• Third Quarter Net Income of $39.4 Million including $48.6 Million Gain from Sale of Interest in WTLPG
  
• Agreement to Acquire Martin Transport, Inc. for $135.0 Million Plus a Potential $10.0 Million Earn-Out
  
• Acquisition is Expected to Strengthen Distribution Coverage Ratio
  
• Management Reiterates Support for Current Distribution Level

KILGORE, Texas, Oct. 24, 2018 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq: MMLP) (the "Partnership") announced today its financial results for the quarter ended September 30, 2018.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, “I am excited to announce the Partnership has reached an agreement with Martin Resource Management Corporation (“MRMC”) to acquire Martin Transport, Inc. (“MTI”) for $135.0 million plus a potential additional $10.0 million earn-out based on a performance threshold.  The price reflects an EBITDA multiple between 5.7 times and 6.0 times based on MTI's forecasted 2019 net income of $9.3 million and EBITDA of $23.6 million.  This acquisition will be funded from the Partnership’s revolving credit facility allowing it to redeploy much of the $193.7 million in net proceeds received when we sold our interest in the West Texas LPG Pipeline Limited Partnership (“WTLPG”) on July 31, 2018.  Despite redeploying capital of only 70% of the net proceeds received for the WTLPG interest, the acquisition is estimated to generate roughly $16.0 million of additional incremental EBITDA in 2019 over the average historical cash flows received from WTLPG.

“MTI transports petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns twenty-three terminals located throughout the Gulf Coast and Midwest.  MRMC has owned and operated MTI or its predecessor for over 40 years and is integral to MMLP’s routine movements of sulfur and NGL’s.  Based on operational estimates and current transportation market conditions, this acquisition from our general partner will provide strategic long-term growth for the Partnership.

“In the first twelve months of operation, the acquisition is expected to contribute approximately $23.6 million and $14.7 million of EBITDA and distributable cash flow, respectively, to the Partnership. This will drive our estimated distribution coverage ratio to approximately 1.20 times by year-end 2019, which forms the basis for management's continued support of the current distribution level.  Further, due to continued rising line haul rates combined with MTI’s available truck capacity, we estimate, net income,  EBITDA and distributable cash flow attributable to MTI to grow to approximately $17.0 million, $33.2 million and $20.9 million, respectively, for the year of 2022.  In addition, this drop down will provide stability in our quarterly cash flows to offset the seasonal nature of our fertilizer and butane businesses.  We expect this transaction to close in January of 2019.

“For the twelve months ended September 30, 2018 our proforma distribution coverage ratio was 1.04 times when taking into effect the WTLPG sale.  Historically the third quarter is our weakest due to seasonal timing in the fertilizer and natural gas liquids businesses which is reflected in our guidance.  Further, for the third quarter of 2018 our distributable cash flow fell short of guidance due to compressed margins from rising fertilizer raw materials costs and the sale of WTLPG, slightly offset by lower than forecasted maintenance capital expenditures coupled with continued outperformance in our Marine Transportation segment due to improved day rates and fleet utilization.

“As expected during the third quarter, our debt level rose due to the seasonal butane inventory build in our Natural Gas Services segment.  Anticipating this annual occurrence, the Partnership amended its revolving credit facility in February of 2018 to include an inventory financing sublimit tranche related to eligible inventory volumes that are under sales or swap contracts when calculating consolidated funded debt.  Accordingly, the Partnership’s calculated leverage ratio of 4.29 times includes a $74.0 million reduction of consolidated funded debt under this provision.  Further, the applicable interest rate under our credit facility is reduced twenty-five basis points due to obtaining a leverage ratio under 4.50 times.

“Looking ahead to the fourth quarter, our butane optimization business will begin capturing cash flows from forward sales, the marine transportation division looks to continue improved performance relative to guidance, and the beginning of seasonal demand for fertilizer products should all provide cash flow strength.  Added together with anticipated lower than forecasted maintenance capital expenditures, our distribution coverage ratio will rebound, as it historically does, in the fourth quarter.  However, due to market weakness that has affected fertilizer margins throughout 2018, at this time we are lowering our estimate to approximately 0.90 times at year end 2018.”

The Partnership had a net loss from continuing operations for the third quarter 2018 of $9.7 million, a loss of $0.24 per limited partner unit.  The Partnership had a net loss from continuing operations for the third quarter 2017 of $17.0 million, a loss of $0.44 per limited partner unit.  The Partnership's adjusted EBITDA from continuing operations for the third quarter 2018 was $25.4 million compared to adjusted EBITDA from continuing operations for the third quarter 2017 of $25.5 million.

The Partnership had a net loss from continuing operations for the nine months ended September 30, 2018 of $6.7 million, a loss of $0.17 per limited partner unit.  The Partnership had a net loss from continuing operations for the nine months ended September 30, 2017 of $4.1 million, a loss of $0.10 per limited partner unit.  The Partnership's adjusted EBITDA from continuing operations for the nine months ended September 30, 2018 was $96.8 million compared to adjusted EBITDA from continuing operations for the nine months ended September 30, 2017 of $102.9 million.

The Partnership's distributable cash flow from continuing operations for the third quarter 2018 was $6.9 million compared to distributable cash flow from continuing operations for the third quarter 2017 of $8.3 million.

The Partnership's distributable cash flow from continuing operations for the nine months ended September 30, 2018 was $41.6 million compared to distributable cash flow from continuing operations for the nine months ended September 30, 2017 of $55.8 million.

Revenues for the third quarter 2018 were $219.0 million compared to the third quarter 2017 of $193.1 million.  Revenues for the nine months ended September 30, 2018 were $719.8 million compared to the nine months ended September 30, 2017 of $640.4 million.

On July 31, 2018, the Partnership divested of its 20 percent non-operating interest in West Texas LPG Pipeline L.P.  ("WTLPG") for net proceeds of $193.7 million after fees and expenses.  The Partnership recorded a gain on the disposition of $48.6 million.  The Partnership has presented the results of operations and cash flows relating to its investment in WTLPG as discontinued operations for the three and nine months ended September 30, 2018 and 2017.

The Partnership had net income from discontinued operations for the three months ended September 30, 2018 of $49.1 million, or $1.24 per limited partner unit.  The Partnership had net income from discontinued operations for the three months ended September 30, 2017 of $0.7 million, or $0.02 per limited partner unit.

The Partnership had net income from discontinued operations for the nine months ended September 30, 2018 of $51.7 million, or $1.30 per limited partner unit.  The Partnership had net income from discontinued operations for the nine months ended September 30, 2017 of $2.4 million, or $0.06 per limited partner unit.

Distributable cash flow and adjusted EBITDA from discontinued operations were $0.4 million for the three months ended September 30, 2018.  Distributable cash flow and adjusted EBITDA from discontinued operations were $1.7 million for the three months ended September 30, 2017.

Distributable cash flow and adjusted EBITDA from discontinued operations were $3.3 million for the nine months ended September 30, 2018.  Distributable cash flow and adjusted EBITDA from discontinued operations were $4.1 million for the nine months ended September 30, 2017.

Distributable cash flow, EBITDA and adjusted EBITDA 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, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three and nine months ended September 30, 2018 and certain prior periods.  These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on October 24, 2018.

An attachment accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/11d265c1-1ed8-4b41-870c-121bc4484f21. 

About Martin Transport, Inc.

MTI was incorporated in 1988 to transport petroleum products, liquid petroleum gas, molten sulfur, sulfuric acid, paper mill liquids, chemical, dry bulk and various other bulk liquid commodities.  As of the end of September 2018, MTI owned 561 trucks, 1,307 Trailers and 23 terminals across the Southeast and Midwest.  An attachment further describing the acquisition is available at http://resource.globenewswire.com/Resource/Download/d78d14b7-e9d2-4ee8-8316-3afe93d80e02.

As a member of the Responsible Care Partnership Program, MTI is dedicated to the safe operations of its transportation fleet and providing quality service to its customers.

Advisors

The following advisors served in their respective roles for the transaction:  Stephens Inc. provided a fairness opinion to the Conflicts Committee of the Partnership's General Partner ("Conflicts Committee") and to the Board of Directors of MRMC. Houlihan Lokey Capital, Inc. provided a fairness opinion to the Board of Directors of the the Partnership's General Partner. Clark Hill Strasburger acted as legal counsel to MRMC.  Munsch Hardt Kopf & Harr, P.C., acted as legal counsel to the Conflicts Committee and Locke Lord LLP acted as legal counsel to the Partnership

Investors' Conference Call

A conference call to review the third quarter results will be held on Thursday, October 25, 2018 at 8:00 a.m. Central Time. The live conference call will be available by calling (877) 878-2695. For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 2995789. An archive of the replay will be on Martin Midstream Partners’ website at www.martinmidstream.com. 

About Martin Midstream Partners

The Partnership 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 segments include: (1) natural gas services, including liquids transportation and distribution services and natural gas storage; (2) terminalling, storage and packaging services for petroleum products and by-products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.

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 and other factors, many of which are outside the Partnership's 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 and (3) distributable 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.  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.  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.

EBITDA, adjusted EBITDA and distributable 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.

Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com or by contacting:

Sharon Taylor - Head of Investor Relations
(877) 256-6644

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)

	September 30, 2018				December 31, 2017
	(Unaudited)				(Audited)
Assets
Cash	$	3,186			$	27
Accounts and other receivables, less allowance for doubtful accounts of $347 and $314, respectively	72,280				107,242
Product exchange receivables	185				29
Inventories (Note 6)	134,059				97,252
Due from affiliates	22,933				23,668
Other current assets	4,921				4,866
Assets held for sale (Note 4)	6,152				9,579
Total current assets	243,716				242,663
Property, plant and equipment, at cost	1,279,365				1,253,065
Accumulated depreciation	(465,079		)		(421,137		)
Property, plant and equipment, net	814,286				831,928
Goodwill	17,296				17,296
Investment in WTLPG (Note 7)	—				128,810
Other assets, net (Note 9)	25,751				32,801
Total assets	$	1,101,049			$	1,253,498
Liabilities and Partners’ Capital
Trade and other accounts payable	$	71,176			$	92,567
Product exchange payables	9,647				11,751
Due to affiliates	3,651				3,168
Income taxes payable	448				510
Fair value of derivatives (Note 10)	2,968				72
Other accrued liabilities (Note 9)	18,876				26,340
Total current liabilities	106,766				134,408
Long-term debt, net (Note 8)	698,680				812,632
Other long-term obligations	10,718				8,217
Total liabilities	816,164				955,257
Commitments and contingencies (Note 15)
Partners’ capital (Note 11)	284,885				298,241
Total partners’ capital	284,885				298,241
Total liabilities and partners' capital	$	1,101,049			$	1,253,498

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
Revenues:
Terminalling and storage *	$	24,354			$	25,752			$	72,508			$	75,105
Marine transportation *	12,727				11,407				36,920				36,661
Natural gas services*	11,232				14,253				40,392				43,756
Sulfur services	2,787				2,850				8,361				8,550
Product sales: *
Natural gas services	101,919				83,831				351,725				284,154
Sulfur services	27,981				24,174				98,565				95,728
Terminalling and storage	38,047				30,861				111,351				96,421
	167,947				138,866				561,641				476,303
Total revenues	219,047				193,128				719,822				640,375
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas services *	99,346				77,368				329,945				255,745
Sulfur services *	21,363				19,716				73,998				65,406
Terminalling and storage *	33,801				27,372				99,967				85,398
	154,510				124,456				503,910				406,549
Expenses:
Operating expenses *	32,628				43,552				95,592				109,478
Selling, general and administrative *	9,257				9,085				27,339				27,816
Depreciation and amortization	18,741				20,286				58,842				65,948
Total costs and expenses	215,136				197,379				685,683				609,791
Other operating loss	(384		)		(187		)		(876		)		(327		)
Operating income (loss)	3,527				(4,438		)		33,263				30,257
Other income (expense):
Interest expense, net	(13,140		)		(12,538		)		(39,591		)		(34,677		)
Other, net	18				55				18				605
Total other expense	(13,122		)		(12,483		)		(39,573		)		(34,072		)
Net loss before taxes	(9,595		)		(16,921		)		(6,310		)		(3,815		)
Income tax expense	(91		)		(108		)		(372		)		(301		)
Loss from continuing operations	(9,686		)		(17,029		)		(6,682		)		(4,116		)
Income from discontinued operations, net of income taxes	49,132				743				51,700				2,402
Net income (loss)	39,446				(16,286		)		45,018				(1,714		)
Less general partner's interest in net (income) loss	(789		)		325				(900		)		34
Less (income) loss allocable to unvested restricted units	(27		)		38				(29		)		—
Limited partners' interest in net income (loss)	$	38,630			$	(15,923	)		$	44,089			$	(1,680	)

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

*Related Party Transactions Shown Below

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

*Related Party Transactions Included Above

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
Revenues:*
Terminalling and storage	$	19,619			$	21,910			$	60,151			$	61,945
Marine transportation	4,009				4,098				11,727				12,610
Natural gas services	—				4				—				122
Product Sales	180				828				1,248				2,982
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Natural gas services	2,856				3,033				10,273				14,836
Sulfur services	4,337				3,555				13,208				10,997
Terminalling and storage	7,392				4,817				21,959				14,003
Expenses:
Operating expenses	14,051				15,858				41,774				48,686
Selling, general and administrative	6,834				6,495				21,053				20,563

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
Allocation of net income (loss) attributable to:
Limited partner interest:
Continuing operations	$	(9,486	)		$	(16,649	)		$	(6,544	)		$	(4,034	)
Discontinued operations	48,116				726				50,633				2,354
	$	38,630			$	(15,923	)		$	44,089			$	(1,680	)
General partner interest:
Continuing operations	$	(193	)		$	(340	)		$	(134	)		$	(82	)
Discontinued operations	982				15				1,034				48
	$	789			$	(325	)		$	900			$	(34	)
Net income (loss) per unit attributable to limited partners:
Basic:
Continuing operations	$	(0.24	)		$	(0.44	)		$	(0.17	)		$	(0.10	)
Discontinued operations	1.24				0.02				1.30				0.06
	$	1.00			$	(0.42	)		$	1.13			$	(0.04	)
Weighted average limited partner units - basic	38,712				38,357				38,877				38,016
Diluted:
Continuing operations	$	(0.24	)		$	(0.44	)		$	(0.17	)		$	(0.10	)
Discontinued operations	1.24				0.02				1.30				0.06
	$	1.00			$	(0.42	)		$	1.13			$	(0.04	)
Weighted average limited partner units - diluted	38,738				38,357				38,889				38,016

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Dollars in thousands)

	Partners’ Capital
	Common Limited							General Partner Amount
	Units			Amount								Total
Balances - January 1, 2017	35,452,062			$	304,594			$	7,412			$	312,006
Net income	—			(1,680		)		(34		)		(1,714		)
Issuance of common units, net	2,990,000			51,061				—				51,061
Issuance of restricted units	12,000			—				—				—
Forfeiture of restricted units	(5,750	)		—				—				—
General partner contribution	—			—				1,098				1,098
Cash distributions	—			(56,177		)		(1,146		)		(57,323		)
Unit-based compensation	—			518				—				518
Purchase of treasury units	(200	)		(4		)		—				(4		)
Excess purchase price over carrying value of acquired assets	—			(7,887		)		—				(7,887		)
Reimbursement of excess purchase price over carrying value of acquired assets	—			1,125				—				1,125
Balances - September 30, 2017	38,448,112			$	291,550			$	7,330			$	298,880
Balances - January 1, 2018	38,444,612			$	290,927			$	7,314			$	298,241
Net income	—			44,118				900				45,018
Issuance of common units, net of issuance related costs	—			(118		)		—				(118		)
Issuance of restricted units	633,425			—				—				—
Forfeiture of restricted units	(23,000	)		—				—				—
Cash distributions	—			(57,653		)		(1,176		)		(58,829		)
Unit-based compensation	—			872				—				872
Excess purchase price over carrying value of acquired assets	—			(26		)		—				(26		)
Purchase of treasury units	(18,800	)		(273		)		—				(273		)
Balances - September 30, 2018	39,036,237			$	277,847			$	7,038			$	284,885

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)

	Nine Months Ended
	September 30,
	2018				2017
Cash flows from operating activities:
Net income (loss)	$	45,018			$	(1,714	)
Less:  Income from discontinued operations, net of income taxes	(51,700		)		(2,402		)
Net loss from continuing operations	(6,682		)		(4,116		)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	58,842				65,948
Amortization of deferred debt issuance costs	2,563				2,170
Amortization of premium on notes payable	(230		)		(230		)
Loss on sale of property, plant and equipment	876				327
Derivative loss	198				2,392
Net cash received (paid) for commodity derivatives	2,698				(6,429		)
Unit-based compensation	872				518
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	35,191				16,381
Product exchange receivables	(156		)		173
Inventories	(37,147		)		(48,022		)
Due from affiliates	735				(1,917		)
Other current assets	556				(411		)
Trade and other accounts payable	(18,230		)		2,222
Product exchange payables	(2,104		)		1,910
Due to affiliates	483				(5,169		)
Income taxes payable	(62		)		(420		)
Other accrued liabilities	(9,726		)		(3,766		)
Change in other non-current assets and liabilities	610				1,941
Net cash provided by continuing operating activities	29,287				23,502
Net cash provided by discontinued operating activities	3,254				4,055
Net cash provided by operating activities	32,541				27,557
Cash flows from investing activities:
Payments for property, plant and equipment	(31,497		)		(30,014		)
Acquisitions	—				(19,533		)
Payments for plant turnaround costs	(879		)		(1,583		)
Proceeds from sale of property, plant and equipment	1,269				1,604
Proceeds from repayment of Note receivable - affiliate	—				15,000
Other	—				(900		)
Net cash used in continuing investing activities	(31,107		)		(35,426		)
Net cash provided by (used in) discontinuing investing activities	177,256				(145		)
Net cash provided by (used in) investing activities	146,149				(35,571		)
Cash flows from financing activities:
Payments of long-term debt	(460,000		)		(242,000		)
Proceeds from long-term debt	345,000				262,000
Proceeds from issuance of common units, net of issuance related costs	(118		)		51,061
General partner contribution	—				1,098
Purchase of treasury units	(273		)		(4		)
Payment of debt issuance costs	(1,285		)		(56		)
Excess purchase price over carrying value of acquired assets	(26		)		(7,887		)
Reimbursement of excess purchase price over carrying value of acquired assets	—				1,125
Cash distributions paid	(58,829		)		(57,323		)
Net cash (used in) provided by financing activities	(175,531		)		8,014
Net increase in cash	3,159				—
Cash at beginning of period	27				15
Cash at end of period	$	3,186			$	15
Non-cash additions to property, plant and equipment	$	938			$	1,367

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 24, 2018.

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)

Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended September 30, 2018 and 2017
	Three Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands, except BBL per day)
Revenues:
Services	$	25,955			$	26,944			$	(989	)		(4	)%
Products	38,047				30,861				7,186				23	%
Total revenues	64,002				57,805				6,197				11	%
Cost of products sold	34,400				27,971				6,429				23	%
Operating expenses	13,890				24,242				(10,352		)		(43	)%
Selling, general and administrative expenses	1,304				1,668				(364		)		(22	)%
Depreciation and amortization	9,311				10,192				(881		)		(9	)%
	5,097				(6,268		)		11,365				181	%
Other operating loss	(361		)		(187		)		(174		)		(93	)%
Operating income (loss)	$	4,736			$	(6,455	)		$	11,191			173	%
Lubricant sales volumes (gallons)	6,326				5,217				1,109				21	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	20,000				41,666				(21,666		)		(52	)%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)	6,500				6,500				—				—	%

Comparative Results of Operations for the Nine Months Ended September 30, 2018 and 2017
	Nine Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands, except BBL per day)
Revenues:
Services	$	76,949			$	79,523			$	(2,574	)		(3	)%
Products	111,350				96,421				14,929				15	%
Total revenues	188,299				175,944				12,355				7	%
Cost of products sold	101,498				87,139				14,359				16	%
Operating expenses	40,246				51,402				(11,156		)		(22	)%
Selling, general and administrative expenses	3,894				4,437				(543		)		(12	)%
Depreciation and amortization	31,160				35,996				(4,836		)		(13	)%
	11,501				(3,030		)		14,531				480	%
Other operating loss	(397		)		(190		)		(207		)		(109	)%
Operating income (loss)	$	11,104			$	(3,220	)		$	14,324			445	%
Lubricant sales volumes (gallons)	18,644				15,912				2,732				17	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	60,000				124,998				(64,998		)		(52	)%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)	6,500				6,500				—				—	%

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)

Natural Gas Services Segment

Comparative Results of Operations for the Three Months Ended September 30, 2018 and 2017
	Three Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues:
Services	$	11,232			$	14,253			$	(3,021	)		(21	)%
Products	101,919				84,057				17,862				21	%
Total revenues	113,151				98,310				14,841				15	%
Cost of products sold	100,298				78,138				22,160				28	%
Operating expenses	6,162				5,528				634				11	%
Selling, general and administrative expenses	2,038				1,843				195				11	%
Depreciation and amortization	5,316				6,274				(958		)		(15	)%
	(663		)		6,527				(7,190		)		(110	)%
Other operating income	—				2				(2		)		(100	)%
Operating income (loss)	$	(663	)		$	6,529			$	(7,192	)		(110	)%
NGL sales volumes (Bbls)	1,774				1,943				(169		)		(9	)%

Comparative Results of Operations for the Nine Months Ended September 30, 2018 and 2017

	Nine Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues:
Services	$	40,392			$	43,756			$	(3,364	)		(8	)%
Products	351,725				284,380				67,345				24	%
Total revenues	392,117				328,136				63,981				19	%
Cost of products sold	332,440				258,444				73,996				29	%
Operating expenses	17,837				16,753				1,084				6	%
Selling, general and administrative expenses	6,709				6,910				(201		)		(3	)%
Depreciation and amortization	15,921				18,640				(2,719		)		(15	)%
	19,210				27,389				(8,179		)		(30	)%
Other operating income (loss)	(120		)		7				(127		)		(1,814	)%
Operating income	$	19,090			$	27,396			$	(8,306	)		(30	)%
NGL sales volumes (Bbls)	6,958				6,547				411				6	%

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)

Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended September 30, 2018 and 2017
	Three Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues:
Services	$	2,787			$	2,850			$	(63	)		(2	)%
Products	27,981				24,174				3,807				16	%
Total revenues	30,768				27,024				3,744				14	%
Cost of products sold	21,454				19,807				1,647				8	%
Operating expenses	2,960				3,557				(597		)		(17	)%
Selling, general and administrative expenses	1,149				1,071				78				7	%
Depreciation and amortization	2,113				2,020				93				5	%
	3,092				569				2,523				443	%
Other operating loss	—				(2		)		2				100	%
Operating income	$	3,092			$	567			$	2,525			445	%
Sulfur (long tons)	166				198				(32		)		(16	)%
Fertilizer (long tons)	50				52				(2		)		(4	)%
Total sulfur services volumes (long tons)	216				250				(34		)		(14	)%

                Comparative Results of Operations for the Nine Months Ended September 30, 2018 and 2017    

	Nine Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues:
Services	$	8,361			$	8,550			$	(189	)		(2	)%
Products	98,565				95,728				2,837				3	%
Total revenues	106,926				104,278				2,648				3	%
Cost of products sold	74,270				65,678				8,592				13	%
Operating expenses	8,801				10,221				(1,420		)		(14	)%
Selling, general and administrative expenses	3,230				3,099				131				4	%
Depreciation and amortization	6,263				6,083				180				3	%
	14,362				19,197				(4,835		)		(25	)%
Other operating income (loss)	14				(24		)		38				158	%
Operating income	$	14,376			$	19,173			$	(4,797	)		(25	)%
Sulfur (long tons)	520				607				(87		)		(14	)%
Fertilizer (long tons)	231				217				14				6	%
Total sulfur services volumes (long tons)	751				824				(73		)		(9	)%

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)

Marine Transportation Segment
Comparative Results of Operations for the Three Months Ended September 30, 2018 and 2017
	Three Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues	$	13,570			$	12,400			$	1,170			9	%
Operating expenses	10,418				11,176				(758		)		(7	)%
Selling, general and administrative expenses	378				112				266				238	%
Depreciation and amortization	2,001				1,800				201				11	%
	773				(688		)		1,461				212	%
Other operating loss	(23		)		—				(23		)
Operating income (loss)	$	750			$	(688	)		$	1,438			209	%

                Comparative Results of Operations for the Nine Months Ended September 30, 2018 and 2017

	Nine Months Ended September 30,								Variance				Percent Change
	2018				2017
	(In thousands)
Revenues	$	38,766			$	38,958			$	(192	)		—	%
Operating expenses	30,696				33,331				(2,635		)		(8	)%
Selling, general and administrative expenses	541				287				254				89	%
Depreciation and amortization	5,498				5,229				269				5	%
	$	2,031			$	111			$	1,920			1,730	%
Other operating loss	(373		)		(120		)		(253		)		(211	)%
Operating income (loss)	$	1,658			$	(9	)		$	1,667			18,522	%

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 three and nine months ended September 30, 2018 and 2017, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2018				2017				2018				2017
	(in thousands)
Net income (loss)	$	39,446			$	(16,286	)		$	45,018			$	(1,714	)
Less:  Income from discontinued operations, net of income taxes	(49,132		)		(743		)		(51,700		)		(2,402		)
Loss from continuing operations	(9,686		)		(17,029		)		(6,682		)		(4,116		)
Adjustments:
Interest expense, net	13,140				12,538				39,591				34,677
Income tax expense	91				108				372				301
Depreciation and amortization	18,741				20,286				58,842				65,948
EBITDA	22,286				15,903				92,123				96,810
Adjustments:
(Gain) loss on sale of property, plant and equipment	384				187				876				327
Unrealized mark-to-market on commodity derivatives	2,396				—				2,896				(4,037		)
Hurricane damage repair accrual	—				3,725				—				3,725
Asset retirement obligation revision	—				5,547				—				5,547
Unit-based compensation	352				113				872				518
Adjusted EBITDA	25,418				25,475				96,767				102,890
Adjustments:
Interest expense, net	(13,140		)		(12,538		)		(39,591		)		(34,677		)
Income tax expense	(91		)		(108		)		(372		)		(301		)
Amortization of debt premium	(77		)		(77		)		(230		)		(230		)
Amortization of deferred debt issuance costs	874				725				2,563				2,170
Payments for plant turnaround costs	(879		)		8				(879		)		(1,583		)
Maintenance capital expenditures	(5,247		)		(5,208		)		(16,619		)		(12,494		)
Distributable Cash Flow	$	6,858			$	8,277			$	41,639			$	55,775

Source: Martin Midstream Partners L.P.