Company Announcements

Key Highlights

• New Target for Propane Transformation: Increasing Superior Delivers target from $50M+ to $70M+ of incremental Adjusted EBITDA by 2027.
• New Consolidated Financial Targets: Introducing three-year financial targets, including approximate compound annual growth rates (CAGRs) of: 8% for Adjusted EBITDA⁽¹⁾, 17% for Adjusted EBTDA⁽¹⁾ per share and 40% for Free Cash Flow⁽¹⁾ as well as significant improvements on return on invested capital (ROIC)⁽¹⁾ from 2024 to 2027.
• Strengthen Balance Sheet and Capital Allocation Priorities: Expecting to reduce Leverage Ratio⁽¹⁾ from 4.1x to below 3.0x over the three-year period from 2025 to 2027, while allocating ~C$400M to share repurchases.

⁽¹⁾ Adjusted EBITDA, Adjusted EBTDA per share, Free Cash Flow, ROIC and Leverage Ratio are Non-GAAP Financial Measures. See “Non-GAAP Financial Measures and Ratios” section below.

TORONTO--(BUSINESS WIRE)--Apr. 2, 2025-- Superior Plus Corp. (“Superior Plus” or “the Company”) (TSX: SPB), a leading North American distributor of propane, compressed natural gas (CNG), renewable energy and related products, will host its 2025 Investor Day in Toronto today, Wednesday, April 2, 2025, from 8:30 a.m. until 12:30 p.m. ET. President and Chief Executive Officer Allan MacDonald and Chief Financial Officer Grier Colter, along with key members of the leadership team, will present the Company’s strategic roadmap.

The presentations will cover several topics, including Superior Delivers, the Company’s propane transformation,which is expected to generate $70M+ in incremental annual Adjusted EBITDA by 2027, up from the previous $50M+ target. This growth is driven by three core pillars: industry-leading cost-to-serve; customer growth; and wholesale advantage. In addition, the Company will outline its strategy for its CNG division, which has a leading platform to enable capital efficient growth and increased free cash flow generation.

"We are excited to present the details of our strategy for Superior Plus today, including our ability to drive significant shareholder value,” said Allan MacDonald, President and CEO, Superior Plus. “We have established a platform for success, which is expected to drive significant growth in cash flow per share. We are confident the transformation Superior Plus is undergoing will create tremendous value for shareholders over the next three years and set the Company up for long-term success as a best-in-class energy solutions provider," said MacDonald.

Introducing 2027 Financial Targets and Three-Year Growth Rates

2025 Investor Day Event Details

The event will include formal presentations and a question-and-answer session with the executive team. The live webcast of the presentation is available here. An archived copy of the webcast will be available within 24 hours following the event. The full presentation slides are available here.

About Superior Plus

Superior Plus is a leading North American distributor of propane, compressed natural gas, renewable energy and related products and services, servicing approximately 770,000 customer locations in the U.S. and Canada. Through its primary businesses, propane distribution and CNG, RNG and hydrogen distribution, Superior Plus safely delivers low carbon¹ fuels to residential, commercial, utility, agricultural and industrial customers not connected to a pipeline. By displacing more carbon intensive fuels, Superior is a leader in the energy transition and helping customers lower operating costs and improve environmental performance.

¹ Superior Plus defines ‘low carbon’ and ‘lower carbon’ fuels as those with a lower carbon intensity than fossil fuels that may be utilized in the same application (e.g. diesel, gasoline).

Forward-Looking Statements and Information

This news release contains information or statements that are or may be “forward-looking statements” within the meaning of applicable Canadian securities laws. When used in this presentation, the words “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “forecast”, “project”, “intend”, “target”, “potential”, “continue” or the negative of these terms or terminology of a similar nature as they relate to Superior Plus or an affiliate/subsidiary of Superior Plus are intended to identify forward-looking statements. Forward-looking statements in this news release include, without limitation, information and statements relating to: the company’s future financial position; the anticipated initiatives, impact of, and our ability to successfully execute on, the Superior Delivers transformation; expected growth of Adjusted EBITDA, including estimated target of incremental Adjusted EBITDA of $70+ million from Superior Delivers, 2027 financial targets for Adjusted EBTDA per share, FCF, FCF per share, Adjusted Net Income, Adjusted EPS, Adjusted ROA, ROIC and Leverage Ratio; capital expectations between 2025 to 2027; expected aggregate dollar amount of share repurchases by the end of 2027; and other statements that are not historical facts. Although Superior Plus believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that they will prove to be correct.

Forward-looking statements made by Superior Plus are based on a number of assumptions believed by Superior Plus to be reasonable, including assumptions about the growth of each of the Company’s businesses from 2025 to 2027 (the “timeframe”); our ability to execute on the goals and targets of the Superior Delivers transformation over the timeframe, including $35 million in Adj EBITDA growth from cost-to-serve improvements, $30 million in Adj EBITDA growth from customer growth initiatives; and, $5 million in Adj EBITDA growth from the company’s wholesale business; $20 million Adj EBITDA growth from the base propane business; $25 million in Adj EBITDA growth attributable to Certarus; foreign exchange rates; competition; expected average weather; approximately $25 million of annual corporate costs; interest rates remaining flat with the current level; a $10 million to $20 million investment in working capital; approximately 40 million shares repurchased over the timeframe; future trading volume and share prices of Superior’s common shares, the average acquisition price of common shares repurchased over the timeframe; the holder of all of the preferred shares in our U.S. subsidiary elects to convert the preferred shares for approximately 30 million common shares of Superior Plus in mid-2027; management’s estimates and expectations in relation to future economic and business conditions and the resulting impact on growth and accretion in various financial metrics; the absence of significant undisclosed costs or liabilities associated with acquisitions; and other assumptions disclosed in Superior Plus’ 2024 Annual MD&A available at SEDAR+ at www.sedar.ca and on Superior Plus’ website at http://www.superiorplus.com/investor-relations/financial-reports/. Further information relating to the assumptions upon which forward-looking statements are based can be found in the full Investor Day presentation accessible at the link provided above. Superior Plus cautions that the assumptions used to prepare Superior’s estimated financial guidance could prove to be incorrect or inaccurate.

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 Plus’ actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include the success and of, and timing to achieve, the initiatives being pursued pursuant to the Superior Delivers transformation, ongoing capital requirements of the businesses, weather differing materially from the five year average weather, market conditions, demand and competition for CNG in jurisdictions where Certarus operates, future trading volume and share prices of Superior’s common shares, economic activity in the oil and gas sector, commodity prices, risks relating to incorrect assessments of value when making acquisitions, failure to realize expected cost-savings and synergies from acquisitions, increases in debt service charges, the loss of key personnel, fluctuations in foreign currency and exchange rates, fluctuations in commodity prices, increasing rates of inflation, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities and equipment, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) our Annual MD&A under the heading “Risk Factors” and (ii) Superior Plus’ most recent Annual Information Form available under Superior’s profile on SEDAR+ at www.sedar.ca. The preceding list of assumptions, risks and uncertainties is not exhaustive.

The estimates and targets regarding Superior Plus’ future financial performance, including, but not limited to, estimated target of incremental Adjusted EBITDA of $70 million from the Superior Delivers transformation by 2025, are provided herein to assist readers in understanding Superior Plus’ estimated and targeted financial results, and such information may not be appropriate for other purposes. Superior Plus and its management believe that such information has been prepared based on assumptions that are reasonable in the circumstances, reflecting management’s best estimates and judgements, and represents, to the best of management’s knowledge and opinion, Superior Plus’ estimated and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.

We caution readers not to place undue reliance on forward looking information as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information.

Non-GAAP Financial Measures

Throughout this news release, Superior Plus has used the following terms that are not defined under IFRS, which are used by management to evaluate the performance of Superior Plus and its businesses: Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA” or “Adj EBITDA”), Adjusted Earnings Before Taxes, Depreciation and Amortization (“Adjusted EBTDA” or “Adj EBTDA”) per share, Free Cash Flow (“FCF”), FCF per share, Adjusted Net Income, Adjusted EPS, Return on Invested Capital (“ROIC”), Adjusted Return on Assets (“Adjusted ROA”) and Leverage Ratio. These measures may also be used by investors, financial institutions and credit rating agencies to assess Superior Plus’ performance and ability to service debt. Non-GAAP financial measures do not have standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP and other financial measures are clearly defined, explained and reconciled to their most directly comparable measure presented in the (primary) financial statements. 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. The intent of using Non-GAAP financial measures is to provide additional useful information to investors and analysts; the measures do not have standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP financial measures differently.

Adjusted EBITDA is consistent with the Segment profit (loss) disclosed in Note 26 Reportable Segment Information of the audited consolidated financial statements for the year ended December 31, 2024. Adjusted EBITDA from operations is the sum of U.S. Propane, Canadian Propane, Wholesale Propane and CNG Segment profit (loss).

Adjusted EBTDA is calculated as Adjusted EBITDA less cash interest expense. Cash interest expense is the sum of interest on borrowings and interest on lease liability which are found in Note 19 Supplemental Disclosure of Consolidated Statements of Net Earnings (Loss) in the audited consolidated financial statements for the year ended December 31, 2024. Cash interest expense for the twelve months ended December 31, 2024 was $101.8 million. Adjusted EBTDA per share is calculated by dividing Adjusted EBTDA by the weighted average shares assuming the exchange of the issued and outstanding preferred shares into common shares.

Free Cash Flow is calculated as Adjusted EBTDA less cash tax ($26.9 million) less capital expenditures including leases ($171.1 million) less transaction, restructuring and other costs ($13.5 million) less preferred share dividends ($18.9 million) less change in net working capital ($30.1 million) which are found in Note 19 Supplemental Disclosure of Consolidated Statements of Net Earnings (Loss) in the audited consolidated financial statements for the year ended December 31, 2024. Free Cash Flow per share is calculated by dividing Free Cash Flow by the weighted average common shares and assumes that the holders of the preferred equity exercise their right to convert the preferred shares into 30 million common shares in mid-2027.

Adjusted Net Income is calculated as Net loss for the year plus unrealized loss on financial and non-financial derivatives and foreign currency translation ($47.9 million) plus deferred tax ($13.6 million) plus transaction, restructuring and other costs ($13.5 million) less preferred share dividends ($18.9 million) which are found in Note 19 Supplemental Disclosure of Consolidated Statements of Net Earnings (Loss) in the audited consolidated financial statements for the year ended December 31, 2024. Adjusted EPS is calculated by dividing Adjusted Net Income by the weighted average common shares and assumes that the holders of the preferred equity exercise their right to convert the preferred shares into 30 million common shares in mid-2027.

Leverage Ratio is determined by dividing Superior’s Net Debt by its Pro Forma Adjusted EBITDA, both of these components are Non-GAAP Financial Measures. Pro Forma Adjusted EBITDA is Adjusted EBITDA calculated on a 12-month basis giving effect to acquisitions adjusted to the first day of the calculation period. Net Debt is calculated as the sum of borrowings before deferred financing fees ($1,717.1 million) and lease liabilities ($165.3 million) reduced by cash and cash equivalents ($17.1 million) as at December 31, 2024.

Certain additional disclosures for these Non-GAAP financial measures, including an explanation of the composition of these financial measures, how they provide helpful information to an investor, and any additional purposes management uses for them, are incorporated by reference from the Non-GAAP Financial Measures and Reconciliations section in Superior Plus’ 2024 Annual MD&A 2024 Annual MD&A available at SEDAR+ at www.sedar.ca and on Superior Plus’ website at http://www.superiorplus.com/investor-relations/financial-reports/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402359711/en/

Superior Plus Corp.
Website: www.superiorplus.com
E-mail: investor-relations@superiorplus.com
Toll-Free: 1-866-490-PLUS (7587)

Chris Lichtenheldt, Vice President, Investor Relations
Tel: (905) 285-4988

Carolyn Skinner, Senior Manager, Corporate Communications
Tel: (416) 428-9186

Source: Superior Plus