OKOTOKS, AB, Jan. 16, 2023 /CNW/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation"), one of North America's largest logistics providers announced today that the budget and business plan for 2023 has been approved by the Board of Directors ("Board").
"Today we provide our shareholders and interested investors with an outline of our expectations and priorities for 2023. As we enter the new year there is a higher level of uncertainty due to policy changes by banking and regulatory authorities, as they attempt to slow economic growth and bring inflationary pressures down from the current unsustainable levels. We have factored a slowdown in global trade and consumer spending into this year's plan," commented Mr. Murray K. Mullen, Senior Executive Officer and Chair.
"Throughout my career one of the most valuable lessons I have learned is that predicting future outcomes is risky and one should always be prepared for the unexpected. Last year, for example, the freight market reached levels that stretched supply chain capacities, resulting in higher freight prices as customers struggled to move stranded freight. This combination of strong freight volumes and pricing increases was a contributing factor in our record results. By the end of the year, however, the supply chain issues began to normalize, freight demand softened, and competition intensified. And while we have not finalized our fourth quarter results, early indications suggest revenues will reach $500.0 million, although margins have softened. The final results will be available February 9th after the audit has been completed.
"Entering 2023 there are signs that higher interest rates are taking a toll on overall economic activity, a reality we have incorporated into our budget and business plan. As such, it is reasonable to assume that our 2022 results cannot be replicated in 2023 by our current Business Units. Nevertheless, in our diversified business model we are not overly leveraged to any single vertical or segment in the economy, providing our organization with an opportunity to have another very good year. Furthermore, we used 2022 to strengthen the balance sheet, placing our organization in an excellent position to take advantage of weakness in the markets to gain market share or pursue acquisitions. Last year provided our Business Units with the opportunity to raise prices, this year we will focus on costs and be on the look out for acquisitions," added Mr. Mullen.
HIGHLIGHTS OF 2023 BUSINESS PLAN AND BUDGET
Logistics & Warehousing
Specialized & Industrial Services
U.S. & International Logistics
One of the main components of our 2023 Business Plan is to return cash to shareholders by way of monthly dividends and a share buyback plan. The Board has determined that the appropriate allocation for 2023 will be:
In order to achieve the operating results outlined in the 2023 Budget, we have established and will be focusing on the following priorities:
Mullen Group is one of North America'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, third-party logistics 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 the Corporation's issuer profile on SEDAR at www.sedar.com.
Mr. Murray K. Mullen - Chair, Senior Executive Officer and President
Mr. Richard J. Maloney - Senior Operating Officer
Mr. Carson P. Urlacher - Senior Accounting Officer
Ms. Joanna K. Scott - Senior Corporate Officer
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Mullen Group may make statements in this news release that reflect its current beliefs and assumptions and are based on information currently available to it and contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. This news release may contain forward-looking statements that are subject to risk factors associated with the overall economy and the oil and natural gas business. These forward-looking statements relate to future events and Mullen Group's future performance. All forward looking statements contained herein that are not clearly historical in nature constitute forward-looking statements, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", "aim", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. Such forward-looking statements represent Mullen Group's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements involve known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Mullen Group believes that the expectations reflected in these forward-looking statements are reasonable; however, undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, forward-looking statements include but are not limited to the following: (i) our financial goals and expectations for 2023; (ii) our capital expenditure plans for 2023; (iii) our 2022 results cannot be replicated in 2023 by our current Business Units; (iv) our fourth quarter revenues will reach $500.0 million although margins have softened; (v) our organization has an opportunity to have another very good year; (vi) our strategic initiatives for 2023 including but not limited to potential acquisitions both strategic and tuck-in; and (vii) our plan to renew our normal course issuer bid. These forward-looking statements are based on certain assumptions and analysis made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) Mullen Group will generate sufficient cash in excess of our financial obligations to support the dividend; (ii) Mullen Group's Business Units will require capital to support their ongoing operations and growth opportunities and that we will generate sufficient cash in excess of our financial obligations to support the capital expenditures; (iii) Mullen Group's expectation as to how our current Business Units will perform in 2023; (iv) Mullen Group's expectation as to how our current Business Units performed in fourth quarter 2022; (v) Mullen Group's view that we have a diversified business model and we are not overly leveraged to any single vertical or segment in the economy; (vi) Mullen Group will have ample liquidity to pursue acquisitions that are synergistic and accretive, if available; (vii) Mullen Group will have an opportunity to monetize non-core assets, deploy technology and optimize operations of our Business Units; and (viii) Mullen Group's plan to renew its normal course issuer bid will be approved by regulatory authorities. For further information on any strategic, financial, operational and other outlook on Mullen Group's business please refer to Mullen Group's Management's Discussion and Analysis available for viewing on Mullen Group's issuer profile on SEDAR at www.sedar.com. Additional information on risks that could affect the operations or financial results of Mullen Group may be found under the heading "Principal Risks and Uncertainties" starting on page 69 of the 2021 Annual Financial Review as well as in reports on file with applicable securities regulatory authorities and may be accessed through Mullen Group's issuer profile on the SEDAR website at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements 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 statements, 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.
SOURCE Mullen Group Ltd.