Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership")
announced today strategic initiatives designed to strengthen the
balance sheet by reducing leverage and allowing the Partnership to
retain earnings to fund growth opportunities. These
initiatives consist of:
- The previously announced marketing of the Partnership’s gas
storage assets.
- The active negotiation of the sale of certain non-core assets
and/or businesses.
- The announcement of the Partnership’s quarterly cash
distribution of $0.25 per unit or $1.00 per unit on an annual
basis.
"As we have stated for multiple quarters, the Partnership is
committed to strengthening our balance sheet, reducing leverage and
increasing our coverage ratio. The cash distribution
announcement today, while difficult, assists us as we move forward
toward those goals", said Ruben Martin, President and Chief
Executive Officer of Martin Midstream GP LLC, the general partner
of the Partnership. "The decision was not made lightly or
without considerable debate, as I, as well as the other members of
our Board and Executive Management team, realize the implications
of such a decision for our unitholders and our Partnership.
However, this decision allows us to retain approximately $39.3
million annually enhancing the Partnership’s financial flexibility
to pursue desirable growth opportunities that build long-term value
for our unitholders."
The Partnership also announced today its financial results for
the first quarter of 2019. The Partnership reported a net
loss for the first quarter 2019 of $3.7 million, a loss of $0.09
per limited partner unit. The Partnership had a net income
from continuing operations for the first quarter 2018 of $13.5
million, or $0.29 per limited partner unit.
"In the first quarter of 2019, the Partnership earned adjusted
EBITDA of $30.8 million, which was below guidance by approximately
$7.1 million," said Mr. Martin. "Through most of the quarter
we experienced extreme weather patterns throughout our geographic
footprint that negatively impacted the majority of our business
segments.
"Beginning with Sulfur Services, the segment missed guidance by
approximately $3.0 million as the fertilizer business experienced
weak sales activity up through mid-March as farmers were not able
to plant acreage due to weather related disruptions affecting field
conditions. Fertilizer activity did increase in late March
and we believe will continue to accelerate into the second quarter
as the agricultural market deals with a shorter planting
season. Within the Natural Gas Services segment, warm winter
weather drove propane sales volumes lower than estimated and the
weak butane pricing environment that began in the fourth quarter of
2018 carried over into the first quarter of 2019, contributing to
an approximate $2.8 million miss for the segment when compared to
guidance. And finally, our Transportation and Terminalling
and Storage segments modestly missed guidance by approximately $0.6
million and $0.7 million, respectively.
"Based on this performance, the Partnership's distributable cash
flow from continuing operations for the first quarter of 2019 was
approximately $9.6 million. Distributable cash flow was also
negatively affected by approximately $1.9 million of maintenance
capital expenditures planned for the second quarter of 2019 that
were accelerated into the first quarter for scheduling
purposes."
Revenues for the first quarter 2019 were $251.0 million compared
to the first quarter 2018 of $307.1 million.
The Partnership had net income from discontinued operations
related to its previously owned investment in West Texas LPG
Pipeline for the three months ended March 31, 2018 of $1.5 million,
or $0.04 per limited partner unit. Distributable cash flow
and adjusted EBITDA from discontinued operations were $1.4 million
for the three months ended March 31, 2018.
Distributable cash flow, distributable cash flow from
discontinued operations, EBITDA, adjusted EBITDA, 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, 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 and condensed financial statements as of and for the
three months ended March 31, 2019 and certain prior periods.
These financial statements should be read in conjunction with the
information contained in the Partnership's Quarterly Report on Form
10-Q, to be filed with the Securities and Exchange Commission on
April 26, 2019.
An attachment accompanying this announcement is attached to this
press release
at http://ml.globenewswire.com/Resource/Download/e3a94d3c-e0a3-423e-be4d-89994d115e51.
Investors' Conference Call
A conference call to review the first quarter results will be
held on Thursday, April 25, 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 7797871. 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) 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 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, and Adjusted EBITDA from Discontinued
Operations. Certain items excluded from EBITDA, adjusted
EBITDA, 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, 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, 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)
|
March 31,2019 |
|
December 31,20181 |
|
(Unaudited) |
|
(Unaudited) |
Assets |
|
|
|
Cash |
$ |
227 |
|
|
$ |
300 |
|
Accounts and other
receivables, less allowance for doubtful accounts of $675 and $576,
respectively |
77,420 |
|
|
90,757 |
|
Product exchange
receivables |
181 |
|
|
166 |
|
Inventories (Note
6) |
70,541 |
|
|
86,207 |
|
Due from
affiliates |
27,035 |
|
|
18,845 |
|
Fair value of
derivatives (Note 10) |
150 |
|
|
4 |
|
Other current
assets |
7,135 |
|
|
6,106 |
|
Assets held for sale
(Note 4) |
5,502 |
|
|
5,652 |
|
Total
current assets |
188,191 |
|
|
208,037 |
|
|
|
|
|
Property, plant and
equipment, at cost |
1,311,020 |
|
|
1,311,573 |
|
Accumulated
depreciation |
(498,138 |
) |
|
(487,840 |
) |
Property,
plant and equipment, net |
812,882 |
|
|
823,733 |
|
|
|
|
|
Goodwill |
17,785 |
|
|
17,785 |
|
Right-of-use assets
(Note 9) |
28,109 |
|
|
— |
|
Deferred income taxes,
net (Note 19) |
24,412 |
|
|
— |
|
Other assets, net (Note
10) |
23,689 |
|
|
24,073 |
|
Total
assets |
$ |
1,095,068 |
|
|
$ |
1,073,628 |
|
|
|
|
|
Liabilities and Partners’ Capital |
|
|
|
Current installments of
long-term debt and finance lease obligations (Notes 8 and 9) |
$ |
406,650 |
|
|
$ |
5,409 |
|
Trade and other
accounts payable |
76,488 |
|
|
65,723 |
|
Product exchange
payables |
14,234 |
|
|
13,237 |
|
Due to affiliates |
4,103 |
|
|
2,135 |
|
Income taxes
payable |
989 |
|
|
445 |
|
Other accrued
liabilities (Note 10) |
22,150 |
|
|
24,802 |
|
Total
current liabilities |
524,614 |
|
|
111,751 |
|
|
|
|
|
Long-term debt and
finance lease obligations, net (Notes 8 and 9) |
377,976 |
|
|
662,731 |
|
Operating lease
liabilities (Note 9) |
19,734 |
|
|
— |
|
Other long-term
obligations |
8,953 |
|
|
10,714 |
|
Total
liabilities |
931,277 |
|
|
785,196 |
|
|
|
|
|
Commitments and
contingencies (Note 16) |
|
|
|
Partners’ capital (Note
12) |
163,791 |
|
|
288,432 |
|
Total
partners’ capital |
163,791 |
|
|
288,432 |
|
Total
liabilities and partners' capital |
$ |
1,095,068 |
|
|
$ |
1,073,628 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to Martin Transport, Inc. ("MTI")
acquired from Martin Resource Management Corporation. See Note 1 –
Nature of Operations and Basis of Presentation.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts)
|
Three Months Ended |
|
March 31, |
|
2019 |
|
20181 |
Revenues: |
|
|
|
Terminalling and storage * |
$ |
23,104 |
|
|
$ |
24,047 |
|
Transportation * |
37,795 |
|
|
34,359 |
|
Natural
gas services* |
10,934 |
|
|
15,356 |
|
Sulfur
services |
2,859 |
|
|
2,787 |
|
Product
sales: * |
|
|
|
Natural
gas services |
116,474 |
|
|
159,162 |
|
Sulfur
services |
28,734 |
|
|
34,900 |
|
Terminalling and storage |
31,067 |
|
|
36,463 |
|
|
176,275 |
|
|
230,525 |
|
Total
revenues |
250,967 |
|
|
307,074 |
|
|
|
|
|
Costs and
expenses: |
|
|
|
Cost of
products sold: (excluding depreciation and amortization) |
|
|
|
Natural
gas services * |
106,190 |
|
|
138,638 |
|
Sulfur
services * |
19,696 |
|
|
22,218 |
|
Terminalling and storage * |
26,871 |
|
|
31,980 |
|
|
152,757 |
|
|
192,836 |
|
Expenses: |
|
|
|
Operating
expenses * |
56,656 |
|
|
56,934 |
|
Selling,
general and administrative * |
11,144 |
|
|
10,939 |
|
Depreciation and amortization |
18,982 |
|
|
19,990 |
|
Total
costs and expenses |
239,539 |
|
|
280,699 |
|
|
|
|
|
Other operating
loss |
(720 |
) |
|
8 |
|
Operating
income (loss) |
10,708 |
|
|
26,383 |
|
|
|
|
|
Other income
(expense): |
|
|
|
Interest
expense, net |
(13,671 |
) |
|
(12,730 |
) |
Other,
net |
3 |
|
|
— |
|
Total
other expense |
(13,668 |
) |
|
(12,730 |
) |
|
|
|
|
Net income (loss)
before taxes |
(2,960 |
) |
|
13,653 |
|
Income tax expense |
(696 |
) |
|
(149 |
) |
Income (loss) from
continuing operations |
(3,656 |
) |
|
13,504 |
|
Income from
discontinued operations, net of income taxes |
— |
|
|
1,532 |
|
Net income (loss) |
(3,656 |
) |
|
15,036 |
|
Less general partner's
interest in net (income) loss |
73 |
|
|
(256 |
) |
Less pre-acquisition
(income) allocated to the general partner |
— |
|
|
(2,218 |
) |
Less (income) loss
allocable to unvested restricted units |
2 |
|
|
(8 |
) |
Limited partners'
interest in net income (loss) |
$ |
(3,581 |
) |
|
$ |
12,554 |
|
|
|
|
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
*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 |
|
March 31, |
|
2019 |
|
20181 |
Revenues:* |
|
|
|
Terminalling and storage |
$ |
18,972 |
|
|
$ |
20,008 |
|
Transportation |
5,643 |
|
|
6,693 |
|
Product
Sales |
421 |
|
|
624 |
|
Costs and
expenses:* |
|
|
|
Cost of
products sold: (excluding depreciation and amortization) |
|
|
|
Sulfur
services |
2,574 |
|
|
2,848 |
|
Terminalling and storage |
5,909 |
|
|
5,579 |
|
Expenses: |
|
|
|
Operating
expenses |
22,536 |
|
|
23,088 |
|
Selling,
general and administrative |
8,535 |
|
|
7,926 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per unit
amounts)
|
Three Months Ended |
|
March 31, |
|
2019 |
|
20181 |
Allocation of net
income (loss) attributable to: |
|
|
|
Limited partner interest: |
|
|
|
Continuing operations |
$ |
(3,581 |
) |
|
$ |
11,054 |
|
Discontinued operations |
— |
|
|
1,500 |
|
|
$ |
(3,581 |
) |
|
$ |
12,554 |
|
General partner interest: |
|
|
|
Continuing operations |
$ |
(73 |
) |
|
$ |
225 |
|
Discontinued operations |
— |
|
|
31 |
|
|
$ |
(73 |
) |
|
$ |
256 |
|
|
|
|
|
Net income (loss) per
unit attributable to limited partners: |
|
|
|
Basic: |
|
|
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
0.29 |
|
Discontinued operations |
— |
|
|
0.04 |
|
|
$ |
(0.09 |
) |
|
$ |
0.33 |
|
Weighted
average limited partner units - basic |
38,682 |
|
|
38,621 |
|
Diluted: |
|
|
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
0.29 |
|
Discontinued operations |
— |
|
|
0.03 |
|
|
$ |
(0.09 |
) |
|
$ |
0.32 |
|
Weighted
average limited partner units - diluted |
38,682 |
|
|
38,630 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF
CAPITAL(Dollars in thousands)
|
|
|
Partners’ Capital |
|
|
|
Parent NetInvestment1 |
|
Common Limited |
|
GeneralPartnerAmount |
|
|
|
|
Units |
|
Amount |
|
|
Total |
Balances - January 1,
2018 |
$ |
24,240 |
|
|
38,444,612 |
|
|
$ |
290,927 |
|
|
$ |
7,314 |
|
|
$ |
322,481 |
|
Net
income |
2,218 |
|
|
— |
|
|
12,562 |
|
|
256 |
|
|
15,036 |
|
Issuance
of common units, net |
— |
|
|
— |
|
|
(101 |
) |
|
— |
|
|
(101 |
) |
Issuance
of restricted units |
— |
|
|
633,425 |
|
|
— |
|
|
— |
|
|
— |
|
Forfeiture of restricted units |
— |
|
|
(7,000 |
) |
|
— |
|
|
— |
|
|
— |
|
Cash
distributions |
— |
|
|
— |
|
|
(19,213 |
) |
|
(392 |
) |
|
(19,605 |
) |
Deemed
distribution to Martin Resource Management Corporation |
(2,342 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,342 |
) |
Unit-based compensation |
— |
|
|
— |
|
|
132 |
|
|
— |
|
|
132 |
|
Purchase
of treasury units |
— |
|
|
(18,800 |
) |
|
(273 |
) |
|
— |
|
|
(273 |
) |
Excess
purchase price over carrying value of acquired assets |
— |
|
|
— |
|
|
(26 |
) |
|
— |
|
|
(26 |
) |
Balances - March 31,
2018 |
$ |
24,116 |
|
|
39,052,237 |
|
|
$ |
284,008 |
|
|
$ |
7,178 |
|
|
$ |
315,302 |
|
|
|
|
|
|
|
|
|
|
|
Balances - January 1,
2019 |
$ |
23,720 |
|
|
39,032,237 |
|
|
$ |
258,085 |
|
|
$ |
6,627 |
|
|
$ |
288,432 |
|
Net
loss |
— |
|
|
— |
|
|
(3,583 |
) |
|
(73 |
) |
|
(3,656 |
) |
Issuance
of restricted units |
— |
|
|
16,944 |
|
|
— |
|
|
— |
|
|
— |
|
Forfeiture of restricted units |
— |
|
|
(118,087 |
) |
|
— |
|
|
— |
|
|
— |
|
Cash
distributions |
— |
|
|
— |
|
|
(19,221 |
) |
|
(392 |
) |
|
(19,613 |
) |
Unit-based compensation |
— |
|
|
— |
|
|
352 |
|
|
— |
|
|
352 |
|
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 |
) |
Purchase
of treasury units |
— |
|
|
(31,504 |
) |
|
(392 |
) |
|
— |
|
|
(392 |
) |
Balances - March 31,
2019 |
$ |
— |
|
|
38,899,590 |
|
|
$ |
157,629 |
|
|
$ |
6,162 |
|
|
$ |
163,791 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CASH
FLOWS(Dollars in thousands)
|
Three Months Ended |
|
March 31, |
|
2019 |
|
20181 |
Cash flows from
operating activities: |
|
|
|
Net
income (loss) |
$ |
(3,656 |
) |
|
$ |
15,036 |
|
Less: Income from discontinued operations, net of income
taxes |
— |
|
|
(1,532 |
) |
Net
income (loss) from continuing operations |
(3,656 |
) |
|
13,504 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
18,982 |
|
|
19,990 |
|
Amortization of deferred debt issuance costs |
895 |
|
|
819 |
|
Amortization of premium on notes payable |
(77 |
) |
|
(77 |
) |
Deferred
taxes |
369 |
|
|
— |
|
Loss on
sale of property, plant and equipment |
720 |
|
|
(8 |
) |
Derivative loss |
239 |
|
|
(2,470 |
) |
Net cash
received (paid) for commodity derivatives |
(385 |
) |
|
2,316 |
|
Unit-based compensation |
352 |
|
|
132 |
|
Change in
current assets and liabilities, excluding effects of acquisitions
and dispositions: |
|
|
|
Accounts and other receivables |
13,335 |
|
|
22,120 |
|
Product exchange receivables |
(15 |
) |
|
(46 |
) |
Inventories |
15,665 |
|
|
23,306 |
|
Due from affiliates |
(7,384 |
) |
|
(1,844 |
) |
Other current assets |
(250 |
) |
|
(931 |
) |
Trade and other accounts payable |
10,933 |
|
|
(2,711 |
) |
Product exchange payables |
997 |
|
|
(1,551 |
) |
Due to affiliates |
1,162 |
|
|
(2,181 |
) |
Income taxes payable |
544 |
|
|
149 |
|
Other accrued liabilities |
(11,038 |
) |
|
(13,234 |
) |
Change in
other non-current assets and liabilities |
(785 |
) |
|
609 |
|
Net cash provided by continuing operating
activities |
40,603 |
|
|
57,892 |
|
Net cash provided by discontinued operating
activities |
— |
|
|
1,437 |
|
Net cash provided by operating activities |
40,603 |
|
|
59,329 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Payments
for property, plant and equipment |
(6,973 |
) |
|
(16,557 |
) |
Acquisitions |
(23,720 |
) |
|
— |
|
Payments
for plant turnaround costs |
(3,827 |
) |
|
— |
|
Proceeds
from sale of property, plant and equipment |
574 |
|
|
(32 |
) |
Net cash used in continuing investing activities |
(33,946 |
) |
|
(16,589 |
) |
Net cash used in discontinuing investing activities |
— |
|
|
(1,739 |
) |
Net cash used in investing activities |
(33,946 |
) |
|
(18,328 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payments
of long-term debt and finance lease obligations |
(89,255 |
) |
|
(101,261 |
) |
Proceeds
from long-term debt |
205,000 |
|
|
84,000 |
|
Proceeds
from issuance of common units, net of issuance related costs |
— |
|
|
(101 |
) |
Purchase
of treasury units |
(392 |
) |
|
(273 |
) |
Deemed
distribution to Martin Resource Management Corporation |
— |
|
|
(2,342 |
) |
Payment
of debt issuance costs |
(77 |
) |
|
(1,236 |
) |
Excess
purchase price over carrying value of acquired assets |
(102,393 |
) |
|
(26 |
) |
Cash
distributions paid |
(19,613 |
) |
|
(19,605 |
) |
Net cash used in financing activities |
(6,730 |
) |
|
(40,844 |
) |
|
|
|
|
Net increase (decrease) in cash |
(73 |
) |
|
157 |
|
Cash at beginning of
period |
300 |
|
|
89 |
|
Cash at end of
period |
$ |
227 |
|
|
$ |
246 |
|
Non-cash additions to
property, plant and equipment |
$ |
2,001 |
|
|
$ |
1,905 |
|
These financial statements should be read in conjunction with
the financial statements and the accompanying notes and other
information included in the Partnership's Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on April 26, 2019.
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
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 March 31, 2019 and 2018
|
Three Months EndedMarch 31, |
|
Variance |
|
PercentChange |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
(In thousands, except BBL per
day) |
|
|
Revenues: |
|
|
|
|
|
|
|
Services |
$ |
24,800 |
|
|
$ |
25,503 |
|
|
$ |
(703 |
) |
|
(3 |
)% |
Products |
31,092 |
|
|
36,480 |
|
|
(5,388 |
) |
|
(15 |
)% |
Total
revenues |
55,892 |
|
|
61,983 |
|
|
(6,091 |
) |
|
(10 |
)% |
|
|
|
|
|
|
|
|
Cost of products
sold |
28,277 |
|
|
33,502 |
|
|
(5,225 |
) |
|
(16 |
)% |
Operating expenses |
13,353 |
|
|
13,447 |
|
|
(94 |
) |
|
(1 |
)% |
Selling, general and
administrative expenses |
1,349 |
|
|
1,256 |
|
|
93 |
|
|
7 |
% |
Depreciation and
amortization |
7,837 |
|
|
10,159 |
|
|
(2,322 |
) |
|
(23 |
)% |
|
5,076 |
|
|
3,619 |
|
|
1,457 |
|
|
40 |
% |
Other operating
income |
10 |
|
|
— |
|
|
10 |
|
|
|
Operating
income |
$ |
5,086 |
|
|
$ |
3,619 |
|
|
$ |
1,467 |
|
|
41 |
% |
|
|
|
|
|
|
|
|
Shore-based throughput volumes (guaranteed minimum) (gallons) |
20,000 |
|
|
20,000 |
|
|
— |
|
|
— |
% |
Smackover
refinery throughput volumes (guaranteed minimum) (BBL per day) |
6,500 |
|
|
6,500 |
|
|
— |
|
|
— |
% |
Natural Gas Services Segment
Comparative Results of Operations for the Three Months
Ended March 31, 2019 and 2018
|
Three Months EndedMarch 31, |
|
Variance |
|
PercentChange |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
Revenues: |
|
|
|
|
|
|
|
Services |
$ |
10,934 |
|
|
$ |
15,356 |
|
|
$ |
(4,422 |
) |
|
(29 |
)% |
Products |
116,474 |
|
|
159,163 |
|
|
(42,689 |
) |
|
(27 |
)% |
Total
revenues |
127,408 |
|
|
174,519 |
|
|
(47,111 |
) |
|
(27 |
)% |
|
|
|
|
|
|
|
|
Cost of products
sold |
111,309 |
|
|
143,748 |
|
|
(32,439 |
) |
|
(23 |
)% |
Operating expenses |
6,513 |
|
|
5,780 |
|
|
733 |
|
|
13 |
% |
Selling, general and
administrative expenses |
2,044 |
|
|
3,007 |
|
|
(963 |
) |
|
(32 |
)% |
Depreciation and
amortization |
4,707 |
|
|
5,301 |
|
|
(594 |
) |
|
(11 |
)% |
|
2,835 |
|
|
16,683 |
|
|
(13,848 |
) |
|
(83 |
)% |
Other operating
income |
6 |
|
|
— |
|
|
6 |
|
|
|
Operating
income |
$ |
2,841 |
|
|
$ |
16,683 |
|
|
$ |
(13,842 |
) |
|
(83 |
)% |
|
|
|
|
|
|
|
|
NGL sales volumes
(Bbls) |
2,907 |
|
|
3,441 |
|
|
(534 |
) |
|
(16 |
)% |
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 March 31, 2019 and 2018
|
Three Months EndedMarch 31, |
|
Variance |
|
PercentChange |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
Revenues: |
|
|
|
|
|
|
|
Services |
$ |
2,859 |
|
|
$ |
2,787 |
|
|
$ |
72 |
|
|
3 |
% |
Products |
28,734 |
|
|
34,900 |
|
|
(6,166 |
) |
|
(18 |
)% |
Total
revenues |
31,593 |
|
|
37,687 |
|
|
(6,094 |
) |
|
(16 |
)% |
|
|
|
|
|
|
|
|
Cost of products
sold |
21,566 |
|
|
23,987 |
|
|
(2,421 |
) |
|
(10 |
)% |
Operating expenses |
2,163 |
|
|
2,912 |
|
|
(749 |
) |
|
(26 |
)% |
Selling, general and
administrative expenses |
1,178 |
|
|
1,035 |
|
|
143 |
|
|
14 |
% |
Depreciation and
amortization |
2,868 |
|
|
2,064 |
|
|
804 |
|
|
39 |
% |
|
3,818 |
|
|
7,689 |
|
|
(3,871 |
) |
|
(50 |
)% |
Other operating
loss |
— |
|
|
(2 |
) |
|
2 |
|
|
100 |
% |
Operating
income |
$ |
3,818 |
|
|
$ |
7,687 |
|
|
$ |
(3,869 |
) |
|
(50 |
)% |
|
|
|
|
|
|
|
|
Sulfur (long tons) |
109 |
|
|
176 |
|
|
(67 |
) |
|
(38 |
)% |
Fertilizer (long
tons) |
67 |
|
|
88 |
|
|
(21 |
) |
|
(24 |
)% |
Total sulfur services
volumes (long tons) |
176 |
|
|
264 |
|
|
(88 |
) |
|
(33 |
)% |
Transportation Segment
Comparative Results of Operations for
the Three Months Ended March 31, 2019 and 2018
|
Three Months EndedMarch 31, |
|
Variance |
|
PercentChange |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
Revenues |
$ |
45,186 |
|
|
$ |
41,937 |
|
|
$ |
3,249 |
|
|
8 |
% |
Operating expenses |
35,265 |
|
|
35,440 |
|
|
(175 |
) |
|
— |
% |
Selling, general and
administrative expenses |
2,085 |
|
|
1,416 |
|
|
669 |
|
|
47 |
% |
Depreciation and
amortization |
3,570 |
|
|
2,466 |
|
|
1,104 |
|
|
45 |
% |
|
$ |
4,266 |
|
|
$ |
2,615 |
|
|
$ |
1,651 |
|
|
63 |
% |
Other operating income
(loss) |
(736 |
) |
|
10 |
|
|
(746 |
) |
|
(7,460 |
)% |
Operating
income |
$ |
3,530 |
|
|
$ |
2,625 |
|
|
$ |
905 |
|
|
34 |
% |
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 months ended March 31, 2019 and 2018,
which represents EBITDA, Adjusted EBITDA and Distributable Cash
Flow.
Reconciliation of EBITDA, Adjusted
EBITDA, and Distributable Cash Flow
|
|
Three Months Ended |
|
|
March 31, |
|
|
2019 |
|
20181 |
|
|
|
|
|
|
|
(in thousands) |
Net income (loss) |
|
$ |
(3,656 |
) |
|
$ |
15,036 |
|
Less: Income from discontinued operations, net of income
taxes |
|
— |
|
|
(1,532 |
) |
Income
(loss) from continuing operations |
|
(3,656 |
) |
|
13,504 |
|
Adjustments: |
|
|
|
|
Interest expense, net |
|
13,671 |
|
|
12,730 |
|
Income tax expense |
|
696 |
|
|
149 |
|
Depreciation and amortization |
|
18,982 |
|
|
19,990 |
|
EBITDA |
|
29,693 |
|
|
46,373 |
|
Adjustments: |
|
|
|
|
(Gain) loss on sale of property, plant and equipment |
|
720 |
|
|
(8 |
) |
Unrealized mark-to-market on commodity derivatives |
|
(147 |
) |
|
(154 |
) |
Transaction costs associated with acquisitions |
|
184 |
|
|
— |
|
Unit-based compensation |
|
352 |
|
|
132 |
|
Adjusted EBITDA |
|
30,802 |
|
|
46,343 |
|
Adjustments: |
|
|
|
|
Interest expense, net |
|
(13,671 |
) |
|
(12,730 |
) |
Income tax expense |
|
(696 |
) |
|
(149 |
) |
Amortization of debt premium |
|
(77 |
) |
|
(77 |
) |
Amortization of deferred debt issuance costs |
|
895 |
|
|
819 |
|
Deferred income taxes |
|
369 |
|
|
— |
|
Payments for plant turnaround costs |
|
(3,827 |
) |
|
— |
|
Maintenance capital expenditures |
|
(4,195 |
) |
|
(6,002 |
) |
Distributable Cash Flow |
|
$ |
9,600 |
|
|
$ |
28,204 |
|
|
|
|
|
|
Income
from discontinued operations |
|
$ |
— |
|
|
$ |
1,532 |
|
Adjustments: |
|
|
|
|
Equity in earnings |
|
— |
|
|
(1,595 |
) |
Distributions from unconsolidated entities |
|
— |
|
|
1,500 |
|
Adjusted EBITDA and Distributable Cash Flow from
Discontinued Operations |
|
$ |
— |
|
|
$ |
1,437 |
|
1 Financial information for 2018 has been revised to
include results attributable to MTI acquired from Martin Resource
Management Corporation. See Note 1 – Nature of Operations and Basis
of Presentation.
Martin Midstream Partners (NASDAQ:MMLP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Martin Midstream Partners (NASDAQ:MMLP)
Historical Stock Chart
From Sep 2023 to Sep 2024