Parkland Grows Momentum During Q2 2023

CALGARY, Alberta — Parkland Corp. hit its stride during the second quarter of 2023, reporting a record quarter for both adjusted EBITDA and safety.

The company significantly advanced every part of its strategy through discipline, focus on customer service and consistent execution, Parkland leadership reported during its recent earnings call.

"As you will see in our results, we are starting to see momentum in our U.S. business," said President and CEO Bob Espey. "Following the reset of the team, they delivered a strong Q2. The fundamentals of our USA business are excellent and I have confidence we will continue to capture synergies and deliver consistent results."

He noted that the company continues to make progress on three priorities it set at the beginning of the year: capturing synergies and cost efficiencies, driving organic growth and optimizing its portfolio.

[Read more: Parkland Plans to Build on Loyalty]

Parkland's U.S. business continues to integrate acquired businesses and improve cost efficiencies by optimizing third-party spend and enhancing its internal processes and systems, Espey added.

Parkland anticipates delivering between 3 percent and 5 percent organic growth per year in its retail and commercial lines of business by generating growth capital returns in the mid-teens. The company's international business is driving organic growth by leveraging the strength of its supply advantage, which helped increase second-quarter volumes by more than 20 percent compared to the previous year.

Foodservice is another area of investment for Parkland. Following its 2022 purchase of frozen food retailer M&M Food Market, the company used M&M's expertise and customer research to deploy its proprietary food brand, Bites On the Run. The "restaurant-quality" offer has 30 menu items and debuted in Parkland's new standalone On the Run c-store in Montreal in July.

"It's early days for this concept and over the next six months, we will learn a great deal about the customer experience," Espey said.

Q2 2023 HIGHLIGHTS

United States: Adjusted EBITDA was $74 million, up 45 percent from $51 million during the second quarter of 2022. The company's strong performance was underpinned by strong fuel unit margins, with favorable market conditions and strong market positions enabling it to capture margin opportunities.

Canada: Adjusted EBITDA was $150 million, down 14 percent from $174 million during the same quarter in 2022. Fuel unit margins were lower than the comparable historical highs during the quarter. Same-store sales growth was up 3.1 percent.

International: Adjusted EBITDA was $168 million, up 93 percent from $87 million the previous-year quarter. Performance was driven by the consolidation of fuel marketer Sol, higher volumes in retail and contracted commercial businesses, organic growth in Parkland's aviation business and contributions from its Jamaica acquisition.

Refining: Adjusted EBITDA was $109 million, down 34 percent from Q2 2022, primarily reflecting lower crack spreads.

Calgary-based Parkland Corp. is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland currently services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.