Exhibit
EXHIBIT 99.1
MARTIN MIDSTREAM PARTNERS REPORTS
2018 FIRST QUARTER FINANCIAL RESULTS
| |
• | First Quarter 2018 Net Income of $12.8 million |
| |
• | Strong Quarterly Distribution Coverage Ratio of 1.36 times |
| |
• | First Quarter Distributable Cash Flow and Adjusted EBITDA Exceeds Guidance |
KILGORE, Texas, April 25, 2018 (GlobeNewswire) -- Martin Midstream Partners L.P. (Nasdaq: MMLP) (the "Partnership") announced today its financial results for the quarter ended March 31, 2018.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, “I am pleased with our first quarter 2018 performance as the Partnership earned adjusted EBITDA of $44.7 million, approximately 2.0% ahead of our guidance. As is typical with the seasonal nature of our businesses, we followed a strong fourth quarter 2017 with sequentially strong cash flow during the first quarter this year. Correspondingly, our distribution coverage ratio for the quarter was similarly robust at 1.36 times.
“The Partnership's adjusted EBITDA for the quarter exceeded guidance by $0.8 million. Looking across our operating segments, our Natural Gas Services segment exceeded guidance based primarily on the excellent performance in our wholesale propane business. Propane saw vastly improved margins and volume demand driven by colder weather. Likewise, our Marine Transportation segment continued to benefit from improved cost measures and operational efficiencies while utilization of our equipment was solid, as cash flow exceeded guidance. Performance in our sulfur services segment was in line with our guidance level. And finally, our Terminalling and Storage segment modestly missed cash flow guidance as weakness in our shore based terminals and lubricants businesses was offset by lower operating expenses and better than forecasted cash flow at the Smackover refinery.
“During the quarter, we continued the planned expansion and extension of the WTLPG Pipeline into the Delaware Basin. During 2018, we expect to invest a total of approximately $40.0 million in this project. To accommodate financing, we successfully amended our revolving credit facility to allow for these ongoing capital expenditures; and our amendment grants us additional flexibility related to the seasonal inventory build of natural gas liquids during the second and third quarters.”
The Partnership had net income for the first quarter 2018 of $12.8 million, or $0.33 per limited partner unit. The Partnership had net income for the first quarter 2017 of $13.6 million, or $0.36 per limited partner unit. The Partnership's adjusted EBITDA for the first quarter 2018 was $44.7 million compared to adjusted EBITDA from for the first quarter 2017 of $46.8 million.
The Partnership's distributable cash flow for the first quarter 2018 was $26.7 million compared to distributable cash flow for the first quarter 2017 of $30.3 million.
Revenues for the first quarter 2018 were $284.2 million compared to the first quarter 2017 of $253.3 million.
Distributable cash flow, EBITDA and adjusted EBITDA are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three months ended March 31, 2018 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, to be filed with the Securities and Exchange Commission on April 25, 2018.
An attachment accompanying this announcement is attached to this 8-K as Exhibit 99.2.
Investors' Conference Call
An investors conference call to review the first quarter results will be held on Thursday, April 26, 2018 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 April 26, 2018 through 10:59 p.m. Central Time on May 7, 2018. The access code for the conference call and the audio replay is Conference ID No. 1799846. The audio replay of the conference call will also be archived on Martin Midstream Partners’ website at www.martinmidstream.com
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: (1) natural gas services, including liquids transportation and distribution services and natural gas storage; (2) terminalling, storage and packaging services for petroleum products and by-products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.
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 the Partnership's 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 except where required to do so by law.
Use of Non-GAAP Financial Information
The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization (“EBITDA”), (2) adjusted EBITDA and (3) distributable cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.
EBITDA and Adjusted EBITDA. Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of
computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.
Distributable Cash Flow. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
EBITDA, adjusted EBITDA and distributable cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.
Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com or by contacting:
Joe McCreery, IRC - Vice President - Finance & Head of Investor Relations
(903) 988-6425
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
|
| | | | | | | |
| March 31, 2018 | | December 31, 2017 |
| (Unaudited) | | (Audited) |
Assets | | | |
Cash | $ | 184 |
| | $ | 27 |
|
Accounts and other receivables, less allowance for doubtful accounts of $419 and $314, respectively | 84,554 |
| | 107,242 |
|
Product exchange receivables | 75 |
| | 29 |
|
Inventories (Note 6) | 73,894 |
| | 97,252 |
|
Due from affiliates | 25,866 |
| | 23,668 |
|
Fair value of derivatives (Note 10) | 82 |
| | — |
|
Other current assets | 6,004 |
| | 4,866 |
|
Assets held for sale (Note 4) | 9,442 |
| | 9,579 |
|
Total current assets | 200,101 |
| | 242,663 |
|
| | | |
Property, plant and equipment, at cost | 1,265,516 |
| | 1,253,065 |
|
Accumulated depreciation | (432,275 | ) | | (421,137 | ) |
Property, plant and equipment, net | 833,241 |
| | 831,928 |
|
| | | |
Goodwill | 17,296 |
| | 17,296 |
|
Investment in WTLPG (Note 7) | 130,644 |
| | 128,810 |
|
Other assets, net (Note 9) | 29,779 |
| | 32,801 |
|
Total assets | $ | 1,211,061 |
| | $ | 1,253,498 |
|
| | | |
Liabilities and Partners’ Capital | |
| | |
|
Trade and other accounts payable | $ | 86,751 |
| | $ | 92,567 |
|
Product exchange payables | 10,200 |
| | 11,751 |
|
Due to affiliates | 1,084 |
| | 3,168 |
|
Income taxes payable | 659 |
| | 510 |
|
Fair value of derivatives (Note 10) | — |
| | 72 |
|
Other accrued liabilities (Note 9) | 15,234 |
| | 26,340 |
|
Total current liabilities | 113,928 |
| | 134,408 |
|
| | | |
Long-term debt, net (Note 8) | 795,139 |
| | 812,632 |
|
Other long-term obligations | 10,808 |
| | 8,217 |
|
Total liabilities | 919,875 |
| | 955,257 |
|
| | | |
Commitments and contingencies (Note 15) |
|
| |
|
|
Partners’ capital (Note 11) | 291,186 |
| | 298,241 |
|
Total partners’ capital | 291,186 |
| | 298,241 |
|
Total liabilities and partners' capital | $ | 1,211,061 |
| | $ | 1,253,498 |
|
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 to be filed with the Securities and Exchange Commission on April 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
|
| | | | | | | |
| Three Months Ended |
| March 31, |
| 2018 | | 2017 |
Revenues: | | | |
Terminalling and storage * | $ | 24,064 |
| | $ | 24,658 |
|
Marine transportation * | 11,454 |
| | 12,821 |
|
Natural gas services* | 15,356 |
| | 14,665 |
|
Sulfur services | 2,787 |
| | 2,850 |
|
Product sales: * | | | |
Natural gas services | 159,163 |
| | 126,657 |
|
Sulfur services | 34,900 |
| | 39,527 |
|
Terminalling and storage | 36,480 |
| | 32,147 |
|
| 230,543 |
| | 198,331 |
|
Total revenues | 284,204 |
| | 253,325 |
|
| | | |
Costs and expenses: | |
| | |
|
Cost of products sold: (excluding depreciation and amortization) | |
| | |
|
Natural gas services * | 142,957 |
| | 108,179 |
|
Sulfur services * | 23,896 |
| | 24,483 |
|
Terminalling and storage * | 31,413 |
| | 26,446 |
|
| 198,266 |
| | 159,108 |
|
Expenses: | |
| | |
|
Operating expenses * | 33,001 |
| | 35,057 |
|
Selling, general and administrative * | 9,668 |
| | 9,921 |
|
Depreciation and amortization | 19,210 |
| | 25,336 |
|
Total costs and expenses | 260,145 |
| | 229,422 |
|
| | | |
Other operating loss | (2 | ) | | (155 | ) |
Operating income | 24,057 |
| | 23,748 |
|
| | | |
Other income (expense): | |
| | |
|
Equity in earnings of WTLPG | 1,595 |
| | 905 |
|
Interest expense, net | (12,685 | ) | | (10,920 | ) |
Other, net | — |
| | 30 |
|
Total other expense | (11,090 | ) | | (9,985 | ) |
| | | |
Net income before taxes | 12,967 |
| | 13,763 |
|
Income tax expense | (149 | ) | | (180 | ) |
Net income | 12,818 |
| | 13,583 |
|
Less general partner's interest in net income | (256 | ) | | (272 | ) |
Less income allocable to unvested restricted units | (8 | ) | | (35 | ) |
Limited partners' interest in net income | $ | 12,554 |
| | $ | 13,276 |
|
| | | |
Net income per unit attributable to limited partners - basic | $ | 0.33 |
| | $ | 0.36 |
|
Net income per unit attributable to limited partners - diluted | $ | 0.32 |
| | $ | 0.36 |
|
Weighted average limited partner units - basic | 38,621 |
| | 37,321 |
|
Weighted average limited partner units - diluted | 38,630 |
| | 37,367 |
|
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 to be filed with the Securities and Exchange Commission on April 25, 2018.
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
|
| | | | | | | | |
| | Three Months Ended |
| | March 31, |
| | 2018 | | 2017 |
Revenues:* | | | | |
Terminalling and storage | | $ | 20,025 |
| | $ | 19,704 |
|
Marine transportation | | 3,613 |
| | 4,325 |
|
Natural gas services | | — |
| | 112 |
|
Product Sales | | 642 |
| | 1,430 |
|
Costs and expenses:* | | | | |
Cost of products sold: (excluding depreciation and amortization) | | | | |
Natural gas services | | 4,318 |
| | 8,894 |
|
Sulfur services | | 4,526 |
| | 3,675 |
|
Terminalling and storage | | 6,558 |
| | 5,067 |
|
Expenses: | | | | |
Operating expenses | | 13,384 |
| | 16,376 |
|
Selling, general and administrative | | 7,721 |
| | 7,568 |
|
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 to be filed with the Securities and Exchange Commission on April 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Dollars in thousands)
|
| | | | | | | | | | | | | | |
| Partners’ Capital | | |
| Common Limited | | General Partner Amount | | |
| Units | | Amount | | | Total |
Balances - January 1, 2017 | 35,452,062 |
| | $ | 304,594 |
| | $ | 7,412 |
| | $ | 312,006 |
|
Net income | — |
| | 13,311 |
| | 272 |
| | 13,583 |
|
Issuance of common units, net | 2,990,000 |
| | 51,188 |
| | — |
| | 51,188 |
|
Issuance of restricted units | 12,000 |
| | — |
| | — |
| | — |
|
Forfeiture of restricted units | (1,500 | ) | | — |
| | — |
| | — |
|
General partner contribution | — |
| | — |
| | 1,098 |
| | 1,098 |
|
Cash distributions | — |
| | (17,725 | ) | | (362 | ) | | (18,087 | ) |
Unit-based compensation | — |
| | 186 |
| | — |
| | 186 |
|
Excess purchase price over carrying value of acquired assets | — |
| | (7,887 | ) | | — |
| | (7,887 | ) |
Reimbursement of excess purchase price over carrying value of acquired assets | — |
| | 1,125 |
| | — |
| | 1,125 |
|
Balances - March 31, 2017 | 38,452,562 |
| | $ | 344,792 |
| | $ | 8,420 |
| | $ | 353,212 |
|
| | | | | | | |
Balances - January 1, 2018 | 38,444,612 |
| | $ | 290,927 |
| | $ | 7,314 |
| | $ | 298,241 |
|
Net income | — |
| | 12,562 |
| | 256 |
| | 12,818 |
|
Issuance of common units, net of issuance related costs | — |
| | (101 | ) | | — |
| | (101 | ) |
Issuance of restricted units | 633,425 |
| | — |
| | — |
| | — |
|
Forfeiture of restricted units | (7,000 | ) | | — |
| | — |
| | — |
|
Cash distributions | — |
| | (19,213 | ) | | (392 | ) | | (19,605 | ) |
Unit-based compensation | — |
| | 132 |
| | — |
| | 132 |
|
Excess purchase price over carrying value of acquired assets | — |
| | (26 | ) | | — |
| | (26 | ) |
Purchase of treasury units | (18,800 | ) | | (273 | ) | | — |
| | (273 | ) |
Balances - March 31, 2018 | 39,052,237 |
| | $ | 284,008 |
| | $ | 7,178 |
| | $ | 291,186 |
|
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 to be filed with the Securities and Exchange Commission on April 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
|
| | | | | | | |
| Three Months Ended |
| March 31, |
| 2018 | | 2017 |
Cash flows from operating activities: | | | |
Net income | $ | 12,818 |
| | $ | 13,583 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |
| | |
|
Depreciation and amortization | 19,210 |
| | 25,336 |
|
Amortization of deferred debt issuance costs | 819 |
| | 721 |
|
Amortization of premium on notes payable | (77 | ) | | (77 | ) |
Loss on sale of property, plant and equipment | 2 |
| | 155 |
|
Equity in earnings of WTLPG | (1,595 | ) | | (905 | ) |
Derivative (income) loss | (2,470 | ) | | 2,495 |
|
Net cash received (paid) for commodity derivatives | 2,316 |
| | (6,332 | ) |
Unit-based compensation | 132 |
| | 186 |
|
Cash distributions from WTLPG | 1,500 |
| | 1,200 |
|
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |
| | |
|
Accounts and other receivables | 22,693 |
| | 19,110 |
|
Product exchange receivables | (46 | ) | | (90 | ) |
Inventories | 23,306 |
| | 20,580 |
|
Due from affiliates | (2,203 | ) | | (477 | ) |
Other current assets | (1,232 | ) | | (491 | ) |
Trade and other accounts payable | (3,621 | ) | | (2,560 | ) |
Product exchange payables | (1,551 | ) | | (100 | ) |
Due to affiliates | (2,084 | ) | | (5,186 | ) |
Income taxes payable | 149 |
| | 180 |
|
Other accrued liabilities | (13,310 | ) | | (11,083 | ) |
Change in other non-current assets and liabilities | 634 |
| | 281 |
|
Net cash provided by operating activities | 55,390 |
| | 56,526 |
|
| | | |
Cash flows from investing activities: | |
| | |
|
Payments for property, plant and equipment | (15,165 | ) | | (6,477 | ) |
Acquisitions | — |
| | (19,533 | ) |
Payments for plant turnaround costs | — |
| | (1,394 | ) |
Proceeds from sale of property, plant and equipment | (88 | ) | | 1,481 |
|
Contributions to WTLPG | (1,739 | ) | | — |
|
Net cash used in investing activities | (16,992 | ) | | (25,923 | ) |
| | | |
Cash flows from financing activities: | |
| | |
|
Payments of long-term debt | (101,000 | ) | | (133,000 | ) |
Proceeds from long-term debt | 84,000 |
| | 75,000 |
|
Proceeds from issuance of common units, net of issuance related costs | (101 | ) | | 51,188 |
|
General partner contribution | — |
| | 1,098 |
|
Purchase of treasury units | (273 | ) | | — |
|
Payment of debt issuance costs | (1,236 | ) | | (16 | ) |
Excess purchase price over carrying value of acquired assets | (26 | ) | | (7,887 | ) |
Reimbursement of excess purchase price over carrying value of acquired assets | — |
| | 1,125 |
|
Cash distributions paid | (19,605 | ) | | (18,087 | ) |
Net cash used in financing activities | (38,241 | ) | | (30,579 | ) |
| | | |
Net increase in cash | 157 |
| | 24 |
|
Cash at beginning of period | 27 |
| | 15 |
|
Cash at end of period | $ | 184 |
| | $ | 39 |
|
Non-cash additions to property, plant and equipment | $ | 1,905 |
| | $ | 3,262 |
|
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 to be filed with the Securities and Exchange Commission on April 25, 2018.
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended March 31, 2018 and 2017 |
| | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Variance | | Percent Change |
| 2018 | | 2017 | | |
| (In thousands, except BBL per day) | | |
Revenues: | | | | | | | |
Services | $ | 25,503 |
| | $ | 26,431 |
| | $ | (928 | ) | | (4 | )% |
Products | 36,480 |
| | 32,147 |
| | 4,333 |
| | 13 | % |
Total revenues | 61,983 |
| | 58,578 |
| | 3,405 |
| | 6 | % |
| | | | | | |
|
Cost of products sold | 31,955 |
| | 27,011 |
| | 4,944 |
| | 18 | % |
Operating expenses | 14,994 |
| | 15,645 |
| | (651 | ) | | (4 | )% |
Selling, general and administrative expenses | 1,256 |
| | 1,325 |
| | (69 | ) | | (5 | )% |
Depreciation and amortization | 10,159 |
| | 15,477 |
| | (5,318 | ) | | (34 | )% |
| 3,619 |
| | (880 | ) | | 4,499 |
| | (511 | )% |
Other operating loss | — |
| | (13 | ) | | 13 |
| | (100 | )% |
Operating income (loss) | $ | 3,619 |
| | $ | (893 | ) | | $ | 4,512 |
| | (505 | )% |
| | | | | | |
|
Lubricant sales volumes (gallons) | 5,908 |
| | 5,334 |
| | 574 |
| | 11 | % |
Shore-based throughput volumes (guaranteed minimum) (gallons) | 20,000 |
| | 41,667 |
| | (21,667 | ) | | (52 | )% |
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) | 6,500 |
| | 6,500 |
| | — |
| | — | % |
Natural Gas Services Segment
Comparative Results of Operations for the Three Months Ended March 31, 2018 and 2017
|
| | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Variance | | Percent Change |
| 2018 | | 2017 | | |
| (In thousands) | | |
Revenues: | | | | | | | |
Services | $ | 15,356 |
| | $ | 14,665 |
| | $ | 691 |
| | 5 | % |
Products | 159,163 |
| | 126,657 |
| | 32,506 |
| | 26 | % |
Total revenues | 174,519 |
| | 141,322 |
| | 33,197 |
| | 23 | % |
| | | | | | |
|
|
Cost of products sold | 143,748 |
| | 109,303 |
| | 34,445 |
| | 32 | % |
Operating expenses | 5,780 |
| | 5,658 |
| | 122 |
| | 2 | % |
Selling, general and administrative expenses | 3,070 |
| | 3,051 |
| | 19 |
| | 1 | % |
Depreciation and amortization | 5,301 |
| | 6,161 |
| | (860 | ) | | (14 | )% |
Operating income | $ | 16,620 |
| | $ | 17,149 |
| | $ | (529 | ) | | (3 | )% |
| | | | | | |
|
|
Distributions from WTLPG | $ | 1,500 |
| | $ | 1,200 |
| | $ | 300 |
| | 25 | % |
| | | | | | |
|
|
NGL sales volumes (Bbls) | 3,441 |
| | 2,810 |
| | 631 |
| | 22 | % |
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended March 31, 2018 and 2017 |
| | | | | | | | | | | | | | |
| Three Months Ended March 31, | | Variance | | Percent Change |
| 2018 | | 2017 | | |
| (In thousands) | | |
Revenues: | | | | | | | |
Services | $ | 2,787 |
| | $ | 2,850 |
| | $ | (63 | ) | | (2 | )% |
Products | 34,900 |
| | 39,527 |
| | (4,627 | ) | | (12 | )% |
Total revenues | 37,687 |
| | 42,377 |
| | (4,690 | ) | | (11 | )% |
| | | | | | | |
Cost of products sold | 23,987 |
| | 24,574 |
| | (587 | ) | | (2 | )% |
Operating expenses | 2,912 |
| | 3,247 |
| | (335 | ) | | (10 | )% |
Selling, general and administrative expenses | 1,035 |
| | 1,021 |
| | 14 |
| | 1 | % |
Depreciation and amortization | 2,064 |
| | 2,033 |
| | 31 |
| | 2 | % |
| 7,689 |
| | 11,502 |
| | (3,813 | ) | | (33 | )% |
Other operating loss | (2 | ) | | (22 | ) | | 20 |
| | (91 | )% |
Operating income | $ | 7,687 |
| | $ | 11,480 |
| | $ | (3,793 | ) | | (33 | )% |
| | | | | | | |
Sulfur (long tons) | 176 |
| | 217 |
| | (41 | ) | | (19 | )% |
Fertilizer (long tons) | 88 |
| | 94 |
| | (6 | ) | | (6 | )% |
Total sulfur services volumes (long tons) | 264 |
| | 311 |
| | (47 | ) | | (15 | )% |
Marine Transportation Segment
Comparative Results of Operations for the Three Months Ended March 31, 2018 and 2017 |
| | | | | | | | | | | | | |
| Three Months Ended March 31, | | Variance | | Percent Change |
| 2018 | | 2017 | | |
| (In thousands) | | |
Revenues | $ | 12,028 |
| | $ | 13,414 |
| | $ | (1,386 | ) | | (10)% |
Operating expenses | 9,904 |
| | 11,093 |
| | (1,189 | ) | | (11)% |
Selling, general and administrative expenses | 76 |
| | 104 |
| | (28 | ) | | (27)% |
Depreciation and amortization | 1,686 |
| | 1,665 |
| | 21 |
| | 1% |
| $ | 362 |
| | $ | 552 |
| | $ | (190 | ) | | (34)% |
Other operating loss | — |
| | (120 | ) | | 120 |
| | (100)% |
Operating income | $ | 362 |
| | $ | 432 |
| | $ | (70 | ) | | (16)% |
Non-GAAP Financial Measures
The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2018 and 2017, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
|
| | | | | | | |
| Three Months Ended |
| March 31, |
| 2018 | | 2017 |
| (in thousands) |
Net income | $ | 12,818 |
| | $ | 13,583 |
|
Adjustments: | | | |
Interest expense, net | 12,685 |
| | 10,920 |
|
Income tax expense | 149 |
| | 180 |
|
Depreciation and amortization | 19,210 |
| | 25,336 |
|
EBITDA | 44,862 |
| | 50,019 |
|
Adjustments: | | | |
Equity in earnings of WTLPG | (1,595 | ) | | (905 | ) |
Loss on sale of property, plant and equipment | 2 |
| | 155 |
|
Unrealized mark-to-market on commodity derivatives | (154 | ) | | (3,837 | ) |
Distributions from WTLPG | 1,500 |
| | 1,200 |
|
Unit-based compensation | 132 |
| | 186 |
|
Adjusted EBITDA | 44,747 |
| | 46,818 |
|
Adjustments: | | | |
Interest expense, net | (12,685 | ) | | (10,920 | ) |
Income tax expense | (149 | ) | | (180 | ) |
Amortization of debt premium | (77 | ) | | (77 | ) |
Amortization of deferred debt issuance costs | 819 |
| | 721 |
|
Payments for plant turnaround costs | — |
| | (1,394 | ) |
Maintenance capital expenditures | (6,002 | ) | | (4,668 | ) |
Distributable Cash Flow | $ | 26,653 |
| | $ | 30,300 |
|
