Star (SGU) 5 Dec 242024 Q4 Earnings call transcript

Good day, and welcome to the Star Group Fiscal 2021 Fourth Quarter Results Conference Call. [Operator Instructions] Please note this event is being recorded.

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

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 and include provide This to beliefs concerning the now of safe that in and may I statement. involve events harbor risks company's statements. materially indicated a expectations or performance conference that statements forward-looking brief conference the may future that cause uncertainties represent All call other forward-looking from statements different statements. company's included actual performance the historical than are call statements by this to like such facts be implied

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

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

another a the Quarter It's on year It's Thank Star's over and and in concluding past our joining performance new months. how passes and a great started are here Conference good reflect opportunity morning, time you season. for Thanks, XX quickly, so heating Chris, fiscal Call. we amazing everyone. Fourth to

and XX% revenue warmer roughly to prices. selling were flat XXXX fiscal in volumes than year-over-year. but Total due modestly lower fell temperatures Notably, normal, slightly

EBITDA adjusted oil fiscal year propane and an service versus full by heating margins per home higher increase profitability. gallon rose and million and $XX.X installation reflecting However, XXXX, in

containment benefits working continue those was and on efficiency, customer efforts to this cost net are be of laser-focused believe slightly our at improved results fiscal the operating evident XXXX, I address and remain year. we same X.X% in year-over-year. the We in vigilant in to attrition, which EBITDA time, up At

lower activity customers satisfaction new no operations. loss storms There continue major While a in indicators response of real to which year, our or higher-quality observed marketplace our often internal drives and estate which the rates cold periods of customer faster were level improve, the impacted prolonged service also we to during additions. customer

total, of our annually. completed XX,XXX and transactions important component gallons remains X program volume acquisition strategy. propane XX And just Our over fiscal during separate an of we customers in oil growth and heating XXXX, million adding

a stages near-term and to for $XXX We loan, pipeline recently purposes. currently additional in our continue and million to facility, well opportunities This complete of us general under some completed including various review; $XXX million opportunities liquidity an have of active positioned review. credit corporate leaves acquisitions revolver a and term provides

team has what the being mild of proud another up year. our I'm way navigated through ended

to service. prepared while customer superior we our customers our Nature heating season, enter providing we believe company throws respond Mother to the way anything the As is well with

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

Thanks, morning, everyone. Jeff, and good

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

roughly million, or However, to margins. largely home our oil to product higher due $XX XX% gross heating propane by million profit $X and increased

our and $X almost million. gross to million service $XX In rose net by profit installation addition,

increased branch to $X acquisitions. Delivery, increase $X or of expenses $XX was million. G&A that million Of recent and million that to by related about increase, approximately X%

million in million in Our tax the $XX derivative benefit. net net change during of interest loss the a instruments $XX million million by EBITDA a quarter increased unfavorable and to adjusted loss, by $X.X an as expense partially lower only was of the million million income $XX value $X fair $X increase noncash in decrease offset the

loss adjusted million increase additional acquisitions propane in $XX installation gallon in an EBITDA than expenses. and home operating in and offset the an oil reflecting margins, service $X.X and from approximately decreased more to The per profitability, increase heating which million quarter, by higher EBITDA

the year to XXXX. Moving full for over

areas warmer decreased X.X% more Our XXX less gallons of X home prior and customer year our attrition. to oil million propane provided and or period. geographic Temperatures volume offset net than factors was were than than additional heating again, as gallons, from million the operations in by other X% the by volume acquisitions

product by decline propane heating or impact and in margins from liquid products in profit sold. million approximately Our $XX oil to an than million more $XXX gross increase home the as increased the X% offset

In by addition, installation our increased gross net and $XX million service $XX to million. profit

to by fiscal increased $XXX branch in Delivery, to and million million XXXX. compared expenses $XXX $XX G&A million

during expenses. with year-over-year $X compared a $X.X to The million fiscal of hedge $XX.X benefit million benefit increase expense. accounting associated expenses $X XXXX, increase XXXX, company acquisitions, change with million along under million also reflects recorded of its in $X for of fiscal recent base million During the a a weather business a in

fair net to million was EBITDA $X largely a an adjusted a Net in the and income derivative rose of by interest that's of in as unfavorable change value offset decrease again in million $X $XX expense $XX.X increase $XX million. million instruments, million by noncash,

a base $XX benefit, offset more business base million propane gallon reduction in hedge oil installation weather acquisitions, than oil from Adjusted an million heating $X heating in increase an per company's additional higher and propane $XXX.X the adjusted in to as profitability, million increase by service the home EBITDA in $XX.X an and EBITDA rose and margins, in expenses. decrease million volume home and operating business, the and

That the on results. financial concludes Jeff? my discussion

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

comes Michael Instructions] question XXK Prouting The with first from today Capital. [Operator

a couple of questions. at Just I'll all ask them once.

First, Jeff, forecasting season. I'm -- services your where expect be to what you upcoming the if the wondering as as telling heating far might

to curious current read was customer I Second, retention. your get on

of get the also to wanted prior just fiscal were to work environment. looks question, acquisition to amount third like able read on the decent It your put capital in a year. you And

expectations the in and as potential particular, upcoming fiscal larger might deals? Just for wondering as far what year, the your some be

you can me, please? repeat I'm Michael, sorry. your first for question

Yes, of course.

might get to on be what for heating to. wanted kind season based weather expecting you of on thoughts weather Just you the professional subscribe forecasting services upcoming your guys that

long-term It's to you rely Yes. too forecasts, on weather far out. know. look difficult probably to not We try as

make weatherman, it past ends see and The how mild is normal. not been normal, just that, going first any little We of the in favorably, than Put November X XX% to off bit been fiscal about more I'm came strong months November, year December not that normal. up. getting But quarter Obviously, on so to has more predictions. have plan than have way. XXXX so I'm necessarily starting a October of a the mild we'll

Net have customer remarks. in losses if XXXX we shape overall continue good in and In terms focused we're really doing really recall, the indicators, -- things started said right you our have in started rates And remained that internal and fiscal our improve, kind customer the attrition, and to on -- things. all slow. Scores, overall Losses the things at we churn we just as and ensure XXXX, have look Promoter of all customer of right my to of in satisfaction I as are off our that

lower XXXX. a a And with particularly weather quarter. which lot just have did result activity, we real impact and to rates events overall year gain didn't market and a in But that for related of as the any then markets, dealing in we're level of first of really estate the our just

probably of attract other things I brands. to customers full-service disruptions to think in the the 'XX. winter certainly And winter that's off in coming service history in that tend our impacts and kind reduces fourth-warmest it's history, third-warmest and

an has fiscal in that impact the year. So

acquisition X acquisitions -- front, closed remains busy. strong. XXXX. October. was most And the A in made at transaction XXXX, right our which on September pipeline encouraging. the encouraging. It's of we We in extremely been had The We end smaller recently, a has close acquisition And in very team larger of deal. acquisition another

everything how review. We'll pipeline out. optimistic may. currently stages opportunities several got certainly of just But into later we've in And encouraging. very right Read under them forward. review, the But moving of to looks that have what see you some we're acquisition now works

forward We'll news. joining you on up keep the good and cash Okay. a the conversion look work to great couple months. That's of in cycle

You bet. you, Thank Mike.

[Operator Woosnam At the the I'd remarks. to any like time, Instructions] Mr. call for turn back to this closing

forward wonderful Well, fiscal to your have join quarter meantime, our interest Thank and us ongoing Holiday first in the thank you. today In We season. sharing Group. February. you taking the to for time results Star a look XXXX in

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

disconnect. now may You