KILGORE, Texas , May 7 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the first quarter ended March 31, 2008 .
MMLP reported net income for the first quarter of 2008 of $8.0 million , or $0.51 per limited partner unit. This compared to net income for the first quarter of 2007 of $5.8 million , or $0.42 per limited partner unit. Revenues for the first quarter of 2008 were $313.0 million compared to $155.8 million for the first quarter of 2007. First quarter 2008 net income was negatively impacted by a $1.9 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.13 per limited partner unit.
The Company's distributable cash flow for the first quarter of 2008 was $16.0 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 2008 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 7, 2008 .
Investors' Conference Call
An investors' conference call to review the first quarter results will be held on Thursday, May 8, 2008 , at 8:00 a.m. Central Time . The conference call can be accessed by calling (877) 407-9205. An audio replay of the conference call will be available by calling (877) 660-6853 from 9:00 a.m. Central Time on May 8, 2008 through 11:59 p.m. Central Time on May 15, 2008 . The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 283739. The audio replay of the conference call will also be archived on the Company's website at http://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 http://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 issue costs (as reported in Statements of Cash Flows), plus (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 (gain) 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 7, 2008 ), 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, 2008 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.3 million , $0.1 million and $2.6 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 May 7, 2008 ). For the quarter ended March 31, 2008 , MMLP's distributions from (contributions to) unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were $0.5 million and $0.8 million , respectively.
Contact: Robert D. Bondurant, Executive Vice President and Chief Financial
Officer of Martin Midstream GP LLC, the Company's general partner at (903)
983-6200.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
2008 2007
(Unaudited) (Audited)
Assets
Cash $6,918 $4,113
Accounts and other receivables, less
allowance for doubtful accounts
of $298 and $211 96,493 88,039
Product exchange receivables 10,244 10,912
Inventories 51,051 51,798
Due from affiliates 3,908 2,325
Other current assets 1,743 819
Total current assets 170,357 158,006
Property, plant and equipment, at cost 478,265 441,117
Accumulated depreciation (103,025) (98,080)
Property, plant and equipment, net 375,240 343,037
Goodwill 37,405 37,405
Investment in unconsolidated entities 75,664 75,690
Other assets, net 8,937 9,439
$667,603 $623,577
Liabilities and Partners' Capital
Current installments of long-term debt $1 $21
Trade and other accounts payable 123,927 104,598
Product exchange payables 21,875 24,554
Due to affiliates 7,037 7,543
Income taxes payable 587 602
Other accrued liabilities 12,533 9,254
Total current liabilities 165,960 146,572
Long-term debt 255,000 225,000
Deferred income taxes 8,735 8,815
Other long-term obligations 9,914 7,342
Total liabilities 439,609 387,729
Partners' capital 239,748 242,610
Accumulated other comprehensive income (loss) (11,754) (6,762)
Total partners' capital 227,994 235,848
Commitments and contingencies $667,603 $623,577
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 7, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended
March 31,
2008 2007
Revenues:
Terminalling and storage $7,920 $6,951
Marine transportation 16,403 13,884
Product sales:
Natural gas services 207,092 101,788
Sulfur services 70,225 29,380
Terminalling and storage 11,376 3,793
288,693 134,961
Total revenues 313,016 155,796
Costs and expenses:
Cost of products sold:
Natural gas services 202,850 96,772
Sulfur services 56,340 21,801
Terminalling and storage 9,921 3,015
269,111 121,588
Expenses:
Operating expenses 24,217 18,993
Selling, general and administrative 3,479 2,721
Depreciation and amortization 7,340 4,894
Total costs and expenses 304,147 148,196
Other operating income 139 -
Operating income 9,008 7,600
Other income (expense):
Equity in earnings of unconsolidated entities 3,510 2,050
Interest expense (4,743) (3,577)
Other, net 181 79
Total other income (expense) (1,052) (1,448)
Net income before taxes 7,956 6,152
Income tax benefit(expense) 61 (349)
Net income $8,017 $5,803
General partner's interest in net income $651 $275
Limited partners' interest in net income $7,366 $5,528
Net income per limited partner unit -
basic and diluted $0.51 $0.42
Weighted average limited partner
units - basic 14,532,826 13,152,826
Weighted average limited partner
units - diluted 14,535,491 13,155,125
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 7, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
Partners' Capital
Accumulated
Other
General Comprehensive
Common Subordinated Partner Income (Loss)
Units Amount Units Amount Amount Amount Total
Balances -
January 1,
2007 10,603,808 $201,387 2,552,018 $(6,237) $3,253 $122 $198,525
Net
income - 4,608 - 920 275 - 5,803
Cash
distributions - (6,574) - (1,582) (311) - (8,467)
Unit-based
compensation - 11 - - - - 11
Adjustment
in fair
value of
derivatives - - - - - (1,111) (1,111)
Balances -
March 31,
2007 10,603,808 $199,432 2,552,018 $(6,899) $3,217 $(989) $194,761
Balances -
January 1,
2008 12,837,480 $244,520 1,701,346 $(6,022) $4,112 $(6,762) $235,848
Net
income - 6,141 - 1,225 651 - 8,017
Cash
distributions - (8,986) - (1,191) (719) - (10,896)
Unit-based
compensation - 17 - - - - 17
Adjustment
in fair
value of
derivatives - - - - - (4,992) (4,992)
Balances -
March 31,
2008 12,837,480 $241,692 1,701,346 $(5,988) $4,044 $(11,754) $227,994
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 7, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
Three Months Ended
March 31,
2008 2007
Net income $8,017 $5,803
Changes in fair values of commodity
cash flow hedges 213 (164)
Cash flow hedging losses reclassified
to earnings (665) (432)
Changes in fair value of interest rate
cash flow hedges (4,540) (515)
Comprehensive income $ 3,025 $ 4,692
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 7, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Three Months Ended
March 31,
2008 2007
Cash flows from operating activities:
Net income $8,017 $5,803
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 7,340 4,894
Amortization of deferred debt issuance
costs 279 270
Deferred taxes (80) -
Gain on disposition or sale of property,
plant and equipment (140) -
Equity in earnings of unconsolidated
entities (3,510) (2,050)
Distributions from unconsolidated entities - 200
Distributions in-kind from equity
investments 2,580 1,853
Non-cash derivatives loss 1,888 593
Other 17 11
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables (8,454) (1,964)
Product exchange receivables 668 5,094
Inventories 747 6,850
Due from affiliates (1,583) 230
Other current assets (1,159) 26
Trade and other accounts payable 19,329 1,789
Product exchange payables (2,679) (8,719)
Due to affiliates (506) (2,515)
Income taxes payable (15) 190
Other accrued liabilities (809) (770)
Change in other non-current assets
and liabilities 14 126
Net cash provided by operating
activities 21,944 11,911
Cash flows from investing activities:
Payments for property, plant and equipment (33,600) (15,764)
Acquisitions, net of cash acquired (5,983) -
Proceeds from sale of property,
plant and equipment 404 -
Return of investments from unconsolidated
entities 450 1,125
Distributions from (contributions to)
unconsolidated entities for operations 506 (3,883)
Net cash used in investing
activities (38,223) (18,522)
Cash flows from financing activities:
Payments of long-term debt (58,120) (25,119)
Proceeds from long-term debt 88,100 41,100
Cash distributions paid (10,896) (8,467)
Net cash provided by
financing activities 19,084 7,514
Net increase in cash 2,805 903
Cash at beginning of period 4,113 3,675
Cash at end of period $6,918 $4,578
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 7, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)
Three Months Ended
March 31, 2008
Net income $8,017
Adjustments to reconcile net income to
distributable cash flow:
Depreciation and amortization 7,340
Amortization of deferred debt issuance costs 279
Deferred taxes (80)
Distribution equivalents from unconsolidated entities(1) 3,030
Invested cash in unconsolidated entities(2) 1,304
Equity in earnings of unconsolidated entities (3,510)
Non-cash derivatives loss 1,888
Maintenance capital expenditures(3) (2,310)
Unit-based compensation 17
Distributable cash flow $15,975
(1) Distribution equivalent from unconsolidated entities:
Distributions from unconsolidated entities $-
Return of investments from unconsolidated entities 450
Distributions in-kind from equity investments 2,580
Distributions equivalents from unconsolidated
entities $3,030
(2) Invested cash in unconsolidated entities:
Distributions from (contributions to)
unconsolidated entities for operations $506
Expansion capital expenditures in
unconsolidated entities 798
Invested cash in unconsolidated entities $1,304
(3) Maintenance capital expenditures exclude
hurricane-related maintenance capital expenditures.
SOURCE Martin Midstream Partners L.P.
