Business
Mullen Group Ltd. Reports Second Quarter Financial Results and Increase to Capital Budget
OKOTOKS, AB, July 24, 2013 /CNW/ - (TSX:MTL)  Mullen Group Ltd. (" Mullen Group " and/...
About this update from Mullen Group Ltd.
[{"type":"text","content":"\n\n\nOKOTOKS, AB, July 24, 2013 /CNW/ - (TSX:MTL)  Mullen Group Ltd. (\"Mullen Group\" and/or the \"Corporation\") is pleased to report its financial and operating results for the\n period ended June 30, 2013, with comparisons to the same period last\n year.\n\n\nFor the three month period ended June 30, 2013, Mullen Group generated\n consolidated revenue of $310.3 million and operating income of $56.0\n million.  Mullen Group generated net cash from operating activities of\n $75.1  million, which was used, among other things, to acquire net\n property, plant and equipment of $49.0 million, pay dividends of $27.0\n million, fund the acquisition of Jay's Moving & Storage Ltd. (\"Jay's\") for $21.2 million, consisting of $15.8 million for the shares and\n $5.4 million of associated debt, and pay interest obligations of $9.5 \n million.\n\n\nMullen Group's consolidated revenue of $310.3 million was a decrease of\n $9.8 million, or 3.1 percent, from the $320.1 million generated in\n 2012.  A significant portion of this decrease in revenue, specifically\n $8.0 million, was directly attributable to the reduction in revenue\n from Canadian Dewatering L.P. as a result of its completion of the\n design, build and commissioning of a Thin Fine Tailings (\"TFT\") barge system project for a large oil sands customer during the second\n quarter of 2012. On a comparative basis, after adjusting for the\n non-recurring TFT barge system project revenue, Mullen Group's revenue\n from its core business decreased by only $1.8 million, or 0.6  percent.\n\n\nThe Oilfield Services segment contributed revenue of $173.6 million, a\n decrease of $14.4 million from 2012, which was primarily due to a $12.0\n million decline in revenue from those Operating Entities directly tied\n to drilling activity, most notably from rig relocation services, and\n the $8.0 million decline from the TFT barge system project.  These\n decreases were partially offset by an increase in revenue generated\n from the greater demand for services related to large diameter pipeline\n construction projects and from the additional demand for fluid hauling\n services in the heavy oil resource plays.  The Trucking/Logistics\n segment contributed revenue of $137.3 million, an increase of $3.6\n million over the prior year period, which was prim...