Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership")
today announced its financial results for the third quarter of
2020.
Ruben Martin, President and Chief Executive Officer of Martin
Midstream GP LLC, the general partner of the Partnership said, “The
Partnership delivered strong results in the third quarter even with
the continuing impact on demand related to COVID-19 coupled with
hurricanes in the Gulf Coast region effecting refinery
operations. The diversity of our business model and customer
base has proven resilient in these difficult and changing
macro-economic times. Although the third quarter is typically
our weakest, due to the cyclical nature of our businesses, we had
year over year EBITDA growth in three of our four business
segments. Our team continues to make every effort to provide
our employees and customers with a safe and healthy operating
environment.”
THIRD QUARTER 2020 OPERATING RESULTS BY BUSINESS SEGMENT
TERMINALLING AND STORAGE (“T&S”)
T&S Operating Income for the three months ended September
30, 2020 and 2019 was $7.0 million and $5.6 million,
respectively.
Adjusted segment EBITDA for T&S was $14.2 million and $13.3
million for the three months ended September 30, 2020 and 2019,
respectively, reflecting improved margins on packaged lubricants
products from lower production cost and operating efficiencies,
reduced operating expenses from lower repairs and maintenance and
labor cost at our Specialty Terminals, offset by reduced grease
volumes related to lower demand in the oil field and construction
industries due to COVID-19, expired capital recovery fees at the
Smackover Refinery and decreased fees related to a crude pipeline
gathering rate adjustment.
TRANSPORTATION
Transportation Operating Income for the three months ended
September 30, 2020 and 2019 was $1.1 million and $4.4 million,
respectively.
Adjusted segment EBITDA for Transportation was $5.5 million and
$8.2 million for the three months ended September 30, 2020 and
2019, respectively, reflecting lower marine utilization and reduced
day rates along with lower land transportation load count related
to demand destruction and lower refinery utilization as a result of
COVID-19 and gulf coast hurricanes experienced during the three
months ended September 30, 2020.
SULFUR SERVICES
Sulfur Services Operating Income for the three months ended
September 30, 2020 and 2019 was $5.6 million and $0.3 million,
respectively.
Adjusted segment EBITDA for Sulfur Services was $4.2 million and
$3.1 million for the three months ended September 30, 2020 and
2019, respectively, reflecting resumed operations of the Neches
Priller offset by reduced fertilizer volumes from extended
fertilizer plant turnaround time and reduced fertilizer demand as a
result of COVID-19.
NATURAL GAS LIQUIDS (“NGL”)
NGL Operating Income for the three months ended September 30,
2020 and 2019 was $1.8 million and $19.7 million, respectively.
Adjusted segment EBITDA from continuing operations for NGL was
$2.8 million and $1.6 million for the three months ended September
30, 2020 and 2019, respectively, primarily reflecting an increase
in volumes in 2020 from increased seasonal demand within the butane
optimization business.
UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
(“USGA”)
USGA expenses included in operating income were $4.5 million for
both the three months ended September 30, 2020 and 2019.
USGA expenses included in adjusted EBITDA were $4.2 million for
both the three months ended September 30, 2020 and 2019.
2020 FINANCIAL GUIDANCE UPDATE
The majority of our refinery services are focused on the Gulf
Coast Region whose states have reopened their economies. However,
the impact on refinery utilization related to the demand reduction
from COVID-19 and recent gulf coast hurricanes experienced during
the quarter remains unclear. The Partnership believes that
our performance through the first nine months coupled with
expectations for the coming quarter will allow our annualized
Adjusted EBITDA, Expansion Capital Expenditures and Maintenance
Capital Expenditures to fall within the previously provided range
below:
|
MMLP 2020 Guidance |
|
$ millions |
| Adjusted EBITDA |
|
$95 - 107 |
| Expansion Capital
Expenditures |
|
$10 - 13 |
| Maintenance Capital
Expenditures |
|
$14 - 16 |
The Partnership has not provided comparable GAAP financial
information on a forward-looking basis because it would require the
Partnership to create estimated ranges on a GAAP basis, which would
entail unreasonable effort as the adjustments required to reconcile
forward-looking non-GAAP measures cannot be predicted with a
reasonable degree of certainty but may include, among others, costs
related to debt amendments and unusual charges, expenses and
gains. Some or all of those adjustments could be
significant.
LIQUIDITY
At September 30, 2020, the Partnership had $205 million drawn on
its $300 million revolving credit facility, a $24 million increase
from June 30, 2020. The majority of the increase was
attributable to the NGL inventory working capital sub-limit which
increased $20 million quarter over quarter. As
previously announced, on August 12, 2020, the Partnership
successfully completed an exchange offer and cash tender offer
(together the “Offers”) for its senior unsecured notes due February
2021. As a result of the Offers, the Partnership has the
following outstanding senior notes: senior unsecured notes due 2021
of $28.8 million, senior secured notes of $53.8 million due 2024
and senior secured notes of $291.9 million due 2025, for a total of
senior notes outstanding of $374.5 million. Accordingly, the
Partnership’s leverage ratio, as calculated under the revolving
credit facility, was 4.9 times on September 30, 2020 compared to
4.8 times on June 30, 2020. The Partnership is in compliance
with all debt covenants as of September 30, 2020.
QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of
$0.005 per unit for the quarter ended September 30, 2020. The
distribution is payable on November 13, 2020 to common unitholders
of record as of the close of business on November 6, 2020.
The ex-dividend date for the cash distribution is November 5,
2020.
COVID-19 RESPONSE
The Partnership initiated protocols in response to the COVID-19
pandemic which include work from home initiatives to protect the
health and safety of our employees as well as the communities where
we operate, travel restrictions, and training personnel regarding
preventative measures when accessing docks, vessels and operating
locations. At this time all facilities are operational and
monitored closely.
RESULTS OF OPERATIONS
The Partnership had a net loss from continuing operations for
the three months ended September 30, 2020 of $10.8 million, a loss
of $0.27 per limited partner unit. The Partnership had net
income from continuing operations for the three months ended
September 30, 2019 of $13.3 million, or $0.33 per limited partner
unit. Adjusted EBITDA from continuing operations for the
three months ended September 30, 2020 was $22.5 million compared to
the three months ended September 30, 2019 of $22.0 million.
Distributable cash flow from continuing operations for the three
months ended September 30, 2020 was $8.1 million compared to the
three months ended September 30, 2019 of $8.3 million.
The Partnership had no net income, adjusted EBITDA or
distributable cash flow from discontinued operations for the three
months ended September 30, 2020 or 2019. The
Partnership had no adjusted EBITDA from discontinued operations for
the three months ended September 30, 2020 or 2019.
The Partnership had a net loss from continuing operations for
the nine months ended September 30, 2020 of $4.2 million, a loss of
$0.11 per limited partner unit. The Partnership had a net
loss from continuing operations for the nine months ended September
30, 2019 of $2.2 million, a loss of $0.05 per limited partner
unit. Adjusted EBITDA from continuing operations for the nine
months ended September 30, 2020 was $77.5 million compared to the
nine months ended September 30, 2019 of $72.8 million.
Distributable cash flow from continuing operations for the nine
months ended September 30, 2020 was $38.9 million compared to the
nine months ended September 30, 2019 of $21.0 million.
The Partnership had no net income from discontinued operations
for the nine months ended September 30, 2020 compared to a loss of
$179.5 million, or $4.55 per limited partner unit for the nine
months ended September 30, 2019. The Partnership had no
adjusted EBITDA from discontinued operations for the nine months
ended September 30, 2020 compared to $10.7 million for the nine
months ended September 30, 2019. The Partnership had no
distributable cash flow from discontinued operations for the nine
months ended September 30, 2020 compared to $9.8 million for the
nine months ended September 30, 2019.
Revenues for the three months ended September 30, 2020 were
$152.5 million compared to the three months ended September 30,
2019 of $177.9 million. Revenues for the nine months ended
September 30, 2020 were $492.1 million compared to the nine months
ended September 30, 2019 of $605.3 million.
Distributable cash flow from continuing operations,
distributable cash flow from discontinued operations, EBITDA,
adjusted EBITDA from continuing operations, and adjusted EBITDA
from discontinued operations are non-GAAP financial measures which
are explained in greater detail below under the heading "Use of
Non-GAAP Financial Information." The Partnership has also included
below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA
from continuing operations, and Distributable Cash Flow" in order
to show the components of these non-GAAP financial measures and
their reconciliation to the most comparable GAAP measurement.
An attachment accompanying this announcement and included in the
Current Report on Form 8-K to which this announcement is included,
contains a comparison of the Partnership’s Adjusted EBITDA for the
third quarter 2020 to the Partnership's Adjusted EBITDA for the
third quarter 2019 and is available
at http://ml.globenewswire.com/Resource/Download/02a3d060-d2b7-4fa2-932c-da0c46109eff.
Investors' Conference Call
An investors conference call to review the third quarter results
will be held on Thursday, October 22, 2020 at 8:00 a.m. Central
Time. The live conference call will be available by calling (877)
878-2695. For a limited time, an audio replay of the conference
call will be available by calling (855) 859-2056. The conference ID
is 9123705. An archive of the replay will be on Martin Midstream
Partners’ website at www.MMLP.com.
About Martin Midstream Partners
Martin Midstream Partners L.P. is a publicly traded limited
partnership with a diverse set of operations focused primarily in
the United States Gulf Coast region. The Partnership's
primary business lines include: (1) terminalling, processing,
storage, and packaging services for petroleum products and
by-products; (2) land and marine transportation services for
petroleum products and by-products, chemicals, and specialty
products; (3) sulfur and sulfur-based products processing,
manufacturing, marketing and distribution; and (4) natural gas
liquids marketing, distribution and transportation services.
Forward-Looking Statements
Statements about the Partnership’s outlook and all other
statements in this release other than historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements and all references to financial or
operational estimates rely on a number of assumptions concerning
future events and are subject to a number of uncertainties,
including (i) the current and potential impacts of the COVID-19
pandemic generally, on an industry-specific basis, and on the
Partnership’s specific operations and business, (ii) the effects of
the continued volatility of commodity prices and the related
macroeconomic and political environment, and (iii) other factors,
many of which are outside its control, which could cause actual
results to differ materially from such statements. While the
Partnership believes that the assumptions concerning future events
are reasonable, it cautions that there are inherent difficulties in
anticipating or predicting certain important factors. A
discussion of these factors, including risks and uncertainties, is
set forth in the Partnership’s annual and quarterly reports filed
from time to time with the Securities and Exchange
Commission. The Partnership disclaims any intention or
obligation to revise any forward-looking statements, including
financial estimates, whether as a result of new information, future
events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
The Partnership's management uses a variety of financial and
operational measurements other than its financial statements
prepared in accordance with United States Generally Accepted
Accounting Principles ("GAAP") to analyze its performance. These
include: (1) net income before interest expense, income tax
expense, and depreciation and amortization ("EBITDA"), (2) adjusted
EBITDA and (3) distributable cash flow. The Partnership's
management views these measures as important performance measures
of core profitability for its operations and the ability to
generate and distribute cash flow, and as key components of its
internal financial reporting. The Partnership's management believes
investors benefit from having access to the same financial measures
that management uses.
EBITDA, Adjusted EBITDA from Continuing Operations, and Adjusted
EBITDA from Discontinued Operations. Certain items excluded
from EBITDA, adjusted EBITDA from continuing operations, and
adjusted EBITDA from discontinued operations are significant
components in understanding and assessing an entity's financial
performance, such as cost of capital and historical costs of
depreciable assets. The Partnership has included information
concerning EBITDA, adjusted EBITDA from continuing operations, and
adjusted EBITDA from discontinued operations because it provides
investors and management with additional information to better
understand the following: financial performance of the
Partnership's assets without regard to financing methods, capital
structure or historical cost basis; the Partnership's operating
performance and return on capital as compared to those of other
similarly situated entities; and the viability of acquisitions and
capital expenditure projects. The Partnership's method of
computing adjusted EBITDA may not be the same method used to
compute similar measures reported by other entities. The economic
substance behind the Partnership's use of adjusted EBITDA is to
measure the ability of the Partnership's assets to generate cash
sufficient to pay interest costs, support its indebtedness and make
distributions to its unitholders.
Distributable Cash Flow and Distributable Cash Flow from
Discontinued Operations. Distributable cash flow is a
significant performance measure used by the Partnership's
management and by external users of its financial statements, such
as investors, commercial banks and research analysts, to compare
basic cash flows generated by the Partnership to the cash
distributions it expects to pay unitholders. Distributable
cash flow is also an important financial measure for the
Partnership's unitholders since it serves as an indicator of the
Partnership's success in providing a cash return on investment.
Specifically, this financial measure indicates to investors whether
or not the Partnership is generating cash flow at a level that can
sustain or support an increase in its quarterly distribution
rates. Distributable cash flow is also a quantitative
standard used throughout the investment community with respect to
publicly-traded partnerships because the value of a unit of such an
entity is generally determined by the unit's yield, which in turn
is based on the amount of cash distributions the entity pays to a
unitholder.
EBITDA, adjusted EBITDA from continuing operations, adjusted
EBITDA from discontinued operations, distributable cash flow, and
distributable cash flow from discontinued operations, should not be
considered alternatives to, or more meaningful than, net income,
cash flows from operating activities, or any other measure
presented in accordance with GAAP. The Partnership's method of
computing these measures may not be the same method used to compute
similar measures reported by other entities.
Additional information concerning the Partnership is available
on the Partnership's website at www.MMLP.com or by
contacting:
Sharon Taylor - Head of Investor Relations(877)
256-6644
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED BALANCE
SHEETS(Dollars in thousands)
| |
September 30, 2020 |
|
December 31, 2019 |
| |
(Unaudited) |
|
(Audited) |
|
Assets |
|
|
|
|
Cash |
$ |
1,862 |
|
|
$ |
2,856 |
|
| Accounts and other
receivables, less allowance for doubtful accounts of $537 and $532,
respectively |
55,461 |
|
|
87,254 |
|
| Product exchange
receivables |
212 |
|
|
— |
|
| Inventories |
77,724 |
|
|
62,540 |
|
| Due from affiliates |
18,932 |
|
|
17,829 |
|
| Other current assets |
9,587 |
|
|
5,833 |
|
| Assets held for sale |
— |
|
|
5,052 |
|
|
Total current assets |
163,778 |
|
|
181,364 |
|
| |
|
|
|
| Property, plant and equipment,
at cost |
902,965 |
|
|
884,728 |
|
| Accumulated depreciation |
(506,645 |
) |
|
(467,531 |
) |
|
Property, plant and equipment, net |
396,320 |
|
|
417,197 |
|
| |
|
|
|
| Goodwill |
17,705 |
|
|
17,705 |
|
| Right-of-use assets |
23,201 |
|
|
23,901 |
|
| Deferred income taxes,
net |
22,220 |
|
|
23,422 |
|
| Other assets, net |
3,116 |
|
|
3,567 |
|
|
Total assets |
$ |
626,340 |
|
|
$ |
667,156 |
|
| |
|
|
|
|
Liabilities and Partners’ Capital (Deficit) |
|
|
|
| Current installments of
long-term debt and finance lease obligations |
$ |
31,979 |
|
|
$ |
6,758 |
|
| Trade and other accounts
payable |
45,326 |
|
|
64,802 |
|
| Product exchange payables |
3,044 |
|
|
4,322 |
|
| Due to affiliates |
467 |
|
|
1,470 |
|
| Income taxes payable |
335 |
|
|
472 |
|
| Fair value of derivatives |
391 |
|
|
667 |
|
| Other accrued liabilities |
23,153 |
|
|
28,789 |
|
|
Total current liabilities |
104,695 |
|
|
107,280 |
|
| |
|
|
|
| Long-term debt, net |
541,002 |
|
|
569,788 |
|
| Finance lease obligations |
348 |
|
|
717 |
|
| Operating lease
liabilities |
16,005 |
|
|
16,656 |
|
| Other long-term
obligations |
8,753 |
|
|
8,911 |
|
|
Total liabilities |
670,803 |
|
|
703,352 |
|
| |
|
|
|
| Commitments and
contingencies |
|
|
|
| Partners’ capital
(deficit) |
(44,463 |
) |
|
(36,196 |
) |
|
Total partners’ capital (deficit) |
(44,463 |
) |
|
(36,196 |
) |
|
Total liabilities and partners' capital (deficit) |
$ |
626,340 |
|
|
$ |
667,156 |
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
| Revenues: |
|
|
|
|
|
|
|
|
Terminalling and storage * |
$ |
20,706 |
|
|
$ |
21,193 |
|
|
$ |
61,088 |
|
|
$ |
65,674 |
|
|
Transportation * |
31,938 |
|
|
40,211 |
|
|
102,364 |
|
|
119,327 |
|
|
Sulfur services |
2,915 |
|
|
2,859 |
|
|
8,744 |
|
|
8,576 |
|
|
Product sales: * |
|
|
|
|
|
|
|
|
Natural gas liquids |
52,350 |
|
|
60,871 |
|
|
164,860 |
|
|
234,743 |
|
|
Sulfur services |
18,965 |
|
|
20,213 |
|
|
74,879 |
|
|
81,945 |
|
|
Terminalling and storage |
25,659 |
|
|
32,553 |
|
|
80,119 |
|
|
94,991 |
|
| |
96,974 |
|
|
113,637 |
|
|
319,858 |
|
|
411,679 |
|
|
Total revenues |
152,533 |
|
|
177,900 |
|
|
492,054 |
|
|
605,256 |
|
| |
|
|
|
|
|
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of products sold: (excluding depreciation and
amortization) |
|
|
|
|
|
|
|
|
Natural gas liquids * |
44,908 |
|
|
51,736 |
|
|
139,036 |
|
|
211,472 |
|
|
Sulfur services * |
13,313 |
|
|
14,442 |
|
|
46,167 |
|
|
56,262 |
|
|
Terminalling and storage * |
19,124 |
|
|
26,009 |
|
|
64,242 |
|
|
78,998 |
|
| |
77,345 |
|
|
92,187 |
|
|
249,445 |
|
|
346,732 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
Operating expenses * |
43,105 |
|
|
51,071 |
|
|
138,589 |
|
|
156,499 |
|
|
Selling, general and administrative * |
10,339 |
|
|
10,474 |
|
|
30,659 |
|
|
30,900 |
|
|
Depreciation and amortization |
15,276 |
|
|
15,009 |
|
|
45,858 |
|
|
44,997 |
|
|
Total costs and expenses |
146,065 |
|
|
168,741 |
|
|
464,551 |
|
|
579,128 |
|
| |
|
|
|
|
|
|
|
| Other operating income (loss),
net |
23 |
|
|
16,302 |
|
|
2,548 |
|
|
13,949 |
|
| Gain on involuntary conversion
of property, plant and equipment |
4,522 |
|
|
— |
|
|
4,522 |
|
|
— |
|
|
Operating income |
11,013 |
|
|
25,461 |
|
|
34,573 |
|
|
40,077 |
|
| |
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense, net |
(12,943 |
) |
|
(11,973 |
) |
|
(32,245 |
) |
|
(40,630 |
) |
|
Gain on retirement of senior unsecured notes |
— |
|
|
— |
|
|
3,484 |
|
|
— |
|
|
Loss on exchange of senior unsecured notes |
(8,516 |
) |
|
— |
|
|
(8,516 |
) |
|
— |
|
|
Other, net |
— |
|
|
(1 |
) |
|
7 |
|
|
3 |
|
|
Total other expense |
(21,459 |
) |
|
(11,974 |
) |
|
(37,270 |
) |
|
(40,627 |
) |
| |
|
|
|
|
|
|
|
| Net income (loss) before
taxes |
(10,446 |
) |
|
13,487 |
|
|
(2,697 |
) |
|
(550 |
) |
| Income tax expense |
(373 |
) |
|
(237 |
) |
|
(1,510 |
) |
|
(1,572 |
) |
| Income (loss) from continuing
operations |
(10,819 |
) |
|
13,250 |
|
|
(4,207 |
) |
|
(2,122 |
) |
| Income from discontinued
operations, net of income taxes |
— |
|
|
— |
|
|
— |
|
|
(179,466 |
) |
| Net income (loss) |
(10,819 |
) |
|
13,250 |
|
|
(4,207 |
) |
|
(181,588 |
) |
| Less general partner's
interest in net (income) loss |
216 |
|
|
(265 |
) |
|
84 |
|
|
3,632 |
|
| Less (income) loss allocable
to unvested restricted units |
53 |
|
|
(72 |
) |
|
8 |
|
|
(5 |
) |
| Limited partners' interest in
net income (loss) |
$ |
(10,550 |
) |
|
$ |
12,913 |
|
|
$ |
(4,115 |
) |
|
$ |
(177,961 |
) |
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts)
*Related Party Transactions Included Above
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
| Revenues:* |
|
|
|
|
|
|
|
|
Terminalling and storage |
$ |
15,902 |
|
$ |
17,538 |
|
$ |
47,718 |
|
$ |
53,987 |
|
Transportation |
5,514 |
|
6,442 |
|
16,801 |
|
17,941 |
|
Product Sales |
69 |
|
122 |
|
199 |
|
829 |
| Costs and expenses:* |
|
|
|
|
|
|
|
|
Cost of products sold: (excluding depreciation and
amortization) |
|
|
|
|
|
|
|
|
Sulfur services |
2,512 |
|
2,620 |
|
7,833 |
|
8,078 |
|
Terminalling and storage |
4,303 |
|
6,300 |
|
14,329 |
|
19,412 |
|
Expenses: |
|
|
|
|
|
|
|
|
Operating expenses |
18,915 |
|
21,745 |
|
60,126 |
|
66,409 |
|
Selling, general and administrative |
8,356 |
|
8,358 |
|
24,723 |
|
24,148 |
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
| Allocation of net income
(loss) attributable to: |
|
|
|
|
|
|
|
|
Limited partner interest: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(10,550 |
) |
|
$ |
12,913 |
|
|
$ |
(4,115 |
) |
|
$ |
(2,080 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(175,881 |
) |
| |
$ |
(10,550 |
) |
|
$ |
12,913 |
|
|
$ |
(4,115 |
) |
|
$ |
(177,961 |
) |
|
General partner interest: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(216 |
) |
|
$ |
265 |
|
|
$ |
(84 |
) |
|
$ |
(42 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(3,590 |
) |
| |
$ |
(216 |
) |
|
$ |
265 |
|
|
$ |
(84 |
) |
|
$ |
(3,632 |
) |
| |
|
|
|
|
|
|
|
| Net income (loss) per unit
attributable to limited partners: |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.27 |
) |
|
$ |
0.33 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.05 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(4.55 |
) |
| |
$ |
(0.27 |
) |
|
$ |
0.33 |
|
|
$ |
(0.11 |
) |
|
$ |
(4.60 |
) |
|
Weighted average limited partner units - basic |
38,662 |
|
|
38,653 |
|
|
38,655 |
|
|
38,661 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.27 |
) |
|
$ |
0.33 |
|
|
$ |
(0.11 |
) |
|
$ |
(0.05 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(4.55 |
) |
| |
$ |
(0.27 |
) |
|
$ |
0.33 |
|
|
$ |
(0.11 |
) |
|
$ |
(4.60 |
) |
|
Weighted average limited partner units - diluted |
38,662 |
|
|
38,653 |
|
|
38,655 |
|
|
38,661 |
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF
CAPITAL (DEFICIT)(Dollars in
thousands)
| |
|
|
Partners’ Capital (Deficit) |
|
|
| |
|
|
Common Limited |
|
|
|
|
|
|
|
Parent Net
Investment |
|
Units |
|
Amount |
|
|
General Partner Amount |
|
|
|
Total |
|
|
Balances - January 1, 2019 |
$ |
23,720 |
|
|
39,032,237 |
|
|
$ |
258,085 |
|
|
$ |
6,627 |
|
|
$ |
288,432 |
|
|
|
Net loss |
— |
|
|
— |
|
|
(177,956 |
) |
|
(3,632 |
) |
|
(181,588 |
) |
|
|
Issuance of common units, net |
— |
|
|
— |
|
|
(289 |
) |
|
— |
|
|
(289 |
) |
|
|
Issuance of restricted units |
— |
|
|
16,944 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Forfeiture of restricted units |
— |
|
|
(154,288 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
Cash distributions |
— |
|
|
— |
|
|
(38,480 |
) |
|
(785 |
) |
|
(39,265 |
) |
|
|
Unit-based compensation |
— |
|
|
— |
|
|
1,064 |
|
|
— |
|
|
1,064 |
|
|
|
Purchase of treasury units |
— |
|
|
(31,504 |
) |
|
(392 |
) |
|
— |
|
|
(392 |
) |
|
|
Excess purchase price over carrying value of acquired assets |
— |
|
|
— |
|
|
(102,393 |
) |
|
— |
|
|
(102,393 |
) |
|
|
Deferred taxes on acquired assets and liabilities |
— |
|
|
— |
|
|
24,781 |
|
|
— |
|
|
24,781 |
|
|
|
Contribution to parent |
(23,720 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(23,720 |
) |
|
| Balances - September 30,
2019 |
$ |
— |
|
|
38,863,389 |
|
|
$ |
(35,580 |
) |
|
$ |
2,210 |
|
|
$ |
(33,370 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Balances - January 1,
2020 |
$ |
— |
|
|
38,863,389 |
|
|
$ |
(38,342 |
) |
|
$ |
2,146 |
|
|
$ |
(36,196 |
) |
|
|
Net income |
— |
|
|
— |
|
|
(4,123 |
) |
|
(84 |
) |
|
(4,207 |
) |
|
|
Issuance of restricted units |
— |
|
|
81,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Forfeiture of restricted units |
— |
|
|
(84,134 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
Cash distributions |
— |
|
|
— |
|
|
(5,019 |
) |
|
(102 |
) |
|
(5,121 |
) |
|
|
Unit-based compensation |
— |
|
|
— |
|
|
1,070 |
|
|
— |
|
|
1,070 |
|
|
|
Purchase of treasury units |
— |
|
|
(7,748 |
) |
|
(9 |
) |
|
— |
|
|
(9 |
) |
|
| Balances - September 30,
2020 |
$ |
— |
|
|
38,852,507 |
|
|
$ |
(46,423 |
) |
|
$ |
1,960 |
|
|
$ |
(44,463 |
) |
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CASH
FLOWS(Dollars in thousands)
| |
Nine Months Ended |
| |
September 30, |
| |
2020 |
|
2019 |
| Cash flows from operating
activities: |
|
|
|
|
Net loss |
$ |
(4,207 |
) |
|
$ |
(181,588 |
) |
|
Less: Loss from discontinued operations, net of income
taxes |
— |
|
|
179,466 |
|
|
Net loss from continuing operations |
(4,207 |
) |
|
(2,122 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
45,858 |
|
|
44,997 |
|
|
Amortization and write-off of deferred debt issuance costs |
2,674 |
|
|
3,558 |
|
|
Amortization of premium on notes payable |
(191 |
) |
|
(230 |
) |
|
Deferred income tax expense |
1,202 |
|
|
1,100 |
|
|
(Gain) loss on sale of property, plant and equipment, net |
153 |
|
|
(13,949 |
) |
|
Gain on involuntary conversion of property, plant and
equipment |
(4,522 |
) |
|
— |
|
|
Non-cash impact related to exchange of senior unsecured notes |
(749 |
) |
|
— |
|
|
Gain on retirement of senior unsecured notes |
(3,484 |
) |
|
— |
|
|
Derivative (income) loss |
(815 |
) |
|
(280 |
) |
|
Net cash paid for commodity derivatives |
539 |
|
|
(249 |
) |
|
Unit-based compensation |
1,070 |
|
|
1,064 |
|
|
Change in current assets and liabilities, excluding effects of
acquisitions and dispositions: |
|
|
|
|
Accounts and other receivables |
30,012 |
|
|
25,748 |
|
|
Product exchange receivables |
(212 |
) |
|
164 |
|
|
Inventories |
(15,184 |
) |
|
(11,707 |
) |
|
Due from affiliates |
(1,103 |
) |
|
1,150 |
|
|
Other current assets |
(6,130 |
) |
|
(2,654 |
) |
|
Trade and other accounts payable |
(17,117 |
) |
|
(10,577 |
) |
|
Product exchange payables |
(1,278 |
) |
|
(7,257 |
) |
|
Due to affiliates |
(1,003 |
) |
|
(1,468 |
) |
|
Income taxes payable |
(137 |
) |
|
65 |
|
|
Other accrued liabilities |
(5,534 |
) |
|
(8,904 |
) |
|
Change in other non-current assets and liabilities |
(692 |
) |
|
(600 |
) |
|
Net cash provided by continuing operating activities |
19,150 |
|
|
17,849 |
|
|
Net cash provided by discontinued operating activities |
— |
|
|
7,770 |
|
|
Net cash provided by operating activities |
19,150 |
|
|
25,619 |
|
| |
|
|
|
| Cash flows from investing
activities: |
|
|
|
|
Payments for property, plant and equipment |
(23,705 |
) |
|
(22,797 |
) |
|
Acquisitions |
— |
|
|
(23,720 |
) |
|
Payments for plant turnaround costs |
(637 |
) |
|
(5,117 |
) |
|
Proceeds from involuntary conversion of property, plant and
equipment |
7,203 |
|
|
— |
|
|
Proceeds from sale of property, plant and equipment |
4,392 |
|
|
18,303 |
|
|
Net cash used in continuing investing activities |
(12,747 |
) |
|
(33,331 |
) |
|
Net cash provided by discontinued investing activities |
— |
|
|
209,155 |
|
|
Net cash provided by (used in) investing activities |
(12,747 |
) |
|
175,824 |
|
| Cash flows from financing
activities: |
|
|
|
|
Payments of long-term debt and finance lease obligations |
(257,658 |
) |
|
(639,308 |
) |
|
Proceeds from long-term debt |
259,019 |
|
|
586,000 |
|
|
Proceeds from issuance of common units, net of issuance related
costs |
— |
|
|
(289 |
) |
|
General partner contribution |
— |
|
|
— |
|
|
Purchase of treasury units |
(9 |
) |
|
(392 |
) |
|
Payment of debt issuance costs |
(3,628 |
) |
|
(4,294 |
) |
|
Excess purchase price over carrying value of acquired assets |
— |
|
|
(102,393 |
) |
|
Cash distributions paid |
(5,121 |
) |
|
(39,265 |
) |
|
Net cash used in financing activities |
(7,397 |
) |
|
(199,941 |
) |
|
Net increase (decrease) in cash |
(994 |
) |
|
1,502 |
|
| Cash at beginning of
period |
2,856 |
|
|
300 |
|
| Cash at end of period |
$ |
1,862 |
|
|
$ |
1,802 |
|
| Non-cash additions to
property, plant and equipment |
$ |
1,432 |
|
|
$ |
1,045 |
|
MARTIN MIDSTREAM PARTNERS
L.P.SEGMENT OPERATING
INCOME(Dollars and volumes in thousands, except
BBL per day)
Terminalling and Storage
Segment
Comparative Results of Operations for the
Three Months Ended September 30, 2020 and 2019
| |
Three Months Ended September 30, |
|
Variance |
|
|
Percent Change |
| |
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
(In thousands, except BBL per day) |
|
|
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
22,512 |
|
|
$ |
22,806 |
|
|
$ |
(294 |
) |
|
|
(1 |
) |
% |
|
Products |
25,676 |
|
|
32,570 |
|
|
(6,894 |
) |
|
|
(21 |
) |
% |
|
Total revenues |
48,188 |
|
|
55,376 |
|
|
(7,188 |
) |
|
|
(13 |
) |
% |
| |
|
|
|
|
|
|
|
|
|
| Cost of products sold |
20,381 |
|
|
27,439 |
|
|
(7,058 |
) |
|
|
(26 |
) |
% |
| Operating expenses |
12,064 |
|
|
12,947 |
|
|
(883 |
) |
|
|
(7 |
) |
% |
| Selling, general and
administrative expenses |
1,537 |
|
|
1,724 |
|
|
(187 |
) |
|
|
(11 |
) |
% |
| Depreciation and
amortization |
7,294 |
|
|
7,690 |
|
|
(396 |
) |
|
|
(5 |
) |
% |
| |
6,912 |
|
|
5,576 |
|
|
1,336 |
|
|
|
24 |
|
% |
| Other operating income,
net |
1 |
|
|
— |
|
|
1 |
|
|
|
|
|
|
| Gain on involuntary conversion
of property, plant and equipment |
62 |
|
|
— |
|
|
62 |
|
|
|
|
|
|
|
Operating income |
$ |
6,975 |
|
|
$ |
5,576 |
|
|
$ |
1,399 |
|
|
|
25 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shore-based throughput volumes (guaranteed minimum) (gallons) |
20,000 |
|
|
20,000 |
|
|
— |
|
|
|
— |
|
% |
|
Smackover refinery throughput volumes (guaranteed minimum BBL per
day) |
6,500 |
|
|
6,500 |
|
|
— |
|
|
|
— |
|
% |
Comparative Results of Operations for the
Nine Months Ended September 30, 2020 and 2019
| |
Nine Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands, except BBL per day) |
|
|
| Revenues: |
|
|
|
|
|
|
|
|
Services |
$ |
66,115 |
|
|
|
$ |
70,572 |
|
|
$ |
(4,457 |
) |
|
|
(6 |
) |
% |
|
Products |
80,183 |
|
|
|
95,047 |
|
|
(14,864 |
) |
|
|
(16 |
) |
% |
|
Total revenues |
146,298 |
|
|
|
165,619 |
|
|
(19,321 |
) |
|
|
(12 |
) |
% |
| |
|
|
|
|
|
|
|
| Cost of products sold |
68,066 |
|
|
|
83,213 |
|
|
(15,147 |
) |
|
|
(18 |
) |
% |
| Operating expenses |
37,269 |
|
|
|
39,557 |
|
|
(2,288 |
) |
|
|
(6 |
) |
% |
| Selling, general and
administrative expenses |
4,594 |
|
|
|
4,451 |
|
|
143 |
|
|
|
3 |
|
% |
| Depreciation and
amortization |
22,022 |
|
|
|
23,353 |
|
|
(1,331 |
) |
|
|
(6 |
) |
% |
| |
14,347 |
|
|
|
15,045 |
|
|
(698 |
) |
|
|
(5 |
) |
% |
| Other operating income (loss),
net |
(3,053 |
) |
|
|
17 |
|
|
(3,070 |
) |
|
|
(18,059 |
) |
% |
| Gain on involuntary conversion
of property, plant and equipment |
62 |
|
|
|
— |
|
|
62 |
|
|
|
|
|
Operating income |
$ |
11,356 |
|
|
|
$ |
15,062 |
|
|
$ |
(3,706 |
) |
|
|
(25 |
) |
% |
| |
|
|
|
|
|
|
|
|
Shore-based throughput volumes (guaranteed minimum) (gallons) |
60,000 |
|
|
|
60,000 |
|
|
— |
|
|
|
— |
|
% |
|
Smackover refinery throughput volumes (guaranteed minimum) (BBL per
day) |
6,500 |
|
|
|
6,500 |
|
|
— |
|
|
|
— |
|
% |
MARTIN MIDSTREAM PARTNERS
L.P.SEGMENT OPERATING
INCOME(Dollars and volumes in thousands, except
BBL per day)
Transportation Segment
Comparative Results of Operations for the
Three Months Ended September 30, 2020 and 2019
| |
Three Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
|
Revenues |
$ |
35,712 |
|
|
$ |
44,631 |
|
|
$ |
(8,919 |
) |
|
|
(20 |
) |
% |
| Operating expenses |
28,144 |
|
|
34,281 |
|
|
(6,137 |
) |
|
|
(18 |
) |
% |
| Selling, general and
administrative expenses |
2,050 |
|
|
2,177 |
|
|
(127 |
) |
|
|
(6 |
) |
% |
| Depreciation and
amortization |
4,412 |
|
|
3,877 |
|
|
535 |
|
|
|
14 |
|
% |
| |
1,106 |
|
|
4,296 |
|
|
(3,190 |
) |
|
|
(74 |
) |
% |
| Other operating income,
net |
21 |
|
|
150 |
|
|
(129 |
) |
|
|
(86 |
) |
% |
|
Operating income |
$ |
1,127 |
|
|
$ |
4,446 |
|
|
$ |
(3,319 |
) |
|
|
(75 |
) |
% |
Comparative Results of Operations for the
Nine Months Ended September 30, 2020 and 2019
| |
Nine Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
|
Revenues |
$ |
116,145 |
|
|
$ |
137,050 |
|
|
$ |
(20,905 |
) |
|
|
(15 |
) |
% |
| Operating expenses |
91,637 |
|
|
106,058 |
|
|
(14,421 |
) |
|
|
(14 |
) |
% |
| Selling, general and
administrative expenses |
6,243 |
|
|
6,242 |
|
|
1 |
|
|
|
— |
|
% |
| Depreciation and
amortization |
13,020 |
|
|
11,225 |
|
|
1,795 |
|
|
|
16 |
|
% |
| |
$ |
5,245 |
|
|
$ |
13,525 |
|
|
$ |
(8,280 |
) |
|
|
(61 |
) |
% |
| Other operating loss, net |
(1,174 |
) |
|
(2,235 |
) |
|
1,061 |
|
|
|
47 |
|
% |
|
Operating income |
$ |
4,071 |
|
|
$ |
11,290 |
|
|
$ |
(7,219 |
) |
|
|
(64 |
) |
% |
MARTIN MIDSTREAM PARTNERS
L.P.SEGMENT OPERATING
INCOME(Dollars and volumes in thousands, except
BBL per day)
Sulfur Services Segment
Comparative Results of Operations for the
Three Months Ended September 30, 2020 and 2019
| |
Three Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
| Revenues: |
|
|
|
|
|
|
|
|
Services |
$ |
2,915 |
|
$ |
2,859 |
|
$ |
56 |
|
|
|
2 |
|
% |
|
Products |
18,965 |
|
20,213 |
|
(1,248 |
) |
|
|
(6 |
) |
% |
|
Total revenues |
21,880 |
|
23,072 |
|
(1,192 |
) |
|
|
(5 |
) |
% |
| |
|
|
|
|
|
|
|
| Cost of products sold |
14,141 |
|
15,807 |
|
(1,666 |
) |
|
|
(11 |
) |
% |
| Operating expenses |
2,501 |
|
2,883 |
|
(382 |
) |
|
|
(13 |
) |
% |
| Selling, general and
administrative expenses |
1,166 |
|
1,260 |
|
(94 |
) |
|
|
(7 |
) |
% |
| Depreciation and
amortization |
2,953 |
|
2,831 |
|
122 |
|
|
|
4 |
|
% |
| |
1,119 |
|
291 |
|
828 |
|
|
|
285 |
|
% |
| Other operating income (loss),
net |
1 |
|
— |
|
1 |
|
|
|
|
| Gain on involuntary conversion
of property, plant and equipment |
4,460 |
|
— |
|
4,460 |
|
|
|
|
|
Operating income |
$ |
5,580 |
|
$ |
291 |
|
$ |
5,289 |
|
|
|
1,818 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
| Sulfur (long tons) |
154 |
|
180 |
|
(26 |
) |
|
|
(14 |
) |
% |
| Fertilizer (long tons) |
44 |
|
59 |
|
(15 |
) |
|
|
(25 |
) |
% |
| Total sulfur services volumes
(long tons) |
198 |
|
239 |
|
(41 |
) |
|
|
(17 |
) |
% |
Comparative Results of Operations for the
Nine Months Ended September 30, 2020 and
2019
| |
Nine Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
| Revenues: |
|
|
|
|
|
|
|
|
Services |
$ |
8,744 |
|
|
$ |
8,576 |
|
|
$ |
168 |
|
|
|
2 |
|
% |
|
Products |
74,892 |
|
|
81,945 |
|
|
(7,053 |
) |
|
|
(9 |
) |
% |
|
Total revenues |
83,636 |
|
|
90,521 |
|
|
(6,885 |
) |
|
|
(8 |
) |
% |
| |
|
|
|
|
|
|
|
| Cost of products sold |
49,546 |
|
|
61,049 |
|
|
(11,503 |
) |
|
|
(19 |
) |
% |
| Operating expenses |
8,553 |
|
|
7,835 |
|
|
718 |
|
|
|
9 |
|
% |
| Selling, general and
administrative expenses |
3,535 |
|
|
3,689 |
|
|
(154 |
) |
|
|
(4 |
) |
% |
| Depreciation and
amortization |
8,978 |
|
|
8,553 |
|
|
425 |
|
|
|
5 |
|
% |
| |
13,024 |
|
|
9,395 |
|
|
3,629 |
|
|
|
39 |
|
% |
| Other operating income (loss),
net |
6,777 |
|
|
(1 |
) |
|
6,778 |
|
|
|
677,800 |
|
% |
| Gain on involuntary conversion
of property, plant and equipment |
4,460 |
|
|
— |
|
|
4,460 |
|
|
|
|
|
Operating income |
$ |
24,261 |
|
|
$ |
9,394 |
|
|
$ |
14,867 |
|
|
|
158 |
|
% |
| |
|
|
|
|
|
|
|
| Sulfur (long tons) |
503 |
|
|
471 |
|
|
32 |
|
|
|
7 |
|
% |
| Fertilizer (long tons) |
209 |
|
|
214 |
|
|
(5 |
) |
|
|
(2 |
) |
% |
| Total sulfur services volumes
(long tons) |
712 |
|
|
685 |
|
|
27 |
|
|
|
4 |
|
% |
MARTIN MIDSTREAM PARTNERS
L.P.SEGMENT OPERATING
INCOME(Dollars and volumes in thousands, except
BBL per day)
Natural Gas Liquids Segment
Comparative Results of Operations for the Three
Months Ended September 30, 2020 and 2019
| |
Three Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
|
Products Revenues |
$ |
52,350 |
|
$ |
60,871 |
|
$ |
(8,521 |
) |
|
|
(14 |
) |
% |
| Cost of products sold |
47,723 |
|
54,273 |
|
(6,550 |
) |
|
|
(12 |
) |
% |
| Operating expenses |
1,039 |
|
1,624 |
|
(585 |
) |
|
|
(36 |
) |
% |
| Selling, general and
administrative expenses |
1,117 |
|
852 |
|
265 |
|
|
|
31 |
|
% |
| Depreciation and
amortization |
617 |
|
611 |
|
6 |
|
|
|
1 |
|
% |
| |
1,854 |
|
3,511 |
|
(1,657 |
) |
|
|
(47 |
) |
% |
| Other operating income,
net |
— |
|
16,152 |
|
(16,152 |
) |
|
|
(100 |
) |
% |
|
Operating income |
$ |
1,854 |
|
$ |
19,663 |
|
$ |
(17,809 |
) |
|
|
(91 |
) |
% |
| |
|
|
|
|
|
|
|
| NGL sales volumes (Bbls) |
2,572 |
|
1,905 |
|
667 |
|
|
|
35 |
|
% |
Comparative Results of Operations for the
Nine Months Ended September 30, 2020 and 2019
| |
Nine Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
| |
(In thousands) |
|
|
|
Products Revenues |
$ |
164,865 |
|
|
$ |
234,743 |
|
|
$ |
(69,878 |
) |
|
|
(30 |
) |
% |
| Cost of products sold |
148,562 |
|
|
222,974 |
|
|
(74,412 |
) |
|
|
(33 |
) |
% |
| Operating expenses |
3,128 |
|
|
5,010 |
|
|
(1,882 |
) |
|
|
(38 |
) |
% |
| Selling, general and
administrative expenses |
3,194 |
|
|
3,049 |
|
|
145 |
|
|
|
5 |
|
% |
| Depreciation and
amortization |
1,838 |
|
|
1,866 |
|
|
(28 |
) |
|
|
(2 |
) |
% |
| |
8,143 |
|
|
1,844 |
|
|
6,299 |
|
|
|
342 |
|
% |
| Other operating income (loss),
net |
(2 |
) |
|
16,168 |
|
|
(16,170 |
) |
|
|
(100 |
) |
% |
|
Operating income (loss) |
$ |
8,141 |
|
|
$ |
18,012 |
|
|
$ |
(9,871 |
) |
|
|
(55 |
) |
% |
| |
|
|
|
|
|
|
|
| NGL sales volumes (Bbls) |
6,952 |
|
|
6,269 |
|
|
683 |
|
|
|
11 |
|
% |
Unallocated Selling, General and Administrative
Expenses
Comparative Results of Operations for the
Three and Nine Months Ended September 30, 2020 and
2019
| |
Three Months Ended September 30, |
|
Variance |
|
Percent Change |
|
Nine Months Ended September 30, |
|
Variance |
|
Percent Change |
| |
2020 |
|
2019 |
|
|
|
2020 |
|
2019 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
(In thousands) |
|
|
|
(In thousands) |
|
|
|
Indirect selling, general and administrative expenses |
$ |
4,523 |
|
|
$ |
4,515 |
|
|
$ |
8 |
|
|
— |
% |
|
$ |
13,256 |
|
|
$ |
13,681 |
|
|
$ |
(425 |
) |
|
|
(3 |
) |
% |
Non-GAAP Financial Measures
The following table reconciles the non-GAAP financial
measurements used by management to our most directly comparable
GAAP measures for the three and nine months ended September 30,
2020 and 2019.
Reconciliation of EBITDA, Adjusted
EBITDA, and Distributable Cash Flow
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
| |
|
|
|
|
|
|
|
| |
(in thousands) |
|
(in thousands) |
|
Net income (loss) |
$ |
(10,819 |
) |
|
$ |
13,250 |
|
|
$ |
(4,207 |
) |
|
$ |
(181,588 |
) |
|
Less: Loss from discontinued operations, net of income
taxes |
— |
|
|
— |
|
|
— |
|
|
179,466 |
|
|
Income (loss) from continuing operations |
(10,819 |
) |
|
13,250 |
|
|
(4,207 |
) |
|
(2,122 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
Interest expense, net |
12,943 |
|
|
11,973 |
|
|
32,245 |
|
|
40,630 |
|
|
Income tax expense |
373 |
|
|
237 |
|
|
1,510 |
|
|
1,572 |
|
|
Depreciation and amortization |
15,276 |
|
|
15,009 |
|
|
45,858 |
|
|
44,997 |
|
|
EBITDA from Continuing Operations |
17,773 |
|
|
40,469 |
|
|
75,406 |
|
|
85,077 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
(Gain) loss on sale of property, plant and equipment, net |
(22 |
) |
|
(16,302 |
) |
|
153 |
|
|
(13,949 |
) |
|
Gain on involuntary conversion of property, plant and
equipment |
(4,522 |
) |
|
— |
|
|
(4,522 |
) |
|
— |
|
|
Unrealized mark-to-market on commodity derivatives |
393 |
|
|
(2,602 |
) |
|
(276 |
) |
|
(529 |
) |
|
Transaction costs associated with acquisitions |
— |
|
|
— |
|
|
— |
|
|
224 |
|
|
Non-cash insurance related accruals |
— |
|
|
— |
|
|
250 |
|
|
500 |
|
|
Lower of cost or market adjustments |
35 |
|
|
104 |
|
|
370 |
|
|
407 |
|
|
Loss on exchange of senior unsecured notes |
8,516 |
|
|
— |
|
|
8,516 |
|
|
— |
|
|
Gain on repurchase of senior unsecured notes |
— |
|
|
— |
|
|
(3,484 |
) |
|
— |
|
|
Unit-based compensation |
361 |
|
|
349 |
|
|
1,070 |
|
|
1,064 |
|
|
Adjusted EBITDA from Continuing Operations |
22,534 |
|
|
22,018 |
|
|
77,483 |
|
|
72,794 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Interest expense, net |
(12,943 |
) |
|
(11,973 |
) |
|
(32,245 |
) |
|
(40,630 |
) |
|
Income tax expense |
(373 |
) |
|
(237 |
) |
|
(1,510 |
) |
|
(1,572 |
) |
|
Amortization of debt premium |
(38 |
) |
|
(77 |
) |
|
(191 |
) |
|
(230 |
) |
|
Amortization of deferred debt issuance costs |
1,683 |
|
|
1,080 |
|
|
2,674 |
|
|
3,558 |
|
|
Deferred income tax expense |
184 |
|
|
244 |
|
|
1,202 |
|
|
1,100 |
|
|
Payments for plant turnaround costs |
(406 |
) |
|
(375 |
) |
|
(637 |
) |
|
(5,117 |
) |
|
Maintenance capital expenditures |
(2,576 |
) |
|
(2,389 |
) |
|
(7,882 |
) |
|
(8,876 |
) |
| Distributable Cash
Flow from Continuing Operations |
$ |
8,065 |
|
|
$ |
8,291 |
|
|
$ |
38,894 |
|
|
$ |
21,027 |
|
| |
|
|
|
|
|
|
|
| Loss from discontinued
operations, net of income taxes |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(179,466 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
— |
|
|
— |
|
|
— |
|
|
8,161 |
|
|
EBITDA from Discontinued Operations |
— |
|
|
— |
|
|
— |
|
|
(171,305 |
) |
|
Loss on sale of property, plant and equipment, net |
— |
|
|
— |
|
|
— |
|
|
178,781 |
|
|
Non-cash insurance related accruals |
— |
|
|
— |
|
|
— |
|
|
3,213 |
|
|
EBITDA and Adjusted EBITDA from Discontinued
Operations |
— |
|
|
— |
|
|
— |
|
|
10,689 |
|
|
Maintenance capital expenditures |
— |
|
|
— |
|
|
— |
|
|
(912 |
) |
| Distributable Cash
Flow from Discontinued Operations |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,777 |
|
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