Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - MARTIN MIDSTREAM PARTNERS L.P. | exhibit992_mmlp2q2021ear.htm |
| EX-10.1 - EX-10.1 - MARTIN MIDSTREAM PARTNERS L.P. | exhibit101twelfthamendment.htm |
| 8-K - 8-K - MARTIN MIDSTREAM PARTNERS L.P. | mmlp-20210716.htm |
EXHIBIT 99.1
MARTIN MIDSTREAM PARTNERS REPORTS SECOND QUARTER 2021 FINANCIAL RESULTS AND DECLARES QUARTERLY CASH DISTRIBUTION
•2021 financial performance in line with annual guidance
•Reported net loss of $6.6 million and $4.1 million for the three and six months ended June 30, 2021, respectively
•Reported adjusted EBITDA of $22.5 million and $53.4 million for the three and six months ended June 30, 2021, respectively
•Generated distributable cash flow of $7.3 and $20.1 million for the three and six months ended June 30, 2021, respectively
•Declares quarterly distribution of $0.005 or $0.02 per unit annually
•Announces Revolving Credit Facility Amendment
KILGORE, Texas, July 22, 2021 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") today announced its financial results for the second quarter of 2021.
“For the second quarter of 2021, the Partnership had a solid performance in line with our annual projected cash flows of between $95 million to $102 million,” stated Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership. “As the country returns to a more open economy and refinery utilization increases, we have seen heightened demand for our services particularly within the land transportation and lubricants businesses. However, the impact of COVID-19 is still reflected in a reduction in sulfur service volumes and lower marine day rates year over year. As expected, marine utilization has increased from last quarter and we anticipate the continued economic recovery will drive demand upward allowing for the further utilization of our asset base.”
“Looking to the third quarter, which is seasonally our weakest due to the cyclical nature of both the fertilizer and butane businesses, we amended our revolving credit facility in response to rising commodity prices and the continued impact of COVID-19 on the Partnership’s trailing twelve month cash flows. I’d like thank our lenders for recognizing our ongoing commitment to capital discipline through their support of the amendment.”
SECOND QUARTER 2021 OPERATING RESULTS BY BUSINESS SEGMENT
TERMINALLING AND STORAGE (“T&S”)
T&S Operating Income for the three months ended June 30, 2021 and 2020 was $3.7 million and $3.3 million, respectively.
Adjusted segment EBITDA for T&S was $10.6 million for each of the three month periods ended June 30, 2021 and 2020, reflecting increased volumes on packaged lubricants products, offset by expired capital recovery fees at the Smackover Refinery.
TRANSPORTATION
Transportation Operating Income for the three months ended June 30, 2021 and 2020 was $0.7 million and $0.6 million, respectively.
Adjusted segment EBITDA for Transportation was $5.0 million and $4.9 million for the three months ended June 30, 2021 and 2020, respectively, reflecting higher land transportation load count and rates, offset by lower marine day rates coupled with a reduction in marine equipment.
SULFUR SERVICES
Sulfur Services Operating Income for the three months ended June 30, 2021 and 2020 was $6.3 million and $7.4 million, respectively.
Adjusted segment EBITDA for Sulfur Services was $8.9 million and $10.8 million for the three months ended June 30, 2021 and 2020, respectively, reflecting lower refinery utilization volumes during the second quarter of 2021 as a result of continued effects of COVID-19.
NATURAL GAS LIQUIDS (“NGL”)
NGL Operating Income for the three months ended June 30, 2021 and 2020 was $0.7 million and $1.1 million, respectively.
Adjusted segment EBITDA for NGL was $1.7 million and $1.6 million for the three months ended June 30, 2021 and 2020, respectively, primarily reflecting increased margins in our butane optimization business, offset by a reduction in NGL margins due to rising commodity prices.
UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (“USGA”)
USGA expenses included in operating income for the three months ended June 30, 2021 and 2020 were $3.8 million and $4.4 million, respectively.
USGA expenses included in adjusted EBITDA for the three months ended June 30, 2021 and 2020 were $3.7 million and $4.0 million, respectively, primarily reflecting a reduction in overhead allocated from Martin Resource Management.
LIQUIDITY
At June 30, 2021, the Partnership had $180 million drawn on its $300 million revolving credit facility, an increase of $4 million from March 31, 2021. The Partnership’s leverage ratio, as calculated under the revolving credit facility, was 5.3 times and 5.4 times on June 30, 2021 and March 31, 2021, respectively. The Partnership is in compliance with all debt covenants as of June 30, 2021 and March 31, 2021.
REVOLVING CREDIT FACILITY AMENDMENT
The Partnership announced today the amendment of its revolving credit facility effective July 16, 2021. The amendment revises certain financial covenant ratios and reduces the aggregate amount of commitments from $300 million to $275 million, among other things.
Royal Bank of Canada serves as administrative agent and collateral agent for the facility. Baker Botts L.L.P acted as legal counsel to the Partnership.
QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2021. The distribution is payable on August 13, 2021 to common unitholders of record as of the close of business on August 6, 2021. The ex-dividend date for the cash distribution is August 5, 2021.
QUALIFIED NOTICE TO NOMINEES
This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of the Partnership's distributions to foreign investors are
attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
COVID-19 RESPONSE
The Partnership continues to evaluate protocols in response to the COVID-19 pandemic, including the impact of variants of COVID-19, such as the Delta variant. Where possible, employee work from home initiatives remain and travel restrictions have been lifted. Employees are encouraged to continue to exercise safety measures to protect the welfare of each other and the communities they serve.
RESULTS OF OPERATIONS
The Partnership had a net loss for the three months ended June 30, 2021 of $6.6 million, a loss of $0.17 per limited partner unit. The Partnership had a net loss for the three months ended June 30, 2020 of $2.2 million, a loss of $0.06 per limited partner unit. Adjusted EBITDA for the three months ended June 30, 2021 was $22.5 million compared to the three months ended June 30, 2020 of $23.9 million. Distributable cash flow for the three months ended June 30, 2021 was $7.3 million compared to the three months ended June 30, 2020 of $12.5 million.
The Partnership had a net loss for the six months ended June 30, 2021 of $4.1 million, a loss of $0.10 per limited partner unit. The Partnership had net income for the six months ended June 30, 2020 of $6.6 million, or $0.17 per limited partner unit. Adjusted EBITDA for the six months ended June 30, 2021 was $53.4 million compared to the six months ended June 30, 2020 of $54.9 million. Distributable cash flow for the six months ended June 30, 2021 was $20.1 million compared to the six months ended June 30, 2020 of $30.8 million.
Revenues for the three months ended June 30, 2021 were $184.3 million compared to the three months ended June 30, 2020 of $140.6 million. Revenues for the six months ended June 30, 2021 were $385.3 million compared to the six months ended June 30, 2020 of $339.5 million.
EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow 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, Distributable Cash Flow and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included, contains a comparison of the Partnership’s Adjusted EBITDA for the second quarter 2021 to the Partnership's Adjusted EBITDA for the second quarter 2020.
Investors' Conference Call
Date: Friday, July 23, 2021
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (833) 900-2251
Conference ID: 1691938
Replay Dial In # (800) 585-8367 – Conference ID: 1691938
A webcast of the conference call will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.
About Martin Midstream Partners
Martin Midstream Partners L.P., headquartered in Kilgore, Texas, 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. To learn more, visit www.MMLP.com.
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 guidance or to financial or operational estimates or projections rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the current and potential impacts of the COVID-19 pandemic generally, on an industry-specific basis, and on the Partnership’s specific operations and business, (ii) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (iii) 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 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, (3) distributable cash flow and (4) adjusted free 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. The Partnership defines Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments. Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.
Distributable Cash Flow. The Partnership defines Distributable Cash Flow as Adjusted EBITDA less cash paid for interest, cash paid for income taxes, maintenance capital expenditures, and plant turnaround costs. 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.
Adjusted Free Cash Flow. Adjusted free cash flow is defined as distributable cash flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by the Partnership's management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. The Partnership believes that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. The Partnership's calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.
EBITDA, adjusted EBITDA, distributable cash flow, and adjusted free 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.
Contact:
Sharon Taylor - Vice President & Chief Financial Officer
(877) 256-6644
investor.relations@mmlp.com
MMLP-F
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
| June 30, 2021 | December 31, 2020 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Assets | |||||||||||
| Cash | $ | 681 | $ | 4,958 | |||||||
Accounts and other receivables, less allowance for doubtful accounts of $225 and $261, respectively | 55,051 | 52,748 | |||||||||
| Inventories | 71,358 | 54,122 | |||||||||
| Due from affiliates | 20,619 | 14,807 | |||||||||
| Other current assets | 6,913 | 8,991 | |||||||||
| Total current assets | 154,622 | 135,626 | |||||||||
| Property, plant and equipment, at cost | 891,746 | 889,108 | |||||||||
| Accumulated depreciation | (530,624) | (509,237) | |||||||||
| Property, plant and equipment, net | 361,122 | 379,871 | |||||||||
| Goodwill | 16,823 | 16,823 | |||||||||
| Right-of-use assets | 19,955 | 22,260 | |||||||||
| Deferred income taxes, net | 21,495 | 22,253 | |||||||||
| Other assets, net | 2,862 | 2,805 | |||||||||
| Total assets | $ | 576,879 | $ | 579,638 | |||||||
| Liabilities and Partners’ Capital (Deficit) | |||||||||||
| Current installments of long-term debt and finance lease obligations | $ | 236 | $ | 31,497 | |||||||
| Trade and other accounts payable | 55,453 | 51,900 | |||||||||
| Product exchange payables | 700 | 373 | |||||||||
| Due to affiliates | 1,939 | 435 | |||||||||
| Income taxes payable | 308 | 556 | |||||||||
| Fair value of derivatives | 412 | 207 | |||||||||
| Other accrued liabilities | 29,394 | 34,407 | |||||||||
| Total current liabilities | 88,442 | 119,375 | |||||||||
| Long-term debt, net | 517,311 | 484,597 | |||||||||
| Finance lease obligations | 169 | 289 | |||||||||
| Operating lease liabilities | 13,423 | 15,181 | |||||||||
| Other long-term obligations | 8,631 | 7,067 | |||||||||
| Total liabilities | 627,976 | 626,509 | |||||||||
| Commitments and contingencies | |||||||||||
| Partners’ capital (deficit) | (51,097) | (46,871) | |||||||||
| Total partners’ capital (deficit) | (51,097) | (46,871) | |||||||||
| Total liabilities and partners' capital (deficit) | $ | 576,879 | $ | 579,638 | |||||||
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, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Terminalling and storage * | $ | 18,702 | $ | 19,908 | $ | 37,080 | $ | 40,382 | |||||||||||||||
| Transportation * | 34,926 | 31,485 | 64,741 | 70,426 | |||||||||||||||||||
| Sulfur services | 2,949 | 2,914 | 5,899 | 5,829 | |||||||||||||||||||
| Product sales: * | |||||||||||||||||||||||
| Natural gas liquids | 67,232 | 30,299 | 165,317 | 112,510 | |||||||||||||||||||
| Sulfur services | 35,337 | 30,506 | 67,222 | 55,914 | |||||||||||||||||||
| Terminalling and storage | 25,147 | 25,526 | 45,008 | 54,460 | |||||||||||||||||||
| 127,716 | 86,331 | 277,547 | 222,884 | ||||||||||||||||||||
| Total revenues | 184,293 | 140,638 | 385,267 | 339,521 | |||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||||||||||
| Natural gas liquids * | 61,590 | 24,293 | 140,725 | 94,128 | |||||||||||||||||||
| Sulfur services * | 24,177 | 17,559 | 45,391 | 32,854 | |||||||||||||||||||
| Terminalling and storage * | 20,226 | 21,438 | 34,728 | 45,118 | |||||||||||||||||||
| 105,993 | 63,290 | 220,844 | 172,100 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Operating expenses * | 47,313 | 44,202 | 91,947 | 95,484 | |||||||||||||||||||
| Selling, general and administrative * | 8,960 | 9,858 | 19,569 | 20,320 | |||||||||||||||||||
| Depreciation and amortization | 14,483 | 15,343 | 28,917 | 30,582 | |||||||||||||||||||
| Total costs and expenses | 176,749 | 132,693 | 361,277 | 318,486 | |||||||||||||||||||
| Other operating income (loss), net | 89 | 15 | (671) | 2,525 | |||||||||||||||||||
| Operating income | 7,633 | 7,960 | 23,319 | 23,560 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest expense, net | (13,309) | (9,377) | (26,262) | (19,302) | |||||||||||||||||||
| Gain on retirement of senior unsecured notes | — | — | — | 3,484 | |||||||||||||||||||
| Other, net | (1) | 4 | (1) | 7 | |||||||||||||||||||
| Total other expense | (13,310) | (9,373) | (26,263) | (15,811) | |||||||||||||||||||
| Net income (loss) before taxes | (5,677) | (1,413) | (2,944) | 7,749 | |||||||||||||||||||
| Income tax expense | (935) | (790) | (1,157) | (1,137) | |||||||||||||||||||
| Net income (loss) | (6,612) | (2,203) | (4,101) | 6,612 | |||||||||||||||||||
| Less general partner's interest in net (income) loss | 132 | 44 | 82 | (132) | |||||||||||||||||||
| Less (income) loss allocable to unvested restricted units | 20 | 10 | 10 | (45) | |||||||||||||||||||
| Limited partners' interest in net income (loss) | $ | (6,460) | $ | (2,149) | $ | (4,009) | $ | 6,435 | |||||||||||||||
| Net income (loss) per unit attributable to limited partners - basic | $ | (0.17) | $ | (0.06) | $ | (0.10) | $ | 0.17 | |||||||||||||||
| Net income (loss) per unit attributable to limited partners - diluted | $ | (0.17) | $ | (0.06) | $ | (0.10) | $ | 0.17 | |||||||||||||||
| Weighted average limited partner units - basic | 38,687,874 | 38,661,852 | 38,690,228 | 38,651,357 | |||||||||||||||||||
| Weighted average limited partner units - diluted | 38,687,874 | 38,661,852 | 38,690,228 | 38,651,897 | |||||||||||||||||||
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED 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, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Revenues:* | |||||||||||||||||||||||
| Terminalling and storage | $ | 15,569 | $ | 15,942 | $ | 30,875 | $ | 31,816 | |||||||||||||||
| Transportation | 4,889 | 5,393 | 8,899 | 11,287 | |||||||||||||||||||
| Product Sales | 71 | 38 | 185 | 130 | |||||||||||||||||||
| Costs and expenses:* | |||||||||||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||||||||||
| Sulfur services | 2,403 | 2,554 | 4,938 | 5,321 | |||||||||||||||||||
| Terminalling and storage | 7,036 | 4,249 | 11,604 | 10,026 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Operating expenses | 19,590 | 19,440 | 37,958 | 41,211 | |||||||||||||||||||
| Selling, general and administrative | 7,285 | 8,055 | 15,965 | 16,367 | |||||||||||||||||||
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)
(Unaudited)
(Dollars in thousands)
| Partners’ Capital (Deficit) | |||||||||||||||||||||||
| Common Limited | General Partner Amount | ||||||||||||||||||||||
| Units | Amount | Total | |||||||||||||||||||||
| Balances - January 1, 2020 | 38,863,389 | $ | (38,342) | $ | 2,146 | $ | (36,196) | ||||||||||||||||
| Net income | — | 6,480 | 132 | 6,612 | |||||||||||||||||||
| Issuance of common units, net | — | — | — | — | |||||||||||||||||||
| Issuance of restricted units | 81,000 | — | — | — | |||||||||||||||||||
| Forfeiture of restricted units | (84,134) | — | — | — | |||||||||||||||||||
| General partner contribution | — | — | — | — | |||||||||||||||||||
| Cash distributions | — | (4,825) | (98) | (4,923) | |||||||||||||||||||
| Unit-based compensation | — | 709 | — | 709 | |||||||||||||||||||
| Purchase of treasury units | (7,748) | (9) | — | (9) | |||||||||||||||||||
| Balances - June 30, 2020 | 38,852,507 | $ | (35,987) | $ | 2,180 | $ | (33,807) | ||||||||||||||||
| Balances - January 1, 2021 | 38,851,174 | $ | (48,776) | $ | 1,905 | $ | (46,871) | ||||||||||||||||
| Net loss | — | (4,019) | (82) | (4,101) | |||||||||||||||||||
| Issuance of restricted units | 42,168 | — | — | — | |||||||||||||||||||
| Forfeiture of restricted units | (83,436) | — | — | — | |||||||||||||||||||
| Cash distributions | — | (388) | (8) | (396) | |||||||||||||||||||
| Unit-based compensation | — | 288 | — | 288 | |||||||||||||||||||
| Purchase of treasury units | (7,156) | (17) | — | (17) | |||||||||||||||||||
| Balances - June 30, 2021 | 38,802,750 | $ | (52,912) | $ | 1,815 | $ | (51,097) | ||||||||||||||||
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
| Six Months Ended | |||||||||||
| June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (4,101) | $ | 6,612 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 28,917 | 30,582 | |||||||||
| Amortization of deferred debt issuance costs | 1,521 | 991 | |||||||||
| Amortization of premium on notes payable | — | (153) | |||||||||
| Deferred income tax expense | 758 | 1,018 | |||||||||
| Loss on sale of property, plant and equipment, net | 671 | 175 | |||||||||
| Gain on retirement of senior unsecured notes | — | (3,484) | |||||||||
| Derivative (income) loss | 884 | (1,463) | |||||||||
| Net cash received (paid) for commodity derivatives | (679) | 796 | |||||||||
| Unit-based compensation | 288 | 709 | |||||||||
| Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||||||
| Accounts and other receivables | (2,303) | 37,180 | |||||||||
| Inventories | (17,572) | (3,128) | |||||||||
| Due from affiliates | (5,812) | (1,060) | |||||||||
| Other current assets | 1,435 | (5,547) | |||||||||
| Trade and other accounts payable | 3,335 | (16,502) | |||||||||
| Product exchange payables | 327 | 811 | |||||||||
| Due to affiliates | 1,504 | (1,026) | |||||||||
| Income taxes payable | (248) | 26 | |||||||||
| Other accrued liabilities | (3,053) | (2,452) | |||||||||
| Change in other non-current assets and liabilities | 213 | 541 | |||||||||
| Net cash provided by operating activities | 6,085 | 44,626 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Payments for property, plant and equipment | (8,200) | (19,053) | |||||||||
| Payments for plant turnaround costs | (1,694) | (231) | |||||||||
| Proceeds from involuntary conversion of property, plant and equipment | — | 4,369 | |||||||||
| Proceeds from sale of property, plant and equipment | 133 | 1,768 | |||||||||
| Net cash used in investing activities | (9,761) | (13,147) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payments of long-term debt | (144,790) | (156,860) | |||||||||
| Payments under finance lease obligations | (2,591) | (3,222) | |||||||||
| Proceeds from long-term debt | 147,500 | 131,000 | |||||||||
| Purchase of treasury units | (17) | (9) | |||||||||
| Payment of debt issuance costs | (307) | (269) | |||||||||
| Cash distributions paid | (396) | (4,923) | |||||||||
| Net cash used in financing activities | (601) | (34,283) | |||||||||
| Net decrease in cash | (4,277) | (2,804) | |||||||||
| Cash at beginning of period | 4,958 | 2,856 | |||||||||
| Cash at end of period | $ | 681 | $ | 52 | |||||||
| Non-cash additions to property, plant and equipment | $ | 686 | $ | 1,276 | |||||||
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, 2021 and 2020
| Three Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands, except BBL per day) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Services | $ | 20,358 | $ | 21,436 | $ | (1,078) | (5) | % | |||||||||||||||
| Products | 25,166 | 25,540 | (374) | (1) | % | ||||||||||||||||||
| Total revenues | 45,524 | 46,976 | (1,452) | (3) | % | ||||||||||||||||||
| Cost of products sold | 20,759 | 22,697 | (1,938) | (9) | % | ||||||||||||||||||
| Operating expenses | 12,664 | 12,254 | 410 | 3 | % | ||||||||||||||||||
| Selling, general and administrative expenses | 1,468 | 1,398 | 70 | 5 | % | ||||||||||||||||||
| Depreciation and amortization | 6,996 | 7,272 | (276) | (4) | % | ||||||||||||||||||
| 3,637 | 3,355 | 282 | 8 | % | |||||||||||||||||||
| Other operating income (loss), net | 61 | (3) | 64 | 2,133 | % | ||||||||||||||||||
| Operating income | $ | 3,698 | $ | 3,352 | $ | 346 | 10 | % | |||||||||||||||
| 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, 2021 and 2020
| Six Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands, except BBL per day) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Services | $ | 40,317 | $ | 43,603 | $ | (3,286) | (8) | % | |||||||||||||||
| Products | 45,041 | 54,507 | (9,466) | (17) | % | ||||||||||||||||||
| Total revenues | 85,358 | 98,110 | (12,752) | (13) | % | ||||||||||||||||||
| Cost of products sold | 35,700 | 47,685 | (11,985) | (25) | % | ||||||||||||||||||
| Operating expenses | 25,457 | 25,205 | 252 | 1 | % | ||||||||||||||||||
| Selling, general and administrative expenses | 2,967 | 3,057 | (90) | (3) | % | ||||||||||||||||||
| Depreciation and amortization | 14,101 | 14,728 | (627) | (4) | % | ||||||||||||||||||
| 7,133 | 7,435 | (302) | (4) | % | |||||||||||||||||||
| Other operating loss, net | (5) | (3,054) | 3,049 | 100 | % | ||||||||||||||||||
| Operating income | $ | 7,128 | $ | 4,381 | $ | 2,747 | 63 | % | |||||||||||||||
| Shore-based throughput volumes (guaranteed minimum) (gallons) | 40,000 | 40,000 | — | — | % | ||||||||||||||||||
| Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) | 6,500 | 6,500 | — | — | % | ||||||||||||||||||
Transportation Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
| Three Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues | $ | 38,349 | $ | 35,259 | $ | 3,090 | 9 | % | |||||||||||||||
| Operating expenses | 31,485 | 28,331 | 3,154 | 11 | % | ||||||||||||||||||
| Selling, general and administrative expenses | 1,858 | 2,058 | (200) | (10) | % | ||||||||||||||||||
| Depreciation and amortization | 4,331 | 4,328 | 3 | — | % | ||||||||||||||||||
| 675 | 542 | 133 | 25 | % | |||||||||||||||||||
| Other operating income, net | 21 | 13 | 8 | 62 | % | ||||||||||||||||||
| Operating income | $ | 696 | $ | 555 | $ | 141 | 25 | % | |||||||||||||||
Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
| Six Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues | $ | 72,318 | $ | 80,433 | $ | (8,115) | (10) | % | |||||||||||||||
| Operating expenses | 60,989 | 63,493 | (2,504) | (4) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 3,658 | 4,193 | (535) | (13) | % | ||||||||||||||||||
| Depreciation and amortization | 8,329 | 8,608 | (279) | (3) | % | ||||||||||||||||||
| $ | (658) | $ | 4,139 | $ | (4,797) | (116) | % | ||||||||||||||||
| Other operating income (loss), net | 17 | (1,195) | 1,212 | 101 | % | ||||||||||||||||||
| Operating income (loss) | $ | (641) | $ | 2,944 | $ | (3,585) | (122) | % | |||||||||||||||
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
| Three Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Services | $ | 2,949 | $ | 2,914 | $ | 35 | 1 | % | |||||||||||||||
| Products | 35,337 | 30,506 | 4,831 | 16 | % | ||||||||||||||||||
| Total revenues | 38,286 | 33,420 | 4,866 | 15 | % | ||||||||||||||||||
| Cost of products sold | 25,397 | 18,601 | 6,796 | 37 | % | ||||||||||||||||||
| Operating expenses | 2,804 | 3,142 | (338) | (11) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 1,215 | 1,166 | 49 | 4 | % | ||||||||||||||||||
| Depreciation and amortization | 2,568 | 3,131 | (563) | (18) | % | ||||||||||||||||||
| 6,302 | 7,380 | (1,078) | (15) | % | |||||||||||||||||||
| Other operating income, net | 6 | 5 | 1 | 20 | % | ||||||||||||||||||
| Operating income | $ | 6,308 | $ | 7,385 | $ | (1,077) | (15) | % | |||||||||||||||
| Sulfur (long tons) | 146 | 166 | (20) | (12) | % | ||||||||||||||||||
| Fertilizer (long tons) | 84 | 91 | (7) | (8) | % | ||||||||||||||||||
| Total sulfur services volumes (long tons) | 230 | 257 | (27) | (11) | % | ||||||||||||||||||
Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
| Six Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Services | $ | 5,899 | $ | 5,829 | $ | 70 | 1 | % | |||||||||||||||
| Products | 67,222 | 55,927 | 11,295 | 20 | % | ||||||||||||||||||
| Total revenues | 73,121 | 61,756 | 11,365 | 18 | % | ||||||||||||||||||
| Cost of products sold | 47,820 | 35,405 | 12,415 | 35 | % | ||||||||||||||||||
| Operating expenses | 4,813 | 6,052 | (1,239) | (20) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 2,456 | 2,369 | 87 | 4 | % | ||||||||||||||||||
| Depreciation and amortization | 5,288 | 6,025 | (737) | (12) | % | ||||||||||||||||||
| 12,744 | 11,905 | 839 | 7 | % | |||||||||||||||||||
| Other operating income, net | 6 | 6,776 | (6,770) | (100) | % | ||||||||||||||||||
| Operating income | $ | 12,750 | $ | 18,681 | $ | (5,931) | (32) | % | |||||||||||||||
| Sulfur (long tons) | 219 | 349 | (130) | (37) | % | ||||||||||||||||||
| Fertilizer (long tons) | 179 | 165 | 14 | 8 | % | ||||||||||||||||||
| Total sulfur services volumes (long tons) | 398 | 514 | (116) | (23) | % | ||||||||||||||||||
Natural Gas Liquids Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
| Three Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Products Revenues | $ | 67,232 | $ | 30,300 | $ | 36,932 | 122 | % | |||||||||||||||
| Cost of products sold | 64,176 | 26,579 | 37,597 | 141 | % | ||||||||||||||||||
| Operating expenses | 1,061 | 1,150 | (89) | (8) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 697 | 930 | (233) | (25) | % | ||||||||||||||||||
| Depreciation and amortization | 588 | 612 | (24) | (4) | % | ||||||||||||||||||
| 710 | 1,029 | (319) | (31) | % | |||||||||||||||||||
| Other operating income, net | 1 | — | 1 | ||||||||||||||||||||
| Operating income | $ | 711 | $ | 1,029 | $ | (318) | (31) | % | |||||||||||||||
| NGL sales volumes (Bbls) | 1,259 | 1,698 | (439) | (26) | % | ||||||||||||||||||
Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
| Six Months Ended June 30, | Variance | Percent Change | |||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Products Revenues | $ | 165,317 | $ | 112,515 | $ | 52,802 | 47 | % | |||||||||||||||
| Cost of products sold | 146,688 | 100,839 | 45,849 | 45 | % | ||||||||||||||||||
| Operating expenses | 2,056 | 2,089 | (33) | (2) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 2,904 | 2,077 | 827 | 40 | % | ||||||||||||||||||
| Depreciation and amortization | 1,199 | 1,221 | (22) | (2) | % | ||||||||||||||||||
| 12,470 | 6,289 | 6,181 | 98 | % | |||||||||||||||||||
| Other operating loss, net | (689) | (2) | (687) | (34,350) | % | ||||||||||||||||||
| Operating income | $ | 11,781 | $ | 6,287 | $ | 5,494 | 87 | % | |||||||||||||||
| NGL sales volumes (Bbls) | 3,404 | 4,143 | (739) | (18) | % | ||||||||||||||||||
Unallocated Selling, General and Administrative Expenses
Comparative Results of Operations for the Three and Six Months Ended June 30, 2021 and 2020
| Three Months Ended June 30, | Variance | Percent Change | Six Months Ended June 30, | Variance | Percent Change | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
| Unallocated selling, general and administrative expenses | $ | 3,780 | $ | 4,361 | $ | (581) | (13) | % | $ | 7,699 | $ | 8,733 | $ | (1,034) | (12) | % | |||||||||||||||||||||||||||||||
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 six months ended June 30, 2021 and 2020.
Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||
| Net income (loss) | $ | (6,612) | $ | (2,203) | $ | (4,101) | $ | 6,612 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Interest expense, net | 13,309 | 9,377 | 26,262 | 19,302 | |||||||||||||||||||
| Income tax expense | 935 | 790 | 1,157 | 1,137 | |||||||||||||||||||
| Depreciation and amortization | 14,483 | 15,343 | 28,917 | 30,582 | |||||||||||||||||||
| EBITDA | 22,115 | 23,307 | 52,235 | 57,633 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| (Gain) loss on sale of property, plant and equipment, net | (89) | (15) | 671 | 175 | |||||||||||||||||||
| Unrealized mark-to-market on commodity derivatives | 424 | — | 205 | (669) | |||||||||||||||||||
| Lower of cost or market adjustments | — | — | — | 335 | |||||||||||||||||||
| Gain on repurchase of senior unsecured notes | — | — | — | (3,484) | |||||||||||||||||||
| Unit-based compensation | 48 | 363 | 288 | 709 | |||||||||||||||||||
| Adjusted EBITDA | 22,498 | 23,905 | 53,399 | 54,949 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Interest expense, net | (13,309) | (9,377) | (26,262) | (19,302) | |||||||||||||||||||
| Income tax expense | (935) | (790) | (1,157) | (1,137) | |||||||||||||||||||
| Amortization of debt premium | — | (76) | — | (153) | |||||||||||||||||||
| Amortization of deferred debt issuance costs | 766 | 499 | 1,521 | 991 | |||||||||||||||||||
| Deferred income tax expense | 683 | 732 | 758 | 1,018 | |||||||||||||||||||
| Payments for plant turnaround costs | (20) | (81) | (1,694) | (231) | |||||||||||||||||||
| Maintenance capital expenditures | (2,370) | (2,280) | (6,441) | (5,306) | |||||||||||||||||||
| Distributable Cash Flow | $ | 7,313 | $ | 12,532 | $ | 20,124 | $ | 30,829 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Expansion capital expenditures | $ | (1,147) | $ | (2,585) | $ | (1,977) | $ | (7,931) | |||||||||||||||
| Principal payments under finance lease obligations | (160) | (1,358) | (2,591) | (3,222) | |||||||||||||||||||
| Adjusted Free Cash Flow | $ | 6,006 | $ | 8,589 | $ | 15,556 | $ | 19,676 | |||||||||||||||