July 24, 2019 - 5:03 PM EDT
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Martin Midstream Partners Reports Second Quarter 2019 Financial Results and Revised Guidance
  • Quarterly Distribution Coverage Ratio of 1.31 times
  • Second Quarter Net Loss from Continuing Operations of $10.6 million
  • Improved Pro-Forma Total Leverage to 5.12 times
  • Revised Guidance for 2019

KILGORE, Texas, July 24, 2019 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the “Partnership”) announced today its financial results for the second quarter of 2019.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, said, "During the second quarter, the Partnership continued to execute on announced strategic initiatives designed to strengthen the balance sheet and increase liquidity.  Since mid-2018 the Partnership, through a series of divestitures and the acquisition of Martin Transport, Inc., has received net proceeds of approximately $283.0 million, used to reduce borrowings under the revolving credit facility.  As a result, the Partnership will benefit approximately $15.6 million from interest expense savings.

"Addressing the second quarter of 2019, the Partnership generated adjusted EBITDA of approximately $25.2 million, which does not include adjusted EBITDA from discontinued operations, and a total distribution coverage ratio of 1.31 times, as the Partnership continued to encounter challenges across all four operating segments.  The Terminalling and Storage segment faced reduced contract renewal rates as a result of ongoing depressed activity in the Gulf of Mexico.  The Sulfur segment experienced weak demand for fertilizer products in the last month of the quarter attributable to a shortened planting season caused by rain and flooding.  Historically, the second quarter is the weakest for our continuing operations in the Natural Gas Liquids segment as prices contract during the seasonal buying period, negatively impacting inventory valuation.  Finally, the Transportation segment saw softness in the land division compared to guidance attributable to reduced demand in the refining and chemicals sector, offset by solid performance in the marine division due to continuing strong fleet utilization and increasing day rates.

"In conclusion, while the Partnership experienced headwinds within our operating environments, we have effectively executed our strategic initiatives to strengthen the balance sheet by reducing leverage.  In addition, we successfully amended and extended our revolving credit facility recently which improves liquidity and, coupled with the Partnership’s commitment to capital discipline, provides support for near term opportunities and long term success."

The Partnership reported a net loss from continuing operations for the second quarter 2019 of $10.6 million, a loss of $0.27 per limited partner unit.  The Partnership had a net loss from continuing operations for the second quarter 2018 of $9.5 million, or $0.31 per limited partner unit.  The Partnership had a net loss from continuing operations for the six months ended June 30, 2019 of $15.4 million, a loss of $0.39 per limited partner unit.  The Partnership had a net loss from continuing operations for the six months ended June 30, 2018 of $1.5 million, or $0.17 per limited partner unit.

Adjusted EBITDA from continuing operations for the second quarter of 2019 was $25.2 million compared to the second quarter of 2018 of $22.7 million.  Adjusted EBITDA from continuing operations for the six months ended June 30, 2019 was $50.8 million compared to the six months ended June 30, 2018 of $58.8 million.

Distributable cash flow from continuing operations for the second quarter of 2019 was $8.0 million compared to the second quarter of 2018 of $4.7 million.  Distributable cash flow from continuing operations for the six months ended June 30, 2019 was $12.7 million compared to the six months ended June 30, 2018 of $23.4 million.

The Partnership had a net loss from discontinued operations for the three months ended June 30, 2019 of $180.6 million, a loss of $4.55 per limited partner unit.  The Partnership's net loss from discontinued operations for the three months ended June 30, 2019 includes a non-cash charge related to the disposition of its natural gas storage assets of $178.8 million.  The Partnership had net income from discontinued operations for the three months ended June 30, 2018 of $4.9 million, or $0.13 per limited partner unit.  The Partnership had a net loss from discontinued operations for the six months ended June 30, 2019 of $179.5 million, a loss of $4.52 per limited partner unit.  The Partnership's loss from discontinued operations for the six months ended June 30, 2019 includes a non-cash charge related to the disposition of its natural gas storage assets of $178.8 million.  The Partnership had net income from discontinued operations for the six months ended June 30, 2018 of $12.0 million, or $0.31 per limited partner unit.

Adjusted EBITDA from discontinued operations for the second quarter of 2019 was $5.5 million compared to the second quarter 2018 of $10.1 million.  Adjusted EBITDA from discontinued operations for the six months ended June 30, 2019 was $10.7 million compared to the six months ended June 30, 2018 of $21.2 million.

Distributable cash flow from discontinued operations for the second quarter of 2019 was $4.9 million compared to the second quarter of 2018 of $9.6 million.  Distributable cash flow from discontinued operations for the six months ended June 30, 2019 was $9.8 million compared to the six months ended June 30, 2018 of $20.5 million.

Revenues for the second quarter of 2019 were $187.3 million compared to the second quarter of 2018 of $227.2 million.  Revenues for the six months ended June 30, 2019 were $427.4 million compared to the six months ended June 30, 2018 of $518.9 million.

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 and six months ended June 30, 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 July 24, 2019.

An attachment reconciling net income to Adjusted EBITDA and with 2019 revised guidance is included at http://ml.globenewswire.com/Resource/Download/779f5bcb-6037-4c15-8903-50635dc96a4c.

Investors' Conference Call

An investors conference call to review the second quarter results will be held on Thursday, July 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 9578957. An archive of the replay will be on Martin Midstream Partners’ website at www.MMLP.com.

About Martin Midstream Partners

Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region.  The Partnership's primary business lines include: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution and transportation services.

Forward-Looking Statements

Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements and all references to financial 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)
    
 June 30, 2019 December 31, 20181
 (Unaudited) (Unaudited)
Assets   
Cash$2,521  $300 
Accounts and other receivables, less allowance for doubtful accounts of $618 and $576, respectively64,606  83,488 
Product exchange receivables107  166 
Inventories (Note 6)81,220  84,265 
Due from affiliates35,598  18,845 
Fair value of derivatives (Note 11)  4 
Other current assets9,638  5,889 
Assets held for sale (Note 4)5,132  5,652 
Current assets - Natural Gas Storage Assets (Note 4)  9,428 
Total current assets198,822  208,037 
    
Property, plant and equipment, at cost880,603  886,435 
Accumulated depreciation(451,359) (438,602)
Property, plant and equipment, net429,244  447,833 
    
Goodwill17,785  17,785 
Right-of-use assets (Note 9)25,682   
Deferred income taxes, net (Note 19)23,925   
Other assets, net (Note 10)5,050  4,584 
Non-current assets - Natural Gas Storage Assets (Note 4)  395,389 
Total assets$700,508  $1,073,628 
    
Liabilities and Partners’ Capital   
Current installments of finance lease obligations (Note 9)$6,059  $5,409 
Trade and other accounts payable61,357  64,041 
Product exchange payables7,717  12,103 
Due to affiliates3,367  2,133 
Income taxes payable576  445 
Fair value of derivatives (Note 11)2,069   
Other accrued liabilities (Note 10)29,160  24,380 
Current liabilities - Natural Gas Storage Assets (Note 4)  3,240 
Total current liabilities110,305  111,751 
    
Long-term debt, net (Note 8 )596,398  656,459 
Finance lease obligations (Note 9)4,259  6,272 
Operating lease liabilities (Note 9)17,913   
Other long-term obligations8,747  10,045 
Non-current liabilities - Natural Gas Storage Assets (Note 4)  669 
Total liabilities737,622  785,196 
    
Commitments and contingencies (Note 16)   
Partners’ capital (deficit) (Note 12)(37,114) 288,432 
Total partners’ capital (deficit)(37,114) 288,432 
Total liabilities and partners' capital$700,508  $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 July 24, 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 Six Months Ended
 June 30, June 30,
 2019 20181 2019 20181
Revenues:       
Terminalling and storage *$21,377  $24,068  $44,481  $48,115 
Transportation *41,321  37,206  79,116  71,565 
Sulfur services2,858  2,787  5,717  5,574 
Product sales: *       
Natural gas liquids57,398  90,625  173,872  249,787 
Sulfur services32,998  35,684  61,732  70,584 
Terminalling and storage31,371  36,794  62,438  73,257 
 121,767  163,103  298,042  393,628 
Total revenues187,323  227,164  427,356  518,882 
        
Costs and expenses:       
Cost of products sold: (excluding depreciation and amortization)       
Natural gas liquids *53,546  84,542  159,736  223,165 
Sulfur services *22,124  26,886  41,820  49,104 
Terminalling and storage *26,118  32,286  52,989  64,266 
 101,788  143,714  254,545  336,535 
Expenses:       
Operating expenses *53,579  52,915  105,428  105,741 
Selling, general and administrative *10,226  8,894  20,426  18,833 
Depreciation and amortization15,087  16,946  29,988  32,258 
Total costs and expenses180,680  222,469  410,387  493,367 
        
Other operating loss(1,633) (206) (2,353) (198)
Operating income5,010  4,489  14,616  25,317 
        
Other income (expense):       
Interest expense, net(14,986) (13,815) (28,657) (26,545)
Other, net1  5  4  5 
Total other expense(14,985) (13,810) (28,653) (26,540)
        
Net loss before taxes(9,975) (9,321) (14,037) (1,223)
Income tax expense(639) (132) (1,335) (281)
Loss from continuing operations(10,614) (9,453) (15,372) (1,504)
Income (loss) from discontinued operations, net of income taxes(180,568) 4,927  (179,466) 12,014 
Net income (loss)(191,182) (4,526) (194,838) 10,510 
Less general partner's interest in net (income) loss3,824  145  3,897  (111)
Less pre-acquisition (income) allocated to the general partner  (2,720)   (4,938)
Less (income) loss allocable to unvested restricted units65  6  67  (2)
Limited partners' interest in net income (loss)$(187,293) $(7,095) $(190,874) $5,459 
        

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 24, 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 Six Months Ended
 June 30, June 30,
 2019 20181 2019 20181
Revenues:*       
Terminalling and storage$17,477  $20,485  $36,449  $40,493 
Transportation5,856  7,066  11,499  13,759 
Product Sales286  377  707  1,001 
Costs and expenses:*       
Cost of products sold: (excluding depreciation and amortization)       
Sulfur services2,884  2,492  5,458  5,340 
Terminalling and storage7,203  7,089  13,112  12,668 
Expenses:       
Operating expenses24,407  23,758  46,943  46,846 
Selling, general and administrative8,558  6,692  17,093  14,618 

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 24, 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 Six Months Ended
 June 30, June 30,
 2019 20181 2019 20181
Allocation of net income (loss) attributable to:       
Limited partner interest:       
Continuing operations$(10,398) $(11,857) $(15,060) $(6,426)
Discontinued operations(176,895) 4,762  (175,814) 11,885 
 $(187,293) $(7,095) $(190,874) $5,459 
General partner interest:       
Continuing operations$(212) $(303) $(307) $(16)
Discontinued operations(3,612) 158  (3,590) 127 
 $(3,824) $(145) $(3,897) $111 
        
Net income (loss) per unit attributable to limited partners:       
Basic:       
Continuing operations$(0.27) $(0.31) $(0.39) $(0.17)
Discontinued operations(4.55) 0.13  (4.52) 0.31 
 $(4.82) $(0.18) $(4.91) $0.14 
Weighted average limited partner units - basic38,871  38,722  38,912  38,829 
Diluted:       
Continuing operations$(0.27) $(0.31) $(0.39) $(0.17)
Discontinued operations(4.55) 0.13  (4.52) 0.31 
 $(4.82) $(0.18) $(4.91) $0.14 
Weighted average limited partner units - diluted38,871  38,722  38,912  38,834 

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 24, 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 Net
Investment1
 Common Limited General
Partner
Amount
  
  Units Amount  Total
Balances - January 1, 2018$24,240  38,444,612  $290,927  $7,314  $322,481 
Net income4,938    5,461  111  10,510 
Issuance of common units, net    (118)   (118)
Issuance of restricted units  633,425       
Forfeiture of restricted units  (7,000)      
Cash distributions    (38,433) (784) (39,217)
Deemed contribution to Martin Resource Management Corporation(8,857)       (8,857)
Unit-based compensation    520    520 
Purchase of treasury units  (18,800) (273)   (273)
Excess purchase price over carrying value of acquired assets    (26)   (26)
Balances - June 30, 2018$20,321  39,052,237  $258,058  $6,641  $285,020 
          
Balances - January 1, 2019$23,720  39,032,237  $258,085  $6,627  $288,432 
Net loss    (190,941) (3,897) (194,838)
Issuance of common units, net of issuance related costs    (259)   (259)
Issuance of restricted units  16,944       
Forfeiture of restricted units  (154,288)      
Cash distributions    (28,851) (589) (29,440)
Unit-based compensation    715    715 
Excess purchase price over carrying value of acquired assets    (102,393)   (102,393)
Deferred taxes on acquired assets and liabilities    24,781    24,781 
Contribution to parent(23,720)       (23,720)
Purchase of treasury units  (31,504) (392)   (392)
Balances - June 30, 2019$  38,863,389  $(39,255) $2,141  $(37,114)

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 24, 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)
  
 Six Months Ended
 June 30,
 2019 20181
Cash flows from operating activities:   
Net income (loss)$(194,838) $10,510 
Less:  (Income) loss from discontinued operations, net of income taxes179,466  (12,014)
Net loss from continuing operations(15,372) (1,504)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Depreciation and amortization29,988  32,258 
Amortization of deferred debt issuance costs2,478  1,689 
Amortization of premium on notes payable(153) (153)
Deferred taxes856   
Loss on sale of property, plant and equipment2,353  198 
Derivative loss (gain)2,322  (2,069)
Net cash received (paid) for commodity derivatives(249) 2,569 
Unit-based compensation715  520 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:   
Accounts and other receivables28,073  44,772 
Product exchange receivables59  (145)
Inventories3,044  (15,482)
Due from affiliates(15,947) 3,241 
Other current assets(3,061) 60 
Trade and other accounts payable(2,800) (16,155)
Product exchange payables(4,386) 1,196 
Due to affiliates428  (495)
Income taxes payable131  (103)
Other accrued liabilities(3,043) (6,158)
Change in other non-current assets and liabilities(693) 931 
Net cash provided by continuing operating activities24,743  45,170 
Net cash provided by discontinued operating activities7,770  23,999 
Net cash provided by operating activities32,513  69,169 
    
Cash flows from investing activities:   
Payments for property, plant and equipment(14,102) (22,450)
Acquisitions(23,720)  
Payments for plant turnaround costs(4,742)  
Proceeds from sale of property, plant and equipment659  500 
Net cash used in continuing investing activities(41,905) (21,950)
Net cash provided by (used in) discontinued investing activities209,155  (15,139)
Net cash provided by (used in) investing activities167,250  (37,089)
    
Cash flows from financing activities:   
Payments of long-term debt and finance lease obligations(362,672) (199,765)
Proceeds from long-term debt298,000  218,000 
Proceeds from issuance of common units, net of issuance related costs(259) (118)
Purchase of treasury units(392) (273)
Deemed distribution to Martin Resource Management Corporation  (8,857)
Payment of debt issuance costs(386) (1,240)
Excess purchase price over carrying value of acquired assets(102,393) (26)
Cash distributions paid(29,440) (39,217)
Net cash used in financing activities(197,542) (31,496)
    
Net increase in cash2,221  584 
Cash at beginning of period300  89 
Cash at end of period$2,521  $673 
Non-cash additions to property, plant and equipment$2,248  $1,811 

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 24, 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 June 30, 2019 and 2018
 Three Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands, except BBL per day)  
Revenues:       
Services$22,966  $25,491  $(2,525) (10)%
Products31,385  36,823  (5,438) (15)%
Total revenues54,351  62,314  (7,963) (13)%
        
Cost of products sold27,497  33,596  (6,099) (18)%
Operating expenses13,257  12,909  348  3%
Selling, general and administrative expenses1,378  1,334  44  3%
Depreciation and amortization7,826  11,690  (3,864) (33)%
 4,393  2,785  1,608  58%
Other operating income (loss)7  (36) 43  119%
Operating income$4,400  $2,749  $1,651  60%
        
Shore-based throughput volumes (guaranteed minimum) (gallons)20,000  20,000    %
Smackover refinery throughput volumes (guaranteed minimum BBL per day)6,500  6,500    %


 
Comparative Results of Operations for the Six Months Ended June 30, 2019 and 2018
 Six Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands, except BBL per day)  
Revenues:       
Services$47,766  $50,994  $(3,228) (6)%
Products62,477  73,303  (10,826) (15)%
Total revenues110,243  124,297  (14,054) (11)%
        
Cost of products sold55,774  67,098  (11,324) (17)%
Operating expenses26,610  26,356  254  1%
Selling, general and administrative expenses2,727  2,590  137  5%
Depreciation and amortization15,663  21,849  (6,186) (28)%
 9,469  6,404  3,065  48%
Other operating income (loss)17  (36) 53  147%
Operating income$9,486  $6,368  $3,118  49%
        
Shore-based throughput volumes (guaranteed minimum) (gallons)40,000  40,000    %
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)6,500  6,500    %


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Transportation Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2019 and 2018
 Three Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Revenues$47,233  $43,553  $3,680  8%
Operating expenses36,512  36,055  457  1%
Selling, general and administrative expenses1,980  1,452  528  36%
Depreciation and amortization3,778  2,550  1,228  48%
 4,963  3,496  1,467  42%
Other operating loss(1,649) (186) (1,463) (787)%
Operating income$3,314  $3,310  $4  %


Comparative Results of Operations for the Six Months Ended June 30, 2019 and 2018
 Six Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Revenues$92,419  $85,490  $6,929  8%
Operating expenses71,777  71,495  282  %
Selling, general and administrative expenses4,065  2,868  1,197  42%
Depreciation and amortization7,348  5,016  2,332  46%
 $9,229  $6,111  $3,118  51%
Other operating loss(2,385) (176) (2,209) (1,255)%
Operating income$6,844  $5,935  $909  15%


 
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, 2019 and 2018
 Three Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Revenues:       
Services$2,858  $2,787  $71  3%
Products32,998  35,684  (2,686) (8)%
Total revenues35,856  38,471  (2,615) (7)%
        
Cost of products sold23,676  28,829  (5,153) (18)%
Operating expenses2,789  2,929  (140) (5)%
Selling, general and administrative expenses1,251  1,046  205  20%
Depreciation and amortization2,854  2,086  768  37%
 5,286  3,581  1,705  48%
Other operating income (loss)(1) 16  (17) (106)%
Operating income$5,285  $3,597  $1,688  47%
        
Sulfur (long tons)182  178  4  2%
Fertilizer (long tons)88  93  (5) (5)%
Total sulfur services volumes (long tons)270  271  (1) %


Comparative Results of Operations for the Six Months Ended June 30, 2019 and 2018
 Six Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Revenues:       
Services$5,717  $5,574  $143  3%
Products61,732  70,584  (8,852) (13)%
Total revenues67,449  76,158  (8,709) (11)%
        
Cost of products sold45,242  52,816  (7,574) (14)%
Operating expenses4,952  5,841  (889) (15)%
Selling, general and administrative expenses2,429  2,081  348  17%
Depreciation and amortization5,722  4,150  1,572  38%
 9,104  11,270  (2,166) (19)%
Other operating income (loss)(1) 14  (15) (107)%
Operating income$9,103  $11,284  $(2,181) (19)%
        
Sulfur (long tons)291  354  (63) (18)%
Fertilizer (long tons)155  181  (26) (14)%
Total sulfur services volumes (long tons)446  535  (89) (17)%


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Natural Gas Liquids Segment
 
Comparative Results of Operations for the Three Months Ended June 30, 2019 and 2018
 Three Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Products Revenues$57,398  $90,643  $(33,245) (37)%
Cost of products sold57,392  88,389  (30,997) (35)%
Operating expenses1,680  1,717  (37) (2)%
Selling, general and administrative expenses1,097  738  359  49%
Depreciation and amortization629  620  9  1%
 (3,400) (821) (2,579) (314)%
Other operating income10    10   — 
Operating loss$(3,390) $(821) $(2,569) (313)%
        
NGL sales volumes (Bbls)1,457  1,743  (286) (16)%


Comparative Results of Operations for the Six Months Ended June 30, 2019 and 2018
 Six Months Ended
June 30,
 Variance Percent
Change
 2019 2018  
    
 (In thousands)  
Products Revenues$173,872  $249,806  $(75,934) (30)%
Cost of products sold168,701  232,122  (63,421) (27)%
Operating expenses3,386  3,389  (3) %
Selling, general and administrative expenses2,197  2,745  (548) (20)%
Depreciation and amortization1,255  1,243  12  1%
 (1,667) 10,307  (11,974) (116)%
Other operating income16    16   — 
Operating income (loss)$(1,651) $10,307  $(11,958) (116)%
        
NGL sales volumes (Bbls)4,364  5,184  (820) (16)%
 

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, 2019 and 2018, 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,
 2019 20181 2019 20181
    
    
 (in thousands) (in thousands)
Net income (loss)$(191,182) $(4,526) $(194,838) $10,510 
Less:  (Income) loss from discontinued operations, net of income taxes180,568  (4,927) 179,466  (12,014)
Loss from continuing operations(10,614) (9,453) (15,372) (1,504)
Adjustments:       
Interest expense, net14,986  13,815  28,657  26,545 
Income tax expense639  132  1,335  281 
Depreciation and amortization15,087  16,946  29,988  32,258 
EBITDA from Continuing Operations20,098  21,440  44,608  57,580 
Adjustments:       
Loss on sale of property, plant and equipment1,633  206  2,353  198 
Unrealized mark-to-market on commodity derivatives2,220  654  2,073  500 
Transaction costs associated with acquisitions40    224   
Non-cash insurance related accruals500    500   
Lower of cost or market adjustments303    303   
Unit-based compensation363  388  715  520 
Adjusted EBITDA from Continuing Operations25,157  22,688  50,776  58,798 
Adjustments:       
Interest expense, net(14,986) (13,815) (28,657) (26,545)
Income tax expense(639) (132) (1,335) (281)
Amortization of debt premium(76) (76) (153) (153)
Amortization of deferred debt issuance costs1,583  870  2,478  1,689 
Deferred income taxes487    856   
Payments for plant turnaround costs(915)   (4,742)  
Maintenance capital expenditures(2,628) (4,857) (6,487) (10,100)
Distributable Cash Flow from Continuing Operations$7,983  $4,678  $12,736  $23,408 
        
Income (loss) from discontinued operations, net of income taxes$(180,568) $4,927  $(179,466) $12,014 
Adjustments:       
Depreciation and amortization4,080  4,684  8,161  9,362 
EBITDA from Discontinued Operations(176,488) 9,611  (171,305) 21,376 
Equity in earnings of unconsolidated entities  (1,131)   (2,726)
Distributions from unconsolidated entities  1,500    3,000 
Loss on sale of property, plant and equipment178,781  120  178,781  120 
Non-cash insurance related accruals3,213    3,213   
Adjusted EBITDA from Discontinued Operations5,506  10,100  10,689  21,770 
Maintenance capital expenditures(576) (512) (912) (1,271)
Distributable Cash Flow from Discontinued Operations$4,930  $9,588  $9,777  $20,499 

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.

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Source: GlobeNewswire (July 24, 2019 - 5:03 PM EDT)

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