EX-99.1 2 exhibit991earningspressrel.htm EX-99.1 Document

EXHIBIT 99.1

MARTIN MIDSTREAM PARTNERS REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS

•Revises Fourth Quarter Guidance
•Reported net loss of $10.0 million, including a $24.0 million inventory valuation write down, for the nine months ended September 30, 2022
•Reported net loss of $28.0 million, including a $21.8 million inventory valuation write down, for the three months ended September 30, 2022
•Reported adjusted EBITDA of $18.8 million and $97.1 million for the three and nine months ended September 30, 2022, respectively

KILGORE, Texas, November 2, 2022 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) ("MMLP" or the "Partnership") today announced its financial results for the third quarter of 2022.

Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, "During the third quarter, which is typically the Partnership’s weakest quarter due to seasonal lows in the fertilizer and butane businesses, both the Transportation and the Terminalling and Storage segments continued to outperform our internal projections. In the Transportation segment, demand for reliable, experienced tank truck hauling continues to be strong and our expansion in Florida has been positive. On the marine side, rates have now recovered to pre-pandemic levels and asset utilization has improved. In the Terminalling and Storage segment, the underlying drivers of the lubricants and specialty products businesses are positive resulting in higher than anticipated sales volumes. However, the Sulfur and Natural Gas Liquids segments experienced volatility during the third quarter. In the Sulfur segment, both the fertilizer and sulfur groups faced pricing instability resulting in lower fertilizer sales volumes. In addition, the pure sulfur business was impacted by unplanned maintenance expense related to the marine assets deployed in support of the business. Finally, within the NGL segment the butane blending market was negatively impacted by steeply falling prices in September, resulting in a significant non-cash inventory value adjustment.

“Although the markets and the factors that influence them are unpredictable at this time, the Partnership has been able to improve our financial results year over year. However, as commodity prices continue to move erratically from the risk of a global recession and fears of weak oil demand, we are revising our fourth quarter adjusted EBITDA guidance to between $19 and $24 million, resulting in a range of $116 to $121 million for full year 2022.”

THIRD QUARTER 2022 OPERATING RESULTS BY BUSINESS SEGMENT

TERMINALLING AND STORAGE (“T&S”)

T&S Operating Income for the three months ended September 30, 2022 and 2021 was $5.6 million and $4.4 million, respectively.

Adjusted segment EBITDA for T&S was $12.3 million and $11.2 million, for the three months ended September 30, 2022 and 2021, respectively, reflecting continued strength in our lubricant and specialty products divisions.

TRANSPORTATION

Transportation Operating Income for the three months ended September 30, 2022 and 2021 was $12.1 million and $3.9 million, respectively.

Adjusted segment EBITDA for Transportation was $15.1 million and $7.6 million for the three months ended September 30, 2022 and 2021, respectively, reflecting robust demand for land transportation services coupled with improving marine fleet utilization and higher day rates.



SULFUR SERVICES

Sulfur Services Operating Income (Loss) for the three months ended September 30, 2022 and 2021 was $(6.7) million, including a $(3.3) million inventory valuation write down, and $2.3 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $(4.2) million and $4.9 million for the three months ended September 30, 2022 and 2021, respectively, reflecting decreased fertilizer sales volumes related to pricing instability and higher operating expenses in the sulfur business due to marine asset maintenance expense.

NATURAL GAS LIQUIDS (“NGL”)

NGL Operating Income (Loss) for the three months ended September 30, 2022 and 2021 was $(19.0) million, including an $(18.5) million inventory valuation write down, and $1.6 million, respectively, as the butane blending market was negatively impacted by steeply falling prices in September 2022.

Adjusted segment EBITDA for NGL was $(0.2) million and $1.8 million for the three months ended September 30, 2022 and 2021, respectively, primarily reflecting decreased NGL sales volumes and margins.

UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (“USGA”)

USGA expenses included in operating income for the three months ended September 30, 2022 and 2021 were $4.3 million and $4.1 million, respectively.

USGA expenses included in adjusted EBITDA for the three months ended September 30, 2022 and 2021 were $4.2 million and $4.0 million, respectively, primarily reflecting an increase in employee related expenses.

CAPITALIZATION

At September 30, 2022, the Partnership had $547 million of total debt outstanding, including $202 million drawn on its $275 million revolving credit facility, $54 million of senior secured 1.5 lien notes due 2024 and $291 million of senior secured second lien notes due 2025. At September 30, 2022, the Partnership had liquidity of approximately $44 million from available capacity under its revolving credit facility. The Partnership’s adjusted leverage ratio, as calculated under the revolving credit facility, was 3.63 times and 3.46 times on September 30, 2022 and June 30, 2022, respectively. The Partnership was in compliance with all debt covenants as of September 30, 2022.

The Partnership’s revolving credit facility matures on August 31, 2023, therefore the outstanding borrowings under the facility are presented as a current liability on the September 30, 2022 financial statements. The Partnership is in the process of refinancing the credit facility, and although no assurance of success can be given, management presently believes the measures being taken will enable the Partnership to successfully extend the maturity of the credit facility.

RESULTS OF OPERATIONS

The Partnership had a net loss for the three months ended September 30, 2022 of $28.0 million, a loss of $0.71 per limited partner unit. The Partnership had a net loss for the three months ended September 30, 2021 of $6.9 million, a loss of $0.17 per limited partner unit. Adjusted EBITDA for the three months ended September 30, 2022 was $18.8 million compared to $21.5 million for the three months ended September 30, 2021. Net cash provided by (used in) operating activities for the three months ended September 30, 2022 was ($45.2) million, compared to $(18.5) million for the three months ended September 30, 2021. Distributable cash flow for the three months ended September 30, 2022 was $(3.5) million compared to $5.2 million for the three months ended September 30, 2021.



Revenues for the three months ended September 30, 2022 were $229.3 million compared to $211.3 million for the three months ended September 30, 2021.

The Partnership had a net loss for the nine months ended September 30, 2022 of $10.0 million, a loss of $0.25 per limited partner unit. The Partnership had a net loss for the nine months ended September 30, 2021 of $11.0 million, a loss of $0.28 per limited partner unit. Adjusted EBITDA for the nine months ended September 30, 2022 was $97.1 million compared to $74.9 million for the nine months ended September 30, 2021. Net cash provided by (used in) operating activities for the nine months ended September 30, 2022 was $(16.8) million, compared to $(12.4) million for the nine months ended September 30, 2021. Distributable cash flow for the nine months ended September 30, 2022 was $39.6 million compared to $25.3 million for the nine months ended September 30, 2021.

Revenues for the nine months ended September 30, 2022 were $775.5 million compared to $596.5 million for the nine months ended September 30, 2021.

EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow 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, Distributable Cash Flow and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s adjusted EBITDA for the third quarter 2022 to the Partnership's adjusted EBITDA for the third quarter 2021.

2022 REVISED FINANCIAL GUIDANCE

The Partnership now expects to generate adjusted EBITDA between $116 million and $121 million for full-year 2022, compared to the previously revised adjusted EBITDA guidance of between $126 million and $135 million. This decreased guidance reflects our expectation that the seasonal uplift in commodity prices, specifically normal butane prices as a percentage of crude oil, will be lower than historical patterns at least through year-end 2022.

Distributable cash flow is now expected to be between $38 million and $43 million for full-year 2022, compared to the previous distributable cash flow guidance of between $53 million and $62 million. Adjusted free cash flow is now expected to be between $29 million and $34 million, compared to the previous adjusted free cash flow guidance of between $44 million and $53 million.

MMLP does not intend at this time to provide financial guidance beyond 2022.

The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort as the adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with a reasonable degree of certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant.

Investors' Conference Call

Date: Thursday, November 3 2022
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (888) 330-2384
Conference ID: 8536096

Replay Dial In # (800) 770-2030 – Conference ID: 8536096



A webcast of the conference call along with the Third Quarter 2022 Earnings Summary and Revised Guidance Presentation will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.

About Martin Midstream Partners

MMLP, headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP’s four primary business lines include: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products, including the refining of naphthenic crude oil; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution, and transportation services. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn and Facebook.

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, including (i) the current and potential impacts of the COVID-19 pandemic generally (including variants of the virus), on an industry-specific basis, and on the Partnership’s specific operations and business, (ii) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (iii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). 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

To assist the Partnership's management in assessing its business, it uses the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), adjusted EBITDA (as defined below) distributable cash flow available to common unitholders (“distributable cash flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("adjusted free cash flow"). 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.

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.

EBITDA and Adjusted EBITDA. The Partnership defines adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments. Adjusted EBITDA is used as a supplemental performance and liquidity measure by the Partnership's management and by external users of its financial statements, such as investors, commercial banks, research analysts, and others, to assess:

•the financial performance of the Partnership's assets without regard to financing methods, capital structure, or historical cost basis;


•the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness, and make cash distributions to its unitholders; and
•its operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.

The GAAP measures most directly comparable to adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted EBITDA in the same manner.

Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because the Partnership has borrowed money to finance its operations, interest expense is a necessary element of its costs and its ability to generate cash available for distribution. Because the Partnership has capital assets, depreciation and amortization are also necessary elements of its costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, the Partnership believes that it is important to consider net income (loss) and net cash provided by (used in) operating activities as determined under GAAP, as well as adjusted EBITDA, to evaluate its overall performance.

Distributable Cash Flow. The Partnership defines distributable cash flow as net cash provided by (used in) operating activities less cash received (plus cash paid) for closed commodity derivative positions included in accumulated other comprehensive income (loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. 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 us 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 its 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.

Adjusted Free Cash Flow. The Partnership defines adjusted free cash flow as distributable cash flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. The Partnership believes that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. The Partnership's calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.

The GAAP measure most directly comparable to distributable cash flow and adjusted free cash flow is net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP. Distributable cash flow and adjusted free cash flow have important limitations because they exclude some items that affect net income (loss), operating income (loss), and net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, the Partnership believes that it is important to consider net cash provided by (used


in) operating activities determined under GAAP, as well as distributable cash flow and adjusted free cash flow, to evaluate its overall liquidity.

Contact:

Sharon Taylor - Vice President & Chief Financial Officer
(877) 256-6644
investor.relations@mmlp.com

MMLP-F




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
 September 30, 2022December 31, 2021
(Unaudited)(Audited)
Assets  
Cash$45 $52 
Accounts and other receivables, less allowance for doubtful accounts of $448 and $311, respectively
77,148 84,199 
Inventories 135,638 62,120 
Due from affiliates2,393 14,409 
Other current assets17,134 12,908 
Total current assets232,358 173,688 
Property, plant and equipment, at cost904,159 898,770 
Accumulated depreciation(578,277)(553,300)
Property, plant and equipment, net325,882 345,470 
Goodwill16,823 16,823 
Right-of-use assets 33,817 21,861 
Deferred income taxes, net 16,210 19,821 
Other assets, net 2,895 2,198 
Total assets$627,985 $579,861 
Liabilities and Partners’ Capital (Deficit)  
Current installments of long-term debt and finance lease obligations $200,651 $280 
Trade and other accounts payable74,056 70,342 
Product exchange payables711 1,406 
Due to affiliates13,777 1,824 
Income taxes payable613 385 
Other accrued liabilities21,020 29,850 
Total current liabilities310,828 104,087 
Long-term debt, net 342,566 498,871 
Finance lease obligations— 9 
Operating lease liabilities 25,485 15,704 
Other long-term obligations8,323 9,227 
Total liabilities687,202 627,898 
Commitments and contingencies
Partners’ capital (deficit) (59,217)(48,853)
Accumulated other comprehensive income (loss)— 816 
Total partners’ capital (deficit)(59,217)(48,037)
Total liabilities and partners' capital (deficit)$627,985 $579,861 





MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Revenues:  
Terminalling and storage  *$20,007 $18,980 $59,859 $56,060 
Transportation  *58,993 39,079 161,535 103,820 
Sulfur services3,085 2,950 9,253 8,849 
Product sales: *
Natural gas liquids80,891 91,764 299,034 257,081 
Sulfur services25,783 27,887 135,691 95,109 
Terminalling and storage40,546 30,598 110,130 75,606 
 147,220 150,249 544,855 427,796 
Total revenues229,305 211,258 775,502 596,525 
Costs and expenses:    
Cost of products sold: (excluding depreciation and amortization)
    
Natural gas liquids *94,668 85,137 293,350 225,862 
Sulfur services *25,230 20,266 100,078 65,657 
Terminalling and storage *32,289 24,167 87,267 58,895 
 152,187 129,570 480,695 350,414 
Expenses:    
Operating expenses  *66,158 50,098 186,735 142,045 
Selling, general and administrative  *10,273 9,739 31,420 29,308 
Depreciation and amortization13,721 13,945 43,007 42,862 
Total costs and expenses242,339 203,352 741,857 564,629 
Other operating income (loss), net790 61 1,050 (610)
Gain on involuntary conversion of property, plant and equipment— 186 — 186 
Operating income (loss)(12,244)8,153 34,695 31,472 
Other income (expense):    
Interest expense, net(13,906)(14,110)(39,181)(40,372)
Other, net(2)— (4)(1)
Total other expense(13,908)(14,110)(39,185)(40,373)
Net loss before taxes(26,152)(5,957)(4,490)(8,901)
Income tax expense(1,891)(954)(5,469)(2,111)
Net loss(28,043)(6,911)(9,959)(11,012)
Less general partner's interest in net loss561 138 199 220 
Less loss allocable to unvested restricted units90 20 39 30 
Limited partners' interest in net loss$(27,392)$(6,753)$(9,721)$(10,762)
Net loss per unit attributable to limited partners - basic$(0.71)$(0.17)$(0.25)$(0.28)
Net loss per unit attributable to limited partners - diluted$(0.71)$(0.17)$(0.25)$(0.28)
Weighted average limited partner units - basic38,726,38838,687,87438,725,93338,689,434
Weighted average limited partner units - diluted38,726,38838,687,87438,725,93338,689,434



*Related Party Transactions Shown Below


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

*Related Party Transactions Included Above
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Revenues:*    
Terminalling and storage$16,065 $15,866 $49,685 $46,741 
Transportation7,111 5,564 20,862 14,463 
Product Sales61 68 477 253 
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services2,616 2,441 7,884 7,379 
Terminalling and storage10,202 7,259 30,062 18,863 
Expenses:
Operating expenses23,856 20,088 68,682 58,046 
Selling, general and administrative7,626 7,659 23,932 23,624 








MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Dollars in thousands)
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Net loss$(28,043)$(6,911)$(9,959)$(11,012)
Changes in fair values of commodity cash flow hedges — (5,999)— (5,999)
Commodity cash flow hedging (gains) reclassified to earnings(167)— (816)— 
Comprehensive loss$(28,210)$(12,910)$(10,775)$(17,011)




MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)
(Unaudited)
(Dollars in thousands)
 Partners’ Capital (Deficit)
 Common LimitedGeneral Partner AmountAccumulated Other Comprehensive Income (Loss) 
 UnitsAmountTotal
Balances - January 1, 202138,851,174 $(48,776)$1,905 $— $(46,871)
Net loss— (10,792)(220)— (11,012)
Issuance of restricted units42,168 — — — — 
Forfeiture of restricted units(83,436)— — — — 
General partner contribution— — — — — 
Cash distributions— (581)(12)— (593)
Unit-based compensation— 336 — — 336 
Purchase of treasury units(7,156)(17)— — (17)
Gain recognized in AOCI on commodity cash flow hedges— — — (5,999)(5,999)
Balances - September 30, 202138,802,750 $(59,830)$1,673 $(5,999)$(64,156)
Balances - January 1, 202238,802,750 $(50,741)$1,888 $816 $(48,037)
Net loss— (9,760)(199)— (9,959)
Issuance of restricted units48,000 — — — — 
Cash distributions— (583)(12)— (595)
Unit-based compensation— 125 — — 125 
Gain reclassified from AOCI into income on commodity cash flow hedges — — — (816)(816)
Excess purchase price over carrying value of acquired assets
— 65 — — 65 
Balances - September 30, 202238,850,750 $(60,894)$1,677 $— $(59,217)








MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 Nine Months Ended
September 30,
 20222021
Cash flows from operating activities:  
Net loss$(9,959)$(11,012)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization43,007 42,862 
Amortization of deferred debt issuance costs2,356 2,585 
Deferred income tax expense3,611 1,419 
(Gain) loss on sale of property, plant and equipment, net(1,050)610 
Gain on involuntary conversion of property, plant and equipment— (186)
Derivative (income) loss(901)1,825 
Net cash paid for commodity derivatives85 (2,982)
Non cash unit-based compensation125 336 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:  
Accounts and other receivables7,076 (22,924)
Inventories(73,518)(44,353)
Due from affiliates12,016 4,674 
Other current assets(4,824)(1,912)
Trade and other accounts payable6,053 21,092 
Product exchange payables(695)1,014 
Due to affiliates11,953 5,034 
Income taxes payable228 (155)
Other accrued liabilities(13,435)(10,536)
Change in other non-current assets and liabilities1,116 203 
Net cash used in operating activities(16,756)(12,406)
Cash flows from investing activities:  
Payments for property, plant and equipment(21,019)(11,449)
Payments for plant turnaround costs(4,262)(2,679)
Proceeds from involuntary conversion of property, plant and equipment— 274 
Proceeds from sale of property, plant and equipment2,209 225 
Net cash used in investing activities(23,072)(13,629)
Cash flows from financing activities:  
Payments of long-term debt(299,089)(211,790)
Payments under finance lease obligations(180)(2,648)
Proceeds from long-term debt341,000 243,500 
Purchase of treasury units— (17)
Payment of debt issuance costs(30)(592)
Excess purchase price over carrying value of acquired assets(1,285)— 
Cash distributions paid(595)(593)
Net cash provided by financing activities39,821 27,860 
Net increase (decrease) in cash(7)1,825 
Cash at beginning of period52 4,958 
Cash at end of period$45 $6,783 
Non-cash additions to property, plant and equipment$2,240 $749 



MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)

Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended September 30, 2022 and 2021
 Three Months Ended September 30,VariancePercent Change
 20222021
(In thousands, except BBL per day)
Revenues:  
Services$21,578 $20,628 $950 5 %
Products40,571 30,598 9,973 33 %
Total revenues62,149 51,226 10,923 21 %
Cost of products sold32,998 24,618 8,380 34 %
Operating expenses15,232 13,789 1,443 10 %
Selling, general and administrative expenses1,596 1,528 68 4 %
Depreciation and amortization6,747 7,049 (302)(4)%
 5,576 4,242 1,334 31 %
Other operating income, net— 11 (11)(100)%
Gain on involuntary conversion of property, plant and equipment— 186 (186)(100)%
Operating income$5,576 $4,439 $1,137 26 %
Shore-based throughput volumes (guaranteed minimum) (gallons)20,000 20,000 — — %
Smackover refinery throughput volumes (guaranteed minimum BBL per day)6,500 6,500 — — %

Comparative Results of Operations for the Nine Months Ended September 30, 2022 and 2021
 Nine Months Ended September 30,VariancePercent Change
 20222021
 (In thousands, except BBL per day)
Revenues:  
Services$64,724 $60,945 $3,779 6 %
Products110,218 75,639 34,579 46 %
Total revenues174,942 136,584 38,358 28 %
Cost of products sold89,150 60,318 28,832 48 %
Operating expenses44,069 39,246 4,823 12 %
Selling, general and administrative expenses4,961 4,495 466 10 %
Depreciation and amortization22,084 21,150 934 4 %
 14,678 11,375 3,303 29 %
Other operating income (loss), net(35)6 (41)(683)%
Gain on involuntary conversion of property, plant and equipment— 186 (186)(100)%
Operating income$14,643 $11,567 $3,076 27 %
Shore-based throughput volumes (guaranteed minimum) (gallons)60,000 60,000 — — %
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)6,500 6,500 — — %






Transportation Segment

Comparative Results of Operations for the Three Months Ended September 30, 2022 and 2021
 Three Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Revenues$63,514 $42,568 $20,946 49 %
Operating expenses46,499 33,053 13,446 41 %
Selling, general and administrative expenses1,962 1,920 42 2 %
Depreciation and amortization3,598 3,710 (112)(3)%
 11,455 3,885 7,570 195 %
Other operating income, net618 42 576 1,371 %
Operating income$12,073 $3,927 $8,146 207 %

Comparative Results of Operations for the Nine Months Ended September 30, 2022 and 2021
 Nine Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Revenues$176,313 $114,886 $61,427 53 %
Operating expenses130,229 94,042 36,187 38 %
Selling, general and administrative expenses5,920 5,578 342 6 %
Depreciation and amortization10,761 12,039 (1,278)(11)%
$29,403 $3,227 $26,176 811 %
Other operating income, net901 59 842 1,427 %
Operating income$30,304 $3,286 $27,018 822 %



Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended September 30, 2022 and 2021
 Three Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Revenues:  
Services$3,085 $2,950 $135 5 %
Products25,783 27,887 (2,104)(8)%
Total revenues28,868 30,837 (1,969)(6)%
Cost of products sold27,201 21,799 5,402 25 %
Operating expenses3,978 2,849 1,129 40 %
Selling, general and administrative expenses1,509 1,321 188 14 %
Depreciation and amortization2,786 2,594 192 7 %
 (6,606)2,274 (8,880)(391)%
Other operating income, net(70)8 (78)(975)%
Operating income$(6,676)$2,282 $(8,958)(393)%
Sulfur (long tons)95 145 (50)(34)%
Fertilizer (long tons)24 57 (33)(58)%
Total sulfur services volumes (long tons)119 202 (83)(41)%
    
Comparative Results of Operations for the Nine Months Ended September 30, 2022 and 2021    
 Nine Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Revenues:  
Services$9,253 $8,849 $404 5 %
Products135,691 95,109 40,582 43 %
Total revenues144,944 103,958 40,986 39 %
Cost of products sold105,640 69,619 36,021 52 %
Operating expenses11,233 7,662 3,571 47 %
Selling, general and administrative expenses4,550 3,777 773 20 %
Depreciation and amortization8,377 7,882 495 6 %
 15,144 15,018 126 1 %
Other operating income (loss), net(34)14 (48)(343)%
Operating income$15,110 $15,032 $78 1 %
Sulfur (long tons)327 364 (37)(10)%
Fertilizer (long tons)170 236 (66)(28)%
Total sulfur services volumes (long tons)497 600 (103)(17)%










Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended September 30, 2022 and 2021
 Three Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Products revenues$80,891 $91,764 $(10,873)(12)%
Cost of products sold97,322 87,551 9,771 11 %
Operating expenses1,210 1,088 122 11 %
Selling, general and administrative expenses968 954 14 1 %
Depreciation and amortization590 592 (2)— %
 (19,199)1,579 (20,778)(1,316)%
Other operating income, net242 — 242 
Operating income (loss)$(18,957)$1,579 $(20,536)(1,301)%
NGL sales volumes (Bbls)1,180 1,435 (255)(18)%

Comparative Results of Operations for the Nine Months Ended September 30, 2022 and 2021
 Nine Months Ended September 30,VariancePercent Change
 20222021
 (In thousands)
Products revenues$299,037 $257,081 $41,956 16 %
Cost of products sold303,376 234,239 69,137 30 %
Operating expenses3,397 3,144 253 8 %
Selling, general and administrative expenses3,287 3,858 (571)(15)%
Depreciation and amortization1,785 1,791 (6)— %
 (12,808)14,049 (26,857)(191)%
Other operating income (loss), net218 (689)907 132 %
Operating income (loss)$(12,590)$13,360 $(25,950)(194)%
NGL sales volumes (Bbls)3,930 4,839 (909)(19)%







Unallocated Selling, General and Administrative Expenses

Comparative Results of Operations for the Three and Nine Months Ended September 30, 2022 and 2021

 Three Months Ended September 30,VariancePercent ChangeNine Months Ended September 30,VariancePercent Change
 2022202120222021
 (In thousands)(In thousands)
Indirect selling, general and administrative expenses
$4,260 $4,074 $186 5 %$12,772 $11,773 $999 8 %


Non-GAAP Financial Measures

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and nine months ended September 30, 2022 and 2021, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(in thousands)(in thousands)
Net loss$(28,043)$(6,911)$(9,959)$(11,012)
Adjustments:
Interest expense13,906 14,110 39,181 40,372 
Income tax expense1,891 954 5,469 2,111 
Depreciation and amortization13,721 13,945 43,007 42,862 
EBITDA 1,475 22,098 77,698 74,333 
Adjustments:
(Gain) loss on disposition of property, plant and equipment(790)(61)(1,050)610 
Gain on involuntary conversion of property, plant and equipment— (186)— (186)
Unrealized mark-to-market on commodity derivatives— (412)— (207)
Lower of cost or market and other non-cash adjustments18,084 — 20,326 — 
Unit-based compensation46 48 125 336 
Adjusted EBITDA $18,815 $21,487 $97,099 $74,886 



Reconciliation of Net Cash provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(in thousands)(in thousands)
Net cash provided by operating activities$(45,207)$(18,491)$(16,756)$(12,406)
Interest expense 1
13,118 13,046 36,825 37,787 
Current income tax expense584 293 1,858 692 
Lower of cost or market and other non-cash adjustments18,084 — 20,326 — 
Commodity cash flow hedging gains reclassified to earnings167 — 901 — 
Net cash paid for closed commodity derivative positions included in AOCI— 950 (85)950 
Changes in operating assets and liabilities which (provided) used cash:
Accounts and other receivables, inventories, and other current assets(5,651)40,263 59,250 64,515 
Trade, accounts and other payables, and other current liabilities38,691 (14,584)(4,104)(16,449)
Other(971)10 (1,116)(203)
Adjusted EBITDA18,815 21,487 97,099 74,886 
Adjustments:
Interest expense(13,906)(14,110)(39,181)(40,372)
Income tax expense(1,891)(954)(5,469)(2,111)
Deferred income taxes1,307 661 3,611 1,419 
Amortization of deferred debt issuance costs788 1,064 2,356 2,585 
Payments for plant turnaround costs(2,662)(985)(4,262)(2,679)
Maintenance capital expenditures(5,994)(1,945)(14,548)(8,386)
Distributable Cash Flow(3,543)5,218 39,606 25,342 
Principal payments under finance lease obligations(61)(753)(180)(3,344)
Expansion capital expenditures(926)(671)(5,482)(2,648)
Adjusted Free Cash Flow$(4,530)$3,794 $33,944 $19,350 

1 Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by operating activities.