Mullen Group Ltd. Targets 10.0 percent Growth in 2025

Okotoks, Alberta, Dec. 09, 2024 (GLOBE NEWSWIRE) — MTL Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") announced today its plan for 2025 has been approved by the Board of Directors ("Board").

"Establishing growth targets for 2025 assumes we find acquisitions that fit into our current network, which based upon our long history of completing successful acquisitions should not be difficult along with the fact that we will enter the new year with a strong balance sheet, cash of around $125.0 million and untapped bank lines of $525.0 million. We also will need to see the Canadian economy continue to expand, even if the growth is modest," commented Mr. Murray K. Mullen, Chair and Senior Executive Officer.

"The Board has approved the 2025 Plan and a capital expenditure of $100.0 million to ensure our current Business Units remain best-in-class and can meet the service requirements of our customers. In addition, our shareholders can expect an annual dividend of $0.84 per Common Share. These are fundamentals that have served our shareholders very well over the years – Invest in our core business and reward shareholders with a meaningful dividend. This will not change in 2025," added Mr. Mullen.

2025 PLAN

1. Achieve revenue of $2.2 billion and OIBDA of $350.0 million

2. Deploy $100.0 million of capital expenditures into our existing Business Units

3. Invest $150.0 million towards acquisitions

The operating results outlined above consists of our expectations for our existing Business Units and from deploying approximately $150.0 million of cash available, exclusive of any new debt, towards acquisitions in 2025. The Corporation's expectation is that new acquisitions will enable us to achieve our 2025 Plan of $2.2 billion of revenue and $350.0 million of OIBDA.

Priorities

In order to achieve the operating results outlined in the 2025 Plan, we have established and will be focusing on the following priorities:

1. OPERATIONAL EXCELLENCE:

• Prioritize Margin over Market Share: work with Business Units to optimize operations and drive process improvements.
• Capital Investments: $100.0 million in new, more efficient operating assets, exclusive of corporate acquisitions.
  • $85.0 million: Operating Capital – to improve our Business Units
  • $10.0 million: Real Estate – invest in facilities, land and buildings
  • $5.0 million: Sustainability Focused Capital – continued focus on emission reduction

2. PURSUE ACQUISITIONS:

• Identify acquisition targets that meet our precision based acquisition strategy
• Tuck-ins: opportunities that make our existing Business Units more profitable
• Strategic: opportunities to expand our network 

3. INVEST IN TECHNOLOGY:

• Continue to focus on enhancing our operating systems with new technology and artificial intelligence 

4. DIVIDENDS:

• Use free cash generated in 2025 to maintain our dividend at $0.07 per Common Share each month or $0.84 per Common Share on an annualized basis 

5. NORMAL COURSE ISSUER BID:

• Continue to repurchase shares pursuant to our normal course issuer bid ("NCIB"), when the Board is of the view that the underlying intrinsic value of the Corporation may not be reflected in the current market price of its Common Shares
• In March 2025, we intend on requesting approvals from the Toronto Stock Exchange to renew our NCIB program 

About Mullen Group Ltd.

Mullen Group is a public company with a long history of acquiring companies in the transportation and logistics industries. Today, we have one of the largest portfolios of logistics companies in North America, providing a wide range of transportation, warehousing and distribution services through a network of independently operated businesses. Services offerings include less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, our businesses 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.

Mullen Group is listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR+ at www.sedarplus.ca.

Contact Information

Mr. Murray K. Mullen - Chair, Senior Executive Officer and President

Mr. Richard J. Maloney - Senior Operating Officer

Mr. Carson P. Urlacher - Senior Financial Officer

Ms. Joanna K. Scott - Senior Corporate Officer

121A - 31 Southridge Drive

Okotoks, Alberta, Canada T1S 2N3

Telephone: 403-995-5200

Fax: 403-995-5296

Disclaimer

Mullen Group may make statements in this news release that reflect its current beliefs and assumptions and are based on information currently available to it and contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") and future oriented financial information ("FOFI") within the meaning of applicable securities laws. This news release may contain forward-looking statements and FOFI that are subject to risk factors associated with the overall economy and the oil and natural gas business. These forward-looking statements and FOFI relate to future events and Mullen Group's future performance. All forward looking statements and FOFI contained herein that are not clearly historical in nature constitute forward-looking statements and/or FOFI, and the words "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "propose", "predict", "potential", "continue", "aim", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements and/or FOFI. Such forward-looking statements and FOFI represent Mullen Group's internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These forward-looking statements and FOFI involve 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 statements and FOFI. Mullen Group believes that the expectations reflected in these forward-looking statements and FOFI are reasonable; however, undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. In particular, forward-looking statements and FOFI include but are not limited to the following: (i) Mullen Group's plan to target 10.0% growth in 2025; (ii) that our 2025 Plan consists of our expectations for our existing Business Units and from deploying approximately $150.0 million of cash available, exclusive of any new debt towards acquisitions in 2025; (iii) our financial goals, priorities and expectations for 2025; (iv) our capital expenditure plans for 2025; (v) that our shareholders can expect an annual dividend of $0.84 per Common Share in 2025; (vi) our strategic initiatives for 2025 including but not limited to potential acquisitions both strategic and tuck-in; and (vii) our plan to renew our normal course issuer bid. These forward-looking statements and FOFI 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. These assumptions include but are not limited to the following: (i) Mullen Group will find acquisitions that fit into our current network and meet our precision based acquisition strategy; (ii) the Canadian economy will continue to expand, even if the growth is modest; (iii) Mullen Group will be able to negotiate acceptable agreement terms and close acquisitions within the 2025 year; (iv) Mullen Group will generate sufficient cash in excess of our financial obligations to support the dividend; (v) Mullen Group'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; (vi) Mullen Group's expectation as to how our current Business Units will perform in 2025; (vii) Mullen Group will have an opportunity to deploy technology and optimize operations of our Business Units; and (viii) Mullen Group's intention to renew its normal course issuer bid will be approved by regulatory authorities. For further information on any strategic, financial, operational and other outlook on Mullen Group's business please refer to Mullen Group's Management's Discussion and Analysis available for viewing on Mullen Group's issuer profile on SEDAR+ at www.sedarplus.ca. Additional information on risks that could affect the operations or financial results of Mullen Group may be found under the heading "Principal Risks and Uncertainties" starting on page 50 of the 2023 Annual Financial Review as well as in reports on file with applicable securities regulatory authorities and may be accessed through Mullen Group's issuer profile on the SEDAR+ website at www.sedarplus.ca. The forward-looking statements and FOFI contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements and FOFI contained herein are made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking statements and FOFI, 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 and FOFI.