Mr. Bob Espey reports

PARKLAND REPORTS 2023 SECOND QUARTER RESULTS

Parkland Corp. has released its financial and operating results for the three and six months ended June 30, 2023.

Q2 2023 highlights

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to Parkland of $470-million, up 4 per cent from the second quarter of 2022.
• Net earnings attributable to Parkland of $78-million (44 cents per share, basic) down 4 per cent from the second quarter of 2022, and adjusted earnings attributable to Parkland of $130-million (74 cents per share, basic) down 22 per cent from the second quarter of 2022.
• Cash generated from (used in) operating activities of $521-million ($2.97 per share, basic) up 53 per cent from the second quarter of 2022.
• Leverage ratio of 3.3 times and liquidity available of $1.6-billion.
• In July, launched proprietary food offering, Bites ON the RUN by M&M Food Market, within a standalone ON the RUN convenience store in Montreal.
• As of July 31, 2023, completed or reached agreements to sell non-core assets totalling approximately $100-million.

"I would like to thank the Parkland team for safe, consistent execution this quarter. We are building tremendous momentum across Parkland, positioning us to deliver a strong year at the higher end of our 2023 adjusted EBITDA guidance," said Bob Espey, president and chief executive officer. "We are advancing every part of our strategy, driving organic growth through customer-focused marketing programs, capturing synergies and cost-efficiencies, and advancing our portfolio optimization efforts. I am confident we will deliver our $2-billion adjusted EBITDA ambition by 2025 without further acquisitions, while reducing leverage and improving shareholder returns."

Q2 2023 segment highlights

• Canada delivered adjusted EBITDA of $150-million, down 14 per cent from Q2 2022 ($174-million). Fuel unit margins were lower than the comparable historical highs in the second quarter of 2022. Fuel volume increased from the prior year due to company volume same store sales growth (SSSG) of 9.3 per cent and the incremental benefit of 2022 acquisitions. Food and company c-store SSSG (excluding cigarettes) increased to 3.1 per cent, up from (0.6) per cent in Q2 2022.
• International delivered adjusted EBITDA of $168-million, up 93 per cent, from Q2 2022 ($87-million). Performance was driven by the consolidation of Sol, higher volumes in the company's retail and contracted commercial businesses, organic growth in the company's aviation business, and contributions from its Jamaica acquisition.
• United States delivered adjusted EBITDA of $74-million, up 45 per cent from Q2 2022 ($51-million). Strong performance reflects the capabilities of the company's U.S. team and was underpinned by strong fuel unit margins. Favourable market conditions and strong market positions enabled us to capture margin opportunities.
• Refining delivered adjusted EBITDA of $109-million, down 34 per cent, from Q2 2022 ($164-million) primarily reflecting lower crack spreads. The scheduled maintenance turnaround was completed in early April and composite utilization was 91.0 per cent.
• The company realized non-recurring foreign exchange gains of $25-million on the settlement of financing balances during the quarter.
• Parkland's total recordable injury frequency rate on a trailing-12-month basis was 0.87, a decrease of 18 per cent compared with 1.06 in the second quarter of 2022.

2022 sustainability report

Today, the company published its fourth sustainability report. Titled "Drive to Zero," it outlines Parkland's strategy and the actions it is taking to drive sustainable growth and shareholder returns. The report highlights the many successful initiatives under way. Among them are: industry-leading efforts on co-processing low-carbon, renewable fuels; safer, more diverse and inclusive work environments; and the incorporation of sustainability metrics into executive compensation.

Parkland's sustainability report can be viewed on-line.

Q2 2023 conference call and webcast details

Parkland will host a webcast and conference call on Friday, Aug. 4, 2023, at 6:30 a.m. MT (8:30 a.m. ET) to discuss the results.

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: 77390959). International participants may call 1-800-389-0704 (toll-free) (conference ID: 77390959).

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 for one year and will also be posted to the company website.

MD&A and consolidated financial statements

The management's discussion and analysis for the three and six months ended June 30, 2023, and consolidated financial statements for the three and six months ended June 30, 2023, provide a detailed explanation of Parkland's operating results for the three and six months ended June 30, 2023. An English version of these documents will be available on-line and SEDAR after the results are released by newswire under Parkland's profile at SEDAR+. The French versions of the Q2 2023 MD&A and the Q2 2023 consolidated financial statements will be posted to the company website and SEDAR as soon as they become available.

About Parkland Corp.

Parkland is an international fuel distributor and retailer with operations in 25 countries. Its purpose is to power journeys and energize communities, and every day, it provides over one million customers with the essential fuels, convenience items and quality foods on which they depend.

With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, it has developed supply, distribution and trading capabilities to accelerate growth and business performance. In addition to meeting its customers' needs for essential fuels, it provides a range of choices to help them lower their environmental impact. These include carbon and renewable trading, solar power, renewable manufacturing, and ultrafast electric vehicle charging.

Its proven business model is centred around organic growth, its supply advantage, driven by scale and its integrated refinery and supply infrastructure, acquiring prudently and integrating well. Its strategy is focused on developing its existing business in resilient markets, expanding its food, convenience and renewable energy businesses, and helping customers to decarbonize. Its business is underpinned by its people, and its values -- safety, integrity, community and respect -- which are deeply embedded across the organization.

We seek Safe Harbor.