Print page
Download PDF
« Previous Release | Next Release »
KILGORE, Texas, Mar 4, 2010 (GlobeNewswire via COMTEX News Network) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) announced today its financial results for the fourth quarter and year ended December 31, 2009.
MMLP reported net income for the fourth quarter of 2009 of $2.0 million, or $0.15 per limited partner unit. This compared to net income for the fourth quarter of 2008 of $17.0 million, or $1.08 per limited partner unit. Revenues for the fourth quarter of 2009 were $200.9 million compared to $236.1 million for the fourth quarter of 2008. Fourth quarter 2009 net income was negatively impacted by a $0.2 million, or $0.01 per limited partner unit, non-cash derivatives loss from certain commodity and interest rate hedges that did not qualify for hedge accounting. Fourth quarter 2008 net income was positively impacted by a $0.8 million, or $0.06 per limited partner unit, non-cash derivatives gain from certain commodity and interest rate hedges that did not qualify for hedge accounting.
MMLP reported net income for the year ended December 31, 2009 of $22.2 million, or $1.17 per limited partner unit. This compared to net income for the year ended December 31, 2008 of $43.6 million, or $2.72 per limited partner unit. Revenues for the year ended December 31, 2009 were $662.3 million, compared to revenues of $1.2 billion for the year ended December 31, 2008. Net income for the year ended December 31, 2009 was negatively impacted by $2.5 million, or $0.15 per limited partner unit, of non-cash derivatives losses from certain commodity and interest rate hedges that did not qualify for hedge accounting. Net income for the year ended December 31, 2009 was positively impacted by $6.0 million, or $0.41 per limited partner unit, of gains from the sale of property, plant and equipment ($5.0 million) and on the involuntary conversion of property, plant and equipment ($1.0 million) resulting from Hurricanes Gustav and Ike. Net income for the year ended December 31, 2008 was positively impacted by $2.3 million, or $0.16 per limited partner unit, of non-cash derivatives gains from certain commodity and interest rate hedges that did not qualify for hedge accounting. Additionally net income for the year ended December 31, 2008 was negatively impacted by $1.5 million, or $0.10 per limited partner unit, from losses in excess of insurance reimbursements resulting from Hurricanes Gustav and Ike.
The Partnership's distributable cash flow for the three months ended December 31, 2009 was $10.3 million and for the year ended December 31, 2009 was $55.7 million. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement.
Due to FASB ASC 850, the Partnership is required to account for the Cross Oil asset contribution as a transfer of net assets between entities under common control. As such, the revenues, earnings and distributable cash flow data set forth above and elsewhere herein require adjustment to be viewed on a comparable year over year basis. Before giving effect to the Cross transaction, revenue for the year ended December 31, 2009 would have been $633.8 million, compared to revenues of $1.2 billion for the year ended December 31, 2008. Additionally, net income for the year ended December 31, 2009 would have been $20.5 million compared to net income of $42.8 million for the year ended December 31, 2008. Finally, distributable cash flow for the year ended December 31, 2009 would have been $49.4 million. For a more detailed reconciliation of the Cross asset acquisition, please refer to Item 6. Selected Financial Data in our Form 10-K filed with the SEC on March 4, 2010.
Included with this press release are MMLP's consolidated financial statements as of and for the quarter and year ended December 31, 2009 and certain prior periods. These financial statements should be read in conjunction with the information contained in the Partnership's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 4, 2010.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said "For the year ended 2009, we are pleased with the Partnership's operational results and our position for continued future growth. Our distributable cash flow was $49.4 million, before giving effect to the Cross transaction, giving us a distribution coverage ratio of 1.04 times. Although we strive for higher coverage, this level was acceptable due to the diverse nature of our operating segments. Our marine transportation and natural gas services segments both experienced softness throughout most of the year. In contrast, our sulfur services division showed strong performance, specifically from its fertilizer business. Finally, our largest segment, terminalling and storage, generated its usual steady and consistent cash flow.
Last November, we completed the acquisition of the Cross lube processing assets from the owner of our General Partner, Martin Resource Management Corporation. With that transaction, your partnership added approximately $10-$12 million of fee-based cash flow to its terminalling and storage segment. This significant enhancement to the Partnership follows our strategic plan to grow our fee-based cash flow. With the addition of Cross, we estimate that approximately 65% of our 2010 cash flow will come from fee-based contracts. This supports our continued ability to pay distributions to our unitholders. Also in the fourth quarter, we sold $20 million in common units to our Martin Resource Management. This important equity infusion not only provided additional liquidity, it also assisted the Partnership in successfully refinancing and upsizing of its credit facilities to $336.4 million.
Looking ahead, I am pleased to report that the Partnership's liquidity position is substantially improved from where we were one year ago. Further, thus far in 2010, we have issued additional common units raising approximately $51.7 million in net proceeds and increased our credit facilities to $350.0 million. Our improved liquidity and strengthened balance sheet better position the Partnership for strategic growth. Looking ahead, we are excited about the opportunities that an improved balance sheet will provide. This includes the development of new organic growth projects and potential acquisitions."
Investors' Conference Call
An investor's conference call to review the fourth quarter and year end results will be held on Friday, March 5, 2010, at 8:00 a.m. Central Time. The conference call can be accessed by calling (877) 878-2695. An audio replay of the conference call will be available by calling (800) 642-1687 from 10:30 a.m. Central Time on March 5, 2010 through 11:59 p.m. Central Time on March 12, 2010. The access codes for the conference call and the audio replay are as follows: Conference ID No. 59938853. The audio replay of the conference call will also be archived on the Partnership's website at www.martinmidstream.com.
About Martin Midstream Partners
Martin Midstream Partners is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: terminalling and storage services for petroleum products and by-products; natural gas gathering, processing and NGL distribution; sulfur and sulfur-based products processing, manufacturing, and distribution; and marine transportation services for petroleum products and by-products.
Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com.
Forward-Looking Statements
Statements about Martin Midstream Partners' outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While MMLP believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise.
Use of Non-GAAP Financial Information
MMLP reports its financial results in accordance with United States generally accepted accounting principles (GAAP). However, from time to time, MMLP uses certain non-GAAP financial measures such as distributable cash flow because MMLP's management believes that this measure may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of MMLP's cash available to pay distributions. Distributable cash flow should not be considered an alternative to cash flow from operating activities or any other measure of financial performance in accordance with GAAP in the United States. Distributable cash flow is not intended to represent cash flows for the period, nor is it presented as an alternative to income from continuing operations. Furthermore, it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. This information may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. Accordingly, MMLP has presented herein, and will present in other information it publishes that contains this non-GAAP financial measure, a reconciliation of this measure to the most directly comparable GAAP financial measure.
The Partnership has included below a table entitled "Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measure. MMLP calculates distributable cash flow as follows: net income (as reported in statements of operations), plus depreciation and amortization and amortization of deferred debt issue costs (as reported in statements of cash flows), less deferred income taxes (as reported in statements of cash flows), plus distribution equivalents from unconsolidated entities (as described below), plus invested cash in unconsolidated entities (as described below), less equity in earnings of unconsolidated entities (as reported in statements of operations), less non-cash mark-to-market on derivatives (as reported in statements of cash flows, less maintenance capital expenditures (as reported under the caption "Liquidity and Capital Resources" in MMLP's Annual Report on Form 10-K filed with the SEC on March 4, 2010), less gain on disposition or sale of property, plant and equipment (as reported in statements of cash flows), less gain on involuntary conversion of property, plant and equipment (as reported in statements of cash flows), plus (less) unit-based compensation (as reported in statements of changes in capital).
MMLP's distribution equivalents from unconsolidated entities is calculated as distributions from unconsolidated entities (as reported in statements of cash flows), plus return of investments from unconsolidated entities (as reported in statements of cash flows), plus distributions in-kind from unconsolidated entities (as reported in statements of cash flows).
MMLP's invested cash in unconsolidated entities is calculated as distributions from (contributions to) unconsolidated entities for operations (as reported in statements of cash flows), plus expansion capital expenditures in unconsolidated entities (as reported under the caption "Liquidity and Capital Resources" in MMLP's Annual Report on Form 10-K filed with the SEC on March 4, 2010).
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
December 31,
---------------------
2009 2008 1
---------- ---------
(Dollars in
thousands)
Assets
Cash $ 5,956 $ 7,983
Accounts and other
receivables, less allowance
for doubtful accounts of
$1,025 and $481, respectively 77,413 68,168
Product exchange receivables 4,132 6,924
Inventories 35,510 42,754
Due from affiliates 3,051 555
Fair value of derivatives 1,872 3,623
Other current assets 1,340 3,418
---------- ---------
Total current assets 129,274 133,425
---------- ---------
Property, plant and equipment,
at cost 584,036 576,608
Accumulated depreciation (162,121) (130,976)
---------- ---------
Property, plant and
equipment, net 421,915 445,632
---------- ---------
Goodwill 37,268 37,405
Investment in unconsolidated
entities 80,582 79,843
Fair value of derivatives -- 1,469
Other assets, net 16,900 8,548
---------- ---------
$ 685,939 $ 706,322
========== =========
Liabilities and Partners'
Capital
Current installments of lease
obligations $ 111 $ --
Trade and other accounts
payable 71,911 94,146
Product exchange payables 7,986 10,924
Due to affiliates 13,810 23,085
Income taxes payable 454 414
Fair value of derivatives 7,227 6,478
Other accrued liabilities 5,000 6,428
---------- ---------
Total current liabilities 106,499 141,475
Long-term debt and capital
leases, less current
maturities 304,372 295,000
Deferred income taxes 8,628 17,499
Fair value of derivatives -- 4,302
Other long-term obligations 1,489 1,667
---------- ---------
Total liabilities 420,988 459,943
---------- ---------
Partners' capital 267,027 251,314
Accumulated other
comprehensive loss (2,076) (4,935)
---------- ---------
Total partners' capital 264,951 246,379
---------- ---------
Commitments and contingencies
$ 685,939 $ 706,322
========== =========
¹ Financial information for 2008 has been revised to include balances attributable to the Cross assets acquired in November 2009.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
--------------------------------------
2009 1 2008 1 2007 1
----------- ---------- ----------
(Dollars in thousands, except per
unit amounts)
Terminalling and storage * $ 69,710 $ 68,552 $ 67,905
Marine transportation * 68,480 76,349 59,579
Product sales: *
Natural gas services 408,982 679,375 515,992
Sulfur services 79,629 371,949 131,326
Terminalling and storage 35,584 50,219 29,525
----------- ---------- ----------
524,195 1,101,543 676,843
----------- ---------- ----------
Total revenues 662,385 1,246,444 804,327
----------- ---------- ----------
Costs and expenses:
Cost of products sold:
(excluding depreciation and
amortization)
Natural gas services * 382,542 657,662 495,641
Sulfur services * 43,386 313,143 97,577
Terminalling and storage 31,331 42,721 25,471
----------- ---------- ----------
457,259 1,013,526 618,689
Expenses:
Operating expenses * 117,438 126,808 104,165
Selling, general and
administrative * 19,775 19,062 13,918
Depreciation and
amortization 39,506 34,893 26,323
----------- ---------- ----------
Total costs and expenses 633,978 1,194,289 763,095
----------- ---------- ----------
Other operating income 6,013 209 703
----------- ---------- ----------
Operating income 34,420 52,364 41,935
----------- ---------- ----------
Other income (expense):
Equity in earnings of
unconsolidated entities 7,044 13,224 10,941
Interest expense (18,995) (21,433) (15,125)
Other, net 326 801 405
----------- ---------- ----------
Total other income (expense) (11,625) (7,408) (3,779)
----------- ---------- ----------
Net income before taxes 22,795 44,956 38,156
Income tax benefit (expense) (592) (1,398) (5,595)
----------- ---------- ----------
Net income $ 22,203 $ 43,558 $ 32,561
=========== ========== ==========
General partner's interest in
net income 2 $ 3,249 $ 3,301 $ 1,564
=========== ========== ==========
Limited partners' interest in
net income 2 $ 17,179 $ 39,509 $ 23,375
=========== ========== ==========
Net income per limited partner
unit - basic and diluted $ 1.17 $ 2.72 $ 1.67
Weighted average limited
partner units - basic 14,680,807 14,529,826 14,018,799
Weighted average limited
partner units - diluted 14,684,775 14,534,722 14,022,545
1 Financial information for 2007, 2008 and for the period January 1, 2009 through November 24, 2009 has been revised to include results attributable to the Cross assets acquired in November 2009.
2 General and limited partner's interest in net income includes net income attributable to the Cross assets since the date of the acquisition noted above.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
*Related Party Transactions Included Above
Revenues:
Terminalling and storage $ 19,998 $18,362 $ 11,816
Marine transportation 19,370 24,956 23,729
Product Sales 5,838 26,704 7,577
Costs and expenses:
Cost of products sold:
(excluding depreciation
and amortization)
Natural gas services 56,914 92,322 62,686
Sulfur services 12,583 13,282 13,992
Expenses:
Operating expenses 37,284 37,661 28,991
Selling, general and
administrative 7,162 6,284 4,089
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL
For the years ended December 31, 2009 1, 2008 1 and 2007 1
Partners' Capital
-----------------------------------------------------------------------
Common Subordinated
---------------------- -----------------------
Parent Net General
Investment Partner
1 Units Amount Units Amount Amount
---------- ----------- --------- ------------ --------- ----------
(Dollars in thousands)
Balances -- December 31, 2006 $ 3,295 10,603,808 $ 201,426 2,552,018 $ (6,224) $ 3,201
Net Income 7,622 -- 19,781 -- 3,594 1,564
Follow-on public offering -- 1,380,000 55,933 -- -- --
General partner contribution -- -- -- -- -- 1,192
Conversion of subordinated units
to common units -- 850,672 (3,243) (850,672) 3,243 --
Unit-based compensation -- 3,000 46 -- -- --
Cash distributions ($2.60 per
unit) -- -- (29,423) -- (6,635) (1,845)
Commodity hedging gains
reclassified to earnings -- -- -- -- -- --
Adjustment in fair value of
derivatives -- -- -- -- -- --
---------- ----------- --------- ------------ --------- ----------
Balances -- December 31, 2007 $ 10,917 12,837,480 $244,520 1,701,346 $ (6,022) $ 4,112
Net Income 748 -- 34,978 -- 4,531 3,301
Cash distributions ($2.91 per
unit) -- -- (37,357) -- (4,951) (3,409)
Conversion of subordinated units
to common units -- 850,672 (2,754) (850,672) 2,754 --
Unit-based compensation -- 3,000 39 -- -- --
Purchase of treasury units -- (3,000) (93) -- -- --
Adjustment in fair value of
derivatives -- -- -- -- -- --
---------- ----------- --------- ------------ --------- ----------
Balances -- December 31, 2008 $ 11,665 13,688,152 $ 239,333 850,674 $ (3,688) $ 4,004
Net Income 1,664 -- 16,310 -- 980 3,249
General partner contribution -- -- -- -- -- 1,324
Units issued in connection with
Cross acquisition 804,721 16,523 889,444 16,434 --
Recognition of beneficial
conversion feature -- -- (111) -- 111 --
Issuance of common units -- 714,285 20,000 -- -- --
Cash distributions ($3.00 per
unit) -- -- (41,064) -- (2,552) (3,846)
Conversion of subordinated units
to common units -- 850,674 (5,328) (850,674) 5,328 --
Unit-based compensation -- 3,000 98 -- -- --
Purchase of treasury units -- (3,000) (78) -- -- --
Distributions to parent (13,329) -- -- -- -- --
Adjustment in fair value of
derivatives -- -- -- -- -- --
---------- ----------- --------- ------------ --------- ----------
Balances -- December 31, 2009 $ -- 16,057,832 $ 245,683 889,444 $ 16,613 $ 4,731
========== =========== ========= ============ ========= ==========
Accumulated
Comprehensive
Income
Amount Total
------------- ---------
Balances -- December 31, 2006 $ 122 $ 201,820
Net Income -- 32,561
Follow-on public offering -- 55,933
General partner contribution -- 1,192
Conversion of subordinated units
to common units -- --
Unit-based compensation -- 46
Cash distributions ($2.60 per
unit) -- (37,903)
Commodity hedging gains
reclassified to earnings 478 478
Adjustment in fair value of
derivatives (7,362) (7,362)
------------- ---------
Balances -- December 31, 2007 $ (6,762) $ 246,765
Net Income -- 43,558
Cash distributions ($2.91 per
unit) -- (45,717)
Conversion of subordinated units
to common units -- --
Unit-based compensation -- 39
Purchase of treasury units -- (93)
Adjustment in fair value of
derivatives 1,827 1,827
------------- ---------
Balances -- December 31, 2008 $ (4,935) $ 246,379
Net Income -- 22,203
General partner contribution -- 1,324
Units issued in connection with
Cross acquisition -- 32,957
Recognition of beneficial
conversion feature -- --
Issuance of common units -- 20,000
Cash distributions ($3.00 per
unit) -- (47,462)
Conversion of subordinated units
to common units -- --
Unit-based compensation -- 98
Purchase of treasury units -- (78)
Distributions to parent -- (13,329)
Adjustment in fair value of
derivatives 2,859 2,859
------------- ---------
Balances -- December 31, 2009 $ (2,076) $ 264,951
============= =========
1 Financial information for 2007, 2008 and for the period
January 1, 2009 through November 24, 2009 has been revised
to include results attributable to the Cross assets
acquired in November 2009.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
Year Ended December 31,
----------------------------------------
2009 1 2008 1 2007 1
-------------- ------------ ----------
(Dollars in thousands)
Net income $ 22,203 $ 43,558 $ 32,561
Changes in fair values of commodity cash flow hedges 14 4,219 (3,569)
Commodity cash flow hedging (gains) losses reclassified to
earnings (2,646) 3,043 478
Changes in fair value of interest rate cash flow hedges (1,854) (5,435) (3,793)
Interest rate cash flow hedging losses reclassified to
earnings 7,345 -- --
-------------- ------------ ----------
Comprehensive income $ 25,062 $ 45,385 $ 25,677
============== ============ ==========
1 Financial information for 2007, 2008 and for the period January 1, 2009 through November 24, 2009 has been revised to include results attributable to the Cross assets acquired in November 2009.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
------------------------------------
2009 1 2008 1 2007 1
---------- ---------- ------------
(Dollars in thousands)
Cash flows from operating activities:
Net income $ 22,203 $ 43,558 $ 32,561
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 39,506 34,895 26,322
Amortization of deferred debt issue
costs 1,689 1,120 1,233
Deferred income taxes 294 2,442 680
Gain on disposition or sale of
property, plant, and equipment (4,996) (131) (484)
Gain on involuntary conversion of
property, plant, and equipment (1,017) (65) --
Equity in earnings of unconsolidated
entities (7,044) (13,224) (10,941)
Distributions from unconsolidated
entities 650 500 1,523
Distribution in-kind from
unconsolidated entities 5,826 9,725 9,337
Non-cash mark-to-market on derivatives 2,526 (2,327) 3,904
Other 98 39 47
Change in current assets and
liabilities, excluding effects of
acquisitions and dispositions:
Accounts and other receivables (10,471) 19,753 (26,992)
Product exchange receivables 2,792 3,988 (3,422)
Inventories 7,135 9,398 (18,651)
Due from affiliates 1,560 1,770 (995)
Other current assets 2,461 (992) (1,241)
Trade and other accounts payable (15,874) (14,904) 46,119
Product exchange payables (2,938) (13,629) 9,817
Due to affiliates 4,133 5,966 (5,583)
Income taxes payable 569 (453) (1,225)
Other accrued liabilities 871 101 793
Change in other non-current assets and
liabilities (2,381) (1,190) (1,593)
---------- ---------- ---------
Net cash provided by operating
activities 47,592 86,340 61,209
---------- ---------- ---------
Cash flows from investing activities:
Payments for property, plant, and
equipment (35,846) (101,450) (85,359)
Acquisitions, net of cash acquired (327) (5,983) (41,271)
Proceeds from sale of property, plant,
and equipment 19,445 463 1,293
Insurance proceeds from involuntary
conversion of property, plant and
equipment 2,224 1,503 --
Return of investments from unconsolidated
entities 877 1,225 1,952
Distributions from (contributions to)
unconsolidated entities for operations (1,048) (2,379) (6,910)
---------- ---------- ---------
Net cash used in investing activities (14,675) (106,621) (130,295)
---------- ---------- ---------
Cash flows from financing activities:
Payments of long-term debt (431,982) (257,191) (169,024)
Proceeds from long-term debt 433,700 327,170 219,950
Net proceeds from follow on public
offering -- -- 55,933
General partner contribution 1,324 -- 1,192
Purchase of treasury units (78) (93) --
Proceeds from issuance of common units 20,000 -- --
Payments of debt issuance costs (10,446) (18) (252)
Cash distributions paid (47,462) (45,717) (37,903)
---------- ---------- ---------
Net cash provided by (used in)
financing activities (34,944) 24,151 69,896
---------- ---------- ---------
Net increase(decrease) in cash (2,027) 3,870 810
Cash at beginning of period 7,983 4,113 3,303
---------- ---------- ---------
Cash at end of period $ 5,956 $ 7,983 $ 4,113
========== ========== =========
Supplemental schedule of non-cash
investing and financing activities:
Purchase of assets under capital lease
obligations $ 7,764 $ -- $ --
========== ========== =========
Issuance of common and subordinated units
in connection with Cross acquisition $ 32,957 $ -- $ --
========== ========== =========
1 Financial information for 2007, 2008 and for the period January 1, 2009 through November 24, 2009 has been revised to include results attributable to the Cross assets acquired in November 2009.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
4th
4th Quarter Quarter
----------- ----------
2009 1 2008 1
----------- ----------
(Dollars in thousands,
except per unit
amounts)
(Unaudited)
Revenues:
Terminalling and storage $ 16,039 $ 17,407
Marine transportation 19,258 20,521
Product sales:
Natural gas services 140,233 102,058
Sulfur 18,600 82,421
Terminalling and storage 6,731 13,693
----------- ----------
165,564 198,172
----------- ----------
Total revenues 200,861 236,100
----------- ----------
Costs and expenses:
Cost of products sold:
Natural gas services 133,849 95,492
Sulfur 8,644 59,680
Terminalling and storage 5,773 11,500
----------- ----------
148,266 166,672
Expenses:
Operating expenses 32,790 31,379
Selling, general and
administrative 6,023 6,944
Depreciation and amortization 10,250 9,580
----------- ----------
Total costs and expenses 197,329 214,575
----------- ----------
Other operating income (loss) 962 66
----------- ----------
Operating income 4,494 21,591
----------- ----------
Other income (expense):
Equity in earnings of
unconsolidated entities 1,817 1,839
Interest expense (5,408) (6,416)
Other, net (19) 323
----------- ----------
Total other income
(expense) (3,610) (4,254)
----------- ----------
Income tax expense (benefit) (1,072) 309
----------- ----------
Net income $ 1,956 $ 17,028
=========== ==========
General partner's interest in
net income 2 $ 774 $ 1,044
Limited partners' interest in
net income 2 $ 2,342 $ 15,685
Net income per limited partner
unit -- basic and diluted $ 0.15 $ 1.08
Weighted average limited
partner units 15,149,731 14,538,826
1 Financial information for 2007, 2008 and for the period January 1, 2009 through November 24, 2009 has been revised to include results attributable to the Cross assets acquired in November 2009.
2 General and limited partner's interest in net income includes net income of the Cross assets since the date of the acquisition.
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2010.
DISTRIBUTABLE CASH FLOW
(Dollars in thousands)
(Unaudited Non-GAAP Financial Measure)
Three Months Ended Year Ended
December 31, 2009 4 December 31, 2009 4
---------------------------------- ---------------------------------
Historical Historical
Martin Martin
Midstream Cross Midstream Cross
Partners Assets Revised Partners Assets Revised
LP Results Total LP Results Total
---------- ----------- --------- ---------- ---------- ---------
Net income $ 3,227 $ (1,271) $ 1,956 $ 20,539 $ 1,664 $ 22,203
Adjustments to reconcile net income to
distributable cash flow:
Depreciation and amortization 9,486 764 10,250 35,143 4,363 39,506
Amortization of deferred debt issue costs 847 -- 847 1,689 -- 1,689
Deferred income taxes 20 (1,543) (1,523) 90 204 294
Distribution equivalents from
unconsolidated entities 1 2,053 -- 2,053 7,353 -- 7,353
Invested cash in unconsolidated
entities² 210 -- 210 2,712 -- 2,712
Equity in earnings of unconsolidated
entities (1,817) -- (1,817) (7,044) -- (7,044)
Non-cash mark-to-market on derivatives 194 -- 194 2,526 -- 2,526
Maintenance capital expenditures 3 (849) (62) (911) (7,531) (69) (7,600)
Gain on disposition or sale of property,
plant and equipment 55 -- 55 (5,143) 147 (4,996)
Gain on involuntary conversion of property,
plant and equipment (1,017) -- (1,017) (1,017) -- (1,017)
Unit based compensation 39 -- 39 98 -- 98
---------- ----------- --------- ---------- ---------- ---------
Distributable cash flow $ 12,448 $ (2,112) $ 10,336 $ 49,415 $ 6,309 $ 55,724
========== =========== ========= ========== ========== =========
Three
Months
Ended Year
Ended
December December
31, 31,
2009 2009
1 Distribution equivalents from unconsolidated entities:
Distributions from unconsolidated entities $ -- $ 650
Return of investments from unconsolidated entities 217 877
Distributions in-kind from unconsolidated entities 1,836 5,826
-------- ---------
Distribution equivalents from unconsolidated entities $ 2,053 $ 7,353
======== =========
2 Invested cash in unconsolidated entities::
Distributions from (contributions to) unconsolidated
entities for operations $ (215) $ (1,048)
Expansion capital expenditures in unconsolidated
entities 425 3,760
-------- ---------
Invested cash in unconsolidated entities $ 210 $ 2,712
======== =========
3 Maintenance capital expenditures exclude hurricane-related maintenance capital expenditures. 4 Financial information for 2007, 2008 and for the period January 1, 2009 through November 24, 2009 has been revised to include results attributable to the Cross assets acquired by MMLP on November 24, 2009.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Martin Midstream Partners L.P.
CONTACT: Martin Midstream GP LLC The Partnership's General Partner Robert D. Bondurant, Executive Vice President and Chief Financial Officer (903) 983-6200
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
News Provided by COMTEX