Martin Midstream Partners(US:MMLP)2024-10-16 20:03Financial Performance - Reported net loss of $3.3 million for Q3 2024, compared to net income of $3.7 million in Q3 2023[1] - Revenues for Q3 2024 were reported at $170.9 million, down from $176.7 million in Q3 2023[7] - Total revenues for Q3 2024 were $170.934 million, a decrease of 3.3% from $176.697 million in Q3 2023[24] - Operating income for Q3 2024 was $12.651 million, down from $14.704 million in Q3 2023, reflecting a decrease of 13.9%[24] - Net loss for Q3 2024 was $3.319 million, compared to a loss of $1.061 million in Q3 2023, indicating a significant decline in profitability[24] - Operating income for the nine months ended September 30, 2024, increased by 2% to $13,384, compared to $13,089 in the same period of 2023[36] Adjusted Metrics - Adjusted EBITDA for Q3 2024 was $25.1 million, slightly below guidance of $26.4 million[2] - Adjusted EBITDA serves as a supplemental performance measure, allowing comparison with other companies in the midstream energy sector[16] - Adjusted EBITDA for Q3 2024 was $25,144 thousand, slightly down from $26,170 thousand in Q3 2023[39] - Adjusted Free Cash Flow reflects cash available for reducing debt and investing in capital projects, crucial for financial health[21] - Adjusted free cash flow for Q3 2024 was $(1,550) thousand, compared to $1,548 thousand in Q3 2023[39] Debt and Leverage - Total debt outstanding increased to $486.6 million as of September 30, 2024, from $442.5 million at the end of 2023[6] - Total adjusted leverage ratio rose to 4.14x as of September 30, 2024, compared to 3.75x at the end of 2023[6] - Long-term debt increased to $469.269 million from $421.173 million, representing a rise of approximately 11.4%[23] Cash Flow and Distributions - Distributable Cash Flow is a significant performance measure indicating the ability to sustain or increase quarterly distribution rates[20] - The partnership's ability to pay future distributions is contingent on future cash flows and market conditions[15] - Declared quarterly cash distribution of $0.005 per common unit, payable on November 14, 2024[11] - Cash distributions for the period totaled $199, reflecting a decrease from previous distributions[26] - Distributable cash flow decreased to $2,357 thousand in Q3 2024 from $4,992 thousand in Q3 2023[39] Segment Performance - Transportation segment adjusted EBITDA increased by $2.1 million, reflecting higher day rates and utilization[5] - Sulfur services adjusted EBITDA decreased by $1.2 million due to lower fertilizer volumes and margins[5] - Specialty products adjusted EBITDA decreased by $2.2 million, impacted by reduced margins in lubricants and grease[5] - Operating income for the Transportation Segment for the three months ended September 30, 2024, was $8,583, up 29% from $6,677 in 2023[31] - Total revenues for the Sulfur Services Segment decreased by 24% to $24,660 for the three months ended September 30, 2024, down from $32,577 in 2023[33] Asset and Liability Changes - Total assets increased to $554.757 million as of September 30, 2024, compared to $509.375 million at December 31, 2023, reflecting a growth of approximately 8.9%[23] - Current liabilities decreased from $100.564 million to $94.869 million, a reduction of about 5.3%[23] - Operating expenses for Q3 2024 were $62.363 million, a slight decrease from $64.375 million in Q3 2023[24] - Selling, general, and administrative expenses rose to $12.494 million from $10.424 million year-over-year, reflecting a 20% increase[24] Cash Position - The company reported a net cash position of $70.041 million as of September 30, 2024, up from $53.293 million[23] - Net cash used in operating activities for Q3 2024 was $(15,753) thousand, compared to $7,291 thousand in Q3 2023[39] Investments and Capital Expenditures - Payments for property, plant, and equipment increased to $(34,058) for the nine months ended September 30, 2024, compared to $(25,294) in 2023[28] - Maintenance capital expenditures for Q3 2024 were $(5,738) thousand, compared to $(5,516) thousand in Q3 2023[39] - Expansion capital expenditures increased to $(3,903) thousand in Q3 2024 from $(3,444) thousand in Q3 2023[39] Other Financial Metrics - Credit Adjusted EBITDA excludes non-cash adjustments related to exited business operations, providing a clearer view of financial performance[17] - Credit Adjusted EBITDA for the nine months ended September 30, 2024 was $87,262 thousand, slightly down from $88,545 thousand in the same period of 2023[39] - Current income tax expense increased to $935 thousand in Q3 2024 from $333 thousand in Q3 2023[39]