KILGORE, Texas, March 14 /PRNewswire-FirstCall/ -- Martin Midstream Partners announced today its financial results for the fourth quarter and year ended December 31, 2005.
MMLP reported net income for the fourth quarter ended December 31, 2005 of $2.6 million on revenues of $144.6 million compared to net income for the quarter ended December 31, 2004 of $4.4 million on revenues of $91.6 million. MMLP's net income per limited partner unit for the fourth quarter of 2005 was $0.28 compared to net income per limited partner unit for the fourth quarter of 2004 of $0.51.
MMLP reported net income for the year ended December 31, 2005 of $13.9 million on revenues of $438.4 million compared to net income for the year ended December 31, 2004 of $12.3 million on revenues of $294.1 million. MMLP's net income per limited partner unit for the year ended December 31, 2005 was $1.58 compared to net income per limited partner unit for the year ended December 31, 2004 of $1.45.
The Company's distributable cash flow for the year ended December 31, 2005 was $21.1 million, or 1.11 times the actual cash distributed by MMLP to unitholders in 2005. The Company's distributable cash flow for the year ended December 31, 2004 was $18.0 million, or 1.03 times the actual cash distributed by MMLP to unitholders in 2004. As a result of the growth in distributable cash flow, MMLP increased its 2005 quarterly distributions per limited partner unit from $0.535 paid in respect of the first quarter of 2005 to $0.61 paid in respect of the fourth quarter of 2005. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information".
Fourth quarter 2005 results were negatively impacted by $0.09 per limited partner unit due to the down-time resulting from the conversion of one of MMLP's offshore marine vessels and the conversion of tankage at its Tampa terminal to different product specifications. The Company anticipates that the conversion of these assets should result in higher levels of service at higher margins in 2006.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, MMLP's general partner, stated: "2005 has been a pivotal year for our company. Prism Gas, our largest acquisition to date, has been successfully integrated with our company and has provided us with immediate entry into the growing East Texas and North Louisiana natural gas gathering and processing business. Furthermore, the acquisition of Prism Gas has provided us with substantial organic growth opportunities at favorable rates of return in 2006 and beyond. We currently have $70 to $80 million in organic growth projects currently in progress, which we anticipate will come on line in 2006 and 2007. In addition to our growing natural gas/LPG services segment, we have also experienced significant growth in our newly formed sulfur segment. With the acquisitions of Bay Sulfur and the remaining interest in CF Martin Sulphur during 2005, as well as the construction of a new sulfur processing facility at our Neches terminal, we have further developed our sulfur gathering, processing and distribution infrastructure. This expanded infrastructure gives us and our customers access to the world sulfur markets. We look forward to a full year of operations from Prism Gas and these new sulfur assets."
Included with this press release are MMLP's Consolidated Balance Sheets as of December 31, 2005 and 2004, its Consolidated Statements of Operations for the years ended December 31, 2005, 2004 and 2003, its Consolidated Statements of Cash Flows for the years ended December 31, 2005, 2004 and 2003 and its Consolidated Statements of Operations for the quarters ended December 31, 2005 and 2004. These financial statements should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K, to be filed with the Securities and Exchange Commission.
Investors' Conference Call
An investors' conference call to review the fourth quarter and year end results will be held on Wednesday, March 15, 2006, at 8:30 a.m. Central Time. The conference call can be accessed by calling (877) 407-9205. An audio replay of the conference call will be available by calling (877) 660-6853 from 10:00 a.m. Central Time on March 15, 2006 through 11:59 p.m. Central Time on March 22, 2006. The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 195687. The audio replay of the conference call will also be archived on the Company's website at http://www.martinmidstream.com/ .
About Martin Midstream Partners
Martin Midstream Partners 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 lines include: terminalling and storage services for petroleum products and by-products; natural gas gathering, processing and LPG distribution; marine transportation services for petroleum products and by-products; sulfur gathering, processing and distribution; and fertilizer manufacturing and distribution.
Additional information concerning the Company is available on the Company's website at http://www.martinmidstream.com/ .
Forward-Looking Statements
Statements about Martin Midstream Partners' 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 MMLP believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties and anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Company's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners 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
MMLP reports its financial results in accordance with generally accepted accounting principles. However, from time to time, MMLP uses certain non-GAAP financial measures such as distributable cash flow because 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 MMLP's cash flow after it has satisfied the capital and related requirements of its operations. Distributable cash flow is not a measure of financial performance or liquidity under GAAP. It should not be considered in isolation or as an indicator of MMLP's performance. 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, MMLP 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 Company 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. MMLP calculates distributable cash flow as follows: net income (as reported in its Consolidated Statements of Operations), plus depreciation and amortization and amortization of deferred debt issue costs (as reported in its Consolidated Statements of Cash Flows), plus proceeds from sale of property, plant and equipment (as reported in its Consolidated Statements of Cash Flows), less gain on sale of property, plant and equipment (as reported in its Consolidated Statements of Cash Flows), plus distributions from unconsolidated entities (as reported in its Consolidated Statements of Cash Flows), plus distributions in- kind from equity investments (as reported in its Consolidated Statements of Cash Flows), less non-cash mark-to-market on derivatives (as reported in its Consolidated Statements of Cash Flows), plus distributions in-kind from equity investments (as reported in its Consolidated Statements of Cash Flows), less repayment of debt (as described below), less maintenance capital expenditures (as described below), less investments in unconsolidated partnerships (as reported in its Consolidated Statements of Cash Flows), less equity in earnings of unconsolidated entities (as reported in its Consolidated Statements of Operations). Repayment of debt represents a semi-annual payment by MMLP of principal on U.S. Government Guaranteed Ship Financing Bonds assumed in connection with the acquisition of the partnership interests in CF Martin Sulphur not previously owned by MMLP. Such indebtedness was paid in full by MMLP on March 6, 2006. MMLP's maintenance capital expenditures, along with its expansion capital expenditures, are components of payments for property, plant, and equipment included in its Consolidated Statements of Cash Flows. For the year ended December 31, 2005, MMLP had $5.1 million in maintenance capital expenditures and $74.1 million in expansion capital expenditures.
Contacts:
Robert D. Bondurant, Executive Vice President and Chief Financial Officer of Martin Midstream GP LLC, the Company's general partner at (903) 983-6200.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
December 31,
2005 2004
(Dollars in thousands)
Assets
Cash $6,465 $3,184
Accounts and other receivables, less allowance
for doubtful accounts of $140 and $427 72,162 43,526
Product exchange receivables 2,141 50
Inventories 33,909 23,165
Due from affiliates 1,475 1,892
Other current assets 1,420 724
Total current assets 117,572 72,541
Property, plant, and equipment, at cost 235,218 148,241
Accumulated depreciation (59,505) (38,472)
Property, plant and equipment, net 175,713 109,769
Goodwill 27,600 2,922
Investment in unconsolidated entities 59,879 ---
Other assets, net 8,280 3,100
$389,044 $188,332
Liabilities and Capital
Current installments of long-term debt $9,104 ---
Trade and other accounts payable 67,387 $26,537
Product exchange payables 9,624 9,081
Due to affiliates 3,492 429
Income taxes payable 6,345 ---
Other accrued liabilities 3,617 2,443
Total current liabilities 99,569 38,490
Long-term debt 192,200 73,000
Other long-term obligations 1,710 1,308
Total liabilities 293,479 112,798
Partners' capital 95,565 75,534
Commitments and contingencies $389,044 $188,332
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2005 2004 2003
(Dollars in thousands,
except per unit amounts)
Revenues:
Terminalling and storage $23,081 $17,919 $6,921
Marine transportation 35,451 34,780 26,342
Product sales:
Natural gas/LPG services 301,676 203,427 133,038
Sulfur 36,784 --- ---
Fertilizer 31,634 29,780 26,296
Terminalling and storage 9,817 8,238 134
379,911 241,445 159,468
Total revenues 438,443 294,144 192,731
Costs and expenses:
Cost of products sold:
Natural gas/LPG services 291,109 197,859 128,055
Sulfur 25,657 --- ---
Fertilizer 26,975 25,342 22,730
Terminalling and storage 8,079 6,775 107
351,820 229,976 150,892
Expenses:
Operating expenses 46,888 34,475 21,590
Selling, general and administrative 8,133 6,198 4,986
Depreciation and amortization 12,642 8,766 4,765
Total costs and expenses 419,483 279,415 182,233
Other operating income --- --- 589
Operating income 18,960 14,729 11,087
Other income (expense):
Equity in earnings of
unconsolidated entities 1,591 912 2,801
Interest expense (6,909) (3,326) (2,001)
Other, net 238 11 94
Total other income (expense) (5,080) (2,403) 894
Net income $13,880 $12,326 $11,981
General partner's interest in net income $278 $247 $240
Limited partners' interest in net income $13,602 $12,079 $11,741
Net income per limited partner unit $1.58 $1.45 $1.64
Weighted average limited partner units 8,583,634 8,349,551 7,153,362
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL/EQUITY
For the years ended December 31, 2005, 2004 and 2003
Partners' Capital
General
Limited Partners Partner
Common Subordinated
Units Amount Units Amount Amount Total
(Dollars in thousands)
Balances -
December 31, 2002 2,900,000 $48,396 4,253,362 $(1,288) $(2) $47,106
Net income --- 4,760 --- 6,981 240 11,981
Cash distributions
($1.81 per unit) --- (5,242) --- (7,689) (264) (13,195)
Balances -
December 31, 2003 2,900,000 47,914 4,253,362 (1,996) (26) 45,892
Net income --- 5,923 --- 6,156 247 12,326
Follow-on public
offering 1,322,500 34,016 --- --- --- 34,016
General partner
contribution --- --- --- --- 754 754
Cash distributions
($2.10 per unit) --- (8,173) --- (8,932) (349) (17,454)
Balances -
December 31, 2004 4,222,500 79,680 4,253,362 (4,772) 626 75,534
Net income --- 6,756 --- 6,846 278 13,880
Units issued in
connection with Prism
Gas acquisition 756,480 24,616 --- --- --- 24,616
Conversion of
subordinated units
to common units 850,672 (1,599) (850,672) 1,599 --- ---
General partner
contribution --- --- --- --- 502 502
Cash distributions
($2.19 per unit) --- (9,247) --- (9,315) (405) (18,967)
Balances -
December 31, 2005 5,829,652 $100,206 3,402,690 $(5,642) $1,001 $95,565
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2005 2004 2003
(Dollars in thousands)
Cash flows from operating activities:
Net income $13,880 $12,326 $11,981
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 12,628 8,753 4,765
Amortization of deferred debt
issue costs 600 886 486
Accretion of asset retirement obligations 14 13 ---
(Gain) loss on disposition or sale of
property, plant, and equipment (37) 48 (3)
(Gain) loss on involuntary conversion of
property, plant, and equipment --- --- (589)
Equity in earnings of unconsolidated
entities (1,591) (912) (2,801)
Non-cash mark-to-market on derivatives (555) --- ---
Distribution in-kind from equity
investments 1,115 --- ---
Change in current assets and liabilities,
excluding effects of acquisitions
and dispositions:
Accounts and other receivables (10,565) (16,499) (6,802)
Product exchange receivables (1,974) 1,733 (743)
Inventories (4,474) (3,502) (4,152)
Due from affiliates 417 (1,730) 170
Other current assets 36 32 (483)
Trade and other accounts payable 27,669 9,171 3,359
Product exchange payables (8,238) 1,859 4,937
Due to affiliates 3,063 (131) 560
Other accrued liabilities (496) 765 (412)
Change in other non-current assets, net 288 --- ---
Change in other non-current
liabilities, net 323 --- ---
Net cash provided by operating
activities 32,103 12,812 10,273
Cash flows from investing activities:
Payments for property, plant,
and equipment (24,814) (5,182) (2,904)
Acquisitions, net of cash acquired (114,167) (31,234) (29,028)
Proceeds from sale of property,
plant, and equipment 95 114 3
Insurance proceeds on fire loss --- --- 744
Investments in unconsolidated partnerships (322) --- ---
Distributions from unconsolidated
partnerships 697 1,980 3,564
Net cash used in investing activities (138,511) (34,322) (27,621)
Cash flows from financing activities:
Payments of long-term debt (134,091) (43,215) ---
Net proceeds from follow on
public offering --- 34,016 ---
General partner contribution 502 754 ---
Proceeds from long-term debt 250,900 49,215 32,000
Payments of debt issuance costs (3,655) (892) (921)
Cash distributions paid (18,967) (17,454) (13,195)
Proceeds from issuance of common units 15,000 --- ---
Net cash provided by financing
activities 109,689 22,424 17,884
Net increase in cash 3,281 914 536
Cash at beginning of period 3,184 2,270 1,734
Cash at end of period $6,465 $3,184 $2,270
Non-cash:
Financed portion of non-compete agreement $690 $398
Common units issued for acquisitions $9,616
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
4th Quarter 4th Quarter
2005 2004
(Dollars in thousands,
except per unit amounts)
Revenues:
Terminalling and storage $6,223 $5,296
Marine transportation 8,817 9,701
Product sales:
Natural gas/LPG services 102,189 67,078
Sulfur 19,041 ---
Fertilizer 5,654 7,383
Terminalling and storage 2,703 2,175
129,587 76,636
Total revenues 144,627 91,633
Costs and expenses:
Cost of products sold:
Natural gas/LPG services 98,922 65,392
Sulfur 13,627 ---
Fertilizer 5,020 5,891
Terminalling and storage 2,110 1,784
119,679 73,067
Expenses:
Operating expenses 14,110 8,989
Selling, general and administrative 2,713 2,034
Depreciation and amortization 3,970 2,490
Total costs and expenses 140,472 86,580
Operating income 4,155 5,053
Other income (expense):
Equity in earnings of unconsolidated entities 1,369 380
Interest expense (3,075) (988)
Other, net 111 (41)
Total other income (expense) (1,595) (649)
Net income $2,560 $4,404
General partner's interest in net income $51 $88
Limited partners' interest in net income $2,509 $4,316
Net income per limited partner unit $.28 $.51
Weighted average limited partner units 8,903,438 8,475,862
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission.
MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
(Dollars in thousands)
(Unaudited Non-GAAP Financial Measure)
Three Months Ended Year Ended
December 31, December 31,
2005 2005
Net income $2,560 $13,880
Adjustments to reconcile net income to
distributable cash flow:
Depreciation and amortization 3,970 12,642
Proceeds from sale of property,
plant and equipment 49 95
Gain on sale of property, plant
and equipment (37) (37)
Distributions from unconsolidated entities 697 697
Distributions in-kind from
equity investments 1,115 1,115
Amortization of deferred debt issue costs 204 600
Non-cash mark-to-market on derivatives (555) (555)
Repayment of debt (A) --- (291)
Maintenance capital expenditures (B) (1,922) (5,100)
Investments in unconsolidated partnerships (322) (322)
Equity in earnings of unconsolidated
entities (1,369) (1,591)
Distributable cash flow $4,390 $21,133
(A) Represents a semi-annual payment by MMLP of principal on U.S.
Government Guaranteed Ship Financing Bonds assumed in connection
with the acquisition of the partnership interests in CF Martin
Sulphur not owned by MMLP. Such indebtedness was paid in full by
MMLP on March 6, 2006.
(B) Maintenance capital expenditures, along with expansion capital
expenditures, are components of payments for property, plant and
equipment set forth in MMLP's Consolidated Statements of Cash Flows.
MMLP had $5.1 million in maintenance capital expenditures and $74.1
million in expansion capital expenditures for the year ended
December 31, 2005. MMLP had $1.9 million in maintenance capital
expenditures and $41.0 million in expansion capital expenditures for
the quarter ended December 31, 2005.
