Post by
retiredcf on Oct 24, 2024 10:40am
CIBC
Certainly potential for them to raise their current target of $16.50. GLTA
EQUITY RESEARCH
October 24, 2024 Flash Research
MULLEN GROUP LTD.
Q3 First Pass: EBITDA Ahead Of Expectations
Key Takeaway: Positive impact. MTL reported Q3 results that came in
ahead of our expectations and consensus estimates. MTL delivered record
quarterly revenue and we note EBITDA came in higher than our expectations
and consensus, primarily driven by the L&W and S&I segments. The
company is hosting a conference call at 10:00 a.m. ET.
Q3 Recap: Revenue came in at $532MM, up from $504MM the year prior
versus our estimate of $524MM (consensus $524MM). EBITDA came in at
$95MM, up from $89MM the year prior and versus our estimate of $90MM
(consensus $89MM). Adj. EPS in the quarter was $0.41, down from $0.43
the year prior and versus our estimate of $0.32 (consensus $0.36).
Divisional Recap: Below is a recap of MTL’s divisional performance.
• Less-than-truckload: Within LTL, the company reported $189MM in
revenue, down from $194MM the year prior and below our estimate of
$193MM. EBITDA came in at $36MM, up from $35MM the year prior
and versus our estimate of $38MM. We highlight that despite a
competitive environment that led to lower revenue, MTL was able to
operate more efficiently, most notably from restructuring B&R’s LTL
operations. Margins came in at 18.9%, up from 17.8% the year prior and
lower than our estimate of 19.5%.
• Logistics & Warehousing: Within L&W, MTL reported $169MM in
revenue, up from $137MM the year prior and versus our estimate of
$169MM. EBITDA came in at $35MM, up from $27MM the year prior and
higher than our estimate of $31MM. During the quarter, acquisitions
added $34MM of incremental revenues, while revenue from existing
operations declined by $1.4MM. Margins came in at 20.8%, up from
19.5% the year prior and higher than our estimate of 18.2%.
• Specialized & Industrial Services: Within S&I, MTL reported $132MM in
revenue, up from $125MM the year prior and above our estimate of
$114MM. EBITDA came in at $29MM, down from $30MM the year prior
and higher than our estimate of $25MM. Margins came in at 21.6%,
down from 23.7% the year prior and higher than our estimate of 21.5%.
• U.S. & International Logistics: Within U.S. & International Logistics, MTL
reported $46MM in revenue, down from $49MM the year prior and lower
than our estimate of $49MM. EBITDA came in at $0.3MM, down from
$1.1MM the year prior and lower than our estimate of $1.1MM. Margins
came in at 0.7%, down from 2.3% the year prior, and lower than our
estimate of 2.2%.