July 25, 2018 - 4:01 PM EDT
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Martin Midstream Partners Reports 2018 Second Quarter Financial Results
  • Agreement to Divest West Texas LPG Pipeline Interest
  • Improved Pro-Forma Total Leverage to 4.36 times
  • Quarterly Distribution Coverage Ratio In-Line with Guidance

KILGORE, Texas, July 25, 2018 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the quarter ended June 30, 2018.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "I am pleased to announce that the Partnership has entered into an agreement with ONEOK, Inc. to sell our 20 percent non-operating partnership interests in the West Texas LPG Pipeline Limited Partnership for $195.0 million.  We expect the transaction to close on July 31, 2018 and will use net proceeds of approximately $193.7 million to reduce outstanding borrowings under the Partnership’s revolving credit facility.  Accordingly, our pro-forma leverage is 4.36 times compared to actual leverage of 5.46 times at June 30, 2018.  In addition, the Partnership’s forecasted growth capital expenditures will be reduced by approximately $24.2 million for the remainder of 2018.

"Addressing our second quarter 2018 performance, the Partnership generated a distribution coverage ratio of 0.56 times.  While cash flow trailed guidance by approximately $5.7 million, our coverage ratio was substantially in line with our internal forecast based on lower maintenance capital expenditures.  Our second quarter results include a one-time negative inventory adjustment of $3.9 million in the fertilizer division of our Sulfur Services segment.  The adjustment is a result of utilizing newly implemented three-dimensional stockpile measurement technology to determine dry bulk inventory.  Partially offsetting the inventory adjustment was better than forecasted Marine Transportation performance driven by improving day rates and fleet utilization.

"Based on lower project costs and timing differences we are reducing our full year maintenance capital expenditure guidance by $5.0 million to $24.3 million.  After giving effect to the transaction, our six month pro-forma distribution coverage ratio is 1.01 times and our full year forecasted ratio remains at 1.00 times.

"Management continues to be focused on improving the leverage profile of the Partnership.  By executing the pipeline divestiture we achieve our goal of less than 4.50 times."

The Partnership had net loss for the second quarter 2018 of $7.2 million, a loss of $0.18 per limited partner unit.  The Partnership had net income for the second quarter 2017 of $1.0 million, or $0.03 per limited partner unit.  The Partnership's adjusted EBITDA for the second quarter 2018 was $29.4 million compared to adjusted EBITDA from for the second quarter 2017 of $33.0 million.

The Partnership had net income for the six months ended June 30, 2018 of $5.6 million, or $0.14 per limited partner unit.  The Partnership had net income for the six months ended June 30, 2017 of $14.6 million, or $0.38 per limited partner unit.  The Partnership's adjusted EBITDA for the six months ended June 30, 2018 was $74.2 million compared to adjusted EBITDA for the six months ended June 30, 2017 of $79.8 million.

The Partnership's distributable cash flow for the second quarter 2018 was $11.0 million compared to distributable cash flow for the second quarter 2017 of $19.6 million.

The Partnership's distributable cash flow for the six months ended June 30, 2018 was $37.6 million compared to distributable cash flow for the six months ended June 30, 2017 of $49.9 million.

Revenues for the second quarter 2018 were $216.6 million compared to the second quarter 2017 of $193.9 million.  Revenues for the six months ended June 30, 2018 were $500.8 million compared to the six months ended June 30, 2017 of $447.2 million.

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 six months ended June 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 July 25, 2018.

An attachment accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/e506ace1-430e-429b-b0e5-669028cd4607.

Investors' Conference Call

A conference call to review the second quarter results will be held on Thursday, July 26, 2018 at 8:00 a.m. Central Time. The live conference call can be accessed 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 3192908. The replay will also be archived 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)

 June 30, 2018 December 31, 2017
 (Unaudited) (Audited)
Assets   
Cash$             610  $27 
Accounts and other receivables, less allowance for doubtful accounts of $405 and $314, respectively60,884  107,242 
Product exchange receivables174  29 
Inventories (Note 6)113,100  97,252 
Due from affiliates21,031  23,668 
Other current assets5,368  4,866 
Assets held for sale (Note 4)8,158  9,579 
Total current assets209,325  242,663 
    
Property, plant and equipment, at cost1,273,392  1,253,065 
Accumulated depreciation(450,564) (421,137)
Property, plant and equipment, net822,828  831,928 
    
Goodwill17,296  17,296 
Investment in WTLPG (Note 7)141,114  128,810 
Other assets, net (Note 9)28,202  32,801 
Total assets$1,218,765  $1,253,498 
    
Liabilities and Partners’ Capital   
Trade and other accounts payable$72,945  $92,567 
Product exchange payables13,015  11,751 
Due to affiliates1,271  3,168 
Income taxes payable400  510 
Fair value of derivatives (Note 10)572  72 
Other accrued liabilities (Note 9)23,093  26,340 
Total current liabilities111,296  134,408 
    
Long-term debt, net (Note 8)831,928  812,632 
Other long-term obligations10,842  8,217 
Total liabilities954,066  955,257 
    
Commitments and contingencies (Note 15)   
Partners’ capital (Note 11)264,699  298,241 
Total partners’ capital264,699  298,241 
Total liabilities and partners' capital$1,218,765  $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 July 25, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

 Three Months Ended Six Months Ended
 June 30, June 30,
 2018 2017 2018 2017
Revenues:       
Terminalling and storage *$24,090  $24,695  $48,154  $49,353 
Marine transportation *12,739  12,433  24,193  25,254 
Natural gas services*13,804  14,838  29,160  29,503 
Sulfur services2,787  2,850  5,574  5,700 
Product sales: *       
Natural gas services90,643  73,666  249,806  200,323 
Sulfur services35,684  32,027  70,584  71,554 
Terminalling and storage36,824  33,413  73,304  65,560 
 163,151  139,106  393,694  337,437 
Total revenues216,571  193,922  500,775  447,247 
        
Costs and expenses:       
Cost of products sold: (excluding depreciation and amortization)       
Natural gas services *87,642  70,198  230,599  178,377 
Sulfur services *28,739  21,207  52,635  45,690 
Terminalling and storage *33,206  29,897  66,166  58,026 
 149,587  121,302  349,400  282,093 
Expenses:       
Operating expenses *31,510  32,552  62,964  65,926 
Selling, general and administrative *8,572  8,909  18,240  18,830 
Depreciation and amortization20,891  20,326  40,101  45,662 
Total costs and expenses210,560  183,089  470,705  412,511 
        
Other operating income (loss)(490) 15  (492) (140)
Operating income5,521  10,848  29,578  34,596 
        
Other income (expense):       
Equity in earnings of WTLPG1,131  853  2,726  1,758 
Interest expense, net(13,766) (11,219) (26,451) (22,139)
Other, net  520    550 
Total other expense(12,635) (9,846) (23,725) (19,831)
        
Net income (loss) before taxes(7,114) 1,002  5,853  14,765 
Income tax expense(132) (13) (281) (193)
Net income (loss)(7,246) 989  5,572  14,572 
Less general partner's interest in net (income) loss145  (19) (111) (291)
Less (income) loss allocable to unvested restricted units6  (3) (2) (38)
Limited partners' interest in net income (loss)$(7,095) $967  $5,459  $14,243 
        
Net income (loss) per unit attributable to limited partners - basic$(0.18) $0.03  $0.14  $0.38 
Net income (loss) per unit attributable to limited partners - diluted$(0.18) $0.03  $0.14  $0.38 
Weighted average limited partner units - basic38,722  38,357  38,829  37,842 
Weighted average limited partner units - diluted38,722  38,414  38,834  37,895 

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 July 25, 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 Six Months Ended
 June 30, June 30,
 2018 2017 2018 2017
Revenues:*       
Terminalling and storage$20,507  $20,331  $40,532  $40,035 
Marine transportation4,105  4,187  7,718  8,512 
Natural gas services  6    118 
Product Sales426  724  1,068  2,154 
Costs and expenses:*       
Cost of products sold: (excluding depreciation and amortization)       
Natural gas services3,099  2,909  7,417  11,803 
Sulfur services4,345  3,767  8,871  7,442 
Terminalling and storage8,009  4,119  14,567  9,186 
Expenses:       
Operating expenses14,339  16,452  27,723  32,828 
Selling, general and administrative6,498  6,500  14,219  14,068 

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 July 25, 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  14,281  291  14,572 
Issuance of common units, net2,990,000  51,071    51,071 
Issuance of restricted units12,000       
Forfeiture of restricted units(1,750)      
General partner contribution    1,098  1,098 
Cash distributions  (36,952) (754) (37,706)
Unit-based compensation  405    405 
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 - June 30, 201738,452,112  $326,633  $8,047  $334,680 
        
Balances - January 1, 201838,444,612  $290,927  $7,314  $298,241 
Net income  5,461  111  5,572 
Issuance of common units, net of issuance related costs  (118)   (118)
Issuance of restricted units633,425       
Forfeiture of restricted units(7,000)      
Cash distributions  (38,433) (784) (39,217)
Unit-based compensation  520    520 
Excess purchase price over carrying value of acquired assets  (26)   (26)
Purchase of treasury units(18,800) (273)   (273)
Balances - June 30, 201839,052,237  $258,058  $6,641  $264,699 

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 July 25, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)

 Six Months Ended
 June 30,
 2018 2017
Cash flows from operating activities:   
Net income$5,572  $14,572 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization40,101  45,662 
Amortization of deferred debt issuance costs1,689  1,445 
Amortization of premium on notes payable(153) (153)
Loss on sale of property, plant and equipment492  140 
Equity in earnings of WTLPG(2,726) (1,758)
Derivative (income) loss(2,069) 2,392 
Net cash received (paid) for commodity derivatives2,569  (6,429)
Unit-based compensation520  405 
Cash distributions from WTLPG3,000  2,500 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:   
Accounts and other receivables46,592  29,522 
Product exchange receivables(145) (13)
Inventories(15,900) (19,065)
Due from affiliates2,632  (9,726)
Other current assets(699) (1,372)
Trade and other accounts payable(17,333) (4,067)
Product exchange payables1,264  246 
Due to affiliates(1,897) (5,774)
Income taxes payable(110) (468)
Other accrued liabilities(5,480) (2,761)
Change in other non-current assets and liabilities584  490 
    Net cash provided by operating activities58,503  45,788 
    
Cash flows from investing activities:   
Payments for property, plant and equipment(23,566) (19,756)
Acquisitions  (19,533)
Payments for plant turnaround costs  (1,591)
Proceeds from sale of property, plant and equipment98  1,597 
Proceeds from repayment of Note receivable - affiliate  15,000 
Contributions to WTLPG(12,578) (145)
    Net cash used in investing activities(36,046) (24,428)
    
Cash flows from financing activities:   
Payments of long-term debt(199,000) (184,000)
Proceeds from long-term debt218,000  155,000 
Proceeds from issuance of common units, net of issuance related costs(118) 51,071 
General partner contribution  1,098 
Purchase of treasury units(273) (4)
Payment of debt issuance costs(1,240) (40)
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(39,217) (37,706)
    Net cash used in financing activities(21,874) (21,343)
    
    Net increase in cash583  17 
Cash at beginning of period27  15 
Cash at end of period$610  $32 
Non-cash additions to property, plant and equipment$1,811  $3,666 

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 July 25, 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 June 30, 2018 and 2017

 Three Months Ended
June 30,
     Percent 
 2018 2017 Variance
 Change
                       
 (In thousands, except BBL per day)  
Revenues:       
Services25,491  26,148  $(657)         (3)%
Products36,823  33,413  3,410  10%
Total revenues62,314  59,561  2,753  5%
        
Cost of products sold33,596  30,474  3,122  10%
Operating expenses12,909  13,198  (289) (2)%
Selling, general and administrative expenses1,334  1,444  (110) (8)%
Depreciation and amortization11,690  10,327  1,363  13%
 2,785  4,118  (1,333) (32)%
Other operating income (loss)(36) 10  (46) (460)%
Operating income$2,749  $4,128  $(1,379) (33)%
        
Lubricant sales volumes (gallons)6,408  5,361  1,047  20%
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 Six Months Ended June 30, 2018 and 2017

 Six Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
                         
 (In thousands, except BBL per day)  
Revenues:       
Services$   50,994  $   52,579  $(1,585) (3)%
Products73,303  65,560  7,743  12%
Total revenues124,297  118,139  6,158  5%
        
Cost of products sold67,098  59,168  7,930  13%
Operating expenses26,356  27,160  (804) (3)%
Selling, general and administrative expenses2,590  2,769  (179) (6)%
Depreciation and amortization21,849  25,804  (3,955) (15)%
 6,404  3,238  3,166  98%
Other operating loss(36) (3) (33) 1,100%
Operating income$6,368  $3,235  $3,133  97%
        
Lubricant sales volumes (gallons)12,318  10,695  1,623  15%
Shore-based throughput volumes (guaranteed minimum) (gallons)20,000  83,332  (63,332) (76)%
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 June 30, 2018 and 2017

 Three Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
           
 (In thousands)  
Revenues:       
Services$13,804  $14,838  $(1,034) (7)%
Products90,643  73,666  16,977  23%
Total revenues104,447  88,504  15,943  18%
        
Cost of products sold88,394  71,003  17,391  24%
Operating expenses5,895  5,567  328  6%
Selling, general and administrative expenses1,759  2,115  (356) (17)%
Depreciation and amortization5,304  6,205  (901) (15)%
 3,095  3,614  (519) (14)%
Other operating income (loss)(120) 5  (125) (2,500)%
Operating income$2,975  $3,619  $(644) (18)%
        
Distributions from WTLPG$1,500  $1,300  $200  15%
        
NGL sales volumes (Bbls)1,743  1,794  (51) (3)%

       Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017

 Six Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
           
 (In thousands)  
Revenues:       
Services$29,160  $29,503  $(343) (1)%
Products249,806  200,323  49,483  25%
Total revenues278,966  229,826  49,140  21%
        
Cost of products sold232,142  180,306  51,836  29%
Operating expenses11,675  11,225  450  4%
Selling, general and administrative expenses4,829  5,166  (337) (7)%
Depreciation and amortization10,605  12,366  (1,761) (14)%
 19,715  20,763  (1,048) (5)%
Other operating income (loss)(120) 5  (125) (2,500)%
Operating income$19,595  $20,768  $(1,173) (6)%
        
Distributions from WTLPG$3,000  $2,500  $500  20%
        
NGL sales volumes (Bbls)5,184  4,604  580  13%

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 June 30, 2018 and 2017

 Three Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
                   
 (In thousands)  
Revenues:       
Services$2,787  $2,850  $(63) (2)%
Products35,684  32,027  3,657  11%
Total revenues38,471  34,877  3,594  10%
        
Cost of products sold28,829  21,297  7,532  35%
Operating expenses2,929  3,417  (488) (14)%
Selling, general and administrative expenses1,046  1,007  39  4%
Depreciation and amortization2,086  2,030  56  3%
 3,581  7,126  (3,545) (50)%
Other operating income16    16   
Operating income$3,597  $7,126  $(3,529) (50)%
        
Sulfur (long tons)178  192  (14) (7)%
Fertilizer (long tons)93  71  22  31%
Total sulfur services volumes (long tons)271  263  8  3%

       Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017 

 Six Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
           
 (In thousands)  
Revenues:       
Services$5,574  $5,700  $(126) (2)%
Products70,584  71,554  (970) (1)%
Total revenues76,158  77,254  (1,096) (1)%
        
Cost of products sold52,816  45,871  6,945  15%
Operating expenses5,841  6,664  (823) (12)%
Selling, general and administrative expenses2,081  2,028  53  3%
Depreciation and amortization4,150  4,063  87  2%
 11,270  18,628  (7,358) (39)%
Other operating income (loss)14  (22) 36  (164)%
Operating income$11,284  $18,606  $(7,322) (39)%
        
Sulfur (long tons)354  409  (55) (13)%
Fertilizer (long tons)181  165  16  10%
Total sulfur services volumes (long tons)535  574  (39) (7)%

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 June 30, 2018 and 2017

 Three Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
           
 (In thousands)  
Revenues$13,168  $13,144  $24  %
Operating expenses10,374  11,062  (688) (6)%
Selling, general and administrative expenses87  71  16  23%
Depreciation and amortization1,811  1,764  47  3%
 896  247  649  263%
Other operating loss(350)   (350)  
Operating income$546  $247  $299  121%

       Comparative Results of Operations for the Six Months Ended June 30, 2018 and 2017

 Six Months Ended
June 30,
   Percent
 2018 2017 Variance
 Change
           
 (In thousands)  
Revenues$25,196  $26,558  $(1,362) (5)%
Operating expenses20,278  22,155  (1,877) (8)%
Selling, general and administrative expenses163  175  (12) (7)%
Depreciation and amortization3,497  3,429  68  2%
 $1,258  $799  $459  57%
Other operating loss(350) (120) (230) 192%
Operating income$908  $679  $229  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 and six months ended June 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 Six Months Ended
 June 30, June 30,
 2018 2017 2018 2017
        
 (in thousands)
Net income (loss)$(7,246) $989  $5,572  $14,572 
Adjustments:       
Interest expense, net13,766  11,219  26,451  22,139 
Income tax expense132  13  281  193 
Depreciation and amortization20,891  20,326  40,101  45,662 
EBITDA27,543  32,547  72,405  82,566 
Adjustments:       
Equity in earnings of WTLPG(1,131) (853) (2,726) (1,758)
(Gain) loss on sale of property, plant and equipment490  (15) 492  140 
Unrealized mark-to-market on commodity derivatives654  (200) 500  (4,037)
Distributions from WTLPG1,500  1,300  3,000  2,500 
Unit-based compensation388  219  520  405 
Adjusted EBITDA29,444  32,998  74,191  79,816 
Adjustments:       
Interest expense, net(13,766) (11,219) (26,451) (22,139)
Income tax expense(132) (13) (281) (193)
Amortization of debt premium(76) (76) (153) (153)
Amortization of deferred debt issuance costs870  724  1,689  1,445 
Payments for plant turnaround costs  (197)   (1,591)
Maintenance capital expenditures(5,370) (2,618) (11,372) (7,286)
Distributable Cash Flow$10,970  $19,599  $37,623  $49,899 

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Source: GlobeNewswire (July 25, 2018 - 4:01 PM EDT)

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