Parkland Corp., which owns the Parkland USA convenience-store chain, reported record third-quarter 2023 and year-to-date adjusted EBITDA, the company announced Wednesday.
Its third-quarter 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $422.3 million—up 78% from the third-quarter 2022—and its year-to-date adjusted EBITDA $1,046.7 million, the company said.
Parkland’s net earnings were $166 million, more than double the net earnings from third-quarter 2022.
“I want to congratulate the Parkland team for delivering an exceptional quarter,” said Bob Espey, Parkland Corp. president and CEO. “Our consistent performance demonstrates the quality of the business we have built and has enabled us to increase our 2023 Adjusted EBITDA Guidance, accelerate our 2024 Adjusted EBITDA Guidance of $2 billion [Canadian dollars], and lower our Leverage Ratio to 2.9 times. I have conviction in our strategy and confidence in our team’s ability to meet and beat the ambitious targets we have set for ourselves. We look forward to sharing more about our plan to deliver value to shareholders at our upcoming investor day.”
Parkland Corp. also shared that it has electric vehicle (EV) charging operational at 33 sites, including 63 chargers, and is on track to meet its plan for 50 charging sites by early 2024.
- Parkland USA is No. 37 on CSP’s 2023 Top 202 ranking of U.S. convenience-store chains by company-owned store count.
Parkland USA had adjusted EBITDA of $37.5 million in the third quarter, up $50.5 million from third-quarter 2022, Parkland said. Results for third-quarter 2022 included spot wholesale inventory and risk management losses, though, so excluding those, adjusted EBITDA was up 11%, the company said.
Performance was underpinned by effective cost management initiatives and strong fuel unit margins in the commercial line of business, partially offset by weakness in retail fuel volumes and unit margins, Parkland said.
Parkland USA, which operates On the Run c-stores, has gone through several leadership shakeups in the past year. It hired Troy Dickson as its new vice president of retail in September and its president Donna Sanker started in January following the departure of Doug Haugh.
Parkland Corp. has also gone through some changes. After receiving criticism from activist investor Engine Capital in the spring, Parkland announced in May it would be selling up to $368.5 million (U.S.) of non-core assets. Then in July, Jim Pantelidis, Parkland Corp.’s chair of the board, announced his retirement. Engine Capital had previously called Pantelidis Parkland’s “over-tenured chairman,” as he had been with the company for more than two decades.
Parkland USA operates more than 200 c-stores in 13 western states. Parkland Corp., Calgary, Alberta, is a major independent supplier and marketer of fuel and petroleum products in Canada, the United States, the Caribbean and the Americas through retail, commercial and wholesale channels. It is the second-largest c-store operator in Canada, with 650 retail outlets and more than 1,830 dealer sites.
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