Q3 2024 Parkland Corp Earnings Call Transcript
Key Points
- 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.
- 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.
- 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.
- The US segment delivered C$54 million in adjusted EBITDA, up 4% from the prior year, benefiting from renegotiated supply contracts and tactical improvements.
- 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.
- The international segment's adjusted EBITDA was C$152 million, 11% below last year, primarily due to lower wholesale volumes.
- The refining segment reported adjusted EBITDA of C$49 million, down from C$88 million last year, driven by lower refining margins.
- Available cash flow was C$627 million, down 16% from 2023, primarily due to weaker refining segment results.
- The company's leverage ratio increased to 3.4 times, attributed to lower adjusted EBITDA over the last twelve months.
- Parkland Corp (PKIUF) lowered its 2024 adjusted EBITDA guidance by approximately C$250 million due to weak refining margin outlook.
Thank you everyone.
In the third quarter, Parkland delivered adjusted EBITDA of C$431 million in Canada adjusted EBITDA was C$200 million which is slightly below Q3 2023. Adjusting for onetime benefit. In the prior year, we saw a 4% increase year over year in our underlying business, fuel margins remain strong driven by continued price and supply optimization.
We also saw same store volumes growth of 1.4%. This demonstrates the strength of our company owned network and the positive impact of our journey loyalty program and on the run conversions, our business is built to adapt to changing economic conditions. This allows us to evolve our value proposition to meet customers' needs as economic pressure shifts, private label business was up 12% compared to prior year and we continue to leverage a journey to attract customers into our sites with targeted fuel incentives in store convenience offers and cross promotions between the forecourt and convenience stores. During the quarter, we launched alcohol sales at 80 sites in
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
