The following is a summary of the Star Group, L.P. (SGU) Q1 2024 Earnings Call Transcript:
Financial Performance:
Star Group reported a drop in home heating oil and propane volume by 10% due to unfavorable weather conditions and other factors.
The product gross profit fell by 4% to roughly $145 million, however, the company saw a significant increase in service and installation gross profit, growing by $2.7 million to reach a total of $4.4 million.
The company reduced its Branch, delivery, and G&A expenses by 3% to $101 million.
Net income decreased by $600,000 in the quarter, totaling $13 million.
Adjusted EBITDA remained stable at around $49 million.
Business Progress:
Despite a fall in customer addition rates from the high levels of 2023, the company experienced improved net customer attrition in January compared to the previous year.
The company's internal customer satisfaction indicators, especially the Net Promoter Score, have continued to improve.
Star Group continued its acquisition strategy, acquiring two heating oil businesses in the quarter and closing another two businesses recently.
Star Group maintained commitment to operational efficiency, cost control, and strong margin management, laying a robust strategic foundation to face future challenges and opportunities.
The company plans to retain its unit repurchase plan, anticipating no changes in the near future.
More details: Star Group LP IR
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