Martin Midstream Partners L.P. (Nasdaq: MMLP) (the "Partnership")
announced today its financial results for the quarter ended
September 30, 2018.
Ruben Martin, President and Chief Executive Officer of Martin
Midstream GP LLC, the general partner of the Partnership said, “I
am excited to announce the Partnership has reached an agreement
with Martin Resource Management Corporation (“MRMC”) to acquire
Martin Transport, Inc. (“MTI”) for $135.0 million plus a potential
additional $10.0 million earn-out based on a performance
threshold. The price reflects an EBITDA multiple between 5.7
times and 6.0 times based on MTI's forecasted 2019 net income of
$9.3 million and EBITDA of $23.6 million. This acquisition
will be funded from the Partnership’s revolving credit facility
allowing it to redeploy much of the $193.7 million in net proceeds
received when we sold our interest in the West Texas LPG Pipeline
Limited Partnership (“WTLPG”) on July 31, 2018. Despite
redeploying capital of only 70% of the net proceeds received for
the WTLPG interest, the acquisition is estimated to generate
roughly $16.0 million of additional incremental EBITDA in 2019 over
the average historical cash flows received from WTLPG.
“MTI transports petroleum products, liquid petroleum gas,
chemicals, sulfur and other products, as well as owns twenty-three
terminals located throughout the Gulf Coast and Midwest. MRMC
has owned and operated MTI or its predecessor for over 40 years and
is integral to MMLP’s routine movements of sulfur and NGL’s.
Based on operational estimates and current transportation market
conditions, this acquisition from our general partner will provide
strategic long-term growth for the Partnership.
“In the first twelve months of operation, the acquisition is
expected to contribute approximately $23.6 million and
$14.7 million of EBITDA and distributable cash flow,
respectively, to the Partnership. This will drive our estimated
distribution coverage ratio to approximately 1.20 times by year-end
2019, which forms the basis for management's continued support of
the current distribution level. Further, due to continued
rising line haul rates combined with MTI’s available truck
capacity, we estimate, net income, EBITDA and distributable
cash flow attributable to MTI to grow to approximately $17.0
million, $33.2 million and $20.9 million, respectively, for the
year of 2022. In addition, this drop down will provide
stability in our quarterly cash flows to offset the seasonal nature
of our fertilizer and butane businesses. We expect this
transaction to close in January of 2019.
“For the twelve months ended September 30, 2018 our proforma
distribution coverage ratio was 1.04 times when taking into effect
the WTLPG sale. Historically the third quarter is our weakest
due to seasonal timing in the fertilizer and natural gas liquids
businesses which is reflected in our guidance. Further, for
the third quarter of 2018 our distributable cash flow fell short of
guidance due to compressed margins from rising fertilizer raw
materials costs and the sale of WTLPG, slightly offset by lower
than forecasted maintenance capital expenditures coupled with
continued outperformance in our Marine Transportation segment due
to improved day rates and fleet utilization.
“As expected during the third quarter, our debt level rose due
to the seasonal butane inventory build in our Natural Gas Services
segment. Anticipating this annual occurrence, the Partnership
amended its revolving credit facility in February of 2018 to
include an inventory financing sublimit tranche related to eligible
inventory volumes that are under sales or swap contracts when
calculating consolidated funded debt. Accordingly, the
Partnership’s calculated leverage ratio of 4.29 times includes a
$74.0 million reduction of consolidated funded debt under this
provision. Further, the applicable interest rate under our
credit facility is reduced twenty-five basis points due to
obtaining a leverage ratio under 4.50 times.
“Looking ahead to the fourth quarter, our butane optimization
business will begin capturing cash flows from forward sales, the
marine transportation division looks to continue improved
performance relative to guidance, and the beginning of seasonal
demand for fertilizer products should all provide cash flow
strength. Added together with anticipated lower than
forecasted maintenance capital expenditures, our distribution
coverage ratio will rebound, as it historically does, in the fourth
quarter. However, due to market weakness that has affected
fertilizer margins throughout 2018, at this time we are lowering
our estimate to approximately 0.90 times at year end 2018.”
The Partnership had a net loss from continuing operations for
the third quarter 2018 of $9.7 million, a loss of $0.24 per limited
partner unit. The Partnership had a net loss from continuing
operations for the third quarter 2017 of $17.0 million, a loss of
$0.44 per limited partner unit. The Partnership's adjusted
EBITDA from continuing operations for the third quarter 2018 was
$25.4 million compared to adjusted EBITDA from continuing
operations for the third quarter 2017 of $25.5 million.
The Partnership had a net loss from continuing operations for
the nine months ended September 30, 2018 of $6.7 million, a loss of
$0.17 per limited partner unit. The Partnership had a net
loss from continuing operations for the nine months ended September
30, 2017 of $4.1 million, a loss of $0.10 per limited partner
unit. The Partnership's adjusted EBITDA from continuing
operations for the nine months ended September 30, 2018 was $96.8
million compared to adjusted EBITDA from continuing operations for
the nine months ended September 30, 2017 of $102.9 million.
The Partnership's distributable cash flow from continuing
operations for the third quarter 2018 was $6.9 million compared to
distributable cash flow from continuing operations for the third
quarter 2017 of $8.3 million.
The Partnership's distributable cash flow from continuing
operations for the nine months ended September 30, 2018 was $41.6
million compared to distributable cash flow from continuing
operations for the nine months ended September 30, 2017 of $55.8
million.
Revenues for the third quarter 2018 were $219.0 million compared
to the third quarter 2017 of $193.1 million. Revenues for the
nine months ended September 30, 2018 were $719.8 million compared
to the nine months ended September 30, 2017 of $640.4 million.
On July 31, 2018, the Partnership divested of its 20 percent
non-operating interest in West Texas LPG Pipeline L.P.
("WTLPG") for net proceeds of $193.7 million after fees and
expenses. 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 three and nine months ended
September 30, 2018 and 2017.
The Partnership had net income from discontinued operations for
the three months ended September 30, 2018 of $49.1 million, or
$1.24 per limited partner unit. The Partnership had net
income from discontinued operations for the three months ended
September 30, 2017 of $0.7 million, or $0.02 per limited partner
unit.
The Partnership had net income from discontinued operations for
the nine months ended September 30, 2018 of $51.7 million, or $1.30
per limited partner unit. The Partnership had net income from
discontinued operations for the nine months ended September 30,
2017 of $2.4 million, or $0.06 per limited partner unit.
Distributable cash flow and adjusted EBITDA from discontinued
operations were $0.4 million for the three months ended September
30, 2018. Distributable cash flow and adjusted EBITDA from
discontinued operations were $1.7 million for the three months
ended September 30, 2017.
Distributable cash flow and adjusted EBITDA from discontinued
operations were $3.3 million for the nine months ended September
30, 2018. Distributable cash flow and adjusted EBITDA from
discontinued operations were $4.1 million for the nine months ended
September 30, 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 and condensed financial statements as of and for the
three and nine months ended September 30, 2018 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 October 24, 2018.
An attachment accompanying this announcement is available
at http://resource.globenewswire.com/Resource/Download/11d265c1-1ed8-4b41-870c-121bc4484f21.
About Martin Transport, Inc.
MTI was incorporated in 1988 to transport petroleum products,
liquid petroleum gas, molten sulfur, sulfuric acid, paper mill
liquids, chemical, dry bulk and various other bulk liquid
commodities. As of the end of September 2018, MTI owned 561
trucks, 1,307 Trailers and 23 terminals across the Southeast and
Midwest. An attachment further describing the acquisition is
available
at http://resource.globenewswire.com/Resource/Download/d78d14b7-e9d2-4ee8-8316-3afe93d80e02.
As a member of the Responsible Care Partnership Program, MTI is
dedicated to the safe operations of its transportation fleet and
providing quality service to its customers.
Advisors
The following advisors served in their respective roles for the
transaction: Stephens Inc. provided a fairness opinion to the
Conflicts Committee of the Partnership's General Partner
("Conflicts Committee") and to the Board of Directors of MRMC.
Houlihan Lokey Capital, Inc. provided a fairness opinion to the
Board of Directors of the the Partnership's General Partner. Clark
Hill Strasburger acted as legal counsel to MRMC. Munsch Hardt
Kopf & Harr, P.C., acted as legal counsel to the Conflicts
Committee and Locke Lord LLP acted as legal counsel to the
Partnership
Investors' Conference Call
A conference call to review the third quarter results will be
held on Thursday, October 25, 2018 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 2995789. An archive of the replay will be on
Martin Midstream Partners’ website at
www.martinmidstream.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) 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 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 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.martinmidstream.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,
2018 |
|
December 31,
2017 |
|
|
(Unaudited) |
|
(Audited) |
| Assets |
|
|
|
|
Cash |
$ |
3,186 |
|
|
$ |
27 |
|
|
Accounts and other receivables, less allowance for doubtful
accounts of $347 and $314, respectively |
72,280 |
|
|
107,242 |
|
|
Product exchange receivables |
185 |
|
|
29 |
|
|
Inventories (Note 6) |
134,059 |
|
|
97,252 |
|
|
Due from affiliates |
22,933 |
|
|
23,668 |
|
|
Other current assets |
4,921 |
|
|
4,866 |
|
|
Assets held for sale (Note 4) |
6,152 |
|
|
9,579 |
|
| Total current assets |
243,716 |
|
|
242,663 |
|
|
|
|
|
|
|
Property, plant and equipment, at cost |
1,279,365 |
|
|
1,253,065 |
|
|
Accumulated depreciation |
(465,079 |
) |
|
(421,137 |
) |
| Property, plant and equipment, net |
814,286 |
|
|
831,928 |
|
|
|
|
|
|
|
Goodwill |
17,296 |
|
|
17,296 |
|
|
Investment in WTLPG (Note 7) |
— |
|
|
128,810 |
|
|
Other assets, net (Note 9) |
25,751 |
|
|
32,801 |
|
| Total assets |
$ |
1,101,049 |
|
|
$ |
1,253,498 |
|
|
|
|
|
|
| Liabilities and Partners’
Capital |
|
|
|
|
Trade and other accounts payable |
$ |
71,176 |
|
|
$ |
92,567 |
|
|
Product exchange payables |
9,647 |
|
|
11,751 |
|
|
Due to affiliates |
3,651 |
|
|
3,168 |
|
|
Income taxes payable |
448 |
|
|
510 |
|
|
Fair value of derivatives (Note 10) |
2,968 |
|
|
72 |
|
|
Other accrued liabilities (Note 9) |
18,876 |
|
|
26,340 |
|
| Total current liabilities |
106,766 |
|
|
134,408 |
|
|
|
|
|
|
|
Long-term debt, net (Note 8) |
698,680 |
|
|
812,632 |
|
|
Other long-term obligations |
10,718 |
|
|
8,217 |
|
| Total liabilities |
816,164 |
|
|
955,257 |
|
|
|
|
|
|
|
Commitments and contingencies (Note 15) |
|
|
|
|
Partners’ capital (Note 11) |
284,885 |
|
|
298,241 |
|
| Total partners’ capital |
284,885 |
|
|
298,241 |
|
| Total liabilities and partners' capital |
$ |
1,101,049 |
|
|
$ |
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 Quarterly Report on Form
10-Q to be filed with the Securities and Exchange Commission
on October 24, 2018.
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, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues: |
|
|
|
|
|
|
|
| Terminalling and storage * |
$ |
24,354 |
|
|
$ |
25,752 |
|
|
$ |
72,508 |
|
|
$ |
75,105 |
|
| Marine transportation * |
12,727 |
|
|
11,407 |
|
|
36,920 |
|
|
36,661 |
|
| Natural gas services* |
11,232 |
|
|
14,253 |
|
|
40,392 |
|
|
43,756 |
|
| Sulfur services |
2,787 |
|
|
2,850 |
|
|
8,361 |
|
|
8,550 |
|
| Product sales: * |
|
|
|
|
|
|
|
| Natural gas services |
101,919 |
|
|
83,831 |
|
|
351,725 |
|
|
284,154 |
|
| Sulfur services |
27,981 |
|
|
24,174 |
|
|
98,565 |
|
|
95,728 |
|
| Terminalling and storage |
38,047 |
|
|
30,861 |
|
|
111,351 |
|
|
96,421 |
|
|
|
167,947 |
|
|
138,866 |
|
|
561,641 |
|
|
476,303 |
|
| Total revenues |
219,047 |
|
|
193,128 |
|
|
719,822 |
|
|
640,375 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
| Cost of products sold: (excluding depreciation and
amortization) |
|
|
|
|
|
|
|
| Natural gas services * |
99,346 |
|
|
77,368 |
|
|
329,945 |
|
|
255,745 |
|
| Sulfur services * |
21,363 |
|
|
19,716 |
|
|
73,998 |
|
|
65,406 |
|
| Terminalling and storage * |
33,801 |
|
|
27,372 |
|
|
99,967 |
|
|
85,398 |
|
|
|
154,510 |
|
|
124,456 |
|
|
503,910 |
|
|
406,549 |
|
| Expenses: |
|
|
|
|
|
|
|
| Operating expenses * |
32,628 |
|
|
43,552 |
|
|
95,592 |
|
|
109,478 |
|
| Selling, general and administrative * |
9,257 |
|
|
9,085 |
|
|
27,339 |
|
|
27,816 |
|
| Depreciation and amortization |
18,741 |
|
|
20,286 |
|
|
58,842 |
|
|
65,948 |
|
| Total costs and expenses |
215,136 |
|
|
197,379 |
|
|
685,683 |
|
|
609,791 |
|
|
|
|
|
|
|
|
|
|
|
Other operating loss |
(384 |
) |
|
(187 |
) |
|
(876 |
) |
|
(327 |
) |
| Operating income (loss) |
3,527 |
|
|
(4,438 |
) |
|
33,263 |
|
|
30,257 |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
| Interest expense, net |
(13,140 |
) |
|
(12,538 |
) |
|
(39,591 |
) |
|
(34,677 |
) |
| Other, net |
18 |
|
|
55 |
|
|
18 |
|
|
605 |
|
| Total other expense |
(13,122 |
) |
|
(12,483 |
) |
|
(39,573 |
) |
|
(34,072 |
) |
| |
|
|
|
|
|
|
|
|
Net loss before taxes |
(9,595 |
) |
|
(16,921 |
) |
|
(6,310 |
) |
|
(3,815 |
) |
|
Income tax expense |
(91 |
) |
|
(108 |
) |
|
(372 |
) |
|
(301 |
) |
|
Loss from continuing operations |
(9,686 |
) |
|
(17,029 |
) |
|
(6,682 |
) |
|
(4,116 |
) |
|
Income from discontinued operations, net of income taxes |
49,132 |
|
|
743 |
|
|
51,700 |
|
|
2,402 |
|
|
Net income (loss) |
39,446 |
|
|
(16,286 |
) |
|
45,018 |
|
|
(1,714 |
) |
|
Less general partner's interest in net (income) loss |
(789 |
) |
|
325 |
|
|
(900 |
) |
|
34 |
|
|
Less (income) loss allocable to unvested restricted units |
(27 |
) |
|
38 |
|
|
(29 |
) |
|
— |
|
|
Limited partners' interest in net income (loss) |
$ |
38,630 |
|
|
$ |
(15,923 |
) |
|
$ |
44,089 |
|
|
$ |
(1,680 |
) |
|
|
|
|
|
|
|
|
|
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 October 24, 2018.
*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, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues:* |
|
|
|
|
|
|
|
| Terminalling and storage |
$ |
19,619 |
|
|
$ |
21,910 |
|
|
$ |
60,151 |
|
|
$ |
61,945 |
|
| Marine transportation |
4,009 |
|
|
4,098 |
|
|
11,727 |
|
|
12,610 |
|
| Natural gas services |
— |
|
|
4 |
|
|
— |
|
|
122 |
|
| Product Sales |
180 |
|
|
828 |
|
|
1,248 |
|
|
2,982 |
|
|
Costs and expenses:* |
|
|
|
|
|
|
|
| Cost of products sold: (excluding depreciation and
amortization) |
|
|
|
|
|
|
|
| Natural gas services |
2,856 |
|
|
3,033 |
|
|
10,273 |
|
|
14,836 |
|
| Sulfur services |
4,337 |
|
|
3,555 |
|
|
13,208 |
|
|
10,997 |
|
| Terminalling and storage |
7,392 |
|
|
4,817 |
|
|
21,959 |
|
|
14,003 |
|
| Expenses: |
|
|
|
|
|
|
|
| Operating expenses |
14,051 |
|
|
15,858 |
|
|
41,774 |
|
|
48,686 |
|
| Selling, general and administrative |
6,834 |
|
|
6,495 |
|
|
21,053 |
|
|
20,563 |
|
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 October 24, 2018.
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, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Allocation of net income (loss) attributable to: |
|
|
|
|
|
|
|
| Limited partner interest: |
|
|
|
|
|
|
|
| Continuing operations |
$ |
(9,486 |
) |
|
$ |
(16,649 |
) |
|
$ |
(6,544 |
) |
|
$ |
(4,034 |
) |
| Discontinued operations |
48,116 |
|
|
726 |
|
|
50,633 |
|
|
2,354 |
|
| |
$ |
38,630 |
|
|
$ |
(15,923 |
) |
|
$ |
44,089 |
|
|
$ |
(1,680 |
) |
| General partner interest: |
|
|
|
|
|
|
|
| Continuing operations |
$ |
(193 |
) |
|
$ |
(340 |
) |
|
$ |
(134 |
) |
|
$ |
(82 |
) |
| Discontinued operations |
982 |
|
|
15 |
|
|
1,034 |
|
|
48 |
|
|
|
$ |
789 |
|
|
$ |
(325 |
) |
|
$ |
900 |
|
|
$ |
(34 |
) |
| |
|
|
|
|
|
|
|
|
Net income (loss) per unit attributable to limited partners: |
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
| Continuing operations |
$ |
(0.24 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.10 |
) |
| Discontinued operations |
1.24 |
|
|
0.02 |
|
|
1.30 |
|
|
0.06 |
|
|
|
$ |
1.00 |
|
|
$ |
(0.42 |
) |
|
$ |
1.13 |
|
|
$ |
(0.04 |
) |
| Weighted average limited partner units - basic |
38,712 |
|
|
38,357 |
|
|
38,877 |
|
|
38,016 |
|
| Diluted: |
|
|
|
|
|
|
|
| Continuing operations |
$ |
(0.24 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.10 |
) |
| Discontinued operations |
1.24 |
|
|
0.02 |
|
|
1.30 |
|
|
0.06 |
|
|
|
$ |
1.00 |
|
|
$ |
(0.42 |
) |
|
$ |
1.13 |
|
|
$ |
(0.04 |
) |
| Weighted average limited partner units -
diluted |
38,738 |
|
|
38,357 |
|
|
38,889 |
|
|
38,016 |
|
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 October 24, 2018.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF
CAPITAL(Dollars in thousands)
|
|
Partners’
Capital |
|
|
|
|
Common
Limited |
|
General Partner
Amount |
|
|
|
|
Units |
|
Amount |
|
|
Total |
|
Balances - January 1, 2017 |
35,452,062 |
|
|
$ |
304,594 |
|
|
$ |
7,412 |
|
|
$ |
312,006 |
|
| Net income |
— |
|
|
(1,680 |
) |
|
(34 |
) |
|
(1,714 |
) |
| Issuance of common units, net |
2,990,000 |
|
|
51,061 |
|
|
— |
|
|
51,061 |
|
| Issuance of restricted units |
12,000 |
|
|
— |
|
|
— |
|
|
— |
|
| Forfeiture of restricted units |
(5,750 |
) |
|
— |
|
|
— |
|
|
— |
|
| General partner contribution |
— |
|
|
— |
|
|
1,098 |
|
|
1,098 |
|
| Cash distributions |
— |
|
|
(56,177 |
) |
|
(1,146 |
) |
|
(57,323 |
) |
| Unit-based compensation |
— |
|
|
518 |
|
|
— |
|
|
518 |
|
| Purchase of treasury units |
(200 |
) |
|
(4 |
) |
|
— |
|
|
(4 |
) |
| Excess purchase price over carrying value of
acquired assets |
— |
|
|
(7,887 |
) |
|
— |
|
|
(7,887 |
) |
| Reimbursement of excess purchase price over carrying
value of acquired assets |
— |
|
|
1,125 |
|
|
— |
|
|
1,125 |
|
|
Balances - September 30, 2017 |
38,448,112 |
|
|
$ |
291,550 |
|
|
$ |
7,330 |
|
|
$ |
298,880 |
|
|
|
|
|
|
|
|
|
|
|
Balances - January 1, 2018 |
38,444,612 |
|
|
$ |
290,927 |
|
|
$ |
7,314 |
|
|
$ |
298,241 |
|
| Net income |
— |
|
|
44,118 |
|
|
900 |
|
|
45,018 |
|
| Issuance of common units, net of issuance related
costs |
— |
|
|
(118 |
) |
|
— |
|
|
(118 |
) |
| Issuance of restricted units |
633,425 |
|
|
— |
|
|
— |
|
|
— |
|
| Forfeiture of restricted units |
(23,000 |
) |
|
— |
|
|
— |
|
|
— |
|
| Cash distributions |
— |
|
|
(57,653 |
) |
|
(1,176 |
) |
|
(58,829 |
) |
| Unit-based compensation |
— |
|
|
872 |
|
|
— |
|
|
872 |
|
| Excess purchase price over carrying value of
acquired assets |
— |
|
|
(26 |
) |
|
— |
|
|
(26 |
) |
| Purchase of treasury units |
(18,800 |
) |
|
(273 |
) |
|
— |
|
|
(273 |
) |
|
Balances - September 30, 2018 |
39,036,237 |
|
|
$ |
277,847 |
|
|
$ |
7,038 |
|
|
$ |
284,885 |
|
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 October 24, 2018.
MARTIN MIDSTREAM PARTNERS
L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CASH
FLOWS(Dollars in thousands)
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
2018 |
|
2017 |
|
Cash flows from operating activities: |
|
|
|
| Net income (loss) |
$ |
45,018 |
|
|
$ |
(1,714 |
) |
| Less: Income from discontinued operations, net
of income taxes |
(51,700 |
) |
|
(2,402 |
) |
| Net loss from continuing operations |
(6,682 |
) |
|
(4,116 |
) |
| Adjustments to reconcile net loss to net cash
provided by operating activities: |
|
|
|
| Depreciation and amortization |
58,842 |
|
|
65,948 |
|
| Amortization of deferred debt issuance costs |
2,563 |
|
|
2,170 |
|
| Amortization of premium on notes payable |
(230 |
) |
|
(230 |
) |
| Loss on sale of property, plant and equipment |
876 |
|
|
327 |
|
| Derivative loss |
198 |
|
|
2,392 |
|
| Net cash received (paid) for commodity
derivatives |
2,698 |
|
|
(6,429 |
) |
| Unit-based compensation |
872 |
|
|
518 |
|
| Change in current assets and liabilities, excluding
effects of acquisitions and dispositions: |
|
|
|
| Accounts and other receivables |
35,191 |
|
|
16,381 |
|
| Product exchange receivables |
(156 |
) |
|
173 |
|
| Inventories |
(37,147 |
) |
|
(48,022 |
) |
| Due from affiliates |
735 |
|
|
(1,917 |
) |
| Other current assets |
556 |
|
|
(411 |
) |
| Trade and other accounts payable |
(18,230 |
) |
|
2,222 |
|
| Product exchange payables |
(2,104 |
) |
|
1,910 |
|
| Due to affiliates |
483 |
|
|
(5,169 |
) |
| Income taxes payable |
(62 |
) |
|
(420 |
) |
| Other accrued liabilities |
(9,726 |
) |
|
(3,766 |
) |
| Change in other non-current assets and
liabilities |
610 |
|
|
1,941 |
|
| Net cash provided by continuing operating
activities |
29,287 |
|
|
23,502 |
|
| Net cash provided by discontinued operating
activities |
3,254 |
|
|
4,055 |
|
| Net cash provided by operating activities |
32,541 |
|
|
27,557 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
| Payments for property, plant and equipment |
(31,497 |
) |
|
(30,014 |
) |
| Acquisitions |
— |
|
|
(19,533 |
) |
| Payments for plant turnaround costs |
(879 |
) |
|
(1,583 |
) |
| Proceeds from sale of property, plant and
equipment |
1,269 |
|
|
1,604 |
|
| Proceeds from repayment of Note receivable -
affiliate |
— |
|
|
15,000 |
|
| Other |
— |
|
|
(900 |
) |
| Net cash used in continuing investing
activities |
(31,107 |
) |
|
(35,426 |
) |
| Net cash provided by (used in) discontinuing
investing activities |
177,256 |
|
|
(145 |
) |
| Net cash provided by (used in) investing
activities |
146,149 |
|
|
(35,571 |
) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
| Payments of long-term debt |
(460,000 |
) |
|
(242,000 |
) |
| Proceeds from long-term debt |
345,000 |
|
|
262,000 |
|
| Proceeds from issuance of common units, net of
issuance related costs |
(118 |
) |
|
51,061 |
|
| General partner contribution |
— |
|
|
1,098 |
|
| Purchase of treasury units |
(273 |
) |
|
(4 |
) |
| Payment of debt issuance costs |
(1,285 |
) |
|
(56 |
) |
| 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 |
|
| Cash distributions paid |
(58,829 |
) |
|
(57,323 |
) |
| Net cash (used in) provided by financing
activities |
(175,531 |
) |
|
8,014 |
|
| |
|
|
|
| Net increase in cash |
3,159 |
|
|
— |
|
|
Cash at beginning of period |
27 |
|
|
15 |
|
|
Cash at end of period |
$ |
3,186 |
|
|
$ |
15 |
|
|
Non-cash additions to property, plant and equipment |
$ |
938 |
|
|
$ |
1,367 |
|
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 October 24, 2018.
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, 2018 and
2017 |
| |
|
|
Three Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except BBL
per day) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
25,955 |
|
|
$ |
26,944 |
|
|
$ |
(989 |
) |
|
(4 |
)% |
| Products |
38,047 |
|
|
30,861 |
|
|
7,186 |
|
|
23 |
% |
| Total revenues |
64,002 |
|
|
57,805 |
|
|
6,197 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
34,400 |
|
|
27,971 |
|
|
6,429 |
|
|
23 |
% |
|
Operating expenses |
13,890 |
|
|
24,242 |
|
|
(10,352 |
) |
|
(43 |
)% |
|
Selling, general and administrative expenses |
1,304 |
|
|
1,668 |
|
|
(364 |
) |
|
(22 |
)% |
|
Depreciation and amortization |
9,311 |
|
|
10,192 |
|
|
(881 |
) |
|
(9 |
)% |
|
|
5,097 |
|
|
(6,268 |
) |
|
11,365 |
|
|
181 |
% |
|
Other operating loss |
(361 |
) |
|
(187 |
) |
|
(174 |
) |
|
(93 |
)% |
| Operating income (loss) |
$ |
4,736 |
|
|
$ |
(6,455 |
) |
|
$ |
11,191 |
|
|
173 |
% |
| |
|
|
|
|
|
|
|
| Lubricant sales volumes (gallons) |
6,326 |
|
|
5,217 |
|
|
1,109 |
|
|
21 |
% |
| Shore-based throughput volumes (guaranteed minimum)
(gallons) |
20,000 |
|
|
41,666 |
|
|
(21,666 |
) |
|
(52 |
)% |
| Smackover refinery throughput volumes (guaranteed
minimum BBL per day) |
6,500 |
|
|
6,500 |
|
|
— |
|
|
— |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Comparative Results of Operations
for the Nine Months Ended September 30, 2018 and 2017 |
| |
|
|
Nine Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except BBL
per day) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
76,949 |
|
|
$ |
79,523 |
|
|
$ |
(2,574 |
) |
|
(3 |
)% |
| Products |
111,350 |
|
|
96,421 |
|
|
14,929 |
|
|
15 |
% |
| Total revenues |
188,299 |
|
|
175,944 |
|
|
12,355 |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
101,498 |
|
|
87,139 |
|
|
14,359 |
|
|
16 |
% |
|
Operating expenses |
40,246 |
|
|
51,402 |
|
|
(11,156 |
) |
|
(22 |
)% |
|
Selling, general and administrative expenses |
3,894 |
|
|
4,437 |
|
|
(543 |
) |
|
(12 |
)% |
|
Depreciation and amortization |
31,160 |
|
|
35,996 |
|
|
(4,836 |
) |
|
(13 |
)% |
|
|
11,501 |
|
|
(3,030 |
) |
|
14,531 |
|
|
480 |
% |
|
Other operating loss |
(397 |
) |
|
(190 |
) |
|
(207 |
) |
|
(109 |
)% |
| Operating income (loss) |
$ |
11,104 |
|
|
$ |
(3,220 |
) |
|
$ |
14,324 |
|
|
445 |
% |
| |
|
|
|
|
|
|
|
| Lubricant sales volumes (gallons) |
18,644 |
|
|
15,912 |
|
|
2,732 |
|
|
17 |
% |
| Shore-based throughput volumes (guaranteed minimum)
(gallons) |
60,000 |
|
|
124,998 |
|
|
(64,998 |
) |
|
(52 |
)% |
| 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)
Natural Gas Services Segment
| Comparative
Results of Operations for the Three Months Ended September 30,
2018 and 2017 |
| |
|
|
Three Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
11,232 |
|
|
$ |
14,253 |
|
|
$ |
(3,021 |
) |
|
(21 |
)% |
| Products |
101,919 |
|
|
84,057 |
|
|
17,862 |
|
|
21 |
% |
| Total revenues |
113,151 |
|
|
98,310 |
|
|
14,841 |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
100,298 |
|
|
78,138 |
|
|
22,160 |
|
|
28 |
% |
|
Operating expenses |
6,162 |
|
|
5,528 |
|
|
634 |
|
|
11 |
% |
|
Selling, general and administrative expenses |
2,038 |
|
|
1,843 |
|
|
195 |
|
|
11 |
% |
|
Depreciation and amortization |
5,316 |
|
|
6,274 |
|
|
(958 |
) |
|
(15 |
)% |
|
|
(663 |
) |
|
6,527 |
|
|
(7,190 |
) |
|
(110 |
)% |
|
Other operating income |
— |
|
|
2 |
|
|
(2 |
) |
|
(100 |
)% |
| Operating income (loss) |
$ |
(663 |
) |
|
$ |
6,529 |
|
|
$ |
(7,192 |
) |
|
(110 |
)% |
|
|
|
|
|
|
|
|
|
|
NGL sales volumes (Bbls) |
1,774 |
|
|
1,943 |
|
|
(169 |
) |
|
(9 |
)% |
| |
Comparative Results of Operations for the
Nine Months Ended September 30, 2018 and 2017
|
|
Nine Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
40,392 |
|
|
$ |
43,756 |
|
|
$ |
(3,364 |
) |
|
(8 |
)% |
| Products |
351,725 |
|
|
284,380 |
|
|
67,345 |
|
|
24 |
% |
| Total revenues |
392,117 |
|
|
328,136 |
|
|
63,981 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
332,440 |
|
|
258,444 |
|
|
73,996 |
|
|
29 |
% |
|
Operating expenses |
17,837 |
|
|
16,753 |
|
|
1,084 |
|
|
6 |
% |
|
Selling, general and administrative expenses |
6,709 |
|
|
6,910 |
|
|
(201 |
) |
|
(3 |
)% |
|
Depreciation and amortization |
15,921 |
|
|
18,640 |
|
|
(2,719 |
) |
|
(15 |
)% |
|
|
19,210 |
|
|
27,389 |
|
|
(8,179 |
) |
|
(30 |
)% |
|
Other operating income (loss) |
(120 |
) |
|
7 |
|
|
(127 |
) |
|
(1,814 |
)% |
| Operating income |
$ |
19,090 |
|
|
$ |
27,396 |
|
|
$ |
(8,306 |
) |
|
(30 |
)% |
|
|
|
|
|
|
|
|
|
|
NGL sales volumes (Bbls) |
6,958 |
|
|
6,547 |
|
|
411 |
|
|
6 |
% |
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, 2018 and
2017 |
| |
|
|
Three Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
2,787 |
|
|
$ |
2,850 |
|
|
$ |
(63 |
) |
|
(2 |
)% |
| Products |
27,981 |
|
|
24,174 |
|
|
3,807 |
|
|
16 |
% |
| Total revenues |
30,768 |
|
|
27,024 |
|
|
3,744 |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
21,454 |
|
|
19,807 |
|
|
1,647 |
|
|
8 |
% |
|
Operating expenses |
2,960 |
|
|
3,557 |
|
|
(597 |
) |
|
(17 |
)% |
|
Selling, general and administrative expenses |
1,149 |
|
|
1,071 |
|
|
78 |
|
|
7 |
% |
|
Depreciation and amortization |
2,113 |
|
|
2,020 |
|
|
93 |
|
|
5 |
% |
|
|
3,092 |
|
|
569 |
|
|
2,523 |
|
|
443 |
% |
|
Other operating loss |
— |
|
|
(2 |
) |
|
2 |
|
|
100 |
% |
| Operating income |
$ |
3,092 |
|
|
$ |
567 |
|
|
$ |
2,525 |
|
|
445 |
% |
|
|
|
|
|
|
|
|
|
|
Sulfur (long tons) |
166 |
|
|
198 |
|
|
(32 |
) |
|
(16 |
)% |
|
Fertilizer (long tons) |
50 |
|
|
52 |
|
|
(2 |
) |
|
(4 |
)% |
|
Total sulfur services volumes (long tons) |
216 |
|
|
250 |
|
|
(34 |
) |
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative Results of Operations for the Nine Months Ended
September 30, 2018 and 2017
|
|
Nine Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues: |
|
|
|
|
|
|
|
| Services |
$ |
8,361 |
|
|
$ |
8,550 |
|
|
$ |
(189 |
) |
|
(2 |
)% |
| Products |
98,565 |
|
|
95,728 |
|
|
2,837 |
|
|
3 |
% |
| Total revenues |
106,926 |
|
|
104,278 |
|
|
2,648 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
74,270 |
|
|
65,678 |
|
|
8,592 |
|
|
13 |
% |
|
Operating expenses |
8,801 |
|
|
10,221 |
|
|
(1,420 |
) |
|
(14 |
)% |
|
Selling, general and administrative expenses |
3,230 |
|
|
3,099 |
|
|
131 |
|
|
4 |
% |
|
Depreciation and amortization |
6,263 |
|
|
6,083 |
|
|
180 |
|
|
3 |
% |
|
|
14,362 |
|
|
19,197 |
|
|
(4,835 |
) |
|
(25 |
)% |
|
Other operating income (loss) |
14 |
|
|
(24 |
) |
|
38 |
|
|
158 |
% |
| Operating income |
$ |
14,376 |
|
|
$ |
19,173 |
|
|
$ |
(4,797 |
) |
|
(25 |
)% |
|
|
|
|
|
|
|
|
|
|
Sulfur (long tons) |
520 |
|
|
607 |
|
|
(87 |
) |
|
(14 |
)% |
|
Fertilizer (long tons) |
231 |
|
|
217 |
|
|
14 |
|
|
6 |
% |
|
Total sulfur services volumes (long tons) |
751 |
|
|
824 |
|
|
(73 |
) |
|
(9 |
)% |
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 Three Months Ended September 30, 2018 and
2017 |
| |
|
|
Three Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues |
$ |
13,570 |
|
|
$ |
12,400 |
|
|
$ |
1,170 |
|
|
9 |
% |
|
Operating expenses |
10,418 |
|
|
11,176 |
|
|
(758 |
) |
|
(7 |
)% |
|
Selling, general and administrative expenses |
378 |
|
|
112 |
|
|
266 |
|
|
238 |
% |
|
Depreciation and amortization |
2,001 |
|
|
1,800 |
|
|
201 |
|
|
11 |
% |
|
|
773 |
|
|
(688 |
) |
|
1,461 |
|
|
212 |
% |
|
Other operating loss |
(23 |
) |
|
— |
|
|
(23 |
) |
|
|
| Operating income (loss) |
$ |
750 |
|
|
$ |
(688 |
) |
|
$ |
1,438 |
|
|
209 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative Results of Operations for the Nine Months Ended
September 30, 2018 and 2017
|
|
Nine Months Ended September
30, |
|
Variance |
|
Percent
Change |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
Revenues |
$ |
38,766 |
|
|
$ |
38,958 |
|
|
$ |
(192 |
) |
|
— |
% |
|
Operating expenses |
30,696 |
|
|
33,331 |
|
|
(2,635 |
) |
|
(8 |
)% |
|
Selling, general and administrative expenses |
541 |
|
|
287 |
|
|
254 |
|
|
89 |
% |
|
Depreciation and amortization |
5,498 |
|
|
5,229 |
|
|
269 |
|
|
5 |
% |
|
|
$ |
2,031 |
|
|
$ |
111 |
|
|
$ |
1,920 |
|
|
1,730 |
% |
|
Other operating loss |
(373 |
) |
|
(120 |
) |
|
(253 |
) |
|
(211 |
)% |
| Operating income (loss) |
$ |
1,658 |
|
|
$ |
(9 |
) |
|
$ |
1,667 |
|
|
18,522 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2018 and 2017, which represents EBITDA, Adjusted EBITDA and
Distributable Cash Flow.
Reconciliation of EBITDA, Adjusted
EBITDA, and Distributable Cash Flow
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(in thousands) |
| Net income (loss) |
$ |
39,446 |
|
|
$ |
(16,286 |
) |
|
$ |
45,018 |
|
|
$ |
(1,714 |
) |
| Less: Income from discontinued operations, net
of income taxes |
(49,132 |
) |
|
(743 |
) |
|
(51,700 |
) |
|
(2,402 |
) |
| Loss from continuing operations |
(9,686 |
) |
|
(17,029 |
) |
|
(6,682 |
) |
|
(4,116 |
) |
| Adjustments: |
|
|
|
|
|
|
|
| Interest expense, net |
13,140 |
|
|
12,538 |
|
|
39,591 |
|
|
34,677 |
|
| Income tax expense |
91 |
|
|
108 |
|
|
372 |
|
|
301 |
|
| Depreciation and amortization |
18,741 |
|
|
20,286 |
|
|
58,842 |
|
|
65,948 |
|
| EBITDA |
22,286 |
|
|
15,903 |
|
|
92,123 |
|
|
96,810 |
|
| Adjustments: |
|
|
|
|
|
|
|
| (Gain) loss on sale of property, plant and
equipment |
384 |
|
|
187 |
|
|
876 |
|
|
327 |
|
| Unrealized mark-to-market on commodity
derivatives |
2,396 |
|
|
— |
|
|
2,896 |
|
|
(4,037 |
) |
| Hurricane damage repair accrual |
— |
|
|
3,725 |
|
|
— |
|
|
3,725 |
|
| Asset retirement obligation revision |
— |
|
|
5,547 |
|
|
— |
|
|
5,547 |
|
| Unit-based compensation |
352 |
|
|
113 |
|
|
872 |
|
|
518 |
|
| Adjusted EBITDA |
25,418 |
|
|
25,475 |
|
|
96,767 |
|
|
102,890 |
|
| Adjustments: |
|
|
|
|
|
|
|
| Interest expense, net |
(13,140 |
) |
|
(12,538 |
) |
|
(39,591 |
) |
|
(34,677 |
) |
| Income tax expense |
(91 |
) |
|
(108 |
) |
|
(372 |
) |
|
(301 |
) |
| Amortization of debt premium |
(77 |
) |
|
(77 |
) |
|
(230 |
) |
|
(230 |
) |
| Amortization of deferred debt issuance costs |
874 |
|
|
725 |
|
|
2,563 |
|
|
2,170 |
|
| Payments for plant turnaround costs |
(879 |
) |
|
8 |
|
|
(879 |
) |
|
(1,583 |
) |
| Maintenance capital expenditures |
(5,247 |
) |
|
(5,208 |
) |
|
(16,619 |
) |
|
(12,494 |
) |
| Distributable Cash Flow |
$ |
6,858 |
|
|
$ |
8,277 |
|
|
$ |
41,639 |
|
|
$ |
55,775 |
|
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