Parkland Delivers $215.1M Adjusted EBITDA for 2015 & Increases Its Annual Dividend by Five Percent
RED DEER, AB--(Marketwired - March 02, 2016) - Parkland Fuel Corporation ("Parkland") (
"Parkland has achieved another record year and we enter 2016 well positioned to deliver our 2016 guidance of $235 to $265 million in Adjusted EBITDA1. Our 2015 increase in Adjusted EBITDA of 17% over the prior year demonstrates our ability to continue to drive our base business operating performance and also integrate acquired businesses effectively," said Bob Espey, President and Chief Executive Officer of Parkland. "Acquisitions, coupled with our diversified business model, have enabled us to deliver another year of record results. Our unique supply capability continues to deliver synergies and add great value for our shareholders."
"Parkland's strong performance in 2015 and our confidence in our base business position us well to fund organic growth capital. As a result, we are making some enhancements to our dividend plan," said Mike McMillan, Chief Financial Officer of Parkland.
Enhancement of the Dividend Plan
Effective April 1, 2016:
"These enhancements to our dividend plan will be beneficial for both Parkland and its shareholders. It will enable greater control over our capital structure and reduce future share dilution while providing the benefit of a dividend increase coupled with more favourable tax treatment for shareholders," said Mike McMillan, Chief Financial Officer of Parkland.
Key Components of Parkland's Strategy - 2015 Highlights
Grow
1 Non-GAAP financial measure. See the "Non-GAAP financial measures, reconciliations and advisories" section of the December 31, 2015 MD&A
Supply
Acquire
2 Non-GAAP financial measure. See the "Non-GAAP financial measures, reconciliations and advisories" section of the December 31, 2015 MD&A.
Consolidated Financial Overview
Financial Summary | |||||||||
Three months ended December 31, | Year ended December 31, | ||||||||
(in millions of Canadian dollars and shares) | 2015 | 2014 | 2015 | 2014 | |||||
Sales and operating revenues | 1,655.8 | 1,738.5 | 6,299.6 | 7,527.6 | |||||
Adjusted gross profit(1) | 182.3 | 141.5 | 627.5 | 540.8 | |||||
Net earnings | 15.7 | 10.2 | 39.5 | 49.9 | |||||
Per share - basic | 0.17 | 0.13 | 0.45 | 0.66 | |||||
Per share - diluted | 0.17 | 0.13 | 0.45 | 0.66 | |||||
Adjusted EBITDA(1) | 64.9 | 51.1 | 215.1 | 183.2 | |||||
Dividends | 25.4 | 26.9 | 97.6 | 85.9 | |||||
Per share outstanding | 0.27 | 0.33 | 1.04 | 1.05 | |||||
Distributable cash flow(2) | 35.3 | 23.1 | 109.8 | 107.0 | |||||
Per share outstanding(2) | 0.38 | 0.28 | 1.17 | 1.30 | |||||
Dividend payout ratio(2) | 72 | % | 117 | % | 89 | % | 80 | % | |
Adjusted dividend payout ratio(2) | 60 | % | 87 | % | 71 | % | 70 | % | |
Total assets | 1,818.7 | 1,531.8 | 1,818.7 | 1,531.8 | |||||
Total long-term liabilities | 591.6 | 551.1 | 591.6 | 551.1 | |||||
Total funded debt(1) | 464.9 | 245.5 | 464.9 | 245.5 | |||||
Shares outstanding | 93.9 | 82.1 | 93.9 | 82.1 | |||||
(1) Non-GAAP financial measure. See the "Non-GAAP financial measures, reconciliations and advisories" section of the December 31, 2015 MD&A. |
(2) Non-GAAP financial measure. See the "Dividends, distributable cash flow and dividend payout ratio" section of the December 31, 2015 MD&A for reconciliation and calculation. |
Operating Summary | |||||
Three months ended December 31, | Year ended December 31, | ||||
2015 | 2014 | 2015 | 2014 | ||
Fuel volume (millions of litres) | 2,614 | 2,328 | 9,613 | 8,855 | |
Fuel and petroleum product adjusted gross profit(1) (cpl): | |||||
Retail Fuels | 5.07 | 5.37 | 5.25 | 5.00 | |
Commercial Fuels | 11.59 | 11.63 | 11.39 | 10.47 | |
Parkland USA (formerly SPF Energy) | 3.44 | 3.72 | 3.38 | 3.22 | |
Operating costs (cpl) | 3.07 | 2.58 | 2.92 | 2.74 | |
Adjusted marketing, general and administrative(1) (cpl) | 1.45 | 1.32 | 1.39 | 1.32 |
(1) Non-GAAP financial measure. See the "Non-GAAP financial measures, reconciliations and advisories" section of the December 31, 2015 MD&A. |
Cpl is defined as cost per litre. |
MD&A and Financial Statements
The 2015 Management's Discussion and Analysis, the audited Consolidated Financial Statements, and the Notes to the Consolidated Financial Statements (and notes thereto) provide a detailed explanation of Parkland's operating results for the three and twelve months ended December 31, 2015. These documents are available online at www.parkland.ca and SEDAR immediately after the results are released by newswire under Parkland's profile at www.sedar.com.
Conference Call and Webcast Information
Parkland Fuel Corporation will host a webcast and conference call at 6:30 a.m. MST (8:30 a.m. EST) on Thursday, March 3, 2016, to discuss the results for the three and twelve months ended December 31, 2015.
http://www.gowebcasting.com/7302
To access the conference call by telephone dial toll-free 1-866-225-0198. Callers from the Toronto area should use (416) 340-2216. Please connect 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 at the link above for one year and will also be posted to www.parkland.ca.
A link to the live webcast will be available on the Investor section of Parkland's website. http://www.parkland.ca/investors/.
If you are unable to participate in the call, a replay will be available by dialing 1-800-408-3053, passcode 7814592 (Canada and USA toll-free). For international callers, please click here to find your dial-in number and use passcode 7814592. A transcript of the broadcast will be posted on the website once it becomes available.
Forward-Looking Statements and Non-GAAP Financial Measures
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements"). When used in this news release the words "looks", "expect", "will", "could", "would", "believe", "predict", "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 objectives and growth strategies; the strength of Parkland's balance sheet and financial condition; sources of growth; capital expenditures; Parkland's intentions to pursue further acquisitions and the anticipated benefits and accretive effects of such acquisitions; and plans and objectives of or involving Parkland.
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 statements speak only as of the date of this news release. Parkland does not undertake any obligations 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, general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including increases in taxes; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in Parkland's Annual Information Form dated March 24, 2015, as filed on SEDAR and available on the Parkland website at www.parkland.com.
This news release refers to certain Non-GAAP financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA, Adjusted gross profit, Distributable cash flow, Distributable cash flow per share, Dividend payout ratio, Adjusted dividend payout ratio, Total funded debt, Fuel and petroleum product adjusted gross profit, Adjusted marketing, general and administrative and Growth Capital are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of Parkland's performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industries. See "Adjusted EBITDA" in Parkland's December 31, 2015 MD&A for a reconciliation of Adjusted EBITDA to net earnings, the IFRS measure most directly comparable to Adjusted EBITDA. Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends. See "Distributable Cash Flow" in Parkland's December 31, 2015 MD&A for a reconciliation of distributable cash flow to cash flow from operating activities, the IFRS measure most directly comparable to distributable cash flow. See "Non-GAAP financial measures, reconciliations, and advisories" section of the December 31, 2015 MD&A. Investors are encouraged to evaluate each adjustment and the reasons Parkland considers it appropriate for supplemental analysis. Investors are cautioned, however, that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of Parkland's performance. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
About Parkland Fuel Corporation |
Parkland Fuel Corporation is one of North America's fastest growing independent marketers of fuel and petroleum products. We deliver gasoline, diesel, propane, lubricants, heating oil and other high quality petroleum products to motorists, businesses, households and wholesale customers in Canada and the United States. Our mission is to be the partner of choice for our customers and suppliers, and we do this by building lasting relationships through outstanding service, reliability, safety and professionalism.
We are unique in our ability to provide customers with dependable access to fuel and petroleum products, utilizing a portfolio of supply relationships, storage infrastructure, and third party rail and highway carriers to rapidly respond to supply disruptions in order to protect our customers.
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Contact Information:
For further information, please contact:
Investor Inquiries
Patricia van de Sande
Vice President Investor & Government Relations & Compliance
403-567-2519