Mullen Group Ltd. Announces 2013 Business Plan, Increased Dividend and
Declaration of Dividend
OKOTOKS, AB, Jan. 15, 2013
OKOTOKS, AB, Jan. 15, 2013 /PRNewswire/ - (TSX: MTL) Mullen Group Ltd.
("Mullen Group" and/or the "Corporation") announced today its capital
expenditure plan for 2013 as approved by the Board of Directors. The Board of
Directors considered a wide range of economic issues, commodity pricing
predictions and forecasted drilling activity for the Western Canadian
Sedimentary Basin. The preliminary capital budget for 2013 is set at $80.0
million, which represents a decline of approximately $23.0 million from the
actual capital expended for 2012. Mullen Group expects to allocate $55.0
million to the Oilfield Services segment and $25.0 million to the
Trucking/Logistics segment. The majority of the funds will be used to acquire
new trucks, trailers and specialized equipment to support the on-going
operations of Mullen Group's Business Units. As the need arises, the Board of
Directors will consider additional capital requests throughout the year for
special projects, the purchase and development of land, or for acquisitions.
"I am pleased that the Board of Directors accepted the recommendation of our
Senior Executive Team. This capital will ensure that our Business Units can
remain competitive in what I can summarize as a very challenging market.
These investments, among other things, will enhance our business units'
service offerings to our customers, improve our direct operating expenses and
support our human resource strategy and recruiting initiatives", commented
Murray K. Mullen, Chairman and Chief Executive Officer.
Mullen Group is also pleased to announce that the Board of Directors has
approved an increase in the annual dividend to shareholders from $1.00 per
share to $1.20 per share. In addition, Mullen Group will commence paying the
dividend monthly as compared to quarterly. The Board of Directors of Mullen
Group also announced today that it has declared a dividend of $0.10 per Common
Share payable to the holders of record of Common Shares at the close of
business on January 31, 2013. The dividend will be paid on February 15,
2013. For Canadian resident shareholders, this dividend is designated as an
"eligible dividend" for purposes of the enhanced dividend tax credit rules
contained in the Income Tax Act (Canada) and any corresponding provincial and
territorial tax legislation.
The decision to increase the annual dividend and to pay it monthly was based
upon a number of factors including; the expectation that Mullen Group will
continue to generate funds from operations in excess of that required to pay
taxes, interest, as well as fund the on-going capital investments in the
organization; Mullen Group's strong balance sheet; and the emerging trend in
the capital markets towards sustainable yield investments.
"While we expect 2013 to be a challenging year with little opportunity to grow
our business due to economic and industry conditions, Mullen Group will
continue to generate significant cash from operations. The decision our Board
of Directors made today is just another example of how investors in the Mullen
Group are rewarded. We have a solid business model and a very strong balance
sheet - the combination which provides us with the confidence to increase the
dividend", added Mr. Mullen.
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. Mullen Group relies on litigation protection for "forward-looking"
statements. Mullen Group is a company that owns a network of independently
Today the Mullen Group is recognized as the largest provider of specialized
transportation and related services to the oil and natural gas industry in
western Canada and as one of the leading suppliers of trucking and logistics
services in Canada - two sectors of the economy in which Mullen Group has
strong business relationships and industry leadership. Mullen Group provides
management and financial expertise, technology and systems support 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.
SOURCE Mullen Group Ltd.
Mr. Murray K. Mullen - Chairman of the Board and Chief Executive Officer
Mr. Stephen H. Lockwood - Co-Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
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