KILGORE, Texas , Aug. 5 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the second quarter ended June 30, 2008 .
MMLP reported net income for the second quarter of 2008 of $4.3 million , or $0.25 per limited partner unit. This compared to net income for the second quarter of 2007 of $5.9 million , or $0.41 per limited partner unit. Second quarter 2008 net income was negatively impacted by a $3.3 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.22 per limited partner unit.
MMLP reported net income for the six months ended June 30, 2008 of $12.3 million , or $0.76 per limited partner unit. This compared to net income for the six months ended June 30, 2007 of $11.7 million , or $0.82 per limited partner unit. Net income for the six months ended June 30, 2008 was negatively impacted by a $5.2 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.35 per limited partner unit.
Revenues for the second quarter of 2008 were $308.1 million compared to $162.3 million for the second quarter of 2007. Revenues for the six months ended June 30, 2008 were $621.2 million , compared to revenues of $318.1 million for the six months ended June 30, 2007 .
The Company's distributable cash flow for the second quarter of 2008 was $12.3 million . The Company's distributable cash flow for the six months ended June 30, 2008 was $28.1 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 second 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 August 5, 2008 .
Investors' Conference Call
An investors' conference call to review the second quarter results will be held on Wednesday, August 6, 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 August 6, 2008 through 11:59 p.m. Central Time on August 13, 2008 . The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 292744 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 mark-to-market on derivatives (as reported in Statements of Cash Flows), less maintenance capital expenditures (as reported under the caption 'Liquidity and Capital Resources' in MMLP's Quarterly Report on Form 10-Q filed on August 5, 2008 ), plus (gain) loss on sale of property, plant and equipment (as reported in Statements of Cash Flows), plus unit-based compensation (as reported in Statements of Capital).
MMLP's distribution equivalents from unconsolidated entities is calculated as distributions from unconsolidated entities (as reported in Statements of Cash Flows), plus return of investments from unconsolidated entities (as reported in Statements of Cash Flows), plus distributions in-kind from equity investments (as reported in Statements of Cash Flows). For the quarter ended June 30, 2008 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.0 million , $0.2 million and $3.0 million , respectively. For the six months ended June 30, 2008 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.0 million , $0.6 million and $5.6 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 August 5, 2008 ). For the quarter ended June 30, 2008 , MMLP's distributions from (contributions to) unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were $(0.4) million and $1.1 million , respectively. For the six months ended June 30, 2008 , MMLP's distributions from (contributions to) unconsolidated entities for operations and expansion capital expenditures in unconsolidated entities were $0.1 million and $1.9 million , respectively.
Contact:
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2008 2007
(Unaudited) (Audited)
Assets
Cash $11,273 $4,113
Accounts and other receivables, less allowance
for doubtful accounts of $350 and $211 110,998 88,039
Product exchange receivables 42,148 10,912
Inventories 101,832 51,798
Due from affiliates 8,336 2,325
Fair value of derivatives - 235
Other current assets 7,093 584
Total current assets 281,680 158,006
Property, plant and equipment, at cost 497,323 441,117
Accumulated depreciation (110,332) (98,080)
Property, plant and equipment, net 386,991 343,037
Goodwill 37,405 37,405
Investment in unconsolidated entities 77,276 75,690
Fair value of derivatives 42 -
Other assets, net 8,493 9,439
$791,887 $623,577
Liabilities and Partners' Capital
Current installments of long-term debt $ - $21
Trade and other accounts payable 169,144 104,598
Product exchange payables 70,856 24,554
Due to affiliates 10,138 7,543
Income taxes payable 671 602
Fair value of derivatives 13,083 4,502
Other accrued liabilities 4,717 4,752
Total current liabilities 268,609 146,572
Long-term debt 285,000 225,000
Deferred income taxes 8,660 8,815
Fair value of derivatives 11,535 5,576
Other long-term obligations 1,586 1,766
Total liabilities 575,390 387,729
Partners' capital 232,798 242,610
Accumulated other comprehensive income (loss) (16,301) (6,762)
Total partners' capital 216,497 235,848
Commitments and contingencies $791,887 $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 August 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenues:
Terminalling and storage $9,900 $7,037 $17,820 $13,988
Marine transportation 19,309 15,154 35,712 29,038
Product sales:
Natural gas services 182,025 105,321 389,117 207,109
Sulfur services 86,027 30,353 156,252 59,733
Terminalling and storage 10,882 4,449 22,258 8,242
278,934 140,123 567,627 275,084
Total revenues 308,143 162,314 621,159 318,110
Costs and expenses:
Cost of products sold:
Natural gas services 180,324 100,939 383,174 197,711
Sulfur services 75,964 22,416 132,304 44,217
Terminalling and storage 10,270 3,917 20,191 6,932
266,558 127,272 535,669 248,860
Expenses:
Operating expenses 26,195 20,663 50,412 39,656
Selling, general and
administrative 3,467 2,744 6,946 5,465
Depreciation and amortization 7,614 5,468 14,954 10,362
Total costs and expenses 303,834 156,147 607,981 304,343
Other operating income (loss) (14) - 126 -
Operating income 4,295 6,167 13,304 13,767
Other income (expense):
Equity in earnings of
unconsolidated entities 4,372 2,418 7,882 4,468
Interest expense (3,895) (2,739) (8,638) (6,316)
Other, net 67 72 247 151
Total other income (expense) 544 (249) (509) (1,697)
Net income before taxes 4,839 5,918 12,795 12,070
Income tax benefit (expense) (522) 9 (461) (340)
Net income $4,317 $5,927 $12,334 $11,730
General partner's interest in
net income $665 $354 $1,316 $629
Limited partners' interest in
net income $3,652 $5,573 $11,018 $11,101
Net income per limited partner
unit - basic and diluted $0.25 $0.41 $0.76 $0.82
Weighted average limited
partner units - basic 14,532,826 13,638,101 14,532,826 13,478,271
Weighted average limited
partner units - diluted 14,535,779 13,642,950 14,535,564 13,483,246
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
Partners' Capital
Common Subordinated
Units Amount Units Amount
Balances - January 1, 2007 10,603,808 $201,387 2,552,018 $(6,237)
Net Income - 9,254 - 1,847
Follow-on public offering 1,380,000 55,934 - -
General partner contribution - - - -
Unit-based compensation 3,000 26 - -
Cash distributions - (13,361) - (3,216)
Adjustment in fair value of
derivatives - - - -
Balances - June 30, 2007 11,986,808 $253,240 2,552,018 $(7,606)
Balances - January 1, 2008 12,837,480 $244,520 1,701,346 $(6,022)
Net income - 9,958 - 1,060
Cash distributions - (18,229) - (2,416)
Unit-based compensation - 34 - -
Adjustment in fair value of
derivatives - - - -
Balances - June 30, 2008 12,837,480 $236,283 1,701,346 $(7,378)
Accumulated
Partners' Capital Other
General Comprehensive
Partner Income
Amount Amount Total
Balances - January 1, 2007 $3,253 $122 $198,525
Net Income 629 - 11,730
Follow-on public offering - - 55,934
General partner contribution 1,192 - 1,192
Unit-based compensation - - 26
Cash distributions (697) - (17,274)
Adjustment in fair value of
derivatives - 193 193
Balances - June 30, 2007 $4,377 $315 $250,326
Balances - January 1, 2008 $4,112 $(6,762) $235,848
Net income 1,316 - 12,334
Cash distributions (1,535) - (22,180)
Unit-based compensation - - 34
Adjustment in fair value of
derivatives - (9,539) (9,539)
Balances - June 30, 2008 $3,893 $(16,301) $216,497
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Six Months Ended
June 30,
2008 2007
Cash flows from operating activities:
Net income $12,334 $11,730
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 14,954 10,362
Amortization of deferred debt issuance costs 559 540
Deferred taxes (155) (68)
Gain on sale of property, plant and
equipment (126) -
Equity in earnings of unconsolidated entities (7,882) (4,468)
Distributions from unconsolidated entities - 200
Distributions in-kind from equity investments 5,621 4,541
Non-cash mark-to-market on derivatives 5,195 854
Other 34 26
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables (22,959) 6,769
Product exchange receivables (31,236) 4,170
Inventories (50,034) 702
Due from affiliates (6,011) (1,145)
Other current assets (6,509) 148
Trade and other accounts payable 64,546 6,059
Product exchange payables 46,302 (7,401)
Due to affiliates 2,595 (4,694)
Income taxes payable 69 277
Other accrued liabilities (34) (892)
Change in other non-current assets and
liabilities (224) 47
Net cash provided by operating
activities 27,039 27,757
Cash flows from investing activities:
Payments for property, plant and equipment (52,756) (36,772)
Acquisitions, net of cash acquired (5,983) (37,344)
Proceeds from sale of property, plant and
equipment 404 -
Return of investments from unconsolidated entities 600 2,970
Distributions from (contributions to)
unconsolidated entities for operations 75 (5,777)
Net cash used in investing activities (57,660) (76,923)
Cash flows from financing activities:
Payments of long-term debt (100,791) (97,287)
Proceeds from long-term debt 160,770 103,250
Net proceeds from follow on public offering - 55,934
General partner contribution - 1,192
Payments of debt issuance costs (18) -
Cash distributions paid (22,180) (17,274)
Net cash provided by financing
activities 37,781 45,815
Net increase (decrease) in cash 7,160 (3,351)
Cash at beginning of period 4,113 3,675
Cash at end of period $11,273 $324
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)
Three Months Six Months
Ended Ended
June 30, June 30,
2008 2008
Net income $4,317 $12,334
Adjustments to reconcile net income to distributable
cash flow:
Depreciation and amortization 7,614 14,954
Amortization of deferred debt issuance costs 280 559
Deferred taxes (75) (155)
Distribution equivalents from unconsolidated
entities(1) 3,191 6,221
Invested cash in unconsolidated entities(2) 707 2,011
Equity in earnings of unconsolidated entities (4,372) (7,882)
Non-cash mark-to-market on derivatives 3,307 5,195
Maintenance capital expenditures(3) (2,700) (5,010)
(Gain) loss on sale of property, plant and
equipment 14 (126)
Unit-based compensation 17 34
Distributable cash flow $12,300 $28,135
Three Months Six Months
Ended Ended
June 30 June 30,
2008 2008
(1) Distribution equivalent from unconsolidated
entities:
Distributions from unconsolidated entities $ - $ -
Return of investments from unconsolidated 150 600
Distributions in-kind from equity investments 3,041 5,621
Distributions equivalents from
unconsolidated entities $3,191 $6,221
(2) Invested cash in unconsolidated entities:
Distributions from (contributions to)
unconsolidated entities for operations $(431) $75
Expansion capital expenditures
in unconsolidated entities 1,138 1,936
Invested cash in unconsolidated entities $707 $2,011
(3) Maintenance capital expenditures exclude
hurricane-related maintenance capital expenditures.
SOURCE Martin Midstream Partners L.P.
