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Press release from GlobeNewswire (a Nasdaq OMX company)

Martin Midstream Partners Reports 2013 Second Quarter Financial Results

Wednesday, July 31, 2013

Martin Midstream Partners Reports 2013 Second Quarter Financial Results

13:00 EDT Wednesday, July 31, 2013

KILGORE, Texas, July 31, 2013 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the second quarter ended June 30, 2013.

The Partnership reported net income for the second quarter of 2013 of $9.1 million, or $0.33 per limited partner unit. This compared to net income for the second quarter of 2012 of $10.0 million, or $0.25 per limited partner unit. The Partnership reported net income for the six months ended June 30, 2013 of $25.7 million, or $0.95 per limited partner unit. This compared to net income for the six months ended June 30, 2012 of $22.5 million, or $0.64 per limited partner unit. Revenues for the second quarter of 2013 were $358.2 million compared to $333.8 million for the second quarter of 2012.

The Partnership reported income from continuing operations for the second quarter of 2013 of $9.1 million, or $0.33 per limited partner unit. This compared to income from continuing operations for the second quarter of 2012 of $8.0 million, or $0.18 per limited partner unit. The Partnership reported no income from discontinued operations for the second quarter of 2013. This compared to income from discontinued operations for the second quarter of 2012 of $2.0 million, or $0.07 per limited partner unit.

The Partnership reported income from continuing operations for the six months ended June 30, 2013 of $25.7 million, or $0.95 per limited partner unit. This compared to the income from continuing operations for the six months ended June 30, 2012 of $18.8 million, or $0.51 per limited partner unit. The Partnership reported no income from discontinued operations for the six months ended June 30, 2013. This compared to income from discontinued operations for the six months ended June 30, 2012 of $3.7 million, or $0.13 per limited partner unit. Revenues for the six months ended June 30, 2013 were $791.9 million compared to $682.2 million for the six months ended June 30, 2012.

The Partnership's adjusted EBITDA for the second quarter of 2013 was $33.8 million. This compared to adjusted EBITDA for the second quarter of 2012 of $30.4 million. The Partnership's adjusted EBITDA for the six months ended June 30, 2013 was $72.5 million. This compared to adjusted EBITDA for the six months ended June 30, 2012 of $61.6 million. 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.

The Partnership's distributable cash flow for the second quarter of 2013 was $20.6 million. This compared to distributable cash flow for the second quarter of 2012 of $19.0 million. The Partnership's distributable cash flow for the six months ended June 30, 2013 was $49.5 million. This compared to distributable cash flow for the six months ended June 30, 2012 of $40.0 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 "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement.

Included with this press release are the Partnership's consolidated financial statements as of and for the three and six months ended June 30, 2013 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 August 5, 2013.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said, "I am pleased with our Partnership's second quarter performance. Historically, we see weaker cash flow levels during the second quarter due to seasonal impact. For the second quarter 2013, our distribution coverage ratio to the limited partners was 0.98 times which met our planned performance. For the six months ended June 30, 2013, our coverage to the limited partners was 1.18 times which allowed us to increase our quarterly distribution by $0.005 per common unit. The quarter once again exemplified the diverse nature of our cash flow generation. On balance, our Natural Gas Services and Sulfur Services segments out performed our forecasted plan. Conversely, our Terminalling & Storage segment experienced higher than normal operating expenses as we had unplanned repairs and maintenance at our Smackover refinery. Our Marine Transportation segment also experienced higher than anticipated repair and maintenance costs as we moved planned drydock expense previously scheduled for the second half of 2013 to the second quarter. As a result, all of 2013 regulatory drydockings have been completed."

Investors' Conference Call

An investors' conference call to review the second quarter results will be held on Thursday, August 1, 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 August 1, 2013 through 10:59 p.m. Central Time on August 8, 2013. The access code for the conference call and the audio replay is Conference ID No. 24703013. The audio replay of the conference call will also be archived on Martin Midstream Partners' website at www.martinmidstream.com.

Quarterly Cash Distribution

The quarterly cash distribution of $0.78 per common units which was announced on July 25, 2013 is payable on August 14, 2013 to common unitholders of record as of the close of business on August 7, 2013. The ex-dividend date for the cash distribution is August 5, 2013. This distribution reflects an annualized distribution rate of $3.12 per unit and is based on the Partnership's current operating performance and the current general economic, industry, and market conditions affecting it.

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: terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished products; natural gas services, including liquids 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 Partnership is based in Kilgore, Texas and was founded in 2002.

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 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.

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 historic 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 unit holders.

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

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
 
 
  June 30, 2013 December 31, 2012
  (Unaudited) (Audited)
Assets    
Cash $ 17 $ 5,162
Accounts and other receivables, less allowance for doubtful accounts of $2,856 and $2,805, respectively 123,994 190,652
Product exchange receivables 1,722 3,416
Inventories 93,313 95,987
Due from affiliates 31,000 13,343
Other current assets 6,313 2,777
Assets held for sale 750 3,578
Total current assets 257,109 314,915
     
Property, plant and equipment, at cost 849,238 767,344
Accumulated depreciation (278,706) (256,963)
Property, plant and equipment, net 570,532 510,381
     
Goodwill 19,616 19,616
Investment in unconsolidated entities 183,229 154,309
Debt issuance costs, net 17,180 10,244
Other assets, net 8,432 3,531
  $ 1,056,098 $ 1,012,996
     
Liabilities and Partners' Capital    
Current installments of long-term debt and capital lease obligations $ 3,185 $ 3,206
Trade and other accounts payable 110,788 140,045
Product exchange payables 10,976 12,187
Due to affiliates 3,405 3,316
Income taxes payable 1,614 10,239
Accrued interest payable 11,071 4,492
Other accrued liabilities 6,112 4,997
Total current liabilities 147,151 178,482
     
Long-term debt and capital leases, less current installments 565,006 474,992
Other long-term obligations 2,050 1,560
Total liabilities 714,207 655,034
     
Partners' capital 341,891 357,962
Commitments and contingencies    
  $ 1,056,098 $ 1,012,996
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 August 5, 2013.
 
 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2013 20121 2013 20121
Revenues:        
Terminalling and storage * $ 27,420 $ 21,046 $ 56,311 $ 41,232
Marine transportation * 25,497 20,714 50,477 41,576
Sulfur services 3,001 2,925 6,002 5,851
Product sales: *        
Natural gas services 187,200 164,817 446,309 336,928
Sulfur services 57,895 64,168 125,279 135,794
Terminalling and storage 57,175 60,176 107,496 120,791
  302,270 289,161 679,084 593,513
Total revenues 358,188 333,846 791,874 682,172
         
Costs and expenses:        
Cost of products sold: (excluding depreciation and amortization)        
Natural gas services * 181,523 163,043 430,301 330,242
Sulfur services * 44,786 47,350 97,583 102,310
Terminalling and storage * 50,273 54,464 94,088 108,110
  276,582 264,857 621,972 540,662
Expenses:        
Operating expenses * 43,035 34,443 86,395 71,454
Selling, general and administrative * 6,383 5,639 13,413 11,410
Depreciation and amortization 12,353 10,070 24,246 20,023
Total costs and expenses 338,353 315,009 746,026 643,549
         
Other operating income 424 378 796 373
Operating income 20,259 19,215 46,644 38,996
         
Other income (expense):        
Equity in earnings (loss) of unconsolidated entities 73 799 (301) 1,032
Interest expense (10,940) (8,839) (19,998) (16,495)
Debt prepayment premium (2,219) (2,470)
Other, net (14) 256 (23) 548
Total other expense (10,881) (10,003) (20,322) (17,385)
         
Net income before taxes 9,378 9,212 26,322 21,611
Income tax expense (300) (1,168) (607) (2,825)
Income from continuing operations 9,078 8,044 25,715 18,786
Income from discontinued operations, net of income taxes 1,984 3,709
Net income 9,078 10,028 25,715 22,495
Less General Partner's interest in net income (181) (1,544) (514) (3,155)
Less pre-acquisition income allocated to Parent (2,836) (4,774)
Less income allocable to unvested restricted units (23) (66)
Limited partners' interest in net income $ 8,874 $ 5,648 $ 25,135 $ 14,566
         
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 August 5, 2013.
         
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. 
         
*Related Party Transactions Shown Below
 
 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
         
*Related Party Transactions Included Above
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2013 20121 2013 20121
Revenues:        
Terminalling and storage $ 17,485 $ 14,805 $ 34,813 $ 30,080
Marine transportation 6,042 4,446 12,885 9,303
Product Sales 1,839 1,958 3,048 4,147
Costs and expenses:        
Cost of products sold: (excluding depreciation and amortization)        
Natural gas services 7,036 7,707 15,592 12,022
Sulfur services 4,441 3,970 8,975 8,401
Terminalling and storage 14,189 10,695 26,150 23,344
Expenses:        
Operating expenses 17,534 14,392 35,508 28,208
Selling, general and administrative 4,170 2,828 8,588 5,494
         
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 August 5, 2013.
         
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. 
 
 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
         
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2013 20121 2013 20121
Allocation of net income attributable to:        
Limited partner interest:        
Continuing operations $ 8,874 $ 4,090 $ 25,135 $ 11,518
Discontinued operations 1,558 3,048
  $ 8,874 $ 5,648 $ 25,135 $ 14,566
General partner interest:        
Continuing operations $ 181 $ 1,118 $ 514 $ 2,494
Discontinued operations 426 661
  $ 181 $ 1,544 $ 514 $ 3,155
         
Net income attributable to limited partners:        
Basic:        
Continuing operations $ 0.33 $ 0.18 $ 0.95 $ 0.51
Discontinued operations 0.07 0.13
  $ 0.33 $ 0.25 $ 0.95 $ 0.64
Weighted average limited partner units - basic 26,558 23,103 26,561 22,839
Diluted:        
Continuing operations $ 0.33 $ 0.18 $ 0.95 $ 0.51
Discontinued operations 0.07 0.13
  $ 0.33 $ 0.25 $ 0.95 $ 0.64
Weighted average limited partner units - diluted 26,579 23,104 26,577 22,842
         
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 August 5, 2013.
         
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. 
 
 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2013 20121 2013 20121
Net income $ 9,078 $ 10,028 $ 25,715 $ 22,495
Other comprehensive income adjustments:        
Changes in fair values of commodity cash flow hedges 126
Commodity cash flow hedging losses reclassified to earnings (499) (689)
Other comprehensive income (499) (563)
Comprehensive income $ 9,078 $ 9,529 $ 25,715 $ 21,932
         
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 August 5, 2013.
         
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. 
 
 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
             
  Partners' Capital    
          Accumulated  
          Other  
          Comprehensive  
    Common Limited General Partner Income  
  Parent Net Investment1 Units Amount Amount (Loss) Total
Balances - January 1, 2012 $ 51,571 20,471,776 $ 279,562 $ 5,428 $ 626 $ 337,187
             
Net income 4,774 14,566 3,155 22,495
             
Follow-on public offering 2,645,000 91,361 91,361
             
General partner contribution 1,951 1,951
             
Cash distributions (35,253) (3,635) (38,888)
             
Unit-based compensation 118 118
             
Purchase of treasury units   (221) (221)
             
Adjustment in fair value of derivatives (563) (563)
             
Balances - June 30, 2012 $ 56,345 23,116,776 $ 350,133 $ 6,899 $ 63 $ 413,440
             
Balances - January 1, 2013 $ — 26,566,776 $ 349,490 $ 8,472 $ — $ 357,962
             
Net income 25,201 514 25,715
             
Issuance of restricted units 63,750
             
Forfeiture of restricted units (250)
             
General partner contribution 37 37
             
Cash distributions (41,135) (917) (42,052)
             
Unit-based compensation 479 479
             
Purchase of treasury units —  (6,000) (250) (250)
             
Balances - June 30, 2013 $ — 26,624,276 $ 333,785 $ 8,106 $ — $ 341,891
             
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 August 5, 2013.
             
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012
 
 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
 
 
  Six Months Ended
  June 30,
Cash flows from operating activities: 2013 20121
Net income $ 25,715 $ 22,495
Less: Income from discontinued operations (3,709)
Net income from continuing operations 25,715 18,786
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 24,246 20,023
Amortization of deferred debt issuance costs 2,075 1,931
Amortization of debt discount 153 427
Deferred taxes 267
(Gain) loss on sale of property, plant and equipment (796) 3
Equity in (earnings) loss of unconsolidated entities 301 (1,032)
Unit-based compensation 479 118
Other 6
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:    
Accounts and other receivables 66,658 21,253
Product exchange receivables 1,694 9,517
Inventories 4,946 (13,866)
Due from affiliates (17,657) (16,729)
Other current assets (3,530) 868
Trade and other accounts payable (29,256) (11,959)
Product exchange payables (1,211) (21,534)
Due to affiliates 89 11,967
Income taxes payable 53 22
Other accrued liabilities 1,115 (1,282)
Accrued interest payable 6,579 (540)
Change in other non-current assets and liabilities (563) (574)
Net cash provided by continuing operating activities 81,096 17,666
Net cash provided by (used in) discontinued operating activities (8,678) 5,210
Net cash provided by operating activities 72,418 22,876
Cash flows from investing activities:    
Payments for property, plant and equipment (28,621) (51,373)
Acquisitions (63,004)
Payments for plant turnaround costs (2,403)
Proceeds from sale of property, plant and equipment 4,719 23
Milestone distributions from ECP 2,208
Return of investments from unconsolidated entities 1,357 4,297
Contributions to unconsolidated entities (30,578) (18,123)
Net cash used in continuing investing activities (116,127) (65,371)
Net cash used in discontinued investing activities (2,003)
Net cash used in investing activities (116,127) (67,374)
Cash flows from financing activities:    
Payments of long-term debt (420,000) (217,000)
Payments of notes payable and capital lease obligations (160) (6,453)
Proceeds from long-term debt 510,000 216,000
Net proceeds from follow-on offering 91,361
General partner contribution 37 1,951
Purchase of treasury units (250) (221)
Decrease in affiliate funding of investments in unconsolidated entities (2,208)
Payment of debt issuance costs (9,011) (204)
Cash distributions paid (42,052) (38,888)
Net cash provided by financing activities 38,564 44,338
Net decrease in cash (5,145) (160)
Cash at beginning of period 5,162 266
Cash at end of period $ 17 $ 106
     
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 filed with the Securities and Exchange Commission on August 5, 2013.            
1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012.    
 
 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited) 
(Dollars and volumes in thousands, except BBL per day)
       
Terminalling and Storage Segment
       
Comparative Results of Operations for the Three Months Ended June 30, 2013 and 2012 
       
  Three Months Ended June 30,  
  2013 2012  % Change
  (In thousands, except BBL per day)  
Revenues:      
Services $ 28,587 $ 22,222 29%
Products 57,175 60,176 (5)%
Total revenues 85,762 82,398 4%
       
Cost of products sold 51,139 54,987 (7)%
Operating expenses 17,739 13,923 27%
Selling, general and administrative expenses 748 1,087 (31)%
Depreciation and amortization 7,297 5,223 40%
  8,839 7,178 23%
Other operating income 97 375 (74)%
Operating income $ 8,936 $ 7,553 18%
       
Lubricant sales volumes (gallons) 10,450 9,957 5%
Shore-based throughput volumes (gallons) 67,069 57,240 17%
Smackover refinery throughput volumes (BBL per day) 7,010 3,460 103%
       
       
Comparative Results of Operations for the Six Months Ended June 30, 2013 and 2012
       
  Six Months Ended June 30,  
  2013 2012 % Change
  (In thousands, except BBL per day)  
Revenues:      
Services $ 58,619 $ 43,583 34%
Products 107,496 120,791 (11)%
Total revenues 166,115 164,374 1%
       
Cost of products sold 95,409 109,153 (13)%
Operating expenses 35,433 27,967 27%
Selling, general and administrative expenses 1,443 2,464 (41)%
Depreciation and amortization 14,393 10,199 41%
  19,437 14,591 33%
Other operating income 168 395 (57)%
Operating income $ 19,605 $ 14,986 31%
       
Lubricant sales volumes (gallons) 19,247 19,844 (3)%
Shore-based throughput volumes (gallons) 142,017 110,973 28%
Smackover refinery throughput volumes (BBL per day) 6,730 5,076 33%
 
 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited) 
(Dollars and volumes in thousands, except BBL per day)
       
Natural Gas Services Segment      
       
Comparative Results of Operations for the Three Months Ended June 30, 2013 and 2012 
       
  Three Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues:      
Marine transportation $ 1,515 $ —  
Products 187,200 164,817 14%
Total revenues 188,715 164,817 14%
       
Cost of products sold 181,893 163,427 11%
Operating expenses 990 804 23%
Selling, general and administrative expenses 718 859 (16)%
Depreciation and amortization 554 144 285%
Operating income (loss) $ 4,560 $ (417) (1,194)%
       
Distribution equivalents from unconsolidated entities $ 1,436 $ 1,206 19%
       
NGL sales volumes (Bbls) 3,016 2,436 24%
       
Comparative Results of Operations for the Six Months Ended June 30, 2013 and 2012
       
  Six Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues:      
Marine transportation $ 1,845 $ —  
Products 446,309 336,928 32%
Total revenues 448,154 336,928 33%
       
Cost of products sold 431,029 331,003 30%
Operating expenses 1,971 1,756 12%
Selling, general and administrative expenses 1,644 1,456 13%
Depreciation and amortization 846 287 195%
Operating income $ 12,664 $ 2,426 422%
       
Distribution equivalents from unconsolidated entities $ 1,961 $ 2,278 (14)%
       
NGL sales volumes (Bbls) 6,721 4,733 42%
 
 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited) 
(Dollars and volumes in thousands, except BBL per day)
       
Sulfur Services Segment
       
Comparative Results of Operations for the Three Months Ended June 30, 2013 and 2012 
       
  Three Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues:      
Services $ 3,001 $ 2,925 3%
Products 57,895 64,168 (10)%
Total revenues 60,896 67,093 (9)%
       
Cost of products sold 44,877 47,440 (5)%
Operating expenses 4,186 4,614 (9)%
Selling, general and administrative expenses 1,016 982 3%
Depreciation and amortization 1,957 1,782 10%
  8,860 12,275 (28)%
Other operating income 3 (100)%
Operating income $ 8,860 $ 12,278 (28)%
       
Sulfur (long tons) 209.1 301.4 (31)%
Fertilizer (long tons) 71.3 83.6 (15)%
Total sulfur services volumes (long tons) 280.4 385.0 (27)%
       
Comparative Results of Operations for the Six Months Ended June 30, 2013 and 2012
       
  Six Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues:      
Services $ 6,002 $ 5,851 3%
Products 125,279 135,794 (8)%
Total revenues 131,281 141,645 (7)%
       
Cost of products sold 97,764 102,491 (5)%
Operating expenses 8,625 8,807 (2)%
Selling, general and administrative expenses 2,063 1,937 7%
Depreciation and amortization 3,923 3,575 10%
  18,906 24,835 (24)%
Other operating loss (22) (100)%
Operating income $ 18,906 $ 24,813 (24)%
       
Sulfur (long tons) 403.1 580.4 (31)%
Fertilizer (long tons) 175.0 177.5 (1)%
Total sulfur services volumes (long tons) 578.1 757.9 (24)%
 
 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited) 
(Dollars and volumes in thousands, except BBL per day)
       
Marine Transportation Segment 
       
Comparative Results of Operations for the Three Months Ended June 30, 2013 and 2012 
       
  Three Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues $ 25,021 $ 21,466 17%
Operating expenses 20,999 16,033 31%
Selling, general and administrative expenses 353 362 (2)%
Depreciation and amortization 2,545 2,921 (13)%
  1,124 2,150 (48)%
Other operating income 327  
Operating income $ 1,451 $ 2,150 (33)%
       
Comparative Results of Operations for the Six Months Ended June 30, 2013 and 2012 
       
  Six Months Ended June 30,  
  2013 2012 % Change
  (In thousands)  
Revenues $ 50,253 $ 43,033 17%
Operating expenses 42,065 34,747 21%
Selling, general and administrative expenses 772 786 (2)%
Depreciation and amortization 5,084 5,962 (15)%
  2,332 1,538 52%
Other operating income 628  
Operating income $ 2,960 $ 1,538 92%
 
 
MARTIN MIDSTREAM PARTNERS L.P.
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2013 2012 2013 2012
         
Net income $ 9,078 $ 10,028 $ 25,715 $ 22,495
Less: Income from discontinued operations, net of income taxes (1,984) (3,709)
Income from continuing operations 9,078 8,044 25,715 18,786
Adjustments:        
Interest expense 10,940 8,839 19,998 16,495
Income tax expense 300 1,168 607 2,825
Depreciation and amortization 12,353 10,070 24,246 20,023
EBITDA1 32,671 28,121 70,566 58,129
Adjustments:        
Equity in (earnings) loss of unconsolidated entities (73) (799) 301 (1,032)
(Gain) loss on sale of property, plant and equipment (424) (3) (796) 3
Debt prepayment premium 2,219 2,470
Distributions equivalents from unconsolidated entities 1,436 1,206 1,961 2,278
Mont Belvieu indemnity escrow payment (375) (375)
Unit-based compensation 223 62 479 118
Adjusted EBITDA1 33,833 30,431 72,511 61,591
Adjustments:        
Interest expense (10,940) (8,839) (19,998) (16,495)
Income tax expense (300) (1,168) (607) (2,825)
Amortization of deferred debt issuance costs 806 1,241 2,075 1,931
Amortization of debt discount 77 340 153 427
Payments of installment notes payable and capital lease obligations (79) (46) (160) (176)
Deferred income taxes 267 267
Payments for plant turnaround costs (2,098) (2,403)
Maintenance capital expenditures (2,822) (1,088) (4,500) (2,278)
Distributable Cash Flow 1 $ 20,575 $ 19,040 $ 49,474 $ 40,039
         
1 EBITDA, Adjusted EBITDA and Distributable Cash Flow for the three and six months ended June 30, 2012 is from continuing operations.
CONTACT: Robert D. Bondurant, Executive Vice President
and Chief Financial Officer
Martin Midstream GP LLC
the Partnership's general partner
(903) 983-6200

Martin Midstream Partners L.P. logo

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