Parkland reports first quarter 2008 financial results

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First Quarter 2008 Performance Highlights:

    -   Record Q1 fuel sales volume of 556 million litres, up 26% from
        440 million litres a year earlier
    -   Record Q1 sales of $483 million, up 45% from $334 million a year
        earlier
    -   EBITDA of $17.2 million, down 26% from $23.1 million a year earlier
    -   Completed acquisition of Wiebe Transport assets and operations
    -   Announced acquisition of NOCO Energy fuel marketing business in
        Ontario subsequent to the end of the quarterRED DEER, AB, May 2 /CNW/ - Parkland Income Fund (TSX:PKI.UN) today
announced its business performance for the three months ended March 31, 2008.
Volumes and revenues achieved record levels for any first quarter in the
Fund's history. EBITDA was lower than a year earlier, primarily due to lower
contributions from our share of refinery margins. On the other hand, western
Canadian retail margins were strong relative to prior years. The refinery
margins were lower than 2007 but relatively consistent with lower winter
levels experienced over a longer time frame.
    President and CEO Mike Chorlton said, "The record fuel sales volume and
revenue for the quarter reflects our long-term strategy to drive steady,
sustainable growth through strategic acquisitions and internal business
development. Although the acquisitions in the Commercial segment added
operating costs, they provided strong profitability to offset some of the
seasonal weakness in fuel margins. We are actively addressing the pressure on
EBITDA by focusing on improving operational efficiency, capitalizing on
synergies, and investing in systems, process re-engineering and senior
personnel to complete the integration of the acquired businesses and build a
foundation for future growth."
    "More broadly, economic conditions in northern Alberta resulted in a
slowing of the Fund's internal pace of growth during the quarter. The region's
economy was hampered by mill closures and reduced activity in the lumber
industry as well as lower levels of oilfield drilling in response to weaker
natural gas prices and anticipated higher royalty rates."

    Fuel Volumes

    Gas, diesel and propane sales volumes were strong and include a full
quarter of operations from all the 2007 acquisitions. Total fuel sales volume
for the first three months of 2008 was 556 million litres, an increase of 26%
from 440 million litres a year earlier. The comparative quarter in 2007
included only two months of operation of Neufeld Petroleum and none for Joy
Propane and United Petroleum Products.
    During the first quarter of 2008 several of the western Canadian refiners
experienced production interruptions due to unscheduled maintenance. Although
all marketers were placed on daily product allocation limits at times, we were
able to meet our customers' product requirements at all times and did not
experience supply interruptions.

    Margins

    Gross margins on diesel were strong throughout the quarter but gasoline,
which accounts for 69% of our volume, experienced a smaller contribution from
the refiners' margins, which we share in part.
    We were able to grow our aggregate fuel gross profit through acquisitions
in our commercial business segment. With these acquisitions we were able to
maintain overall average gross margins per litre in a similar range to the
same quarter last year but added significant additional operating and general
and administrative costs in doing so.
    Our marketing, general and administrative expenses increased as a result
of the acquisitions in 2007 as well as an expenditure of $0.5 million in the
first quarter this year on a project to upgrade our technology and our
business processes.

    EBITDA

    A comparison of EBITDA for the first quarter of 2008 with the first
quarter of 2007 is available online at
http://files.newswire.ca/714/WaterfallMay2008.pdf

    Distributions

    Cash available for distribution exceeded actual cash distributed for the
first quarter and the monthly distribution rate was maintained at the rate of
$0.105 per unit.

    Update on Beaver Hills Project

    Work on the Beaver Hills project, which is in the feasibility study phase
for proposed construction of a $300 million fuel and chemical production
facility in the Edmonton area, is continuing on schedule. We have a 25%
interest in this project and expect to reach a decision regarding construction
around year-end.

    Recent Acquisitions

    During the first quarter we completed the acquisition of the assets and
operations of Wiebe Transport of Grande Prairie, Alberta. The acquisition
expands our fuel delivery capacity and reduces our reliance on outside
haulers.
    Management continues to assess acquisitions which will add accretive cash
flow and unitholder value. On April 24th, we announced agreement to acquire
the NOCO Energy fuel marketing business in Ontario. This transaction expands
Parkland's geographic presence into Central Canada and establishes its
position for further growth.

    Outlook

    All business segments remain profitable and we continue to increase sales
volumes. Distributable cash flow was above distributions during the first
quarter of 2008 and the Board continues to believe that the current
distribution rate is appropriate. The second and third quarters historically
have produced increased fuel margins. We look forward to a strong agricultural
inputs market in 2008 although demand for our products in that industry is
sensitive to weather.

    Summary Financial Results

    For the Three Months Ended March 31st, 2008--------------------------------------
    Thousands of Canadian dollars, except
     per unit amounts and fuel volumes
    -------------------------------------------------------------------------
                                               Q1 2008    Q1 2007   % Change
    -------------------------------------------------------------------------
    Revenue                                    482,893    334,006       45 %
    -------------------------------------------------------------------------
    Net Earnings(1)                             10,220     17,107      (40 %)
    -------------------------------------------------------------------------
    Net Earnings Per Unit(1)                      0.20       0.37      (46 %)
    -------------------------------------------------------------------------
    Average Number of Units                     50,300     47,466        6 %
    -------------------------------------------------------------------------
    EBITDA(2)                                   17,245     23,095      (26 %)
    -------------------------------------------------------------------------
    Distributable Cash Flow Per Unit              0.33       0.47      (30 %)
    -------------------------------------------------------------------------
    Distributions per Unit                        0.32       0.24       34 %
    -------------------------------------------------------------------------
    Fuel Sales Volumes (millions of litres)        556        440       26 %
    -------------------------------------------------------------------------

    (1) Certain year-earlier numbers have been restated as a result of
        Parkland's early adoption of the new CICA standards on inventories to
        record the cost of inventory using the First In, First Out method.

    (2) EBITDA, which is not a financial measure under Generally Accepted
        Accounting Principles (GAAP), refers to Earnings Before Interest on
        Long-Term Debt, Income Tax Expense, Amortization of Capital Assets,
        Refinery Remediation Accrual and Loss on Disposal of Capital Assets.
        It can be calculated from the GAAP amounts included in the Fund's
        financial statements and a table reconciling net income in accordance
        with GAAP to EBITDA is included in the Management's Discussion and
        Analysis (MD&A). Management believes that EBITDA is a relevant
        measure to users of its financial information as it provides an
        indication of pre-tax earnings available to distribute to debt and
        equity holders in the Fund. The Fund's definition of EBITDA may not
        be consistent with other providers of financial information and
        therefore may not be comparable.The MD&A as well as the complete unaudited interim Consolidated Financial
Statements and notes for the first quarter of 2008 are available online at
http://files.newswire.ca/714/ParklandQ108MDAFS.pdf.

    Investment Community Conference Call & Webcast

    Parkland will hold a conference call to discuss the first quarter results
as follows:Monday, May 5th, 2008 at 9:00 a.m. MDT
         Direct:        416-644-3414
         Toll-free:   1-800-733-7560The webcast can be accessed at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2256760

    A replay of the conference call will be available from May 5, 2008,
11:00 a.m. MDT to May 19, 2008 at 11:59 p.m. MDT. The dial in information is
as follows:Direct:        416-640-1917
    Toll-free:   1-877-289-8525
    Passcode:          21270194, followed by the number signAbout Parkland Income Fund

    Parkland Income 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
approximately 530 locations, Parkland has developed a strong market niche in
western and northern Canadian non-urban markets. The Fund supplies propane,
bulk fuel, heating oil, lubricants, industrial fluids, agricultural inputs and
associated services to commercial and industrial customers in Alberta, British
Columbia and the Yukon Territory under the Neufeld, Joy, United Petroleum and
Great Northern Oil brands.
    Additionally, Parkland operates the Bowden refinery near Red Deer,
Alberta as a storage and contract-processing site. The Fund is also a
25 percent joint venture partner in a study, due to be completed by the end of
2008, to determine the feasibility of building a $300 million facility to
process condensate and pygas to produce gasoline, diesel fuel, benzene and
improved condensate.
    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.
    The Fund's units trade on the Toronto Stock Exchange (TSX) under the
symbol PKI.UN. For more information, visit www.parkland.ca.

    If you prefer to receive Company news releases via e-mail, please request
at corpinfo@parkland.ca.

    Forward Looking Statements

    Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Parkland. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"projected", "anticipates", "estimates", "continues", or similar words and
include but are not limited to, statements regarding the accretive effects of
the acquisition and the anticipated benefits of the acquisition. Parkland
believes the expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations will prove to
be correct and such forward-looking statements should not be unduly relied
upon. Forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties some of which are described in the
Fund's annual report, annual information form and other continuous disclosure
documents. Such forward-looking statements necessarily involve known and
unknown risks and uncertainties and other factors, which may cause the Fund's
actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forward-looking statements. Such factors include, but are not
limited to: general economic, market and business conditions; industry
capacity; competitive action by other companies; refining and marketing
margins; the ability of suppliers to meet commitments; actions by governmental
authorities including increases in taxes; changes in environmental and other
regulations; and other factors, many of which are beyond the control of
Parkland. Any forward-looking statements are made as of the date hereof and
the Fund does not undertake any obligation, except as required under
applicable law, to publicly update or revise such statements to reflect new
information, subsequent or otherwise.

    %SEDAR: 00018115E



For further information: Mike W. Chorlton, President and CEO, (403)
357-6400; John G. Schroeder, Vice President and CFO, (403) 357-6400