Star Group(US:SGU)2025-05-07 20:15Financial Performance - Total sales for the three months ended March 31, 2025, increased to $743,045,000, up 11.6% from $666,032,000 in the same period of 2024[12]. - Net income for the three months ended March 31, 2025, was $85,911,000, representing a 25.7% increase compared to $68,374,000 in the prior year[16]. - Basic and diluted income per Limited Partner Unit rose to $2.01 for the three months ended March 31, 2025, compared to $1.56 for the same period in 2024, marking a 28.8% increase[12]. - Operating income for the six months ended March 31, 2025, was $174,591,000, a significant increase from $121,952,000 in the same period of 2024, representing a 43.1% growth[12]. - Net income for the six months ended March 31, 2025, was $118.8 million, a 46% increase compared to $81.4 million for the same period in 2024[24]. - For the three months ended March 31, 2025, net income increased by $17.5 million to $85.9 million, primarily due to a $31.9 million increase in Adjusted EBITDA[143]. - Adjusted EBITDA for the same period increased by $31.9 million to $128.2 million, driven by recent acquisitions and higher margins in home heating oil and propane[144]. - For the six months ended March 31, 2025, total product gross profit was $408.9 million, an increase of $57.8 million or 16.5% compared to the same period in 2024, driven by higher home heating oil and propane volume sold and improved margins[153]. Assets and Liabilities - Total current assets increased to $330,807,000 as of March 31, 2025, up 17.5% from $281,469,000 as of September 30, 2024[10]. - Total assets reached $1,059,466,000 as of March 31, 2025, a 12.8% increase from $939,611,000 as of September 30, 2024[10]. - Current liabilities increased to $386,095,000 as of March 31, 2025, compared to $373,796,000 as of September 30, 2024, reflecting a 3.2% rise[10]. - Long-term debt decreased to $177,494,000 as of March 31, 2025, down from $187,811,000 as of September 30, 2024, a reduction of 5.0%[10]. - As of March 31, 2025, the company's total debt amounted to $220.8 million, an increase from $208.8 million as of September 30, 2024[76]. - The company had $212.6 million in availability as of March 31, 2025, an increase from $166.5 million at September 30, 2024[86]. Cash Flow and Expenditures - The total cash, cash equivalents, and restricted cash at the end of March 2025 was $18.8 million, down from $117.6 million at the end of September 2024[32]. - Operating activities resulted in a net cash outflow of $15.96 million for the six months ended March 31, 2025, compared to an outflow of $5.18 million for the same period in 2024[24]. - Capital expenditures for the six months ended March 31, 2025, were $6.53 million, slightly higher than $6.02 million for the same period in 2024[24]. - Cash used in operating activities increased by $10.8 million to $16.0 million for the six months ended March 31, 2025, due to higher accounts receivable and inventory purchases[172]. - The company plans to invest approximately $6.0 million to $7.0 million in maintenance capital expenditures for the remainder of fiscal 2025[182]. Customer and Market Dynamics - The company served approximately 419,700 full-service residential and commercial home heating oil and propane accounts as of March 31, 2025[31]. - The company experienced a net customer attrition of 6,000 accounts, or 1.5% of its home heating oil and propane customer base, for the six months ended March 31, 2025[114]. - The gross customer gains for fiscal 2025 totaled 25,200, while gross customer losses amounted to 31,200, resulting in a net attrition of 6,000[113]. - The company’s customer gains as a percentage of the home heating oil and propane customer base for fiscal 2025 was 6.3%, while losses were 7.8%[114]. Acquisitions and Investments - The company made acquisitions totaling $79.6 million during the six months ended March 31, 2025, compared to $22.6 million in the prior year[24]. - The company acquired one heating oil and two propane businesses for approximately $79.6 million during the six months ended March 31, 2025[116]. - The gross purchase price for the acquired businesses was allocated $37.5 million to intangible assets and $16.8 million to goodwill[72]. Revenue and Sales - Product sales increased by $69.8 million, or 11.7%, to $665.1 million for the three months ended March 31, 2025, driven by a 17.3% increase in total volume sold[126]. - Installation and service revenue increased by $7.2 million, or 10.2%, to $77.9 million for the three months ended March 31, 2025, supported by recent acquisitions and expanded offerings[127]. - Retail volume of home heating oil and propane sold increased by 29.0 million gallons, or 14.7%, to 226.3 million gallons for the six months ended March 31, 2025[148]. - Cost of product increased by $17.5 million, or 4.5%, to $406.9 million for the three months ended March 31, 2025, due to an increase in total volume sold[128]. Expenses and Profitability - Delivery and branch expense increased by $20.8 million, or 20.0%, to $124.9 million for the three months ended March 31, 2025, influenced by weather hedge contracts and expenses from recent acquisitions[136]. - General and administrative expenses increased by $1.3 million, or 18.9%, to $8.2 million for the three months ended March 31, 2025, primarily due to an increase in profit sharing expense[138]. - Net interest expense increased by $0.7 million, or 16.3%, to $4.5 million for the three months ended March 31, 2025, driven by an increase in average borrowings[140]. - Income tax expense increased by $6.9 million to $34.8 million for the three months ended March 31, 2025, due to a $24.4 million increase in income before income taxes[142]. Risk Management and Hedging - The company has weather hedge contracts with a maximum potential payout of $15 million for fiscal 2025[37]. - The company recorded a payable of $3.1 million under weather hedge contracts as of March 31, 2025, due to colder temperatures than anticipated[103]. - The company has interest rate swap agreements to mitigate exposure to market risk associated with variable rate interest on $76.3 million, or 38%, of its long-term debt as of March 31, 2025[60]. - A hypothetical 10% increase in product costs could increase the fair market value of outstanding derivatives by $4.1 million[195].