Q2 2024 Parkland Corp Earnings Call Transcript
Key Points
- Parkland Corp (PKIUF) delivered a record Q2 with adjusted EBITDA of $504 million, up 7% from the prior year.
- The Canadian segment showed strong performance with a 15% year-over-year increase in adjusted EBITDA, demonstrating consistent execution and successful integration of strategic acquisitions.
- The international segment delivered an 8% increase in adjusted EBITDA, driven by strong demand and good unit margins, particularly in the tourism and natural resources sectors.
- The refinery segment reported an 11% increase in adjusted EBITDA, with high utilization rates and record co-processing volumes.
- Parkland Corp (PKIUF) maintained a leverage ratio of 3.1x and has a clear pathway to reducing leverage to the low 2x by the end of 2025.
- The US segment underperformed, with adjusted EBITDA down from the prior year, although it showed improvement from Q1.
- Retail fuel volume demand was weaker during the quarter, particularly in June, due to poor weather and reduced discretionary spending.
- The Florida retail and supply business continues to underperform, impacting overall US segment results.
- Parkland Corp (PKIUF) lowered its 2024 full-year adjusted EBITDA guidance to between $1.9 billion and $2 billion, reflecting ongoing weaknesses in consumer and fuel demand.
- The macroeconomic environment has resulted in lower volume fills and higher frequency of visits, indicating consumer sensitivity to increasing costs of living.
Good morning. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Parkland Q2 analyst conference call. (Operator Instructions)
I would now like to turn the conference over to Valerie Roberts, Director, Investor Relations for Parkland. Please go ahead.
Thank you, operator.
With me today on the call are Bob Espey, President and CEO; and Marcel Teunissen, Chief Financial Officer. This call is webcast, and I encourage listeners to follow along with the supporting slides. We will go through our prepared remarks and then open it up for questions with the investment community. (Event Instructions)
During our call today, we may make forward-looking statements related to expected future performance. These statements are based on current views and assumptions and are subject to uncertainties which are difficult to predict. These uncertainties include, but are not limited to, expected operating results and industry conditions, among other
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