Parkland Corporation announced its financial and operating results for the three and nine months ended September 30, 2021. Highlights for the three months ended September 30, 2021 (“Q3 2021”) include1:
“I want to congratulate the entire Parkland team for delivering the strongest quarterly and year-to-date results in Parkland’s history,” said Bob Espey, President and Chief Executive Officer. “Underpinned by our quality brands and consistent ability to anticipate and meet the evolving needs of our customers, including meeting a growing need for low-carbon fuels, we delivered $1 billion of Adjusted EBITDA during the first nine months of the year, demonstrating the strength and growth trajectory of our company.”
“Each segment of our business performed strongly,” added Espey. “From record results in our USA and International segments, ongoing post-COVID economic recovery in Canada and record co-processing volumes in Burnaby, our teams have set us up for a strong finish to the year. We remain focused on maintaining our financial strength and have high confidence in achieving the upper end of our full-year Adjusted EBITDA guidance and longer-term growth ambition.”
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1 Adjusted EBITDA, Adjusted earnings and Total Funded Debt to Credit Facility EBITDA ratio are non-GAAP financial measures and may not be comparable to similar measures of other issuers. See Section 14 of the Management’s Discussion and Analysis (“Q3 2021 MD&A”) dated November 2, 2021. |
Q3 2021 Segment Highlights2
Developing our Business: A Track-Record of Disciplined and Accretive Acquisitions
From late last year, we have announced or closed 13 accretive acquisitions for an investment of approximately $850 million, including purchase price adjustments. The Total Funded Debt to Credit Facility EBITDA ratio of 3.2 times as of September 30, 2021 reflects the closing of three previously announced acquisitions. There are no credit facility or bond maturities until 2026 and the company has significant financial liquidity. Highlights from the third quarter include:
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2 C-store SSSG and composite utilization are Parkland key performance indicators (“KPIs”). These KPIs are not accounting measures, do not have comparable IFRS measures and may not be comparable to similar measures presented by other issuers. See Section 14 of the Q3 2021 MD&A for further details. |
Our Sustainability Journey
As we advance our sustainability journey, we are committed to providing regular updates on our environmental, social and governance efforts as part of our normal disclosure process. Q3 2021 highlights include:
Parkland’s second Sustainability report will be issued in the fourth quarter and will provide enhanced disclosure, including greenhouse gas reduction targets.
Changes to Dividend Reinvestment Plan
On November 2, 2021, the Company announced a reduction of the Enhanced Dividend Reinvestment Plan (“Enhanced DRIP”) from a 5 percent per share discount to a 2 percent per share discount, effective immediately.
Consolidated Financial Overview
($ millions, unless otherwise noted) |
Three months ended September 30, |
Nine months ended September 30, |
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Financial Summary |
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
Fuel and petroleum product volume (million litres)(1) |
6,267 |
5,301 |
5,622 |
17,563 |
15,939 |
16,483 |
Sales and operating revenue(1) |
6,006 |
3,498 |
4,605 |
15,260 |
10,505 |
13,674 |
Adjusted gross margin(2)(3) |
779 |
674 |
679 |
2,143 |
1,754 |
2,104 |
Adjusted EBITDA attributable to Parkland (“Adjusted EBITDA”)(2)(3) |
364 |
338 |
302 |
1,000 |
720 |
963 |
Canada(4) |
105 |
128 |
104 |
322 |
323 |
292 |
International |
83 |
77 |
63 |
216 |
198 |
208 |
USA(5) |
44 |
21 |
17 |
95 |
64 |
41 |
Supply(4)(5) |
161 |
124 |
146 |
451 |
201 |
507 |
Corporate |
(29) |
(12) |
(28) |
(84) |
(66) |
(85) |
Net earnings attributable to Parkland |
115 |
76 |
24 |
89 |
29 |
206 |
Net earnings per share – basic ($ per share) |
0.76 |
0.51 |
0.16 |
0.59 |
0.19 |
1.41 |
Net earnings per share – diluted ($ per share) |
0.75 |
0.50 |
0.16 |
0.59 |
0.19 |
1.38 |
Adjusted earnings attributable to Parkland (“Adjusted earnings”)(3) |
107 |
93 |
65 |
295 |
81 |
259 |
Adjusted earnings per share – basic ($ per share)(3) |
0.70 |
0.62 |
0.44 |
1.96 |
0.54 |
1.77 |
Adjusted earnings per share – diluted ($ per share)(3) |
0.70 |
0.62 |
0.44 |
1.94 |
0.54 |
1.74 |
TTM Cash generated from operating activities(2)(6) |
746 |
1,458 |
1,105 |
746 |
1,458 |
1,105 |
TTM Distributable cash flow(3)(6) |
712 |
485 |
594 |
712 |
485 |
594 |
TTM Distributable cash flow per share(3)(6) |
4.72 |
3.28 |
4.15 |
4.72 |
3.28 |
4.15 |
Dividends |
48 |
47 |
45 |
143 |
137 |
133 |
Dividends per share(2) |
0.3087 |
0.3036 |
0.2985 |
0.9227 |
0.9074 |
0.8921 |
Weighted average number of common shares (million shares) |
152 |
149 |
148 |
151 |
149 |
147 |
Total assets |
10,646 |
8,978 |
9,157 |
10,646 |
8,978 |
9,157 |
Non-current financial liabilities(2) |
5,215 |
4,168 |
4,278 |
5,215 |
4,168 |
4,278 |
(1) |
Certain amounts within sales and operating revenue and fuel and petroleum product volumes were restated and reclassified to conform to the presentation used in the current period. |
(2) |
Measure of segment profit or key performance indicator. See Section 14 of the MD&A. |
(3) |
Non-GAAP financial measure. See Section 14 of the MD&A. |
(4) |
For comparative purposes, information for the year ended December 31, 2019 was restated due to a change in segment presentation. Canada Retail and Canada Commercial, formerly presented separately as individual segments, and the Canadian distribution business, formerly presented in Supply, are now included in Canada, reflecting a change in organizational structure in 2020. |
(5) |
For comparative purposes, information for previous periods was restated due to a change in segment presentation. The supply and trading business in the United States, formerly presented in the Supply segment, is now included in the USA segment, reflecting a change in organizational structure in the first nine months of 2021. |
(6) |
Amounts presented on a trailing-twelve-month basis (“TTM”). |
(7) |
Calculated based on weighted average number of shares. |
Registration Available for 2021 Investor Day on November 16, 2021
Parkland will host its 2021 Investor Day presentation on November 16, 2021 at 7:00 a.m. MST (9:00 a.m. EST). The event will be held at the Fairmont Royal York in Toronto, Ontario and simultaneously webcast with video for those unable to attend in person. The event will include presentations from Parkland’s leadership team on our long-term growth and energy transition strategy, capital allocation and financial outlook.
To ensure a safe and engaging in-person event, we will be following Ontario’s COVID protocols. Analysts and investors who wish to attend the event, either in person or remotely, are invited to register using the following link: https://parkland.fluid.events/ParklandInvestorDay
Q3 2021 Conference Call and Webcast Details
Parkland will host a webcast and conference call on Wednesday, November 3, at 6:30am MDT (8:30am EDT) to discuss the results.
Analysts and institutional investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 88891002). International participants can call 1-587-880-2171 (toll) (Conference ID: 88891002).
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 to www.parkland.ca.