OKOTOKS, AB, Feb. 10, 2021 /CNW/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation"), one of Canada's largest logistics providers with a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation, today reported its financial and operating results for the quarter and year ended December 31, 2020, with comparisons to the same period last year. Full details of our results may be found within our 2020 Annual Financial Review, which is available on SEDAR at www.sedar.com or on our website at www.mullen-group.com.
"Our results for 2020 need to be reviewed within the context of the outbreak of COVID-19. Business has been interrupted with some sectors of the economy bearing the brunt of the government mandated closures. The supply chain has been tested to the limit due to bottlenecks, constraints and changes in consumer buying habits, the most notable being an explosion in E-Commerce transactions. Yet through it all, our business performed remarkably well as evidenced by our fourth quarter and full year results. It is during disruptive times like this past year that having a diversified business model, both by service offering and geographic coverage, is validated and becomes more appreciated. But the real credit for our strong performance last year goes to our 34 independent managed Business Units and the nearly 6,000 hard-working essential workers that somehow made it all happen. I couldn't be prouder of their professionalism, their support of each other and for keeping everyone safe," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
"2020 was a different kind of year but it was one that I think our shareholders will consider as pretty good. Our results were acceptable under the circumstances with operating profitability up year over year along with one of the strongest cash generating years we have ever had. We executed the share buyback program to near perfection, repurchasing 8.0 million Common Shares at an average price of $6.70. And with over $100.0 million of cash on the balance sheet, we are well positioned to capitalize on new opportunities or to meet the potential challenges that a lingering COVID-19 might bring. And while we are hopeful that this virus can be brought under control sooner rather than later, along with a return to something we can say is normal, the truth is no one knows for sure. So, we will keep one eye open for a good acquisition, one that makes financial sense and can provide a future platform for growth, but the other eye keenly focused on what we see in front of us, including working alongside and supporting our well managed Business Units. Positioning this organization to be successful over the long term is my number one objective," added Mr. Mullen.
Key financial highlights for the fourth quarter of 2020 with comparison to 2019 are as follows:
Three month periods ended
Logistics & Warehousing
Specialized & Industrial Services
Corporate and intersegment eliminations
Operating income before depreciation and amortization (1)
Logistics & Warehousing
Specialized & Industrial Services
Total Operating income before depreciation and amortization (1)
(1) Refer to notes section of Summary
Mullen Group operates a diversified business model which is highly correlated to consumer spending combined with a highly adaptable and variable cost structure. The financial results for the three month period ended December 31, 2020, are as follows:
Fourth Quarter Financial Results
Revenue decreased by $16.9 million, or 5.4 percent, to $297.7 million and is summarized as follows:
OIBDA increased by $2.3 million, or 4.6 percent, to $52.2 million and is summarized as follows:
Net income increased by $1.7 million to $10.1 million, or $0.10 per Common Share due to:
A summary of Mullen Group's results for the quarter and year ended December 31, 2020, are as follows:
($ millions, except per share amounts)
Three month periods ended
Twelve month periods ended
Operating income before depreciation and amortization(1)
Net foreign exchange loss (gain)
Decrease (increase) in fair value of investments
Net Income - adjusted(2)
Earnings per share - basic and diluted(3)
Earnings per share - adjusted(2)
Net cash from operating activities
Net cash from operating activities per share(3)
Cash dividends declared per Common Share
Operating income before depreciation and amortization ("OIBDA") is defined as net income before depreciation of right-of-use assets and of property, plant and equipment, amortization of intangible assets, finance costs, net foreign exchange gains and losses, other (income) expense and income taxes.
Net income - adjusted and earnings per share - adjusted are calculated by adjusting net income and basic earnings per share by the amount of any net foreign exchange gains and losses, the gain on fair value of equity investment and the change in fair value of investments.
Earnings per share and net cash from operating activities per share are calculated based on the weighted average number of Common Shares outstanding for the period.
Non-GAAP Terms - Mullen Group reports on certain financial performance measures that are described and presented in order to provide shareholders and potential investors with additional measures to evaluate Mullen Group's ability to fund its operations and information regarding its liquidity. In addition, these measures are used by management in its evaluation of performance. These financial performance measures ("Non-GAAP Terms") are not recognized financial terms under Canadian generally accepted accounting principles ("Canadian GAAP"). For publicly accountable enterprises, such as Mullen Group, Canadian GAAP is governed by principles based on IFRS and interpretations of IFRIC. Management believes these Non-GAAP Terms are useful supplemental measures. These Non-GAAP Terms do not have standardized meanings and may not be comparable to similar measures presented by other entities. Specifically, operating margin, net income - adjusted and earnings per share - adjusted are not recognized terms under IFRS and do not have standardized meanings prescribed by IFRS. Management believes these measures are useful supplemental measures. Investors should be cautioned that these indicators should not replace net income and earnings per share as an indicator of performance.
Year End Financial Results
Revenue decreased by $114.2 million, or 8.9 percent, to $1,164.3 million and is summarized as follows:
OIBDA increased by $16.7 million, or 8.3 percent, to $217.6 million and is summarized as follows:
Net income decreased by $8.2 million to $64.0 million, or $0.64 per Common Share due to:
The following summarizes our financial position as at December 31, 2020, along with some key changes that occurred during the fourth quarter of 2020:
About Mullen Group Ltd.
Mullen Group is one of Canada's largest logistics providers. Our network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation. In addition, we provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. 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.
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
Ms. Joanna K. Scott - Corporate Secretary & Vice President, Corporate Services
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
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, 84, and 85 of Mullen Group's Management's Discussion and Analysis.
SOURCE Mullen Group Ltd.