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 February 25, 2015 |
MARTIN MIDSTREAM PARTNERS L.P. By: Martin Midstream GP LLC, Its General Partner | |||||
Date: February 25, 2015 | By: /s/ Robert D. Bondurant | ||||
Robert D. Bondurant | |||||
Executive Vice President and Chief Financial Officer | |||||
Exhibit | |||||
Number | Description | ||||
99.1 | Press release dated February 25, 2015. |
• | Distributable cash flow from continuing operations increased 43% compared to the 4th quarter of 2013 |
• | Distribution increase of $0.03, or 3.8%, per unit compared to the 4th quarter of 2013 |
• | Adjusted EBITDA from continuing operations increased 12% compared to the 4th quarter of 2013 |
December 31, | |||||||
2014 | 2013 | ||||||
Assets | |||||||
Cash | $ | 42 | $ | 16,542 | |||
Accounts and other receivables, less allowance for doubtful accounts of $1,620 and $2,492, respectively | 134,173 | 163,855 | |||||
Product exchange receivables | 3,046 | 2,727 | |||||
Inventories | 88,718 | 94,902 | |||||
Due from affiliates | 14,512 | 12,099 | |||||
Other current assets | 6,772 | 7,353 | |||||
Assets held for sale | 40,488 | — | |||||
Total current assets | 287,751 | 297,478 | |||||
Property, plant and equipment, at cost | 1,343,674 | 929,183 | |||||
Accumulated depreciation | (345,397 | ) | (304,808 | ) | |||
Property, plant and equipment, net | 998,277 | 624,375 | |||||
Goodwill | 23,802 | 23,802 | |||||
Investment in unconsolidated entities | 134,506 | 128,662 | |||||
Debt issuance costs, net | 13,118 | 15,659 | |||||
Notes receivable - Martin Energy Trading LLC | 15,000 | — | |||||
Intangibles and other assets, net | 81,465 | 7,943 | |||||
$ | 1,553,919 | $ | 1,097,919 | ||||
Liabilities and Partners’ Capital | |||||||
Trade and other accounts payable | $ | 125,332 | $ | 142,951 | |||
Product exchange payables | 10,396 | 9,595 | |||||
Due to affiliates | 4,872 | 2,596 | |||||
Income taxes payable | 1,174 | 1,204 | |||||
Other accrued liabilities | 21,801 | 20,242 | |||||
Total current liabilities | 163,575 | 176,588 | |||||
Long-term debt | 902,005 | 658,695 | |||||
Other long-term obligations | 2,668 | 2,219 | |||||
Total liabilities | 1,068,248 | 837,502 | |||||
Commitments and contingencies | |||||||
Partners’ capital | 485,671 | 260,417 | |||||
$ | 1,553,919 | $ | 1,097,919 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
Terminalling and storage * | $ | 130,506 | $ | 115,965 | $ | 90,243 | |||||
Marine transportation * | 91,372 | 95,496 | 85,748 | ||||||||
Natural gas storage services | 22,991 | — | — | ||||||||
Sulfur services | 12,149 | 12,004 | 11,702 | ||||||||
Product sales: * | |||||||||||
Natural gas services | 990,844 | 966,909 | 825,506 | ||||||||
Sulfur services | 203,322 | 201,120 | 249,882 | ||||||||
Terminalling and storage | 190,957 | 221,245 | 227,280 | ||||||||
1,385,123 | 1,389,274 | 1,302,668 | |||||||||
Total revenues | 1,642,141 | 1,612,739 | 1,490,361 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||
Natural gas services * | 948,765 | 928,725 | 801,724 | ||||||||
Sulfur services * | 159,782 | 157,723 | 194,952 | ||||||||
Terminalling and storage * | 172,069 | 195,640 | 205,588 | ||||||||
1,280,616 | 1,282,088 | 1,202,264 | |||||||||
Expenses: | |||||||||||
Operating expenses * | 184,049 | 170,155 | 146,287 | ||||||||
Selling, general and administrative * | 36,316 | 29,236 | 25,494 | ||||||||
Impairment of long lived assets | 3,445 | — | — | ||||||||
Depreciation and amortization | 68,830 | 50,962 | 42,063 | ||||||||
Total costs and expenses | 1,573,256 | 1,532,441 | 1,416,108 | ||||||||
Other operating income (loss) | (1,014 | ) | 1,166 | (418 | ) | ||||||
Operating income | 67,871 | 81,464 | 73,835 | ||||||||
Other income (expense): | |||||||||||
Equity in earnings (loss) of unconsolidated entities | 5,466 | (53,048 | ) | (1,113 | ) | ||||||
Debt prepayment premium | (7,767 | ) | (272 | ) | (2,470 | ) | |||||
Interest expense, net | (42,203 | ) | (42,495 | ) | (30,665 | ) | |||||
Reduction in fair value of investment in Cardinal due to the purchase of the controlling interest | (30,102 | ) | — | — | |||||||
Other, net | 1,505 | 542 | 1,092 | ||||||||
Total other income (expense) | (73,101 | ) | (95,273 | ) | (33,156 | ) | |||||
Net income (loss) before taxes | (5,230 | ) | (13,809 | ) | 40,679 | ||||||
Income tax expense | (1,137 | ) | (753 | ) | (3,557 | ) | |||||
Income (loss) from continuing operations | (6,367 | ) | (14,562 | ) | 37,122 | ||||||
Income (loss) from discontinued operations, net of income taxes | (5,338 | ) | 1,208 | 64,865 | |||||||
Net income (loss) | (11,705 | ) | (13,354 | ) | 101,987 | ||||||
Less general partner's interest in net (income) loss | (3,503 | ) | 267 | (4,748 | ) | ||||||
Less pre-acquisition income allocated to Parent | — | — | (4,622 | ) | |||||||
Less loss allocable to unvested restricted units | 32 | 40 | — | ||||||||
Limited partner's interest in net income (loss) | $ | (15,176 | ) | $ | (13,047 | ) | $ | 92,617 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
Terminalling and storage | $ | 74,467 | $ | 71,517 | $ | 64,669 | |||||
Marine transportation | 24,389 | 24,654 | 17,494 | ||||||||
Product sales | 7,661 | 4,698 | 7,201 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||
Natural gas services | 37,703 | 32,639 | 27,512 | ||||||||
Sulfur services | 18,390 | 18,161 | 16,968 | ||||||||
Terminalling and storage | 36,341 | 48,868 | 48,375 | ||||||||
Expenses: | |||||||||||
Operating expenses | 79,577 | 70,333 | 58,834 | ||||||||
Selling, general and administrative | 23,679 | 17,689 | 13,678 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Allocation of net income (loss) attributable to: | |||||||||||
Limited partner interest: | |||||||||||
Continuing operations | $ | (8,255 | ) | $ | (14,227 | ) | $ | 30,915 | |||
Discontinued operations | (6,921 | ) | 1,180 | 61,702 | |||||||
$ | (15,176 | ) | $ | (13,047 | ) | $ | 92,617 | ||||
General partner interest: | |||||||||||
Continuing operations | $ | 1,906 | $ | (291 | ) | $ | 1,585 | ||||
Discontinued operations | 1,597 | 24 | 3,163 | ||||||||
$ | 3,503 | $ | (267 | ) | $ | 4,748 | |||||
Net income (loss) per unit attributable to limited partners: | |||||||||||
Basic: | |||||||||||
Continuing operations | $ | (0.27 | ) | $ | (0.54 | ) | $ | 1.32 | |||
Discontinued operations | (0.22 | ) | 0.04 | 2.64 | |||||||
$ | (0.49 | ) | $ | (0.50 | ) | $ | 3.96 | ||||
Weighted average limited partner units - basic | 30,785 | 26,558 | 23,362 | ||||||||
Diluted: | |||||||||||
Continuing operations | $ | (0.27 | ) | $ | (0.54 | ) | $ | 1.32 | |||
Discontinued operations | (0.22 | ) | 0.04 | 2.64 | |||||||
$ | (0.49 | ) | $ | (0.50 | ) | $ | 3.96 | ||||
Weighted average limited partner units - diluted | 30,785 | 26,558 | 23,365 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income (loss) | $ | (11,705 | ) | $ | (13,354 | ) | $ | 101,987 | |||
Other comprehensive income adjustments: | |||||||||||
Changes in fair values of commodity cash flow hedges | — | — | 126 | ||||||||
Commodity cash flow hedging gains reclassified to earnings | — | — | (752 | ) | |||||||
Other comprehensive loss | — | — | (626 | ) | |||||||
Comprehensive income (loss) | $ | (11,705 | ) | $ | (13,354 | ) | $ | 101,361 |
Partners’ Capital | ||||||||||||||
Common | General Partner | |||||||||||||
Units | Amount | Amount | Total | |||||||||||
Balances – December 31, 2012 | 26,566,776 | $ | 349,490 | $ | 8,472 | $ | 357,962 | |||||||
Net loss | — | (13,087 | ) | (267 | ) | (13,354 | ) | |||||||
Issuance of restricted units | 64,500 | — | — | — | ||||||||||
Forfeiture of restricted units | (250 | ) | — | — | — | |||||||||
General partner contribution | — | — | 37 | 37 | ||||||||||
Cash distributions ($3.11 per unit) | — | (82,735 | ) | (1,853 | ) | (84,588 | ) | |||||||
Excess purchase price over carrying value of acquired assets | — | (301 | ) | — | (301 | ) | ||||||||
Unit-based compensation | — | 911 | — | 911 | ||||||||||
Purchase of treasury units | (6,000 | ) | (250 | ) | — | (250 | ) | |||||||
Balances – December 31, 2013 | 26,625,026 | 254,028 | 6,389 | 260,417 | ||||||||||
Net loss | — | (15,208 | ) | 3,503 | (11,705 | ) | ||||||||
Issuance of common units | 8,743,386 | 331,728 | — | 331,728 | ||||||||||
Issuance of restricted units | 8,900 | — | — | — | ||||||||||
Forfeiture of restricted units | (5,000 | ) | — | — | — | |||||||||
General partner contribution | — | — | 7,007 | 7,007 | ||||||||||
Purchase of treasury units | (6,400 | ) | (277 | ) | — | (277 | ) | |||||||
Cash distributions ($3.18 per unit) | — | (95,197 | ) | (2,171 | ) | (97,368 | ) | |||||||
Excess purchase price over carrying value of acquired assets | — | (4,948 | ) | — | (4,948 | ) | ||||||||
Unit-based compensation | — | 817 | — | 817 | ||||||||||
Balances – December 31, 2014 | 35,365,912 | $ | 470,943 | $ | 14,728 | $ | 485,671 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (11,705 | ) | $ | (13,354 | ) | $ | 101,987 | |||
Less: (Income) loss from discontinued operations | 5,338 | (1,208 | ) | (64,865 | ) | ||||||
Net income (loss) from continuing operations | (6,367 | ) | (14,562 | ) | 37,122 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 68,830 | 50,962 | 42,063 | ||||||||
Amortization of deferred debt issue costs | 6,263 | 3,700 | 3,290 | ||||||||
Amortization of discount on notes payable | 1,305 | 306 | 581 | ||||||||
Amortization of premium on notes payable | (245 | ) | — | — | |||||||
Deferred income taxes | — | — | 402 | ||||||||
(Gain) loss on disposition or sale of property, plant, and equipment | 1,353 | (217 | ) | 795 | |||||||
Gain on sale of equity method investment | — | (750 | ) | (486 | ) | ||||||
Impairment of long lived assets | 3,445 | — | — | ||||||||
Equity in (income) loss of unconsolidated entities | (5,466 | ) | 53,048 | 1,113 | |||||||
Reduction in fair value of investment in Cardinal due to the purchase of the controlling interest | 30,102 | — | — | ||||||||
Unrealized mark-to-market on derivatives | 818 | — | — | ||||||||
Unit-based compensation | 817 | 911 | 385 | ||||||||
Preferred dividends from Martin Energy Trading | 1,498 | 1,738 | — | ||||||||
Return on investment | 2,600 | — | — | ||||||||
Other | — | 6 | — | ||||||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||||||
Accounts and other receivables | 29,025 | 26,270 | (56,856 | ) | |||||||
Product exchange receivables | (319 | ) | 689 | 14,230 | |||||||
Inventories | 5,680 | 4,559 | (2,733 | ) | |||||||
Due from affiliates | (2,413 | ) | 1,244 | (20,135 | ) | ||||||
Other current assets | 4,123 | (5,432 | ) | 3,046 | |||||||
Trade and other accounts payable | (26,349 | ) | (9,978 | ) | 17,595 | ||||||
Product exchange payables | 801 | (2,592 | ) | (25,126 | ) | ||||||
Due to affiliates | 2,276 | (1,203 | ) | 18,976 | |||||||
Income taxes payable | (30 | ) | (357 | ) | 367 | ||||||
Other accrued liabilities | 1,084 | 10,749 | (1,463 | ) | |||||||
Change in other non-current assets and liabilities | 181 | (1,449 | ) | 872 | |||||||
Net cash provided by continuing operating activities | 119,012 | 117,642 | 34,038 | ||||||||
Net cash used in discontinued operating activities | (3,432 | ) | (5,459 | ) | (1,360 | ) | |||||
Net cash provided by operating activities | 115,580 | 112,183 | 32,678 | ||||||||
Cash flows from investing activities: | |||||||||||
Payments for property, plant, and equipment | (84,307 | ) | (92,243 | ) | (93,640 | ) | |||||
Acquisitions, net of cash acquired | (102,696 | ) | (31,321 | ) | (224,603 | ) | |||||
Proceeds from sale of acquired assets | — | — | 56,000 | ||||||||
Payments for plant turnaround costs | (3,974 | ) | — | (2,107 | ) | ||||||
Proceeds from sale of property, plant, and equipment | 1,030 | 5,576 | 44 | ||||||||
Proceeds from sale of equity method investment | — | 750 | 531 | ||||||||
Proceeds from involuntary conversion of property, plant and equipment | 2,475 | 2,200 | — | ||||||||
Investments in unconsolidated entities | (134,030 | ) | — | (775 | ) | ||||||
Milestone distributions from ECP | — | — | 2,208 | ||||||||
Return of investments from unconsolidated entities | 225 | 1,738 | 5,980 | ||||||||
Contributions to unconsolidated entities for operations | (3,386 | ) | (30,877 | ) | (30,279 | ) | |||||
Net cash used in continuing investing activities | (324,663 | ) | (144,177 | ) | (286,641 | ) | |||||
Net cash provided by (used in) discontinued investing activities | — | (42,600 | ) | 271,605 | |||||||
Net cash used in investing activities | (324,663 | ) | (186,777 | ) | (15,036 | ) | |||||
Cash flows from financing activities: | |||||||||||
Payments of long-term debt | (1,533,087 | ) | (650,000 | ) | (706,000 | ) | |||||
Payments of notes payable and capital lease obligations | — | (8,809 | ) | (6,556 | ) | ||||||
Proceeds from long-term debt | 1,493,250 | 839,000 | 727,000 | ||||||||
Net proceeds from issuance of common units | 331,728 | — | 194,170 | ||||||||
General partner contributions | 7,007 | 37 | 4,145 | ||||||||
Excess purchase price over carrying value of acquired assets | (4,948 | ) | (301 | ) | (142,075 | ) | |||||
Excess carrying value of assets over the purchase price paid by Martin Resource Management | — | — | (4,268 | ) | |||||||
Purchase of treasury units | (277 | ) | (250 | ) | (222 | ) | |||||
Decrease in affiliate funding of investments in unconsolidated entities | — | — | (2,208 | ) | |||||||
Payments of debt issuance costs | (3,722 | ) | (9,115 | ) | (204 | ) | |||||
Cash distributions paid | (97,368 | ) | (84,588 | ) | (76,528 | ) | |||||
Net cash provided by (used in) financing activities | 192,583 | 85,974 | (12,746 | ) | |||||||
Net increase (decrease) in cash | (16,500 | ) | 11,380 | 4,896 | |||||||
Cash at beginning of period | 16,542 | 5,162 | 266 | ||||||||
Cash at end of period | $ | 42 | $ | 16,542 | $ | 5,162 |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 135,697 | $ | 120,717 | $ | 14,980 | 12% | ||||||
Products | 190,957 | 221,249 | (30,292 | ) | (14)% | ||||||||
Total revenues | 326,654 | 341,966 | (15,312 | ) | (4)% | ||||||||
Cost of products sold | 175,246 | 197,974 | (22,728 | ) | (11)% | ||||||||
Operating expenses | 83,504 | 74,441 | 9,063 | 12% | |||||||||
Selling, general and administrative expenses | 3,565 | 3,238 | 327 | 10% | |||||||||
Depreciation and amortization | 37,622 | 31,823 | 5,799 | 18% | |||||||||
26,717 | 34,490 | (7,773 | ) | (23)% | |||||||||
Other operating income | 290 | 792 | (502 | ) | 63% | ||||||||
Operating income | $ | 27,007 | $ | 35,282 | $ | (8,275 | ) | (23)% | |||||
Lubricant sales volumes (gallons) | 32,418 | 39,342 | (6,924 | ) | (18)% | ||||||||
Shore-based throughput volumes (gallons) | 253,262 | 270,522 | (17,260 | ) | (6)% | ||||||||
Smackover refinery throughput volumes (barrels per day) | 6,159 | 6,912 | (753 | ) | (11)% | ||||||||
Corpus Christi crude terminal throughput volumes (barrels per day) | 164,223 | 108,652 | 55,571 | 51% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 120,717 | $ | 94,895 | $ | 25,822 | 27% | ||||||
Products | 221,249 | 227,280 | (6,031 | ) | (3)% | ||||||||
Total revenues | 341,966 | 322,175 | 19,791 | 6% | |||||||||
Cost of products sold | 197,974 | 207,699 | (9,725 | ) | (5)% | ||||||||
Operating expenses | 74,441 | 58,766 | 15,675 | 27% | |||||||||
Selling, general and administrative expenses | 3,238 | 4,671 | (1,433 | ) | (31)% | ||||||||
Depreciation and amortization | 31,823 | 22,976 | 8,847 | 39% | |||||||||
34,490 | 28,063 | 6,427 | 23% | ||||||||||
Other operating income (loss) | 792 | (119 | ) | 911 | 766% | ||||||||
Operating income | $ | 35,282 | $ | 27,944 | $ | 7,338 | 26% | ||||||
Lubricant sales volumes (gallons) | 39,342 | 38,107 | 1,235 | 3% | |||||||||
Shore-based throughput volumes (gallons) | 270,522 | 218,494 | 52,028 | 24% | |||||||||
Smackover refinery throughput volumes (barrels per day) | 6,912 | 5,994 | 918 | 15% | |||||||||
Corpus Christi crude terminal (barrels per day) | 108,652 | 55,529 | 53,123 | 96% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 22,991 | $ | — | $ | 22,991 | |||||||
Products | 990,844 | 966,909 | 23,935 | 2% | |||||||||
Total revenues | 1,013,835 | 966,909 | 46,926 | 5% | |||||||||
Cost of products sold | 950,742 | 930,315 | 20,427 | 2% | |||||||||
Operating expenses | 10,797 | 3,918 | 6,879 | 176% | |||||||||
Selling, general and administrative expenses | 8,596 | 3,731 | 4,865 | 130% | |||||||||
Depreciation and amortization | 13,090 | 962 | 12,128 | 1,261% | |||||||||
30,610 | 27,983 | 2,627 | 9% | ||||||||||
Other operating income | — | 20 | (20 | ) | (100)% | ||||||||
Operating income | $ | 30,610 | $ | 28,003 | $ | 2,607 | 9% | ||||||
Distributions from unconsolidated entities | $ | 4,323 | $ | 3,476 | $ | 847 | 24% | ||||||
NGLs Volumes (barrels) | 19,793 | 14,874 | 4,919 | 33% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 966,909 | $ | 825,506 | $ | 141,403 | 17% | ||||||
Cost of products sold | 930,315 | 803,195 | 127,120 | 16% | |||||||||
Operating expenses | 3,918 | 3,550 | 368 | 10% | |||||||||
Selling, general and administrative expenses | 3,731 | 4,236 | (505 | ) | (12)% | ||||||||
Depreciation and amortization | 962 | 601 | 361 | 60% | |||||||||
27,983 | 13,924 | 14,059 | 101% | ||||||||||
Other operating income | 20 | — | 20 | ||||||||||
Operating income | $ | 28,003 | $ | 13,924 | $ | 14,079 | 101% | ||||||
Distributions from unconsolidated entities | $ | 3,476 | $ | 3,961 | $ | (485 | ) | (12)% | |||||
NGLs Volumes (barrels) | 14,874 | 12,080 | 2,794 | 23% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 12,149 | $ | 12,004 | $ | 145 | 1% | ||||||
Products | 203,322 | 201,120 | 2,202 | 1% | |||||||||
Total revenues | 215,471 | 213,124 | 2,347 | 1% | |||||||||
Cost of products sold | 160,144 | 158,085 | 2,059 | 1% | |||||||||
Operating expenses | 17,136 | 16,975 | 161 | 1% | |||||||||
Selling, general and administrative expenses | 4,359 | 4,083 | 276 | 7% | |||||||||
Depreciation and amortization | 8,176 | 7,979 | 197 | 2% | |||||||||
Operating income | $ | 25,656 | $ | 26,002 | $ | (346 | ) | (1)% | |||||
Sulfur (long tons) | 847.7 | 836.6 | 11.1 | 1% | |||||||||
Fertilizer (long tons) | 306.6 | 273.0 | 33.6 | 12% | |||||||||
Sulfur services volumes (long tons) | 1,154.3 | 1,109.6 | 44.7 | 4% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 12,004 | $ | 11,702 | $ | 302 | 3% | ||||||
Products | 201,120 | 249,882 | (48,762 | ) | (20)% | ||||||||
Total revenues | 213,124 | 261,584 | (48,460 | ) | (19)% | ||||||||
Cost of products sold | 158,085 | 195,314 | (37,229 | ) | (19)% | ||||||||
Operating expenses | 16,975 | 17,404 | (429 | ) | (2)% | ||||||||
Selling, general and administrative expenses | 4,083 | 3,975 | 108 | 3% | |||||||||
Depreciation and amortization | 7,979 | 7,371 | 608 | 8% | |||||||||
26,002 | 37,520 | (11,518 | ) | (31)% | |||||||||
Other operating loss | — | (258 | ) | 258 | 100% | ||||||||
Operating income | $ | 26,002 | $ | 37,262 | $ | (11,260 | ) | (30)% | |||||
Sulfur (long tons) | 836.6 | 959.9 | (123.3 | ) | (13)% | ||||||||
Fertilizer (long tons) | 273.0 | 306.1 | (33.1 | ) | (11)% | ||||||||
Sulfur services volumes (long tons) | 1,109.6 | 1,266.0 | (156.4 | ) | (12)% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 97,049 | $ | 99,511 | $ | (2,462 | ) | (2)% | |||||
Operating expenses | 77,964 | 79,306 | (1,342 | ) | (2)% | ||||||||
Selling, general and administrative expenses | 1,084 | 1,347 | (263 | ) | (20)% | ||||||||
Impairment of long lived assets | (3,445 | ) | — | (3,445 | ) | ||||||||
Depreciation and amortization | 9,942 | 10,198 | (256 | ) | (3)% | ||||||||
11,504 | 8,660 | 2,844 | 33% | ||||||||||
Other operating income (loss) | (1,304 | ) | 354 | (1,658 | ) | (468)% | |||||||
Operating income | $ | 10,200 | $ | 9,014 | $ | 1,186 | 13% |
Year Ended December 31, | Variance | Percent Change | |||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 99,511 | $ | 88,815 | $ | 10,696 | 12% | ||||||
Operating expenses | 79,306 | 70,342 | 8,964 | 13% | |||||||||
Selling, general and administrative expenses | 1,347 | 566 | 781 | 138% | |||||||||
Depreciation and amortization | 10,198 | 11,115 | (917 | ) | (8)% | ||||||||
8,660 | 6,792 | 1,868 | 28% | ||||||||||
Other operating income (loss) | 354 | (41 | ) | 395 | 963% | ||||||||
Operating income | $ | 9,014 | $ | 6,751 | $ | 2,263 | 34% |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 4,374 | $ | (39,261 | ) | $ | (11,705 | ) | $ | (13,354 | ) | ||||
Less: (Income) loss from discontinued operations, net of income taxes | 2,290 | (356 | ) | 5,338 | (1,208 | ) | |||||||||
Income (loss) from continuing operations | 6,664 | (39,617 | ) | (6,367 | ) | (14,562 | ) | ||||||||
Adjustments: | |||||||||||||||
Interest expense | 7,852 | 11,437 | 42,203 | 42,495 | |||||||||||
Income tax (benefit) expense | 183 | (157 | ) | 1,137 | 753 | ||||||||||
Depreciation and amortization | 24,554 | 13,913 | 68,830 | 50,962 | |||||||||||
EBITDA | 39,253 | (14,424 | ) | 105,803 | 79,648 | ||||||||||
Adjustments: | |||||||||||||||
Equity in (income) loss of unconsolidated entities | (1,169 | ) | 52,170 | (5,466 | ) | 53,048 | |||||||||
(Gain) loss on sale of property, plant and equipment | 1,407 | 579 | 1,353 | (217 | ) | ||||||||||
Gain on sale of equity method investment | — | (750 | ) | — | (750 | ) | |||||||||
Gain on involuntary conversion of property, plant and equipment | — | (909 | ) | — | (909 | ) | |||||||||
Impairment of long lived asset | — | — | 3,445 | — | |||||||||||
Unrealized mark to market on commodity derivatives | 818 | — | 818 | — | |||||||||||
Reduction in fair value of investment in Cardinal due to purchase of the controlling interest | — | — | 30,102 | — | |||||||||||
Debt prepayment premium | — | 272 | 7,767 | 272 | |||||||||||
Distributions from unconsolidated entities | 2,000 | 754 | 4,323 | 3,476 | |||||||||||
Unit-based compensation | 228 | 174 | 817 | 911 | |||||||||||
Adjusted EBITDA | 42,537 | 37,866 | 148,962 | 135,479 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense | (7,852 | ) | (11,437 | ) | (42,203 | ) | (42,495 | ) | |||||||
Income tax benefit (expense) | (183 | ) | 157 | (1,137 | ) | (753 | ) | ||||||||
Amortization of deferred debt issuance costs | 848 | 810 | 6,263 | 3,700 | |||||||||||
Amortization of debt discount | — | 76 | 1,305 | 306 | |||||||||||
Amortization of debt premium | (81 | ) | — | (245 | ) | — | |||||||||
Unrealized mark to market on interest rate derivatives | (489 | ) | — | — | — | ||||||||||
Payments of installment notes payable and capital lease obligations | — | (56 | ) | — | (307 | ) | |||||||||
Payments for plant turnaround costs | 26 | — | (3,974 | ) | — | ||||||||||
Maintenance capital expenditures | (1,296 | ) | (3,972 | ) | (14,556 | ) | (11,445 | ) | |||||||
Distributable Cash Flow | $ | 33,510 | $ | 23,444 | $ | 94,415 | $ | 84,485 |
2014 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | YTD | |||||||||||||||
Loss from discontinued operations, net of income taxes | $ | (589 | ) | $ | (1,292 | ) | $ | (1,167 | ) | $ | (2,290 | ) | $ | (5,338 | ) | ||||
Adjustments: | |||||||||||||||||||
Depreciation and amortization | 383 | 384 | 285 | 482 | 1,534 | ||||||||||||||
Distributable Cash Flow from discontinued operations | $ | (206 | ) | $ | (908 | ) | $ | (882 | ) | $ | (1,808 | ) | $ | (3,804 | ) |
2013 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | YTD | |||||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 196 | $ | 1,093 | $ | (437 | ) | $ | 356 | $ | 1,208 | ||||||||
Adjustments: | |||||||||||||||||||
Depreciation and amortization | 128 | 383 | 384 | 383 | 1,278 | ||||||||||||||
Distributable Cash Flow from discontinued operations | $ | 324 | $ | 1,476 | $ | (53 | ) | $ | 739 | $ | 2,486 |