Over $1.4 Billion Paid in Dividends to Date

Repurchased 18.5 million Common Shares for $197.3 million since 2020

Revenue CAGR of 11.9 percent since 1993 to $2 Billion in 2022

Consistently generate free cash

Bullboard - Investor Discussion Forum Mullen Group Ltd. T.MTL

Alternate Symbol(s): MLLGF | T.MTL.DB

Industrials Integrated Shipping & Logistics

Mullen Group is one of North America's largest logistics providers with a network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics & specialized hauling transportation. Mullen also provides a diverse set of specialized services related to the energy, mining... see more

TSX:MTL - Post Discussion

Mullen Group Ltd. > TD Upgrade

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Post by retiredcf on Apr 22, 2021 8:31am

TD Upgrade

Mullen Group Ltd.

(MTL-T) C$13.35

Q1/21 Results

Event

Mullen Group reported Q1/21 results.

Impact: NEUTRAL

Q1/21 Results: Mullen reported Q1/21 EBITDAS of $47.1 million, below our estimate of $51.4 million and in line with consensus of $47.1 million. Our estimate featured $5.5 million of Canada Emergency Wage Subsidy (CEWS) proceeds compared with actual CEWS proceeds of $6.0 million. The main difference between our estimate and actual results was lower Specialized & Industrial segment revenues (-18%) and segment EBITDAS (-24%) due to a combination of lower demand for large diameter pipeline hauling, fluid hauling and civil construction services in northern Manitoba. Details on page 2.

Outlook Commentary: Management believes that the logistics and freight industry is "ripe for further consolidation", particularly as it relates to smaller tuck-in acquisitions that are the most common size of acquisition that Mullen Group typically pursues. To this end, management is evaluating several additional acquisition opportunities.

Estimate Changes: Despite two meaningful acquisitions announced year-to-date, management did not provide any updates to its 2021 guidance. As a result, we are increasing our 2021 EBITDA estimate to $219.9 million at the high end of management's guidance range, despite Q1/21 results coming in below our estimate. Our 2022 EBITDAS estimate increases 4% to $251.8 million, with our revised 2021 and 2022 estimates now reflecting the Bandstra Group acquisition (full report).

Conference Call: Management will host a conference call at 11:00 a.m. ET today; dial: 1-800-319-4610.

TD Investment Conclusion

Mullen Group has consistently generated strong financial performance throughout the COVID-19 pandemic, highlighting its resilient, diversified, and consumer-focused business. With no major surprises in the quarter, we are maintaining our BUY rating while modestly increasing our target price to $17.00 per share ($16.00 previously), to reflect our revised estimates that now include the Bandstra Group acquisition

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