Star Group(US:SGU)2026-02-04 21:15Financial Performance - Total sales for the three months ended December 31, 2025, increased to $539,256,000, up 10.5% from $488,063,000 in the same period of 2024[12] - Net income for the three months ended December 31, 2025, was $35,790,000, representing a 8.6% increase compared to $32,884,000 in 2024[16] - Basic and diluted income per Limited Partner Unit rose to $0.89, up from $0.79 in the prior year, reflecting a 12.7% increase[12] - Operating income for the three months ended December 31, 2025, was $54,238,000, a 10.3% increase from $49,219,000 in 2024[12] - Total comprehensive income for the three months ended December 31, 2025, was $36,077,000, up from $33,624,000 in 2024, reflecting a 7.3% increase[16] - Adjusted EBITDA for the three months ended December 31, 2025, was $68,388,000, representing a 31.7% increase from $51,864,000 in 2024[93] - Net income for the three months ended December 31, 2025, increased by $2.9 million to $35.8 million, primarily due to a $16.5 million increase in Adjusted EBITDA[143] Assets and Liabilities - Total current assets increased to $324,816,000 as of December 31, 2025, compared to $207,281,000 as of September 30, 2025, marking a 56.5% growth[10] - Total liabilities increased to $732,663,000 as of December 31, 2025, up from $516,351,000 as of September 30, 2025, indicating a 41.9% rise[10] - Cash and cash equivalents decreased to $19,857,000 from $24,683,000, a decline of 19.5%[10] - The company reported an increase in receivables to $198,210,000, up from $102,119,000, which is an increase of 94.2%[10] - Total inventory increased to $69,559,000 as of December 31, 2025, compared to $47,022,000 as of September 30, 2025, representing a 47.8% increase[68] - The Company reported total debt of $254,808,000 as of December 31, 2025, compared to $188,118,000 as of September 30, 2025, indicating a significant increase in leverage[72] Revenue Sources - Revenue from home heating oil and propane was $372.6 million, up 15.4% from $322.8 million in the prior year[44] - For the three months ended December 31, 2025, retail volume of home heating oil and propane sold increased by 11.5 million gallons, or 13.9%, to 93.9 million gallons compared to 82.4 million gallons for the same period in 2024[123] - Product sales increased by $48.5 million, or 12.1%, to $448.0 million for the three months ended December 31, 2025, driven by a 9.4% increase in total volume sold and higher average selling prices[124] - Installation and service revenue rose by $2.7 million, or 3.0%, to $91.3 million for the three months ended December 31, 2025, supported by recent acquisitions and expanded service offerings[125] Expenses and Costs - Cost of product increased by $19.8 million, or 8.0%, to $268.5 million for the three months ended December 31, 2025, due to a 9.4% increase in total volume sold, partially offset by a decrease in wholesale product cost of $0.0290 per gallon, or 1.3%[126] - Delivery and branch expenses increased by $10.6 million, or 10.7%, to $109.9 million for the three months ended December 31, 2025, influenced by colder weather and recent acquisitions[135] - Service expense increased by $3.6 million, or 7.0%, to $55.0 million for the three months ended December 31, 2025, representing 106.5% of service sales[130] Cash Flow and Financing - The company experienced a net cash used in operating activities of $55,182,000 for the three months ended December 31, 2025, compared to $64,564,000 in 2024[21] - The company repaid $5.3 million of its term loan and borrowed $71.9 million under its revolving credit facility during the three months ended December 31, 2025[154] - Availability under the revolving credit facility was $168,600,000 as of December 31, 2025, indicating compliance with financial covenants[81] - The company expects to pay $15.8 million for the remainder of fiscal 2026 for its term loan, which is repayable in quarterly payments of $5.3 million[159] Risk Management and Derivatives - The company has utilized weather hedge contracts with a maximum potential payout of $15.0 million for fiscal years 2026 and 2025[34] - The company held derivative instruments totaling 14.5 million gallons of swap contracts and 5.3 million gallons of call options to hedge against heating oil price fluctuations[58] - The company has interest rate swap agreements covering $73.6 million, or 40%, of its long-term debt, with a fair value of $(0.6 million) as of December 31, 2025[60] - A hypothetical 10% increase in product costs would increase the fair market value of outstanding derivatives by $6.8 million, while a 10% decrease would decrease it by $3.9 million[171] Corporate Governance and Compliance - The company believes that its controls system provides reasonable assurance of achieving control objectives, as concluded by the CEO and CFO as of December 31, 2025[176] - Management opines that there are no ongoing litigations that could materially affect the company's operations, financial position, or liquidity[178] - There have been no material changes to the risk factors affecting the company's business since the last Form 10-K report[180] - The company has not adopted or terminated any trading plans during the quarter ended December 31, 2025[186]