Parkland Reports 2024 Second Quarter Results
Second quarter Adjusted EBITDA1 of $504 million
Performance demonstrates success of ongoing initiatives and run rate of the business
Board elects
Published Annual Sustainability Report
"I would like to thank the Parkland team for delivering record second quarter results," said
Q2 2024 Highlights
- Adjusted EBITDA of
$504 million , an increase of 7 percent as compared to Q2 2023. - Net earnings of
$70 million ($0.40 per share, basic), a decrease of 10 percent as compared to Q2 2023, and Adjusted earnings2 of$156 million ($0.89 per share, basic), an increase of 20 percent from Q2 2023. - TTM Available cash flow2 of
$831 million ($4.75 per share), an increase of 60 percent from the same period in 2023, and TTM Cash generated from (used in) operating activities3 of$1,612 million ($9.21 per share), a decrease of 13 percent from the same period in 2023, due to favourable non-cash working capital movements in the prior period. - Purchased for cancellation approximately 700,000 Parkland common shares for
$29 million and maintained Leverage Ratio4 of 3.1 times (3.1 times in Q1 2024). - Return on invested capital2 ("ROIC") increased to 9 percent from 7.7 percent for the trailing twelve months ended
June 30, 2024 , as compared to the same period in 2023.
Q2 2024 Segment Highlights
-
Canada delivered Adjusted EBITDA of$172 million , up 15 percent from Q2 2023 ($150 million ). This increase was primarily driven by stronger fuel unit margins and the benefits of our supply advantage, partially offset by the impact of softening industry demand in our retail business. Company same-store volume growth ("Company SSVG)5 was (1.0) percent , compared to 9.3 percent in Q2 2023. Food and Company C-Store SSSG (excluding cigarettes)2 was (0.7) percent, for the second quarter of 2024, compared to 3.1 percent, in Q2 2023. These were primarily driven by economic conditions that have reduced discretionary spending for consumers.Canada delivered Food andCompany C -store revenue of$82 million , consistent with Q2 2023 ($79 million ). - International delivered Adjusted EBITDA of
$182 million , up 8 percent from Q2 2023 ($168 million ). The increase was primarily driven by improved unit fuel margins in the wholesale business, partially offset by lower volumes, and continued strength in the base retail business and the addition of new sites. -
USA delivered Adjusted EBITDA of$49 million , down 34 percent from Q2 2023 ($74 million ). Results reflect lower diesel and gasoline market demand and lower unit fuel margins due to unfavorable commodity price movements. - Refining delivered Adjusted EBITDA of
$121 million , compared to$109 million in Q2 2023. Composite utilization5 at theBurnaby Refinery was 98 percent, including record co-processing volumes of 3,000 barrels per day, compared to 91 percent in Q2 2023. - Consolidated Operating costs and Marketing, general and administrative expenses decreased
$5 million compared to Q2 2023, reflecting ongoing cost-reduction initiatives that have successfully offset the impact of inflationary pressures across the business. - Parkland's total recordable injury frequency rate5 on a trailing-twelve-months basis was 1.21, compared to 0.87 at
June 30, 2023 .
____________________________________ |
1 Total of segments measure. See "Measures of Segment Profit and Total of Segments Measures" section of this news release. |
2 Non-GAAP financial measure or non-GAAP financial ratio. See "Non-GAAP Financial Measures and Ratios" section of this news release. |
3 Supplementary financial measure. See "Supplementary Financial Measures" section of this news release. |
4 Capital management measure. See "Capital Management Measures" section of this news release. |
5 Non-financial measure. See "Non-Financial Measures" section of this news release. |
2024 Guidance
As a result of the unplanned shutdown at the
Governance Update
Parkland's Board of Directors has elected
"It has been a privilege to serve on
"I am honoured to be elected as Chair of the Board and I look forward to building on the strong foundation that has been established," said
2023 Sustainability Report
Today, Parkland published its fifth Sustainability Report, which outlines our refreshed strategy to better reflect the strong connection between environment, social and governance ("ESG") considerations and our corporate strategy. The report highlights the sustainability initiatives underway and our ESG performance for 2023. Among these initiatives are efforts on co-processing low-carbon fuels made from renewable feedstocks, including our plans to grow co-processing to 7,500 barrels per day by 2028; building safer, more diverse, and inclusive work environments; and projects to improve energy efficiency within Parkland's marketing operations.
Parkland's 2023 Sustainability Report can be viewed here : https://www.parkland.ca/sustainability/sustainability-reporting
Consolidated Financial Overview
($ millions, unless otherwise noted) |
Three months ended |
|
Financial Summary |
2024 |
2023 |
Sales and operating revenue |
7,504 |
7,819 |
Adjusted EBITDA(1) |
504 |
470 |
|
172 |
150 |
International(2) |
182 |
168 |
|
49 |
74 |
Refining(2) |
121 |
109 |
Corporate(2) |
(20) |
(31) |
Net earnings (loss) |
70 |
78 |
Net earnings (loss) per share – basic ($ per share) |
0.40 |
0.44 |
Net earnings (loss) per share – diluted ($ per share) |
0.39 |
0.43 |
Trailing-twelve-month ("TTM") Cash generated from (used in) operating activities(3) |
1,612 |
1,868 |
TTM Cash generated from (used in) operating activities per share(3) |
9.21 |
10.99 |
TTM Available cash flow(4) |
831 |
519 |
TTM Available cash flow per share(4) |
4.75 |
3.05 |
TTM Return on invested capital(4) |
9.0 % |
7.7 % |
1 |
Total of segments measure. See "Measures of Segment Profit and Total of Segments Measures" section of this news release. |
2 |
Measure of segment profit (loss). See "Measures of Segment Profit and Total of Segments Measures" section of this news release. |
3 |
Supplementary financial measure. See "Supplementary Financial Measures" section of this news release. |
4 |
Non-GAAP financial measure or non-GAAP financial ratio. See "Non-GAAP Financial Measures and Ratios" section of this news release. |
Q2 2024 Conference Call and Webcast Details
Parkland will host a webcast and conference call on
Analysts and investors interested in participating in the question and answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 41672249). International participants may call 1-800-389-0704 (toll-free) (Conference ID: 41672249).
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 for one year and will also be posted at www.parkland.ca.
MD&A and Interim Condensed Consolidated Financial Statements
The Management's Discussion and Analysis for the three and six months ended
About
Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the
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 herein 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: business strategies, objectives and initiatives; Parkland's revised 2024 Adjusted EBITDA guidance; Parkland's sustainability initiatives, including plans to expand the co-processing capacity of the
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 obligation 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, many of which are beyond the control of Parkland, including, but not limited to: general economic, market and business conditions; Parkland's ability to execute its business strategies, objectives, and initiatives, including the completion, financing and timing thereof, realizing the benefits therefrom, and meeting our targets and commitments relating thereto; realization of the expected impact of the maintenance and refining optimization work completed on the
Specified Financial Measures
This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, "specified financial measures"). Parkland's management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards as issued by the
Non-GAAP Financial Measures and Ratios
Adjusted earnings (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level. The most directly comparable financial measure to Adjusted earnings (loss) and Adjusted earnings (loss) per share is Net earnings (loss).
Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland's operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company's overall performance, as they exclude certain significant items that are not reflective of the Company's underlying business operations.
See Section 16 of the Q2 2024 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss) and Adjusted earnings (loss) per share.
Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and calculation of Adjusted earnings (loss) per share.
|
Three months ended |
|
($ millions, unless otherwise stated) |
2024 |
2023 |
Net earnings (loss) |
70 |
78 |
Add: |
|
|
Acquisition, integration and other costs |
46 |
39 |
(Gain) loss on foreign exchange – unrealized |
4 |
27 |
(Gain) loss on risk management and other – unrealized |
56 |
(11) |
Other (gains) and losses |
(1) |
14 |
Other adjusting items(1) |
8 |
1 |
Tax normalization(2) |
(27) |
(18) |
Adjusted earnings (loss) |
156 |
130 |
Weighted average number of common shares (million shares)(3) |
175 |
176 |
Weighted average number of common shares adjusted for the effects of dilution (million shares)(3) |
177 |
178 |
Adjusted earnings (loss) per share ($ per share) |
|
|
Basic |
0.89 |
0.74 |
Diluted |
0.88 |
0.73 |
1 Other adjusting items for the three months ended |
2 The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign exchange gains and losses, unrealized gains and losses on risk management and other gains and losses on asset disposals, changes in fair value of redemption options, changes in estimates of environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, impairments of non-current assets and debt modifications. The tax impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur. |
3 Weighted average number of common shares is calculated in accordance with Parkland's accounting policy contained in Note 2 of the Annual Consolidated Financial Statements. |
Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. Parkland uses these measures to monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. Available cash flow is calculated as cash generated from (used in) operating activities adjusted for items such as (i) net change in (a) non-cash working capital and (b) other assets and other liabilities, (ii) maintenance capital expenditures, (iii) dividends received from investments in associates and joint ventures, (iv) interest on leases and long-term debt, and (v) payments on principal amounts on leases. Available cash flow per share is calculated as Available cash flow divided by the weighted average number of outstanding common shares. See following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.
|
Three months ended |
Trailing twelve
|
|||
($ millions, unless otherwise noted) |
September |
December |
|
|
|
Cash generated from (used in) operating activities |
528 |
417 |
217 |
450 |
1,612 |
Reverse: Change in other assets and other liabilities |
7 |
(4) |
28 |
3 |
34 |
Reverse: Net change in non-cash working capital related to operating activities |
(14) |
17 |
63 |
(34) |
32 |
Include: Maintenance capital expenditures |
(52) |
(93) |
(59) |
(53) |
(257) |
Include: Dividends received from investments in associates and joint ventures |
4 |
3 |
2 |
8 |
17 |
Include: Interest on leases and long-term debt |
(83) |
(88) |
(85) |
(88) |
(344) |
Include: Payments of principal amount on leases |
(57) |
(71) |
(71) |
(64) |
(255) |
Available cash flow |
333 |
181 |
95 |
222 |
831 |
Weighted average number of common shares (millions)(3) |
|
|
|
|
175 |
TTM Available cash flow per share |
|
|
|
|
4.75 |
|
Three months ended |
Trailing twelve |
|||
($ millions, unless otherwise noted) |
|
|
|
|
|
Cash generated from (used in) operating activities |
404 |
629 |
314 |
521 |
1,868 |
Exclude: Adjusted EBITDA attributable to NCI, net of tax |
(11) |
— |
— |
— |
(11) |
|
393 |
629 |
314 |
521 |
1,857 |
Reverse: Change in other assets and other liabilities |
23 |
(23) |
11 |
(11) |
— |
Reverse: Net change in non-cash working capital related to operating activities(1) |
(132) |
(232) |
18 |
(145) |
(491) |
Include: Maintenance capital expenditures(2) |
(62) |
(118) |
(79) |
(61) |
(320) |
Include: Dividends received from investments in associates and joint ventures |
5 |
— |
16 |
2 |
23 |
Include: Interest on leases and long-term debt |
(76) |
(86) |
(92) |
(89) |
(343) |
Include: Payments on principal amount on leases |
(50) |
(52) |
(51) |
(56) |
(209) |
Exclude: Payments on principal amount on leases attributable to NCI |
2 |
— |
— |
— |
2 |
Available cash flow |
103 |
118 |
137 |
161 |
519 |
Weighted average number of common shares (millions)(3) |
|
|
|
|
170 |
TTM Available cash flow per share |
|
|
|
|
3.05 |
1 |
For comparative purposes, certain amounts within net change in non-cash working capital related to operating activities for the three months ended |
2 |
For the three months ended |
3 |
Weighted average number of common shares is calculated in accordance with Parkland's accounting policy contained in Note 2 of the Annual Consolidated Financial Statements. |
Return on invested capital ("ROIC") is a non-GAAP financial ratio. The measure is calculated as a ratio of Net operating profit after tax ("NOPAT") divided by average invested capital. NOPAT describes the profitability of Parkland's base operations, excluding the impact of leverage and certain other items of income and expenditure that are not considered representative of Parkland's underlying core operating performance. NOPAT is based on Adjusted EBITDA, defined in Section 16 of the Q2 2024 MD&A, less depreciation expense and the estimated tax expense using the expected average tax rate estimated using statutory tax rates in each jurisdiction where Parkland operates. Average invested capital is the amount of capital deployed by Parkland that represents the average of opening and closing debt and shareholder's equity, including equity reserves, net of cash and cash equivalents. We use this non-GAAP measure to assess Parkland's efficiency in investing capital.
($ millions, unless otherwise noted) |
Three months ended |
Trailing twelve |
|||
ROIC |
|
|
|
|
|
Net earnings (loss) |
230 |
86 |
(5) |
70 |
381 |
Add/(less): |
|
|
|
|
|
Income tax expense (recovery) |
54 |
(15) |
(29) |
20 |
30 |
Acquisition, integration and other costs |
38 |
42 |
30 |
46 |
156 |
Depreciation and amortization |
205 |
222 |
206 |
202 |
835 |
Finance cost |
93 |
89 |
91 |
99 |
372 |
(Gain) loss on foreign exchange - unrealized |
1 |
— |
3 |
4 |
8 |
(Gain) loss on risk management and other - unrealized |
(19) |
28 |
11 |
56 |
76 |
Other (gains) and losses |
(37) |
5 |
10 |
(1) |
(23) |
Other adjusting items |
20 |
6 |
10 |
8 |
44 |
Adjusted EBITDA |
585 |
463 |
327 |
504 |
1,879 |
Less: Depreciation |
(205) |
(222) |
(206) |
(202) |
(835) |
Adjusted EBIT |
380 |
241 |
121 |
302 |
1,044 |
Average effective tax rate(1) |
|
|
|
|
19.9 % |
Less: Taxes |
|
|
|
|
(208) |
Net operating profit after tax |
|
|
|
|
836 |
Opening invested capital |
|
|
|
|
9,191 |
Closing invested capital |
|
|
|
|
9,310 |
Average invested capital |
|
|
|
|
9,251 |
Return on invested capital |
|
|
|
|
9.0 % |
(1) |
Includes the impact of Pillar Two rules substantively enacted in |
($ millions, unless otherwise noted) |
|
|
Invested capital |
||
Long-term debt - current portion |
213 |
178 |
Long-term debt |
6,275 |
6,278 |
Shareholders' equity |
3,138 |
3,080 |
Exclude: Cash and cash equivalents |
(316) |
(345) |
Total |
9,310 |
9,191 |
($ millions, unless otherwise noted) |
Three months ended |
Trailing twelve |
|||
ROIC |
|
|
|
|
|
Net earnings |
118 |
69 |
77 |
78 |
342 |
Add/(less): |
|
|
|
|
|
Income tax expense (recovery) |
(2) |
22 |
(20) |
18 |
18 |
Acquisition, integration and other costs |
45 |
41 |
27 |
39 |
152 |
Depreciation and amortization |
202 |
212 |
190 |
206 |
810 |
Finance cost |
87 |
94 |
104 |
98 |
383 |
(Gain) loss on foreign exchange - unrealized |
(16) |
8 |
7 |
27 |
26 |
(Gain) loss on risk management and other - unrealized |
(1) |
9 |
(32) |
(11) |
(35) |
Other (gains) and losses |
(88) |
(21) |
21 |
14 |
(74) |
Other adjusting items |
(5) |
21 |
21 |
1 |
38 |
Adjusted EBITDA(1) |
340 |
455 |
395 |
470 |
1,660 |
Less: Depreciation |
(202) |
(212) |
(190) |
(206) |
(810) |
Adjusted EBIT |
138 |
243 |
205 |
264 |
850 |
Average effective tax rate |
|
|
|
|
17.0 % |
Less: Taxes |
|
|
|
|
(145) |
Net operating profit after tax |
|
|
|
|
705 |
Opening invested capital |
|
|
|
|
9,065 |
Closing invested capital |
|
|
|
|
9,191 |
Average invested capital |
|
|
|
|
9,128 |
Return on invested capital |
|
|
|
|
7.7 % |
(1) |
For the three months ended |
($ millions, unless otherwise noted) |
|
|
Invested capital |
||
Long-term debt - current portion |
178 |
143 |
Long-term debt |
6,278 |
6,494 |
Shareholders' equity |
3,080 |
2,445 |
Sol Put Option |
— |
646 |
Exclude: Cash and cash equivalents |
(345) |
(663) |
Total |
9,191 |
9,065 |
Food and Company C-Store SSSG is a non-GAAP financial ratio and refers to the period-over-period sales growth generated by retail food and convenience stores at the same Company sites. The effects of opening and closing stores, temporary closures (including closures for On the Run / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models in the period are excluded to derive a comparable same-store metric. Same-store sales growth is a metric commonly used in the retail industry that provides meaningful information to investors in assessing the health and strength of Parkland's brands and retail network, which ultimately impacts financial performance. The most directly comparable financial measure to Food and Company C-Store SSSG is food and convenience store revenue within sales and operating revenue.
Below is a reconciliation of convenience store revenue (Food and C-Store revenue) for the
|
Three months ended |
||
($ millions, unless otherwise noted) |
2024 |
2023 |
%(1) |
Food and Company C-Store revenue |
82 |
79 |
|
Add: |
|
|
|
Point-of-sale ("POS") value of goods and services sold at Food and Company C-Store operated by retailers and franchisees(2) |
305 |
316 |
|
Less: |
|
|
|
Rental and royalty income from retailers, franchisees and other(3) |
(63) |
(64) |
|
Same Store revenue adjustments(4) (excluding cigarettes) |
(16) |
(15) |
|
Food and Company C-Store same-store sales (including cigarettes) |
308 |
316 |
(3.0) % |
Less: |
|
|
|
Same Store revenue adjustments(4) (cigarettes) |
(105) |
(114) |
|
Food and Company C-Store same-store sales (excluding cigarettes) |
203 |
202 |
(0.7) % |
|
Three months ended |
||
($ millions, unless otherwise noted) |
2023 |
2022 |
%(1) |
Food and Company C-Store revenue |
79 |
102 |
|
Add: |
|
|
|
Point-of-sale ("POS") value of goods and services sold at Food and Company C-Store operated by retailers(2) |
316 |
256 |
|
Less: |
|
|
|
Rental income from retailers and other(3) |
(64) |
(52) |
|
Same Store revenue adjustments(4)(5) (excluding cigarettes) |
(34) |
(16) |
|
Food and Company C-Store same-store sales (including cigarettes) |
297 |
290 |
2.5 % |
Less: |
|
|
|
Same Store revenue adjustments(4)(5) (cigarettes) |
(104) |
(103) |
|
Food and Company C-Store same-store sales (excluding cigarettes) |
193 |
187 |
3.1 % |
(1) |
Percentages are calculated based on actual amounts and are impacted by rounding. |
(2) |
POS values used to calculate Food and Company C-Store SSSG are not a Parkland financial measure and do not form part of Parkland's consolidated financial statements as Parkland earns rental income from retailers in the form of a percentage rent on convenience store sales. POS values are calculated based on the information obtained from Parkland's POS systems at retail sites, including transactional data, such as sales, costs and volumes, which are subject to internal controls over financial reporting. We also use this data to calculate rental income from retailers in the form of a percentage rent on convenience store sales, which is recorded as revenue in our consolidated financial statements. |
(3) |
Includes rental income from retailers in the form of a percentage rent on Food and Company C-Store sales, royalty, franchisee fees and excludes revenues from automated teller machine, POS system licensing fees, and other. |
(4) |
This adjustment excludes the effects of acquisitions, opening and closing stores, temporary closures (including closures for On the Run / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models, to derive a comparable same-store metric. |
(5) |
Excludes sales from acquisitions completed within the year as these will not impact the metric until after the completion of one year of the acquisitions when the sales or volume generated establish the baseline for these metrics. |
The non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Except as otherwise indicated, these non-GAAP measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 16 of the Q2 2024 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland's non-GAAP financial measures and ratios.
Capital Management Measures
Parkland's primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland's overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. In order to manage its financing requirements, Parkland may adjust capital spending or dividends paid to shareholders, or issue new shares or new debt. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS Accounting Standards. It is therefore unlikely to be comparable to similar measures presented by other companies. The detailed calculation of Leverage Ratio is as follows:
($ millions, unless otherwise noted) |
|
|
|
Leverage Debt |
4,976 |
5,208 |
5,193 |
Leverage EBITDA |
1,780 |
1,657 |
1,674 |
Leverage Ratio |
2.8 |
3.1 |
3.1 |
($ millions, unless otherwise noted) |
|
|
|
Long-term debt |
6,358 |
6,630 |
6,488 |
Less: |
|
|
|
Lease obligations |
(1,048) |
(1,084) |
(1,062) |
Cash and cash equivalents |
(387) |
(393) |
(316) |
Cash and cash equivalents classified as held for sale |
— |
— |
(20) |
Non-recourse debt(1) |
— |
(3) |
— |
Add: |
|
|
|
Non-recourse cash(1) |
— |
5 |
15 |
Letters of credit and other |
53 |
53 |
88 |
Leverage Debt |
4,976 |
5,208 |
5,193 |
(1) |
Represents Non-recourse debt and Cash and cash equivalents balances attributable to project financing. |
|
Three months ended |
Trailing twelve |
|||
($ millions, unless otherwise noted) |
September |
|
|
|
|
Adjusted EBITDA |
585 |
463 |
327 |
504 |
1,879 |
Share incentive compensation |
5 |
11 |
6 |
8 |
30 |
Reverse: IFRS 16 impact(1) |
(71) |
(82) |
(83) |
(80) |
(316) |
|
519 |
392 |
250 |
432 |
1,593 |
Other adjustments(2) |
|
|
|
|
81 |
Leverage EBITDA |
|
|
|
|
1,674 |
(1) |
Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management's view of the impact of earnings. |
(2) |
Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to unplanned shutdown resulting from extreme cold weather event, third-party power outage and the EBITDA attributable to EV charging operations financed through non-recourse project financing. |
|
Three months ended |
Trailing twelve |
|||
($ millions, unless otherwise noted) |
|
|
|
|
|
Adjusted EBITDA |
470 |
585 |
463 |
327 |
1,845 |
Share incentive compensation |
6 |
5 |
11 |
6 |
28 |
Reverse: IFRS 16 impact(1) |
(68) |
(71) |
(82) |
(83) |
(304) |
|
408 |
519 |
392 |
250 |
1,569 |
Other adjustments(2) |
|
|
|
|
88 |
Leverage EBITDA |
|
|
|
|
1,657 |
(1) |
Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management's view of the impact of earnings. |
(2) |
Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to the completion of turnarounds, unplanned shutdown resulting from extreme cold weather event, third-party power outage and the EBITDA attributable to EV charging operations financed through non-recourse project financing. |
|
Three months ended |
Trailing twelve |
|||
($ millions, unless otherwise noted) |
|
|
|
|
|
Adjusted EBITDA |
395 |
470 |
585 |
463 |
1,913 |
Share incentive compensation |
8 |
6 |
5 |
11 |
30 |
Reverse: IFRS 16 impact(1) |
(61) |
(68) |
(71) |
(82) |
(282) |
|
342 |
408 |
519 |
392 |
1,661 |
Other adjustments(2) |
|
|
|
|
119 |
Leverage EBITDA |
|
|
|
|
1,780 |
(1) |
Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management's view of the impact of earnings. |
(2) |
Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to the completion of turnarounds and third-party power outage. |
Measures of Segment Profit and Total of Segments Measures
Adjusted earnings (loss) before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a measure of segment profit and its aggregate is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS Accounting Standards, adjustments and eliminations made in preparing an entity's financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment's profit or loss that is used by the chief operating decision maker. As such, Parkland's Adjusted EBITDA is unlikely to be comparable to similarly named measures presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland's ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 16 of the Q2 2024 MD&A, which is incorporated by reference into this news release, for further details regarding total of segments measures used by Parkland. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss) for the three and six months ended
|
Three months ended |
|
($ millions) |
2024 |
2023 |
Adjusted EBITDA |
504 |
470 |
Less/(add): |
|
|
Acquisition, integration and other costs |
46 |
39 |
Depreciation and amortization |
202 |
206 |
Finance costs |
99 |
98 |
(Gain) loss on foreign exchange – unrealized |
4 |
27 |
(Gain) loss on risk management and other – unrealized |
56 |
(11) |
Other (gains) and losses(1) |
(1) |
14 |
Other adjusting items(2) |
8 |
1 |
Income tax expense (recovery) |
20 |
18 |
Net earnings (loss) |
70 |
78 |
1 |
Other (gains) and losses for the three months ended |
|
|
2 |
Other adjusting items for the three months ended |
Supplementary Financial Measures
Parkland uses a number of supplementary financial measures, including Adjusted EBITDA Guidance, TTM Cash generated from (used in) operating activities, and TTM Cash generated from (used in) operating activities per share, and these measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 16 of the Q2 2024 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.
Non-Financial Measures
Parkland uses a number of non-financial measures, including Company same-store volume growth ("Company SSVG"), composite utilization and total recordable injury frequency rate, in measuring the success of our strategic objectives and to set variable compensation targets for employees. These non-financial measures are not accounting measures, do not have comparable IFRS Accounting Standards measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 16 of the Q2 2024 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.
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