Q1 2025 Superior Plus Corp Earnings Call Transcript
Key Points
- Superior Plus Corp (SUUIF) reported a strong start to 2025 with a 10.5% increase in adjusted EBITDA for Q1, driven by robust performance in both propane and compressed natural gas (CNG) segments.
- The company delivered 24 million more gallons of propane in Q1 compared to the previous year, with fewer trucks and more efficient routes, showcasing operational efficiency.
- Superior Delivers, a customer growth initiative, contributed approximately $2.3 million to EBITDA in Q1, with expectations to contribute $20 million to adjusted EBITDA in 2025 and $70 million by 2027.
- The CNG business, Certarus, grew its EBITDA by approximately 7% year-over-year, maintaining strong margins and returns despite pricing pressures.
- Superior Plus Corp (SUUIF) continued its share repurchase program, buying back 6.2 million shares in Q1, which is approximately 2.6% of the outstanding float, reflecting confidence in the company's valuation.
- Despite strong performance, the CNG segment faces pricing pressure due to cautious customer behavior amid broader economic uncertainties, potentially impacting growth towards the lower end of the 5% to 10% range.
- Corporate operating costs increased to $7.3 million in Q1 from $5.5 million a year ago, partly due to higher incentive plan expenses and one-time costs associated with an Investor Day.
- The company anticipates costs associated with achieving Superior Delivers to be in the range of $10 million to $15 million in both 2025 and 2026, which will be excluded from adjusted EBITDA.
- There is concern about potential impacts on Certarus from volatility in the oil and gas sector, particularly in the Permian Basin, which could affect activity levels and pricing.
- The integration of the wholesale business into the US and Canadian propane segments resulted in a slight decrease in wholesale contributions, with Q1 2025 figures lower than the previous year.
Good day and thank you for standing by. Welcome to the Superior Plus 2025 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Chris Lichtenheldt, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, everyone, and welcome to Superior Plus' conference call and webcast to review our 2025 first quarter results. On the call today we have Allan MacDonald, President and CEO, and Grier Colter, Executive Vice President and Chief Financial Officer. For this morning's call, Allan and Grier will begin with their prepared remarks and then we'll open the call for questions.
Listeners are reminded that some of the comments made today may be forward-looking in nature and information
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