OKOTOKS - Mullen Group Ltd. ('Mullen Group', 'We', 'Our' and/or the 'Corporation'), one of the leading suppliers of trucking and logistics services in Canada providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation, today reported its financial and operating results for the period ended March 31, 2020, with comparisons to the same period last year.
Full details of our results may be found within our First Quarter Interim Report, which is available on SEDAR at www.sedar.com or on our website at www.mullen-group.com.
'We are in the midst of a health care crisis most of us have never experienced. Governments worldwide have already implemented a series of steps based upon the predictions and advice of the health care professionals, scientists and experts that study infectious diseases. This makes talking about financial results and expectations somewhat awkward when the risks to many in our communities take on a much bigger meaning. Nevertheless, as the CEO of a large employer in Canada, it is important to also talk about another consequence of this crisis and that is the devastating impact the government mandated closures are having on so many industries, businesses and the economy. And I am not exaggerating by stating that the job losses in the private sector are staggering. The bottom line is that this health crisis is hurting a lot of people. Obviously all of us hope that the steps taken by the governments will be successful but realistically I doubt if we will know for quite some time,' commented Mr. Murray K. Mullen, Chairman and Chief Executive Officer.
'Until mid-March our business was performing ahead of last year and basically on target to meet our expectations. However, once the full extent of the virus started to become evident, demand deteriorated in many sectors of the economy directly impacting several of our Business Units. For example, we witnessed a sharp decline in the demand for discretionary consumer goods as well as in commodity based industries. Nevertheless, the majority of our business remained steady throughout the quarter, especially our Less-Than-Truckload segment and the handling of large diameter pipe, a logistical component related to pipeline construction in western Canada. As a result, I am pleased to report revenue of $318.2 million and operating income before depreciation and amortization of $45.2 million. More importantly we generated $40.2 million in net cash from operating activities during the first quarter, which is up 66.1 percent over last year. So all in all a good start to the year despite the challenges associated with the health crisis.
'But this was last quarter. Today we are in the midst of a rapidly changing supply chain. Our focus is now on what is next Clearly business will be negatively impacted in the short-term, the duration to be determined by a virus known as COVID-19 and by governments. We will see business decline, perhaps quite significantly in the short-term, however, I believe we will weather this crisis and come out of it stronger. My confidence stems from knowing that we have a strong cash position and well-structured balance sheet providing ample liquidity to withstand a slowdown. Furthermore, our diversified business model and leverage to many sectors of the economy that will continue to be in demand is an important differentiator. And once the economy starts to recover we will be well positioned to take advantage of the inevitable opportunities that arise during challenging times. This is a point that I have made to many of our people that have become early victims of the rapid destruction in demand. To date we have furloughed and provided temporary layoff notices to approximately 1,000 of our business associates. This in itself is extremely stressful which is why we established a $5.0 million Family Assistance Plan. We will provide support as required to those most impacted through no fault of their own until we can get them back to work. This is one of my primary responsibilities these days. The other is ensuring the many frontline workers, those deemed essential workers by the various governments, have the appropriate protective gear and safety protocols in place to manage their health and safety as they go about their regular jobs,' added Mr. Mullen.
About Mullen Group Ltd.
Mullen Group is a logistics company that owns a network of independently operated businesses. The Corporation is recognized as one of the leading suppliers of trucking and logistics services in Canada providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation. In addition, we 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.
Contact:
Tel: 403-995-5200
Fax: 403-995-5296
Disclaimer
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. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for 'forward-looking' statements. Additional information regarding the forward-looking statements is found on pages 1, 40 and 41 of Mullen Group's Management's Discussion and Analysis.
MULLEN GROUP LTD. 
