Martin Midstream Partners(US:MMLP)2024-07-23 20:17Financial Performance - The company reported a net income of $6,912,000 for the three months ended June 30, 2024, compared to a net income of $1,059,000 for the same period in 2023, indicating a significant increase[40]. - Net income for the three months ended June 30, 2024, was $3,780,000, compared to a net income of $1,081,000 for the same period in 2023, representing a significant increase of 249%[122]. - Limited partners' interest in net income for the six months ended June 30, 2024, was $6,884,000, compared to a loss of $3,913,000 for the same period in 2023, indicating a turnaround in performance[122]. - Total revenue for the six months ended June 30, 2024, was $431,759,000, compared to $348,049,000 for the same period in 2023, representing a 24% increase[54]. - Total operating revenues for the three months ended June 30, 2024, were $195,636, a decrease of 2.1% compared to the same period in 2023[200]. Assets and Liabilities - As of June 30, 2024, total assets increased to $535,078,000 from $509,375,000 as of December 31, 2023, representing a growth of approximately 5.1%[37]. - Current liabilities decreased to $98,709,000 as of June 30, 2024, down from $100,564,000 at the end of 2023, reflecting a reduction of about 1.8%[37]. - Long-term debt increased to $439,397,000 as of June 30, 2024, compared to $421,173,000 as of December 31, 2023, marking an increase of approximately 4.3%[37]. - Total liabilities increased to $592,944,000 from $573,999,000, reflecting a rise of approximately 3.3%[37]. - The partners' capital deficit improved to $(57,866,000) as of June 30, 2024, from $(64,624,000) at the end of 2023, indicating a reduction of about 10.5%[37]. Revenue and Sales - Revenue for the three months ended June 30, 2024, was reported at $13,650,000, compared to $16,074,000 for the same period in 2023, indicating a decline of approximately 15.0%[47]. - Product sales for the six months ended June 30, 2024, were $13,485,000, with a notable increase in sulfur services revenue to $34,770,000[54]. - Revenues from terminalling and storage services for the three months ended June 30, 2024, were $18,078,000, slightly up from $18,077,000 in the same period of 2023[176]. - The sulfur services segment reported operating revenues of $70,873,000 for the six months ended June 30, 2024, reflecting stable demand in this area[200]. - The transportation segment generated operating revenues of $115,983,000 for the six months ended June 30, 2024, demonstrating strong performance in logistics[200]. Investments and Expenditures - The company has invested $7,938,000 in DSM Semichem LLC as of June 30, 2024, indicating a new strategic investment[37]. - The partnership contributed $6,500,000 in cash to DSM Semichem LLC for a 10% non-controlling interest, along with approximately 22 acres of land[187]. - The company expects to fund approximately $27.0 million in capital expenditures related to the electronic level sulfuric acid joint venture[116]. - Capital expenditures and plant turnaround costs for the six months ended June 30, 2024, totaled $30,597,000, representing a significant investment in operational capacity[200]. - Total capital expenditures for the three months ended June 30, 2024, were $9,795,000, highlighting ongoing investments in infrastructure[200]. Operating Expenses - Operating lease costs for the three months ended June 30, 2024, were $6,559,000, compared to $5,013,000 for the same period in 2023, reflecting a 30.8% increase[75]. - The partnership's operating expenses for transportation in the three months ended June 30, 2024, were $19,814,000, compared to $17,951,000 for the same period in 2023[178]. - The partnership's operating expenses for sulfur services in the three months ended June 30, 2024, were $1,050,000, down from $1,590,000 in the same period of 2023[178]. - The partnership's indirect selling, general, and administrative expenses for the six months ended June 30, 2024, were $15,501,000[198]. - The company reimbursed Martin Resource Management Corporation $42.9 million for direct costs and expenses for the three months ended June 30, 2024, compared to $38.6 million for the same period in 2023[98]. Cash Distributions - A quarterly cash distribution of $0.005 per common unit was declared for the second quarter of 2024, amounting to an annualized rate of $0.020 per common unit[117]. - Cash distributions for the period were $390 million, compared to $195 million in the previous year, indicating an increase of 100%[40]. Related Party Transactions - Related party transactions accounted for approximately 28% of total costs and expenses for the three months ended June 30, 2024, compared to 24% for the same period in 2023[102]. - Sales to Martin Resource Management Corporation represented approximately 14% of total revenues for the three months ended June 30, 2024, down from 17% in 2023[102]. - The Partnership reimbursed Martin Resource Management Corporation for $3,377,000 and $3,496,000 of indirect expenses for the three months ended June 30, 2024 and 2023, respectively[166]. Compensation and Equity - Total unit-based compensation expense for the three months ended June 30, 2024, was $1,444,000, compared to a negative expense of $1,536,000 for the same period in 2023, reflecting improved compensation management[124]. - As of June 30, 2024, there were $3,543,000 of unrecognized compensation costs related to non-vested phantom unit awards, expected to be recognized over a remaining life of 1.90 years[128]. - The total weighted average limited partner diluted units outstanding for the three months ended June 30, 2024, was 38,891,375, an increase from 38,777,600 for the same period in 2023[136]. - The Partnership's general partner owns a 2.0% general partner interest, with Martin Resource Management Corporation holding 15.7% of total outstanding common limited partner units as of June 30, 2024[135]. - The Partnership's phantom unit awards are recorded in operating expense and selling, general and administrative expense based on the fair value of the vested portion on the balance sheet date[142].