Mullen Group posts record third-quarter revenue and profit

Mullen Group Ltd. reported record revenue and net income for the third quarter, ended Sept. 30.

The Okotoks, Alta.-based logistics company released its results on Oct. 22.

The numbers

• Revenue: $653.2 million, up 16.3 per cent from $561.8 million a year earlier.
• Net income: $51.5 million, up 55.1 per cent from $33.2 million.
• Diluted earnings per share: 52 cents, up from 36 cents.
• Adjusted operating income before depreciation and amortization: $118.6 million, up 23 per cent.

Of the $91.4-million revenue gain, $44.3 million came from internal growth, $37.7 million from higher fuel surcharge revenue and $9.4 million from acquisitions.

By segment

• Less-than-truckload: Revenue rose 10.4 per cent to $218.3 million, mostly from fuel surcharges tied to higher diesel prices. The company said some units dropped lower-rate customers to focus on better freight, and margins improved on greater lane density.
• Logistics and warehousing: Revenue rose 13.5 per cent to $236.2 million, with more mining freight at Bandstra Transportation Systems and more cross-border shipments.
• Specialized and industrial services: Revenue jumped 24.7 per cent to $131.1 million on pipeline hauling, water management and drilling-related work, partly offset by lower civil construction demand in northern Manitoba.
• U.S. and international logistics: Revenue climbed 30.4 per cent to $70.3 million as the U.S. freight market continued to tighten.

Outlook

Chair and senior executive officer Murray Mullen said the company posted the results despite trade issues, regional conflicts and rising energy costs. He pointed to potential logistics demand from large national infrastructure projects and said the company will keep pursuing acquisitions, citing its recent Willson International announcement.

Mullen Group ended the quarter with $213.9 million in cash and $525 million in undrawn bank credit.