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Parkland Fuel Corporation Achieves Record Third Quarter Adjusted EBITDA of $96.4M

CALGARY, Alberta, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Parkland Fuel Corporation (“Parkland”) (TSX:PKI) announced today the financial and operating results for the three and nine months ended September 30, 2017. All financial figures are expressed in Canadian dollars.

“Our third quarter results show strong growth throughout our base business, as well as an extremely successful first quarter of operations from our newly acquired Ultramar business. The Parkland team delivered strong third quarter results with synergy and integration plans tracking ahead of schedule,” said Bob Espey, President and Chief Executive Officer. “It has been a transformational year at Parkland, having closed our two largest acquisitions to date in the last four months. I am very pleased to welcome both the Chevron and Ultramar teams to Parkland.”

As a result of the closing of Parkland's acquisition of Chevron Canada R & M ULC ("CCRM") which operates a downstream fuel business in British Columbia and Alberta ("Chevron Acquisition") on October 1, 2017, Parkland has increased its 2017 Adjusted EBITDA guidance to $350 million to $390 million (“Revised 2017 Guidance Range”), see Additional Revised Guidance Considerations section below.



  • Parkland achieved a record third quarter Adjusted EBITDA of $96.4 million, driven by the successful acquisition of the majority of the Canadian business and assets of CST Brands, Inc. ("Ultramar Business Acquisition"), strong organic growth and performance in the base businesses across all segments.
  • We achieved a 33.8% growth in volume, delivering approximately 3.6 billion litres of fuel and petroleum products in the third quarter of 2017. The volume increase was driven by the successful acquisition of the Ultramar Business Acquisition, as well as strong organic growth in propane volumes in our Commercial Fuels segment and increased gas and diesel volumes in Parkland USA.
  • Retail Fuels achieved outstanding Company C-Store same-store sales growth of 4.1% during the third quarter of 2017 as a result of strong national category management, promotion planning and focused execution on converting forecourt fuel sales to backcourt C-Store sales.
  • Parkland developed a newly refreshed On The Run / Marché Express store concept and is currently in the process of testing retro-fit concepts in key national markets.
  • Parkland developed a new private label brand, "59th Street Food Co," which will be launched and available at select Parkland locations in the fourth quarter of 2017.


  • Parkland continues to drive improved supply economics with demonstrated growth of 4% in Adjusted EBITDA in Supply and Wholesale due to continued focus on executing our supply strategy.
  • The Parkland Supply and Wholesale team is pleased to welcome the Burnaby Refinery team to Parkland as it looks to expand and optimize supply capabilities within the British Columbia region as part of Parkland's long-term supply advantage strategy.


  • On October 1, 2017, Parkland successfully completed the Chevron Acquisition.
  • Parkland completed its first full quarter of operations following the addition of the Ultramar Business Acquisition on June 28, 2017 and delivered strong performance throughout this business. Integration efforts throughout the operations and back office are progressing ahead of plan, while synergies are tracking ahead of schedule and are expected to include some supply synergies going forward.
($ millions, unless otherwise noted)Three months ended September 30,Nine months ended September 30,
Financial Summary      
Sales and operating revenue2,600.6  1,638.1  1,862.2  6,191.3  4,526.0  4,643.8  
Adjusted gross profit(1)266.3  171.1  167.0  624.9  510.5  445.2  
Adjusted EBITDA(1)96.4  60.3  59.1  220.0  176.4  150.3  
Net earnings12.7  14.7  14.6  33.3  44.2  23.8  
Per share – basic0.10  0.15  0.16  0.30  0.47  0.28  
Per share – diluted0.10  0.15  0.16  0.29  0.46  0.28  
Distributable cash flow(2)46.2  27.8  29.2  107.2  91.0  74.5  
Per share(2)(3)0.35  0.29  0.32  0.95  0.96  0.87  
Adjusted distributable cash flow(2)65.3  33.2  34.6  150.2  109.4  95.6  
Per share(2)(3)0.50  0.35  0.38  1.33  1.15  1.12  
Dividends38.4  27.7  25.4  98.9  81.6  72.2  
Per share outstanding0.29  0.29  0.28  0.76  0.85  0.80  
Dividend payout ratio(2)83% 99% 87% 92% 90% 97% 
Adjusted dividend payout ratio(2)59% 83% 73% 66% 75% 76% 
Total assets4,825.1  2,424.0  1,836.9  4,825.1  2,424.0  1,836.9  
Total long-term liabilities2,325.7  633.6  598.4  2,325.7  633.6  598.4  
Shares outstanding (millions)130.7  95.9  90.8  130.7  95.9  90.8  
Weighted average number of
  common shares (millions)
130.5  95.6  90.4  112.7  95.0  85.6  
Operating Summary      
Fuel and petroleum product volume
  (million litres)
3,556.6  2,658.6  2,730.6  8,900.9  7,631.8  6,999.5  
Fuel and petroleum product adjusted
  gross profit(1) (cpl):
Retail Fuels7.10  5.69  5.63  6.28  5.51  5.34  
Commercial Fuels6.71  8.64  8.89  9.48  10.94  11.33  
Parkland USA2.97  3.26  3.34  3.27  3.41  3.36  
Operating costs (cpl)3.42  2.80  2.71  3.21  2.99  2.87  
Marketing, general and administrative (cpl)1.37  1.38  1.26  1.35  1.40  1.37  

(1) Measure of segment profit. See Section 12 of the MD&A.
(2) Non-GAAP financial measure. See Section 12 of the MD&A.
(3) Calculated using the weighted average number of common shares.


The Q3 2017 Management’s Discussion and Analysis (“Q3 2017 MD&A”) and Parkland Fuel Corporation’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2017 (the “Interim Consolidated Financial Statements”) provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2017. These documents are available online at and SEDAR immediately after the results are released by newswire under Parkland’s profile at


Parkland will host a webcast and conference call at 6:30 a.m. MST (8:30 a.m. EST) on Friday, November 3, 2017 to discuss the results for the three and nine months ended September 30, 2017.

To access the conference call by telephone, dial toll-free 1-844-889-7784 [Conference ID: 9199089]. The webcast slide presentation can be accessed at 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. It will remain available at the link above for one year and will also be posted to


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’’, “well positioned,” ‘‘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, Revised 2017 Guidance Range, the factors and assumptions that contribute to Parkland’s 2017 Revised Guidance Range, business objectives and growth strategies, the strength of Parkland’s balance sheet and financial condition, sources of growth, future acquisitions Parkland's ability to effect synergies, capital expenditures, the anticipated benefits and accretive effects of closed, announced and/or future acquisitions, contribution of Distributable Cash Flow per Share from acquisitions, and plans and objectives of or involving Parkland.

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 results in the Revised 2017 Guidance Range, failure to achieve the anticipated benefits of acquisitions (including but not limited to the Ultramar Business Acquisition and Chevron Acquisition), 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 increases in taxes, 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 the “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 31, 2017, as filed on SEDAR and available on Parkland’s website at

Revised 2017 Adjusted EBITDA guidance considerations
The Revised 2017 Adjusted EBITDA guidance of $350 million to $390 million includes growth scenarios that build off the 2016 Adjusted EBITDA of $253.5 million and adds Adjusted EBITDA based on Parkland management's estimate of how the businesses acquired as part of the Ultramar Business Acquisition and Chevron Acquisition will perform with such estimates based on prior performance of such businesses. The Revised 2017 Adjusted EBITDA guidance is also based on the assumption that general market conditions, including but not limited to fuel margins, will remain substantially consistent for the remainder of 2017. Additionally, the lower end of range accounts for potential adverse market conditions in Western Canada and the Northern U.S. and the higher range accounts for contributions from synergies relating to prior acquisitions and Parkland achieving its previously disclosed average annual organic growth goal of 3-5%. Refer to this press release and Parkland’s press release issued on March 2, 2017 and August 2, 2017 on SEDAR at for more information.

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, Adjusted Dividend Payout Ratio, and Fuel and Petroleum Product Adjusted Gross Profit are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these measures 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 6 of the Q3 2017 MD&A for a reconciliation of distributable cash flow to cash flow from operating activities, the IFRS measure most directly comparable to distributable cash flow. See Section 12 of the Q3 2017 MD&A for a discussion of non-GAAP measures and their reconciliations.

Adjusted EBITDA and Adjusted Gross Profit are measures of segment profit. See Section 12 of the Q3 2017 MD&A and Note 14 of the Interim Consolidated Financial Statements for a reconciliation of these measures of segment profit. Investors are encouraged to evaluate each adjustment and the reasons Parkland considers it appropriate for supplemental analysis.

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.


Headquartered in Calgary, Alberta, Parkland is Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products.  Parkland delivers refined fuels and high quality petroleum products through three channels:  Retail Fuels, Commercial Fuels and Supply and Wholesale.  As the nation’s second largest convenience store operator, Parkland prides itself on being able to deliver competitive product offerings to our customers in the retail segment.  As the proud owner of the Parkland Burnaby Refinery, Parkland also maintains a portfolio of supply relationships, storage infrastructure, and third-party rail and highway carriers to ensure security of supply to our customers.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, delivering a supply advantage and acquiring prudently. 

Parkland Fuel Corporation is listed on the Toronto Stock Exchange and trades under the symbol PKI.  For more information, visit


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Ben Brooks   
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Director, Corporate Communications

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