Parkland Corporation

Good morning, my name is Chris and I will be your conference operator today. At this time, I would like to welcome everyone to the Parkland Q2 Analyst Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. 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 with 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 annual information form in Management's Discussion and Analysis. We will also be discussing non-GAAP and other financial measures, which do not have any standardized meanings prescribed by the IFRS accounting standards. 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 in today's call are expressed in Canadian dollars unless otherwise noted. I will now turn the call over to Bob.

Thank you Val and good morning everyone. We appreciate you joining us today. I'm very proud of our accomplishments in the second quarter, which demonstrate the quality of our business and the capabilities of our team. Following a slow start to the year, we delivered a record Q2 with adjusted EBITDA of $504 million. This is consistent with the $2 billion run rate. Despite pockets of economic weakness, and continued underperformance in our U.S. business. After the unplanned refinery outage in Q1, it was running at full capacity in Q2 and continues to perform well. We set a new coprocessing record for the quarter, which provided an opportunity to capture additional margins. Our U.S. business has made significant improvements and is trending to plan, except for our Florida retail and supply business. This is an ongoing area of focus for the team. As you read in our news release, we have lowered our 2024 full-year adjusted EBITDA guidance to between $1.9 and $2 billion. This represents a recovery from our Q1 Burnaby unplanned refinery shutdown due to cold weather, however reflects ongoing weaknesses in the consumer and fuel demand in some markets. due to ongoing macroeconomic trends. As you know, the Parkland team likes to win. We are focused on executing our strategy and improving our returns, specifically by growing our market share through investing in our brands and customer experience, and building our supply advantage across our business through a common supply platform, ensuring we can sustain future growth by investing in our core processes and systems. This gives me confidence in our ability to finish the year strong en route to achieving our 2028 targets. With that, let's turn to slide three to review our Q2 results in more detail.