KILGORE, Texas, March 5 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the fourth quarter and year ended December 31, 2007 .
MMLP reported net income for the fourth quarter of 2007 of $7.7 million , or $0.49 per limited partner unit. This compared to net income for the fourth quarter of 2006 of $8.4 million , or $0.64 per limited partner unit. Revenues for the fourth quarter of 2007 were $262.9 million compared to $149.0 million for the fourth quarter of 2006. Fourth quarter 2007 net income was negatively impacted by $1.9 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction of net income of approximately $0.13 per limited partner unit for the fourth quarter of 2007. Fourth quarter 2006 net income was positively impacted by $2.5 million of gains from involuntary conversions of property, plant and equipment and gains on sale of property, plant and equipment. These items resulted in an increase to net income of approximately $0.20 per limited partner unit, for the fourth quarter of 2006.
MMLP reported net income for the year ended December 31, 2007 of $24.9 million , or $1.67 per limited partner unit. This compared to net income for the year ended December 31, 2006 of $22.2 million , or $1.69 per limited partner unit. Revenues for the year ended December 31, 2007 were $765.8 million compared to revenues of $576.4 million for the year ended December 31, 2006 . Net income for the year ended December 31, 2007 was negatively impacted by a $3.9 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.28 per limited partner unit. Net income for the year ended December 31, 2006 was positively impacted by $3.4 million of gains from involuntary conversions of property, plant and equipment and gains on sale of property, plant and equipment and partially offset by a $1.2 million debt prepayment premium. Together, these items positively impacted net income by approximately $2.2 million , or approximately $0.17 per limited partner unit for the year ended December 31, 2006 .
The Company's distributable cash flow for the quarter and year ended December 31, 2007 was $11.9 million and $45.6 million , respectively. 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 Balance Sheets as of December 31, 2007 and December 31, 2006 , its Consolidated Statements of Operations for the years ended December 31, 2007 , 2006 and 2005, its Consolidated Statements of Changes in Capital for the years ended December 31, 2007 , 2006 and 2005, its Consolidated Statements of Comprehensive Income for the years ended December 31, 2007 , 2006 and 2005, its Consolidated Statements of Cash Flows for the years ended December 31, 2007 , 2006 and 2005 and its Consolidated Statements of Operations for the quarters ended December 31, 2007 and 2006. These financial statements should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 5, 2008 .
Investors' Conference Call
An investor's conference call to review the fourth quarter and year end results will be held on Thursday, March 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 March 6, 2008 through 11:59 p.m. Central Time on March 13, 2008 . The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 276967. 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 in the United States (GAAP). 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 GAAP. 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 (as reported in Statements of Operations), plus 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 loss (as reported in Statements of Cash Flows), less maintenance capital expenditures (as reported under the caption 'Liquidity and Capital Resources' in MMLP's Annual Report on Form 10-K filed on March 5 , 2008), less gain on disposition or 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 unconsolidated entities (as reported in Statements of Cash Flows).
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 Annual Report on Form 10-K filed on March 5 , 2008).
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.
December 31,
2007 2006
(Dollars in
thousands)
Assets
Cash $4,113 $3,303
Accounts and other receivables, less allowance for
doubtful accounts of $211 and $394 88,039 56,712
Product exchange receivables 10,912 7,076
Inventories 51,798 33,019
Due from affiliates 2,325 1,330
Other current assets 819 2,041
Total current assets 158,006 103,481
Property, plant, and equipment, at cost 441,117 323,967
Accumulated depreciation (98,080) (76,122)
Property, plant and equipment, net 343,037 247,845
Goodwill 37,405 27,600
Investment in unconsolidated entities 75,690 70,651
Other assets, net 9,439 7,884
$623,577 $457,461
Liabilities and Capital
Current installments of long-term debt $21 $74
Trade and other accounts payable 104,598 53,450
Product exchange payables 24,554 14,737
Due to affiliates 7,543 10,474
Income taxes payable 602 86
Other accrued liabilities 13,930 3,876
Total current liabilities 151,248 82,697
Long-term debt 225,000 174,021
Deferred income taxes 8,815 -
Other long-term obligations 2,666 2,218
Total liabilities 387,729 258,936
Partners' capital 242,610 198,403
Accumulated other comprehensive income (loss) (6,762) 122
Total partners' capital 235,848 198,525
Commitments and contingencies
$623,577 $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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2007 2006 2005
(Dollars in thousands, except
per unit amounts)
Revenues:
Terminalling and storage $29,400 $24,182 $23,081
Marine transportation 59,579 47,835 35,451
Product sales:
Natural gas services 515,992 389,735 301,676
Sulfur services 131,326 102,597 68,418
Terminalling and storage 29,525 12,035 9,817
676,843 504,367 379,911
Total revenues 765,822 576,384 438,443
Costs and expenses:
Cost of products sold:
Natural gas services 495,641 374,218 291,109
Sulfur services 97,577 75,165 52,632
Terminalling and storage 25,471 9,787 8,079
618,689 459,170 351,820
Expenses:
Operating expenses 83,533 65,387 46,888
Selling, general and administrative 11,985 10,977 8,133
Depreciation and amortization 23,442 17,597 12,642
Total costs and expenses 737,649 553,131 419,483
Other operating income 703 3,356 -
Operating income 28,876 26,609 18,960
Other income (expense):
Equity in earnings of unconsolidated
entities 10,941 8,547 1,591
Interest expense (14,533) (12,466) (6,909)
Debt prepayment premium - (1,160) -
Other, net 299 713 238
Total other income (expense) (3,293) (4,366) (5,080)
Net income before taxes 25,583 22,243 13,880
Income taxes 644 - -
Net income $24,939 $22,243 $13,880
General partner's interest in net income $1,564 $949 $278
Limited partners' interest in net income $23,375 $21,294 $13,602
Net income per limited partner unit - $1.67 $1.69 $1.58
basic and diluted
Weighted average limited partner units -
basic 14,018,799 12,602,000 8,583,634
Weighted average limited partner units -
diluted 14,022,545 12,604,425 8,583,634
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL
For the years ended December 31, 2007, 2006 and 2005
Partners' Capital
General
Partner Accumulated
Limited Partners Comprehensive
Common Subordinated Income
Units Amount Units Amount Amount Amount Total
(Dollars in thousands)
Balances
- Dec.
31,
2004 4,222,500 $79,680 4,253,362 $(4,772) $626 - $75,534
Net income - 6,756 - 6,846 278 - 13,880
Units issued
in
connection
with Prism
Gas
acquisition 756,480 24,616 - - - - 24,616
Conversion
of
sub-
ordinated
units to
common
units 850,672 (1,599) (850,672) 1,599 - - -
General
partner
contri-
bution - - - - 502 - 502
Cash
distri-
butions
($2.19 per
unit) - (9,247) - (9,315) (405) - (18,967)
Balances
- Dec.
31,
2005 5,829,652 100,206 3,402,690 (5,642) 1,001 - 95,565
Net income - 16,069 - 5,225 949 - 22,243
Follow-on
public
offering 3,450,000 95,272 - - - - 95,272
Issuance
of
common
units 470,484 15,000 - - - - 15,000
General
partner
contri-
bution - - - - 2,358 - 2,358
Conversion of
sub-
ordinated
units to
common
units 850,672 (2,495) (850,672) 2,495 - - -
Unit-based
compen-
sation 3,000 24 - - - - 24
Cash
distri-
butions
($2.44
per unit) - (22,650) - (8,302) (1,107) - (32,059)
Commodity
hedging gains
reclassified
to earnings - - - - - 2 2
Adjustment in
fair value
of
derivatives - - - - - 120 120
Balances
- Dec.
31,
2006 10,603,808 $201,426 2,552,018 $(6,224) $3,201 $122 $198,525
Net Income - 19,781 - 3,594 1,564 - 24,939
Follow-on
public
offering 1,380,000 55,933 - - - - 55,933
General
partner
contri-
bution - - - - 1,192 - 1,192
Conversion
of
sub-
ordinated
units to
common
units 850,672 (3,243) (850,672) 3,243 - - -
Unit-based
comp-
ensation 3,000 46 - - - - 46
Cash
distri-
butions
($2.60 per
unit) - (29,423) - (6,635) (1,845) - (37,903)
Commodity
hedging
gains
reclassified
to earnings - - - - - 478 478
Adjustment
in fair
value of
derivatives - - - - - (7,362) (7,362)
Balances
- Dec.
31,
2007 12,837,480$244,520 1,701,346 $(6,022) $4,112 $(6,762) $235,848
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
Year Ended December 31,
2007 2006 2005
(Dollars in thousands)
Net income $24,939 $22,243 $13,880
Changes in fair values of commodity
cash flow hedges (3,569) 370 -
Commodity hedging gains reclassified -
to earnings 478 2
Changes in fair value of interest rate
cash flow hedges (3,793) (250) -
Comprehensive income $18,055 $22,365 $13,880
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2007 2006 2005
(Dollars in thousands)
Cash flows from operating activities:
Net income $24,939 $22,243 $13,880
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 23,442 17,597 12,642
Amortization of deferred debt issue
costs 1,233 1,040 600
Deferred income taxes (149) - -
Gain on disposition or sale of
property, plant, and equipment (703) (231) (37)
Gain on involuntary conversion
of property, plant, and equipment - (3,125) -
Equity in earnings of unconsolidated
entities (10,941) (8,547) (1,591)
Distributions from unconsolidated
entities 1,523 541 231
Distribution in-kind from
unconsolidated entities 9,337 8,311 1,115
Non-cash derivatives (gain) loss 3,904 (389) (555)
Other 46 24 -
Change in current assets and
liabilities, excluding effects
of acquisitions and
dispositions:
Accounts and other receivables (27,066) 13,763 (10,565)
Product exchange receivables (3,836) (4,935) (1,974)
Inventories (18,297) 890 (4,474)
Due from affiliates (995) 145 417
Other current assets 198 115 36
Trade and other accounts payable 47,535 (13,937) 27,669
Product exchange payables 9,817 5,113 (8,238)
Due to affiliates (2,931) 6,982 3,063
Income taxes payable 245 - -
Other accrued liabilities 870 (5,912) (496)
Change in other non-current
assets and liabilities, net (154) (386) 254
Net cash provided by operating
activities 58,017 39,302 31,977
Cash flows from investing activities:
Payments for property, plant, and
equipment (82,164) (66,352) (24,814)
Acquisitions, net of cash acquired (41,271) (24,306) (114,167)
Proceeds from sale of property, plant,
and equipment 1,290 1,825 95
Insurance proceeds from involuntary
conversion of property, plant and
equipment - 4,812 -
Return of investments from
unconsolidated entities 1,952 433 466
Investments in unconsolidated entities (6,910) (11,510) (322)
Net cash used in investing
activities (127,103) (95,098) (138,742)
Cash flows from financing activities:
Payments of long-term debt (169,024) (163,010) (134,091)
Net proceeds from follow on public
offering 55,933 95,272 -
General partner contribution 1,192 2,358 502
Proceeds from long-term debt 219,950 135,801 250,900
Payments of debt issuance costs (252) (371) (3,655)
Cash distributions paid (37,903) (32,059) (18,967)
Proceeds from issuance of common units - 15,000 15,000
Net cash provided by financing
activities 69,896 52,991 109,689
Net increase in cash 810 (2,805) 2,924
Cash at beginning of period 3,303 6,108 3,184
Cash at end of period $4,113 $3,303 $6,108
Non-cash:
Financed portion of non-compete
agreement $- $- $690
Common units issued for acquisitions $- $- $9,616
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
4th Quarter 4th Quarter
2007 2006
Revenues:
Terminalling and storage $7,842 $6,671
Marine transportation 15,072 14,665
Product sales:
Natural gas services 187,889 101,536
Sulfur 41,727 22,516
Terminalling and storage 10,332 3,617
239,948 127,669
Total revenues 262,862 149,005
Costs and expenses:
Cost of products sold:
Natural gas services 182,818 95,979
Sulfur 30,845 14,852
Terminalling and storage 8,535 2,921
222,198 113,752
Expenses:
Operating expenses 22,349 19,636
Selling, general and administrative 3,630 3,176
Depreciation and amortization 6,844 4,813
Total costs and expenses 255,021 141,377
Other operating income (loss) 703 2,503
Operating income 8,544 10,131
Other income (expense):
Equity in earnings of unconsolidated entities 3,737 1,105
Interest expense (4,577) (3,241)
Debt prepayment premium - -
Other, net 94 383
Total other income (expense) (746) (1,753)
Income taxes 92 -
Net income $7,706 $8,378
General partner's interest in net income $558 $282
Limited partners' interest in net income $7,148 $8,096
Net income per limited partner unit - basic and
diluted $.49 $.64
Weighted average limited partner units 14,538,826 12,741,596
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008 .
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
(Dollars in thousands)
(Unaudited Non-GAAP Financial Measure)
Three Months Year Ended
Ended December
December 31, 31,
2007 2007
Net income $7,706 $24,939
Adjustments to reconcile net income to
distributable cash flow:
Depreciation and amortization 6,844 23,442
Amortization of deferred debt issue
costs 423 1,233
Deferred taxes (38) (149)
Distribution equivalents from
unconsolidated entities(1) 2,869 12,812
Invested cash in unconsolidated
entities(2) 468 1,338
Equity in earnings of unconsolidated
entities (3,737) (10,941)
Non-cash derivatives loss 1,868 3,904
Maintenance capital expenditures (3,744) (10,342)
Gain on disposition or sale of property,
plant and equipment (703) (703)
Unit based compensation 12 46
Distributable cash flow $11,968 $45,579
Three Months
Ended Year Ended
December 31, December 31,
2007 2007
(1)Distribution equivalents from
unconsolidated entities:
Distributions from unconsolidated
entities $850 $1,523
Return of investments from
unconsolidated entities 690 1,952
Distributions in-kind from
unconsolidated entities 2,709 9,337
Distribution equivalents from
unconsolidated entities $2,869 $12,812
(2)Invested cash in unconsolidated entities:
Investments in unconsolidated entities $(780) $(6,910)
Expansion capital expenditures in
unconsolidated entities 1,248 8,248
Invested cash in unconsolidated
entities $468 $(1,338)
SOURCE Martin Midstream Partners
