Mr. Bob Espey reports

PARKLAND REPORTS STRONG 2023 FOURTH QUARTER AND RECORD YEAR-END RESULTS; INCREASES DIVIDEND FOR THE TWELFTH CONSECUTIVE YEAR

Parkland Corp. has released its financial and operating results for the three months and year ended Dec. 31, 2023.

"I want to congratulate the Parkland team on an excellent year," said Bob Espey, president and chief executive officer. "We delivered approximately $300-million of incremental adjusted [earnings before interest, taxes, depreciation and amortization] in 2023 compared to 2022, and have accelerated our $2-billion of adjusted EBITDA guidance to 2024, with significantly less invested capital than expected. We are firmly on track with our ambitious plan to deliver long-term value to our shareholders, which we outlined at our investor day.

"Parkland continues to progress its board renewal process," added Mr. Espey. "I would like to welcome Michael Jennings and James Neate to the Parkland board of directors and am pleased with the recent nomination of Mariame McIntosh Robinson. Each brings substantial expertise across many areas to Parkland, and their knowledge and insights will be invaluable."

Fourth quarter 2023 highlights:

• Adjusted EBITDA attributable to Parkland of $463-million, consistent with the fourth quarter of 2022;
• Net earnings attributable to Parkland of $86-million (49 cents per share, basic), an increase of 25 per cent from the fourth quarter of 2022, and adjusted earnings attributable to Parkland of $151-million (86 cents per share, basic), up 29 per cent from the fourth quarter of 2022;
• Available cash flow of $181-million, up 53 per cent from the fourth quarter of 2022, and cash generated from operating activities of $417-million, down 34 per cent from the fourth quarter of 2022, due to favourable non-cash working capital movements in the prior period;
• Repaid $106-million of its credit facility with liquidity available of $1.3-billion at Dec. 31, 2023;
• Grew Journie rewards to 5.8 million members, reflecting expansion into select international markets and the launch of its partnership with Aeroplan.

2023 highlights:

• Record adjusted EBITDA of $1,913-million, up 18 per cent from 2022;
• Net earnings attributable to Parkland of $471-million ($2.68 per share, basic), an increase of 52 per cent from 2022, and adjusted earnings of $626-million ($3.56 per share, basic), up 34 per cent from 2022;
• Available cash flow of $812-million ($4.61 per share, basic), up 15 per cent from 2022, and cash generated from (used in) operating activities of $1.78-billion, up 34 per cent from 2022;
• Repaid $747-million of its credit facility and lowered its leverage ratio to 2.8 times (3.4 times at Q4 2022), demonstrating Parkland's continuing commitment to deleveraging.

Q4 2023 segment highlights:

• Canada delivered adjusted EBITDA of $190-million, consistent with Q4 2022 ($197-million); company volume same-store-sales growth was 6.9 per cent, and food and company C-store SSSG (excluding cigarettes) was 1.2 per cent; Canada delivered food and company C-store revenue of $92-million, consistent with Q4 2022 ($88-million);
• International delivered adjusted EBITDA of $157-million, up 43 per cent from Q4 2022 ($110-million); performance was primarily driven by additional volumes in its commercial business and strong fuel unit margins, due to organic growth and synergy capture;
• The United States delivered adjusted EBITDA of $39-million, down 15 per cent from Q4 2022 ($46-million); the decrease was primarily driven by lower fuel unit margins in its commercial business, partially offset by strong C-store margins and reduced operating costs;
• Refining delivered adjusted EBITDA of $106-million, down 17 per cent from Q4 2022 ($128-million); composite utilization was 90 per cent in Q4 2023, compared with 98 per cent in Q4 2022; the decrease was primarily driven by a third party power outage;
• Parkland's total recordable injury frequency rate on a trailing-12-month basis was 1.07, compared with 1.05 at Dec. 31, 2022.

Enhancing shareholder distributions:

• Parkland's quarterly dividend will increase from 34 cents to 35 cents per common share, effective with the quarterly dividend payable on April 15, 2024, to shareholders of record at the close of business on March 22, 2024. Dividends are expected to be declared and paid on a quarterly basis.
• Parkland purchased and cancelled approximately 583,000 Parkland common shares for $26-million under its normal course issuer bid program in Q4 2023. Additionally, Parkland repurchased approximately 700,000 common shares for $31-million in January, 2024, under its automatic share purchase plan. Parkland's disciplined capital allocation framework balances deleveraging, organic growth and enhancing shareholder returns, and the company expects to continue to opportunistically utilize its NCIB program.

Refinery update

Following an initial shutdown due to extreme cold weather in mid-January, a technical issue with a processing unit led to an unplanned outage beginning Jan. 21, 2024. It has completed inspection and repair work, including maintenance activities previously scheduled for February, 2024. It expects to resume normal operations in early March, 2024, with the total refinery outage to be approximately eight weeks during the first quarter of 2024.

It has developed a robust recovery plan and expects to meet its 2024 adjusted EBITDA guidance range of $1.95-billion to $2.05-billion. Plans include enhanced refinery operations and optimized refinery supply, as well as continuing operating and MG&A cost reductions across the business.

Q4 2023 conference call and webcast details

Parkland will host a webcast and conference call on Wednesday, Feb. 28, 2024, 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: 97733547). International participants may call 1-800-389-0704 (toll-free) (conference ID: 97733547).

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 at the Parkland website.

Annual general meeting of shareholders

Parkland will host its 2024 annual general meeting of shareholders on Thursday, March 28, 2024, at 9 a.m. MT (11 a.m. ET). The meeting will be held at the Westin Calgary hotel in Calgary, Alta.

Parkland's management information circular is available at the Parkland website and under Parkland's profile at SEDAR+.

Management's discussion and analysis and annual consolidated financial statements

Management's discussion and analysis for the year ended Dec. 31, 2023, and annual consolidated financial statements for the year ended Dec. 31, 2023, provide a detailed explanation of Parkland's operating results for the year ended Dec. 31, 2023. An English version of these documents will be available on-line at the Parkland website and SEDAR+ after the results are released by Newswire under Parkland's profile at SEDAR+. The French versions of the Q4 2023 MD&A and the 2023 annual consolidated financial statements will be posted to the Parkland website and SEDAR+ as soon as they become available.

About Parkland Corp.

Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It serves over one million customers each day. Its retail network meets the fuel and convenience needs of everyday consumers. Its commercial operations provide businesses with industrial fuels so that they can better serve their customers. 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 renewable fuel sourcing, manufacturing and blending, carbon and renewables trading, solar power, and ultrafast electric vehicle charging. 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.

Its strategy is focused on two pillars: its customer advantage and its supply advantage. Through its customer advantage, it aims to be the first choice of its customers, cultivating their loyalty through proprietary brands, differentiated offers, its extensive network, competitive pricing, reliable service and its compelling loyalty program. Its 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 it operates, through its well-positioned assets, significant scale, and deep supply and logistics capabilities. Its 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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