SGU - Earnings call transcript Q3 2021

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

Operator

Good morning, and welcome to the Star Group Third Quarter 2021 Results Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Advisor. 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 that cause implied and or statements be materially conference historical All forward-looking call statements this statements included are of facts other statements. in than

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

Jeff Woosnam

thank our year-to-date quarter third and joining to Chris, us results. good for Thanks, you morning, and fiscal and everyone, discuss

the of positive less a volume negative, fiscal of than time compared last warmer year as and heating over of typically impacted both quarter the second factors, the coldest on oil New the heating is period. Metropolitan result record Star to of third versus XXXX, area. XX% a The results season, years home prior which and a mix significantly York fell the within temperatures the summer for was While propane active XX

previously equipment from and profit However, petroleum sales revenue by of have related we HVAC along increased areas impacted products. begun the benefited installation with normalize, gross to as higher pandemic other

Our positive also additional service the was of returning than expense to a by level normal revenues maintenance. but a as associated with increased off-season traditional year-over-year, this heating development more as system offset well more workload more

took in all training also been in of quarter staff, somewhat We XXXX. of had the for technical to opportunity our additional which field paused invest the third fiscal

all more Given in came performance historical our levels. factors, and anticipated largely in as with line of these

in Although aggregate, performing year acquisitions on we currently we in not the working in quarter, are did well new the earlier are tuck-in complete the additional acquired several attractive we businesses any and opportunities.

Our decreased an acquisition growth the the in strategy. Through fiscal $X.X important adjusted by period of same of part XXXX. million versus X first EBITDA year, program months our remains the

whatever taking With I'll prepared for are confident and that the in inflationary quarters presented. heating that, quarter. are to the and seasonal million our Rich? and the down, while of the timing next fourth Rich warmer degree to pleased additional weather a steps particularly remain comments rising face third certain performance XXXX challenges we winds fiscal due of with Star proceeds as positioned on call a I we As turn in over slightly and well through business, insurance costs are days. temperatures, the the opportunities for and season reduction overall $X.X

Rich Ambury

morning, good and Jeff, Thanks, everyone.

attrition significantly and quarter last warmer by warmer to XX more the XX% year. propane customer home the million as quarter, XX% than third XX For million offset the of volume the heating than for net provided gallons XXXX Temperatures by acquisitions. or our oil gallons were impact decreased volume temperatures additional and fiscal

quarter third was other by XX coldest rebounded years. increased the XXXX million COVID-XX's X activity. products million mentioned, gallons on sold petroleum Jeff certain XX gallons of volume the over fiscal As sectors The second of economic the on last to impact record as from

to Our and by we product increase branches in to acquisitions gross as volumes expense costs $X and to to $XX XX% propane a business. $XX the the in million profit heating home largely decreased million rose from million due Delivery the expected, due $XX or million lower sold. slight within base due additional oil

impact in of $XX $XX increased adjusted decrease primarily EBITDA. lower improved offset gallon and million for propane million, from was to propane heating loss million adjusted The quarter declined net more than of to a line margins. third home oil per EBITDA XXXX in the and oil the volumes $XX.X home with as Our levels. more Adjusted by by due historic loss loss a EBITDA heating

our million fiscal other a The more volume in X the the XX oil first million and months of by XXX increased by fiscal petroleum other to or warmer and experienced sold the XX% experienced XXXX, of X% year propane offset gallons factors period X% volume decreased first the at decline or of million more during million offset than from X gallons the the impact to than net for XXX months rebound comparable sales in third but of heating Temperatures attrition For prior customer warmer fuel still gallons than XXXX was XXXX home X% than slightly the were as half products motor quarter. warmer X gallons temperatures, by acquisitions. normal.

decline base Our to as rose income of adjusted a the EBITDA propane million propane operating hedge and by change decline to that, the branch the heating volume. and in acquisitions Adjusted derivative provided increase to million from from from with to $XXX million higher home value our fair did heating million acquisitions home was $X.X Net were offset due the Jeff. and million. base oil a $XXX a in to in lower in and and last volume unchanged propane X% from propane $XX impact per oil million was million product in by weather EBITDA offset benefit by the expenses back oil in as lower and was year of Delivery more than the recorded margins. $X.X and million like or heating And under program million over an favorable just and margins the costs in million, by additional home business, largely operating I'd by $X.X turn call gallon weather decline $X.X decline the rose home $XXX gross profit heating offset benefit $X total of oil expenses by hedge partially $X business. expenses Lower instruments.

Jeff Woosnam

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

Operator

question [Operator private Mark [ph] Savino Instructions] from comes first Our investor. from

Unidentified Analyst

Guys, Any Yes. your about I some. wondering problems was seems It there? receivables. creeping that they're

Rich Ambury

at Absolutely outstanding, XX not. are of When receivables days our look of days -- are last this as days. XX days outstanding sales year, the were our year. of they you And June

a cost oil. in is significant the heating there of home Now increase

you So last this you if versus at will point-to-point look an year. see increase year

Unidentified Analyst

thing... other One great. That's No.

Rich Ambury

actually in last year. better year we We're than shape were this

Unidentified Analyst

people some One labor. how And that to great. I stress get your -- your train that good question -- I is labor and other statements, that is on In that just can and is them. No. there's That's feel going?

Jeff Woosnam

the that make question existing We've a just programs of to market place, positions recruiting and more really improve attractive. has the retention put certainly our no both up. we're for, labor There's workforce number tightened to in of that

try attract find to to And we creative keep valuable ones. to associates turnover so we like to also reduce that businesses, and employee ways have new employees to continue many and the and

only regard we're right the not challenged But business I progress. now. is think that in it think is that So I work in

Unidentified Analyst

for -- program keep give street, forward. come now. these training. sure. truck. for said people. time and an It's And manager I they'll see was always XX And I all a new hard a they're issues, that we big years have our for of moving of UPS example. over up years, a they I know XX having I'll a had lot was now But young And guys I They this a an see you employee I and total. always lot at like you

they'll into You the a never and up. driveway And back back up street. into pull this vehicle XX-foot

-- concerned get that new concerned I have that crazy. could and big it's I with just people so with issue a And get that you accidents problems.

So...

Jeff Woosnam

It's this in constant. inside environment say our has fairly would customer at a point a a employees contact contained training the where of of like as our we've remote I employees, gone really been frankly, things result Well, those partially and contact more and field center pandemic. lot retention really hybrid that to

but difficult, more become it's for programs keep bit a in say don't I had -- training training continue ongoing to pivot so folks. to those And to our we've place little

Unidentified Analyst

since have And reorganization. Okay. I've money. you for a run, since been XXXX, an the guys of hit I sure. lot made home investor

I Keep up next So and we'll maybe work, good the quarter. it. talk appreciate

Jeff Woosnam

very Thank you much.

Operator

from Capital. is XXK Our speaker Michael Prouting next

Michael Prouting

then side, morning. in just the on might allocation I couple And capital X that up a was be this quarter. of the that. questions ticked Just is recollection My And questions. driving curious CapEx what to

without that then far in the for as seems the price of just shares, And First, kind concerned? buy you're on really previewed side, large lot acquisition you any you I'm that potential I second I and last have expecting the wondering, fewer repurchase as stock formula stock Jeff, changes probably higher a like back occurred was see as in the And the acquisitions? seeing quarter, given what quarter. would to is whether pipeline the needle-moving

formula. So what thoughts Rich, adjusting your Jeff, of in that I'm terms just are wondering

Jeff Woosnam

Yes.

the In acquisition terms of -- think question. I

typical In On year. what the in is we've fiscal trailing I'd acquisitions level basis, close of been of total the terms closed fortunate We've so on right enough now that for far activity X. 'XX. see acquisitions, to pretty say of a we on this time XX-month X a much

when we tuck-in today concerned, front are work larger And So get we opportunities. that And tell tomorrow, us. in may one. then the of you to more my there. I just opportunity in significant on to you the going attractive And to you're as been continue them. several we activity can mentioned comments, there's far -- look not I continue opening has seen as never have opportunities know as a

say would now, with right that's in I pretty we are But terms where in mid-summer. that. are pipeline what to seeing it's we our typical used of of So

Rich Ambury

did regard the just we are might the or to we'll stay $X to have the fleet. formula unit as repurchases. with investment the revisit where capital to allocation, with if CapEx, pat in Yes. of we million of With regards in the the And million to but up have Nothing too possibly to in out ordinary, fleet we're and investment plant, some we some other our will. -- additional the about $X you

Operator

[Operator back for I Instructions] This to session. go now our the would like closing question-and-answer Jeff remarks. Woosnam turn concludes to ahead. conference over Please

Jeff Woosnam

taking us fourth for Group. the our forward you Star join Thanks, ongoing you XXXX your with results in thank and today interest to to Well, everybody. December. fiscal We in sharing time look quarter

Operator

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

disconnect. now may You

Star (SGU) 8 Aug 212021 Q3 Earnings call transcript