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Parkland Fuel Corporation Reports Record Q4 and 2016 Results and Announces 2017 Guidance


RED DEER, Alberta--(BUSINESS WIRE)--March 2, 2017 -- 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 twelve months ended December 31, 2016. All financial figures are expressed in Canadian dollars.

Parkland delivers record Adjusted EBITDA of $77.1 million in Q4 and $253.5 million in 2016 and demonstrates the ability to consistently produce strong results for our shareholders through our strategic plan to grow organically, deliver a supply advantage and acquire prudently. In 2016, we continued to invest in acquisitions of businesses, which helped us build scale and synergies, while continuing to drive organic growth through our relentless focus on customer service, said Bob Espey, President and Chief Executive Officer at Parkland. Parkland has also announced 2017 Adjusted EBITDA guidance of $255 million to $285 million (2017 Guidance Range), see Additional Guidance Considerations section below.

In August 2016, Parkland announced that it had entered into an agreement with Alimentation Couche-Tard Inc. to acquire the majority of the Canadian business and assets of CST Brands, Inc. (the CST Acquisition). Parkland anticipates the CST Acquisition will now close in Q2 2017 due to a second information request in connection with the US Federal Trade Commission on-going review of Alimentation Couche-Tard Inc.'s acquisition of CST Brands, Inc.

Parkland has also announced its annualized common share dividend will increase two cents per share, from $1.134 to $1.154, effective with the monthly dividend payable on April 13, 2017 to shareholders of record at the close of business on March 22, 2017.



  • Parkland delivered 19% growth in Q4 Adjusted EBITDA compared to Q4 2015, driven by growth in all of Parkland's operating segments, including 21% growth in Supply and Wholesale, 15% growth in Retail Fuels, and 5% growth in Commercial Fuels.
  • Parkland delivered 18% growth in annual Adjusted EBITDA compared to 2015, driven by growth of 39% in Retail Fuels and 25% in Supply and Wholesale, partially offset by a 19% decline in Commercial Fuels, mainly due to lower economic activity in Western Canada and warm weather.
  • A record 10.4 billion litres of fuel and petroleum products was delivered in 2016, representing 8% growth compared to 2015, which was led by growth in the Supply and Wholesale and Retail Fuels segments.
  • Company C-Store same-store sales growth in 2016 in Retail Fuels was 3.8%.
  • In the fourth quarter of 2016, Commercial Fuels delivered 50% more propane than Q4 2015 due to organic growth, several propane-related business acquisitions and comparatively colder weather.


  • Parkland's Supply and Wholesale team continued to drive and support further growth, maintaining a commitment to ongoing improvements to our cost of supply as demonstrated by their 25% improvement in Adjusted EBITDA compared to 2015.
  • Parkland completed the expansion of a transloading facility in Hamilton, Ontario, which is expected to continue to optimize supply, enhance capacity and increase capability in Parkland's distribution network.


  • In 2016, Parkland saw a year of strong acquisition activities, investing $89.2 million in acquisitions that expand our retail presence in Canada and the US and propane business in Canada.
  • Parkland announced our largest acquisition to date with the agreement to acquire the majority of the Canadian business and assets of CST Brands, Inc.
  • On October 5, 2016, Parkland closed the acquisition of the On the Run/Marché Express convenience store franchise system and related trademarks in Canada, providing a strong retail platform for Parkland to expand and support the Parkland Retail Fuels offering across Canada.
  • Parkland continued its successful track record of seamlessly integrating acquisitions and maximizing synergies, led by the Pioneer acquisition that continues to track ahead of plan.



The Q4 2016 Management's Discussion and Analysis (Q4 2016 MD&A) and Parkland Fuel Corporation's audited consolidated financial statements for the year ended December 31, 2016 (the Annual Consolidated Financial Statements) provide a detailed explanation of Parkland's operating results for the three and twelve months ended December 31, 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 6:30 a.m. MST (8:30 a.m. EST) on Friday, March 3, 2017 to discuss the results for the three and twelve months ended December 31, 2016.

To access the conference call by telephone, dial toll-free 1-844-889-7784 [Conference ID: 67278167]. 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

English and French Financial Statements and Management's Discussion and Analysis will be posted to and SEDAR immediately after the results are released by newswire.


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, 2017 Guidance Range, the closing of the CST Acquisition and the timing thereof, the factors and assumptions that contribute to Parkland's 2017 Guidance Range, 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 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 2017 Guidance Range, failure to close the CST Acquisition on the terms negotiated or at all, failure to achieve the anticipated benefits of acquisitions (including the CST Acquisition), failure to obtain necessary regulatory or other third-party consents and approvals required to complete announced acquisitions, failure to complete announced acquisitions, 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

Additional Guidance Considerations

The 2017 Guidance Range includes growth scenarios that build off the 2016 Adjusted EBITDA of $253.5 million and the assumption that general market conditions, including but not limited to fuel margins and weather, will remain the same in 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%. The 2017 Guidance Range does not account for the CST Acquisition.

Other than as disclosed above, the factors and assumptions which contribute to Parkland's assessment of the 2017 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 Q4 2016 MD&A and Parkland's Annual Information Form for a description of such factors, assumptions, risks and uncertainties.

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, 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 Section 6 of the Q4 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 Section 12 of the Q4 2016 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 Q4 2016 MD&A and Note 24 of the Annual 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.


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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Ben Brooks
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Director, Corporate Communications

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