On July 31, 2024, Star Group LP (SGU, Financial) released its 8-K filing detailing the financial results for its fiscal 2024 third quarter, ending June 30, 2024. Star Group LP is a leading provider of home heating products and services, including heating and air conditioning equipment, home security, and plumbing services, operating primarily in the U.S.
Performance Overview
For the third quarter of fiscal 2024, Star Group LP reported a 10.5% increase in total revenue, reaching $331.6 million compared to $300.1 million in the same period last year. This growth was driven by higher volumes sold and increased selling prices for petroleum products. The volume of home heating oil and propane sold rose by 25.3% to 37.7 million gallons, despite a slight offset from net customer attrition.
Financial Achievements and Challenges
Star Group LP's net loss for the quarter decreased significantly by $12.9 million, resulting in a net loss of $11.0 million. This improvement was primarily due to an $18.9 million reduction in Adjusted EBITDA loss and a $0.7 million decrease in interest expense, partially offset by a $5.1 million decrease in income tax benefit and a $2.0 million unfavorable change in the fair value of derivative instruments.
“As the summer progresses, we continue to post solid results, benefitting from both higher volumes and improved per gallon gross margins in the recent quarter versus fiscal 2023,” said Jeff Woosnam, Star Group’s President and Chief Executive Officer.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $331.6 million | $300.1 million |
| Net Loss | $(11.0) million | $(23.9) million |
| Adjusted EBITDA Loss | $(4.1) million | $(22.9) million |
Balance Sheet and Cash Flow
Star Group LP's balance sheet showed total assets of $865.5 million as of June 30, 2024, slightly down from $875.5 million as of September 30, 2023. The company maintained a stable cash position with $45.7 million in cash and cash equivalents. Notably, the company reported a decrease in current liabilities to $331.1 million from $364.9 million, reflecting improved financial management.
Analysis and Outlook
Star Group LP's performance in the third quarter of fiscal 2024 demonstrates resilience and strategic growth, particularly in increasing revenue and reducing net loss. The company's ability to enhance per-gallon margins and expand through acquisitions positions it well within the competitive landscape of the oil and gas industry. However, challenges such as customer attrition and fluctuating derivative values remain areas to monitor.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Star Group LP for further details.
