KILGORE, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the second quarter ended June 30, 2007 .
MMLP reported net income for the second quarter of 2007 of $5.9 million , or $0.41 per limited partner unit. This compared to net income for the second quarter of 2006 of $5.2 million , or $0.40 per limited partner unit. Revenues for the second quarter of 2007 were $162.3 million compared to $133.1 million for the second quarter of 2006. Second quarter 2007 net income was negatively impacted by a $0.3 million non-cash mark-to-market adjustment on derivatives. This non-cash adjustment resulted in a reduction to net income of approximately $0.02 per limited partner unit.
MMLP reported net income for the six months ended June 30, 2007 of $11.7 million , or $0.82 per limited partner unit. This compared to net income for the six months ended June 30, 2006 of $9.5 million , or $0.72 per limited partner unit. Revenues for the six months ended June 30, 2007 were $318.1 million , compared to revenues of $279.9 million for the six months ended June 30, 2006 .
The Company's distributable cash flow for the second quarter of 2007 was $11.1 million . The Company's distributable cash flow for the six months ended June 30, 2007 was $23.1 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 2007 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 7, 2007 .
Investors' Conference Call
An investor's conference call to review the second quarter results will be held on Wednesday, August 8, 2007 , 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 8, 2007 through 11:59 p.m. Central Time on August 16, 2007 . The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No.250924. The audio replay of the conference call will also be archived on the Company's website at http://www.martinmidstream.com.
During this conference call, management will discuss certain non-generally accepted accounting principle financial measures for which reconciliations to the most directly comparable GAAP financial measures are provided herein.
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; sulfur gathering, processing and distribution; and fertilizer manufacturing 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 and 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, the Partnership uses certain non-GAAP financial measures such as distributable cash flow because the Partnership'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 the Partnership'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 in the United States . Distributable cash flow is not intended to represent cash flows for the period, nor are they 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), plus (less) deferred taxes, 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 (less) 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 7 , 2007), 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, 2007 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.3 million , $1.6 million and $2.7 million , respectively. For the six months ended June 30, 2007 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.5 million , $2.7 million and $4.5 million , respectively.
MMLP's invested cash in unconsolidated entities is calculated as investments in unconsolidated entities (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 7 , 2007). For the quarter ended June 30, 2007 , MMLP's investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $1.9 million and $2.0 million , respectively. For the six months ended June 30, 2007 , MMLP's investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $5.8 million and $6.1 million , respectively.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2007 2006
(Unaudited) (Audited)
Assets
Cash $324 $3,675
Accounts and other receivables, less allowance
for doubtful accounts of $207 and $394 54,204 56,712
Product exchange receivables 2,906 7,076
Inventories 32,799 33,019
Due from affiliates 2,475 1,330
Other current assets 1,331 2,041
Total current assets 94,039 103,853
Property, plant, and equipment, at cost 392,883 323,967
Accumulated depreciation (86,094) (76,122)
Property, plant and equipment, net 306,789 247,845
Goodwill 37,405 27,600
Investment in unconsolidated entities 73,185 70,651
Other assets, net 10,617 7,512
$522,035 $457,461
Liabilities and Partners' Capital
Current installments of long-term debt $58 $74
Trade and other accounts payable 63,122 53,450
Product exchange payables 7,336 14,737
Due to affiliates 5,780 10,474
Income taxes payable 461 86
Other accrued liabilities 3,723 3,876
Total current liabilities 80,480 82,697
Long-term debt 180,000 174,021
Deferred income taxes 8,896 -
Other long-term obligations 2,333 2,218
Total liabilities 271,709 258,936
Partners' capital 250,011 198,403
Accumulated other comprehensive income 315 122
Total partners' capital 250,326 198,525
Commitments and contingencies
$522,035 $457,461
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,
2007 2006 2007 2006
Revenues:
Terminalling and
storage $7,037 $5,592 $13,988 $11,348
Marine transportation 15,154 10,909 29,038 20,221
Product sales:
Natural gas
services 105,321 84,058 207,109 185,982
Sulfur 16,912 17,624 32,083 33,013
Fertilizer 13,441 12,071 27,650 24,096
Terminalling and
storage 4,449 2,798 8,242 5,214
140,123 116,551 275,084 248,305
Total revenues 162,314 133,052 318,110 279,874
Costs and expenses:
Cost of products sold:
Natural gas
services 100,939 81,517 197,711 179,600
Sulfur 11,694 11,701 22,031 22,172
Fertilizer 10,722 10,402 22,186 21,402
Terminalling and
storage 3,917 2,317 6,932 4,316
127,272 105,937 248,860 227,490
Expenses:
Operating expenses 20,663 14,381 39,656 28,281
Selling, general
and administrative 2,744 2,605 5,465 4,991
Depreciation and
amortization 5,468 4,255 10,362 8,207
Total costs and
expenses 156,147 127,178 304,343 268,969
Other operating income - - - 853
Operating income 6,167 5,874 13,767 11,758
Other income (expense):
Equity in earnings of
unconsolidated
entities 2,418 2,310 4,468 4,722
Interest expense (2,739) (3,018) (6,316) (6,036)
Debt prepayment
premium - - - (1,160)
Other, net 72 82 151 251
Total other
income (expense) (249) (626) (1,697) (2,223)
Net income before
taxes $5,918 $5,248 $12,070 $9,535
Income taxes (9) - 340 -
Net income $5,927 $5,248 $11,730 $9,535
General partner's
interest in net income $354 $237 $629 $483
Limited partners'
interest in net income $5,573 $5,011 $ 11,101 $9,052
Net income per limited
partner unit - basic
and diluted $0.41 $0.40 $0.82 $0.72
Weighted average
limited partner
units - basic 13,638,101 12,682,342 13,478,271 12,491,734
Weighted average
limited partner
units - diluted 13,642,950 12,685,002 13,483,246 12,494,428
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
Units Amount Units Amount Amount Amount Total
Balances -
January 1,
2006 5,829,652 $100,206 3,402,690 $(5,642) $ 1,001 $- $95,565
Net Income - 6,651 - 2,401 483 - 9,535
Follow-on
public
offering 3,450,000 95,273 - - - - 95,273
General
partner
contribution - - - - 2,052 - 2,052
Unit-based
compensation 3,000 9 - - - - 9
Cash
distributions - (11,325) - (4,150) (554) - (16,029)
Change in
other
comprehensive
income - - - - - 481 481
Balances -
June 30,
2006 9,282,652 $190,814 3,402,690 $(7,391) $2,982 $481 $186,886
Balances -
January 1,
2007 10,603,808 $201,387 2,552,018 $(6,237) $3,253 $122 $198,525
Net Income - 9,254 - 1,847 629 - 11,730
Follow-on
public
offering 1,380,000 55,934 - - - - 55,934
General
partner
contribution - - - - 1,192 - 1,192
Unit-based
compensation 3,000 26 - - - - 26
Cash
distributions - (13,361) - (3,216) (697) - (17,274)
Change in
other
comprehensive
income - - - - - 193 193
Balances -
June 30,
2007 11,986,808 $253,240 2,552,018 $(7,606) $4,377 $315 $250,326
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Six Months Ended
June 30,
2007 2006
Cash flows from operating activities:
Net income $11,730 $9,535
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 10,362 8,207
Amortization of deferred debt issuance costs 540 500
Deferred taxes (68) -
Gain on involuntary conversion of
property, plant and equipment - (853)
Equity in earnings of unconsolidated entities (4,468) (4,722)
Distributions from unconsolidated entities 486 383
Distributions in-kind from equity investments 4,541 3,915
Non-cash mark-to-market on derivatives 854 638
Other 26 57
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables 6,769 20,500
Product exchange receivables 4,170 (4,178)
Inventories 702 (1,607)
Due from affiliates (1,145) (11)
Other current assets 148 (169)
Trade and other accounts payable 6,059 (21,016)
Product exchange payables (7,401) 3,546
Due to affiliates (4,694) 3,344
Income taxes payable 277 -
Other accrued liabilities (892) (7,036)
Change in other non-current assets and
liabilities (47) (109)
Net cash provided by operating activities 28,043 10,924
Cash flows from investing activities:
Payments for property, plant and equipment (36,772) (37,753)
Acquisitions, net of cash acquired (37,344) (7,451)
Proceeds from sale of property, plant
and equipment - 770
Insurance proceeds from involuntary conversion
of property, plant and equipment - 2,541
Return of investments from unconsolidated
entities 2,684 304
Investments in unconsolidated entities (5,777) (1,336)
Net cash used in investing activities (77,209) (42,925)
Cash flows from financing activities:
Payments of long-term debt (97,287) (86,304)
Proceeds from long-term debt 103,250 35,000
Payments of debt issuance costs - (319)
Net proceeds from follow on public offering 55,934 95,273
General partner contribution 1,192 2,052
Cash distributions paid (17,274) (16,029)
Net cash provided by financing activities 45,815 29,673
Net decrease in cash (3,351) (2,328)
Cash at beginning of period 3,675 6,465
Cash at end of period $324 $4,137
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
(Unaudited Non-GAAP Financial Measure)
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2007 2007
Net income $5,927 $11,730
Adjustments to reconcile net
income to distributable
cash flow:
Depreciation and
amortization 5,468 10,362
Amortization of deferred
debt issuance costs 270 540
Deferred taxes (68) (68)
Distribution equivalents
from unconsolidated
entities 1 4,533 7,711
Invested cash in
unconsolidated entities 2 65 287
Equity in earnings of
unconsolidated entities (2,418) (4,468)
Non-cash mark-to-market on
derivatives 261 854
Maintenance capital
expenditures 3 (2,910) (3,842)
Unit-based compensation 15 26
Distributable cash flow $11,143 $23,132
Three Months Ended Six Months Ended
June 30 June 30
2007 2007
1 Distribution equivalents
from unconsolidated entities:
Distributions from
unconsolidated entities $286 $486
Return of investments
from unconsolidated
entities 1,559 2,684
Distributions in-kind
from equity investments 2,688 4,541
Distribution equivalents
from unconsolidated
entities $4,533 $7,711
2 Invested cash in unconsolidated
entities:
Investments in
unconsolidated entities $(1,894) $(5,777)
Expansion capital
expenditures in
unconsolidated entities 1,959 6,064
Invested cash in
unconsolidated entities $65 $287
3 Maintenance capital expenditures exclude hurricane-related
maintenance capital expenditures.
SOURCE Martin Midstream Partners
