-Superior Plus Corp. (“Superior” or “the company”) (TSX: SPB) today released its second quarter results for the period ended June 30, 2024. Unless otherwise expressed, all financial figures are expressed in U.S. dollars.
“We were pleased with the performance of the propane distribution business this quarter, even in this seasonally slower period, despite the impact of warmer weather on volumes in the United States. Our Canadian Propane Distribution business delivered a strong quarter, posting year over year growth while lapping results that included the contribution from divested assets. This success was driven by our disciplined focus on customer acquisition and growth, cost-saving initiatives and margin management,” said Allan MacDonald, President and Chief Executive Officer.
“Certarus grew its delivered volumes by over 15% compared to the prior year quarter. Despite some regional pricing pressures, we are pleased with the returns generated by the Certarus business. We are confident that Certarus’ leadership in CNG, RNG and hydrogen distribution gives Superior Plus a significant strategic advantage in these rapidly evolving sectors,” continued MacDonald.
Certarus Business Update
- Certarus achieved Adjusted EBITDA of $27.2 million in Q2 2024, a decrease of $2.6 million compared to Q2 2023 Pro Forma Adjusted EBITDA of $29.8 million.
- The business faced increased competition in West Texas throughout the quarter, however, we continue to expect a robust market into Q4 and Q1 when demand returns for heating and other applications and continue to expect excellent returns and growth in this highly attractive, leading-edge segment.
- The business continued to add to its industry leading fleet of mobile storage units (“MSUs”), adding 17 units during the quarter for a total of 770 as at June 30, 2024, while increasing MMBTU per average MSU from 9,200 in the prior year quarter to 9,238.
Leadership Team Update
- Following the announcement of the departure of Curtis Philippon on July 2, 2024, Superior is pleased to announce that Natasha Cherednichenko has been appointed as President of Certarus. Natasha had been in the role of Chief Operating Officer of Certarus since 2020 and will continue to lead the talented Certarus team she has helped build and will maintain the company’s focus on growing the high potential CNG, RNG and hydrogen businesses.
- Superior is also pleased to announce the appointment of Tommy Manion as SVP & Head of the U.S. Propane Distribution business. Tommy joined Superior in August 2019 as the VP of Operations and has spent his 33-year career in the propane industry, working in operations ranging from family-owned independents to major national retailers. Tommy’s wealth of experience is evident in his commitment to safety, a customer-centric focus and desire to drive organic growth.
Debt and Leverage Update
- Superior is focused on managing both Net debt and its Leverage Ratio. Superior’s Leverage Ratio at June 30, 2024 was 3.8x, compared to 3.9x at December 31, 2023. Superior has continued to pursue its renewed organic growth focused strategy that will seek growth through self-funded reinvestment in the businesses. In line with this strategy, Superior still expects a ~0.2x reduction in its Leverage Ratio in 2024, with a long-term target of ~3.0x.
Quarterly Dividend
- Superior is declaring a quarterly common share dividend of CAD $0.18 per share, payable to shareholders of record as of September 27, 2024. The common share dividend will be payable on October 15, 2024.
