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Bullboard - Stock Discussion Forum Superior Plus Corp T.SPB

Alternate Symbol(s):  SUUIF

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... see more

TSX:SPB - Post Discussion

Superior Plus Corp > Q3 Results
View:
Post by newcoin on Nov 09, 2022 5:24pm

Q3 Results

In announcing these results, Luc Desjardins, President and Chief Executive Officer said, “Our third quarter results were in line with our expectations and, based on our year-to-date performance, we are confirming our 2022 Adjusted EBITDA guidance range. Our sales volumes in the U.S. were higher due to the acquisitions completed in the past nine months, including Kamps Propane, Kiva Energy and the assets of the Quarles Delivered Fuels business. During the quarter, we also made great progress on the integration of the Quarles and Kamps acquisitions ahead of the heating season.These efforts will allow us to make operational improvements on the businesses sooner than anticipated.” 

Mr. Desjardins continued, “Consistent with our dynamic capital allocation approach communicated at our Investor Day in 2021, we commenced a normal course issuer bid on October 13, 2022, which provides us with an opportunity to return capital to shareholders and affirms our commitment to creating long-term shareholder value. We also completed three tuck-in acquisitions in Ontario, North Carolina and California as we continue to execute our growth through acquisition strategy in the U.S. and Canada. With these three acquisitions, we achieved the low end of our 2022 acquisition target range of $200 million to $300 million in enterprise value, excluding the Kamps acquisition.”

Comment by ol_griz on Nov 10, 2022 9:47am
"In line with [pretty poor] expectations."   That is one terrible report.  What is the way forward?  I'm not seeing it.
Comment by Baystboy07 on Nov 10, 2022 9:51am
The way forward is sell the Company....initiate a strategic review and do something...they keep buying companies to rhino EBITDA targets.
Comment by pjn0987654321 on Nov 10, 2022 9:52am
Same old story.  Good operational results undone by derivatives.  I hope when Luc goes, that will change.  
Comment by junglejames on Nov 10, 2022 10:01am
So when is Brookfield going to start shaking the tree here?  Management seems way out of their depth on the financing (derivitives ) side of operations.
Comment by bttmfischer on Nov 10, 2022 3:33pm
That (unable to figure out how to contract derivatives profitably) is a common intellectual disabilty of a number of canadian companies. Examples: ALA, PPL, IPL among others. Why is that I wonder?  Are any of the principals of those companies receive commissions, or other compensations like finder's fees in obtaining derivatives? Does anyone here know?
Comment by bttmfischer on Nov 11, 2022 10:09am
I don't believe Brookfield in a position to do anything like that. Marquard & Bahls of Frankfurt has over 20% of SPB's shares, on which they paid well over $11 per stock. Sincey M&B did not sell any large blocks of their holdings(at least it doesn't appear so), Brookfield won't try anything foolish(at least I don't think so). 
Comment by Detailoriented1 on Nov 11, 2022 10:58am
Brookfield could buy it all including M and B 20% holding. Offer $14 and take it private
Comment by bttmfischer on Nov 11, 2022 12:11pm
Yes they could, (and I widh they would),but I don't think they will, they are too shrewd.
Comment by Shylock40 on Nov 11, 2022 12:12pm
The most sensible thing said on this BB in a while.. Sit tight and just DCA...
Comment by Baystboy07 on Nov 11, 2022 12:39pm
M&B does not have over 20%....if they did they would trigger securities law requirement to make an offer for the whole company.
Comment by bttmfischer on Nov 11, 2022 7:23pm
No, Baystboy7, you are mistaken. The law was amended in 2022, and quite clear: unless the foreign entity by OWNING MORE than 33% of the voting shares GAINS NO CONTROL of a Canadian company, they can hold that many VOTING SHARES.  Another wrinkle is, they can hold up to 40%,IF ANOTHER CANADIAN ENTITY holds the remaining 60% of them, and thus THEY and not the foreign entity have a CONTROLLING ...more  
Comment by Baystboy07 on Nov 11, 2022 9:22pm
Great if you could post a link to this modified rule....can't seem to find it online...usually with this modifications all law forms publish reports....doesn't seem to be any for this change... am sure all on here would appreciate a link.
Comment by Konaboy on Nov 11, 2022 1:34pm
I quickly worked through the MB buys a while back and they averaged around 13.5 to 13.75. They are a tad underwater right now.
Comment by bttmfischer on Nov 11, 2022 8:01pm
Konaboy, Just to clarify matters: as of June 16, 2021 M&B owned 31,687,504 shares of SPB which is 18% of the total outstanding. Since then, they bought approximately another 3 million shares; however, they may have pulled the same stunt that Brookfield did, by having a third party buying stocks for them. (See BIPC v IPL). They are pretty tight lipped, and all they say that they bought SPB ...more  
Comment by Baystboy07 on Nov 11, 2022 9:09pm
Fine by me...I will take a bidding war at this point....can you post a link to the additional 3 million shares...seemed to missed that.
Comment by argon12 on Nov 18, 2022 9:52pm
Brookfield are superior operators of businesses. I would like to see one of their subs buy it out and put in their own people. I would be happy to take Brookfield stock in lieu of cash.
Comment by bttmfischer on Nov 24, 2022 10:07am
argon12, actually Brookfield, through BAM by holding Series1 Preferred shares of SPB already holds 15 percent  of Superior Plus' pro forma, fully diluted shares. These Series1 Exchangable Covertible shares can be converted to SPB common stocks at $11.63. At this time, Brokkfield is unlikely to do the conversion though. It is interesting to note that BAM and M&B each hold roughly the ...more  
Comment by Korcan on Dec 01, 2022 6:52am
This post has been removed in accordance with Community Policy
Comment by itsalie on Dec 01, 2022 3:19pm
I don't get BAM, stocks they own seem to do poorly. They also own a majority stack in v.cwc and it has traded flat for years. In the current oil rally cwv should have doubled.. 
Comment by thumble on Dec 09, 2022 4:11pm
They are long term investors ... LONG.
Comment by argon12 on Nov 18, 2022 9:54pm
I'm sure M&B would love to work with Brookfield on an arrangement beneficial for both.
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