Mullen weathers weak second quarter

ALDERSYDE, Alta. (July 29, 2002) — On weaker demand for oil and gas drilling in Alberta, Mullen Transportation reported declines in revenues and profits for the three months ended June 30, 2002.

Mullen, which specializes in transportation for companies in the oil and gas industry, recorded consolidated revenues of $61.9 million for the second quarter compared to $75.6 million during the same period in 2001, a drop of 18.1 per cent. Operating income fell to $7.0 million from $12.6 million, and net income to $2.6 million from $6.6 million or 44.4 per cent and 60.6 per cent respectively. Basic earnings per share were 18 cents as compared to last year’s 46 cents, a decline of 60.9 per cent.

For the six months ended June 30, 2002, consolidated revenues were $150 million, operating income $22.5 million, and net income $10.5 million (72 cents a share). For the same period in 2001, the company reported $183.7 million in consolidated revenues, operating income of $35.5 million, and net income of $17.4 million ($1.23 per share), representing year-over-year percentage declines of 18.3, 36.6, and 41.5 respectively.

All references to the year 2001 are from continuing operations. The results reflect a restructuring which separated Mullen into two separate and distinct publicly listed and traded corporations, Mullen Transportation Inc. and Moveitonline Inc.

CEO Murray Mullen said the company had prepared for slower oilfield activity. “We have streamlined each business unit and eliminated those portions of our business that provided minimal profitability,” he said in a statement. “This has resulted in a loss of some revenue in the short term but is a necessary requirement to ensure our continued success. Our financial position is as solid as any time in our history. We exit the second quarter with a clean balance sheet and approximately $24 million in cash, which we will deploy when the appropriate opportunities are presented.”