OKOTOKS, AB, July 21, 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 period ended June 30, 2021, with comparisons to the same period last year. Full details of our results may be found within our Second Quarter Interim Report, which is available on SEDAR at www.sedar.com or on our website at www.mullen-group.com.
"We just completed one of our most active quarters in the history of our company, finalizing the acquisition of five real quality businesses. These are strategic fits in our expanding network, strengthening our Canadian less-than-truckload service offering and logistics capacities, along with our first investment in the very large U.S. 3PL market. Collectively, these businesses will add incremental annualized revenue in excess of $400.0 million, putting us well ahead of our long-term plans to achieve $2.0 billion in revenue per year, along with ensuring we maintain our position as one of the largest and most respected logistics providers in North America. We welcome all of the new dedicated employees, dedicated contractors and partners to our growing organization, a company that values its people, focuses on a quality and safe work environment for all, and invests in leading edge technology solutions.
"From a positioning perspective, these are great acquisitions especially given the current market context, where health restrictions are being lifted and economic expansion is poised to return. June was the first full month in quite some time that freight demand was strong across virtually all business lines. Consumer demand, which has been one of the steadiest segments of the economy, continued at a robust pace throughout the quarter, and finally we witnessed strength in the demand for "freight of all kinds" beginning in June, a sign of a more positive outlook for business investment and capital deployment. Acquisitions along with a recovering economy were the primary reasons for the improved financial performance year over year, a trend we believe will continue as the year progresses," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
Key financial highlights for the second quarter of 2021 with comparison to 2020 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 generates cash in excess of its operating needs through a diversified business model combined with a highly adaptable and variable cost structure. The financial results for the three month period ended June 30, 2021, are as follows:
Second Quarter Financial Results
Revenue increased by $55.0 million, or 21.4 percent, to $312.5 million and is summarized as follows:
OIBDA increased by $4.0 million, or 7.3 percent, to $59.0 million and is summarized as follows:
Net income decreased by $1.3 million to $21.7 million, or $0.23 per Common Share due to:
A summary of Mullen Group's results for the three and six month periods ended June 30, 2021, and 2020 are as follows:
($ millions, except per share amounts)
Three month periods ended
Six month periods ended
Operating income before depreciation and amortization(1)
Net foreign exchange (gain) loss
Decrease (increase) in fair value of investments
Net Income - adjusted(2)
Earnings per share(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 change in fair value of investments and the gain on contingent consideration.
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.
The following summarizes our financial position as at June 30, 2021, along with some key changes that occurred during the second quarter of 2021:
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, 57 and 58 of Mullen Group's Management's Discussion and Analysis.
SOURCE Mullen Group Ltd.