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Press release from GlobeNewswire (a Nasdaq OMX company)

Martin Midstream Partners Reports 2012 Fourth Quarter and Fiscal Year Financial Results

Wednesday, February 27, 2013

Martin Midstream Partners Reports 2012 Fourth Quarter and Fiscal Year Financial Results13:00 EST Wednesday, February 27, 2013KILGORE, Texas, Feb. 27, 2013 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the fourth quarter and year ended December 31, 2012. The Partnership reported net income for the fourth quarter of 2012 of $6.7 million, or $0.27 per limited partner unit. This compared to net income for the fourth quarter of 2011 of $3.0 million, or $0.06 per limited partner unit. The Partnership reported net income for the year ended December 31, 2012 of $102.0 million, or $3.96 per limited partner unit. This compared to net income for the year ended December 31, 2011 of $22.8 million, or $0.92 per limited partner unit. The Partnership reported income from continuing operations for the fourth quarter of 2012 of $9.2 million, or $0.36 per limited partner unit. This compared to income from continuing operations for the fourth quarter of 2011 of $1.4 million, or $0.03 per limited partner unit. The Partnership reported a loss from discontinued operations for the fourth quarter of 2012 of $2.4 million, or $0.09 per limited partner unit. This compared to income from discontinued operations for the fourth quarter of 2011 of $1.7 million, or $0.03 per limited partner unit. Revenues for the fourth quarter of 2012 were $454.1 million compared to $347.2 million for the fourth quarter of 2011. The Partnership reported income from continuing operations for the year ended December 31, 2012 of $37.1 million, or $1.32 per limited partner unit. This compared to income from continuing operations for the year ended December 31, 2011 of $13.4 million, or $0.57 per limited partner unit. The Partnership reported income from discontinued operations for the year ended December 31, 2012 of $64.9 million, or $2.64 per limited partner unit. This compared to income from discontinued operations for the year ended December 31, 2011 of $9.4 million, or $0.35 per limited partner unit. Income from discontinued operations was positively impacted by a gain on the sale of the Prism Assets of $61.8 million for the year ended December 31, 2012. Revenues for the year ended December 31, 2012 were $1.5 billion compared to $1.2 billion for the year ended December 31, 2011. The Partnership's distributable cash flow for the three months ended December 31, 2012 was $20.1 million and for the year ended December 31, 2012 was $83.8 million. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement. Ruben Martin, President and Chief Executive Officer of Martin Midstream GP, LLC, the general partner of the Partnership, said, "We can best summarize our fourth quarter 2012 as a period of strong growth for the Partnership. During the quarter, we successfully closed three acquisitions- a new high water mark for the Partnership. These acquisitions have created even more growth platforms; and we have positioned ourselves well for cash flows commencing over the next two years as associated projects are completed. "Our distributable cash flow (DCF) coverage ratio was 1.06 times based on our fourth quarter distribution. Similarly, our DCF was 1.10 times for the year ended 2012. DCF for the fourth quarter was slightly lower than we projected primarily due to an increased level of administrative expenses associated with the acquisitions and higher than expected maintenance capital expenditures. However, given the growth capital spending associated with several key organic growth projects completed during the year, I am pleased with this level of performance. "By segment, we saw strong performance in our Terminalling and Storage segment associated with our new Corpus Christi crude oil terminal. This facility has performed very well during its first full quarter of operation- well exceeding our forecasted throughput. Given the growth of Eagle Ford Shale crude oil production, we see likely expansion on the horizon at this facility. In 2013, this segment will also benefit from the October 2012 drop down of our Cross Oil lubricant packaging facility and the growth of that business. Finally, the acquisition of Talen's Marine & Fuel, L.L.C. at the end of 2012 gives our Partnership a strong market position in the marine fuel and lubricant terminalling business. While we expect this acquisition to generate $6-$7 million of cash flow annually, the outlook for increased levels of activity in the Gulf of Mexico oil and gas exploration and production bode well for our enhanced marine terminal system. "In our Natural Gas Services segment, we benefited from better than projected seasonal sales quantities and margins. On the natural gas storage side, softness continues in the marketplace which has negatively impacted the distributions we are receiving from Monroe Gas Storage LLC. However, to enhance the Partnership's long-term growth, we purchased all of the equity interests in Red Bird Gas Storage LLC which were previously owned by Martin Resource Management Corporation during the fourth quarter 2012. We expect these strategically located natural gas storage assets to generate distributable cash flow for the Partnership commencing in 2015.  "Our Sulfur Services segment posted another strong quarter on the continued strength in demand for agricultural products. Further, we achieved record utilization levels on our sulfur-related assets in 2012. While we expect the market to remain relatively strong in 2013, our forecasted performance reflects some level of normalization. In our pure sulfur and prilling side of the business, we were ahead of plan for 2012, but have chosen to take a normalized view of 2013.  "Finally, our Marine Transportation segment continued to benefit from the full employment of our offshore vessels in the spot market during the fourth quarter. We finished the year with a very strong quarter as our assets have become more desirable given the need for oil and liquids transport due to increased shale production. Our inland division of the segment performed as forecasted and our asset utilization was more than 95% as anticipated. For 2013, we again anticipate our offshore assets being employed as South Texas demand continues to be strong." Included with this press release are the Partnership's consolidated financial statements as of and for the quarter and year ended December 31, 2012 and certain prior periods. These financial statements should be read in conjunction with the information contained in the Partnership's Annual Report on Form 10-K, to be filed with the SEC on March 4, 2013. Investors' Conference Call An investors' conference call to review the fourth quarter and fiscal year results will be held on Thursday, February 28, 2013, at 8:00 a.m. Central Time. The conference call can be accessed by calling (877) 878-2695. An audio replay of the conference call will be available by calling (855) 859-2056 from 11:00 a.m. Central Time on February 28, 2013 through 10:59 p.m. Central Time on March 7, 2013. The access code for the conference call and the audio replay is Conference ID No. 93672427. The audio replay of the conference call will also be archived on Martin Midstream Partners' website at www.martinmidstream.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: terminalling, storage, processing and packaging services for petroleum products and by-products;  natural gas liquids storage, marketing and distribution services and natural gas storage;  sulfur and sulfur-based products processing, manufacturing, marketing and distribution;  and marine transportation services for petroleum products and by-products.  The Martin Midstream Partners L.P. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14989 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 its 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 SEC. The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise. Use of Non-GAAP Financial Information The Partnership reports its financial results in accordance with United States generally accepted accounting principles (GAAP). However, from time to time, the Partnership uses certain non-GAAP financial measures such as distributable cash flow because the Partnership's management believes that this measure may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of the Partnership's cash available to pay distributions. Distributable cash flow should not be considered an alternative to cash flow from operating activities or any other measure of financial performance in accordance with GAAP. Distributable cash flow is not intended to represent cash flows for the period, nor is it presented as an alternative to income from continuing operations. Furthermore, it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. This information may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the SEC. Accordingly, the Partnership has presented herein, and will present in other information it publishes that contains this non-GAAP financial measure, a reconciliation of this measure to the most directly comparable GAAP financial measure. The Partnership has included below a table entitled "Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measure. The Partnership calculates distributable cash flow as follows: (1) net income from continuing operations (as reported in statements of operations); plus depreciation and amortization; plus loss on sale of property, plant and equipment; plus amortization of debt discount, and amortization of deferred debt issuance costs (all as reported in statement of cash flows); less payments of installment notes payable and capital lease obligations (as described below); plus deferred income taxes (as reported in statement of cash flows); less Mont Belvieu indemnity escrow payment (as described below); plus debt prepayment premium (as described below); less gain on sale of equity method investment; plus equity in loss of unconsolidated entities (as reported in statements of operations); less payments for plant turnaround costs (as reported in statements of cash flows); less maintenance capital expenditures (as reported under the caption "Liquidity and Capital Resources" in the Partnership's Annual Report on Form 10-K to be filed with the SEC on March 4, 2013); plus unit-based compensation (as reported in the statements of changes in capital); plus distribution equivalents from unconsolidated entities (as described below). (2) net income (loss) from discontinued operations (as reported in statements of operations); plus depreciation and amortization; less gain on sale of property, plant and equipment; less gain on sale of discontinued operations; plus income tax expense on sale from sale of discontinued operations; less equity in earnings of unconsolidated entities (all as reported in Note 5 under the caption "Notes to Consolidated Financial Statements" in the Partnership's Annual Report on Form 10-K to be filed with the SEC on March 4, 2013); less maintenance capital expenditures (as reported under the caption "Liquidity and Capital Resources" in the Partnership's Annual Report on Form 10-K to be filed with the SEC on March 4, 2013); plus distribution equivalents from unconsolidated entities and invested cash in unconsolidated entities (both as described below). The Partnership's payments of installment notes payable and capital lease obligations is calculated as payments of notes payable and capital lease obligations (as reported in the statement of cash flows), less the early extinguishment of notes payable of $6.3 million. The Partnership's Mont Belvieu indemnity escrow payment represents the final proceeds from the 2009 sale of certain assets comprising the Mont Belvieu railcar unloading facility. For the year ended December 31, 2012, the Partnership incurred a debt prepayment premium of $2.2 million related to the early redemption of $25.0 million of Senior Notes and $0.3 million related to the early retirement of a note payable on certain marine transportation assets. The Partnership's distribution equivalents from unconsolidated entities from continuing operations is calculated as distributions from unconsolidated entities (as reported in statements of cash flows); plus return of investments from unconsolidated entities (calculated as reported in statements of cash flows less a $2.0 million purchase price adjustment recorded as a return of investment by the Partnership in the statement of cash flows for the year ended December 31, 2012). The Partnership's distribution equivalents from unconsolidated entities from discontinued operations is calculated as return of investments from unconsolidated entities; plus distributions in-kind from unconsolidated entities (all as reported under the caption "Liquidity and Capital Resources" in the Partnership's Annual Report on Form 10-K to be filed with the SEC on March 4, 2013). The Partnership's invested cash in unconsolidated entities from discontinued operations is calculated as (Contributions to) unconsolidated entities for operations, plus expansion capital expenditures in unconsolidated entities (all as reported under the caption "Liquidity and Capital Resources" in the Partnership's Annual Report on Form 10-K to be filed with the SEC on March 4, 2013). The Partnership's distributable cash flow attributable to Packaging Assets is calculated as net income attributable to the Packaging Assets prior to the acquisition by the Partnership, plus depreciation and amortization, plus deferred income taxes. Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com. Contact:   Robert D. Bondurant, Executive Vice President and Chief Financial Officer of Martin Midstream GP LLC, the Partnership's general partner at (903) 983-6200.MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED BALANCE SHEETS(Dollars in thousands)        December 31, 2012  201220111Assets     Cash  $ 5,162  $ 266 Accounts and other receivables, less allowance for doubtful accounts of $2,805 and $3,384, respectively 190,652 143,036 Product exchange receivables 3,416 17,646 Inventories 95,987 93,254 Due from affiliates 13,343 5,968 Fair value of derivatives — 622 Other current assets 2,777 4,366 Assets held for sale 3,578 212,787 Total current assets 314,915 477,945       Property, plant and equipment, at cost 767,344 651,460 Accumulated depreciation (256,963) (218,202) Property, plant and equipment, net 510,381 433,258       Goodwill 19,616 8,337 Investment in unconsolidated entities 154,309 132,605 Debt issuance costs, net 10,244 13,330 Other assets, net 3,531 3,633    $ 1,012,996  $ 1,069,108Liabilities and Partners' Capital     Current portion of long-term debt and capital lease obligations  $ 3,206  $ 1,261 Trade and other accounts payable 140,045 136,124 Product exchange payables 12,187 37,313 Due to affiliates 3,316 74,654 Income taxes payable 10,239 926 Fair value of derivatives — 362 Other accrued liabilities 9,489 11,054 Liabilities held for sale — 501 Total current liabilities 178,482 262,195       Long-term debt and capital leases, less current maturities 474,992 458,941 Deferred income taxes — 9,697 Other long-term obligations 1,560 1,088 Total liabilities 655,034 731,921       Partners' capital 357,962 336,561 Accumulated other comprehensive income — 626 Total partners' capital 357,962 337,187 Commitments and contingencies        $ 1,012,996  $ 1,069,1081Financial information has been revised to include balances attributable to Redbird Class A interests and the Cross Packaging Assets. See Note 2(a) – Principles of Presentation and Consolidation.        These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.  MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)          Year Ended December 31,  2012¹2011¹2010¹ Revenues:       Terminalling and storage *  $ 90,243  $ 77,283  $ 67,117 Marine transportation * 85,748 76,936 77,642 Sulfur services * 11,702 11,400 — Product sales: *       Natural gas services 825,506 611,749 442,005 Sulfur services 249,882 263,644 165,078 Terminalling and storage 227,280 201,478 128,273   1,302,668 1,076,871 735,356 Total revenues 1,490,361 1,242,490 880,115         Costs and expenses:       Cost of products sold: (excluding depreciation and amortization)       Natural gas services * 801,724 598,814 427,657 Sulfur services * 194,952 219,697 122,121 Terminalling and storage 200,855 179,461 115,308   1,197,531 997,972 665,086 Expenses:       Operating expenses * 151,020 137,685 113,426 Selling, general and administrative * 25,494 20,531 16,865 Depreciation and amortization 42,063 40,276 36,884 Total costs and expenses 1,416,108 1,196,464 832,261 Other operating income (loss) (418) 1,326 228 Operating income 73,835 47,352 48,082         Other income (expense):       Equity in earnings (loss) of unconsolidated entities (1,113) (4,752) 2,536 Gain from ownership change in unconsolidated entity — — 6,413 Debt prepayment premium (2,470) — — Interest expense (30,665) (26,781) (35,322) Other, net 1,092 420 385 Total other income (expense) (33,156) (31,113) (25,988) Net income before taxes 40,679 16,239 22,094 Income tax expense (3,557) (2,872) (2,622) Income from continuing operations 37,122 13,367 19,472 Income from discontinued operations, net of income taxes 64,865 9,392 8,061 Net income 101,987 22,759 27,533 Less general partner's interest in net income (4,748) (5,289) (3,869) Less pre-acquisition (income) loss allocated to Parent (4,622) 1,583 (11,511) Less beneficial conversion feature — (1,108) (1,108) Limited partner's interest in net income  $ 92,617  $ 17,945  $ 11,045         ¹ Financial information for 2012, 2011 and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.          These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.         *Related Party Transactions Shown Below        MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)         *Related Party Transactions Included Above                Year Ended December 31,  2012¹2011¹2010¹ Revenues:       Terminalling and storage  $ 64,669  $ 54,211  $ 46,823 Marine transportation 17,494 23,478 28,194 Product Sales 7,201 9,081 7,903 Costs and expenses:       Cost of products sold: (excluding depreciation and amortization)       Natural gas services 27,512 16,749 7,517 Sulfur services 16,968 18,314 16,061 Terminalling and Storage 48,375 45,089 32,489 Expenses:       Operating expenses 58,834 58,051 48,390 Selling, general and administrative 13,678 8,610 7,237         ¹ Financial information for 2012, 2011, and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.          These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.  MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars and units in thousands, except per unit amounts)          Year Ended December 31,  201220112010Allocation of net income attributable to:      Limited partner interest:       Continuing operations  $ 30,915  $ 11,193  $ 4,441 Discontinued operations 61,702 6,752 6,604   92,617 17,945 11,045General partner interest:       Continuing operations 1,585 3,106 2,736 Discontinued operations 3,163 2,183 1,133   4,748 5,289 3,869Net income attributable to:       Continuing operations 32,500 14,299 7,177 Discontinued operations 64,865 8,935 7,737    $ 97,365  $ 23,234  $ 14,914        Net income attributable to limited partners:      Basic:       Continuing operations  $ 1.32  $ 0.57  $ 0.25 Discontinued operations 2.64 0.35 0.38    $ 3.96 $ 0.92 $ 0.63         Weighted average limited partner units - basic 23,362 19,545 17,525        Diluted:       Continuing operations  $ 1.32  $ 0.57  $ 0.25 Discontinued operations 2.64 0.35 0.38   $ 3.96 $ 0.92 $ 0.63         Weighted average limited partner units - diluted 23,365 19,547 17,526         These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.  MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL(Dollars in thousands)                    Partners' Capital        CommonSubordinated      Parent Net Investment1UnitsAmountUnitsAmountGeneral Partner AmountAccumulated Comprehensive Income AmountTotal Balances – December 31, 2009  $ 41,643  $ 16,057,832  $ 245,683  $ 889,444  $ 16,613  $ 4,731  $ (2,076)  $ 306,594 Net Income 11,511 — 12,153 — — 3,869 — 27,533 Recognition of beneficial conversion feature — — (1,108) — 1,108 — — — Follow-on public offerings — 2,650,000 78,600 — — — — 78,600 Redemption of common units — (1,000,000) (28,070) — — — — (28,070) General partner contribution — — — — — 1,089 — 1,089 Excess purchase price over carrying value of acquired assets — — (4,590) — — — — (4,590) Cash distributions ($3.00 per unit) — — (51,886) — — (4,810) — (56,696) Unit-based compensation — 3,500 113 — — — — 113 Purchase of treasury units — (3,500) (108) — — — — (108) Adjustment in fair value of derivatives — — — — — — 3,495 3,495 Balances – December 31, 2010 53,154 17,707,832 250,787 889,444 17,721 4,879 1,419 327,960                   Net income (loss) (1,583) — 19,053 — — 5,289 — 22,759 Recognition of beneficial conversion feature — — (1,108) — 1,108 — — — Follow-on public offering — 1,874,500 70,330 — — — — 70,330 General partner contribution — — — — — 1,505 — 1,505 Conversion of subordinated units to common units — 889,444 18,829 (889,444) (18,829) — — — Cash distributions ($3.05 per unit) — — (58,252) — — (6,245) — (64,497) Excess purchase price over carrying value of acquired assets — — (19,685) — — — — (19,685) Unit-based compensation — 14,850 190 — — — — 190 Purchase of treasury units — (14,850) (582) — — — — (582) Adjustment in fair value of derivatives — — — — — — (793) (793) Balances – December 31, 2011 51,571 20,471,776 279,562 — — 5,428 626 337,187                   Net income (loss) 4,622 — 92,617 — — 4,748 — 101,987 Follow-on public offering — 6,095,000 194,170 — — — — 194,170 General partner contribution — — — — — 4,145 — 4,145 Cash distributions ($3.06 per unit) — — (70,679) — — (5,849) — (76,528) Excess purchase price over carrying value of acquired assets — — (142,075) — — — — (142,075) Excess carrying value of assets over the purchase price paid by Martin Resource Management — — (4,268) — — — — (4,268) Unit-based compensation — — 385 — — — — 385 Purchase of treasury units — — (222) — — — — (222) Contributions to parent (56,193) — — — — — — (56,193) Adjustment in fair value of derivatives — — — — — — (626) (626) Balances – December 31, 2012 $ —   $ 26,566,776  $ 349,490 $ —  $ —   $ 8,472 $ —   $ 357,962                  1Financial information for 2012, 2011 and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.                   These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.  MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF CASH FLOWS(Dollars in thousands)          Year Ended December 31,  2012¹2011¹2010¹ Cash flows from operating activities:       Net income  $ 101,987  $ 22,759  $ 27,533 Less: Income from discontinued operations (64,865) (9,392) (8,061) Net income from continuing operations 37,122 13,367 19,472 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization 42,063 40,276 36,884 Amortization of deferred debt issue costs 3,290 3,755 4,814 Amortization of discount on notes payable 581 351 269 Deferred income taxes 402 622 452 (Gain) loss on disposition or sale of property, plant, and equipment 795 898 (229) Gain on sale of equity method investment (486) — — Equity in (earnings) loss of unconsolidated entities 1,113 4,752 (2,536) Gain on ownership change in unconsolidated entity — — (6,413) Other 385 190 113 Change in current assets and liabilities, excluding effects of acquisitions and dispositions:       Accounts and other receivables (56,703) (34,626) (20,009) Product exchange receivables 14,230 (8,547) (4,967) Inventories (2,733) (28,714) (20,815) Due from affiliates (19,999) 5,551 (175) Other current assets 3,046 (1,996) (1,455) Trade and other accounts payable 16,186 50,904 14,116 Product exchange payables (25,126) 14,961 14,366 Due to affiliates 18,601 11,874 (5,714) Income taxes payable 367 (943) (8) Other accrued liabilities (1,467) 1,063 5,185 Change in other non-current assets and liabilities 872 3,500 (4,307) Net cash provided by continuing operating activities 32,539 77,238 29,043 Net cash provided by discontinued operating activities 139 14,124 10,135 Net cash provided by operating activities 32,678 91,362 39,178 Cash flows from investing activities:       Payments for property, plant, and equipment (93,640) (77,202) (18,179) Acquisitions, net of cash acquired (224,603) (16,815) (16,747) Proceeds from sale of acquired assets 56,000 — — Payments for plant turnaround costs (2,107) (2,103) (1,090) Proceeds from sale of property, plant, and equipment 44 1,025 994 Proceeds from sale of equity method investment 531 — — Investments in unconsolidated entities (775) (59,319) — Milestone distributions from ECP 2,208 — 6,625 Return of investments from unconsolidated entities 5,980 1,432 — (Contributions to) unconsolidated entities for operations (30,279) (35,765) (19,253) Net cash (used in) continuing investing activities (286,641) (188,747) (47,650) Net cash provided by (used in) discontinued investing activities 271,605 (13,908) (43,366) Net cash (used in) investing activities (15,036) (202,655) (91,016) Cash flows from financing activities:       Payments of long-term debt (706,000) (442,000) (441,868) Payments of notes payable and capital lease obligations (6,556) (1,132) (111) Proceeds from long-term debt 727,000 529,000 503,856 Net proceeds from follow on public offerings 194,170 70,330 78,600 General partner contributions 4,145 1,505 1,089 Redemption of common units — — (28,070) Excess purchase price over carrying value of acquired assets (142,075) (19,685) (4,590) Excess carrying value of assets over the purchase price paid by Martin Resource Management (4,268) — — Purchase of treasury units (222) (582) (108) Increase (decrease) in affiliate funding of investments in unconsolidated entities (2,208) 30,828 12,628 Payments of debt issuance costs (204) (3,588) (7,468) Cash distributions paid (76,528) (64,497) (56,696) Net cash provided by (used in) financing activities (12,746) 100,179 57,262         Net increase (decrease) in cash 4,896 (11,114) 5,424 Cash at beginning of period 266 11,380 5,956 Cash at end of period  $ 5,162  $ 266  $ 11,380         Supplemental schedule of non-cash investing and financing activities:       Purchase of assets under note payable $ —  $ —   $ 7,3541Financial information for 2012, 2011 and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.          These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 4, 2013.  MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars in thousands)        Terminalling and Storage SegmentYears Ended December 31,  2012¹2011¹2010¹  (In thousands)  Revenues:       Services  $ 94,895  $ 81,697  $ 71,471 Products 227,280 201,478 128,273 Total revenues 322,175 283,175 199,744         Cost of products sold 202,966 182,928 115,308 Operating expenses 63,499 54,992 43,360 Selling, general and administrative expenses 4,671 3,343 2,180 Depreciation and amortization 22,976 19,814 17,330   28,063 22,098 21,566 Other operating loss (119) (531) 244 Operating income  $ 27,944  $ 21,567  $ 21,810        Natural Gas Services SegmentYears Ended December 31,  2012¹2011¹2010¹  (In thousands)  Revenues  $ 825,506  $ 611,749  $ 442,005 Cost of products sold 803,195 600,034 428,843 Operating expenses 3,550 2,994 3,210 Selling, general and administrative expenses 4,236 1,876 2,581 Depreciation and amortization 601 578 571   13,924 6,267 6,800 Other operating income (loss) — — (20) Operating income  $ 13,924  $ 6,267  $ 6,780         NGLs Volumes (Bbls) 12,080 7,866 6,997         The Natural Gas Services segment information shown above excludes the discontinued operations of the Prism Assets for all periods presented.        1Financial information for 2012, 2011 and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.  MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars in thousands)        Sulfur Services SegmentYears Ended December 31,  2012¹2011¹2010¹  (In thousands)  Revenues:       Services $ 11,702 $ 11,400 $ — Products 249,882 263,644 165,078 Total revenues 261,584 275,044 165,078         Cost of products sold 195,314 220,059 122,483 Operating expenses 17,404 19,328 17,013 Selling, general and administrative expenses 3,975 3,361 3,422 Depreciation and amortization 7,371 6,725 6,262   37,520 25,571 15,898 Other operating income (loss) (258) 2,080 (12) Operating income $ 37,262 $ 27,651 $ 15,886         Sulfur (long tons) 1,066.1 1,314.5 1,129.2 Fertilizer (long tons) 306.1 271.8 274.9 Sulfur services volumes (long tons) 1,372.2 1,586.3 1,404.1        Marine Transportation SegmentYears Ended December 31,  2012¹2011¹2010¹  (In thousands)  Revenues $ 88,815 $ 83,971 $ 82,635 Operating expenses 70,342 66,771 57,642 Selling, general and administrative expenses 566 3,087 2,296 Depreciation and amortization 11,115 13,159 12,721   6,792 954 9,976 Other operating (loss) (41) (223) 16 Operating income $ 6,751 $ 731 $ 9,9921Financial information for 2012, 2011 and 2010 has been revised to include results attributable to the Redbird Class A interests and the Packaging Assets acquired from Cross prior to October 2, 2012. See Note 2(a) – Principles of Presentation and Consolidation.MARTIN MIDSTREAM PARTNERS L.P.DISTRIBUTABLE CASH FLOWUnaudited Non-GAAP Financial Measure(Dollars in thousands)        Three Months Ended December 31, 2012Years Ended December 31, 2012  (In thousands)       Net income  $ 6,729  $ 101,987 Less: (Income) loss from discontinued operations 2,447 (64,865) Net income from continuing operations 9,176 37,122       Adjustments to reconcile net income to distributable cash flow:     Continuing operations:     Depreciation and amortization 11,748 42,063 Loss on sale of property, plant and equipment 788 795 Amortization of debt discount 77 581 Amortization of deferred debt issuance costs 679 3,290 Payments of installment notes payable and capital lease obligations (23) (279) Deferred income taxes — 402 Mont Belvieu indemnity escrow payment — (375) Debt prepayment premium — 2,470 Gain on sale of equity method investment — (486) Equity in loss of unconsolidated entities 1,368 1,113 Payments for plant turnaround costs 471 (2,107) Maintenance capital expenditures (5,055) (8,658) Unit-based compensation 6 385 Distribution equivalents from unconsolidated entities from continuing operations1 847 3,961 Distributable cash flow from continuing operations 20,082 80,277       Discontinued operations:     Income (loss) from discontinued operations, net of tax   64,865 Depreciation and amortization   2,320 Gain on sale of property, plant and equipment   (10) Gain on sale of discontinued operations   (61,848) Income tax expense from sale of discontinued operations   1,598 Equity in earnings of unconsolidated entities   (4,611) Maintenance capital expenditures   (537) Distribution equivalents from unconsolidated entities from discontinued operations2   6,792 Invested cash in unconsolidated entities from discontinued operations3   51 Distributable cash flow from discontinued operations   8,620       Distributable cash flow    $ 88,897 Distributable cash flow attributable to Packaging Assets4   (5,094) Net Distributable cash flow    $ 83,803    Three Months Ended December 31, 2012Years Ended December 31, 2012  (In thousands)1  Distribution equivalents from unconsolidated entities from continuing operations:     Distributions from unconsolidated entities $ — $ — Return of investments from unconsolidated entities  $ 847  $ 3,961 Distribution equivalents from unconsolidated entities  $ 847  $ 3,961      2 Distribution equivalents from unconsolidated entities from discontinued operations:     Return of investments from unconsolidated entities $ —  $ 400 Distributions in-kind from equity investments — 6,392 Distribution equivalents from unconsolidated entities $ — $ 6,792      3 Invested cash in unconsolidated entities from discontinued operations:      (Contributions to) unconsolidated entities for operations $ —  $ (3,051) Expansion capital expenditures in unconsolidated entities — 3,102 Invested cash in unconsolidated entities $ —  $ 51      4 Distributable cash flow attributable to Packaging Assets:     Net Income $ —  $ 3,834 Depreciation and amortization — 858 Deferred income taxes — 402 Distributable cash flow attributable to Packaging Assets $ —  $ 5,094CONTACT: Robert D. Bondurant Executive Vice President and Chief Financial Officer Martin Midstream GP LLC (903) 983-6200