Earnings call transcript Q1 2023

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Operator

Good day and welcome to the Star Group Fiscal 2023 First Quarter Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

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

Chris Witty

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

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

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

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

Jeff Woosnam

good and Thanks, morning Chris, everyone.

colder unusual the of quarter was The XXX% year month one first XXXX October. prior period. Temperatures were in that than somewhat during fiscal

in The lower outside weather with rest on However, our weather month and our against overall contract. falls also typically colder hedge of quarter's only than $X.X weather a hedge October a was transitional XXXX million it customers for slightly a sold resulted charge of program. the impact is volume fiscal our

weather were temperatures XXst, so reversed We warmer through As this currently than a results. depending runs charge our be experiencing second on operating quarter footprint. normal reminder, our could throughout March hedge

We well of and were in higher the well pleased for delivering EBITDA accounts. performance, a heating that our start as was season which net encouraging prepared overall than I'm period an gain the ago, the adjusted as million year $X.X same with included

best ongoing of deal of October the net Specifically, representing we product temperatures our over the total results new isolated costs, and quarter. activity X.X% concerns account customers the a cool supply achieved such years. in created a during availability in account or X,XXX growth The of volatility in some great

to be most trusted advantage the contributed pleased our combined in ongoing serve in we among experience within strong being our to temporary this the the as we market gain we also reputation While And activity. were performance. of efforts position with markets improving of customer brands nature, take net reliable to largely increased in a the believe and that the

best from not I committed service completely customer complete but supported more Star results and strategy not have effectively executing taken A true be staff, proud providing in them. talented could would our to our recap without our has outstanding to differentiating who competition grateful remained customers, of the to how team This am only not be our ownership service. through of possible I mentioning of absolute the

to we dealers period, heating the added X.X gallons and million roughly also annually our petroleum two other During that oil acquired of oil company. products

growth opportunities of our support number plan. that strategic a evaluate to continue We

on the month expense to we themselves control, managing temperatures positioned a heating focus the are out, fiscal through and we're address believe management, might encountered play January season. over the say or well whatever the While milder challenges efficiency how of to and it's opportunities operational will present solid in margin too with early we XXXX of remainder

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

Rich Ambury

morning Jeff, Thanks, everyone. and good

propane than quarter additional by the colder our provided year, normal. fiscal the For X first gallons million but and Temperatures quarter to for other acquisitions than customer X.X% of or than were XX% from heating home last net attrition colder still impact X% oil gallons as volume temperatures and increased warmer XX the factors. and million volume XXXX the more offset

million by $XXX in $XX last costs higher Higher million $X.X debt million gross an year. Delivery, expense, to product gallon expenses $XXX Our heating did card and $X the an branch margins and totaling and or increase XX%, processing per to XX%, increase volume. G&A oil delivery increased reflecting and million, home vehicle fees rise profit in million. million, by in $XX to product credit bad fuels compared drove or propane

the an reflecting operating hedge weather $X a expense approximately or X%. prior under of by $XXX,XXX the recorded representing in period, million also during we increase our XXXX, an of million, All $X.X XX, million. benefit rose December of costs of colder recorded $X.X year cost versus As weather other

fair EBITDA volume, fiscal charge. During $X.X of instruments. million costs. million higher first by adjusted and to million oil recorded an increase $X of home By the an impact the net and decreased XXXX, income change propane $X million gallon million. partially EBITDA in of XXXX, reflecting after-tax the to more first heating expense to in of margins million, per the million, of Net Adjusted instruments $XX.X interest in in we fair million we the increase quarter $XX.X unfavorable higher quarter offsetting in fiscal non-cash our largely $X.X $XX by non-cash of charge by $X derivative due of the the the million comparison, $XX.X value for of value rose than change and recorded offset higher operating derivative

to over call turn And back the Jeff. now, I'd like to

Jeff Woosnam

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

Operator

sir. Yes,

now ahead. [Operator session. begin And will Mullen Management. will question Instructions] come the Tim first from the question-and-answer Please with Laurelton We go

Tim Mullen

unit I gains. questions. about ask repurchases to both customer the Hi, taking wanted the thanks my and for

either the unit the clear December about like the How, addition on repurchase, the conditions price at index. repurchases? I in And any trend a has sounds and there and of that as for kind given you. and you've them sense October that reversal those to earlier the second of comment temporary. future Thank on long are really guys of market First call as to was durable stock delirium being kind might all, it and supply you then pace impacted your the comment thinking in physical Can if any that given slowed you function repurchases of since guess how on appreciated down your inclusion gains, then customer gains seen lasting it about this be?

Rich Ambury

the our unit us. still that an have We the with with repurchase program JPMorgan automatic take question on Again, runs repurchase. program. I'll unit it's for first the –

in involved opportunities whether go or the So has, target down that's day-to-day and a the depending that evaluate we're acquisition that And that basis go in have change certain got we price to the buying up units. price units. we'll to on or have not in versus buy we on that JPMorgan

Tim Mullen

Okay.

Jeff Woosnam

on… And

Tim Mullen

new side… the then And on account

Jeff Woosnam

solid account activity that no seen we in less throughout results on the of quarter. strongest month – question market new Yes, that. the our was There's January. clearly side, We've October, had about although

with that weather. a activity of in in this across fact that's Some year, our to January, of are footprint many definitely see marketplace. the saw the combination there's rest prospects Very difficult But approximately the what play selected customers is, typically means XX% potential the that of The in the supplier. at that January. down of so a also for year, time already that is – less think have but temperatures we I

Tim Mullen

contracts or those to Okay. up that folks of it are gains, say year physical you And and need you sign they in deliver? really terms the most ask that of come those last temporary, have are just a they supply, the for

Jeff Woosnam

combination It's of both. a

up then that longer. a So is that customers that year variable on on there are price and protected up customers typically price got no – if length some that sign we've in sign a a agreement

Tim Mullen

Okay. much Great, thanks very guys.

Jeff Woosnam

You're welcome.

Operator

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

Jeff Woosnam

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

Operator

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

may You now disconnect.

Star (SGU) 2 Feb 232023 Q1 Earnings call transcript