Earnings call transcript Q3 2023

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Operator

Good day. And welcome to the Star Group Fiscal 2023 Third 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]

is event this note being recorded. Please now Chris Witty, would like to to over conference the the turn I Investor Adviser. Relations ahead. go Please

Chris Witty

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

the conference the that now would cause company’s than be and beliefs future events This expectations risks to provide include and forward-looking may Safe Harbor a or and actual I may brief statements involve materially uncertainties performance to the statements. statement. implied like performance call company’s that represent concerning such by different indicated

than other statements conference call facts forward-looking statements All included in this of historical statements. are

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

Important report actual factors materially the XXXX, with other filings company’s expectations to conference Form the disclosed year SEC. the from company’s September on company’s fiscal XX-K the differ call, that in the ended this cause are annual and results could XX, for

this company written the statements statements, statements. their events revise whether by otherwise undertakes of information, company otherwise cautionary and result forward-looking law, new acting forward-looking no are by persons future qualified call. or the attributable required oral update entirety the the its to to obligation in publicly conference Unless of subsequent expressly any on All behalf or date or as a after

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

Jeff Woosnam

much certainly Thank year-to-date be warmer The discuss third fiscal our morning, to results. anticipated. good to everyone. year quarter this and you for than Chris, us joining Thanks, weather and continued

XX% warmer were normal, past XXX geographic impacted results. area, which than and last York temperatures years market on Star’s year Metropolitan than Star. a footprint the warmer Temperatures Year-to-date, New for over the in during key warmest significantly our QX third record the were within XX%

our have focus control providing and on operating to excellent nature, expenses did customer service. maintained steps we reduce While we take retention mother cannot and

a approximately In position heating from $X.XX our a as down standpoint, impacted liquidity in strong very year. weather actually home are addition, from last even that costs negatively per gallon oil product time this are performance, we given

$XX we June sheet inventory of aggregate XX, are have XXXX, year-over-year. accounts on by approximately million balance now receivable in and and the cash million lower our some $XX As in

initiatives year-over-year. Our $XXX warm have million requirements, million extremely bank bank are availability working the year. capital our $XX Therefore, under growth borrowings approximately approximately and down despite of agreement to we our this weather fund

the on evaluating make the possible and a or acquisitions, for operating season, expenses season. heating preparing and HVAC of upgrades, to trying of most also controlling non-heating otherwise are upcoming number working We home the heating repairs

to a net critical Reducing customer be continues focus area us. for attrition of

warm supply achieving to regard weather. unusually of years. set recall, As notwithstanding nine-month to you advantage with year’s X.X conditions best net we us may growth the achieve account the period market the to first quarter during the reduced customer in attrition gains and many This gross prior and up our as net compared period, took during results

and have still our of we the enhancing and improvement, investment the there’s overall of While brands the our room appeal experience, reflect strength well we made for Stars validate as results offerings. as believe customer product in service

weather is fiscal prepared well As company comes we we the way. of respond near the our end believe whatever to XXXX, to

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

Rich Ambury

good and Jeff, Thanks, everyone. morning,

weather, factors. offset or XX and third million customer propane volume our XX was gallons decreased net as home volume additional oil attrition from by by For the heating acquisitions the other million than to XX% gallons and provided warm quarter, more

normal. temperatures warmer previously than XX% than year last XX% warmer were As quarter and mentioned, XXXX third fiscal for the

$XX XX% an lower million in fuels gross to product Our than decline oil propane or sold, home offset heating in gross motor decreased as more profit from increase and and million gallon the profit per XX% by volumes $XX margins.

were managing in inflationary the costs from mitigating Delivery, year-over-year impact branch such and by million expenses G&A pressure. $X and as successful decreased we

net quarter $XX greater of $X year million $XX instruments $XX fair million We prior the a posted period, EBITDA the in loss of of a in XXXX fiscal of change third in impact increase of a and the million reflecting value the after-tax adjusted the than loss. unfavorable derivative or million non-cash

by home increased slight in propane heating and the gallon as loss of EBITDA offset operating and in million adjusted per decrease an more $XX propane margins than impact oil lower to million heating of gallons $XX oil home a expenses. The volume increase million XX and

Turning to fiscal XXXX, months and our months million volume -- nine X% than warmer gallons by the XX% million warmer of and to results additional declined oil heating offset year by the gallons XXX first than nine than or last factors. from home XX as for propane attrition the volume other XX% provided temperatures, normal. was warmer Temperatures for more the acquisitions net were and period customer

or product only as XX% $XXX and offset profit of Our partially did heating $XX higher to the by from profit the sale decline motor home and in fuels. home gross propane decrease oil oil X% gross and lower million heating million volume margins propane

$X.X attributable program. were year-over-year, Branch, to lower included delivery million million which expenses our and weather G&A hedging $XX.X by

under fiscal benefit XXXX. XXXX, $XX.X of weather in million our in we to $X.X recorded of reminder, million fiscal a compared benefit hedge, recorded a a As

in expense for $X costs accounted acquisitions increase an million. business of by $X.X the operating rose million base and Recent

fees, higher just of with card by in business three-tenths Credit expenses largely fuels and base the or of bad to X%. costs $XXX,XXX debt rose expense remaining vehicle $X million, product due

the an the EBITDA instruments an expense and of value than of for in fiscal of in of adjusted prior XXXX the the income $XX $XX net of lower loss $XX first after-tax million net million the or million, $X increase period nine to posted fair in million a months an in derivative EBITDA of interest change due unfavorable year the increase of non-cash We loss. impact increase adjusted --

Adjusted gallons expenses operating EBITDA heating heating million per hedge by of more million an and to $XX the than and margins $XXX offset impact higher home oil XX volume of weather of and benefit oil as propane increase lower gallon $XX.X propane in the declined million. home and million

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

Jeff Woosnam

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

Operator

[Operator Instructions]

Operator

be no appears this to There questions time. at

for closing So turn I Mr. it to over Woosnam any will remarks.

Jeff Woosnam

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

Operator

for attending presentation. The conference has now ended. Thank you today’s

disconnect. now all may You

Star (SGU) 3 Aug 232023 Q3 Earnings call transcript