SGU - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Star Group Fiscal 2022 First Quarter Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note 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

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

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

Jeff Woosnam

adjusted of than the warmer XX.X% last EBITDA than year temperatures fiscal were inflationary performance with demand, with in with the in particularly Chris, management deliver that warmer good impacting We of facing first pressures year. quarter Thanks, company negatively pleased of overall strong morning, the certain I'm face overcome Despite shortfall the volume the solid prior able the and and weather-related everyone. expense to were normal X.X% to XXXX. and controls line

Our both losses change the customer further an net our the customer as in focus supporting decrease prior accounts driven in by equally our additions year, customer experience. retention also was as a improved versus almost well as increase in on

In sales. oil the our addition, businesses report as I'm happy that gallons program them acquisition million active to with approximately brought three purchased annual remained X product heating that of during we period

our plan. continue We to support interesting to opportunities strategic growth evaluate

might brought grateful demand am our added in notably, over Most Our many colder weather January to by year to while I recap not despite servicing on who would cases step further the and are over up, hours of cooler willingness address evidence the But how their to past remainder the themselves heating too to well the challenges of season. fiscal of month, our see over XXXX out. opportunities temperatures to for say that, team's dedication call early whatever present play I'll employees, to entirely complete unique our in are encouraged believe to results meet have our Rich. customers. how we turn mentioning to circumstances extended our customers. or positioned the much without we be will With past focused It's was work remained and the the on

Rich Ambury

good Jeff. Thanks, everyone. morning, And

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

warmer well prior than approximately As Jeff XX% as year period for X% mentioned, were warmer quarter the temperatures normal. first XXXX the as fiscal than

impact and propane of profit $XXX the as home offset the million to $X an sold. heating more gross increase Our in volume increased or X% lower oil product than by million margins

our Our of increase position. million to increase which change operating $X.X million did in million Acquisitions million operating related accounted $XX the the by uncertain $X.X operating $X reflecting to XX% hedge by normalization impact expenses higher million product the and weather higher total and wage or cost, of rates of medical increased $X.X costs in expenses. rose of expenses, for premiums business insurance our the base a somewhat

recorded first fiscal value million first non-cash fiscal we quarter the non-cash credit of recorded XXXX, the comparison, change a a fair change our change $XX million. of charge the of relating about million derivatives. During we’ve negative in quarter XXXX, of a the to By $XX or -- $XX in

over gallon decline net million unfavorable operating the our to margins the offset million service derivative to lower by volume the more hedges $XXX,XXX in decreased a and slight instruments. in by $XX.X slightly somewhat higher expenses to And million to change decreased and Jeff. back than after-tax Our was impact higher weather $XX.X the by EBITDA change with in our of due turn of as largely that, unfavorable call per income $XX I’ll impact profitability. Adjusted

Jeff Woosnam

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

Operator

you. Thank

begin session. will this time, At now Instructions] question-and-answer pause the momentarily roster. to our we will [Operator assemble We

from Our first question Management. Laurelton Mullen Please comes go with Tim ahead.

Tim Mullen

terms could could curious the to in we just updates if any Hi. regards when expect I you of give with buyback? was color

Jeff Woosnam

we a for other it What have help the Well, as information can what footnote remaining purchased, are XX-Q the what do and to what outstanding. with? we purchased I we -- we shares have shares in

Tim Mullen

to the what's Would there program? update any existing left be on

Jeff Woosnam

there. and to right it's you XX-Q. if there right Yes, want. it up it in the look you it's And I give can

Tim Mullen

if about when I there just window a see I'm program usually units left. million that that will falling be there's I curious changed? be earnings that Isn't updated. X.X Yes, can mean,

Jeff Woosnam

XXX,XXX and calculation. depending a to Yes, we're around about running XXX,XXX on what's units available, month. We buy the

have. just until us window. we're shares next we this last I buyback And promise historically whether increase going that'll open the can't So the to -- but

Tim Mullen

open sorry, is that -- when And again? window

Jeff Woosnam

quarter. the we That May report would first after be the -- second

Tim Mullen

much. very Thanks Great.

Jeff Woosnam

and First week so. in May

Tim Mullen

you. Thank

Jeff Woosnam

You’re welcome.

Operator

comes Capital. question next with Prouting XXK Our Instructions] go Michael from Please ahead. [Operator

Michael Prouting

you want Yes. I terrific it's on I a cliché know congratulate good Hey, guys of morning. quarter. a kind to that did

board the in [post] conversion across margins, given cycle retention. execution great weather and headwinds cash the and terms also of customer Just

of a couple questions. Just

the long I inflection or remember customer This first forward? Do here Just or you think quarter your point time. an on a customer retention in on starting can see customer best the churn thinking and retention. is we're going what's customer churn to

Jeff Woosnam

the and in in about encouraged, improvement a we've I'm But prior customer in rest only very see to to to see But Mike a the we customer we in at a I'm coming-off also quarter, as training, new customer Yes, reduction we using of work so not talked to with going saw point, customers. improving were seem encouraged a retention the understand how supporting certainly an unfolds. year far we're have additions that. losses as calls. and churn, reduction our to analytics way increase employee better work And technology, the be strong on experience continue results smarter this to really in in and just

encouraging to move things have we'll So certainly see we how progress. unfold forward, as but

Michael Prouting

really call out. and that This I to great, wanted

on long-term small actually have on retention even mentioned can customer value prior dramatic the just customer you've a value changes churn in the As calls, of and company.

progress great that see see really to really, to be and encouraging further progress it's forward. going So

the deals with at I at the to the know the made -- seems been the feel that's raised. allocation, repurchase a this I'll just couple an of right where particular, those I'm give front. for any questions. larger repurchasing terms the little determined in acquisition rate if update repurchase slightly with just the quarters. And you're buyback do you on that repurchase lower program. a already than formula thoughts in that see especially the I'm Just now, any light wondering bit capital point? other And two prior formula. lower of can any transformative all, Thanks. quick you be number close questions, potential given he's shares, given you of if satisfied has to is in outside by But then you curious And of if adjusting of Obviously, wondering

Rich Ambury

– I'll take the

Jeff Woosnam

acquisition. The

Rich Ambury

question the first, to take going I'm Well, Jeff. repurchase

Jeff Woosnam

Sure.

Rich Ambury

can really acquisition we and over I increase much we question? discuss limited can we're how I buy days a the look it's with number want can't back. Jeff There's the calculation. formula that of can It's SEC we nothing what amount guess XX to buyback. back do. We to mean, we shares a a if

Jeff Woosnam

I…. Yes

Michael Prouting

could like -- buyback. with the Just you just few pick go is Rich, to you the adjust on before possible finish to there Jeff, a more up that acquisition, so on not the formula it shares? just

Rich Ambury

look It's derived SEC formula. not formula We adjust back. It's our that an anything. you can't

Michael Prouting

Okay, or anything? and the repurchase you're that using adjust can price you to

Rich Ambury

we Yes, to. we adjust price can if want always the Sure.

Michael Prouting

Okay.

Rich Ambury

decision? board a will That require

Michael Prouting

Yes, that's what asking. I'm

Rich Ambury

numbers our was, a and where out price but… there out Well, can we you kind and at look of it figure have

Michael Prouting

sir. Yes,

Rich Ambury

overpay don't either. We to want

Michael Prouting

Understood.

Okay.

of pick ___? desirous try So, any it up not sounds making changes like to the rate you're repurchase to

Rich Ambury

as That’s as far That's the goes. -- correct. price

Michael Prouting

Okay. All right, thanks.

Jeff Woosnam

Hey, in running the very get of heating own often the businesses. as terms has which activity six a consistent mean, farther five acquisition activity, into the little bit the over level continued are past into I pretty and overall unusual months season, their been it's sellers busy Michael, to season, is we

stages bit deals number small, in quarter I as have and little we a by in of I quality discussion. mentioned, first distraction we're a evaluation feel the of there's prospects three But And, high that. there. So various completed but and encouraged of

transformative deals difficult one opportunities don't answer. point, change see that our as At tomorrow for So I could immediate to I'm as anything themselves. but future, encouraged this in present

Michael Prouting

across sure. Thanks for Thank Okay, congratulations Woosnam again, PA just board. And update. the Jeff terrific - execution you. on Yes. the

Operator

closing there further for the time, over turn now I no to this to At any in Mr. Instructions] would Witty back remarks. to Chris [Operator like queue. appears be call questions

Chris Witty

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

Operator

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

You may disconnect. now

Star (SGU) 3 Feb 222022 Q1 Earnings call transcript