). Thanks to the entire Parkland team for their hard work and continued focus on safety to deliver another strong quarter.”

Q2 2019 Highlights

  • Second quarter Adjusted EBITDA was $346 million and net earnings attributable to Parkland were $105 million ($0.72 per share, basic). The strong performance was primarily driven by positive contributions from the Sol Transaction, strong Supply results due to refining margins and synergy capture, and continued execution of our US growth strategy. Excluding the impact of IFRS 16, Parkland’s Adjusted EBITDA was $315 million and net earnings were $110 million.
  • Second quarter fuel and petroleum product volume was 5.5 billion litres, compared to 4.2 billion litres in Q2 2018. The increase was primarily driven by volumes from the Sol Transaction.
  • Second quarter adjusted distributable cash flow increased by $17 million to $156 million (increased by $0.01 per share to $1.06 per share), resulting in an adjusted dividend payout ratio of 29%. Adjusted distributable cash flow is a non-GAAP measure, which we have amended to remove the impact of IFRS 16 such that this metric is comparable year over year.
  • Growth capital expenditures attributable to Parkland were $52 million and maintenance capital expenditures attributable to Parkland were $45 million, which reflects the addition of our new International segment and higher Canada Retail and Canada Commercial growth investments.
  • Completed initiatives that are expected to result in run-rate annual synergies of approximately $140 million from the 2017 Ultramar and Chevron acquisitions. We continue to expect that annual run-rate synergies from these acquisitions will reach approximately $180 million by the end of 2020.
  • Total Funded Debt to Credit Facility EBITDA ratio of 2.5 times as at June 30, 2019.
  • Subsequent to the quarter, on July 10, 2019, Parkland closed the private offering (the “2019 offering”) of US$500 million aggregate principal amount of senior unsecured notes due 2027 (the “2019 notes”). The 2019 notes were priced at par and bear interest at a rate of 5.875% per annum, payable semi-annually in arrears beginning January 15, 2020. Parkland used the net proceeds from the offering to: (i) repay in full its US$250 million term loan facility due 2021; and (ii) repay certain outstanding amounts borrowed under its existing revolving credit facilities.
  • Total recordable injury frequency (”TRIF”), calculated on a trailing twelve-month basis, was 1.78 as at June 30, 2019 compared to 1.95 as at June 30, 2018. The reduction in our TRIF demonstrates our culture of care and drive to zero injuries and incidents in our workplace.
  • On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance and other costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. For further information, refer to the unaudited Q2 2019 Interim Condensed Consolidated Financial Statements (”Q2 2019 FS”) and Q2 2019 Management’s Discussion and Analysis (”Q2 2019 MD&A”) for the three and six months ended June 30, 2019.

Canada Retail Highlights

  • Second quarter Adjusted EBITDA was $63 million (Pre-IFRS 16: $57 million), a decrease of $25 million compared to the same period in 2018, excluding the impact of IFRS 16. The decrease in Adjusted EBITDA is primarily due to weaker retail gasoline margins across Canada, and accelerated, non-recurring marketing, general and administrative costs associated with the development of our loyalty program. Growth in volume and same-store-sales metrics demonstrate our focus on market share, operational excellence and strategic marketing programs.
  • Second quarter Company volume same-store-sales growth (”SSSG”) was 0.7%, despite poor spring weather which reduced customer traffic. The strong results demonstrate the success of our network development planning strategy, strategic marketing, operational execution and promotional efforts in response to the poor weather conditions.
  • Second quarter Company C-Store SSSG was 2.7%, our 14th consecutive quarter of positive Company C-Store SSSG. Growth was seen across all merchandise categories and was attributable to strong field level execution and the successful implementation of the On the Run / Marché Express store concepts, Parkland’s proprietary private label brand 59th Street Food Co., and higher forecourt to backcourt conversion rates despite poor spring weather conditions.
  • Partially offsetting the decrease in Adjusted EBITDA was lower operating costs, driven by continued cost control measures and the conversion of company-owned, company-operated (”COCO”) sites to company-owned, retailer-operated (”CORO”) sites, which lowers store labour costs. We continued to evolve our retail site composition in the quarter, converting approximately 10 additional Ultramar COCO sites to CORO sites. As of June 30, 2019, we have approximately 40 Ultramar sites remaining to convert.
  • Pilot results from our “Journie” loyalty program are very promising. With over six months of data, results are in-line with expectations and support our plans for our Q4 2019 launch.

Canada Commercial Highlights

  • Second quarter Adjusted EBITDA was $10 million (Pre-IFRS 16: $8 million), a decrease of $10 million compared to the same period in 2018, excluding the impact of IFRS 16. The decrease in Adjusted EBITDA is due to the decline in the Alberta oil and gas sector, specifically lower rig activity, extended break-up period and production curtailments. Wet weather conditions in the eastern provinces also impacted volumes in the agricultural, forestry, and construction segments. We continue to build for growth through our regional operations centers (”ROC”) structure, growing our national fueling network and expanding our industrial propane offer. Our cardlock strategy is also evolving to be integrated with our retail network development program and aims to increase fleet card acceptance and reciprocity.
  • Second quarter fuel and petroleum product volume decreased 8% relative to Q2 2018, primarily due to lower volumes from the Alberta oil and gas sector and unfavorable weather conditions in parts of Canada.

USA Highlights

  • Second quarter Adjusted EBITDA was $13 million (Pre-IFRS 16: $12 million), an increase of $7 million compared to the same period in 2018, excluding the impact of IFRS 16. The increase in Adjusted EBITDA is primarily due to acquisition activity, organic growth and synergy realization. The US business also benefited from strong diesel margins by sourcing product from the Canadian market via rail.
  • Parkland closed the acquisition of all the assets of Ken Bettridge Distributing Inc. (”KB Oil”) on June 1, 2019, a bulk fuel and lubricants distributor and operator of fleet fueling, convenience stores and cardlock services in Southwest Utah and Southeast Nevada. With the acquisition, Parkland added two bulk plants with cardlocks, fuel distribution through 23 trucks, nine retail stores and a small lubricants business. The acquisition of KB Oil follows on our U.S. growth strategy by establishing scale through the addition of strong local operators.
  • Second quarter fuel and petroleum product volume was 394 million litres, an increase of 148 million litres compared to the same period in 2018. The increase was primarily due to acquisition activity and organic growth initiatives.

International Highlights

  • Second quarter Adjusted EBITDA was $74 million (Pre-IFRS 16: $60 million), which reflects Parkland’s 75% ownership in Sol. Performance was driven by strong execution across the regions, early synergy capture, wholesale sales and corporate cost savings. We expect to exceed our initial expectations for 2019 Adjusted EBITDA in this segment and are on track to meet our synergy targets by the end of 2021.
  • Second quarter fuel and petroleum product volume was 1,270 million litres, consisting of 469 million litres sold through retail channels and 801 million litres sold through commercial and wholesale channels.

Supply Highlights

  • Second quarter Adjusted EBITDA was $216 million (Pre-IFRS 16: $209 million), an increase of $39 million compared to the same period in 2018, excluding the impact of IFRS 16. The increase in Adjusted EBITDA is primarily due to safe and reliable operations, strong refining crack spreads, higher refinery utilization, crude oil and diesel exports to the United States and import and blending opportunities in eastern Canada. In addition, Parkland continues to capture synergies from prior acquisitions, including the repatriation of previously exported volumes into the British Columbia market, refinery efficiencies, infrastructure optimization, economies of scale benefits and other supply initiatives. Parkland’s recently opened supply and distribution office in Houston enables Parkland to participate more effectively in global markets to support our Caribbean and US business and is integral to our supply advantage. Offsetting the increase in Adjusted EBITDA was slightly higher operating costs at the Burnaby refinery due to a third party natural gas pipeline interruption and pre-spend for the 2020 turnaround.
  • Refining margins in the quarter were driven by strong refining crack spreads and high utilization rates. For the first two months of the quarter, crack spreads were primarily driven by planned and unplanned refinery outages along the west coast of the United States. In addition, Elbow River Marketing was successful in realizing opportunities to increase crude exports to the United States.
  • Refinery utilization, which measures the amount of crude oil processed and converted to products in the Burnaby Refinery, was 94.9% for the second quarter, compared to 90.9% for Q2 2018, which was lower due to the turnaround at the Burnaby refinery.
  • We continue to successfully co-process biofeeds (tallow and canola) at the Burnaby refinery, which helps us meet provincial and federal climate regulations and establishes Parkland as a leader in low-carbon fuel refining.

Corporate Segment Highlights

  • The Corporate segment includes centralized administrative services and expenses incurred to support operations. Second quarter Adjusted EBITDA was negative $30 million (Pre-IFRS 16: negative $31 million). Marketing, general and administrative expenses increased by $2 million compared to Q2 2018, but as a percentage of total adjusted gross profit, favorably decreased to 4.0% (down from 5.3% in Q2 2018). Parkland’s objective is to manage corporate expenses tightly so that they increase at a slower pace than Parkland’s adjusted gross profit.


Consolidated Financial Overview

($ millions, unless otherwise noted) Three months ended June 30, Six months ended June 30,
2019 2018 2017 2019 2018 2017
Financial Summary
Sales and operating revenue 4,854 3,783 1,806 9,069 7,125 3,591
Adjusted gross profit(1) 728 513 168 1,425 943 359
Adjusted EBITDA including non-controlling interest (”NCI”) 370 249 54 709 402 124
Adjusted EBITDA attributable to NCI 24 48
Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1) 346 249 54 661 402 124
Net earnings (loss) 111 60 (1 ) 202 80 21
Net earnings (loss) attributable to:
Parkland 105 60 (1 ) 182 80 21
NCI 6 20
Net earnings (loss) per share ($ per share)
Per share – basic 0.72 0.45 (0.01 ) 1.25 0.61 0.20
Per share – diluted 0.70 0.45 (0.01 ) 1.22 0.60 0.20
Distributable cash flow(2) 168 118 23 293 147 61
Per share(2)(3) 1.14 0.89 0.20 2.01 1.12 0.59
Adjusted distributable cash flow(2) 156 139 39 293 249 85
Per share(2)(3) 1.06 1.05 0.35 2.01 1.89 0.82
Dividends 45 41 33 88 79 61
Dividends declared per share outstanding 0.2985 0.2934 0.2886 0.5936 0.5836 0.5738
Dividend payout ratio(2) 27 % 35 % 146 % 30 % 54 % 99 %
Adjusted dividend payout ratio(2) 29 % 29 % 84 % 30 % 32 % 71 %
Total assets 9,104 5,592 4,281 9,104 5,592 4,281
Total long-term liabilities 4,958 2,533 2,075 4,958 2,533 2,075
Shares outstanding (millions) 147 132 130 147 132 130
Weighted average number of common shares (millions) 147 132 111 146 132 104
Operating Summary
Fuel and petroleum product volume (million litres)(4) 5,525 4,202 2,588 10,861 8,413 5,344
Fuel and petroleum product adjusted gross profit(2) (cpl)(5)(7)
Canada Retail 6.75 8.00 5.78 7.15 7.94 5.53
Canada Commercial(6) 7.29 8.08 9.25 9.05 11.59
USA 5.08 3.66 4.83 3.66 3.43
International 10.71 11.27
Refinery utilization(7) 94.9 % 90.9 % % 93.5 % 62.2 % %

(1) Measure of segment profit. See Section 13 of the Q2 2019 MD&A.
(2) Non-GAAP financial measure. See Section 13 of the Q2 2019 MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Canada Retail and Canada Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 13 of the Q2 2019 MD&A.
(6) For comparative purposes, fuel and petroleum product volume, and sales and operating revenue for the three and six months ended June 30, 2018 were restated due to a change in segment presentation, resulting from a reclassification of the wholesale business from the Canada Commercial segment to the Supply segment, reflecting a change in organizational structure in the second quarter of 2019.
(7) Key performance indicator. See Sections 4 and 13 of the Q2 2019 MD&A.

The following table outlines the impact of IFRS 16 on Adjusted EBITDA as reported for the three and six months ended June 30, 2019:

Three months ended June 30, Six months ended June 30,
($ millions) 2019 2018 2019 2018
Adjusted EBITDA as reported IFRS 16 Impact Pre-IFRS 16 Amount(1) Adjusted EBITDA as reported Adjusted EBITDA as reported IFRS 16 Impact Pre-IFRS 16 Amount(1) Adjusted EBITDA as reported
Canada Retail 63 (6 ) 57 82 136 (11 ) 125 151
Canada Commercial 10 (2 ) 8 18 54 (3 ) 51 56
USA 13 (1 ) 12 5 24 (1 ) 23 9
Supply 216 (7 ) 209 170 359 (13 ) 346 241
International 74 (14 ) 60 145 (28 ) 117
Corporate (30 ) (1 ) (31 ) (26 ) (57 ) (2 ) (59 ) (55 )
Consolidated 346 (31 ) 315 249 661 (58 ) 603 402

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

Updated 2019 Outlook & Guidance Range

Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently.

Our 2019 Guidance for Adjusted EBITDA attributable to Parkland, which includes the impact of IFRS 16, is increased by $100 million to $1,165 million with an anticipated variance of up to 5% (the “2019 Guidance Range”). The increase in our 2019 Guidance Range reflects our strong performance in the Supply, International and USA segments, continued synergy capture across the portfolio, a conservative outlook for retail fuel margins and lower activity levels for the Commercial segment.

In addition, the Company continues to expect approximately $200 million of growth capital expenditures and $200 million of maintenance capital expenditures in 2019. We have identified additional growth capital opportunities within the Sol business which will be evaluated for investment later in the year.

The 2019 Guidance Range includes some other key assumptions highlighted below:

  • Includes Sol’s Adjusted EBITDA that is attributable to Parkland, now forecast above initial expectations
  • Burnaby refining margins forecast is based on our view of future market conditions
  • The performance of recently acquired businesses, general market conditions, including but not limited to fuel margins and weather, will remain substantially consistent for the remainder of 2019
  • The low end of our 2019 Guidance Range accounts for potential adverse market conditions across our areas of operations, as well as the potential for lower refining margins than currently observable, while the high end of our 2019 Guidance Range accounts for greater than expected contributions from acquisition synergies, refining margins and organic growth

In addition, the factors and assumptions which contribute to Parkland’s assessment of the 2019 Guidance Range are consistent with existing Parkland disclosure and such guidance range is subject to risks and uncertainties inherent in Parkland’s business. Readers are directed to the “Risk Factors” section in the Q2 2019 MD&A and the Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Friday, August 2, 2019 at 6:30am MST (8:30am EST) to discuss the results.

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

https://event.on24.com/wcc/r/2050152/33EA5040C6B8F9BB492A319582DB696A

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: 65159943). International participants can call 1-587-880-2175 (toll) (Conference ID: 65159943).

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 2019 MD&A and Q2 2019 FS provide a detailed explanation of Parkland’s operating results for the three and six months ended June 30, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, cash flow growth, run-rate synergies, private label program expansion, fuel volume growth, new business objectives, organic growth initiatives, growth of supply and trading business in the U.S. and Caribbean, Adjusted EBITDA Guidance, capital and maintenance expenditure forecasts, contribution of the Sol business and other previous acquisitions, strategic marketing and operational efforts to increase fuel volume, expected launch of marketing and loyalty programs, U.S. growth opportunities, and supply improvement and optimization and plans and objectives of or involving Parkland.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q2 2019 MD&A and annual MD&A dated February 28, 2019, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

Non-GAAP Financial Measures

This news release refers to certain non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards (”IFRS”). Distributable cash flow, distributable cash flow per share, adjusted distributable cash flow, adjusted distributable cash flow per share, total funded debt to credit facility EBITDA ratio, dividend payout ratio and adjusted dividend payout ratio are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland’s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. See Section 13 of the Q2 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q2 2019 MD&A and Note 20 of the Q2 2019 FS for a reconciliation of these measures of segment profit. Annual synergies is a forecasted annualized measure and is considered to be forward-looking information. See Section 13 of the Q2 2019 MD&A. 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q2 2019 FS and Q2 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

About Parkland Fuel Corporation

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

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

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Parkland Fuel Corporation Announces the Results of the 2019 Annual General Meeting of Shareholders

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

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

Nominee Votes For %For Votes Withheld %Withheld
John F. Bechtold 103,302,674 99.33% 695,848 0.67%
Lisa Colnett 103,731,193 99.74% 267,329 0.26%
Robert Espey 103,799,639 99.81% 198,883 0.19%
Timothy Hogarth 103,372,069 99.40% 626,453 0.60%
Jim Pantelidis 101,180,405 97.29% 2,818,117 2.71%
Domenic Pilla 103,893,980 99.90% 104,542 0.10%
Steven Richardson 103,791,234 99.80% 207,288 0.20%
David A. Spencer 103,727,846 99.74% 270,676 0.26%
Deborah Stein 103,786,664 99.80% 211,858 0.20%

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

Votes For 103,714,046 99.68%
Votes Withheld 330,147 0.32%
Total 104,044,193

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

Votes For 96,725,902 93.01%
Votes Against 7,272,620 6.99%
Total 103,998,522

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.

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Parkland Fuel Corporation Announces Record 2019 First Quarter Results

CaribPR Wire, CALGARY, Alberta, May 01, 2019: Parkland Fuel Corporation, (”Parkland”, “We”, the “Company”, or “Our”) (TSX:PKI) announced today the financial and operating results for the three months ended March 31, 2019 (”Q1 2019″). All financial figures are expressed in Canadian dollars unless otherwise noted.

“Parkland had a very strong start for 2019,” said Bob Espey, President and Chief Executive Officer. “As demonstrated by our KPI’s, the Parkland team delivered another standout quarter of growth on the back of disciplined execution, a robust marketing and logistics environment and healthy refining margins. This was also the first quarter with our new International business, and we are very pleased with the results to date.

2019 marks a significant milestone in the history of Parkland, as the Company celebrates its 50th anniversary as a publicly traded company. Parkland began as a single retail gas station in Red Deer, Alberta, and today supplies or owns over 2,600 retail sites across our operations. We are proud to service retail, commercial and wholesale customers throughout Canada, the United States, the Caribbean region and the Americas. I would like to thank the entire Parkland team for their hard work and continued focus on safety to deliver another strong quarter.”

Parkland also announces that Mike McMillan, Senior Vice President and Chief Financial Officer, has decided to move back to Ontario where he can spend more time with his family. The Company will immediately begin a search process to replace Mike, and he has agreed to support us until a successor has been named and an appropriate transition period is completed.

“Mike has made exceptional contributions during his ten years with Parkland,” said Mr. Espey. “As CFO since 2015, his responsible stewardship of the Company’s financial position has allowed Parkland to execute on its growth strategy and deliver outstanding results. Mike has been instrumental in numerous initiatives across the Company, including supporting acquisition and integration efforts and driving synergies. On behalf of the Board of Directors, and all of his colleagues at Parkland, I thank Mike for his commitment to our success and offer my very best wishes in his future endeavors.”

Q1 2019 Highlights

  • On January 1, 2019, Parkland adopted IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 increases Adjusted EBITDA by reducing operating costs and increasing depreciation, amortization, and finance and other costs. IFRS 16 also increases Parkland’s assets and liabilities and has no overall impact to cash flow. Refer to the Q1 2019 Interim Condensed Consolidated Financial Statements (”Q1 2019 FS”) and Q1 2019 Management’s Discussion and Analysis (”Q1 2019 MD&A”) for further information.
  • First quarter Adjusted EBITDA was $315 million and net earnings attributable to Parkland were $77 million ($0.53 per share, basic). Excluding the impact of IFRS 16, Parkland’s Adjusted EBITDA was $288 million, and net earnings were $80 million. This exceptional performance was primarily driven by additional contributions from the Sol Transaction (as defined herein), strong Supply results as a result of the 2018 Turnaround in the first quarter of 2018 (”Q1 2018″) and continued efforts in executing Parkland’s supply strategy.
  • First quarter fuel and petroleum product volume was 5.3 billion litres, compared to 4.2 billion litres in Q1 2018. The increase was primarily driven by incremental volumes from the Sol Transaction.
  • First quarter Adjusted distributable cash flow increased by $25 million to $135 million ($0.93 per share), resulting in an Adjusted dividend payout ratio of 32%. Adjusted distributable cash flow is a non-GAAP measure, which we have amended to remove the impact of IFRS 16 such that this metric is comparable year over year.
  • Growth capital expenditures were $29 million and maintenance capital expenditures were $50 million. Combined growth and maintenance capital expenditures attributable to Parkland decreased $7 million compared to Q1 2018. First quarter capital expenditures reflects the addition of our new International segment and higher Canada Retail and Commercial growth investments, offset by lower maintenance expenditures related to a turnaround at the Burnaby refinery last year.
  • Total Funded Debt to Credit Facility EBITDA ratio of 2.7 times as at March 31, 2019.
  • We continue to expect that annual run-rate synergies on the Ultramar and Chevron acquisitions in 2017 will reach approximately $180 million by the end of 2020.
  • Subsequent to the quarter, Parkland successfully completed the second and final phase of the Chevron Transitional Services Agreement (”TSA”). Parkland converted the Enterprise Resource Planning (”ERP”) system used in the Supply segment of the Chevron business to Parkland’s ERP system on April 1, 2019.
  • In the first quarter, Parkland opened a Houston office which supports its growing supply and trading business in the U.S. and Caribbean markets.

Canada Retail Highlights

  • First quarter Adjusted EBITDA was $73 million (Pre-IFRS 16: $68 million), driven by strong volume growth and convenience store sales, offset by weaker gasoline margins in most provinces. Excluding the impact of IFRS 16, Adjusted EBITDA was relatively flat compared the same period in 2018.
  • First quarter Company Volume same-store-sales growth (”SSSG”) was 1.4%, demonstrating the success of our network development planning strategy which focuses on high growth areas, along with strategic marketing and operational efforts to increase volume.
  • First quarter Company C-Store SSSG was 6.0%, our 13th consecutive quarter of positive Company C-Store SSSG. Growth was seen across all merchandise categories and was attributable to strong field level execution and the successful implementation of the On the Run / Marché Express store concepts, Parkland’s proprietary private label brand 59th Street Food Co., and higher forecourt to backcourt conversion rates.
  • We continued to evolve our retail site composition, converting approximately 40 Company Owned, Company Operated (”COCO”) sites to Company Owned, Retailer Operated (”CORO”) sites in the quarter. As of March 31, 2019, we have approximately 50 COCO sites remaining to convert in 2019.
  • We retrofitted 12 existing On the Run / Marché Express locations and constructed one new-to-industry (”NTI”) locations in the first quarter. We are now offering 28 “59th Street Food Co.” products at select locations and are encouraged by pilot market results from our “Journie” loyalty program. We continue to plan for a Q4 2019 roll out of our Journie program across our Canadian portfolio.

Canada Commercial Highlights

  • First quarter Adjusted EBITDA was $44 million (Pre-IFRS 16: $43 million), driven by strong fuel margins on cardlock, propane, and furnace oil (particularly in Ontario and Quebec), and lower operating costs. Excluding the impact of IFRS 16, Adjusted EBITDA increased by $5 million compared to the same period in 2018.
  • First quarter fuel and petroleum product volume decreased 9% relative to Q1 2018, primarily due to margin improvement initiatives which decreased volume, but increased gross profit.
  • We continue to evolve our customer value proposition by leveraging an integrated offering of delivered diesel and lubricants, propane, home heat and cardlock road diesel across the country.

USA Highlights

  • First quarter Adjusted EBITDA was $11 million (the impact of IFRS 16 was negligible), driven by strong lubricant margins and our focus on driving new business, growing organically and managing costs. Adjusted EBITDA increased by $7 million compared the same period in 2018, primarily due to the acquisition of all of the issued and outstanding equity interests of Rhinehart Oil Co., LLC and its affiliates (the “Rhinehart Acquisition”) in 2018.
  • First quarter fuel and petroleum product volume was 331 million litres, an increase of 112 million litres compared to the same period in 2018. The increase was primarily due to the Rhinehart Acquisition and organic growth initiatives.
  • The US remains our highest growth potential area and we will continue to evaluate opportunities in this market as they arise.

International Highlights

  • Parkland successfully completed the acquisition of 75% of the outstanding shares of Sol Investments Limited (collectively, with its subsidiaries “Sol”) on January 8, 2019 (the “Sol Transaction”). Business continuity through the transition phase has been our key focus and is proceeding as planned.
  • First quarter Adjusted EBITDA was $71 million (Pre-IFRS 16: $57 million), which reflects Parkland’s 75% ownership in Sol. The performance was driven by strong fundamentals in the Eastern Caribbean and South American markets. We are encouraged by our first quarter with the new International segment and results have been tracking in-line with our expectations.
  • First quarter Fuel and petroleum product volume was 1,063 million litres, consisting of 424 million litres sold through retail channels and 639 million litres sold through commercial and wholesale channels.
  • The volumes and Adjusted EBITDA of the Eastern, Western, Spanish and French Caribbean are expected to be higher in the first and fourth quarters of the year during tourism high season. South America’s volumes and Adjusted EBITDA are expected to be influenced by activity in the natural resource industries. Adjusted EBITDA results may further be partly influenced by fluctuations in supply cost and weather.
  • The first quarter with the Sol portfolio has reinforced our thesis for the acquisition. The business has strong local teams, fortress assets with unique regional scale, and significant growth potential in several business lines such as LPG, Aviation, Retail, Commercial and Wholesale. We continue to expect approximately $42 million of annual run-rate synergies (attributable to Parkland based on its 75% share of the Sol business) by the end of 2021.

Supply Highlights

  • First quarter Adjusted EBITDA was $143 million (Pre-IFRS 16: $137 million), driven by profitable supply sourcing initiatives, propane marketing and strong refining margins near the end of the quarter. Excluding the impact of IFRS 16, Adjusted EBITDA increased by $66 million compared to Q1 2018, which was lower due to the turnaround at the Burnaby refinery. Parkland continues to drive ongoing cost improvements in our storage and distribution operations as part of our supply advantage strategy.
  • Refinery utilization, which measures the amount of crude oil processed and converted to products in the Burnaby Refinery, was 92.0% for the first quarter, compared to 33.2% for Q1 2018 which was lower due to the turnaround at the Burnaby refinery.

Corporate Segment Highlights

  • First quarter Adjusted EBITDA was negative $27 million (Pre-IFRS 16: negative $28 million). Marketing, general and administrative expenses were relatively flat compared to Q1 2018, and as a percentage of total adjusted gross profit, favorably decreased to 3.9% (down from 6.0% in Q1 2018). Parkland’s objective is to manage corporate expenses tightly so that they increase at a slower pace than Parkland’s adjusted gross profit.


Consolidated Financial Overview

($ millions, unless otherwise noted) Three months ended March 31,
2019 2018 2017
Financial Summary
Sales and operating revenue 4,215 3,342 1,765
Adjusted gross profit(1) 697 430 191
Adjusted EBITDA including non-controlling interest (”NCI”) 339 153 70
Adjusted EBITDA attributable to NCI 24
Adjusted EBITDA attributable to Parkland (”Adjusted EBITDA”)(1) 315 153 70
Net earnings 91 20 22
Net earnings attributable to:
Parkland 77 20 22
NCI 14
Net earnings per share ($ per share)
Per share – basic 0.53 0.15 0.23
Per share – diluted 0.52 0.15 0.22
Distributable cash flow(2) 122 29 38
Per share(2)(3) 0.84 0.22 0.40
Adjusted distributable cash flow(2) 135 110 46
Per share(2)(3) 0.93 0.84 0.48
Dividends 43 38 28
Dividends declared per share outstanding 0.2951 0.2902 0.2852
Dividend payout ratio(2) 35 % 131 % 72 %
Adjusted dividend payout ratio(2) 32 % 35 % 60 %
Total assets 8,998 5,492 2,469
Total long-term liabilities 5,108 2,524 690
Shares outstanding (millions) 146 132 97
Weighted average number of common shares (millions) 145 131 96
Operating Summary
Fuel and petroleum product volume (million litres)(4) 5,336 4,211 2,756
Fuel and petroleum product adjusted gross profit(2) (cpl)(5)(7)
Canada Retail 7.59 7.88 5.25
Canada Commercial(6) 7.91 6.74 7.11
USA 4.53 3.65 3.58
International 11.95
Refinery utilization(3) 92.0 % 33.2 % %

(1) Measure of segment profit. See Section 13 of the MD&A.
(2) Non-GAAP financial measure. See Section 13 of the MD&A.
(3) Calculated using the weighted average number of common shares.
(4) Fuel and petroleum product volume represents external volumes only. Intersegment volumes, including volumes produced by the Burnaby Refinery and transferred to the Canada Retail and Canada Commercial segments, are excluded from this reported volume.
(5) “cpl” stands for cents-per-litre and is a key performance indicator. See Section 13 of the MD&A.
(6) For comparative purposes, fuel and petroleum product volume, and sales and operating revenue for the three months ended March 31, 2018 were restated due to a change in segment presentation, resulting from a reclassification of wholesale customers from the Supply segment to the Canada Commercial segment, reflecting a change in organizational structure in 2019.
(7) Key performance indicator. See Sections 4 and 13 of the MD&A.

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

For the three months ended March 31, 2019
2019 2018
Adjusted
EBITDA as
reported

IFRS 16
Impact

Pre-IFRS
16
Amount(1)

Adjusted
EBITDA as
reported
Canada Retail 73 (5 ) 68 69
Canada Commercial 44 (1 ) 43 38
USA 11 11 4
Supply 143 (6 ) 137 71
International 71 (14 ) 57
Corporate (27 ) (1 ) (28 ) (29 )
Consolidated 315 (27 ) 288 153

(1) Pre-IFRS 16 amounts are comparable to the reported information in Q1 2018, which was calculated under IAS 17.


2019 Outlook & Guidance Range

Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently. Our 2019 Guidance for Adjusted EBITDA attributable to Parkland, prior to the impact of IFRS 16, remains $960 million with anticipated variance of up to 5 percent.

The Adjusted EBITDA impact of adopting IFRS 16 was $27 million during Q1 2019 and is expected to be approximately $105 million for full-year 2019. As a result, our 2019 Guidance for Adjusted EBITDA attributable to Parkland, including the impact of IFRS 16, is $1,065 million with an anticipated variance of up to 5% (the “2019 Guidance Range”). Our Q1 2019 results give us a high level of confidence in our 2019 Guidance Range.

In addition, the Company continues to expect approximately $200 million of growth capital expenditures and $200 million of maintenance capital expenditures in 2019.

The 2019 Guidance Range includes some key assumptions highlighted below:

  • Includes the 75% of Sol’s Adjusted EBITDA that is attributable to Parkland
  • Burnaby refining margins forecast is based on our view of future market conditions
  • The performance of recently acquired businesses, general market conditions, including but not limited to fuel margins and weather, will remain substantially consistent for the remainder of 2019
  • The low end of our 2019 Guidance Range accounts for potential adverse market conditions across our areas of operations, as well as the potential for lower refining margins than currently observable, while the high end of our 2019 Guidance Range accounts for greater than expected contributions from acquisition synergies, refining margins and organic growth

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

Conference Call and Webcast Details

Parkland will host a webcast and conference call on Thursday, May 2, 2019 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://event.on24.com/wcc/r/1985616/DF7D3C78C608DF8C797A716E1CE5B7A1

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: 86334895). International participants can call 1-587-880-2175 (toll) (Conference ID: 86334895).

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.

Annual General Meeting

Parkland Fuel Corporation’s 2019 Annual General Meeting (”AGM”) will be held on Thursday, May 2, 2019 at 9:00am MDT at the Metropolitan Conference Centre in Calgary, Alberta. This year’s AGM will mark a significant milestone in the history of Parkland, as the Company celebrates its 50th anniversary as a publicly traded company.

MD&A and Consolidated Financial Statements

The Q1 2019 MD&A and Q1 2019 FS provide a detailed explanation of Parkland’s operating results for the three months ended March 31, 2019. An English version of these documents will be available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland’s profile at www.sedar.com. French Financial Statements and MD&A will be posted to www.parkland.ca and SEDAR as soon as they become available.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, cash flow growth, run-rate synergies, private label program expansion, fuel volume growth, new business objectives, organic growth initiatives, growth of supply and trading business in the U.S. and Caribbean, Adjusted EBITDA Guidance, capital and maintenance expenditure forecasts, contribution of the Sol business and 2018 U.S. acquisitions, strategic marketing and operational efforts to increase fuel volume, expected launch of marketing and loyalty programs, forecast crack spreads and refining margins, U.S. growth opportunities, seasonal EBITDA and volume projections, and supply improvement and optimization and plans and objectives of or involving Parkland.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 27, 2019 and in “Forward-Looking Information” and “Risk Factors” in the Q1 2019 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.

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, 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 its industries. See Section 13 of the Q1 2019 MD&A for a discussion of non-GAAP measures and their reconciliations to the nearest applicable IFRS measure.

Adjusted EBITDA and adjusted gross profit are measures of segment profit. See Section 13 of the Q1 2019 MD&A and Note 20 of the Q1 2019 FS for a reconciliation of these measures of segment profit. Annual Synergies is an annualized measure and is considered to be forward-looking information. See Section 10 of the Q1 2019 MD&A. Investors are encouraged to evaluate each measure and the reasons Parkland considers it appropriate for supplemental analysis.

Effective January 1, 2019, Parkland adopted the new accounting standard, IFRS 16 – Leases (”IFRS 16″). The adoption of IFRS 16 has a significant effect on Parkland’s reported results. Due to Parkland’s selected transition method, it has not restated its prior year comparatives. Certain financial statement measures are presented excluding the impact of IFRS 16 (”Pre-IFRS 16 measures”). Refer to the Q1 2019 FS and Q1 2019 MD&A for reconciliations of Pre-IFRS 16 measures.

Investors are cautioned, however, 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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.

Click Here for More Information »