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COMPETITION WATCH: Mullen Group Income Fund reports record 2005 results

ALDERSYDE, Alta. -- The Mullen Group Income Fund continues to build on strong results in 2005 with the expected acq...


ALDERSYDE, Alta. — The Mullen Group Income Fund continues to build on strong results in 2005 with the expected acquisition of a few more companies.

Mullen has entered into agreements to acquire three companies for total cash consideration of approximately $31.0 million. The three acquisitions are all scheduled to close Feb. 28, and are expected to increase the fund’s consolidated revenues by approximately $36.0 million and operating income by approximately $10.0 million, on an annualized basis.

The planned acquisitions will bring to the company a transporter of crude oil in Saskatchewan, a heavy-haul business from Calgary and a flat-deck carrier based in Edmonton.

“These acquisitions are consistent with our strategy of investing in profitable and well managed businesses tied to the energy business in Western Canada. As was the case with our Pe Ben acquisition and our recently announced transaction with Producers Oilfield Services, these acquisitions provide the fund with new growth markets and strengthen certain areas of our existing businesses,” commented Stephen Lockwood, president and co-CEO of Mullen.

Through the course of the year, Mullen generated consolidated revenues of $591.7 million as compared to $470.9 million for 2004. As well, net income increased to $70.0 million, or $1.51 per unit, nearly doubling the results from last year of $46.5 million or $1.03 per unit.

Mullen attributes three main factors to the strides gained by the company during the 2005 year. Income generated by acquisitions completed, increased income generated by businesses owned by the fund during the year and the reduced income tax expense resulting from the conversion to a trust.

Profitability in the fourth quarter improved with operating income increasing to $32.0 million, up from last year’s $23.0 million. This increase resulted from the acquisitions completed in 2005 and increased activity in both the Oilfield Services and Trucking segments.


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