Mr. Bob Espey reports

PARKLAND REPORTS 2023 THIRD QUARTER RESULTS

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

Q3 2023 highlights:

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) attributable to Parkland (1) of $585-million, up 78 per cent from the third quarter of 2022;
• Net earnings attributable to Parkland of $230-million ($1.31 per share, basic), more than double the net earnings from the third quarter of 2022, and adjusted earnings attributable to Parkland (2) of $231-million ($1.31 per share, basic), nearly five times the adjusted earnings from the third quarter of 2022;
• Cash generated from (used in) operating activities of $528-million ($3 per share, basic (3)), up 31 per cent from the third quarter of 2022;
• Reduced borrowing under credit facility by $162-million, liquidity available (3) of $1.8-billion and lowered Leverage Ratio (4) to 2.9 times (3.3 times in Q2 2023), within Parkland's target range of two to three times;
• Record composite utilization (5) at the Burnaby refinery of 102.9 per cent, including record co-processing volumes of 2,600 barrels per day and consistent operational execution;
• Parkland has electric vehicle (EV) charging operational at 33 sites, including 63 chargers, and is on track to meet the company's plan for 50 charging sites by early 2024;
• Parkland now expects to exceed its revised 2023 adjusted EBITDA guidance range of $1.8- to $1.85-billion, driven by strong utilization, optimization at the refinery and favourable refinery margins, as well as the strength of the international business in the third quarter of 2023.

"I want to congratulate the Parkland team for delivering an exceptional quarter," said Bob Espey, president and chief executive officer. "Our consistent performance demonstrates the quality of the business we have built and has enabled us to increase our 2023 adjusted EBITDA guidance, accelerate our 2024 adjusted EBITDA guidance of $2-billion and lower our leverage ratio to 2.9 times. I have conviction in our strategy and confidence in our team's ability to meet and beat the ambitious targets we have set for ourselves. We look forward to sharing more about our plan to deliver value to shareholders at our upcoming investor day."

(1) Total of segments measure.

(2) Non-GAAP (generally accepted accounting principles) financial measure or non-GAAP financial ratio.

(3) Supplementary financial measure.

(4) Capital management measure.

(5) Non-financial measure.

Q3 2023 segment highlights

• Canada delivered adjusted EBITDA of $206-million, up 47 per cent from Q3 2022 ($140-million). Fuel unit margins were higher than the comparable period as a result of continued optimization of the company's supply and integrated logistic capabilities and favourable market conditions. Company volume same-store sales growth (SSSG) (2) was 4.2 per cent and food and company C-Store SSSG (excluding cigarettes) (2) was 3.6 percent, driven by organic growth initiatives in the company's loyalty and C-store programs. Canada delivered food and company C-store revenue of $81-million, up 17 per cent from Q3 2022 ($69-million), primarily due to organic growth.
• International delivered adjusted EBITDA of $170-million, up 63 per cent from Q3 2022 ($104-million). Performance was driven by organic growth that resulted in higher volumes in the wholesale business, strong fuel unit margins driven by favourable market conditions and pricing strategies, and the consolidation of Sol.
• United States delivered adjusted EBITDA of $52-million, up $70-million from Q3 2022 (adjusted EBITDA loss of $18-million). Results for Q3 2022 include spot wholesale inventory and risk management losses of $65-million. Excluding these losses, adjusted EBITDA in the third quarter of 2022 was $47-million and Q3 2023 adjusted EBITDA was up 11 per cent. Performance was underpinned by effective cost management initiatives and strong fuel unit margins in the commercial line of business, partially offset by weakness in retail fuel volumes and unit margins.
• Refining delivered adjusted EBITDA of $188-million, up more than 39 per cent from Q3 2022 ($135-million). Performance was underpinned by robust crack spreads, record composite utilization of 102.9 per cent, including record co-processing volumes of 2,600 barrels per day, and optimization of the production mix.
• Parkland's total recordable injury frequency rate (5) on a trailing-12-month basis was 0.95, a decrease of 16 percent compared with 1.13 in the third quarter of 2022.

Q3 2023 conference call and webcast details

Parkland will host a webcast and conference call on Thursday, Nov. 2, 2023, at 6:30 a.m. MDT (8:30 a.m. EDT), to discuss the results. Listen to the live webcast and watch the presentation on-line.

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 No. 19474746). International participants may call 1-800-389-0704 (toll-free) (conference ID No. 19474746).

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's website.

Management's discussion and analysis (MD&A) and interim consolidated financial statements

The MD&A for the three and nine months ended Sept. 30, 2023 (the Q3 2023 MD&A), and consolidated financial statements for the three and nine months ended Sept. 30, 2023 (the Q3 2023 interim consolidated financial statements), provide a detailed explanation of Parkland's operating results for the three and nine months ended Sept. 30, 2023. An English version of these documents will be available on-line on the company's website and on SEDAR+ after the results are released. The French versions of the Q3 2023 MD&A and the Q3 2023 interim consolidated financial statements will be posted to the company's website and on SEDAR+ as soon as they become available.

2023 investor day registration

Parkland will host its 2023 investor day presentation on Nov. 14, 2023, at 9 a.m. EST (7 a.m. MST), to provide details on the continued execution of the company's strategy, capital allocation framework and the company's financial outlook. The event will be held at the Fairmont Royal York in Toronto, Ont., and simultaneously webcast with video for those unable to attend in person. Analysts and investors who wish to attend the event, either in person or remotely, are invited to register on-line.

About Parkland Corp.

Parkland is an international fuel distributor, marketer and convenience retailer with operations in 25 countries across the Americas. The company serves over one million customers each day. Its vast retail network meets the fuel and convenience needs of everyday consumers. Its commercial operations provides businesses with industrial fuels so that they can better serve their customers.

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

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

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