Superior Plus Corp T.SPB

Alternate Symbol(s): SUUIF

Utilities Utilities - Regulated Gas

Superior Plus Corp. is a Canada-based distributor of propane, compressed natural gas, renewable energy and related products and services. Through its primary businesses, propane distribution and CNG, RNG and hydrogen distribution, it delivers clean burning fuels to residential, commercial, utility, agricultural and industrial customers. Its segments include U.S. Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), North American Wholesale Propane Distribution (Wholesale Propane) and Certarus Ltd. (Certarus). The U.S. Propane segment distributes propane gas and liquid fuels primarily in the Eastern United States and California, as well as the Midwest to residential and commercial customers. The Canadian Propane segment distributes propane gas and liquid fuels across Canada to residential and commercial customers. The Wholesale Propane segment distributes propane gas and other natural gas liquids across Canada and the United States.

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Superior Plus Corp

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Post by BSdetector2016on Nov 06, 2024 6:00pm

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Post# 36299807

Quarterly dividend is being reduced from C$0.18 to C$0.045

**Superior Announces Third Quarter Results, Launches Superior Delivers Initiative and Reduces Dividend in Favour of Share Repurchases**

All dollar amounts are in USD unless otherwise noted

Announcing Superior Delivers, a transformative initiative which will contribute at least $50 million of incremental Adjusted EBITDA(1) annually from propane operations by the end of 2027.
Introducing a more balanced approach to capital allocation aimed at increasing shareholder value and providing additional financial flexibility. Superior is shifting its return of capital priorities from dividends to share repurchases. As a result, going forward the company’s quarterly dividend is being reduced from C$0.18 to C$0.045 per common share effective immediately.
Third quarter Adjusted EBITDA(1) of $17.4 million represents a 6% decrease from the prior year quarter, due to lower Adjusted EBITDA(1) in the propane business, partially offset by a $4.0 million increase at Certarus.
Certarus’ Adjusted EBITDA(1) grew 15% in the third quarter compared to the prior year quarter, a strong result despite some increased regional pricing pressures.
Superior is reducing its 2024 Adjusted EBITDA(1) growth expectation from ~5% to flat compared to 2023 Pro Forma Adjusted EBITDA(1). The revision is due to Adjusted EBITDA year-to-date driven by warmer-than-normal weather and increased competitive pressure at Certarus.
The company is also revising Capital Expenditure guidance from $230 million to $190 million for 2024, reflecting improved capital-efficiency in the businesses.
Superior’s Net loss of $62.0 million in the third quarter was an improvement of $18.3 million compared to the net loss of $80.3 million in the prior year quarter due primarily to a higher income tax recovery and lower transaction, restructuring and other costs.