Star Group, L.P. Reports Fiscal 2024 Fourth Quarter Results

Core Viewpoint - Star Group, L.P. reported a decrease in total revenue and an increase in net loss for the fiscal 2024 fourth quarter compared to the same period in the previous year, despite some improvements in Adjusted EBITDA and service profitability [2][3][5]. Financial Performance - For the fiscal 2024 fourth quarter, total revenue decreased by 10.0% to $240.3 million from $266.9 million in the prior-year period, attributed to lower volumes sold and decreased selling prices for petroleum products, partially offset by higher service and installation revenue [2]. - The volume of home heating oil and propane sold decreased by 1.5% to 18.5 million gallons, with net customer attrition impacting sales [2]. - Star's net loss increased by $15.4 million to $35.1 million, influenced by a $28.4 million unfavorable change in the fair value of derivative instruments [3]. - Adjusted EBITDA loss for the fourth quarter was $29.7 million, a decrease of $1.7 million from the prior year, driven by higher margins and profitability in service and installation [4]. Yearly Overview - For fiscal 2024, total revenue decreased by 9.6% to $1.8 billion from $2.0 billion in fiscal 2023, reflecting a decline in total volume sold and selling prices due to lower wholesale product costs [6]. - The volume of home heating oil and propane sold for the year declined by 2.2% to 253.4 million gallons, with net customer attrition being a significant factor [6]. - Star's net income increased by $3.3 million to $35.2 million, supported by a $14.7 million increase in Adjusted EBITDA, despite a $17.0 million unfavorable change in the fair value of derivative instruments [7]. - Adjusted EBITDA for fiscal 2024 rose by $14.7 million to $111.6 million, driven by improved margins and profitability in service and installation [8]. Operational Insights - The company experienced a slight increase in net customer attrition to 4.2% in fiscal 2024, indicating challenges in customer retention [5]. - The geographic areas of operation experienced temperatures that were 15.1% warmer than normal, which may have influenced heating demand [6]. - Star Group continues to focus on cost containment and pursuing attractive acquisitions to enhance its market position [5]. Balance Sheet Highlights - As of September 30, 2024, total assets increased to $939.6 million from $875.5 million in the previous year, with significant increases in cash and cash equivalents [16][17]. - Current liabilities also rose, with total current liabilities at $373.8 million compared to $364.9 million in the prior year [17]. Cash Flow and Investment - Net cash provided by operating activities for the fourth quarter was $38.6 million, while net cash used in investing activities was $30.0 million [19]. - The company sold 52.2 million gallons of total products in the fourth quarter, slightly down from 53.1 million gallons in the prior year [19].