Core Insights - The company reported a significant increase in home heating oil and propane volume, rising by 11.5 million gallons, or 14%, to approximately 94 million gallons, driven by acquisitions and colder temperatures, although offset by net customer attrition and other factors [1] - Adjusted EBITDA increased by $16.5 million, or 32%, to $68 million, primarily due to colder-than-normal weather, recent acquisitions, and effective per-gallon margin management [2][5] - The company experienced a modest net customer attrition during the period, despite operational challenges posed by persistent cold temperatures [2][3] Financial Performance - Product gross profit rose by roughly $29 million, or 19%, to approximately $179 million, attributed to higher volume and improved per-gallon margins [5][6] - Combined service and installation gross profit declined to $5.6 million from $6.9 million in the previous year, with installation gross profit increasing by $1.4 million but service gross profit worsening due to high service demand and additional costs [6] - Net income increased by $3 million to $36 million, reflecting the rise in adjusted EBITDA, partially offset by unfavorable changes in the fair value of derivative instruments [9][10] Expenses and Costs - Delivery, branch, and general & administrative expenses increased by $11 million compared to the prior year, with $5 million attributed to weather hedge contracts due to colder temperatures [7][8] - Delivery expenses rose by $3.8 million, or 13%, largely due to the 14% increase in heating oil and propane volume sold [8] Acquisitions and Future Outlook - The company did not close any acquisitions during the quarter but completed the purchase of a small heating oil business shortly thereafter, with expectations for additional prospects as the company approaches spring [13] - The company remains focused on customer service, cost control, and growing service and installation profitability, with plans to report fiscal 2026 second-quarter results in May [14] Company Overview - Star Group, L.P. provides home heating oil and propane products and services to residential and commercial customers in the U.S., serving approximately 402,200 full-service customers and 52,400 delivery-only customers as of September 30, 2023 [15]