Parkland Corp. fell short of its financial goal for third-quarter 2024, the convenience-store chain and fuel marketer’s President and CEO Bob Espey said. But the business continues to show strength through increased market share in a soft economic environment, he said in the company’s earnings report, posted Wednesday.
Parkland Corp. is No. 38 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
“The Parkland Team remains focused on executing our strategic plan and achieving strong operational metrics across the business relative to industry. Although our third quarter 2024 financial results fell short of expectations, this was primarily driven by a challenging refining margin environment,” Espey said.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from Parkland’s retail and commercial lines of business grew by 2% over the last 12 months, he said, “demonstrating progress on the organic growth initiatives required to deliver on our 2028 ambitions.”
Other third-quarter 2024 highlights include:
- Adjusted EBITDA of $309.9 million (USD), a 26% decrease compared to third-quarter 2023. This was largely due to lower refinery margins, Parkland said.
- Net earnings of $65.4 million, a decrease of 60% compared to third-quarter 2023.
- Adjusted EBITDA from Parkland’s retail and commercial lines of business of $1.2 million, an increase of 2% from the same period 2023. This reflects organic growth, synergy capture and cost reductions, the company said.
- United States adjusted EBITDA of $38.8 million, compared to $37.4 million in third-quarter 2023. “Performance was underpinned by improved supply optimization despite lower consumer demand,” Parkland said. In September, Parkland announced it would be selling its struggling Florida retail and commercial business.
Parkland has further revised its 2024 adjusted EBITDA guidance to $1.2 to $1.3 million. This represents an approximately $1.4 million decrease in guidance range from its previous range. The decrease is due to the unplanned shutdown at the Burnaby Refinery in first-quarter 2024 and unfavorable market conditions experienced for the first nine months of 2024, the company said.
Parkland Corp., Calgary, Alberta, has 210 company-operated c-stores in the United States under Parkland USA, with about 450 dealer sites. It has about 4,000 retail and commercial locations total. Its retail brands include On the Run.
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