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Parkland Fuel Corporation Reports Q3 Adjusted Ebitda Of $60.4 Million

Parkland’s strong base business met management’s expectations and it reconfirms guidance of $235 to $265 million in Adjusted EBITDA

Parkland delivers $60.4 Adjusted EBITDA and 2.7 billion litres in volume in Q3 2016

Red Deer, Alberta (November 3, 2016) – Parkland Fuel Corporation (“Parkland”) (TSX:PKI), Canada's largest and one of North America's fastest growing independent marketers of fuel and petroleum products, announced today the financial and operating results for the three and nine months ended September 30, 2016. All financial figures are expressed in Canadian dollars.

“Parkland delivered its quarterly plan by achieving $60.4 million in Adjusted EBITDA this quarter, compared to $59.1M in Q3 2015,” said Bob Espey, President and Chief Executive Officer of Parkland. “Our results were primarily driven by our Supply and Wholesale and Retail Fuels segments, both demonstrating growth this quarter, which helped to offset the continued softness in economic activity in Western Canada and the Bakken region in the U.S. Volumes were down slightly due to softer wholesale volume, especially in our U.S. division. With the value that geographic, customer and product diversity contributes to our business and our team’s exceptional efforts, we remain confident in our ability to deliver our 2016 guidance of $235 to $265 million in Adjusted EBITDA.”



  • Parkland’s Retail Fuels division opened its first Québec site in La Prairie, QC and its first integrated Fas Gas and On the Run/Marché Express retail site in Hinton, AB.
  • The Retail Fuels team continues to drive strong organic growth in convenience stores with Q3 same-store sales growth of 3% nationally and 10.4% in the East while overlapping Parkland’s ownership of Pioneer. This continues to demonstrate Parkland’s ability to drive exceptional execution of our marketing and merchandising programs.
  • Retail Net Unit Operating Cost ("NUOC") has seen a continuous improvement in the last twelve months post-acquisition of Pioneer Energy as a result of successful cost control initiatives.
  • Parkland’s Commercial Fuels team remains focused on gaining market share and managing costs. Commercial Fuels signed 20 million litres of new onsite refueling business in Western Canada and has renewed its agreement with the Canadian Forces Exchange System (CANEX), which represents over 6,500 residential home heating accounts across Canada.
  • The Commercial Fuels team continues to deliver on the expected volume of over 100 million litres of annual propane volume that was awarded to Parkland in Q1 2016. Commercial Fuels invested in two sites in the West for a cost of $1.0 million on a year to date basis and has installed over 3,000 new propane tanks in order to deliver on this increase in propane volume. The revenue associated with this propane supply will be realized by Parkland in the upcoming quarters.
  • Marketing, general and administrative expenses increased by $1.7 million in the third quarter due to a non-cash Deferred Share Units (DSU) revaluation expense on outstanding DSUs to reflect growth in Parkland’s share price.


  • In the third quarter of 2016, Parkland welcomed David Wade as the new Senior Vice President of Supply and Wholesale. David is an established business executive with international experience in sales, marketing, trading, as well as supply and logistics.
  • The Supply and Wholesale team continues to drive and support further growth, maintaining a commitment to ongoing improvements to our cost of supply as demonstrated by their 32% improvement in segment Adjusted EBITDA despite slightly lower volume compared to Q3 2015. As noted in the August 4, 2016 press release, improved overall economics are expected to position Parkland well in the future. Elbow River Marketing strategically executed on arbitrage opportunities, particularly in its Liquid Petroleum Gas and Crude, Asphalt and Fuel Oil portfolios.

  • On August 22, 2016, Parkland announced an agreement to acquire the majority of the Canadian business and assets of CST Brands, Inc. This highly accretive acquisition extends Parkland’s network coverage with a premier fuel network in Québec and Atlantic Canada and enhances Parkland’s presence in Ontario. We expect pre-synergy accretion of over 20% to Distributable Free Cash Flow per Share on a trailing-twelve-months basis as at June 30, 2016. The Acquisition allows Parkland to add the Ultramar brand to its portfolio, which is one of the most recognized retail fuel brands in Québec and Atlantic Canada.
  • On September 2, 2016, Parkland closed the previously announced acquisition of the business and assets of Stony Propane Ltd. Pursuant to this acquisition, Parkland is now servicing new residential and commercial customers under the Bluewave Energy banner in Edmonton and surrounding area.
  • Subsequent to the quarter:
    • On October 5, 2016, Parkland closed the previously announced acquisition of On the Run/Marché Express from Imperial Oil.
    • On October 12, 2016, Parkland signed an agreement to acquire the business and assets of The Propane Guys for $4.5 million representing approximately 5.9 times the annualized Adjusted EBITDA of the business. The Propane Guys specializes in residential, commercial and industrial propane supply and equipment rentals to customers in the Saskatoon, Saskatchewan area. This addition will allow Parkland to continue to grow its propane offering in Saskatchewan and complements its existing commercial operations by leveraging The Propane Guys’ strong service and tank rental offering.
    • On October 27, 2016, Parkland announced it signed an agreement to purchase the assets and operations of PNE Corporation, a national provider of propane cylinder exchange services for $17 million. The acquisition will add approximately 17 million litres of propane on an annual basis and will expand the scope of Parkland’s propane business to include a national 20-pound cylinder exchange offering in addition to a 33- and 100-pound cylinder offering in Ontario.
    • On October 27, 2016, Parkland announced it signed an agreement to acquire three sites from 7-Eleven Inc. These sites include two truck stops and one retail station in and around Cheyenne, Wyoming in the southeast part of the state. Collectively, these stations are expected to sell more than 15 million gallons (55 million litres) of volume on an annual basis.



The Q3 2016 Management’s Discussion and Analysis and the Interim Condensed Consolidated Financial Statements provide a detailed explanation of Parkland’s operating results for the three and nine months ended September 30, 2016. 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 6:00 a.m. MST (8:00 a.m. EST) on Friday, November 4, 2016, to discuss the results for the three and nine months ended September 30, 2016.

To access the conference call by telephone, dial toll-free 1-844-889-7784 [Conference ID: 98746396]. 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 at the link above. It will remain available at the link above for one year and will also be posted to

A link to the live webcast will be available on the Investors section of Parkland’s website:

If you are unable to participate in the call, an instant replay will be available by dialing 1-855-859-2056, Conference ID: 98746396 (Canada, USA and International toll-free). This instant replay will be available until November 7, 2016, after which the presentation can be viewed at the webcast link above.


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, business objectives and growth strategies, the strength of Parkland’s balance sheet and financial condition, sources of growth, future acquisitions, 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 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, failure to achieve the anticipated benefits of acquisitions, failure to obtain necessary regulatory or other third-party consents and approvals required to complete announced acquisitions, failure to complete announced 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 “Forward-Looking Statements” and “Risk Factors” included in Parkland’s Annual Information Form dated March 30, 2016, as filed on SEDAR and available on Parkland’s website at

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, Dividend Payout Ratio, Adjusted Dividend Payout Ratio, Fuel and Petroleum Product Adjusted Gross Profit, and Adjusted Marketing, General and Administrative expenses 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 ‘‘Distributable Cash Flow” in Parkland’s September 30, 2016 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 the “Non-GAAP financial measures, reconciliations and advisories” section of the September 30, 2016 MD&A. Adjusted EBITDA and Adjusted Gross Profit are measures of segmented profit See “Note 17 – Segment Information” of the Parkland’s Q3 Interim Condensed Consolidated Financial Statements. 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.


Parkland Fuel Corporation delivers gasoline, diesel, propane, lubricants, heating oil and other high-quality petroleum products to motorists, businesses, households and wholesale customers in Canada and the United States. Our mission is to be the partner of choice for our customers and suppliers, and we do this by building lasting relationships through outstanding service, reliability, safety and professionalism.

We are unique in our ability to provide customers with dependable access to fuel and petroleum products, utilizing a portfolio of supply relationships, storage infrastructure, and third-party rail and highway carriers to rapidly respond to supply disruptions in order to protect our customers.


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