The Partnership's distributable cash flow for the third quarter of 2014 was
The Partnership's adjusted EBITDA for the third quarter of 2014 was
The Partnership's adjusted EBITDA for the nine months ended
Revenues for the third quarter of 2014 were
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 financial statements as of and for the three and nine months ended
"Operationally, we benefitted from stronger than anticipated cash flow from our Marine Transportation segment. Expecting a full recovery versus last quarter and having all of our regulatory maintenance behind us, we saw excellent operating conditions, significantly beating our internal forecast.
"Likewise, the NGL businesses housed within our Natural Gas Services segment were stronger than we forecasted this quarter. Additionally, this segment benefitted from both the full quarter contribution of our West Texas LPG pipeline investment and a one month contribution from our recent
"Finally, I would like to announce certain changes to the Martin Midstream GP LLC Board of Directors. These changes stem from the investment made by
Quarterly Cash Distribution
The quarterly cash distribution of
Investors' Conference Call
An investors' conference call to review the third quarter results will be held on
About
The Partnership is a publicly traded limited partnership with a diverse set of operations focused primarily in the
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
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 historic 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.
|
||
CONSOLIDATED AND CONDENSED BALANCE SHEETS | ||
(Dollars in thousands) | ||
2014 |
2013 |
|
(Unaudited) | (Audited) | |
Assets | ||
Cash | $ 3,006 | $ 16,542 |
Accounts and other receivables, less allowance for doubtful accounts of |
132,839 | 163,855 |
Product exchange receivables | 6,351 | 2,727 |
Inventories | 120,369 | 94,902 |
Due from affiliates | 14,581 | 12,099 |
Fair value of derivatives | 879 | — |
Other current assets | 10,256 | 7,353 |
Assets held for sale | 700 | — |
Total current assets | 288,981 | 297,478 |
Property, plant and equipment, at cost | 1,359,620 | 929,183 |
Accumulated depreciation | (334,150) | (304,808) |
Property, plant and equipment, net | 1,025,470 | 624,375 |
Goodwill | 23,802 | 23,802 |
Investment in unconsolidated entities | 135,219 | 128,662 |
Debt issuance costs, net | 13,833 | 15,659 |
Note receivable - |
15,000 | — |
Other assets, net | 86,431 | 7,943 |
$ 1,588,736 | $ 1,097,919 | |
Liabilities and Partners' Capital | ||
Trade and other accounts payable | $ 120,037 | $ 142,951 |
Product exchange payables | 18,860 | 9,595 |
Due to affiliates | 11,713 | 2,596 |
Income taxes payable | 1,002 | 1,204 |
Fair value of derivatives | 542 | — |
Other accrued liabilities | 13,041 | 20,242 |
Total current liabilities | 165,195 | 176,588 |
Long-term debt | 910,077 | 658,695 |
Other long-term obligations | 3,174 | 2,219 |
Total liabilities | 1,078,446 | 837,502 |
Commitments and contingencies | ||
Partners' capital | 510,290 | 260,417 |
$ 1,588,736 | $ 1,097,919 |
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 |
|
||||
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS | ||||
(Unaudited) | ||||
(Dollars in thousands, except per unit amounts) | ||||
Three Months Ended | Nine Months Ended | |||
|
|
|||
2014 | 2013 | 2014 | 2013 | |
Revenues: | ||||
Terminalling and storage * | $ 31,880 | $ 28,956 | $ 97,848 | $ 85,267 |
Marine transportation * | 24,282 | 24,217 | 69,845 | 74,694 |
Natural gas services | 5,764 | — | 5,764 | — |
Sulfur services | 3,037 | 3,001 | 9,112 | 9,003 |
Product sales: * | ||||
Natural gas services | 230,294 | 204,296 | 812,232 | 650,605 |
Sulfur services | 46,993 | 39,096 | 157,706 | 164,375 |
Terminalling and storage | 47,735 | 60,050 | 153,451 | 167,546 |
325,022 | 303,442 | 1,123,389 | 982,526 | |
Total revenues | 389,985 | 359,616 | 1,305,958 | 1,151,490 |
Costs and expenses: | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Natural gas services * | 218,356 | 196,308 | 777,676 | 626,609 |
Sulfur services * | 38,841 | 33,994 | 122,009 | 131,577 |
Terminalling and storage * | 42,239 | 52,718 | 137,074 | 146,806 |
299,436 | 283,020 | 1,036,759 | 904,992 | |
Expenses: | ||||
Operating expenses * | 48,391 | 43,444 | 140,543 | 129,839 |
Selling, general and administrative * | 10,302 | 7,211 | 27,653 | 20,624 |
Depreciation and amortization | 16,743 | 13,698 | 45,329 | 37,944 |
Total costs and expenses | 374,872 | 347,373 | 1,250,284 | 1,093,399 |
Impairment of long-lived assets | (3,445) | — | (3,445) | — |
Other operating income | 347 | — | 401 | 796 |
Operating income | 12,015 | 12,243 | 52,630 | 58,887 |
Other income (expense): | ||||
Equity in earnings (loss) of unconsolidated entities | 2,655 | (577) | 4,297 | (878) |
Interest expense, net | (11,459) | (11,060) | (34,351) | (31,058) |
Debt prepayment premium | — | — | (7,767) | — |
Reduction in carrying value of investment in Cardinal due to the purchase of the controlling interest | (30,102) | — | (30,102) | — |
Other, net | 286 | (111) | 169 | (134) |
Total other expense | (38,620) | (11,748) | (67,754) | (32,070) |
Net income (loss) before taxes | (26,605) | 495 | (15,124) | 26,817 |
Income tax expense | (300) | (303) | (954) | (910) |
Net income (loss) | (26,905) | 192 | (16,078) | 25,907 |
Less general partner's interest in net (income) loss | 539 | (4) | 322 | (518) |
Less (income) loss allocable to unvested restricted units | 62 | (1) | 33 | (67) |
Limited partners' interest in net income (loss) | $ (26,304) | $ 187 | $ (15,723) | $ 25,322 |
Net income (loss) per unit attributable to limited partners - basic | $ (0.82) | $ 0.01 | $ (0.54) | $ 0.95 |
Weighted average limited partner units - basic | 32,243 | 26,552 | 29,271 | 26,561 |
Net income (loss) per unit attributable to limited partners - diluted | $ (0.82) | $ 0.01 | $ (0.54) | $ 0.95 |
Weighted average limited partner units - diluted | 32,243 | 26,579 | 29,271 | 26,581 |
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 |
||||
*Related Party Transactions Included Above | ||||
|
||||
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS | ||||
(Unaudited) | ||||
(Dollars in thousands, except per unit amounts) | ||||
*Related Party Transactions Shown Below | ||||
Three Months Ended | Nine Months Ended | |||
|
|
|||
2014 | 2013 | 2014 | 2013 | |
Revenues: | ||||
Terminalling and storage | $ 19,045 | $ 18,044 | $ 55,798 | $ 52,857 |
Marine transportation | 6,076 | 5,943 | 18,340 | 18,828 |
Product Sales | 883 | 964 | 6,484 | 4,012 |
Costs and expenses: | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Natural gas services | 9,908 | 7,799 | 29,169 | 23,391 |
Sulfur services | 4,491 | 4,539 | 13,808 | 13,514 |
Terminalling and storage | 9,174 | 13,488 | 25,571 | 39,638 |
Expenses: | ||||
Operating expenses | 21,013 | 17,902 | 58,500 | 53,410 |
Selling, general and administrative | 7,230 | 4,356 | 18,103 | 12,944 |
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 |
|
||||
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL | ||||
(Unaudited) | ||||
(Dollars in thousands) | ||||
Partners' Capital | ||||
|
General Partner | |||
Units | Amount | Amount | Total | |
Balances - |
26,566,776 | $ 349,490 | $ 8,472 | $ 357,962 |
Net income | — | 25,389 | 518 | 25,907 |
Issuance of restricted units | 63,750 | — | — | — |
Forfeiture of restricted units | (250) | — | — | — |
General partner contribution | — | — | 37 | 37 |
Cash distributions | — | (61,902) | (1,384) | (63,286) |
Excess purchase price over carrying value of acquired assets | — | (301) | — | (301) |
Unit-based compensation | — | 737 | — | 737 |
Purchase of treasury units | (6,000) | (250) | — | (250) |
Balances - |
26,624,276 | $ 313,163 | $ 7,643 | $ 320,806 |
Balances - |
26,625,026 | $ 254,028 | $ 6,389 | $ 260,417 |
Net loss | — | (15,756) | (322) | (16,078) |
Issuance of common units | 8,727,673 | 331,571 | — | 331,571 |
Issuance of restricted units | 6,900 | — | — | — |
Forfeiture of restricted units | (3,500) | — | — | — |
General partner contribution | — | — | 6,995 | 6,995 |
Cash distributions | — | (66,473) | (1,506) | (67,979) |
Unit-based compensation | — | 589 | — | 589 |
Excess purchase price over carrying value of acquired assets | — | (4,948) | — | (4,948) |
Purchase of treasury units | (6,400) | (277) | — | (277) |
Balances - |
35,349,699 | $ 498,734 | $ 11,556 | $ 510,290 |
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 |
|
||
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS | ||
(Unaudited) | ||
(Dollars in thousands) | ||
Nine Months Ended | ||
|
||
2014 | 2013 | |
Cash flows from operating activities: | ||
Net income (loss) |
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 45,329 | 37,944 |
Amortization of deferred debt issuance costs | 5,415 | 2,890 |
Amortization of debt discount | 1,305 | 230 |
Amortization of premium on notes payable | (164) | — |
Gain on sale of property, plant and equipment | (54) | (796) |
Impairment of long-lived assets | 3,445 | — |
Equity in (earnings) loss of unconsolidated entities | (4,297) | 878 |
Reduction in carrying value of investment in Cardinal due to purchase of the controlling interest | 30,102 | — |
Non-cash mark-to-market on derivatives | 489 | — |
Unit-based compensation | 589 | 737 |
Preferred dividends on MET investment | 1,498 | 1,171 |
Return on investment | 600 | — |
Other | — | 7 |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | ||
Accounts and other receivables | 32,443 | 43,043 |
Product exchange receivables | (3,624) | (219) |
Inventories | (25,223) | (8,362) |
Due from affiliates | (2,482) | (5,188) |
Other current assets | 1,219 | (6,358) |
Trade and other accounts payable | (29,600) | (29,641) |
Product exchange payables | 9,265 | 936 |
Due to affiliates | 9,117 | (525) |
Income taxes payable | (202) | (440) |
Other accrued liabilities | (7,214) | 8,842 |
Change in other non-current assets and liabilities | 1,123 | (210) |
Net cash provided by continuing operating activities | 53,001 | 70,846 |
Net cash used in discontinued operating activities | — | (8,678) |
Net cash provided by operating activities | 53,001 | 62,168 |
Cash flows from investing activities: | ||
Payments for property, plant and equipment | (58,522) | (68,591) |
Acquisitions, less cash acquired | (100,046) | (73,921) |
Payments for plant turnaround costs | (4,000) | — |
Proceeds from sale of property, plant and equipment | 702 | 4,719 |
Proceeds from involuntary conversion of property, plant and equipment | 2,475 | — |
Investment in unconsolidated entities | (134,413) | — |
Return of investments from unconsolidated entities | 726 | 1,551 |
Contributions to unconsolidated entities | (3,386) | (30,877) |
Net cash used in investing activities | (296,464) | (167,119) |
Cash flows from financing activities: | ||
Payments of long-term debt | (1,458,096) | (518,000) |
Payments of notes payable and capital lease obligations | — | (251) |
Proceeds from long-term debt | 1,426,250 | 691,000 |
Net proceeds from issuance of common units | 331,571 | — |
General partner contribution | 6,995 | 37 |
Purchase of treasury units | (277) | (250) |
Payment of debt issuance costs | (3,589) | (9,115) |
Excess purchase price over carrying value of acquired assets | (4,948) | (301) |
Cash distributions paid | (67,979) | (63,286) |
Net cash provided by financing activities | 229,927 | 99,834 |
Net decrease in cash | (13,536) | (5,117) |
Cash at beginning of period | 16,542 | 5,162 |
Cash at end of period |
|
|
Non-cash additions to property, plant and equipment |
|
$ — |
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 |
|
||||
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 |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands, except BBL per day) | ||||
Revenues: | ||||
Services | $ 33,213 | $ 30,151 | $ 3,062 | 10% |
Products | 47,735 | 60,054 | (12,319) | (21)% |
Total revenues | 80,948 | 90,205 | (9,257) | (10)% |
Cost of products sold | 43,193 | 53,215 | (10,022) | (19)% |
Operating expenses | 21,506 | 19,427 | 2,079 | 11% |
Selling, general and administrative expenses | 786 | 979 | (193) | (20)% |
Depreciation and amortization | 9,512 | 8,532 | 980 | 11% |
5,951 | 8,052 | (2,101) | (26)% | |
Other operating income | 347 | — | 347 | |
Operating income | $ 6,298 | $ 8,052 | $ (1,754) | (22)% |
Lubricant sales volumes (gallons) | 8,193 | 10,638 | (2,445) | (23)% |
Shore-based throughput volumes (gallons) | 64,338 | 65,516 | (1,178) | (2)% |
Smackover refinery throughput volumes (BBL per day) | 7,123 | 6,878 | 245 | 4% |
|
173,315 | 101,921 | 71,394 | 70% |
Comparative Results of Operations for the Nine Months Ended |
||||
Nine Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands, except BBL per day) | ||||
Revenues: | ||||
Services | $ 101,711 | $ 88,770 | $ 12,941 | 15% |
Products | 153,451 | 167,550 | (14,099) | (8)% |
Total revenues | 255,162 | 256,320 | (1,158) | —% |
Cost of products sold | 139,028 | 148,624 | (9,596) | (6)% |
Operating expenses | 61,628 | 54,860 | 6,768 | 12% |
Selling, general and administrative expenses | 2,484 | 2,422 | 62 | 3% |
Depreciation and amortization | 27,902 | 22,925 | 4,977 | 22% |
24,120 | 27,489 | (3,369) | (12)% | |
Other operating income | 385 | 168 | 217 | 129% |
Operating income | $ 24,505 | $ 27,657 | $ (3,152) | (11)% |
Lubricant sales volumes (gallons) | 26,170 | 29,885 | (3,715) | (12)% |
Shore-based throughput volumes (gallons) | 186,956 | 207,533 | (20,577) | (10)% |
Smackover refinery throughput volumes (BBL per day) | 5,803 | 6,780 | (977) | (14)% |
|
160,332 | 105,783 | 54,549 | 52% |
|
||||
SEGMENT OPERATING INCOME | ||||
(Unaudited) | ||||
(Dollars and volumes in thousands, except BBL per day) | ||||
Natural Gas Services Segment | ||||
Comparative Results of Operations for the Three Months Ended |
||||
Three Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues: | ||||
Marine transportation | $ — | $ 630 | $ (630) | (100)% |
Services | 5,764 | — | 5,764 | |
Products | 230,294 | 204,296 | 25,998 | 13% |
Total revenues | 236,058 | 204,926 | 31,132 | 15% |
Cost of products sold | 218,882 | 196,719 | 22,163 | 11% |
Operating expenses | 4,546 | 1,863 | 2,683 | 144% |
Selling, general and administrative expenses | 3,507 | 1,156 | 2,351 | 203% |
Depreciation and amortization | 2,684 | 598 | 2,086 | 349% |
Operating income | $ 6,439 | $ 4,590 | $ 1,849 | 40% |
Distributions from unconsolidated entities | $ 982 | $ 761 | $ 221 | 29% |
NGL sales volumes (Bbls) | 3,737 | 3,162 | 575 | 18% |
Comparative Results of Operations for the Nine Months Ended |
||||
Nine Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues: | ||||
Marine transportation | $ 365 | $ 2,475 | $ (2,110) | (85)% |
Services | 5,764 | — | 5,764 | |
Products | 812,232 | 650,605 | 161,627 | 25% |
Total revenues | 818,361 | 653,080 | 165,281 | 25% |
Cost of products sold | 779,136 | 627,748 | 151,388 | 24% |
Operating expenses | 8,779 | 3,834 | 4,945 | 129% |
Selling, general and administrative expenses | 6,684 | 2,800 | 3,884 | 139% |
Depreciation and amortization | 3,863 | 1,444 | 2,419 | 168% |
Operating income | $ 19,899 | $ 17,254 | $ 2,645 | 15% |
Distributions from unconsolidated entities | $ 2,323 | $ 2,722 | $ (399) | (15)% |
NGL sales volumes (Bbls) | 12,734 | 9,883 | 2,851 | 29% |
|
||||
SEGMENT OPERATING INCOME | ||||
(Unaudited) | ||||
(Dollars and volumes in thousands, except BBL per day) | ||||
Sulfur Services Segment | ||||
Comparative Results of Operations for the Three Months Ended |
||||
Three Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues: | ||||
Services | $ 3,037 | $ 3,001 | $ 36 | 1% |
Products | 46,993 | 39,096 | 7,897 | 20% |
Total revenues | 50,030 | 42,097 | 7,933 | 19% |
Cost of products sold | 38,932 | 34,085 | 4,847 | 14% |
Operating expenses | 4,497 | 4,166 | 331 | 8% |
Selling, general and administrative expenses | 1,166 | 1,069 | 97 | 9% |
Depreciation and amortization | 2,078 | 2,024 | 54 | 3% |
Operating income | $ 3,357 | $ 753 | $ 2,604 | 346% |
Sulfur (long tons) | 251.0 | 211.8 | 39.2 | 19% |
Fertilizer (long tons) | 52.1 | 44.8 | 7.3 | 16% |
Total sulfur services volumes (long tons) | 303.1 | 256.6 | 46.5 | 18% |
Comparative Results of Operations for the Nine Months Ended |
||||
Nine Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues: | ||||
Services | $ 9,112 | $ 9,003 | $ 109 | 1% |
Products | 157,706 | 164,375 | (6,669) | (4)% |
Total revenues | 166,818 | 173,378 | (6,560) | (4)% |
Cost of products sold | 122,281 | 131,849 | (9,568) | (7)% |
Operating expenses | 13,283 | 12,791 | 492 | 4% |
Selling, general and administrative expenses | 3,404 | 3,132 | 272 | 9% |
Depreciation and amortization | 6,092 | 5,947 | 145 | 2% |
Operating income | $ 21,758 | $ 19,659 | $ 2,099 | 11% |
Sulfur (long tons) | 645.5 | 614.9 | 30.6 | 5% |
Fertilizer (long tons) | 233.1 | 219.8 | 13.3 | 6% |
Total sulfur services volumes (long tons) | 878.6 | 834.7 | 43.9 | 5% |
|
||||
SEGMENT OPERATING INCOME | ||||
(Unaudited) | ||||
(Dollars and volumes in thousands, except BBL per day) | ||||
Marine Transportation Segment | ||||
Comparative Results of Operations for the Three Months Ended |
||||
Three Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues | $ 25,859 | $ 24,751 | $ 1,108 | 4% |
Operating expenses | 19,181 | 19,352 | (171) | (1)% |
Selling, general and administrative expenses | 364 | 228 | 136 | 60% |
Depreciation and amortization | 2,469 | 2,544 | (75) | (3)% |
3,845 | 2,627 | 1,218 | 46% | |
Impairment of long-lived assets | (3,445) | — | (3,445) | |
Operating income | $ 400 | $ 2,627 | $ (2,227) | (85)% |
Comparative Results of Operations for the Nine Months Ended |
||||
Nine Months Ended |
||||
2014 | 2013 | Variance |
Percent Change |
|
(In thousands) | ||||
Revenues | $ 73,255 | $ 75,004 | $ (1,749) | (2)% |
Operating expenses | 60,805 | 61,417 | (612) | (1)% |
Selling, general and administrative expenses | 867 | 1,000 | (133) | (13)% |
Depreciation and amortization | 7,472 | 7,628 | (156) | (2)% |
4,111 | 4,959 | (848) | (17)% | |
Impairment of long-lived assets | (3,445) | — | (3,445) | |
Other operating income | 16 | 628 | (612) | (97)% |
Operating income | $ 682 | $ 5,587 | $ (4,905) | (88)% |
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
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow | ||||
Three Months Ended | Nine Months Ended | |||
|
|
|||
2014 | 2013 | 2014 | 2013 | |
Net income (loss) | $ (26,905) | $ 192 | $ (16,078) | $ 25,907 |
Adjustments: | ||||
Interest expense | 11,459 | 11,060 | 34,351 | 31,058 |
Income tax expense | 300 | 303 | 954 | 910 |
Depreciation and amortization | 16,743 | 13,698 | 45,329 | 37,944 |
EBITDA | 1,597 | 25,253 | 64,556 | 95,819 |
Adjustments: | ||||
Equity in (earnings) loss of unconsolidated entities | (2,655) | 577 | (4,297) | 878 |
Gain on sale of property, plant and equipment | — | — | (54) | (796) |
Impairment of long-lived assets | 3,445 | — | 3,445 | — |
Reduction in carrying value of investment in Cardinal due to the purchase of the controlling interest | 30,102 | — | 30,102 | — |
Debt prepayment premium | — | — | 7,767 | — |
Distributions from unconsolidated entities | 982 | 761 | 2,323 | 2,722 |
Unit-based compensation | 201 | 257 | 589 | 737 |
Adjusted EBITDA | 33,672 | 26,848 | 104,431 | 99,360 |
Adjustments: | ||||
Interest expense | (11,459) | (11,060) | (34,351) | (31,058) |
Income tax expense | (300) | (303) | (954) | (910) |
Amortization of debt discount | — | 77 | 1,305 | 230 |
Amortization of debt premium | (82) | — | (164) | — |
Amortization of deferred debt issuance costs | 827 | 815 | 5,415 | 2,890 |
Non-cash mark-to-market on derivatives | 1,036 | — | 489 | — |
Payments of installment notes payable and capital lease obligations | — | (91) | — | (251) |
Payments for plant turnaround costs | (90) | — | (4,000) | — |
Maintenance capital expenditures | (4,306) | (2,973) | (13,260) | (7,473) |
Distributable Cash Flow | $ 19,298 | $ 13,313 | $ 58,911 | $ 62,788 |
CONTACT:Source:Joe McCreery , Head of Investor Relations (903) 988-6425 and (877) 256-6644
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