Star Group LP (SGU) 2024 Q4 法說會逐字稿

Good day and welcome to the Star Group fiscal 2024 fourth quarter results conference call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加星空集團 2024 財年第四季業績電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Chris Witty, Investor Relations Advisor. Please go ahead.

我現在想將會議交給投資者關係顧問克里斯·威蒂 (Chris Witty)。請繼續。

Thank you, and good morning. With me on the call today are Jeff Woosnam, President and Chief Executive Officer; and Rich Ambury, Chief Financial Officer.

謝謝你，早安。今天與我一起參加電話會議的是總裁兼執行長 Jeff Woosnam；和財務長 Rich Ambury。

I would now like to provide a brief Safe Harbor statement. This conference call may include forward-looking statements that represent the company's expectations and beliefs concerning future events that involve risks and uncertainties that may cause the company's actual performance to be materially different from the performance indicated or implied by such statements.

我現在想提供一份簡短的安全港聲明。本次電話會議可能包括前瞻性陳述，代表公司對未來事件的預期和信念，這些未來事件涉及風險和不確定性，可能導致公司的實際業績與此類陳述所表明或暗示的業績存在重大差異。

All statements other than statements of historical facts included in this conference call are forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

本次電話會議中除歷史事實陳述外的所有陳述均為前瞻性陳述。儘管該公司認為此類前瞻性聲明中反映的預期是合理的，但不能保證此類預期將被證明是正確的。

Important factors that could cause actual results to be -- to differ materially from the company's expectations are enclosed in this current call, the company's annual report on Form 10-K for the fiscal year ended September 30, 2024, and the company's other filings with the SEC.

可能導致實際結果與公司預期有重大差異的重要因素包含在本次電話會議、本公司截至 2024 年 9 月 30 日的財政年度 10-K 表格年度報告以及公司提交的其他文件中。

All subsequent written and oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. Unless otherwise required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise after the date of this conference call.

所有隨後由本公司或代表本公司行事的人員所作的書面和口頭前瞻性陳述均明確符合警告性陳述的全部要求。除非法律另有要求，否則本公司不承擔公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或本次電話會議之後的其他情況。

I would now like to turn the call over to Jeff Woosnam. Jeff?

我現在想把電話轉給傑夫·伍斯南。傑夫？

Thanks, Chris, and good morning, everyone. Thank you for joining our fourth quarter conference call.

謝謝克里斯，大家早安。感謝您參加我們的第四季電話會議。

It's amazing how time passes so quickly, and here we are concluding another fiscal year and starting a new heating season. It's a great opportunity to reflect on Star's performance over the past 12 months.

令人驚訝的是，時間過得如此之快，我們即將結束另一個財政年度並開始新的供暖季節。這是反思 Star 在過去 12 個月表現的絕佳機會。

Notably, temperatures in fiscal 2024 were 15% warmer than normal, but roughly flat year over year. Total revenue fell modestly due to slightly lower volumes and selling prices. However, full-year adjusted EBITDA rose by $14.7 million versus fiscal 2023, reflecting an increase in home heating oil and propane per gallon margins and higher service and installation profitability.

值得注意的是，2024 財年的氣溫比正常高 15%，但與去年同期基本持平。由於銷量和售價略有下降，總收入略有下降。然而，與 2023 財年相比，全年調整後 EBITDA 成長了 1,470 萬美元，反映出每加侖家用暖氣油和丙烷利潤的增加以及服務和安裝盈利能力的提高。

We continue to be laser-focused on cost containment and operating efficiency, and I believe the benefits of those efforts are evident in our improved EBITDA results this year. At the same time, we remain vigilant in working to address net customer attrition, which, at 4.2% in fiscal 2024, was up slightly year-over-year.

我們繼續高度關注成本控制和營運效率，我相信這些努力的好處在我們今年改善的 EBITDA 業績中顯而易見。同時，我們仍保持警惕，努力解決客戶淨流失問題，2024 財年淨客戶流失率為 4.2%，較去年同期略有上升。

While our internal customer satisfaction indicators and loss rates continue to improve, we observed a lower level of real estate activity in the marketplace which impacted new customer additions. There were also no prolonged periods of cold or major storms during the year, which often drives customers to our higher-quality, faster-response service operations.

雖然我們的內部客戶滿意度指標和損失率持續改善，但我們觀察到市場上的房地產活動水平較低，這影響了新客戶的增加。年內也沒有出現長時間的寒冷或大風暴，這往往會促使客戶選擇我們更高品質、反應更快的服務營運。

Our acquisition program remains an important component of our growth strategy. And in total, we completed five separate transactions during fiscal 2024, adding just over 20,000 customers and 23 million gallons of heating oil and propane volume annually.

我們的收購計劃仍然是我們成長策略的重要組成部分。2024 財年，我們總共完成了五筆單獨的交易，每年增加了超過 20,000 名客戶以及 2,300 萬加侖的取暖油和丙烷量。

We continue to have an active pipeline of opportunities in various stages of review. And our recently completed credit facility, including a $400 million revolver and a $210 million term loan, provides additional liquidity for acquisitions and general corporate purposes. This leaves us well positioned to complete some near-term opportunities currently under review.

我們在各個審查階段繼續擁有積極的機會管道。我們最近完成的信貸安排，包括 4 億美元的循環貸款和 2.1 億美元的定期貸款，為收購和一般企業用途提供了額外的流動性。這使我們能夠很好地完成目前正在審查的一些近期機會。

I'm proud of the way our team has navigated through what ended up being another mild year. As we enter the heating season, we believe the company is well prepared to respond to anything Mother Nature throws our way while providing our customers with superior customer service.

我為我們的團隊度過了另一個溫和的一年而感到自豪。隨著我們進入供暖季節，我們相信公司已做好充分準備，可以應對大自然給我們帶來的任何影響，同時為我們的客戶提供優質的客戶服務。

With that, I'll turn the call over to Rich to provide additional comments on the quarter and year-end results. Rich?

接下來，我會將電話轉給 Rich，以提供有關季度和年終業績的更多評論。富有的？

Thanks, Jeff, and good morning, everyone. For the fiscal 2024 fourth quarter, our home heating oil and propane volume decreased by 300,000 gallons or about 1.5% to 18.5 million gallons as the additional volume provided from acquisitions was more than offset by the impact of net customer attrition and other factors.

謝謝傑夫，大家早安。在 2024 財年第四季度，我們的家用暖氣油和丙烷數量減少了 30 萬加侖或約 1.5%，至 1,850 萬加侖，因為收購提供的額外數量被淨客戶流失和其他因素的影響所抵消。

However, our product gross profit increased by $4 million or roughly 10% to $42 million, largely due to higher home heating oil and propane margins. In addition, our net service and installation gross profit rose by $3 million to almost $16 million.

然而，我們的產品毛利增加了 400 萬美元，約 10%，達到 4,200 萬美元，這主要是由於家用暖氣油和丙烷利潤率的提高。此外，我們的服務和安裝淨毛利潤增加了 300 萬美元，達到近 1,600 萬美元。

Delivery, branch, and G&A expenses increased by $6 million or about 7% to $88 million. Of that increase, approximately $2 million of that increase was related to recent acquisitions.

交付、分公司和一般管理費用增加了 600 萬美元，約 7%，達到 8,800 萬美元。其中，約 200 萬美元的成長與最近的收購有關。

Our net loss increased by $15 million during the quarter to $35 million as an unfavorable non-cash change in the fair value of derivative instruments of $28 million was only partially offset by a $1.7 million decrease in the adjusted EBITDA loss, $1 million lower net interest expense, and a $9 million increase in the income tax benefit.

本季我們的淨虧損增加了1,500 萬美元，達到3,500 萬美元，原因是衍生性工具公允價值2,800 萬美元的不利非現金變動僅被調整後EBITDA 虧損減少170 萬美元、淨利息減少100 萬美元所部分抵銷。

The adjusted EBITDA loss decreased by $1.7 million to approximately $30 million in the quarter, reflecting higher home heating oil and propane per gallon margins, an increase in service and installation profitability, and additional EBITDA from acquisitions which more than offset an increase in operating expenses.

本季度調整後的EBITDA 虧損減少了170 萬美元，至約3000 萬美元，反映出家庭取暖油和丙烷每加侖利潤率的提高、服務和安裝盈利能力的增加以及收購帶來的額外EBITDA 抵消了運營費用的增加。

Moving over to the full year for 2024. Our home heating oil and propane volume decreased by 6 million gallons or 2% to 253 million gallons, again, as the additional volume provided from acquisitions and other factors was more than offset by net customer attrition. Temperatures in our geographic areas of operations were less than 0.1% warmer than the prior year period.

轉至 2024 年全年。我們的家用暖氣油和丙烷用量再次減少 600 萬加侖或 2%，至 2.53 億加侖，因為收購和其他因素提供的額外用量被淨客戶流失所抵消。我們營運地理區域的氣溫比去年同期高出不到 0.1%。

Our product gross profit increased by approximately $21 million or 5% to $468 million as an increase in home heating oil and propane margins more than offset the impact from the decline in liquid products sold. In addition, our net service and installation gross profit increased by $10 million to $34 million. Delivery, branch and G&A expenses increased by $15 million to $395 million compared to $379 million in fiscal 2023.

我們的產品毛利增加了約 2,100 萬美元或 5%，達到 4.68 億美元，因為家用暖氣油和丙烷利潤的增加足以抵消液體產品銷售下降的影響。此外，我們的淨服務和安裝毛利潤增加了 1,000 萬美元，達到 3,400 萬美元。交付、分公司和一般管理費用增加了 1,500 萬美元，達到 3.95 億美元，而 2023 財年為 3.79 億美元。

During fiscal 2024, the company recorded a benefit under its weather hedge of $7.5 million compared to a benefit of $12.5 million during fiscal 2023, accounting for a $5 million increase in expense. The year-over-year change also reflects $6 million of expenses associated with recent acquisitions, along with a $4 million increase in base business expenses.

2024 財年，該公司的天氣對沖收益為 750 萬美元，而 2023 財年為 1,250 萬美元，導致費用增加了 500 萬美元。年比變化也反映與近期收購相關的 600 萬美元費用，以及基礎業務費用增加 400 萬美元。

Net income rose by $3 million to $35 million as a $14.7 million increase in adjusted EBITDA and a $4 million decrease in net interest expense was largely offset by an unfavorable change in the fair value of derivative instruments, again that's non-cash, of $17 million.

淨利潤增加了300 萬美元，達到3500 萬美元，調整後EBITDA 增加了1470 萬美元，淨利息支出減少了400 萬美元，這在很大程度上被衍生工具（同樣是非現金）公允價值1700 萬美元的不利變化所抵消。

Adjusted EBITDA rose by $14.7 million to $111.6 million as higher home heating oil and propane per gallon margins, an increase in service and installation profitability, and the additional adjusted EBITDA from acquisitions more than offset an $11 million decrease in home heating oil and propane volume in the base business, a $5 million reduction in the company's weather hedge benefit, and an increase in base business operating expenses.

調整後的EBITDA 成長了1470 萬美元，達到1.116 億美元，原因是家庭取暖油和丙烷每加侖利潤率提高、服務和安裝盈利能力提高，以及收購帶來的額外調整後EBITDA 抵消了家庭取暖油和丙烷銷售1,100 萬美元的下降。

That concludes my discussions on the financial results. Jeff?

我對財務表現的討論到此結束。傑夫？

Thanks, Rich. At this time, we're pleased to address any questions you may have. Betsy, please open the phone lines for questions.

謝謝，里奇。目前，我們很樂意解答您可能提出的任何問題。貝特西，請撥打電話詢問問題。

(Operator Instructions) Michael Prouting, 10K Capital.

（操作員說明）Michael Prouting，10K Capital。

Hey, just a couple of questions. I'll ask them all at once. First, Jeff, if I'm wondering what your -- what the forecasting services might be telling you to expect as far as the upcoming heating season. Second, I was curious to get your read on current customer retention.

嘿，只有幾個問題。我馬上去問他們所有人。首先，傑夫，如果我想知道您的預測服務可能會告訴您對即將到來的供暖季節的預期。其次，我很想了解您對目前客戶保留率的了解。

And third question, I just wanted to get your read also on the acquisition environment. It looks like you were able to put a decent amount of capital to work in the prior fiscal year. Just wondering what your expectations might be as far as the upcoming fiscal year and, in particular, the potential for some larger deals? Thanks.

第三個問題，我只是想讓您了解收購環境。看來您在上一財年投入了相當多的資金。只是想知道您對即將到來的財政年度的期望是什麼，特別是一些更大交易的潛力？謝謝。

Michael. Can you repeat your first question for me, please? I'm sorry.

麥可.您能幫我重複您的第一個問題嗎？對不起。

Oh yeah, of course. I just wanted to get your thoughts on what kind of weather you might be expecting for the upcoming heating season based on professional weather forecasting services that you guys subscribe to.

哦，是的，當然。我只是想根據你們訂閱的專業天氣預報服務，了解你們對即將到來的供暖季節可能會出現什麼樣的天氣的想法。

Yeah. We try not to look too far out. It's difficult to rely on long-term weather forecasts, as you probably know. The first two months of the fiscal year of 2025 have been -- October and November have been a little bit mild than normal. November came in about 20% more mild than normal.

是的。我們盡量不要把目光看得太遠。您可能知道，很難依賴長期天氣預報。2025 財年的前兩個月 10 月和 11 月的情況比正常情況要溫和一些。11 月的氣候比正常情況溫和約 20%。

Obviously, December is starting off more favorably so we'll just have to see how the quarter ends up. But getting past that, I'm not a weatherman. So I'm not necessarily going to make any strong predictions. We plan on normal. Put it that way.

顯然，12 月的開局更加有利，所以我們只需要看看這個季度的結果如何。但除此之外，我不是天氣預報員。所以我不一定會做出任何強而有力的預測。我們計劃正常。就這樣說吧。

Okay, fair enough. Okay.

好吧，很公平。好的。

In terms of just overall customer attrition, as I said in my remarks and if you recall, we really started in 2024 -- in fiscal 2024, we kind of started off slow. Losses have -- our customer losses and overall churn rates have remained in really good shape and continue to improve, as have all of our internal customer satisfaction indicators, our Net Promoter Scores, all the things that we look at, to ensure that we're doing the right things and are focused on the right things.

就整體客戶流失而言，正如我在發言中所說，如果您還記得的話，我們實際上是從 2024 年開始的——在 2024 財年，我們起步緩慢。損失——我們的客戶損失和整體客戶流失率一直保持良好狀態，並持續改善，我們所有的內部客戶滿意度指標、淨推薦值以及我們關注的所有因素也是如此，以確保我們「我們正在做正確的事情並專注於正確的事情。

But just as a result of just a lower level of overall market activity, a lot of which related to the real estate markets, did impact our gain rates for the year and particularly in that first quarter. And then we really didn't have any weather events and we're dealing with in 2024.

但正是由於整體市場活動水平較低（其中許多與房地產市場相關），確實影響了我們今年的收益率，尤其是第一季。然後我們確實沒有發生任何天氣事件，而且我們正在處理 2024 年的情況。

I think it's probably the fourth-warmest winter in history coming off the third-warmest winter in history in '23. And that's certainly impacts and reduces kind of service disruptions and other things that tend to attract customers to our full-service brands. So that has an impact in the fiscal year.

我認為這可能是繼 23 年曆史上第三個最熱的冬天之後的歷史上第四個最熱的冬天。這肯定會影響並減少服務中斷和其他吸引客戶使用我們全方位服務品牌的事情。這會對本財年產生影響。

Right. No, that totally makes sense.

正確的。不，這完全有道理。

And on the acquisition front, our pipeline remains strong. It's encouraging. The team has been extremely busy. We closed five acquisitions in 2024. And most recently, we had another acquisition close in October, a smaller deal.

在收購方面，我們的通路仍然強勁。這是令人鼓舞的。團隊一直都非常忙碌。我們在 2024 年完成了五項收購。最近，我們在 10 月完成了另一筆收購，規模較小。

We made a larger acquisition transaction in September of -- right at the end of 2024, which was very encouraging. And we've got several opportunities right now currently under review, some of them in later stages of review.

2024 年 9 月，也就是 2024 年底，我們進行了一項規模更大的收購交易，這非常令人鼓舞。我們現在有幾個機會正在接受審查，其中一些處於審查的後期階段。

Read into that what you may, but we're very optimistic moving forward. We'll just have to see how everything works out. But the acquisition pipeline certainly looks encouraging.

你可以讀一下，但我們對前進非常樂觀。我們只需要看看一切進展如何。但收購管道看起來確實令人鼓舞。

Okay. That's great news. Well, keep up the good work on the cash conversion cycle. And look forward to joining you in a couple of months.

好的。這是個好消息。好吧，繼續做好現金轉換週期的工作。並期待在幾個月後加入您。

You bet. Thank you, Mike.

你打賭。謝謝你，麥克。

(Operator Instructions) At this time, there appear to be no further questions in the queue. I'd like to turn the call back to Mr. Woosnam for any closing remarks.

（操作員說明） 此時，隊列中似乎沒有其他問題。我想將電話轉回伍斯南先生，請他發表結束語。

Well, thank you for taking the time to join us today and your ongoing interest in Star Group. We look forward to sharing our 2025 fiscal first quarter results in February. In the meantime, have a wonderful holiday season. Thank you.

好的，感謝您今天抽出時間加入我們以及您對星空集團的持續關注。我們期待在 2 月分享 2025 財年第一季的業績。同時，祝您有個美好的假期。謝謝。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。