Mullen Group Ltd. Targets 10.0 percent Growth in 2025

Okotoks, Alberta, Dec. 09, 2024 (GLOBE NEWSWIRE) -- (TSX: 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:

1. Prioritize Margin over Market Share: work with Business Units to optimize operations and drive process improvements.
2. 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: