U.S. markets closed
  • S&P 500

    4,246.44
    +21.65 (+0.51%)
     
  • Dow 30

    33,945.58
    +68.61 (+0.20%)
     
  • Nasdaq

    14,253.27
    +111.79 (+0.79%)
     
  • Russell 2000

    2,295.95
    +9.85 (+0.43%)
     
  • Crude Oil

    73.08
    -0.58 (-0.79%)
     
  • Gold

    1,778.90
    -4.00 (-0.22%)
     
  • Silver

    25.83
    -0.19 (-0.73%)
     
  • EUR/USD

    1.1943
    +0.0019 (+0.16%)
     
  • 10-Yr Bond

    1.4720
    -0.0120 (-0.81%)
     
  • GBP/USD

    1.3947
    +0.0014 (+0.10%)
     
  • USD/JPY

    110.6470
    +0.3490 (+0.32%)
     
  • BTC-USD

    32,291.90
    +688.48 (+2.18%)
     
  • CMC Crypto 200

    762.59
    -31.74 (-4.00%)
     
  • FTSE 100

    7,090.01
    +27.72 (+0.39%)
     
  • Nikkei 225

    28,884.13
    +873.20 (+3.12%)
     

Martin Midstream Partners Announces Strategic Initiatives

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Reports First Quarter 2019 Financial Results and Cash Distribution

KILGORE, Texas, April 24, 2019 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (MMLP) (the "Partnership") announced today strategic initiatives designed to strengthen the balance sheet by reducing leverage and allowing the Partnership to retain earnings to fund growth opportunities. These initiatives consist of:

  • The previously announced marketing of the Partnership’s gas storage assets.

  • The active negotiation of the sale of certain non-core assets and/or businesses.

  • The announcement of the Partnership’s quarterly cash distribution of $0.25 per unit or $1.00 per unit on an annual basis.

"As we have stated for multiple quarters, the Partnership is committed to strengthening our balance sheet, reducing leverage and increasing our coverage ratio. The cash distribution announcement today, while difficult, assists us as we move forward toward those goals", said Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership. "The decision was not made lightly or without considerable debate, as I, as well as the other members of our Board and Executive Management team, realize the implications of such a decision for our unitholders and our Partnership. However, this decision allows us to retain approximately $39.3 million annually enhancing the Partnership’s financial flexibility to pursue desirable growth opportunities that build long-term value for our unitholders."

The Partnership also announced today its financial results for the first quarter of 2019. The Partnership reported a net loss for the first quarter 2019 of $3.7 million, a loss of $0.09 per limited partner unit. The Partnership had a net income from continuing operations for the first quarter 2018 of $13.5 million, or $0.29 per limited partner unit.

"In the first quarter of 2019, the Partnership earned adjusted EBITDA of $30.8 million, which was below guidance by approximately $7.1 million," said Mr. Martin. "Through most of the quarter we experienced extreme weather patterns throughout our geographic footprint that negatively impacted the majority of our business segments.

"Beginning with Sulfur Services, the segment missed guidance by approximately $3.0 million as the fertilizer business experienced weak sales activity up through mid-March as farmers were not able to plant acreage due to weather related disruptions affecting field conditions. Fertilizer activity did increase in late March and we believe will continue to accelerate into the second quarter as the agricultural market deals with a shorter planting season. Within the Natural Gas Services segment, warm winter weather drove propane sales volumes lower than estimated and the weak butane pricing environment that began in the fourth quarter of 2018 carried over into the first quarter of 2019, contributing to an approximate $2.8 million miss for the segment when compared to guidance. And finally, our Transportation and Terminalling and Storage segments modestly missed guidance by approximately $0.6 million and $0.7 million, respectively.

"Based on this performance, the Partnership's distributable cash flow from continuing operations for the first quarter of 2019 was approximately $9.6 million. Distributable cash flow was also negatively affected by approximately $1.9 million of maintenance capital expenditures planned for the second quarter of 2019 that were accelerated into the first quarter for scheduling purposes."

Revenues for the first quarter 2019 were $251.0 million compared to the first quarter 2018 of $307.1 million.

The Partnership had net income from discontinued operations related to its previously owned investment in West Texas LPG Pipeline for the three months ended March 31, 2018 of $1.5 million, or $0.04 per limited partner unit. Distributable cash flow and adjusted EBITDA from discontinued operations were $1.4 million for the three months ended March 31, 2018.

Distributable cash flow, distributable cash flow from discontinued operations, EBITDA, adjusted EBITDA, and adjusted EBITDA from discontinued operations are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three months ended March 31, 2019 and certain prior periods. These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on April 26, 2019.

An attachment accompanying this announcement is attached to this press release at http://ml.globenewswire.com/Resource/Download/e3a94d3c-e0a3-423e-be4d-89994d115e51.

Investors' Conference Call

A conference call to review the first quarter results will be held on Thursday, April 25, 2019 at 8:00 a.m. Central Time. The live conference call will be available by calling (877) 878-2695. For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 7797871. An archive of the replay will be on Martin Midstream Partners’ website at www.MMLP.com.

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: (1) natural gas services, including liquids transportation and distribution services and natural gas storage; (2) terminalling, storage and packaging services for petroleum products and by-products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) transportation services for petroleum products and by-products.

Forward-Looking Statements

Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Partnership's control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA from Discontinued Operations. Certain items excluded from EBITDA, adjusted EBITDA, and adjusted EBITDA from discontinued operations are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA, adjusted EBITDA, and adjusted EBITDA from discontinued operations because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.

Distributable Cash Flow and Distributable Cash Flow from Discontinued Operations. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

EBITDA, adjusted EBITDA, adjusted EBITDA from discontinued operations, distributable cash flow, and distributable cash flow from discontinued operations, should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Additional information concerning the Partnership is available on the Partnership's website at www.MMLP.com or by contacting:

Sharon Taylor - Head of Investor Relations
(877) 256-6644




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)

March 31,
2019

December 31,
20181

(Unaudited)

(Unaudited)

Assets

Cash

$

227

$

300

Accounts and other receivables, less allowance for doubtful accounts of $675 and $576, respectively

77,420

90,757

Product exchange receivables

181

166

Inventories (Note 6)

70,541

86,207

Due from affiliates

27,035

18,845

Fair value of derivatives (Note 10)

150

4

Other current assets

7,135

6,106

Assets held for sale (Note 4)

5,502

5,652

Total current assets

188,191

208,037

Property, plant and equipment, at cost

1,311,020

1,311,573

Accumulated depreciation

(498,138

)

(487,840

)

Property, plant and equipment, net

812,882

823,733

Goodwill

17,785

17,785

Right-of-use assets (Note 9)

28,109

Deferred income taxes, net (Note 19)

24,412

Other assets, net (Note 10)

23,689

24,073

Total assets

$

1,095,068

$

1,073,628

Liabilities and Partners’ Capital

Current installments of long-term debt and finance lease obligations (Notes 8 and 9)

$

406,650

$

5,409

Trade and other accounts payable

76,488

65,723

Product exchange payables

14,234

13,237

Due to affiliates

4,103

2,135

Income taxes payable

989

445

Other accrued liabilities (Note 10)

22,150

24,802

Total current liabilities

524,614

111,751

Long-term debt and finance lease obligations, net (Notes 8 and 9)

377,976

662,731

Operating lease liabilities (Note 9)

19,734

Other long-term obligations

8,953

10,714

Total liabilities

931,277

785,196

Commitments and contingencies (Note 16)

Partners’ capital (Note 12)

163,791

288,432

Total partners’ capital

163,791

288,432

Total liabilities and partners' capital

$

1,095,068

$

1,073,628

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to Martin Transport, Inc. ("MTI") acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.


MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

Three Months Ended

March 31,

2019

20181

Revenues:

Terminalling and storage *

$

23,104

$

24,047

Transportation *

37,795

34,359

Natural gas services*

10,934

15,356

Sulfur services

2,859

2,787

Product sales: *

Natural gas services

116,474

159,162

Sulfur services

28,734

34,900

Terminalling and storage

31,067

36,463

176,275

230,525

Total revenues

250,967

307,074

Costs and expenses:

Cost of products sold: (excluding depreciation and amortization)

Natural gas services *

106,190

138,638

Sulfur services *

19,696

22,218

Terminalling and storage *

26,871

31,980

152,757

192,836

Expenses:

Operating expenses *

56,656

56,934

Selling, general and administrative *

11,144

10,939

Depreciation and amortization

18,982

19,990

Total costs and expenses

239,539

280,699

Other operating loss

(720

)

8

Operating income (loss)

10,708

26,383

Other income (expense):

Interest expense, net

(13,671

)

(12,730

)

Other, net

3

Total other expense

(13,668

)

(12,730

)

Net income (loss) before taxes

(2,960

)

13,653

Income tax expense

(696

)

(149

)

Income (loss) from continuing operations

(3,656

)

13,504

Income from discontinued operations, net of income taxes

1,532

Net income (loss)

(3,656

)

15,036

Less general partner's interest in net (income) loss

73

(256

)

Less pre-acquisition (income) allocated to the general partner

(2,218

)

Less (income) loss allocable to unvested restricted units

2

(8

)

Limited partners' interest in net income (loss)

$

(3,581

)

$

12,554

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 April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

*Related Party Transactions Shown Below

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

*Related Party Transactions Included Above

Three Months Ended

March 31,

2019

20181

Revenues:*

Terminalling and storage

$

18,972

$

20,008

Transportation

5,643

6,693

Product Sales

421

624

Costs and expenses:*

Cost of products sold: (excluding depreciation and amortization)

Sulfur services

2,574

2,848

Terminalling and storage

5,909

5,579

Expenses:

Operating expenses

22,536

23,088

Selling, general and administrative

8,535

7,926

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 April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

Three Months Ended

March 31,

2019

20181

Allocation of net income (loss) attributable to:

Limited partner interest:

Continuing operations

$

(3,581

)

$

11,054

Discontinued operations

1,500

$

(3,581

)

$

12,554

General partner interest:

Continuing operations

$

(73

)

$

225

Discontinued operations

31

$

(73

)

$

256

Net income (loss) per unit attributable to limited partners:

Basic:

Continuing operations

$

(0.09

)

$

0.29

Discontinued operations

0.04

$

(0.09

)

$

0.33

Weighted average limited partner units - basic

38,682

38,621

Diluted:

Continuing operations

$

(0.09

)

$

0.29

Discontinued operations

0.03

$

(0.09

)

$

0.32

Weighted average limited partner units - diluted

38,682

38,630

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 April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.


MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Dollars in thousands)

Partners’ Capital

Parent Net
Investment1

Common Limited

General
Partner
Amount

Units

Amount

Total

Balances - January 1, 2018

$

24,240

38,444,612

$

290,927

$

7,314

$

322,481

Net income

2,218

12,562

256

15,036

Issuance of common units, net

(101

)

(101

)

Issuance of restricted units

633,425

Forfeiture of restricted units

(7,000

)

Cash distributions

(19,213

)

(392

)

(19,605

)

Deemed distribution to Martin Resource Management
Corporation

(2,342

)

(2,342

)

Unit-based compensation

132

132

Purchase of treasury units

(18,800

)

(273

)

(273

)

Excess purchase price over carrying value of acquired
assets

(26

)

(26

)

Balances - March 31, 2018

$

24,116

39,052,237

$

284,008

$

7,178

$

315,302

Balances - January 1, 2019

$

23,720

39,032,237

$

258,085

$

6,627

$

288,432

Net loss

(3,583

)

(73

)

(3,656

)

Issuance of restricted units

16,944

Forfeiture of restricted units

(118,087

)

Cash distributions

(19,221

)

(392

)

(19,613

)

Unit-based compensation

352

352

Excess purchase price over carrying value of acquired assets

(102,393

)

(102,393

)

Deferred taxes on acquired assets and liabilities

24,781

24,781

Contribution to parent

(23,720

)

(23,720

)

Purchase of treasury units

(31,504

)

(392

)

(392

)

Balances - March 31, 2019

$

38,899,590

$

157,629

$

6,162

$

163,791

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 April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.


MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)

Three Months Ended

March 31,

2019

20181

Cash flows from operating activities:

Net income (loss)

$

(3,656

)

$

15,036

Less: Income from discontinued operations, net of income taxes

(1,532

)

Net income (loss) from continuing operations

(3,656

)

13,504

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

18,982

19,990

Amortization of deferred debt issuance costs

895

819

Amortization of premium on notes payable

(77

)

(77

)

Deferred taxes

369

Loss on sale of property, plant and equipment

720

(8

)

Derivative loss

239

(2,470

)

Net cash received (paid) for commodity derivatives

(385

)

2,316

Unit-based compensation

352

132

Change in current assets and liabilities, excluding effects of acquisitions and dispositions:

Accounts and other receivables

13,335

22,120

Product exchange receivables

(15

)

(46

)

Inventories

15,665

23,306

Due from affiliates

(7,384

)

(1,844

)

Other current assets

(250

)

(931

)

Trade and other accounts payable

10,933

(2,711

)

Product exchange payables

997

(1,551

)

Due to affiliates

1,162

(2,181

)

Income taxes payable

544

149

Other accrued liabilities

(11,038

)

(13,234

)

Change in other non-current assets and liabilities

(785

)

609

Net cash provided by continuing operating activities

40,603

57,892

Net cash provided by discontinued operating activities

1,437

Net cash provided by operating activities

40,603

59,329

Cash flows from investing activities:

Payments for property, plant and equipment

(6,973

)

(16,557

)

Acquisitions

(23,720

)

Payments for plant turnaround costs

(3,827

)

Proceeds from sale of property, plant and equipment

574

(32

)

Net cash used in continuing investing activities

(33,946

)

(16,589

)

Net cash used in discontinuing investing activities

(1,739

)

Net cash used in investing activities

(33,946

)

(18,328

)

Cash flows from financing activities:

Payments of long-term debt and finance lease obligations

(89,255

)

(101,261

)

Proceeds from long-term debt

205,000

84,000

Proceeds from issuance of common units, net of issuance related costs

(101

)

Purchase of treasury units

(392

)

(273

)

Deemed distribution to Martin Resource Management Corporation

(2,342

)

Payment of debt issuance costs

(77

)

(1,236

)

Excess purchase price over carrying value of acquired assets

(102,393

)

(26

)

Cash distributions paid

(19,613

)

(19,605

)

Net cash used in financing activities

(6,730

)

(40,844

)

Net increase (decrease) in cash

(73

)

157

Cash at beginning of period

300

89

Cash at end of period

$

227

$

246

Non-cash additions to property, plant and equipment

$

2,001

$

1,905

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 April 26, 2019.

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.


MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)


Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended March 31, 2019 and 2018

Three Months Ended
March 31,

Variance

Percent
Change

2019

2018

(In thousands, except BBL per day)

Revenues:

Services

$

24,800

$

25,503

$

(703

)

(3

)%

Products

31,092

36,480

(5,388

)

(15

)%

Total revenues

55,892

61,983

(6,091

)

(10

)%

Cost of products sold

28,277

33,502

(5,225

)

(16

)%

Operating expenses

13,353

13,447

(94

)

(1

)%

Selling, general and administrative expenses

1,349

1,256

93

7

%

Depreciation and amortization

7,837

10,159

(2,322

)

(23

)%

5,076

3,619

1,457

40

%

Other operating income

10

10

Operating income

$

5,086

$

3,619

$

1,467

41

%

Shore-based throughput volumes (guaranteed minimum) (gallons)

20,000

20,000

%

Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)

6,500

6,500

%


Natural Gas Services Segment

Comparative Results of Operations for the Three Months Ended March 31, 2019 and 2018

Three Months Ended
March 31,

Variance

Percent
Change

2019

2018

(In thousands)

Revenues:

Services

$

10,934

$

15,356

$

(4,422

)

(29

)%

Products

116,474

159,163

(42,689

)

(27

)%

Total revenues

127,408

174,519

(47,111

)

(27

)%

Cost of products sold

111,309

143,748

(32,439

)

(23

)%

Operating expenses

6,513

5,780

733

13

%

Selling, general and administrative expenses

2,044

3,007

(963

)

(32

)%

Depreciation and amortization

4,707

5,301

(594

)

(11

)%

2,835

16,683

(13,848

)

(83

)%

Other operating income

6

6

Operating income

$

2,841

$

16,683

$

(13,842

)

(83

)%

NGL sales volumes (Bbls)

2,907

3,441

(534

)

(16

)%



MARTIN MIDSTREAM PARTNERS L.P.

SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)

Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended March 31, 2019 and 2018

Three Months Ended
March 31,

Variance

Percent
Change

2019

2018

(In thousands)

Revenues:

Services

$

2,859

$

2,787

$

72

3

%

Products

28,734

34,900

(6,166

)

(18

)%

Total revenues

31,593

37,687

(6,094

)

(16

)%

Cost of products sold

21,566

23,987

(2,421

)

(10

)%

Operating expenses

2,163

2,912

(749

)

(26

)%

Selling, general and administrative expenses

1,178

1,035

143

14

%

Depreciation and amortization

2,868

2,064

804

39

%

3,818

7,689

(3,871

)

(50

)%

Other operating loss

(2

)

2

100

%

Operating income

$

3,818

$

7,687

$

(3,869

)

(50

)%

Sulfur (long tons)

109

176

(67

)

(38

)%

Fertilizer (long tons)

67

88

(21

)

(24

)%

Total sulfur services volumes (long tons)

176

264

(88

)

(33

)%


Transportation Segment

Comparative Results of Operations for the Three Months Ended March 31, 2019 and 2018

Three Months Ended
March 31,

Variance

Percent
Change

2019

2018

(In thousands)

Revenues

$

45,186

$

41,937

$

3,249

8

%

Operating expenses

35,265

35,440

(175

)

%

Selling, general and administrative expenses

2,085

1,416

669

47

%

Depreciation and amortization

3,570

2,466

1,104

45

%

$

4,266

$

2,615

$

1,651

63

%

Other operating income (loss)

(736

)

10

(746

)

(7,460

)%

Operating income

$

3,530

$

2,625

$

905

34

%


Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2019 and 2018, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

Three Months Ended

March 31,

2019

20181

(in thousands)

Net income (loss)

$

(3,656

)

$

15,036

Less: Income from discontinued operations, net of income taxes

(1,532

)

Income (loss) from continuing operations

(3,656

)

13,504

Adjustments:

Interest expense, net

13,671

12,730

Income tax expense

696

149

Depreciation and amortization

18,982

19,990

EBITDA

29,693

46,373

Adjustments:

(Gain) loss on sale of property, plant and equipment

720

(8

)

Unrealized mark-to-market on commodity derivatives

(147

)

(154

)

Transaction costs associated with acquisitions

184

Unit-based compensation

352

132

Adjusted EBITDA

30,802

46,343

Adjustments:

Interest expense, net

(13,671

)

(12,730

)

Income tax expense

(696

)

(149

)

Amortization of debt premium

(77

)

(77

)

Amortization of deferred debt issuance costs

895

819

Deferred income taxes

369

Payments for plant turnaround costs

(3,827

)

Maintenance capital expenditures

(4,195

)

(6,002

)

Distributable Cash Flow

$

9,600

$

28,204

Income from discontinued operations

$

$

1,532

Adjustments:

Equity in earnings

(1,595

)

Distributions from unconsolidated entities

1,500

Adjusted EBITDA and Distributable Cash Flow from Discontinued Operations

$

$

1,437

1 Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.