mmlp-20211020
0001176334False00011763342021-10-202021-10-20

UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d)
 
of the Securities Exchange Act of 1934
 
Date of report (date of earliest event reported): October 20, 2021
 
MARTIN MIDSTREAM PARTNERS L.P.
(Exact name of Registrant as specified in its charter)
Delaware 
000-50056
 
05-0527861
 (State of incorporation
or organization)
(Commission file number)(I.R.S. employer identification number)
4200 Stone Road 
Kilgore, Texas 75662
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (903) 983-6200
 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Units representing limited partnership interestsMMLPThe NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. o




Item 2.02 Results of Operations and Financial Condition.
 
          On October 20, 2021, Martin Midstream Partners L.P. (the "Partnership") issued a press release reporting its financial results for the quarter ended September 30, 2021.   A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and will be published on the Partnership's website at www.MMLP.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

Item 9.01 Financial Statements and Exhibits.
 
(d)      Exhibits
 
      In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 and Exhibit 99.2 are deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
Exhibit
Number		Description
99.1
99.2
104
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101).



 SIGNATURES
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
MARTIN MIDSTREAM PARTNERS L.P.
 
By: Martin Midstream GP LLC,
Its General Partner
 
Date: October 20, 2021 By: /s/ Sharon L. Taylor  
 Sharon L. Taylor
  
Vice President and
Chief Financial Officer 
 
 


EXHIBIT 99.1

MARTIN MIDSTREAM PARTNERS REPORTS THIRD QUARTER 2021 FINANCIAL RESULTS AND DECLARES QUARTERLY CASH DISTRIBUTION

•Third quarter 2021 financial performance beats internal projections despite impact from Hurricane Ida
•Reported net loss of $6.9 million and $11.0 million for the three and nine months ended September 30, 2021, respectively
•Reported adjusted EBITDA of $21.5 million and $74.9 million for the three and nine months ended September 30, 2021, respectively
•Generated distributable cash flow of $5.2 and $25.3 million for the three and nine months ended September 30, 2021, respectively
•Declares quarterly distribution of $0.005 or $0.02 per unit annually

KILGORE, Texas, October 20, 2021 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") today announced its financial results for the third quarter of 2021.

Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership stated, “The Partnership’s third quarter performance exceeded our expectations, and we now expect to meet the top end of the range of our 2021 financial guidance for adjusted EBITDA of $95 to $102 million.

“On August 29, 2021, Hurricane Ida made landfall in Louisiana as a Category 4 storm with sustained winds of 150 miles per hour. Despite this extremely dangerous event, I am happy to report there were no injuries to our employees, although some did suffer damage to homes and property. The Partnership sustained minimal damage to assets in and around Port Fourchon. Further, in the days and weeks following the storm we were able to provide alternative storage and terminalling services from our Galveston terminal as needed.

“Turning to our results, in the Terminalling and Storage segment, demand for lubricants and grease products remains strong and our distribution lanes have been able to fulfill customer requirements even as the supply chain has been disordered. Within the Sulfur Services segment, the pure sulfur business continues to improve along with increased refinery utilization. Further downstream fertilizer sales and margins are outperforming as commodity prices remain strong for corn and cotton. In Transportation, our marine equipment utilization continues to increase as fundamentals in the industry improve and demand for trucking services remains elevated resulting in improved economics for the business segment.

“Finally, as is typical, the Natural Gas Liquids segment substantially increased butane inventory volumes in the third quarter to meet our customers' requirements throughout the winter gasoline blending season. Since this inventory build is concurrent with our weakest cash flow quarter due to the seasonality of both the fertilizer and butane businesses, a temporary rise in leverage occurs. Accordingly, at September 30, 2021, leverage increased to 5.5 times from 5.3 times at June 30, 2021. However, this increase is transitory and leverage is expected to significantly decrease by year-end, driven by the Partnership’s reduced working capital needs and strong financial performance.”

THIRD QUARTER 2021 OPERATING RESULTS BY BUSINESS SEGMENT

TERMINALLING AND STORAGE (“T&S”)

T&S Operating Income for the three months ended September 30, 2021 and 2020 was $4.4 million and $7.0 million, respectively.

Adjusted segment EBITDA for T&S was $11.2 million and $14.2 million, for the three month periods ended September 30, 2021 and 2020, respectively, reflecting increased utilities expense coupled with expired capital


recovery fees at the Smackover Refinery, the disposition of our Mega Lubricants business in the 4th quarter of 2020, and increased utilities and repairs and maintenance expense at our Specialty Terminals.

TRANSPORTATION

Transportation Operating Income for the three months ended September 30, 2021 and 2020 was $3.9 million and $1.1 million, respectively.

Adjusted segment EBITDA for Transportation was $7.6 million and $5.5 million for the three months ended September 30, 2021 and 2020, respectively, reflecting higher rates counterbalanced by rising labor and operating costs along with increased land transportation load count, offset by lower marine day rates coupled with a reduction in marine equipment.

SULFUR SERVICES

Sulfur Services Operating Income for the three months ended September 30, 2021 and 2020 was $2.3 million and $5.6 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $4.9 million and $4.2 million for the three months ended September 30, 2021 and 2020, respectively, reflecting increased fertilizer volumes and margins offset by lower sulfur volumes during the third quarter of 2021.

NATURAL GAS LIQUIDS (“NGL”)

NGL Operating Income for the three months ended September 30, 2021 and 2020 was $1.6 million and $1.8 million, respectively.

Adjusted segment EBITDA for NGL was $1.8 million and $2.8 million for the three months ended September 30, 2021 and 2020, respectively, primarily reflecting a decrease in volumes as 2020 benefited from an increased seasonal demand, offset by higher NGL margins.

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

USGA expenses included in operating income for the three months ended September 30, 2021 and 2020 were $4.0 million and $4.5 million, respectively.

USGA expenses included in adjusted EBITDA for the three months ended September 30, 2021 and 2020 were $4.0 million and $4.2 million, respectively, primarily reflecting a reduction in overhead allocated from Martin Resource Management.

LIQUIDITY

At September 30, 2021, the Partnership had $208.5 million drawn on its $275 million revolving credit facility, an increase of $29 million from June 30, 2021. The Partnership’s leverage ratio, as calculated under the revolving credit facility, was 5.5 times and 5.3 times on September 30, 2021 and June 30, 2021, respectively. The Partnership was in compliance with all debt covenants as of September 30, 2021.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended September 30, 2021. The distribution is payable on November 12, 2021 to common unitholders of record as of the close of business on November 5, 2021. The ex-dividend date for the cash distribution is November 4, 2021.



QUALIFIED NOTICE TO NOMINEES

This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

COVID-19 RESPONSE

The Partnership continues to evaluate protocols in response to the COVID-19 pandemic, including the impact of variants of COVID-19, such as the Delta variant. Where possible, employee work from home initiatives remain and travel restrictions have been lifted. Employees are encouraged to continue to exercise safety measures to protect the welfare of each other and the communities they serve.

RESULTS OF OPERATIONS

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. The Partnership had a net loss for the three months ended September 30, 2020 of $10.8 million, a loss of $0.27 per limited partner unit. Adjusted EBITDA for the three months ended September 30, 2021 was $21.5 million compared to the three months ended September 30, 2020 of $22.5 million. Distributable cash flow for the three months ended September 30, 2021 was $5.2 million compared to the three months ended September 30, 2020 of $8.1 million.

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. The Partnership had a net loss for the nine months ended September 30, 2020 of $4.2 million, a loss of $0.11 per limited partner unit. Adjusted EBITDA for the nine months ended September 30, 2021 was $74.9 million compared to the nine months ended September 30, 2020 of $77.5 million. Distributable cash flow for the nine months ended September 30, 2021 was $25.3 million compared to the nine months ended September 30, 2020 of $38.9 million.

Revenues for the three months ended September 30, 2021 were $211.3 million compared to the three months ended September 30, 2020 of $152.5 million. Revenues for the nine months ended September 30, 2021 were $596.5 million compared to the nine months ended September 30, 2020 of $492.1 million.

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 2021 to the Partnership's adjusted EBITDA for the third quarter 2020.

Investors' Conference Call

Date: Thursday, October 21, 2021
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (833) 900-2251
Conference ID: 8571037



Replay Dial In # (800) 585-8367 – Conference ID: 8571037

A webcast of the conference call 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

Martin Midstream Partners L.P., headquartered in Kilgore, Texas, 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: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products; (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 guidance or to financial or operational estimates or projections 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, 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 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, (3) distributable cash flow and (4) adjusted free 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. 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. 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. The Partnership defines Distributable Cash Flow as Adjusted EBITDA less cash paid for interest, cash paid for income taxes, 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 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.

Adjusted Free Cash Flow. Adjusted free cash flow is defined 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 our 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.

EBITDA, adjusted EBITDA, distributable cash flow, and adjusted free 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.

Contact:

Sharon Taylor - Vice President & Chief Financial Officer
(877) 256-6644
[email protected]

MMLP-F



MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
 September 30, 2021December 31, 2020
(Unaudited)(Audited)
Assets  
Cash$6,783 $4,958 
Accounts and other receivables, less allowance for doubtful accounts of $272 and $261, respectively
75,676 52,748 
Inventories 98,139 54,122 
Due from affiliates10,133 14,807 
Other current assets10,441 8,991 
Total current assets201,172 135,626 
Property, plant and equipment, at cost894,767 889,108 
Accumulated depreciation(543,309)(509,237)
Property, plant and equipment, net351,458 379,871 
Goodwill16,823 16,823 
Right-of-use assets 21,267 22,260 
Deferred income taxes, net 20,834 22,253 
Other assets, net 2,684 2,805 
Total assets$614,238 $579,638 
Liabilities and Partners’ Capital (Deficit)  
Current installments of long-term debt and finance lease obligations $240 $31,497 
Trade and other accounts payable73,273 51,900 
Product exchange payables1,387 373 
Due to affiliates5,469 435 
Income taxes payable401 556 
Fair value of derivatives 5,049 207 
Other accrued liabilities21,696 34,407 
Total current liabilities107,515 119,375 
Long-term debt, net 547,090 484,597 
Finance lease obligations108 289 
Operating lease liabilities 14,960 15,181 
Other long-term obligations8,721 7,067 
Total liabilities678,394 626,509 
Commitments and contingencies
Partners’ capital (deficit) (58,157)(46,871)
Accumulated other comprehensive loss(5,999)— 
Total partners’ capital (deficit)(64,156)(46,871)
Total liabilities and partners' capital (deficit)$614,238 $579,638 





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,
2021202020212020
Revenues:  
Terminalling and storage  *$18,980 $20,706 $56,060 $61,088 
Transportation  *39,079 31,938 103,820 102,364 
Sulfur services2,950 2,915 8,849 8,744 
Product sales: *
Natural gas liquids91,764 52,350 257,081 164,860 
Sulfur services27,887 18,965 95,109 74,879 
Terminalling and storage30,598 25,659 75,606 80,119 
 150,249 96,974 427,796 319,858 
Total revenues211,258 152,533 596,525 492,054 
Costs and expenses:    
Cost of products sold: (excluding depreciation and amortization)
    
Natural gas liquids *85,137 44,908 225,862 139,036 
Sulfur services *20,266 13,313 65,657 46,167 
Terminalling and storage *24,167 19,124 58,895 64,242 
 129,570 77,345 350,414 249,445 
Expenses:    
Operating expenses  *50,098 43,105 142,045 138,589 
Selling, general and administrative  *9,739 10,339 29,308 30,659 
Depreciation and amortization13,945 15,276 42,862 45,858 
Total costs and expenses203,352 146,065 564,629 464,551 
Other operating income (loss), net61 23 (610)2,548 
Gain on involuntary conversion of property, plant and equipment186 4,522 186 4,522 
Operating income8,153 11,013 31,472 34,573 
Other income (expense):    
Interest expense, net(14,110)(12,943)(40,372)(32,245)
Gain on retirement of senior unsecured notes— — — 3,484 
Loss on exchange of senior unsecured notes— (8,516)— (8,516)
Other, net— — (1)7 
Total other expense(14,110)(21,459)(40,373)(37,270)
Net loss before taxes(5,957)(10,446)(8,901)(2,697)
Income tax expense(954)(373)(2,111)(1,510)
Net loss(6,911)(10,819)(11,012)(4,207)
Less general partner's interest in net loss138 216 220 84 
Less loss allocable to unvested restricted units20 53 30 8 
Limited partners' interest in net loss$(6,753)$(10,550)$(10,762)$(4,115)
Net loss per unit attributable to limited partners - basic$(0.17)$(0.27)$(0.28)$(0.11)
Net loss per unit attributable to limited partners - diluted$(0.17)$(0.27)$(0.28)$(0.11)
Weighted average limited partner units - basic38,687,87438,661,85238,689,43438,654,891
Weighted average limited partner units - diluted38,687,87438,661,85238,689,43438,654,891



*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,
2021202020212020
Revenues:*    
Terminalling and storage$15,866 $15,902 $46,741 $47,718 
Transportation5,564 5,514 14,463 16,801 
Product Sales68 69 253 199 
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services2,441 2,512 7,379 7,833 
Terminalling and storage7,259 4,303 18,863 14,329 
Expenses:
Operating expenses20,088 18,915 58,046 60,126 
Selling, general and administrative7,659 8,356 23,624 24,723 








MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Dollars in thousands)
Three Months EndedNine Months Ended
September 30,September 30,
2021202020212020
Net loss$(6,911)$(10,819)$(11,012)$(4,207)
Changes in fair values of commodity cash flow hedges(5,999)— (5,999)— 
Comprehensive loss$(12,910)$(10,819)$(17,011)$(4,207)




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, 202038,863,389 $(38,342)$2,146 $— $(36,196)
Net loss— (4,123)(84)— (4,207)
Issuance of restricted units81,000 — — — — 
Forfeiture of restricted units(84,134)— — — — 
Cash distributions— (5,019)(102)— (5,121)
Unit-based compensation— 1,070 — — 1,070 
Purchase of treasury units(7,748)(9)— — (9)
Balances - September 30, 202038,852,507 $(46,423)$1,960 $— $(44,463)
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)— — — — 
Cash distributions— (581)(12)— (593)
Unit-based compensation— 336 — — 336 
Changes in fair values of commodity cash flow hedges— — — (5,999)(5,999)
Purchase of treasury units(7,156)(17)— — (17)
Balances - September 30, 202138,802,750 $(59,830)$1,673 $(5,999)$(64,156)








MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 Nine Months Ended
September 30,
 20212020
Cash flows from operating activities:  
Net loss$(11,012)$(4,207)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:  
Depreciation and amortization42,862 45,858 
Amortization of deferred debt issuance costs2,585 2,674 
Amortization of premium on notes payable— (191)
Deferred income tax expense1,419 1,202 
Loss on sale of property, plant and equipment, net610 153 
Gain on involuntary conversion of property, plant and equipment(186)(4,522)
Non-cash impact related to exchange of senior unsecured notes— (749)
Gain on retirement of senior unsecured notes— (3,484)
Derivative (income) loss1,825 (815)
Net cash received (paid) for commodity derivatives(2,982)539 
Non-cash unit-based compensation336 1,070 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:  
Accounts and other receivables(22,924)30,012 
Product exchange receivables— (212)
Inventories(44,353)(15,184)
Due from affiliates4,674 (1,103)
Other current assets(1,912)(6,130)
Trade and other accounts payable21,092 (17,117)
Product exchange payables1,014 (1,278)
Due to affiliates5,034 (1,003)
Income taxes payable(155)(137)
Other accrued liabilities(10,536)(5,534)
Change in other non-current assets and liabilities203 (692)
Net cash provided by (used in) operating activities(12,406)19,150 
Cash flows from investing activities:  
Payments for property, plant and equipment(11,449)(23,705)
Payments for plant turnaround costs(2,679)(637)
Proceeds from involuntary conversion of property, plant and equipment274 7,203 
Proceeds from sale of property, plant and equipment225 4,392 
Net cash used in investing activities(13,629)(12,747)
Cash flows from financing activities:  
Payments of long-term debt(211,790)(253,637)
Payments under finance lease obligations(2,648)(4,021)
Proceeds from long-term debt243,500 259,019 
Purchase of treasury units(17)(9)
Payment of debt issuance costs(592)(3,628)
Cash distributions paid(593)(5,121)
Net cash provided by (used in) financing activities27,860 (7,397)
Net increase (decrease) in cash1,825 (994)
Cash at beginning of period4,958 2,856 
Cash at end of period$6,783 $1,862 
Non-cash additions to property, plant and equipment$749 $1,432 



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, 2021 and 2020
 Three Months Ended September 30,VariancePercent Change
 20212020
(In thousands, except BBL per day)
Revenues:  
Services$20,628 $22,512 $(1,884)(8)%
Products30,598 25,676 4,922 19 %
Total revenues51,226 48,188 3,038 6 %
Cost of products sold24,618 20,381 4,237 21 %
Operating expenses13,789 12,064 1,725 14 %
Selling, general and administrative expenses1,528 1,537 (9)(1)%
Depreciation and amortization7,049 7,294 (245)(3)%
 4,242 6,912 (2,670)(39)%
Other operating income, net11 1 10 1,000 %
Gain on involuntary conversion of property, plant and equipment186 62 124 200 %
Operating income$4,439 $6,975 $(2,536)(36)%
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, 2021 and 2020
 Nine Months Ended September 30,VariancePercent Change
 20212020
 (In thousands, except BBL per day)
Revenues:  
Services$60,945 $66,115 $(5,170)(8)%
Products75,639 80,183 (4,544)(6)%
Total revenues136,584 146,298 (9,714)(7)%
Cost of products sold60,318 68,066 (7,748)(11)%
Operating expenses39,246 37,269 1,977 5 %
Selling, general and administrative expenses4,495 4,594 (99)(2)%
Depreciation and amortization21,150 22,022 (872)(4)%
 11,375 14,347 (2,972)(21)%
Other operating income (loss), net6 (3,053)3,059 100 %
Gain on involuntary conversion of property, plant and equipment186 62 124 200 %
Operating income$11,567 $11,356 $211 2 %
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, 2021 and 2020
 Three Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Revenues$42,568 $35,712 $6,856 19 %
Operating expenses33,053 28,144 4,909 17 %
Selling, general and administrative expenses1,920 2,050 (130)(6)%
Depreciation and amortization3,710 4,412 (702)(16)%
 3,885 1,106 2,779 251 %
Other operating income, net42 21 21 100 %
Operating income$3,927 $1,127 $2,800 248 %

Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020
 Nine Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Revenues$114,886 $116,145 $(1,259)(1)%
Operating expenses94,042 91,637 2,405 3 %
Selling, general and administrative expenses5,578 6,243 (665)(11)%
Depreciation and amortization12,039 13,020 (981)(8)%
$3,227 $5,245 $(2,018)(38)%
Other operating income (loss), net59 (1,174)1,233 105 %
Operating income$3,286 $4,071 $(785)(19)%





Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020
 Three Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Revenues:  
Services$2,950 $2,915 $35 1 %
Products27,887 18,965 8,922 47 %
Total revenues30,837 21,880 8,957 41 %
Cost of products sold21,799 14,141 7,658 54 %
Operating expenses2,849 2,501 348 14 %
Selling, general and administrative expenses1,321 1,166 155 13 %
Depreciation and amortization2,594 2,953 (359)(12)%
 2,274 1,119 1,155 103 %
Other operating income, net8 1 7 700 %
Operating income$2,282 $1,120 $1,162 104 %
Sulfur (long tons)145 154 (9)(6)%
Fertilizer (long tons)57 44 13 30 %
Total sulfur services volumes (long tons)202 198 4 2 %
    
Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020    
 Nine Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Revenues:  
Services$8,849 $8,744 $105 1 %
Products95,109 74,892 20,217 27 %
Total revenues103,958 83,636 20,322 24 %
Cost of products sold69,619 49,546 20,073 41 %
Operating expenses7,662 8,553 (891)(10)%
Selling, general and administrative expenses3,777 3,535 242 7 %
Depreciation and amortization7,882 8,978 (1,096)(12)%
 15,018 13,024 1,994 15 %
Other operating income, net14 6,777 (6,763)(100)%
Gain on involuntary conversion of property, plant and equipment— 4,460 (4,460)(100)%
Operating income$15,032 $24,261 $(9,229)(38)%
Sulfur (long tons)364 503 (139)(28)%
Fertilizer (long tons)236 209 27 13 %
Total sulfur services volumes (long tons)600 712 (112)(16)%



Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020
 Three Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Products revenues$91,764 $52,350 $39,414 75 %
Cost of products sold87,551 47,723 39,828 83 %
Operating expenses1,088 1,039 49 5 %
Selling, general and administrative expenses954 1,117 (163)(15)%
Depreciation and amortization592 617 (25)(4)%
Operating income$1,579 $1,854 $(275)(15)%
NGL sales volumes (Bbls)1,435 1,723 (288)(17)%

Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020
 Nine Months Ended September 30,VariancePercent Change
 20212020
 (In thousands)
Products revenues$257,081 $164,865 $92,216 56 %
Cost of products sold234,239 148,562 85,677 58 %
Operating expenses3,144 3,128 16 1 %
Selling, general and administrative expenses3,858 3,194 664 21 %
Depreciation and amortization1,791 1,838 (47)(3)%
 14,049 8,143 5,906 73 %
Other operating loss, net(689)(2)(687)(34,350)%
Operating income$13,360 $8,141 $5,219 64 %
NGL sales volumes (Bbls)4,839 5,892 (1,053)(18)%







Unallocated Selling, General and Administrative Expenses

Comparative Results of Operations for the Three and Nine Months Ended September 30, 2021 and 2020

 Three Months Ended September 30,VariancePercent ChangeNine Months Ended September 30,VariancePercent Change
 2021202020212020
 (In thousands)(In thousands)
Unallocated selling, general and administrative expenses$4,074 $4,523 $(449)(10)%$11,773 $13,256 $(1,483)(11)%


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 and nine months ended September 30, 2021 and 2020.

Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow
Three Months EndedNine Months Ended
September 30,September 30,
 2021202020212020
(in thousands)(in thousands)
Net loss$(6,911)$(10,819)$(11,012)$(4,207)
Adjustments:
Interest expense, net14,110 12,943 40,372 32,245 
Income tax expense954 373 2,111 1,510 
Depreciation and amortization13,945 15,276 42,862 45,858 
EBITDA 22,098 17,773 74,333 75,406 
Adjustments:
(Gain) loss on sale of property, plant and equipment, net(61)(22)610 153 
Gain on involuntary conversion of property, plant and equipment(186)(4,522)(186)(4,522)
Unrealized mark-to-market on commodity derivatives(412)393 (207)(276)
Non-cash insurance related accruals— — — 250 
Lower of cost or market adjustments— 35 — 370 
Loss on exchange of senior unsecured notes— 8,516 — 8,516 
Gain on repurchase of senior unsecured notes— — — (3,484)
Non-cash unit-based compensation48 361 336 1,070 
Adjusted EBITDA21,487 22,534 74,886 77,483 
Adjustments:
Interest expense, net(14,110)(12,943)(40,372)(32,245)
Income tax expense(954)(373)(2,111)(1,510)
Amortization of debt premium— (38)— (191)
Amortization of deferred debt issuance costs1,064 1,683 2,585 2,674 
Deferred income tax expense661 184 1,419 1,202 
Payments for plant turnaround costs(985)(406)(2,679)(637)
Maintenance capital expenditures(1,945)(2,576)(8,386)(7,882)
Distributable Cash Flow$5,218 $8,065 $25,342 $38,894 
Adjustments:
Expansion capital expenditures$(1,367)$(1,951)$(3,344)$(9,882)
Principal payments under finance lease obligations(57)(799)(2,648)(4,021)
Adjusted Free Cash Flow$3,794 $5,315 $19,350 $24,991 


Martin Midstream Partners L.P. October 20, 2021 Third Quarter 2021 Earnings Summary Exhibit 99.2

 
Page 2 Disclaimers Use of Non-GAAP Financial Measures Forward Looking Statements This presentation includes certain non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States (GAAP). A reconciliation of non-GAAP financial measures included in this presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP is set forth in the Appendix of this presentation or on our web site at www.MMLP.com. MMLP’s management believes that these non-GAAP financial measures may provide useful information to investors regarding MMLP’s financial condition and results of operations as they provide another measure of the profitability and ability to service its debt and are considered important measures by financial analysts covering MMLP and its peers. 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. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable 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. 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 or operational 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, on an industry-specific basis, and on Martin Midstream Partners' 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 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.

 
Page 3 MMLP 3Q 2021 Adjusted EBITDA Comparison & Reconciliation Note: numbers may not add due to rounding *Pre-Unallocated SG&A (in millions) Terminalling & Storage Sulfur Services Transportation Natural Gas Liquids SG&A Interest Expense 3Q21 Actual Net income (loss) $4.4 $2.3 $3.9 $1.6 $(5.0) $(14.1) $(6.9) Interest expense add back -- -- -- -- -- $14.1 $14.1 Income tax expense -- -- -- -- $1.0 -- $1.0 Operating Income (loss) $4.4 $2.3 $3.9 $1.6 $(4.0) $0.0 $8.2 Depreciation and amortization $7.0 $2.6 $3.7 $0.6 -- -- $13.9 Gain on involuntary conversion of PP&E $(0.2) -- -- -- -- -- $(0.2) Non-cash mark-to-market on derivatives -- -- -- $(0.4) -- -- $(0.4) Adjusted EBITDA $11.2 $4.9 $7.6 $1.8 $(4.0) $0.0 $21.5 Adjusted EBITDA* $26.7 $25.5 Unallocated SG&A $(4.2) $(4.0) Total Adjusted EBITDA $22.5 $21.5 Terminalling & Storage 3Q20 Actual 3Q21 Actual Smackover Refinery $4.7 $3.4 Lubricants & Specialty Products $5.0 $4.9 Specialty Terminals $3.7 $2.8 Shore-Based Terminals $0.7 $0.1 Total T&S $14.2 $11.2 Natural Gas Liquids 3Q20 Actual 3Q21 Actual Butane $2.6 $1.1 Natural Gasoline $(0.1) $0.3 Propane $0.4 $0.3 Total NGLs $2.8 $1.8 Sulfur Services 3Q20 Actual 3Q21 Actual Fertilizer $0.6 $2.2 Sulfur Prilling $2.0 $1.6 Molten Sulfur $1.5 $1.1 Total Sulfur Services $4.2 $4.9 Transportation 3Q20 Actual 3Q21 Actual Land $4.1 $7.1 Marine $1.5 $0.5 Total Transportation $5.5 $7.6

 
Page 4 MMLP YTD 3Q 2021 Adjusted EBITDA Comparison & Reconciliation Note: numbers may not add due to rounding *Pre-Unallocated SG&A (in millions) Terminalling & Storage Sulfur Services Transportation Natural Gas Liquids SG&A Interest Expense YTD 3Q21 Actual Net income (loss) $11.6 $15.0 $3.3 $13.4 $(13.9) $(40.4) $(11.0) Interest expense add back -- -- -- -- -- $40.4 $40.4 Income tax expense -- -- -- -- $2.1 -- $2.1 Operating Income (loss) $11.6 $15.0 $3.3 $13.4 $(11.8) $0.0 $31.5 Depreciation and amortization $21.1 $7.9 $12.0 $1.8 -- -- $42.8 Loss on disposition or sale of PP&E -- -- -- $0.7 -- -- $0.7 Gain on involuntary conversion of PP&E $(0.2) -- -- -- -- -- $(0.2) Non-cash mark-to-market on derivatives -- -- -- $(0.2) -- -- $(0.2) Non-cash unit-based compensation expense -- -- -- -- $0.3 -- $0.3 Adjusted EBITDA $32.5 $22.9 $15.3 $15.6 $(11.4) $0.0 $74.9 Adjusted EBITDA* $89.7 $86.3 Unallocated SG&A $(12.2) $(11.4) Total Adjusted EBITDA $77.5 $74.9 Terminalling & Storage YTD 3Q20 Actual YTD 3Q21 Actual Smackover Refinery $13.9 $11.3 Lubricants & Specialty Products $11.3 $12.3 Specialty Terminals $9.5 $8.7 Shore-Based Terminals $1.7 $0.2 Total T&S $36.4 $32.5 Natural Gas Liquids YTD 3Q20 Actual YTD 3Q21 Actual Butane $6.5 $12.7 Natural Gasoline $2.2 $0.6 Propane $1.4 $2.4 Total NGLs $10.1 $15.6 Sulfur Services YTD 3Q20 Actual YTD 3Q21 Actual Fertilizer $12.4 $16.2 Sulfur Prilling $8.3 $5.3 Molten Sulfur $4.3 $1.4 Total Sulfur Services $25.0 $22.9 Transportation YTD 3Q20 Actual YTD 3Q21 Actual Land $12.1 $16.3 Marine $6.1 $(1.0) Total Transportation $18.3 $15.3

 
Page 5 MMLP 3Q & YTD 3Q 2020 Adjusted EBITDA Reconciliation Note: numbers may not add due to rounding (in millions) Terminalling & Storage Sulfur Services Transportation Natural Gas Liquids SG&A Interest Expense 3Q20 Actual Net income (loss) $7.0 $5.6 $1.1 $1.8 $(13.4) $(12.9) $(10.8) Interest expense add back -- -- -- -- -- $12.9 $12.9 Loss on exchange of senior unsecured notes -- -- -- -- $8.5 $8.5 Income tax expense -- -- -- -- $0.4 -- $0.4 Operating Income (loss) $7.0 $5.6 $1.1 $1.8 $(4.5) $0.0 $11.0 Depreciation and amortization $7.3 $3.0 $4.4 $0.6 -- -- $15.3 Gain on disposition or sale of PP&E $(0.1) $(4.4) -- -- -- -- $(4.5) Non-cash mark-to-market on derivatives -- -- -- $0.4 -- -- $0.4 Non-cash unit-based compensation expense -- -- -- -- $0.3 -- $0.3 Adjusted EBITDA $14.2 $4.2 $5.5 $2.8 $(4.2) $0.0 $22.5 (in millions) Terminalling & Storage Sulfur Services Transportation Natural Gas Liquids SG&A Interest Expense YTD 3Q20 Actual Net income (loss) $11.3 $24.3 $4.1 $8.1 $(19.8) $(32.2) $(4.2) Interest expense add back -- -- -- -- -- $32.2 $32.2 Gain on repurchase of senior unsecured notes -- -- -- -- $(3.5) -- $(3.5) Loss on exchange of senior unsecured notes -- -- -- -- $8.5 -- $8.5 Income tax expense -- -- -- -- $1.5 -- $1.5 Operating Income (loss) $11.3 $24.3 $4.1 $8.1 $(13.3) $0.0 $34.5 Depreciation and amortization $22.0 $9.0 $13.0 $1.9 -- -- $45.9 (Gain) loss on disposition or sale of PP&E $3.1 $(4.1) $1.2 -- -- -- $0.2 Gain on involuntary conversion of PP&E $(0.1) $(4.5) -- -- -- -- $(4.6) Non-cash insurance related accruals -- $0.3 -- -- -- -- $0.3 Lower of cost or market adjustments -- -- -- $0.4 -- -- $0.4 Non-cash mark-to-market on derivatives -- -- -- $(0.3) -- -- $(0.3) Non-cash unit-based compensation expense -- -- -- -- $1.1 -- $1.1 Adjusted EBITDA $36.4 $25.0 $18.3 $10.1 $(12.2) $0.0 $77.5

 
Page 6 2021E Guidance Note: numbers may not add due to rounding Range of Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow (in millions) 3Q21 Actuals YTD 3Q21 Actuals Guidance Year Ending December 31, 2021 (Unaudited) Adjusted EBITDA $21.5 $74.9 $95 - 102 Less: Interest expense $14.1 $40.4 $49 Income tax expense, net of deferred $0.3 $0.7 - Amortization of deferred debt issuance costs $(1.1) $(2.6) - Maintenance capital expenditures and plant turnaround costs $2.9 $11.1 $17 - 19 Distributable cash flow $5.2 $25.3 $29 - 34 Less: Expansion capital expenditures $1.4 $3.3 $4 - 5 Principal payments under finance lease obligations $0.1 $2.7 $3 Adjusted free cash flow $3.8 $19.4 $22 - 26