GlobeNewswire Inc | Oct 21, 2020 05:00PM EDT

October 21, 2020

-- Financial performance exceeds expectations in challenging environment -- Reported net loss of $10.8 million and $4.2 million for the three and nine months ended September 30, 2020, respectively, which were negatively impacted by an $8.5 million charge related to the exchange of our senior notes -- Reported adjusted EBITDA of $22.5 million and $77.5 million for the three and nine months ended September 30, 2020, respectively -- Generated distributable cash flow of $8.1 million and $38.9 million for the three and nine months ended September 30, 2020, respectively -- Successfully completed exchange offer and cash tender offer of senior notes -- Affirms guidance range for adjusted EBITDA and capital expenditures

KILGORE, Texas, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") today announced its financial results for the third quarter of 2020.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, The Partnership delivered strong results in the third quarter even with the continuing impact on demand related to COVID-19 coupled with hurricanes in the Gulf Coast region effecting refinery operations. The diversity of our business model and customer base has proven resilient in these difficult and changing macro-economic times. Although the third quarter is typically our weakest, due to the cyclical nature of our businesses, we had year over year EBITDA growth in three of our four business segments. Our team continues to make every effort to provide our employees and customers with a safe and healthy operating environment.

THIRD QUARTER 2020 OPERATING RESULTS BY BUSINESS SEGMENT

TERMINALLING AND STORAGE (T&S)

T&S Operating Income for the three months ended September 30, 2020 and 2019 was $7.0 million and $5.6 million, respectively.

Adjusted segment EBITDA for T&S was $14.2 million and $13.3 million for the three months ended September 30, 2020 and 2019, respectively, reflecting improved margins on packaged lubricants products from lower production cost and operating efficiencies, reduced operating expenses from lower repairs and maintenance and labor cost at our Specialty Terminals, offset by reduced grease volumes related to lower demand in the oil field and construction industries due to COVID-19, expired capital recovery fees at the Smackover Refinery and decreased fees related to a crude pipeline gathering rate adjustment.

TRANSPORTATION

Transportation Operating Income for the three months ended September 30, 2020 and 2019 was $1.1 million and $4.4 million, respectively.

Adjusted segment EBITDA for Transportation was $5.5 million and $8.2 million for the three months ended September 30, 2020 and 2019, respectively, reflecting lower marine utilization and reduced day rates along with lower land transportation load count related to demand destruction and lower refinery utilization as a result of COVID-19 and gulf coast hurricanes experienced during the three months ended September 30, 2020.

SULFUR SERVICES

Sulfur Services Operating Income for the three months ended September 30, 2020 and 2019 was $5.6 million and $0.3 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $4.2 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, reflecting resumed operations of the Neches Priller offset by reduced fertilizer volumes from extended fertilizer plant turnaround time and reduced fertilizer demand as a result of COVID-19.

NATURAL GAS LIQUIDS (NGL)

NGL Operating Income for the three months ended September 30, 2020 and 2019 was $1.8 million and $19.7 million, respectively.

Adjusted segment EBITDA from continuing operations for NGL was $2.8 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively, primarily reflecting an increase in volumes in 2020 from increased seasonal demand within the butane optimization business.

UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (USGA)

USGA expenses included in operating income were $4.5 million for both the three months ended September 30, 2020 and 2019.

USGA expenses included in adjusted EBITDA were $4.2 million for both the three months ended September 30, 2020 and 2019.

2020 FINANCIAL GUIDANCE UPDATE

The majority of our refinery services are focused on the Gulf Coast Region whose states have reopened their economies. However, the impact on refinery utilization related to the demand reduction from COVID-19 and recent gulf coast hurricanes experienced during the quarter remains unclear. The Partnership believes that our performance through the first nine months coupled with expectations for the coming quarter will allow our annualized Adjusted EBITDA, Expansion Capital Expenditures and Maintenance Capital Expenditures to fall within the previously provided range below:

MMLP 2020 Guidance $ millionsAdjusted EBITDA $95 - 107Expansion Capital Expenditures $10 - 13Maintenance Capital Expenditures $14 - 16

The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort as the adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with a reasonable degree of certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant.

LIQUIDITY

At September 30, 2020, the Partnership had $205 million drawn on its $300 million revolving credit facility, a $24 million increase from June 30, 2020. The majority of the increase was attributable to the NGL inventory working capital sub-limit which increased $20 million quarter over quarter. As previously announced, on August 12, 2020, the Partnership successfully completed an exchange offer and cash tender offer (together the Offers) for its senior unsecured notes due February 2021. As a result of the Offers, the Partnership has the following outstanding senior notes: senior unsecured notes due 2021 of $28.8 million, senior secured notes of $53.8 million due 2024 and senior secured notes of $291.9 million due 2025, for a total of senior notes outstanding of $374.5 million. Accordingly, the Partnerships leverage ratio, as calculated under the revolving credit facility, was 4.9 times on September 30, 2020 compared to 4.8 times on June 30, 2020. The Partnership is in compliance with all debt covenants as of September 30, 2020.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended September 30, 2020. The distribution is payable on November 13, 2020 to common unitholders of record as of the close of business on November 6, 2020. The ex-dividend date for the cash distribution is November 5, 2020.

COVID-19 RESPONSE

The Partnership initiated protocols in response to the COVID-19 pandemic which include work from home initiatives to protect the health and safety of our employees as well as the communities where we operate, travel restrictions, and training personnel regarding preventative measures when accessing docks, vessels and operating locations. At this time all facilities are operational and monitored closely.

RESULTS OF OPERATIONS

The Partnership had a net loss from continuing operations for the three months ended September 30, 2020 of $10.8 million, a loss of $0.27 per limited partner unit. The Partnership had net income from continuing operations for the three months ended September 30, 2019 of $13.3 million, or $0.33 per limited partner unit. Adjusted EBITDA from continuing operations for the three months ended September 30, 2020 was $22.5 million compared to the three months ended September 30, 2019 of $22.0 million. Distributable cash flow from continuing operations for the three months ended September 30, 2020 was $8.1 million compared to the three months ended September 30, 2019 of $8.3 million.

The Partnership had no net income, adjusted EBITDA or distributable cash flow from discontinued operations for the three months ended September 30, 2020 or 2019. The Partnership had no adjusted EBITDA from discontinued operations for the three months ended September 30, 2020 or 2019.

The Partnership had a net loss from continuing operations for the nine months ended September 30, 2020 of $4.2 million, a loss of $0.11 per limited partner unit. The Partnership had a net loss from continuing operations for the nine months ended September 30, 2019 of $2.2 million, a loss of $0.05 per limited partner unit. Adjusted EBITDA from continuing operations for the nine months ended September 30, 2020 was $77.5 million compared to the nine months ended September 30, 2019 of $72.8 million. Distributable cash flow from continuing operations for the nine months ended September 30, 2020 was $38.9 million compared to the nine months ended September 30, 2019 of $21.0 million.

The Partnership had no net income from discontinued operations for the nine months ended September 30, 2020 compared to a loss of $179.5 million, or $4.55 per limited partner unit for the nine months ended September 30, 2019. The Partnership had no adjusted EBITDA from discontinued operations for the nine months ended September 30, 2020 compared to $10.7 million for the nine months ended September 30, 2019. The Partnership had no distributable cash flow from discontinued operations for the nine months ended September 30, 2020 compared to $9.8 million for the nine months ended September 30, 2019.

Revenues for the three months ended September 30, 2020 were $152.5 million compared to the three months ended September 30, 2019 of $177.9 million. Revenues for the nine months ended September 30, 2020 were $492.1 million compared to the nine months ended September 30, 2019 of $605.3 million.

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.

An attachment accompanying this announcement and included in the Current Report on Form 8-K to which this announcement is included, contains a comparison of the Partnerships Adjusted EBITDA for the third quarter 2020 to the Partnership's Adjusted EBITDA for the third quarter 2019 and is available at http://ml.globenewswire.com/Resource/Download/02a3d060-d2b7-4fa2-932c-da0c46109eff.

Investors' Conference Call

An investors conference call to review the third quarter results will be held on Thursday, October 22, 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 9123705. 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 Partnerships 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 or operational estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the current and potential impacts of the COVID-19 pandemic generally, on an industry-specific basis, and on the Partnerships specific operations and business, (ii) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (iii) other factors, many of which are outside its 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 Partnerships 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 atwww.MMLP.com or by contacting:

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

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED BALANCE SHEETS(Dollars in thousands)

September December 30, 31, 2020 2019 (Unaudited) (Audited)Assets Cash $ 1,862 $ 2,856 Accounts and other receivables, less allowance for 55,461 87,254 doubtful accounts of $537 and $532, respectivelyProduct exchange receivables 212 ? Inventories 77,724 62,540 Due from affiliates 18,932 17,829 Other current assets 9,587 5,833 Assets held for sale ? 5,052 Total current assets 163,778 181,364 Property, plant and equipment, at cost 902,965 884,728 Accumulated depreciation (506,645 ) (467,531 )Property, plant and equipment, net 396,320 417,197 Goodwill 17,705 17,705 Right-of-use assets 23,201 23,901 Deferred income taxes, net 22,220 23,422 Other assets, net 3,116 3,567 Total assets $ 626,340 $ 667,156 Liabilities and Partners? Capital (Deficit) Current installments of long-term debt and finance $ 31,979 $ 6,758 lease obligationsTrade and other accounts payable 45,326 64,802 Product exchange payables 3,044 4,322 Due to affiliates 467 1,470 Income taxes payable 335 472 Fair value of derivatives 391 667 Other accrued liabilities 23,153 28,789 Total current liabilities 104,695 107,280 Long-term debt, net 541,002 569,788 Finance lease obligations 348 717 Operating lease liabilities 16,005 16,656 Other long-term obligations 8,753 8,911 Total liabilities 670,803 703,352 Commitments and contingencies Partners? capital (deficit) (44,463 ) (36,196 )Total partners? capital (deficit) (44,463 ) (36,196 )Total liabilities and partners' capital (deficit) $ 626,340 $ 667,156

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019Revenues: Terminalling and $ 20,706 $ 21,193 $ 61,088 $ 65,674 storage*Transportation* 31,938 40,211 102,364 119,327 Sulfur services 2,915 2,859 8,744 8,576 Product sales: * Natural gas liquids 52,350 60,871 164,860 234,743 Sulfur services 18,965 20,213 74,879 81,945 Terminalling and storage 25,659 32,553 80,119 94,991 96,974 113,637 319,858 411,679 Total revenues 152,533 177,900 492,054 605,256 Costs and expenses: Cost of products sold:(excluding depreciation and amortization)Natural gas liquids * 44,908 51,736 139,036 211,472 Sulfur services * 13,313 14,442 46,167 56,262 Terminalling and storage * 19,124 26,009 64,242 78,998 77,345 92,187 249,445 346,732 Expenses: Operating expenses* 43,105 51,071 138,589 156,499 Selling, general and 10,339 10,474 30,659 30,900 administrative*Depreciation and 15,276 15,009 45,858 44,997 amortizationTotal costs and expenses 146,065 168,741 464,551 579,128 Other operating income 23 16,302 2,548 13,949 (loss), netGain on involuntaryconversion of property, 4,522 ? 4,522 ? plant and equipmentOperating income 11,013 25,461 34,573 40,077 Other income (expense): Interest expense, net (12,943 ) (11,973 ) (32,245 ) (40,630 )Gain on retirement of ? ? 3,484 ? senior unsecured notesLoss on exchange of senior (8,516 ) ? (8,516 ) ? unsecured notesOther, net ? (1 ) 7 3 Total other expense (21,459 ) (11,974 ) (37,270 ) (40,627 ) Net income (loss) before (10,446 ) 13,487 (2,697 ) (550 )taxesIncome tax expense (373 ) (237 ) (1,510 ) (1,572 )Income (loss) from (10,819 ) 13,250 (4,207 ) (2,122 )continuing operationsIncome from discontinuedoperations, net of income ? ? ? (179,466 )taxesNet income (loss) (10,819 ) 13,250 (4,207 ) (181,588 )Less general partner'sinterest in net (income) 216 (265 ) 84 3,632 lossLess (income) lossallocable to unvested 53 (72 ) 8 (5 )restricted unitsLimited partners' interest $ (10,550 ) $ 12,913 $ (4,115 ) $ (177,961 )in net income (loss)

*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

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019Revenues:* Terminalling and storage $ 15,902 $ 17,538 $ 47,718 $ 53,987Transportation 5,514 6,442 16,801 17,941Product Sales 69 122 199 829Costs and expenses:* Cost of products sold: (excluding depreciation and amortization)Sulfur services 2,512 2,620 7,833 8,078Terminalling and storage 4,303 6,300 14,329 19,412Expenses: Operating expenses 18,915 21,745 60,126 66,409Selling, general and 8,356 8,358 24,723 24,148administrative

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019Allocation of net income (loss) attributable to:Limited partner interest: Continuing operations $ (10,550 ) $ 12,913 $ (4,115 ) $ (2,080 )Discontinued operations ? ? ? (175,881 ) $ (10,550 ) $ 12,913 $ (4,115 ) $ (177,961 )General partner interest: Continuing operations $ (216 ) $ 265 $ (84 ) $ (42 )Discontinued operations ? ? ? (3,590 ) $ (216 ) $ 265 $ (84 ) $ (3,632 ) Net income (loss) per unitattributable to limited partners:Basic: Continuing operations $ (0.27 ) $ 0.33 $ (0.11 ) $ (0.05 )Discontinued operations ? ? ? (4.55 ) $ (0.27 ) $ 0.33 $ (0.11 ) $ (4.60 )Weighted average limited 38,662 38,653 38,655 38,661 partner units - basicDiluted: Continuing operations $ (0.27 ) $ 0.33 $ (0.11 ) $ (0.05 )Discontinued operations ? ? ? (4.55 ) $ (0.27 ) $ 0.33 $ (0.11 ) $ (4.60 )Weighted average limited 38,662 38,653 38,655 38,661 partner units - diluted

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)(Dollars in thousands)

Partners? Capital (Deficit) Common Limited Parent Net General Investment Units Amount Partner Total AmountBalances -January 1, $ 23,720 39,032,237 $ 258,085 $ 6,627 $ 288,432 2019Net loss ? ? (177,956 ) (3,632 ) (181,588 ) Issuance ofcommon units, ? ? (289 ) ? (289 ) netIssuance ofrestricted ? 16,944 ? ? ? unitsForfeiture ofrestricted ? (154,288 ) ? ? ? unitsCash ? ? (38,480 ) (785 ) (39,265 ) distributionsUnit-based ? ? 1,064 ? 1,064 compensationPurchase oftreasury ? (31,504 ) (392 ) ? (392 ) unitsExcesspurchaseprice overcarrying ? ? (102,393 ) ? (102,393 ) value ofacquiredassetsDeferredtaxes onacquired ? ? 24,781 ? 24,781 assets andliabilitiesContribution (23,720 ) ? ? ? (23,720 ) to parentBalances -September 30, $ ? 38,863,389 $ (35,580 ) $ 2,210 $ (33,370 ) 2019 Balances -January 1, $ ? 38,863,389 $ (38,342 ) $ 2,146 $ (36,196 ) 2020Net income ? ? (4,123 ) (84 ) (4,207 ) Issuance ofrestricted ? 81,000 ? ? ? unitsForfeiture ofrestricted ? (84,134 ) ? ? ? unitsCash ? ? (5,019 ) (102 ) (5,121 ) distributionsUnit-based ? ? 1,070 ? 1,070 compensationPurchase oftreasury ? (7,748 ) (9 ) ? (9 ) unitsBalances -September 30, $ ? 38,852,507 $ (46,423 ) $ 1,960 $ (44,463 ) 2020

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS(Dollars in thousands)

Nine Months Ended September 30, 2020 2019Cash flows from operating activities: Net loss $ (4,207 ) $ (181,588 )Less: Loss from discontinued operations, net of ? 179,466 income taxesNet loss from continuing operations (4,207 ) (2,122 )Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation and amortization 45,858 44,997 Amortization and write-off of deferred debt issuance 2,674 3,558 costsAmortization of premium on notes payable (191 ) (230 )Deferred income tax expense 1,202 1,100 (Gain) loss on sale of property, plant and equipment, 153 (13,949 )netGain on involuntary conversion of property, plant and (4,522 ) ? equipmentNon-cash impact related to exchange of senior (749 ) ? unsecured notesGain on retirement of senior unsecured notes (3,484 ) ? Derivative (income) loss (815 ) (280 )Net cash paid for commodity derivatives 539 (249 )Unit-based compensation 1,070 1,064 Change in current assets and liabilities, excluding effects of acquisitions and dispositions:Accounts and other receivables 30,012 25,748 Product exchange receivables (212 ) 164 Inventories (15,184 ) (11,707 )Due from affiliates (1,103 ) 1,150 Other current assets (6,130 ) (2,654 )Trade and other accounts payable (17,117 ) (10,577 )Product exchange payables (1,278 ) (7,257 )Due to affiliates (1,003 ) (1,468 )Income taxes payable (137 ) 65 Other accrued liabilities (5,534 ) (8,904 )Change in other non-current assets and liabilities (692 ) (600 )Net cash provided by continuing operating activities 19,150 17,849 Net cash provided by discontinued operating ? 7,770 activitiesNet cash provided by operating activities 19,150 25,619 Cash flows from investing activities: Payments for property, plant and equipment (23,705 ) (22,797 )Acquisitions ? (23,720 )Payments for plant turnaround costs (637 ) (5,117 )Proceeds from involuntary conversion of property, 7,203 ? plant and equipmentProceeds from sale of property, plant and equipment 4,392 18,303 Net cash used in continuing investing activities (12,747 ) (33,331 )Net cash provided by discontinued investing ? 209,155 activitiesNet cash provided by (used in) investing activities (12,747 ) 175,824 Cash flows from financing activities: Payments of long-term debt and finance lease (257,658 ) (639,308 )obligationsProceeds from long-term debt 259,019 586,000 Proceeds from issuance of common units, net of ? (289 )issuance related costsGeneral partner contribution ? ? Purchase of treasury units (9 ) (392 )Payment of debt issuance costs (3,628 ) (4,294 )Excess purchase price over carrying value of acquired ? (102,393 )assetsCash distributions paid (5,121 ) (39,265 )Net cash used in financing activities (7,397 ) (199,941 )Net increase (decrease) in cash (994 ) 1,502 Cash at beginning of period 2,856 300 Cash at end of period $ 1,862 $ 1,802 Non-cash additions to property, plant and equipment $ 1,432 $ 1,045

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 Three Months Ended September30, 2020 and 2019

Three Months Ended Variance Percent September 30, Change 2020 2019 (In thousands, except BBL per day) Revenues: Services $ 22,512 $ 22,806 $ (294 ) (1 ) %Products 25,676 32,570 (6,894 ) (21 ) %Total revenues 48,188 55,376 (7,188 ) (13 ) % Cost of products sold 20,381 27,439 (7,058 ) (26 ) %Operating expenses 12,064 12,947 (883 ) (7 ) %Selling, general and 1,537 1,724 (187 ) (11 ) %administrative expensesDepreciation and amortization 7,294 7,690 (396 ) (5 ) % 6,912 5,576 1,336 24 %Other operating income, net 1 ? 1 Gain on involuntary conversionof property, plant and 62 ? 62 equipmentOperating income $ 6,975 $ 5,576 $ 1,399 25 % Shore-based throughput volumes 20,000 20,000 ? ? %(guaranteed minimum) (gallons)Smackover refinery throughputvolumes (guaranteed minimum BBL 6,500 6,500 ? ? %per day)

Comparative Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Nine Months Ended Percent September 30, Variance Change 2020 2019 (In thousands, except BBL per day) Revenues: Services $ 66,115 $ 70,572 $ (4,457 ) (6 ) %Products 80,183 95,047 (14,864 ) (16 ) %Total revenues 146,298 165,619 (19,321 ) (12 ) % Cost of products sold 68,066 83,213 (15,147 ) (18 ) %Operating expenses 37,269 39,557 (2,288 ) (6 ) %Selling, general and 4,594 4,451 143 3 %administrative expensesDepreciation and 22,022 23,353 (1,331 ) (6 ) %amortization 14,347 15,045 (698 ) (5 ) %Other operating income (3,053 ) 17 (3,070 ) (18,059 ) %(loss), netGain on involuntaryconversion of property, 62 ? 62 plant and equipmentOperating income $ 11,356 $ 15,062 $ (3,706 ) (25 ) % Shore-based throughputvolumes (guaranteed 60,000 60,000 ? ? %minimum) (gallons)Smackover refinerythroughput volumes 6,500 6,500 ? ? %(guaranteed minimum)(BBL per day)

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 Three Months Ended September30, 2020 and 2019

Three Months Ended Percent September 30, Variance Change 2020 2019 (In thousands) Revenues $ 35,712 $ 44,631 $ (8,919 ) (20 ) %Operating expenses 28,144 34,281 (6,137 ) (18 ) %Selling, general andadministrative 2,050 2,177 (127 ) (6 ) %expensesDepreciation and 4,412 3,877 535 14 %amortization 1,106 4,296 (3,190 ) (74 ) %Other operating 21 150 (129 ) (86 ) %income, netOperating income $ 1,127 $ 4,446 $ (3,319 ) (75 ) %

Comparative Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Nine Months Ended Percent September 30, Variance Change 2020 2019 (In thousands) Revenues $ 116,145 $ 137,050 $ (20,905 ) (15 ) %Operating expenses 91,637 106,058 (14,421 ) (14 ) %Selling, general and 6,243 6,242 1 ? %administrative expensesDepreciation and 13,020 11,225 1,795 16 %amortization $ 5,245 $ 13,525 $ (8,280 ) (61 ) %Other operating loss, net (1,174 ) (2,235 ) 1,061 47 %Operating income $ 4,071 $ 11,290 $ (7,219 ) (64 ) %

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 Three Months Ended September30, 2020 and 2019

Three Months Ended Variance Percent September 30, Change 2020 2019 (In thousands) Revenues: Services $ 2,915 $ 2,859 $ 56 2 %Products 18,965 20,213 (1,248 ) (6 ) %Total revenues 21,880 23,072 (1,192 ) (5 ) % Cost of products sold 14,141 15,807 (1,666 ) (11 ) %Operating expenses 2,501 2,883 (382 ) (13 ) %Selling, general and administrative 1,166 1,260 (94 ) (7 ) %expensesDepreciation and amortization 2,953 2,831 122 4 % 1,119 291 828 285 %Other operating income (loss), net 1 ? 1 Gain on involuntary conversion of 4,460 ? 4,460 property, plant and equipmentOperating income $ 5,580 $ 291 $ 5,289 1,818 % Sulfur (long tons) 154 180 (26 ) (14 ) %Fertilizer (long tons) 44 59 (15 ) (25 ) %Total sulfur services volumes (long 198 239 (41 ) (17 ) %tons)

Comparative Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Nine Months Ended Percent September 30, Variance Change 2020 2019 (In thousands) Revenues: Services $ 8,744 $ 8,576 $ 168 2 %Products 74,892 81,945 (7,053 ) (9 ) %Total revenues 83,636 90,521 (6,885 ) (8 ) % Cost of products sold 49,546 61,049 (11,503 ) (19 ) %Operating expenses 8,553 7,835 718 9 %Selling, general and 3,535 3,689 (154 ) (4 ) %administrative expensesDepreciation and 8,978 8,553 425 5 %amortization 13,024 9,395 3,629 39 %Other operating income 6,777 (1 ) 6,778 677,800 %(loss), netGain on involuntaryconversion of property, 4,460 ? 4,460 plant and equipmentOperating income $ 24,261 $ 9,394 $ 14,867 158 % Sulfur (long tons) 503 471 32 7 %Fertilizer (long tons) 209 214 (5 ) (2 ) %Total sulfur services 712 685 27 4 %volumes (long tons)

MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars and volumes in thousands, except BBL per day)

Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended September30, 2020 and 2019

Three Months Ended Percent September 30, Variance Change 2020 2019 (In thousands) Products Revenues $ 52,350 $ 60,871 $ (8,521 ) (14 ) %Cost of products sold 47,723 54,273 (6,550 ) (12 ) %Operating expenses 1,039 1,624 (585 ) (36 ) %Selling, general and administrative 1,117 852 265 31 %expensesDepreciation and amortization 617 611 6 1 % 1,854 3,511 (1,657 ) (47 ) %Other operating income, net ? 16,152 (16,152 ) (100 ) %Operating income $ 1,854 $ 19,663 $ (17,809 ) (91 ) % NGL sales volumes (Bbls) 2,572 1,905 667 35 %

Comparative Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Nine Months Ended Percent September 30, Variance Change 2020 2019 (In thousands) Products Revenues $ 164,865 $ 234,743 $ (69,878 ) (30 ) %Cost of products 148,562 222,974 (74,412 ) (33 ) %soldOperating 3,128 5,010 (1,882 ) (38 ) %expensesSelling, generaland 3,194 3,049 145 5 %administrativeexpensesDepreciation and 1,838 1,866 (28 ) (2 ) %amortization 8,143 1,844 6,299 342 %Other operatingincome (loss), (2 ) 16,168 (16,170 ) (100 ) %netOperating income $ 8,141 $ 18,012 $ (9,871 ) (55 ) %(loss) NGL sales volumes 6,952 6,269 683 11 %(Bbls)

Unallocated Selling, General and Administrative Expenses

Comparative Results of Operations for the Three and Nine Months Ended September 30, 2020 and 2019

Three Months Ended Percent Nine Months Ended Percent September 30, Variance Change September 30, Variance Change 2020 2019 2020 2019 (In thousands) (In thousands) Indirectselling,general and $ 4,523 $ 4,515 $ 8 ? % $ 13,256 $ 13,681 $ (425 ) (3 ) %administrativeexpenses

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 three and nine months ended September 30, 2020 and 2019.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) (in thousands)Net income (loss) $ (10,819 ) $ 13,250 $ (4,207 ) $ (181,588 )Less: Loss fromdiscontinued operations, ? ? ? 179,466 net of income taxesIncome (loss) from (10,819 ) 13,250 (4,207 ) (2,122 )continuing operationsAdjustments: Interest expense, net 12,943 11,973 32,245 40,630 Income tax expense 373 237 1,510 1,572 Depreciation and 15,276 15,009 45,858 44,997 amortizationEBITDA from Continuing 17,773 40,469 75,406 85,077 OperationsAdjustments: (Gain) loss on sale ofproperty, plant and (22 ) (16,302 ) 153 (13,949 )equipment, netGain on involuntaryconversion of property, (4,522 ) ? (4,522 ) ? plant and equipmentUnrealized mark-to-market 393 (2,602 ) (276 ) (529 )on commodity derivativesTransaction costsassociated with ? ? ? 224 acquisitionsNon-cash insurance related ? ? 250 500 accrualsLower of cost or market 35 104 370 407 adjustmentsLoss on exchange of senior 8,516 ? 8,516 ? unsecured notesGain on repurchase of ? ? (3,484 ) ? senior unsecured notesUnit-based compensation 361 349 1,070 1,064 Adjusted EBITDA from 22,534 22,018 77,483 72,794 Continuing OperationsAdjustments: Interest expense, net (12,943 ) (11,973 ) (32,245 ) (40,630 )Income tax expense (373 ) (237 ) (1,510 ) (1,572 )Amortization of debt (38 ) (77 ) (191 ) (230 )premiumAmortization of deferred 1,683 1,080 2,674 3,558 debt issuance costsDeferred income tax 184 244 1,202 1,100 expensePayments for plant (406 ) (375 ) (637 ) (5,117 )turnaround costsMaintenance capital (2,576 ) (2,389 ) (7,882 ) (8,876 )expendituresDistributable Cash Flow $ 8,065 $ 8,291 $ 38,894 $ 21,027 from Continuing Operations Loss from discontinuedoperations, net of income $ ? $ ? $ ? $ (179,466 )taxesAdjustments: Depreciation and ? ? ? 8,161 amortizationEBITDA from Discontinued ? ? ? (171,305 )OperationsLoss on sale of property, ? ? ? 178,781 plant and equipment, netNon-cash insurance related ? ? ? 3,213 accrualsEBITDA and Adjusted EBITDAfrom Discontinued ? ? ? 10,689 OperationsMaintenance capital ? ? ? (912 )expendituresDistributable Cash Flowfrom Discontinued $ ? $ ? $ ? $ 9,777 Operations