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STAMFORD, Conn., Aug. 1, 2014 (GLOBE NEWSWIRE) -- Star Gas Partners, L.P. (the "Partnership" or "Star") (NYSE:SGU), a home energy distributor and services provider, today announced financial results for its fiscal 2014 third quarter and the nine-month period ended June 30, 2014.
Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013
For the fiscal 2014 third quarter, Star reported a 24.4 percent increase in total revenue to $326.5 million, compared with $262.5 million in the prior-year period. The higher revenue was primarily due to an increase in home heating oil and propane volume, which rose by 4.4 million gallons, or 10.4 percent, to 47.1 million gallons. The volume increase year-over-year was largely due to the acquisition of Griffith Energy Services, Inc. ("Griffith"), completed March 4, 2014, and to the lag effect of colder temperatures experienced in the fiscal second quarter ended March 2014 versus March 2013.
During the fiscal 2014 third quarter, Star's net loss increased by $2.0 million to $9.6 million.
The Adjusted EBITDA loss for the quarter increased by $6.6 million, to $8.3 million, as higher home heating oil and propane volumes were more than offset by (i) an increase in bad debt expense of $2.5 million, which was tied to the higher level of sales in fiscal 2014 versus fiscal 2013 and the typical payment patterns of customers subsequent to the heating season; (ii) $2.3 million of prior period adjustments of which $1.7 million was to correct understatements of certain sales and petroleum taxes and related penalties that, while previously contested, all pertained to years prior to fiscal 2014 and should have been recorded in prior periods; and (iii) a return to more normal non-heating season home heating oil and propane margins (a $1.3 million impact) versus the high margins realized during the three months ended June 30, 2013. In addition, the Griffith acquisition recorded an Adjusted EBITDA loss of $0.8 million, in line with management's expectations.