Q4 2024 Star Group LP Earnings Call Transcript
Key Points
- Full-year adjusted EBITDA increased by $14.7 million compared to fiscal 2023, driven by higher margins in home heating oil and propane, as well as improved service and installation profitability.
- Star Group LP completed five acquisitions during fiscal 2024, adding over 20,000 customers and 23 million gallons of heating oil and propane volume annually.
- The company has an active pipeline of acquisition opportunities and recently completed a credit facility, providing additional liquidity for future acquisitions.
- Product gross profit increased by $21 million or 5% for the full year, due to higher margins in home heating oil and propane.
- Net income rose by $3 million to $35 million, supported by an increase in adjusted EBITDA and a decrease in net interest expense.
- Total revenue fell modestly due to slightly lower volumes and selling prices, impacted by warmer than normal temperatures.
- Net customer attrition increased slightly to 4.2% in fiscal 2024, influenced by lower real estate activity and lack of major weather events.
- Home heating oil and propane volume decreased by 6 million gallons or 2% for the full year, despite additional volume from acquisitions.
- Delivery, branch, and G&A expenses increased by $15 million to $395 million, partly due to recent acquisitions.
- The company recorded a $5 million increase in expense related to a reduction in the weather hedge benefit compared to fiscal 2023.
Good day and welcome to the Star Group fiscal 2024 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 Advisor. Please go ahead.
Thank you, and good morning. With me on the call today are Jeff Woosnam, President and Chief Executive Officer; and Rich Ambury, Chief Financial Officer.
I would now like to provide a brief Safe Harbor statement. This conference call may include forward-looking statements that represent the company's expectations and beliefs concerning future events that involve risks and uncertainties that may cause the company's actual performance to be materially different from the performance indicated or implied by such statements.
All statements other than statements of historical facts included in this conference call are forward-looking statements. Although the company believes that the expectations reflected in such forward-looking
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