Revenue during the quarter dropped 22.78 percent to $174.54 million from $226.02 million in the previous year period. Gross margin for the quarter expanded 493 basis points over the previous year period to 45.16 percent. Total expenses were 94.74 percent of quarterly revenues, up from 94.68 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 5.26 percent.

Operating income for the quarter was $9.18 million, compared with $12.03 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $33.31 million compared with $41.44 million in the prior year period. At the same time, adjusted EBITDA margin improved 75 basis points in the quarter to 19.08 percent from 18.34 percent in the last year period.

Ruben Martin, president and chief executive officer of Martin Midstream GP LLC, the general partner of the Partnership said, “As we announced last week, we have outlined a path forward to improve our leverage profile and distribution coverage ratio. We believe the divestiture of our Corpus Christi terminalling assets is a solid first step to lowering our cost of capital and returning to a growth trajectory. We expect the sale to close by year-end and receive net proceeds of approximately $93 million.

The company has spent $10.07 million cash to meet investing activities during the nine month period as against cash inflow of $1.36 million in the last year period It has incurred net capital expenditure of $10.07 million on net basis during the nine month period, down 74.75 percent or $29.82 million from year ago period.

The company has spent $51.68 million cash to carry out financing activities during the nine month period as against cash outgo of $114.37 million in the last year period.

Working capital increases sharply
Martin Midstream Partners L.P has recorded an increase in the working capital over the last year. It stood at $126.40 million as at Sep. 30, 2016, up 75.37 percent or $54.32 million from $72.07 million on Sep. 30, 2015. Current ratio was at 2.11 as on Sep. 30, 2016, up from 1.70 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 39 days for the last year period. Days sales outstanding went up to 37 days for the quarter compared with 33 days for the same period last year.

Days inventory outstanding has decreased to 52 days for the quarter compared with 57 days for the previous year period. At the same time, days payable outstanding went up to 68 days for the quarter from 52 for the same period last year.