Mullen Group Ltd. Reports Solid Third Quarter Financial Results including Record Quarterly Revenues
OKOTOKS, Alberta, Oct. 24, 2024 (GLOBE NEWSWIRE) -- (TSX:MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation"), one of Canada's largest logistics providers today reported its financial and operating results for the period ended September 30, 2024, with comparisons to the same period last year. Full details of the results may be found within our Third Quarter Interim Report, which is available on the Corporation's issuer profile on SEDAR+ at www.sedarplus.ca or at www.mullen-group.com.
"An excellent quarter for our group even though the economy remains in neutral. Acquisitions continue to drive growth, however, I was really pleased with the performance of our Business Units, where the real difficult work is handled. All of our teams did a great job navigating the difficult market and controlling costs. As a result, we generated record revenues and near record operating profitability," commented Mr. Murray K. Mullen, Chair and Senior Executive Officer.
"This is a very frustrating time for anyone involved in the private sector. There is limited growth in most verticals, which is contributing to ultra competitive markets. It is within this backdrop that the Mullen Group stands apart from most of our peers. We have a long history of acquiring good companies at a fair price. Of equal importance is that we have the balance sheet to execute the deal. But we will not lose our discipline just because we can, choosing to only pursue transactions that add value to Mullen Group shareholders. After 75 years in business, we know how to handle difficult and challenging markets," added Mr. Mullen.
Financial Highlights
(unaudited)($ millions, except per share amounts)
Three month periods endedSeptember 30
Nine month periods endedSeptember 30
2024
2023
Change
2024
2023
Change
$
$
%
$
$
%
Revenue
532.0
504.0
5.6
1,490.2
1,496.1
(0.4
)
Operating income before depreciation and amortization
95.3
88.6
7.6
247.2
249.0
(0.7
)
Net foreign exchange (gain) loss
(2.8
)
(0.2
)
1,300.0
(2.4
)
(3.4
)
(29.4
)
Decrease (increase) in fair value of investments
-
(0.2
)
(100.0
)
(0.3
)
-
-
Net income
38.3
39.1
(2.0
)
93.4
107.3
(12.9
)
Net Income - adjusted1
35.8
38.0
(5.8
)
91.1
104.0
(12.4
)
Earnings per share - basic
0.44
0.44
-
1.06
1.19
(10.9
)
Earnings per share - diluted
0.41
0.42
(2.4
)
1.02
1.13
(9.7
)
Earnings per share - adjusted1
0.41
0.43
(4.7
)
1.04
1.15
(9.6
)
Net cash from operating activities
66.2
49.6
33.5
184.7
171.8
7.5
Net cash from operating activities per share
0.75
0.56
33.9
2.10
1.90
10.5
Cash dividends declared per Common Share
0.20
0.18
11.1
0.56
0.54
3.7
1 Refer to the section entitled "Non-IFRS Financial Measures".
Third Quarter Highlights
Generated record quarterly revenue of $532.0 million - acquisitions drove revenue growth while our diversified business model led to greater demand for certain services within the S&I segment. These increases were somewhat offset by the completion of major capital construction projects including the Trans Mountain Expansion Project ("TMX") and the Coastal GasLink Pipeline Project ("CGL"), from demarketing some underperforming LTL business, a lack of private sector capital investment in Canada, competitive pricing pressures in certain markets due to excess capacity in the freight markets, lower freight demand as manufacturers continued to be reluctant to increase inventory levels, and a decline in fuel surcharge revenue.
Operating income before depreciation and amortization ("OIBDA") of $95.3 million - up 7.6 percent from prior year on $6.4 million of incremental OIBDA from acquisitions and improved results in the LTL segment and the L&W segment (excluding acquisitions). These increases were somewhat offset by lower OIBDA in the S&I and US 3PL segments and from higher Corporate costs.
Operating margin1 improved to 17.9 percent from 17.6 percent on lower direct operating expenses ("DOE") as a percentage of consolidated revenue despite more competitive pricing conditions in certain markets and a reduction in higher margin specialized business. Selling and administrative ("S&A") expenses increased as a percentage of consolidated revenue resulting from a negative variance in foreign exchange and higher costs experienced at our most recent acquisition, ContainerWorld Forwarding Services Inc.
Third Quarter Commentary
(unaudited)($ millions)
Three month periods endedSeptember 30
2024
2023
Change
$
$
%
Revenue
Less-Than-Truckload
188.7
194.2
(2.8
)
Logistics & Warehousing
168.9
137.1
23.2
Specialized & Industrial Services
131.8
125.4
5.1
U.S. & International Logistics
45.7
48.8
(6.4
)
Corporate and intersegment eliminations
(3.1
)
(1.5
)
-
Total Revenue
532.0
504.0
5.6
Operating income before depreciation and amortization
Less-Than-Truckload
35.7
34.5
