OKOTOKS, AB, Oct. 23, 2019 /CNW/ - (TSX:MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation"), one of Canada's largest suppliers of trucking and logistics services as well as specialized transportation services to the oil and natural gas industry in Canada, today reported its financial and operating results for the period ended September 30, 2019, with comparisons to the same period last year. Full details of our results may be found within our Third Quarter Interim Report, which is available on SEDAR at www.sedar.com or on our website at www.mullen-group.com.
"As frustrating as this market is, our financial results continue to be very impressive. We generated the best quarterly results of this fiscal year, cash flow was very strong and with our well capitalized balance sheet there is little doubt in my mind that we will continue to grow our business for many years. The acquisition opportunities are significant and I am confident that we will gain market share as our competition struggles within the current macro environment.
There is no denying the fact that freight demand has been softer this year than last year, especially as it relates to the movement of goods associated with capital investment within Canada, and that the oil and natural gas industry remains under duress but consumer demand remains solid as evidenced by another strong showing from our regional LTL Business Units. This is precisely why we have a diversified portfolio of companies within our group and why we have invested heavily in servicing the consumer through one of the most comprehensive terminal networks in Canada. LTL is the most stable part of our business because it is tied to the consumer. Through our expansive network we provide that critical "final mile" solution to hundreds of communities on a daily basis, absolutely a necessity in today's growing e-commerce world. It is also why we have a significant investment in real estate.
There was also a flurry of activity related to pipeline construction during the quarter, the majority related to the transportation of natural gas as companies position for the build out of LNG projects on Canada's west coast, the gateway to Asian markets for Canada's land locked natural gas. This is extremely positive and one of the few signs that there is some hope for Canada's energy producers," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
Key financial highlights for the third quarter of 2019 with comparison to 2018 are as follows:
HIGHLIGHTS | |||
(unaudited) ($ millions) | Three month periods ended September 30 | ||
2019 | 2018 | Change | |
$ | $ | % | |
Revenue | |||
Trucking/Logistics | 222.2 | 226.7 | (2.0) |
Oilfield Services | 103.9 | 114.5 | (9.3) |
Corporate and intersegment eliminations | (0.8) | (1.5) | - |
Total Revenue | 325.3 | 339.7 | (4.2) |
Operating income before depreciation and amortization (1) | |||
Trucking/Logistics | 35.8 | 36.0 | (0.6) |
Oilfield Services | 22.3 | 21.6 | 3.2 |
Corporate | (2.5) | (2.5) | - |
Total Operating income before depreciation and amortization (1) | 55.6 | 55.1 | 0.9 |
(1) Refer to notes section of Summary |
Mullen Group operates a diversified business model combined with a highly adaptable and variable cost structure. The financial results for the three month period ended September 30, 2019, are as follows:
Third Quarter Financial Results
Revenue decreased by $14.4 million, or 4.2 percent, to $325.3 million and is summarized as follows:
OIBDA increased by $0.5 million, or 0.9 percent, to $55.6 million and is summarized as follows:
Net income decreased by $1.4 million to $20.5 million, or $0.20 per Common Share due to:
A summary of Mullen Group's results for the three and nine month periods ended September 30, 2019, and 2018 are as follows:
SUMMARY | |||||||
(unaudited) ($ millions, except per share amounts) | Three month periods ended September 30 | Nine month periods ended September 30 | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||
$ | $ | % | $ | $ | % | ||
Revenue | 325.3 | 339.7 | (4.2) | 963.9 | 927.5 | 3.9 | |
Operating income before depreciation and | 55.6 | 55.1 | 0.9 | 151.0 | 137.3 | 10.0 | |
amortization(1) | |||||||
Net foreign exchange (gain) loss | (3.9) | (1.8) | 116.7 | (11.8) | 6.3 | (287.3) | |
Decrease (increase) in fair value of investments | 0.3 | 0.3 | - | 0.3 | 1.4 | (78.6) | |
Net income | 20.5 | 21.9 | (6.4) | 63.8 | 37.3 | 71.0 | |
Net Income - adjusted(2) | 16.5 | 20.5 | (19.5) | 42.6 | 45.1 | (5.5) | |
Earnings per share(3) | 0.20 | 0.21 | (4.8) | 0.61 | 0.36 | 69.4 | |
Earnings per share - adjusted(2) | 0.16 | 0.19 | (15.8) | 0.41 | 0.43 | (4.7) | |
Net cash from operating activities | 46.5 | 26.5 | 75.5 | 116.4 | 84.2 | 38.2 | |
Net cash from operating activities per share(3) | 0.44 | 0.25 | 76.0 | 1.11 | 0.81 | 37.0 | |
Cash dividends declared per Common Share | 0.15 | 0.15 | - | 0.45 | 0.45 | - |
Notes: | |
(1) | Operating income before depreciation and amortization ("OIBDA") is defined as net income before depreciation of right-of-use assets |
(2) | Net income - adjusted and earnings per share - adjusted are calculated by adjusting net income and basic earnings per share by the |
(3) | Earnings per share and net cash from operating activities per share are calculated based on the weighted average number of |
Non-GAAP Terms - Mullen Group reports on certain financial performance measures that are described and presented in order to provide |
Financial Position
The following summarizes our financial position as at September 30, 2019, along with some of the key changes that occurred during the third quarter of 2019:
About Mullen Group Ltd.
Mullen Group is a company that owns a network of independently operated businesses. The Corporation is recognized as one of the leading suppliers of trucking and logistics services in Canada and provides a wide range of specialized transportation and related services to the oil and natural gas industry in western Canada - two sectors of the economy in which Mullen Group has strong business relationships and industry leadership. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.
Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on SEDAR at www.sedar.com.
Disclaimer
This news release may contain forward-looking statements that are subject to risk factors associated with the oil and natural gas business and the overall economy. Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for "forward-looking" statements. Additional information regarding the forward-looking statements is found on pages 1, 56 and 57 of Mullen Group's Management's Discussion and Analysis.
Contact Information
Mr. Murray K. Mullen - Chairman of the Board, Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer
Mr. Richard J. Maloney - Senior Vice President
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296
SOURCE Mullen Group Ltd.