Star Group, L.P. (NYSE:SGU) Q1 2024 Earnings Conference Call February 8, 2024 11:00 AM ET

Company Participants

Chris Witty - Investor Relations Adviser

Jeffrey Woosnam - President and CEO

Richard Ambury - Chief Financial Officer

Conference Call Participants

Timothy Mullen - Laurelton Management

Michael Prouting - 10K Capital LLC

Operator

Good day, and welcome to the Star Group Fiscal 2024 First Quarter Results Conference Call and Webcast. [Operator Instructions] Please note that this event is being recorded.

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

Chris Witty

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.

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.

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. 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, 2023, and the company's other filings with the SEC.

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. Please go ahead, Jeff.

Jeffrey Woosnam

Thanks, Chris, and good morning, everyone. The beginning of fiscal 2024 has provided both challenges and opportunities, which we believe we have navigated well. While product cost decline providing relief to customers, warmer temperatures resulted in lower demand and therefore, reduced overall volumes.

However, due to cost discipline, weather hedges benefit and higher per gallon margins, adjusted EBITDA was nearly equivalent to the prior year period. New customer additions were down from the extraordinary levels we experienced in the first quarter of fiscal 2023. This was due in part to the mild weather, but also reflected much different market conditions, resulting in lower lead activity. Customer losses, however, remained in check for the quarter.