Superior Delivers
Driving Efficiencies, Delivering Growth
Annual Report 2024
F I N A N C I A L
H I G H L I G H T S
Financial Results
(millions of U.S. dollars)
2024
2023
Revenues
2,382.3
2,482.5
Gross profit
1,284.4
1,194.3
Adjusted EBITDA (1)
455.5
414.7
Adjusted EBTDA (1)
353.7
323.9
Net earnings (loss)
(17.9)
57.6
Cash dividends declared on common shares
105.5
126.4
(U.S. dollar per basic and diluted share except dividends paid and shares outstanding)
2024
2023
Adjusted EBITDA (1)(2)
1.64
1.60
Adjusted EBTDA (1)(2)
1.27
1.25
Net earnings (loss) attributable to Superior
(0.15)
0.17
Dividends declared per common share (2)(3)
0.585
0.72
Weighted average shares outstanding (millions)
277.7
259.0
(1)
Adjusted EBITDA and Adjusted EBTDA are not standardized measures under IFRS. See “Non-GAAP Financial Measures and Reconciliations” section in the MD&A for a
description of each measure.
(2)
The weighted average number of shares outstanding for the year ended December 31, 2024 was 277.7 million (year ended December 31, 2023 – 259.0 million). The weighted
average number of shares assumes the exchange of the issued and outstanding preferred shares into common shares. There were no other dilutive instruments for the year
ended December 31, 2024.
(3)
Amounts expressed in Canadian dollars.
Financial Position
(millions of U.S. dollars)
2024
2023
Total assets
3,686.5
3,907.1
Total liabilities
2,540.7
2,569.8
Gross capital expenditures (1)
189.4
190.8
Senior secured debt (2)
746.4
700.7
Net debt (2)(3)
1,865.3
1,860.8
Leverage Ratio (3)
4.1x
3.9x
(1)
Includes investment in leases amounting to $29.0 million in 2024 and $42.4 million in 2023. Excludes proceeds from the divestiture of businesses.
(2)
Senior secured debt is stated before deferred issue costs.
(3)
See “Non-GAAP Financial Measures and Reconciliations” in Superior’s Management’s Discussion and Analysis (MD&A) for additional details.
1
Annual Report 2024
Superior Plus
Table of Contents
IFC Financial Highlights
2
President’s Message
3
Chairman’s Message
4
Management’s Discussion
and Analysis
38
Management’s
Responsibility for
Financial Statements
39
Independent Auditor’s
Report
42
Consolidated Financial
Statements
46
Notes to the Consolidated
Financial Statements
96
Corporate Information
97
Business and Shareholder
Information
By building new capabilities within
our marketing teams, streamlining
operations across North America and
implementing data-based processes
and tools, we are becoming a more
agile, customer-focused organization.
2
Annual Report 2024
Superior Plus
Allan MacDonald
President and
Chief Executive Officer
Dear Shareholders,
In 2024, we made a number of fundamental strategic decisions that I believe are
critical to growing our business profitably and delivering significant value for
Superior’s shareholders for many years to come.
In November, we officially launched Superior Delivers, a multi-year transformation
designed to modernize our propane operations and expand our customer base.
Through this strategic initiative, we are leveraging data-driven insights to understand,
acquire and retain more customers, become a low-cost operator, and share best
practices across our teams to optimize our North American operations. These
changes are expected to drive margin expansion by lowering our operating costs,
increasing efficiencies, accelerating organic growth and enhancing customer
retention. By building new capabilities within our marketing teams, streamlining
operations across North America and implementing data-based processes and tools,
we are becoming a more agile, customer-focused organization.
In 2024, we saw a shift in the CNG sector and responded by altering our aggressive
investment in growth toward more moderate levels, re-focusing our efforts on
optimizing the performance of our existing assets. As we look to 2025, the team
intends to continue to focus on strategic growth opportunities for Certarus while
improving free cash flow through effective capital allocation.
Throughout the year, we also stated we would be reviewing our capital allocation
strategy to ensure we are building a solid financial foundation for Superior Plus
and investing in maximizing our shareholder returns. In keeping with this strategy,
we made the difficult but necessary decision to reduce our dividend in favour of
creating more financial flexibility for share repurchases and debt reduction. In
2024, we accelerated our share repurchase program, repurchasing 10.2 million
common shares before year-end, demonstrating our commitment to delivering
shareholder value. Over the longer term, we remain focused on financial prudence
and capital discipline which provides us with the flexibility to reinvest in operational
improvements, and position Superior Plus for sustainable, long-term growth.
Looking ahead, we are focused on two key operational priorities: (1) optimizing
operations to maximize the value of our existing assets; enhancing profitability and
increasing cash flow; and (2) driving organic growth and customer retention with
an expanded customer base, modernized operations and data-enabled operating
capabilities. Our team across Canada and the United States is fully committed to
executing these plans and creating long-term value for our shareholders.
I want to thank our Chairman David Smith and the board for their guidance, as well
as our employees, customers, and shareholders for their continued support.
We appreciate your continued trust and look forward to delivering on our
commitments in 2025 and beyond.
Thank you,
Allan MacDonald
President and Chief Executive Officer
Superior Plus Corp.
In 2024, we made a
number of fundamental
strategic decisions that
I believe are critical to
growing our business
profitably and delivering
significant value for
Superior’s shareholders
for many years to come.
3
Annual Report 2024
Superior Plus
David Smith
Chairman of the Board
Dear Shareholders,
As Chair of the Board of Superior Plus, I am pleased to share an update on our
progress in enhancing long-term value creation, positioning the company for
sustainable growth and continuing our commitment to board effectiveness and
regular board renewal.
Last year, Allan MacDonald and his leadership team began executing their visionary
plan to transform the propane business. With the launch of Superior Delivers, the
team is successfully transitioning from an acquisition-driven model to a strategy
centered on organic growth and operational efficiency. By collaborating across
borders, the team is gaining insights into our customers’ needs, behaviour and
profitability, and leveraging data, analytics, modernized processes and tools to
improve efficiency, accelerate organic growth and increase customer satisfaction
and retention.
In 2024, Certarus encountered a maturing industry with enhanced competition
in many sectors which, in turn, put pressure on our margins and returns and
prompted us to adjust our strategy. We scaled back capital spending and have re-
focused efforts on optimizing the performance of our existing assets. In 2025, the
team will focus on assessing strategic opportunities for growth while improving free
cash flow through effective capital allocation. Longer-term, we intend to evaluate
expansion opportunities for Certarus in new markets.
Over the last year, the Board, in collaboration with our leadership team, took
decisive steps to ensure our business remains competitive and well-positioned
for the future. Last year’s strategic decision to change Superior’s return of capital
allocation priority from dividends to share repurchases reflects our confidence in
the business and our commitment to financial prudence and capital discipline. With
a clear strategy and an exceptional management team, we are confident in our
ability to drive shareholder value.
While our share price performance in 2024 was disappointing, we are
confident that as we deliver financial results from our Superior Delivers propane
transformation and continue to employ a disciplined capital allocation strategy, the
market will react positively to this value creation.
Corporate governance, including board effectiveness and board renewal, remain at
the core of our responsibilities at Superior Plus. Since 2022, we have been focused
on carefully balancing the need to ensure continuity and the transfer of institutional
knowledge with the addition of new directors with the business skills, fresh
perspectives and expertise to support the change in our strategy and composition.
As we previously announced, at this year’s annual shareholder meeting we intend
to nominate three new individuals who possess these skills and expertise, for
election as directors of Superior.
To facilitate the board renewal process, Ms. Mary Jordan and Mr. Douglas Harrison
have determined not to stand for re-election. I would like to thank each of them for
their hard work and many contributions over the past decade which have helped set
the stage for Superior’s future growth. You will find further information on all our
director nominees in our proxy materials.
On behalf of the Board of Directors, I extend my deepest appreciation to
our shareholders for your trust and continued support. Your confidence fuels
our unwavering commitment to driving long-term value and achieving our
vision of Superior Plus being recognized as North America’s best-in-class energy
solutions provider.
We look forward to another year of progress and growth in 2025.
Sincerely,
David P. Smith
Chair of the Board
Superior Plus Corp.
With the launch of
Superior Delivers, the
team is successfully
transitioning from an
acquisition-driven model
to a strategy centered
on organic growth and
operational efficiency.
Management’s Discussion and Analysis
4
Annual Report 2024
Superior Plus
M A N A G E M E N T ’ S D I S C U S S I O N
A N D A N A L Y S I S
Three months and year ended
December 31, 2024 and 2023
This Management’s Discussion and Analysis (“MD&A”) contains information about
the performance and financial position of Superior Plus Corp. (“Superior”) as at
and for three and twelve months ended December 31, 2024 and 2023, as well as
forward-looking information about future periods. The information in this MD&A
is current to February 26, 2025, and should be read in conjunction with Superior’s
audited consolidated financial statements and notes thereto as at and for the
year ended December 31, 2024 and 2023.
The accompanying audited consolidated financial statements of Superior were prepared by and are the
responsibility of Superior’s management. Superior’s audited consolidated financial statements as at and
for the three and twelve months ended December 31, 2024 and 2023 were prepared in accordance with
IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”).
All financial amounts in this MD&A are expressed in millions of United States dollars except where
otherwise noted. All tables are for the three and twelve months ended December 31 of the period
indicated, unless otherwise stated. This MD&A includes forward-looking statements and assumptions.
See “Forward-Looking Information” for more details.
Non-GAAP Financial Measures
Throughout the MD&A, Superior has used the following terms that are not defined under IFRS, which are
used by management to evaluate the performance of Superior and its businesses: Earnings Before Interest,
Taxes, Depreciation and Amortization (“EBITDA”) from operations, Adjusted EBITDA, Operating Costs, Net
Debt, Leverage Ratio, Pro Forma Adjusted EBITDA, 2023 Pro Forma Adjusted EBITDA and Adjusted Gross
Profit. These measures 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 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. See “Non-GAAP
Financial Measures and Reconciliations” for more information about these measures.
Forward-Looking Information
Certain information included herein is forward-looking information within the meaning of applicable
Canadian securities laws. Forward-looking information may include statements regarding the objectives,
business strategies to achieve those objectives, expected financial results (including those in the area of risk
management), economic or market conditions, and the outlook of or involving Superior and its businesses.
Such information is typically identified by words such as “anticipate”, “believe”, “continue”, “estimate”,
“expect”, “plan”, “forecast”, “future”, “outlook”, “guidance”, “may”, “project”, “should”, “strategy”, “target”, “will” or
similar expressions suggesting future outcomes.
Superior Plus
5
Annual Report 2024
Forward-looking information in this document includes: future financial position, consolidated and business
segment outlooks, 2025 expected Adjusted EBITDA guidance including the impact of Superior Delivers,
the markets for our products and our financial results, expected Leverage ratio, business strategy and
objectives, development plans and programs, organic growth, weather, commercial demand in Canada
and the U.S., product pricing and sourcing, volumes and pricing, wholesale propane market fundamentals,
exchange rates, expected synergies from acquisitions, expected seasonality of demand, long-term incentive
plan accrual estimates and future economic conditions.
Forward-looking information is provided for the purpose of providing information about management’s
expectations and plans about the future and may not be appropriate for other purposes. Forward-
looking information herein 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. 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. Such assumptions include no material divestitures,
anticipated financial performance, current business and economic trends, the amount of future dividends
paid by Superior, business prospects, utilization of tax basis, regulatory developments, average Mobile
Storage Unit “MSU” base, impacts of cost-saving initiatives, currency exchange, inflation and interest rates,
future commodity prices relating to the oil and gas industry including the impact of tariffs if implemented,
future oil rig activity levels in the U.S. and Western Canada, trading data, cost estimates, our ability to obtain
financing on acceptable terms and statements regarding net working capital and capital expenditure
requirements of Superior, the assumptions set forth under the “Financial Outlook” sections in this MD&A.
Superior cautions that such assumptions could prove to be incorrect or inaccurate. The forward-looking
information is also subject to the risks and uncertainties set forth below.
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 expectations
contemplated, expressed or implied in the forward-looking information. These risks and uncertainties
include risks relating to incorrect assessments of value when making acquisitions, failure to realize expected
cost-savings, increases in debt service charges, colder average weather than anticipated, the loss of key
personnel, fluctuations in foreign currency and exchange rates, fluctuations in commodity prices including
the potential impact of tariffs being enacted, 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, force majeure, labour relations matters, our
ability to access external sources of debt and equity capital, and the risks identified in (i) this MD&A under
“Risk Factors to Superior” and (ii) Superior’s most recent Annual Information Form. The preceding list of
assumptions, risks and uncertainties is not exhaustive.
When relying on Superior’s 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 document 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.
Overview of Superior and Basis of Presentation
Superior consists of the following four reportable segments: U.S. Retail Propane Distribution (“U.S.
Propane”), Canadian Retail Propane Distribution (“Canadian Propane”), North American Wholesale Propane
Distribution (“Wholesale Propane”) and the Compressed Natural Gas Distribution segment (“CNG”) through
Certarus Ltd. (“Certarus”). The U.S. Propane segment distributes propane gas and liquid fuels primarily in
the Eastern United States and California; and, to a lesser extent, the Midwest to residential and commercial
customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to
residential and commercial customers. The Wholesale Propane segment distributes propane gas and
other natural gas liquids across Canada and the U.S. to wholesale customers and supplies the majority of
propane gas required by the Canadian Propane segment and a portion of the propane gas required by the
U.S. Propane segment. The CNG segment is a comprehensive low carbon energy solution provider engaged
primarily in the business of transporting and selling compressed natural gas and renewable natural gas and
to a lesser extent hydrogen for large-scale industrial and commercial customers in the United States and
Canada. Superior acquired all the issued and outstanding shares of Certarus on May 31, 2023.
Effective January 1, 2024, Superior elected to change its presentation currency from Canadian dollars to U.S.
dollars. The Company applied the change to a U.S. dollar presentation currency retrospectively and restated
the comparative 2023 financial information as if the U.S. dollar had been used as the reporting currency.
Management’s Discussion and Analysis
6
Annual Report 2024
Superior Plus
Amounts denominated in Canadian dollars are denoted with “C$” immediately prior to the stated amount.
In addition, Superior now reports sales volumes for the Propane distribution segments in millions of U.S.
gallons instead of litres using the conversion rate of 3.785 litres to a gallon.
During the year, US Propane divested certain non-strategic assets in Minnesota for net proceeds of
$11.3 million (the “Minnesota Divestiture”). In the prior year US Propane divested certain heating oil assets
for net proceeds of $17.3 million (the “Distillate Divestiture”) and Canadian Propane divested eight retail
propane locations in Northen Ontario as part of the Certarus acquisition for net proceeds of $27.3 million
(the “Northern Ontario Divestiture”). See Note 3 of the annual audited consolidated financial statements for
the year ended December 31, 2024 and 2023 for more details.
H I G H L I G H T S
• Superior’s fourth quarter Adjusted EBITDA(1) was $159.2 million, a decrease of $3.1 million from the prior
year quarter Adjusted EBITDA(1) of $162.3 million. Adjusted EBITDA(1) per share was $0.58 which was
consistent with the prior year quarter.
• Achieved 2024 Adjusted EBITDA(1) of $455.5 million an increase 10% compared to the prior Adjusted
EBITDA. Adjusted EBITDA per share increased 3% from $1.60 per share in 2023 to $1.64 per share
in 2024.
• The CNG segments Adjusted EBITDA grew 7% to $148.2 million compared to pro-forma Adjusted EBITDA
of $138.0 million in the prior year.
• Full-year 2025 Adjusted EBITDA expected to be up ~8% compared to 2024 Adjusted EBITDA of
$455.5 million, primarily due to the implementation of Superior Delivers, continued growth in the CNG
segment and the assumption of normal weather.
• In the fourth quarter of 2024 Superior reduced the quarterly dividend from C$0.18 per share to C$0.045
per share and redirected the cash savings to repurchase shares. Superior repurchased ~10.2 million
common shares during the fourth quarter and an additional ~3.0 million as of February 25, 2025
representing ~5.5% of the total common shares.
• Superior’s Leverage ratio(1) of 4.1x as at December 31, 2024 an increase from 3.9x as at
December 31, 2023.
• Full year Net Loss of $17.9 million compared to net earnings of $57.6 million in the prior year due
primarily to an unrealized loss on derivatives during the year compared to an unrealized gain in the prior
year, the impact of lower earnings in the propane segments partially offset by the full year impact of the
CNG segment.
(1) These amounts are Non-GAAP financial measures and/or Non-GAAP ratios, see “Non-GAAP financial measures and reconciliations” on
page 34 for more information.
Superior Plus
7
Annual Report 2024
F I N A N C I A L R E S U L T S
The following summary contains certain Non-GAAP financial information. See “Non-GAAP Financial
Measures and Reconciliations” on page 34 for more information about these measures.
Summary of Adjusted EBITDA
Three Months Ended
December 31(5)
Years Ended
December 31
(millions of dollars, except per share amounts)
2024
2023
2024
2023
U.S. Propane Adjusted EBITDA(1)
85.2
84.1
218.5
223.3
Canadian Propane Adjusted EBITDA(1)
29.7
37.0
82.3
99.0
Wholesale Propane Adjusted EBITDA(1)
10.5
12.1
32.2
47.0
CNG Adjusted EBITDA(1),(4)
39.2
34.7
148.2
70.5
Adjusted EBITDA from operations(1)
164.6
167.9
481.2
439.8
Corporate operating costs(1)
(5.4)
(5.6)
(25.7)
(25.1)
Adjusted EBITDA(1)
$159.2
$162.3
$455.5
$414.7
Adjusted EBITDA per share(1)(2)
$0.58
$0.58
$1.64
$1.60
Adjusted EBTDA per share(1)(2)
$0.49
$0.49
$1.27
$1.25
Dividends declared per common share
C$0.045
C$0.18
C$0.585
C$0.72
Volumes
U.S. Propane (millions of gallons)
109
115
345
382
Canadian Propane (millions of gallons)
79
81
267
292
Wholesale Propane (millions of gallons)(3)
105
108
357
388
CNG (thousands of million British
thermal units “MMBtu”)
7,305
6,140
29,407
13,846
Leverage ratio(1)
4.1x
3.9x
Capital expenditures
42.8
70.9
160.4
148.4
Proceeds on dispositions
(2.6)
(46.9)
(18.3)
(53.5)
Investment in leased assets
8.2
10.3
29.0
42.4
Net earnings (loss) for the period
4.2
57.8
(17.9)
57.6
Net (loss) earnings per share attributable to
Superior – basic and diluted
($0.00)
$0.20
($0.15)
$0.17
(1) These amounts are Non-GAAP financial measures and/or Non-GAAP ratios, see “Non-GAAP financial measures and reconciliations” on
page 34 for more information.
(2) The weighted average number of shares outstanding for the three months ended and year ended December 31, 2024 was
275.2 million and 277.7 million respectively (three months ended and year ended December 31, 2023 was 278.6 million and
259.0 million respectively). The weighted average number of shares assumes the exchange of the issued and outstanding preferred
shares into common shares. There were no other dilutive instruments for the three months and year ended December 31, 2024
and 2023.
(3) Represents sales to third-parties and excludes sales volumes to the Canadian and U.S. Propane segments.
(4) CNG Adjusted EBITDA for the year ended December 31, 2023 is from the date of acquisition on May 31, 2023.
(5) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of
the year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively.
The results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Management’s Discussion and Analysis
8
Annual Report 2024
Superior Plus
Results for the year ended December 31, 2024
Adjusted EBITDA for the year ended December 31, 2024 was $455.5 million, an increase of $40.8 million or
10% compared to the prior comparable period Adjusted EBITDA of $414.7 million. The increase is due to
higher Adjusted EBITDA from operations and partially offset by marginally higher corporate costs. Adjusted
EBITDA from operations increased by $41.4 million compared to the prior year primarily due to full year
of earnings of the CNG segment in the current year compared to the prior year, partially offset by lower
Adjusted EBITDA from operations in the propane distribution segments.
CNG Adjusted EBITDA was $148.2 million, an increase of $77.7 million primarily due to the impact of the
comparative figures only representing earnings from May 31, 2023 to December 31, 2023 and to a lessor
extent the impact of a higher MSU base partially offset by the impact of lower margins.
U.S. Propane Adjusted EBITDA was $218.5 million, a decrease of $4.8 million or 2% primarily due to the
impact of warmer weather on sales volumes and the impact of the Distillate and to a lesser extent the
Minnesota divestitures partially offset by higher average unit margins.
Canadian Propane Adjusted EBITDA was $82.3 million, a decrease of $16.7 million or 17% primarily due to
the impact of the Northern Ontario Divestiture and lower sales volumes partially offset by higher average
unit margins.
Wholesale Propane Adjusted EBITDA was $32.2, a decrease of $14.8 million or 31% primarily due to weaker
market differentials compared to the prior year, decreased sales demand due to weaker market conditions
in the West and the impact of warm weather.
Corporate operating costs were $25.7 million compared to $25.1 million in the prior comparable period.
The increase is due to higher incentive plan costs in the current period as a result of hedge losses that
were not proportionally offset by incentive cost reductions due to hedge ineffectiveness partially offset
by the impact of management onboarding costs incurred in the prior year related to the change in senior
management.
Results for the three months ended December 31, 2024
Adjusted EBITDA for the three months ended December 31, 2024 was $159.2 million, a decrease of
$3.1 million or 2% compared to the prior year quarter Adjusted EBITDA of $162.3 million. The decrease
is primarily due to lower Adjusted EBITDA from operations. Adjusted EBITDA from operations decreased
by $3.3 million compared to the prior year quarter primarily due to lower Adjusted EBITDA in Canadian
Propane and to a lesser extent Wholesale Propane partially offset by higher Adjusted EBITDA related to
CNG and to a lesser extent US Propane. Corporate costs were consistent with the prior year quarter.
Canadian Propane Adjusted EBITDA was $29.7 million, a decrease of $7.3 million or 20% primarily due to
the timing of carbon credit sales, the impact of the Northern Ontario Divestiture in the prior year and lower
sales volumes.
Wholesale Propane Adjusted EBITDA was $10.5 million, a decrease of $1.6 million or 13% primarily due to
weaker market differentials and lower sales volumes.
CNG Adjusted EBITDA was $39.2 million, an increase of $4.5 million or 13% primarily due to the impact of
a higher average MSU asset base compared to the prior year quarter and operating efficiencies partially
offset by pricing pressures from increased competition mainly in the oil and gas segment.
U.S. Propane Adjusted EBITDA was $85.2 million, an increase of $1.1 million or 1% primarily due
to higher unit margins partially offset by lower sales volumes and the impact of the Distillate and
Minnesota Divestitures.
Corporate operating costs were $5.4 million compared to $5.6 million in the prior year quarter. The impact
of higher incentive plan costs in the current period as a result of hedge losses that were not proportionally
offset by incentive cost reductions due to hedge ineffectivenesspartially offset by the impact of an insurance
provision recorded in the prior year.
Superior Plus
9
Annual Report 2024
R E S U L T S O F S U P E R I O R ’ S O P E R A T I N G S E G M E N T S
Superior’s operating segments consists of U.S. Propane, Canadian Propane, Wholesale Propane, CNG
and Corporate.
U.S. Propane
U.S. Propane’s operating results:
Three Months Ended
December 31(4)
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Revenue
323.3
334.6
1,037.4
1,182.6
Cost of Sales
(140.3)
(151.0)
(462.4)
(568.2)
Gross profit
183.0
183.6
575.0
614.4
Realized (loss) gain on derivatives related to
commodity risk management(1)
(0.9)
(2.8)
1.6
(21.4)
Adjusted gross profit(2)
182.1
180.8
576.6
593.0
SD&A
(123.0)
(124.3)
(483.3)
(504.4)
Add back (deduct):
Amortization and depreciation included
in SD&A(3)
28.8
31.6
118.3
130.5
Transaction, restructuring and other costs(3)
0.3
2.8
5.6
11.6
Loss (gain) on disposal of assets and
impairment(3)
(3.0)
(6.8)
1.3
(7.4)
Operating costs(2)
(96.9)
(96.7)
(358.1)
(369.7)
Adjusted EBITDA(2)
85.2
84.1
218.5
223.3
Add back (deduct):
Loss (gain) on disposal of assets and
impairment(3)
3.0
6.8
(1.3)
7.4
Transaction, restructuring and other costs(3)
(0.3)
(2.8)
(5.6)
(11.6)
Amortization and depreciation included in
SD&A(3)
(28.8)
(31.6)
(118.3)
(130.5)
Unrealized (loss) gain on derivative financial
instruments
6.1
(7.2)
6.3
17.5
Finance expense
(1.3)
(2.6)
(6.0)
(7.5)
Earnings before income tax
63.9
46.7
93.6
98.6
(1) Realized gain (loss) on derivatives related to commodity risk management are reconciled to gains (losses) on derivatives and foreign
currency translation of borrowings, see “Non-GAAP financial measures and reconciliations” on page 34 for more information.
(2) Adjusted Gross Profit, Adjusted EBITDA and Operating Costs are Non-GAAP financial measures. See “Non-GAAP financial measures
and reconciliations” on page 34 for more information.
(3) The sum of the above amounts and the balances included in the Canadian Propane, Wholesale Propane, CNG and the Corporate
segments are included in SD&A and are disclosed in Note 19 or Note 26 of the audited consolidated financial statements as at and
for the year ended December 31, 2024 and 2023.
(4) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results
of the year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively.
The results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Management’s Discussion and Analysis
10
Annual Report 2024
Superior Plus
U.S. Propane Adjusted Gross Profit
Three Months Ended
December 31
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Propane distribution(1)
177.7
177.3
556.3
592.4
Realized (loss) gain on derivatives related
to commodity risk management(1)
(0.9)
(2.8)
1.6
(21.4)
Adjusted gross profit related to
propane distribution
176.8
174.5
557.9
571.0
Other services(1)
5.3
6.3
18.7
22.0
Adjusted gross profit(2)
182.1
180.8
576.6
593.0
(1) The sum of propane distribution and other services agrees to segment disclosure in the audited consolidated financial statements.
Realized gain (loss) on derivatives related to commodity risk management are reconciled to gains (losses) on derivatives and foreign
currency translation of borrowings, see “Non-GAAP financial measures and reconciliations” on page 34 for more information.
(2) Adjusted gross profit from operations is a Non-GAAP financial measure. See “Non-GAAP financial measures and reconciliations” on
page 34 for more information.
U.S. Propane Sales Volumes
End-Use Application
Three Months Ended
December 31
Years Ended
December 31
(millions of gallons)
2024
2023
2024
2023
Residential
61
64
184
202
Commercial
48
51
161
180
Total
109
115
345
382
Volumes by Region(1)
Three Months Ended
December 31
Years Ended
December 31
(millions of gallons)
2024
2023
2024
2023
Northeast
70
74
223
252
Southeast
19
20
57
57
Midwest
8
9
26
28
West
12
12
39
45
Total
109
115
345
382
(1) Includes propane and other liquid fuels sold in over twenty-four states in the following regions: Northeast region consists of Maine,
New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, New Jersey, Delaware, Maryland,
Virginia; Southeast region consists of North Carolina, South Carolina, Georgia, Tennessee, Florida, Alabama; Midwest region consists
of Ohio, Michigan, Minnesota; West region consists primarily of California, Arizona and Nevada.
U.S. Propane’s results of operations for the year ended December 31, 2024
Revenue was $1,037.4 million, a decrease of $145.2 million or 12% from the prior year primarily due to
lower sales volumes and lower wholesale commodity prices compared to the prior year, partially offset by
price increases to offset the impact of inflation.
Adjusted gross profit related to propane distribution for the year ended December 31, 2024 was
$557.9 million, a decrease of $13.1 million or 2% from the prior year primarily due to the Distillate and
Minnesota divestitures and lower sales volumes impacted by warmer weather partially offset by higher
average unit margins.
Total sales volumes were 345 million gallons, a decrease of 37 million gallons or 10%. Average weather,
as measured by degree days, across markets where U.S. propane operates for the year was 2% warmer
than the prior year and 10% warmer than the five-year average. Residential sales volumes decreased by
Superior Plus
11
Annual Report 2024
18 million gallons or 9% from the prior year. Commercial volumes decreased by 19 million gallons or 11%
compared to the prior year. The decrease in both residential and commercial sales volumes is due to the
Distillate and Minnesota divestitures and to a lesser extent the impact of warmer weather on sales volumes.
U.S. Propane average sales margins were $1.62 per gallon, an increase of 0.13 cents or 9% from $1.49
cents per gallon in the prior year primarily due to higher proportion of propane customers in the customer
base and the impact of increased fees to offset the impact of inflation.
Other services gross profit primarily includes equipment rental, installation, repair and maintenance
charges. Other services gross profit was $18.7 million, a decrease of $3.3 million or 15% over the prior year
primarily due to the impact of the divestitures.
Operating costs were $358.1 million, a decrease of $11.6 million or 3% over the prior year primarily due
to the impact of the Distillate and to a lessor extent the Minnesota divestitures and cost saving initiatives
partially offset by the impact of inflation.
SD&A includes amortization, depreciation and transaction, restructuring and other costs whereas
operating costs exclude these expenses and is used in the determination of Adjusted EBITDA. SD&A was
$483.3 million, a decrease of $21.1 million or 4% over the prior year. The decrease is consistent with the
decrease in operating costs as well as lower transaction, restructuring and other costs, partially offset by
a loss on disposal of assets compared to a gain in the prior comparable period. The loss on disposal of
assets and impairment in the current year includes a provision related to damage caused by Hurricane
Helene partially offset by a gain on the divestiture of certain non-strategic assets in Minnesota, during the
third quarter.
Earnings before income tax were $93.6, a decrease of $5.0 million over the prior year due to the reasons
described above and the impact of a smaller unrealized gain on derivative financial instruments compared
to the loss in the prior year.
U.S. Propane’s results of operations for the three months ended December 31, 2024
Revenue for the three months ended December 31, 2024 was $323.3 million, a decrease of $11.3 million
or 3% from the prior year quarter primarily due to lower wholesale commodity prices compared to the
prior quarter, the impact of divestitures and to a lesser extent lower sales volumes, partially offset by price
increases to offset the impact of inflation.
Total sales volumes were 109 million gallons, a decrease of 6 million gallons or 5% due primarily to the
divestitures and to a lesser extent the impact of warmer weather entering the fourth quarter on the timing
of deliveries. Average weather, as measured by degree days, across markets where U.S. propane operates
for the year was 4% colder than the prior year and 7% warmer than the five-year average.
Adjusted gross profit related to propane distribution for the three months ended December 31, 2024
was $176.8 million, an increase of $2.3 million or 1% from the prior year quarter primarily due to price
increases.
U.S. Propane average sales margins were $1.62 per gallon, an increase of 0.10 cents or 9% from $1.52 per
gallon in the prior year quarter primarily due to a higher proportion of propane customers in the customer
base and the impact of increased fees to offset the impact of inflation.
Other services gross profit primarily includes equipment rental, installation, repair and maintenance
charges. Other services gross profit was $5.3 million, a decrease of $1.0 million or 16% over the prior year
quarter primarily due to the impact of the Minnesota and Distillate divestitures.
Operating costs were $96.9 million, an increase of $0.2 million or 0% over the prior year quarter primarily
due to the impact of inflation on costs partially offset by the impact of the Minnesota and Distillate
divestitures.
SD&A includes amortization, depreciation gains (losses) on disposals and transaction, restructuring
and other costs whereas operating costs exclude these expenses and is used in the determination of
Adjusted EBITDA. SD&A was $123.0 million, a decrease of $1.3 million or 1% over the prior year quarter.
The decrease is due to a larger loss on disposal of assets in the prior year quarter, lower transaction,
restructuring and other costs and lower amortization and depreciation partially offset by the increase in
operating costs. The loss on disposal of assets includes a partial reversal of a provision related to damage
caused by Hurricane Helene during the third quarter and the gain on the Minnesota Divestiture compared
to the prior year that included a gain on disposal of distillate assets.
Earnings before income tax was $63.9 million, an increase of $17.2 million over the prior year quarter due
to the reasons described above and the impact of an unrealized gain on derivative financial instruments
compared to a loss in the prior year quarter.
Management’s Discussion and Analysis
12
Annual Report 2024
Superior Plus
Financial Outlook
U.S. Propane Adjusted EBITDA in 2025 is anticipated to be higher than 2024 as a result of colder weather
and the impact of Superior Delivers. The average weather for 2025, as measured by degree days, is
expected to be consistent with the five-year average.
In addition to the significant assumptions referred to above, refer to “Forward-Looking Information” and
“Risk Factors to Superior” for a detailed review of significant business risks affecting Superior.
Canadian Propane
Canadian Propane’s operating results:
Three Months Ended
December 31(3)
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Revenue
151.5
163.4
528.1
597.4
Cost of Sales
(79.4)
(82.5)
(276.4)
(320.5)
Gross profit
72.1
80.9
251.7
276.9
SD&A
(58.9)
(57.8)
(230.2)
(237.7)
Add back (deduct):
Amortization and depreciation included
in SD&A(1)
15.1
13.6
55.2
53.8
Transaction, restructuring and other costs(1)
0.8
1.5
5.3
2.1
Loss (gain) on disposal of assets(1)
0.6
(1.2)
0.3
3.9
Operating costs(2)
(42.4)
(43.9)
(169.4)
(177.9)
Adjusted EBITDA(2)
29.7
37.0
82.3
99.0
Add back (deduct):
(Loss) gain on disposal of assets(1)
(0.6)
1.2
(0.3)
(3.9)
Transaction, restructuring and other costs(1)
(0.8)
(1.5)
(5.3)
(2.1)
Amortization and depreciation included in
SD&A(1)
(15.1)
(13.6)
(55.2)
(53.8)
Finance expense
(0.8)
(0.8)
(3.1)
(2.7)
Earnings before income tax
12.4
22.3
18.4
36.5
(1) The sum of the above amounts and the balances included in the U.S. Propane, Wholesale Propane, CNG and Corporate segments are
included in SD&A and are disclosed in Note 19 or Note 26 of the audited consolidated financial statements as at and for the three
and year ended December 31, 2024 and 2023.
(2) Adjusted EBITDA and Operating Costs are Non-GAAP financial measures. See “Non-GAAP financial measures and reconciliations” on
page 34 for more information.
(3) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results
of the year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively.
The results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Superior Plus
13
Annual Report 2024
Canadian Propane Gross Profit
Three Months Ended(1)
December 31
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Propane distribution
68.3
76.7
239.5
264.3
Other services
3.8
4.2
12.2
12.6
Gross profit
72.1
80.9
251.7
276.9
Canadian Propane Sales Volumes
Volumes by End-Use Application
Three Months Ended
December 31
Years Ended
December 31
(millions of gallons)
2024
2023
2024
2023
Residential
14
14
41
45
Commercial
65
67
226
247
Total
79
81
267
292
Volumes by Region(1)
Three Months Ended
December 31
Years Ended
December 31
(millions of gallons)
2024
2023
2024
2023
Western Canada
38
37
128
126
Eastern Canada
29
32
98
122
Atlantic Canada
12
12
41
44
Total
79
81
267
292
(1) Regions: Western Canada region consists of British Columbia, Alberta, Saskatchewan, Manitoba, Yukon, Alaska and Northwest
Territories; Eastern Canada region consists of Ontario and Quebec; Atlantic Canada region consists of New Brunswick, Newfoundland
& Labrador, Nova Scotia and Prince Edward Island.
Canadian Propane’s results of operations for the year ended December 31, 2024
Revenue was $528.1 million, a decrease of $69.3 million or 12% from the prior year primarily due to lower
sales volumes, partially offset by price increases to offset the impact of inflation.
Gross profit related to propane distribution for the year ended December 31, 2024 was $239.5 million, a
decrease of $24.8 million or 9% from the prior year due to lower sales volumes and, to a lesser extent, the
impact of the stronger U.S. dollar on the translation of Canadian denominated transactions.
Total sales volumes were 267 million gallons, a decrease of 25 million gallons or 9%. Average weather
across Canada for the current year, as measured by degree days was consistent with the prior year and
8% warmer then the five-year average. Western Canada was 4% colder than the prior year while Eastern
Canada was 5% warmer than the prior year. Residential sales volumes decreased by 4 million gallons or
9% and commercial sales volumes decreased by 21 million gallons or 9%. The decreased volumes were
primarily due to the Northern Ontario Divestiture and to a lesser extent warmer weather in Eastern Canada,
partially offset by colder weather in Western Canada.
Average propane sales margins were $0.90 cents per gallon, a decrease of 0.01 cent or 1% from $0.91
cents per gallon in the prior year primarily due to the impact of the stronger U.S. dollar on the translation of
Canadian denominated transactions partially offset by price increases to offset inflation.
Other services gross profit primarily includes equipment rental, installation, repair and maintenance and
customer minimum use charges. Other services gross profit was $12.2 million, a decrease of $0.4 million or
3% from the prior year of $12.6 million due to the impact of the divestiture in the prior year partially offset
by higher equipment rental revenue.
Management’s Discussion and Analysis
14
Annual Report 2024
Superior Plus
Operating costs were $169.4 million, a decrease of $8.5 million or 5% compared to the prior year. The
decrease in operating costs was primarily due to the impact of the Northern Ontario Divestiture in the prior
year, cost saving initiatives and lower volume related expenses partially offset by the impact of inflation.
SD&A includes amortization, depreciation and transaction, restructuring and other costs whereas
operating costs exclude these expenses and is used in the determination of Adjusted EBITDA. SD&A was
$230.2 million, a decrease of $7.5 million or 3% over the prior year. SD&A decreased for the above reasons,
as well as the impact of a loss on disposal of the Northern Ontario assets in the prior year partially offset by
a restructuring provision recorded in the first quarter.
Earnings before income tax was $18.4 million, a decrease of $18.1 million over the prior year due to the
above reasons.
Canadian Propane’s results of operations for the three months ended December 31,
2024
Revenue for the three months ended December 31 2024 was $151.5 million, a decrease of $11.9 million
or 7% from the prior year quarter primarily due to the impact of the stronger U.S. dollar on the translation
of Canadian denominated transactions and lower sales volumes, partially offset by the impact of
price increases.
Total sales volumes were 79 million gallons, a decrease of 2 million gallons or 3%. Average weather across
Canada, as measured by degree days, was 5% colder than the prior year quarter and 6% warmer than the
five-year average. Western Canada was 9% colder than the prior year while Eastern Canada was consistent
with the prior year. Residential sales volumes were consistent with the prior year as the impact of colder
weather in Western Canada was offset by the impact of warm weather entering the quarter on the timing
of deliveries. Commercial sales volumes decreased by 2 million gallons or 3% primarily due to the impact of
the divestiture in the prior year.
Gross profit related to propane distribution for the three months ended December 31, 2024 was
$68.3 million, a decrease of $8.4 million or 11% from the prior year quarter due to lower sales volumes and
to a lesser extent lower average propane sales margins.
Average propane sales margins were $0.86 per gallon, a decrease of 0.05 cents or 6% from $0.94 per
gallon in the prior year quarter due to the impact of the stronger U.S. dollar on the translation of Canadian
denominated transactions, the impact of selling less carbon credits in the quarter and to a lesser extent
customer mix partially offset by price increases to offset inflation.
Other services gross profit primarily includes equipment rental, installation, repair and maintenance and
customer minimum use charges. Other services gross profit was $0.4 million, a decrease of $0.4 million
from the prior quarter primarily due to fewer large projects.
Operating costs were $42.4 million, a decrease of $1.5 million or 3% compared to the prior year quarter.
The decrease in operating costs was primarily due to the impact of the divestiture in the prior year, lower
volume related expenses, cost saving initiatives and the impact of the stronger U.S. dollar on the translation
of Canadian denominated transactions partially offset by the impact of inflation.
SD&A includes amortization, depreciation, gains (losses) on disposals and transaction, restructuring and
other costs whereas operating costs exclude these expenses and is used in the determination of Adjusted
EBITDA. SD&A was consistent with the prior year quarter as a result of the decrease in operating costs and
lower transaction and restructuring costs offset by the impact of a loss on disposal of assets compared to a
gain in the prior year quarter.
Earnings before income tax was $12.4 million, a decrease of $9.9 million over prior year quarter due to the
above reasons.
Financial Outlook
Canadian Propane Adjusted EBITDA in 2025 is anticipated to be higher than 2024 as the impact of colder
weather and results from Superior Delivers will be partially offset by the impact of the stronger U.S. dollar
on the translation of Canadian denominated transactions. The average weather for 2025, as measured by
degree days, is expected to be consistent with the five-year average.
In addition to the significant assumptions referred to above, refer to “Forward-Looking Information” and
“Risk Factors to Superior” for a detailed review of significant business risks affecting Superior.
Superior Plus
15
Annual Report 2024
Wholesale Propane
Wholesale Propane’s operating results:
Three Months Ended
December 31(4)
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Revenue
216.7
225.2
721.2
862.5
Cost of Sales
(194.3)
(200.0)
(644.8)
(753.4)
Gross profit
22.4
25.2
76.4
109.1
Realized gain (loss) on derivatives related to
commodity risk management(1)
(0.3)
(1.4)
0.1
(10.3)
Adjusted gross profit(2)
22.1
23.8
76.5
98.8
SD&A
(14.8)
(15.1)
(58.7)
(65.0)
Add back (deduct):
Amortization and depreciation included in
SD&A(3)
3.2
3.4
13.4
12.9
Transaction, restructuring and other costs(3)
–
0.1
0.4
0.5
Loss (gain) on disposal of assets(3)
–
(0.1)
0.6
(0.2)
Operating costs(2)
(11.6)
(11.7)
(44.3)
(51.8)
Adjusted EBITDA(2)
10.5
12.1
32.2
47.0
Add back (deduct):
Gain (loss) on disposal of assets(3)
–
0.1
(0.6)
0.2
Transaction, restructuring and other costs(3)
–
(0.1)
(0.4)
(0.5)
Amortization and depreciation included in
SD&A(3)
(3.2)
(3.4)
(13.4)
(12.9)
Unrealized (loss) gain on derivative financial
instruments
1.1
(3.4)
1.1
5.9
Finance expense
(0.6)
0.1
(1.4)
(0.7)
Earnings before income tax
7.8
5.4
17.5
39.0
(1) Realized gain (loss) on derivatives related to commodity risk management are reconciled to gains (losses) on derivatives and foreign
currency translation of borrowings, see “Non-GAAP financial measures and reconciliations” on page 34 for more information.
(2) Adjusted Gross Profit, Adjusted EBITDA and Operating Costs are Non-GAAP financial measures. See “Non-GAAP financial measures
and reconciliations” on page 34 for more information.
(3) The sum of the above amounts and the balances included in the U.S. Propane, Canadian Propane, CNG and Corporate segments
are included in SD&A and are disclosed in Note 19 or Note 26 of the audited consolidated financial statements as at and for the year
ended December 31, 2024 and 2023.
(4) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of the
year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively. The
results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Management’s Discussion and Analysis
16
Annual Report 2024
Superior Plus
Wholesale Propane Sales Volumes
Three Months Ended
December 31
Years Ended
December 31
(millions of gallons)
2024
2023
2024
2023
Third party sales volumes
United States
85
89
295
333
Canada
20
19
62
55
105
108
357
388
Sales volumes to the Canadian Propane and
US Propane segments
92
100
311
345
Total
197
208
669
733
Wholesale Propane’s results of operations for the year ended December 31, 2024
Revenue was $721.2 million, a decrease of $141.3 million or 16% from the prior year primarily due to lower
wholesale commodity prices, compared to the prior year, lower sales volumes and to a lesser extent, the
impact of the stronger U.S. dollar on the translation of Canadian denominated transactions.
Adjusted gross profit was $76.5 million, a decrease of $22.3 million or 23% from the prior year primarily due
to lower average unit margins associated with weaker wholesale propane market fundamentals compared
to the prior year and the impact of lower sales volumes.
Total third-party sales volumes were 357 million gallons, a decrease of 31 million gallons or 8% from the
prior year, primarily due to weak market conditions caused by increased competition and warmer weather
in California.
Average propane sales margins, including the impact of sales to other divisions, were 11.4 cents per gallon,
a decrease of 2.1 cents or 16% from 13.5 cents per gallon in the prior year primarily due to weaker market
fundamentals in California and, to a lesser extent, the impact of the stronger U.S. dollar on the translation of
Canadian denominated transactions.
Operating costs were $44.3 million, a decrease of $7.5 million or 14% compared to the prior year primarily
due to lower volume related costs and to a lesser extent cost savings initiatives associated with the
completion of integrating a prior acquisition, partially offset by the impact of inflation.
SD&A includes amortization, depreciation and transaction, restructuring and other costs whereas operating
costs exclude these expenses and is used in the determination of Adjusted EBITDA. SD&A was $58.6 million,
a decrease of $6.4 million or 10% over the prior year. SD&A decreased for the above reasons, as well as
the impact of a loss on disposal of assets compared to a gain in the prior year and higher depreciation and
amortization costs.
Earnings before income tax was $17.5 million, a decrease of $21.5 million over the prior year earnings
of $39.0 million, for the above reasons and the impact of a lower unrealized gain on derivatives in the
current year.
Wholesale Propane’s results of operations for the three months ended December 31,
2024
Revenue for the three months ended December 31 2024 was $216.7 million, a decrease of $8.5 million or
4% from the prior year quarter primarily due to lower sales volumes and to a lesser extent the impact of the
stronger U.S. dollar on the translation of Canadian denominated transactions.
Total third-party sales volumes were 105 million gallons, a decrease of 3 million gallons or 3% from the prior
year quarter, primarily due to weaker market conditions in the Western United States.
Adjusted gross profit was $22.1 million, a decrease of $1.7 million or 7% from the prior year quarter
primarily due to the impact of lower sales volumes.
Average propane sales margins, including the impact of sales to other divisions, was 11.2 cents per gallon, a
slight a decrease of 0.2 cents or 2% from 11.4 cents per gallon in the prior year quarter.
Operating costs were $11.6 million, a decrease of $0.1 million or 1% compared to the prior year quarter
primarily due to lower volume related costs and to a lesser extent the impact of the stronger U.S. dollar on
the translation of Canadian denominated transactions, partially offset by the impact of inflation.
SD&A includes amortization, depreciation, gains (losses) on disposals and transaction, restructuring and
other costs whereas operating costs exclude these expenses and is used in the determination of Adjusted
EBITDA. SD&A for the three months ended December 31 2024 was $14.7 million, a decrease of $0.4 million
Superior Plus
17
Annual Report 2024
or 3% over the prior year quarter. The decrease in SD&A was consistent with the decrease in operating
costs and is also due to lower amortization and depreciation.
Earnings before income tax was $7.8 million, an increase of $2.4 million over the prior year quarter loss of
$5.4 million, for the above reasons and the impact of an unrealized gain on derivatives in the current year
quarter compared to a loss in the prior year quarter.
Financial Outlook
Wholesale Propane Adjusted EBITDA in 2025 is anticipated to be higher than 2024 as a result of colder
weather and the impact of Superior Delivers partially offset by the impact of the stronger U.S. dollar on the
translation of Canadian denominated transactions. The average weather for 2025, as measured by degree
days, is expected to be consistent with the five-year average.
In addition to the significant assumptions referred to above, refer to “Forward-Looking Information” and
“Risk Factors to Superior” for a detailed review of significant business risks affecting Superior.
CNG Distribution
CNG operating results for the three and twelve months ended December 31, 2024 and from the date of
acquisition, May 31, 2023, to December 31, 2023 are as follows:
Three months ended
December 31(2)
Year ended
December 31
Date of
acquisition
to December 31
(millions of dollars except per
MSU amounts)
2024
2023
2024
2023
$ per
MSU(1)
$ per
MSU
$ per
MSU(1)
$ per
MSU(1)
Revenue
111.9
136
105.4
155
430.9
555
230.3
346
Cost of Sales
(14.5)
(18)
(16.9)
(25)
(49.6)
(64)
(36.4)
(55)
Gross profit
97.4
118
88.5
130
381.3
491
193.9
291
SD&A
(77.5)
(94)
(75.5)
(111) (308.7)
(397)
(172.3)
(259)
Add back (deduct):
Amortization and depreciation
in SD&A
19.1
23
21.4
31
75.0
97
47.7
72
Transaction, restructuring and
other costs
0.3
–
–
–
0.8
1
0.4
1
(Gain) loss on disposal of assets
(0.1)
–
0.3
–
(0.2)
–
0.8
1
Operating costs(1)
(58.2)
(71)
(53.8)
(80) (233.1)
(299)
(123.4)
(185)
Adjusted EBITDA(1)
39.2
47.0
34.7
50
148.2
192
70.5
106
Add back (deduct):
(Gain) loss on disposal of assets
0.1
–
(0.3)
–
0.2
–
(0.8)
(1)
Transaction, restructuring and
other costs
(0.3)
–
–
–
(0.8)
(1)
(0.4)
(1)
Amortization and depreciation
in SD&A
(19.1)
(23)
(21.4)
(31)
(75.0)
(97)
(47.7)
(72)
Unrealized gain on foreign
currency translation
–
–
–
–
0.7
1
–
–
Finance expense
(0.4)
–
(0.5)
(1)
(1.4)
(2)
2.7
4
Earnings before income tax
19.5
24
12.5
18
71.9
93
24.3
36
(1) Adjusted EBITDA, Operating Costs and per mobile storage unit (“MSU”) amounts are Non-GAAP financial measures. See “Non-GAAP
financial measures and reconciliations” on page 34 for more information.
(2) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of the
year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively. The
results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Management’s Discussion and Analysis
18
Annual Report 2024
Superior Plus
CNG Gross Profit
Three Months Ended
December 31
Year Ended
December 31
Date of
Acquisition to
December 31
(millions of dollars)
2024
2023
2024
2023
Direct gas distribution
68.0
61.0
286.0
142.6
Ancillary services
29.4
27.5
95.3
51.3
Gross profit
97.4
88.5
381.3
193.9
CNG Sales Volumes
Volumes by Region
Three Months Ended
December 31
Year Ended
December 31
Date of
Acquisition to
December 31
(thousands of MMBtu)
2024
2023
2024
2023
United States
5,781
4,850
23,837
11,377
Canada
1,524
1,290
5,570
2,469
Total
7,305
6,140
29,407
13,846
CNG results of operations for the year ended December 31, 2024
Revenue was $430.9 million, an increase of $200.6 million or 87% from the prior year primarily due to
the impact of the acquisition closing on May 31, 2023 and the comparative figures not representing a full
year of results. Included in revenue is sales related to natural gas distribution and ancillary services which
consists of equipment rentals, standby services and take-or-pay arrangements. Cost of sales primarily
consists of the cost of the commodity being distributed and excludes distribution costs, vehicle costs,
salaries and wages and other costs related to the operations of the various satellite locations. These costs
are included in operating costs and SD&A.
Gross profit related to direct natural gas distribution for the year ended December 31, 2024 was
$286.0 million, an increase of $143.4 million or 100% from the prior year primarily due to the impact of
acquisition closing on May 31, 2023 and the comparative not representing a full year of results. Total
sales volumes for the year was 29,407 MMBtu resulting in an average direct natural gas distribution sales
margin of $9.72 per MMBtu compared to $10.3 per MMBtu in the prior year. The decrease is due to pricing
pressure from increased competition in the oil and gas segment.
Natural gas is purchased at spot rates, which are the daily rates in effect at the time of purchase and are
quoted in relation to a physical location. The change in product costs period-over-period generally trend
with the change in natural gas commodity prices for the same period. The CNG segment has the ability
to quickly adjust pricing on short-term contracts and has contractual mechanisms in place to either flow
through the excess cost of natural gas once a certain index threshold is exceeded or have the entire index
price of natural gas as a flow through to the customer. These arrangements provide significant downside
protection in a volatile or rapidly rising natural gas price environment and is well positioned for margin
expansion in a decreasing or low natural gas price environment.
Operating costs for the year ended December 31, 2024 were $233.1 million, an increase of $109.7 million
or 89% from the prior year primarily due to the impact of the acquisition closing on May 31, 2023 and the
comparative figures not representing a full year of results and to a lessor extent increased costs related to
the increased volumes delivered as a result of the higher MSU asset base. Included in the cost to operate
the CNG locations, distribute natural gas from the pipeline to the customer, vehicle costs and all other
selling and administrative costs.
SD&A includes amortization, depreciation and transaction, restructuring and other costs whereas operating
costs exclude these expenses and is used in the determination of Adjusted EBITDA. SD&A for the year
ended December 31, 2024 was $308.7 million, an increase of $136.4 million or 79% over the prior year
quarter. The increase in SD&A was consistent with the increase in operating costs.
Earnings before income tax was $71.9 million for the year ended December 31, 2024, an increase of
$47.6 million over the prior year earnings of $24.3 million, for the above reasons.
Superior Plus
19
Annual Report 2024
CNG results of operations for the three months ended December 31, 2024
Revenue for the three months ended December 31, 2024 was $111.9 million an increase of $6.5 million
from the prior year quarter primarily due to the impact of a higher average MSU base compared to the
prior year quarter and lower commodity prices partially offset by pricing pressure experienced during the
year. Included in revenue is sales related to natural gas distribution and ancillary services which consists of
equipment rentals, standby services and take-or-pay arrangements. Cost of sales primarily consists of the
cost of the commodity being distributed and excludes distribution costs, vehicle costs, salaries and wages
and other costs related to the operations of the various satellite locations. These costs are included in
operating costs and SD&A.
Gross profit for the three months ended December 31, 2024 was $97.4 million an increase of $8.9 million
from the prior year quarter primarily due to the impact of higher average MSU base compared to the
prior year quarter. Total sales volumes for the three months ended December 31, 2024 was 7,305 MMBtu
resulting in an average direct natural gas distribution sales margin of $9.30 per MMBtu compared to $9.94
per MMBtu in the prior year quarter. The decrease is due to pricing pressure from increased competition in
the oil and gas segment.
CNG delivers to its customers safely and cost effectively through their platform of MSUs. As at December
31, 2024 the CNG segment had 842 MSUs, an increase of 113 MSUs from December 31, 2023.
Operating costs for the three months ended December 31, 2024 was $58.2 million an increase $4.4 million
from the prior year quarter primarily due to the impact of a higher average MSU base compared to the
prior year quarter partially offset by operating efficiencies as operating costs on an MSU basis decreased
approximately 11%. Operating costs include the cost to operate various satellite locations, distribute natural
gas from the pipeline to the customer, vehicle costs and all other selling and administrative costs.
SD&A includes amortization, depreciation, gains (losses) on disposals and transaction, restructuring
and other costs whereas operating costs exclude these expenses and is used in the determination of
Adjusted EBITDA. SD&A for the three months ended December 31, 2024 was $77.5 million an increase of
$2.0 million from the prior year quarter primarily due to the increase in operating costs. partially offset by
lower amortization and depreciation due to the impact of the weaker Canadian dollar on the translation of
Canadian denominated transactions.
Earnings before income tax was $19.5 million, an increase of $7.0 million over the prior year quarter
earnings before tax of $12.5 million for the aforementioned reason.
Financial Outlook
CNGs Adjusted EBITDA for 2025 is anticipated to be higher than 2024 as a result of the continued
investment in MSUs and realizing operating efficiencies partially offset by continued pricing pressure.
Superior estimates that CNGs average MSU count will increase to approximately 867 MSUs in 2025.
In addition to the significant assumptions referred to above, refer to “Forward-Looking Information” and
“Risk Factors to Superior” for a detailed review of significant business risks affecting Superior.
Management’s Discussion and Analysis
20
Annual Report 2024
Superior Plus
C O R P O R A T E O P E R A T I N G C O S T S
A reconciliation between corporate SD&A and corporate operating costs for the three and twelve months
ended December 31, 2024 and 2023 is as follows:
Three months ended
December 31(3)
Year ended
December 31
2024
2023
2024
2023
Corporate SD&A
(2.3)
(8.1)
(21.6)
(48.5)
Add back (deduct):
Amortization and depreciation included in
SD&A(1)
0.2
0.2
0.7
0.6
Transaction, restructuring and other costs(1)
(0.1)
2.3
1.4
22.8
Unrealized loss on equity hedges
(3.2)
–
(6.2)
–
Corporate operating costs(2)
(5.4)
(5.6)
(25.7)
(25.1)
(1) The sum of the above amounts and the balances included in the U.S. Propane, Canadian Propane, CNG and the Corporate segments
are included in SD&A and are disclosed in Note 19 or Note 26 of the audited consolidated financial statements as at and for the
December 31, 2024 and 2023.
(2) Operating costs are Non-GAAP financial measures. See “Non-GAAP financial measures and reconciliations” on page 34 for more
information.
(3) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of the
year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively. The
results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca.
Results for the year ended December 31, 2024
Corporate operating costs for the year ended December 31, 2024 were $25.7 million an increase of
$0.6 million compared to $25.1 million in the prior year. The increase is primarily due to hedge losses that
were not proportionally offset by incentive cost reductions due to hedge ineffectiveness, partially offset by
the impact of an insurance provision and certain on-boarding costs associated with the change in senior
management in the prior year.
Corporate operating costs included in Adjusted EBITDA exclude depreciation, amortization and transaction,
restructuring and other costs. Corporate SD&A was $21.6 million for the year ended December 31,
2024, a decrease of $26.9 million from $48.5 million in the prior year primarily due to lower transaction,
restructuring and other costs, partially offset by the above reasons.
Results for the three months ended December 31, 2024
Corporate operating costs for the three months ended December 31, 2024 were $5.4 million a decrease
of $0.2 million compared to $5.6 million in the prior year quarter. The decrease is primarily due to the
impact of an insurance provision in the prior year quarter partially offset by hedge losses that were not
proportionally offset by incentive cost reductions due to hedge ineffectiveness.
Corporate operating costs included in Adjusted EBITDA exclude depreciation, amortization and transaction,
restructuring and other costs and includes the unrealized loss (gain) on equity hedges. Corporate SD&A was
$2.3 million for the three months ended December 31, 2024, a decrease of $5.8 million from $8.1 million in
the prior year quarter primarily due to lower transaction, restructuring and other costs and the change in
corporate operating costs.
Superior Plus
21
Annual Report 2024
C O N S O L I D A T E D C A P I T A L E X P E N D I T U R E
S U M M A R Y
Superior’s capital expenditures are as follows:
Three Months Ended
December 31(2)
Years Ended
December 31
(millions of dollars)
2024
2023
2024
2023
U.S. Propane
6.0
11.6
25.2
39.5
Canadian Propane
14.1
17.3
33.9
42.8
Wholesale Propane
1.6
1.2
2.1
4.4
CNG
21.1
40.8
98.3
61.7
Corporate
–
–
0.9
–
Purchase of property, plant and equipment
and intangible assets
42.8
70.9
160.4
148.4
Proceeds on disposition of assets
(2.6)
(46.9)
(18.3)
(53.5)
Total net capital expenditures
40.2
24.0
142.1
94.9
Lease additions – vehicle(1)
3.1
8.4
17.2
26.0
Lease additions – other assets(1)
5.1
1.9
11.8
16.4
Capital expenditures including leases
48.4
34.3
171.1
137.3
(1) The sum of the leases is disclosed as additions in Note 14 of the audited consolidated financial statements.
(2) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of the
year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively. The
results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Total capital expenditures were $42.8 million for the three months ended December 31, 2024 compared
to $70.9 million in the prior year quarter. The decrease is primarily due to timing of receipt of MSUs
and ancillary equipment by the CNG segment and reduced spending by Propane segments. Capital
expenditures related to the Propane segments decreased by $8.2 million primarily due to increased
scrutiny over capital.
Proceeds on disposition of assets were $2.6 million for the three months ended December 31, 2024
compared to $46.9 million in the prior year quarter primarily due to the timing of proceeds received from
divesting the Northern Ontario and Distillate assets.
Superior entered into $3.1 million of leased vehicles for the three months ended December 31, 2024
compared to $8.4 million in the prior year quarter primarily due to timing of vehicle receipts and a
continued emphasis on efficient capital utilization. Other leased assets of $5.1 million for the three months
ended December 31, 2024 compared to $1.9 million in the prior year quarter increased by 3.2 million
primarily due to timing of renewing property leases.
Capital expenditures were funded from a combination of operating cash flow and borrowings under the
revolving-term bank credit facilities and credit provided through lease liabilities.
C O N S O L I D A T E D T R A N S A C T I O N , R E S T R U C T U R I N G
A N D O T H E R C O S T S
Superior’s transaction, restructuring and other costs have been categorized together and excluded from
segmented results.
For the three months ended December 31, 2024, Superior incurred $1.3 million in costs related to
severance and the continued integration of acquisitions completed in the prior years. The costs incurred in
the prior year quarter of $6.7 million relate to integration of prior acquisitions.
For the year ended December 31, 2024, Superior incurred $13.7 million in costs related to the continued
integration of acquisitions completed in the prior years, severance costs and the implementation of a
new finance system. The costs incurred in the prior year quarter of $37.4 million relate primarily to the
acquisition of Certarus and to a lesser extent integration of prior acquisitions.
Management’s Discussion and Analysis
22
Annual Report 2024
Superior Plus
F I N A N C I A L O V E R V I E W – G A A P F I N A N C I A L
I N F O R M A T I O N
Consolidated Statements of Net Earnings
Three Months Ended
December 31(3)
Years Ended
December 31
(millions of USD dollars, except per share amounts)
2024
2023(1)
2024
2023(1)
Revenue
702.3
725.3
2,382.3
2,482.5
Cost of sales (includes products and services)
(327.4)
(347.1)
(1,097.9)
(1,288.2)
Gross profit
374.9
378.2
1,284.4
1,194.3
Expenses
Selling, distribution and administrative costs
(“SD&A”)
(276.5)
(280.8)
(1,102.5)
(1,028.0)
Finance expense
(26.3)
(28.1)
(106.4)
(92.6)
(Loss) gain on derivatives and foreign currency
translation of borrowings
(30.4)
10.3
(52.9)
10.0
(333.2)
(298.6)
(1,261.8)
(1,110.6)
Earnings before income taxes
41.7
79.6
22.6
83.7
Income tax expense
(37.5)
(21.8)
(40.5)
(26.1)
Net earnings (loss) for the period
4.2
57.8
(17.9)
57.6
Net loss (earnings) attributable to:
Superior
(0.6)
53.0
(36.8)
38.7
Non-controlling interest
4.8
4.8
18.9
18.9
Net loss (earnings) per share attributable
to Superior
Basic and diluted
(0.00)
0.20
(0.15)
0.17
Cash flows from operating activities
24.2
28.2
274.1
405.9
Cash flows from operating activities,
per share(2)
0.09
0.10
0.99
1.57
(1) Restated, see Note 2(a) of the audited Consolidated Financial Statements as at and for the three and twelve months ended
December 31, 2024.
(2) The weighted average number of shares outstanding for the three months ended and year ended December 31, 2024 was
277.7 million respectively (three and year ended December 31, 2023 was 278.6 million and 259 million, respectively). The weighted
average number of shares assumes the exchange of the issued and outstanding preferred shares into common shares. There were
no other dilutive instruments for the three and twelve months ended December 31, 2024 and 2023.
(3) Fourth quarter results are not required to be disclosed in the annual audited consolidated financial statements for the year ended
December 31, 2024 and 2023. The GAAP and Non-GAAP financial information below can be derived by subtracting the results of the
year ended December 31, 2024 and 2023 by the results of the nine months ended September 30, 2024 and 2023, respectively. The
results for the nine months ended September 30, 2024 and 2023 can be found on www.sedarplus.ca or
http://www.superiorplus.com/investorrelations/financial-reports/.
Superior Plus
23
Annual Report 2024
Below is GAAP financial information not disclosed in Superior’s operating segments for three months ended
December 31, 2024.
Net earnings for the three months ended December 31 2024 was $4.2 million, compared to $57.8 million in
the prior year quarter. The decrease in net earnings is primarily due to a loss on derivatives compared to a
gain in the prior year, higher income tax expense and lower gross profit partially offset by lower transaction,
restructuring and other costs. Basic and diluted loss per share attributable to Superior was $0.00 per share,
a decrease of $0.20 from $0.20 per share in the prior year quarter. The decrease in earnings per share is
consistent with the decrease in net earnings in the period partially offset by the impact from the decrease in
the weighted average shares outstanding.
Finance expense was $26.3 million, a decrease of $1.8 million or 6% from $28.1 million in the prior year
quarter. The decrease is primarily due to the impact of lower average interest rates during the quarter.
Gain (loss) on derivative and foreign currency translation of borrowings consists of unrealized gains (losses)
on derivative financial instruments and foreign currency translation of borrowings, net of realized gains
(losses) on derivative financial instruments and realized gains (losses) on settlement of U.S. denominated
borrowings. The loss on derivatives and foreign currency translation of borrowings was $25.1 million for
the three months ended December 31, 2024, compared to a gain of $10.3 million in the prior year quarter.
The change is primarily due to changes in market prices of commodities, timing of maturities of underlying
financial instruments and changes in foreign exchange rates relative to amounts hedged. For additional
details, refer to Note 16 in the audited consolidated financial statements.
Below is GAAP financial information not disclosed in Superior’s operating segments for the year ended
December 31, 2024.
Net loss for the year ended December 31, 2024 was $17.9 million, compared to net earnings of
$57.6 million in the prior year. The lower earnings is primarily due to a loss on financial and non-financial
derivatives compared to a gain in the prior year, lower gross profit in the propane distribution segments
and higher income tax expense partially offset by the full year impact of the CNG segment. Basic and diluted
loss per share attributable to Superior was $ (0.15) per share, a decrease of $0.32 from $ 0.17 per share in
the prior year. The decrease in earnings per share is due to lower net earnings in the period and is partially
offset by the impact from the decrease in the weighted average shares outstanding.
Finance expense for the year ended December 31, 2024 was $106.4 million, an increase of $13.8 million
or 15% from $92.6 million in the prior year. The increase is primarily due to higher average debt balances,
higher average interest rates during the year and the impact of gain recorded as a result of a modification
of the debt during the prior year. Average debt balances were higher as a result of closing the Certarus
acquisition on May 31, 2023.
Gain (loss) on derivative and foreign currency translation of borrowings consists of unrealized gains (losses)
on derivative financial instruments and foreign currency translation of borrowings, net of realized gains
(losses) on derivative financial instruments and realized gains (losses) on settlement of U.S. denominated
borrowings. The loss on derivatives and foreign currency translation of borrowings for the year ended
December 31, 2024 was $47.6 million a decrease of $57.6 million compared to a gain of $10.0 million in the
prior comparable period. The change is primarily due to changes in market prices of commodities, timing
of maturities of underlying financial instruments and changes in foreign exchange rates relative to amounts
hedged. For additional details, refer to Note 11 in audited consolidated financial statements. As a result
of the change in reporting currency from Canadian dollars to U.S. dollars Superior has stopped hedging
its U.S. denominated based EBITDA and has therefore, excluded the $6.7 million realized loss on foreign
currency contracts from Adjusted EBITDA for the year ended December 31, 2024 (2023 – $46.7 million).
Management’s Discussion and Analysis
24
Annual Report 2024
Superior Plus
I N C O M E T A X E S
Consistent with prior periods, Superior recognizes a provision for income taxes for its subsidiaries that are
subject to current and deferred income taxes, including Canadian, U.S., Hungarian and Luxembourg income
tax.
Total income tax expense for the year ended December 31, 2024 was $40.5 million, comprised of
$26.9 million in current income tax expense and $13.6 million in deferred income tax expense. This
compares to a total income tax expense of $26.1 million in the prior year, which consisted of a current
income tax expense of $16.7 million and $9.4 million deferred income tax expense.
Current income tax expense for the year ended December 31, 2024 was $26.9 million (2023 – $16.7 million
expense), consisting of income taxes in Canada of $10.2 million (2023 – $2.6 million), in the U.S. of
$14.0 million (2023 – $7.9 million) and in Hungary of $2.7 million (2023 – $6.2 million). Deferred income tax
expense for the year ended December 31, 2024 was $13.6 million (2023 – $9.4 million expense), resulting in
a net deferred income tax liability of $155.2 million as at December 31, 2024.
As at December 31, 2024, Superior had the following tax pools available to be used in future years:
Canada
(millions of dollars)
Tax basis
570.4
Non-capital losses
79.2
Capital losses
30.3
Scientific research expenditures
49.5
Investment tax credits
25.1
Interest Deduction – Restricted interest and financing expense
27.4
United States
Tax basis
876.5
Non-capital losses
93.3
Interest Deduction – 163(J)
180.4
L I Q U I D I T Y A N D C A P I T A L R E S O U R C E S
Debt Management Update
Superior’s Leverage Ratio as at December 31, 2024 was 4.1x, compared to 3.9x at December 31, 2023.
The increase in the Leverage Ratio was due to lower Pro Forma Adjusted EBITDA and the impact of share
buy-backs on debt partially offset by the impact of a strong U.S. dollar on the translation of Canadian
denominated debt.
Net Debt, Pro forma Adjusted EBITDA and Leverage Ratio are Non-GAAP measures, see “Non-GAAP financial
measures and reconciliations” on page 34.
Borrowing
Superior’s revolving syndicated bank facilities (“revolving credit facilities”), senior unsecured notes, lease
obligations, deferred consideration and other debt (collectively “borrowing”) before deferred financing
fees was $1,717.1 million as at December 31, 2024, an increase of $6.5 million from $1,710.6 million as at
December 31, 2023. The increase is primarily due to the seasonality of working capital and is partially offset
by the impact of the weaker Canadian dollar on the translation of Canadian denominated debt.
Superior Plus
25
Annual Report 2024
Superior’s total and available sources of credit as at December 31, 2024 are detailed below:
(millions of dollars)
Total
Amount
Borrowing
Letters of
Credit
Issued
Amount
Available
Revolving credit facilities(1)
961.2
746.4
15.6
199.2
Senior unsecured notes(1)
947.7
947.7
–
–
Deferred consideration and other
23.0
23.0
–
–
Lease liabilities
165.3
165.3
–
–
Total
2,097.2
1,882.4
15.6
199.2
(1) The revolving credit facilities, including the existing and the new credit facility, and the senior unsecured notes balances are
presented before deferred financing fees, see Note 13 of the audited consolidated financial statements. The total amount that can be
borrowed under the revolving credit facilities is $961.2 million (C$1,300 million) and the available amount as of December 31, 2024 is
$199.2 million (C$286.0 million).
Net Working Capital
Consolidated net working capital (deficit) was $12.7 million as at December 31, 2024, an increase of
$53.2 million from ($40.5) million as at December 31, 2023. The increase from December 31, 2023 is
primarily due to the timing of supplier payments. Net working capital is defined in the audited consolidated
financial statements and notes thereto as at and for the three and twelve months ended December 31,
2024 and 2023. See Note 26 of the audited consolidated financial statements.
Compliance
In accordance with the credit facility, Superior must maintain certain covenants and ratios that represent
Non-GAAP financial measures. Superior was in compliance with its lender covenants as at December 31,
2024, and the covenant details are found in the credit facility documents filed in www.sedarplus.ca.
Pension Plans
As at December 31, 2024, Superior’s defined benefit pension plans had an estimated net defined benefit
going concern surplus of approximately $3.7 million (December 31, 2023 – surplus $3.7 million) and a net
pension solvency surplus of approximately $3.6 million (December 31, 2023 – surplus $4.0 million). Funding
requirements by applicable pension legislation are based upon going concern and solvency actuarial
assumptions.
Contractual Obligations and Other Commitments(1)
January 1 to December 31
Current
2026
2027
2028
2029 Thereafter
Total
Borrowings before deferred
financing fees and discounts(2)
7.2
4.6
747.9
348.3
600.5
8.6
1,717.1
Lease liabilities(3)
43.5
29.3
26.7
17.5
11.4
36.9
165.3
Interest payments on borrowings
and lease liabilities
95.0
92.4
69.5
37.5
14.5
3.3
312.2
Non-cancellable, low-value,
short-term leases and leases
with variable lease payments(3)
2.7
0.1
0.1
–
–
–
2.9
CNG capital, transmission and
other commitments
28.2
0.5
0.4
0.3
0.3
–
29.7
Equity derivative contracts(2)
21.4
13.7
–
–
–
–
35.1
US dollar foreign currency
forward sales contracts(2)
17.4
–
–
–
–
–
17.4
Propane, WTI, heating oil, diesel
and natural gas purchase and
sale contracts(1)(2)
88.5
6.0
–
–
–
–
94.5
(1) Does not include the impact of financial derivatives.
(2) See Notes 13 and 16 of the December 31, 2024 audited consolidated financial statements.
(3) See Note 14 of the December 31, 2024 audited consolidated financial statements. Operating leases comprise Superior’s off-balance-
sheet obligations and are contracts that do not meet the definition of a lease under IFRS 16 or are exempt.
(4) Estimated based on interest rates, foreign exchange rates and outstanding balances as of September 30, 2024 and assumes the
settlement of debt will occur on each instruments respective maturity date.
Management’s Discussion and Analysis
26
Annual Report 2024
Superior Plus
In addition to the commitments mentioned above, Superior has entered into purchase orders and
contracts during the normal course of business related to commodity purchase obligations transacted at
market prices. Furthermore, Superior has entered into purchase agreements that require it to purchase
minimum amounts or quantities of propane and other natural gas liquids over certain time periods which
vary but are generally for one year. Superior has generally exceeded such minimum requirements in the
past and expects to continue doing so for the foreseeable future. Failure to satisfy the minimum purchase
requirements could result in the termination of contracts, change in pricing and/or payments to the
applicable supplier.
Superior’s contractual obligations are considered normal operating commitments and do not include the
impact of mark-to-market fair values on financial and non-financial derivatives. Superior expects to fund
these obligations through a combination of cash flows from operations and proceeds on revolving term
bank credit facilities. Superior’s financial instruments’ sensitivities are consistent as at December 31, 2024
and December 31, 2023. In the normal course of business, Superior is subject to lawsuits and claims.
Superior believes the resolution of these matters will not have a material adverse effect, individually or
in the aggregate, on Superior’s liquidity, consolidated financial position or results of operations. Superior
records costs as they are incurred or when they become determinable.
S H A R E H O L D E R S ’ C A P I T A L
As at December 31, 2024, the following shares were issued and outstanding:
Common shares
Preferred shares
Issued
number
(Millions) Share capital
Issued
number
(Millions)
Equity
attributable
to NCI
Balance as at December 31, 2023
248.6
$2,712.2
0.3
$260.0
Common shares repurchased and cancelled
during the year
(10.2)
(85.5)
–
–
Balance as at December 31, 2024
238.4
$2,626.7
0.3
$260.0
Superior’s prior normal course issuer bid terminated on November 9, 2024 and on November 11, 2024,
another normal course issuer bid (the “NCIB”) with respect to its common shares, commenced and will
terminate on the earlier of November 10, 2025, the date Superior has purchased the maximum number
of common shares permitted under the NCIB or the date on which Superior terminates the NCIB in
accordance with its terms. The NCIB permits the purchase of up to 24,117,330 common shares, such
amount representing 10% of the 241,173,300 common shares issued and outstanding as at October 31,
2024 by way of normal course purchases effected through the facilities of the TSX and/or alternative trading
platforms. The NCIB is subject to additional standard regulatory requirements. Furthermore, subject to
certain exemptions for block purchases, the maximum number of common shares that Superior may
acquire on any one trading day is 255,528 common shares, such amount representing 25% of the average
daily trading volume of the common shares of 1,022,112 for the six calendar months prior to the start of
the NCIB. All common shares purchased by Superior under the NCIB will be cancelled.
For the year ended December 31, 2024, 10.2 million common shares were repurchased for $47.0 million
(C$65.6 million), including commission, at a volume weighted average price of $4.57 (C$6.43) per
common share (2023 – 0.7 million common shares repurchased for $5.3 million (C$7.2 million), including
commission, at a volume weighted average price of $7.6 (C$9.79) per common share). The repurchased
shares with a total book value of $85.5 million (C$120.8 million) were immediately cancelled and a credit of
$38.5 million (C$55.2 million) was recorded to deficit. In 2023, repurchased shares with a total book value of
$6.8 million (C$9.2 million) were cancelled and a gain of $1.5 million (C$2 million) was recorded to deficit.
Superior has engaged a broker to administer the NCIB. Superior will also enter into an automatic purchase
plan (“APP”) with its broker in relation to the NCIB to facilitate purchases of common shares under the NCIB
at times when Superior normally would not be active in the market due to its own internal trading blackout
periods, insider trading rules or otherwise. Pursuant to the APP, from time to time, when Superior is not in
possession of material non-public information about itself or its securities, Superior may, but is not required
to, direct its broker to make purchases of common shares under the NCIB during an ensuing trading
blackout period. Such purchases will be based on trading parameters established by Superior prior to the
trading blackout period in accordance with the rules of the TSX, applicable securities laws and the terms
of the APP. As at December 31, 2024, Superior has instructed its Broker to continue to purchase common
shares until March 1, 2025 up to a maximum gross proceeds of C$21.0 million. As of February 26, 2025,
Superior has purchased approximately 3.0 million common shares as part of the APP.
Superior Plus
27
Annual Report 2024
D I V I D E N D S
Dividends Declared to Common Shareholders
Dividends declared to Superior’s common shareholders depend on its cash flow from operating activities
with consideration for Superior’s changes in working capital requirements, investing activities and
financing activities. See “Summary of Adjusted EBITDA” for 2024 above, and “Summary of Cash Flow” for
additional details.
Dividends declared to common shareholders for the three and twelve months ended December 31, 2024
were $6.9 million and $105.5 million respectively compared to $32.8 million and $126.4 million in the prior
periods. The decrease was due to a dividend reduction announced in the fourth quarter. Dividends to
shareholders are declared at the discretion of Superior’s Board of Directors.
Superior has a Dividend Reinvestment and Optional Share Purchase Plan (“DRIP”) that is currently
suspended and will remain in place should Superior elect to reactivate the DRIP, subject to regulatory
approval, at a future date.
Dividends Declared to Preferred Shareholders
Dividends declared to preferred shareholders for the three and twelve months ended December 31, 2024
were $4.8 million and $18.9 million respectively or $18.5 per preferred share (three and twelve months
ended December 31, 2023 – $4.7 million and $14.1 million respectively or $18.1 per preferred share).
S U M M A R Y O F C A S H F L O W
Superior’s primary sources and uses of cash are detailed below:
Three Months Ended
December 31
Year Ended
December 31
(millions of dollars)
2024
2023
2024
2023
Cash flows from operating activities
24.2
28.1
274.1
405.9
Cash flows used in investing activities
(41.1)
(25.7)
(142.1)
(344.7)
Cash flows from (used in) financing activities
17.5
(1.8)
(144.7)
(73.9)
Net increase (decrease) in cash and cash
equivalents
0.6
0.6
(12.7)
(12.7)
Cash and cash equivalents, beginning
of the year
17.2
29.9
30.7
43.1
Effect of translation of foreign currency-
denominated cash and cash equivalents
(0.7)
0.2
(0.9)
0.3
Cash and cash equivalents, end of the year
17.1
30.7
17.1
30.7
Cash flows from operating activities for the year ended December 31, 2024 was $274.1 million, a decrease
of $131.8 million from the prior year, primarily due to the lower change in non-cash operating working
capital, partially offset by higher interest and taxes paid compared to the prior year. The prior year change
in working capital was impacted by the collection of a Vendor Note related to the sale of an operating
segment in a prior period.
Cash flows used in investing activities were $142.1 million, a decrease of $202.6 million from the prior year
due primarily to acquisitions completed in the prior year and increased scrutiny on the deployment of
capital in the businesses.
Cash flows used in financing activities were $144.7 million, an increase of $70.8 million from the prior year,
primarily due to increased payments made to repurchase Superior’s common shares in the year.
Management’s Discussion and Analysis
28
Annual Report 2024
Superior Plus
F I N A N C I A L O U T L O O K
Superior achieved 2024 Adjusted EBITDA of $455.5 million which was below the original guidance
expectation of approximately $500 million driven by warmer-than-normal weather and increased
competitive pressure in the CNG segment. Superior is expecting Adjusted EBITDA growth in 2025 of
approximately 8% compared to 2024 Adjusted EBITDA. The increase is primarily due to the assumption of
normal weather, in year earnings related to Superior Delivers and continued growth in the CNG segment.
Achieving Superior’s Adjusted EBITDA depends on the operating results of its segments and the following
significant assumptions:
• Weather is expected to be consistent with the average temperature for the last five years based on
heating degree days, after adjusting for known weather in January 2025;
• Economic growth activity in Canada and the U.S. is expected to increase modestly and does not consider
the potential impact of tariffs, increased inflation or higher interest rates;
• Assumed in year benefit from Superior Delivers of $20 million;
• Superior expects to continue to attract capital and obtain financing on acceptable terms;
• Superior expects maintenance and non-recurring capital expenditures including lease additions to be
approximately $150 million (2024 – $189.4 million);
• Superior expects to repurchase C$135 million of common shares in 2025;
• Corporate operating costs are expected to be approximately $25 million;
• The foreign currency exchange rate between the Canadian dollar and U.S. dollar is expected to average
$0.69 for 2025 on all unhedged foreign currency transactions;
• Financial and physical counterparties are expected to continue fulfilling their obligations to Superior;
• Regulatory authorities are not expected to impose any new regulations impacting Superior; and
• Superior expects to have an average MSU count of approximately 867 trailers in 2025.
U.S. and Canadian Propane
• Continue to manage the impact of inflation on fuel costs, labour and other costs through cost saving and
pricing initiatives; and
• Wholesale propane prices are not anticipated to significantly affect demand for propane and
related services.
Wholesale Propane
• Wholesale propane market fundamentals related to basis differentials are expected to be consistent with
2024; and
• Continue to grow third-party sales volumes through sales and marketing initiatives to offset the impact of
higher costs due to inflation.
CNG
• The natural gas price differential to diesel remains favorable such that compressed natural gas remains a
cost-effective means to displace diesel; and
• Assuming an average MSU count of approximately 867 trailers in 2025 and average EBITDA per MSU
decline of approximately 1-5%.
F I N A N C I A L I N S T R U M E N T S – R I S K M A N A G E M E N T
Financial and non-financial derivatives are used by Superior to manage its exposure to fluctuations in
foreign currency exchange rates, interest rates, share-based compensation and commodity prices. Superior
assesses the inherent risks of these instruments by grouping derivative and non-financial derivatives related
to the exposures these instruments mitigate. Superior’s policy is not to use derivative or non-financial
derivative instruments for speculative purposes. Superior does not formally designate its derivatives
as hedges and, as a result, Superior does not apply hedge accounting and is required to designate its
derivatives and non-financial derivatives as held for trading.
Effective January 1, 2024, Superior changed its reporting currency from Canadian dollars to U.S. dollars. As
a result, Superior will no longer hedge its U.S. dollar translation exposure as the foreign currency exchange
risk will be significantly reduced. Subsequent to the 2023 year-end, Superior entered into foreign currency
forward contracts and options to offset the below notional amounts. As a result of this change the realized
gains (losses) on these instruments are excluded from Adjusted EBITDA.
Superior Plus
29
Annual Report 2024
As at December 31, 2024, a summary of the net notional amounts of Superior’s U.S. dollar forward
contracts and options and the offsetting amounts for the rolling twelve months is provided in the table
below.
Current
2026
2027
2028
2029
Total
USD-foreign currency forward sales
Contracts, net (in millions)
$17.4
–
–
–
–
$17.4
Net average external US$/CDN$
exchange rate
1.34
–
–
–
–
1.34
For additional details on Superior’s financial instruments, including the amount and classification of gains
and losses recorded, summary of fair values, notional balances, effective rates and terms, and significant
assumptions used in the calculation of the fair value of Superior’s financial instruments, see Note 16 to the
audited consolidated financial statements for the year ended December 31, 2024.
Sensitivity Analysis
Superior’s estimated cash flow sensitivity in 2024 to various changes is provided below:
Change
%
Change
Impact to
Adjusted EBITDA
(millions)
Impact to net
earnings (loss)
before income
tax (millions)
U.S. Propane
Change in U.S. propane sales margin
$0.015/gallon
1%
$
5.2
$
5.2
Change in U.S. propane sales volume 15 million gallons
4%
$ 19.1
$
19.1
Canadian Propane
Change in Canadian propane
sales margin
$0.015/gallon
2%
$
4.0
$
4.0
Change in Canadian propane
sales volume
15 million gallons
6%
$ 10.9
$ 10.9
Wholesale Propane
Change in Wholesale propane
third-party sales margin
$0.015/gallon
7%
$
5.4
$
5.4
Change in Wholesale propane
third-party sales volume(1)
15 million gallons
4%
$
2.0
$
2.0
CNG
Change in Adjusted EBITDA per MSU
$10.0/MSU
5%
$
7.8
$
7.8
Corporate
Change in CDN$/US$ exchange rate
on US$ denominated debt
$0.01
1%
$
–
$
6.3
Change in interest rates
0.50%
9%
$
–
$
3.7
(1) Based on total sales which includes sales to both the Canadian and U.S. Propane segments.
Management’s Discussion and Analysis
30
Annual Report 2024
Superior Plus
D I S C L O S U R E C O N T R O L S A N D P R O C E D U R E S
A N D I N T E R N A L C O N T R O L S O V E R F I N A N C I A L
R E P O R T I N G
Disclosure controls and procedures (DC&P) are designed by or under the supervision of Superior’s
President and Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) in order to provide
reasonable assurance that all material information relating to Superior is communicated to them by others
in the organization as it becomes known and is appropriately disclosed as required under the continuous
disclosure requirements of securities legislation and regulation. In essence, these types of controls are
related to the quality, reliability and transparency of financial and non-financial information that is filed or
submitted under securities legislation and regulation. The CEO and CFO are assisted in this responsibility
by a Disclosure Committee, which is composed of senior leadership of Superior. The Disclosure Committee
has established procedures so that it becomes aware of any material information affecting Superior in
order to evaluate and discuss this information and determine the appropriateness and timing of its
public release.
Internal Controls over Financial Reporting (ICFR) are also designed by or under the supervision of Superior’s
CEO and CFO and effected by Superior’s Board of Directors, management and other personnel in order
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with IFRS. A control system, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance that its objectives are met.
Due to inherent limitations in all such systems, no evaluation of controls can provide absolute assurance
that all control issues within a company have been detected. Accordingly, Superior’s disclosure controls
and procedures are designed to provide reasonable, not absolute, assurance that the objectives of the
corporation’s disclosure control system are met.
Changes in Internal Controls over Financial Reporting
No changes were made in Superior’s ICFR that have materially affected, or are reasonably likely to
materially affect, Superior’s ICFR in the year ended December 31, 2024. However, management continues
the process of harmonizing and integrating acquired businesses on to Superior’s existing information
technology platform.
Effectiveness
An evaluation of the design and operating effectiveness of Superior’s DC&P and ICFR was conducted as at
December 31, 2024 by and under the supervision of Superior’s management, including the CEO and CFO.
Based on this evaluation, the CEO and CFO have concluded that Superior’s DC&P and ICFR were designed
and operating effectively as at December 31, 2024.
C R I T I C A L A C C O U N T I N G P O L I C I E S A N D
E S T I M A T E S
Superior’s audited consolidated financial statements were prepared in accordance with IFRS. The significant
accounting policies are described in the audited consolidated financial statements for the year ended
December 31, 2024, except for changes disclosed below. Certain of these accounting policies, as well as
estimates made by management in applying such policies, are recognized as critical because they require
management to make subjective or complex judgments about matters that are inherently uncertain.
Superior’s critical accounting estimates relate to the allowance for doubtful accounts, employee future
benefits, deferred income tax assets and liabilities, the valuation of financial and non-financial derivatives,
asset impairments, estimating liabilities under the cap and trade programs, the translation of the January
1, 2023 opening retained earnings and cumulative translation adjustment on the transition to a US dollar
presentation currency and estimating the incremental borrowing rate on leases.
Superior Plus
31
Annual Report 2024
Changes in Accounting Policies and Disclosures
Amendments to IAS 1, Presentation of Financial Statements (“IAS 1”)
Adopted January 1, 2024, IAS 1 clarifies the requirements for classifying liabilities as current or non-current
and introduces additional disclosures of material information that enables users of financial statements to
comprehend the risk that non-current liabilities with covenants may become payable within the next twelve
months. The amendment has been applied retrospectively and had no material impact on the consolidated
financial statements.
Amendment to IFRS 16, Leases (“IFRS 16”)
Adopted January 1, 2024, IFRS 16 specifies the requirements that a seller-lessee uses in measuring the
lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize
any amount of the gain or loss that relates to the right of use it retains. This amendment has been applied
retrospectively and had no material impact on the consolidated financial statements.
Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures
Adopted January 1, 2024, these standards clarify the characteristics of supplier finance arrangements and
require certain disclosures on these arrangements, intended to assist users of financial statements in
understanding their impacts on the companies’ liabilities and cash flows. This amendment has been applied
retrospectively and had no material impact on the consolidated financial statements.
Amendment to IAS 12, International Tax Reform—Pillar Two Model Rules
Adopted January 1, 2024, this amendment to IAS 12 includes temporary mandatory relief from recognizing
and disclosing deferred taxes related to Pillar Two income taxes. The Company adopted the amendments
to IAS 12 and applied the exception to recognizing and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes. The global minimum tax rules are effective for the current
fiscal year and arise in or in relation to jurisdictions where the operations of the Company have an effective
tax rate below 15%.
Presentation Currency
Effective January 1, 2024, Superior elected to change its presentation currency from Canadian dollars to
U.S. dollars. The comparative financial statements were translated as if the U.S. dollar had been used as the
reporting currency since the beginning of 2010. Amounts denominated in Canadian dollars within the notes
to these audited consolidated financial statements are denoted with “C$” immediately prior to the stated
amount. The Company believes that the change in reporting currency to U.S. dollars will provide more
relevant information for the users of the audited consolidated financial statements as approximately 75%
of the Company’s consolidated revenues and consolidated assets are derived from operations in the United
States. The Company’s Canadian operations are determined to have the Canadian dollar as their functional
currency since their operating, financing and investing transactions are predominately denominated in
Canadian dollars. The financial statements of these operations are translated into U.S. dollars using the
current rate method, whereby assets and liabilities are translated at the rate prevailing at the balance sheet
date, and revenue and expenses are translated using average rates for the period. Unrealized gains or
losses arising as a result of the translation of the financial statements of these entities are reported as a
component of other comprehensive income (loss) (“OCI”) and are accumulated in a component of equity on
the consolidated balance sheets, and are not recorded in income unless there is a complete or substantially
complete sale or liquidation of the investment.
Recent Accounting Pronouncements
The recent accounting pronouncements are consistent with those disclosed in the annual consolidated
financial statements as at and for the year ended December 31, 2024, except for the following:
Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates
In August 2023, the IASB issued amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates.
The amendments address the lack of exchangeability of illiquid currencies and specify how an entity
determines the exchange rate when a currency is not readily exchangeable at the measurement date
as well as additional required disclosures. When a currency is not exchangeable, an entity estimates the
spot rate as the rate that would have been applied to an orderly transaction between market participants
at the measurement date and that would reflect the prevailing economic conditions. An entity must
disclose information that would enable users to evaluate how a currency’s lack of exchangeability affects
financial performance, financial positions, and cash flows of an entity. The amendments to IAS 21 are
effective January 1, 2025, with early adoption permitted. Superior is currently assessing the impact of these
amendments on its consolidated financial statements.
Management’s Discussion and Analysis
32
Annual Report 2024
Superior Plus
IFRS 18, Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued a new IFRS 18, Presentation and Disclosure in Financial Statements (“IFRS 18”)
replacing IAS 1. The new guidance is expected to improve the usefulness of information presented and
disclosed in the financial statements of companies. IFRS 18 introduces the following key changes:
• Structure of the statement of income (loss – IFRS 18 introduces a defined structure for the statement
of income (loss) composed of operating, investing, financing categories with defined subtotals, such as
operating earnings (loss), earnings (loss) before financing and income taxes and net earnings (loss) for
the year. The new guidance also requires disclosure of expenses in the operating category by nature,
function or a mix of both on the face of the statement of income (loss).
• Disclosures on management defined performance measures (MPMs) – IFRS 18 requires companies to
disclose definitions of company-specific MPMs that are related to the statement of income (loss) and
provide reconciliations between the MPMs and the most similar specified subtotals within the statement
of income (loss) in a single note.
• Aggregation and disaggregation (impacting all primary financial statements and notes) – IFRS 18
sets out enhanced guidance on the principles of how items should be aggregated based on shared
characteristics. The changes are expected to provide more detailed and useful information to investors.
IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with early adoption
permitted. Superior is currently assessing the impact of this new IFRS accounting standard on its
consolidated financial statements.
Amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures
In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to clarify the date of recognition and
derecognition of some financial assets and liabilities, with a new exception for some financial liabilities
settled using an electronic payment system. The amendments also clarify the requirements for assessing
whether a financial asset meets the solely payments of principal and interest criterion, and adds disclosure
requirements for financial instruments with certain contingent features and for equity investments
designated at fair value through other comprehensive income. The amendments are effective January
1, 2026, with early adoption permitted. The amendments are required to be adopted retrospectively by
adjusting the opening balance of financial assets, financial liabilities and retained earnings at the date
of adoption. The Company is assessing the impact of the amendments on the Company’s consolidated
financial statements.
Superior Plus
33
Annual Report 2024
Q U A R T E R L Y F I N A N C I A L A N D O P E R A T I N G
I N F O R M A T I O N
(millions of dollars, except per share amounts)
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Revenue
702.3
359.4
422.9
897.7
724.3
395.9
433.5
928.8
Gross profit
374.9
209.1
235.2
465.2
377.4
215.5
201.1
400.3
Net (loss) earnings
4.2
(62.0)
(45.3)
85.2
57.8
(80.1)
(29.4)
109.3
Per share, basic
($0.00)
($0.27)
($0.20)
$0.30
$0.20
($0.34)
($0.16)
$0.47
Per share, diluted
($0.00)
($0.27)
($0.20)
$0.30
$0.20
($0.34)
($0.16)
$0.47
Adjusted EBITDA(1)
159.2
17.4
43.3
235.6
162.3
18.6
29.5
204.3
Net working (deficit) capital(2)
12.7
(105.8)
(88.3)
2.0
(40.5)
(104.2)
(40.5)
42.4
(1) Adjusted EBITDA is a Non-GAAP financial measure, see “ Non-GAAP financial measures and reconciliations” on page 34.
(2) Net working (deficit) capital is comprised of trade and other receivables, prepaid expenses and deposits and inventories, less trade
and other payables, contract liabilities, and dividends payable.
Fluctuations in Superior’s individual quarterly results is subject to seasonality. Sales typically peak in the
first quarter when approximately one-third of annual propane and other refined fuels sales volumes
and gross profits are generated due to the demand of heating from end-use customers. They then
decline through the second and third quarters, rising seasonally again in the fourth quarter with heating
demand. In addition, the timing of acquisitions and divestitures may impact quarterly results. For
information on acquisitions see Note 3 Acquisitions in the December 31, 2024 annual audited consolidated
financial statements.
Volumes
U.S Propane sales by end-use application are as follows:
(millions of gallons)
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Residential
61
17
24
82
64
19
28
91
Commercial
48
25
30
58
50
30
36
63
Total
109
42
54
140
114
49
64
154
Canadian Propane sales by end-use application are as follows:
(millions of gallons)
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Residential
14
4
7
16
14
5
7
20
Commercial
65
39
47
75
67
41
49
90
Total
79
43
54
91
81
46
56
110
Wholesale Propane sales by region(1) are as follows:
(millions of gallons)
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
United States
85
59
53
98
89
63
70
112
Canada
20
8
10
24
19
8
9
20
Total
105
67
63
122
108
71
79
132
(1) Wholesale propane sales volumes exclude inter-segment sales.
CNG sales by region are as follows:
(thousands of MMBtu)
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
United States
5,781
5,992
5,850
6,214
4,850
4,803
1,724
–
Canada
1,524
1,047
1,162
1,837
1,290
868
311
–
Total
7,305
7,039
7,012
8,051
6,140
5,671
2,035
–
(1) CNG Q2 2023 sales volumes are from the date of acquisition to June 30, 2023.
Management’s Discussion and Analysis
34
Annual Report 2024
Superior Plus
N O N - G A A P F I N A N C I A L M E A S U R E S A N D
R E C O N C I L I A T I O N S
Throughout the MD&A, Superior has used the following terms that are not defined by IFRS, but are used by
management to evaluate the performance of Superior and its business. These measures 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 meaning prescribed by IFRS and
are therefore unlikely to be comparable to similar measures presented by other companies. Securities
regulations require that Non-GAAP financial measures be clearly defined, qualified and reconciled to
their most comparable IFRS 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.
The intent of Non-GAAP financial measures is to provide additional useful information to investors and
analysts, and the measures do not have any standardized meaning under IFRS. The measures should
not, therefore, be considered in isolation or used in substitute for measures of performance prepared
in accordance with IFRS. Other issuers may calculate Non-GAAP financial measures differently. Investors
should be cautioned that Adjusted EBITDA from operations and Adjusted EBITDA should not be construed
as alternatives 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.
Non-GAAP financial measures are identified and defined as follows:
Adjusted EBITDA and Adjusted EBITDA per share
Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, losses (gains)
on disposal of assets, finance expense, restructuring costs, transaction, restructuring and other costs,
unrealized gains (losses) on derivative financial instruments, except for unrealized gains (losses) related
to equity derivative contracts and realized gains (losses) on foreign currency forward contracts. Adjusted
EBITDA is used by Superior and investors to assess its consolidated results and ability to service debt.
Adjusted EBITDA is consistent with Superior’s segment profit (loss) as disclosed in Note 26 of the audited
consolidated financial statements.
Adjusted EBITDA is a significant performance measure used by management and investors to evaluate
Superior’s ongoing performance of its businesses. Adjusted EBITDA is also used as one component in
determining short-term incentive compensation for certain management employees. Adjusted EBITDA is
consistent with Segment Profit as disclosed in Note 26 of the audited consolidated financial statements.
Adjusted EBITDA per share is calculated by dividing Adjusted EBITDA by the weighted average shares
assuming the exchange of the issued and outstanding preferred shares into common shares.
Superior changed the definition of Adjusted EBITDA from its historical definition to exclude the realized
gains (losses) on foreign currency forward contracts and include unrealized gains (losses) related to equity
derivatives. The foreign currency forward contracts were used to provide a hedge on the translation of
U.S. denominated Adjusted EBITDA to Canadian dollars. As a result of the change in presentation currency,
management is no longer hedging U.S. denominated Adjusted EBITDA and is excluding these realized
gains (losses) from Adjusted EBITDA as there is no longer an offsetting gain (loss) on the translation of U.S.
denominated Adjusted EBITDA. Management is currently not entering into similar instruments related to
the translation of Canadian denominated Adjusted EBITDA. This change has been made retrospectively.
In addition to the change in presentation currency, effective January 1, 2024 Superior implemented hedge
accounting for Superior’s long-term incentive plan and related equity derivatives, and now includes these
unrealized gains/losses as part of Adjusted EBITDA. The intention of this change in accounting policy is to
reduce some of the volatility related to changes in Superior’s share price on the long-term incentive costs.
The seasonality of Superior’s individual quarterly results must be assessed in the context of annualized
Adjusted EBITDA.
Adjusted EBTDA and Adjusted EBTDA per share
Adjusted EBTDA is calculated as Adjusted EBITDA less interest on borrowings and interest on lease liability.
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. Adjusted
EBTDA is used by Superior to measure performance of key senior management.
Adjusted EBITDA from operations
Adjusted EBITDA from operations is defined as the sum of U.S. Propane, Canadian Propane, Wholesale
Propane and CNG segment profit (loss). Management uses Adjusted EBITDA from operations to set targets
for Superiors’ operating segments (including annual guidance and variable compensation targets). Note 26
of the audited consolidated financial statements discloses the segment profit (loss).
Superior Plus
35
Annual Report 2024
Below is a reconciliation of net earnings to EBITDA and Adjusted EBITDA related to CNG for the period
of January 1, 2023 to the date of acquisition. The Adjusted EBITDA number is used as part of 2023 Pro
Forma Adjusted EBITDA to include the impact of the Certarus acquisition from January 1, 2023, as the full
economic benefit of CNGs 2023 Adjusted EBITDA prior to the close of the Certarus acquisition was retained
in the business. The pro forma Adjusted EBITDA for CNG for the period of January 1, 2023 to the date of
acquisition was approximately $67.5 million.
For the period January 1, 2023 to the date of acquisition
CNG
Net earnings before income taxes for the year ended December 31, 2023
55.1
Adjust for:
Amortization and depreciation
64.4
Finance expense
6.1
EBITDA
125.6
Adjust for transaction, restructuring and other costs
12.6
Adjusted EBITDA for the year ended December 31, 2023
138.2
Less Adjusted EBITDA from the date of acquisition to December 31, 2023
(70.7)
Adjusted EBITDA for the period January 1, 2023 to the date of acquisition
67.5
The above Adjusted EBITDA earned from January 1, 2023 to March 31, 2023 was $47.2M and from April 1,
2023 to the date of acquisition was $20.3M.
Adjusted Gross Profit
Adjusted gross profit represents revenue less cost of sales adjusted for realized gains and losses on
commodity derivative instruments related to risk management. Management uses Adjusted Gross Profit to
set margin targets and measure results. Unrealized gains and losses on commodity derivative instruments
are excluded as a result of the customer contract not being included in the determination of the fair value
for this risk management activity.
Realized gain (loss) on derivatives related to commodity risk management reconcile to total gain (loss) follows:
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Realized gains (losses) related to commodity
risk management
U.S. Propane
(0.9)
(2.8)
1.6
(21.4)
Wholesale Propane
(0.3)
(1.4)
0.1
(10.3)
Realized (losses) gains included in Adjusted
Gross profit
(1.2)
(4.2)
1.7
(31.7)
Unrealized gain on equity derivative contracts
(3.2)
–
(6.2)
–
Losses included in Adjusted EBITDA
4.4
(4.2)
4.5
(31.7)
Unrealized loss on equity derivative contracts
–
(1.1)
–
(2.7)
Foreign currency forward contracts, net
2.0
11.3
(8.7)
6.7
Unrealized (losses) gains related to commodity
risk management
7.2
(10.6)
7.4
23.4
Unrealized gain (loss) on U.S. dollar debt
issued by a Canadian entity
(35.2)
14.9
(47.1)
14.3
(Loss) gain on derivatives and foreign currency
translation of borrowings
(30.4)
10.3
(52.9)
10.0
For additional details on Superior’s financial instruments, including the amount and classification of gains
and losses recorded, summary of fair values, notional balances, effective rates and terms, and significant
assumptions used in the calculation of the fair value of Superior’s financial instruments, see Note 16 to the
audited consolidated financial statements for the year ended December 31, 2024.
Management’s Discussion and Analysis
36
Annual Report 2024
Superior Plus
Per MSU amounts
Per MSU amounts represent the operating results of CNG divided by the average number of MSUs for the
period. Superior uses per average MSU amounts to evaluate operating productivity. Per MSU amounts are
presented in thousands of dollars.
Adjusted EBITDA per average MSU
Adjusted EBITDA per average MSU is used to evaluate the productivity during a reporting period. Adjusted
EBITDA per average MSU is equal to Adjusted EBITDA divided by the average number of MSUs for the
period.
Operating Costs
Operating costs for the U.S., Canadian, Wholesale Propane and CNG segments include wages and benefits
for employees, drivers, service and administrative labour, fleet maintenance, freight and distribution
expenses excluded from cost of sales, along with the costs associated with owning and maintaining land,
buildings and equipment, such as rent, repairs and maintenance, environmental, utilities, insurance
and property tax costs. Operating costs exclude gains or losses on disposal of assets, depreciation and
amortization, transaction, restructuring and integration costs.
Corporate operating costs include wages and benefits for employees, professional fees and other costs
associated with the corporate function. Corporate operating costs are defined as SD&A expenses related to
the corporate office adjusted for amortization and depreciation, gains or losses on disposal of assets and
transaction, restructuring and integration costs. As a result of implementing hedge accounting for Superior’s
long-term incentive plan and related equity derivatives, Superior now includes these unrealized gains/losses
as part of Corporate operating costs. See above for a reconciliation of gains (losses) on derivatives and
foreign currency translation of borrowings included in Adjusted EBITDA.
Net Debt, Pro Forma Adjusted EBITDA and Leverage Ratio
Pro Forma Adjusted EBITDA and Net debt are Non-GAAP financial measures. Superior uses Pro Forma
Adjusted EBITDA and Net debt to calculate its Leverage ratio and, as a result, Leverage ratio is a Non-GAAP
ratio. This ratio is used by Superior, investors and other users of financial information to assess its ability to
service debt.
Pro Forma Adjusted EBITDA is Adjusted EBITDA calculated on a 12-month trailing basis giving pro forma
effect to acquisitions to the first day of the calculation period. Pro Forma Adjusted EBITDA is used by
Superior to calculate its Leverage Ratio.
2023 Pro Forma Adjusted EBITDA is used to provide comparable 2023 results which reflect pro forma
adjustment impact related to CNG for the period of January 1, 2023 to the date of the acquisition on May
31, 2023. This adjustment is reconciled to CNGs net income for the same period above.
Net Debt is calculated by the sum of borrowings and lease liabilities before deferred financing fees reduced
by Superior cash and cash equivalents and Vendor Note. Net Debt is used by Superior to calculate its
Leverage Ratio.
Leverage ratio is determined by dividing Superior’s Net Debt by their Pro Forma Adjusted EBITDA.
37
Annual Report 2024
Superior Plus
Reconciliation of Net debt and Pro Forma Adjusted EBITDA
(in millions)
2024
2023
Current borrowings
7.2
8.5
Current lease liabilities
43.5
48.0
Non-current borrowings
1,696.6
1,684.7
Non-current lease liabilities
121.8
132.9
1,869.1
1,874.1
Add back deferred financing fees and discounts
13.3
17.4
Deduct cash and cash equivalents
(17.1)
(30.7)
Net debt
1,865.3
1,860.8
Adjusted EBITDA for the year
455.5
414.7
Pro-forma adjustment
-
67.5
Pro-forma Adjusted EBITDA for the trailing-twelve months
455.5
482.2
Leverage Ratio
4.1x
3.9x
R I S K F A C T O R S T O S U P E R I O R
Superior’s assessment and summary of its material risk factors are detailed in Superior’s most recent
Annual Information Form (“AIF”) under “Risks associated with our business” which is filed on the Canadian
Securities Administrators’ website, www.sedarplus.ca, and on Superior’s website, www.superiorplus.com.
The AIF describes some of the most material risks to Superior’s business by type of risk: financial; corporate;
operational; and legal. Additional risks not disclosed in the most recently published AIF are:
International Trade Relations
The U.S. government has indicated its intent to alter its approach to international trade policy, including
the possibility of renegotiating certain existing trade agreements with foreign countries, such as the United
States Mexico Canada Agreement. In addition, the U.S. government has indicated that it is considering
imposing tariffs on certain foreign goods, and related to this, certain foreign governments, including Canada,
have indicated the possibility of imposing tariffs on U.S. goods. It remains unclear what the U.S. government,
the Canadian government and other foreign governments will or will not do with respect to tariffs or other
international trade agreements and policies. Trade disruption caused by governmental action related to
tariffs or international trade agreements or policies has the potential to adversely impact our supply chain
and the domestic and foreign markets for our products and, thus, to have a material adverse effect on our
businesses and results of operations.
Current economic conditions
Adverse and uncertain economic conditions may impact consumer demand for our products. The global
economy is currently characterized by increased volatility and uncertainty, particularly, in connection
with the effects of increased inflation, the threat and imposition of tariffs, higher interest rates and the
consequential change in investor’s perceptions of inflationary expectations and the geopolitical crises in
Ukraine and the Middle East, including Israel and the Suez Canal.
Consumers may shift purchases to lower-priced or other perceived value offerings during economic
downturns. Superior’s success depends upon, among other things, its ability to obtain certain sales volume,
its ability to attract new consumers and its ability to provide products that appeal to consumers at the right
price. Prolonged unfavorable economic conditions may have an adverse effect on our sales and profitability.
Consolidated Financial Statements
38
Annual Report 2024
Superior Plus
M A N A G E M E N T ’ S R E S P O N S I B I L I T Y F O R
F I N A N C I A L S T A T E M E N T S
The accompanying consolidated financial statements of Superior Plus Corp. (Superior) are the responsibility
of management and have been approved by the Board of Directors.
The consolidated financial statements were prepared by management in accordance with International
Financial Reporting Standards (“IFRS Accounting Standards”) and include certain estimates that are
based on management’s best judgments. Actual results may differ from these estimates and judgments.
Management has determined that the consolidated financial statements are presented fairly in all
material respects.
Management has developed and maintains a system of internal controls to provide reasonable assurance
that Superior’s assets are safeguarded, transactions are accurately recorded, and the financial statements
report Superior’s operating and financial results in a timely manner. Financial information presented
elsewhere in this annual report has been prepared on a basis consistent with that in the consolidated
financial statements.
The Board of Directors of Superior is responsible for reviewing and approving the consolidated financial
statements and, primarily through its Audit Committee, ensures that management fulfills its responsibilities
for financial reporting. The Audit Committee meets with management and Superior’s external auditor,
to discuss internal controls over the financial reporting process, auditing matters and financial reporting
issues, to satisfy itself that each party is properly discharging its responsibilities and to review the
consolidated financial statements. The Audit Committee reports its findings to the Board of Directors for
approval of the consolidated financial statements for issuance to the shareholders. The Audit Committee
also considers, for review by the Board of Directors and approval by the shareholders, the engagement and
appointment of the external auditor.
The consolidated financial statements have been audited by Ernst & Young LLP, who were appointed at
Superior’s last annual meeting.
/s/ “Allan MacDonald”
/s/ “Grier Colter”
Allan MacDonald
Grier Colter
President and Chief Executive Officer
Chief Financial Officer
Superior Plus Corp.
Superior Plus Corp.
Toronto, Ontario
February 26, 2025
39
Annual Report 2024
Superior Plus
I N D E P E N D E N T A U D I T O R ’ S R E P O R T
To the Shareholders and the Board of Directors of Superior Plus Corp.
Opinion
We have audited the consolidated financial statements of Superior Plus Corp. and its subsidiaries (the
Group), which comprise the consolidated balance sheets as at December 31, 2024, 2023, and 2022, and
the consolidated statements of changes in equity, consolidated statements of net (loss) earnings and total
comprehensive (loss) earnings, and consolidated statements of cash flows for the years ended December
31, 2024 and 2023, and notes to the consolidated financial statements, including material accounting
policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at December 31, 2024, 2023, and 2022 and its
consolidated financial performance and its consolidated cash flows for the years ended December 31, 2024
and 2023 in accordance with IFRS Accounting Standards.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated financial statements section of our report. We are independent of the Group in accordance
with the ethical requirements that are relevant to our audit of the consolidated financial statements in
Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in the
audit of the consolidated financial statements of the current period. These matters were addressed in
the context of the audit of the consolidated financial statements as a whole, and in forming the auditor’s
opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the consolidated financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying consolidated financial statements.
Key audit matter
How our audit addressed the key audit matter
Assessment of impairment of goodwill
As detailed in Note 8 Goodwill and
Intangible Assets of the consolidated
financial statements, the Group has
$1,404.4 million of goodwill as at
December 31, 2024. For purposes
of impairment testing, goodwill is
allocated to each of Superior’s cash
generating units (“CGUs”). CGUs to
which goodwill have been allocated
are tested for impairment annually or
more frequently upon indication of
impairment, in accordance with IAS
36 Impairment of Assets. Recoverable
amount estimates are determined
using fair value less cost of disposal or
value in use. As detailed in Note 8 of
the consolidated financial statements,
excluding goodwill associated with
assets disposed of during the period,
the Group did not recognize any
goodwill impairment for the year
ended December 31, 2024.
To test the estimated recoverable amount of the CGUs, our
audit procedures included, among others, assessing the
significant assumptions and underlying data used by the Group
in its analysis. To assess the reliability of earnings forecasts and
terminal growth rates used in the estimation of the recoverable
amount we performed the following procedures, among others:
• Compared financial performance and growth rates implicit in
current forecasts to historical results;
• Compared historical forecasts to actual financial performance
to assess the completeness and accuracy of Group’s
forecasts and to evaluate the ability of the CGUs to achieve
the forecasted cashflows;
• Considered other factors relevant to comparability of
historical actual results, such as experienced heating degree
days, and the impact of significant acquisitions or disposals;
• Involved our valuation specialists to compare forecasted
growth rates relative to comparable industry participants; and
• Involved our valuation specialists to perform sensitivity
analyses on growth rates implicit within the earnings
forecasts evaluate the impact on the recoverable amount.
Consolidated Financial Statements
40
Annual Report 2024
Superior Plus
Key audit matter
How our audit addressed the key audit matter
Assessment of impairment of goodwill
Auditing the Group’s annual goodwill
impairment tests was complex,
given the degree of judgment and
subjectivity in evaluating the Group’s
estimates and assumptions in
determining the recoverable amount
of the CGUs established using value in
use. Significant assumptions included
earnings forecasts, terminal growth
rate estimates, and discount rates,
which are affected by expectations
about future performance as well as
market and economic conditions.
We involved our valuation specialists to assess the various
inputs utilized in determining the discount rate by referencing
current industry, economic, and comparable Group information,
as well as Group and cash-flow specific risk premiums. We
also involved our valuation specialists to assess the overall
reasonableness of the recoverable amounts estimated by
comparing and reconciling the Group’s estimated recoverable
amounts against the Group’s market capitalization.
We evaluated the adequacy and completeness of the disclosure
included in Note 8 of the consolidated financial statements
based on the IFRS Accounting Standards requirements.
Other information
Management is responsible for the other information. The other information comprises:
• Management’s Discussion and Analysis
• The information, other than the consolidated financial statements and our auditor’s report thereon, in
the Annual Report
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information, and in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
We obtained Management’s Discussion & Analysis prior to the date of this auditor’s report. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact in this auditor’s report. We have nothing to report in this regard.
The Annual Report is expected to be made available to us after the date of the auditor’s report. If, based on
the work we will perform on this other information, we conclude there is a material misstatement of other
information, we are required to report that fact to those charged with governance.
Responsibilities of management and those charged with governance for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with Canadian generally accepted auditing standards will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
41
Annual Report 2024
Superior Plus
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content of the consolidated financial statements, including the disclosures, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for
the direction, supervision and review of the work performed for the purposes of the group audit. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Tracy Brennan.
Toronto, Canada
Chartered Professional Accountants
February 26, 2025
Licensed Public Accountants
Consolidated Financial Statements
42
Annual Report 2024
Superior Plus
S U P E R I O R P L U S C O R P .
C O N S O L I D A T E D B A L A N C E S H E E T S
As at
December 31
As at
December 31
As at
December 31
(Audited, millions of United States dollars “USD”)
Note
2024
2023(1)
2022(1)
Assets
Current Assets
Cash and cash equivalents
17.1
30.7
43.1
Trade and other receivables
4
330.8
322.6
392.4
Prepaids and deposits
5
63.6
48.3
73.5
Inventories
6
77.9
87.3
112.9
Other current financial assets
16
14.9
5.5
7.9
Total Current Assets
504.3
494.4
629.8
Non-current Assets
Property, plant and equipment
3, 7
1,392.7
1,462.7
1,006.8
Goodwill and intangible assets
3, 8
1,776.4
1,925.4
1,639.3
Employee future benefits and other assets
15
5.5
5.6
5.0
Deferred tax assets
17
3.8
15.3
23.7
Other non-current financial assets
16
3.8
3.7
0.4
Total Non-current Assets
3,182.2
3,412.7
2,675.2
Total Assets
3,686.5
3,907.1
3,305.0
Liabilities and Equity
Current Liabilities
Trade and other payables
10
428.6
441.7
428.3
Contract liabilities
11
18.8
18.5
18.4
Lease liabilities
14
43.5
48.0
34.9
Borrowings
13
7.2
8.5
10.9
Dividends payable
12.2
38.5
10.5
Other current financial liabilities
16
20.2
14.5
41.0
Total Current Liabilities
530.5
569.7
544.0
Non-current Liabilities
Lease liabilities
14
121.8
132.9
129.6
Borrowings
13
1,696.6
1,684.7
1,410.2
Other liabilities
12
13.5
8.4
27.4
Provisions
9
8.0
8.0
6.1
Employee future benefits
15
3.3
3.8
4.0
Deferred tax liabilities
17
159.0
159.3
96.5
Other non-current financial liabilities
16
8.0
3.0
9.4
Total Non-current Liabilities
2,010.2
2,000.1
1,683.2
Total Liabilities
2,540.7
2,569.8
2,227.2
Equity
Capital
2,626.7
2,712.2
2,360.2
Deficit
(1,732.7)
(1,614.2)
(1,528.0)
Accumulated other comprehensive loss
(8.2)
(20.7)
(14.4)
Non-controlling interest
260.0
260.0
260.0
Total Equity
18
1,145.8
1,337.3
1,077.8
Total Liabilities and Equity
3,686.5
3,907.1
3,305.0
(1) Restated, see Note 2(a)
See accompanying Notes to the Audited Consolidated Financial Statements.
43
Annual Report 2024
Superior Plus
S U P E R I O R P L U S C O R P .
C O N S O L I D A T E D S T A T E M E N T S O F C H A N G E S I N E Q U I T Y
(Audited, millions of USD)
Share Capital
(Note 18)
Contributed
Surplus
Total
Capital
Deficit
Accumulated
Other
Comprehensive
(Loss) Earnings
Non-
controlling
Interest
(Note 18)
Total
As at January 1, 2024
2,711.1
1.1
2,712.2
(1,614.2)
(20.7)
260.0
1,337.3
Net (loss) earnings for the year
–
–
–
(36.8)
–
18.9
(17.9)
Unrealized foreign currency gain on
translation of foreign operations
–
–
–
–
13.4
–
13.4
Net loss on equity hedges
–
–
–
–
(1.2)
–
(1.2)
Income tax recovery on other
comprehensive earnings
–
–
–
–
0.3
–
0.3
Total comprehensive earnings
–
–
–
(36.8)
12.5
18.9
(5.4)
Common shares repurchased and
cancelled (Note 18)
(85.5)
–
(85.5)
38.5
–
–
(47.0)
Dividends and dividend equivalent
declared to common shareholders
–
–
–
(105.5)
–
–
(105.5)
Dividends to non-controlling
interest shareholders
–
–
–
–
–
(18.9)
(18.9)
Adjustment for APP Liability (Note 18)
–
–
–
(14.7)
–
–
(14.7)
As at December 31, 2024
2,625.6
1.1
2,626.7
(1,732.7)
(8.2)
260.0
1,145.8
As at January 1, 2023(1)
2,359.1
1.1
2,360.2
(1,528.0)
(14.4)
260.0
1,077.8
Net earnings for the year
–
–
–
38.7
–
18.9
57.6
Unrealized foreign currency loss on
translation of foreign operations
–
–
–
–
(6.0)
–
(6.0)
Actuarial defined benefit loss
–
–
–
–
(0.4)
–
(0.4)
Income tax recovery on other
comprehensive earnings
–
–
–
–
0.1
–
0.1
Total comprehensive earnings (loss)
–
–
–
38.7
(6.3)
18.9
51.3
Common shares issued, net of costs
358.8
–
358.8
–
–
–
358.8
Common shares repurchased and
cancelled (Note 18)
(6.8)
–
(6.8)
1.5
–
–
(5.3)
Dividends and dividend equivalent
declared to common shareholders
–
–
–
(126.4)
–
–
(126.4)
Dividends to non-controlling
interest shareholders
–
–
–
–
–
(18.9)
(18.9)
As at December 31, 2023
2,711.1
1.1
2,712.2
(1,614.2)
(20.7)
260.0
1,337.3
(1) Restated, see Note 2(a)
See accompanying Notes to the Audited Consolidated Financial Statements.
Consolidated Financial Statements
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Annual Report 2024
Superior Plus
S U P E R I O R P L U S C O R P .
C O N S O L I D A T E D S T A T E M E N T S O F N E T ( L O S S ) E A R N I N G S A N D
T O T A L C O M P R E H E N S I V E ( L O S S ) E A R N I N G S
Years Ended December 31
(Audited, millions of USD, except per share amounts)
Note
2024
2023(1)
Revenue
19, 21
2,382.3
2,482.5
Cost of sales (includes products and services)
19
(1,097.9)
(1,288.2)
Gross profit
1,284.4
1,194.3
Expenses
Selling, distribution and administrative costs (“SD&A”)
19
(1,102.5)
(1,028.0)
Finance expense
19
(106.4)
(92.6)
(Loss) gain on derivatives and foreign currency translation of borrowings
16, 19
(52.9)
10.0
(1,261.8)
(1,110.6)
Earnings before income taxes
19
22.6
83.7
Income tax expense
17
(40.5)
(26.1)
Net (loss) earnings for the year
19
(17.9)
57.6
Net (loss) earnings attributable to:
Superior
(36.8)
38.7
Non-controlling interest
18.9
18.9
Net (loss) earnings per share attributable to Superior
Basic and diluted
20
(0.15)
0.17
Other comprehensive earnings (loss)
Item that may be reclassified subsequently to net (loss) earnings
Unrealized foreign currency gain (loss) on translation of foreign operations
13.4
(6.0)
Unrealized loss on equity hedges
(1.2)
–
Items that will not be reclassified to net (loss) earnings
Actuarial defined benefit loss
–
(0.4)
Income tax recovery on other comprehensive earnings
0.3
0.1
Other comprehensive earnings (loss) for the year
12.5
(6.2)
Total comprehensive (loss) earnings for the year
(5.4)
51.3
Total comprehensive (loss) earnings for the year attributable to:
Superior
(24.3)
32.5
Non-controlling interest
18.9
18.9
(1) Restated, see Note 2(a)
See accompanying Notes to the Audited Consolidated Financial Statements.
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Annual Report 2024
Superior Plus
S U P E R I O R P L U S C O R P .
C O N S O L I D A T E D S T A T E M E N T S O F C A S H F L O W S
Year Ended December 31
(Audited, millions of USD)
Note
2024
2023(1)
OPERATING ACTIVITIES
Net (loss) earnings for the year
(17.9)
57.6
Adjustments for:
Depreciation included in SD&A
7
142.9
133.3
Depreciation of right-of-use assets included in SD&A
7
37.0
34.8
Amortization of intangible assets included in SD&A
8
82.7
77.4
Loss (gain) on disposal of assets
2.0
(2.9)
Unrealized loss (gain) on financial and non-financial derivatives and foreign exchange loss
on U.S. dollar debt
16
47.9
(48.5)
Finance expense
106.4
92.6
Income tax expense
40.5
26.1
Changes in non-cash operating working capital and other
23
(30.1)
136.8
Cash flows from operating activities before income taxes and interest paid
411.4
507.2
Income taxes paid
(37.1)
(10.3)
Interest paid
(100.2)
(91.0)
Cash flows from operating activities
274.1
405.9
INVESTING ACTIVITIES
Acquisitions, net of cash acquired
3
–
(249.8)
Purchase of property, plant and equipment and intangible assets
26
(160.4)
(148.4)
Proceeds on disposal of property, plant and equipment and other assets
3
18.3
53.5
Cash flows used in investing activities
(142.1)
(344.7)
FINANCING ACTIVITIES
Proceeds from borrowings
843.3
1,684.4
Repayment of borrowings
(752.9)
(1,594.2)
Principal repayment of lease obligations
(39.0)
(39.1)
Common share issuance costs
18
–
(0.1)
Debt issue costs on credit facilities
–
(1.7)
Repurchased and cancelled common shares
18
(47.0)
(5.3)
Dividends paid to shareholders
(149.1)
(117.9)
Cash flows used in financing activities
(144.7)
(73.9)
Net decrease in cash and cash equivalents
(12.7)
(12.7)
Cash and cash equivalents, beginning of the year
30.7
43.1
Effect of translation of foreign currency-denominated cash and cash equivalents
(0.9)
0.3
Cash and cash equivalents, end of the year
17.1
30.7
(1) Restated, see Note 2(a)
Notes to the Consolidated Financial Statements
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Annual Report 2024
Superior Plus
N O T E S T O T H E C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
(Audited, all amounts including tabular amounts are stated in millions of United States dollars, except per
share amounts and unless otherwise stated)
1 . O R G A N I Z A T I O N
Superior Plus Corp. (“Superior” or the “Company”) is a diversified business corporation, incorporated under
the Canada Business Corporations Act. The registered office is located at Suite 3610, 155 Wellington Street
West, Toronto, Ontario. Superior is a publicly traded company with its common shares trading on the
Toronto Stock Exchange (the “TSX”) under the exchange symbol “SPB”.
These consolidated financial statements were authorized for issue by the Board of Directors on February
26, 2025.
Reportable Operating Segments
Superior reports four distinct segments: United States Retail Propane Distribution (“U.S. Propane”),
Canadian Retail Propane Distribution (“Canadian Propane”), North American Wholesale Propane
Distribution (“Wholesale Propane”) and Compressed Natural Gas Distribution (“CNG”). The U.S. Propane
segment distributes propane gas and liquid fuels primarily in the Eastern United States, as well as the
Midwest and California, to residential and commercial customers. The Canadian Propane segment
distributes propane gas and liquid fuels across Canada to residential and commercial customers.
The Wholesale Propane segment supplies the majority of the propane gas for the Canadian Propane
business, a portion of the propane gas for the U.S. Propane business and also supplies propane and
other natural gas liquids to third-party wholesale customers in Canada and the United States (“U.S.”).
The CNG segment is a comprehensive low-carbon energy solution provider engaged in the business of
transporting and selling primarily compressed natural gas, renewable natural gas and to a lesser extent
hydrogen and helium. Its principal business is supplying fuel for large-scale industrial and commercial
customers in the United States and Canada. Superior started reporting this segment on May 31, 2023,
when all the issued and outstanding shares of Certarus Ltd. (“Certarus”) was acquired, see Note 3.
2 . B A S I S O F P R E S E N T A T I O N
(a) Preparation of Consolidated Financial Statements
The accompanying consolidated financial statements were prepared in accordance with IFRS Accounting
Standards as issued by the International Accounting Standards Board (“IASB”). The consolidated financial
statements were prepared on a going concern basis.
The consolidated financial statements were prepared on a historical cost basis, except for the revaluation
of certain financial instruments, and incorporate the accounts of Superior and its subsidiaries. Subsidiaries
are all entities over which Superior has the power to govern the financial and operating policies, generally
accompanying a shareholding of more than one-half of the voting rights. The financial results of subsidiaries
are included in Superior’s consolidated statements of net (loss) earnings and total comprehensive
earnings (loss) from date of acquisition, or in the case of disposals, up to the effective date of disposal.
Where Superior’s interest is less than 100%, the interest attributable to outside shareholders is reflected
in non-controlling interest (“NCI”). A subsidiary of Superior has outstanding cumulative preference shares
that are classified as equity and reported as part of NCI; see Note 18. Superior computes its share of net
earnings after deducting for the dividend entitlement on these preference shares. The NCI is translated
using exchange rates prevailing at the end of each reporting period with the foreign exchange translation
included in other comprehensive earnings (loss) for the year.
All transactions and balances between Superior and Superior’s subsidiaries are eliminated upon
consolidation. The assets and liabilities of Superior’s foreign operations are translated using exchange rates
prevailing at the end of each reporting period. Income and expense items are translated at the average
exchange rates for the year. Exchange differences are recognized in other comprehensive earnings (loss)
for the year.
If Superior loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities,
NCI and other components of equity, while any resultant gain or loss is recorded in profit or loss. Any
investment retained is recognized at fair value.
Change in Presentation Currency
The presentation currency used to prepare these consolidated financial statements is U.S. dollars. The
comparative financial statements were translated as if the U.S. dollar had been used as the reporting
currency since the beginning of 2010. Amounts denominated in Canadian dollars within the notes to
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Annual Report 2024
Superior Plus
these consolidated financial statements are denoted with “C$” immediately prior to the stated amount.
The Company believes that the change in reporting currency to U.S. dollars will provide more relevant
information for the users of the financial statements as the majority of the Company’s consolidated
revenues and consolidated assets are derived from operations in the United States. The Company’s
Canadian operations are determined to have the Canadian dollar as their functional currency since their
operating, financing and investing transactions are predominately denominated in Canadian dollars. The
consolidated financial statements of these operations are translated into U.S. dollars using the current rate
method, whereby assets and liabilities are translated at the rate prevailing at the balance sheet date, and
revenue and expenses are translated using average rates for the period. Unrealized gains or losses arising
as a result of the translation of the financial statements of these entities are reported as a component of
other comprehensive earnings (“OCI”) and are accumulated in a component of equity on the consolidated
balance sheets and are not recorded in income unless there is a complete or substantially complete sale or
liquidation of the investment.
(b) Material Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents include cash and highly liquid short-term investments that, on the date
of acquisition, have a term to maturity of three months or less. For the purpose of the consolidated
statements of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management. As at December 31, 2024, cash equivalents amounted to $10.7 million with a maturity of less
than 30 days (2023 – $8.3 million).
Inventories
Inventories are valued at the lower of cost and net realizable value. Costs of inventories are determined
either on a weighted average cost or first-in, first-out basis. The net realizable value of inventory is based
on the estimated selling price in the ordinary course of business less the estimated costs necessary to
complete the sale.
Financial Instruments and Derivative Financial Instruments
Financial assets and financial liabilities, including derivatives, are recognized on the consolidated balance
sheets when the Company becomes a party to the financial instrument or derivative contract.
Classification
The Company classifies its financial assets and financial liabilities in the following measurement categories:
i) those to be measured subsequently at fair value through profit or loss (“FVTPL”); ii) those to be measured
subsequently at fair value through other comprehensive earnings and iii) those to be measured at amortized
cost. The classification of financial assets depends on the business model for managing the financial assets
and the contractual terms of the cash flows. Financial liabilities are classified as those to be measured at
amortized cost unless they are designated as those to be measured subsequently at FVTPL. For assets
and liabilities measured at fair value, gains and losses are either recorded in profit or loss, or other
comprehensive earnings. Realized gains and losses on derivative financial instruments are recorded as a
component of gains (losses) on derivatives and foreign currency translation of borrowings together with the
unrealized gains (losses) on derivatives.
The Company reclassifies financial assets when and only when its business model for managing those
assets changes. Financial liabilities are not reclassified.
For classification of the Company’s consolidated financial assets and financial liabilities, refer to Note 16.
Measurement
All financial instruments are required to be measured at fair value on initial recognition, plus, in the case
of a financial asset or financial liability not at FVTPL, transaction costs that are directly attributable to
the acquisition or issuance of the financial asset or financial liability. Transaction costs of financial assets
and financial liabilities carried at FVTPL are expensed in profit or loss. Financial assets with embedded
derivatives are considered in their entirety when determining whether their cash flows are solely payments
of principal and interest.
Financial assets that are held within a business model whose objective is to collect the contractual cash
flows, and that have contractual cash flows that are solely payments of principal and interest on the
principal outstanding, are generally measured at amortized cost at the end of the subsequent accounting
periods. All other financial assets including equity investments are measured at their fair values at the end
of subsequent accounting periods, with any changes taken through the consolidated statements of net
(loss) earnings and total comprehensive earnings. For financial liabilities measured subsequently at FVTPL,
changes in fair value due to Superior’s credit risk are recorded in other comprehensive earnings.
Notes to the Consolidated Financial Statements
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Annual Report 2024
Superior Plus
Impairment
The Company recognizes expected credit losses for trade receivables based on the simplified approach
under IFRS 9, Financial Instruments (“IFRS 9”). The simplified approach to the recognition of expected losses
does not require the Company to track the changes in credit risk; rather, the Company recognizes a loss
allowance based on lifetime expected credit losses at each reporting date from the date of the trade
receivable. The Company recognizes an allowance for expected credit losses for all debt instruments not
held at FVTPL.
Evidence of impairment may include indications that a debtor or a group of debtors is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the probability that they
will enter bankruptcy or other financial reorganization and where observable data indicates that there is a
measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults. Trade receivables and debt instruments are reviewed qualitatively on a case-by-
case basis to determine whether they need to be written off.
Expected credit losses are measured as the difference in the present value of the contractual cash flows that
are due to the Company under the contract, and the cash flows that the Company expects to receive. The
Company assesses all information available, including past due status, credit ratings, the existence of third-
party insurance, and forward-looking macro-economic factors in the measurement of the expected credit
losses associated with its financial assets carried at amortized cost. The Company measures expected credit
loss by considering the risk of default over the contract period and incorporates forward-looking information
into its measurement.
Derivative Financial Instruments
Superior enters into a variety of derivative and non-financial derivative instruments to manage its exposure
to certain financial risks. Such instruments arise from contracts comprising natural gas financial swaps,
electricity financial swaps, fixed-price electricity purchases, propane forward purchases and sales, foreign
currency forwards, interest rate swaps, and equity hedges. For commodity contracts, if physical delivery
is effected based on Superior’s expected procurement, sale or usage requirements, the requirements
of the so-called “own use exemption” under IFRS 9 are met, which do not represent derivative financial
instruments in terms of IFRS 9, but represent pending purchase and sale transactions, which are assessed
for possible impending losses in accordance with the requirements of IAS 37, Provisions, Contingent
Liabilities and Contingent Assets. If the requirements for the own use exemption are not met (for example,
by transactions for short-term optimization), the contracts are recorded as derivatives in accordance with
IFRS 9. Further details of derivative and non-financial derivative instruments are disclosed in Note 16.
Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are
measured subsequently at FVTPL. The resulting gain or loss is recognized in net earnings. Realized gains
and losses on derivatives are recorded as part of the gains (losses) on derivatives and foreign currency
translation of borrowings, which also includes unrealized gains and losses on derivatives. Derivatives
embedded in other financial liabilities and non-financial contracts are treated as separate derivatives when
their risks and characteristics are not closely related to those of the host contracts and the host contracts
are not measured at fair value with changes in fair value recognized in net earnings.
Superior’s policy is not to use financial derivative or non-financial derivative instruments for speculative
purposes. With the exception of the fair value of Superior’s share-based compensation program, Superior
does not formally designate these derivatives as hedges and, as a result, Superior does not apply hedge
accounting and is required to designate its financial derivatives and non-financial derivatives as held for
trading. Effective January 1, 2024, Superior began using hedge accounting to reduce the volatility in earnings
(loss) related to the fair value of the share-based compensation programs and the related equity derivatives.
Classification as Debt or Equity
Debt and equity instruments are classified either as financial liabilities or as equity in accordance with the
substance of the contractual arrangement.
Equity Instruments
An equity instrument is any contract that has a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by Superior or its subsidiaries are recorded at the proceeds
received, net of direct issuance costs.
Derecognition of Financial Liabilities
Superior derecognizes financial liabilities solely when Superior’s obligations are discharged, cancelled
or expire.
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Annual Report 2024
Superior Plus
Property, Plant and Equipment
Cost
Property, plant and equipment are recorded at cost less accumulated depreciation and impairment losses.
Major renewals and improvements that provide future economic benefits and can be reliably measured
are capitalized, while repair and maintenance expenses are expensed as incurred. Property, plant and
equipment in the course of construction are carried at cost less any recognized impairment losses. Cost
includes directly attributable expenses and professional fees. Disposals are derecognized at carrying
costs less accumulated depreciation and impairment losses, with any resulting gain or loss reflected in
net earnings.
Depreciation
Depreciation is calculated using the straight-line method, based on the estimated useful life. Land is not
depreciated. Depreciation of property, plant and equipment and those in the course of construction
commences when the assets are available for their intended use. In the majority of cases, residual value is
estimated to be insignificant. Depreciation by class of assets is as follows:
Buildings and facilities
15 to 40 years
Leasehold improvements
Over the lease term up to 10 years
Tanks and cylinders
30 years
Trucks, railcar, tank bodies, chassis, field and other equipment
4 to 15 years
Compression equipment
3 to 15 years
Mobile storage units (“MSU”)
15 years
MSU recertifications
5 years
Furniture and fixtures
1 to 10 years
Computer equipment
2 to 5 years
Useful life, residual values and depreciation methods are reviewed at the end of each annual reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on
whether the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Company as a Lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognizes a right-of-use asset and a lease liability at
the lease commencement date, which is defined as the date at which the right-of-use asset is available for
use by the Company.
Right-of-use Assets
The right-of-use asset is initially measured at cost comprising the following:
• The initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date;
• Any initial direct costs incurred;
• An estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or
the site on which it is located; and
• Less any lease incentives received.
The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease
term using the straight-line method as this most closely reflects the expected pattern of consumption of the
future economic benefits.
Notes to the Consolidated Financial Statements
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Annual Report 2024
Superior Plus
The lease term includes periods covered by an option to extend if the Company is reasonably certain to
exercise that option as defined below.
Lease terms range from:
Office space and buildings
1 to 99 years
Railcars and leased trucks
1 to 11 years
Storage and equipment
1 to 11 years
The Company’s leases relate to office space and buildings, railcars, trucks, storage and equipment. Lease
contracts are typically made for periods stated above, but may have extension options. Extension and
termination options are included in a number of building and equipment leases across the Company. The
majority of extension and termination options held are exercisable only by the Company and not by the
respective lessor. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. Superior’s obligations under some leases are secured by the lessors’ title to the
leased assets.
The Company has recorded the right-of-use assets as part of property, plant and equipment.
The right-of-use assets are periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
Lease Liabilities
The lease liability is initially measured at the present value of the following lease payments:
• Fixed payments, less any lease incentives receivable;
• Variable lease payments that are based on an index or a rate;
• Amounts expected to be payable by the lessee under residual value guarantees;
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
that option.
The lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Company’s incremental borrowing rate (“IBR”). The IBR is the rate of interest the
lessee would have to pay to borrow over a similar term with similar security.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. It is remeasured when there is a change in future
lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate
of the amount expected to be payable under a residual value guarantee, or if the Company changes its
assessment of whether it will exercise a purchase, extension or termination option. When the lease liability
is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced
to zero.
When measuring lease liabilities, the Company discounted lease payments using its IBR for similar collateral
and term at the lease commencement date when the interest rate implicit in the lease was not readily
determinable. The Company applied a single discount rate to a portfolio of leases with reasonably similar
characteristics. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a
change in the rate used to determine such lease payments) or a change in the assessment of an option to
purchase the underlying asset.
Short-term Leases and Leases of Low-value Assets
The Company applies the short-term lease recognition exemption to its leases for which the lease term
ends within 12 months from the commencement date and do not contain a purchase option, and the lease
of low-value assets recognition exemption to leases of office equipment that are considered to be low
value. Lease payments on short-term leases and leases of low-value assets are recognized as expenses on
a straight-line basis over the lease term.
Sale-leasebacks and Refinancing of Vehicles
From time to time, Superior will purchase vehicles and then enter into a financing arrangement or will
refinance leases for vehicles. These transactions will result in cash proceeds to Superior and a lease liability
to the lessor. Any gains or losses on these transactions are nominal and expensed as incurred.
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Superior Plus
Intangible Assets
Intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.
For intangible assets with a definite life, amortization is charged on a straight-line basis over their estimated
useful lives.
Intangible assets acquired in a business combination are identified and recognized separately from goodwill
when they satisfy the recognition criteria. The initial cost of such intangible assets is their fair value at the
acquisition date. Subsequent to initial recognition, intangible assets acquired in a business combination are
reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets acquired separately. Software costs are capitalized for new systems if there are significant
enhancements to existing systems. In addition to the cost of software, the capitalized costs include cost of
installation and consulting services related to the system implementation or enhancement.
Intangible assets recorded as part of a business combination generally consist of customer relationships,
non-compete agreements, royalty agreements, intellectual property and other intangible assets. The assets
are recorded at fair value, which is generally based on the future expected earnings. Software, developed
technology and technology patents are valued based on the cost to acquire these assets.
Useful life, residual values and amortization methods are reviewed at least annually, with the effect of any
changes in estimate being accounted for on a prospective basis.
Superior’s amortization rates related to its intangible assets are summarized as follows:
Non-compete agreements
Term of the agreements (1 to 15 years)
Customer relationships
5 to 12 years
Brands, trademark and trade names
4 to 15 years
Software and developed technology
1 to 5 years
As a result of propane distribution activity in Quebec, California and Washington, Superior is required to
purchase sufficient cap and trade emission units to offset its carbon footprint. Costs incurred to acquire
these cap and trade emission units are recorded as intangible assets and measured at cost. As the cap and
trade emission units do not diminish over time, they are classified as intangible assets with an indefinite life
and are not amortized. The assets are subject to annual impairment testing. The assets are settled against
the corresponding cap and trade liabilities at the end of the compliance period to which they relate.
Impairment of Property, Plant and Equipment, Right-of-use Assets and Intangible
Assets
At each consolidated balance sheet date and when circumstances indicate that the carrying value may be
impaired, Superior reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If impairment is confirmed, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if
any. Where it is not possible to estimate the recoverable amount of an individual asset, Superior estimates
the recoverable amount of the cash-generating unit (“CGU”) to which the asset belongs. A CGU is the
smallest level of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups.
Recoverable amount is the higher of fair value less costs of disposal and value-in-use.
An impairment loss is recognized if the carrying amount of an asset, CGU or group of CGUs exceeds
its recoverable amount. Impairment losses are recognized immediately as a separate line item in the
consolidated statements of net (loss) earnings and total comprehensive earnings.
A previous impairment, if any, is subsequently assessed for any indication that the impairment has been
reduced or no longer exists. An impairment loss is reversed if there has been an increase in the recoverable
amount of an asset or CGU over its carrying value. Impairment losses are reversed only to the extent that
the asset’s or CGU’s carrying amount would not exceed the carrying amount that would have been reported if
no impairment loss had been recognized.
Notes to the Consolidated Financial Statements
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Business Combinations and Goodwill
All business combinations are accounted for using the acquisition method. The consideration transferred in
a business combination is measured at fair value at the acquisition date of the assets given up, the liabilities
incurred or assumed and equity instruments issued by Superior in exchange for control of the acquiree.
Transaction costs, other than those associated with the issuance of debt or equity securities that Superior
incurs in connection with a business combination, are expensed as incurred. The acquiree’s identifiable
assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3, Business
Combinations are recognized at their fair value at the acquisition date, except that:
• Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are
recognized and measured in accordance with IAS 12, Income Taxes (“IAS 12”) and IAS 19, Employee
Benefits, respectively;
• Liabilities or equity instruments related to the replacement by Superior of an acquiree’s share-based
payment awards are measured in accordance with IFRS 2, Share-based Payment;
• Right-of-use assets and lease liabilities for leases identified are measured in accordance with IFRS 16,
Leases, in which the acquiree is the lessee; and
• Assets or disposals that are classified as held for sale in accordance with IFRS 5, Non-current Assets Held
for Sale and Discontinued Operations are measured in accordance with that standard.
Contingent liabilities acquired in a business combination are initially measured at fair value at the date of
acquisition. At subsequent reporting dates, such contingent liabilities are measured at the higher of the
amount that would be recognized in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent
Assets or the amount initially recognized less (when appropriate) cumulative amortization recognized in
accordance with the requirements for IFRS 15, Revenue from Contracts with Customers.
Intangible assets arising on acquisition are recognized at fair value at the date of acquisition. The fair
value is based on detailed cash flow models and other metrics depending on the type of intangible asset
being recognized.
Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess
of the cost of the business combination over Superior’s interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities recognized. If the net amounts assigned to the assets acquired
and liabilities assumed exceed the cost of the purchase, then Superior is required to reassess the value
of both the cost and net assets acquired, and any excess remaining after this reassessment is recognized
immediately in net earnings. Goodwill is initially recognized as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, Superior will report provisional amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets
or liabilities are recognized, to reflect new information obtained about facts and circumstances at the
acquisition date that, if known, would have affected the amounts recognized at that date.
The measurement period is the period from the date of acquisition to the date Superior obtains complete
information about facts and circumstances as of the acquisition date, to a maximum of one year.
On disposal of a group of assets, the attributable amount of goodwill is included in the determination of the
net gain or loss on disposal.
Revenue Recognition
Revenue is measured based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The Company recognizes revenue when it transfers control
over a product or service to a customer, which may occur at a point in time or over a period of time.
The nature of the goods and services and the timing of satisfaction of performance obligations are
as follows:
Sales contracts include supply of propane, CNG, RNG and hydrogen along with the loaning of storage tanks,
equipment and related servicing and maintenance activities provided by the Company. Revenue from sale
of propane, CNG, RNG and hydrogen, including take-or-pay arrangements, is recognized when control of
the goods has transferred, generally when the goods are delivered to the customer (which occurs when
the goods have been shipped to the specific location), the customer has full discretion over the goods,
and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Payment
terms are generally between 30 and 90 days as agreed with the customers. Customers may be required to
provide a deposit depending on credit quality. These deposits are recorded as part of contract liabilities and
recognized into income over the period that it relates to.
Revenue from loaning of storage tanks and maintenance activities is recognized as the performance
obligations are satisfied over time, which is generally in accordance with the terms of the contract. The
customer does not control the storage tank during the term of the contract. The customer does not have
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the right to direct the use of the storage tank, and there is no practical or contractual restriction on the
Company’s ability to transfer the storage tank to another customer. The Company is able to redirect the
storage tank to another customer at little or no additional cost and, therefore, it has an alternative use to
the Company. In many cases, propane sales and the loaning of storage tanks are included under one sales
contract. Propane sales prices are consistent based on the customer geography and type and, therefore,
the residual amount is related to loaning of storage tanks. Rental payments received for periods greater than
a month are recorded as part of contract liabilities and recognized into income over the period that the
payments relate to. Included in the U.S. Propane Distribution segment is revenue related to the distribution
of heating oil and refined fuels in the northeastern U.S. Its products are generally used in home heating,
water heating and as motor vehicle fuel. Revenue from the sale of refined fuels is also recognized when
control of the goods has transferred, generally when the goods are delivered to the customer (which occurs
when the goods have been shipped to the specific location), the customer has full discretion over the goods,
and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Payment
terms are generally 30 days from the delivery date. Customers may be required to provide a deposit
depending on credit quality. These deposits are recorded as part of contract liabilities and applied against
customer receivables when required.
Provisions
Provisions are recognized when there is a present legal or constructive obligation as a result of past events,
for which it is probable that payment will be required to settle the obligation, and where the amount can be
reliably estimated.
The amount is the best estimate of the consideration required to settle the present obligation at the
reporting date, considering the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows.
When some or all of the economic benefit required to settle a provision is expected to be recovered from
a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be
received and the receivable can be measured reliably.
Decommissioning Costs
Liabilities for decommissioning costs are recognized when Superior has an obligation to dismantle and
remove a facility or an item of plant and to restore the site on which it is located, and when a reliable
estimate of that liability can be made. Decommissioning costs are recorded at the present value of
expected costs to settle the obligation using estimated cash flows. The cash flows are discounted at a current
pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount
is expensed as incurred and recognized in net earnings as a finance expense. The estimated future costs
of decommissioning are reviewed annually and adjusted as appropriate. A corresponding item of property,
plant and equipment of an amount equal to the provision is also created. This is subsequently amortized
as part of the asset. Changes in the estimated future costs or in the discount rate applied are added to or
deducted from the cost of the asset.
Environmental Expenditures and Liabilities
Environmental expenditures that relate to current or future revenues are expensed or capitalized as
appropriate. Expenditures that relate to an existing condition caused by past operations and do not
contribute to current or future earnings are expensed.
Liabilities for environmental costs are recognized when a cleanup is probable and the associated costs
can be reliably estimated. Generally, the timing of recognition of these provisions coincides with the
commitment to a formal plan of action or, if earlier, on divestment or on closure of inactive sites. The
amount recognized is the best estimate of the expenditure required. When the liability will not be settled for
a number of years, the amount recognized is the present value of the estimated future expenditure.
Restructuring
A restructuring provision is recognized when Superior has developed a detailed formal restructuring plan
and has raised a valid expectation to those affected that it will carry out the restructuring by starting to
implement the plan or announcing its main features to those affected. The measurement of a restructuring
provision includes only the direct expenditures arising from the restructuring.
Employee Future Benefits
Superior has defined-benefit and defined-contribution plans providing pension and other post-employment
benefits to most of its employees. Superior accrues its obligations under the plans and the related costs,
net of plan assets.
Notes to the Consolidated Financial Statements
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Contributions to defined-contribution plans are recognized as an expense when employees have rendered
service entitling them to the contributions.
For defined-benefit plans, the cost of providing benefits is determined using the projected unit credit
method, with actuarial valuations being carried out at each consolidated balance sheet date. The net
obligation for each defined-benefit plan is discounted to determine the present value using the yield at the
reporting date on high-quality Canadian corporate bonds. Plan assets are measured at fair value, and the
difference between the fair value of the plan assets and the present value of the defined-benefit obligation
is recognized on the consolidated balance sheets as an asset or liability. Costs charged to the consolidated
statements of net (loss) earnings and total comprehensive earnings include current service cost, any past
service costs, any gains or losses from curtailments and interest on the net defined-benefit asset or liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognized in other comprehensive earnings in the period in which they occur.
The defined-benefit obligation recognized in the consolidated balance sheets represents the present
value adjusted for unrecognized actuarial gains and losses and unrecognized past service cost, and
reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognized
actuarial losses and past service cost, plus the present value of available refunds and reductions in future
contributions to the plan.
Income Taxes
Income tax expense represents the sum of current income taxes and deferred income taxes.
Current Income Taxes
Superior’s income tax assets and liabilities are based on taxable net earnings for the year. Taxable net
earnings differ from net earnings as reported in the consolidated statements of net (loss) earnings and total
comprehensive earnings because they exclude items of income or expense that are taxable or deductible in
other years as well as items that are never taxable or deductible. Superior’s liability for current income tax
is calculated using tax rates that have been enacted or substantively enacted by the consolidated balance
sheet date.
Current income tax relating to items recognized directly in equity is recognized in equity and not in the
consolidated statements of net (loss) earnings and total comprehensive earnings. Management periodically
evaluates positions taken in their tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Deferred Income Taxes
Deferred income tax is recognized on differences between the carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax basis used in the computation of
taxable net earnings. Deferred tax assets are generally recognized for all deductible temporary differences
to the extent that it is probable that taxable net earnings will be available against which those deductible
temporary differences can be utilized. Deferred tax liabilities are recognized for all taxable temporary
differences, except for the following:
• When the deferred tax liability arises from the initial recognition of goodwill;
• When an asset or liability in a transaction is not a business combination and, at the time of the
transaction, affects neither the accounting net earnings or taxable net earnings; or
• In respect of taxable temporary differences associated with investments in subsidiaries and associates
and interests in joint ventures, where the timing of the reversal of the temporary differences can
be controlled by Superior and it is unlikely that the temporary differences will be reversed in the
foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments and
interests are only recognized to the extent that they are expected to be reversed in the foreseeable future
and it is probable that there will be sufficient taxable net earnings against which to utilize the benefits of the
temporary differences. A deferred tax asset may also be recognized for the benefit expected from unused
tax losses available for carryforward, to the extent that it is probable that future taxable earnings will be
available against which the tax losses can be applied.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized, based on tax rates and laws that have been enacted or
substantively enacted by the consolidated balance sheet date. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which Superior expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current liabilities and when they are related to income taxes levied by the same taxation
authority and Superior intends to settle its current tax assets and liabilities on a net basis. Also, Superior
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recognizes any benefit associated with investment tax credits as deferred tax assets to the extent they are
expected to be utilized in accordance with IAS 12.
Uncertain Tax Positions
Superior is subject to taxation in numerous jurisdictions. There are many transactions and calculations
during the course of business for which the ultimate tax determination is uncertain. It is possible,
however, that at some future date, liabilities in excess of Superior’s provisions could result from audits
by or litigation with tax authorities. Where changes in facts or circumstances change estimates from the
amounts that were initially recorded, such differences will affect the tax provisions in the period in which
such determination is made. Management reassesses positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Current Tax and Deferred Tax for the Period
Current tax and deferred tax are recognized as an expense in net earnings, except where they relate to
amounts recognized outside of net earnings (whether in other comprehensive earnings or directly in equity),
in which case the current tax and deferred tax are also recognized outside of net earnings, or where they
arise from the initial accounting for a business combination. In the case of a business combination, the tax
effect is included in the accounting for the business combination.
Foreign Currencies
The financial statements of each subsidiary of Superior are translated into the currency of the subsidiary’s
primary economic environment. For the purpose of the consolidated financial statements, the results and
balance sheets of each subsidiary are expressed in United States dollars, Superior’s presentation currency.
Transactions are recognized at the rates of exchange prevailing at the transaction date.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at the period-end. Non-monetary items that are measured at fair value in a foreign
currency shall be translated using the exchange rates at the date when the fair value is measured. Non-
monetary items that are measured in terms of historical cost in a foreign currency shall be translated using
the exchange rate at the date of the transaction and are not retranslated.
For the purposes of presenting Superior’s consolidated financial statements, the assets and liabilities of
Superior’s Canadian operations, namely of Canadian Propane, Wholesale Propane in Canada. and CNG in
Canada, are translated using exchange rates prevailing at the end of each reporting period. Income and
expense items are translated at the average exchange rates for the period.
Goodwill and fair value measurements of identifiable assets acquired and liabilities assumed through
acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated
at the rate of exchange prevailing at the end of each reporting period. Exchange differences are recognized
in other comprehensive earnings for the period.
Share-based Payments
Superior has established share-based compensation plans whereby notional restricted shares and/
or notional performance shares may be granted to employees. The fair value of these notional shares
is estimated using the period-end quoted market price and recorded as an expense with an offsetting
amount to accrued liabilities, remeasured at each consolidated balance sheet date. All share-based payments
are cash-settled.
(c) Significant Accounting Judgments, Estimates and Assumptions
The preparation of Superior’s audited consolidated financial statements in accordance with IFRS requires
management to make judgments, estimates and assumptions that affect the reported amounts of assets,
liabilities, revenue, expenses and related disclosures. The estimates and associated assumptions are based
on historical experience and various other factors deemed reasonable under the circumstances, the results
of which form the basis of making the judgments about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates. The areas involving a
higher degree of judgment or complexity, or where assumptions and estimates are required, are as follows:
Estimates and Assumptions
Fair Value of Derivative and Non-financial Derivative Instruments
Where the fair values of financial derivatives and non-financial derivatives cannot be derived from active
markets, they are determined using valuation techniques including a discounted cash flow model. This
requires assumptions concerning the amount and timing of estimated future cash flows and discount
Notes to the Consolidated Financial Statements
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rates. Differences between actual values and assumed values will affect net earnings in the period when the
difference is determined.
Allowance for Doubtful Accounts
Superior recognizes an allowance for doubtful accounts based on historical customer collection history,
general economic indicators and other customer-specific information, all of which require Superior to make
certain assumptions. Where the actual collectability of accounts receivable differs from these estimates,
such differences will have an impact on net earnings in the period such a determination is made.
Property, Plant and Equipment and Intangible Assets
Capitalized assets, including property, plant and equipment and intangible assets, are amortized over
their respective estimated useful lives. All estimates of useful lives are set out in the Significant Accounting
Policies above.
Provisions
Provisions have been estimated for decommissioning costs, restructuring and environmental expenditures.
The actual costs and timing of future cash flows depend on future events. Any differences between
estimates and the actual future liability will be accounted for in the period when such determination is
made. Determining decommissioning liabilities requires estimates regarding the useful life of certain
operating facilities, the timing and cost of future remediation activities, discount rates and the interpretation
and changes to various environmental laws and regulations. Differences between estimates and results will
affect Superior’s accrual for decommissioning liabilities, with an effect on net earnings.
Employee Future Benefits
Superior has a number of defined-benefit pension plans and other benefit plans. The cost of defined-
benefit pension plans and the present value of the pension obligation are determined using actuarial
valuations. These require assumptions including the determination of the discount rate, future salary
increases, mortality rates and future pension increases. Due to the valuation’s complexity, its underlying
assumptions and long-term nature, a defined-benefit obligation is highly sensitive to changes in the
underlying assumptions.
Income Tax Assets and Liabilities
Superior recognizes expected tax assets and liabilities based on estimates of current and future taxable net
earnings, which may require significant judgment regarding the ultimate tax determination of certain items.
If taxable net earnings differ from the estimates, there may be an impact on current and future income tax
provisions in the period when the difference is determined.
Asset Impairments
Non-financial assets are subject to impairment reviews based on whether current or future events and
circumstances suggest that their recoverable amount may be less than their carrying value. Recoverable
amounts are based on a calculation of expected future cash flows, which includes management
assumptions and estimates of future performance.
Cap and Trade
Superior purchases cap and trade emission units to satisfy its obligations under the Quebec, California
and Washington cap and trade programs; see Note 12. Liabilities under these programs are first recorded
based on the cap and trade emission units purchased for the respective compliance periods, and any
additional liabilities are based on the future estimated cost to purchase the underlying cap and trade
emission units until those units are acquired. The cap and trade emission units purchased are recorded as
intangible assets until they are settled against the corresponding cap and trade payable at the end of each
compliance period to which they relate. As at December 31, 2024, Superior has a net liability of $4.6 million
(2023 – $3.0 million net liability).
Estimating the IBR on Leases
Superior cannot readily determine the interest rate implicit in some of its leases; therefore, Superior uses
its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to
borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar
value to the right-of-use asset in a similar economic environment. The IBR, therefore, reflects what the
Company “would have to pay”, which requires estimation when no observable rates are available (such as
for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect
the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional
currency). Superior estimates the IBR using observable inputs (such as market interest rates) when available
and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
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Judgments
Impairment of Property, Plant and Equipment and Intangible Assets
An impairment evaluation involves consideration of whether there are indicators of impairment. Indicators
include, but are not limited to, significant underperformance relative to historical or projected operating
results, significant changes in the manner in which an asset is used or in Superior’s overall business
strategy, or significant negative industry or economic trends. In some cases, these events are clear. In
many cases, however, there is no clearly identifiable event. Instead, a series of individually insignificant
events, some of them only later known, leads to an indication that an asset may be impaired. Management
continually monitors Superior’s segments, the markets, and the business environment, and makes
judgments and assessments about conditions and events in order to conclude whether there may be
an impairment.
Income Taxes
Preparation of the consolidated financial statements involves making an estimate of, or provision for,
income taxes in each of the jurisdictions in which Superior operates. The process also involves estimating
taxes currently payable and taxes expected to be payable or recoverable in future periods, referred to
as deferred income taxes. Deferred income taxes result from the effects of temporary differences due to
items that are treated differently for tax and accounting purposes. The tax effects of these differences are
reflected in the consolidated balance sheets as deferred income tax assets and liabilities. An assessment
must also be made to determine the likelihood that Superior’s future taxable income will be sufficient
to permit the recovery of deferred income tax assets. To the extent that such recovery is not probable,
recognized deferred income tax assets must be reduced. Judgment is required in determining the income
tax expense (recovery) and recognition of deferred income tax assets and liabilities.
Management must also exercise judgment in its assessment of continually changing tax interpretations,
regulations and legislation, to ensure deferred income tax assets and liabilities are complete and fairly
presented. The effects of differing assessments and applications could be material.
Purchase Price Allocation
All business combinations are accounted for using the acquisition method. This requires management to
recognize all identifiable assets, liabilities and contingent liabilities at the acquisition date fair values with
a few exceptions. The allocation of the purchase price to property, plant and equipment and intangible
assets requires management to exercise judgment when determining the acquisition fair value of each
asset and its respective useful life. Consideration paid in a business combination that exceeds the net fair
value of assets and liabilities acquired is allocated to goodwill. Goodwill is reviewed for impairment at least
annually. As disclosed in Note 3, a number of acquisitions were completed during the prior year. Changes
in the purchase price allocation could occur during the 12-month period following acquisition. Changes to
the fair value of the assets and liabilities acquired could affect the purchase price allocation and segment’s
net income.
Financial Instruments
The fair value of financial instruments is determined and classified in three categories, which are outlined
below and discussed in more detail in Note 16.
Level I
Fair values in Level I are determined using quoted prices in active markets for identical instruments.
Level II
Fair values in Level II are determined using quoted prices for similar instruments in active markets; quoted
prices for identical or similar instruments in markets that are not active; and model-derived valuations in
which all significant inputs and value drivers are observable in active markets.
Level III
Fair values in Level III are determined using valuations derived from valuation techniques in which one or
more significant inputs or significant value drivers are unobservable.
The fair value measurement of a financial instrument is included in only one of the three levels, the
determination of which is based on the lowest-level input that is significant to the derivation of the fair
value. Classification of financial instruments requires management to use judgment in respect of both the
determination of fair value and the lowest-level input of significance.
Revenue from Sale of Propane, Including Storage Tanks
Certain propane supply contracts entered into by the Company include sale of propane along with the
loaning of storage tanks and equipment by the Company. Because these contracts include multiple
performance obligations, the transaction price must be allocated to the performance obligations.
Notes to the Consolidated Financial Statements
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Management estimates the standalone selling price using the residual approach. The price of propane
charged is consistent by geography and customer type, whereas fees and discounts associated with loaning
storage tanks can vary. Management allocates revenue to the sale of propane based on the consistent
price by customer geography and region, and the residual amount is applied to loaning the storage tank.
Revenue from the sale of propane is recognized when delivered and revenue from storage tanks and
equipment is recognized over the contract period.
Determining the Lease Term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option or not to exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to be
extended or not terminated. The initial assessment is reviewed if a significant event or a significant change
in circumstances occurs that affects this assessment and that it is within the control of the lessee.
(d) Changes in Accounting Policies and Disclosures
Amendments to IAS 1, Presentation of Financial Statements (“IAS 1”)
Adopted January 1, 2024 this amendment to IAS 1 clarifies the requirements for classifying liabilities as
current or non-current and introduces additional disclosures of material information that enables users of
financial statements to comprehend the risk that non-current liabilities with covenants may become payable
within the next twelve months. The amendment has been applied retrospectively and had no material
impact on the consolidated financial statements.
Amendment to IFRS 16, Leases (“IFRS 16”)
Adopted January 1, 2024, this amendment to IFRS 16 specifies the requirements that a seller-lessee uses
in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does
not recognize any amount of the gain or loss that relates to the right of use it retains. This amendment has
been applied retrospectively and had no material impact on the consolidated financial statements.
Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures
Adopted January 1, 2024 these amendments were issued in 2023 to clarify the characteristics of supplier
finance arrangements and require certain disclosures on these arrangements, intended to assist users
of financial statements in understanding their impacts on the companies’ liabilities and cash flows. This
amendment has been applied retrospectively and had no material impact on the consolidated financial
statements.
Amendment to IAS 12, International Tax Reform – Pillar Two Model Rules
Adopted January 1, 2024, this amendment to IAS 12 that includes temporary mandatory relief from
recognizing and disclosing deferred taxes related to Pillar Two income taxes. The Company adopted the
amendments to IAS 12 and applied the exception to recognizing and disclosing information about deferred
tax assets and liabilities related to Pillar Two income taxes. The global minimum tax rules are effective for
the current fiscal year and arise in or in relation to jurisdictions where the operations of the Company have
an effective tax rate below 15%.
(e) Standards Issued But Not Yet Effective
The standards issued but not yet effective are consistent with those disclosed in the annual consolidated
financial statements as at and for the year ended December 31, 2023, except for the following:
Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates
In August 2023, the IASB issued amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates.
The amendments address the lack of exchangeability of illiquid currencies and specify how an entity
determines the exchange rate when a currency is not readily exchangeable at the measurement date as
well as additional required disclosures. When a currency is not exchangeable, an entity estimates the spot
rate as the rate that would have been applied to an orderly transaction between market participants at
the measurement date and that would reflect the prevailing economic conditions. An entity must disclose
information that would enable users to evaluate how a currency’s lack of exchangeability affects financial
performance, financial positions, and cash flows of an entity. The amendments to IAS 21 are effective
January 1, 2025, with early adoption permitted. Superior does expect this to have an impact on the
consolidated financial statements.
IFRS 18, Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued a new IFRS 18, Presentation and Disclosure in Financial Statements (“IFRS 18”)
replacing IAS 1. The new guidance is expected to improve the usefulness of information presented and
disclosed in the financial statements of companies. IFRS 18 introduces the following key changes:
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• IFRS 18 introduces a defined structure for the statement of income composed of operating, investing,
financing categories with defined subtotals, such as operating earnings, earnings before financing and
income taxes and net earnings for the year. The new guidance also requires disclosure of expenses in
the operating category by nature, function or a mix of both on the face of the statement of income.
• Disclosures on management defined performance measures (MPMs) – IFRS 18 requires companies to
disclose definitions of company-specific MPMs that are related to the statement of income and provide
reconciliations between the MPMs and the most similar specified subtotals within the statement of
income in a single note.
• Aggregation and disaggregation (impacting all primary financial statements and notes) – IFRS 18
sets out enhanced guidance on the principles of how items should be aggregated based on shared
characteristics. The changes are expected to provide more detailed and useful information to investors.
IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with early adoption
permitted. Superior is currently assessing the impact of this new IFRS accounting standard on its
consolidated financial statements.
Amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures
In May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to clarify the date of recognition and
derecognition of some financial assets and liabilities, with a new exception for some financial liabilities
settled using an electronic payment system. The amendments also clarify the requirements for assessing
whether a financial asset meets the solely payments of principal and interest criterion and adds disclosure
requirements for financial instruments with certain contingent features and for equity investments
designated at fair value through other comprehensive income. The amendments are effective January 1,
2026, with early adoption permitted. The amendments are required to be adopted retrospectively by
adjusting the opening balance of financial assets, financial liabilities and retained earnings at the date
of adoption. The Company is assessing the impact of the amendments on the Company’s consolidated
financial statements.
3 . A C Q U I S I T I O N S A N D D I V E S T I T U R E S
The following acquisitions were completed in 2023.
Certarus
Others
Cash
14.7
–
Trade and other receivables
84.9
0.1
Prepaids and other assets
6.3
–
Property, plant and equipment
444.6
2.3
Intangible assets
130.3
1.2
Trade and other payables and contract liabilities
(55.3)
(0.1)
Short-term debt and lease liabilities(1)
(160.4)
–
Long-term debt and lease liabilities
(17.1)
(0.2)
Other liabilities
(0.4)
–
Deferred tax liabilities
(60.7)
(0.5)
Net identifiable assets
386.9
2.8
Consideration transferred
Fair value of deferred consideration
–
0.9
Fair value of common shares issued
359.0
–
Cash paid on acquisition
260.2
4.9
Total consideration transferred
619.2
5.8
Goodwill arising on acquisition
232.3
3.0
(1) Included in this balance is the assumed interest-bearing debt from Certarus of $157.8 million that was fully settled by Superior
immediately after the closing of the acquisition of Certarus.
If the 2023 acquisitions had occurred on January 1, 2023, revenue and net earnings from continuing
operations for the year ended December 31, 2023 would have increased by $183.0 million and
$32.3 million, respectively.
Notes to the Consolidated Financial Statements
60
Annual Report 2024
Superior Plus
Certarus
On May 31, 2023, Superior acquired all the outstanding common shares of Certarus for $260.2 million
(C$353.2 million) in cash and 48.6 million common shares of Superior for total consideration of
approximately $619.2 million (C$840.5 million). In addition to the consideration paid, Superior assumed
approximately $157.8 million (C$214.2 million) in interest-bearing debt, giving the acquisition an enterprise
value of approximately $777.0 million (C$1,054.7 million). The recognized goodwill of $232.3 million
(C$315.3 million) represents the ability of Superior to earn a higher rate of return on an assembled
collection of net assets and employees than would be expected if Certarus net assets had to be acquired
separately, including the intangible assets that do not qualify for separate recognition. Goodwill recognized
is not deductible for income tax purposes and forms part of the Certarus segment.
Acquisition costs directly attributable to the Certarus acquisition of $12.0 million (C$16.2 million) (2022 –
$3.1 million (C$4.0 million)) were expensed and are included in SD&A.
Subsequent to the acquisition date, the acquisition contributed revenue of $230.3 million (C$310.4 million)
for the year ended December 31, 2023 and net earnings before income tax of $24.3 million (C$33.3 million)
for the year ended December 31, 2023.
As part of the regulatory process, Superior entered into a consent agreement to retain all of Certarus’
assets while agreeing to divest eight Canadian retail propane distribution locations and related assets in
Northern Ontario. In 2022, the combined volume at these locations was approximately 90 million litres of
propane, or 2% of Superior’s total propane distribution volumes.
Other Acquisitions
During 2023, Superior acquired certain assets of residential and commercial retail propane distributors in
Lincoln and Lake Isabella, California, for an aggregate purchase price of $5.1 million. The purchase price
allocations are final as at December 31, 2023. The total goodwill comprises the value of expected synergies
arising from the acquisitions and the assembled workforce, which is not separately recognized. The goodwill
recognized for Lincoln, California, is not deductible for income tax purposes, while the goodwill recognized
for Lake Isabella, California, is deductible for tax purposes.
Subsequent to the acquisition date, the acquisition contributed revenue of $3.3 million and net earnings
before income tax of $0.4 million for the year ended December 31, 2023 to the U.S. Propane segment.
Divestitures
During the year, Superior divested certain non-strategic assets in Minnesota for estimated net proceeds
of $11.2 million. The net assets sold consisted of a working capital deficit of $0.7 million, intangible assets
and goodwill of $7.2 million and property, plant and equipment of $2.9 million resulting in a gain of
approximately $1.9 million. This gain was recorded in the US Propane segment.
As a result of the regulatory process discussed under the Certarus acquisition, on November 14, 2023,
Superior divested its eight retail propane distribution locations and related assets in Northern Ontario. In
addition, on October 25, 2023, Superior divested certain non-propane assets in the Northeastern U.S. The
net proceeds related to the Canadian Propane and U.S. divestitures were $27.3 million and $17.3 million,
respectively. The goodwill balance allocated to the divestitures is net of a write-down of $6.6 million related
to the Canadian divestiture, which was recorded as part of the loss on disposal of assets and impairment.
4 . T R A D E A N D O T H E R R E C E I V A B L E S
A summary of trade and other receivables is as follows:
2024
2023
2022
Trade receivables, net of allowances
316.2
304.7
277.0
Vendor Note(1)
–
–
94.4
Accounts receivable – other(2)
14.6
17.9
21.0
Trade and other receivables
330.8
322.6
392.4
(1) As part of divesting an operating segment in a prior period Superior received as part of the consideration C$125 million in the form
of a 6% unsecured Vendor Note.
(2) This balance consists of accounts receivable related to indirect taxes, final settlements related to acquisitions and other
miscellaneous balances.
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Annual Report 2024
Superior Plus
Pursuant to their respective terms, trade receivables, before the deduction of the allowance for doubtful
accounts, are aged as follows:
2024
2023
2022
Current
212.8
198.0
199.4
Past due less than 90 days
92.4
97.1
71.3
Past due over 90 days
21.2
22.9
18.4
Trade receivables
326.4
318.0
289.1
Superior’s trade receivables are stated after deducting the below allowance for doubtful accounts:
2024
2023
2022
Allowance for doubtful accounts, beginning of the year
(13.3)
(12.1)
(10.2)
Impairment losses recognized on receivables
(4.2)
(6.9)
(7.2)
Amounts written off during the period as uncollectible
6.3
4.8
4.8
Amounts recovered
1.0
0.9
0.5
Allowance for doubtful accounts, end of the year
(10.2)
(13.3)
(12.1)
5 . P R E P A I D S A N D D E P O S I T S
A summary of prepaids and deposits is as follows:
2024
2023
2022
Prepaid insurance
13.2
14.5
13.4
Tax instalments
13.1
3.1
6.6
Deposits(1)
28.7
16.9
44.6
Leases and licenses, storage, rent and other
8.6
13.8
8.9
63.6
48.3
73.5
(1) Included in the deposits are commodity derivative contract collateral of $3.8 million as at December 31, 2024 (2023 – $11.2 million,
2022 – $39.9 million).
6 . I N V E N T O R I E S
A summary of inventories is as follows:
2024
2023
2022
Propane and other refined fuels
63.6
73.2
98.2
Propane retailing materials, supplies, appliances and other
14.3
14.1
14.7
77.9
87.3
112.9
Notes to the Consolidated Financial Statements
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Annual Report 2024
Superior Plus
7 . P R O P E R T Y , P L A N T A N D E Q U I P M E N T
Cost
Land
Buildings and
Facilities
MSU, Trucks
and Railcars
Storage,
Machinery,
Equipment
and Other(2)
Leasehold
Improvements
Total
As at December 31, 2022(1)
63.7
178.1
370.3
1,069.0
15.0
1,696.1
Additions – right-of-use assets
–
4.7
37.7
–
–
42.4
Additions – property, plant and equipment(1)
0.2
7.2
44.8
88.7
0.8
141.7
Additions through business
combinations (Note 3)
0.8
37.9
258.8
149.3
0.1
446.9
Adjustments related to asset retirement
obligation (“ARO”) and provisions
–
–
–
1.6
–
1.6
Disposals and divestitures
(3.3)
(4.3)
(18.0)
(76.6)
(0.1)
(102.3)
Net foreign currency exchange
differences and other
0.2
2.0
2.5
24.8
(0.2)
29.3
As at December 31, 2023(1)
61.6
225.6
696.1
1,256.8
15.6
2,255.7
Additions – right-of-use assets
–
9.4
18.2
1.4
–
29.0
Additions – property, plant and equipment
1.1
5.0
73.6
74.3
1.1
155.1
Disposals and divestitures
(0.4)
(2.9)
(8.5)
(22.8)
–
(34.6)
Net foreign currency exchange
differences and other
(2.2)
(3.8)
(49.5)
(47.5)
(1.1)
(104.1)
As at December 31, 2024
60.1
233.3
729.9
1,262.2
15.6
2,301.1
Accumulated Depreciation
As at December 31, 2022(1)
–
59.8
210.6
412.0
6.9
689.3
Depreciation expense – property, plant
and equipment
–
7.1
44.0
81.2
1.0
133.3
Depreciation of right-of-use assets
–
10.2
23.7
0.7
0.2
34.8
Disposal of assets
–
(2.3)
(11.6)
(62.3)
(0.3)
(76.5)
Net foreign currency exchange
differences and other
0.9
(3.2)
15.5
(1.1)
12.1
As at December 31, 2023(1)
–
75.7
263.5
447.1
6.7
793.0
Depreciation expense – property, plant
and equipment
–
8.4
45.0
88.5
1.0
142.9
Depreciation of right-of-use assets
–
11.0
22.6
3.4
–
37.0
Disposal of assets
–
(2.0)
(7.8)
(13.9)
–
(23.7)
Net foreign currency exchange
differences and other
–
(0.9)
(17.0)
(22.7)
(0.2)
(40.8)
As at December 31, 2024
–
92.2
306.3
502.4
7.5
908.4
Carrying Amount
As at December 31, 2022(1)
63.7
118.3
159.7
657.0
8.1
1,006.8
As at December 31, 2023(1)
61.6
149.9
432.6
809.7
8.9
1,462.7
As at December 31, 2024
60.1
141.1
423.6
759.8
8.1
1,392.7
(1) Restated, see Note 2(a)
(2) These include tanks and cylinders, tank bodies, chassis, field and other equipment, compression equipment, MSU recertifications,
furniture and fixtures and computer equipment.
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Annual Report 2024
Superior Plus
The carrying amounts of the right-of-use assets included in the above are as follows:
Carrying Amount
Office
Space and
Buildings
Railcars
and Trucks
Storage and
Equipment
Total
As at December 31, 2022(1)
68.8
99.2
7.4
175.4
As at December 31, 2023(1)
70.8
106.2
12.5
189.5
As at December 31, 2024
68.0
98.2
9.9
176.1
Depreciation per cost category:
Years Ended December 31
2024
2023
SD&A
Property, plant and equipment
142.9
133.3
Right-of-use asset
37.0
34.8
Total depreciation
179.9
168.1
Superior evaluated the property, plant and equipment as at December 31, 2024 and 2023 for indicators
of impairment, and no impairment was identified with the exception of approximately $2.0 million related
to damages caused by Hurricane Helene. See Note 8 for further details on testing of property, plant and
equipment impairment in CGUs.
8 . G O O D W I L L A N D I N T A N G I B L E A S S E T S
Cost
Goodwill
Customer
relationships
Cap and Trade
Emission Units
Purchased
Software,
Developed
Technology and
other assets
Total
As at December 31, 2022(1)
1,222.3
530.4
30.5
128.8
1,912.0
Additions through
business
combinations
235.3
64.3
–
67.2
366.8
Additions acquired
separately
–
–
10.6
6.6
17.2
Disposals and
divestitures
(Note 3)
(24.6)
–
(10.3)
(0.8)
(35.7)
Net foreign currency
exchange differences
and other
10.3
17.3
0.6
(10.5)
17.7
As at December 31, 2023(1)
1,443.3
612.0
31.4
191.3
2,278.0
Additions acquired
separately
–
–
7.1
5.3
12.4
Offset against liability
–
–
(27.9)
–
(27.9)
Disposals and divestitures
(Note 3)
(6.7)
(1.6)
–
(0.1)
(8.4)
Net foreign currency
exchange differences
and other
(32.2)
(9.8)
(1.8)
(10.2)
(54.0)
As at December 31, 2024
1,404.4
600.6
8.8
186.3
2,200.1
Notes to the Consolidated Financial Statements
64
Annual Report 2024
Superior Plus
Accumulated
Amortization
As at December 31, 2022(1)
–
183.8
–
88.9
272.7
Amortization expense
–
63.7
–
13.7
77.4
Disposals
–
–
–
(0.3)
(0.3)
Net foreign currency
exchange differences
and other
–
5.2
–
(2.4)
2.8
As at December 31, 2023(1)
–
252.7
–
99.9
352.6
Amortization expense
–
64.5
–
18.2
82.7
Disposals
–
(1.3)
–
(0.1)
(1.4)
Net foreign currency
exchange differences
and other
–
(5.4)
–
(4.8)
(10.2)
As at December 31, 2024
–
310.5
–
113.2
423.7
Carrying Value
As at December 31, 2022(1)
1,222.3
346.6
30.5
39.9
1,639.3
As at December 31, 2023(1)
1,443.3
359.3
31.4
91.4
1,925.4
As at December 31, 2024
1,404.4
290.1
8.8
73.1
1,776.4
(1) Restated, See Note 2(a).
Superior acquired definite-life intangible assets from the acquisition of Certarus in 2023, namely:
• Customer relationships representing Certarus’ ongoing relationship with customers in place at the date
of acquisition are amortized on a straight-line basis for 8 years;
• Brand and trademarks, representing the Certarus brand name established within the industry, known
among customers within the CNG distribution space for a proven track record of reliable service and
industry leading safety standards, are amortized on a straight-line basis for 15 years; and
• Developed technology, representing proprietary technology developed in house by Certarus, is
amortized on a straight-line basis for 5 years.
During the year, the Company invested $5.3 million (2023 – $6.6 million) in new software systems and
enhancements to existing systems. These additions include the cost of the software, the installation and
consulting services relating to the enhancements and implementation of these systems.
Superior evaluated intangible assets as at December 31, 2024 and 2023 for indicators of impairment,
and the Company did not identify any impairment. Therefore, the carrying value was not adjusted for the
current year.
Goodwill is a result of a number of previous business combinations and is generally attributable to
anticipated synergies expected and other intangible assets that are not required to be separately identified.
Goodwill by definition has an indefinite life and, therefore, is not amortized.
Goodwill is subject to impairment tests at least annually. For purposes of impairment testing, Superior
assesses goodwill at the operating segment level.
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Annual Report 2024
Superior Plus
The carrying amount of goodwill as at December 31 related to each operating segment is as follows:
2024
2023
2022
U.S. Propane
905.0
911.7
912.3
Canadian Propane
200.4
217.2
233.3
Wholesale Propane
76.5
77.6
76.7
CNG
222.5
236.8
–
1,404.4
1,443.3
1,222.3
Superior conducts assessments for indicators of impairment on a quarterly basis and performs a detailed
impairment assessment at least annually. As at December 31, 2024 and 2023, an impairment test was
performed for all CGUs with allocated goodwill, and after considering all available evidence, no impairment
was identified.
The recoverable amount of each CGU was based on its value in use and was determined by estimating the
future cash flows that would be generated from the continuing use of the CGU, incorporating the following
assumptions:
Basis on which recoverable amount was determined
The recoverable amount for each CGU is determined using a detailed cash flow model that is based on
evidence from an internal budget approved by the Board of Directors. Management’s internal budgets are
based on past experience and are adjusted to reflect market trends and economic conditions.
Key rates used in calculation of recoverable amount
Growth rate to perpetuity
The first four years of cash flow projections used in the model are based on management’s internal
budgets, and projections after four years are extrapolated using growth rates in line with historical long-
term growth rates. The long-term growth rate used in determining the recoverable amount for each CGU
is 2.0% (2023 – 2.0% to 2.3%). Cash flow projections exclude any costs related to expansions through
acquisitions and other related initiatives.
Discount rates
Cash flows in the model are discounted using a discount rate specific to each CGU that is adjusted based
on risk assessments for each CGU. Discount rates reflect the current market assessments of the time value
of money and are derived from the CGU’s weighted average cost of capital and are adjusted for tax. The
after-tax discount rates used in determining the recoverable amount for the CGUs range from 7.5% to
10.5% (2023 – 7.8% to 11.0%).
Inflation rates
Inflation rates used in the cash flow model are based on a blend of a number of publicly available inflation
forecasts. The inflation rate used in determining the recoverable amount for each CGU is 2.0% in 2024
(2023 – 2.0% to 2.3%).
Key assumptions
In determining the recoverable amount of each CGU, business, market and industry factors
were considered.
Notes to the Consolidated Financial Statements
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Annual Report 2024
Superior Plus
9 . P R O V I S I O N S
A summary of provisions is as follows:
Restructuring
Decommissioning
Other
Total
Balance as at December 31, 2022
0.7
6.1
22.7
29.5
Additions
0.1
1.6
–
1.7
Utilization
(0.5)
–
(20.5)
(21.0)
Amounts reversed
–
–
(2.2)
(2.2)
Unwinding of discount, impact of
changes in discount rate and foreign
exchange
0.2
0.3
–
0.5
Balance as at December 31, 2023
0.5
8.0
–
8.5
Additions
2.9
0.2
–
3.1
Utilization
(2.5)
(0.4)
–
(2.9)
Unwinding of discount, impact of
changes in discount rate and foreign
exchange
–
0.2
–
0.2
Balance as at December 31, 2024
0.9
8.0
–
8.9
2024
2023
2022
Current (Note 10)
0.9
0.5
23.5
Non-current
8.0
8.0
6.1
8.9
8.5
29.6
Restructuring
Provisions for restructuring are recorded in provisions, except for the current portion, which is recorded
in trade and other payables. As at December 31, 2024, the current portion of restructuring costs was
$0.9 million (2023 – $0.5 million).
Decommissioning
The provisions are on a discounted basis and are based on existing technologies at current prices or long-
term price assumptions, depending on the expected timing of the activity.
Superior records a provision for the future costs of decommissioning certain assets associated with the
U.S. Propane segment. Superior estimates the total undiscounted expenditures required to settle its
decommissioning liabilities to be $8.0 million as at December 31, 2024 (2023 – $10.2 million), which will be
paid over the next 13 years. The discount rate of 3.3% as at December 31, 2024 (2023 – 3.8%) was used to
calculate the present value of the estimated cash flows.
Other
On January 18, 2023, Superior paid a C$25.0 million reverse termination fee plus C$1.4 million interest
and C$1.3 million other costs related to the ruling of Alberta Court of Kings Bench against Superior on
December 22, 2022 resulting from the termination of the arrangement agreement between Canexus
Corporation and Superior in 2016. Superior appealed the decision to the Court of Appeal on January
19, 2023.
Subsequent to December 31, 2024, the Alberta Court of Appeal (the “Court”) ruled in favor of Superior in
the matter of Chemtrade Electrochem Inc., formerly Canexus Corporation (“Chemtrade”) v. Superior Plus
Corporation, overturning the earlier decision and ruling that Superior was not required to pay Chemtrade
a C$25 million reverse termination fee on the termination of the Arrangement Agreement between
the parties in 2016. As a result of this ruling, on February 14, 2025, Superior received approximately
C$28.1 million including interest.
Superior is subject to various other claims and potential claims in the normal course of business, but
the Company does not expect the ultimate settlement of any of these to have a material effect on its
financial results. The outcomes of all the proceedings and claims against Superior are subject to future
67
Annual Report 2024
Superior Plus
resolution that includes the uncertainties of litigation. It is not possible for Superior to predict the result or
magnitude of the claims due to the various factors and uncertainties involved in the legal process. Based on
information currently known to Superior, it is not probable that the ultimate resolution of any proceedings
and claims, individually or in total, will have a material effect on the consolidated statements of net (loss)
earnings and total comprehensive earnings or consolidated balance sheets. If it becomes probable that
Superior is liable, Superior will record a provision in the period the change in probability occurs, and
the resulting impact could be material to the consolidated statements of net (loss) earnings and total
comprehensive earnings or consolidated balance sheets.
1 0 . T R A D E A N D O T H E R P A Y A B L E S
A summary of trade and other payables is as follows:
2024
2023
2022
Trade payables
288.4
312.3
315.0
Provisions (Note 9)
0.9
0.5
23.5
Accrued liabilities and other payables
119.1
84.8
80.3
Cap and trade payable, current portion
1.7
29.0
–
Current taxes payable
10.0
6.0
0.6
Share-based payments, current portion
8.5
9.1
8.9
Trade and other payables
428.6
441.7
428.3
1 1 . C O N T R A C T L I A B I L I T I E S
2024
2023
2022
Balance, beginning of the year
18.5
18.4
16.3
Additions during the year
50.5
42.1
40.6
Recognized in net earnings
(49.6)
(42.3)
(38.2)
Net foreign currency exchange differences
(0.6)
0.3
(0.3)
Balance, end of the year
18.8
18.5
18.4
The Company does not generally receive deposits for periods longer than 12 months in advance of
performing the related service.
1 2 . O T H E R L I A B I L I T I E S
A summary of other liabilities is as follows:
2024
2023
2022
Quebec cap and trade payable
4.6
–
8.9
California cap and trade payable
5.8
3.0
17.0
Washington cap and trade payable
1.3
2.4
–
Share-based payments and other non-current liabilities
1.8
3.0
1.5
Other liabilities
13.5
8.4
27.4
Superior operates in California, Washington and Quebec, and is required to participate in the respective
government cap and trade programs, which require Superior to settle any liability with cap and trade at the
end of each compliance period.
Intangible assets are recorded when cap and trade emission units are purchased, and cap and trade
liabilities are recorded upon the import of propane. These are included in the audited consolidated
statements of cash flows, net of the liability that has been accrued related to cap and trade payable as part
of changes in non-cash working capital.
Notes to the Consolidated Financial Statements
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1 3 . B O R R O W I N G S
A summary of borrowings is as follows:
Year of
Maturity
Effective Interest Rate
2024
2023
2022
Revolving Term Bank Credit
Facilities
Canadian Overnight Repo
Rate Average (“CORRA”) loan
(C$ 647.0 million)(1),(2)
2027
Floating CORRA plus
1.70%
449.9
456.8
68.6
Canadian prime rate loan
(prime and swing line)
(C$ $51.2 million)(1)
2027
Prime rate plus 0.70%
35.6
2.9
–
Secured Overnight Financing
Rate (“SOFR”) loan(1)
2027
Term SOFR rate plus
1.70%
235.0
236.0
365.0
U.S. base rate loans (prime and
swing line)(1)
2027 U.S. prime rate plus 3.70%
25.9
5.0
–
746.4
700.7
433.6
Senior Unsecured Notes
Senior unsecured notes(3)
2029
4.50%
600.0
600.0
600.0
Senior unsecured notes(4)
2028
4.25%
347.7
377.6
368.9
947.7
977.6
968.9
Deferred Consideration and
Other Debt
2024–
2031
1.74%–8.5%
23.0
32.3
33.3
Total borrowings before
deferred financing fees
1,717.1
1,710.6
1,435.8
Deferred financing fees
and discounts
(13.3)
(17.4)
(14.7)
Total borrowings before
current maturities
1,703.8
1,693.2
1,421.1
Current maturities
(7.2)
(8.5)
(10.9)
Total non-current borrowings
1,696.6
1,684.7
1,410.2
(1) As at December 31, 2024, Superior had $15.6 million of outstanding letters of credit (December 31, 2023 – $17.4 million) and
$319.0 million of outstanding parental guarantees on behalf of its businesses (December 31, 2023 – $324.3 million). The fair
value of Superior’s revolving term bank credit facilities, other debt and letters of credit approximates their carrying value as a
result of the market-based interest rates and the short-term nature of the underlying debt instruments. The credit facilities are
secured by substantially all of the assets of Superior and mature on June 6, 2027. The lender commitments can be increased from
C$1,300 million to C$1,600 million on the condition that no event of default has occurred and lender consent is provided. On May
31, 2024 Superior’s credit facilities were updated as a result of Canadian interest rate reform and the effective benchmark rates were
changed from a Banker’s Acceptance (“BA”) based rate to Canadian Overnight Repo Rate Average (“CORRA”), on a go-forward basis.
(2) Superior entered into a C$550 million senior secured revolving credit facility with a syndicate of ten lenders to fund the acquisition
of Certarus. During the year ended December 31, 2024, the maturity and terms of this facility were aligned with the remainder of the
credit facilities and is no longer shown separately. Comparative figures have been restated to conform with this presentation. As at
December 31, 2023 this facility had a balance of $330.7 million.
(3) Superior’s subsidiaries, Superior Plus LP and Superior General Partner Inc., issued at par $600 million of 4.5% senior unsecured
notes due March 15, 2029. The fair value of the outstanding $600 million senior unsecured notes is $545.9 million (December
31, 2023 – $554.6 million) based on prevailing market prices. There was an unrealized foreign exchange translation loss on the
$600 million senior unsecured note of $47.1 million for the year ended December 31, 2024 (2023 – $14.3 million gain) as a result of
the note being issued and held in a Canadian entity.
(4) Superior’s wholly owned subsidiary, Superior Plus LP, completed a private placement of C$500 million of 4.25% senior unsecured
notes, at par value, due May 18, 2028, which are guaranteed by Superior and certain of its subsidiaries. The fair value of the 4.25%
senior unsecured notes based on prevailing market rates is $329.0 million (December 31, 2023 – $351.9 million).
Superior is subject to various financial covenants in its credit facility agreements, including senior debt,
total debt to EBITDA ratio and restricted payment tests, which are measured on a quarterly basis. As at
December 31, 2024, Superior was in compliance with all of its financial covenants.
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Future required repayments of borrowings before deferred financing fees are as follows:
2025
7.2
2026
4.6
2027
747.9
2028
348.3
2029
600.5
Thereafter
8.6
Total
1,717.1
1 4 . L E A S I N G A R R A N G E M E N T S
The lease liabilities by operating segment are as follows:
U.S.
Propane
Canadian
Propane
Wholesale
Propane
CNG
Corporate
Total
Balance as at December 31, 2022
100.8
47.4
15.7
–
0.6
164.5
Lease liabilities assumed as part
of a business combination
0.2
–
–
12.0
–
12.2
Additions
14.2
19.1
6.3
2.8
–
42.4
Finance expense on lease liabilities
4.6
2.5
1.0
0.4
8.5
Lease payments
(23.1)
(16.4)
(5.7)
(2.1)
(0.2)
(47.5)
Impact of changes in foreign
exchange rates and other
–
1.2
0.5
(0.9)
–
0.8
Balance as at December 31, 2023
96.7
53.8
17.8
12.2
0.4
180.9
Additions, net of
terminated leases
4.1
9.6
1.0
10.3
4.0
29.0
Finance expense on
lease liabilities
4.6
3.0
0.9
1.0
0.1
9.6
Lease payments
(23.2)
(15.1)
(5.3)
(4.8)
(0.2)
(48.6)
Impact of changes in foreign
exchange rates and other
–
(4.3)
(0.5)
(0.3)
(0.5)
(5.6)
Balance as at December 31, 2024
82.2
47.0
13.9
18.4
3.8
165.3
2024
2023
2022
Current portion of lease liabilities
43.5
48.0
34.9
Non-current portion of lease liabilities
121.8
132.9
129.6
Total lease liabilities
165.3
180.9
164.5
Notes to the Consolidated Financial Statements
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The present values of lease payments are as follows:
Minimum Rental Payments
Present Value of Minimum
Rental Payments
2024
2023
2024
2023
Not later than one year
48.9
53.4
43.5
48.0
Later than one year and not later than five
years
102.0
112.7
84.9
94.0
Later than five years
45.7
50.5
36.9
38.9
Less: future finance charges
(31.3)
(35.7)
–
–
Present value of minimum rental payments
165.3
180.9
165.3
180.9
Future minimum lease payments under non-cancellable, low-value, short-term leases and leases with
variable lease payments are summarized below:
2024
2023
2022
Not later than one year
2.7
7.2
1.5
Later than one year and not later than five years
0.2
0.2
0.5
2.9
7.4
2.0
1 5 . E M P L O Y E E F U T U R E B E N E F I T S
In accordance with IAS 19, the most recent actuarial accounting of plan assets and the present value of the
defined-benefit obligation were calculated on December 31, 2024. The present value of the defined-benefit
obligation and the related current and past service costs were measured using the projected unit credit
method, which is the same as that applied in calculating the accrued defined-benefit obligation recognized
in the consolidated balance sheets.
The principal assumptions used for the purpose of the actuarial valuation were as follows:
Defined-benefit Plans
Other Benefit Plans
2024
2023
2024
2023
Average discount rate
4.4%
4.6%
4.2%
4.6%
Expected rate of compensation increase
3.0%
4.0%
3.0%
4.0%
Mortality rate(1)
108%–112%
108%–112%
97%–109%
97%–109%
(1) 2014 Canadian Private Sector Pensioners’ Mortality Table combined with mortality improvement scale MI-2017.
Canadian Propane has defined-benefit and defined-contribution pension plans (the “Plans”) covering most
employees. The benefits provided under the Plans are based on the individual employee’s years of service
and the highest average earnings for a specified number of consecutive years. The objective of the Plans
when managing their net assets available for benefits, which represent the capital of the Plans, is to provide
members with the retirement benefits prescribed in the Plans. The Specialty Chemicals pension plans were
divested earlier in 2022, except for one non-funded Supplemental Retirement Arrangement plan with four
members, which has been assumed by Superior under the Corporate plan. All other benefit plans and the
rest of the management objectives, policies and procedures are unchanged since 2023. The Plan assets
are managed by the Human Resources and Compensation Committee of the Board of Directors on behalf
of beneficiaries. The Human Resources and Compensation Committee of the Board of Directors retains
independent managers and advisors.
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Information about Superior’s defined-benefit and other post-retirement benefit plans as at December 31,
2024 and 2023 in aggregate is as follows:
Recognized Net (Asset) Liability Arising From Defined-benefit Obligation
Canadian
Propane Pension
Benefit Plans
Other Benefit
Plans
Balance as at December 31, 2024
Present value of defined-benefit obligations
14.3
3.3
Fair value of plan assets
(18.7)
–
Net (asset) liability arising from defined-benefit obligation
(4.4)
3.3
Balance as at December 31, 2023
Present value of defined-benefit obligations
16.6
3.8
Fair value of plan assets
(21.3)
–
Net (asset) liability arising from defined-benefit obligation
(4.7)
3.8
Movements in Defined-benefit Obligations and Plan Assets
Canadian
Propane Pension
Benefit Plans
Other Benefit
Plans
2024
2023
2024
2023
Movement in the present value of the defined-benefit
obligation during the year:
Benefit obligation as at January 1
16.6
16.9
3.8
4.1
Interest cost
0.7
0.8
0.2
0.1
Actuarial losses (gains)
0.2
0.6
0.1
(0.2)
Benefits paid
(1.9)
(2.1)
(0.4)
(0.3)
Foreign currency exchange differences
(1.3)
0.4
(0.4)
0.1
Benefit obligation as at December 31
14.3
16.6
3.3
3.8
Movement in the fair value of the plan assets during the
year:
Fair value of plan assets as at January 1
21.3
21.8
–
–
Excess on plan assets
0.2
0.1
–
–
Expected return on plan assets
0.9
1.0
–
–
Contributions by the employer
–
0.1
0.4
0.3
Benefits paid
(1.9)
(2.1)
(0.4)
(0.3)
Administration expenses
(0.1)
–
–
–
Defined contributions plan payments
(0.1)
(0.1)
–
–
Foreign currency exchange differences
(1.6)
0.5
–
–
Fair value of plan assets as at December 31
18.7
21.3
–
–
Funded status – plan surplus (deficit)
Net asset (obligation) arising from defined-benefit obligation
4.4
4.7
(3.3)
(3.8)
Non-current net benefit asset (obligation)
4.4
4.7
(3.3)
(3.8)
Notes to the Consolidated Financial Statements
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The accrued net pension asset related to the Canadian Propane pension benefit plan on December
31, 2024 was $4.4 million (2023 – $4.7 million), and the recovery for 2024 was $0.1 million (2023 –
$(0.1) million).
The accrued net benefit obligation related to the total other benefit plans of Canadian Propane and
Corporate plan on December 31, 2024 was $3.3 million (2023 – $3.8 million), and the expense for 2024 was
$0.1 million (2023 – $0.1 million). Amounts recognized in net earnings (loss) in respect of these defined-
benefit plans are as follows for the years ended December 31:
2024
2023
Service cost
Administrative expense
0.1
–
Defined contributions plan payments
0.2
0.2
Net interest income
(0.1)
(0.1)
Components of defined-benefit costs recognized in net earnings
0.2
0.1
The service cost, administrative expense and net interest expense related to Canadian Propane and
Corporate plans for the year ended December 31, 2024 was $0.2 million (2023 – $0.1 million) and is
included in SD&A.
The remeasurement of the net defined-benefit liability is included in other comprehensive earnings (loss).
The amounts recognized in accumulated other comprehensive earnings in respect of these benefit plans
are as follows:
2024
2023
Actuarial defined-benefit loss (before income taxes)
–
(0.4)
Cumulative actuarial gains (before income taxes)
2.8
2.8
Remeasurement on the net benefit obligation:
2024
2023
Cumulative actuarial gains (before income taxes), beginning of the year
2.8
3.2
Actuarial asset experience gain
0.2
0.1
Actuarial loss arising from changes in financial assumptions
(0.2)
(0.6)
Actuarial gain arising from changes in experience adjustments
–
0.1
Cumulative actuarial gains (before income taxes), end of the year
2.8
2.8
Significant actuarial assumptions for the determination of the accrued defined-benefit obligation are
discount rate, compensation increase, mortality scale and trend rate. The sensitivity analyses below have
been determined based on reasonably possible changes of the respective assumptions occurring as at
December 31, 2024, while holding all other assumptions constant.
Discount Rate
A 1% change in the discount rate would result in a change to the accrued defined-benefit obligation related
to Canadian Propane of $1.0 million as at December 31, 2024 (2023 – $1.3 million) and a change to the
current service expense of $0.1 million as at December 31, 2024 (2023 – $0.1 million). A 1% change in the
discount rate would result in a change to the accrued defined-benefit obligation related to the Corporate
plan of $0.1 million (2023 – $0.1 million) and a change to the current service expense of $nil at December
31, 2024 and 2023.
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Compensation Increase
A 1% change in salary would result in a change to the accrued defined-benefit obligation related to
Canadian Propane of $nil as at December 31, 2024 (2023 – $nil) and a change to the current service
expense of $nil as at December 31, 2024 (2023 – $nil). A 1% change in salary would result in a change to the
accrued defined-benefit obligation and expense related to the Corporate plan of $nil as at December 31,
2024 and 2023.
Mortality Scale
A 10% change in the mortality scale would result in a change to the accrued defined-benefit obligation
related to Canadian Propane of $0.8 million as at December 31, 2024 (2023 – $0.8 million) and a change
to the current service expense of $nil as at December 31, 2024 (2023 – $0.1 million). A 10% change in the
mortality scale would result in a change to the accrued defined-benefit obligation related to the Corporate
plan of $0.1 million as at December 31, 2024 and 2023 and a change to the current service expense of $nil
as at December 31, 2024 and 2023.
Trend Rate
A 1% change in the trend rate would result in a change to the accrued defined-benefit obligation related
to Canadian Propane of $0.1 million as at December 31, 2024 (2023 – $0.2 million) and a change to the
current service expense of $nil as at December 31, 2024 and 2023.
The sensitivity presented above may not be representative of the actual change in the accrued defined-
benefit obligation as it is unlikely that the change in assumptions would occur in isolation, as some of the
assumptions may be correlated.
There were no changes in the methods or assumptions used in preparing the sensitivity analysis from prior
years. The average duration of the net benefit obligation related to Canadian Propane plans is 6.5 years as
at December 31, 2024 (2023 – 6.5 years) and related to the Corporate plan is 7.9 years as at December 31,
2024 (2023 – 8.2 years).
As at December 31, 2024, Superior expects to make contributions to the Canadian Propane plans of
$0.3 million and to the Corporate plan of $0.1 million during 2025.
The fair values of plan assets as at December 31, 2024, by major asset category, are as follows:
Canadian Propane
Pension Benefit Plans
Level 2 Assets
Percentage
Canadian equities
2.9
15.5%
Fixed income
15.7
84.0%
Cash
0.1
0.5%
Total
18.7
100.0%
The fair values of plan assets as at December 31, 2023, by major asset category, are as follows:
Canadian Propane
Pension Benefit Plans
Level 2 Assets
Percentage
Canadian equities
2.9
13.6%
Fixed income
18.3
85.9%
Cash
0.1
0.5%
Total
21.3
100.0%
The actual returns on Canadian Propane plan assets during the year ended December 31, 2024 were 5.6%
(2023 – 5.8%). The Corporate plan was not a funded plan.
As part of the risk management process, Superior has established a diversification policy, set rate of return
objectives, and developed specific investment guidelines.
Notes to the Consolidated Financial Statements
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As at December 31, 2024, the asset-matching strategic choices that are formulated in the actuarial report
and Superior’s Statement of Investment Policies and Procedures (“SIPP”) of the total defined-benefit plan
assets are:
Canadian Propane Distribution
Pension Benefit Plans
Range(1)(2)
Canadian equities
4.0%–10.0%
Global equities
4.0%–9.0%
Fixed income
81.0%–92.0%
(1) Based on Superior’s SIPP.
(2) Canadian Propane’s SIPP does not provide ranges for U.S. and foreign equities; instead it provides an aggregate range for
global equities.
As at December 31, 2023, the asset-matching strategic choices that are formulated in the actuarial report
and SIPP of the total defined-benefit plan assets are:
Canadian Propane Distribution
Pension Benefit Plans
Range(1)(2)
Canadian equities
4.0%–9.0%
Global equities
4.0%–9.0%
Fixed income
82.0%–92.0%
(1) Based on Superior’s SIPP.
(2) Canadian Propane’s SIPP does not provide ranges for U.S. and foreign equities; instead it provides an aggregate range for
global equities.
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1 6 . F I N A N C I A L I N S T R U M E N T S
IFRS requires disclosure around fair value and specifies a hierarchy of valuation techniques based on
whether the inputs to those valuation techniques are observable or unobservable. Observable inputs
reflect market data obtained from independent sources, while unobservable inputs reflect Superior’s
market assumptions.
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. Fair values are
determined by reference to quoted bid or ask prices, as appropriate, in the most advantageous active
market for that instrument to which Superior has immediate access (Level 1). Where bid and ask prices are
unavailable, Superior uses the closing price of the instrument’s most recent transaction. In the absence of
an active market, Superior estimates fair values based on prevailing market rates (bid and ask prices, as
appropriate) for instruments with similar characteristics and risk profiles or internal or external valuation
models, such as discounted cash flow analysis using, to the extent possible, observable market-based
inputs (Level 2). Superior uses internally developed methodologies and unobservable inputs to determine
the fair value of some financial instruments when required (Level 3).
Fair values are determined using valuation models require assumptions concerning the amount and timing
of estimated future cash flows and discount rates. In determining those assumptions, Superior looks
primarily to available readily observable external market inputs including forecast commodity price curves,
interest rate yield curves, currency rates, and price and rate volatilities as applicable.
All financial and non-financial derivatives are designated as FVTPL upon their initial recognition.
For items that are recognized at fair value on a recurring basis, the Company determines whether transfers
have occurred between levels in the hierarchy by reassessing their classification at the end of each
reporting period. During the year ended December 31, 2024, there were no transfers between Level 1 and
Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements.
December 31, 2024
Level 1
Level 2
Level 3
Total
Assets
Foreign currency forward contracts, net sale
14.5
–
–
14.5
Propane, West Texas Intermediate (“WTI”),
heating oil and diesel purchase and
sale contracts
–
3.8
0.4
4.2
Total assets
14.5
3.8
0.4
18.7
Liabilities
Foreign currency forward contracts,
net sale and foreign currency options
(15.3)
–
–
(15.3)
Equity derivative contract
–
(9.7)
–
(9.7)
Propane, WTI, heating oil and diesel
purchase and sale contracts
–
(3.2)
–
(3.2)
Total liabilities
(15.3)
(12.9)
–
(28.2)
Total net (liabilities) assets
(0.8)
(9.1)
0.4
(9.5)
Current portion of assets
11.1
3.8
–
14.9
Current portion of liabilities
(11.6)
(8.6)
–
(20.2)
Notes to the Consolidated Financial Statements
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December 31, 2023
Level 1
Level 2
Level 3
Total
Assets
Foreign currency forward contracts, net sale
4.2
–
–
4.2
Equity derivative contract
–
0.2
–
0.2
Propane, WTI, heating oil and diesel purchase
and sale contracts
–
4.1
0.7
4.8
Total assets
4.2
4.3
0.7
9.2
Liabilities
Foreign currency forward contracts, net sale
and foreign currency options
(3.4)
–
–
(3.4)
Equity derivative contract
–
(2.8)
–
(2.8)
Propane, WTI, heating oil and diesel purchase
and sale contracts
–
(11.3)
–
(11.3)
Total liabilities
(3.4)
(14.1)
–
(17.5)
Total net assets (liabilities)
0.8
(9.8)
0.7
(8.3)
Current portion of assets
1.4
4.1
–
5.5
Current portion of liabilities
(2.6)
(11.9)
–
(14.5)
December 31, 2022
Level 1
Level 2
Level 3
Total
Assets
Foreign currency forward contracts, net sale
2.2
–
–
2.2
Equity derivative contract
–
1.4
–
1.4
Propane, WTI, heating oil and diesel
purchase and sale contracts
–
4.7
–
4.7
Total assets
2.2
6.1
–
8.3
Liabilities
Foreign currency forward contracts,
net sale and foreign currency options
(15.0)
–
–
(15.0)
Equity derivative contract
–
(1.3)
–
(1.3)
Propane, WTI, heating oil and diesel purchase
and sale contracts
–
(34.1)
–
(34.1)
Total liabilities
(15.0)
(35.4)
–
(50.4)
Total net liabilities
(12.8)
(29.3)
–
(42.1)
Current portion of assets
2.0
5.9
–
7.9
Current portion of liabilities
(6.6)
(34.4)
–
(41.0)
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The following table outlines quantitative information about how the fair values of these financial and non-financial assets and liabilities are
determined, including valuation techniques and inputs used:
Description
Notional Value
Term
Effective Rates
Valuation Technique(s) and Key
Input(s)
Level 1 fair value hierarchy:
Foreign currency forward contracts
related to Wholesale Propane
$17.4
2024-2026
$1.29–$1.38
Quoted bid prices in the active
market
Level 2 fair value hierarchy:
Equity derivative contracts (CAD)
$35.1
2024-2025
$9.46–$14.55
Discounted cash flows – Future cash
flows are estimated based on the
share price
Propane, WTI, heating oil and diesel
purchase and sale contracts
87.8 USG(1)
2024–2026
$0.50–$2.60
Quoted bid prices for similar
products in an active market
Level 3 fair value hierarchy:
Propane, WTI, heating oil and diesel
purchase and sale contracts
1.2 USG(1)
2024-2026
$0.50–$2.60
Quoted bid prices for similar
products in an active market
adjusted by supplier prices internally
obtained by management
(1) Millions of U.S. gallons (“USG”) purchased.
Superior’s realized and unrealized financial instrument gains (losses) for the year ended December 31, 2024 and 2023 are as follows:
Years Ended December 31
2024
2023
Description
Realized
(Loss) Gain
Unrealized
(Loss) Gain
Total
Realized Loss
Unrealized
(Loss) Gain
Total
Foreign currency forward
contracts – net sale and foreign
currency options
(6.7)
(2.0)
(8.7)
(6.8)
13.5
6.7
Equity derivative contracts
–
(6.2)
(6.2)
–
(2.7)
(2.7)
Propane, WTI, heating oil and diesel
purchase and sale contracts
1.7
7.4
9.1
(31.7)
23.4
(8.3)
Total (loss) gain on financial and
non- financial derivatives
(5.0)
(0.8)
(5.8)
(38.5)
34.2
(4.3)
Foreign exchange (loss) gain on U.S.
dollar debt issued by a Canadian
entity
–
(47.1)
(47.1)
–
14.3
14.3
Total (loss) gain
(5.0)
(47.9)
(52.9)
(38.5)
48.5
10.0
Notes to the Consolidated Financial Statements
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The following summarizes Superior’s classification and measurement of financial assets and liabilities:
Classification
Measurement
Financial assets
Cash and cash equivalents
Loans and receivables
Amortized cost
Trade and other receivables
Loans and receivables
Amortized cost
Derivative assets
FVTPL
Fair value
Financial liabilities
Trade and other payables
Other liabilities
Amortized cost
Dividends payable
Other liabilities
Amortized cost
Borrowings and other liabilities
Other liabilities
Amortized cost
Derivative liabilities
FVTPL
Fair value
The fair values of cash and cash equivalents, trade and other receivables, trade and other payables,
dividends payable, revolving term bank credit facilities disclosed in Note 13 and other liabilities correspond
to their respective carrying amounts due to their short-term nature and/or the interest rate being
commensurate with market interest rates. The fair value of senior unsecured notes disclosed in Note 13 is
determined by quoted market prices (Level 2 fair value hierarchy).
Offsetting of Financial Instruments
Financial assets and liabilities are offset and the net amount reported on the consolidated balance sheets
when Superior has a legally enforceable right to set off the recognized amounts and there is an intention
to settle on a net basis or realize the asset and settle the liability simultaneously. In the normal course
of business, Superior enters into various master netting agreements or other similar arrangements that
do not meet the criteria for offsetting, but do, however, still allow for the related amount to be set off in
certain circumstances, such as bankruptcy or the termination of contracts. As at December 31, 2024 and
December 31, 2023, Superior has not recorded any amount against other current and non-current financial
assets and liabilities except for the offsetting forward currency contracts that were outstanding as at
December 31, 2023. On the adoption of the U.S. dollar as the reporting currency management entered into
forward foreign currency contracts to offset the position as at December 31, 2023. The notional amount of
these forward currency contracts that were offset is approximately $231.0 million. The remaining loss that
will be realized relating to these offsetting transactions is approximately $2.4 million.
Financial Instruments – Risk Management
Market Risk
Financial derivatives and non-financial derivatives are used by Superior to manage its exposure to
fluctuations in foreign currency exchange rates, interest rates and commodity prices. Superior assesses
the inherent risks of these instruments by grouping financial and non-financial derivatives according
to the exposures these instruments mitigate. Superior’s policy is not to use financial derivative or non-
financial derivative instruments for speculative purposes. With the exception of the fair value of Superior’s
share-based compensation program, Superior does not formally designate these derivatives as hedges
and, as a result, Superior does not apply hedge accounting and is required to designate its financial
derivatives and non-financial derivatives as held for trading. Effective January 1, 2024, Superior began using
hedge accounting to reduce the volatility in earnings (loss) related to the fair value of the share-based
compensation programs and the related equity derivatives.
Superior’s operating segments enter into various propane forward purchase and sale agreements to
manage the economic exposure of its wholesale customer supply contracts and monitor their fixed-price
propane positions on a daily basis to monitor compliance with established risk management policies.
Superior’s operating segments maintain a substantially balanced fixed-price propane position in relation to
its wholesale customer supply commitments.
Superior, on behalf of its operating segments, may enter into foreign currency forward contracts to manage
the economic exposure of its operations to movements in foreign currency exchange rates.
Credit Risk
Superior utilizes a variety of counterparties in relation to its financial derivative and non-financial derivative
instruments in order to mitigate its counterparty risk. Superior assesses the creditworthiness of its
significant counterparties at the inception and throughout the term of a contract. Superior is also exposed
to customer credit risk. Superior’s operating segments deal with a large number of small customers, thereby
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reducing this risk. Superior’s operating segments actively monitor the creditworthiness of its commercial
customers. Overall, Superior’s credit quality is enhanced by its portfolio of customers, which is diversified
across geographical (primarily Canada and the U.S.) and end-use (primarily commercial, residential and
industrial) markets.
Allowances for doubtful accounts and past-due receivables are reviewed by Superior as at each
consolidated balance sheet date. Superior updates its estimate of the allowance for doubtful accounts
based on the evaluation of the recoverability of trade and other receivables with each customer,
considering historical collection trends of past due accounts, current economic conditions and future
forecasts. Trade and other receivables are written off once it is determined they are uncollectible.
Liquidity Risk
Liquidity risk is the risk that Superior cannot meet a demand for cash or fund an obligation as it comes
due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a
reasonable price.
To ensure it is able to react to contingencies and investment opportunities quickly, Superior maintains
sources of liquidity at the corporate and subsidiary levels. The main sources of liquidity are cash and
other financial assets, the undrawn committed revolving term bank credit facilities, equity markets and
debenture markets.
Superior is subject to the risks associated with debt financing, including the ability to refinance
indebtedness at maturity. Superior believes these risks are mitigated through the use of long-term debt
secured by high-quality assets, maintaining debt levels that in management’s opinion are appropriate and
by diversifying maturities over an extended period. Superior also seeks to include in its agreements terms
that protect it from liquidity issues of counterparties that might otherwise affect liquidity.
Superior manages its overall liquidity risk in relation to its general funding requirements by utilizing a mix
of short-term and long-term debt instruments. Superior reviews its mix of short-term and long-term debt
instruments on an ongoing basis to ensure it is able to meet its liquidity requirements.
Effective January 1, 2024, Superior changed its reporting currency from Canadian dollars to U.S. dollars. As
a result, Superior will no longer hedge its U.S dollar translation exposure as the foreign currency exchange
risk will be significantly reduced. In Q1 2024, Superior entered into foreign currency forward contracts and
options to offset prior foreign currency positions.
Superior’s contractual obligations associated with its financial liabilities are as follows:
Current
2026
2027
2028
2029 thereafter
Total
Borrowings before
deferred financing
fees and discounts
7.2
4.6
747.9
348.3
600.5
8.6
1,717.1
Lease liabilities
43.5
29.3
26.7
17.5
11.4
36.9
165.3
Non-cancellable,
low-value, short-term
leases and leases
with variable lease
payments
2.7
0.1
0.1
–
–
–
2.9
CNG capital,
transmission and
other commitments
28.2
0.5
0.4
0.3
0.3
–
29.7
US dollar foreign
currency forward
contracts and
options, net
17.4
–
–
–
–
–
17.4
Equity derivative
contracts
21.4
13.7
–
–
–
–
35.1
Propane, WTI, heating
oil, diesel and natural
gas purchase and sale
contracts
88.5
6.0
–
–
–
–
94.5
Notes to the Consolidated Financial Statements
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In addition to the commitments mentioned above, Superior has entered into purchase orders and
contracts during the normal course of business related to commodity purchase obligations transacted at
market prices. Furthermore, Superior has entered into purchase agreements that require it to purchase
minimum amounts or quantities of propane and other natural gas liquids over certain time periods which
vary but are generally for one year. Superior has generally exceeded such minimum requirements in the
past and expects to continue doing so for the foreseeable future. Failure to satisfy the minimum purchase
requirements could result in the termination of contracts, change in pricing and/or payments to the
applicable supplier.
Superior’s contractual obligations are considered normal operating commitments and do not include the
impact of mark-to-market fair values on financial and non-financial derivatives. Superior expects to fund
these obligations through a combination of cash flows from operations and proceeds on revolving term
bank credit facilities. Superior’s reported financial instruments’ sensitivities are consistent as at December
31, 2024 and December 31, 2023.
Equity Price Risk
Equity price risk is the risk of volatility in earnings as a result of volatility in Superior’s share price. Superior
has equity price risk exposure to shares that it issues under various forms of share-based compensation
programs, which affect earnings when outstanding units are revalued at the end of each reporting period.
Superior uses equity derivatives to manage volatility derived from its share-based compensation program.
Effective January 1, 2024, Superior began using hedge accounting to reduce the volatility in earnings (loss)
related to the fair value of the share-based compensation programs and its equity derivatives.
As at December 31, 2024, Superior estimates that a 10% increase in its share price would have resulted in
a $1.5 million increase in earnings due to the revaluation of equity derivative contracts and a decrease in
earnings of $1.0 million due to the revaluation of the underlying long-term incentive plan.
Superior’s financial instruments’ sensitivities to changes in interest rates and various commodity prices and
the resulting impact to net earnings are detailed below:
(in millions)
2024
Impact to net earnings of a 0.5% change in interest rates
+/- 3.3
Impact to net earnings of a $0.10/litre change in the price of heating oil and WTI
+/- 0.8
Impact to net earnings of a $0.04/litre change in the price of propane
+/- 7.9
The calculation of Superior’s sensitivity to changes in foreign currency exchange rates, interest rates
and various commodity prices represent the change in fair value of the financial instrument without
consideration of the value of the underlying variable, such as the underlying customer contracts. The
recognition of the sensitivities identified above would have affected Superior’s unrealized gain or loss on
financial instruments and would not have had a material impact on Superior’s cash flow from operations.
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1 7 . I N C O M E T A X E S
Consistent with prior periods, Superior recognizes a provision for income taxes for its subsidiaries that are
subject to current and deferred income taxes, including Canadian, U.S. Hungarian, and Luxembourg income
tax.
The income taxes differ from the amount computed by applying the corporate Canadian federal-provincial
enacted statutory rate for 2024 of 25.88% (2023 – 26.01%). The reasons for these differences are as follows:
2024
2023
Net (loss) earnings
(17.9)
57.6
Income tax expense
40.5
26.1
Earnings before income taxes
22.6
83.7
Computed income tax expense
5.8
21.8
Changes in effective foreign tax rates
(2.1)
(11.8)
Changes in tax rates
(0.1)
(0.7)
Non-deductible costs and other
16.5
13.3
Adjustments in respect of prior years
0.1
(9.5)
Change in unrecognized deductible temporary differences
19.9
12.8
Other
0.4
0.2
Income tax expense
40.5
26.1
Income tax expense for the years ended December 31, 2024 and 2023 comprises of the following:
2024
2023
Current income tax expense
Current income tax charge
28.1
18.7
Adjustments in respect of prior years
(1.2)
(2.0)
Total current income tax expense
26.9
16.7
Deferred income tax expense
Relating to origination and reversal of temporary differences
(7.9)
3.8
Changes in tax rates
0.1
0.2
Adjustments in respect of prior years
1.1
(7.5)
Change in unrecognized deductible temporary differences
19.9
12.2
Other
0.4
0.7
Total deferred income tax expense
13.6
9.4
Income tax expense
40.5
26.1
Notes to the Consolidated Financial Statements
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Superior Plus
Deferred tax for the years ended December 31, 2024, and 2023 comprises of the following:
December 31, 2024
Opening
Balance
(Credited)
Charged to
net earnings
(continuing
operations)
(Credited)
Charged OCI &
Equity
(Credited)
Charged
Acquisitions/
Dispositions
Foreign
Exchange
Differences
Ending
Balance
Property, plant and equipment
(344.7)
22.8
–
–
9.0
(312.9)
Reserves & employee benefits
24.0
(3.8)
–
–
(0.4)
19.8
Provisions
2.3
–
–
–
–
2.3
Lease liabilities
48.1
(2.9)
–
–
(1.4)
43.8
Borrowings
5.1
3.0
–
–
(0.1)
8.0
Financing fees
8.3
(3.3)
–
–
(0.6)
4.4
Basis difference in investments
(3.7)
3.4
–
–
0.3
–
Unrealized foreign exchange gains (losses)
2.2
(0.1)
0.3
–
(0.1)
2.3
Scientific research and development
12.2
(0.1)
–
–
(0.9)
11.2
Investment tax credits, net of tax
20.2
(1.7)
–
–
(1.7)
16.8
Non-operating losses
78.2
0.7
–
–
(1.4)
77.5
Capital losses
3.7
(3.3)
–
–
(0.3)
0.1
Other
0.1
(28.3)
–
–
(0.3)
(28.5)
Total
(144.0)
(13.6)
0.3
–
2.1
(155.2)
December 31, 2023
Opening
Balance
(Credited)
Charged to
net earnings
(continuing
operations)
(Credited)
Charged OCI &
Equity
(Credited)
Charged
Acquisitions/
Dispositions
Foreign
Exchange
Differences
Ending
Balance
Property, plant and equipment
(275.5)
11.8
–
(80.0)
(1.0)
(344.7)
Reserves & employee benefits
24.4
(2.3)
0.1
1.7
0.1
24.0
Provisions
2.4
(0.1)
–
–
–
2.3
Lease liabilities
43.8
0.7
–
3.3
0.3
48.1
Borrowings
(0.9)
6.3
–
(0.2)
(0.1)
5.1
Financing fees
11.1
(3.1)
–
0.1
0.2
8.3
Basis difference in investments
–
(3.7)
–
–
–
(3.7)
Unrealized foreign exchange gains (losses)
11.2
(9.1)
–
(0.1)
0.2
2.2
Scientific research and development
13.9
(2.0)
–
–
0.3
12.2
Investment tax credits, net of tax
32.2
(12.8)
–
–
0.8
20.2
Non-operating losses
64.4
1.1
–
12.5
0.2
78.2
Capital losses
–
3.7
–
–
–
3.7
Other
–
0.3
–
–
(0.2)
0.1
Total
(73.0)
(9.2)
0.1
(62.7)
0.8
(144.0)
Deferred taxes reported in the two preceding tables are presented on a functional basis while deferred taxes reported on the consolidated
balance sheets are on a legal-entity basis.
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The net deferred income tax liability relates to the following tax jurisdictions as at December 31, 2024
and 2023:
2024
2023
Canada
(39.2)
(31.0)
U.S.
(116.0)
(113.0)
Total net deferred income tax liability
(155.2)
(144.0)
Superior has available to carry forward the following as at December 31, 2024 and 2023:
2024
2023
Canadian investment tax credits
25.1
34.6
Canadian scientific research expenditures
49.5
53.4
Canadian non-capital losses
79.2
83.1
Canadian capital losses
30.3
72.8
Canadian interest deduction – Restricted interest and financing expense
27.4
–
U.S. non-capital losses
93.3
155.0
U.S. interest deduction – 163(j)
180.4
140.3
The federal and provincial investment tax credits and restricted interest and financing expense available to
reduce future years’ taxable income expire as follows:
Canada
2025
5.4
2026
5.9
2027
6.9
2028
3.7
Thereafter
30.6
Total
52.5
The Canadian scientific research expenditures, U.S. interest deduction – 163(j), Canadian capital losses and
Canadian interest deduction may be carried forward indefinitely. The Canadian and U.S. non-capital loss
carryforwards are all due to expire beyond 2028.
As at December 31, 2024, Superior had $67.5 million of non-capital losses (2023 – $67.5 million) and
$13.7 million of capital losses (2023 – $40.8 million) for which no deferred tax asset was recognized.
As at December 31, 2024, the company evaluated the realizability of its deferred tax assets, related to the
total excess deductible temporary differences by legal entity. As a result of changes in tax law, the Company
determined that these deductible temporary differences would not be fully utilized in the near term. As
a result, the Company derecognized $28.3 million of deferred tax assets, which was reflected in income
tax expense for the period. For all other deferred tax assets, it is probable that the asset will be realized
through a combination of future reversals of temporary differences and taxable income.
Included in the current income tax, the Company has recorded $1.1 million of Pillar Two income taxes in
Hungary. For the other jurisdictions that Superior operates in, the Pillar Two effective tax rates are either
above the minimum tax rate, or the transitional safe harbor relief will apply.
Notes to the Consolidated Financial Statements
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1 8 . T O T A L E Q U I T Y
Superior is authorized to issue an unlimited number of common shares and an unlimited number of
preferred shares.
Common Shares
The holders of common shares are entitled to dividends if, as and when declared by the Board of Directors,
to one vote per share at shareholders’ meetings, and upon liquidation, dissolution or winding up of Superior
to receive pro rata the remaining property and assets of Superior, subject to the rights of any shares
having priority over the common shares, of which the preferred shares of Superior Plus US Holdings are
outstanding. See Preferred Shares of Superior Plus U.S. Holdings below.
Issued Number
of Common
Shares
(Millions)
Total Capital
Attributable
to Common
Shareholders
Equity
Attributable
to Common
Shareholders
As at December 31, 2022
200.7
2,360.2
817.8
Issuance of common shares, net of
issuance costs (Note 3)
48.6
358.8
358.8
Common shares repurchased and cancelled
(0.7)
(6.8)
(5.3)
Net earnings for the year
–
–
38.7
Other comprehensive loss
–
–
(6.3)
Dividends declared to common shareholders
–
–
(126.4)
As at December 31, 2023
248.6
2,712.2
1,077.3
Common shares repurchased and cancelled
(10.2)
(85.5)
(47.0)
Net loss for the year
–
–
(36.8)
Other comprehensive loss
–
–
12.5
Dividends declared to common shareholders
–
–
(105.5)
Adjustment for APP Liability
–
–
(14.7)
As at December 31, 2024
238.4
2,626.7
885.8
Superior’s prior normal course issuer bid terminated on November 9, 2024 and on November 11, 2024,
another normal course issuer bid (the “NCIB”) with respect to its common shares, commenced and will
terminate on the earlier of November 10, 2025, the date Superior has purchased the maximum number
of common shares permitted under the NCIB or the date on which Superior terminates the NCIB in
accordance with its terms. The NCIB permits the purchase of up to 24,117,330 common shares, such
amount representing 10% of the 241,173,300 common shares issued and outstanding as at October 31,
2024 by way of normal course purchases effected through the facilities of the TSX and/or alternative trading
platforms. The NCIB is subject to additional standard regulatory requirements. Furthermore, subject to
certain exemptions for block purchases, the maximum number of common shares that Superior may
acquire on any one trading day is 255,528 common shares, such amount representing 25% of the average
daily trading volume of the common shares of 1,022,112 for the six calendar months prior to the start of
the NCIB. All common shares purchased by Superior under the NCIB will be cancelled.
For the year ended December 31, 2024, 10.2 million common shares were repurchased for $47.0 million
(C$65.6 million), including commission, at a volume weighted average price of $4.57 (C$6.43) per
common share (2023 – 0.7 million common shares repurchased for $5.3 million (C$7.2 million), including
commission, at a volume weighted average price of $7.6 (C$9.79) per common share). The repurchased
shares with a total book value of $85.5 million (C$120.8 million) were immediately cancelled and a credit of
$38.5 million (C$55.2 million) was recorded to deficit. In 2023, repurchased shares with a total book value
of $6.8 million (C$9.2 million) were cancelled and a gain of $1.5 million (C$2 million) was recorded to deficit.
Of the total shares repurchased approximately 1.5 million were purchased under the NCIB that expired
on November 9, 2024 and approximately 8.7 million were purchased under the NCIB that will expire on
November 11, 2025.
Superior has engaged a broker to administer the NCIB. Superior will also enter into an automatic purchase
plan (“APP”) with its broker in relation to the NCIB to facilitate purchases of common shares under the NCIB
at times when Superior normally would not be active in the market due to its own internal trading blackout
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Annual Report 2024
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periods, insider trading rules or otherwise. Pursuant to the APP, from time to time, when Superior is not in
possession of material non-public information about itself or its securities, Superior may, but is not required
to, direct its broker to make purchases of common shares under the NCIB during an ensuing trading
blackout period. Such purchases will be based on trading parameters established by Superior prior to the
trading blackout period in accordance with the rules of the TSX, applicable securities laws and the terms of
the APP. As at December 31, 2024, Superior has instructed its Broker to continue to purchase a maximum
gross amount of C$21.0 million common shares through this APP and has therefore included this amount
in trade and other payables with an offsetting adjustment to deficit. As of February 26, 2025, Superior has
purchased approximately 3.0 million common shares as part of the APP.
Preferred Shares of Superior Plus U.S. Holdings
The preferred shares issued by Superior’s subsidiary (“Preferred Shares”) entitle the holders to a cumulative
dividend of 7.25% per annum through to the end of Superior’s second fiscal quarter in 2027. If dividends
are paid on the common shares, Superior is required to pay the dividend in cash on the Preferred Shares;
otherwise, the Preferred Share dividends can be paid or accrued at Superior’s option. In the event that
Superior declares a dividend on its common shares in excess of C$0.06 per month, the holders of the
Preferred Shares shall be entitled to an equivalent amount. Superior has the option to redeem all, but
not less than all, the Preferred Shares on or after July 13, 2027 with not less than 30 days’ prior written
notice to the holders of the Preferred Shares. The Preferred Shares can be redeemed at $1,000 per share
plus accrued and unpaid dividends. If Superior does not redeem the Preferred Shares, the dividend rate
increases by 0.75% per annum for the next four years to a maximum of 10.25%. If the dividends are not
paid in cash, the cumulative dividend increases by 1.0% per annum to a maximum of 14.25%.
The Preferred Shares may be exchanged, at the holder’s option, into 30 million common shares of Superior
(“Common Shares”), or at Superior’s option, if the volume-weighted average price of Superior’s Common
Shares during the then-preceding 30-consecutive-trading-day period, converted to U.S. dollars at the
applicable exchange rate, is greater than 145% of US$8.67. The exchange price of the Preferred Shares
will be subject to adjustment from time to time in accordance with the terms of the Preferred Shares.
These potential adjustments relate primarily to accrued and unpaid dividends, an increase in or additional
dividends to common shareholders, instances where there is a share split, share consolidation or a
reorganization, the participation rate on the dividend reinvestment plan is greater than 35% and if Common
Shares are issued below market value.
Holders of Preferred Shares will be entitled to vote on an as-exchanged basis for all matters on which
holders of Superior’s Common Shares vote, and to the greatest extent possible, will vote with the holders of
Common Shares as a single class.
In the event of any liquidation, winding up or dissolution of Superior, the holders of Preferred Shares are
entitled to receive prior to, and in preference to, any distribution to the holders of Common Shares an
amount equal to the greater of a liquidation rate per share of $1,400 plus accrued and unpaid dividends or
the amount receivable had the Preferred Shares been converted to Common Shares immediately prior to
the liquidation event. In the event that upon liquidation or dissolution, the assets and funds of Superior are
insufficient to permit the payment to the holders of Preferred Shares of the full preferential amounts, then
the entire assets and funds of Superior legally available for distribution are to be distributed ratably among
the holders of Preferred Shares in proportion to the full preferential amount each is otherwise entitled to
receive. After the distributions described above have been paid in full, the remaining assets of Superior
available for distribution shall be distributed pro-rata to the holders of Common Shares.
Dividends declared to preferred shareholders for the year ended December 31, 2024 were $18.9 million,
(2023 – $18.9 million). As at December 31, 2024 there are 260 thousand preferred shares issued
and outstanding.
Notes to the Consolidated Financial Statements
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Annual Report 2024
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Accumulated Other Comprehensive Earnings
2024
2023
Accumulated other comprehensive earnings
Currency translation adjustment
Balance, beginning of the year
(21.6)
(15.6)
Unrealized foreign currency gains (losses) on translation of
foreign operations
13.4
(6.0)
Balance, end of the year
(8.2)
(21.6)
Actuarial defined benefits
Balance, beginning of the year
0.9
1.2
Actuarial defined-benefit loss
–
(0.4)
Net loss on equity hedges
(1.2)
–
Income tax recovery on other comprehensive earnings (loss)
0.3
0.1
Balance, end of the year
–
0.9
Accumulated other comprehensive earnings, end of the year
(8.2)
(20.7)
Other Capital Disclosure
Additional Capital Disclosure
Superior’s objectives when managing capital are: (i) to maintain a flexible capital structure to preserve its
ability to meet its financial obligations, including potential obligations from acquisitions; and (ii) to safeguard
its assets while maximizing the growth of its businesses and returns to its shareholders.
In the management of capital, Superior includes shareholders’ equity (excluding accumulated other
comprehensive earnings) and current and long-term borrowings. Superior manages its capital structure
and makes adjustments in light of changes in economic conditions and the nature of the underlying
assets. In order to maintain or adjust the capital structure, Superior may adjust the amount of dividends to
shareholders, issue additional share capital, conduct additional borrowing or issue convertible unsecured
subordinated debentures, or conduct new borrowing or issue convertible unsecured subordinated
debentures with different characteristics.
Superior monitors its capital based on the ratio of senior debt outstanding to Earnings before Interest,
Tax, Depreciation, and Amortization (“EBITDA”), as defined by its revolving term credit facility, and the ratio
of total debt outstanding to EBITDA. Superior’s reference to EBITDA as defined by its revolving term credit
facility may be referred to as compliance EBITDA in its other public reports.
Superior is subject to various financial covenants in its credit facility agreements, including senior debt,
total debt to EBITDA ratio and restricted payment tests, which are measured on a quarterly basis. As at
December 31, 2024, Superior was in compliance with all of its financial covenants.
Superior’s financial objectives and strategy related to managing its capital as described above remained
unchanged from the prior year. Superior believes that its debt to EBITDA ratios are within reasonable limits,
in light of Superior’s size, the nature of its businesses and its capital management objectives.
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1 9 . S U P P L E M E N T A L D I S C L O S U R E O F C O N S O L I D A T E D
S T A T E M E N T S O F N E T ( L O S S ) E A R N I N G S
Years Ended December 31
2024
2023
Revenue
Revenue from products(1)
2,200.7
2,346.8
Revenue from the rendering of services
85.8
78.8
Tank and equipment rental
95.8
56.9
2,382.3
2,482.5
Cost of sales
Cost of products and services(2)
(1,083.3)
(1,280.8)
Low value, short-term and variable lease payments
(14.6)
(7.4)
(1,097.9)
(1,288.2)
SD&A
Other expenses in SD&A
(136.4)
(127.4)
Transaction, restructuring and other costs
(13.5)
(37.4)
Employee costs and employee future benefits expense
(446.2)
(408.0)
Distribution and vehicle operating costs
(169.4)
(150.1)
Maintenance and insurance expenses
(70.0)
(60.1)
Depreciation of right-of-use assets
(37.0)
(34.8)
Depreciation of property, plant and equipment
(142.9)
(133.3)
Amortization of intangible assets
(82.7)
(77.4)
Low value, short-term and variable lease payments
(2.4)
(2.4)
(Loss) gain on disposal of assets and impairment
(2.0)
2.9
(1,102.5)
(1,028.0)
Finance expense
Interest on borrowings
(92.2)
(82.3)
Interest on lease liability
(9.6)
(8.5)
Amortization of borrowing fees and other non-cash financing expenses
(4.6)
(1.8)
(106.4)
(92.6)
Loss on derivatives and foreign currency translation of borrowings
Realized loss on financial and non-financial derivatives and foreign currency translation
(5.0)
(38.5)
Unrealized (loss) gain on financial and non-financial derivatives and foreign currency translation
(47.9)
48.5
(52.9)
10.0
Earnings before income taxes
22.6
83.7
Income tax expense
Current income tax expense
(26.9)
(16.8)
Deferred income tax expense
(13.6)
(9.3)
(40.5)
(26.1)
Net (loss) earnings for the year
(17.9)
57.6
(1) Included in revenue from products is the sale of carbon credits of $4.1 million during the year ended December 31, 2024 (2023 –$3.4 million).
(2) During the year ended December 31, 2024, the cost of products and services includes inventories recognized as an expense and inventory write-down of $1060.2 million and
$1.6 million, respectively (2023 – $1,257.5 million and $1.9 million, respectively).
Notes to the Consolidated Financial Statements
88
Annual Report 2024
Superior Plus
2 0 . N E T ( L O S S ) E A R N I N G S P E R S H A R E , B A S I C
A N D D I L U T E D
Years Ended December 31
Net (Loss) earnings per share
2024
2023
Basic
Net (Loss) earnings for the year attributable to common shareholders
(36.8)
38.7
Dividends declared to common shareholders
105.5
126.4
Total (Loss) earnings allocated to common shareholders
(36.8)
38.7
Weighted average number of shares outstanding (millions) – basic
247.7
229.0
Net (Loss) earnings per share attributable to common shareholders
$(0.15)
$0.17
Diluted
Net (Loss) earnings for the year attributable to common shareholders
assuming Preferred Shares convert
(17.9)
57.6
Weighted average number of Common Shares outstanding (millions)
assuming Preferred Shares convert
277.7
259.0
$(0.06)
$0.22
Net (Loss) per share attributable to common shareholders
$(0.15)
$0.17
Superior uses the two-class method to compute net earnings per common share attributable to common
shareholders because Superior’s Preferred Shares are participating equity securities. For the purpose
of computing earnings (loss) per share, the Preferred Shares are considered participating because
they contractually entitle the holders to participate in dividends with ordinary shares according to a
predetermined formula (Note 18). The two-class method requires earnings (loss) for the period to be
allocated between Common Shares and Preferred Shares based upon their respective rights to receive
distributed and undistributed earnings.
Under the two-class method, the basic and diluted earnings and loss per share are computed as follows:
a) Earnings or loss attributable to Superior’s common shareholders is adjusted (earnings reduced and a
loss increased) by the amount of dividends declared in the period for each class of shares and by the
contractual amount of dividends that must be paid for the period.
b) The remaining earnings or loss is allocated to Superior’s Common Shares and participating equity
instruments to the extent that each instrument shares in earnings as if all of the earnings or loss for
the period had been distributed. The total earnings or loss allocated to each class of equity instrument
is determined by adding together the amount allocated for dividends and the amount allocated for a
participation feature.
c) The total amount of earnings or loss allocated to each class of equity instrument is divided by the
weighted-average number of outstanding instruments (and dilutive potential common shares for diluted
earnings per share) to which the earnings are allocated to determine the earnings (loss) per share for
the instrument.
No such adjustment to earnings is made during periods with a net loss, as the holders of the Preferred
Shares have no obligation to fund losses. The two-class equity method is performed in each period
presented in reference to that period’s earnings or loss. Consequently, the sum of the four quarters’
earnings (loss) per share data will not necessarily equal the annual earnings (loss) per share data.
89
Annual Report 2024
Superior Plus
2 1 . D I S A G G R E G A T I O N O F R E V E N U E
Revenue is disaggregated by primary geographical market, type of customer and major product and
service lines.
For the Year Ended December 31, 2024
Canada
U.S. Inter-segment
Total
Revenue from delivery of propane and
other fuels
838.5
1,376.3
(335.3)
1,879.5
Revenue from delivery of CNG, RNG
and hydrogen
67.7
253.5
–
321.2
Revenue from services
21.9
63.9
–
85.8
Tank and equipment rental
20.3
75.5
–
95.8
Total revenue
948.4
1,769.2
(335.3)
2,382.3
For the Year Ended December 31, 2023
Canada
U.S.
Inter-segment
Total
Revenue from delivery of propane and
other fuels
936.3
1,629.3
(390.3)
2,175.3
Revenue from delivery of CNG, RNG
and hydrogen(1)
31.3
140.2
171.5
Revenue from services
21.4
57.4
–
78.8
Tank and equipment rental
12.9
44.0
–
56.9
Total revenue
1,001.9
1,870.9
(390.3)
2,482.5
2 2 . S H A R E - B A S E D C O M P E N S A T I O N
Restricted and Performance Shares
Under Superior’s long-term incentive program, restricted shares (“RSs”), performance shares (“PSs”) and/
or director shares (“DSs”) can be granted to directors, senior officers and employees of Superior. All three
types of shares entitle the holder to receive cash compensation in relation to the value of a specified
number of underlying notional shares. RSs vest evenly over three years from the grant date, except for RSs
issued to directors, which vest three years from the grant date. Payments are made on the anniversaries
of the RSs to the holders entitled to receive them on the basis of a cash payment equal to the value of the
underlying notional shares. PSs vest three years from the grant date and their notional value depends on
Superior’s performance as compared to established benchmarks. DSs vest immediately on the grant date
and payments are made to directors once they resign or retire based on the number of notional shares
outstanding and the value of the shares on that date. Employee compensation expense for these plans is
charged against net earnings or loss over the vesting period of the RSs, PSs, and DSs. The amount payable
by Superior in respect of RSs, PSs and DSs changes as a result of dividends and share price movements.
The fair value of all the RSs, PSs and DSs is equal to Superior’s common share market price and the
divisional notional share price if related to a divisional plan. In the event of an employee termination, any
unvested shares are forfeited on that date.
For the year ended December 31, 2024, total compensation expense related to RSs, PSs and DSs was
$3.5 million (2023 – $3.9 million recovery). Settlements during the year ended December 31, 2024 under
the long-term incentive plan were completed at a weighted average price of C$9.66 per share (2023 –
C$11.26 per share) for RSs, C$9.74 per share (2023 – C$10.61 per share) for PSs and C$6.43 per share
(2023 – C$10.34) for DSs. For the year ended December 31, 2024, the total carrying amount of the liability
related to RSs, PSs and DSs was $10.0 million (2023 – $10.6 million).
Notes to the Consolidated Financial Statements
90
Annual Report 2024
Superior Plus
The movement in the number of shares under the long-term incentive program was as follows:
2024
2023
RSs
PSs
DSs
Total
RSs
PSs
DSs
Total
Opening number
of shares
1,026,286
1,038,994
909,263
2,974,543
541,356
847,440
807,712
2,196,508
Granted
1,153,209
613,619
265,525
2,032,353
1,008,160
672,953
161,544
1,842,657
Dividends reinvested
122,317
105,998
76,705
305,020
53,358
63,271
42,505
159,134
Forfeited
(470,014)
–
–
(470,014)
(249,277)
(135,243)
–
(384,520)
Vested and settled
(267,354)
(453,950)
(117,682)
(838,986)
(327,311)
(409,427)
(102,498)
(839,236)
Ending number
of shares
1,564,444
1,304,661
1,133,811
4,002,916
1,026,286
1,038,994
909,263
2,974,543
Superior entered into equity derivative contracts in order to manage the volatility and costs associated with its share-based compensation
plans. As at December 31, 2024, Superior had outstanding notional values of C$35.1 million (2023 – C$29.2 million) of equity derivative
contracts at an average share price of C$10.46 (2023 – C$11.03). See Note 16 for further details.
2 3 . S U P P L E M E N T A L D I S C L O S U R E O F N O N - C A S H
O P E R A T I N G W O R K I N G C A P I T A L C H A N G E S A N D O T H E R
Years Ended December 31
2024
2023
Changes in non-cash operating working capital and other
Trade and other receivables, and prepaids and deposits
36.9
195.2
Inventories
13.7
20.9
Trade and other payables and other liabilities
(80.7)
(79.3)
(30.1)
136.8
2024
2023
Changes in liabilities arising from financing activities
Balance as at January 1
1,874.1
1,585.6
Net advances from revolving term bank credits and other debt
90.4
90.2
Non-cash finance expense
2.8
3.5
Net deferred consideration payments and additions from acquisitions
(9.3)
(1.0)
Lease additions net of repayments and other change in leases
(10.0)
15.7
Debt issue costs
–
(1.7)
Other, including foreign exchange
(78.9)
181.8
Balance as at December 31
1,869.1
1,874.1
91
Annual Report 2024
Superior Plus
2 4 . R E L A T E D - P A R T Y T R A N S A C T I O N S A N D
A G R E E M E N T S
Remuneration of Directors and Other Key Management Personnel
The key management personnel of Superior consist of executives of Superior and presidents of Superior’s
business segments.
The remuneration paid to directors and other members of key management personnel over the past two
years is as follows:
2024
2023
Short-term employee benefits(1)
5.8
8.9
Termination and other benefits
–
1.7
Share-based payments
4.8
8.9
10.6
19.5
(1) Short-term employee benefits paid to directors and other members of key management personnel include salaries and bonuses.
2 5 . G R O U P E N T I T I E S
Significant Subsidiaries as at December 31, 2024
Country of Organization
Common Shares Ownership
Interest (Direct and Indirect)
SP Reinsurance Company Limited
Bermuda
100%
Superior Plus LP
Canada
100%
Superior Gas Liquids Partnership
Canada
100%
Superior General Partner Inc.
Canada
100%
Superior International Inc.
Canada
100%
Superior Plus Canada Financing Inc.
Canada
100%
Stittco Utilities NWT Ltd.
Canada
100%
Stittco Utilities Man Ltd.
Canada
100%
Cal-Gas Inc.
Canada
100%
Certarus Ltd.
Canada
100%
Superior Hungary Kft
Hungary
100%
Superior Luxembourg Sàrl
Luxembourg
100%
Certarus (USA) Ltd.
U.S.
100%
Superior Plus US Holdings Inc.(1)
U.S.
100%
Superior Plus US Financing Inc.(1)
U.S.
100%
Superior Plus US Capital Corp.(1)
U.S.
100%
Superior Plus Energy Services Inc.(1)
U.S.
100%
NGL Propane, LLC(1)
U.S.
100%
Osterman Propane, LLC(1)
U.S.
100%
Sheldon Gas Company(1)
U.S.
100%
Sheldon Oil Company(1)
U.S.
100%
Sheldon United Terminals, LLC(1)
U.S.
100%
Central Coast Propane, Inc.(1)
U.S.
100%
Western Propane Services(1)
U.S.
100%
Services Group, Inc.(1)
U.S.
100%
Kamps Propane, Inc.(1)
U.S.
100%
ACME Propane, Inc.(1)
U.S.
100%
Kiva United Energy, Inc.(1)
U.S.
100%
(1) As disclosed in Note 18, Superior Plus US Holdings Inc. has issued 260,000 Preferred Shares to a third party, which are exchangeable
into common shares of Superior. If converted, these Preferred Shares represent 11% of the common shares of Superior. Superior
Plus US Holdings Inc. owns 100% of the common shares of these entities either directly or indirectly.
Notes to the Consolidated Financial Statements
92
Annual Report 2024
Superior Plus
2 6 . R E P O R T A B L E S E G M E N T I N F O R M A T I O N
Superior operates four operating segments: U.S. Propane, Canadian Propane, Wholesale Propane and CNG. This is consistent with
Superior’s internal reporting and organization structure and how the Chief Operating Decision Maker, the President and Chief Executive
Officer, reviews the operating results, assesses performance and makes capital allocation decisions. Generally, these divisions are split
between customer and product type, being wholesale, retail and natural gas. Retail is further split by customers in the U.S. and Canada.
Segment information is presented below. In the tables below, income tax recovery and expense are not allocated to the segments.
Information by geographical region is provided in Note 27 of these audited consolidated financial statements.
Year Ended December 31,
2024
U.S.
Propane
Canadian
Propane
Wholesale
Propane
CNG Corporate
Total
Segments
Inter-
segment
Total Consolidated
Revenue
External customers
1,037.4
512.8
401.2
430.9
–
2,382.3
–
2,382.3
Inter-segment
–
15.3
320.0
–
–
335.3
(335.3)
–
Total revenue
1,037.4
528.1
721.2
430.9
–
2,717.6
(335.3)
2,382.3
Cost of sales (includes
products and services)
(462.4)
(276.4)
(644.8)
(49.6)
–
(1,433.2)
335.3
(1,097.9)
Gain(loss) on derivatives
included in segment
profit (loss)(1)
1.6
–
0.1
–
(6.2)
(4.5)
–
(4.5)
SD&A excluding costs
identified below
(358.1)
(169.4)
(44.3)
(233.1)
(19.5)
(824.4)
–
(824.4)
Segment profit (loss)
218.5
82.3
32.2
148.2
(25.7)
455.5
–
455.5
Depreciation included in SD&A
(54.3)
(31.9)
(2.8)
(53.8)
(0.1)
(142.9)
–
(142.9)
Depreciation of right-of-use
assets included in SD&A
(18.1)
(8.7)
(4.7)
(5.1)
(0.4)
(37.0)
–
(37.0)
Amortization of intangible
assets included in SD&A
(45.9)
(14.6)
(5.9)
(16.1)
(0.2)
(82.7)
–
(82.7)
Transaction, restructuring and
other costs included in SD&A
(5.6)
(5.3)
(0.4)
(0.8)
(1.4)
(13.5)
–
(13.5)
(Loss) gain on disposal of
assets and impairment
included in SD&A
(1.3)
(0.3)
(0.6)
0.2
–
(2.0)
–
(2.0)
Finance expense
(6.0)
(3.1)
(1.4)
(1.4)
(94.5)
(106.4)
–
(106.4)
Gain (loss) on derivatives and
foreign currency translation
of borrowings excluded from
segment profit (loss)
6.3
–
1.1
0.7
(56.5)
(48.4)
–
(48.4)
Earnings (loss) before
income taxes
93.6
18.4
17.5
71.9
(178.8)
22.6
–
22.6
Income tax expense
(40.5)
Net loss for the year
(17.9)
(1) Management includes the realized gain (loss) on commodity derivatives and the unrealized gain (loss) on equity derivatives in the determination of segment profit (loss).
Other realized gain (loss) on derivatives is excluded from segment profit (loss) as well as foreign currency forward and option derivative contracts, refer to the financial
instruments Note 11 for more details.
93
Annual Report 2024
Superior Plus
Year Ended
December 31, 2023
U.S.
Propane
Canadian
Propane
Wholesale
Propane
CNG Corporate
Total
Segments
Inter-
segment
Total Consolidated
Revenue
External customers
1,182.6
579.7
489.9
230.3
–
2,482.5
–
2,482.5
Inter-segment
–
17.7
372.6
–
–
390.3
(390.3)
–
Total revenue
1,182.6
597.4
862.5
230.3
–
2,872.8
(390.3)
2,482.5
Cost of sales (includes
products and services)
(568.2)
(320.5)
(753.4)
(36.4)
–
(1,678.5)
390.3
(1,288.2)
Loss on derivatives included
in segment profit (loss)(1)
(21.4)
–
(10.3)
–
–
(31.7)
–
(31.7)
SD&A excluding costs
identified below
(369.7)
(177.9)
(51.8)
(123.4)
(25.2)
(748.0)
–
(748.0)
Segment profit (loss)
223.3
99.0
47.0
70.5
(25.2)
414.6
–
414.6
Depreciation included in SD&A
(63.8)
(30.3)
(2.7)
(36.4)
(0.1)
(133.3)
–
(133.3)
Depreciation of right-of-use
assets included in SD&A
(18.5)
(9.6)
(4.4)
(2.1)
(0.2)
(34.8)
–
(34.8)
Amortization of intangible
assets included in SD&A
(48.2)
(13.9)
(5.8)
(9.2)
(0.3)
(77.4)
–
(77.4)
Transaction, restructuring and
other costs included in SD&A
(11.6)
(2.1)
(0.5)
(0.4)
(22.8)
(37.4)
–
(37.4)
Gain (loss) on disposal of
assets included in SD&A
7.4
(3.9)
0.2
(0.8)
–
2.9
–
2.9
Finance expense
(7.5)
(2.7)
(0.7)
2.7
(84.4)
(92.6)
–
(92.6)
Gain (loss) on derivatives and
foreign currency translation
of borrowings excluded from
segment profit (loss)
17.5
–
5.9
–
18.3
41.7
–
41.7
Earnings (loss) before
income taxes
98.6
36.5
39.0
24.3
(114.7)
83.7
–
83.7
Income tax expense
(26.1)
Net earnings for the year
57.6
(1) Management excludes realized gain (loss) on foreign currency forwards as a result of adopting the US dollar as its reporting currency. This differs from the current period as a
result of adopting hedge accounting in 2024.
Notes to the Consolidated Financial Statements
94
Annual Report 2024
Superior Plus
Net Working Capital, Total Assets, Total Liabilities and Capital Expenditures
U.S. Propane
Canadian
Propane
Wholesale
Propane
CNG
Corporate
Total
As at December 31, 2024
Net working capital(1)
(25.4)
40.3
9.6
39.0
(50.8)
12.7
Total assets
1,799.5
651.1
251.9
915.5
68.5
3,686.5
Total liabilities
426.7
111.3
122.5
137.6
1,742.6
2,540.7
As at December 31, 2023
Net working capital(1),(2)
(20.8)
41.4
(15.8)
35.2
(80.5)
(40.5)
Total assets(2)
1,910.6
713.0
293.1
936.4
54.0
3,907.1
Total liabilities(2)
457.4
120.7
151.5
136.6
1,703.6
2,569.8
Capital expenditures for the year ended
December 31, 2024
Purchase of property, plant and
equipment and intangible assets
25.2
33.9
2.1
98.3
0.9
160.4
Vehicle lease additions
3.2
9.1
–
4.9
–
17.2
Capital expenditures excluding other
lease liabilities
28.4
43.0
2.1
103.2
0.9
177.6
Other lease additions, net of terminated leases
0.9
0.5
1.0
5.4
4.0
11.8
Proceeds on disposal of property, plant and
equipment
(15.1)
(1.3)
(0.2)
(1.7)
–
(18.3)
Total net capital expenditures
14.1
42.2
2.9
106.9
4.9
171.0
Capital expenditures for the year ended
December 31, 2023(2)
Purchase of property, plant and equipment
and intangible assets
39.5
42.7
4.4
61.7
0.1
148.4
Vehicle lease additions
11.3
10.5
1.5
2.7
–
26.0
Capital expenditures excluding other
lease liabilities
50.8
53.2
5.9
64.4
0.1
174.4
Other lease additions
2.9
8.6
4.8
0.1
–
16.4
Proceeds on disposal of property, plant
and equipment
(20.4)
(31.5)
(0.2)
(1.4)
–
(53.5)
Total net capital expenditures
33.3
30.3
10.5
63.1
0.1
137.3
(1) Net working capital is composed of trade and other receivables, prepaids and deposits, and inventories, less trade and other
payables, contract liabilities and dividends payable.
(2) Restated, see Note 2(b).
95
Annual Report 2024
Superior Plus
2 7 . G E O G R A P H I C A L I N F O R M A T I O N
U.S.
Canada
Other
Total
Consolidated
Revenue for the year ended December 31, 2024
1,769.2
613.1
–
2,382.3
Property, plant and equipment as at December 31, 2024
526.6
690.0
–
1,216.6
Right-of-use assets as at December 31, 2024
103.5
72.6
–
176.1
Intangible assets as at December 31, 2024
252.9
119.1
–
372.0
Goodwill as at December 31, 2024
1,018.6
385.8
–
1,404.4
Total assets as at December 31, 2024
2,208.9
1,457.9
19.7
3,686.5
Revenue for the year ended December 31, 2023
1,870.9
611.6
–
2,482.5
Property, plant and equipment as at December 31, 2023
567.6
705.5
–
1,273.1
Right-of-use assets as at December 31, 2023
118.2
71.4
–
189.6
Intangible assets as at December 31, 2023
312.9
169.3
–
482.2
Goodwill as at December 31, 2023
1,025.0
418.2
–
1,443.2
Total assets as at December 31, 2023
2,327.8
1,554.8
24.5
3,907.1
96
Annual Report 2024
Superior Plus
Corporate Information
C O R P O R A T E I N F O R M A T I O N
Board of Directors
Catherine (Kay) M. Best
Director
Calgary, Alberta
Patrick (Pat) E. Gottschalk
Director
Philadelphia, Pennsylvania
Jennifer M. Grigsby
Director
Oklahoma City, Oklahoma
Douglas J. Harrison
Director
Burlington, Ontario
Michael Horowitz
Director
New York, New York
Calvin B. Jacober
Director
Calgary, Alberta
Mary B. Jordan
Director
Vancouver, British Columbia
Allan MacDonald
President and Chief Executive Officer
Toronto, Ontario
David P. Smith
Chairman
Calgary, Alberta
Corporate Officers and Senior
Management
Rick Carron
President, Canadian Propane Distribution
Grier Colter
Executive Vice President and Chief Financial Officer
Darren Hribar
Senior Vice President and Chief Legal Officer
Allan MacDonald
President and Chief Executive Officer
Tommy Manion
Head of U.S. Propane Distribution
Kirsten Olsen
Senior Vice President and
Chief Human Resources Officer
Steve Quinn
Senior Vice President, Portfolio Performance
& Transformation
Ash Rajendra
Vice President and Chief Information Officer
Shawn Vammen
Senior Vice President, Wholesale
Propane Distribution
Dale Winger
President, Certarus
Superior Plus
97
Annual Report 2024
B U S I N E S S A N D S H A R E H O L D E R I N F O R M A T I O N
Superior Plus Corp.
155 Wellington St. West
Suite 3610
Toronto, Ontario
M5V 3H1
Telephone: 416-345-8050
Facsimile: 416-340-6030
Toll Free: 1-866-490-PLUS (7587)
Investor-relations@SuperiorPlus.com
www.superiorplus.com
U.S. Propane Distribution
Superior Plus Propane
650 E Swedesford Rd.
Suite 300
Wayne, Pennsylvania 19087
Toll Free: 1-855-804-3835
Canadian Propane Distribution
Superior Propane
55 Standish Court
Suite 620
Mississauga, Ontario L5R 4B2
Toll Free: 1-877-873-7467
Fax: 1-877-730-5575
Wholesale Propane Distribution
Superior Gas Liquids
308 – 4 Avenue SW
Suite 2900
Calgary, Alberta T2P 0H7
Toll Free: 1-888-849-3525
Certarus
Certarus Ltd.
308 – 4 Avenue SW
Suite 3400
Calgary, Alberta T2P 0H7
Toll Free: 1-888-832-2004
Trustee and Transfer Agent
Computershare Trust Company of Canada
Suite 600, 530 – 8 Avenue SW
Calgary, Alberta T2P 3S8
or:
Suite 800, 100 University Avenue
Toronto, Ontario M5J 2Y1
Toll Free: 1-800-564-6253
Website: www.computershare.com/ca
Auditors
Ernst & Young LLP
100 Adelaide Street West
Toronto, Ontario M5H 0B3
Annual and Special Meeting of
Shareholders
The Corporation’s Annual and Special Meeting of
Shareholders will be held virtually on Tuesday,
May 13, 2025 at 4:00 p.m. (EDT).
Toronto Stock Exchange (TSX) Listings
SPB: Superior Plus Corp. shares
Business and Shareholder Information
2024
2023
Period
High
Low
Close
Volume
High
Low
Close
Volume
First Quarter
$10.36
$9.05
$10.09
70,856,248
$11.62
$10.06
$11.14
58,447,680
Second Quarter
$10.10
$8.76
$8.87
77,937,673
$11.20
$9.09
$9.49
89,388,570
Third Quarter
$8.85
$7.39
$7.44 103,291,690
$10.90
$9.30
$10.26
86,575,055
Fourth Quarter
$7.57
$5.15
$6.39 168,870,971
$10.38
$9.08
$9.63
66,145,348
Year
$10.36
$5.15
$6.39 420,956,582
$11.62
$9.08
$9.63 300,556,653
Superior Plus Share Price and Volumes – TSX
Quarterly high, low, close and volumes for 2024 and 2023. The table below sets forth the high and low prices, as well as the volumes, for the
shares as traded on the TSX, on a quarterly basis.
Superior Plus Corp.
155 Wellington St. West
Suite 3610
Toronto, Ontario M5V 3H1
Tel: 416-345-8050
Fax: 416-340-6030
Toll-Free: 1-866-490-PLUS (7587)
For more information send your enquiries to:
investor-relations@superiorplus.com
superiorplus.com