| Segment Reporting |
16) Segment Reporting The Company operates as a single operating and reportable segment, which is managed on a consolidated basis. Revenues are primarily derived from the sale of petroleum products, heating and air conditioning equipment, and related repair, maintenance, and other services. See Note 3 – Revenue Recognition for additional information. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer (“CEO”). The CODM makes key operating decisions and primarily evaluates financial performance based on Adjusted EBITDA, defined as earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, other income (loss), net, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges). The CODM reviews net income and Adjusted EBITDA on a monthly basis to monitor performance, compare actual results to budgets and forecasts, and assess overall operating effectiveness. The CODM also monitors significant expenses, including: cost of product, cost of installations and service, general and administrative expenses as well as components of delivery and branch expenses. Because the Company has only one reportable segment, the amounts reported in the consolidated financial statements also represent the segment information, including total assets. The following table sets forth our segment financial information:
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Three Months Ended |
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Nine Months Ended |
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June 30, |
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June 30, |
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(in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Petroleum products sales: |
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Home heating oil and propane |
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$ |
153,132 |
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$ |
136,146 |
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$ |
1,134,344 |
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$ |
1,046,864 |
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Motor fuel and other petroleum products |
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113,877 |
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80,012 |
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270,436 |
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233,858 |
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Total petroleum products |
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267,009 |
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216,158 |
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1,404,780 |
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1,280,722 |
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Installations and service sales: |
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Equipment installations |
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32,745 |
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33,317 |
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100,691 |
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100,082 |
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Services |
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58,317 |
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56,143 |
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158,571 |
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155,922 |
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Total installations and services |
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91,062 |
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89,460 |
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259,262 |
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256,004 |
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Total sales |
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358,071 |
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305,618 |
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1,664,042 |
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1,536,726 |
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Cost and expenses: |
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Cost of product |
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195,199 |
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144,521 |
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876,174 |
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800,170 |
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Cost of installations |
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25,802 |
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27,306 |
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80,013 |
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81,878 |
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Cost of service |
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49,684 |
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47,934 |
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159,560 |
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151,237 |
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Delivery expenses |
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22,070 |
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22,546 |
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100,375 |
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94,884 |
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Operations expenses |
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19,407 |
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18,175 |
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59,561 |
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57,483 |
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Garage and plant expenses |
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11,574 |
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10,649 |
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35,588 |
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33,401 |
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Sales and marketing expenses |
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12,179 |
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11,868 |
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41,048 |
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40,788 |
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Customer service and credit expenses |
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14,309 |
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14,139 |
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40,906 |
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40,872 |
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Insurance related expenses |
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15,346 |
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9,139 |
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44,240 |
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32,526 |
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Information technology expenses |
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4,060 |
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4,133 |
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11,938 |
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11,841 |
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Weather hedge contracts loss |
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— |
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— |
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5,000 |
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3,108 |
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General and administrative expenses |
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8,039 |
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7,564 |
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24,348 |
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22,934 |
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Finance charge income |
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(1,877 |
) |
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(1,773 |
) |
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(4,030 |
) |
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(3,860 |
) |
Adjusted EBITDA |
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(17,721 |
) |
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(10,583 |
) |
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|
189,321 |
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169,464 |
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(Increase) decrease in the fair value of derivative instruments |
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8,019 |
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(603 |
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(13,398 |
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(11,962 |
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Depreciation and amortization expenses |
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8,333 |
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9,197 |
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25,373 |
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26,012 |
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Operating income (loss) |
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(34,073 |
) |
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(19,177 |
) |
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177,346 |
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155,414 |
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Interest expense, net |
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(3,586 |
) |
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(3,639 |
) |
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(11,548 |
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(11,114 |
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Amortization of debt issuance costs |
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(259 |
) |
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(274 |
) |
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(786 |
) |
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(804 |
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Income (loss) before income taxes |
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(37,918 |
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(23,090 |
) |
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165,012 |
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143,496 |
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Income tax expense (benefit) |
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(9,929 |
) |
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(6,461 |
) |
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48,928 |
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|
41,330 |
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Net income (loss) |
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$ |
(27,989 |
) |
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$ |
(16,629 |
) |
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$ |
116,084 |
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$ |
102,166 |
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