The following is a summary of the Star Group, L.P. Common Units (SGU) Q4 2024 Earnings Call Transcript:
Financial Performance:
Adjusted EBITDA increased by $14.7 million year-over-year, indicating improved profitability in home heating oil, propane margins, and service sectors.
Revenue slightly declined due to decreased volumes and selling prices.
Net loss increased by $15 million in the quarter, primarily due to an unfavorable change in fair value of derivative instruments.For the full year, net income rose by $3 million, attributed to increases in adjusted EBITDA and a decrease in net interest expense, despite challenges.
Business Progress:
Completed five acquisitions, adding over 20,000 customers and 23 million gallons in annual volume.
Introduced a new credit facility worth $610 million to bolster liquidity for future acquisitions and general corporate use.
Experienced unchanged mild temperature conditions, influencing heating demands and impacting service operations and customer additions.
Opportunities:
The new credit facility and a strong pipeline of acquisition opportunities position the company for potential growth and market expansion.
Risks:
Net customer attrition rose slightly due to a slowdown in real estate market activity, alongside a milder weather impact reducing demand for heating services.
More details: Star Group LP IR
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