Parkland Fuel Corp. (TSX:PKI) has a second-quarter net loss of $9.3 million, as compared with net income of $12.7 million for the same period last year.
The per-share loss for the three months ended June 30 was of $1.02. A year earlier it earned $1.58 per share.
The Red Deer-based fuel distributor said Thursday that the decrease in income reflected $3.3 million in one-time expenses related to recent management changes and its acquisition of Ontario fuel retailer and distributor Cango Inc. on June 22. Other factors were a $4.3 million increase in depreciation and amortization expenses, and $12.8 million in higher income tax expenses.
“While EBITDA (earnings before interest, taxes, depreciation and amortization) was below our expectations for the quarter, if we factor out one-time costs, we would have achieved an EBITDA of $28.7 million for the quarter,” said Bob Espey, Parkland’s president and CEO, in a news release. “That said, we recognize there are still opportunities to improve the integration of our acquisitions and realize additional savings.”
Parkland’s fuel sales volumes for the quarter were up 13 per cent to 903 million litres from 802 million litres, with growth and acquisitions accounting for the increase. Fuel marketing sales increased 55 per cent to $857 million from $551.7 million, driven by higher volumes and prices.
Parkland is Canada’s largest independent marketer and distributor of fuels. Its brands include Fas Gas Plus, Race Trac Gas, Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products and Island Petroleum.
In trading on the Toronto Stock Exchange on Thursday shares in Parkland shares closed at $10.37, down $1.62.