Martin Midstream Partners L.P. (Nasdaq:MMLP) (the “Partnership”)
announced today its financial results for the three months and year
ended December 31, 2018.
Ruben Martin, President and Chief Executive Officer of Martin
Midstream GP LLC, the general partner of the Partnership, said,
“Looking back at 2018, the Partnership deployed two strategic
initiatives undertaken specifically to strengthen its balance
sheet, reduce leverage and improve its distribution coverage
ratio. In the second quarter, we announced the first
initiative - the sale of our partnership interest in the West Texas
LPG Pipeline Limited Partnership (“WTLPG”). The transaction
closed on July 31, 2018 and the net proceeds of approximately
$193.7 million were used to reduce outstanding borrowings under the
revolving credit facility, lowering our adjusted leverage ratio
from 5.46 times to 4.61 times at June 30, 2018 and December 31,
2018, respectively. We announced the second initiative in
conjunction with our third quarter earnings release and on January
1, 2019, we closed the acquisition of Martin Transport, Inc.
(“MTI”) for $135.0 million. MTI is expected to contribute
approximately $23.6 million and $14.7 million of EBITDA and
distributable cash flow, respectively, to the Partnership in 2019,
contributing to an estimated distribution coverage of 1.1 times at
December 31, 2019.
“With these strategic initiatives in position, we entered the
fourth quarter of 2018 with optimism, as historically this quarter
has been strong for our Natural Gas Services segment. During
this quarter, our butane optimization business begins its cyclical
upswing as demand for butane increases with refineries entering the
winter gasoline-blending season. Though fundamentals remained
constant in this cycle, we did not envision nor did we foresee the
unprecedented, in terms of speed, drop in commodity prices that
occurred from mid-October through December. Although our
carrying cost of refinery grade butane inventory at the end of the
third quarter was well positioned, this dramatic pricing collapse
in the fourth quarter resulted in a $13.5 million shortfall when
compared to revised guidance for the butane optimization
business. This shortfall was slightly offset by modest
outperformance in the remaining Natural Gas Services businesses,
resulting in an overall shortfall of $12.7 million for the year
compared to revised guidance.
“In our Terminalling and Storage segment results were slightly
below revised fourth quarter and full year guidance estimates,
primarily attributable to lower throughput volumes at our
shore-based terminals, reduced lube margins, and unscheduled
repairs and maintenance in our specialty terminals. For the
full year 2018, the Terminalling and Storage segment missed revised
guidance by approximately $1.2 million.
“Our Sulfur Services segment was also slightly below fourth
quarter revised guidance as the fertilizer business experienced
reduced sales volumes due to weather conditions in South Texas,
which were slightly offset by an increase in sulfur storage and
transportation volumes. For the full year 2018, the Sulfur
Services segment shortfall to revised guidance was approximately
$0.7 million.
“The Marine Transportation segment finished slightly above
revised guidance expectations for both fourth quarter and full year
2018. During the quarter, we benefitted from improved day
rates and strong fleet utilization, which resulted in the Marine
Transportation segment exceeding 2018 revised full year guidance by
approximately $0.5 million.
“In total, the Partnership generated a Net Loss and Adjusted
EBITDA of $0.9 million and $26.9 million, respectively, for the
fourth quarter and Net Income and Adjusted EBITDA of $44.1
million and $126.9 million (which includes distributions from WTLPG
of $3.2 million), respectively, for full year 2018. Based on
this performance, the Partnership’s distributable cash flow was
approximately $9.4 million for the quarter and approximately $54.3
million for full year 2018, resulting in a distribution coverage
ratio of 0.69 times, well below our targeted distribution coverage
ratio of 1.25 times or greater.
“As we enter 2019, management remains committed to initiating
strategies that reduce leverage and increase our distribution
coverage ratio. The Partnership expects to generate annual
distributable cash flow of $85.6 million in 2019, resulting in a
distribution coverage ratio of approximately 1.1 times, as stated
earlier. We estimate Net Income and Adjusted EBITDA to be
$43.6 million and $159.5 million, respectively, for 2019, with the
strongest quarters, due to the cyclical nature of our fertilizer
and butane optimization businesses, being the first and
fourth. Management’s expectation is that the majority of the
Partnership estimated adjusted EBITDA will be generated by
fee-based services, with margin activities contributing
approximately 38% of the total adjusted EBITDA estimate. We
are forecasting maintenance capital expenditures for 2019 to be
between $20.0 million and $23.0 million, which includes a
turnaround at the refinery of approximately $3.5 million.
“To conclude, Martin Midstream Partners remains a well-built
company with strategically located assets integrated throughout the
refinery services value chain. Although 2018 proved to be a
difficult year due to the speed of the commodity price collapse in
the fourth quarter, the strategic positioning that occurred during
the last half of 2018 will strengthen the company in 2019 and
forward. Further, we are actively pursuing strategic
initiatives that will significantly reduce our leverage and narrow
our focus to operating assets that serve the refinery services
industry.”
The Partnership had a net loss from continuing operations for
the fourth quarter 2018 of $0.9 million, a loss of $0.04 per
limited partner unit. The Partnership had net income from
continuing operations for the fourth quarter 2017 of $17.1 million,
or $0.47 per limited partner unit. The Partnership's adjusted
EBITDA from continuing operations for the fourth quarter 2018 was
$26.9 million compared to adjusted EBITDA from continuing
operations for the fourth quarter 2017 of $48.1 million.
The Partnership had a net loss from continuing operations for
the year ended December 31, 2018 of $7.6 million, a loss of $0.19
per limited partner unit. Net income from continuing
operations for the year ended December 31, 2017 was $13.0 million,
or $0.33 per limited partner unit. The Partnership's adjusted
EBITDA from continuing operations for the year ended December 31,
2018 was $123.7 million compared to adjusted EBITDA for the year
ended December 31, 2017 of $151.0 million.
The Partnership's distributable cash flow from continuing
operations for the fourth quarter of 2018 was $9.4 million compared
to distributable cash flow from continuing operations for the
fourth quarter of 2017 of $30.1 million.
The Partnership's distributable cash flow from continuing
operations for the year ended December 31, 2018 was $51.0 million
compared to distributable cash flow from continuing operations for
the year ended December 31, 2017 of $85.9 million.
Revenues for the fourth quarter of 2018 were $252.8 million
compared to $305.7 million for the fourth quarter of 2017.
Revenues for the year ended December 31, 2018 were $972.7 million
compared to $946.1 million for the year ended December 31,
2017.
As discussed above, on July 31, 2018, the Partnership divested
of its 20 percent non-operating interest in WTLPG. The
Partnership recorded a gain on the disposition of $48.6
million. The Partnership has presented the results of
operations and cash flows relating to its investment in WTLPG as
discontinued operations for the years ended December 31, 2018 and
2017.
The Partnership had net income from discontinued operations for
the three months ended December 31, 2018 of $0.0 million, or $0.00
per limited partner unit. The Partnership had net income from
discontinued operations for the three months ended December 31,
2017 of $1.7 million, or $0.04 per limited partner unit.
The Partnership had net income from discontinued operations for
the year ended December 31, 2018 of $51.7 million, or $1.30 per
limited partner unit. The Partnership had net income from
discontinued operations for the year ended December 31, 2017 of
$4.1 million, or $0.11 per limited partner unit.
Distributable cash flow and adjusted EBITDA from discontinued
operations were $0.0 million for the three months ended December
31, 2018. Distributable cash flow and adjusted EBITDA from
discontinued operations were $1.2 million for the three months
ended December 31, 2017.
Distributable cash flow and adjusted EBITDA from discontinued
operations were $3.3 million for the year ended December 31,
2018. Distributable cash flow and adjusted EBITDA from
discontinued operations were $5.2 million for the year ended
December 31, 2017.
Distributable cash flow, EBITDA and adjusted EBITDA 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, 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.
Included with this press release are the Partnership's
consolidated financial statements as of and for the year ended
December 31, 2018 and certain prior periods. These financial
statements should be read in conjunction with the information
contained in the Partnership's Annual Report on Form 10-K, to be
filed with the SEC on February 19, 2019.
An attachment accompanying this announcement is available
at http://resource.globenewswire.com/Resource/Download/88f9cd58-8d80-4df0-9518-c61ac53c78b2
2019 Guidance
The Partnership will discuss 2019 guidance during the investors’
conference call scheduled for Thursday, February 14, 2019 at 8:00
a.m. Details of the conference call are below. A
presentation to accompany this discussion is available
at http://resource.globenewswire.com/Resource/Download/8a631312-00a5-4730-b43d-4f1c214879aa
Investors' Conference Call
An investors conference call to review the fourth quarter
results and 2019 guidance will be held on Thursday, February 14,
2019 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 4780178. An archive of the
replay will be on Martin Midstream Partners’ website at
www.MMLP.com.
About Martin Midstream
Partners
The Partnership 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 segments
include: (1) natural gas services, including liquids transportation
and distribution services and natural gas storage; (2)
terminalling, storage and packaging services for petroleum products
and by-products; (3) sulfur and sulfur-based products processing,
manufacturing, marketing and distribution; and (4) land and marine
transportation services for petroleum products and by-products.
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
estimates rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and other factors,
many of which are outside the Partnership's 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.
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 and Adjusted EBITDA. Certain items excluded from
EBITDA and adjusted EBITDA 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 and adjusted
EBITDA 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. 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 and distributable cash flow 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)
256-6644ir@mmlp.com
|
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED BALANCE
SHEETS(Dollars in thousands) |
|
|
|
December 31, |
|
2018 |
|
2017 |
Assets |
|
|
|
Cash |
$ |
237 |
|
|
$ |
27 |
|
Trade and accrued
accounts receivable, less allowance for doubtful accounts of $291
and $314, respectively |
79,031 |
|
|
107,242 |
|
Product exchange
receivables |
166 |
|
|
29 |
|
Inventories (Note
7) |
85,068 |
|
|
97,252 |
|
Due from
affiliates |
18,609 |
|
|
23,668 |
|
Fair value of
derivatives (Note 13) |
4 |
|
|
— |
|
Other current
assets |
5,275 |
|
|
4,866 |
|
Assets held for sale
(Note 5) |
5,652 |
|
|
9,579 |
|
Total
current assets |
194,042 |
|
|
242,663 |
|
|
|
|
|
Property, plant and
equipment, at cost |
1,264,730 |
|
|
1,253,065 |
|
Accumulated
depreciation |
(466,381 |
) |
|
(421,137 |
) |
Property,
plant and equipment, net (Note 8) |
798,349 |
|
|
831,928 |
|
|
|
|
|
Goodwill (Note 9) |
17,296 |
|
|
17,296 |
|
Investment in WTLPG
(Note 11) |
— |
|
|
128,810 |
|
Intangibles and other
assets, net (Note 15) |
23,711 |
|
|
32,801 |
|
|
$ |
1,033,398 |
|
|
$ |
1,253,498 |
|
Liabilities and Partners’ Capital |
|
|
|
Trade and other
accounts payable |
$ |
63,157 |
|
|
$ |
92,567 |
|
Product exchange
payables |
13,237 |
|
|
11,751 |
|
Due to affiliates |
2,459 |
|
|
3,168 |
|
Income taxes
payable |
445 |
|
|
510 |
|
Fair value of
derivatives (Note 13) |
— |
|
|
72 |
|
Other accrued
liabilities (Note 15) |
22,215 |
|
|
26,340 |
|
Total
current liabilities |
101,513 |
|
|
134,408 |
|
|
|
|
|
Long-term debt, net
(Note 16) |
656,459 |
|
|
812,632 |
|
Other long-term
obligations |
10,714 |
|
|
8,217 |
|
Total
liabilities |
768,686 |
|
|
955,257 |
|
Commitments and
contingencies (Note 22) |
|
|
|
Partners’ capital (Note
17) |
264,712 |
|
|
298,241 |
|
Total
partners’ capital |
264,712 |
|
|
298,241 |
|
|
$ |
1,033,398 |
|
|
$ |
1,253,498 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
|
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts) |
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Revenues: |
|
|
|
|
|
Terminalling and storage * |
$ |
96,287 |
|
|
$ |
99,705 |
|
|
$ |
123,132 |
|
Marine
transportation * |
50,370 |
|
|
48,579 |
|
|
58,290 |
|
Natural
gas storage services * |
52,109 |
|
|
58,817 |
|
|
61,133 |
|
Sulfur
services |
11,148 |
|
|
10,952 |
|
|
10,800 |
|
Product
sales: * |
|
|
|
|
|
Natural
gas services |
496,026 |
|
|
473,865 |
|
|
330,200 |
|
Sulfur
services |
121,388 |
|
|
123,732 |
|
|
130,258 |
|
Terminalling and storage |
145,327 |
|
|
130,466 |
|
|
113,578 |
|
|
762,741 |
|
|
728,063 |
|
|
574,036 |
|
Total
revenues |
972,655 |
|
|
946,116 |
|
|
827,391 |
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
Cost of
products sold: (excluding depreciation and amortization) |
|
|
|
|
|
Natural
gas services * |
463,939 |
|
|
421,444 |
|
|
289,516 |
|
Sulfur
services * |
90,418 |
|
|
82,338 |
|
|
87,963 |
|
Terminalling and storage * |
130,253 |
|
|
116,495 |
|
|
100,714 |
|
|
684,610 |
|
|
620,277 |
|
|
478,193 |
|
Expenses: |
|
|
|
|
|
Operating
expenses * |
128,337 |
|
|
140,177 |
|
|
152,325 |
|
Selling,
general and administrative * |
37,677 |
|
|
38,764 |
|
|
34,320 |
|
Impairment of long-lived assets |
— |
|
|
2,225 |
|
|
26,953 |
|
Impairment of goodwill |
— |
|
|
— |
|
|
4,145 |
|
Depreciation and amortization |
76,866 |
|
|
85,195 |
|
|
92,132 |
|
Total costs and expenses |
927,490 |
|
|
886,638 |
|
|
788,068 |
|
Other operating income
(loss), net |
(379 |
) |
|
523 |
|
|
33,400 |
|
Operating
income |
44,786 |
|
|
60,001 |
|
|
72,723 |
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
Interest
expense, net |
(52,037 |
) |
|
(47,743 |
) |
|
(46,100 |
) |
Other,
net |
25 |
|
|
1,101 |
|
|
1,106 |
|
Total
other income (expense) |
(52,012 |
) |
|
(46,642 |
) |
|
(44,994 |
) |
Net income before
taxes |
(7,226 |
) |
|
13,359 |
|
|
27,729 |
|
Income tax expense |
(369 |
) |
|
(352 |
) |
|
(726 |
) |
Income from continuing
operations |
(7,595 |
) |
|
13,007 |
|
|
27,003 |
|
Income from
discontinued operations, net of income taxes |
51,700 |
|
|
4,128 |
|
|
4,649 |
|
Net income |
44,105 |
|
|
17,135 |
|
|
31,652 |
|
Less general partner's
interest in net income |
(882 |
) |
|
(343 |
) |
|
(8,419 |
) |
Less income allocable
to unvested restricted units |
(28 |
) |
|
(42 |
) |
|
(90 |
) |
Limited partner's
interest in net income |
$ |
43,195 |
|
|
$ |
16,750 |
|
|
$ |
23,143 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
*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 |
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Revenues: |
|
|
|
|
|
Terminalling and storage |
$ |
79,219 |
|
|
$ |
82,205 |
|
|
$ |
82,437 |
|
Marine
transportation |
15,442 |
|
|
16,801 |
|
|
21,767 |
|
Natural
gas services |
— |
|
|
122 |
|
|
699 |
|
Product
sales |
1,407 |
|
|
3,578 |
|
|
3,034 |
|
Costs and
expenses: |
|
|
|
|
|
Cost of
products sold: (excluding depreciation and amortization) |
|
|
|
|
|
Natural
gas services |
14,816 |
|
|
18,946 |
|
|
22,886 |
|
Sulfur
services |
17,418 |
|
|
15,564 |
|
|
15,339 |
|
Terminalling and storage |
28,304 |
|
|
17,612 |
|
|
13,838 |
|
Expenses: |
|
|
|
|
|
Operating
expenses |
55,528 |
|
|
64,344 |
|
|
70,841 |
|
Selling,
general and administrative |
28,246 |
|
|
29,416 |
|
|
25,890 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
|
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts) |
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Allocation of
net income attributable to: |
|
|
|
|
|
Limited partner interest: |
|
|
|
|
|
Continuing operations |
$ |
(7,438 |
) |
|
$ |
12,715 |
|
|
$ |
19,744 |
|
Discontinued operations |
50,633 |
|
|
4,035 |
|
|
3,399 |
|
|
$ |
43,195 |
|
|
$ |
16,750 |
|
|
$ |
23,143 |
|
General partner interest: |
|
|
|
|
|
Continuing operations |
$ |
(152 |
) |
|
$ |
260 |
|
|
$ |
7,182 |
|
Discontinued operations |
1,034 |
|
|
83 |
|
|
1,237 |
|
|
$ |
882 |
|
|
$ |
343 |
|
|
$ |
8,419 |
|
|
|
|
|
|
|
Net income per
unit attributable to limited partners: |
|
|
|
|
|
Basic: |
|
|
|
|
|
Continuing operations |
$ |
(0.19 |
) |
|
$ |
0.33 |
|
|
$ |
0.55 |
|
Discontinued operations |
1.30 |
|
|
0.11 |
|
|
0.10 |
|
|
$ |
1.11 |
|
|
$ |
0.44 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
Weighted
average limited partner units - basic |
38,907 |
|
|
38,102 |
|
|
35,347 |
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
Continuing operations |
$ |
(0.19 |
) |
|
$ |
0.33 |
|
|
$ |
0.55 |
|
Discontinued operations |
1.30 |
|
|
0.11 |
|
|
0.10 |
|
|
$ |
1.11 |
|
|
$ |
0.44 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
Weighted
average limited partner units - diluted |
38,923 |
|
|
38,165 |
|
|
35,375 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
|
|
|
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
CAPITAL(Dollars in thousands) |
|
|
|
|
|
Partners’ Capital |
|
|
|
Common |
|
GeneralPartner |
|
|
|
Units |
|
Amount |
|
Amount |
|
Total |
Balances – December 31,
2015 |
35,456,612 |
|
|
$ |
380,845 |
|
|
$ |
13,034 |
|
|
$ |
393,879 |
|
|
|
|
|
|
|
|
|
Net income |
— |
|
|
23,233 |
|
|
8,419 |
|
|
31,652 |
|
Issuance of common
units, net |
— |
|
|
(29 |
) |
|
— |
|
|
(29 |
) |
Issuance of restricted
units |
13,800 |
|
|
— |
|
|
— |
|
|
— |
|
Forfeiture of
restricted units |
(2,250 |
) |
|
— |
|
|
— |
|
|
— |
|
Cash distributions |
— |
|
|
(104,137 |
) |
|
(14,041 |
) |
|
(118,178 |
) |
Reimbursement of excess
purchase price over carrying value of acquired assets |
— |
|
|
4,125 |
|
|
— |
|
|
4,125 |
|
Unit-based
compensation |
— |
|
|
904 |
|
|
— |
|
|
904 |
|
Purchase of treasury
units |
(16,100 |
) |
|
(347 |
) |
|
— |
|
|
(347 |
) |
Balances – December 31,
2016 |
35,452,062 |
|
|
304,594 |
|
|
7,412 |
|
|
312,006 |
|
|
|
|
|
|
|
|
|
Net income |
— |
|
|
16,792 |
|
|
343 |
|
|
17,135 |
|
Issuance of common
units, net |
2,990,000 |
|
|
51,056 |
|
|
— |
|
|
51,056 |
|
Issuance of restricted
units |
12,000 |
|
|
— |
|
|
— |
|
|
— |
|
Forfeiture of
restricted units |
(9,250 |
) |
|
— |
|
|
— |
|
|
— |
|
General partner
contribution |
— |
|
|
— |
|
|
1,098 |
|
|
1,098 |
|
Cash distributions |
— |
|
|
(75,399 |
) |
|
(1,539 |
) |
|
(76,938 |
) |
Reimbursement of excess
purchase price over carrying value of acquired assets |
— |
|
|
1,125 |
|
|
— |
|
|
1,125 |
|
Excess purchase price
over carrying value of acquired assets |
— |
|
|
(7,887 |
) |
|
— |
|
|
(7,887 |
) |
Unit-based
compensation |
— |
|
|
650 |
|
|
— |
|
|
650 |
|
Purchase of treasury
units |
(200 |
) |
|
(4 |
) |
|
— |
|
|
(4 |
) |
Balances – December 31,
2017 |
38,444,612 |
|
|
290,927 |
|
|
7,314 |
|
|
298,241 |
|
|
|
|
|
|
|
|
|
Net income |
— |
|
|
43,223 |
|
|
882 |
|
|
44,105 |
|
Issuance of common
units, net |
— |
|
|
(118 |
) |
|
— |
|
|
(118 |
) |
Issuance of time-based
restricted units |
315,500 |
|
|
— |
|
|
— |
|
|
— |
|
Issuance of
performance-based restricted units |
317,925 |
|
|
— |
|
|
— |
|
|
— |
|
Forfeiture of
restricted units |
(27,000 |
) |
|
— |
|
|
— |
|
|
— |
|
Cash distributions |
— |
|
|
(76,872 |
) |
|
(1,569 |
) |
|
(78,441 |
) |
Excess purchase price
over carrying value of acquired assets |
— |
|
|
(26 |
) |
|
— |
|
|
(26 |
) |
Unit-based
compensation |
— |
|
|
1,224 |
|
|
— |
|
|
1,224 |
|
Purchase of treasury
units |
(18,800 |
) |
|
(273 |
) |
|
— |
|
|
(273 |
) |
Balances – December 31,
2018 |
39,032,237 |
|
|
$ |
258,085 |
|
|
$ |
6,627 |
|
|
$ |
264,712 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
|
|
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Dollars in thousands) |
|
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
|
|
Net
income |
$ |
44,105 |
|
|
$ |
17,135 |
|
|
$ |
31,652 |
|
Less: Income from discontinued operations |
(51,700 |
) |
|
(4,128 |
) |
|
(4,649 |
) |
Net
income (loss) from continuing operations |
(7,595 |
) |
|
13,007 |
|
|
27,003 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
76,866 |
|
|
85,195 |
|
|
92,132 |
|
Amortization and write-off of deferred debt issue costs |
3,445 |
|
|
2,897 |
|
|
3,684 |
|
Amortization of premium on notes payable |
(306 |
) |
|
(306 |
) |
|
(306 |
) |
(Gain)
loss on disposition or sale of property, plant, and equipment |
379 |
|
|
(523 |
) |
|
(33,400 |
) |
Impairment of long lived assets |
— |
|
|
2,225 |
|
|
26,953 |
|
Impairment of goodwill |
— |
|
|
— |
|
|
4,145 |
|
Derivative (income) loss |
(14,024 |
) |
|
1,304 |
|
|
4,133 |
|
Net cash
(paid) received for commodity derivatives |
13,948 |
|
|
(5,136 |
) |
|
(550 |
) |
Net cash
received for interest rate derivatives |
— |
|
|
— |
|
|
160 |
|
Net
premiums received on derivatives that settled during the year on
interest rate swaption contracts |
— |
|
|
— |
|
|
630 |
|
Unit-based compensation |
1,224 |
|
|
650 |
|
|
904 |
|
Change in
current assets and liabilities, excluding effects of acquisitions
and dispositions: |
|
|
|
|
|
Accounts
and other receivables |
28,440 |
|
|
(26,739 |
) |
|
(6,153 |
) |
Product
exchange receivables |
(137 |
) |
|
178 |
|
|
843 |
|
Inventories |
11,844 |
|
|
(14,656 |
) |
|
(6,761 |
) |
Due from
affiliates |
5,059 |
|
|
(12,096 |
) |
|
(1,441 |
) |
Other
current assets |
1,178 |
|
|
(1,699 |
) |
|
2,478 |
|
Trade and
other accounts payable |
(27,478 |
) |
|
20,037 |
|
|
3,254 |
|
Product
exchange payables |
1,486 |
|
|
4,391 |
|
|
(5,372 |
) |
Due to
affiliates |
(709 |
) |
|
(5,306 |
) |
|
2,736 |
|
Income
taxes payable |
(65 |
) |
|
(360 |
) |
|
(115 |
) |
Other
accrued liabilities |
(6,415 |
) |
|
(3,187 |
) |
|
686 |
|
Change in
other non-current assets and liabilities |
332 |
|
|
2,416 |
|
|
(12,230 |
) |
Net cash
provided by continuing operating activities |
87,472 |
|
|
62,292 |
|
|
103,413 |
|
Net cash
provided by discontinued operating activities |
3,254 |
|
|
5,214 |
|
|
7,435 |
|
Net cash
provided by operating activities |
90,726 |
|
|
67,506 |
|
|
110,848 |
|
Cash flows from
investing activities: |
|
|
|
|
|
Payments
for property, plant, and equipment |
(37,090 |
) |
|
(39,749 |
) |
|
(40,455 |
) |
Acquisitions, net of cash acquired |
— |
|
|
(19,533 |
) |
|
(2,150 |
) |
Payments
for plant turnaround costs |
(1,893 |
) |
|
(1,583 |
) |
|
(2,061 |
) |
Proceeds
from sale of property, plant, and equipment |
9,381 |
|
|
8,377 |
|
|
108,505 |
|
Proceeds
from repayment of Note receivable - affiliate |
— |
|
|
15,000 |
|
|
— |
|
Net cash
provided by (used in) continuing investing activities |
(29,602 |
) |
|
(37,488 |
) |
|
63,839 |
|
Net cash
provided by (used in) discontinued investing activities |
177,256 |
|
|
(390 |
) |
|
— |
|
Net cash
provided by (used in) investing activities |
147,654 |
|
|
(37,878 |
) |
|
63,839 |
|
Cash flows from
financing activities: |
|
|
|
|
|
Payments
of long-term debt |
(557,000 |
) |
|
(339,000 |
) |
|
(386,700 |
) |
Proceeds
from long-term debt |
399,000 |
|
|
341,000 |
|
|
331,700 |
|
Net
proceeds from issuance of common units |
(118 |
) |
|
51,056 |
|
|
(29 |
) |
General
partner contributions |
— |
|
|
1,098 |
|
|
— |
|
Excess
purchase price over carrying value of acquired assets |
(26 |
) |
|
(7,887 |
) |
|
— |
|
Reimbursement of excess purchase price over carrying value of
acquired assets |
— |
|
|
1,125 |
|
|
4,125 |
|
Purchase
of treasury units |
(273 |
) |
|
(4 |
) |
|
(347 |
) |
Payments
of debt issuance costs |
(1,312 |
) |
|
(66 |
) |
|
(5,274 |
) |
Cash
distributions paid |
(78,441 |
) |
|
(76,938 |
) |
|
(118,178 |
) |
Net cash
used in financing activities |
(238,170 |
) |
|
(29,616 |
) |
|
(174,703 |
) |
|
|
|
|
|
|
Net
increase (decrease) in cash |
210 |
|
|
12 |
|
|
(16 |
) |
Cash at beginning of
year |
27 |
|
|
15 |
|
|
31 |
|
Cash at end of
year |
$ |
237 |
|
|
$ |
27 |
|
|
$ |
15 |
|
|
|
|
|
|
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Annual Report on Form
10-K to be filed with the Securities and Exchange Commission
on February 19, 2019.
|
|
|
|
|
|
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 Twelve Months Ended December 31, 2018
and 2017 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
2018 |
|
2017 |
|
Variance |
|
PercentChange |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
102,514 |
|
$ |
105,703 |
|
$ |
(3,189 |
) |
|
(3)% |
Products |
|
145,326 |
|
|
130,466 |
|
|
14,860 |
|
|
11% |
Total
revenues |
|
247,840 |
|
|
236,169 |
|
|
11,671 |
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
132,384 |
|
|
118,832 |
|
|
13,552 |
|
|
11% |
Operating expenses |
|
54,129 |
|
|
63,191 |
|
|
(9,062 |
) |
|
(14)% |
Selling, general and
administrative expenses |
|
5,327 |
|
|
5,832 |
|
|
(505 |
) |
|
(9)% |
Impairment of
long-lived assets |
|
— |
|
|
600 |
|
|
(600 |
) |
|
(100)% |
Depreciation and
amortization |
|
39,508 |
|
|
45,160 |
|
|
(5,652 |
) |
|
(13)% |
|
|
16,492 |
|
|
2,554 |
|
|
13,938 |
|
|
546% |
Other operating income,
net |
|
1,328 |
|
|
751 |
|
|
577 |
|
|
77% |
Operating
income |
$ |
17,820 |
|
$ |
3,305 |
|
$ |
14,515 |
|
|
439% |
|
|
|
|
|
|
|
|
|
|
|
|
Lubricant
sales volumes (gallons) |
|
24,016 |
|
|
21,897 |
|
|
2,119 |
|
|
10% |
Shore-based throughput volumes (guaranteed minimum) (gallons) |
|
80,000 |
|
|
144,998 |
|
|
(64,998 |
) |
|
(45)% |
Smackover
refinery throughput volumes (guaranteed minimum BBL per day) |
|
6,500 |
|
|
6,500 |
|
|
— |
|
|
—% |
|
|
|
|
|
|
Comparative Results of Operations for the Twelve
Months Ended December 31, 2017 and 2016 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
2017 |
|
2016 |
|
Variance |
|
PercentChange |
|
|
|
|
|
(In thousands) |
|
|
Revenues: |
|
|
|
|
|
|
|
Services |
$ |
105,703 |
|
$ |
128,783 |
|
$ |
(23,080 |
) |
|
(18)% |
Products |
130,466 |
|
113,580 |
|
16,886 |
|
|
15% |
Total
revenues |
236,169 |
|
242,363 |
|
(6,194 |
) |
|
(3)% |
|
|
|
|
|
|
|
|
Cost of products
sold |
118,832 |
|
102,883 |
|
15,949 |
|
|
16% |
Operating expenses |
63,191 |
|
65,292 |
|
(2,101 |
) |
|
(3)% |
Selling, general and
administrative expenses |
5,832 |
|
4,677 |
|
1,155 |
|
|
25% |
Impairment of
long-lived assets |
600 |
|
15,252 |
|
(14,652 |
) |
|
(96)% |
Depreciation and
amortization |
45,160 |
|
45,484 |
|
(324 |
) |
|
(1)% |
|
2,554 |
|
8,775 |
|
(6,221 |
) |
|
(71)% |
Other operating income,
net |
751 |
|
35,368 |
|
(34,617 |
) |
|
(98)% |
Operating
income |
$ |
3,305 |
|
$ |
44,143 |
|
$ |
(40,838 |
) |
|
(93)% |
|
|
|
|
|
|
|
|
Lubricant
sales volumes (gallons) |
21,897 |
|
17,995 |
|
3,902 |
|
|
22% |
Shore-based throughput volumes (guaranteed minimum) (gallons) |
144,998 |
|
200,000 |
|
(55,002 |
) |
|
(28)% |
Smackover
refinery throughput volumes (guaranteed minimum BBL per day) |
6,500 |
|
6,500 |
|
— |
|
|
—% |
Corpus
Christi crude terminal (barrels per day) |
— |
|
66,167 |
|
(66,167 |
) |
|
(100)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Services Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative
Results of Operations for the Twelve Months Ended December 31, 2018
and 2017 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
2018 |
|
2017 |
|
Variance |
|
PercentChange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
52,109 |
|
|
$ |
58,817 |
|
|
$ |
(6,708 |
) |
|
(11)% |
Products |
|
496,026 |
|
|
|
474,091 |
|
|
|
21,935 |
|
|
5% |
Total
revenues |
|
548,135 |
|
|
|
532,908 |
|
|
|
15,227 |
|
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
467,571 |
|
|
|
425,073 |
|
|
|
42,498 |
|
|
10% |
Operating expenses |
|
24,065 |
|
|
|
22,347 |
|
|
|
1,718 |
|
|
8% |
Selling, general and
administrative expenses |
|
9,063 |
|
|
|
11,106 |
|
|
|
(2,043 |
) |
|
(18)% |
Depreciation and
amortization |
|
21,283 |
|
|
|
24,916 |
|
|
|
(3,633 |
) |
|
(15)% |
|
|
26,153 |
|
|
|
49,466 |
|
|
|
(23,313 |
) |
|
(47)% |
Other operating loss,
net |
|
(1,215 |
) |
|
|
(89 |
) |
|
|
(1,126 |
) |
|
(1,265)% |
Operating
income |
$ |
24,938 |
|
|
$ |
49,377 |
|
|
$ |
(24,439 |
) |
|
(49)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs Volumes
(barrels) |
|
10,223 |
|
|
|
10,487 |
|
|
|
(264 |
) |
|
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative Results of Operations for the Twelve
Months Ended December 31, 2017 and 2016 |
|
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Variance |
|
PercentChange |
|
|
|
|
|
|
(In thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
58,817 |
|
|
$ |
61,133 |
|
|
$ |
(2,316 |
) |
|
(4)% |
Products |
|
474,091 |
|
|
|
330,200 |
|
|
|
143,891 |
|
|
44% |
Total
revenues |
|
532,908 |
|
|
|
391,333 |
|
|
|
141,575 |
|
|
36% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
425,073 |
|
|
|
292,573 |
|
|
|
132,500 |
|
|
45% |
Operating expenses |
|
22,347 |
|
|
|
23,152 |
|
|
|
(805 |
) |
|
(3)% |
Selling, general and
administrative expenses |
|
11,106 |
|
|
|
8,970 |
|
|
|
2,136 |
|
|
24% |
Depreciation and
amortization |
|
24,916 |
|
|
|
28,081 |
|
|
|
(3,165 |
) |
|
(11)% |
|
|
49,466 |
|
|
|
38,557 |
|
|
|
10,909 |
|
|
28% |
Other operating loss,
net |
|
(89 |
) |
|
|
(110 |
) |
|
|
21 |
|
|
19% |
Operating
income |
$ |
49,377 |
|
|
$ |
38,447 |
|
|
$ |
10,930 |
|
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs Volumes
(barrels) |
|
10,487 |
|
|
|
9,532 |
|
|
|
955 |
|
|
10% |
|
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 Twelve
Months Ended December 31, 2018 and 2017 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Variance |
|
|
PercentChange |
|
|
|
|
|
(In thousands) |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
11,148 |
|
|
$ |
10,952 |
|
|
$ |
196 |
|
|
2% |
Products |
|
121,388 |
|
|
|
123,732 |
|
|
|
(2,344 |
) |
|
(2)% |
Total
revenues |
|
132,536 |
|
|
|
134,684 |
|
|
|
(2,148 |
) |
|
(2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
90,780 |
|
|
|
82,760 |
|
|
|
8,020 |
|
|
10% |
Operating expenses |
|
11,618 |
|
|
|
13,783 |
|
|
|
(2,165 |
) |
|
(16)% |
Selling, general and
administrative expenses |
|
4,326 |
|
|
|
4,136 |
|
|
|
190 |
|
|
5% |
Depreciation and
amortization |
|
8,485 |
|
|
|
8,117 |
|
|
|
368 |
|
|
5% |
|
|
17,327 |
|
|
|
25,888 |
|
|
|
(8,561 |
) |
|
(33)% |
Other operating loss,
net |
|
(111 |
) |
|
|
(26 |
) |
|
|
(85 |
) |
|
(327)% |
Operating
income |
$ |
17,216 |
|
|
$ |
25,862 |
|
|
$ |
(8,646 |
) |
|
(33)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sulfur (long tons) |
|
688.0 |
|
|
|
807.0 |
|
|
|
(119.0 |
) |
|
(15)% |
Fertilizer (long
tons) |
|
277.0 |
|
|
|
276.0 |
|
|
|
1.0 |
|
|
—% |
Sulfur services volumes
(long tons) |
|
965.0 |
|
|
|
1,083.0 |
|
|
|
(118.0 |
) |
|
(11)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative Results of Operations for the Twelve
Months Ended December 31, 2017 and 2016 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Variance |
|
|
PercentChange |
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
$ |
10,952 |
|
|
$ |
10,800 |
|
|
$ |
152 |
|
|
1% |
Products |
|
123,732 |
|
|
|
130,258 |
|
|
|
(6,526 |
) |
|
(5)% |
Total
revenues |
|
134,684 |
|
|
|
141,058 |
|
|
|
(6,374 |
) |
|
(5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
82,760 |
|
|
|
88,325 |
|
|
|
(5,565 |
) |
|
(6)% |
Operating expenses |
|
13,783 |
|
|
|
13,771 |
|
|
|
12 |
|
|
—% |
Selling, general and
administrative expenses |
|
4,136 |
|
|
|
3,861 |
|
|
|
275 |
|
|
7% |
Depreciation and
amortization |
|
8,117 |
|
|
|
7,995 |
|
|
|
122 |
|
|
2% |
|
|
25,888 |
|
|
|
27,106 |
|
|
|
(1,218 |
) |
|
(4)% |
Other operating loss,
net |
|
(26 |
) |
|
|
(291 |
) |
|
|
265 |
|
|
91% |
Operating
income |
$ |
25,862 |
|
|
$ |
26,815 |
|
|
$ |
(953 |
) |
|
(4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sulfur (long tons) |
|
807.0 |
|
|
|
797.0 |
|
|
|
10.0 |
|
|
1% |
Fertilizer (long
tons) |
|
276.0 |
|
|
|
262.0 |
|
|
|
14.0 |
|
|
5% |
Sulfur services volumes
(long tons) |
|
1,083.0 |
|
|
|
1,059.0 |
|
|
|
24.0 |
|
|
2% |
|
MARTIN MIDSTREAM PARTNERS
L.P.SEGMENT OPERATING
INCOME(Dollars and volumes in thousands, except
BBL per day) |
|
Marine Transportation Segment |
|
Comparative Results of Operations for the Twelve
Months Ended December 31, 2018 and 2017 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
Variance |
|
|
PercentChange |
|
|
|
|
|
|
(In thousands) |
|
|
|
Revenues |
$ |
52,830 |
|
|
$ |
51,915 |
|
|
$ |
915 |
|
|
2% |
Operating expenses |
|
41,086 |
|
|
|
44,028 |
|
|
|
(2,942 |
) |
|
(7)% |
Selling, general and
administrative expenses |
|
1,060 |
|
|
|
358 |
|
|
|
702 |
|
|
196% |
Impairment of
long-lived assets |
|
— |
|
|
|
1,625 |
|
|
|
(1,625 |
) |
|
(100)% |
Depreciation and
amortization |
|
7,590 |
|
|
|
7,002 |
|
|
|
588 |
|
|
8% |
|
|
3,094 |
|
|
|
(1,098 |
) |
|
|
4,192 |
|
|
382% |
Other operating loss,
net |
|
(381 |
) |
|
|
(113 |
) |
|
|
(268 |
) |
|
(237)% |
Operating
income (loss) |
$ |
2,713 |
|
|
$ |
(1,211 |
) |
|
$ |
3,924 |
|
|
324% |
|
Comparative Results of Operations for the Twelve
Months Ended December 31, 2017 and 2016 |
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
2017 |
|
2016 |
|
Variance |
|
PercentChange |
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues |
$ |
51,915 |
|
|
$ |
61,233 |
|
|
$ |
(9,318 |
) |
|
(15)% |
Operating expenses |
|
44,028 |
|
|
|
53,118 |
|
|
|
(9,090 |
) |
|
(17)% |
Selling, general and
administrative expenses |
|
358 |
|
|
|
18 |
|
|
|
340 |
|
|
1,889% |
Impairment of long
lived assets |
|
1,625 |
|
|
|
11,701 |
|
|
|
(10,076 |
) |
|
(86)% |
Impairment of
goodwill |
|
— |
|
|
|
4,145 |
|
|
|
(4,145 |
) |
|
(100)% |
Depreciation and
amortization |
|
7,002 |
|
|
|
10,572 |
|
|
|
(3,570 |
) |
|
(34)% |
|
|
(1,098 |
) |
|
|
(18,321 |
) |
|
|
17,223 |
|
|
94% |
Other operating loss,
net |
|
(113 |
) |
|
|
(1,567 |
) |
|
|
1,454 |
|
|
93% |
Operating
loss |
$ |
(1,211 |
) |
|
$ |
(19,888 |
) |
|
$ |
18,677 |
|
|
94% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 quarter and years ended December 31,
2018 and 2017, which represents EBITDA, Adjusted EBITDA and
Distributable Cash Flow.
|
Reconciliation of EBITDA, Adjusted EBITDA, and
Distributable Cash Flow |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Net income |
$ |
(913 |
) |
|
$ |
18,849 |
|
|
$ |
44,105 |
|
|
$ |
17,135 |
|
Less: Income from
discontinued operations, net of income taxes |
— |
|
|
(1,726 |
) |
|
(51,700 |
) |
|
(4,128 |
) |
Income (loss) from
continuing operations |
(913 |
) |
|
17,123 |
|
|
(7,595 |
) |
|
13,007 |
|
Adjustments: |
|
|
|
|
|
|
|
Interest
expense |
12,446 |
|
|
13,066 |
|
|
52,037 |
|
|
47,743 |
|
Income
tax expense |
(3 |
) |
|
51 |
|
|
369 |
|
|
352 |
|
Depreciation and amortization |
18,024 |
|
|
19,247 |
|
|
76,866 |
|
|
85,195 |
|
EBITDA |
29,554 |
|
|
49,487 |
|
|
121,677 |
|
|
146,297 |
|
Adjustments: |
|
|
|
|
|
|
|
(Gain)
loss on sale of property, plant and equipment |
(497 |
) |
|
(850 |
) |
|
379 |
|
|
(523 |
) |
Impairment of long-lived assets |
— |
|
|
2,225 |
|
|
— |
|
|
2,225 |
|
Unrealized mark-to-market on commodity derivatives |
(2,972 |
) |
|
205 |
|
|
(76 |
) |
|
(3,832 |
) |
Hurricane
damage repair accrual |
— |
|
|
(3,068 |
) |
|
— |
|
|
657 |
|
Asset
retirement obligation revision |
— |
|
|
— |
|
|
— |
|
|
5,547 |
|
Unit-based compensation |
352 |
|
|
132 |
|
|
1,224 |
|
|
650 |
|
Transaction costs associated with acquisitions |
465 |
|
|
— |
|
|
465 |
|
|
— |
|
Adjusted
EBITDA |
26,902 |
|
|
48,131 |
|
|
123,669 |
|
|
151,021 |
|
Adjustments: |
|
|
|
|
|
|
|
Interest
expense |
(12,446 |
) |
|
(13,066 |
) |
|
(52,037 |
) |
|
(47,743 |
) |
Income
tax expense |
3 |
|
|
(51 |
) |
|
(369 |
) |
|
(352 |
) |
Amortization of deferred debt issuance costs |
882 |
|
|
727 |
|
|
3,445 |
|
|
2,897 |
|
Amortization of debt premium |
(76 |
) |
|
(76 |
) |
|
(306 |
) |
|
(306 |
) |
Non-cash
mark-to-market on interest rate derivatives |
— |
|
|
— |
|
|
— |
|
|
— |
|
Payments
for plant turnaround costs |
(1,014 |
) |
|
— |
|
|
(1,893 |
) |
|
(1,583 |
) |
Maintenance capital expenditures |
(4,886 |
) |
|
(5,586 |
) |
|
(21,505 |
) |
|
(18,080 |
) |
Distributable
Cash Flow |
$ |
9,365 |
|
|
$ |
30,079 |
|
|
$ |
51,004 |
|
|
$ |
85,854 |
|
|
|
|
|
|
|
|
|
Income from
discontinued operations |
$ |
— |
|
|
$ |
1,726 |
|
|
$ |
51,700 |
|
|
$ |
4,128 |
|
Adjustments: |
|
|
|
|
|
|
|
Equity in
earnings |
— |
|
|
(1,767 |
) |
|
(3,382 |
) |
|
(4,314 |
) |
Distributions from unconsolidated entities |
— |
|
|
1,200 |
|
|
3,500 |
|
|
5,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from
disposition of Investment in WTLPG |
— |
|
|
— |
|
|
(48,564 |
) |
|
— |
|
Adjusted EBITDA
and Distributable Cash Flow from Discontinued
Operations |
$ |
— |
|
|
$ |
1,159 |
|
|
$ |
3,254 |
|
|
$ |
5,214 |
|
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