Parkland Corp.’s adjusted EBITDA saw gains in fourth-quarter 2022—both overall and in its U.S. segment.
The Calgary, Alberta-based company’s total earnings before interest, taxes, depreciation and amortization was $332.3 million (U.S.) in fourth-quarter 2022, up 75% from fourth-quarter 2021.
For its Charleston, South Carolina-based unit, Parkland USA, EBITDA was $33.6 million (U.S.) in the fourth quarter, up 15% from the same quarter the year prior, the company said in its March 2 earnings announcement. Performance was underpinned by incremental contribution from acquisitions and growth in Parkland’s base business, the company said.
Parkland USA’s convenience-store chains, which total 213 locations, include On the Run, Rhinehart Oil, Hart’s, Farstad Oil, Urbieta Oil and more. The chain has been quickly growing over the past few years through acquisitions. It is also 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.
- Parkland USA is No. 37 on the 2023 Top 40 update of CSP’s2022 Top 202 list ranking of U.S. convenience-store chains by store count.
“We advanced our strategy, strengthened our supply advantage, delivered record adjusted EBITDA and enhanced shareholder distributions,” in 2022, said Bob Espey, president and CEO of Parkland Corp. “Our accomplishments demonstrate the strength of our integrated business model and highlight our focus on creating long-term shareholder value. We expect record adjusted EBITDA in 2023 and are raising our annual dividend for the eleventh consecutive year.”
The company’s year-end EBITDA was $1.2 billion (U.S.) in 2022, up 29% from 2021.
Other 2022 year-end earnings for Parkland USA, with changes from 2021, include:
- Food, convenience and other adjusted gross margin: $160.5 million, up 30%
- Fuel and petroleum product adjusted gross margin: $294.7 million, up 59%
- Fuel and petroleum product volume: 1,601 million gallons, up 18%
- Total adjusted gross margin: $455.3 million, up 48%
Food, convenience and other adjusted gross margin increased both in the fourth-quarter and year-end 2022 driven by Parkland USA’s acquisitions and continued focus on improving c-store margins through several paths. Those paths include achievement of synergies through consolidation of suppliers, On the Run rollout initiatives and development and execution of c-store category management initiatives, according to the company.
Fuel and petroleum volumes decreased for fourth-quarter 2022 compared to fourth-quarter 2021 due to the strategic decision to limit spot wholesale activities subsequent to third-quarter 2022, Parkland said. Excluding the effect of the limited spot wholesale activities, the fuel and petroleum product volume increased for fourth-quarter 2022 and year-end 2022. This was due to incremental contributions from the Parkland USA acquisitions and strong base commercial volumes, driven by wins of new commercial customers and strategic accounts and marine business growth, the company said.
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