Martin Midstream Partners Reports First Quarter 2023 Financial Results and Declares Quarterly Cash Distribution
Martin Midstream Partners L.P. (MMLP) reported a net loss of $5.1 million for Q1 2023, primarily due to a $5.1 million loss from debt extinguishment. Adjusted EBITDA for the quarter was approximately $30.6 million, down from $34.3 million in Q1 2022. Revenue decreased to $244.5 million compared to $279.2 million a year earlier. The company reduced total debt to $500 million, achieving a leverage ratio of 4.25 times, improved from 4.53 times in Q4 2022. Despite headwinds in agriculture affecting fertilizer and lubricants, strong demand for transportation services helped balance out losses. The partnership declared a cash dividend of $0.005 per unit, payable May 15, 2023.
- Adjusted EBITDA of $30.6 million in line with guidance.
- Debt reduction to $500 million from $516 million.
- Leverage ratio improved to 4.25 times from 4.53 times.
- Net loss of $5.1 million, a significant decline from a profit of $11.5 million in Q1 2022.
- Revenue decreased by $34.7 million year-over-year.
- Decline in adjusted EBITDA from $34.3 million in Q1 2022.
-
Total leverage of 4.25 times as of
March 31, 2023 , compared to 4.53 times as ofDecember 31, 2022 -
Reported net loss of
$5.1 million $5.1 million -
First quarter adjusted EBITDA of
$30.6 million $8.8 million -
Declares quarterly cash dividend of
$0.00 5
“During the quarter we continued our focus on debt reduction resulting in both lower outstanding debt and a lower leverage ratio. Borrowings under our revolving credit facility were reduced
FIRST QUARTER 2023 OPERATING RESULTS BY BUSINESS SEGMENT
TERMINALLING AND STORAGE (“T&S”)
T&S operating income (loss) for the three months ended
Adjusted segment EBITDA for T&S was
TRANSPORTATION
Transportation operating income for the three months ended
Adjusted segment EBITDA for Transportation was
SULFUR SERVICES
Sulfur Services operating income for the three months ended
Adjusted segment EBITDA for Sulfur Services was
SPECIALTY PRODUCTS
Specialty Products operating income for the three months ended
Adjusted segment EBITDA for Specialty Products was
UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (“USGA”)
USGA expenses included in operating income for the three months ended
USGA expenses included in adjusted EBITDA for the three months ended
CAPITALIZATION
At
On
QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of
QUALIFIED NOTICE TO NOMINEES
Partnership: |
|
Unit Class: |
Common |
CUSIP #: |
573331105 |
RE: |
Qualified Notice Pursuant to |
Record Date: |
|
Payable Date: |
|
Per Unit Amount: |
|
Section I: This announcement is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (
Section II: The entire amount of the distribution realized per
RESULTS OF OPERATIONS
The Partnership had a net loss for the three months ended
Revenues for the three months ended
EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s adjusted EBITDA for the first quarter 2023 to the Partnership's adjusted EBITDA guidance for the first quarter 2023.
Investors' Conference Call
Date:
Time:
Dial In #: (888) 330-2384
Conference ID: 8536096
Replay Dial In # (800) 770-2030 – Conference ID: 8536096
A webcast of the conference call along with the First Quarter 2023 Earnings Summary will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.
About
MMLP, headquartered in
Forward-Looking Statements
Statements about the Partnership’s 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, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment and (ii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership 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 Partnership’s annual and quarterly reports filed from time to time with the
Use of Non-GAAP Financial Information
To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), adjusted EBITDA (as defined below), distributable cash flow available to common unitholders (“distributable cash flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("adjusted free cash flow"). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with
Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.
EBITDA and adjusted EBITDA. We define adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments. Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:
- the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;
- the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and
- our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.
The GAAP measures most directly comparable to adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted EBITDA in the same manner.
Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider net income (loss) and net cash provided by (used in) operating activities as determined under GAAP, as well as adjusted EBITDA, to evaluate our overall performance.
Distributable cash flow. We define distributable cash flow as net cash provided by (used in) operating activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable cash flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable cash flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
Adjusted free cash flow. We define adjusted free cash flow as distributable cash flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.
The GAAP measure most directly comparable to distributable cash flow and adjusted free cash flow is net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income (loss), operating income (loss), Net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP. Distributable cash flow and adjusted free cash flow have important limitations because they exclude some items that affect net income (loss), operating income (loss), and net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider net cash provided by (used in) operating activities determined under GAAP, as well as distributable cash flow and adjusted free cash flow, to evaluate our overall liquidity.
MMLP-F
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Dollars in thousands) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
(Audited) |
||||
Assets |
|
|
|
||||
Cash |
$ |
57 |
|
|
$ |
45 |
|
Accounts and other receivables, less allowance for doubtful accounts of |
|
73,063 |
|
|
|
79,641 |
|
Inventories |
|
76,617 |
|
|
|
109,798 |
|
Due from affiliates |
|
3,982 |
|
|
|
8,010 |
|
Other current assets |
|
8,153 |
|
|
|
13,633 |
|
Total current assets |
|
161,872 |
|
|
|
211,127 |
|
|
|
|
|
||||
Property, plant and equipment, at cost |
|
897,140 |
|
|
|
903,535 |
|
Accumulated depreciation |
|
(585,860 |
) |
|
|
(584,245 |
) |
Property, plant and equipment, net |
|
311,280 |
|
|
|
319,290 |
|
|
|
|
|
||||
|
|
16,671 |
|
|
|
16,671 |
|
Right-of-use assets |
|
37,560 |
|
|
|
34,963 |
|
Deferred income taxes, net |
|
13,209 |
|
|
|
14,386 |
|
Other assets, net |
|
2,283 |
|
|
|
2,414 |
|
Total assets |
$ |
542,875 |
|
|
$ |
598,851 |
|
|
|
|
|
||||
Liabilities and Partners’ Capital (Deficit) |
|
|
|
||||
Current installments of long-term debt and finance lease obligations |
$ |
3 |
|
|
$ |
9 |
|
Trade and other accounts payable |
|
66,047 |
|
|
|
68,198 |
|
Product exchange payables |
|
136 |
|
|
|
32 |
|
Due to affiliates |
|
6,271 |
|
|
|
8,947 |
|
Income taxes payable |
|
1,097 |
|
|
|
665 |
|
Other accrued liabilities |
|
22,110 |
|
|
|
33,074 |
|
Total current liabilities |
|
95,664 |
|
|
|
110,925 |
|
|
|
|
|
||||
Long-term debt, net |
|
475,237 |
|
|
|
512,871 |
|
Operating lease liabilities |
|
27,801 |
|
|
|
26,268 |
|
Other long-term obligations |
|
8,850 |
|
|
|
8,232 |
|
Total liabilities |
|
607,552 |
|
|
|
658,296 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
Partners’ capital (deficit) |
|
(64,677 |
) |
|
|
(59,445 |
) |
Total partners’ capital (deficit) |
|
(64,677 |
) |
|
|
(59,445 |
) |
Total liabilities and partners' capital (deficit) |
$ |
542,875 |
|
|
$ |
598,851 |
|
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts) |
|||||||
|
Three Months Ended |
||||||
|
|
||||||
|
2023 |
|
2022 |
||||
Revenues: |
|
|
|
||||
Terminalling and storage * |
$ |
20,858 |
|
|
$ |
19,397 |
|
Transportation * |
|
55,723 |
|
|
|
46,710 |
|
Sulfur services |
|
3,358 |
|
|
|
3,084 |
|
Product sales: * |
|
|
|
||||
Specialty products |
|
132,269 |
|
|
|
153,971 |
|
Sulfur services |
|
32,321 |
|
|
|
56,039 |
|
|
|
164,590 |
|
|
|
210,010 |
|
Total revenues |
|
244,529 |
|
|
|
279,201 |
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
||||
Cost of products sold: (excluding depreciation and amortization) |
|
|
|
||||
Specialty products * |
|
117,995 |
|
|
|
133,792 |
|
Sulfur services * |
|
21,817 |
|
|
|
37,785 |
|
Terminalling and storage * |
|
6 |
|
|
|
5 |
|
|
|
139,818 |
|
|
|
171,582 |
|
Expenses: |
|
|
|
||||
Operating expenses * |
|
62,745 |
|
|
|
56,495 |
|
Selling, general and administrative * |
|
11,172 |
|
|
|
11,203 |
|
Depreciation and amortization |
|
12,901 |
|
|
|
14,486 |
|
Total costs and expenses |
|
226,636 |
|
|
|
253,766 |
|
|
|
|
|
||||
Other operating income (loss), net |
|
(388 |
) |
|
|
14 |
|
Operating income (loss) |
|
17,505 |
|
|
|
25,449 |
|
|
|
|
|
||||
Other income (expense): |
|
|
|
||||
Interest expense, net |
|
(15,657 |
) |
|
|
(12,429 |
) |
Loss on extinguishment of debt |
|
(5,121 |
) |
|
|
— |
|
Other, net |
|
22 |
|
|
|
(1 |
) |
Total other expense |
|
(20,756 |
) |
|
|
(12,430 |
) |
|
|
|
|
||||
Net income (loss) before taxes |
|
(3,251 |
) |
|
|
13,019 |
|
Income tax expense |
|
(1,835 |
) |
|
|
(1,541 |
) |
Net income (loss) |
|
(5,086 |
) |
|
|
11,478 |
|
Less general partner's interest in net (income) loss |
|
102 |
|
|
|
(229 |
) |
Less (income) loss allocable to unvested restricted units |
|
16 |
|
|
|
(30 |
) |
Limited partners' interest in net income (loss) |
$ |
(4,968 |
) |
|
$ |
11,219 |
|
|
|
|
|
||||
Net income (loss) per unit attributable to limited partners - basic |
$ |
(0.13 |
) |
|
$ |
0.29 |
|
Net income (loss) per unit attributable to limited partners - diluted |
$ |
(0.13 |
) |
|
$ |
0.29 |
|
Weighted average limited partner units - basic |
|
38,769,794 |
|
|
|
38,722,246 |
|
Weighted average limited partner units - diluted |
|
38,769,794 |
|
|
|
38,738,843 |
|
*Related Party Transactions Shown Below |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts) |
|||||
*Related Party Transactions Included Above |
|||||
|
Three Months Ended |
||||
|
|
||||
|
2023 |
|
2022 |
||
Revenues:* |
|
|
|
||
Terminalling and storage |
$ |
17,502 |
|
$ |
16,204 |
Transportation |
|
5,511 |
|
|
6,288 |
Product Sales |
|
925 |
|
|
321 |
Costs and expenses:* |
|
|
|
||
Cost of products sold: (excluding depreciation and amortization) |
|
|
|
||
Specialty products |
|
9,510 |
|
|
9,646 |
Sulfur services |
|
2,708 |
|
|
2,676 |
Terminalling and storage |
|
6 |
|
|
5 |
Expenses: |
|
|
|
||
Operating expenses |
|
23,827 |
|
|
21,380 |
Selling, general and administrative |
|
8,516 |
|
|
8,808 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Dollars in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
||||||
|
2023 |
|
2022 |
||||
|
|
|
|
||||
Net income (loss) |
$ |
(5,086 |
) |
|
$ |
11,478 |
|
Changes in fair values of commodity cash flow hedges |
|
— |
|
|
|
(440 |
) |
Comprehensive income (loss) |
$ |
(5,086 |
) |
|
$ |
11,038 |
|
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) (Unaudited) (Dollars in thousands) |
|||||||||||||||||
|
Partners’ Capital (Deficit) |
|
|
||||||||||||||
|
|
|
General Partner Amount |
|
Accumulated Other Comprehensive Income (Loss) |
|
|
||||||||||
|
Units |
|
Amount |
|
|
|
Total |
||||||||||
Balances - |
38,802,750 |
|
$ |
(50,741 |
) |
|
$ |
1,888 |
|
|
$ |
816 |
|
|
$ |
(48,037 |
) |
Net income |
— |
|
|
11,249 |
|
|
|
229 |
|
|
|
— |
|
|
|
11,478 |
|
Issuance of restricted units |
34,200 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash distributions |
— |
|
|
(194 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
(198 |
) |
Unit-based compensation |
— |
|
|
34 |
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
Gain reclassified from AOCI into income on commodity cash flow hedges |
— |
|
|
— |
|
|
|
— |
|
|
|
(816 |
) |
|
|
(816 |
) |
Loss recognized in AOCI on commodity cash flow hedges |
— |
|
|
— |
|
|
|
— |
|
|
|
(440 |
) |
|
|
(440 |
) |
Balances - |
38,836,950 |
|
$ |
(39,652 |
) |
|
$ |
2,113 |
|
|
$ |
(440 |
) |
|
$ |
(37,979 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
Balances - |
38,850,750 |
|
$ |
(61,110 |
) |
|
$ |
1,665 |
|
|
$ |
— |
|
|
$ |
(59,445 |
) |
Net loss |
— |
|
|
(4,984 |
) |
|
|
(102 |
) |
|
|
— |
|
|
|
(5,086 |
) |
Issuance of restricted units |
64,056 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash distributions |
— |
|
|
(194 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
(198 |
) |
Unit-based compensation |
— |
|
|
52 |
|
|
|
— |
|
|
|
— |
|
|
|
52 |
|
Balances - |
38,914,806 |
|
$ |
(66,236 |
) |
|
$ |
1,559 |
|
|
$ |
— |
|
|
$ |
(64,677 |
) |
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(5,086 |
) |
|
$ |
11,478 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
12,901 |
|
|
|
14,486 |
|
Amortization of deferred debt issuance costs |
|
1,675 |
|
|
|
783 |
|
Amortization of debt discount |
|
400 |
|
|
|
— |
|
Deferred income tax expense |
|
1,177 |
|
|
|
921 |
|
(Gain) loss on sale of property, plant and equipment, net |
|
388 |
|
|
|
(14 |
) |
Loss on extinguishment of debt |
|
5,121 |
|
|
|
— |
|
Derivative income |
|
— |
|
|
|
(816 |
) |
Net cash paid for commodity derivatives |
|
— |
|
|
|
(615 |
) |
Non cash unit-based compensation |
|
52 |
|
|
|
34 |
|
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: |
|
|
|
||||
Accounts and other receivables |
|
6,578 |
|
|
|
136 |
|
Inventories |
|
33,181 |
|
|
|
7,842 |
|
Due from affiliates |
|
4,028 |
|
|
|
(6,516 |
) |
Other current assets |
|
4,595 |
|
|
|
2,434 |
|
Trade and other accounts payable |
|
(2,016 |
) |
|
|
8,650 |
|
Product exchange payables |
|
104 |
|
|
|
(721 |
) |
Due to affiliates |
|
(2,676 |
) |
|
|
1,576 |
|
Income taxes payable |
|
432 |
|
|
|
540 |
|
Other accrued liabilities |
|
(11,818 |
) |
|
|
(11,002 |
) |
Change in other non-current assets and liabilities |
|
228 |
|
|
|
(821 |
) |
Net cash provided by operating activities |
|
49,264 |
|
|
|
28,375 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Payments for property, plant and equipment |
|
(7,527 |
) |
|
|
(10,216 |
) |
Payments for plant turnaround costs |
|
(229 |
) |
|
|
(1,435 |
) |
Proceeds from sale of property, plant and equipment |
|
3,538 |
|
|
|
297 |
|
Net cash used in investing activities |
|
(4,218 |
) |
|
|
(11,354 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Payments of long-term debt |
|
(462,698 |
) |
|
|
(120,000 |
) |
Payments under finance lease obligations |
|
(6 |
) |
|
|
(59 |
) |
Proceeds from long-term debt |
|
431,490 |
|
|
|
103,500 |
|
Payment of debt issuance costs |
|
(13,622 |
) |
|
|
(4 |
) |
Cash distributions paid |
|
(198 |
) |
|
|
(198 |
) |
Net cash used in financing activities |
|
(45,034 |
) |
|
|
(16,761 |
) |
|
|
|
|
||||
Net increase in cash |
|
12 |
|
|
|
260 |
|
Cash at beginning of period |
|
45 |
|
|
|
52 |
|
Cash at end of period |
$ |
57 |
|
|
$ |
312 |
|
Non-cash additions to property, plant and equipment |
$ |
1,813 |
|
|
$ |
1,514 |
|
SEGMENT OPERATING INCOME (Unaudited) (Dollars and volumes in thousands, except BBL per day) |
||||||||||||||
Terminalling and Storage Segment |
||||||||||||||
Comparative Results of Operations for the Three Months Ended |
||||||||||||||
|
Three Months Ended |
|
Variance |
|
Percent Change |
|||||||||
|
2023 |
|
2022 |
|
|
|||||||||
|
(In thousands, except BBL per day) |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
Revenues |
$ |
23,919 |
|
|
$ |
22,371 |
|
|
$ |
1,548 |
|
|
7 |
% |
Cost of products sold |
|
6 |
|
|
|
5 |
|
|
|
1 |
|
|
20 |
% |
Operating expenses |
|
14,308 |
|
|
|
14,940 |
|
|
|
(632 |
) |
|
(4 |
) % |
Selling, general and administrative expenses |
|
549 |
|
|
|
495 |
|
|
|
54 |
|
|
11 |
% |
Depreciation and amortization |
|
5,599 |
|
|
|
7,000 |
|
|
|
(1,401 |
) |
|
(20 |
) % |
|
|
3,457 |
|
|
|
(69 |
) |
|
|
3,526 |
|
|
5,110 |
% |
Other operating loss, net |
|
(349 |
) |
|
|
(43 |
) |
|
|
(306 |
) |
|
(712 |
) % |
Operating income (loss) |
$ |
3,108 |
|
|
$ |
(112 |
) |
|
$ |
3,220 |
|
|
2,875 |
% |
|
|
|
|
|
|
|
|
|||||||
Shore-based throughput volumes (gallons) |
|
43,349 |
|
|
|
13,634 |
|
|
|
29,715 |
|
|
218 |
% |
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) |
|
6,500 |
|
|
|
6,500 |
|
|
|
— |
|
|
— |
% |
Transportation Segment |
||||||||||||
Comparative Results of Operations for the Three Months Ended |
||||||||||||
|
Three Months Ended |
|
Variance |
|
Percent Change |
|||||||
|
2023 |
|
2022 |
|
|
|||||||
|
(In thousands) |
|
|
|||||||||
Revenues |
$ |
61,939 |
|
$ |
51,897 |
|
$ |
10,042 |
|
|
19 |
% |
Operating expenses |
|
46,190 |
|
|
39,202 |
|
|
6,988 |
|
|
18 |
% |
Selling, general and administrative expenses |
|
2,549 |
|
|
2,169 |
|
|
380 |
|
|
18 |
% |
Depreciation and amortization |
|
3,762 |
|
|
3,573 |
|
|
189 |
|
|
5 |
% |
|
$ |
9,438 |
|
$ |
6,953 |
|
$ |
2,485 |
|
|
36 |
% |
Other operating income, net |
|
4 |
|
|
29 |
|
|
(25 |
) |
|
(86 |
) % |
Operating income |
$ |
9,442 |
|
$ |
6,982 |
|
$ |
2,460 |
|
|
35 |
% |
Sulfur Services Segment |
||||||||||||
Comparative Results of Operations for the Three Months Ended |
||||||||||||
|
Three Months Ended |
|
Variance |
|
Percent Change |
|||||||
|
2023 |
|
2022 |
|
|
|||||||
|
(In thousands) |
|
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|||||
Services |
$ |
3,358 |
|
$ |
3,084 |
|
$ |
274 |
|
|
9 |
% |
Products |
|
32,321 |
|
|
56,039 |
|
|
(23,718 |
) |
|
(42 |
) % |
Total revenues |
|
35,679 |
|
|
59,123 |
|
|
(23,444 |
) |
|
(40 |
) % |
|
|
|
|
|
|
|
|
|||||
Cost of products sold |
|
23,949 |
|
|
39,258 |
|
|
(15,309 |
) |
|
(39 |
) % |
Operating expenses |
|
2,899 |
|
|
3,028 |
|
|
(129 |
) |
|
(4 |
) % |
Selling, general and administrative expenses |
|
1,617 |
|
|
1,504 |
|
|
113 |
|
|
8 |
% |
Depreciation and amortization |
|
2,677 |
|
|
2,709 |
|
|
(32 |
) |
|
(1 |
) % |
|
|
4,537 |
|
|
12,624 |
|
|
(8,087 |
) |
|
(64 |
) % |
Other operating income, net |
|
16 |
|
|
28 |
|
|
(12 |
) |
|
(43 |
) % |
Operating income |
$ |
4,553 |
|
$ |
12,652 |
|
$ |
(8,099 |
) |
|
(64 |
) % |
|
|
|
|
|
|
|
|
|||||
Sulfur (long tons) |
|
74 |
|
|
114 |
|
|
(40 |
) |
|
(35 |
) % |
Fertilizer (long tons) |
|
61 |
|
|
84 |
|
|
(23 |
) |
|
(27 |
) % |
Total sulfur services volumes (long tons) |
|
135 |
|
|
198 |
|
|
(63 |
) |
|
(32 |
) % |
Specialty Products Segment |
|||||||||||||
Comparative Results of Operations for the Three Months Ended |
|||||||||||||
|
Three Months Ended |
|
Variance |
|
Percent Change |
||||||||
|
2023 |
|
2022 |
|
|
||||||||
|
(In thousands) |
|
|
||||||||||
Products revenues |
$ |
132,277 |
|
|
$ |
154,009 |
|
$ |
(21,732 |
) |
|
(14 |
) % |
Cost of products sold |
|
124,451 |
|
|
|
139,780 |
|
|
(15,329 |
) |
|
(11 |
) % |
Operating expenses |
|
14 |
|
|
|
38 |
|
|
(24 |
) |
|
(63 |
) % |
Selling, general and administrative expenses |
|
2,290 |
|
|
|
2,938 |
|
|
(648 |
) |
|
(22 |
) % |
Depreciation and amortization |
|
863 |
|
|
|
1,204 |
|
|
(341 |
) |
|
(28 |
) % |
|
|
4,659 |
|
|
|
10,049 |
|
|
(5,390 |
) |
|
(54 |
) % |
Other operating loss, net |
|
(59 |
) |
|
|
— |
|
|
(59 |
) |
|
|
|
Operating income |
$ |
4,600 |
|
|
$ |
10,049 |
|
$ |
(5,449 |
) |
|
(54 |
) % |
|
|
|
|
|
|
|
|
||||||
NGL sales volumes (Bbls) |
|
1,691 |
|
|
|
1,597 |
|
|
94 |
|
|
6 |
% |
Other specialty products volumes (Bbls) |
|
84 |
|
|
|
98 |
|
|
(14 |
) |
|
(14 |
) % |
Total specialty products volumes (Bbls) |
|
1,775 |
|
|
|
1,695 |
|
|
80 |
|
|
5 |
% |
Unallocated Selling, General and Administrative Expenses |
|||||||||||
Comparative Results of Operations for the Three Months Ended |
|||||||||||
|
Three Months Ended |
|
Variance |
|
Percent Change |
||||||
|
2023 |
|
2022 |
|
|
||||||
|
(In thousands) |
|
|
||||||||
Indirect selling, general and administrative expenses |
$ |
4,198 |
|
$ |
4,122 |
|
$ |
76 |
|
2 |
% |
Non-GAAP Financial Measures
The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business |
|||||||
|
Three Months Ended |
||||||
|
|||||||
|
2023 |
|
2022 |
||||
|
(in thousands) |
||||||
Net income (loss) |
$ |
(5,086 |
) |
|
$ |
11,478 |
|
Adjustments: |
|
|
|
||||
Interest expense |
|
15,657 |
|
|
|
12,429 |
|
Income tax expense |
|
1,835 |
|
|
|
1,541 |
|
Depreciation and amortization |
|
12,901 |
|
|
|
14,486 |
|
EBITDA |
|
25,307 |
|
|
|
39,934 |
|
Adjustments: |
|
|
|
||||
(Gain) loss on disposition of property, plant and equipment |
|
388 |
|
|
|
(14 |
) |
Loss on extinguishment of debt |
|
5,121 |
|
|
|
— |
|
Lower of cost or market and other non-cash adjustments |
|
(9,133 |
) |
|
|
— |
|
Unit-based compensation |
|
52 |
|
|
|
34 |
|
Adjusted EBITDA |
$ |
21,735 |
|
|
$ |
39,954 |
|
Adjustments: |
|
|
|
||||
Less: net income associated with butane optimization business |
|
(305 |
) |
|
|
(5,694 |
) |
Plus: lower of cost or market and other non-cash adjustments |
$ |
9,133 |
|
|
$ |
— |
|
Adjusted EBITDA after giving effect to the exit of the butane optimization business |
$ |
30,563 |
|
|
$ |
34,260 |
|
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business, Distributable Cash Flow, and Adjusted Free Cash Flow |
|||||||
|
Three Months Ended |
||||||
|
|||||||
|
2023 |
|
2022 |
||||
|
(in thousands) |
||||||
Net cash provided by operating activities |
$ |
49,264 |
|
|
$ |
28,375 |
|
Interest expense 1 |
|
13,582 |
|
|
|
11,646 |
|
Current income tax expense |
|
658 |
|
|
|
620 |
|
Lower of cost or market and other non-cash adjustments |
|
(9,133 |
) |
|
|
— |
|
Commodity cash flow hedging gains reclassified to earnings |
|
— |
|
|
|
816 |
|
Net cash paid for closed commodity derivative positions included in AOCI |
|
— |
|
|
|
615 |
|
Changes in operating assets and liabilities which (provided) used cash: |
|
|
|
||||
Accounts and other receivables, inventories, and other current assets |
|
(48,382 |
) |
|
|
(3,896 |
) |
Trade, accounts and other payables, and other current liabilities |
|
15,974 |
|
|
|
957 |
|
Other |
|
(228 |
) |
|
|
821 |
|
Adjusted EBITDA |
|
21,735 |
|
|
|
39,954 |
|
Adjustments: |
|
|
|
||||
Less: net income loss associated with butane optimization business |
|
(305 |
) |
|
|
(5,694 |
) |
Plus: lower of cost or market and other non-cash adjustments |
|
9,133 |
|
|
|
— |
|
Adjusted EBITDA after giving effect to the exit of the butane optimization business |
|
30,563 |
|
|
|
34,260 |
|
Adjustments: |
|
|
|
||||
Interest expense |
|
(15,657 |
) |
|
|
(12,429 |
) |
Income tax expense |
|
(1,835 |
) |
|
|
(1,541 |
) |
Deferred income taxes |
|
1,177 |
|
|
|
921 |
|
Amortization of debt discount |
|
400 |
|
|
|
— |
|
Amortization of deferred debt issuance costs |
|
1,675 |
|
|
|
783 |
|
Payments for plant turnaround costs |
|
(229 |
) |
|
|
(1,435 |
) |
Maintenance capital expenditures |
|
(6,634 |
) |
|
|
(5,399 |
) |
Distributable cash flow |
|
9,460 |
|
|
|
15,160 |
|
Principal payments under finance lease obligations |
|
(6 |
) |
|
|
(59 |
) |
Expansion capital expenditures |
|
(757 |
) |
|
|
(3,101 |
) |
Adjusted free cash flow |
$ |
8,697 |
|
|
$ |
12,000 |
|
1 Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by (used in) operating activities. |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230419005833/en/
(877) 256-6644
investor.relations@mmlp.com
Source:
FAQ
What was Martin Midstream Partners' revenue in Q1 2023?
What was the net loss reported by MMLP for Q1 2023?
What is the adjusted EBITDA for Martin Midstream in Q1 2023?
What is the cash distribution declared by MMLP for the first quarter of 2023?
How did the leverage ratio change from December 2022 to March 2023 for MMLP?
