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 Jul 22, 2021 9:02am

TD Upgrade

And a good looking target. GLTA

Mullen Group Ltd.

(MTL-T) C$12.70

Q2/21 Results

Event

Mullen reported Q2/21 results.

Impact: POSITIVE

Q2/21 Results: Mullen reported Q2/21 EBITDAS of $59.1 million, above our estimate of $48.6 million and consensus of $52.6 million. Importantly, the quarter included $6.4 million of Canada Emergency Wage Subsidy (CEWS) proceeds that we were not forecasting. That said, we view the quarter as an 8% beat after normalizing for CEWS. We recently reduced our Q2/21 estimates in our June 2, 2021 report (full report) due to concerns around lower contributions from its high-margin pipeline hauling operations and rising fuel costs. However, these concerns were outweighed by stronger-than-expected margin performance across the company's Less-Than-Truckload and Logistics & Warehousing segments, as well as larger- than-expected contribution from its recently announced Bandstra acquisition. Details on page 2.

Acquisitions Still a Focus: Although we expect that the company will focus on integrating the five acquisitions announced year-to-date, the company continues to evaluate acquisition opportunities.

Estimate Changes: Although the company has not formally updated its 2021 revenue guidance ($1.2 billion to $1.3 billion), it set an expectation for a material improvement in financial performance beginning in Q3/21 and disclosed an expectation that year-to-date acquisitions will contribute revenues of ~$400 million annually. As a result, our 2021 and 2022 EBITDAS estimates increase by 6% and 3%, respectively. Details on page 3.

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 and we expect that this will continue despite emerging concerns around the delta variant. Based on the stronger-than-expected quarter, we are maintaining our BUY rating and increasing our target price to $18.50 (from $18.00 previously)

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