Martin Midstream Partners Reports 2009 Second Quarter Financial Results
- Press Release
- Source: Martin Midstream Partners L.P.
- On 4:00 pm EDT, Wednesday August 5, 2009
KILGORE, Texas, Aug. 5, 2009 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP - News) announced today its financial results for the second quarter ended June 30, 2009.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| MMLP | 26.59 | -0.56 |
MMLP reported net income for the second quarter of 2009 of $7.9 million, or $0.49 per limited partner unit. This compared to net income for the second quarter of 2008 of $4.3 million, or $0.25 per limited partner unit. Revenues for the second quarter of 2009 were $128.3 million compared to $308.1 million for the second quarter of 2008. Revenues were significantly impacted by decreasing commodity prices during the period. Second quarter 2009 net income was positively impacted by $5.1 million, or $0.35 per limited partner unit, in gain on the sale of property, plant and equipment. Second quarter 2009 net income was negatively impacted by $1.8 million, or $0.12 per limited partner unit, in non-cash derivatives net losses from certain commodity and interest rate hedges that did not qualify for hedge accounting.
MMLP reported net income for the six months ended June 30, 2009 of $12.8 million, or $0.76 per limited partner unit. This compared to net income for the six months ended June 30, 2008 of $12.3 million, or $0.76 per limited partner unit. Revenues for the six months ended June 30, 2009 were $285.2 million compared to $621.2 million for the six months ended June 30, 2008. Revenues were significantly impacted by decreasing commodity prices during the period. For the six months ended June 30, 2009 net income was positively impacted by $5.1 million, or $0.35 per limited partner unit, in gain on the sale of property, plant and equipment. For the six months ended June 30, 2009 net income was negatively impacted by $2.9 million, or $0.20 per limited partner unit, in non-cash derivatives net losses from certain commodity and interest rate hedges that did not qualify for hedge accounting.
The Company's distributable cash flow for the second quarter of 2009 was $10.7 million. The Company's distributable cash flow for the six months ended June 30, 2009 was $24.6 million. Distributable cash flow was negatively impacted by the decrease in revenues noted above and a decrease in equity in earnings from unconsolidated entities resulting from the shutdown of the Company's Waskom plant in order to accommodate plant and fractionator expansion during the second quarter of 2009. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information." The Company 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.
MMLP's second quarter 2009 financial statements are included with this press release. These financial statements should be read in conjunction with the information contained in the Company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 5, 2009.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said, "Overall, I am pleased with our second quarter performance in the face of a tough economic environment. Our Terminalling and Sulfur Services segments exceeded expectations primarily due to strong asphalt volumes through our terminals and higher fertilizer margins, respectively. In addition, we experienced continued strength in unit margins in our propane and NGL businesses. As expected, however, our performance was down relative to the first quarter primarily due to downtime at our Waskom plant and underutilization of our offshore marine equipment. Downtime associated with our Waskom plant was primarily due to the expansion of processing capacity from 265 MMcfd to 285 MMcfd and fractionation capacity from 12,500 barrels per day to 14,500 barrels per day. Despite timing the expansions to coincide with scheduled turnarounds of two of Waskom's major NGL customers, various parts of the plant were down approximately 5-6 weeks. Looking ahead, we expect our overall business to improve slightly in the third quarter and fourth quarters as we expect to benefit from normalized volumes at our Waskom plant, improved utilization of our offshore marine equipment, as well as continued strength in our Terminalling and Sulfur Services segments."
Investors' Conference Call
An investors' conference call to review the second quarter results will be held on Thursday, August 6, 2009 at 8:00 a.m. Central Time. The conference call can be accessed by calling 888-617-5714. An audio replay of the conference call will be available by calling 888-203-1112 from 9:00 a.m. Central Time on August 6, 2009 through 11:59 p.m. Central Time on August 20, 2009. The access code for the conference call and the audio replay is: Conference ID No. 3365649. The audio replay of the conference call will also be archived on the Company's website at www.martinmidstream.com.
About Martin Midstream Partners
Martin Midstream Partners 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 and storage services for petroleum products and by-products; natural gas services; marine transportation services for petroleum products and by-products; and sulfur and sulfur-based products processing, manufacturing, marketing and distribution.
Additional information concerning the Company is available on the Company's website at www.martinmidstream.com.
Forward-Looking Statements
Statements about Martin Midstream Partners' 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 MMLP 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 Company's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners 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
MMLP reports its financial results in accordance with generally accepted accounting principles. However, from time to time, MMLP uses certain non-GAAP financial measures such as distributable cash flow because MMLP'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 MMLP'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 generally accepted accounting principles (GAAP) in the United States. 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 Securities and Exchange Commission. Accordingly, MMLP 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 Company 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. MMLP calculates distributable cash flow as follows: net income (as reported in Statements of Operations), plus depreciation and amortization, less gain on the sale of property, plant and equipment, plus amortization of deferred debt issuance costs, less deferred taxes (as reported in its Statements of Cash Flows), plus distribution equivalents from unconsolidated entities (as described below), plus invested cash in unconsolidated entities (as described below), less equity in earnings of unconsolidated entities (as reported in Statements of Operations), plus non-cash mark-to-market on derivatives (as reported in Statements of Cash Flows), less maintenance capital expenditures (as reported under the caption "Liquidity and Capital Resources" in MMLP's Quarterly Report on Form 10-Q filed on August 5, 2009), plus unit-based compensation (as reported in Statements of Capital).
MMLP's distribution equivalents from unconsolidated entities is calculated as distributions from unconsolidated entities (as reported in Statements of Cash Flows), plus return of investments from unconsolidated entities (as reported in Statements of Cash Flows), plus distributions in-kind from equity investments (as reported in Statements of Cash Flows). For the quarter ended June 30, 2009, MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.0 million, $0.2 million, and $1.0 million, respectively. For the six months ended June 30, 2009, MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.7 million, $0.4 million, and $2.3 million, respectively.
MMLP's invested cash in unconsolidated entities is calculated as distributions from (contributions to) unconsolidated entities for operations (as reported in Statements of Cash Flows), plus expansion capital expenditures in unconsolidated entities (as reported under the caption "Liquidity and Capital Resources" in MMLP's Quarterly Report on Form 10-Q filed on August 5, 2009). For the quarter ended June 30, 2009, MMLP's distributions from (contributions to) unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were ($1.6) million and $2.1 million, respectively. For the six months ended June 30, 2009, MMLP's distributions from (contribution to) unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were ($1.0) million and $2.3 million, respectively.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, Dec. 31,
2009 2008
(Unaudited) (Audited)
---------- ----------
Assets
Cash $ 9,573 $ 7,983
Accounts and other receivables, less allowance
for doubtful accounts of $754 and $481 53,425 68,117
Product exchange receivables 7,603 6,924
Inventories 34,563 42,461
Due from affiliates 7,003 555
Fair value of derivatives 2,470 3,623
Other current assets 834 1,079
---------- ----------
Total current assets 115,471 130,742
---------- ----------
Property, plant, and equipment, at cost 532,206 537,381
Accumulated depreciation (138,783) (125,256)
---------- ----------
Property, plant and equipment, net 393,423 412,125
---------- ----------
Goodwill 37,268 37,405
Investment in unconsolidated entities 80,613 79,843
Fair value of derivatives 487 1,469
Other assets, net 6,219 7,332
---------- ----------
$ 633,481 $ 668,916
========== ==========
Liabilities and Capital
Trade and other accounts payable $ 58,483 $ 87,382
Product exchange payables 17,388 10,924
Due to affiliates 11,765 13,420
Income taxes payable 414 414
Fair value of derivatives 8,156 6,478
Other accrued liabilities 3,108 6,077
---------- ----------
Total current liabilities 99,314 124,695
Long-term debt 297,200 295,000
Deferred income taxes 8,324 8,538
Fair value of derivatives 1,961 4,302
Other long-term obligations 1,471 1,667
---------- ----------
Total liabilities 408,270 434,202
---------- ----------
Partners' capital 228,744 239,649
Accumulated other comprehensive loss (3,533) (4,935)
---------- ----------
Total partners' capital 225,211 234,714
---------- ----------
Commitments and contingencies $ 633,481 $ 668,916
========== ==========
These financial statements should be read in conjunction with the
financial statements and the accompanying notes and other
information included in MMLP's Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on August 5,
2009.
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,
------------------------- -------------------------
2009 2008 2009 2008
------------ ------------ ------------ ------------
Revenues:
Terminalling and
storage $ 9,982 $ 9,900 $ 19,581 $ 17,820
Marine
transportation 15,101 19,309 31,437 35,712
Product sales:
Natural gas
services 74,822 182,025 165,688 389,117
Sulfur
services 19,343 86,027 45,929 156,252
Terminalling
and storage 9,020 10,882 22,539 22,258
------------ ------------ ------------ ------------
103,185 278,934 234,156 567,627
------------ ------------ ------------ ------------
Total revenues 128,268 308,143 285,174 621,159
------------ ------------ ------------ ------------
Costs and
expenses:
Cost of products
sold:
Natural gas
services 69,668 180,324 152,335 383,174
Sulfur
services 8,591 75,964 27,026 132,304
Terminalling
and storage 7,918 10,270 20,023 20,191
------------ ------------ ------------ ------------
86,177 266,558 199,384 535,669
Expenses:
Operating
expenses 23,519 26,195 47,407 50,412
Selling,
general and
administrative 4,087 3,467 8,266 6,946
Depreciation
and
amortization 8,511 7,614 16,916 14,954
------------ ------------ ------------ ------------
Total costs
and expenses 122,294 303,834 271,973 607,981
------------ ------------ ------------ ------------
Other operating
income (loss) 5,073 (14) 5,073 126
------------ ------------ ------------ ------------
Operating
income 11,047 4,295 18,274 13,304
------------ ------------ ------------ ------------
Other income
(expense):
Equity in
earnings of
unconsolidated
entities 1,028 4,372 3,088 7,882
Interest expense (4,183) (3,895) (8,852) (8,638)
Other, net 49 67 71 247
------------ ------------ ------------ ------------
Total other
income
(expense) (3,106) 544 (5,693) (509)
------------ ------------ ------------ ------------
Net income
before taxes 7,941 4,839 12,581 12,795
Income tax benefit
(expense) (16) (522) 214 (461)
------------ ------------ ------------ ------------
Net income $ 7,925 $ 4,317 $ 12,795 $ 12,334
============ ============ ============ ============
General partner's
interest in net
income $ 868 $ 665 $ 1,675 $ 1,316
Limited partners'
interest in net
income $ 7,057 $ 3,652 $ 11,120 $ 11,018
Net income per
limited partner
unit-basic and
diluted $ 0.49 $ 0.25 $ 0.76 $ 0.76
Weighted average
limited partner
units - basic 14,532,826 14,532,826 14,532,826 14,532,826
Weighted average
limited partner
units - diluted 14,537,737 14,535,779 14,537,119 14,535,564
These financial statements should be read in conjunction with the
financial statements and the accompanying notes and other
information included in MMLP's Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on August 5,
2009.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
Partners' Capital
--------------------------------------------------
General
Common Subordinated Partner
--------------------- ------------------- --------
Units Amount Units Amount Amount
----------- --------- ---------- -------- --------
Balances -
January 1, 2008 12,837,480 $244,520 1,701,346 $(6,022) $ 4,112
Net income
-- 9,958 -- 1,060 1,316
Cash distributions
-- (18,229) -- (2,416) (1,535)
Unit-based
compensation
-- 34 -- -- --
Adjustment in fair
value of
derivatives -- -- -- -- --
----------- --------- ---------- -------- --------
Balances -
June 30, 2008 12,837,480 $236,283 1,701,346 $(7,378) $ 3,893
=========== ========= ========== ======== ========
Balances -
January 1, 2009 13,688,152 $239,333 850,674 $(3,688) $ 4,004
Net income
-- 10,470 -- 650 1,675
Cash distributions -- (20,532) -- (1,276) (1,923)
Unit-based
compensation -- 31 -- -- --
Adjustment in fair
value of
derivatives -- -- -- -- --
----------- --------- ---------- -------- --------
Balances -
June 30, 2009 13,688,152 $229,302 850,674 $(4,314) $ 3,756
=========== ========= ========== ======== ========
Accumulated
Other
Comprehensive
Income (Loss)
--------------
Amount Total
-------------- ----------
Balances - January 1, 2008 $ (6,762) $ 235,848
Net income -- 12,334
Cash distributions -- (22,180)
Unit-based compensation -- 34
Adjustment in fair value of
derivatives (9,539) (9,539)
-------------- ----------
Balances - June 30, 2008 $ (16,301) $ 216,497
============== ==========
Balances - January 1, 2009 $ (4,935) $ 234,714
Net income -- 12,795
Cash distributions -- (23,731)
Unit-based compensation -- 31
Adjustment in fair value of
derivatives 1,402 1,402
-------------- ----------
Balances - June 30, 2009 $ (3,533) $ 225,211
============== ==========
These financial statements should be read in conjunction with the
financial statements and the accompanying notes and other
information included in MMLP's Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on August 5,
2009.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Six Months Ended
June 30,
---------------------
2009 2008
--------- ----------
Cash flows from operating activities:
Net income $ 12,795 $ 12,334
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 16,916 14,954
Amortization of deferred debt issuance
costs 562 559
Deferred taxes (214) (155)
Gain on sale of property, plant and
equipment (5,073) (126)
Equity in earnings of unconsolidated
entities (3,088) (7,882)
Distributions from unconsolidated entities 650 --
Distributions in-kind from equity
investments 2,316 5,621
Non-cash mark-to-market on derivatives 2,874 5,195
Other 31 34
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables 14,661 (22,959)
Product exchange receivables (679) (31,236)
Inventories 7,898 (50,034)
Due from affiliates (2,392) (6,011)
Other current assets 245 (6,509)
Trade and other accounts payable (29,099) 64,546
Product exchange payables 6,464 46,302
Due to affiliates 7,789 2,595
Income taxes payable -- 69
Other accrued liabilities (2,969) (34)
Change in other non-current assets and
liabilities (100) (224)
--------- ----------
Net cash provided by operating
activities 29,587 27,039
--------- ----------
Cash flows from investing activities:
Payments for property, plant and equipment (25,428) (52,756)
Acquisitions, net of cash acquired -- (5,983)
Proceeds from sale of property, plant and
equipment 19,610 404
Return of investments from unconsolidated
entities 380 600
Distributions from (contributions to)
unconsolidated entities for operations (1,028) 75
--------- ----------
Net cash used in investing activities (6,466) (57,660)
--------- ----------
Cash flows from financing activities:
Payments of long-term debt (56,900) (100,791)
Proceeds from long-term debt 59,100 160,770
Payments of debt issuance costs -- (18)
Cash distributions paid (23,731) (22,180)
--------- ----------
Net cash provided by (used in)
financing activities (21,531) 37,781
--------- ----------
Net increase in cash 1,590 7,160
Cash at beginning of period 7,983 4,113
--------- ----------
Cash at end of period $ 9,573 $ 11,273
========= ==========
These financial statements should be read in conjunction with the
financial statements and the accompanying notes and other information
included in MMLP's Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 5, 2009
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)
Three Six
Months Months
Ended Ended
June 30, June 30,
2009 2009
--------- ---------
Net income $ 7,925 $ 12,795
Adjustments to reconcile net income to
distributable cash flow:
Depreciation and amortization 8,511 16,916
Gain on sale of property, plant and equipment (5,073) (5,073)
Amortization of deferred debt issuance costs 281 562
Deferred taxes (119) (214)
Distribution equivalents from unconsolidated
entities(1) 1,173 3,346
Invested cash in unconsolidated entities(2) 430 1,313
Equity in earnings of unconsolidated entities (1,028) (3,088)
Non-cash mark-to-market on derivatives 1,742 2,874
Maintenance capital expenditures (3,182) (4,897)
Unit-based compensation 12 31
--------- ---------
Distributable cash flow $ 10,672 $ 24,565
========= =========
======================================================================
1 Distribution equivalents from
unconsolidated entities:
Distributions from
unconsolidated entities $ -- $ 650
Return of investments from
unconsolidated entities 160 380
Distributions in-kind from equity
investments 1,013 2,316
--------- ---------
Distributions equivalents from
unconsolidated entities $ 1,173 $ 3,346
========= =========
2 Invested cash in unconsolidated
entities:
Distributions from (contributions
to) unconsolidated entities for
operations $ (1,668) $ (1,028)
Expansion capital expenditures in
unconsolidated entities 2,098 2,341
--------- ---------
Invested cash in
unconsolidated entities $ 430 $ 1,313
========= =========
Contact:
Martin Midstream GP LLC
Robert D. Bondurant, Executive Vice President and Chief
Financial Officer
(903) 983-6200
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