STAR GROUP, L.P. Q4 FY2024 earnings call

• Fiscal 2024 total revenue fell modestly due to lower volumes and prices, but adjusted EBITDA rose by $14.7 million. • Net customer attrition was 4.2% in fiscal 2024, up slightly year-over-year; internal customer satisfaction indicators and loss rates improving but lower real estate activity impacted new customers. • Completed 5 acquisitions in fiscal 2024 adding over 20,000 customers and 23 million gallons of volume annually; active acquisition pipeline. • Recently completed $400 million revolver and $210 million term loan provides liquidity for acquisitions. • Mild temperatures in fiscal 2024 impacted volumes and customer additions, but team focused on cost containment and efficiency.

For the fiscal 2024 fourth quarter, home heating oil and propane volume decreased by 300,000 gallons (1.5%) to 18.5 million gallons. Product gross profit increased by $4 million (10%) to $42 million due to higher margins. Net service and installation gross profit rose by $3 million to almost $16 million. Delivery, branch, and G&A expenses increased by $6 million (7%) to $88 million. For the full year 2024, home heating oil and propane volume decreased by 6 million gallons (2%) to 253 million gallons. Product gross profit increased by approximately $21 million (5%) to $468 million. 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.

• Believes well prepared for upcoming heating season to respond to weather. • Acquisition pipeline remains active with near-term opportunities under review. • Credit facility provides liquidity for acquisitions and corporate purposes.

• Net customer attrition at 4.2% in fiscal 2024, up slightly year-over-year. • Lower real estate activity impacted new customer additions. • No prolonged cold or major storms in 2024, which usually drive customers to service operations.

Q: What's your weather forecasting for the upcoming heating season, read on current customer retention, and acquisition environment expectations?

A: Weather forecasting is difficult to rely on long-term; first two months of 2025 fiscal year (Oct-Nov) mild. Customer attrition rates improved but lower real estate activity impacted new customers. Acquisition pipeline strong, closed 5 acquisitions in 2024, with several opportunities under review including potential larger deals.