{"id":396936,"date":"2020-12-09T19:40:58","date_gmt":"2020-12-10T00:40:58","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=396936"},"modified":"2020-12-09T19:40:58","modified_gmt":"2020-12-10T00:40:58","slug":"mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/","title":{"rendered":"Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">OKOTOKS, AB<\/span>, <span class=\"xn-chron\">Dec. 9, 2020<\/span> \/PRNewswire\/ &#8211;\u00a0(TSX: MTL)\u00a0 Mullen Group Ltd. (&#8220;<b>Mullen Group<\/b>&#8220;, &#8220;<b>We<\/b>&#8220;, &#8220;<b>Our<\/b>&#8221;\u00a0and\/or the &#8220;<b>Corporation<\/b>&#8220;), one of the leading suppliers of trucking and logistics services in <span class=\"xn-location\">Canada<\/span> providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation, announced today the business plan for 2021 has been approved by the Board of Directors (&#8220;<b>Board<\/b>&#8220;).\u00a0 <\/p>\n<p>&#8220;<i>We are pleased to provide an overview of the Business Plan and Budget for 2021, a plan that reflects the current realities associated with COVID-19. \u00a0Generally speaking, we are of the view that the &#8216;consumer driven economy&#8217; will continue to evolve and adapt as long as the health care crisis dominates the headlines. \u00a0Within this context our business will remain quite stable in 2021, in fact similar in most respects to 2020.\u00a0 It is our expectation that the second wave of COVID-19 will impact many people, the supply chain across the globe and the economy. \u00a0The stability of our results is primarily due to the strength of the many Business Units we have that are leveraged to consumer spending. \u00a0Longer term, once the medical experts find the solution to this pandemic, the opportunity for growth will return again and the Mullen Group will be both prepared and positioned to capitalize on the economic recovery. \u00a0Until then we will be prudent and focus on the issues we can control and influence,&#8221;<\/i> commented Mr. <span class=\"xn-person\">Murray K. Mullen<\/span>, Chairman and Chief Executive Officer.<\/p>\n<p>\n        <b><br \/>\n          <u>HIGHLIGHTS OF 2021 BUSINESS PLAN<\/u><br \/>\n        <\/b>\n      <\/p>\n<p>Today the Board conducted its annual budget meeting.\u00a0 The annual process encompassed an extensive review of a wide range of issues including: the current state of the North American economy and the COVID-19 pandemic. \u00a0More specifically, expectations for the Canadian economy, the impact of an anticipated vaccine, the recent recovery in commodity prices as well as the balance sheet of Mullen Group and expected cash flows.<\/p>\n<p>\n        <b><br \/>\n          <i>Financial Expectations<\/i><br \/>\n        <\/b>\n      <\/p>\n<p>We expect revenue for 2021 to be in the <span class=\"xn-money\">$1.2 billion<\/span> to <span class=\"xn-money\">$1.3 billion<\/span> range with each segment to account for approximately 33.0 percent of Mullen Group&#8217;s 2021 revenue, exclusive of any potential acquisitions made in 2021. \u00a0We base this expectation on the continued economic recovery and stable consumer spending. \u00a0In addition, we expect infrastructure projects, such as the Coastal Gas and Trans-Mountain pipelines, to continue and positively contribute to Mullen Group&#8217;s bottom line in 2021.\u00a0 As such, in our plan, operating income before depreciation and amortization will be in the <span class=\"xn-money\">$200.0 million<\/span> to <span class=\"xn-money\">$220.0 million<\/span> range.<\/p>\n<p>\n        <b><br \/>\n          <i>Capital Expenditures <\/i><br \/>\n        <\/b>\n      <\/p>\n<p>The Board approved a capital budget of <span class=\"xn-money\">$60.0 million<\/span> for 2021, exclusive of corporate acquisitions or investment in facilities, land and buildings, with <span class=\"xn-money\">$50<\/span>.0\u00a0million allocated towards maintenance capital primarily to replace trucks, trailers, specialized equipment and technology to support the operations of the business. \u00a0In addition, we will allocate <span class=\"xn-money\">$10<\/span>.0\u00a0million to fund growth and create jobs in <span class=\"xn-location\">Canada<\/span>.<\/p>\n<p>In 2020 the Federal Government implemented the <span class=\"xn-location\">Canada<\/span> Emergency Wage Subsidy program. \u00a0We will be directing the vast majority of the funds we received to create opportunities and employment for Canadians.<\/p>\n<p>\n        <b><br \/>\n          <i>Dividend Increase<\/i><br \/>\n        <\/b>\n      <\/p>\n<p>We are pleased to announce that the Board has approved an increase in the annual dividend to shareholders from <span class=\"xn-money\">$0.36<\/span> per Common Share to <span class=\"xn-money\">$0.48<\/span> per Common Share.\u00a0 Such dividend will continue to be paid on a monthly basis, subject to Board approval.\u00a0\u00a0 <b><br \/><\/b><\/p>\n<p>\n        <b><br \/>\n          <i>Share Buyback<\/i><br \/>\n        <\/b>\n      <\/p>\n<p>Earlier this year we announced a plan to allocate <span class=\"xn-money\">$100<\/span>.0\u00a0million over the course of three years to repurchase Common Shares in Mullen Group via an authorized share buyback program. \u00a0In 2020 we repurchased the maximum allowed by the Toronto Stock Exchange (&#8220;<b>TSX<\/b>&#8220;). \u00a0In <span class=\"xn-chron\">April 2021<\/span> we intend on requesting approvals from the TSX to renew a share buyback program.<\/p>\n<p>\n        <b><br \/>\n          <i>Acquisitions<\/i><br \/>\n        <\/b>\n      <\/p>\n<p>We maintain a very healthy cash balance in excess of <span class=\"xn-money\">$100<\/span>.0\u00a0million on the balance sheet as of today&#8217;s date, funds that will be used to pursue strategic acquisitions. \u00a0Our focus will be in the Less-Than-Truckload and Logistics\u00a0&amp;\u00a0Warehousing segments of our business.<\/p>\n<p>\n        <b>About Mullen Group Ltd.<\/b>\n      <\/p>\n<p>Mullen Group is a company that owns a network of independently operated businesses.\u00a0 The Corporation is recognized as one of the leading suppliers of trucking and logistics services in <span class=\"xn-location\">Canada<\/span> providing a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation.\u00a0 In addition, we provide a diverse set of specialized services related to the oil and natural gas industry in western <span class=\"xn-location\">Canada<\/span>, water management, fluid hauling and environmental reclamation.\u00a0 The corporate office\u00a0provides\u00a0the capital\u00a0and financial expertise,\u00a0legal support,\u00a0technology and systems support, shared services and strategic planning\u00a0to its independent businesses.<\/p>\n<p>Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol &#8220;<b>MTL<\/b>&#8220;.\u00a0 Additional information is available on our website at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3008560-1&amp;h=4082899088&amp;u=http%3A%2F%2Fwww.mullen-group.com%2F&amp;a=www.mullen-group.com\" rel=\"nofollow noopener noreferrer\">www.mullen-group.com<\/a> or on SEDAR at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3008560-1&amp;h=2383031286&amp;u=http%3A%2F%2Fwww.sedar.com%2F&amp;a=www.sedar.com\" rel=\"nofollow noopener noreferrer\">www.sedar.com<\/a>. <\/p>\n<p>\n        <b>Disclaimer<\/b>\n      <\/p>\n<p>This news release may contain forward-looking information that is subject to risk factors associated with the overall economy and the oil and natural gas business.\u00a0 This information relates to future events and Mullen Group&#8217;s future performance.\u00a0 All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words &#8220;may&#8221;, &#8220;will&#8221;, &#8220;should&#8221;, &#8220;could&#8221;, &#8220;expect&#8221;, &#8220;plan&#8221;, &#8220;intend&#8221;, &#8220;anticipate&#8221;, &#8220;believe&#8221;, &#8220;estimate&#8221;, &#8220;propose&#8221;, &#8220;predict&#8221;, &#8220;potential&#8221;, &#8220;continue&#8221;, &#8220;aim&#8221;, or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information.\u00a0 Such information represents Mullen Group&#8217;s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance.\u00a0 This information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Mullen Group believes that the expectations reflected in this forward-looking information are reasonable; however, undue reliance should not be placed on this forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.\u00a0 In particular, forward-looking information and statements include but are not limited to the following: (i) our financial goals and expectations for 2021; (ii) our capital expenditure plans for 2021; (iii) our strategic initiatives for 2021 including but not limited to acquisitions and use of <span class=\"xn-location\">Canada<\/span> Emergency Wage Subsidy; (iv) anticipated 2021 dividend payments; and our plan to renew our normal course issuer bid.\u00a0 This forward-looking information and statements are based on certain assumptions and analysis made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances.\u00a0 These assumptions include but are not limited to the following: (i) Mullen Group will generate sufficient cash in excess of our financial obligations to support the dividend; (ii) Mullen Group&#8217;s Business Units will require capital to support their ongoing operations and growth opportunities and that we will generate sufficient cash in excess of our financial obligations to support the capital expenditures; (iii) Mullen Group&#8217;s expectation as to how our current Business Units will perform in 2021 along with the timing and financial results of acquisitions; (iv) that the macro environment stabilizes and we have a strong balance sheet with <span class=\"xn-money\">$100.0 million<\/span> in cash to pursue strategic acquisitions; and (v) Mullen Group&#8217;s plan to renew its normal course issuer bid will be approved by regulatory authorities.\u00a0 For further information on any strategic, financial, operational and other outlook on Mullen Group&#8217;s business please refer to Mullen Group&#8217;s Management&#8217;s Discussion and Analysis available for viewing on SEDAR at <a href=\"http:\/\/www.sedar.com\" rel=\"nofollow\">www.sedar.com<\/a>.\u00a0 Additional information on risks that could affect the operations or financial results of Mullen Group may be found under the heading &#8220;Principal\u00a0Risks and Uncertainties&#8221; starting on page\u00a065\u00a0of the 2019 Annual Financial Review\u00a0as well as in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website at <a href=\"http:\/\/www.sedar.com\" rel=\"nofollow\">www.sedar.com<\/a>.\u00a0 The forward-looking information contained in this news release is expressly qualified by this cautionary statement.\u00a0 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.\u00a0 Mullen Group relies on litigation protection for &#8220;forward-looking&#8221; statements.<\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=CA19482&amp;sd=2020-12-09\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021-301189967.html\">http:\/\/www.prnewswire.com\/news-releases\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021-301189967.html<\/a><\/p>\n<p>SOURCE  Mullen Group Ltd.<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=CA19482&amp;Transmission_Id=202012091937PR_NEWS_USPR_____CA19482&amp;DateId=20201209\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire OKOTOKS, AB, Dec. 9, 2020 \/PRNewswire\/ &#8211;\u00a0(TSX: MTL)\u00a0 Mullen Group Ltd. (&#8220;Mullen Group&#8220;, &#8220;We&#8220;, &#8220;Our&#8221;\u00a0and\/or the &#8220;Corporation&#8220;), 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, announced today the business plan for 2021 has been approved by the Board of Directors (&#8220;Board&#8220;).\u00a0 &#8220;We are pleased to provide an overview of the Business Plan and Budget for 2021, a plan that reflects the current realities associated with COVID-19. \u00a0Generally speaking, we are of the view that the &#8216;consumer driven economy&#8217; will continue to evolve and adapt as long as the health care crisis dominates the headlines. \u00a0Within this &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-396936","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021 - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021 - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire OKOTOKS, AB, Dec. 9, 2020 \/PRNewswire\/ &#8211;\u00a0(TSX: MTL)\u00a0 Mullen Group Ltd. (&#8220;Mullen Group&#8220;, &#8220;We&#8220;, &#8220;Our&#8221;\u00a0and\/or the &#8220;Corporation&#8220;), 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, announced today the business plan for 2021 has been approved by the Board of Directors (&#8220;Board&#8220;).\u00a0 &#8220;We are pleased to provide an overview of the Business Plan and Budget for 2021, a plan that reflects the current realities associated with COVID-19. \u00a0Generally speaking, we are of the view that the &#8216;consumer driven economy&#8217; will continue to evolve and adapt as long as the health care crisis dominates the headlines. \u00a0Within this &hellip; Continue reading &quot;Mullen Group Ltd. 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Announces Business Plan and Increase in Dividend for 2021 - Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/","og_locale":"en_US","og_type":"article","og_title":"Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021 - Market Newsdesk","og_description":"PR Newswire OKOTOKS, AB, Dec. 9, 2020 \/PRNewswire\/ &#8211;\u00a0(TSX: MTL)\u00a0 Mullen Group Ltd. (&#8220;Mullen Group&#8220;, &#8220;We&#8220;, &#8220;Our&#8221;\u00a0and\/or the &#8220;Corporation&#8220;), 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, announced today the business plan for 2021 has been approved by the Board of Directors (&#8220;Board&#8220;).\u00a0 &#8220;We are pleased to provide an overview of the Business Plan and Budget for 2021, a plan that reflects the current realities associated with COVID-19. \u00a0Generally speaking, we are of the view that the &#8216;consumer driven economy&#8217; will continue to evolve and adapt as long as the health care crisis dominates the headlines. \u00a0Within this &hellip; Continue reading \"Mullen Group Ltd. Announces Business Plan and Increase in Dividend for 2021\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/","og_site_name":"Market Newsdesk","article_published_time":"2020-12-10T00:40:58+00:00","og_image":[{"url":"https:\/\/c212.net\/c\/img\/favicon.png?sn=CA19482&amp;sd=2020-12-09","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/mullen-group-ltd-announces-business-plan-and-increase-in-dividend-for-2021\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Mullen Group Ltd. 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