KILGORE, Texas, Nov. 6 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the third quarter ended September 30, 2007 .
MMLP reported net income for the third quarter of 2007 of $5.5 million , or $0.35 per limited partner unit. This compared to net income for the third quarter of 2006 of $4.3 million , or $0.32 per limited partner unit. Revenues for the third quarter of 2007 were $184.9 million compared to $147.5 million for the third quarter of 2006. Third quarter 2007 net income was negatively impacted by a $1.2 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.08 per limited partner unit.
MMLP reported net income for the nine months ended September 30, 2007 of $17.2 million , or $1.17 per limited partner unit. This compared to net income for the nine months ended September 30, 2006 of $13.9 million , or $1.05 per limited partner unit. Revenues for the nine months ended September 30, 2007 were $503.0 million , compared to revenues of $427.4 million for the nine months ended September 30, 2006 . For the nine months ended September 30, 2007 , net income was negatively impacted by a $2.0 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.15 per limited partner unit.
The Company's distributable cash flow for the third quarter of 2007 was $10.5 million . The Company's distributable cash flow for the nine months ended September 30, 2007 was $33.6 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.
Included with this press release are MMLP's Consolidated and Condensed Balance Sheets as of September 30, 2007 and December 31, 2006 , its Consolidated and Condensed Statements of Operations for the three and nine months ended September 30, 2007 and 2006 and its Consolidated and Condensed Statements of Cash Flows for the nine months ended September 30, 2007 and 2006. 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 November 6, 2007 .
Investors' Conference Call
An investor's conference call to review the third quarter results will be held on Wednesday, November 7, 2007 , at 8:30 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 9:30 a.m. Central Time on November 7, 2007 through 11:59 p.m. Central Time on November 14, 2007 . The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 260936. 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. MMLP'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, 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 November 6 , 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 September 30, 2007 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.2 million , $(0.0) million and $2.1 million , respectively. For the nine months ended September 30, 2007 , MMLP's distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.7 million , $2.6 million and $6.6 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 November 6 , 2007). For the quarter ended September 30, 2007 , MMLP's investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $0.4 million and $0.9 million , respectively. For the nine months ended September 30, 2007 , MMLP's investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $6.1 million and $7.0 million , respectively.
Contacts: 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)
September December
30, 31,
2007 2006
(Unaudited) (Audited)
Assets
Cash $6,600 $3,675
Accounts and other receivables, less allowance for
doubtful accounts of $212 and $394 65,872 56,712
Product exchange receivables 11,143 7,076
Inventories 39,847 33,019
Due from affiliates 3,117 1,330
Other current assets 1,164 2,041
Total current assets 127,743 103,853
Property, plant, and equipment, at cost 413,619 323,967
Accumulated depreciation (92,032) (76,122)
Property, plant and equipment, net 321,587 247,845
Goodwill 37,405 27,600
Investment in unconsolidated entities 74,042 70,651
Other assets, net 9,510 7,512
$570,287 $457,461
Liabilities and Partners' Capital
Current installments of long-term debt $40 $74
Trade and other accounts payable 79,492 53,450
Product exchange payables 12,349 14,737
Due to affiliates 5,419 10,474
Income taxes payable 722 86
Other accrued liabilities 6,288 3,876
Total current liabilities 104,310 82,697
Long-term debt 210,000 174,021
Deferred income taxes 8,853 -
Other long-term obligations 3,774 2,218
Total liabilities 326,937 258,936
Partners' capital 245,400 198,403
Accumulated other comprehensive income (loss) (2,050) 122
Total partners' capital 243,350 198,525
Commitments and contingencies
$570,287 $457,461
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 November 6, 2007.
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,
2007 2006 2007 2006
Revenues:
Terminalling and storage $7,570 $6,163 $21,558 $17,511
Marine transportation 15,469 12,949 44,507 33,170
Product sales:
Natural gas services 120,994 102,217 328,103 288,199
Sulfur 19,632 13,716 51,715 46,729
Fertilizer 10,234 9,256 37,884 33,352
Terminalling and storage 10,951 3,204 19,193 8,418
161,811 128,393 436,895 376,698
Total revenues 184,850 147,505 502,960 427,379
Costs and expenses:
Cost of products sold:
Natural gas services 115,112 98,639 312,823 278,239
Sulfur 13,850 8,496 35,881 30,668
Fertilizer 8,665 8,243 30,851 29,645
Terminalling and storage 10,004 2,550 16,936 6,866
147,631 117,928 396,491 345,418
Expenses:
Operating expenses 21,528 17,470 61,184 45,751
Selling, general and
administrative 2,890 2,810 8,355 7,801
Depreciation and
amortization 6,236 4,577 16,598 12,784
Total costs and
expenses 178,285 142,785 482,628 411,754
Other operating income - - - 853
Operating income 6,565 4,720 20,332 16,478
Other income (expense):
Equity in earnings of
unconsolidated entities 2,736 2,720 7,204 7,442
Interest expense (3,640) (3,189) (9,956) (9,225)
Debt prepayment premium - - - (1,160)
Other, net 54 78 205 330
Total other income
(expense) (850) (391) (2,547) (2,613)
Net income before taxes 5,715 4,329 17,785 13,865
Income taxes 212 - 552 -
Net income $5,503 $4,329 $17,233 $13,865
General partner's interest in net
income $465 $218 $1,094 $702
Limited partners' interest in net
income $5,038 $4,111 $16,139 $13,163
Net income per limited partner
unit - basic and diluted $0.35 $0.32 $1.17 $1.05
Weighted average limited
partner units - basic 14,532,826 12,682,342 13,845,573 12,555,968
Weighted average limited
partner units - diluted 14,536,939 12,684,889 13,849,749 12,558,601
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 November 6, 2007.
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 - 9,635 - 3,528 702 - 13,865
Follow-on
public
offering 3,450,000 95,272 - - - - 95,272
General
partner
contribution - - - - 2,052 - 2,052
Unit-based
compensation 3,000 17 - - - - 17
Cash
distributions - (16,987) - (6,227) (830) - (24,044)
Change in
other
comprehensive
income - - - - - (316) (316)
Balances -
September 30,
2006 9,282,652 $188,143 3,402,690 $(8,341) $2,925 $(316) $182,411
Balances -
January 1,
2007 10,603,808 $201,387 2,552,018 $(6,237) $3,253 $122 $198,525
Net Income - 13,454 - 2,685 1,094 - 17,233
Follow-on
public
offering 1,380,000 55,933 - - - - 55,933
General
partner
contribution - - - - 1,192 - 1,192
Unit-based
compensation 3,000 34 - - - - 34
Cash
distributions - (21,272) - (4,900) (1,223) - (27,395)
Change in
other
comprehensive
income - - - - - (2,172) (2,172)
Balances -
September
30, 2007 11,986,808 $249,536 2,552,018 $(8,452) $4,316 $(2,050) $243,350
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 November 6, 2007.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Nine Months Ended
September 30,
2007 2006
Cash flows from operating activities:
Net income $17,233 $13,865
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 16,598 12,784
Amortization of deferred debt issuance costs 810 770
Deferred taxes (111) -
Gain on involuntary conversion of property,
plant and equipment - (853)
Equity in earnings of unconsolidated
entities (7,204) (7,442)
Distributions from unconsolidated entities 673 506
Distributions in-kind from equity
investments 6,628 6,710
Non-cash derivatives (gain) loss 2,036 (154)
Other 45 15
Change in current assets and liabilities,
excluding effects of acquisitions and
dispositions:
Accounts and other receivables (4,899) 18,695
Product exchange receivables (4,067) (4,754)
Inventories (6,346) (5,830)
Due from affiliates (1,787) (312)
Other current assets (167) 90
Trade and other accounts payable 22,429 (21,656)
Product exchange payables (2,388) 4,903
Due to affiliates (5,055) 4,967
Income taxes payable 365 -
Other accrued liabilities 903 (5,747)
Change in other non-current assets and
liabilities (94) (148)
Net cash provided by operating
activities 35,602 16,409
Cash flows from investing activities:
Payments for property, plant and equipment (57,524) (53,511)
Acquisitions, net of cash acquired (37,344) (16,544)
Proceeds from sale of property, plant and
equipment 4 770
Insurance proceeds from involuntary conversion
of property, plant and equipment - 2,541
Return of investments from unconsolidated
entities 2,642 330
Investments in unconsolidated entities (6,130) (7,344)
Net cash used in investing
activities (98,352) (73,758)
Cash flows from financing activities:
Payments of long-term debt (125,105) (105,810)
Proceeds from long-term debt 161,050 84,619
Payments of debt issuance costs - (371)
Net proceeds from follow on public offering 55,933 95,272
General partner contribution 1,192 2,052
Cash distributions paid (27,395) (24,044)
Net cash provided by financing
activities 65,675 51,718
Net increase (decrease) in cash 2,925 (5,631)
Cash at beginning of period 3,675 6,465
Cash at end of period $6,600 $834
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure)
(Dollars in thousands)
Three Months Nine Months
Ended Ended
September 30, September 30,
2007 2007
Net income $5,503 $17,233
Adjustments to reconcile net income
to distributable cash flow:
Depreciation and amortization 6,236 16,598
Amortization of deferred debt issuance
costs 270 810
Deferred taxes (43) (111)
Distribution equivalents from
unconsolidated entities(1) 2,232 9,943
Invested cash in unconsolidated entities(2) 583 870
Equity in earnings of unconsolidated
entities (2,736) (7,204)
Non-cash derivatives loss 1,182 2,036
Maintenance capital expenditures(3) (2,756) (6,598)
Unit-based compensation 8 34
Distributable cash flow $10,479 $33,611
Three Months Nine Months
Ended Ended
September 30, September 30,
2007 2007
(1) Distribution equivalent from
unconsolidated entities:
Distributions from unconsolidated
entities $187 $673
Return of investments from
unconsolidated (42) 2,642
Distributions in-kind from equity
investments 2,087 6,628
Distributions equivalents from
unconsolidated entities $2,232 $9,943
(2) Invested cash in unconsolidated
entities:
Investments in unconsolidated entities $(353) $(6,130)
Expansion capital expenditures in
unconsolidated entities 936 7,000
Invested cash in unconsolidated entities $583 $870
(3) Maintenance capital expenditures exclude hurricane-related
maintenance capital expenditures.
SOURCE Martin Midstream Partners L.P.
