• Exceeded Fourth Quarter and Full Year 2019 Net Income and Adjusted EBITDA Revised Guidance
  • 2019 Net Income from Continuing Operations of $4.5 Million Compared to 2018 Net Loss from Continuing Operations of $7.8 Million
  • Reduction of Quarterly Cash Distribution to Re-allocate Capital and Provide Financial Flexibility
  • 2020 Net Income and Adjusted EBITDA Guidance of $0.2 Million and $117.1 Million, Respectively

KILGORE, Texas, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership”) announced today its financial results for the three months and year ended December 31, 2019.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "In the fourth quarter, the Partnership generated strong cash flow resulting in net income of $6.6 million and adjusted EBITDA of $35.5 million compared to our revised guidance of $3.2 million and $32.1 million, respectively.  Distributable cash flow was $20.7 million, resulting in a 2.11 times distribution coverage ratio for the quarter.  For the full year 2019, Adjusted EBITDA from continuing operations was $108.3 million, exceeding revised guidance by $3.4 million.  Total distributable cash flow was $51.5 million resulting in a distribution coverage ratio of 1.05 times for full year 2019.

"Despite the positive quarter and the strategic actions taken over the last eighteen months to strengthen our balance sheet and reduce leverage, we believe more is required.  While our efforts have resulted in an adjusted leverage ratio of 4.69 times and distribution coverage ratio of 1.05 times at year-end 2019, we are still above our stated goals for both ratios.  In order to be competitive in today’s capital markets, adjusted leverage of below 4.00 times and a distribution coverage ratio of above 1.30 times is required.  To provide further financial flexibility, we are resetting our annual distribution to $0.25 per unit.  The Partnership will retain approximately $28.9 million annually, due to the distribution reduction, which along with estimated 2020 positive cash flow will be used for further debt reduction and future high return investment opportunities at our Beaumont and Corpus Christi facilities.

"Expanding on the fourth quarter of 2019, the majority of the excess over revised guidance was in the Sulfur Services segment due to stronger margins within the fertilizer business.  In addition, I’m happy to report that after eight months of downtime our Neches terminal is fully operational, as replacement of the ship-loader was completed ahead of schedule enabling us to service our customers under their current contract terms. In the Natural Gas Liquids segment, the butane optimization business returned to historical seasonal price differentials, rebounding from the anomaly of last winter’s refinery blending season.  Within the Transportation segment, marine services continued to profit from increasing day rates coupled with high utilization, while land transportation performed slightly under revised guidance.

"Moving to 2020 guidance, we estimate net income of $0.2 million and adjusted EBITDA of $117.1 million, with the majority of cash flow generated by fee based services.  Our maintenance capital expenditures are forecasted to be $17.4 million, resulting in distributable cash flow of $49.6 million."

Net income from continuing operations for the fourth quarter 2019 was $6.6 million compared to the fourth quarter of 2018 of $1.6 million.  Net income from continuing operations for the year ended December 31, 2019 was $4.5 million compared to a net loss of $7.8 million for the year ended December 31, 2018.

Adjusted EBITDA from continuing operations for the fourth quarter 2019 was $35.5 million compared to adjusted EBITDA from continuing operations for the fourth quarter 2018 of $25.5 million.  Adjusted EBITDA from continuing operations for the year ended December 31, 2019 was $108.3 million compared to adjusted EBITDA for the year ended December 31, 2018 of $107.2 million.

Distributable cash flow from continuing operations for the fourth quarter of 2019 was $20.7 million compared to distributable cash flow from continuing operations for the fourth quarter of 2018 of $8.3 million.  Distributable cash flow from continuing operations for the year ended December 31, 2019 was $41.8 million compared to distributable cash flow from continuing operations for the year ended December 31, 2018 of $36.1 million.

Net income from discontinued operations for the three months ended December 31, 2019 was $0.0 million compared to net income from discontinued operations for the three months ended December 31, 2018 of $1.0 million.  The Partnership had a net loss from discontinued operations for the year ended December 31, 2019 of $179.5 million, which includes a non-cash charge related to the disposition of its natural gas storage assets of $178.8 million.  Net income from discontinued operations was $63.5 million for the year ended December 31, 2018, which includes a non-cash gain related to the disposition of its West Texas LPG Pipeline Limited Partnership interests of $48.6 million.

Adjusted EBITDA from discontinued operations for the fourth quarter of 2019 was $0.0 million compared to adjusted EBITDA from discontinued operations for the fourth quarter of 2018 of $6.5 million.  Adjusted EBITDA from discontinued operations for the year ended December 31, 2019 was $10.7 million compared to adjusted EBITDA from discontinued operations for the year ended December 31, 2018 of $34.7 million.

Distributable cash flow from discontinued operations for the fourth quarter of 2019 was $0.0 million compared to distributable cash flow from discontinued operations for the fourth quarter of 2018 of $6.0 million.  Distributable cash flow from discontinued operations for the year ended December 31, 2019 was $9.8 million compared to distributable cash flow from discontinued operations for the year ended December 31, 2018 of $32.7 million.

Revenues for the fourth quarter of 2019 were $241.9 million compared to $267.2 million for the fourth quarter of 2018.  Revenues for the year ended December 31, 2019 were $847.1 million compared to $1,020.1 million for the year ended December 31, 2018.

As discussed above, the Partnership announced it has declared a quarterly cash distribution of $0.0625 per unit, or $0.25 per unit on an annualized basis, for the quarter ended December 31, 2019.  The distribution is payable on February 14, 2020 to common unitholders of record as of the close of business on February 7, 2020.  The ex-dividend date for the cash distribution is February 6, 2020.

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

Included with this press release are the Partnership's consolidated financial statements as of and for the year ended December 31, 2019 and certain prior periods.  These financial statements should be read in conjunction with the information contained in the Partnership's Annual Report on Form 10-K, to be filed with the SEC on February 14, 2020.

An earnings summary accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/a822e5d3-d871-4794-b55d-b5d683ff00fb

2020 Guidance

The Partnership will discuss 2020 guidance during the investors’ conference call scheduled for Wednesday, January 29, 2020 at 8:00 a.m.  Details of the conference call are below.  A 2020 guidance presentation accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/e56b303f-5381-4f1c-9bc6-299a834b86ff

Investors' Conference Call

An investors conference call to review the fourth quarter results will be held on Wednesday, January 29, 2020 at 8:00 a.m. Central Time. The live conference call will be available by calling (877) 878-2695.  For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 9235509. An archive of the replay will be on Martin Midstream Partners’ website at www.MMLP.com.

About Martin Midstream Partners

Martin Midstream Partners L.P. 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.

Forward-Looking Statements

Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Partnership's control, which could cause actual results to differ materially from such statements.  While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors.  A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission.  The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow.  The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA from Discontinued Operations.  Certain items excluded from EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations 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, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations 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 and Distributable Cash Flow from Discontinued Operations.  Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders.  Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates.  Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

EBITDA, adjusted EBITDA from continuing operations, adjusted EBITDA from discontinued operations, distributable cash flow, and distributable cash flow from discontinued operations, should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Additional information concerning the Partnership is available on the Partnership's website at www.MMLP.com or by contacting:

Sharon Taylor - Head of Investor Relations
(877) 256-6644

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
  
 December 31,
 2019 2018
Assets   
Cash$2,856  $300 
Trade and accrued accounts receivable, less allowance for doubtful accounts of $532 and $576, respectively87,254  83,488 
Product exchange receivables  166 
Inventories62,540  84,265 
Due from affiliates17,829  18,845 
Fair value of derivatives  4 
Other current assets5,833  5,889 
Assets held for sale5,052  5,652 
Current assets - Natural Gas Storage Assets  9,428 
Total current assets181,364  208,037 
    
Property, plant and equipment, at cost884,728  886,435 
Accumulated depreciation(467,531) (438,602)
Property, plant and equipment, net417,197  447,833 
    
Goodwill17,705  17,785 
Right-of-use assets23,901   
Deferred income taxes, net23,422   
Intangibles and other assets, net3,567  4,584 
Non current assets - Natural Gas Storage Assets  395,389 
 $667,156  $1,073,628 
Liabilities and Partners’ Capital   
Current portion of finance lease obligations$6,758  $5,409 
Trade and other accounts payable64,802  64,041 
Product exchange payables4,322  12,103 
Due to affiliates1,470  2,133 
Income taxes payable472  445 
Fair value of derivatives667   
Other accrued liabilities28,789  24,380 
Current liabilities - Natural Gas Storage Assets  3,240 
Total current liabilities107,280  111,751 
    
Long-term debt, net569,788  656,459 
Finance lease obligations717  6,272 
Operating lease liabilities16,656   
Other long-term obligations8,911  10,045 
Non current liabilities - Natural Gas Storage Assets  669 
Total liabilities703,352  785,196 
Commitments and contingencies   
Partners’ capital (deficit)(36,196) 288,432 
Total partners’ capital (deficit)(36,196) 288,432 
 $667,156  $1,073,628 
        

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
  
 Year Ended December 31,
 2019 2018 2017
Revenues:     
Terminalling and storage  *$87,397  $96,204  $99,643 
Transportation  *159,622  150,121  135,350 
Sulfur services11,434  11,148  10,952 
Product sales: *     
Natural gas liquids366,502  496,007  473,317 
Sulfur services99,906  121,388  123,732 
Terminalling and storage122,257  145,236  130,392 
 588,665  762,631  727,441 
Total revenues847,118  1,020,104  973,386 
      
Costs and expenses:     
Cost of products sold: (excluding depreciation and amortization)     
Natural gas liquids *325,376  449,103  406,388 
Sulfur services *65,893  83,641  76,119 
Terminalling and storage *101,526  126,562  112,168 
 492,795  659,306  594,675 
Expenses:     
Operating expenses  *209,313  216,182  228,778 
Selling, general and administrative  *41,433  39,116  39,080 
Impairment of long-lived assets    2,225 
Depreciation and amortization60,060  61,484  65,108 
Total costs and expenses803,601  976,088  929,866 
Other operating income, net14,587  1,041  2,096 
Operating income58,104  45,057  45,616 
      
Other income (expense):     
Interest expense, net(51,690) (52,349) (47,770)
Other, net6  38  1,129 
Total other income (expense)(51,684) (52,311) (46,641)
Net income (loss) before taxes6,420  (7,254) (1,025)
Income tax expense(1,900) (577) (158)
Income (loss) from continuing operations4,520  (7,831) (1,183)
Income (loss) from discontinued operations, net of income taxes(179,466) 63,486  21,099 
Net income (loss)(174,946) 55,655  19,916 
Less general partner's interest in net (income) loss3,499  (882) (343)
Less pre-acquisition income allocated to the general partner  (11,550) (2,781)
Less income allocable to unvested restricted units(41) (28) (42)
Limited partners' interest in net income (loss)$(171,488) $43,195  $16,750 
            

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

*Related Party Transactions Shown Below

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
 
*Related Party Transactions Included Above
 Year Ended December 31,
 2019 2018 2017
Revenues:     
Terminalling and storage$71,733  $79,137  $82,142 
Transportation24,243  27,588  29,807 
Natural gas liquids    122 
Product sales931  1,297  3,497 
Costs and expenses:     
Cost of products sold: (excluding depreciation and amortization)     
Transportation61,376  62,965  63,487 
Natural gas liquids    4,354 
Sulfur services10,765  10,641  9,345 
Terminalling and storage23,859  24,613  16,672 
Expenses:     
Operating expenses88,194  90,878  95,546 
Selling, general and administrative32,622  26,441  26,393 
         

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
  
 Year Ended December 31,
 2019 2018 2017
Allocation of net income (loss) attributable to:     
Limited partner interest:     
Continuing operations$4,430  $(18,982) $(3,875)
Discontinued operations(175,918) 62,177  20,625 
 $(171,488) $43,195  $16,750 
General partner interest:     
Continuing operations$91  $(387) $(79)
Discontinued operations(3,590) 1,269  422 
 $(3,499) $882  $343 
      
Net income (loss) per unit attributable to limited partners:     
Basic:     
Continuing operations$0.11  $(0.49) $(0.10)
Discontinued operations(4.55) 1.60  0.54 
 $(4.44) $1.11  $0.44 
      
Weighted average limited partner units - basic38,659  38,907  38,102 
      
Diluted:     
Continuing operations$0.11  $(0.49) $(0.10)
Discontinued operations(4.55) 1.60  0.54 
 $(4.44) $1.11  $0.44 
      
Weighted average limited partner units - diluted38,659  38,923  38,165 
         

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
(Dollars in thousands)
      
   Partners’ Capital  
 Parent Net
 Common General
Partner
  
 Investment Units Amount Amount Total
Balances – December 31, 2016$19,054  35,452,062  $304,594  $7,412  $331,060 
          
Net income2,781    16,792  343  19,916 
Issuance of common units, net  2,990,000  51,056    51,056 
Issuance of restricted units  12,000       
Forfeiture of restricted units  (9,250)      
General partner contribution      1,098  1,098 
Cash distributions    (75,399) (1,539) (76,938)
Deemed contribution from Martin Resource Management Corporation2,405        2,405 
Reimbursement of excess purchase price over carrying value of acquired assets    1,125    1,125 
Excess carrying value of the assets over the purchase price paid by Martin Resource Management    (7,887)   (7,887)
Unit-based compensation    650    650 
Purchase of treasury units  (200) (4)   (4)
Balances – December 31, 201724,240  38,444,612  290,927  7,314  322,481 
          
Net income11,550    43,223  882  55,655 
Issuance of common units, net    (118)   (118)
Issuance of time-based restricted units  315,500       
Issuance of performance-based restricted units  317,925       
Forfeiture of restricted units  (27,000)      
Cash distributions    (76,872) (1,569) (78,441)
Deemed distribution from Martin Resource Management Corporation(12,070)       (12,070)
Excess purchase price over carrying value of acquired assets    (26)   (26)
Unit-based compensation    1,224    1,224 
Purchase of treasury units  (18,800) (273)   (273)
Balances – December 31, 201823,720  39,032,237  258,085  6,627  288,432 
          
Net loss    (171,447) (3,499) (174,946)
Issuance of common units, net    (289)   (289)
Issuance of time-based restricted units  16,944       
Forfeiture of restricted units  (154,288)      
Cash distributions    (48,111) (982) (49,093)
Excess purchase price over carrying value of acquired assets    (102,393)   (102,393)
Deferred taxes on acquired assets and liabilities    24,781    24,781 
Unit-based compensation    1,424    1,424 
Purchase of treasury units  (31,504) (392)   (392)
Contribution to parent(23,720)       (23,720)
Balances – December 31, 2019$  38,863,389  $(38,342) $2,146  $(36,196)
                   

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

 
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
  
 Year Ended December 31,
 2019 2018 2017
Cash flows from operating activities:     
Net income (loss)$(174,946) $55,655  $19,916 
Less:  (Income) loss from discontinued operations179,466  (63,486) (21,099)
Net income (loss) from continuing operations4,520  (7,831) (1,183)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:     
Depreciation and amortization60,060  61,484  65,108 
Amortization and write-off of deferred debt issue costs4,041  3,445  2,897 
Amortization of premium on notes payable(306) (306) (306)
Deferred income taxes1,360  208  (156)
Gain on disposition or sale of property, plant, and equipment(13,332) (1,041) (2,090)
Impairment of long lived assets    2,225 
Derivative (income) loss5,137  (14,024) 1,304 
Net cash (paid) received for commodity derivatives(4,466) 13,948  (5,136)
Unit-based compensation1,424  1,224  650 
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:     
Accounts and other receivables62  29,085  (29,384)
Product exchange receivables166  (137) 178 
Inventories21,493  13,370  (14,927)
Due from affiliates1,822  5,961  (12,096)
Other current assets(254) 1,485  (1,743)
Trade and other accounts payable(898) (27,321) 19,263 
Product exchange payables(7,781) 555  4,829 
Due to affiliates(1,469) 99  (5,564)
Income taxes payable27  (65) (360)
Other accrued liabilities(3,017) (6,636) (223)
Change in other non-current assets and liabilities(543) 1,206  2,780 
Net cash provided by continuing operating activities68,046  74,709  26,066 
Net cash provided by discontinued operating activities7,769  30,321  43,018 
Net cash provided by operating activities75,815  105,030  69,084 
Cash flows from investing activities:     
Payments for property, plant, and equipment(30,621) (35,255) (41,932)
Acquisitions, net of cash acquired(23,720)   (19,533)
Payments for plant turnaround costs(5,677) (1,893) (1,583)
Proceeds from sale of property, plant, and equipment20,660  11,483  13,676 
Proceeds from involuntary conversion of property, plant and equipment5,031     
Proceeds from repayment of Note receivable - affiliate    15,000 
Net cash used in continuing investing activities(34,327) (25,665) (34,372)
Net cash provided by (used in) discontinued investing activities209,155  173,287  (7,263)
Net cash provided by (used in) investing activities174,828  147,622  (41,635)
Cash flows from financing activities:     
Payments of long-term debt(729,514) (559,201) (339,224)
Proceeds from long-term debt638,000  399,000  341,000 
Net proceeds from issuance of common units(289) (118) 51,056 
General partner contributions    1,098 
Deemed contribution from (distribution to) Martin Resource Management  (12,070) 2,405 
Excess purchase price over carrying value of acquired assets(102,393) (26) (7,887)
Reimbursement of excess purchase price over carrying value of acquired assets    1,125 
Purchase of treasury units(392) (273) (4)
Payments of debt issuance costs(4,406) (1,312) (66)
Cash distributions paid(49,093) (78,441) (76,938)
Net cash used in financing activities(248,087) (252,441) (27,435)
      
Net increase in cash2,556  211  14 
Cash at beginning of year300  89  75 
Cash at end of year$2,856  $300  $89 
      

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.

 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Terminalling and Storage Segment
 
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
 Year Ended
December 31,
     Percent
 2019 2018 Variance Change
        
 (In thousands)  
Revenues:       
Services$93,980  $102,514  $(8,534) (8)%
Products122,333  145,326  (22,993) (16)%
Total revenues216,313  247,840  (31,527) (13)%
        
Cost of products sold107,081  132,384  (25,303) (19)%
Operating expenses53,279  54,129  (850) (2)%
Selling, general and administrative expenses5,997  5,327  670  13%
Depreciation and amortization30,952  39,508  (8,556) (22)%
 19,004  16,492  2,512  15%
Other operating income (loss), net(1,334) 1,328  (2,662) (200)%
Operating income$17,670  $17,820  $(150) (1)%
        
Shore-based throughput volumes (guaranteed minimum) (gallons)80,000  80,000    %
Smackover refinery throughput volumes (guaranteed minimum BBL per day)6,500  6,500    %
            


 
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
 Year Ended
December 31,
     Percent
 2018 2017 Variance Change
        
 (In thousands)  
Revenues:       
Services$102,514  $105,703  $(3,189) (3)%
Products145,326  130,466  14,860  11%
Total revenues247,840  236,169  11,671  5%
        
Cost of products sold132,384  118,832  13,552  11%
Operating expenses54,129  63,191  (9,062) (14)%
Selling, general and administrative expenses5,327  5,832  (505) (9)%
Impairment of long-lived assets  600  (600) (100)%
Depreciation and amortization39,508  45,160  (5,652) (13)%
 16,492  2,554  13,938  546%
Other operating income, net1,328  751  577  77%
Operating income$17,820  $3,305  $14,515  439%
        
Shore-based throughput volumes (guaranteed minimum) (gallons)80,000  144,998  (64,998) (45)%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)6,500  6,500    %
            


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Transportation Segment
 
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
 Year Ended
December 31,
     Percent
 2019 2018 Variance Change
        
 (In thousands)  
Revenues$183,740  $178,163  $5,577  3%
Operating expenses141,713  146,300  (4,587) (3)%
Selling, general and administrative expenses8,199  6,305  1,894  30%
Depreciation and amortization15,307  11,003  4,304  39%
 18,521  14,555  3,966  27%
Other operating income (loss), net(1,691) 215  (1,906) (887)%
Operating income$16,830  $14,770  $2,060  14%
               


 
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
 Year Ended
December 31,
     Percent
 2018 2017 Variance Change
 (In thousands)  
Revenues$178,163  $164,043  $14,120  9%
Operating expenses146,300  148,331  (2,031) (1)%
Selling, general and administrative expenses6,305  4,807  1,498  31%
Impairment of long lived assets  1,625  (1,625) (100)%
Depreciation and amortization11,003  9,285  1,718  19%
 14,555  (5) 14,560  291,200%
Other operating income, net215  1,378  (1,163) (84)%
Operating income$14,770  $1,373  $13,397  976%
               


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Sulfur Services Segment
 
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
 Year Ended
December 31,
     Percent
 2019 2018 Variance Change
        
 (In thousands)  
Revenues:       
Services$11,434  $11,148  $286  3%
Products99,906  121,388  (21,482) (18)%
Total revenues111,340  132,536  (21,196) (16)%
        
Cost of products sold71,806  90,780  (18,974) (21)%
Operating expenses10,639  11,618  (979) (8)%
Selling, general and administrative expenses4,784  4,326  458  11%
Depreciation and amortization11,332  8,485  2,847  34%
 12,779  17,327  (4,548) (26)%
Other operating income (loss), net1,210  (111) 1,321  1,190%
Operating income$13,989  $17,216  $(3,227) (19)%
        
Sulfur (long tons)665.0  688.0  (23.0) (3)%
Fertilizer (long tons)260.0  277.0  (17.0) (6)%
Sulfur services volumes (long tons)925.0  965.0  (40.0) (4)%
            


 
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
 Year Ended
December 31,
     Percent
 2018 2017 Variance Change
        
 (In thousands)  
Revenues:       
Services$11,148  $10,952  $196  2%
Products121,388  123,732  (2,344) (2)%
Total revenues132,536  134,684  (2,148) (2)%
        
Cost of products sold90,780  82,760  8,020  10%
Operating expenses11,618  13,783  (2,165) (16)%
Selling, general and administrative expenses4,326  4,136  190  5%
Depreciation and amortization8,485  8,117  368  5%
 17,327  25,888  (8,561) (33)%
Other operating loss, net(111) (26) (85) (327)%
Operating income$17,216  $25,862  $(8,646) (33)%
        
Sulfur (long tons)688.0  807.0  (119.0) (15)%
Fertilizer (long tons)277.0  276.0  1.0  %
Sulfur services volumes (long tons)965.0  1,083.0  (118.0) (11)%
            


 
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
 
Natural Gas Services Segment
 
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
 Year Ended
December 31,
     Percent
 2019 2018 Variance Change
        
 (In thousands)  
Products Revenues$366,502  $496,026  (129,524) (26)%
Cost of products sold341,800  467,550  (125,750) (27)%
Operating expenses6,300  7,107  (807) (11)%
Selling, general and administrative expenses4,739  5,338  (599) (11)%
Depreciation and amortization2,469  2,488  (19) (1)%
 11,194  13,543  (2,349) (17)%
Other operating income (loss), net16,402  (391) 16,793  4,295%
Operating income$27,596  $13,152  $14,444  110%
        
NGLs Volumes (barrels)9,820  10,223  (403) (4)%
            


 
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
 Year Ended
December 31,
     Percent
 2018 2017 Variance Change
        
 (In thousands)  
Products Revenues$496,026  $473,548  22,478  5%
Cost of products sold467,550  424,610  42,940  10%
Operating expenses7,107  6,905  202  3%
Selling, general and administrative expenses5,338  7,072  (1,734) (25)%
Depreciation and amortization2,488  2,546  (58) (2)%
 13,543  32,415  (18,872) (58)%
Other operating loss, net(391) (7) (384) (5,486)%
Operating income$13,152  $32,408  $(19,256) (59)%
        
NGLs Volumes (barrels)10,223  10,487  (264) (3)%
            

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 quarter and years ended December 31, 2019 and 2018, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.

 
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
    
 Three Months Ended
December 31,
 Year Ended
December 31,
 2019 2018 2019 2018
        
Net income (loss)$6,642  $2,582  $(174,946) $55,655 
Less:  (Income) loss from discontinued operations, net of income taxes  (1,029) 179,466  (63,486)
Income (loss) from continuing operations6,642  1,553  4,520  (7,831)
Adjustments:       
Interest expense11,060  12,566  51,690  52,349 
Income tax expense328  198  1,900  577 
Depreciation and amortization15,063  14,264  60,060  61,484 
EBITDA from Continuing Operations33,093  28,581  118,170  106,579 
Adjustments:       
(Gain) loss on sale of property, plant and equipment617  (928) (13,332) (1,041)
Unrealized mark-to-market on commodity derivatives1,200  (2,972) 671  (76)
Non-cash insurance related accruals    500   
Lower of cost or market adjustments226    633   
Unit-based compensation360  352  1,424  1,224 
Transaction costs associated with acquisitions  465  224  465 
Adjusted EBITDA from Continuing Operations35,496  25,498  108,290  107,151 
Adjustments:       
Interest expense(11,060) (12,566) (51,690) (52,349)
Income tax expense(328) (198) (1,900) (577)
Amortization of deferred debt issuance costs483  882  4,041  3,445 
Amortization of debt premium(76) (76) (306) (306)
Deferred income taxes260  208  1,360  208 
Payments for plant turnaround costs(560) (1,014) (5,677) (1,893)
Maintenance capital expenditures(3,492) (4,389) (12,368) (19,553)
Distributable Cash Flow from Continuing Operations$20,723  $8,345  $41,750  $36,126 
        
Income (loss) from discontinued operations, net of income taxes$  $1,029  $(179,466) $63,486 
Adjustments:       
Depreciation and amortization  4,742  8,161  18,795 
EBITDA from Discontinued Operations       
Equity in earnings      (3,382)
Distributions from unconsolidated entities      3,500 
Gain from disposition of Investment in WTLPG      (48,564)
Loss on sale of property, plant and equipment, net  704  178,781  824 
Non-cash insurance related accruals    3,213   
Adjusted EBITDA from Discontinued Operations$  $6,475  $10,689  $34,659 
Maintenance capital expenditures$  $(497) $(912) $(1,952)
Distributable Cash Flow from Discontinued Operations$  $5,978  $9,777  $32,707