Canadian trucking and logistics company Mullen Group (TSX:MTL) reported a double-digit jump in revenue in the second quarter Wednesday as it reaped the benefits of a strong freight market and acquisitions.
The Alberta-based firm reported net income of CA$21.7 million ($17.3 million), or 23 cents per share, on CA$312.5 million in revenue in its second-quarter financial results. It beat analysts’ estimates of 16 cents per share on CA$310 million in revenue, according to Yahoo Finance.
Revenue jumped by 21.4% compared to a year earlier, while adjusted net income rose by 10.6%. The growth came from a combination of acquisitions — Mullen closed five during the quarter — and a robust domestic and cross-border freight market.
“Consumer demand, which has been one of the steadiest segments of the economy, continued at a robust pace throughout the quarter, and finally we witnessed strength in the demand for ‘freight of all kinds’ beginning in June, a sign of a more positive outlook for business investment and capital deployment,” CEO Murray Mullen said in a statement. “Acquisitions along with a recovering economy were the primary reasons for the improved financial performance year over year, a trend we believe will continue as the year progresses.”
The strength came from Mullen Group’s LTL and logistics and warehousing segments.
LTL revenue increased by 24.3% to CA$126.7 million, while operating income before depreciation and amortization rose by 14.6% to CA$23.5 million. Logistics and warehousing revenue jumped by 45.7% to CA$120.6 million as operating income before depreciation and amortization increased by 36% to CA$23.8 million.
Mullen Group has been active on the acquisition front after largely sitting on the sidelines during 2020. Ontario-based LTL carrier APPS Transport represented its biggest deal to close during the quarter.
The company’s growth trajectory appears set to intensify after expanding into the U.S. with its June acquisition of Chicago-area 3PL QuadExpress.
Mullen Group’s specialized and industrial segment — which serves the beleaguered western Canada energy sector — saw its revenue drop by 9.7% to CA$66.4 million.
Murray Mullen will discuss results in a call with financial analysts on Thursday.