OKOTOKS, AB, June 11, 2020 /PRNewswire/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation"), one of the leading suppliers of trucking and logistics services in Canada providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation, today provided a mid-quarter update due to the unprecedented economic circumstances associated with COVID-19.
"In the midst of one of the largest health care crisis ever witnessed, large portions of the economy were ordered to 'shutdown' leading to massive layoffs, something we all hope will only be temporary, as well as significant declines in economic activity. Our business was not spared over the course of the last two months as the demand for logistics services slowed. However, due to the diversity of our service offerings along with the fact that trucking and logistics was deemed an essential service by all government bodies we maintained a healthy level of business activity. Consolidated revenues for the last two months are trending down by 22.0 percent year over year, which appears to be consistent with the vast majority of our competitors and the railways, indicating that our second quarter revenues are now on track to be in the range of $240.0-$260.0 million. On the margin front the news is even better with earnings from operations1 declining by approximately 15.0 percent. We are seeing the benefits of adapting quickly and decisively to the COVID-19 pandemic. Not only did our Business Units implement effective measures at controlling costs, several actually gained market share and improved margins. As a result, there is a good chance that earnings from operations1 for the quarter will be approximately $40.0 million. In addition, the wage subsidy programs announced by the Canadian Government should generate an additional $10.0 million, all of which suggests our overall profitability levels could be very similar to last year," commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
"Clearly COVID-19 will be with us for a while however, the economy is in the early stages of 'opening up'. Consumers are once again active, plants and factories are reopening which points to a recovery in the demand for logistics and trucking services. And to this point we have already recalled about 20.0 percent of our workforce from temporary layoff. It certainly appears we have weathered the worst of this crisis and we are very well positioned to capitalize on future opportunities. Our current cash position stands at $115.0 million, up quite nicely since the end of the last quarter," added Mr. Mullen.
We have scheduled a conference call and webcast as follows:
June 12, 2020
12:00 p.m. ET
Conference Call Dial-in:
1-800-319-4610 or 1-855-658-2585 (for participants in North America)
416-915-3239 (Toronto or Overseas participants)
Earnings from operations means operating income before depreciation and amortization which 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. Please refer to our Annual Financial Review dated February 12, 2020 available at www.mullen-group.com or www.sedar.com.
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 providing 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 oil and natural gas industry in western Canada, 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 contains certain forward-looking statements, forward-looking information and future-oriented financial information (collectively referred to as "forward-looking information") within the meaning of applicable securities legislation, about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although Mullen Group believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information as actual results may differ materially from those expressed or implied. Forward-looking information in this document is identified by words such as "anticipate", "committed", "continue", "expect", "focus", "forecast", "on track", "opportunity", "outlook", "plan", "position", "potential", "priority", "promising", "target", "good chance", "will" or similar expressions and includes suggestions of future outcomes, including statements about: future revenues, future earnings from operations, benefits of government wage subsidy programs and capitalizing on future opportunities.
Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Mullen Group and others that apply to the industry generally. These forward-looking information and 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's expectation as to how our current Business Units will perform in the second quarter of 2020; and (ii) that the Corporation will qualify and be approved for the Canada Emergency Wage Subsidy.
Additional information about risks, assumptions, uncertainties and other factors that could influence Mullen Group's actual results is provided in Mullen Group's MD&A for the year ended December 31, 2019 and its MD&A for the period ended March 31, 2020 as well as its Annual Information Form for the year ended December 31, 2019 (all available on SEDAR at www.sedar.com and Mullen Group's website at www.mullen-group.com).
Readers are cautioned that the foregoing lists are not exhaustive and are current only to the date hereof and prepared solely for the purpose of providing our reasonable estimates and expectations for the time period indicated. This forward-looking information may not be appropriate for other purposes. Events or circumstances could cause Mullen Group's actual results to differ materially from those estimated, projected, expressed, or implied by the forward-looking information. Mullen Group undertakes no obligation to update or revise any forward-looking information except as required by law. Mullen Group relies on litigation protection for forward-looking information.
SOURCE Mullen Group Ltd.