Parkland Corporation

Good morning. My name is Marcella and I'll be the operator assisting you today. At this time, I'd like to welcome everyone to the Parkland 2022 third quarter results analyst conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, press star, then two. Thank you. I would now like to turn the conference over to Valerie Roberts, Director, Investor Relations for Parkland. Please go ahead.

Thank you, Operator. With me today on the call are Bob Espy, President and CEO, and Marcel Tunison, Chief Financial Officer. This call is webcast and I encourage listeners to follow along with the supporting slides. We will go through our prepared remarks and then open it up for questions from the investment community. Please limit yourself to one question and a follow-up if necessary. And if you have other questions, re-enter the queue. We would ask analysts to follow up directly with the investor relations team afterwards for any detailed modeling questions. During our call today, we may make forward-looking statements related to expected future performance. These statements are based on current views and assumptions and are subject to uncertainties, which are difficult to predict. These uncertainties include, but are not limited to, expected operating results and industry conditions, among other factors. Risk factors applicable to our business are set out in our revised annual information form and management's discussion and analysis. We will also be discussing non-GAAP and other financial measures, which do not have any standardized meanings described by IFRS. These measures are identified and defined in Parkland's continuous disclosure documents, which are available on our website or on CDAR. Please refer to these documents as they identify factors which may cause actual results to differ materially from any forward-looking statements. Dollar amounts discussed today are expressed in Canadian dollars unless otherwise noted. I will now turn the call over to Bob.

Great. Thank you, Val. And good morning. We appreciate you joining us today. I'm pleased to lead off by highlighting that we completed our consolidation of Sol in mid-October. We also closed our acquisitions of Husky and GB Group's Jamaican business during the quarter. With all previously announced deals behind us, we remain focused on integration and capturing synergies to grow cash flow, while lowering our leverage ratio and increasing distributions to shareholders. Our recently closed transactions include our acquisition of 163 Husky retail sites. These sites are located in the following markets, Vancouver Island, Vancouver, Calgary, and Toronto, where we already have a supply advantage. These sites help to fill in some of the white space in our Canadian retail network and create more opportunities for us to engage with customers and better serve their needs. Our teams are excited to welcome this network to Parkland. In integrating these Husky sites, we will leverage our industry-leading controlled fuel brands of Chevron, Pioneer, and Ultramar, as well as our on-the-run convenience brand. We will also enhance our food offerings and introduce journey rewards. Similar to the Calgary Chevron location you see on the Once these rebrands are complete, we expect a significant uplift in performance and customer traffic. With that, let's dive into the quarter. As followers of Parkland, you know that over many years we have demonstrated our resilience, building a durable business, delivering consistent operating performance, and exceeding the ambitious targets we set for ourselves. Through the quarter, commodity prices experienced unprecedented volatility. The net result was a 27% fall in WTI, 33% fall in U.S. gasoline, and a 17% fall in U.S. diesel. In some local markets, this volatility was amplified, creating significant local imbalances. Parkland is not alone in experiencing these market dynamics. This impacted our USA segment. where volatility led to losses. Excluding these, Parkland USA performed in line with expectations. We have taken definitive steps to ensure this is not repeated. We have curtailed our USA business and have contained the impacts to the third quarter. We expect our USA segment will return to normal run rate in Q4. It is important to note that in the first nine months of 2022, Parkland has generated approximately $1.2 billion of adjusted EBITDA. This is a record for our company, which highlights the underlying strength and resilience of our business. It also provides us with confidence to deliver our 2022 guidance range of $1.6 to $1.7 billion. Let me touch briefly on our balance sheet, shareholder distributions and growth. Until now, we've been primarily focused on growth. However, with the completion of our acquisitions, we will now focus on deleveraging, enhancing, and enhancing shareholder distributions. I remain confident we can achieve our mid-decade growth target. I'll now turn the call over to Marcel to speak in more detail about the financial results on slide four.