Star Gas Partners, L.P. (NYSE:SGU) Q3 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 11:00 am ET


Star Gas Partners, L.P. (NYSE:SGU) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Star Group Fiscal 2020 Third Quarter Results Conference Call. [Operator Instructions]

After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to, Chris Witty, Investor Relations moderator. Please go ahead.

Chris Witty

Thank you, and good morning. With me on the call today are Jeff Woosnam, Chief Executive Officer; and Rich Ambury, Chief Financial Officer. 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 and may cause the Company's actual performance to be materially different from the performance indicated or implied by such statements. All statements other than statements of historical facts included in this conference call are forward-looking statements, including those related to the impact of COVID-19 on the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurances such expectations will prove to have been correct.

Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in this conference call, the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2019. And in the Company's quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2020. 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.

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

Jeffrey M. Woosnam

Thanks, Chris, and good morning everyone. As we continue to manage through the ongoing COVID-19 pandemic and associated economic downturn, I'm pleased to report that Star's fiscal third quarter result was one of strong performance. Most notably, the significant increase achieved year-over-year and the Company's adjusted EBITDA. Benefiting from cooler than normal spring temperatures, our heating oil and propane volumes rose nearly 40%, margins were stable and operating expenses declined by over $10 million in the base business.

We also experienced lower net customer attrition for the quarter, which was 1.2% versus 1.9% for the same period last year. On a fiscal year-to-date basis, we are very encouraged by the year-over-year increase in adjusted EBITDA of $33 million, which includes $9 million from acquisitions along with a $24 million improvement in the base business, reflecting the many steps taken to reduce expenses and increase operating efficiency this year. We also had 7300 or 41% fewer net customer losses versus the same nine-month period a year ago.

I firmly believe this is a direct reflection of our strategy to focus on the execution of our core business and continued emphasis