cloudhosting14 wrote: As you would already know that managed hosting itself is another form of Cloud hosting in which the system administrations of servers is looked upon by the CPs. Similar is the case with managed multi Cloud hosting. You can very well understand how a big burden it would be to manage multi cloud servers for organization; this is why a service known as managed multi Cloud is provided to these users. This service ensures them the seam less running of their system administrative operations while organizations focus more on t...
OKOTOKS, AB, Feb. 20, 2013 /PRNewswire/ - (TSX:MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") reported its financial and operating results for the period ended
December 31, 2012, with comparisons to the same period last year.
For the twelve month period ended December 31, 2012, Mullen Group
generated record revenue of $1,427.6 million, operating income of
$293.8 million and net cash from operating activities of $279.9
million. Cash was used, among other things, to acquire net property,
plant and equipment of $103.2 million, pay cash dividends of $82.6
million and fund an acquisition of $5.8 million.
Mullen Group's revenue of $1,427.6 million for the year ended December
31, 2012, increased by $40.3 million or 2.9 percent from the $1,387.3
million generated in 2011. The year over year increase in consolidated
revenue was largely attributable to the revenue growth experienced in
the first and second quarters of 2012 compared to the same quarters in
2011, which was somewhat offset by the decrease in consolidated revenue
experienced in the third and fourth quarters of 2012 compared to same
quarters in 2011.
The Oilfield Services segment generated $897.3 million in revenue for
the year ended December 31, 2012, which represents a marginal 0.7
percent decrease in revenue compared to $903.8 million reported in
2011. The increase in revenue in the first and second quarters of 2012
compared to 2011 resulted mainly from increased demand in drilling
activity along with increased demand for core drilling services.
However, the increases in revenue from the first and second quarters of
2012 were offset by decreases in revenue in the third and fourth
quarters, which generally came from a slow down in drilling activity,
the completion of the Thin Fine Tailings ("TFT") barge system project and the delay in pipeline construction
activity. The Trucking/Logistics segment generated $535.6 million in
revenue for the year ended December 31, 2012, which represents a 9.5
percent increase in revenue compared to the $489.3 million reported in
2011. This $46.3 million increase in the Trucking/Logistics segment's
revenue is mainly attributable to recognizing a full year of Hi-Way 9
revenue, increased demand for multi-modal and specialized
transportation services in western Canada and an increase in fuel
surcharge revenue.
Mullen Group generated record operating income of $293.8 million in
2012, an increase of $5.8 million or 2.0 percent over the
$288.0 million generated in 2011. The increase in operating income was
the combined effect of a marginal $6.4 million decrease in operating
income reported by the Oilfield Services segment which was more than
offset by an $11.0 million increase in operating income reported by the
Trucking/Logistics segment and decreased corporate costs. Operating
income as a percentage of revenue for 2012 was 20.6 percent compared to
20.8 percent in 2011.
"Mullen Group's record performance in 2012, in terms of revenue
generation and operating income, reinforces the strength of our
self-managed business unit model which provides Mullen Group diversity
in service offerings in multiple geographical regions. This is not to
say that 2012 was not without its challenges. The combined effect of
the completion of the TFT barge system project by Canadian Dewatering
L.P. in the second quarter of 2012, decreased drilling activity in the
last half of the year and the delay in a number of pipeline
construction projects did have an unfavourable impact on our results in
2012. However, the demand for core hole delineation services, well
servicing and fluid hauling along with the continued demand for
specialized and multi-modal transportation services benefited a number
of our business units and was key in driving our record performance,"
said Mr. Stephen H. Lockwood, President and Co-Chief Executive Officer.
In 2012 Mullen Group generated net income of $130.9 million, or $1.58
per share, an increase of $11.5 million or 9.6 percent, as compared to
$119.4 million or $1.50 per share in 2011. The $11.5 million increase
in net income was mainly attributable to an $11.6 million positive
variance in unrealized foreign exchange and Mullen Group's improved
operating performance, which contributed $5.8 million of additional
operating income. These increases were somewhat offset by $5.1 million
of higher income tax expense and a $2.8 million negative variance in
the fair value of investments. Adjusting Mullen Group's net income and
earnings per share to eliminate the impact of unrealized foreign
exchange and the change in fair value of investments resulted in
adjusted net income of $133.0 million and adjusted earnings per share
of $1.60, as compared to $125.4 million and $1.57 per share in 2011,
respectively. These adjustments more clearly reflect earnings from an
operating perspective.
In the fourth quarter of 2012 Mullen Group generated revenue of $346.1
million, a decrease of $48.0 million or 12.2 percent from the $394.1
million generated for the same period in 2011. The decrease in revenue
is primarily due to decreased revenue experienced in the Oilfield
Services segment, which reported a $47.7 million reduction in revenue
in the fourth quarter of 2012 compared to the same period in 2011. The
decrease in revenue in the Oilfield Services segment generally reflects
the completion of the TFT barge system project along with a reduction
in revenue related to tailing reduction operations for a large oil
sands customer, reduced drilling activity, and the delay of a number of
large pipeline construction projects. Revenue in the
Trucking/Logistics segment was generally flat in the fourth quarter of
2012 compared to the same period last year.
Mullen Group generated operating income for the fourth quarter of $71.2
million, a decrease of $12.6 million or 15.0 percent over the same
period in 2011. Generally the decrease in operating income came from
the reduced revenue recorded by the Oilfield Services segment while the
Trucking/Logistics segment reported a marginal increase in operating
income in the quarter. Operating income as a percentage of revenue was
20.6 percent for the fourth quarter of 2012 compared to 21.3 percent in
2011.
"At the start of 2012, Mullen Group expected our operating results for
the year to be consistent with 2011 as we did not see any catalyst for
significant growth. This, as our results show, was fairly accurate.
What I am particularly pleased with, in addition to our record
operating results, is the validation that our business model works very
well as is evidenced in the strength of Mullen Group's balance sheet
which includes $122.8 million in cash. This strength in our balance
sheet is imperative as we enter what we expect to be somewhat of an
unpredictable 2013. The fact remains that Mullen Group will continue to
invest in our business units to ensure they remain best in class, be
opportunistic when accretive acquisitions meeting our economic model
are presented and very importantly, reward our shareholders,'' said Mr.
Murray K. Mullen, Chairman and Chief Executive Officer.
A summary of Mullen Group's results for the quarter and year ended
December 31, 2012, along with revenue and operating results by segment
are as follows:
SUMMARY
(unaudited) (millions, except per share amounts)
Three month periods ended December 31
Twelve month periods ended December 31
2012
2011
Change
2012
2011
Change
$
$
%
$
$
%
Revenue
346.1
394.1
(12.2)
1,427.6
1,387.3
2.9
Operating income(1)
71.2
83.8
(15.0)
293.8
288.0
2.0
Unrealized foreign exchange (gain) loss
2.7
(7.3)
(137.0)
(5.2)
6.4
181.3
Change in fair value of investments
6.0
—
(100.0)
6.7
3.9
(71.8)
Net income
21.8
47.5
(54.1)
130.9
119.4
9.6
Net Income - adjusted(2)
29.7
38.8
(23.5)
133.0
125.4
6.1
Earnings per share(3)
0.25
0.59
(57.6)
1.58
1.50
5.3
Earnings per share - adjusted(2)
0.34
0.48
(29.2)
1.60
1.57
1.9
Net cash from operating activities
67.7
71.6
(5.5)
279.9
221.4
26.4
Net cash from operating activities per share(3)
0.77
0.89
(13.5)
3.37
2.77
21.7
Cash dividends declared per Common Share
0.25
0.25
—
1.00
1.00
—
Notes:
(1)
Operating income is defined as net income before depreciation on
property, plant and equipment, amortization on intangible assets, finance costs, unrealized foreign exchange gains
and losses, other (income) expense and income tax expense.
(2)
Net income - adjusted and earnings per share - adjusted are calculated
by adjusting net income and basic earnings per share by the amount of any unrealized foreign exchange
gains and losses and by the change in fair value of investments.
(3)
Earnings per share and net cash from operating activities per share are
calculated based on the weighted average number of Common Shares outstanding for the period.
Operating income, net income - adjusted and earnings per share -
adjusted are not recognized terms under IFRS and do not have standardized meanings prescribed by IFRS. Management
believes these measures are useful supplemental measures. Investors should be cautioned that these
indicators should not replace net income and earnings per share as indicators of performance.
SEGMENTED RESULTS
(unaudited) (millions)
Three month periods ended December 31
Twelve month periods ended December 31
2012
2011
Change
2012
2011
Change
$
$
%
$
$
%
Revenue
Oilfield Services
209.8
257.5
(18.5)
897.3
903.8
(0.7)
Trucking/Logistics
137.6
137.5
0.1
535.6
489.3
9.5
Corporate
(0.1)
—
—
0.7
0.1
—
Intersegment eliminations
Oilfield Services
(0.4)
(0.2)
—
(1.9)
(0.7)
—
Trucking/Logistics
(0.8)
(0.7)
—
(4.1)
(5.2)
—
Total
346.1
394.1
(12.2)
1,427.6
1,387.3
2.9
Operating Income
Oilfield Services
45.9
59.5
(22.9)
200.1
206.5
(3.1)
Trucking/Logistics
26.3
25.8
1.9
98.4
87.4
12.6
Corporate
(1.0)
(1.5)
—
(4.7)
(5.9)
—
Total
71.2
83.8
(15.0)
293.8
288.0
2.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(thousands)
December 31
2012
2011
$
$
Assets
Current assets:
Cash and cash equivalents
122,772
65,934
Trade and other receivables
219,423
262,587
Inventory
32,097
38,826
Prepaid expenses
10,663
10,498
Current tax receivable
2,083
916
387,038
378,761
Non-current assets:
Property, plant and equipment
843,318
798,362
Goodwill
239,595
241,513
Intangible assets
52,985
69,297
Investments
27,612
34,319
Deferred tax assets
5,029
4,583
Other assets
327
302
1,168,866
1,148,376
Total Assets
1,555,904
1,527,137
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities
104,810
125,002
Dividends payable
21,917
20,209
Current tax payable
20,902
12,724
Current portion of long-term debt
1,471
4,974
149,100
162,909
Non-current liabilities:
Long-term debt
392,814
399,232
Convertible debentures - debt component
39,773
103,276
Deferred tax liabilities
147,092
157,421
579,679
659,929
Equity:
Share capital
720,836
641,918
Convertible debentures - equity component
1,843
4,826
Contributed surplus
12,125
11,844
Retained earnings
92,321
45,711
827,125
704,299
Total Liabilities and Equity
1,555,904
1,527,137
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND RETAINED EARNINGS
Three month periods ended December 31
Twelve month periods ended December 31
(thousands, except per share amounts)
2012
2011
2012
2011
$
$
$
$
(unaudited)
Revenue
346,166
394,069
1,427,640
1,387,293
Direct operating expenses
238,648
270,257
983,535
951,825
Selling and administrative expenses
36,332
40,009
150,298
147,493
71,186
83,803
293,807
287,975
Depreciation on property, plant and equipment
18,026
16,574
65,335
61,803
Amortization on intangible assets
4,610
4,714
18,334
19,015
Finance costs
7,084
8,877
32,897
36,279
Unrealized foreign exchange (gain) loss
2,749
(7,332)
(5,194)
6,345
Other (income) expense
7,993
1,089
6,668
5,335
Income before income taxes
30,724
59,881
175,767
159,198
Income tax expense
8,954
12,388
44,858
39,765
Net income and total comprehensive income
21,770
47,493
130,909
119,433
Retained earnings (deficit), beginning of period
92,468
18,427
45,711
(538,917)
Dividends declared to common shareholders
(21,917)
(20,209)
(84,299)
(80,255)
Reduction of stated capital
—
—
—
545,450
Retained earnings, end of period
92,321
45,711
92,321
45,711
Earnings per share:
Basic
0.25
0.59
1.58
1.50
Diluted
0.25
0.54
1.52
1.43
Weighted average number of Common Shares outstanding:
Basic
87,384
80,835
82,961
79,885
Diluted
87,901
91,171
91,785
90,258
CONSOLIDATED STATEMENT OF CASH FLOWS
Three month periods ended December 31
Twelve month periods ended December 31
(thousands)
2012
2011
2012
2011
$
$
$
$
(unaudited)
Cash provided by (used in):
Cash flows from operating activities:
Net income
21,770
47,493
130,909
119,433
Adjustments for:
Depreciation on property, plant and equipment
18,026
16,574
65,335
61,803
Amortization on intangible assets
4,610
4,714
18,334
19,015
Finance costs
7,084
8,877
32,897
36,279
Stock-based compensation expense
390
616
2,768
2,464
Foreign exchange
2,615
(7,198)
(4,913)
5,983
Change in fair value of investments
6,049
9
6,707
3,933
Loss (gain) on sale of property, plant and equipment
944
1,080
(1,039)
1,402
Income tax expense
8,954
12,388
44,858
39,765
Impairment of goodwill
3,000
—
3,000
—
Gain on contingent consideration
(2,000)
—
(2,000)
—
71,442
84,553
296,856
290,077
Changes in non-cash working capital items from operating
activities:
Trade and other receivables
10,794
(8,321)
45,097
(43,684)
Inventory
78
(4,582)
6,915
(13,236)
Prepaid expenses
1,410
612
(81)
(1,273)
Accounts payable and accrued liabilities
(7,716)
3,927
(19,329)
16,215
Cash generated from operating activities
76,008
76,189
329,458
248,099
Income tax paid
(8,401)
(4,629)
(49,604)
(26,689)
Net cash from operating activities
67,607
71,560
279,854
221,410
Cash flows from financing activities:
Cash dividends paid to common shareholders
(21,836)
(20,207)
(82,591)
(69,886)
Interest paid
(10,050)
(11,631)
(31,538)
(35,488)
Repayment of long-term debt and loans
(2,510)
(1,146)
(7,753)
(22,688)
Net proceeds from Common Share issuances
5,451
106
7,054
2,141
Changes in non-cash working capital items from financing
activities
33
(93)
(28)
34
Net cash used in financing activities
(28,912)
(32,971)
(114,856)
(125,887)
Cash flows from investing activities:
Acquisitions
—
221
(5,781)
(72,100)
Purchase of property, plant and equipment
(23,924)
(17,449)
(122,750)
(87,101)
Proceeds on sale of property, plant and equipment
6,591
5,490
19,508
13,538
Purchase of investments
—
(546)
—
(546)
Interest received
316
119
931
740
Other assets
2
10
(25)
1,466
Changes in non-cash working capital items from investment
activities
(1,521)
779
238
739
Net cash used in investing activities
(18,536)
(11,376)
(107,879)
(143,264)
Change in cash and cash equivalents
20,159
27,213
57,119
(47,741)
Cash and cash equivalents, beginning of period
102,479
38,855
65,934
113,313
Effect of exchange rate fluctuations on cash held
134
(134)
(281)
362
Cash and cash equivalents, end of period
122,772
65,934
122,772
65,934
This news release may contain forward-looking statements that are
subject to risk factors associated with the oil and natural gas
business and the overall economy. Mullen Group believes that the
expectations reflected in this news release are reasonable, but results
may be affected by a variety of variables. Mullen Group relies on
litigation protection for "forward-looking" statements.
Mullen Group is a company that owns a network of independently operated
businesses. Today the Mullen Group is recognized as the largest
provider of specialized transportation and related services to the oil
and natural gas industry in western Canada and as one of the leading
suppliers of trucking and logistics services in Canada - two sectors of
the economy in which Mullen Group has strong business relationships and
industry leadership. Mullen Group provides management and financial
expertise, technology and systems support to its independent
businesses.
Mullen Group is a publicly traded corporation listed on the Toronto
Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on SEDAR at www.sedar.com.
We must bring together the worlds of SOA, BPM, Cloud, REST, and HOA. The secret to getting all these architectural trends to work well together centers on how we deal with state information. We must first separate application state from resource state, and then subsequently take the co...
New breakthroughs in cloud-based data management empower databases with the necessary elasticity they need to be truly responsive to the ebbs and tides of supply and demand.
Cloud computing allows all capital assets – computing power, memory and storage for example – to be exchanged a...
Legos have been a part of my life for as long as I can remember. Some of my earliest, fondest memories involve Legos - starting from a small car made from a couple of simple bricks to very complex spaceships and wild creatures. I’m always amazed at how nicely and cleanly they snap toge...
“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Ge...
Our more interconnected planet is accelerating the adoption and convergence of next-generation architectures, in the form of cloud, mobile and instrumented physical assets. Organizations that can effectively balance optimization and innovation, will be in a position to leverage new sys...
.gif)
We must bring together the worlds of SOA, BPM, Cloud, REST, and HOA. The secret to getting all these architectural trends to work well together centers on how we deal with state information. We must first separate application state from resource state, and then subsequently take the co...
New breakthroughs in cloud-based data management empower databases with the necessary elasticity they need to be truly responsive to the ebbs and tides of supply and demand.
Cloud computing allows all capital assets – computing power, memory and storage for example – to be exchanged a...
Legos have been a part of my life for as long as I can remember. Some of my earliest, fondest memories involve Legos - starting from a small car made from a couple of simple bricks to very complex spaceships and wild creatures. I’m always amazed at how nicely and cleanly they snap toge...
“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Ge...
Our more interconnected planet is accelerating the adoption and convergence of next-generation architectures, in the form of cloud, mobile and instrumented physical assets. Organizations that can effectively balance optimization and innovation, will be in a position to leverage new sys...
