Parkland Reports 2025 First Quarter Results
CALGARY, AB, May 5, 2025 /PRNewswire/ - Parkland Corporation ("Parkland", "we", the "Company", or "our") (TSX: PKI), today announced its full financial and operating results for the three months ended March 31, 2025.
"Our first quarter of 2025 saw a recovery from 2024 as the refinery offset a slow start to the year and a one-time $53 million impact due to a decision to exit the California compliance market," said Bob Espey, President and Chief Executive Officer. "It is still early in the year, and as we assess performance across our business, we are encouraged by several positive developments. Our International segment continues to deliver strong growth, refining margins have been stronger than anticipated, and we expect a robust driving season in Canada. While the macroeconomic and regulatory environment remains volatile, these tailwinds highlight the resilience of our portfolio and reinforce my confidence in the foundation we have built at Parkland."
Q1 2025 Highlights
-- Achieved Adjusted EBITDA(1) of $375 million, an increase of $48 million
as compared to Q1 2024, primarily driven by the 11-week unplanned
shutdown of the Burnaby Refinery in the comparative period and strong
performance in the International business. These were partially offset
by the commercial decision to wind down our California compliance market
positions, resulting in realized losses of $53 million within the
Canadian segment(2), and weaker performance in the USA.
-- Net earnings of $64 million ($0.37 per share, basic), as compared to net
loss of $5 million ($0.03 per share, basic) in Q1 2024, and Adjusted
earnings(3) of $65 million ($0.37 per share, basic(3)), as compared to
$43 million ($0.25 per share, basic) in Q1 2024.
-- Trailing twelve months ("TTM") Available cash flow(3) of $586 million
($3.37 per share(3)), as compared to $762 million ($4.34 per share) as
of March 31, 2024. TTM Cash generated from (used in) operating
activities(4) of $1,604 million ($9.21 per share(4)), as compared to
$1,683 million ($9.56 per share) as of March 31, 2024. These decreases
were largely due to a significantly lower refining margin environment
during the second half of 2024, realized losses due to the wind down of
our California compliance market positions in the first quarter of 2025,
and higher acquisition, integration and other costs during the last nine
months of 2024 primarily associated with restructuring activities and
implementing enterprise-wide systems.
-- Return on invested capital(3) ("ROIC") was 7.6 percent for the trailing
twelve months ended March 31, 2025 as compared to 8.9 percent, for the
same period in 2024.
-- Maintained Leverage Ratio(5) of 3.6 times (3.6 times in Q4 2024) and
liquidity available(4) of $2 billion.
__________________________________
(1) Total of segments measure. See "Measures of Segment Profit (Loss) and Total of Segments Measures" section of
this news release.
(2) These positions are held within our integrated Canadian logistics business, which is reported within the
Canada segment.
(3) Non-GAAP financial measure or non-GAAP financial ratio. See "Non-GAAP Financial Measures and Ratios"
section of this news release.
(4) Supplementary financial measure. See "Supplementary Financial Measures" section of this news release.
(5)
Capital management measure. See "Capital Management Measures" section of this news release.
Q1 2025 Segment Highlights
-- Canada delivered Adjusted EBITDA of $110 million, as compared to $186
million in Q1 2024. The decrease was primarily driven by the commercial
decision to wind down our California compliance market positions,
resulting in realized losses of $53 million, and the sale of the
commercial propane business in Q4 2024.
-- International delivered Adjusted EBITDA of $181 million, as compared to
$147 million in Q1 2024. The increase was driven by higher volume and
margins in the commercial and wholesale businesses from strategic and
recurring customers and strength in our South American region.
-- USA delivered Adjusted EBITDA of $16 million, as compared to $31 million
in Q1 2024. The decrease was driven by macroeconomic pressures
continuing to impact fuel and convenience demand in line with broader
industry trends, as well as regulatory developments that also impacted
Parkland's ability to capture supply optimization opportunities
associated with moving refined product between Canada and the U.S.
-- Refining delivered Adjusted EBITDA of $79 million, as compared to an
Adjusted EBITDA loss of $33 million in Q1 2024. The increase relative to
Q1 2024 was primarily driven by an 11-week unplanned shutdown in the
comparative period. Composite utilization(6) at the Burnaby Refinery was
approximately 76 percent in Q1 2025, as compared to approximately 20
percent in Q1 2024. The Burnaby Refinery successfully completed a
three-week planned maintenance in the quarter and performed safely and
reliably which allowed us to benefit from favourable market conditions.
-- Parkland's total recordable injury frequency rate(6) on a TTM basis was
1.13, compared to 1.07 at Q1 2024.
___________________________
(6) Non-financial measure. See "Non-Financial Measures" section of
this news release.
Consolidated Financial Overview
($ millions, unless otherwise noted) Three months ended March
31,
Financial Summary 2025 2024
Sales and operating revenue 6,813 6,939
Adjusted EBITDA(1) 375 327
Canada(2)(5) 110 186
International(2)(5) 181 147
USA(2)(5) 16 31
Refining(2)(5) 79 (33)
Corporate(2)(5) (11) (4)
Net earnings (loss) 64 (5)
Net earnings (loss) per share - basic ($ per share) 0.37 (0.03)
Net earnings (loss) per share - diluted ($ per share) 0.36 (0.03)
Trailing twelve months ("TTM") Cash generated from (used in) operating activities(3) 1,604 1,683
TTM Cash generated from (used in) operating activities per share(3) 9.21 9.56
TTM Available cash flow(4)(6) 586 762
TTM Available cash flow per share(4)(6) 3.37 4.34
TTM ROIC(4) 7.6 % 8.9 %
(1)
Total of segments measure. See "Measures of Segment Profit (Loss) and Total of Segments Measures" section of this news release.
(
2)
Measure of segment profit (loss). See "Measures of Segment Profit (Loss) and Total of Segments Measures" section of this news release.
(3)
Supplementary financial measure. See "Supplementary Financial Measures" section of this news release.
(4)
Non-GAAP financial measure or non-GAAP financial ratio. See "Non-GAAP Financial Measures and Ratios" section of this news release.
(5) For comparative purposes, certain amounts in 2024 were revised to conform to the presentation used in the current period with respect to the allocation of Corporate costs. See Note 2d of the Interim
Condensed Consolidated Financial Statements for further details.
(6)
For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management to conform to the presentation used in the current period.
Q1 2025 Conference Call and Webcast Details
Following the announcement of Parkland's definitive agreement to be acquired by Sunoco LP and associated conference call held earlier today, our planned webcast and conference call on Thursday, May 6, 2025, at 6:30 am MT (8:30 am ET) has been cancelled.
MD&A and Annual Consolidated Financial Statements
The Management's Discussion and Analysis for the three months ended March 31, 2025 (the "Q1 2025 MD&A") and Interim Condensed Consolidated Financial Statements for the three months ended March 31, 2025 (the "Q1 2025 Condensed Consolidated Financial Statements") provide a detailed explanation of Parkland's operating results for the three months ended March 31, 2025. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval+ ("SEDAR+") after the results are released by newswire under Parkland's profile at www.sedarplus.ca. The French versions of the Q1 2025 MD&A and the Q1 2025 Condensed Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.
About Parkland Corporation
Parkland is a leading international fuel distributor, marketer, and convenience retailer with safe and reliable operations in 26 countries across the Americas. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with fuel to operate, complete projects and better serve their customers. In addition to meeting our customers' needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact, including manufacturing and blending renewable fuels, ultra-fast EV charging, a variety of solutions for carbon credits and renewables, and solar power. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.
Our strategy is focused on two interconnected pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers through our proprietary brands, differentiated offers, extensive network, competitive pricing, reliable service, and compelling loyalty program. Our 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 we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community and respect, which are embedded across our organization.
Forward-Looking Statements
Certain statements contained herein constitute forward-looking information and statements (collectively, "forward-looking statements"). When used the words "expect", "will", "could", "would", "believe", "continue", "pursue" and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; ; International's continued strong growth; an expected robust driving season in Canada; portfolio resilience; and confidence in Parkland's foundation.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: the strategic review that Parkland initiated on March 5, 2025 (the "Strategic Review"), the process and the timing thereof, whether the strategic review will result in Parkland undertaking a transaction, and if so, the terms and timing relating thereto, the completion thereof and realizing benefits resulting therefrom; general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation, imposition of tariffs and fluctuating commodity prices; Parkland's ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom, meeting our targets, outlook and commitments relating thereto, and the impact of the Strategic Review thereon; and other factors, many of which are beyond the control of Parkland and the assumptions and risks described in "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" included in Parkland's most recently filed Annual Information Form, and in "Forward-Looking Information" and "Risk Factors" in the Q4 2024 MD&A, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. The forward-looking statements contained in this news release as expressly qualified by these cautionary statements.
Specified Financial Measures
This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, "specified financial measures"). Parkland's management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with the IFRS Accounting Standards. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.
Non-GAAP Financial Measures and Ratios
Adjusted earnings (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level. The most directly comparable financial measure to Adjusted earnings (loss) and Adjusted earnings (loss) per share is Net earnings (loss).
Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland's operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company's overall performance, as they exclude certain items that are not reflective of the Company's underlying business operations.
See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss) and Adjusted earnings (loss) per share.
Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and the calculation of Adjusted earnings (loss) per share.
Three months ended March
31,
($ millions, unless otherwise stated) 2025 2024
Net earnings (loss) 64 (5)
Add/(less):
Acquisition, integration and other costs 29 30
(Gain) loss on foreign exchange - unrealized (5) 3
(Gain) loss on risk management and other - unrealized(4) 3 3
Other (gains) and losses (19) 10
Other adjusting items(1)(4) (6) 18
Tax normalization(2) (1) (16)
Adjusted earnings (loss) 65 43
Weighted average number of common shares (million shares)(3) 174 175
Weighted average number of common shares adjusted for the effects of dilution (million shares)(3) 176 175
Adjusted earnings (loss) per share ($ per share)
Basic 0.37 0.25
Diluted 0.37 0.25
(1) Other adjusting items for the three months ended March 31, 2025 include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in
another period of $13 million gain (2024 -$11 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $5 million (2024 -$4
million); (iii) other income of $2 million (2024 -$2 million); (iv) adjustment to foreign exchange losses related to cash pooling arrangements of nil (2024 -$2 million loss); and (v) adjustment to
realized risk management gains related to interest rate swaps, as these gains do not relate to commodity sale and purchase transactions, of nil (2024 -$1 million).
(2) The tax normalization adjustment was applied to net earnings (loss) adjusting items that were considered temporary differences, such as acquisition, integration and other costs, unrealized foreign
exchange gains and losses, unrealized gains and losses on risk management and other, gains and losses on asset disposals, changes in fair value of redemption options, changes in estimates of
environmental provisions, loss on inventory write-downs for which there are offsetting associated risk management derivatives with unrealized gains, and impairments of non-current assets. The tax
impact was estimated using the effective tax rates applicable to jurisdictions where the related items occur.
(3)
Weighted average number of common shares are calculated in accordance with Parkland's accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.
(4) For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management with no changes to Adjusted earnings (loss) to conform to the presentation used
in the current period.
Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. Parkland uses these measures to set targets (including annual guidance and variable compensation target) and monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Available cash flow and Available cash flow per share. See the following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.
Three months ended Trailing
twelve
months ended
March 31,
2025
($ millions, unless otherwise noted) June 30, September 30, December 31, March 31,
2024 2024 2024 2025
Cash generated from (used in) operating activities 450 406 462 286 1,604
Reverse: Change in other assets and other liabilities 3 (68) 80 1 16
Reverse: Net change in non-cash working capital related to (34) 21 (180) 53 (140)
operating activities(1)
Include: Maintenance capital expenditures (53) (71) (96) (62) (282)
Include: Dividends received from investments in associates 8 3 7 5 23
and joint ventures
Include: Interest on leases and long-term debt (88) (85) (87) (89) (349)
Include: Payments of principal amount on leases (64) (69) (76) (77) (286)
Available cash flow 222 137 110 117 586
Weighted average number of common shares (millions)(2) 174
TTM Available cash flow per share 3.37
Three months ended Trailing
twelve
months ended
March 31,
2024
($ millions, unless otherwise noted) June 30, September 30, December 31, March 31,
2023(1) 2023 2023 2024 (1)
Cash generated from (used in) operating activities 521 528 417 217 1,683
Reverse: Change in other assets and other liabilities (11) 7 (4) 28 20
Reverse: Net change in non-cash working capital related to (145) (14) 17 55 (87)
operating activities(1)
Include: Maintenance capital expenditures (61) (52) (93) (59) (265)
Include: Dividends received from investments in associates 2 4 3 2 11
and joint ventures
Include: Interest on leases and long-term debt (89) (83) (88) (85) (345)
Include: Payments on principal amount on leases (56) (57) (71) (71) (255)
Available cash flow 161 333 181 87 762
Weighted average number of common shares (millions)(2) 176
TTM Available cash flow per share 4.34
(1) For comparative purposes, certain amounts within the net change in non-cash working capital related to operating activities for the three months ended March 31, 2024, and the three months ended June 30,
2023, were revised to conform to the current period presentation.
(2)
Weighted average number of common shares is calculated in accordance with Parkland's accounting policy contained in Note 2 of the Annual Consolidated Financial Statements.
ROIC is a non-GAAP financial ratio. The measure is calculated as a ratio of Net operating profit after tax ("NOPAT") divided by average invested capital. NOPAT describes the profitability of Parkland's base operations, excluding the impact of leverage and certain other items of income and expenditure that are not considered representative of Parkland's underlying core operating performance. NOPAT is based on Adjusted EBITDA, defined in the "Measures of Segment Profit (Loss) and Total of Segments Measures" section of this news release, less depreciation and amortization expense, including pro-forma depreciation on assets classified as held for sale, and the estimated tax expense using the expected average tax rate estimated using statutory tax rates in each jurisdiction where Parkland operates. Average invested capital is the amount of capital deployed by Parkland that represents the average of opening and closing debt, including debt liabilities classified as held for sale, as well as shareholder's equity, including equity reserves, net of cash and cash equivalents. We use this non-GAAP measure to assess Parkland's efficiency in investing capital.
($ millions, unless otherwise noted)
Three months ended
ROIC June 30, September December 31, March 31, Trailing
30, twelve
2024 2024 2024 2025 months ended
March 31, 2025
Net earnings (loss) 70 91 (29) 64 196
Add/(less):
Income tax expense (recovery) 20 17 (8) 8 37
Acquisition, integration and other costs 46 61 81 29 217
Depreciation and amortization 202 207 210 202 821
Finance cost 99 96 92 99 386
(Gain) loss on foreign exchange - unrealized 4 1 (2) (5) (2)
(Gain) loss on risk management and other - unrealized 56 (48) 34 3 45
Other (gains) and losses (1) (1) 30 (19) 9
Other adjusting items 8 7 20 (6) 29
Adjusted EBITDA 504 431 428 375 1,738
Less: Depreciation and amortization (202) (207) (210) (202) (821)
Less: Pro-forma depreciation and amortization on assets (7) (7) (14)
classified as held for sale
Adjusted EBIT 302 224 211 166 903
Average effective tax rate 20.1 %
Less: Taxes (182)
Net operating profit after tax 721
Opening invested capital 9,421
Closing invested capital 9,535
Average invested capital 9,478
Return on invested capital 7.6 %
Invested Capital March 31,
($ millions, unless otherwise noted) 2025 2024
Long-term debt - current portion 244 218
Long-term debt 6,362 6,412
Long-term debt in liabilities classified as held for sale(1) 132 30
Shareholders' equity 3,159 3,154
Exclude: Cash and cash equivalents (362) (393)
Total 9,535 9,421
($ millions, unless otherwise noted)
Three months ended
ROIC June 30, September 30, December 31, March 31, Trailing
twelve
2023 2023 2023 2024 months ended
March 31,
2024
Net earnings (loss) 78 230 86 (5) 389
Add/(less):
Income tax expense (recovery) 18 54 (15) (29) 28
Acquisition, integration and other costs 39 38 42 30 149
Depreciation and amortization 206 205 222 206 839
Finance cost 98 93 89 91 371
(Gain) loss on foreign exchange - unrealized 27 1 3 31
(Gain) loss on risk management and other - unrealized(2) (11) (19) 28 3 1
Other (gains) and losses 14 (37) 5 10 (8)
Other adjusting items(2) 1 20 6 18 45
Adjusted EBITDA 470 585 463 327 1,845
Less: Depreciation and amortization (206) (205) (222) (206) (839)
Less: Pro-forma depreciation and amortization on assets
classified as held for sale
Adjusted EBIT 264 380 241 121 1,006
Average effective tax rate 17.3 %
Less: Taxes (174)
Net operating profit after tax 832
Opening invested capital 9,347
Closing invested capital 9,421
Average invested capital 9,384
Return on invested capital 8.9 %
Invested Capital March 31,
($ millions, unless otherwise noted) 2024 2023
Long-term debt - current portion 218 184
Long-term debt 6,412 6,599
Long-term debt in liabilities classified as held for sale(1) 30
Shareholders' equity 3,154 3,062
Exclude: Cash and cash equivalents (393) (498)
Total 9,421 9,347
(1) For comparative purposes, long-term debt in liabilities classified as held for sale were included as part of invested capital as at March 31, 2024, to conform to the
current period presentation.
(2) For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management for the three months ended March 31,
2024, with no changes to Adjusted EBITDA.
These non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Except as otherwise indicated, these non-GAAP financial measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland's non-GAAP financial measures and ratios.
Capital Management Measures
Parkland's primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland's overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. In order to manage its financing requirements, Parkland may adjust capital spending or dividends paid to shareholders or issue new shares or new debt. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS Accounting Standards. It is, therefore, unlikely to be comparable to similar measures presented by other companies. The detailed calculation of the Leverage Ratio is as follows:
($ millions, unless otherwise noted) March 31, 2025 December 31,
2024
Leverage Debt 5,257 5,268
Leverage EBITDA 1,476 1,481
Leverage Ratio 3.6 3.6
($ millions, unless otherwise noted) March 31, 2025 December 31,
2024
Long-term debt 6,606 6,641
Less:
Lease obligations (1,028) (1,054)
Cash and cash equivalents (362) (385)
Non-recourse debt(1) (31) (30)
Risk management asset(2) (29) (30)
Add:
Non-recourse cash(1) 14 31
Letters of credit and other 87 95
Leverage Debt 5,257 5,268
(1)
Represents non-recourse debt and non-recourse cash balance related to project financing.
(2) Represents the risk management asset/liability associated with the spot element of the cross-currency swap designated in a cash flow hedge relationship to hedge the variability of principal cash flows
of the 2024 Senior Notes resulting from changes in the spot exchange rates.
Three months ended Trailing
twelve
months ended
March 31,
2025
($ millions, unless otherwise noted) June 30, September
30, December 31, March 31,
2024 2024 2024 2025
Adjusted EBITDA 504 431 428 375 1,738
Share incentive compensation 8 6 11 8 33
Reverse: IFRS 16 impact(1) (80) (84) (91) (93) (348)
432 353 348 290 1,423
Acquisition pro-forma adjustment(2) 7
Other adjustments(3) 46
Leverage EBITDA 1,476
(1)
Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management's view of the impact of earnings.
(2)
Includes the impact of pro-forma pre-acquisition EBITDA estimates based on anticipated benefits, costs and synergies from acquisitions.
(3) Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to the unplanned shutdown at the Burnaby Refinery, completion of turnarounds and the EBITDA attributable to EV
charging operations financed through non-recourse project financing.
Three months ended Trailing twelve
months ended
December 31,
2024
($ millions, unless otherwise noted) March 31, June 30, September
30, December 31,
2024 2024 2024 2024
Adjusted EBITDA 327 504 431 428 1,690
Share incentive compensation 6 8 6 11 31
Reverse: IFRS 16 impact(1) (83) (80) (84) (91) (338)
250 432 353 348 1,383
Acquisition pro-forma adjustment(2) 11
Other adjustments(3) 87
Leverage EBITDA 1,481
(1)
Includes the impact of operating leases prior to the adoption of IFRS 16, previously recognized under operating costs, which aligns with management's view of the impact of earnings.
(2)
Includes the impact of pro-forma pre-acquisition EBITDA estimates based on anticipated benefits, costs and synergies from acquisitions.
(3) Includes adjustments to normalize Adjusted EBITDA for non-recurring events relating to the completion of turnarounds, unplanned shutdown resulting from extreme cold weather event, third-party power
outage and the EBITDA attributable to EV charging operations financed through non recourse project financing.
Measures of Segment Profit (Loss) and Total of Segments Measures
Adjusted earnings (loss) before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a measure of segment profit (loss) and its aggregate is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS Accounting Standards, adjustments and eliminations made in preparing an entity's financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit (loss) only if they are included in the measure of the segment's profit (loss) that is used by the chief operating decision maker. As such, Parkland's Adjusted EBITDA is unlikely to be comparable to measures of segment profit (loss) presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland's ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted EBITDA. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss), which is the most directly comparable financial measure, for the three months ended March 31, 2025 and March 31, 2024.
Three months ended March
31,
($ millions) 2025 2024
Adjusted EBITDA(1) 375 327
Less/(add):
Acquisition, integration and other costs 29 30
Depreciation and amortization 202 206
Finance costs 99 91
(Gain) loss on foreign exchange - unrealized (5) 3
(Gain) loss on risk management and other - unrealized(4) 3 3
Other (gains) and losses(2) (19) 10
Other adjusting items(3)(4) (6) 18
Income tax expense (recovery) 8 (29)
Net earnings (loss) 64 (5)
(1)
Total of segments measure. See Section 15 of the Q1 MD&A.
(2) Other (gains) and losses for the three months ended March 31, 2025, include: (i) $21 million non-cash valuation gain (2024 - $13 million loss) due to change in fair value of redemption options; (ii) $4
million non-cash valuation loss (2024 - $4 million gain) due to the change in estimates of environmental provisions; (iii) $4 million (2024 - $2 million) in other income; and (iv) $1 million loss
(2024 - $5 million loss) in others; and (v) $1 million loss (2024 - $2 million gain) on disposal of assets;
(3) Other adjusting items for the three months ended March 31, 2025, include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in
another period of $13 million gain (2024 -$11 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $5 million (2024 -$4
million); (iii) other income of $2 million (2024 -$2 million); (iv) adjustment to foreign exchange losses related to cash pooling arrangements of nil (2024 -$2 million loss); and (v) realized risk
management gains related to interest rate swaps, as these gains do not relate to commodity sale and purchase transactions, of nil (2024 -$1 million).
(4) For comparative purposes, certain amounts were reclassified between realized and unrealized gain/(loss) on risk management for the three months ended March 31, 2024, with no changes to Net earnings
(loss) of segments measure. See Section 15 of the Q1 MD&A.
Supplementary Financial Measures
Parkland uses a number of supplementary financial measures, including TTM Cash generated from (used in) operating activities, TTM Cash generated from (used in) operating activities per share and liquidity available, to evaluate the success of our strategic objectives. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.
Non-Financial Measures
Parkland uses a number of non-financial measures, including composite utilization and total recordable injury frequency rate, to measure the success of our strategic objectives and to set variable compensation targets for employees, where applicable. These non-financial measures are not accounting measures, do not have comparable IFRS Accounting Standards measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q1 2025 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.
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SOURCE Parkland Corporation
