Business
Martin Midstream Partners Reports Fourth Quarter and Full Year 2019 Financial Results, Quarterly Cash Distribution and 2020 Outlook
Exceeded Fourth Quarter and Full Year 2019 Net Income and Adjusted EBITDA Revised Guidance2019 Net Income from Continuing Operations of $4.5 Million Compared
About this update from Martin Midstream Partners L.p.
[{"type":"text","content":"Exceeded Fourth Quarter and Full Year 2019 Net Income and Adjusted EBITDA Revised Guidance2019 Net Income from Continuing Operations of $4.5 Million Compared to 2018 Net Loss from Continuing Operations of $7.8 MillionReduction of Quarterly Cash Distribution to Re-allocate Capital and Provide Financial Flexibility2020 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.\n 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 Se...