Mullen Group Ltd. Reports Record Third Quarter Financial Results

       Mullen Group Ltd. Reports Record Third Quarter Financial Results

PR Newswire

OKOTOKS, AB, Oct. 23, 2013

OKOTOKS, AB,  Oct.  23,  2013  /PRNewswire/ -  (TSX:MTL)  Mullen  Group  Ltd. 
("Mullen Group" and/or the "Corporation")  is pleased to report its  financial 
and  operating  results  for  the  period  ended  September  30,  2013,   with 
comparisons to the same period last year.

For the three month  period ended September 30,  2013, Mullen Group  generated 
consolidated revenue of $374.0 million, operating income of $85.8 million  and 
earnings per share of $0.56, which are all record results when compared to any
previous third  quarter.  Mullen  Group generated  net  cash  from  operating 
activities of $54.3 million,  which was used, among  other things, to  acquire 
net property, plant  and equipment of  $30.0 million, pay  dividends of  $27.1 
million and pay interest obligations of $3.5 million.

Mullen Group's consolidated revenue of $374.0 million was an increase of $38.6
million, or 11.5  percent, from the  $335.4 million generated  in 2012.  The 
majority of this increase in revenue was directly attributable to the Oilfield
Services segment that contributed  revenue of $229.0  million, an increase  of 
$26.1 million from 2012, due to an increase in demand for services tied to the
build out of new pipeline  capacity, other infrastructure related projects  in 
western Canada and the hauling of  heavy crude oil in the Lloydminster  region 
as well as a moderate increase  in services that support drilling activity  in 
the  western  Canada  sedimentary   basin.  The  Trucking/Logistics   segment 
contributed revenue of $145.6 million, which was an increase of $11.9  million 
over the prior year period, which was primarily due to the incremental revenue
generated from the acquisition of Jay's Moving & Storage Ltd. ("Jay's").

Mullen Group's operating income increased  by $15.4 million, or 21.9  percent, 
to $85.8 million from the $70.4  million generated in 2012. Operating  income 
in the Oilfield Services segment accounted for $13.8 million of the  increase, 
the Trucking/Logistics segment accounted for $0.5 million and Corporate  costs 
declined by $1.1 million.

"Overall, we are very  pleased with Mullen Group's  performance for the  three 
month period ended September  30. As expected,  Premay Pipeline Hauling  L.P. 
reported strong  results  for the  quarter  as did  Canadian  Dewatering  L.P. 
("Canadian Dewatering"),  which  is  once  again fully  focused  on  its  core 
business of  large industrial  pump rentals  and developing  water  management 
solutions for the energy, industrial and municipal sectors. In addition,  our 
businesses that support drilling activity  in northwest Alberta and  northeast 
British Columbia  reported  slight increases  in  revenue as  activity  levels 
started to  show signs  of marginal  improvement  near the  last half  of  the 
quarter. Heavy Crude Hauling  L.P. also reported  increased revenue from  the 
major fluid  hauling contract  awarded  earlier this  year. The  increase  in 
revenue within our  Trucking/Logistics segment was  primarily attributable  to 
the acquisition of Jay's earlier this  year, while the combined effect of  all 
the other operating  entities remained  relatively flat,  which is  consistent 
with a slow  growth economy," stated  Mr. Stephen H.  Lockwood, President  and 
Co-Chief Executive Officer.

In the  third quarter  of 2013,  Mullen Group  generated net  income of  $51.2 
million or $0.56  per share,  an increase of  $8.3 million,  or 19.3  percent, 
compared to  $42.9 million  or $0.52  per  share in  2012. The  $8.3  million 
increase in  net  income was  mainly  attributable to  Mullen  Group's  strong 
operating performance, which contributed $15.4 million of additional operating
income. This  increase  was  partially  offset by  a  $3.1  million  negative 
variance in unrealized foreign exchange  and a $1.1 million negative  variance 
in the fair  value of investments.  Adjusting Mullen Group's  net income  and 
earnings per share to eliminate the impact of unrealized foreign exchange  and 
change in the  fair value  of investments results  in adjusted  net income  of 
$43.1 million and adjusted earnings per share of $0.47 for 2013 as compared to
$30.8 million and $0.37  per share in  2012, respectively. These  adjustments 
more clearly reflect earnings from an operating perspective.

Mullen Group's consolidated revenue in the first nine months of 2013 decreased
by $11.7 million, or 1.1 percent, to $1,069.8 million as compared to $1,081.5
million in 2012. The majority of this decrease in revenue, specifically $29.8
million, was directly attributable to  the reduction in revenue from  Canadian 
Dewatering, as  a result  of its  completion of  the non-recurring  Thin  Fine 
Tailings  ("TFT")  barge  system  project.  On  a  comparative  basis,  after 
adjusting for  the  non-recurring TFT  barge  system project  revenue,  Mullen 
Group's revenue  from  its  core  business increased  $18.1  million,  or  1.7 
percent. Operating income increased  to $229.6 million,  up 3.1 percent  from 
$222.6 million  in 2012.  Net income  increased to  $123.0 million,  up  12.7 
percent from $109.1 million in 2012.

"At the beginning of 2013 it was our view that the last half of 2013 would  be 
a little better than the  first half of 2013 owing  largely to what we saw  as 
improving industry fundamentals within the oil  and natural gas sector as  the 
year progressed. Despite  a slow  growth economy,  it would  appear that  our 
projections are being validated as Mullen Group has been the benefactor of the
build out of Canada's transmission pipeline systems; the continued development
of Canada's oil sands and heavy oil resources; and the continued deployment of
capital by our  customers to  the Deep  Basin, Montney  and Duvernay  resource 
plays," stated Mr. Murray  K. Mullen, Chairman  and Chief Executive  Officer. 
"Moreover, Mullen Group's record operating results in the third quarter  speak 
to the continued  execution of our  strategy by operating  a diverse group  of 
decentralized,  self-managed  business  units;   the  continuous  pursuit   of 
operational excellence;  and  a  disciplined approach  to  the  deployment  of 
capital. Specifically,  over the  past  two years  we have  deployed  roughly 
$200.0 million of capital to ensure our existing operating businesses have the
best equipment available to operate  in this very competitive environment  and 
it would seem that our strategy is paying off," added Mr. Mullen.

A summary of Mullen Group's results for the three and nine month periods ended
September 30,  2013,and 2012,  along with  revenue and  operating results  by 
segment are as follows:

                                               
SUMMARY              Three month periods ended         Nine month periods
(unaudited)                 September 30               ended September 30
($ millions, except
per share amounts)       2013      2012   Change       2013     2012   Change
                           $         $        %          $        $        %
Revenue                 374.0     335.4     11.5    1,069.8  1,081.5    (1.1)
                                                                      
Operating                85.8      70.4     21.9      229.6    222.6      3.1
income^(1)
Unrealized foreign      (5.1)     (8.2)   (37.8)        8.3    (7.9)  (205.1)
exchange (gain)
loss
Decrease (increase)     (4.3)     (5.4)   (20.4)     (25.1)      0.7  3,685.7
in fair value of
investments
Net Income               51.2      42.9     19.3      123.0    109.1     12.7
Net Income -             43.1      30.8     39.9      109.5    103.3      6.0
adjusted^(2)
Earnings per             0.56      0.52      7.7       1.37     1.34      2.2
share^(3)
Earnings per share       0.47      0.37     27.0       1.22     1.27    (3.9)
-adjusted^(2)
Net cash from            54.3      74.5   (27.1)      146.8    212.2   (30.8)
operating
activities
Net cash from            0.60      0.90   (33.3)       1.64     2.60   (36.9)
operating
activities per
share^(3)
Cash dividends           0.30      0.25     20.0       0.90     0.75     20.0
declared per Common
Share
Notes:
(1)Operating income is defined as net income before depreciation on property,
plant and equipment, amortization on intangible assets,
finance costs, unrealized foreign exchange gains and losses, other (income)
expense and income taxes.
(2)Net income - adjusted and earnings per share - adjusted are calculated by
adjusting net income and basic earnings per share by the
amount of any unrealized foreign exchange gains and losses and the change in
fair value of investments.
(3)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.

Operating income, 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.

                                                 
SEGMENTED RESULTS         Three month periods ended  Nine month periods ended
(unaudited)                     September 30               September 30
($ millions)                  2013    2012   Change      2013     2012 Change
                                $       $        %         $        $      %
Revenue                                                                
    Oilfield Services       229.0   202.9     12.9     660.2    687.5  (4.0)
    Trucking/Logistics      145.6   133.7      8.9     412.0    398.0    3.5
    Corporate                 0.3     0.3        -       0.6      0.8      -
Intersegment eliminations                                              
    Oilfield Services       (0.2)   (0.6)        -     (0.9)    (1.5)      -
    Trucking/Logistics      (0.7)   (0.9)        -     (2.1)    (3.3)      -
Total                        374.0   335.4     11.5   1,069.8  1,081.5  (1.1)
Operating Income                                                       
    Oilfield Services        60.2    46.4     29.7     161.8    154.2    4.9
    Trucking/Logistics       26.7    26.2      1.9      70.9     72.1  (1.7)
    Corporate               (1.1)   (2.2)        -     (3.1)    (3.7)      -
Total                         85.8    70.4     21.9     229.6    222.6    3.1
                                                

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  operated 
businesses. 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.

Contact:

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
Telephone: 403-995-5200
Fax: 403-995-5296
 
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