Star Gas Partners, L.P. (NYSE:SGU) Q4 2019 Earnings Conference Call - Final Transcript

Dec 06, 2019 • 11:00 am ET

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Star Gas Partners, L.P. (NYSE:SGU) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] And our first question today comes from Matthew Spiegelman from Locust Wood Capital. Please go ahead with your question.

Analyst
Steve Errico

Hi, Rich, and Jeff, actually Steve Errico, Matt is on the line. I just wanted to say congratulations guys. It's really impressive the way you got these expenses under control, it's very nice to see. As far as the, my question on your attrition, Jeff, you bucketed it that there were three headwinds. So I think -- we believe there was low-margin customers, credit and also prices; was it a third, a third, a third or was it more -- could you give us a little more color on that? And if so, do the first two, which are the lower margin and the credit, have we kind of pruned those out, so they shouldn't be as much of a headwind next year?

Executive
Jeffrey M. Woosnam

Yeah, I would say, it is roughly a third, a third and a third, probably a little bit more weighted towards the uneconomic accounts in fiscal year '19. We have worked our way through a number of those accounts the majority of them and I think as we move forward. That's going to be a less of an issue for us. So we obviously made a business decision that we needed to part ways with some of those economic accounts, but that would make sense for the business in a lot of ways, but that's essentially the way it broke down.

Analyst
Steve Errico

And then also the closing down of the concierge business, does that allow you to reallocate those people to other parts of the business. And will that help our customer maintenance and perhaps help our attrition?

Executive
Jeffrey M. Woosnam

I think that we have out -- we have reallocated some of the concierge's staff to other parts of the business. And have the opportunity to do that and that worked well, because part of -- the timing of doing that is as we're heading back into a new heating season. So the timing worked well and we are going to have a period of higher activity and, so I think, but to some degree, there also -- there were also reductions associated with that.

Analyst
Steve Errico

Okay. Well, again, guys, like we're very enthused about the direction, about the cost cutting. So, congratulations, and look forward to a good year this year.

Executive
Richard F. Ambury

Thank you, Steve.

Operator
Operator

[Operator Instructions] And we do have a follow-up question from Matthew Spiegelman from Locust Wood Capital.

Analyst
Matthew Spiegelman

Hey guys, this is actually Matt. I just had one follow-up to Steve's questions. In the beginning of the call, you mentioned that some of the operational effectiveness initiatives, we're sort of undertaken on a small -- I think what you said was a small sample size of the business. Just wanted to understand what that meant, what parts of the business you were doing these in and what that might mean for the larger opportunity in terms of cost savings.

Executive
Jeffrey M. Woosnam

Yeah. So it really is -- its a two-tiered