- Reported net loss of $3.3 million and net income of $3.7
million for the three and nine months ended September 30, 2024,
respectively
- Adjusted EBITDA of $25.1 million and $87.3 million for the
three and nine months ended September 30, 2024, respectively
- Declares quarterly cash dividend of $0.005 per common unit
- On October 3, 2024, entered into a definitive agreement and
plan of merger with Martin Resource Management Corporation (“MRMC”)
whereby MRMC would acquire all outstanding common units of the
Partnership not already owned by MRMC and its subsidiaries
Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the
“Partnership”) today announced its financial results for the third
quarter of 2024.
Bob Bondurant, President and Chief Executive Officer of Martin
Midstream GP LLC, the general partner of the Partnership (the
"General Partner"), stated, “I am pleased with the Partnership’s
third quarter financial results of $25.1 million in adjusted EBITDA
despite the slight miss of $1.3 million when compared to guidance
targeting $26.4 million in adjusted EBITDA. During the quarter, the
Partnership recorded an additional $1.4 million in expense, when
compared to guidance, related to our long-term incentive plans
which are tied to the fair market value of our common units. With
the exception of the Specialty Products division, financial results
were above guidance in all remaining segments when allowing for
this additional cost.”
“As we look to the coming months leading up to the potential
merger with MRMC, our team will remain dedicated to the execution
of our long-term strategy; and focused on enhancing the value we
provide to our customers, suppliers, and the communities where we
live and where our businesses operate.”
THIRD QUARTER 2024 OPERATING
RESULTS BY BUSINESS SEGMENT
Operating Income (Loss)
($M)
Credit Adjusted EBITDA
($M)
Adjusted EBITDA ($M)
Three Months Ended September
30,
2024
2023
2024
2023
2024
2023
(Amounts may not add or
recalculate due to rounding)
Business Segment:
Terminalling and Storage
$
2.7
$
3.1
$
8.4
$
8.2
$
8.4
$
8.2
Transportation
8.6
6.7
11.6
9.5
11.6
9.5
Sulfur Services
1.3
2.7
4.2
5.4
4.2
5.4
Specialty Products
3.9
6.0
4.6
6.8
4.6
6.8
Unallocated Selling, General and
Administrative Expense
(3.7
)
(3.8
)
(3.7
)
(3.8
)
(3.7
)
(3.8
)
$
12.7
$
14.7
$
25.1
$
26.2
$
25.1
$
26.2
Terminalling and storage adjusted EBITDA increased $0.2
million, primarily reflecting increased throughput at our shore
based terminals, offset by increased employee-related expenses.
Transportation adjusted EBITDA increased $2.1 million,
primarily reflecting higher day rates and utilization in our marine
division.
Sulfur services adjusted EBITDA decreased $1.2 million,
primarily reflecting decreased fertilizer volumes and margins,
offset by higher margins in our sulfur division.
Specialty products adjusted EBITDA decreased $2.2
million, primarily reflecting decreased margins in our lubricants
and grease divisions coupled with higher employee-related
expenses.
Unallocated selling, general, and administrative expense
decreased $0.1 million, reflecting reduced overhead expenses
allocated from MRMC.
CAPITALIZATION
September 30, 2024
December 31, 2023
($ in millions)
Debt Outstanding:
Revolving Credit Facility, Due February
2027 1
$
86.5
$
42.5
Finance lease obligations
0.1
—
11.50% Senior Secured Notes, Due February
2028
400.0
400.0
Total Debt Outstanding:
$
486.6
$
442.5
Summary Credit Metrics:
Revolving Credit Facility - Total
Capacity
$
150.0
$
175.0
Revolving Credit Facility - Available
Liquidity
$
54.4
$
109.0
Total Adjusted Leverage Ratio 2
4.14x
3.75x
Senior Leverage Ratio 2
0.74x
0.36x
Interest Coverage Ratio 2
2.23x
2.19x
1 The Partnership was in compliance with all debt covenants as
of September 30, 2024 and December 31, 2023. 2 As calculated under
the Partnership's revolving credit facility.
RESULTS OF OPERATIONS
SUMMARY
(in millions, except per unit
amounts)
Period
Net Income
(Loss)
Net Income (Loss) Per
Unit
Adjusted EBITDA
Credit Adjusted EBITDA
Net Cash Provided by (Used in)
Operating Activities
Distributable Cash
Flow
Revenues
Three Months Ended September 30, 2024
$
(3.3
)
$
(0.08
)
$
25.1
$
25.1
$
(15.8
)
$
2.4
$
170.9
Three Months Ended September 30, 2023
$
3.7
$
0.09
$
26.2
$
26.2
$
7.3
$
5.0
$
176.7
Reconciliation of Net Income (Loss) to
Adjusted EBITDA and Credit Adjusted EBITDA
(in millions)
Transportation
Terminalling &
Storage
Sulfur Services
Specialty Products
SG&A
Interest Expense
3Q 2024 Actual
Net income (loss)
$
8.6
$
2.7
$
1.3
$
3.9
$
(5.1
)
$
(14.6
)
$
(3.3
)
Interest expense add back
–
–
–
–
–
14.6
14.6
Income tax expense
–
–
–
–
1.4
–
1.4
Operating Income (loss)
8.6
2.7
1.3
3.9
(3.7
)
–
12.7
Depreciation and amortization
3.2
5.7
2.9
0.8
–
–
12.6
Gain on sale or disposition of property,
plant, and equipment
(0.1
)
–
–
(0.1
)
–
–
(0.2
)
Unit-based compensation
–
–
–
–
–
–
–
Adjusted EBITDA
11.6
8.4
4.2
4.6
(3.7
)
–
25.1
Less: net income (loss) associated with
butane optimization business
–
–
–
–
–
–
–
Plus: lower of cost or net realizable
value and other non-cash adjustments
–
–
–
–
–
–
–
Credit Adjusted EBITDA
$
11.6
$
8.4
$
4.2
$
4.6
$
(3.7
)
$
–
$
25.1
EBITDA, adjusted EBITDA, Credit 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 tables entitled "Reconciliation of Net
Income (Loss) to EBITDA, Adjusted EBITDA, and Credit Adjusted
EBITDA” and “Reconciliation of Net Cash Provided by Operating
Activities to Adjusted EBITDA, Credit 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 third quarter 2024 to the
Partnership's adjusted EBITDA guidance for the third quarter
2024.
QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of
$0.005 per unit for the quarter ended September 30, 2024. The
distribution is payable on November 14, 2024, to common unitholders
of record as of the close of business on November 7, 2024. The
ex-dividend date for the cash distribution is November 7, 2024.
Qualified Notice to Nominees
This release is intended to serve as qualified notice under
Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and
nominees should treat one hundred percent (100%) of MMLP’s
distributions to non-U.S. investors as being attributable to income
that is effectively connected with a United States trade or
business. Accordingly, MMLP’s distributions to non-U.S. investors
are subject to federal income tax withholding at the highest
applicable effective tax rate. For purposes of Treasury Regulation
section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat
one hundred percent (100%) of the distributions as being in excess
of cumulative net income for purposes of determining the amount to
withhold. Nominees, and not Martin Midstream Partners L.P.,
are treated as withholding agents responsible for any necessary
withholding on amounts received by them on behalf of foreign
investors.
MERGER AGREEMENT WITH MARTIN RESOURCE
MANAGEMENT CORPORATION
On October 3, 2024, the Partnership announced that it has
entered into a definitive agreement and plan of merger (“Merger
Agreement”) pursuant to which MRMC would acquire all of the
outstanding common units of MMLP not already owned by MRMC and its
subsidiaries (the “Public Common Units”). The Merger Agreement
follows the offer made by MRMC in May 2024 to acquire the Public
Common Units.
Investors' Conference Call
Date: Thursday, October 17, 2024 Time:
8:00 a.m. CT (please dial in by 7:55 a.m.) Dial In #:
(800) 715-9871 Conference ID: 8536096 Replay Dial In
# (800) 770-2030 – Conference ID: 8536096
A webcast of the conference call along with the Third Quarter
2024 Earnings Summary 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 Gulf Coast region of the United
States. MMLP’s primary business lines include: (1) terminalling,
processing, and storage 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) marketing,
distribution, and transportation services for natural gas liquids
and blending and packaging services for specialty lubricants and
grease. To learn more, visit www.MMLP.com. Follow Martin Midstream
Partners L.P. on LinkedIn, Facebook, and X (formerly known as
Twitter).
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, including (i) the effects of the continued
volatility of commodity prices and the related macroeconomic and
political environment, (ii) the ability of the parties to
consummate the transactions contemplated by the Merger Agreement in
the anticipated timeframe or at all, including MRMC’s ability to
fund the aggregate merger consideration; risks related to the
satisfaction or waiver of the conditions to closing the transaction
in the anticipated timeframe or at all; risks related to obtaining
the requisite regulatory approval and Partnership unitholder
approval; disruption from the transaction making it more difficult
to maintain business and operational relationships; significant
transaction costs associated with the transaction; and the risk of
litigation and/or regulatory actions related to the transaction,
(iii) uncertainties relating to the Partnership’s future cash flows
and operations, (iv) the Partnership’s ability to pay future
distributions, (v) future market conditions, (vi) current and
future governmental regulation, (vii) future taxation, and (viii)
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 “SEC”). 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
To assist management in assessing our business, we use the
following non-GAAP financial measures: earnings before interest,
taxes, and depreciation and amortization ("EBITDA"), adjusted
EBITDA (as defined below), Credit Adjusted EBITDA (as defined
below), distributable cash flow available to common unitholders
(“Distributable Cash Flow”), and free cash flow after growth
capital expenditures and principal payments under finance lease
obligations ("Adjusted Free Cash Flow"). Our management uses a
variety of financial and operational measurements other than our
financial statements prepared in accordance with U.S. GAAP to
analyze our performance.
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.
EBITDA, Adjusted EBITDA and Credit Adjusted EBITDA. We define
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.
Adjusted EBITDA is used as a supplemental performance and liquidity
measure by our management and by external users of our financial
statements, such as investors, commercial banks, research analysts,
and others, to assess:
- the financial performance of our assets without regard to
financing methods, capital structure, or historical cost
basis;
- the ability of our assets to generate cash sufficient to pay
interest costs, support our indebtedness, and make cash
distributions to our unitholders; and
- our operating performance and return on capital as compared to
those of other companies in the midstream energy sector, without
regard to financing methods or capital structure.
We define Credit Adjusted EBITDA as Adjusted EBITDA excluding
net income (loss) and the lower of cost or net realizable value and
other non-cash adjustments associated with the butane optimization
business, which we exited during the second quarter of 2023. Credit
Adjusted EBITDA is used as a supplemental performance and liquidity
measure by our management and by external users of our financial
statements, such as investors, commercial banks, research analysts,
and others to provide additional information regarding the
calculation of, and compliance with, certain financial covenants in
the Partnership’s Third Amended and Restated Credit Agreement.
The GAAP measures most directly comparable to adjusted EBITDA
and Credit Adjusted EBITDA are net income (loss) and net cash
provided by (used in) operating activities. Adjusted EBITDA and
Credit Adjusted EBITDA should not be considered an alternative to,
or more meaningful than, net income (loss), operating income
(loss), net cash provided by (used in) operating activities, or any
other measure of financial performance presented in accordance with
GAAP. Adjusted EBITDA and Credit Adjusted EBITDA may not be
comparable to similarly titled measures of other companies because
other companies may not calculate Adjusted EBITDA in the same
manner.
Adjusted EBITDA does not include interest expense, income tax
expense, and depreciation and amortization. Because we have
borrowed money to finance our operations, interest expense is a
necessary element of our costs and our ability to generate cash
available for distribution. Because we have capital assets,
depreciation and amortization are also necessary elements of our
costs. Therefore, any measures that exclude these elements have
material limitations. To compensate for these limitations, we
believe that it is important to consider net income (loss) and net
cash provided by (used in) operating activities as determined under
GAAP, as well as adjusted EBITDA, to evaluate our overall
performance.
Distributable Cash Flow. We define Distributable Cash Flow as
Net Cash Provided by (Used in) Operating Activities less cash
received (plus cash paid) for closed commodity derivative positions
included in Accumulated Other Comprehensive Income (Loss), plus
changes in operating assets and liabilities which (provided) used
cash, less maintenance capital expenditures and plant turnaround
costs. Distributable Cash Flow is a significant performance measure
used by our management and by external users of our financial
statements, such as investors, commercial banks and research
analysts, to compare basic cash flows generated by us to the cash
distributions we expect to pay unitholders. Distributable Cash Flow
is also an important financial measure for our unitholders since it
serves as an indicator of our success in providing a cash return on
investment. Specifically, this financial measure indicates to
investors whether or not we are generating cash flow at a level
that can sustain or support an increase in our 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. We define Adjusted Free Cash Flow 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 our
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. We believe 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. Our calculation of Adjusted
Free Cash Flow may or may not be comparable to similarly titled
measures used by other entities.
The GAAP measure most directly comparable to Distributable Cash
Flow and Adjusted Free Cash Flow is Net Cash Provided by (Used in)
Operating Activities. Distributable Cash Flow and Adjusted Free
Cash Flow should not be considered alternatives to, or more
meaningful than, Net Income (Loss), Operating Income (Loss), Net
Cash Provided by (Used in) Operating Activities, or any other
measure of liquidity presented in accordance with GAAP.
Distributable Cash Flow and Adjusted Free Cash Flow have important
limitations because they exclude some items that affect Net Income
(Loss), Operating Income (Loss), and Net Cash Provided by (Used in)
Operating Activities. Distributable Cash Flow and Adjusted Free
Cash Flow may not be comparable to similarly titled measures of
other companies because other companies may not calculate these
non-GAAP metrics in the same manner. To compensate for these
limitations, we believe that it is important to consider Net Cash
Provided by (Used in) Operating Activities determined under GAAP,
as well as Distributable Cash Flow and Adjusted Free Cash Flow, to
evaluate our overall liquidity.
MMLP-F
MARTIN MIDSTREAM PARTNERS
L.P.
CONSOLIDATED AND CONDENSED
BALANCE SHEETS
(Dollars in thousands)
September 30, 2024
December 31, 2023
(Unaudited)
(Audited)
Assets
Cash
$
56
$
54
Accounts and other receivables, less
allowance for doubtful accounts of $704 and $530, respectively
70,041
53,293
Inventories
43,037
43,822
Due from affiliates
23,522
7,924
Other current assets
12,156
9,220
Total current assets
148,812
114,313
Property, plant and equipment, at cost
948,185
918,786
Accumulated depreciation
(640,407
)
(612,993
)
Property, plant and equipment, net
307,778
305,793
Goodwill
16,671
16,671
Right-of-use assets
61,521
60,359
Investment in DSM Semichem LLC
7,624
—
Deferred income taxes, net
10,043
10,200
Other assets, net
2,308
2,039
Total assets
$
554,757
$
509,375
Liabilities and Partners’
Capital (Deficit)
Current installments of long-term debt and
finance lease obligations
$
14
$
—
Trade and other accounts payable
60,995
51,653
Product exchange payables
—
426
Due to affiliates
1,388
6,334
Income taxes payable
1,315
652
Other accrued liabilities
31,157
41,499
Total current liabilities
94,869
100,564
Long-term debt, net
469,269
421,173
Finance lease obligations
58
—
Operating lease liabilities
44,549
45,684
Other long-term obligations
7,354
6,578
Total liabilities
616,099
573,999
Commitments and contingencies
Partners’ capital (deficit)
(61,342
)
(64,624
)
Total liabilities and partners' capital
(deficit)
$
554,757
$
509,375
MARTIN MIDSTREAM PARTNERS
L.P.
CONSOLIDATED AND CONDENSED
STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except
per unit amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenues:
Terminalling and storage *
$
22,562
$
22,202
$
67,454
$
64,744
Transportation *
56,506
55,223
172,489
165,696
Sulfur services
3,477
3,358
10,431
10,073
Product sales: *
Specialty products
67,206
66,695
200,819
277,836
Sulfur services
21,183
29,219
85,102
98,513
88,389
95,914
285,921
376,349
Total revenues
170,934
176,697
536,295
616,862
Costs and expenses:
Cost of products sold: (excluding
depreciation and amortization)
Specialty products *
58,409
56,298
173,192
245,863
Sulfur services *
12,545
19,461
52,178
66,932
Terminalling and storage *
23
23
65
54
70,977
75,782
225,435
312,849
Expenses:
Operating expenses *
62,363
64,375
191,655
187,857
Selling, general and administrative *
12,494
10,424
32,108
30,043
Depreciation and amortization
12,608
12,223
37,944
37,671
Total costs and expenses
158,442
162,804
487,142
568,420
Gain on disposition or sale of property,
plant and equipment
159
811
1,320
1,096
Operating income
12,651
14,704
50,473
49,538
Other income (expense):
Interest expense, net
(14,592
)
(14,994
)
(42,811
)
(45,914
)
Loss on extinguishment of debt
—
—
—
(5,121
)
Equity in earnings (loss) of DSM Semichem
LLC
(314
)
—
(314
)
—
Other, net
2
17
20
50
Total other expense
(14,904
)
(14,977
)
(43,105
)
(50,985
)
Net income (loss) before taxes
(2,253
)
(273
)
7,368
(1,447
)
Income tax expense
(1,066
)
(788
)
(3,634
)
(3,619
)
Net income (loss)
(3,319
)
(1,061
)
3,734
(5,066
)
Less general partner's interest in net
income (loss)
66
21
(75
)
101
Less income (loss) allocable to unvested
restricted units
14
4
(14
)
16
Limited partners' interest in net income
(loss)
$
(3,239
)
$
(1,036
)
$
3,645
$
(4,949
)
Net income (loss) per unit attributable to
limited partners - basic and diluted
$
(0.08
)
$
(0.03
)
$
0.09
$
(0.13
)
Weighted average limited partner units -
basic
38,832,222
38,772,266
38,831,064
38,771,451
Weighted average limited partner units -
diluted
38,832,222
38,772,266
38,909,976
38,771,451
*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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenues:*
Terminalling and storage
$
17,785
$
18,542
$
54,412
$
54,121
Transportation
7,975
7,426
24,894
20,214
Product Sales
91
122
343
8,544
Costs and expenses:*
Cost of products sold: (excluding
depreciation and amortization)
Specialty products
8,401
9,896
23,342
27,324
Sulfur services
3,014
2,787
8,926
8,139
Terminalling and storage
23
23
65
54
Expenses:
Operating expenses
26,153
25,606
79,077
74,491
Selling, general and administrative
12,215
8,477
27,716
23,549
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 - June 30, 2024
39,001,086
$
(59,557
)
$
1,691
$
(57,866
)
Net loss
—
(3,253
)
(66
)
(3,319
)
Cash distributions
—
(195
)
(4
)
(199
)
Unit-based compensation
—
42
—
42
Balances - September 30, 2024
39,001,086
(62,963
)
1,621
(61,342
)
Balances - December 31, 2023
38,914,806
$
(66,182
)
$
1,558
$
(64,624
)
Net income
—
3,659
75
3,734
Issuance of restricted units
86,280
—
—
—
Cash distributions
—
(585
)
(12
)
(597
)
Unit-based compensation
—
145
—
145
Balances - September 30, 2024
39,001,086
$
(62,963
)
$
1,621
$
(61,342
)
Partners’ Capital
(Deficit)
Common Limited
General Partner Amount
Units
Amount
Total
Balances - June 30, 2023
38,914,806
$
(65,334
)
$
1,577
$
(63,757
)
Net loss
—
(1,040
)
(21
)
(1,061
)
Cash distributions
—
(194
)
(4
)
(198
)
Unit-based compensation
—
37
—
37
Balances - September 30, 2023
38,914,806
(66,531
)
1,552
(64,979
)
Balances - December 31, 2022
38,850,750
$
(61,110
)
$
1,665
$
(59,445
)
Net loss
—
(4,965
)
(101
)
(5,066
)
Issuance of restricted units
64,056
—
—
—
Cash distributions
—
(583
)
(12
)
(595
)
Unit-based compensation
—
127
—
127
Balances - September 30, 2023
38,914,806
$
(66,531
)
$
1,552
$
(64,979
)
MARTIN MIDSTREAM PARTNERS
L.P.
CONSOLIDATED AND CONDENSED
STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Nine Months Ended
September 30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
3,734
$
(5,066
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
37,944
37,671
Amortization of deferred debt issuance
costs
2,311
3,206
Amortization of debt discount
1,800
1,600
Deferred income tax expense
157
2,322
Gain on disposition or sale of property,
plant and equipment, net
(1,320
)
(1,096
)
Loss on extinguishment of debt
—
5,121
Equity in (earnings) loss of DSM Semichem
LLC
314
—
Non cash unit-based compensation
145
127
Change in current assets and liabilities,
excluding effects of acquisitions and dispositions:
Accounts and other receivables
(16,748
)
19,190
Inventories
591
68,099
Due from affiliates
(15,598
)
5,914
Other current assets
(373
)
5,282
Trade and other accounts payable
9,867
(24,709
)
Product exchange payables
(426
)
743
Due to affiliates
(4,946
)
(804
)
Income taxes payable
663
(204
)
Other accrued liabilities
(12,632
)
(10,311
)
Change in other non-current assets and
liabilities
701
(1,020
)
Net cash provided by operating
activities
6,184
106,065
Cash flows from investing activities:
Payments for property, plant and
equipment
(34,058
)
(25,294
)
Payments for plant turnaround costs
(9,599
)
(2,367
)
Investment in DSM Semichem LLC
(6,938
)
—
Proceeds from sale of property, plant and
equipment
953
5,183
Net cash used in investing activities
(49,642
)
(22,478
)
Cash flows from financing activities:
Payments of long-term debt
(173,000
)
(579,197
)
Payments under finance lease
obligations
(5
)
(9
)
Proceeds from long-term debt
217,077
510,489
Payment of debt issuance costs
(15
)
(14,266
)
Cash distributions paid
(597
)
(595
)
Net cash provided by (used in) financing
activities
43,460
(83,578
)
Net increase in cash
2
9
Cash at beginning of period
54
45
Cash at end of period
$
56
$
54
Non-cash additions to property, plant and
equipment
$
2,418
$
2,369
Non-cash contribution of land to DSM
Semichem LLC
$
1,000
$
—
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 September 30, 2024 and
2023
Three Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands, except BBL per
day)
Revenues
$
24,414
$
23,973
$
441
2
%
Cost of products sold
23
23
—
—
%
Operating expenses
14,857
15,078
(221
)
(1
)%
Selling, general and administrative
expenses
1,130
628
502
80
%
Depreciation and amortization
5,695
5,102
593
12
%
2,709
3,142
(433
)
(14
)%
Loss on disposition or sale of property,
plant and equipment
(34
)
(35
)
1
3
%
Operating income
$
2,675
$
3,107
$
(432
)
(14
)%
Shore-based throughput volumes
(gallons)
42,242
40,655
1,587
4
%
Smackover refinery throughput volumes
(guaranteed minimum BBL per day)
6,500
6,500
—
—
%
Comparative Results of
Operations for the Nine Months Ended September 30, 2024 and
2023
Nine Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands, except BBL per
day)
Revenues
$
73,101
$
71,798
$
1,303
2
%
Cost of products sold
65
54
11
20
%
Operating expenses
45,414
43,318
2,096
5
%
Selling, general and administrative
expenses
2,232
1,510
722
48
%
Depreciation and amortization
16,819
15,896
923
6
%
8,571
11,020
(2,449
)
(22
)%
Gain (loss) on disposition or sale of
property, plant and equipment
1,063
(359
)
1,422
396
%
Operating income
$
9,634
$
10,661
$
(1,027
)
(10
)%
Shore-based throughput volumes
(gallons)
130,502
126,438
4,064
3
%
Smackover refinery throughput volumes
(guaranteed minimum) (BBL per day)
6,500
6,500
—
—
%
Transportation Segment
Comparative Results of
Operations for the Three Months Ended September 30, 2024 and
2023
Three Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Revenues
$
60,196
$
58,541
$
1,655
3
%
Operating expenses
45,138
46,465
(1,327
)
(3
)%
Selling, general and administrative
expenses
3,423
2,571
852
33
%
Depreciation and amortization
3,182
3,674
(492
)
(13
)%
8,453
5,831
2,622
45
%
Gain on disposition or sale of property,
plant and equipment
130
846
(716
)
(85
)%
Operating income
$
8,583
$
6,677
$
1,906
29
%
Comparative Results of
Operations for the Nine Months Ended September 30, 2024 and
2023
Nine Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Revenues
$
183,705
$
178,875
$
4,830
3
%
Operating expenses
139,562
136,940
2,622
2
%
Selling, general and administrative
expenses
8,150
7,101
1,049
15
%
Depreciation and amortization
10,039
11,196
(1,157
)
(10
)%
$
25,954
$
23,638
$
2,316
10
%
Gain on disposition or sale of property,
plant and equipment
496
1,497
(1,001
)
(67
)%
Operating income
$
26,450
$
25,135
$
1,315
5
%
Sulfur Services Segment
Comparative Results of
Operations for the Three Months Ended September 30, 2024 and
2023
Three Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Revenues:
Services
$
3,477
$
3,358
$
119
4
%
Products
21,183
29,219
(8,036
)
(28
)%
Total revenues
24,660
32,577
(7,917
)
(24
)%
Cost of products sold
15,292
21,972
(6,680
)
(30
)%
Operating expenses
3,089
3,510
(421
)
(12
)%
Selling, general and administrative
expenses
2,091
1,713
378
22
%
Depreciation and amortization
2,937
2,639
298
11
%
1,251
2,743
(1,492
)
(54
)%
Gain on disposition or sale of property,
plant and equipment
3
—
3
Operating income
$
1,254
$
2,743
$
(1,489
)
(54
)%
Sulfur (long tons)
113
155
(42
)
(27
)%
Fertilizer (long tons)
29
58
(29
)
(50
)%
Total sulfur services volumes (long
tons)
142
213
(71
)
(33
)%
Comparative Results of
Operations for the Nine Months Ended September 30, 2024 and
2023
Nine Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Revenues:
Services
$
10,431
$
10,073
$
358
4
%
Products
85,103
98,513
(13,410
)
(14
)%
Total revenues
95,534
108,586
(13,052
)
(12
)%
Cost of products sold
60,246
74,062
(13,816
)
(19
)%
Operating expenses
8,773
9,595
(822
)
(9
)%
Selling, general and administrative
expenses
5,111
4,292
819
19
%
Depreciation and amortization
8,697
8,072
625
8
%
12,707
12,565
142
1
%
Gain (loss) on disposition or sale of
property, plant and equipment
(305
)
17
(322
)
(1,894
)%
Operating income
$
12,402
$
12,582
$
(180
)
(1
)%
Sulfur (long tons)
296
352
(56
)
(16
)%
Fertilizer (long tons)
165
192
(27
)
(14
)%
Total sulfur services volumes (long
tons)
461
544
(83
)
(15
)%
Specialty Products Segment
Comparative Results of
Operations for the Three Months Ended September 30, 2024 and
2023
Three Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Products revenues
$
67,225
$
66,720
$
505
1
%
Cost of products sold
60,445
58,177
2,268
4
%
Operating expenses
30
23
7
30
%
Selling, general and administrative
expenses
2,135
1,698
437
26
%
Depreciation and amortization
794
808
(14
)
(2
)%
3,821
6,014
(2,193
)
(36
)%
Gain on disposition or sale of property,
plant and equipment
60
—
60
Operating income
$
3,881
$
6,014
$
(2,133
)
(35
)%
NGL sales volumes (Bbls)
582
509
73
14
%
Other specialty products volumes
(Bbls)
91
106
(15
)
(14
)%
Total specialty products volumes
(Bbls)
673
615
58
9
%
Comparative Results of
Operations for the Nine Months Ended September 30, 2024 and
2023
Nine Months Ended September
30,
Variance
Percent Change
2024
2023
(In thousands)
Products revenues
$
200,888
$
277,895
$
(77,007
)
(28
)%
Cost of products sold
179,800
256,898
(77,098
)
(30
)%
Operating expenses
81
55
26
47
%
Selling, general and administrative
expenses
5,300
5,287
13
—
%
Depreciation and amortization
2,389
2,507
(118
)
(5
)%
13,318
13,148
170
1
%
Gain (loss) on disposition or sale of
property, plant and equipment
66
(59
)
125
212
%
Operating income
$
13,384
$
13,089
$
295
2
%
NGL sales volumes (Bbls)
1,744
3,027
(1,283
)
(42
)%
Other specialty products volumes
(Bbls)
263
280
(17
)
(6
)%
Total specialty products volumes
(Bbls)
2,007
3,307
(1,300
)
(39
)%
Unallocated Selling, General and Administrative
Expenses
Comparative Results of
Operations for the Three and Nine Months Ended September 30, 2024
and 2023
Three Months Ended September
30,
Variance
Percent Change
Nine Months Ended September
30,
Variance
Percent Change
2024
2023
2024
2023
(In thousands)
(In thousands)
Indirect selling, general and
administrative expenses
$
3,742
$
3,837
$
(95
)
(2
)%
$
11,397
$
11,929
$
(532
)
(4
)%
Non-GAAP Financial Measures
The following tables reconcile the non-GAAP financial
measurements used by management to our most directly comparable
GAAP measures for the three and nine months ended September 30,
2024 and 2023, which represents EBITDA, adjusted EBITDA, Credit
Adjusted EBITDA, distributable cash flow, and adjusted free cash
flow:
Reconciliation of Net Income
(Loss) to EBITDA, Adjusted EBITDA, and Credit Adjusted
EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
(in thousands)
Net income (loss)
$
(3,319
)
$
(1,061
)
$
3,734
$
(5,066
)
Adjustments:
Interest expense
14,592
14,994
42,811
45,914
Income tax expense
1,066
788
3,634
3,619
Depreciation and amortization
12,608
12,223
37,944
37,671
EBITDA
24,947
26,944
88,123
82,138
Adjustments:
Gain on disposition or sale of property,
plant and equipment
(159
)
(811
)
(1,320
)
(1,096
)
Loss on extinguishment of debt
—
—
—
5,121
Equity in (earnings) loss of DSM Semichem
LLC
314
—
314
—
Lower of cost or net realizable value and
other non-cash adjustments
—
—
—
(12,850
)
Unit-based compensation
42
37
145
127
Adjusted EBITDA
$
25,144
$
26,170
$
87,262
$
73,440
Adjustments:
Less: net loss associated with butane
optimization business
—
—
—
2,255
Plus: lower of cost or net realizable
value and other non-cash adjustments
—
$
—
—
12,850
Credit Adjusted EBITDA
$
25,144
$
26,170
$
87,262
$
88,545
Reconciliation of Net Cash
Provided by Operating Activities to Adjusted EBITDA, Credit
Adjusted EBITDA,
Distributable Cash Flow, and
Adjusted Free Cash Flow
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(in thousands)
(in thousands)
Net cash provided by (used in)
operating activities
$
(15,753
)
$
7,291
$
6,184
$
106,065
Interest expense 1
13,220
13,623
38,700
41,108
Current income tax expense
935
333
3,477
1,297
Lower of cost or net realizable value and
other non-cash adjustments
—
—
—
(12,850
)
Changes in operating assets and
liabilities which (provided) used cash:
Accounts and other receivables,
inventories, and other current assets
22,489
(5,983
)
32,128
(98,485
)
Trade, accounts and other payables, and
other current liabilities
4,032
11,155
7,474
35,285
Other
221
(249
)
(701
)
1,020
Adjusted EBITDA
25,144
26,170
87,262
73,440
Adjustments:
Less: net loss associated with butane
optimization business
—
—
—
2,255
Plus: lower of cost or net realizable
value and other non-cash adjustments
—
—
—
12,850
Credit Adjusted EBITDA
25,144
26,170
87,262
88,545
Adjustments:
Interest expense
(14,592
)
(14,994
)
(42,811
)
(45,914
)
Income tax expense
(1,066
)
(788
)
(3,634
)
(3,619
)
Deferred income taxes
131
455
157
2,322
Amortization of debt discount
600
600
1,800
1,600
Amortization of deferred debt issuance
costs
772
771
2,311
3,206
Payments for plant turnaround costs
(2,894
)
(1,706
)
(9,599
)
(2,367
)
Maintenance capital expenditures
(5,738
)
(5,516
)
(17,949
)
(19,588
)
Distributable cash flow
2,357
4,992
17,537
24,185
Principal payments under finance lease
obligations
(4
)
—
(5
)
(9
)
Investment in DSM Semichem LLC
—
—
(6,938
)
—
Expansion capital expenditures
(3,903
)
(3,444
)
(15,584
)
(6,126
)
Adjusted free cash flow
$
(1,550
)
$
1,548
$
(4,990
)
$
18,050
1 Net of amortization of debt issuance costs and discount, which
are included in interest expense but not included in net cash
provided by (used in) operating activities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241016537515/en/
Sharon Taylor - Executive Vice President & Chief Financial
Officer (877) 256-6644 ir@mmlp.com
Martin Midstream Partners (NASDAQ:MMLP)
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