News Americas, CALGARY, Alberta, Can also merely 03, 2021: Parkland Company (“Parkland”, “we”, the “Company”, or “our”) (TSX:PKI) announced as of late its monetary and operating outcomes for the three months ended March 31, 2021 (“Q1 2021”). Highlights encompass:
- Adjusted EBITDA attributable to Parkland (“Adjusted EBITDA”) of $314 million, up 64 p.c year-over-year. No topic persisted COVID-19 impacts, we benefited from lower prices, persisted solid per unit gasoline margins and Company C-retailer same-retailer sales voice (“SSSG”) in Canada, U.S. acquisition voice, solid efficiency in Global and greater utilization on the Burnaby refinery.
- Safe earnings attributable to Parkland of $31 million, or $0.21 per portion, overall, an score better of $110 million relative to prior year.
- Money drift from operations fully funded capital expenditures, acquisitions and rep dividend payments in the quarter.
- Blended Working and Marketing, Total and Administrative (“MG&A”) prices of $331 million, $52 million lower than prior year, reflecting disciplined charge administration and the selection in our charge building.
- Total Funded Debt to Credit Facility EBITDA ratio of three.0 times as of March 31, 2021.
- Additional enhanced monetary flexibility by blueprint of an amended credit facility settlement (maturing 2026) and refinanced senior notes maturing in 2024, 2025 and 2026 with new senior notes maturing in 2029. These actions minimize average annual interest prices by approximately $20 million and lengthen our nearest senior expose maturity to 2027.
“We delivered a solid confide in the year and receive excessive self perception in our 2021 outlook,” acknowledged Bob Espey, President and Chief Govt Officer. “Apart from to solid underlying replace efficiency, we improved our enterprise-extensive organic voice initiatives, announced or closed five transactions, vastly enhanced our monetary flexibility and reduced annual interest prices. We are successfully-positioned to achieve our ambitious voice system and sustainability chase.”
Q1 2021 Segment Highlights
- In Canada, gasoline margins, comfort retailer sales and lower prices in our retail and industrial replace traces drove Adjusted EBITDA of $116 million, up $14 million relative to Q1 2020. Company C-Retailer SSSG became as soon as 5.5 p.c, our 21st consecutive quarter of voice. We maintained retail market portion, benefited from enhanced digital pricing capabilities and surpassed 1.8 million JOURNIE™ Rewards contributors.
- In Global, enhanced logistics, shipping optimization and the persisted obliging thing about charge earn watch over initiatives supported Adjusted EBITDA of $67 million, in-line with Q1 2020. This solid operational execution offset lower tourist process and an approximate $4 million detrimental impact from a weakened U.S. buck.
- In USA, Adjusted EBITDA of $20 million became as soon as up $4 million relative to Q1 2020, taking obliging thing about acquisitions announced valid by blueprint of the fourth quarter of 2020, our growing present advantage and national accounts voice. This became as soon as partly offset by diminished oil and gasoline process in our Northern ROC, lower marine process in the Southeast ROC and a weaker U.S. buck.
- In Present, Adjusted EBITDA of $136 million became as soon as up $94 million relative to Q1 2020, basically driven by Burnaby composite refinery utilization of 91 p.c, (31 p.c in Q1 2020 as a result of scheduled turnaround). Present benefited from co-processing initiatives and mixing optimization on the Burnaby refinery coupled with solid efficiency from our constructed-in logistics replace.
- Corporate Adjusted EBITDA expense of $25 million, down $11 million relative to Q1 2020, driven by lower realized foreign alternate impacts and disciplined charge administration.
$2 billion ambition
Our voice platform is stronger than ever and we receive a confirmed observe narrative of effect introduction. Underpinned by our disciplined blueprint to capital allocation, the principle pillars of our system live traditional to our ambition for $2 billion of flee-charge Adjusted EBITDA by the live of 2025:
Tough pipeline of organic voice opportunities in retail, industrial and present, all the blueprint by blueprint of all our geographies. Organic voice is supported by solid producers, buyer effect proposition, loyalty applications and digital insights.
Gain Prudently & Integrate
Depth of excessive-effective consolidation opportunities all the blueprint by blueprint of all of our geographies. Alongside with our disciplined blueprint, established integration capabilities and synergy hold, we are successfully-positioned to add incremental effect to acquisitions.
Solid Present Profit
Leverage our growing scale, product diversity and capital light infrastructure to red meat up margins. Proceed to put money into gracious and legit operations and renewable gasoline manufacturing at our Burnaby refinery.
Powering journeys and energizing communities by blueprint of our overall values and behaviours. Gain, legitimate and native buyer service underpinned by organizational means and a efficiency driven tradition.
“As we proceed to meet our possibilities’ mobility desires, we watch voice opportunities all the blueprint by blueprint of more than one replace traces and geographies,” added Espey. “Apart from to what has made us a hit over the previous decade, we watch alternative to grow our renewable gasoline replace whereas harnessing our existing network to present electrical vehicle charging choices.”
2021 Investor Day
Parkland will host an investor day the morning of November 16, 2021. The event could possibly be held in Toronto, Ontario (degree of in-person attendance to be particular) and simultaneously webcast with video, for those unable to attend in-person. Members of Parkland’s leadership personnel will present updates on our prolonged-timeframe voice initiatives, renewable gasoline and electrical vehicle charging opportunities, capital allocation and monetary outlook. Registration and diversified primary components could possibly be provided nearer to the date.
Our Sustainability Dash
As we attain our sustainability chase, we are able to present trendy updates on our environmental, social and governance efforts as portion of our fashioned disclosure process. Recent highlights encompass:
- Belief to post our subsequent Sustainability characterize in Q4 2021. This disclosure will develop upon our inaugural characterize and could possibly aloof receive an outline of our enterprise-extensive sustainability system, including GHG emissions reduction targets.
- Continued to score better our renewable gasoline manufacturing means on the Burnaby refinery, co-processing a narrative 25 million litres of bio-feedstocks valid by blueprint of the quarter. We are now on route with our 2021 co-processing aim of 100 million litres (the same carry out of taking on 80,000 passenger vehicles off the road).
- On March 1, 2021, we launched a ‘carbon offset’ reward chance as portion of our JOURNIE™ Rewards program to attend our possibilities offset their very receive emissions. Within the principle 30 days, over 23,000 Carbon offsets were selected by JOURNIE™ contributors with the value directed against a landfill gasoline hold and utilization finishing up in Niagara, Ontario, eradicating the the same of bigger than 3,000 tons of CO2 from the ambiance. This finishing up helps develop more healthy communities and promotes sustainable administration of greenhouse gases.
- Parkland is committed to diversity in any admire ranges of the group. The Board of Directors has adopted a written diversity protection which sets a aim for females to prefer no longer lower than 30 p.c of Board seats and govt officer positions by 2023, and 2025, respectively. Girls for the time being prefer 22 p.c of Board seats and 20 p.c of govt officer positions.
- In January 2021, we carried out the acquisition of two Midwest U.S. LPG terminals to score better our constructed-in logistics replace and red meat up our overall LPG present optionality.
- In February 2021, we carried out the acquisition of the resources of Tale Distributing Company and its affiliates (collectively “Tale”). Tale is a retail and industrial gasoline replace basically basically basically based in Bozeman, Montana, which expands our presence in the Montana and Idaho-basically basically basically based markets.
- In March 2021, we carried out the acquisition of a residential and industrial LPG distributor in St. Maarten which extra supports our LPG voice system in the Global section.
- In April 2021, we carried out the acquisition of Conrad & Bischoff Inc. and its connected firms (collectively, “C&B”). This acquisition establishes our fourth U.S. ROC, strengthens our present advantage and adds a excessive-effective retail network to our portfolio. Please watch our press liberate dated February 26, 2021 for more knowledge in the case of the acquisition.
- In April 2021, we signed an settlement for the purchase of an aviation replace and connected infrastructure with operations in Puerto Rico. The acquisition entails operations at two Global airports in Puerto Rico, including the Luis Munoz Marin Global Airport, which is the busiest in the Caribbean put of abode. This acquisition expands our presence in the successfully-various Puerto Rico market and unlocks determined network effects for our regional aviation portfolio. The transaction is predicted to discontinuance by the live of the 2d quarter of 2021.
Consolidated Monetary Overview
|($ millions, unless otherwise famed)||Three months ended March 31,|
|Sales and operating earnings(1)||4,233||4,316||4,215|
|Gasoline and petroleum product quantity (million litres)(1)||5,536||5,908||5,336|
|Adjusted immoral profit(2)||665||593||697|
|Adjusted EBITDA including non-controlling interest (“NCI”)||337||214||339|
|Adjusted EBITDA attributable to Parkland (“Adjusted EBITDA”)(2)||314||191||315|
|Safe earnings (loss)||38||(74||)||91|
|Safe earnings (loss) attributable to Parkland||31||(79||)||77|
|Safe earnings (loss) per portion – overall ($ per portion)||0.21||(0.53||)||0.53|
|Safe earnings (loss) per portion – diluted ($ per portion)||0.20||(0.53||)||0.52|
|Weighted average collection of overall shares (million shares)||150||148||145|
|Non-most modern monetary liabilities||4,311||4,376||4,269|
(1) Obvious portions inside sales and operating earnings and gasoline and petroleum product volumes were restated and reclassified to evolve to the presentation dilapidated in basically the most modern period.
(2) Measure of section profit and Non-GAAP monetary measures. Search for Allotment 14 of the MD&A.
(3) For comparative capabilities, knowledge for the year ended December 31, 2019 became as soon as restated due to a replace in section presentation. Canada Retail and Canada Commercial, formerly provided individually as person segments, and the Canadian distribution replace, formerly provided in Present, are truly included in Canada, reflecting a replace in organizational building in 2020.
(4) For comparative capabilities, knowledge for old courses became as soon as restated due to a replace in section presentation. The present and procuring and selling replace in the USA, formerly provided in the Present section, is now included in the USA section, reflecting a replace in organizational building in the principle three months of 2021.
Convention Call and Webcast Facts
Parkland will host a webcast and conference name on Tuesday, Can also merely 4, at 6: 30am MDT (8: 30am EDT) to focus on the outcomes. To listen to the stay webcast and perceive the presentation, please employ the following hyperlink:
Analysts and institutional investors drawn to taking piece in the inquire of and reply session of the conference name could possibly moreover carry out so by calling 1-888-390-0605 (toll-free) (Convention ID: 83343797). Global participants can name 1-587-880-2171 (toll) (Convention ID: 83343797).
Please join and log in approximately 10 minutes sooner than the open of the resolution.
The webcast could possibly be on hand for replay two hours after the conference name ends on the hyperlink above. This would continue to exist hand for one year and could possibly aloof moreover be posted to www.parkland.ca.
MD&A and Consolidated Monetary Statements
The Q1 2021 MD&A and Q1 2021 Monetary Statements present a detailed explanation of Parkland’s operating outcomes for the three months ended March 31, 2021. An English version of these paperwork could possibly be on hand on-line at www.parkland.ca and SEDAR after the outcomes are launched by newswire beneath Parkland’s profile at www.sedar.com. The Q1 2021 French MD&A and Q1 2021 French Monetary Statements could possibly be posted to www.parkland.ca and SEDAR as soon as they changed into on hand.
Forward-Taking a gain out about Statements
Obvious statements contained in this news liberate portray ahead-making an attempt knowledge and statements (collectively, “ahead-making an attempt statements”). When dilapidated in this news liberate the phrases “inquire”, “will”, “could possibly moreover”, “would”, “take into consideration”, “proceed”, “pursue” and the same expressions are supposed to identify ahead-making an attempt statements. In particular, this news liberate comprises ahead-making an attempt statements with admire to, amongst diversified issues, replace targets and suggestions, Parkland’s ambition to generate flee-charge Adjusted EBITDA of $2 billion by 2025 and the principle strategic pillars underpinning such ambition, Parkland’s 2021 Adjusted EBITDA and maintenance and capital expenditures guidance, anticipated benefits to be derived from acquisitions, doable future acquisition opportunities, doable voice in Parkland’s renewable fuels replace, Parkland’s capability to harness its existing retail network to meet our buyer’s mobility desires, including with admire to electrical vehicle charging choices, Parkland’s sturdy pipeline of organic voice opportunities, doable initiatives to elongate Parkland’s present advantage, anticipated Burnaby refinery utilization charges, and Parkland’s capability to achieve its voice agenda.
These statements involve known and unknown risks, uncertainties and diversified components that will possibly moreover cause real outcomes or events to change materially from those anticipated in such ahead-making an attempt statements. No assurance could possibly be given that these expectations will demonstrate to be perfect and such ahead-making an attempt statements included in this news liberate could possibly moreover aloof no longer be unduly relied upon. These ahead-making an attempt statements focus on easiest as of the date of this news liberate. Parkland doesn’t undertake any obligations to publicly substitute or revise any ahead-making an attempt statements rather than as required by securities regulations. Precise outcomes could possibly moreover differ materially from those anticipated in these ahead-making an attempt statements on legend of various risks, assumptions and uncertainties including, however no longer minute to, overall economic, market and replace stipulations, including the duration and impact of the COVID-19 pandemic; Parkland’s capability to invent its replace suggestions, including without limitation, Parkland’s capability to consistently identify accretive acquisition targets and successfully integrate them, successfully implement organic voice initiatives and to finance such acquisitions and initiatives on affordable terms; Parkland’s capability to grow its present advantage by leveraging its scale and infrastructure; industry means; competitive action by diversified firms; refining and advertising and marketing margins; the flexibility of suppliers to meet commitments; actions by governmental authorities and diversified regulators including however no longer minute to will increase in taxes or restricted salvage admission to to markets; changes and trends in environmental and diversified regulations; and diversified components, many of which could possibly moreover very successfully be previous the earn watch over of Parkland. Search for moreover the hazards and uncertainties described in “Forward-Taking a gain out about Recordsdata” and “Threat Elements” included in Parkland’s Annual Recordsdata Gain dated March 30, 2020, and “Forward-Taking a gain out about Recordsdata” and “Threat Elements” included in the Q1 2021 MD&A dated Can also merely 3, 2021 and the Q4 2020 MD&A dated March 4, 2021, every filed on SEDAR and on hand on the Parkland net page at www.parkland.ca. The ahead-making an attempt statements contained in this news liberate are expressly positive by this cautionary assertion.
Non-GAAP Monetary Measures
This news liberate refers to determined non-GAAP monetary measures that are no longer particular in step with Global Monetary Reporting Standards (“IFRS”). Distributable money drift, distributable money drift per portion, adjusted distributable money drift, adjusted distributable money drift per portion, complete funded debt to credit facility EBITDA ratio, dividend payout ratio, adjusted dividend payout ratio and voice and maintenance capital expenditures attributable to Parkland are no longer measures identified beneath IFRS and carry out no longer receive standardized meanings prescribed by IFRS. Management considers these to be primary supplemental measures of Parkland’s efficiency and believes these measures are continually dilapidated by securities analysts, investors and diversified events in the evaluate of firms in our industry. Search for Allotment 14 of the Q1 2021 MD&A for a dialogue of non-GAAP measures and their reconciliations to the closest appropriate IFRS measure.
Adjusted EBITDA and adjusted immoral profit are measures of section profit. Search for Allotment 9 and Allotment 14 of the Q1 2021 MD&A and Reward 13 of the Q1 2021 FS for a reconciliation of these measures of section profit. Merchants are inspired to receive in suggestions every measure and the causes Parkland considers it acceptable for supplemental analysis.
Apart from to non-GAAP monetary measures, Parkland makes employ of a collection of operational KPIs, equivalent to SSSG and refinery utilization, to measure the success of our strategic targets and to deliver variable compensation targets for workers. These KPIs are no longer accounting measures, carry out no longer receive comparable IFRS measures, and could possibly aloof no longer be equivalent to the same measures provided by diversified issuers, as diversified issuers could possibly moreover calculate these metrics otherwise. Search for Allotment 14 of the Q1 2021 MD&A for extra primary components.
Hundreds CO2 the same eliminated from the ambiance as a result of JOURNIE™ Rewards ‘carbon offset’ reward chance relies totally on 23,000 carbon offset alternate choices at a effect of $3.50 per ton of CO2.
Merchants are cautioned that these measures could possibly moreover aloof no longer be construed as a alternative to rep earnings particular in step with IFRS as an indication of Parkland’s efficiency.
About Parkland Company
Parkland is an self enough vendor and marketer of gasoline and petroleum merchandise and a number one comfort retailer operator. Parkland products and services possibilities all the blueprint by blueprint of Canada, the USA, the Caribbean put of abode and the Americas by blueprint of three channels: Retail, Commercial and Wholesale. Parkland optimizes its gasoline present all the blueprint by blueprint of these three channels by operating and leveraging a growing portfolio of present relationships and storage infrastructure. Parkland offers relied on and in the community connected gasoline producers and luxurious retailer offerings in the communities it serves.
Parkland creates effect for shareholders by focusing on its confirmed system of growing organically, realizing a present advantage and acquiring prudently and integrating successfully. At the core of our system are our of us, apart from our values of safety, integrity, neighborhood and admire, which could possibly moreover very successfully be embraced all the blueprint by blueprint of our group.