SGU - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to Star Group’s Fiscal 2020 First Quarter Results Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. Chris Witty, Investor Relations Advisor. ahead. go Please

Chris Witty

good are and Ambury, me the on Financial Thank Woosnam, morning. Chief today Jeff Rich Executive call Officer. you With Officer; Chief and

This a I represent that risks expectations future safe to and now concerning company’s may provide beliefs that would harbor forward-looking like the statement. events conference and statements uncertainties, call include may brief involve and of or be historical implied conference forward-looking actual company’s from different the other this materially than included performance statements facts to statements such in call by statements. performance cause statements. All indicated the are

that expectations have reasonable, to that believes company the statements no expectations forward-looking such in been are correct. Although can assurance give the reflected prove such will it

the on in are company result by call Unless the events law, forward-looking whether Important XXXX. this to subsequent conference company’s company’s the fiscal in XX, All factors Form and could materially written any expectations a the year actual that statements disclosed by XX-K and in cause information, otherwise new the Report to required behalf call. cautionary the their results entirety forward-looking are or Annual conference acting the no update persons or otherwise oral statements. and to September company for or obligation attributable as publicly ended from statements revise of expressly future after date of undertakes qualified its differ this

Jeff over Jeff? call I’d to to Woosnam. the now turn like

Jeff Woosnam

Thanks, Chris, and morning, good everyone.

opportunities. its interesting The of first weather trends, brought quarter challenges and XXXX some fiscal with

efficiency backdrop, focus which Weather contrast XXXX normal, our charge Against and due improving somewhat continued to retention. quarter were operating much overhead to on and to enough While weather for by warmer we December was entire against than in warmer expenses, demand. November a in resulted increasing unnecessary the was than October customer hedge fiscal October contract. temperatures lower reducing necessitate cold this

the continued business. at hold our our in our encouraging quarter of expenses for very the of Star’s end experience business, competitive strengthening I’m and in a customer first base growth in was see even losses the are accomplishment efforts pleased recall, year, and while the customer XXXX This of you for are reduced these million company. approximately in with therefore that in to certainly at XXXX We may we improving reflected began X% the steps $XX.X they the operating combined taking our some had results. the similar evidence customer As we fiscal prominently experienced lower significant by goal year-over-year investment position last the marketplace, towards net quarter fewer the churn more

brought improve extremely which many currently during evaluating the several small completed the proud other we’ve and potential quarter past roughly reduce annualized the and X million We taken it service transactions. Overall, gallons of of year acquisition over I’m steps one to volume cost. with attractive we’re

heating for as up While ability season. last patterns through January the rest the control our warmer ended considerably fluctuating expenses, year tested weather proceed and prepared we remain we further of than normal to

the I’ll over full call comments additional that results. With year Rich turn on quarter the provide to to Rich? and

Rich Ambury

Thanks morning, and everyone. Jeff good

first the and gallons as warmer offset by than well X% attrition other quarter heating For Temperatures XXX than by fiscal first warmer impact XXXX more volume X of normal. factors. to million warmer home weather, was decreased XXXX as and as acquisitions or than the volume propane were from X% oil quarter, our provided of million the and fiscal quarter gallons for the X% net customer additional

regard increase oil a an more in X% margins oil contributed prior in to three of note by December heating that and than year. volume. ending in gallon experienced $XXX set to our conditions home by created did conditions half as margin the not tempered Our Similar per profit during margin increase decrease was offset With and market for and per of decreased market home product or gross heating ending the XXXX months $X.X exist home margins, opportunity XXXX expansion million an three XX, million and propane heating months December in the per versus gallon margins XX, oil expansion. $X.XX our to gallon propane which propane

to the last cost reductions in decline operating branch decrease operating year improve in by acquisitions hedge contract expense $X a reflected than an was to in direct decrease and to volume. offset $X million or $XX $X within in in expense increase cost base related million X% X% from of concierge $XXX program to The to A G&A compared aggregate or in due million of efficiency. million million business. as cost our due our company’s Delivery, we $X $X decreased and level $X as other and continue $XXX by million sizable expense or delivery more the weather additional amount million service XX% X% under reduction million lower million in totaling or

increase recorded credit the again to first in change million first fair change non-cash of the tax impact again year-over-year in of million we favorable a market derivative $XX income Net the to of $XX positive due million to quarter, instruments. million of recorded due million. During in value impact did largely change fiscal the quarter derivative fair in comparison to instruments. the $XX $XX relating $X million value the The charge by was conditions. non-cash fiscal XXXX, By the $XX we overall after

home under the our million per by gallon lower oil more in of and operating by was $XX to as amount Adjusted and the the in lower EBITDA. provided Adjusted decreased increase EBITDA $X EBITDA decreased of $X.X adjusted million acquisitions volume and impact business the a due program heating an hedge base $XXX,XXX margins million weather $X.X in offset of of slight increase expenses. than million while million propane by $XX

the that, over Jeff. to with I’d turn And like to call back

Jeff Woosnam

any this time address questions. have. to At questions phone please for Thanks Operator, you may pleased we’re the open lines Rich.

Operator

ahead. Capital. our Michael Pradine first Instructions] go from [Operator comes question [ph] from Please XXK

Unidentified Participant

on is cliché of a quarter. but was congratulations cost management kind this outstanding. The know I really terrific

Rich Ambury

Thanks.

Jeff Woosnam

Thanks Michael.

Unidentified Participant

I’m seeking terms wondering be of One were also repurchased currently Just authorization the so in the and questions January little in in and a you if in your lower this the any whether the unit was change repurchases repurchase to morning. noticed fourth than stand repurchase calendar program there’s where unit you’ll you - authorization. the bit making couple I increase of quarter

Rich Ambury

private in Sure there purchase. fourth the a was quarter

Unidentified Participant

Right.

Rich Ambury

that the into filed, so entered fourth that was And was quarter number.

probably unit that make running we’ll less we the few change under discuss per have run have a repurchase that forward. to we’re as day the the carve to days We’ll they units making than think have in the unit probably – repurchases I units that and only can the far see, open once same left, in you we’re program. probably period XXX,XXX we repurchasing a up as of what out, what want we and would board coming which be with going probably to out

Unidentified Participant

Okay, terrific.

no like in formula change the words, secret than So or that. anything other there’s

Rich Ambury

the in or no Yes, secret change the formula. sauce

Unidentified Participant

significant quarter just And questions. customer was quick quarter isn’t One Okay, for December this quarter other flat attrition, attrition. the year-over-year although great. on

pipeline there looking going had other forward. was the what it’s acquisition question wondering we And going improvements stage. is expect I forward some outlook in, then the on how whether your see the Just at can to

any If pass I’ll with normal you’re deals else, larger someone seeing to than it and that, thanks. over

Jeff Woosnam

in about made decisions a losses customer losses business. business of in no point ones we’ve in index indicators to therefore the in ultimately number Overall which and internally result our a - Yes, an an churn reduction at question our that reduction driven on be, attrition fact the are focused other the in in Michael retention customer steps as very would look say as in improving and will we net strategy to so wasn’t employing satisfaction results. that customers, that leading are means there’s improvement I taking first it result it we’re we if of – by that many overall. net we There’s really position and that quarter the what things the for customer a we’re has remain hoped XXX% right been and encouraged and that exactly the that reduction we’ve but a the improved so

Unidentified Participant

front. the and acquisition outlook on terrific Okay

Jeff Woosnam

again We’ve say in level I working time this of pretty now busy fruition. that bit time would opening we’re down my different on from hopefully heating on year business and pipeline quarter. right can that slow and my are several running in is one several for been opportunities mentioned can this closed got typical activity in this because I a experience to potential prior transactions things during the attractive we’ve in the year the season, bring little We program as smaller and transaction standpoint their evaluating the just comments. of of sellers

Unidentified Participant

terrific. Okay, work. the up Keep good

Jeff Woosnam

Thank you.

Operator

Instructions] our [Operator questions conference turn remarks. over back to in for would the session. any queue. no Jeffrey concludes are Mr. the question-and-answer This closing more there like to I Woosnam

Jeff Woosnam

for sharing quarter everybody. join us fiscal you in the in thank our today Star taking Well time XXXX Thanks forward your to results look May. you second in to with we Group ongoing interest

Operator

today’s conference. attending This concludes the Thank for you presentation.

You disconnect. now may

Star (SGU) 4 Feb 202020 Q1 Earnings call transcript