Superior’s (TSX: SPB) 2018 Investor Day will be held today at the One
King West hotel in Toronto, Ontario, with the formal presentation
scheduled to begin at 9 a.m. EDT. An overview of the acquisition of NGL
Propane and a detailed update on Superior’s current operations,
integration of Canwest Propane, financial position and Evolution 2020
will be presented. Evolution 2020 is a strategic initiative which
historically has included an aspirational goal to increase EBITDA from
operations by a range of $50 to $150 million by the end of 2020 as
compared to 2016. Superior will provide an update on its progress on the
Evolution 2020 initiative as part of the presentation, including its new
aspirational goal of increasing EBITDA from operations by a range of
$200 to $250 million by the end of 2020 as compared to 2016.
A copy of the presentation to be used by Superior in conjunction with
Investor Day will be posted on Superior's website today at 8:30 a.m.
Webcast of Investor Day Presentation
A
live audio webcast of the meeting will be accessible from Superior's
website at www.superiorplus.com under
the webcasts section. Additionally, the meeting can be accessed by phone
through the following line: 1-844-389-8661.
About the Corporation
Superior
consists of two primary operating businesses: Energy Distribution
includes the distribution of propane and distillates, and supply
portfolio management; and Specialty Chemicals includes the manufacture
and sale of specialty chemicals.
Forward Looking Information
The
Evolution 2020 aspirational goal with respect to EBITDA from operations
may be considered to be forward-looking information within the meaning
of applicable Canadian securities laws. This forward-looking information
is provided for the purpose of providing information about certain of
management’s operational goals for the future and may not be appropriate
for other purposes. It is based on various assumptions and expectations
that Superior believes are reasonable in the circumstances. No assurance
can be given that these assumptions and expectations will prove to be
correct or that Superior will be able to achieve the aspirational goals
which management has set. Those assumptions and expectations are based
on information currently available to Superior, including information
obtained from third party industry analysts and other third party
sources, and the historic performance of Superior’s businesses, as well
as the historic performance of businesses which it has recently acquired
or has agreed to acquire. Such assumptions include anticipated financial
performance, current business and economic trends, the amount of future
dividends paid by Superior, business prospects, utilization of tax
basis, regulatory developments, currency, exchange and interest rates,
future commodity prices relating to the oil and gas industry, future oil
rig activity levels, trading data, cost estimates, Superior’s ability to
obtain financing on acceptable terms, the successful completion of
acquisitions contributing approximately $10 million to $200 million in
annual EBITDA (including synergies), organic growth of approximately
3-5% in annual EBITDA for each business, the anticipated and sustained
recovery in the chlor-alkali sector within Specialty Chemicals and no
significant divestitures or changes in the strategic direction of the
business. The forward looking information is also subject to the risks
and uncertainties set forth below.
By its very nature, forward-looking information involves numerous
assumptions, risks and uncertainties, both general and specific. Should
one or more of these risks and uncertainties materialize or should
underlying assumptions prove incorrect, as many important factors are
beyond our control, Superior’s actual performance and financial results
may vary materially from those estimates and intentions contemplated,
expressed or implied in the forward-looking information. These risks and
uncertainties include incorrect assessments of value when making
acquisitions, increases in debt service charges, the loss of key
personnel, fluctuations in foreign currency and exchange rates,
inadequate insurance coverage, liability for cash taxes, counterparty
risk, compliance with environmental laws and regulations, reduced
customer demand, operational risks involving our facilities, force
majeure, labour relations matters, Superior’s ability to access external
sources of debt and equity capital, and the risks identified in
Superior’s most recent Annual Information Form. The preceding list of
assumptions, risks and uncertainties is not exhaustive. Readers are also
encouraged to review a copy of the presentation to be used by Superior
in conjunction with Investor Day for further detailed information in
respect of the Evolution 2020 strategic initiative.
When relying on forward-looking information to make decisions with
respect to Superior, investors and others should carefully consider the
preceding factors, other uncertainties and potential events. Any
forward-looking information is provided as of the date of this release
and, except as required by law, Superior does not undertake to update or
revise such information to reflect new information, subsequent or
otherwise. For the reasons set forth above, investors should not place
undue reliance on forward-looking information.
Non-GAAP Financial Measures
In this
release, Superior has used the following term that is not defined by
International Financial Reporting Standards (a “Non-GAAP Financial
Measure”), but is used by management to evaluate the performance of
Superior and its business: earnings before interest, taxes, depreciation
and amortization (“EBITDA”) from operations. This measure may also be
used by investors, financial institutions and credit rating agencies to
assess Superior’s performance and ability to service debt. Non-GAAP
financial measures do not have standardized meanings prescribed by GAAP
and are therefore unlikely to be comparable to similar measures
presented by other companies. Non-GAAP measures should not, therefore,
be considered in isolation or used in substitute for measures of
performance prepared in accordance with GAAP. In particular, investors
are cautioned that EBITDA from operations should not be construed as an
alternative to net earnings, cash flow from operating activities or
other measures of financial results determined in accordance with GAAP
as an indicator of Superior’s performance.
Securities regulations require that non-GAAP financial measures are
clearly defined, qualified and reconciled to their most comparable GAAP
financial measures. Except as otherwise indicated, these non-GAAP
financial measures are calculated and disclosed on a consistent basis
from period to period. Specific items may only be relevant in certain
periods.
EBITDA from operations is defined as Adjusted EBITDA excluding costs
that are not considered representative of Superior’s underlying core
operating performance, including gains and losses on foreign currency
hedging contracts, corporate costs and transaction and other costs.
Adjusted EBITDA represents earnings before interest, taxes,
depreciation, amortization, losses (gains) on disposal of assets,
finance expense, restructuring costs, transaction and other costs, and
unrealized gains (losses) on derivative financial instruments.
Management uses EBITDA from operations to set targets for Superior
(including annual guidance and variable compensation targets). EBITDA
from operations and Adjusted EBITDA are reconciled to net earnings
before income taxes.
See “Non-GAAP Financial Measures” in Superior’s most recent MD&A for
further discussion of non-GAAP measures used by Superior and their
reconciliations.
For further information about Superior, please visit our website at: www.superiorplus.com
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