Exceptional 2018 Driven by Full Year Contributions From Acquisitions, Strong Supply Performance and Integration Synergies
CALGARY, Alberta, Feb. 28, 2019 (GLOBE NEWSWIRE) -- Parkland Fuel Corporation, ("Parkland", "We", the "Company", or "Our") (TSX:PKI) announced today the financial and operating results for the three months and year ended December 31, 2018. All financial figures are expressed in Canadian dollars unless otherwise noted.
"Parkland continues to deliver strong performance across the enterprise,” said Bob Espey, President and Chief Executive Officer. "A standout fourth quarter in the supply segment underpinned our record results, while continued synergy realization and underlying organic growth initiatives positively contributed. While Parkland benefited from higher than normal refining margins in the fourth quarter, we are focused on driving sustainable and long-term cash flow growth within the ratable portions of our business. I would like to thank the entire Parkland team for their hard work and continued focus on safety to deliver another record year.”
Parkland's annualized common share dividend will increase two cents per share, from $1.174 to $1.194, effective with the monthly dividend payable on April 15, 2019 to shareholders of record at the close of business on March 22, 2019.
Q4 & Full-Year 2018 Highlights
Parkland USA Highlights
Corporate Segment Highlights
Consolidated Financial Overview
|($ millions, unless otherwise noted)||Three months ended December 31,||Year ended December 31,|
|Sales and operating revenue(6)||3,526||3,429||1,740||14,442||9,560||6,266|
|Adjusted gross profit(1)||587||469||197||1,995||1,094||708|
|Per share – basic||0.58||0.37||0.03||1.56||0.70||0.50|
|Per share – diluted||0.57||0.37||0.03||1.53||0.69||0.49|
|Distributable cash flow(2)||151||45||29||416||151||120|
|Adjusted distributable cash flow(2)||175||102||43||568||251||153|
|Dividends declared per share outstanding||0.2934||0.2886||0.2835||1.1704||1.1510||1.1250|
|Dividend payout ratio(2)||27||%||89||%||94||%||38||%||91||%||91||%|
|Adjusted dividend payout ratio(2)||23||%||38||%||64||%||28||%||55||%||71||%|
|Total long-term liabilities||2,750||2,469||692||2,750||2,469||692|
|Shares outstanding (millions)||134||131||96||134||131||96|
|Weighted average number of common shares (millions)||133||131||96||132||117||95|
|Fuel and petroleum product volume (million litres)(4)||4,354||4,432||2,783||16,978||13,333||10,415|
|Fuel and petroleum product adjusted gross profit(1) (cpl)(5):|
(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 Retail and 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, sales and operating revenue and fuel and petroleum product adjusted gross profit (cpl) for the three months ended December 31, 2017 was restated for a reclassification from Commercial to Supply, reflecting a change in customer service delivery structure in 2018.
2019 Outlook & Guidance Range
Parkland will remain focused on its key strategies of organic growth, building a strong supply advantage and acquiring prudently. We will focus our efforts across three areas of operation (Canada, US & International):
Enabled by integrated supply and marketing:
Our 2019 Guidance for Adjusted EBITDA attributable to Parkland is $960 million, with anticipated variance of up to 5 percent ("2019 Guidance Range"). In addition, the Company expects to spend approximately $200 million of maintenance capital expenditures. Our 2019 Guidance Range includes the expected contribution from Parkland's 75% interest in SOL Investments Limited ("SOL") and excludes the impact of adopting IFRS 16 - Leases. Parkland is in the process of assessing the impact of adopting IFRS 16 - Leases, which will be completed and disclosed in the March 31, 2019 Interim Condensed Consolidated Financial Statements and MD&A.
The 2019 Guidance Range includes some key assumptions highlighted below:
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: Q4 2018 & Year-end Results
Parkland will host a webcast and conference call on Friday, March 1, 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:
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: 46696156).
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 www.parkland.ca.
MD&A and Consolidated Financial Statements
The Q4 2018 Management's Discussion and Analysis ("MD&A") and the 2018 Consolidated Financial Statements provide a detailed explanation of Parkland's operating results for the year ended December 31, 2018. 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.
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; Adjusted EBITDA Guidance; capital expenditure forecasts, contribution of the SOL business and 2018 U.S. acquisitions, forecast crack spreads and refining margins; 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 9, 2018 and in "Forward-Looking Information" and "Risk Factors" in the Q4 2018 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 Q4 2018 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 2018 MD&A and Note 24 of the 2018 Consolidated Financial Statements 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 Q4 2018 MD&A. Investors are encouraged to evaluate each measure 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.
ABOUT PARKLAND FUEL CORPORATION
Parkland is Canada and the Caribbean’s largest, and one of America’s fastest growing, independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers in 25 countries 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.
CONTACT: FOR FURTHER INFORMATION Investor Inquiries Brad Monaco Director, Investor Relations 587-997-1447 Brad.Monaco@parkland.ca Media Inquiries Leroy McKinnon Senior Specialist, Corporate Communications 403-567-2573 Leroy.McKinnon@parkland.caReturn to News Release Listing