In This Article:
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Adjusted EBITDA Loss (Q3 2024): Reduced by $19 million.
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Home Heating Oil and Propane Volume (Q3 2024): Increased by 7.6 million gallons or 25% to 38 million gallons.
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Product Gross Profit (Q3 2024): Increased by $20 million or 37% to $75 million.
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Service and Installation Gross Profit (Q3 2024): Increased by $3.5 million to $13.5 million.
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Net Loss (Q3 2024): $11 million, $13 million less than the prior year period.
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Adjusted EBITDA Loss (Q3 2024): Decreased by $18.9 million to $4 million.
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Home Heating Oil and Propane Volume (First 9 Months 2024): Declined by 5.5 million gallons or 2% to 235 million gallons.
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Product Gross Profit (First 9 Months 2024): Increased by $18 million or 4% to $426 million.
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Service and Installation Gross Profit (First 9 Months 2024): Increased by $6.3 million to $18 million.
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Net Income (First 9 Months 2024): $70 million, $19 million higher than the prior year period.
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Adjusted EBITDA (First 9 Months 2024): Increased by $13 million to $141 million.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Star Group LP (NYSE:SGU) reported a significant reduction in adjusted EBITDA loss by nearly $19 million for the third quarter of fiscal 2024.
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The company increased its adjusted EBITDA by $13 million through the first nine months of fiscal 2024, despite warmer than normal temperatures.
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Star Group LP (NYSE:SGU) entered into a definitive agreement to purchase a high-quality fuel dealer, expected to add 19 million gallons of heating oil annually.
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The company achieved a 25% increase in home heating oil and propane volume for the third quarter, driven by acquisitions and other factors.
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Product gross profit increased by $20 million or 37% due to higher volumes and improved per gallon margins.
Negative Points
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Star Group LP (NYSE:SGU) posted a net loss of $11 million in the third quarter of fiscal 2024.
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Delivery, branch, and G&A expenses increased by $4.7 million year-over-year, partly due to acquisitions and rising insurance costs.
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The company's home heating oil and propane volume declined by 5.5 million gallons or 2% over the first nine months of fiscal 2024.
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The benefit from the weather hedge program decreased by $5 million year-over-year.
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Operating expenses increased by approximately $4 million due to recent acquisitions.
Q & A Highlights
Q: Can you provide more details on the recent acquisition and its expected impact on Star Group's operations? A: Jeffrey Woosnam, President and CEO, explained that Star Group has entered into a definitive agreement to purchase a high-quality fuel dealer for approximately $35 million. This acquisition is expected to add around 19 million gallons of heating oil annually and is located within their existing operating footprint. The transaction is anticipated to close in the fourth quarter and represents their fifth acquisition in the current fiscal year.