0001176334-13-000073.txt : 20130506 0001176334-13-000073.hdr.sgml : 20130506 20130506161616 ACCESSION NUMBER: 0001176334-13-000073 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130506 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130506 DATE AS OF CHANGE: 20130506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARTIN MIDSTREAM PARTNERS LP CENTRAL INDEX KEY: 0001176334 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PETROLEUM BULK STATIONS & TERMINALS [5171] IRS NUMBER: 050527861 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50056 FILM NUMBER: 13816349 BUSINESS ADDRESS: STREET 1: 4200 STONE ROAD CITY: KILGORE STATE: TX ZIP: 75662 BUSINESS PHONE: 9039836200 8-K 1 form8-kearningsrelease05x0.htm 8-K Form 8-K Earnings Release 05-06-2013 (2013.3.31 10-Q)

UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
 
of the Securities Exchange Act of 1934
 
Date of report (date of earliest event reported): May 6, 2013
 
MARTIN MIDSTREAM PARTNERS L.P.
(Exact name of Registrant as specified in its charter)
 
 
 
 
 
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)
 
Registrant's telephone number, including area code: (903) 983-6200
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 
 
 
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.
 
      On May 6, 2013, Martin Midstream Partners L.P. (the “ Partnership ”) issued a press release reporting its financial results for the quarter ended March 31, 2013.   A copy of the press release is furnished as Exhibit 99.1 to this Current Report and will be published on the Partnership's website at www.martinmidstream.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”). 


 
 
 
Item 9.01.
 
Financial Statements and Exhibits.
 
      (d)  Exhibits
 
      In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
 
 
 
 
 
Exhibit
 
 
Number
 
Description
 
99.1

 
 
Press release dated May 6, 2013.
 


























 1   




 
 SIGNATURES
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
MARTIN MIDSTREAM PARTNERS L.P.
 
By: Martin Midstream GP LLC,
Its General Partner
 
 
Date: May 6, 2013
 
By: /s/ Robert D. Bondurant  
 
 
 
Robert D. Bondurant
 
 
 
Executive Vice President and
Chief Financial Officer 
 
 
 
 







































2




 INDEX TO EXHIBITS
 
 
 
 
 
Exhibit
 
 
Number
 
Description
 
99.1

 
 
Press release dated May 6, 2013.
 


















































3


 EX-99.1 2 exhibit991pressrelease2013.htm EXHIBIT 99.1 !ST QTR EARNINGS PRESS RELEASE 2013 EXHIBIT 99.1 Press Release (2013.3.31 10-Q)


EXHIBIT 99.1
MARTIN MIDSTREAM PARTNERS REPORTS
2013 FIRST QUARTER FINANCIAL RESULTS

KILGORE, Texas, May 6, 2013 (GlobeNewswire) -- Martin Midstream Partners L.P. (Nasdaq: MMLP) (the "Partnership") announced today its financial results for the first quarter ended March 31, 2013.
  
The Partnership reported net income for the first quarter of 2013 of $16.6 million, or $0.61 per limited partner unit. This compared to net income for the first quarter of 2012 of $12.5 million, or $0.39 per limited partner unit.

    The Partnership reported income from continuing operations for the first quarter of 2013 of $16.6 million, or $0.61 per limited partner unit. This compared to income from continuing operations for the first quarter of 2012 of $10.7 million, or $0.33 per limited partner unit. The Partnership reported income from discontinued operations for the first quarter of 2012 of $1.7 million, or $0.06 per limited partner unit. Revenues for the first quarter of 2013 were $433.7 million compared to $348.3 million for the first quarter of 2012.
 
The Partnership's distributable cash flow for the first quarter of 2013 was $28.9 million. Distributable cash flow is a non-GAAP (United States generally accepted accounting principles) 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.

Included with this press release are the Partnership's consolidated financial statements as of and for the three months ended March 31, 2013 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, filed with the Securities and Exchange Commission on May 6, 2013.
    
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said, "During the first quarter 2013, the Partnership generated record cash flow. We finished the quarter with a strong 1.38 times distribution coverage ratio. On a fully diluted basis, our distribution coverage ratio would have been 1.27 times assuming the incentive distribution rights were in effect for the quarter. The general partner has agreed to forego its right to receive $18.0 million in incentive distributions in support of our natural gas storage investment.
  
"Our Partnership saw positive results across multiple segments during the first quarter. This included strong performance in the wholesale butane division of our Natural Gas Services segment. The market remained strong as the gasoline blending season carried over from the fourth quarter. In our Sulfur Services segment, we benefited from another strong quarter from our fertilizer division. In the Terminalling and Storage segment, our second consecutive quarter with an integrated lubricant packaging platform showed great results and is ahead of planned cash flow year to date. We continue to be excited about the potential growth of our lubricant packaging business and are committed to its success. Lastly, we believe our Marine Transportation segment is also currently well-positioned. While inland demand remains strong, utilization is currently also strong in our offshore division, which has historically had more volatile cash flow.

"Also, the first quarter 2013 was the first full operational quarter under contract for our Corpus Christi crude oil terminal facility. Throughput to date at the terminal has exceeded plan on the first six tanks and generated strong cash flow. Currently, we are making progress securing a contract for the final 300,000 barrels of storage for which construction will commence soon. The additional storage is anticipated to be operational in early 2014.



"Finally, the Partnership completed its largest financing transaction by closing on a new $600 million credit facility during the first quarter. Our new credit facility provides ample liquidity to enable us to continue our growth initiatives."
Investors' Conference Call
  
An investors' conference call to review the first quarter results will be held on Tuesday, May 7, 2013, 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 (855) 859-2056 from 11:00 a.m. Central Time on May 7, 2013 through 10:59 p.m. Central Time on May 14, 2013. The access code for the conference call and the audio replay is Conference ID No. 55302215. The audio replay of the conference call will also be archived on Martin Midstream Partners' website at www.martinmidstream.com.

Quarterly Cash Distribution
 
The quarterly cash distribution of $0.775 per common units which was announced on April 25, 2013 is payable on May 15, 2013 to common unitholders of record as of the close of business on May 8, 2013. The ex-dividend date for the cash distribution is May 6, 2013. This distribution reflects an annualized distribution rate of $3.10 per unit and is based on the Partnership's current operating performance and the current general economic, industry, and market conditions affecting it.

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: terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished products; natural gas services, including liquids distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and by-products. The Partnership is based in Kilgore, Texas and was founded in 2002.

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 its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Information
  
The Partnership reports its financial results in accordance with U.S. GAAP. However, from time to time, the Partnership uses certain non-GAAP financial measures such as distributable cash flow because the Partnership'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 Partnership'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. 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, the Partnership 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. The Partnership calculates distributable cash flow as follows: net income (as reported in statements of operations); plus depreciation and amortization; less gain on sale of property, plant and equipment; plus amortization of debt discount and amortization of deferred debt issuance costs; less payments of installment notes payable and capital lease obligations; plus return of investments from unconsolidated entities (all as reported in statements of cash flows); plus equity in losses of unconsolidated entities (as reported in statements of operations); less maintenance capital expenditures (as reported under the caption “Liquidity and Capital Resources” in the Partnership's Quarterly Report on Form 10-Q filed with the SEC on May 6, 2013); plus unit-based compensation (as reported in statements of changes in capital).

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

Contact: Robert D. Bondurant, Executive Vice President and Chief Financial Officer of Martin Midstream GP LLC, the Partnership's general partner at (903) 983-6200.




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


 
March 31, 2013
 
December 31, 2012
 
(Unaudited)
 
(Audited)
Assets
 
 
 
Cash
$
47

 
$
5,162

Accounts and other receivables, less allowance for doubtful accounts of $2,831 and $2,805, respectively
134,013

 
190,652

Product exchange receivables
6,041

 
3,416

Inventories
71,198

 
95,987

Due from affiliates
38,978

 
13,343

Other current assets
3,823

 
2,777

Assets held for sale
1,251

 
3,578

Total current assets
255,351

 
314,915

 
 
 
 
Property, plant and equipment, at cost
830,385

 
767,344

Accumulated depreciation
(267,657
)
 
(256,963
)
Property, plant and equipment, net
562,728

 
510,381

 
 
 
 
Goodwill
19,616

 
19,616

Investment in unconsolidated entities
177,775

 
154,309

Debt issuance costs, net
17,736

 
10,244

Other assets, net
3,159

 
3,531

 
$
1,036,365

 
$
1,012,996

 
 
 
 
Liabilities and Partners’ Capital
 

 
 

Current installments of long-term debt and capital lease obligations
$
3,192

 
$
3,206

Trade and other accounts payable
115,616

 
140,045

Product exchange payables
20,632

 
12,187

Due to affiliates
5,710

 
3,316

Income taxes payable
2,045

 
10,239

Other accrued liabilities
13,674

 
9,489

Total current liabilities
160,869

 
178,482

 
 
 
 
Long-term debt and capital leases, less current maturities
520,001

 
474,992

Other long-term obligations
1,560

 
1,560

Total liabilities
682,430

 
655,034

 
 
 
 
Partners’ capital
353,935

 
357,962

Commitments and contingencies
 
 
 
 
$
1,036,365

 
$
1,012,996



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 6, 2013.





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

 
Three Months Ended
 
March 31,
 
2013
 
20121
Revenues:
 
 
 
Terminalling and storage  *
$
28,891

 
$
20,186

Marine transportation  *
24,980

 
20,862

Sulfur services
3,001

 
2,926

Product sales: *
 
 
 
Natural gas services
259,109

 
172,111

Sulfur services
67,384

 
71,626

Terminalling and storage
50,321

 
60,615

 
376,814

 
304,352

Total revenues
433,686

 
348,326

 
 
 
 
Costs and expenses:
 

 
 

Cost of products sold: (excluding depreciation and amortization)
 

 
 

Natural gas services *
248,778

 
167,199

Sulfur services *
52,797

 
54,960

Terminalling and storage
43,815

 
53,646

 
345,390

 
275,805

Expenses:
 

 
 

Operating expenses  *
43,360

 
37,011

Selling, general and administrative  *
7,030

 
5,771

Depreciation and amortization
11,893

 
9,953

Total costs and expenses
407,673

 
328,540

 
 
 
 
Other operating income (loss)
372

 
(5
)
Operating income
26,385

 
19,781

 
 
 
 
Other income (expense):
 

 
 

Equity in earnings (loss) of unconsolidated entities
(374
)
 
233

Interest expense
(9,058
)
 
(7,656
)
Debt prepayment premium
—

 
(251
)
Other, net
(9
)
 
292

Total other expense
(9,441
)
 
(7,382
)
 
 
 
 
Net income before taxes
16,944

 
12,399

Income tax expense
(307
)
 
(1,657
)
Income from continuing operations
16,637

 
10,742

Income from discontinued operations, net of income taxes
—

 
1,725

Net income
16,637

 
12,467

Less general partners' interest in net income
(333
)
 
(1,611
)
Less pre-acquisition income allocated to Parent
—

 
(1,938
)
Less income allocable to unvested restricted units
(43
)
 
—

Limited partners' interest in net income
$
16,261

 
$
8,918


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 6, 2013.

1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. See Note 1 – General.
*Related Party Transactions Shown Below




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

*Related Party Transactions Included Above

 
Three Months Ended
 
March 31,
 
2013
 
20121
Revenues:
 
 
 
Terminalling and storage
$
17,328

 
$
15,275

Marine transportation
6,843

 
4,857

Product Sales
1,209

 
2,190

Costs and expenses:
 

 
 

Cost of products sold: (excluding depreciation and amortization)
 

 
 

Terminalling and storage
11,961

 
12,649

Natural gas services
8,556

 
4,315

Sulfur services
4,534

 
4,431

Expenses:
 

 
 

Operating expenses
17,974

 
13,817

Selling, general and administrative
4,418

 
2,666


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 6, 2013.

1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. See Note 1 – General.




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars and units in thousands, except per unit amounts)
 
Three Months Ended
 
March 31,
 
2013
 
20121
Allocation of net income attributable to:
 
 
 
   Limited partner interest:
 
 
 
 Continuing operations
$
16,261

 
$
7,457

 Discontinued operations
—

 
1,461

 
16,261

 
8,918

   General partner interest:
 
 
 

  Continuing operations
333

 
1,347

  Discontinued operations
—

 
264

 
333

 
1,611

 
 
 
 

Net income attributable to limited partners:
 
 
 
Basic:
 
 
 

Continuing operations
$
0.61

 
$
0.33

Discontinued operations
—

 
0.06

 
$
0.61

 
$
0.39

Weighted average limited partner units - basic
26,561

 
22,576

Diluted:
 
 
 

Continuing operations
$
0.61

 
$
0.33

Discontinued operations
—

 
0.06

 
$
0.61

 
$
0.39

Weighted average limited partner units - diluted
26,569

 
22,580


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 6, 2013.

1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. See Note 1 – General.




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)
 
Partners’ Capital
 
 
 
Parent Net Investment1
 
Common Limited
 
Subordinated Limited
 
General Partner
 
Accumulated
Other
Comprehensive
Income
 
 
 
 
Units
 
Amount
 
Units
 
Amount
 
Amount
 
(Loss)
 
Total
Balances - January 1, 2012
$
51,571

 
20,471,776

 
$
279,562

 
—

 
$
—

 
$
5,428

 
$
626

 
$
337,187

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
1,938

 
—

 
9,079

 
—

 
—

 
1,450

 
—

 
12,467

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
$
53,509

 
23,116,776

 
$
362,448

 
—

 
$
—

 
$
7,011

 
$
562

 
$
423,530

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances - January 1, 2013
$
—

 
26,566,776

 
$
349,490

 
—

 
$
—

 
$
8,472

 
$
—

 
$
357,962

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
—

 
—

 
16,304

 
—

 
—

 
333

 
—

 
16,637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of restricted units
—

 
57,750

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General partner contribution
—

 
—

 
—

 
—

 
—

 
37

 
—

 
37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash distributions
—

 
—

 
(20,501
)
 
—

 
—

 
(456
)
 
—

 
(20,957
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unit-based compensation
—

 
—

 
256

 
—

 
—

 
—

 
—

 
256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances - March 31, 2013
$
—

 
26,624,526

 
$
345,549

 
—

 
$
—

 
$
8,386

 
$
—

 
$
353,935


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 6, 2013.

1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. See Note 1 – General.




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 
Three Months Ended
 
March 31,
 
2013
 
20121
Cash flows from operating activities:
 
 
 
Net income
$
16,637

 
$
12,467

Less:  Income from discontinued operations
—

 
(1,725
)
Net income from continuing operations
16,637

 
10,742

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Depreciation and amortization
11,893

 
9,953

Amortization of deferred debt issuance costs
1,269

 
690

Amortization of debt discount
76

 
87

(Gain) loss on sale of property, plant and equipment
(372
)
 
6

Equity in (earnings) loss of unconsolidated entities
374

 
(233
)
Unit-based compensation
256

 
56

Other
6

 
—

Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
 

 
 

Accounts and other receivables
56,639

 
3,920

Product exchange receivables
(2,625
)
 
8,433

Inventories
25,494

 
(12,323
)
Due from affiliates
(25,635
)
 
(5,142
)
Other current assets
(1,046
)
 
(1,091
)
Trade and other accounts payable
(24,429
)
 
(9,507
)
Product exchange payables
8,445

 
(6,730
)
Due to affiliates
2,394

 
(2,455
)
Income taxes payable
484

 
262

Other accrued liabilities
4,185

 
2,530

Change in other non-current assets and liabilities
26

 
52

Net cash provided by (used in) continuing operating activities
74,071

 
(750
)
Net cash provided by (used in) discontinued operating activities
(8,678
)
 
855

Net cash provided by operating activities
65,393

 
105

Cash flows from investing activities:
 

 
 

Payments for property, plant and equipment
(14,715
)
 
(31,035
)
Acquisitions
(50,801
)
 
—

Payments for plant turnaround costs
—

 
(305
)
Proceeds from sale of property, plant and equipment
3,610

 
20

Return of investments from unconsolidated entities
525

 
1,072

Contributions to unconsolidated entities
(24,365
)
 
(7,657
)
Net cash used in continuing investing activities
(85,746
)
 
(37,905
)
Net cash used in discontinued investing activities
—

 
(1,161
)
Net cash used in investing activities
(85,746
)
 
(39,066
)
Cash flows from financing activities:
 

 
 

Payments of long-term debt
(373,000
)
 
(146,000
)
Payments of notes payable and capital lease obligations
(81
)
 
(6,407
)
Proceeds from long-term debt
418,000

 
126,000

Net proceeds from follow on offering
—

 
91,377

General partner contribution
37

 
1,951

Payment of debt issuance costs
(8,761
)
 
—

Cash distributions paid
(20,957
)
 
(19,444
)
Net cash provided by financing activities
15,238

 
47,477

Net increase (decrease) in cash
(5,115
)
 
8,516

Cash at beginning of period
5,162

 
266

Cash at end of period
$
47

 
$
8,782


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 6, 2013.

1 Financial information for 2012 has been revised to include results attributable to the Redbird Class A interests and the Blending and Packaging Assets acquired from Cross prior to October 2, 2012. See Note 1 – General.



MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands)


Terminalling and Storage Segment
Three Months Ended March 31,
 
2013
 
2012
 
(In thousands)
Revenues:
 
 
 
Services
$
30,032

 
$
21,361

Products
50,321

 
60,615

Total revenues
80,353

 
81,976

 
 
 
 
Cost of products sold
44,270

 
54,166

Operating expenses
17,694

 
14,044

Selling, general and administrative expenses
695

 
1,377

Depreciation and amortization
7,096

 
4,976

 
10,598

 
7,413

Other operating income
71

 
20

Operating income
$
10,669

 
$
7,433

 
 
 
 
Terminalling volumes (Bbls)
209.6

 
237.9


Natural Gas Services Segment
Three Months Ended March 31,
 
2013
 
2012
 
(In thousands)
Revenues:
 
 
 
Marine transportation
$
330

 
$
—

Product
259,109

 
172,111

Total revenues
259,439

 
172,111

 
 
 
 
Cost of products sold
249,136

 
167,576

Operating expenses
981

 
952

Selling, general and administrative expenses
926

 
597

Depreciation and amortization
292

 
143

Operating income
$
8,104

 
$
2,843

 
 
 
 
NGLs volumes (Bbls)
3,705

 
2,297






MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands)

Sulfur Services Segment
Three Months Ended March 31,
 
2013
 
2012
 
(In thousands)
Revenues:
 
 
 
Services
$
3,001

 
$
2,926

Products
67,384

 
71,626

Total revenues
70,385

 
74,552

 
 
 
 
Cost of products sold
52,887

 
55,051

Operating expenses
4,439

 
4,193

Selling, general and administrative expenses
1,047

 
955

Depreciation and amortization
1,966

 
1,793

 
10,046

 
12,560

Other operating income (loss)
—

 
(25
)
Operating income
$
10,046

 
$
12,535

 
 
 
 
Sulfur (long tons)
194.0

 
279.0

Fertilizer (long tons)
103.7

 
93.9

Sulfur services volumes (long tons)
297.7

 
372.9


Marine Transportation Segment
Three Months Ended March 31,
 
2013
 
2012
 
(In thousands)
Revenues
$
25,232

 
$
21,567

Operating expenses
21,066

 
18,714

Selling, general and administrative expenses
419

 
424

Depreciation and amortization
2,539

 
3,041

 
1,208

 
(612
)
Other operating income
301

 
—

Operating income (loss)
$
1,509

 
$
(612
)

















MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
Unaudited Non-GAAP Financial Measure
(Dollars in thousands)


 
Three Months Ended March 31, 2013
 
 
Net income
$
16,637

 
 
Adjustments to reconcile net income to distributable cash flow:
 
Depreciation and amortization
11,893

Gain on sale of property, plant and equipment
(372
)
Amortization of debt discount
76

Amortization of deferred debt issuance costs
1,269

Payments of installment notes payable and capital lease obligations
(81
)
Return of investments from unconsolidated entities
525

Equity in loss of unconsolidated entities
374

Maintenance capital expenditures
(1,678
)
Unit-based compensation
256

Distributable cash flow
$
28,899