Martin Midstream Partners Reports Second Quarter 2021 Financial Results and Declares Quarterly Cash Distribution

Rhea-AI Summary

Martin Midstream Partners L.P. (Nasdaq:MMLP) reported a net loss of $6.6 million for Q2 2021, worsening from a loss of $2.2 million in Q2 2020. Revenue rose to $184.3 million compared to $140.6 million year-over-year. Adjusted EBITDA decreased to $22.5 million from $23.9 million. The company anticipates improved asset utilization due to increasing refinery demand as the economy recovers, despite ongoing challenges from COVID-19, particularly in sulfur services. A quarterly distribution of $0.005 per unit was declared, payable on August 13, 2021.

Positive

• Revenue increased to $184.3 million for Q2 2021, up from $140.6 million in Q2 2020.
• Transportation segment showed improved operating income at $0.7 million, up from $0.6 million in 2020.
• Quarterly distribution of $0.005 per unit declared.

Negative

• Net loss of $6.6 million for Q2 2021 compared to a loss of $2.2 million in Q2 2020.
• Adjusted EBITDA decreased to $22.5 million from $23.9 million year-over-year.
• Sulfur Services operating income fell to $6.3 million from $7.4 million in the previous year.

Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") today announced its financial results for the second quarter of 2021.

“For the second quarter of 2021, the Partnership had a solid performance in line with our annual projected cash flows of between $95 million to $102 million,” stated Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership. “As the country returns to a more open economy and refinery utilization increases, we have seen heightened demand for our services particularly within the land transportation and lubricants businesses. However, the impact of COVID-19 is still reflected in a reduction in sulfur service volumes and lower marine day rates year over year. As expected, marine utilization has increased from last quarter and we anticipate the continued economic recovery will drive demand upward allowing for the further utilization of our asset base.”

“Looking to the third quarter, which is seasonally our weakest due to the cyclical nature of both the fertilizer and butane businesses, we amended our revolving credit facility in response to rising commodity prices and the continued impact of COVID-19 on the Partnership’s trailing twelve month cash flows. I’d like thank our lenders for recognizing our ongoing commitment to capital discipline through their support of the amendment.”

SECOND QUARTER 2021 OPERATING RESULTS BY BUSINESS SEGMENT

TERMINALLING AND STORAGE (“T&S”)

T&S Operating Income for the three months ended June 30, 2021 and 2020 was $3.7 million and $3.3 million, respectively.

Adjusted segment EBITDA for T&S was $10.6 million for each of the three month periods ended June 30, 2021 and 2020, reflecting increased volumes on packaged lubricants products, offset by expired capital recovery fees at the Smackover Refinery.

TRANSPORTATION

Transportation Operating Income for the three months ended June 30, 2021 and 2020 was $0.7 million and $0.6 million, respectively.

Adjusted segment EBITDA for Transportation was $5.0 million and $4.9 million for the three months ended June 30, 2021 and 2020, respectively, reflecting higher land transportation load count and rates, offset by lower marine day rates coupled with a reduction in marine equipment.

SULFUR SERVICES

Sulfur Services Operating Income for the three months ended June 30, 2021 and 2020 was $6.3 million and $7.4 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $8.9 million and $10.8 million for the three months ended June 30, 2021 and 2020, respectively, reflecting lower refinery utilization volumes during the second quarter of 2021 as a result of continued effects of COVID-19.

NATURAL GAS LIQUIDS (“NGL”)

NGL Operating Income for the three months ended June 30, 2021 and 2020 was $0.7 million and $1.1 million, respectively.

Adjusted segment EBITDA for NGL was $1.7 million and $1.6 million for the three months ended June 30, 2021 and 2020, respectively, primarily reflecting increased margins in our butane optimization business, offset by a reduction in NGL margins due to rising commodity prices.

UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (“USGA”)

USGA expenses included in operating income for the three months ended June 30, 2021 and 2020 were $3.8 million and $4.4 million, respectively.

USGA expenses included in adjusted EBITDA for the three months ended June 30, 2021 and 2020 were $3.7 million and $4.0 million, respectively, primarily reflecting a reduction in overhead allocated from Martin Resource Management.

LIQUIDITY

At June 30, 2021, the Partnership had $180 million drawn on its $300 million revolving credit facility, an increase of $4 million from March 31, 2021. The Partnership’s leverage ratio, as calculated under the revolving credit facility, was 5.3 times and 5.4 times on June 30, 2021 and March 31, 2021, respectively. The Partnership is in compliance with all debt covenants as of June 30, 2021 and March 31, 2021.

REVOLVING CREDIT FACILITY AMENDMENT

The Partnership announced today the amendment of its revolving credit facility effective July 16, 2021. The amendment revises certain financial covenant ratios and reduces the aggregate amount of commitments from $300 million to $275 million, among other things.

Royal Bank of Canada serves as administrative agent and collateral agent for the facility. Baker Botts L.L.P acted as legal counsel to the Partnership.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2021. The distribution is payable on August 13, 2021 to common unitholders of record as of the close of business on August 6, 2021. The ex-dividend date for the cash distribution is August 5, 2021.

QUALIFIED NOTICE TO NOMINEES

This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

COVID-19 RESPONSE

The Partnership continues to evaluate protocols in response to the COVID-19 pandemic, including the impact of variants of COVID-19, such as the Delta variant. Where possible, employee work from home initiatives remain and travel restrictions have been lifted. Employees are encouraged to continue to exercise safety measures to protect the welfare of each other and the communities they serve.

RESULTS OF OPERATIONS

The Partnership had a net loss for the three months ended June 30, 2021 of $6.6 million, a loss of $0.17 per limited partner unit. The Partnership had a net loss for the three months ended June 30, 2020 of $2.2 million, a loss of $0.06 per limited partner unit. Adjusted EBITDA for the three months ended June 30, 2021 was $22.5 million compared to the three months ended June 30, 2020 of $23.9 million. Distributable cash flow for the three months ended June 30, 2021 was $7.3 million compared to the three months ended June 30, 2020 of $12.5 million.

The Partnership had a net loss for the six months ended June 30, 2021 of $4.1 million, a loss of $0.10 per limited partner unit. The Partnership had net income for the six months ended June 30, 2020 of $6.6 million, or $0.17 per limited partner unit. Adjusted EBITDA for the six months ended June 30, 2021 was $53.4 million compared to the six months ended June 30, 2020 of $54.9 million. Distributable cash flow for the six months ended June 30, 2021 was $20.1 million compared to the six months ended June 30, 2020 of $30.8 million.

Revenues for the three months ended June 30, 2021 were $184.3 million compared to the three months ended June 30, 2020 of $140.6 million. Revenues for the six months ended June 30, 2021 were $385.3 million compared to the six months ended June 30, 2020 of $339.5 million.

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 second quarter 2021 to the Partnership's Adjusted EBITDA for the second quarter 2020.

Investors' Conference Call

Date: Friday, July 23, 2021
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (833) 900-2251
Conference ID: 1691938

Replay Dial In # (800) 585-8367 – Conference ID: 1691938

A webcast of the conference call will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.

About Martin Midstream Partners

Martin Midstream Partners L.P., headquartered in Kilgore, Texas, 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: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution and transportation services. To learn more, visit www.MMLP.com.

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 guidance or to financial or operational estimates or projections rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the current and potential impacts of the COVID-19 pandemic generally, on an industry-specific basis, and on the Partnership’s specific operations and business, (ii) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (iii) 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 Securities and Exchange Commission. The Partnership 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 except where required to do so by law.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA, (3) distributable cash flow and (4) adjusted free cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA and Adjusted EBITDA. The Partnership defines 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. 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. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.

Distributable Cash Flow. The Partnership defines Distributable Cash Flow as Adjusted EBITDA less cash paid for interest, cash paid for income taxes, maintenance capital expenditures, and plant turnaround costs. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its 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. Adjusted free cash flow is defined 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 the Partnership's 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. The Partnership believes 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. The Partnership's calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.

EBITDA, adjusted EBITDA, distributable cash flow, and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

MMLP-F

MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED BALANCE SHEETS (Dollars in thousands)
		June 30, 2021				December 31, 2020
		(Unaudited)				(Audited)
Assets
Cash		$	681			$	4,958
Accounts and other receivables, less allowance for doubtful accounts of $225 and $261, respectively			55,051				52,748
Inventories			71,358				54,122
Due from affiliates			20,619				14,807
Other current assets			6,913				8,991
Total current assets			154,622				135,626
Property, plant and equipment, at cost			891,746				889,108
Accumulated depreciation			(530,624	)			(509,237	)
Property, plant and equipment, net			361,122				379,871
Goodwill			16,823				16,823
Right-of-use assets			19,955				22,260
Deferred income taxes, net			21,495				22,253
Other assets, net			2,862				2,805
Total assets		$	576,879			$	579,638
Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations		$	236			$	31,497
Trade and other accounts payable			55,453				51,900
Product exchange payables			700				373
Due to affiliates			1,939				435
Income taxes payable			308				556
Fair value of derivatives			412				207
Other accrued liabilities			29,394				34,407
Total current liabilities			88,442				119,375
Long-term debt, net			517,311				484,597
Finance lease obligations			169				289
Operating lease liabilities			13,423				15,181
Other long-term obligations			8,631				7,067
Total liabilities			627,976				626,509
Commitments and contingencies
Partners’ capital (deficit)			(51,097	)			(46,871	)
Total partners’ capital (deficit)			(51,097	)			(46,871	)
Total liabilities and partners' capital (deficit)		$	576,879			$	579,638

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,
		2021				2020				2021				2020
Revenues:
Terminalling and storage *		$	18,702			$	19,908			$	37,080			$	40,382
Transportation *			34,926				31,485				64,741				70,426
Sulfur services			2,949				2,914				5,899				5,829
Product sales: *
Natural gas liquids			67,232				30,299				165,317				112,510
Sulfur services			35,337				30,506				67,222				55,914
Terminalling and storage			25,147				25,526				45,008				54,460
			127,716				86,331				277,547				222,884
Total revenues			184,293				140,638				385,267				339,521
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas liquids *			61,590				24,293				140,725				94,128
Sulfur services *			24,177				17,559				45,391				32,854
Terminalling and storage *			20,226				21,438				34,728				45,118
			105,993				63,290				220,844				172,100
Expenses:
Operating expenses *			47,313				44,202				91,947				95,484
Selling, general and administrative *			8,960				9,858				19,569				20,320
Depreciation and amortization			14,483				15,343				28,917				30,582
Total costs and expenses			176,749				132,693				361,277				318,486
Other operating income (loss), net			89				15				(671	)			2,525
Operating income			7,633				7,960				23,319				23,560
Other income (expense):
Interest expense, net			(13,309	)			(9,377	)			(26,262	)			(19,302	)
Gain on retirement of senior unsecured notes			—				—				—				3,484
Other, net			(1	)			4				(1	)			7
Total other expense			(13,310	)			(9,373	)			(26,263	)			(15,811	)
Net income (loss) before taxes			(5,677	)			(1,413	)			(2,944	)			7,749
Income tax expense			(935	)			(790	)			(1,157	)			(1,137	)
Net income (loss)			(6,612	)			(2,203	)			(4,101	)			6,612
Less general partner's interest in net (income) loss			132				44				82				(132	)
Less (income) loss allocable to unvested restricted units			20				10				10				(45	)
Limited partners' interest in net income (loss)		$	(6,460	)		$	(2,149	)		$	(4,009	)		$	6,435
Net income (loss) per unit attributable to limited partners - basic		$	(0.17	)		$	(0.06	)		$	(0.10	)		$	0.17
Net income (loss) per unit attributable to limited partners - diluted		$	(0.17	)		$	(0.06	)		$	(0.10	)		$	0.17
Weighted average limited partner units - basic			38,687,874				38,661,852				38,690,228				38,651,357
Weighted average limited partner units - diluted			38,687,874				38,661,852				38,690,228				38,651,897
*Related Party Transactions Shown Below

MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2021			2020			2021			2020
Revenues:*
Terminalling and storage		$	15,569		$	15,942		$	30,875		$	31,816
Transportation			4,889			5,393			8,899			11,287
Product Sales			71			38			185			130
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services			2,403			2,554			4,938			5,321
Terminalling and storage			7,036			4,249			11,604			10,026
Expenses:
Operating expenses			19,590			19,440			37,958			41,211
Selling, general and administrative			7,285			8,055			15,965			16,367

MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) (Unaudited) (Dollars in thousands)
		Partners’ Capital (Deficit)
		Common Limited							General Partner Amount
		Units			Amount								Total
Balances - January 1, 2020		38,863,389			$	(38,342	)		$	2,146			$	(36,196	)
Net income		—				6,480				132				6,612
Issuance of common units, net		—				—				—				—
Issuance of restricted units		81,000				—				—				—
Forfeiture of restricted units		(84,134	)			—				—				—
General partner contribution		—				—				—				—
Cash distributions		—				(4,825	)			(98	)			(4,923	)
Unit-based compensation		—				709				—				709
Purchase of treasury units		(7,748	)			(9	)			—				(9	)
Balances - June 30, 2020		38,852,507			$	(35,987	)		$	2,180			$	(33,807	)
Balances - January 1, 2021		38,851,174			$	(48,776	)		$	1,905			$	(46,871	)
Net loss		—				(4,019	)			(82	)			(4,101	)
Issuance of restricted units		42,168				—				—				—
Forfeiture of restricted units		(83,436	)			—				—				—
Cash distributions		—				(388	)			(8	)			(396	)
Unit-based compensation		—				288				—				288
Purchase of treasury units		(7,156	)			(17	)			—				(17	)
Balances - June 30, 2021		38,802,750			$	(52,912	)		$	1,815			$	(51,097	)

MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)
		Six Months Ended
		June 30,
		2021				2020
Cash flows from operating activities:
Net income (loss)		$	(4,101	)		$	6,612
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			28,917				30,582
Amortization of deferred debt issuance costs			1,521				991
Amortization of premium on notes payable			—				(153	)
Deferred income tax expense			758				1,018
Loss on sale of property, plant and equipment, net			671				175
Gain on retirement of senior unsecured notes			—				(3,484	)
Derivative (income) loss			884				(1,463	)
Net cash received (paid) for commodity derivatives			(679	)			796
Unit-based compensation			288				709
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables			(2,303	)			37,180
Inventories			(17,572	)			(3,128	)
Due from affiliates			(5,812	)			(1,060	)
Other current assets			1,435				(5,547	)
Trade and other accounts payable			3,335				(16,502	)
Product exchange payables			327				811
Due to affiliates			1,504				(1,026	)
Income taxes payable			(248	)			26
Other accrued liabilities			(3,053	)			(2,452	)
Change in other non-current assets and liabilities			213				541
Net cash provided by operating activities			6,085				44,626
Cash flows from investing activities:
Payments for property, plant and equipment			(8,200	)			(19,053	)
Payments for plant turnaround costs			(1,694	)			(231	)
Proceeds from involuntary conversion of property, plant and equipment			—				4,369
Proceeds from sale of property, plant and equipment			133				1,768
Net cash used in investing activities			(9,761	)			(13,147	)
Cash flows from financing activities:
Payments of long-term debt			(144,790	)			(156,860	)
Payments under finance lease obligations			(2,591	)			(3,222	)
Proceeds from long-term debt			147,500				131,000
Purchase of treasury units			(17	)			(9	)
Payment of debt issuance costs			(307	)			(269	)
Cash distributions paid			(396	)			(4,923	)
Net cash used in financing activities			(601	)			(34,283	)
Net decrease in cash			(4,277	)			(2,804	)
Cash at beginning of period			4,958				2,856
Cash at end of period		$	681			$	52
Non-cash additions to property, plant and equipment		$	686			$	1,276

MARTIN MIDSTREAM PARTNERS L.P. 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 June 30, 2021 and 2020
		Three Months Ended June 30,							Variance				Percent Change
		2021			2020
		(In thousands, except BBL per day)
Revenues:
Services		$	20,358		$	21,436			$	(1,078	)		(5	)%
Products			25,166			25,540				(374	)		(1	)%
Total revenues			45,524			46,976				(1,452	)		(3	)%
Cost of products sold			20,759			22,697				(1,938	)		(9	)%
Operating expenses			12,664			12,254				410			3	%
Selling, general and administrative expenses			1,468			1,398				70			5	%
Depreciation and amortization			6,996			7,272				(276	)		(4	)%
			3,637			3,355				282			8	%
Other operating income (loss), net			61			(3	)			64			2,133	%
Operating income		$	3,698		$	3,352			$	346			10	%
Shore-based throughput volumes (guaranteed minimum) (gallons)			20,000			20,000				—			—	%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)			6,500			6,500				—			—	%

Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
		Six Months Ended June 30,								Variance				Percent Change
		2021				2020
		(In thousands, except BBL per day)
Revenues:
Services		$	40,317			$	43,603			$	(3,286	)		(8	)%
Products			45,041				54,507				(9,466	)		(17	)%
Total revenues			85,358				98,110				(12,752	)		(13	)%
Cost of products sold			35,700				47,685				(11,985	)		(25	)%
Operating expenses			25,457				25,205				252			1	%
Selling, general and administrative expenses			2,967				3,057				(90	)		(3	)%
Depreciation and amortization			14,101				14,728				(627	)		(4	)%
			7,133				7,435				(302	)		(4	)%
Other operating loss, net			(5	)			(3,054	)			3,049			100	%
Operating income		$	7,128			$	4,381			$	2,747			63	%
Shore-based throughput volumes (guaranteed minimum) (gallons)			40,000				40,000				—			—	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)			6,500				6,500				—			—	%

Transportation Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
		Three Months Ended June 30,						Variance				Percent Change
		2021			2020
		(In thousands)
Revenues		$	38,349		$	35,259		$	3,090			9	%
Operating expenses			31,485			28,331			3,154			11	%
Selling, general and administrative expenses			1,858			2,058			(200	)		(10	)%
Depreciation and amortization			4,331			4,328			3			—	%
			675			542			133			25	%
Other operating income, net			21			13			8			62	%
Operating income		$	696		$	555		$	141			25	%

Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
		Six Months Ended June 30,								Variance				Percent Change
		2021				2020
		(In thousands)
Revenues		$	72,318			$	80,433			$	(8,115	)		(10	)%
Operating expenses			60,989				63,493				(2,504	)		(4	)%
Selling, general and administrative expenses			3,658				4,193				(535	)		(13	)%
Depreciation and amortization			8,329				8,608				(279	)		(3	)%
		$	(658	)		$	4,139			$	(4,797	)		(116	)%
Other operating income (loss), net			17				(1,195	)			1,212			101	%
Operating income (loss)		$	(641	)		$	2,944			$	(3,585	)		(122	)%

Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
		Three Months Ended June 30,						Variance				Percent Change
		2021			2020
		(In thousands)
Revenues:
Services		$	2,949		$	2,914		$	35			1	%
Products			35,337			30,506			4,831			16	%
Total revenues			38,286			33,420			4,866			15	%
Cost of products sold			25,397			18,601			6,796			37	%
Operating expenses			2,804			3,142			(338	)		(11	)%
Selling, general and administrative expenses			1,215			1,166			49			4	%
Depreciation and amortization			2,568			3,131			(563	)		(18	)%
			6,302			7,380			(1,078	)		(15	)%
Other operating income, net			6			5			1			20	%
Operating income		$	6,308		$	7,385		$	(1,077	)		(15	)%
Sulfur (long tons)			146			166			(20	)		(12	)%
Fertilizer (long tons)			84			91			(7	)		(8	)%
Total sulfur services volumes (long tons)			230			257			(27	)		(11	)%

Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
		Six Months Ended June 30,						Variance				Percent Change
		2021			2020
		(In thousands)
Revenues:
Services		$	5,899		$	5,829		$	70			1	%
Products			67,222			55,927			11,295			20	%
Total revenues			73,121			61,756			11,365			18	%
Cost of products sold			47,820			35,405			12,415			35	%
Operating expenses			4,813			6,052			(1,239	)		(20	)%
Selling, general and administrative expenses			2,456			2,369			87			4	%
Depreciation and amortization			5,288			6,025			(737	)		(12	)%
			12,744			11,905			839			7	%
Other operating income, net			6			6,776			(6,770	)		(100	)%
Operating income		$	12,750		$	18,681		$	(5,931	)		(32	)%
Sulfur (long tons)			219			349			(130	)		(37	)%
Fertilizer (long tons)			179			165			14			8	%
Total sulfur services volumes (long tons)			398			514			(116	)		(23	)%

Natural Gas Liquids Segment
Comparative Results of Operations for the Three Months Ended June 30, 2021 and 2020
		Three Months Ended June 30,						Variance				Percent Change
		2021			2020
		(In thousands)
Products Revenues		$	67,232		$	30,300		$	36,932			122	%
Cost of products sold			64,176			26,579			37,597			141	%
Operating expenses			1,061			1,150			(89	)		(8	)%
Selling, general and administrative expenses			697			930			(233	)		(25	)%
Depreciation and amortization			588			612			(24	)		(4	)%
			710			1,029			(319	)		(31	)%
Other operating income, net			1			—			1
Operating income		$	711		$	1,029		$	(318	)		(31	)%
NGL sales volumes (Bbls)			1,259			1,698			(439	)		(26	)%

Comparative Results of Operations for the Six Months Ended June 30, 2021 and 2020
		Six Months Ended June 30,								Variance				Percent Change
		2021				2020
		(In thousands)
Products Revenues		$	165,317			$	112,515			$	52,802			47	%
Cost of products sold			146,688				100,839				45,849			45	%
Operating expenses			2,056				2,089				(33	)		(2	)%
Selling, general and administrative expenses			2,904				2,077				827			40	%
Depreciation and amortization			1,199				1,221				(22	)		(2	)%
			12,470				6,289				6,181			98	%
Other operating loss, net			(689	)			(2	)			(687	)		(34,350	)%
Operating income		$	11,781			$	6,287			$	5,494			87	%
NGL sales volumes (Bbls)			3,404				4,143				(739	)		(18	)%

Unallocated Selling, General and Administrative Expenses
Comparative Results of Operations for the Three and Six Months Ended June 30, 2021 and 2020
		Three Months Ended June 30,						Variance				Percent Change			Six Months Ended June 30,						Variance				Percent Change
		2021			2020										2021			2020
		(In thousands)													(In thousands)
Unallocated selling, general and administrative expenses		$	3,780		$	4,361		$	(581	)		(13	)%		$	7,699		$	8,733		$	(1,034	)		(12	)%

Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the six months ended June 30, 2021 and 2020.

Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
		(in thousands)								(in thousands)
Net income (loss)		$	(6,612	)		$	(2,203	)		$	(4,101	)		$	6,612
Adjustments:
Interest expense, net			13,309				9,377				26,262				19,302
Income tax expense			935				790				1,157				1,137
Depreciation and amortization			14,483				15,343				28,917				30,582
EBITDA			22,115				23,307				52,235				57,633
Adjustments:
(Gain) loss on sale of property, plant and equipment, net			(89	)			(15	)			671				175
Unrealized mark-to-market on commodity derivatives			424				—				205				(669	)
Lower of cost or market adjustments			—				—				—				335
Gain on repurchase of senior unsecured notes			—				—				—				(3,484	)
Unit-based compensation			48				363				288				709
Adjusted EBITDA			22,498				23,905				53,399				54,949
Adjustments:
Interest expense, net			(13,309	)			(9,377	)			(26,262	)			(19,302	)
Income tax expense			(935	)			(790	)			(1,157	)			(1,137	)
Amortization of debt premium			—				(76	)			—				(153	)
Amortization of deferred debt issuance costs			766				499				1,521				991
Deferred income tax expense			683				732				758				1,018
Payments for plant turnaround costs			(20	)			(81	)			(1,694	)			(231	)
Maintenance capital expenditures			(2,370	)			(2,280	)			(6,441	)			(5,306	)
Distributable Cash Flow		$	7,313			$	12,532			$	20,124			$	30,829
Adjustments:
Expansion capital expenditures		$	(1,147	)		$	(2,585	)		$	(1,977	)		$	(7,931	)
Principal payments under finance lease obligations			(160	)			(1,358	)			(2,591	)			(3,222	)
Adjusted Free Cash Flow		$	6,006			$	8,589			$	15,556			$	19,676

 

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FAQ

What are the financial results for Martin Midstream Partners (MMLP) in Q2 2021?

Martin Midstream Partners reported a net loss of $6.6 million, revenue of $184.3 million, and adjusted EBITDA of $22.5 million.

What is the quarterly cash distribution for MMLP?

MMLP declared a quarterly cash distribution of $0.005 per unit, payable on August 13, 2021.

How did the COVID-19 pandemic impact MMLP's Q2 2021 performance?

The pandemic led to a reduction in sulfur service volumes and lower marine day rates, contributing to a higher net loss and decreased adjusted EBITDA.

What is the future outlook for MMLP following Q2 2021 results?

MMLP expects continued economic recovery to enhance service demand, though Q3 is anticipated to be seasonally weaker.