Mullen Group Ltd. Reports Record Third Quarter Financial Results

OKOTOKS, AB, Oct. 23, 2013 /CNW/ - (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 
                      September 30             ended September 30 
(unaudited) 
($ millions, except  2013  2012        Change      2013    2012  Change
per share amounts) 
                    $     $             %         $       $       % 
Revenue             374.0 335.4          11.5   1,069.8 1,081.5   (1.1) 
                                                                    
Operating income(    85.8  70.4          21.9     229.6   222.6     3.1
(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 share(  0.56  0.52           7.7      1.37    1.34     2.2
(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   Nine month periods ended
                            ended
                                                 September 30


                      ptember 30
(unaudited) 
($ 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. 
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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CO: Mullen Group Ltd.
ST: Alberta
NI: TRN ERN  
-0- Oct/23/2013 21:19 GMT