Martin Midstream Partners(MMLP) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $192.543 million, an increase of 6.3% compared to $180.830 million in Q1 2024[17] - Net loss for Q1 2025 was $1.033 million, compared to a net income of $3.273 million in Q1 2024, representing a decline of 131.6%[17] - Operating income decreased to $14.402 million in Q1 2025 from $17.895 million in Q1 2024, a decrease of 19.1%[17] - For the three months ended March 31, 2025, total revenue was $169,539 thousand, a decrease of 10.5% compared to $189,830 thousand for the same period in 2024[31] - For the three months ended March 31, 2025, total consolidated revenues were $192,543 thousand, a decrease from $197,279 thousand in the same period of 2024, representing a decline of approximately 3.9%[96] Segment Performance - The terminalling and storage segment generated revenue of $21,549 thousand, down 4.3% from $22,517 thousand in the prior year[31] - The transportation segment reported revenue of $52,985 thousand, a decline of 9.5% from $58,307 thousand in the previous year[31] - Sulfur services segment revenue increased significantly to $48,704 thousand, up 44.6% from $33,681 thousand in the same quarter of 2024[31] - Specialty products segment revenue rose to $69,305 thousand, an increase of 4.5% compared to $66,325 thousand in the prior year[31] - The Terminalling and Storage segment generated revenues of $23,414 thousand, while the Transportation segment generated $57,475 thousand, and the Sulfur Services segment generated $48,704 thousand for the same period[105] Cash Flow and Assets - Cash at the end of Q1 2025 was $52 million, a slight decrease from $55 million at the end of Q4 2024[15] - Cash flows from operating activities were negative at $(6.019) million in Q1 2025, compared to positive cash flows of $10.109 million in Q1 2024[24] - Total current assets decreased to $129.646 million in Q1 2025 from $130.479 million in Q4 2024[15] - Total liabilities decreased to $605.038 million in Q1 2025 from $608.948 million in Q4 2024[15] - As of March 31, 2025, total long-term debt was $451,449 thousand, an increase from $437,635 thousand at December 31, 2024[41] Expenses and Liabilities - The company incurred interest expense of $14.107 million in Q1 2025, compared to $13.842 million in Q1 2024[17] - Operating expenses increased to $27,565 thousand in 2025 from $26,423 thousand in 2024, an increase of approximately 4.3%[97] - The Partnership's future minimum lease obligations total $79,471,000 as of March 31, 2025, with the first year obligation being $24,969,000[47] - As of March 31, 2025, total operating lease liabilities amounted to $68,998,000, up from $67,522,000 as of December 31, 2024, reflecting a 2.2% increase[47] Equity and Compensation - Weighted average limited partner units for Q1 2025 were 38,882,982, compared to 38,828,737 in Q1 2024[17] - The total unit-based compensation expense for the three months ended March 31, 2025, was $836,000, compared to a negative expense of $(120,000) in the same period of 2024, indicating a shift in compensation strategy[57] - The Partnership issued 54,000 Time-Based Restricted Units (TBRUs) during the three months ended March 31, 2025, with a grant-date fair value of $3.62 per unit[72] Tax and Deferred Tax - The effective income tax rate for the Taxable Subsidiary was 32.86% for the three months ended March 31, 2025, compared to 15.73% for the same period in 2024[118] - The provision for income taxes for the three months ended March 31, 2025, was $1,117,000, an increase from $796,000 in the same period in 2024[116] - A net deferred tax asset of $10,160 million existed at March 31, 2025, compared to $9,946 million at December 31, 2024[122] Corporate Governance and Management - Martin Resource Management Corporation owns approximately 16.3% of the Partnership's outstanding common limited partner units, maintaining a significant stake in the company[50] - The Partnership reimbursed Martin Resource Management Corporation $3,384,000 and $3,377,000 for indirect expenses for the three months ended March 31, 2025, and 2024, respectively[78] - The Conflicts Committee approved an annual reimbursement amount for indirect expenses of $13,536,000 for the year 2025[78] Risk Management - The Partnership is exposed to commodity risk and interest rate risk, with established hedging policies in place[208] - The Partnership had no outstanding hedging positions as of March 31, 2025, indicating a focus on managing commodity price fluctuations[209] - A 100 basis point increase in interest rates would increase interest expense by approximately $0.7 million annually due to unhedged floating rate debt[210]