Company Announcements

CALGARY, AB , Sept. 3, 2024 /CNW/ - Parkland Corporation ("Parkland" or the "Company") today announced that it is initiating a process to divest its Florida-based retail and commercial businesses.

This announcement represents the continued execution of Parkland's strategy. Consistent with its strategy laid out in November 2023, the Company expects to double cash flow per share¹ to $8.50 and grow Adjusted EBITDA¹ to $2.5 billion by 2028 through continued organic growth, lowering costs and optimizing its supply advantage.

"This disposition reflects our commitment to direct capital towards our highest return opportunities and maximize shareholder value," said Bob Espey, President and CEO, Parkland. "We remain deeply committed to our northern US business, which is performing well and has strong connectivity with Canada."

Parkland continuously reviews all parts of its portfolio. While its Florida improvement plan is on track, the Company has more accretive investment opportunities in other parts of its business that can deliver stronger financial returns and growth.

Parkland remains focused on improving returns and increasing cash flow through disciplined capital allocation. By divesting non-core assets, the Company continues to focus on areas with the highest growth potential and strongest synergies with its core business.

Parkland's Florida business comprises approximately 100 retail locations, nine cardlock facilities and four bulk storage plants and warehouses. Early indications show substantial interest in our Florida assets, and we expect to complete this disposition within the next 12 to 18 months.

The announced sale of Parkland's Florida business is part of the Company's previously announced non-core asset divestment program which the Company now expects will significantly exceed $500 million by the end of 2025.

The Company expects to close the previously announced sale of its Canadian propane business in the fourth quarter of 2024. This disposition includes estimated cash proceeds of $115 million and an exclusive long-term supply contract with the new owner.

About Parkland Corporation 

Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. We serve over one million customers each day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with industrial fuels so that they can better serve their customers. In addition to meeting our customers' needs for essential fuels, we provide a range of choices to help them lower their environmental impact. These include renewable fuels sourcing, manufacturing, and blending, carbon and renewables trading, solar power, and ultra-fast EV charging. With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.

Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers, cultivating their loyalty through proprietary brands, differentiated offers, our extensive network, competitive pricing, reliable service, and our compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community, and respect, which are deeply embedded across our organization.

Forward-Looking Statements

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 "aim", "continue", "focus", "will", "would" 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: Parkland's plan to divest its Florida-based retail and commercial businesses, the process relating thereto and the completion and timing thereof; executing Parkland's corporate strategy; Parkland doubling its available cash flow per share to $8.50 by 2028 (the "Available cash flow per share Ambition") and growing its Adjusted EBITDA to $2.5 billion by 2028 (the "Adjusted EBITDA Ambition"); Parkland's commitment to direct capital towards its highest return opportunities and maximize shareholder value; Parkland's commitment to its northern US business; accretive investment opportunities and expectations relating thereto; Parkland's focus on improving returns, increasing cash flow and areas with the highest growth potential and strongest synergies; Parkland's non-core asset divestment program and expectations relating thereto; completing the sale of Parkland's Canadian propane business on the terms relating thereto and the timing thereof; and Parkland's Customer Advantage and Supply Advantage.

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 laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: general economic, market and business conditions; Parkland's ability to execute its business strategy; Parkland's ability to identify buyers and complete divestments on terms reasonable to Parkland and in a timely manner; future accretive investments opportunities; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" in Parkland's current Annual Information Form and under the headings "Forward-Looking Information" and "Risk Factors" in Parkland's Management's Discussion and Analysis for the most recently completed financial period ("Q2 2024 MD&A"), each as filed on SEDAR+ at www.sedarplus.ca and available on Parkland's website at www.parkland.ca. The Available cash flow per share Ambition and Adjusted EBITDA Ambition assume continued organic growth from growth capital expenditures in line with historical returns, synergy capture from previously completed acquisitions, identified cost efficiencies, potential acquisitions (not identified, but reflective of expected market returns and similar to expected returns from organic growth initiatives), major planned turnarounds at Parkland's refinery in Burnaby, British Columbia in 2025 and 2028, interest rates on long term bank debt and corporate bonds as set out in our latest financial statements, with any maturing debts set to retire in the interim periods extended at current prevailing market rates, income taxes at expected corporate income tax rates, including the impact of Pilar II legislation, and the key material assumptions and risks include: ongoing operations without any material economic, legal, environmental or income tax changes and per share metrics impacted by share repurchases, with the assumption that the outstanding common shares do not change materially. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Specified Financial Measures This news release refers to certain non-GAAP financial measures and ratios, total of segments measures and supplementary financial measures (collectively "specified financial measures"). Available cash flow is a non-GAAP financial measure; Available cash flow per share and Available cash flow per share Ambition are non-GAAP financial ratios; Adjusted EBITDA is a total of segments measure; and Adjusted EBITDA Ambition is a supplementary financial measure, all of which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures used by other issuers who may calculate these measures differently. See Section 16 of the Q2 2024 MD&A for a discussion of Adjusted EBITDA, Available cash flow and Available cash flow per share and, where applicable, their reconciliations to the nearest IFRS measures, which is hereby incorporated by reference into this news release and available on Parkland's profile on SEDAR+ at www.sedarplus.ca. Investors are cautioned that these measures should not be construed as an alternative to net earnings (loss), cash generated from (used in) operating activities, or other directly comparable financial measures determined in accordance with IFRS as an indication of Parkland's performance. Adjusted EBITDA Ambition is the forward-looking metric of the historical measure of Adjusted EBITDA for 2028. Available cash flow per share Ambition is the forward-looking metric of the historical measures of Available cash flow and Available cash flow per share for 2028.

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SOURCE Parkland Corporation