RED DEER, AB, April 30 /CNW/ - Parkland Income Fund (TSX: PKI.UN) announced today it will delay the release of its 2010 first quarter results previously scheduled for May 3, 2010. The delay stems from complications associated with the implementation of a new Enterprise Resource Planning (ERP) system in March 2010. These ERP complications do not impact Parkland's January or February results or the results from either Bluewave Energy or Columbia Fuels. Parkland will release its first quarter results as soon as they are available.
President and CEO Mike Chorlton said, "The implementation of a new ERP system is always a challenge. We undertook the implementation of this new system to consolidate financial systems and business processes from past acquisitions onto one platform. As part of this process, we encountered early difficulties in our invoicing systems. This slowed our ability to issue accurate invoices to certain customers and, in turn, has created timing delays in finalizing the quarterly reporting to our satisfaction. We are confident that this issue with the new ERP system is a one-time event."
"We apologize to those customers who were affected by this change and thank them for their patience and continued support," added Mr. Chorlton.
Further, the Fund obtained early consent from its bank syndicate (co-led by HSBC Bank Canada and Canadian Imperial Bank of Commerce) to renew its borrowing facility until June 2011. This included the temporary 2010 relaxation of certain covenants relating to funded debt to EBITDA and total debt to EBITDA. The relaxation was obtained to accommodate working capital increases, as invoicing problems created by the new ERP system implementation have resulted in a delay in payments from some of the affected customers.
About Parkland Income Fund
Parkland Income Fund is the largest independent fuel marketer in Canada with a coast-to-coast network of retail, commercial, cardlock, heating oil and propane distribution outlets. The Fund currently operates retail and wholesale fuels and convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands and through independent branded dealers, and transports fuel and other products through its Distribution division. With 622 locations, Parkland has developed a strong market niche in Canada outside of major urban markets focused in the West and Ontario. The Fund supplies propane, bulk fuel, heating oil, lubricants, industrial fluids, agricultural inputs and associated services to commercial and industrial customers across Canada under the Neufeld, United Petroleum, Columbia Fuels, Bluewave Energy and Great Northern Oil brands. Additionally, Parkland operates the Bowden refinery near Red Deer, Alberta as a storage and contract-processing site.
Parkland is focused on creating and delivering value for its unitholders through the continuous refinement of its site portfolio, increasing revenue diversification through growth in non-fuel revenues and active supply chain management.
Parkland units and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI.UN and PKI.DB. For more information, visit www.parkland.ca.
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SOURCE Parkland Fuel Corporation
For further information: For further information: Parkland Industries Ltd., Administrator of Parkland Income Fund: Red Deer: Mike W. Chorlton, President and CEO, (403) 357-6400, Ken J. Grondin, Senior Vice President and CFO, (403) 357-6400