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Press Release

Parkland Fuel Corporation Reports Record 2015 Results

RED DEER, AB--(Marketwired - March 02, 2016) - Parkland Fuel Corporation ("Parkland") (TSX: PKI), Canada's largest independent marketer of fuel and petroleum products, announced today the financial and operating results for the three and twelve months ended December 31, 2015. All financial figures are expressed in Canadian dollars.

"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:

  • The annual dividend will increase by five percent;
  • The two percent Premium Dividend plan will be discontinued;
  • The effect of these two changes provides a more favourable tax treatment for eligible Canadian shareholders. The two percent cash premium is treated as regular taxable income, whereas the five percent dividend increase benefits from the dividend tax credit; and
  • The regular DRIP program will remain unchanged.

"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


  • Strong performance in Eastern Canada across all divisions helped to offset economic headwinds and warmer Q4 temperatures in Canada.
  • Achieved 9% volume growth, delivering over 9.6 billion litres of fuel and petroleum products in 2015, which was led by the Retail Fuels segment.
  • Parkland delivered 17% growth in Adjusted EBITDA compared to 2014, benefitting from its diversified structure across different business lines, customers, and geographies.
  • Invested organic growth capital(2) of $38.8 million which is an increase of 23% over 2014. This was largely comprised of site construction and upgrading activities in the Retail segment and Parkland's U.S. operations.

1 Non-GAAP financial measure. See the "Non-GAAP financial measures, reconciliations and advisories" section of the December 31, 2015 MD&A


  • Supply and Wholesale (formerly known as Wholesale, Supply and Distribution) delivered Adjusted EBITDA of $77.4 million in 2015, an increase of 21% over 2014; demonstrating exceptional results through Parkland's ability to realize unique supply advantages through scale, buying programs and operational efficiencies; and
  • Elbow River continues to demonstrate opportunistic agility providing excellent results across all three product portfolios.


  • Increased our Retail Fuels footprint by adding 169 retailer sites and 224 dealer sites in 2015 representing over 2.0 billion litres of new annualized volume;
  • Closed the Pioneer acquisition on June 25, 2015, where integration and synergies are exceeding expectations; 
  • Added an additional 11 Chevron-branded service stations in British Columbia; and
  • Continued to expand Parkland's U.S. market share with the addition of 7 new corporate sites in the year.

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 and SEDAR immediately after the results are released by newswire under Parkland's profile at

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.

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

A link to the live webcast will be available on the Investor section of Parkland's website.

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

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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For further information, please contact:

Investor Inquiries
Patricia van de Sande
Vice President Investor & Government Relations & Compliance
Email contact

Media Inquiries

Elizabeth Wilcox
Manager Corporate Communications
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