Superior Plus Corp.

Superior Plus 2025 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Chris Lichtenheld, Vice President of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and welcome to Superior Plus' conference call and webcast to review our 2025 first quarter results. On the call today, we have Alan McDonald, President and CEO, and Greer Coulter, Executive Vice President and Chief Financial Officer. For this morning's call, Alan and Greer will begin with their prepared remarks, and then we'll open the call for questions. Listeners are reminded that some of the comments made today may be forward-looking in nature, and information provided may refer to non-GAAP measures. Please refer to our continuous disclosure documents available on CDAR Plus and our website. The dollar amounts discussed on today's call are expressed in U.S. dollars unless otherwise noted. Finally, for those of you who weren't able to participate in our Investor Day last month, we'd encourage you to review the related materials available on our website for more detail on our long-term plans and multi-year financial outlook. I'll now turn the call over to Alan.

Thanks, Chris. Good morning, everybody, and welcome to our Q1 call. I'm very pleased to speak with you today to share details around our first quarter results in both propane and CNG. It was an excellent start to 2025 at Superior Plus. Beginning with propane, our teams performed well in the quarter, focusing on serving our customers amid a relatively cold winter. Despite encountering some winter storm conditions that complicated our deliveries in some regions, we managed the situation very effectively. Now, while colder weather is indeed a welcome change, the financial performance seen in Q1 is about more than just weather. We delivered 24 million more gallons in Q1 compared to last year, with fewer trucks and more efficient routes. We aggressively managed our costs despite inflationary pressures, and maintained our pricing discipline to ensure we keep customers for life. The changes we've made within Superior undoubtedly contributed to the strength of the results in the quarter, and more than anything, offered a proof point of the value of preserving and growing our customer base over the long term. Additionally, while still early in the process, we're making good progress with Superior Delivers, which contributed approximately $2.3 million of EBITDA in the quarter in line with our plans. The value largely came from our customer growth initiatives, where we're focused on offering our customers competitive pricing backed by exceptional service. During the next few quarters, we're executing more than 20 pilot programs and phased out rollouts across a variety of initiatives. In our cost to serve workstream, for example, we're in the process of implementing a new company-wide routing and scheduling capability that will see every route for every driver optimized to make us more efficient and help us serve our customers even more reliably. These improvements are key to enabling our customer growth initiatives. And when married together, we will serve more customers more efficiently with less costs, enhancing customer lifetime value and long-term profitability and growth prospects for Superior Plus. As we continue to launch pilots and roll out initiatives over the coming months, Superior Delivers remains on track to contribute $20 million to adjusted EBITDA this year and $70 million by the end of 2027. Turning now to our CNG business, we also had a strong quarter with Soteris growing EBITDA by approximately 7%. We're pleased with our performance in the quarter and are maintaining our guidance for the full year. However, With continued pricing pressure, as customers become increasingly cautious about the broader economic landscape, we expect we may finish the year towards the lower end of our 5% to 10% growth range. In the meantime, we're advancing several continuous improvement initiatives at Soteris that are helping to maintain strong margins and returns. Specifically, we're improving our driver and fleet utilization, increasing load fills, and driving efficiencies within our repair and maintenance programs. Overall, as I reflect on the quarter, I'm extremely pleased with how our teams rose to the occasion and demonstrated our ability to drive strong profits and cash flow, all while successfully executing pilots and new initiatives as part of Superior Delivers. The first quarter felt like a turning point after two years of hard work. Our first proof point, if you will, that we're becoming the company we all know we can be. We can deliver strong results while simultaneously expanding our capabilities and building for our future. I'd like to thank our thousands of employees for their diligent work to support our customers across North America through a very busy winter season. Our teams are what make this company a success. They're committed to serving our customers when they need us most, keeping their homes warm and their businesses operating safely and reliably. we are incredibly confident in our ability to generate strong returns with the right plan and the right people in place to execute it. So with that, let's turn things over to Greer to walk through the Q1 results in detail.