KILGORE, Texas, May 6, 2009 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) announced today its financial results for the first quarter ended March 31, 2009.
MMLP reported net income for the first quarter of 2009 of $4.9 million, or $0.28 per limited partner unit. This compared to net income for the first quarter of 2008 of $8.0 million, or $0.51 per limited partner unit. Revenues for the first quarter of 2009 were $156.9 million compared to $313.0 million for the first quarter of 2008. First quarter 2009 net income was negatively impacted by $1.1 million, or $0.08 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 first quarter of 2009 was $13.9 million. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information." The 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 first 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 May 6, 2009.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said "The first quarter proved to be a challenging quarter for our company given the overall state of the economy. Our terminalling and natural gas processing businesses were negatively impacted by the decline in commodity prices while our sulfur services volumes were down due to the current economic downturn and a wetter-than-expected planting season. Despite these challenges, however, our propane and NGL businesses experienced improved unit margins which helped to maintain our strong distribution coverage at approximately 1.2 times for the quarter. In addition, we successfully executed on our non-strategic asset divestiture plan with the recent sale of the Mont Belvieu rail rack facility to an affiliate of Enterprise Products Partners for approximately $23.1 million, $3.5 million of which will be received upon our completion of construction projects at the facility. This sale provides us with additional liquidity while having a negligible impact relative to our historical distributable cash flow. We have identified additional potential asset sales and will continue to evaluate opportunities that generate liquidity with minimal impact to our cash flows."
Investors' Conference Call
An investors' conference call to review the first quarter results will be held on Thursday, May 7, 2009 at 8:00 a.m. Central Time. The conference call can be accessed by calling 877-591- 4959. An audio replay of the conference call will be available by calling 888-203-1112 from 9:00 a.m. Central Time on May 7, 2009 through 11:59 p.m. Central Time on May 14, 2009. The access code for the conference call and the audio replay is: Conference ID No. 1754532. 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 and amortization of deferred debt issuance costs (as reported in Statements of Cash Flows), 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 derivatives loss (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 May 6, 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 March 31, 2009, MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.7 million, $0.2 million and $1.3 million, respectively.
MMLP's invested cash in unconsolidated entities is calculated as distributions from 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 May 6, 2009). For the quarter ended March 31, 2009, MMLP's distributions from unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were $0.6 million and $0.4 million, respectively.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
2009 2008
(Unaudited) (Audited)
----------- ------------
Assets
Cash $ 7,965 $ 7,983
Accounts and other receivables, less
allowance for doubtful accounts of $599
and $481 66,732 68,117
Product exchange receivables 5,808 6,924
Inventories 32,494 42,461
Due from affiliates 1,903 555
Fair value of derivatives 3,793 3,623
Other current assets 1,060 1,079
--------- ---------
Total current assets 119,755 130,742
--------- ---------
Property, plant, and equipment, at cost 550,213 537,381
Accumulated depreciation (133,396) (125,256)
--------- ---------
Property, plant and equipment, net 416,817 412,125
--------- ---------
Goodwill 37,405 37,405
Investment in unconsolidated entities 79,089 79,843
Fair value of derivatives 1,171 1,469
Other assets, net 6,832 7,332
--------- ---------
$ 661,069 $ 668,916
========= =========
Liabilities and Capital
Trade and other accounts payable $ 70,323 $ 87,382
Product exchange payables 8,283 10,924
Due to affiliates 27,641 13,420
Income taxes payable 278 414
Fair value of derivatives 7,975 6,478
Other accrued liabilities 3,238 6,077
--------- ---------
Total current liabilities 117,738 124,695
Long-term debt 301,700 295,000
Deferred income taxes 8,443 8,538
Fair value of derivatives 2,937 4,302
Other long-term obligations 1,642 1,667
--------- ---------
Total liabilities 432,460 434,202
--------- ---------
Partners' capital 232,672 239,649
Accumulated other comprehensive loss (4,063) (4,935)
--------- ---------
Total partners' capital 228,609 234,714
--------- ---------
Commitments and contingencies
$ 661,069 $ 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 May 6, 2009.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended
March 31,
----------------------
2009 2008
---------- ----------
Revenues:
Terminalling and storage $ 9,599 $ 7,920
Marine transportation 16,336 16,403
Product sales:
Natural gas services 90,866 207,092
Sulfur services 26,586 70,225
Terminalling and storage 13,519 11,376
---------- ----------
130,971 288,693
---------- ----------
Total revenues 156,906 313,016
---------- ----------
Costs and expenses:
Cost of products sold:
Natural gas services 82,667 202,850
Sulfur services 18,435 56,340
Terminalling and storage 12,105 9,921
---------- ----------
113,207 269,111
Expenses:
Operating expenses 23,888 24,217
Selling, general and administrative 4,179 3,479
Depreciation and amortization 8,405 7,340
---------- ----------
Total costs and expenses 149,679 304,147
---------- ----------
Other operating income -- 139
---------- ----------
Operating income 7,227 9,008
---------- ----------
Other income (expense):
Equity in earnings of unconsolidated entities 2,059 3,510
Interest expense (4,669) (4,743)
Other, net 23 181
---------- ----------
Total other expense (2,587) (1,052)
---------- ----------
Net income before taxes 4,640 7,956
Income tax benefit 230 61
---------- ----------
Net income $ 4,870 $ 8,017
========== ==========
General partner's interest in net income $ 807 $ 651
Limited partners' interest in net income $ 4,063 $ 7,366
Net income per limited partner unit - basic
and diluted $ 0.28 $ 0.51
Weighted average limited partner units -
basic 14,532,826 14,532,826
Weighted average limited partner units -
diluted 14,537,094 14,535,491
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 May 6, 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 -- 6,141 -- 1,225 651
Cash distributions -- (8,986) -- (1,191) (719)
Unit-based
compensation -- 17 -- -- --
Adjustment in fair
value of
derivatives -- -- -- -- --
---------- -------- --------- ------- ------
Balances - March 31,
2008 12,837,480 $241,692 1,701,346 $(5,988) $4,044
========== ======== ========= ======= ======
Balances -
January 1, 2009 13,688,152 $239,333 850,674 $(3,688) $4,004
Net income -- 3,826 -- 237 807
Cash distributions -- (10,266) -- (638) (962)
Unit-based
compensation -- 19 -- -- --
Adjustment in fair
value of
derivatives -- -- -- -- --
---------- -------- --------- ------- ------
Balances - March 31,
2009 13,688,152 $232,912 850,674 $(4,089) $3,849
========== ======== ========= ======= ======
Accumulated
Other
Comprehensive
Income (Loss)
-------------
Amount Total
------------- --------
Balances - January 1, 2008 $ (6,762) $235,848
Net income -- 8,017
Cash distributions -- (10,896)
Unit-based compensation -- 17
Adjustment in fair value of derivatives (4,992) (4,992)
-------- --------
Balances - March 31, 2008 $(11,754) $227,994
======== ========
Balances - January 1, 2009 $ (4,935) $234,714
Net income -- 4,870
Cash distributions -- (11,866)
Unit-based compensation -- 19
Adjustment in fair value of derivatives 872 872
-------- --------
Balances - March 31, 2009 $ (4,063) $228,609
======== ========
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 May 6, 2009.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Three Months Ended
March 31,
------------------
2009 2008
-------- --------
Cash flows from operating activities:
Net income $ 4,870 $ 8,017
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,405 7,340
Amortization of deferred debt issuance costs 281 279
Deferred taxes (95) (80)
Gain on disposition or sale of property, plant
and equipment -- (140)
Equity in earnings of unconsolidated entities (2,059) (3,510)
Distributions from unconsolidated entities 650 --
Distributions in-kind from equity investments 1,303 2,580
Non-cash derivatives loss 1,132 1,888
Other 19 17
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables 1,385 (8,454)
Product exchange receivables 1,116 668
Inventories 9,967 747
Due from affiliates (1,348) (1,583)
Other current assets 19 (1,159)
Trade and other accounts payable (17,059) 19,329
Product exchange payables (2,641) (2,679)
Due to affiliates 14,221 (506)
Income taxes payable (136) (15)
Other accrued liabilities (2,839) (809)
Change in other non-current assets and
liabilities (39) 14
-------- --------
Net cash provided by operating activities 17,152 21,944
-------- --------
Cash flows from investing activities:
Payments for property, plant and equipment (12,864) (33,600)
Acquisitions, net of cash acquired -- (5,983)
Proceeds from sale of property, plant and
equipment -- 404
Return of investments from unconsolidated
entities 220 450
Distributions from unconsolidated entities for
operations 640 506
-------- --------
Net cash used in investing activities (12,004) (38,223)
-------- --------
Cash flows from financing activities:
Payments of long-term debt (28,400) (58,120)
Proceeds from long-term debt 35,100 88,100
Cash distributions paid (11,866) (10,896)
-------- --------
Net cash provided by (used in) financing
activities (5,166) 19,084
-------- --------
Net increase (decrease) in cash (18) 2,805
Cash at beginning of period 7,983 4,113
-------- --------
Cash at end of period $ 7,965 $ 6,918
======== ========
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 May 6, 2009.
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)
Three Months
Ended
March 31,
2009
------------
Net income $ 4,870
Adjustments to reconcile net income to distributable
cash flow:
Depreciation and amortization 8,405
Amortization of deferred debt issuance costs 281
Deferred taxes (95)
Distribution equivalents from unconsolidated entities(1) 2,173
Invested cash in unconsolidated entities(2) 883
Equity in earnings of unconsolidated entities (2,059)
Non-cash derivatives loss 1,132
Maintenance capital expenditures (1,716)
Unit-based compensation 19
--------
Distributable cash flow $ 13,893
========
======================================================================
(1) Distribution equivalents from unconsolidated
entities:
Distributions from unconsolidated entities $ 650
Return of investments from unconsolidated
entities 220
Distributions in-kind from equity investments 1,303
--------
Distributions equivalents from unconsolidated
entities $ 2,173
========
(2) Invested cash in unconsolidated entities:
Distributions from unconsolidated entities for
operations 640
Expansion capital expenditures in
unconsolidated entities 243
--------
Invested cash in unconsolidated entities $ 883
========