SGU - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to Star Group's Fiscal Third Quarter 2024 Earnings Call. [Operator Instructions] Also please be aware that today's call is being recorded.

I would now like to turn the call over to Chris Witty, Investor Relations Adviser. Please go ahead.

Chris Witty

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

conference the the company's XX-K expectations cause Although could other differ can reflected on Form such forward-looking have such company year-ended report fiscal assurance filings call, the and materially company's expectations to that with no factors in from actual the the for it annual reasonable, results in been XX, believes expectations September that correct. Important prove will XXXX, are to SEC. the statements company's give that the this are disclosed

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

Jeffrey Woosnam

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

to and and with benefiting fiscal our $XX XXXX. improved XXXX. adjusted the quarter loss results, nearly million strong deliver versus of coupled us for control volumes service fiscal EBITDA quarter reduce has equipment progresses, per higher and expense the third the we margin summer profitability allowed As of to both third solid by installation continue gallon This, higher gross from

increase last to ability believe virtually we adjust normal. adjusted year. by and faced warmer rapidly conditions fiscal is of the which year, X heating weather EBITDA most than XXXX, months team's whatever during to identical Through to temperatures Despite of the million, the able our to but $XX first season, were we testament mild the XX% make a were I

operating transaction This of our In announce addition, I pipeline am within fiscal evaluated oil closing purchase XX to quarter. located existing have to million we heating which pleased for in agreement $XX high-quality annually entered fifth for million is a add the a in being to definitive The acquisition opportunities is the footprint, before we fuel capital. will that we and represent have year, of very active the fourth working our an current on to anticipate continue approximately and into future. purchase expected dealer business, the gallons some

are Of the always also us. and businesses, improve for existing course, working to which is overall a we efficiency our performance across priority

customer elevate attrition Our year-over-year, to going quarter slightly our stable down was and ongoing and net the strategies forward. rates focus excellent on retention remained for service reflecting

we people, to results. and return on comments additional forward in to provide look call winter that, Given our quarter's the the months. With the Rich like to our in investment turn our Rich? over the operations of coming to I'd

Richard Ambury

everyone. and Thanks, Jeff, good morning,

and the our by attrition. customer reduced from quarter, to XX% third the gallons million acquisitions and X.X XX For provided increased other or additional home million was volume factors oil propane as volume heating by gallons net

XX% XXXX fiscal to the than year for last normal. equal warmer were Temperatures quarter third and

expenses. per realized XX% million $XX million by propane increased a on We gallon million and sold the due as prior and continue volumes than increase year's comparable profit to service and to combined or installation focus controlling gross product profit of to we $X.X quarter heating both home higher an from higher in Our or $XX.X $XX gross million oil and revenue improving margins.

additional costs acquisitions increased the G&A part in branch to year-over-year, expenses by to Delivery, million of attributable $X.X $X.X due operating and million.

higher In expenses addition, due just claim million The rose insurance costs. expense mitigating premiums costs expected to and pressures. we impact or from by successful and the the balance managing by $X.X of rose $X.X were million X.X% increasing as such inflationary in

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

million propane volume $XX.X EBITDA and decreased impact increase offset additional per expenses. heating installation by expansion gallon of the of as The and improvement higher from EBITDA service home adjusted the in than and an more to $X acquisitions profitability million operating and in loss and oil margins

million acquisitions first heating Turning other home and by X% $XXX our to for the months net attrition oil results as X.X customer volume from additional the or than offset was the and volume fiscal by XXXX, provided to X of gallons million propane factors. more declined

approximately Temperatures normal. but last from XX% for still period were than the warmer year unchanged

Our lower higher propane the home to a sale $XX oil million oil heating by gross propane certain $XXX from and, profit increased heating home extent, X% fuels. gross as and motor in sold product reduced profit by and million X% decline the margins of or was to

or profit year's focus and to gross revenue $XX of operating million improving on combined again, $X.X costs. we from the quarter, service comparable the million continue these controlling and both than installation higher as realized prior We

program. XXXX, XXXX. Delivery, weather were million compared under recorded branch to $XX.X higher $X.X our a weather recorded in fiscal fiscal which $X.X of million benefit and hedge included attributable million million by G&A we $X hedging our year-over-year, to In

EBITDA operating just XXXX million net of X and the for increase million. instruments $XX months higher prior after-tax adjusted approximately an million of impact in period base rose derivative value of expenses $XX million $XX change of of non-cash first $XX posted of fair accounted the than favorable an fiscal acquisitions and million $X in year the Recent the We as by increase in income a of or the in business $XXX,XXX.

of the than gallon in EBITDA improvement profitability to weather volume from expansion Adjusted service in by business a and hedge million oil provided decline acquisitions heating additional $XXX and offset installation more per EBITDA and reduction increased base the the the and in and propane $X $XX margins as home million in year-over-year. benefit the million

place obligated payment If our is we payment additional received an weather regard receive fiscal if that have to capped XXXX. make had we maximum would the days annual in fiscal in at the we XXXX, same to the the an more can $X With threshold. hedge million, XXXX, the for million $XX are exceed and million company in $X.X fiscal degree coverage

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

Jeffrey Woosnam

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

Operator

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

Jeffrey Woosnam

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

Operator

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

lines. now disconnect your You may

Star (SGU) 1 Aug 242024 Q3 Earnings call transcript