DELAWARE
(State of incorporation
or organization)
|
000-50056
(Commission file number)
|
05-0527861
(I.R.S. employer identification number)
|
||||
4200 STONE ROAD
|
||||||
KILGORE, TEXAS
(Address of principal executive offices)
|
75662
(Zip code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
Exhibit
|
||||
Number
|
Description
|
|||
99.1
|
Press release dated May 2, 2012.
|
MARTIN MIDSTREAM PARTNERS L.P.
By: Martin Midstream GP LLC,
Its General Partner
|
|||||
Date: May 8, 2012
|
By: /s/ Robert D. Bondurant
|
||||
Robert D. Bondurant,
|
|||||
Executive Vice President and
Chief Financial Officer
|
|||||
Exhibit
|
||||
Number
|
Description
|
|||
99.1
|
Press release dated May 8, 2012.
|
March 31,
2012
(Unaudited)
|
December 31,
2011
(Audited)
|
|
|||||||
Assets
|
|||||||||
Cash
|
$ | 8,782 | $ | 266 | |||||
Accounts and other receivables, less allowance for doubtful accounts of $2,979 and $3,021, respectively
|
112,137 | 126,461 | |||||||
Product exchange receivables
|
9,213 | 17,646 | |||||||
Inventories
|
81,487 | 78,163 | |||||||
Due from affiliates
|
9,923 | 5,968 | |||||||
Fair value of derivatives
|
675 | 622 | |||||||
Other current assets
|
2,001 | 1,978 | |||||||
Total current assets
|
224,218 | 231,104 | |||||||
Property, plant and equipment, at cost
|
740,978 | 711,052 | |||||||
Accumulated depreciation
|
(244,023 | ) | (233,710 | ) | |||||
Property, plant and equipment, net
|
496,955 | 477,342 | |||||||
Goodwill
|
37,268 | 37,268 | |||||||
Investment in unconsolidated entities
|
177,428 | 170,497 | |||||||
Deferred debt costs
|
12,640 | 13,330 | |||||||
Fair value of derivatives
|
41 | — | |||||||
Other assets, net
|
19,115 | 19,568 | |||||||
$ | 967,665 | $ | 949,109 | ||||||
Liabilities and Partners’ Capital
|
|||||||||
Current installments of long-term debt and capital lease obligations
|
$ | 198 | $ | 1,261 | |||||
Trade and other accounts payable
|
96,107 | 125,970 | |||||||
Product exchange payables
|
30,583 | 37,313 | |||||||
Due to affiliates
|
14,167 | 18,485 | |||||||
Income taxes payable
|
1,156 | 893 | |||||||
Fair value of derivatives
|
530 | 362 | |||||||
Other accrued liabilities
|
12,131 | 11,022 | |||||||
Total current liabilities
|
154,872 | 195,306 | |||||||
Long-term debt and capital leases, less current maturities
|
433,684 | 458,941 | |||||||
Deferred income taxes
|
7,487 | 7,657 | |||||||
Other long-term obligations
|
1,601 | 1,589 | |||||||
Total liabilities
|
597,644 | 663,493 | |||||||
Partners’ capital
|
369,459 | 284,990 | |||||||
Accumulated other comprehensive income
|
562 | 626 | |||||||
Total partners’ capital
|
370,021 | 285,616 | |||||||
Commitments and contingencies
|
|||||||||
$ | 967,665 | $ | 949,109 |
Three Months Ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
Revenues:
|
||||||||
Terminalling and storage *
|
$ | 20,186 | $ | 18,123 | ||||
Marine transportation *
|
20,862 | 19,399 | ||||||
Sulfur services
|
2,926 | 2,850 | ||||||
Product sales: *
|
||||||||
Natural gas services
|
201,013 | 167,211 | ||||||
Sulfur services
|
71,626 | 56,908 | ||||||
Terminalling and storage
|
21,673 | 18,545 | ||||||
294,312 | 242,664 | |||||||
Total revenues
|
338,286 | 283,036 | ||||||
Costs and expenses:
|
||||||||
Cost of products sold: (excluding depreciation and amortization)
|
||||||||
Natural gas services *
|
193,180 | 158,204 | ||||||
Sulfur services *
|
54,960 | 44,442 | ||||||
Terminalling and storage
|
20,020 | 16,560 | ||||||
268,160 | 219,206 | |||||||
Expenses:
|
||||||||
Operating expenses *
|
38,170 | 34,349 | ||||||
Selling, general and administrative *
|
5,689 | 5,028 | ||||||
Depreciation and amortization
|
11,095 | 10,942 | ||||||
Total costs and expenses
|
323,114 | 269,525 | ||||||
Other operating income
|
4 | — | ||||||
Operating income
|
15,176 | 13,511 | ||||||
Other income (expense):
|
||||||||
Equity in earnings of unconsolidated entities
|
2,847 | 2,376 | ||||||
Interest expense
|
(7,207 | ) | (8,402 | ) | ||||
Debt prepayment premium
|
(251 | ) | — | |||||
Other, net
|
61 | 60 | ||||||
Total other income (expense)
|
(4,550 | ) | (5,966 | ) | ||||
Net income before taxes
|
10,626 | 7,545 | ||||||
Income tax benefit (expense)
|
(97 | ) | (223 | ) | ||||
Net income
|
$ | 10,529 | $ | 7,322 | ||||
General partner’s interest in net income
|
$ | 1,450 | $ | 1,229 | ||||
Limited partners’ interest in net income
|
$ | 9,079 | $ | 5,816 | ||||
Net income per limited partner unit – basic and diluted
|
$ | 0.40 | $ | 0.31 | ||||
Weighted average limited partner units - basic
|
22,576,404 | 18,760,861 | ||||||
Weighted average limited partner units - diluted
|
22,579,908 | 18,761,611 |
Revenues:
|
||||||||
Terminalling and storage
|
$ | 15,274 | $ | 12,938 | ||||
Marine transportation
|
4,857 | 6,565 | ||||||
Product Sales
|
4,290 | 5,399 | ||||||
Costs and expenses:
|
||||||||
Cost of products sold: (excluding depreciation and amortization)
|
||||||||
Natural gas services
|
25,345 | 23,205 | ||||||
Sulfur services
|
4,431 | 4,152 | ||||||
Expenses:
|
||||||||
Operating expenses
|
14,091 | 12,042 | ||||||
Selling, general and administrative
|
3,678 | 3,031 |
Partners’ Capital
|
|||||||||||||||||||||||
Common
|
Subordinated
|
General Partner
|
Accumulated Other Comprehensive
Income
|
||||||||||||||||||||
Units
|
Amount |
Units
|
Amount
|
Amount
|
(Loss)
|
Total
|
|||||||||||||||||
Balances – January 1, 2011 | 17,707,832 | $250,785 | 889,444 | $17,721 | $4,881 | $1,419 | $274,806 | ||||||||||||||||
Net income
|
— | 6,093 | — | — | 1,229 | — | 7,322 | ||||||||||||||||
Recognition of beneficial conversion feature
|
— | (277 | ) | — | 277 | — | — | — | |||||||||||||||
Follow-on public offering
|
1,874,500 | 70,330 | — | — | — | — | 70,330 | ||||||||||||||||
General partner contribution
|
— | — | — | — | 1,505 | — | 1,505 | ||||||||||||||||
Cash distributions
|
— | (13,458 | ) | — | — | (1,416 | ) | — | (14,874 | ) | |||||||||||||
Excess purchase price over carrying value of acquired assets
|
— | (19,685 | ) | — | — | — | — | (19,685 | ) | ||||||||||||||
Unit-based compensation
|
9,100 | 36 | — | — | — | — | 36 | ||||||||||||||||
Purchase of treasury units
|
( 9,100 | ) | (347 | ) | — | — | — | — | (347 | ) | |||||||||||||
Adjustment in fair value of derivatives
|
— | — | — | — | — | (1,323 | ) | (1,323 | ) | ||||||||||||||
Balances – March 31, 2011
|
19,582,332 | $ | 293,477 | 889,444 | $ | 17,998 | $ | 6,199 | $ | 96 | $ | 317,770 | |||||||||||
Balances – January 1, 2012
|
20,471,776 | $ | 279,562 | — | $ | — | $ | 5,428 | $ | 626 | $ | 285,616 | |||||||||||
Net income
|
— | 9,079 | — | 1,450 | — | 10,529 | |||||||||||||||||
Follow-on public offering
|
2,645,000 | 91,377 | — | — | — | — | 91,377 | ||||||||||||||||
General partner contribution
|
— | — | — | — | 1,951 | — | 1,951 | ||||||||||||||||
Cash distributions
|
— | (17,626 | ) | — | — | (1,818 | ) | — | (19,444 | ) | |||||||||||||
Unit-based compensation
|
56 | — | — | — | — | 56 | |||||||||||||||||
Adjustment in fair value of derivatives
|
— | — | — | — | — | (64 | ) | (64 | ) | ||||||||||||||
Balances – March 31, 2012
|
23,116,776 | $ | 362,448 | — | $ | — | $ | 7,011 | $ | 562 | $ | 370,021 | |||||||||||
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 filed with the Securities and Exchange Commission on May 7, 2012.
|
Three Months Ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 10,529 | $ | 7,322 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
11,095 | 10,942 | ||||||
Amortization of deferred debt issuance costs
|
690 | 1,140 | ||||||
Amortization of debt discount
|
87 | 88 | ||||||
Deferred taxes
|
(170 | ) | (3 | ) | ||||
Gain on sale of property, plant and equipment
|
(4 | ) | — | |||||
Equity in earnings of unconsolidated entities
|
(2,847 | ) | (2,376 | ) | ||||
Distributions in-kind from equity investments
|
3,090 | 3,948 | ||||||
Non-cash mark-to-market on derivatives
|
10 | 456 | ||||||
Other
|
56 | 36 | ||||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
|
||||||||
Accounts and other receivables
|
14,324 | 577 | ||||||
Product exchange receivables
|
8,433 | 3,845 | ||||||
Inventories
|
(3,324 | ) | 2,320 | |||||
Due from affiliates
|
(3,955 | ) | (2,792 | ) | ||||
Other current assets
|
(23 | ) | (461 | ) | ||||
Trade and other accounts payable
|
(29,863 | ) | (2,333 | ) | ||||
Product exchange payables
|
(6,730 | ) | (2,649 | ) | ||||
Due to affiliates
|
(4,318 | ) | 4,314 | |||||
Income taxes payable
|
263 | 226 | ||||||
Other accrued liabilities
|
1,109 | 3,299 | ||||||
Change in other non-current assets and liabilities
|
53 | 155 | ||||||
Net cash provided by (used in) operating activities
|
(1,495 | ) | 28,054 | |||||
Cash flows from investing activities:
|
||||||||
Payments for property, plant and equipment
|
(30,082 | ) | (14,875 | ) | ||||
Acquisitions
|
— | (16,815 | ) | |||||
Payments for plant turnaround costs
|
(305 | ) | (1,995 | ) | ||||
Proceeds from sale of property, plant and equipment
|
95 | — | ||||||
Return of investments from unconsolidated entities
|
1,232 | 60 | ||||||
Distributions from (contributions to) unconsolidated entities for operations
|
(8,406 | ) | (3,651 | ) | ||||
Net cash used in investing activities
|
(37,466 | ) | (37,276 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of long-term debt
|
(146,000 | ) | (101,500 | ) | ||||
Payments of notes payable and capital lease obligations
|
(6,407 | ) | (268 | ) | ||||
Proceeds from long-term debt
|
126,000 | 73,500 | ||||||
Net proceeds from follow on offering
|
91,377 | 70,330 | ||||||
Treasury units purchased
|
— | (347 | ) | |||||
General partner contribution
|
1,951 | 1,505 | ||||||
Excess purchase price over carrying value of acquired assets
|
— | (19,685 | ) | |||||
Cash distributions paid
|
(19,444 | ) | (14,874 | ) | ||||
Net cash provided by financing activities
|
47,477 | 8,661 | ||||||
Net increase (decrease) in cash
|
8,516 | (561 | ) | |||||
Cash at beginning of period
|
266 | 11,380 | ||||||
Cash at end of period
|
$ | 8,782 | $ | 10,819 |
Terminalling and Storage Segment
|
Three Months Ended
March 31,
|
|
||||||
2012 | 2011 | |||||||
(In thousands)
|
||||||||
Revenues:
|
||||||||
Services
|
$ | 21,361 | $ | 19,102 | ||||
Products
|
21,673 | 18,544 | ||||||
Total revenues
|
43,034 | 37,646 | ||||||
Cost of products sold
|
20,540 | 17,490 | ||||||
Operating expenses
|
14,045 | 12,315 | ||||||
Selling, general and administrative expenses
|
10 | 84 | ||||||
Depreciation and amortization
|
4,723 | 4,540 | ||||||
3,716 | 3,217 | |||||||
Other operating income
|
20 | - | ||||||
Operating income
|
$ | 3,736 | $ | 3,217 | ||||
Natural Gas Services Segment
|
Three Months Ended
March 31,
|
|||||||
2012
|
2011
|
|||||||
Revenues:
|
(In thousands)
|
|||||||
NGLs
|
$ | 194,280 | $ | 155,300 | ||||
Natural gas
|
5,041 | 10,016 | ||||||
Non-cash mark-to-market adjustment of commodity derivatives
|
(10 | ) | 177 | |||||
Gain on cash settlements of commodity derivatives
|
73 | — | ||||||
Other operating fees
|
1,629 | 1,718 | ||||||
Total revenues
|
201,013 | 167,211 | ||||||
Cost of products sold:
|
||||||||
NGLs
|
188,422 | 148,689 | ||||||
Natural gas
|
5,135 | 9,720 | ||||||
Total cost of products sold
|
193,557 | 158,409 | ||||||
Operating expenses
|
2,110 | 2,110 | ||||||
Selling, general and administrative expenses
|
1,882 | 1,851 | ||||||
Depreciation and amortization
|
1,538 | 1,515 | ||||||
1,926 | 3,326 | |||||||
Other operating income
|
9 | — | ||||||
Operating income
|
$ | 1,935 | $ | 3,326 | ||||
NGLs Volumes (Bbls)
|
3,077 | 2,485 | ||||||
Natural Gas Volumes (Mmbtu)
|
2,143 | 2,620 |
Waskom:
|
||||||||
Plant Inlet Volumes (Mmcf/d)
|
262 | 272 | ||||||
Frac Volumes (Bbls/d)
|
10,899 | 8,049 |
Sulfur Services Segment
|
Three Months Ended
March 31,
|
|||||||
2012
|
2011
|
|||||||
Revenues:
|
(In thousands)
|
|||||||
Services
|
$ | 2,926 | $ | 2,850 | ||||
Products
|
71,626 | 56,908 | ||||||
Total revenues
|
74,552 | 59,758 | ||||||
Cost of products sold
|
55,051 | 44,532 | ||||||
Operating expenses
|
4,193 | 4,691 | ||||||
Selling, general and administrative expenses
|
955 | 886 | ||||||
Depreciation and amortization
|
1,793 | 1,622 | ||||||
12,560 | 8,027 | |||||||
Other operating income (loss)
|
(25 | ) | — | |||||
Operating income
|
$ | 12,535 | $ | 8,027 | ||||
Sulfur (long tons)
|
308.2 | 375.3 | ||||||
Fertilizer (long tons)
|
93.9 | 77.6 | ||||||
Sulfur Services Volumes (long tons)
|
402.1 | 452.9 | ||||||
Marine Transportation Segment
|
Three Months Ended
March 31,
|
|||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Revenues
|
$ | 21,567 | $ | 21,439 | ||||
Operating expenses
|
18,714 | 17,026 | ||||||
Selling, general and administrative expenses
|
424 | 389 | ||||||
Depreciation and amortization
|
3,041 | 3,265 | ||||||
(612 | ) | 759 | ||||||
Other operating income
|
- | - | ||||||
Operating income
|
$ | (612 | ) | $ | 759 |
Three Months Ended
March 31, 2012
|
||||
Net income
|
$ | 10,529 | ||
Adjustments to reconcile net income to distributable cash flow:
|
||||
Depreciation and amortization
|
11,095 | |||
Amortization of debt discount
|
87 | |||
Amortization of deferred debt issuance costs
|
690 | |||
Deferred taxes
|
(170 | ) | ||
Gain on sale of property, plant and equipment
|
(4 | ) | ||
Payments of notes payable and capital lease obligations
|
(130 | ) | ||
Distribution equivalents from unconsolidated entities1
|
4,322 | |||
Invested cash in unconsolidated entities2
|
1,018 | |||
Equity in earnings of unconsolidated entities
|
(2,847 | ) | ||
Non-cash mark-to-market on derivatives
|
10 | |||
Payments for plant turnaround costs
|
(305 | ) | ||
Maintenance capital expenditures
|
(1,531 | ) | ||
Unit-based compensation
|
56 | |||
Distributable cash flow
|
$ | 22,820 |
1 Distribution equivalents from unconsolidated entities:
Distributions from unconsolidated entities
|
$ | — | ||
Return of investments from unconsolidated entities
|
1,232 | |||
Distributions in-kind from equity investments
|
3,090 | |||
Distributions equivalents from unconsolidated entities
|
$ | 4,322 | ||
2 Invested cash in unconsolidated entities:
|
||||
Distributions from (contributions to) unconsolidated entities for operations
|
$ | (8,406 | ) | |
Expansion capital expenditures in unconsolidated entities
|
9,424 | |||
Invested cash in unconsolidated entities
|
$ | 1,018 | ||