Press release from CNW Group
Parkland Fuel Corporation Reports First Quarter EBITDA of $46 Million, Fuel Sales Volumes of 1 Billion Litres and Announces Retail Acquisitions
Monday, May 09, 2011
Corporation confirms that First Quarter results will be reported prior to the market opening on May 30, 2011 to accommodate IFRS conversion
RED DEER, AB, May 9 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent fuel distributer and marketer, today announced preliminary results for the first quarter of 2011. Fuel sales volumes for the three months ended March 31, 2011 exceeded 1 billion litres of fuel, an increase of 207 million litres or 25% compared with the same period in 2010. EBITDA for the first quarter of 2011 was $46 million, an increase of $27 million or 238% compared with the first quarter of 2010. All dollar amounts are stated in Canadian dollars and reflect conversion to IFRS.
Parkland also announced that it has entered into a binding agreement, subject to certain conditions to be met upon closing, to acquire the business of Cango Inc. ("Cango"), a major independent retail fuel marketer in Ontario, on or about May 31, 2011. On an annual basis, Cango supplies more than 400 million litres of petroleum products to a network of 155 independent dealers and company operated locations in Ontario under the Cango, Sunys, Gas Rite and Esso brands. This network presently includes 29 retailers and 126 dealers of which 80 are Esso branded through Cango's Retail Branded Distributor agreement with Imperial Oil. The binding agreement between Parkland and Cango is subject to the approval of the Competition Bureau and other closing conditions. The final price of the acquisition will be released at the time of close.
Parkland has also agreed to acquire, subject to certain conditions to be met upon closing, seven retail fuel outlets representing 25 million litres from Overwaitea Food Group which operates Save On Foods Gas Bars in Western Canada. The seven outlets, located in British Columbia and Alberta will be re-branded to Fas Gas Plus, and are anticipated to be in operation in time for the summer driving season.
"The combination of normal winter weather across Canada, strong refiners' margins, and the inclusion of winter operations from Bluewave Energy and Island Petroleum led to strong results for the first quarter of 2011," said Bob Espey, President and Chief Executive Officer of Parkland. "In addition, our progress towards completing these acquisitions reflects the continued strategic focus at Parkland to grow through accretive acquisitions and demonstrates the continued opportunities that exist in today's marketplace."
To accommodate increased accounting and reporting requirements for conversion of Canadian Generally Accepted Accounting Principles ("GAAP") to International Financial Reporting Standards ("IFRS"), the Corporation will release 2011 first quarter results and related reporting prior to the market opening on May 30, 2011 in accordance with the filing extension provided to first time IFRS filers by the Canadian Securities Administrators.
EBITDA, a non-GAAP measure, refers to earnings before interest on long-term debt, income tax expense, amortization, refinery remediation, accretion expense on asset retirement obligations, interest and accretion on convertible debentures and loss (gains) on the disposal of property, plant and equipment.
Annual and Special Meeting:
Parkland will conduct its Annual and Special Meeting at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, May 12, 2011 at the Capri Hotel in Red Deer, Alberta.
Capri Hotel & Conference Centre
3310 - 50th Avenue
Red Deer, Alberta T4N 3X9
Parkland will also simultaneously webcast the meeting and presentation at the following URL:
About Parkland Fuel Corporation
Parkland Fuel Corporation ("Parkland") is Canada's largest independent marketer and distributer of fuels, managing a nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers. Parkland's mission is to be the most trusted source of convenience for fuel and related products focused on non-urban markets. Our family of brands includes: Fas Gas Plus, Race Trac Gas, Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products and Island Petroleum. We are Canada's local fuel company, delivering competitive fuel products and serving Canadian communities through local operators who care. For more information please visit www.parkland.ca.
Parkland shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI, PKI.DB and PKI.DB.A.
For further information:
For investor and media inquiries, or to be added to the email news alert service, please contact Tom McMillan, Investor Relations Manager at 403-356-6722, 1-800-662-7177 ext 6722 or firstname.lastname@example.org.