The following is a summary of the Superior Plus Corp. (SUUIF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Superior Plus recorded a 15% increase in EBITDA in Q1 compared to last year, despite challenges such as a warmer than usual winter.
Certarus, a segment of the company, grew by 9% in Q1, expanding its fleet with an addition of 24 Mobile Storage Units (MSUs).
U.S. propane business posted a 1% increase in EBITDA from last year, accounting for an adjusted EBITDA of $131.4 million in Q1.
Q1 adjusted EBITDA was $236 million, an all-time Q1 high for the company, mainly attributed to Certarus.
Net earnings were $85 million, a decrease compared to $109 million in the same period last year.
The company plans to sustain an improved leverage metric of 3.7 times by the end of 2024 with a longer-term target of 3.0 times.
Business Progress:
Superior Plus has committed to becoming a multi-energy solutions company focused on sustainable organic growth.
Acquisition of Certarus has made Superior Plus a leader in renewable natural gas distribution and hydrogen research.
Plans to build new capabilities through 2024 to acquire customers organically, reduce customer churn, and lower delivery costs.
The company is considering potential acquisition opportunities that align with their growth plan.
CapEx guidance maintains an estimate of roughly $230 million for 2024 and a quarterly dividend of $0.18 per share has been approved.
The company is focused on organic growth, new customer segments, improved retention, and pricing services on a rental basis to create a steadier revenue stream.
More details: SUPERIOR PLUS CORP IR
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