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 October 28, 2015 |
MARTIN MIDSTREAM PARTNERS L.P. By: Martin Midstream GP LLC, Its General Partner | ||||
Date: October 28, 2015 | By: /s/ Robert D. Bondurant | |||
Robert D. Bondurant | ||||
Executive Vice President, Treasurer, Principal Accounting Officer and Chief Financial Officer |
Exhibit | |||||
Number | Description | ||||
99.1 | Press release dated October 28, 2015 |
• | Distributable cash flow from continuing operations increased 53% compared to the third quarter of 2014 |
• | Adjusted EBITDA of $41.4 million representing an increase of 20% compared to the third quarter of 2014 |
• | Distribution coverage ratio for trailing twelve months of 1.02 times |
September 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Cash | $ | 13 | $ | 42 | |||
Accounts and other receivables, less allowance for doubtful accounts of $488 and $1,620, respectively | 63,881 | 134,173 | |||||
Product exchange receivables | 2,137 | 3,046 | |||||
Inventories | 91,803 | 88,718 | |||||
Due from affiliates | 11,164 | 14,512 | |||||
Other current assets | 6,344 | 6,772 | |||||
Assets held for sale | — | 40,488 | |||||
Total current assets | 175,342 | 287,751 | |||||
Property, plant and equipment, at cost | 1,382,972 | 1,343,674 | |||||
Accumulated depreciation | (393,035 | ) | (345,397 | ) | |||
Property, plant and equipment, net | 989,937 | 998,277 | |||||
Goodwill | 23,802 | 23,802 | |||||
Investment in unconsolidated entities | 132,458 | 134,506 | |||||
Note receivable - Martin Energy Trading LLC | 15,000 | 15,000 | |||||
Other assets, net | 64,896 | 81,465 | |||||
Total assets | $ | 1,401,435 | $ | 1,540,801 | |||
Liabilities and Partners’ Capital | |||||||
Trade and other accounts payable | $ | 69,584 | $ | 125,332 | |||
Product exchange payables | 16,756 | 10,396 | |||||
Due to affiliates | 2,937 | 4,872 | |||||
Income taxes payable | 788 | 1,174 | |||||
Fair value of derivatives | 358 | — | |||||
Other accrued liabilities | 12,845 | 21,801 | |||||
Total current liabilities | 103,268 | 163,575 | |||||
Long-term debt, net | 876,405 | 888,887 | |||||
Other long-term obligations | 2,193 | 2,668 | |||||
Total liabilities | 981,866 | 1,055,130 | |||||
Commitments and contingencies | |||||||
Partners’ capital | 419,569 | 485,671 | |||||
Total liabilities and partners' capital | $ | 1,401,435 | $ | 1,540,801 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage * | $ | 33,578 | $ | 31,880 | $ | 100,828 | $ | 97,848 | |||||||
Marine transportation * | 18,977 | 24,281 | 59,956 | 69,479 | |||||||||||
Natural gas services | 17,120 | 5,764 | 50,171 | 5,764 | |||||||||||
Sulfur services | 3,090 | 3,037 | 9,270 | 9,112 | |||||||||||
Product sales: * | |||||||||||||||
Natural gas services | 86,714 | 217,398 | 330,803 | 771,798 | |||||||||||
Sulfur services | 33,213 | 46,993 | 128,544 | 157,706 | |||||||||||
Terminalling and storage | 33,329 | 47,735 | 102,901 | 153,451 | |||||||||||
153,256 | 312,126 | 562,248 | 1,082,955 | ||||||||||||
Total revenues | 226,021 | 377,088 | 782,473 | 1,265,158 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services * | 80,709 | 205,828 | 307,039 | 738,561 | |||||||||||
Sulfur services * | 26,144 | 38,841 | 95,685 | 122,009 | |||||||||||
Terminalling and storage * | 28,237 | 42,239 | 87,977 | 137,074 | |||||||||||
135,090 | 286,908 | 490,701 | 997,644 | ||||||||||||
Expenses: | |||||||||||||||
Operating expenses * | 45,310 | 47,283 | 138,399 | 137,294 | |||||||||||
Selling, general and administrative * | 8,666 | 10,161 | 26,507 | 27,222 | |||||||||||
Depreciation and amortization | 23,335 | 16,457 | 68,737 | 44,277 | |||||||||||
Total costs and expenses | 212,401 | 360,809 | 724,344 | 1,206,437 | |||||||||||
Impairment of long-lived assets | — | (3,445 | ) | — | (3,445 | ) | |||||||||
Other operating income (loss) | (1,586 | ) | 347 | (1,763 | ) | 401 | |||||||||
Operating income | 12,034 | 13,181 | 56,366 | 55,677 | |||||||||||
Other income (expense): | |||||||||||||||
Equity in earnings of unconsolidated entities | 2,363 | 2,655 | 5,752 | 4,297 | |||||||||||
Interest expense, net | (11,994 | ) | (11,459 | ) | (32,465 | ) | (34,351 | ) | |||||||
Gain on retirement of senior unsecured notes | 728 | — | 728 | — | |||||||||||
Debt prepayment premium | — | — | — | (7,767 | ) | ||||||||||
Reduction in carrying value of investment in Cardinal due to the purchase of the controlling interest | — | (30,102 | ) | — | (30,102 | ) | |||||||||
Other, net | 399 | 287 | 757 | 170 | |||||||||||
Total other expense | (8,504 | ) | (38,619 | ) | (25,228 | ) | (67,753 | ) | |||||||
Net income (loss) before taxes | 3,530 | (25,438 | ) | 31,138 | (12,076 | ) | |||||||||
Income tax expense | (200 | ) | (300 | ) | (814 | ) | (954 | ) | |||||||
Income (loss) from continuing operations | 3,330 | (25,738 | ) | 30,324 | (13,030 | ) | |||||||||
Income (loss) from discontinued operations, net of income taxes | — | (1,167 | ) | 1,215 | (3,048 | ) | |||||||||
Net income (loss) | 3,330 | (26,905 | ) | 31,539 | (16,078 | ) | |||||||||
Less general partner's interest in net (income) loss | (3,959 | ) | 539 | (12,310 | ) | 322 | |||||||||
Less (income) loss allocable to unvested restricted units | (16 | ) | 62 | (127 | ) | 33 | |||||||||
Limited partners' interest in net income (loss) | $ | (645 | ) | $ | (26,304 | ) | $ | 19,102 | $ | (15,723 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues:* | |||||||||||||||
Terminalling and storage | $ | 15,091 | $ | 19,045 | $ | 58,626 | $ | 55,798 | |||||||
Marine transportation | 6,552 | 6,076 | 19,919 | 18,340 | |||||||||||
Product Sales | 1,731 | 883 | 5,079 | 6,484 | |||||||||||
Costs and expenses:* | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services | 6,470 | 9,908 | 20,198 | 29,169 | |||||||||||
Sulfur services | 3,387 | 4,491 | 10,629 | 13,808 | |||||||||||
Terminalling and storage | 3,227 | 9,174 | 14,261 | 25,571 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses | 19,290 | 21,013 | 58,605 | 58,500 | |||||||||||
Selling, general and administrative | 5,922 | 7,230 | 17,765 | 18,103 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Allocation of net income (loss) attributable to: | |||||||||||||||
Limited partner interest: | |||||||||||||||
Continuing operations | $ | (645 | ) | $ | (25,162 | ) | $ | 18,366 | $ | (12,743 | ) | ||||
Discontinued operations | — | (1,142 | ) | 736 | (2,980 | ) | |||||||||
$ | (645 | ) | $ | (26,304 | ) | $ | 19,102 | $ | (15,723 | ) | |||||
General partner interest: | |||||||||||||||
Continuing operations | $ | 3,959 | $ | (515 | ) | $ | 11,836 | $ | (261 | ) | |||||
Discontinued operations | — | (24 | ) | 474 | (61 | ) | |||||||||
$ | 3,959 | $ | (539 | ) | $ | 12,310 | $ | (322 | ) | ||||||
Net income (loss) per unit attributable to limited partners: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | (0.02 | ) | $ | (0.78 | ) | $ | 0.52 | $ | (0.44 | ) | ||||
Discontinued operations | — | (0.04 | ) | 0.02 | (0.10 | ) | |||||||||
$ | (0.02 | ) | $ | (0.82 | ) | $ | 0.54 | $ | (0.54 | ) | |||||
Weighted average limited partner units - basic | 35,308 | 32,243 | 35,309 | 29,271 | |||||||||||
Diluted: | |||||||||||||||
Continuing operations | $ | (0.02 | ) | $ | (0.78 | ) | $ | 0.52 | $ | (0.44 | ) | ||||
Discontinued operations | — | (0.04 | ) | 0.02 | (0.1 | ) | |||||||||
$ | (0.02 | ) | $ | (0.82 | ) | $ | 0.54 | $ | (0.54 | ) | |||||
Weighted average limited partner units - diluted | 35,308 | 32,243 | 35,369 | 29,271 |
Partners’ Capital | ||||||||||||||
Common Limited | General Partner Amount | |||||||||||||
Units | Amount | Total | ||||||||||||
Balances - January 1, 2014 | 26,625,026 | $ | 254,028 | $ | 6,389 | $ | 260,417 | |||||||
Net income | — | (15,756 | ) | (322 | ) | (16,078 | ) | |||||||
Issuance of common units | 8,727,673 | 331,571 | — | 331,571 | ||||||||||
Issuance of restricted units | 6,900 | — | — | — | ||||||||||
Forfeiture of restricted units | (3,500 | ) | — | — | — | |||||||||
General partner contribution | — | — | 6,995 | 6,995 | ||||||||||
Cash distributions | — | (66,473 | ) | (1,506 | ) | (67,979 | ) | |||||||
Excess purchase price over carrying value of acquired assets | — | (4,948 | ) | — | (4,948 | ) | ||||||||
Unit-based compensation | — | 589 | — | 589 | ||||||||||
Purchase of treasury units | (6,400 | ) | (277 | ) | — | (277 | ) | |||||||
Balances - September 30, 2014 | 35,349,699 | $ | 498,734 | $ | 11,556 | $ | 510,290 | |||||||
Balances - January 1, 2015 | 35,365,912 | $ | 470,943 | $ | 14,728 | $ | 485,671 | |||||||
Net income | — | 19,229 | 12,310 | 31,539 | ||||||||||
Issuance of common units, net of issuance related costs | — | (330 | ) | — | (330 | ) | ||||||||
Issuance of restricted units | 91,950 | — | — | — | ||||||||||
Forfeiture of restricted units | (1,250 | ) | — | — | — | |||||||||
General partner contribution | — | — | 55 | 55 | ||||||||||
Cash distributions | — | (86,420 | ) | (13,526 | ) | (99,946 | ) | |||||||
Unit-based compensation | — | 1,080 | — | 1,080 | ||||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | 1,500 | — | 1,500 | ||||||||||
Balances - September 30, 2015 | 35,456,612 | $ | 406,002 | $ | 13,567 | $ | 419,569 |
Nine Months Ended | |||||||
September 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 31,539 | $ | (16,078 | ) | ||
Less: (Income) loss from discontinued operations, net of income taxes | (1,215 | ) | 3,048 | ||||
Net income from continuing operations | 30,324 | (13,030 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 68,737 | 44,277 | |||||
Amortization of deferred debt issuance costs | 4,142 | 5,415 | |||||
Amortization of debt discount | — | 1,305 | |||||
Amortization of premium on notes payable | (246 | ) | (164 | ) | |||
Loss (gain) on sale of property, plant and equipment | 1,751 | (54 | ) | ||||
Impairment of long-lived assets | — | 3,445 | |||||
Gain on retirement of senior notes | (728 | ) | — | ||||
Equity in earnings of unconsolidated entities | (5,752 | ) | (4,297 | ) | |||
Reduction in carrying value of investment in Cardinal due to purchase of the controlling interest | — | 30,102 | |||||
Non-cash mark-to-market on derivatives | 358 | 489 | |||||
Unit-based compensation | 1,080 | 589 | |||||
Preferred dividends on MET investment | — | 1,498 | |||||
Return on investment in unconsolidated subsidiary | 7,800 | 600 | |||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||
Accounts and other receivables | 69,967 | 32,345 | |||||
Product exchange receivables | 909 | (3,624 | ) | ||||
Inventories | (3,134 | ) | (21,793 | ) | |||
Due from affiliates | 3,348 | (2,482 | ) | ||||
Other current assets | 354 | 1,219 | |||||
Trade and other accounts payable | (59,124 | ) | (28,426 | ) | |||
Product exchange payables | 6,360 | 9,265 | |||||
Due to affiliates | (1,935 | ) | 9,117 | ||||
Income taxes payable | (386 | ) | (202 | ) | |||
Other accrued liabilities | (8,490 | ) | (7,214 | ) | |||
Change in other non-current assets and liabilities | (999 | ) | 1,115 | ||||
Net cash provided by continuing operating activities | 114,336 | 59,495 | |||||
Net cash used in discontinued operating activities | (1,352 | ) | (6,494 | ) | |||
Net cash provided by operating activities | 112,984 | 53,001 | |||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | (40,123 | ) | (58,522 | ) | |||
Acquisitions, less cash acquired | — | (100,046 | ) | ||||
Payments for plant turnaround costs | (1,754 | ) | (4,000 | ) | |||
Proceeds from sale of property, plant and equipment | 1,985 | 702 | |||||
Proceeds from involuntary conversion of property, plant and equipment | — | 2,475 | |||||
Investment in unconsolidated entities | — | (134,413 | ) | ||||
Return of investments from unconsolidated entities | — | 726 | |||||
Contributions to unconsolidated entities | — | (3,386 | ) | ||||
Net cash used in continuing investing activities | (39,892 | ) | (296,464 | ) | |||
Net cash provided by discontinued investing activities | 41,250 | — | |||||
Net cash provided by (used in) investing activities | 1,358 | (296,464 | ) | ||||
Cash flows from financing activities: | |||||||
Payments of long-term debt | (224,310 | ) | (1,458,096 | ) | |||
Proceeds from long-term debt | 209,000 | 1,426,250 | |||||
Proceeds from issuance of common units, net of issuance related costs | (330 | ) | 331,571 | ||||
General partner contribution | 55 | 6,995 | |||||
Purchase of treasury units | — | (277 | ) | ||||
Payment of debt issuance costs | (340 | ) | (3,589 | ) | |||
Excess purchase price over carrying value of acquired assets | — | (4,948 | ) | ||||
Reimbursement of excess purchase price over carrying value of acquired assets | 1,500 | — | |||||
Cash distributions paid | (99,946 | ) | (67,979 | ) | |||
Net cash provided by (used in) financing activities | (114,371 | ) | 229,927 | ||||
Net decrease in cash | (29 | ) | (13,536 | ) | |||
Cash at beginning of period | 42 | 16,542 | |||||
Cash at end of period | $ | 13 | $ | 3,006 | |||
Non-cash additions to property, plant and equipment | $ | 4,389 | $ | 4,208 |
Three Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands, except BBL per day) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 35,144 | $ | 33,213 | $ | 1,931 | 6% | ||||||
Products | 33,329 | 47,735 | (14,406 | ) | (30)% | ||||||||
Total revenues | 68,473 | 80,948 | (12,475 | ) | (15)% | ||||||||
Cost of products sold | 28,765 | 43,193 | (14,428 | ) | (33)% | ||||||||
Operating expenses | 20,268 | 21,506 | (1,238 | ) | (6)% | ||||||||
Selling, general and administrative expenses | 995 | 786 | 209 | 27% | |||||||||
Depreciation and amortization | 9,624 | 9,512 | 112 | 1% | |||||||||
8,821 | 5,951 | 2,870 | 48% | ||||||||||
Other operating income (loss) | 2 | 347 | (345 | ) | (99)% | ||||||||
Operating income | $ | 8,823 | $ | 6,298 | $ | 2,525 | 40% | ||||||
Lubricant sales volumes (gallons) | 5,974 | 8,193 | (2,219 | ) | (27)% | ||||||||
Shore-based throughput volumes (gallons) | 36,383 | 64,338 | (27,955 | ) | (43)% | ||||||||
Smackover refinery throughput volumes (BBL per day) | 6,205 | 7,123 | (918 | ) | (13)% | ||||||||
Corpus Christi crude terminal (BBL per day) | 148,377 | 173,315 | (24,938 | ) | (14)% |
Nine Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands, except BBL per day) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 104,893 | $ | 101,711 | $ | 3,182 | 3% | ||||||
Products | 102,901 | 153,451 | (50,550 | ) | (33)% | ||||||||
Total revenues | 207,794 | 255,162 | (47,368 | ) | (19)% | ||||||||
Cost of products sold | 90,076 | 139,028 | (48,952 | ) | (35)% | ||||||||
Operating expenses | 62,947 | 61,628 | 1,319 | 2% | |||||||||
Selling, general and administrative expenses | 2,806 | 2,484 | 322 | 13% | |||||||||
Depreciation and amortization | 29,030 | 27,902 | 1,128 | 4% | |||||||||
22,935 | 24,120 | (1,185 | ) | (5)% | |||||||||
Other operating income (loss) | (199 | ) | 385 | (584 | ) | (152)% | |||||||
Operating income | $ | 22,736 | $ | 24,505 | $ | (1,769 | ) | (7)% | |||||
Lubricant sales volumes (gallons) | 18,007 | 26,170 | (8,163 | ) | (31)% | ||||||||
Shore-based throughput volumes (gallons) | 122,743 | 186,956 | (64,213 | ) | (34)% | ||||||||
Smackover refinery throughput volumes (BBL per day) | 6,091 | 5,803 | 288 | 5% | |||||||||
Corpus Christi crude terminal (BBL per day) | 166,129 | 160,332 | 5,797 | 4% |
Three Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 17,120 | $ | 5,764 | $ | 11,356 | 197% | ||||||
Products | 86,714 | 217,398 | (130,684 | ) | (60)% | ||||||||
Total revenues | 103,834 | 223,162 | (119,328 | ) | (53)% | ||||||||
Cost of products sold | 81,472 | 206,354 | (124,882 | ) | (61)% | ||||||||
Operating expenses | 6,489 | 3,438 | 3,051 | 89% | |||||||||
Selling, general and administrative expenses | 1,848 | 3,366 | (1,518 | ) | (45)% | ||||||||
Depreciation and amortization | 8,522 | 2,398 | 6,124 | 255% | |||||||||
Operating income | $ | 5,503 | $ | 7,606 | $ | (2,103 | ) | (28)% | |||||
NGL sales volumes (Bbls) | 3,138 | 3,511 | (373 | ) | (11)% |
Nine Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 50,171 | $ | 5,764 | $ | 44,407 | 770% | ||||||
Products | 330,803 | 771,798 | (440,995 | ) | (57)% | ||||||||
Total revenues | 380,974 | 777,562 | (396,588 | ) | (51)% | ||||||||
Cost of products sold | 308,713 | 740,021 | (431,308 | ) | (58)% | ||||||||
Operating expenses | 17,905 | 5,530 | 12,375 | 224% | |||||||||
Selling, general and administrative expenses | 6,313 | 6,253 | 60 | 1% | |||||||||
Depreciation and amortization | 25,297 | 2,811 | 22,486 | 800% | |||||||||
22,746 | 22,947 | (201 | ) | (1)% | |||||||||
Other operating income (loss) | (7 | ) | — | (7 | ) | ||||||||
Operating income | $ | 22,739 | $ | 22,947 | $ | (208 | ) | (1)% | |||||
NGL sales volumes (Bbls) | 10,227 | 12,027 | (1,800 | ) | (15)% |
Three Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 3,090 | $ | 3,037 | $ | 53 | 2% | ||||||
Products | 33,213 | 46,993 | (13,780 | ) | (29)% | ||||||||
Total revenues | 36,303 | 50,030 | (13,727 | ) | (27)% | ||||||||
Cost of products sold | 26,235 | 38,932 | (12,697 | ) | (33)% | ||||||||
Operating expenses | 3,427 | 4,497 | (1,070 | ) | (24)% | ||||||||
Selling, general and administrative expenses | 934 | 1,166 | (232 | ) | (20)% | ||||||||
Depreciation and amortization | 2,129 | 2,078 | 51 | 2% | |||||||||
3,578 | 3,357 | 221 | 7% | ||||||||||
Other operating income | (5 | ) | — | (5 | ) | ||||||||
Operating income | $ | 3,573 | $ | 3,357 | $ | 216 | 6% | ||||||
Sulfur (long tons) | 203 | 251 | (48 | ) | (19)% | ||||||||
Fertilizer (long tons) | 51 | 52 | (1 | ) | (2)% | ||||||||
Total sulfur services volumes (long tons) | 254 | 303 | (49 | ) | (16)% |
Nine Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 9,270 | $ | 9,112 | $ | 158 | 2% | ||||||
Products | 128,544 | 157,706 | (29,162 | ) | (18)% | ||||||||
Total revenues | 137,814 | 166,818 | (29,004 | ) | (17)% | ||||||||
Cost of products sold | 95,961 | 122,281 | (26,320 | ) | (22)% | ||||||||
Operating expenses | 11,697 | 13,283 | (1,586 | ) | (12)% | ||||||||
Selling, general and administrative expenses | 2,859 | 3,404 | (545 | ) | (16)% | ||||||||
Depreciation and amortization | 6,360 | 6,092 | 268 | 4% | |||||||||
20,937 | 21,758 | (821 | ) | (4)% | |||||||||
Other operating loss | (5 | ) | — | (5 | ) | ||||||||
Operating income | $ | 20,932 | $ | 21,758 | $ | (826 | ) | (4)% | |||||
Sulfur (long tons) | 641 | 646 | (5 | ) | (1)% | ||||||||
Fertilizer (long tons) | 229 | 233 | (4 | ) | (2)% | ||||||||
Total sulfur services volumes (long tons) | 870 | 879 | (9 | ) | (1)% |
Three Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 19,522 | $ | 25,858 | $ | (6,336 | ) | (25)% | |||||
Operating expenses | 15,855 | 19,181 | (3,326 | ) | (17)% | ||||||||
Selling, general and administrative expenses | (59 | ) | 364 | (423 | ) | (116)% | |||||||
Depreciation and amortization | 3,060 | 2,469 | 591 | 24% | |||||||||
666 | 3,844 | (3,178 | ) | (83)% | |||||||||
Impairment of long-lived assets | — | (3,445 | ) | 3,445 | (100)% | ||||||||
Other operating income | (1,583 | ) | — | (1,583 | ) | ||||||||
Operating income (loss) | $ | (917 | ) | $ | 399 | $ | (1,316 | ) | (330)% |
Nine Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 62,354 | $ | 73,254 | $ | (10,900 | ) | (15)% | |||||
Operating expenses | 48,284 | 60,805 | (12,521 | ) | (21)% | ||||||||
Selling, general and administrative expenses | 251 | 867 | (616 | ) | (71)% | ||||||||
Depreciation and amortization | 8,050 | 7,472 | 578 | 8% | |||||||||
Operating income | $ | 5,769 | $ | 4,110 | $ | 1,659 | 40% | ||||||
Impairment of long-lived assets | — | (3,445 | ) | 3,445 | 100% | ||||||||
Other operating income | (1,552 | ) | 16 | (1,568 | ) | (9,800)% | |||||||
Operating income | $ | 4,217 | $ | 681 | $ | 3,536 | 519% |
Three Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Distributions from WTLPG | $ | 3,400 | $ | 600 | $ | 2,800 | 467% | ||||||
Distributions from Cardinal | — | — | — | ||||||||||
Distributions from MET | — | 382 | (382 | ) | (100)% | ||||||||
Distributions from unconsolidated entities | $ | 3,400 | $ | 982 | $ | 2,418 | 246% |
Nine Months Ended September 30, | Variance | Percent Change | |||||||||||
2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||
Distributions from WTLPG | $ | 7,800 | $ | 600 | $ | 7,200 | 1,200% | ||||||
Distributions from Cardinal | — | 225 | (225 | ) | 100% | ||||||||
Distributions from MET | — | 1,498 | (1,498 | ) | (100)% | ||||||||
Distributions from unconsolidated entities | $ | 7,800 | $ | 2,323 | $ | 5,477 | 236% |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 3,330 | $ | (26,905 | ) | $ | 31,539 | $ | (16,078 | ) | |||||
Less: (Income) loss from discontinued operations, net of income taxes | — | 1,167 | (1,215 | ) | 3,048 | ||||||||||
Income (loss) from continuing operations | 3,330 | (25,738 | ) | 30,324 | (13,030 | ) | |||||||||
Adjustments: | |||||||||||||||
Interest expense | 11,994 | 11,459 | 32,465 | 34,351 | |||||||||||
Income tax expense | 200 | 300 | 814 | 954 | |||||||||||
Depreciation and amortization | 23,335 | 16,457 | 68,737 | 44,277 | |||||||||||
EBITDA | 38,859 | 2,478 | 132,340 | 66,552 | |||||||||||
Adjustments: | |||||||||||||||
Equity in earnings of unconsolidated entities | (2,363 | ) | (2,655 | ) | (5,752 | ) | (4,297 | ) | |||||||
(Gain) loss on sale of property, plant and equipment | 1,586 | — | 1,751 | (54 | ) | ||||||||||
Impairment of long-lived assets | — | 3,445 | — | 3,445 | |||||||||||
Unrealized mark to market on commodity derivatives | 358 | (21 | ) | 358 | (21 | ) | |||||||||
Reduction in carrying value of investment in Cardinal due to the purchase of the controlling interest | — | 30,102 | — | 30,102 | |||||||||||
Debt prepayment premium | — | — | — | 7,767 | |||||||||||
Gain on retirement of senior unsecured notes | (728 | ) | — | (728 | ) | — | |||||||||
Distributions from unconsolidated entities | 3,400 | 982 | 7,800 | 2,323 | |||||||||||
Unit-based compensation | 330 | 201 | 1,080 | 589 | |||||||||||
Adjusted EBITDA | 41,442 | 34,532 | 136,849 | 106,406 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense | (11,994 | ) | (11,459 | ) | (32,465 | ) | (34,351 | ) | |||||||
Income tax expense | (200 | ) | (300 | ) | (814 | ) | (954 | ) | |||||||
Amortization of debt discount | — | — | — | 1,305 | |||||||||||
Amortization of debt premium | (82 | ) | (82 | ) | (246 | ) | (164 | ) | |||||||
Amortization of deferred debt issuance costs | 2,400 | 827 | 4,142 | 5,415 | |||||||||||
Non-cash mark-to-market on derivatives | — | (58 | ) | — | 489 | ||||||||||
Payments for plant turnaround costs | — | (90 | ) | (1,754 | ) | (4,000 | ) | ||||||||
Maintenance capital expenditures | (2,438 | ) | (4,306 | ) | (7,621 | ) | (13,260 | ) | |||||||
Distributable Cash Flow | $ | 29,128 | $ | 19,064 | $ | 98,091 | $ | 60,886 |