RED DEER, ALBERTA--(Marketwired - Apr 15, 2013) - Parkland Fuel Corporation ("Parkland" or the "Corporation") (PKI.TO), Canada's largest independent fuel marketer and distributor, today will provide an update on the Parkland Penny Plan and issue EBITDA guidance for 2014 - 2016. All financial figures are stated in Canadian dollars.
- Confirms progress of $45 million in EBITDA towards the Parkland Penny Plan goal to add an additional $125 million in EBITDA by the end of 2016;
- Reviews North American supply infrastructure that enhances Parkland's supply advantage and diversifies earnings; and
- Further describes propane business platform established through the combination of Parkland, Elbow River Marketing and Sparling's Propane.
"The steady progress on acquisitions, synergies, and savings since launching the Parkland Penny Plan in May of 2012 gives us great confidence around our plan," said Bob Espey, President and Chief Executive Officer of Parkland. "To illustrate the ongoing strength of the business and management's expectations beyond the expiration of the Suncor supply agreement on December 31, 2013, Parkland is providing a forecast for investors."
Parkland Penny Plan and 2014-2016 EBITDA Guidance:
The Parkland Penny Plan is a five year strategic plan that aims to double 2011 normalized EBITDA of $125 million by the end of 2016. (Normalized EBITDA excludes one-time costs and irregular profits). The plan is expected to derive $70 million through a one cent per litre increase in profitability, plus $55 million through new acquisitions.
Since its introduction in May 2012, Parkland has acquired $27 million in annualized EBITDA, identified $7 million in acquisition synergies, and identified savings of $11 million with its Give me five! initiative.
|EBITDA Forecast ($ millions)||2014||2015||2016||assumptions:|
|Please refer to the Non-GAAP measures sections of Parkland's 2012 year-end MD&A for a complete definition of EBITDA.|
These forecasts assume that Parkland maintains its current business mix, is able to achieve 2-4% organic growth annually including tuck-in acquisitions, and acquires annual EBITDA as outlined in the table above. Additional assumptions include:
|Net Total Debt as % of Capital Employed||38||%||40||%||41||%|
|Growth Cap Ex*||$||35||$||35||$||35|
|Maintenance Cap Ex||$||27||$||30||$||34|
|Total Cap Ex||$||62||$||65||$||69|
|*Does not include acquisitions|
On-Site Fleet Refueling:
During the second quarter of 2013, Parkland is planning to launch "Ready-to-Roll", an on-site fleet refueling and fuel management service. This service will deliver fuel directly to customer equipment, provide online access to fuel reports, and supply customers with fuel volume and cost information down to each vehicle or piece of equipment.
Parkland's Ready-to-Roll service will allow transportation and construction businesses to save time and money by eliminating the need for fuel storage at their site and avoid wasted time refueling vehicles at retail gasoline stations. The enhanced fuel management information will also provide customers with better cost control. While similar to 4Refuel's value proposition, Parkland's ability to offer customers a multi-channel solution to address the complete scope of their commercial requirements will provide a significant advantage over rivals. In addition, the combination of Parkland's technology, focus on customer service, and quality Shell fuel and lubricant product offerings are expected to build inroads into this attractive and growing marketplace.
Liquefied Natural Gas ("LNG"):
Parkland has entered into a branded distribution agreement with Shell Canada Limited ("Shell") to distribute Shell LNG for certain stationary applications to commercial and industrial customers in Alberta and North Eastern British Columbia. Deliveries are expected to commence in 2014 once Shell's LNG facility becomes operational.
The emergence of new engine technologies that take advantage of natural gas as an alternative fuel has created an opportunity within the commercial fuel marketplace. Both the economic and environmental benefits of natural gas are expected to drive adoption of LNG, which could partially displace diesel consumption for commercial applications. In addition to fuels, lubricants, and propane, LNG will further enhance Parkland's multi-product offering for the commercial fuel segment.
Parkland will host an investor event to discuss these developments on April 15, 2013 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time).
Investors interested in viewing the webcast of this event are advised to log into the webcast slide presentation 10 minutes before the start time at:
To access the conference call by telephone from within Canada dial toll free 1-(888) 241-0394. International callers or callers from the Toronto area should use (647) 427-3413. Please connect approximately 10 minutes prior to the beginning of the call and quote the conference ID: 2208 8801.
A PDF copy of the presentation can be found at:
The webcast will be available within 24 hours of the conference call and it will remain available at the link above for one year.
Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, effectiveness of internal controls, sources of funding of growth capital expenditures and plans and objectives of or involving Parkland. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", or similar words. Parkland believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in the Corporation's annual report, annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause the Corporation's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. Any forward-looking statements are made as of the date hereof and the Corporation does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and distributor of petroleum products, managing a nationwide network of sales channels. We are Canada's local fuel company, delivering gasoline, diesel fuel, lubricants, heating oil and other products to businesses, consumers and wholesale customers through community based operators who care.