Mullen Group (MTL-T) Targets 10.0 percent Growth in 2025
Dec 9, '24 - NR
Mullen Group announced today its plan for 2025 has been approved by the Board of Directors (" Board ").
" Establishing growth targets for 2025 assumes we find acquisitions that fit into our current network, which based upon our long history of completing successful acquisitions should not be difficult along with the fact that we will enter the new year with a strong balance sheet, cash of around $125.0 million and untapped bank lines of $525.0 million. We also will need to see the Canadian economy continue to expand, even if the growth is modest, " commented Mr. Murray K. Mullen, Chair and Senior Executive Officer.
" The Board has approved the 2025 Plan and a capital expenditure of $100.0 million to ensure our current Business Units remain best-in-class and can meet the service requirements of our customers. In addition, our shareholders can expect an annual dividend of $0.84 per Common Share. These are fundamentals that have served our shareholders very well over the years – Invest in our core business and reward shareholders with a meaningful dividend. This will not change in 2025, " added Mr. Mullen.
2025 PLAN
1. Achieve revenue of $2.2 billion and OIBDA of $350.0 million
2. Deploy $100.0 million of capital expenditures into our existing Business Units
3. Invest $150.0 million towards acquisitions
The operating results outlined above consists of our expectations for our existing Business Units and from deploying approximately $150.0 million of cash available, exclusive of any new debt, towards acquisitions in 2025. The Corporation's expectation is that new acquisitions will enable us to achieve our 2025 Plan of $2.2 billion of revenue and $350.0 million of OIBDA.
Priorities
In order to achieve the operating results outlined in the 2025 Plan, we have established and will be focusing on the following priorities:
1. OPERATIONAL EXCELLENCE :
- Prioritize Margin over Market Share: work with Business Units to optimize operations and drive process improvements.
- Capital Investments: $100.0 million in new, more efficient operating assets, exclusive of corporate acquisitions.
- $85.0 million: Operating Capital – to improve our Business Units
- $10.0 million: Real Estate – invest in facilities, land and buildings
- $5.0 million: Sustainability Focused Capital – continued focus on emission reduction
2. PURSUE ACQUISITIONS :
- Identify acquisition targets that meet our precision based acquisition strategy
- Tuck-ins: opportunities that make our existing Business Units more profitable
- Strategic: opportunities to expand our network
3. INVEST IN TECHNOLOGY :
- Continue to focus on enhancing our operating systems with new technology and artificial intelligence
4. DIVIDENDS :
- Use free cash generated in 2025 to maintain our dividend at $0.07 per Common Share each month or $0.84 per Common Share on an annualized basis
5. NORMAL COURSE ISSUER BID :
- Continue to repurchase shares pursuant to our normal course issuer bid (" NCIB "), when the Board is of the view that the underlying intrinsic value of the Corporation may not be reflected in the current market price of its Common Shares
- In March 2025, we intend on requesting approvals from the Toronto Stock Exchange to renew our NCIB program
About Mullen Group Ltd.
Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, warehousing and distribution services through a network of independently operated businesses. Services offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, our businesses provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including 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 listed on the Toronto Stock Exchange under the symbol " MTL ". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR+ at www.sedarplus.ca.
Contact Information
Mr. Murray K. Mullen - Chair, Senior Executive Officer and President
Mr. Richard J. Maloney - Senior Operating Officer
Mr. Carson P. Urlacher - Senior Financial Officer
Ms. Joanna K. Scott - Senior Corporate Officer
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296 |
