SGU - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the Star Group Fiscal 2021 First Quarter Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Moderator. Please go ahead.

Chris Witty

Thank you, and good morning. call and Jeff Officer. Rich the Chief President on Officer; Executive Ambury, me today Woosnam, are and With Chief Financial would provide to now safe I statement. harbor a brief like that by call different performance represent concerning include from events risks the the may involve such indicated uncertainties that conference to company's This forward-looking actual future the expectations performance statements. and may company's beliefs and cause implied and or statements be materially conference historical COVID-XX All forward-looking call statements this statements included to are of of including impact facts other on related those statements, in than company. the the

attributable the the to obligation publicly and cautionary as call. statements entirety update Unless now the Jeff? on by qualified in to I'd Woosnam. or future this other company are reflected company's revise prove actual differ no the whether are like assurance the subsequent the forward-looking statements the the that factors have company fiscal their conference the Although written give the such by acting or results Jeff statements. expectations this required to that call, believes report Form any Important otherwise to forward-looking XXXX, new a over the its information, in of XX, cause to filings company's September in company call disclosed are such and after no XX-K result oral of undertakes could can conference we expectations on from been the statements, events with forward-looking year or will behalf law, persons expressly for expectations annual date correct. turn company's otherwise All reasonable, materially SEC. ended to that

Jeff Woosnam

positioned everyone. new We a and even began pandemic. Chris, well our Thanks, the face in of year good fiscal morning,

weather and on home season heating dampening our a results our reflect COVID-XX somewhat XX.X% propane. impact for heating the has oil normalized, within of warmer footprint, While the demand

operating an temperatures, efficiency to $ level and I'm cost EBITDA our mild roughly discipline, adjusted customer $XX maintained in service. with focus our improving pleased including of high increase providing million million. despite we However, on X.X of a performance overall

Our executing conditions strategy past during is and even period. the be and the X challenges, as been adjust making the better weather we've pandemic. encouraged to to more also hedge other that over Star prepared weather years I business, worked to resilient and able including global designed varying stronger continue

product remained of continues reflection I've of could the As and unusual success report proud late that in our professionalism to located Both of times our the committed in growing team. more approximately the customers this businesses XXX% face efforts X that direct have aggregate annually. of happy serving million companies acquired of existing our mentioned many a gallons be in of well-established circumstances. operating X dedication propane added before, our our ongoing within to December complement who not current to that I employees, be we I'm propane very our footprint some offering.

support additional opportunities plan. strategic evaluate to continue that growth We acquisition our

million we X.X part ongoing plan, as enhances repurchase repurchased unit believe common of we During which the value. units shareholder also quarter, long-term a further our

and As confident to best we line I'm ability continue the XXXX, improving remainder providing customer our fiscal navigate in possible through the results. experience of bottom

results. to Rich? additional I'll provide So call comments the to turn with on Rich that, over the quarter's

Rich Ambury

and Jeff, good morning, everyone. Thanks,

year warmer were offset more as million and than of approximately factors. and to by as from additional our the last than volume or propane other well warmer For temperatures, by as normal. customer XX million XX% was gallons XX than decreased volume acquisitions oil net impact the heating the attrition home quarter, warmer provided XX% Temperatures XX% gallons

oil heating as home million $XX propane gross decline than decreased volume. in profit gallon oil the and heating was propane margins million a in per or XX% $XXX product to $X.XX and by offset home Our more increase by

decreased bad million, there by million XX% by impact a operating was branch reduction Lower $X the debt were delivery or costs were volume. in to our in program. and direct XX% $X.X to Please expenses other of million, to reductions declined or was totaling delivery our $XX due However, hedging also $XX $X.X by the weather million reduced expense million. costs to that our decline note million $X million. and operating insurance due lower $X The expense due

an the an Jeff. net versus of recorded back with in As if a fiscal of home $X.X or I'd lower The over offset in benefit we higher sold. company's $X fair of propane will our charge credit, XXXX oil the a favorable Adjusted or installation expense million gallon prior heating the The December XX, year. $XX for decrease be of a hedge a the volumes improvement XXXX, final the January in under or conversation million and in weather credit million impact lower favorable change higher in Net home from instruments. X depending expenses, and XXXX. the an that, from impact to to through impact of per by service $XX $XX largely oil million. accumulation the of days and And the by hedges value due than EBITDA income operating to degree profitability heating change actual margins, March after-tax weather and any to $XX XX, of to decreased million increased derivative heating impact like on million the propane more turn

Jeff Woosnam

have. please Cole, Thanks, Rich. questions? phone the you pleased At for lines to time, you this we're questions open address any could may

Operator

XX-K first our today Capital. from question with will come Prouting Michael And Instructions] [Operator

Michael Prouting

a and weather good on a quarter Congrats environment. challenging

JeffWoosnam

Thanks.

RichAmbury

Mike. Thanks,

Michael Prouting

questions. of couple a Just

acquisition in Firstly, the on The quarter purchases made side. you reasonably X sizable. were the

winter see up, or So it's interesting the to just season. acquisition picking particularly unusually during activity

that volume shares allocation. just purchased you overall activity And on I'm noticed you question of wondering, lot was additional this share driven trading indicates the you I repurchases just So that or other fewer industry? are then just that. resumption a do if had can going of in I terms deal forward? a think And a the I expectations wondering, or capital insight in your And January. give what in little Rich, into was by price was

Rich Ambury

Sure. that of I side, we're thoughts private unit -- our the same program buying might taxes repurchases program. the been I where by repurchase, might can some think go, the during under units repurchase SEC is capital we income have that the acquisition we're the the that we folks allowed that's conformity rates -- And back quarter, that gain in with regard and and number unit we guess on share did it driven have to on frankly. with

not with comment might maybe, that on And all. So in Jeff, intervening at acquisition? we're you the that, have a

Jeff Woosnam

Yes.

the think is I relatively acquisition steady. staying pipeline

acquisitions Those able we’ve for to working X calendar of the us quality are are and we year evaluate We’re front been obviously excited very high that the now. complete that on we in some feel transactions end to very about businesses. are by continue opportunities we are the of time, X other

a hopefully, it’s sign come. things of to good So

Operator

next with come Our Instructions] [Operator question Mullen will from Laurelton Tim Management.

TimMullen

of program the quarter. changes you'll it? repurchase any Can next you update share to Congrats remind me outstanding to units and terms just in when the

RichAmbury

a continue the to It's in Yes. quiet roughly We under the the plant. changes in but do have units buy. only XX-Q, make have X.X availability we period, to can still we and million

make or for I that a projection, us, would next should don't while which a last XX-Q. the window, we next to that want So be should file us until after the last open

TimMullen

So the then is next following quiet the next period -- ?

Rich Ambury

got but increase we could to we could X.X million could, now, we wanted actually we to month. We if it units outstanding Now increase.

Operator

session. question-and-answer Mr. like will [Operator to Woosnam any our over Instructions] And conference this back turn closing the I'd conclude remarks. for to

Jeff Woosnam

in We Fiscal and forward Quarter sharing look for time Thank the Group. our Second join Okay. interest ongoing in Star us Results taking Thanks, you XXXX today April. to everybody. to your

Operator

for has now today's conference attending you concluded. The presentation. Thank

at lines this now may You disconnect time. your

Chris Witty	IR
Jeff Woosnam	President and CEO
Rich Ambury	CFO
Michael Prouting	10K Capital LLC
Tim Mullen	Laurelton Management

Star (SGU) 4 Feb 212021 Q1 Earnings call transcript