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Adjusted EBITDA (Canada): C$200 million, slightly below Q3 2023.
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Same Store Volumes Growth (Canada): 1.4% increase.
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Private Label Business Growth: Up 12% compared to prior year.
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Adjusted EBITDA (International): C$152 million, 11% below last year.
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Adjusted EBITDA (US): C$54 million, up 4% from the prior year.
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Same Store Volumes (US): Negative 4.4% during the quarter.
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Adjusted EBITDA (Refining Segment): C$49 million, down from C$88 million last year.
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Available Cash Flow: C$627 million or $3.58 per share, down 16% from 2023.
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Leverage Ratio: Increased to 3.4 times.
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2024 Adjusted EBITDA Guidance: Lowered by approximately C$250 million to C$1.7 billion to C$1.75 billion.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Parkland Corp (PKIUF) delivered adjusted EBITDA of C$431 million in Q3, with a 4% year-over-year increase in the underlying business after adjusting for one-time benefits.
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The company saw same-store volumes growth of 1.4%, demonstrating the strength of its company-owned network and the positive impact of its loyalty program.
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Parkland Corp (PKIUF) launched alcohol sales at 80 sites in Ontario with plans to expand to 120 sites by year-end, driving increased traffic to stores.
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The US segment delivered C$54 million in adjusted EBITDA, up 4% from the prior year, benefiting from renegotiated supply contracts and tactical improvements.
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Parkland Corp (PKIUF) is progressing with organic growth initiatives, including rebranding and building new retail sites, which are driving double-digit same-store sales volume growth in Guyana.
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The international segment’s adjusted EBITDA was C$152 million, 11% below last year, primarily due to lower wholesale volumes.
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The refining segment reported adjusted EBITDA of C$49 million, down from C$88 million last year, driven by lower refining margins.
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Available cash flow was C$627 million, down 16% from 2023, primarily due to weaker refining segment results.
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The company’s leverage ratio increased to 3.4 times, attributed to lower adjusted EBITDA over the last twelve months.
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Parkland Corp (PKIUF) lowered its 2024 adjusted EBITDA guidance by approximately C$250 million due to weak refining margin outlook.
Q: Can you discuss the challenges in the refining segment and your confidence in its recovery? A: Bob Espey, President and CEO, explained that the refining segment faced a tough comparison to last year’s record quarter, primarily due to lower crack spreads. He noted that the refinery operated well, and the fundamentals suggest that crack spreads will improve as global demand grows. The company remains conservative in its projections but is confident in its marketing and supply business, which continues to gain market share.
