STAR GROUP LP
For the period ended Dec 31, 2023. Filed Feb 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Feb 7, 2024
SGU$13.18+0.2%Stored close · as of Nov 6, 2026
Contents
Condensed Consolidated Balance Sheets as of December 31, 2023 (unaudited) and September 30, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, | September 30, | |
|---|---|---|
| 2023 | 2023 | |
| (in thousands) · (unaudited) | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $19,925 | $45,191 |
| Receivables, net of allowance of $8,074 and $8,375, respectively | 187,122 | 114,079 |
| Inventories | 84,033 | 56,463 |
| Fair asset value of derivative instruments | — | 10,660 |
| Prepaid expenses and other current assets | 38,409 | 28,308 |
| Total current assets | 329,489 | 254,701 |
| Property and equipment, net | 105,158 | 105,404 |
| Operating lease right-of-use assets | 87,725 | 90,643 |
| Goodwill | 262,347 | 262,103 |
| Intangibles, net | 73,969 | 76,306 |
| Restricted cash | 250 | 250 |
| Captive insurance collateral | 72,020 | 70,717 |
| Deferred charges and other assets, net | 13,981 | 15,354 |
| Total assets | $944,939 | $875,478 |
| LIABILITIES AND PARTNERS’ CAPITAL | ||
| Current liabilities | ||
| Accounts payable | $45,881 | $35,609 |
| Revolving credit facility borrowings | 51,877 | 240 |
| Fair liability value of derivative instruments | 14,832 | 118 |
| Current maturities of long-term debt | 20,625 | 20,500 |
| Current portion of operating lease liabilities | 17,923 | 18,085 |
| Accrued expenses and other current liabilities | 118,382 | 115,606 |
| Unearned service contract revenue | 75,371 | 63,215 |
| Customer credit balances | 90,916 | 111,508 |
| Total current liabilities | 435,807 | 364,881 |
| Long-term debt | 123,258 | 127,327 |
| Long-term operating lease liabilities | 74,752 | 77,600 |
| Deferred tax liabilities, net | 24,172 | 25,771 |
| Other long-term liabilities | 16,298 | 16,175 |
| Partners’ capital | ||
| Common unitholders | 288,789 | 281,862 |
| General partner | (4,831) | (4,615) |
| Accumulated other comprehensive loss, net of taxes | (13,306) | (13,523) |
| Total partners’ capital | 270,652 | 263,724 |
| Total liabilities and partners’ capital | $944,939 | $875,478 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three MonthsEnded December 31, | ||
|---|---|---|
| (in thousands, except per unit data - unaudited) | 2023 | 2022 |
| Sales: | ||
| Product | $448,550 | $569,929 |
| Installations and services | 79,546 | 78,258 |
| Total sales | 528,096 | 648,187 |
| Cost and expenses: | ||
| Cost of product | 303,338 | 419,093 |
| Cost of installations and services | 75,107 | 76,543 |
| (Increase) decrease in the fair value of derivative instruments | 19,030 | 17,636 |
| Delivery and branch expenses | 94,364 | 97,936 |
| Depreciation and amortization expenses | 8,386 | 7,837 |
| General and administrative expenses | 7,021 | 6,856 |
| Finance charge income | (771) | (1,319) |
| Operating income | 21,621 | 23,605 |
| Interest expense, net | (3,218) | (4,274) |
| Amortization of debt issuance costs | (250) | (329) |
| Income before income taxes | 18,153 | 19,002 |
| Income tax expense | 5,174 | 5,463 |
| Net income | $12,979 | $13,539 |
| General Partner’s interest in net income | 118 | 122 |
| Limited Partners’ interest in net income | $12,861 | $13,417 |
| Basic and diluted income per Limited Partner Unit (1): | $0.32 | $0.33 |
| Weighted average number of Limited Partner units outstanding: | ||
| Basic and Diluted | 35,593 | 35,916 |
(1)See Note 15 - Earnings Per Limited Partner Unit.
CONDENSED CONSOLIDATED STATEM ENTS OF COMPREHENSIVE INCOME (LOSS)
| Three MonthsEnded December 31, | ||
|---|---|---|
| (in thousands - unaudited) | 2023 | 2022 |
| Net income | $12,979 | $13,539 |
| Other comprehensive income: | ||
| Unrealized gain on pension plan obligation | 319 | 380 |
| Tax effect of unrealized gain on pension plan obligation | (75) | (97) |
| Unrealized gain on captive insurance collateral | 932 | 355 |
| Tax effect of unrealized gain on captive insurance collateral | (202) | (74) |
| Unrealized loss on interest rate hedges | (1,042) | (377) |
| Tax effect of unrealized loss on interest rate hedges | 285 | 102 |
| Total other comprehensive income | 217 | 289 |
| Total comprehensive income | $13,196 | $13,828 |
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL
| Number of Units · Accum. Other · Total | ||||||
|---|---|---|---|---|---|---|
| (in thousands - unaudited) | Common | GeneralPartner | Common | GeneralPartner | ComprehensiveIncome (Loss) | Partners’Capital |
| Balance as of September 30, 2023 | 35,603 | 326 | $281,862 | $(4,615) | $(13,523) | $263,724 |
| Net income | — | — | 12,861 | 118 | — | 12,979 |
| Unrealized gain on pension plan obligation | — | — | — | — | 319 | 319 |
| Tax effect of unrealized gain on pension plan obligation | — | — | — | — | (75) | (75) |
| Unrealized gain on captive insurance collateral | — | — | — | — | 932 | 932 |
| Tax effect of unrealized gain on captive insurance collateral | — | — | — | — | (202) | (202) |
| Unrealized loss on interest rate hedges | — | — | — | — | (1,042) | (1,042) |
| Tax effect of unrealized loss on interest rate hedges | — | — | — | — | 285 | 285 |
| Distributions | — | — | (5,784) | (334) | — | (6,118) |
| Retirement of units | (13) | — | (150) | — | — | (150) |
| Balance as of December 31, 2023 (unaudited) | 35,590 | 326 | $288,789 | $(4,831) | $(13,306) | $270,652 |
| Number of Units · Accum. Other · Total | ||||||
| (in thousands - unaudited) | Common | GeneralPartner | Common | GeneralPartner | ComprehensiveIncome (Loss) | Partners’Capital |
| Balance as of September 30, 2022 | 36,092 | 326 | $277,177 | $(3,656) | $(15,606) | $257,915 |
| Net income | — | — | 13,417 | 122 | — | 13,539 |
| Unrealized gain on pension plan obligation | — | — | — | — | 380 | 380 |
| Tax effect of unrealized gain on pension plan obligation | — | — | — | — | (97) | (97) |
| Unrealized gain on captive insurance collateral | — | — | — | — | 355 | 355 |
| Tax effect of unrealized gain on captive insurance collateral | — | — | — | — | (74) | (74) |
| Unrealized loss on interest rate hedges | — | — | — | — | (377) | (377) |
| Tax effect of unrealized loss on interest rate hedges | — | — | — | — | 102 | 102 |
| Distributions | — | — | (5,482) | (292) | — | (5,774) |
| Retirement of units | (411) | — | (3,596) | — | — | (3,596) |
| Balance as of December 31, 2022 (unaudited) | 35,681 | 326 | $281,516 | $(3,826) | $(15,317) | $262,373 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three MonthsEnded December 31, | ||
|---|---|---|
| (in thousands - unaudited) | 2023 | 2022 |
| Cash flows provided by (used in) operating activities: | ||
| Net income | $12,979 | $13,539 |
| Adjustment to reconcile net income to net cash provided by (used in) operating activities: | ||
| (Increase) decrease in fair value of derivative instruments | 19,030 | 17,636 |
| Depreciation and amortization | 8,636 | 8,166 |
| Provision for losses on accounts receivable | 649 | 1,046 |
| Change in deferred taxes | (1,591) | (1,224) |
| Change in weather hedge contracts | (980) | 350 |
| Changes in operating assets and liabilities: | ||
| Increase in receivables | (73,590) | (115,164) |
| Increase in inventories | (26,805) | (28,717) |
| Decrease (increase) in other assets | 704 | (2,005) |
| Increase in accounts payable | 11,095 | 22,366 |
| Decrease in customer credit balances | (21,852) | (14,700) |
| Increase in other current and long-term liabilities | 11,417 | 5,966 |
| Net cash used in operating activities | (60,308) | (92,741) |
| Cash flows provided by (used in) investing activities: | ||
| Capital expenditures | (3,174) | (3,095) |
| Proceeds from sales of fixed assets | 185 | 215 |
| Proceeds from sale of certain assets | — | 2,202 |
| Purchase of investments | (409) | (215) |
| Acquisitions | (2,477) | (1,193) |
| Net cash used in investing activities | (5,875) | (2,086) |
| Cash flows provided by (used in) financing activities: | ||
| Revolving credit facility borrowings | 51,637 | 116,298 |
| Term loan repayments | (4,000) | (4,125) |
| Distributions | (6,118) | (5,774) |
| Unit repurchases | (150) | (3,596) |
| Customer retainage payments | (452) | (5) |
| Net cash provided by financing activities | 40,917 | 102,798 |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (25,266) | 7,971 |
| Cash, cash equivalents, and restricted cash at beginning of period | 45,441 | 14,870 |
| Cash, cash equivalents, and restricted cash at end of period | $20,175 | $22,841 |
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