Star Gas Partners, L.P. (NYSE:SGU) Q4 2019 Earnings Conference Call - Preliminary Transcript
Dec 06, 2019 • 11:00 am ET
Richard F. Ambury
the impact of higher home heating oil and propane margins and an increase in gross profit from motor fuels more than offset the decrease in home heating oil and propane volume. Operating cost rose by 16% or 4%. I'm sorry, rose by $16 million or 4% to $397 million, again largely due to the additional cost from acquisitions.
Net income decreased by $38 million to $18 million as an increase in adjusted EBITDA of $9 million was more than offset again by an unfavorable non-cash change in the fair value of derivatives of $36.5 million and a $7 million gain in 2008 recorded from the sale of our security business. Adjusted EBITDA rose by $9 million or 11% to $95.4 million.
Acquisitions provided $5 million of adjusted EBITDA. While in the base business adjusted EBITDA rose by $4 million. However and looking at the year, adjusted EBITDA was reduced by about $10 million to the following four items, one, $1.6 million due to the implementation of the revenue recognition accounting standard. We had higher legal and professional expenses of about 3 million bucks. We also took a charge of $1.5 billion related to the discontinued use of a tank monitoring system and we did have an adjusted EBITDA loss of $4 million, again, associated with our concierge program that we've greatly curtailed this past January.
Before I turn the call back over to Jeff. I am pleased to announce that we amended and extended our bank facility this past Wednesday and as of a result, we increased our term loan from $90 million to $130 million. All terms rates and covenants stay the same. And with that, I'd like to turn the call back over to Jeff.
Jeffrey M. Woosnam
Thanks, Rich. At this time, we're pleased to address any questions you may have. (ph) Jamie , please open the phone lines for questions.