Martin Midstream Partners L.P. (MMLP) has reported 14.65 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $13.58 million, or $0.36 a share in the quarter, compared with $15.91 million, or $0.33 a share for the same period last year. Revenue during the quarter grew 12.29 percent to $253.32 million from $225.60 million in the previous year period. Gross margin for the quarter contracted 523 basis points over the previous year period to 37.19 percent. Total expenses were 90.63 percent of quarterly revenues, up from 89.21 percent for the same period last year. That has resulted in a contraction of 141 basis points in operating margin to 9.37 percent.
Operating income for the quarter was $23.75 million, compared with $24.34 million in the previous year period.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, “We continue to execute on our stated path of improved distribution coverage and balance sheet leverage; and we delivered strong first quarter 2017 results, including net income of $13.6 million. We followed up our highest distribution coverage quarter ever at the end of 2016 with another strong cash flow and distribution coverage quarter. Based on actual distributions paid during the quarter, we generated a 1.68 times coverage ratio.
Operating cash flow improves
Martin Midstream Partners L.P. has generated cash of $56.53 million from operating activities during the quarter, up 24.76 percent or $11.22 million, when compared with the last year period. The company has spent $25.92 million cash to meet investing activities during the quarter as against cash outgo of $20.33 million in the last year period. It has incurred net capital expenditure of $6.39 million on net basis during the quarter, down 68.56 percent or $13.94 million from year ago period.
The company has spent $30.58 million cash to carry out financing activities during the quarter as against cash outgo of $24.96 million in the last year period.
Cash and cash equivalents stood at $0.04 million as on Mar. 31, 2017, down 15.22 percent or $0.01 million from $0.05 million on Mar. 31, 2016.
Working capital increases
Martin Midstream Partners L.P. has recorded an increase in the working capital over the last year. It stood at $54.90 million as at Mar. 31, 2017, up 21.67 percent or $9.78 million from $45.13 million on Mar. 31, 2016. Current ratio was at 1.55 as on Mar. 31, 2017, up from 1.50 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 3 days for the quarter from 27 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 51 for the same period last year.
Debt comes down
Martin Midstream Partners L.P. has recorded a decline in total debt over the last one year. It stood at $750.74 million as on Mar. 31, 2017, down 14.07 percent or $122.88 million from $873.61 million on Mar. 31, 2016. Martin Midstream Partners Lp has recorded a decline in long-term debt over the last one year. It stood at $750.74 million as on Mar. 31, 2017, down 14.07 percent or $122.88 million from $873.61 million on Mar. 31, 2016. Total debt was 62.09 percent of total assets as on Mar. 31, 2017, compared with 65.05 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
