Mullen (MLLGF) 23 Apr 212021 Q1 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Mullen Group Limited First quarter Earnings Conference Call and Webcast. [Operator Instructions]. I would now like to turn the conference over to Murray K. President. and CEO Chairman, Mullen, Please go ahead.

and Good conference Mullen quarterly to morning, all, call. Group's welcome

SEDAR, I are I'll materially. can upon the So our today's actual and number commence before review, assumptions risks and identifying filed forward-looking are to documents, and and that disclosure the of and uncertainties uncertainties presentation may at remind in statements are information www.mullen-group.com. expectations be based differ on found current results subject which a Further contains that everyone risks,

this with who's VP distancing, VP; entire Senior Stephen So Corporate of corporate I is, we're as CFO, everyone morning, Carson Maloney, and controller. our me and I'm Joanna Services; and all Scott, else executive have our line is Richard social team, who's which in Urlacher, our the Clark, Secretary assuming Corporate

the and good virus caution nothing active is is ample for the quarter thanks COVID our very of recover financial impact minimized, quarterly thus once improved and this first -- post news. an that reviewing growth. control, and first will to XXXX of And X the the in and margins. for almost will There joining freight strong ingredient in far recently and on economy that get I'll the us discuss financial that be be show realistic, brought COVID. business suggest quarter results update we've really of environment is acquisitions looks So But quickly evidence and this be announced what participating I today. demand the freight for we and like They will the call our XXXX. view We'll under everyone until provide is certain. for is really or update the

need has to U.S. for only the been look and demand better. never That freight economy on is to fire Now guidance. we

and quarter overall highlight and emerging the I before trends operating Stephen what turning business. do, call significant So over recap performance. let the results impacting be first that later shortly, as our and to me But logistics events to the I'll see our I chain, supply are

once The is health COVID disaster evidence it's of supreme. seems impacted Yes, our and the a but widespread. has of Now It insatiable nothing care the all from consumer. consumer the is lives. to perspective, again, rains compelling appetite a stop

experience, the visit and boxes. ease in-store So But consumer with online been the buy spend. our usually chain dramatically. revolutionized changed though warehouses the consumer supply has shipped can this fulfillment even goods shopping are from direct which in the disrupted, e-commerce has has Today, transformed centers, to packages you has the also or home

the boxes crying So if more it's you're and consumer, all To of in in distress. shop. the trees packages see that the and out smaller lots cheapest industry, booming. the recycling. way necessarily process. change of Where van industry, shipment back. it is is the it also especially kept freight however, in mile the has final not has delivery send has and has and changed But you need like is don't this not strong. -- This the convenient now it, trend cardboard most component occurred are truckload Besides, if deliveries, the the demand, only We safest, to emerging container industry

consumer the has LTL outperforming. from primary In compared amount packages business pallets of to freighted I as diverted been retail essence, As malls warehouses. to our this trend to home significant and to reason mentioned, been smaller a more the is storefront. delivered And delivered the the

chain safety demand see disruptions. about to capabilities Second of in the new due cetera. sickness workplace chain and very reduction combination is supply by a consumer additional spoke issues, I supply and trend tight. There's I manufacturing is driven a It's just protocols, strong et

occurring placing now the are tremendous Mobilenext concept strain just-in-time that's and agile management. As on a of regularly result,

In is management capital least costs three, this return of inventory just in investment. seeing be prepared case of yet personally pivot to warehousing. towards not might higher a believe Number implies as forward business Canada planning at and to fact, I and lots

are I'm occurring component primary there's reason, there because group Columbia new company platforms, regularly the Number quite occurring Now transport flat opportunity capture the is is deck are continues being interest acquisitions and profitability know to X Apps start not which what the we lag. or They the capital. and rates continue the -- of group, are mega This our of industry to based to in sanctioned Ontario, Banter logistics size report goods acquisitions we in space, both it's underperform. I'd and new to and once companies. XXXX. Canadian provide a it's growth brand this space and out is happy four, British importantly, name called Mergers major and projects synergies. And enhance we of trend of most not to and have found capital of with specialized the the in hauling the call cost And consolidation. trucking the

the In acquisition critical in component fact, look we strategy. for Otherwise, expensive. acquisitions too our synergies most are are

In company. increased Manitoba. based a management support with ownership, our Let me give ago, short It's years capital example. in team profitability. operating under called and doubled revenues has we you Group acquired Several approximately the X platform our Gardewine years, perfect the by another Gardewine XX%

is new. is fifth the is technology. nothing I we changing So boy, but it, it and The plan. changing fast. knows see trend about Everyone know This

tracking security. are preparing data to inventory We're Here customer, at systems, group, bringing management real-time revolution. on and we we're our to for the handheld it a heavily when every data technology. digital leading-edge and in We're investing comes management

our in our accelerating investment are We delivery vehicles we minimize ensure energy-efficient to environmental footprint.

it will transition a is is some but irreversible. this Now time, that take

last rising, getting is nearly reality, focused Commodity So meet industry takeaway we've and evidence recover to within have now additional are collapsing The and is the balance started at capacity industries year. six suggest new changing And prices to is oil to already in there's gas the ample restored to lastly, standards. journey. pipeline sheets Canada's natural reach. been closer after

only all, a in service a this we matter see quite I'm all much more time. but capital it's will better we time for have before segment bunch days. command yet, to industry of definitely are So ready constructive some the to not been quite of we believe than

on emerging leading-edge always change. about So delighted I'm report not looking organization to a always We're each forward. is been well positioned. of to and these We've this trends, is company, our

year, results yet, the no restrictions construction investment. noticeably, and levels. major just was a and at government-mandated results projects, with coastal back pipeline not the Logistics other segment to government remains Canadian where I'd by pricing continues up due reduction pipeline oil specialized And gas to comment Mountain to as slower growth quarterly Now was LNG a decent, solid in be down before goods In Stephen. primarily and crude warehousing which quick Kitimat really but the like work where to the economy to LTL of slow oil industrial see I lack production the due was Trans as were distress and of activity capital them. it year-over-year. X plant in on line words, last to the over and turn held was of closures Nu

would prior our to guidance within be caution overall, line with factor. COVID deciding were shareholders, So our that where the in results expectations our we and

you're to turn give on you'll Stephen, results. detail you. It's it So little over the now and more I'll you, up, quarterly a all

good and little Murray, get bit you, I'll Thank shareholders. morning, fellow a more granular.

interim that explain contains our performance. fully the However, details report our

some high only will I level provide such, As commentary.

come to for contain For Pacific below the in the economy. quarter, by the down consolidated The segment less-than-truckload grew warehousing pandemic segments by million continue and strength in as spending. the in of economy, X.X% Industrial declined constrain XXXX. to underlying year-over-year, to to virus is of over specialized and still reimpose acquisition approximately logistics governments it the to to in us resurgence Services will surprise to haunt future. likely compared situation negatively and fluctuations declined given continued X% or as the due revenue Express. has the measures nature effects by foreseeable this should to revenue, current revenue $XXX.X Revenue no XX.X% in million This the start-stop prompted Coast fuel and by $XXX.X and impact the COVID-XX consumer as X.X% anyone X.X%, the pre the respectively. for this Revenue acquisition in of containment efforts for as consumer-driven the and part due rose of Adjusting virus levels surcharge to

our remain on count prices, rig below and pre-pandemic customers cautious, model. higher analysts despite work know I the many oil levels. remains sequential-type Additionally, well

bad remain noted weather post-holiday performed with So $X.X segment mired and or seasonal X.X%, million, affected especially COVID a on within than XXXX despite a a XXXX but poor sequential bit by year, historic for of segment was was segment March, historic effects shutdowns. million, results cautious it basis, that warehousing was February by COVID more by be of was reduction consolidated sequential Simply sequential our basis, down revenue On recap. March due par on the COVID-XX to PRIMA pipelines. trend. our was largely shows trends segment. prices, decline in that historic construction S&I of better the sequential a and a activity The The on better improved the quick of $X.X however, This saw which better but less a par LTL and by up with put, logistics X.X% the COVID-XX. decreased on S&I by a basis, prior it XXXX seasonal that customers impacted X.X%. and little of as initial was should effects typically than impacted commodity

operating XX.X%. by amortization income LTL $X.X increased segment and $X million. or referred commonly million EBITDA X.X% increased EBITDA by to profitability, for to As depreciation the as Segment in before

logistics million, and million specialized segments the $X.X warehousing and by Services those $X.X in However, declined the segment, Industrial in respectively.

set did in small as most rise a the drop the and in the it way prices, lags a down, or like is -- always on win revenue diesel have on after of and loss XXXX surcharge and to diesel year-over-year. we was way management measures, number for small this generally over virtually result the revenue, prices focus last up. benefit we without on cost S&A underlying higher continued but prices higher Qs, rose EBITDA higher to was fuel of also dollar achieved expenses that compared able especially number This that despite basis, our Qs a of Fuel XXXX, course, by but flat quarter XX% absolute segment. margin the million primarily at down diesel on comes million within in XX.X% fuel the XXXX, from operating due for the control XX.X% adjusted $XX.X $XX.X S&I dollar in part in Qs, be any rising cost fixed through My mitigate as margin revenue. to averaging of will hope cost the the fuel is surcharge effect was Of we in nationally

Of always course, higher but continues dependent, to revenue is COVID revenue improve. trend the

was Looking the was from million. we at notable for during prior period million. quarter other $XX the million, activities exited at items, cash $XXX.X operating from year flat essentially Overall, quarter our net cash bill and with the $XX.X

cash the balance changed acquisition to the of our after However, materially Group. Manchester due quarter the

analyst note community, subsequent within the see paid statements, our Note financial Banter prefer the how events our I'll For you can for to XX, much you group. we and

You the similar group revenue. note would also has that apps

expect And so you similar would consideration. again,

after Although investment and we interest as dividends. well the have for these announced But as yet. apps quite taxes, this group after obligation investments not our or paying Banter publicly consideration

undrawn. $XXX Our of line million remains credit

we're today, of money. So still not borrowing any as

and or is on word protect unprecedented well if initial ethos to frontline the generation of Profits quarter livelihoods. implementing a new good, we financial were unwavering, quick in continued environment. expense or time, they this but a our Last wholesome protocols lastly, taking and inhaled or the our So we safety at of of approach government providing programs not of safety first and lives steps stages help the work safety workers come year results ESG. any By pandemic, and and that improve. to balanced took are a cash

deliver to X.XX. economy In to Our improved full to each ratio injury And essential was and note, our recordable commitment every goods reduced personally rate would tirelessly safety by on our compromised short, profit. time our thank will moves and are to and our on. covers front-line workers day, not be our lost I X.XX, total ensuring that claim who like

million or review Lastly, you note EBITDA up our to thing. time will to flat, profit and total down. legislate that did executive us for our not have was doing information our Qs executive compensation those $XX.X but had That's virtually government put, was our governance. excluded right XXXX's circular, was of in by the into who Simply X%, good calculations we compensation. need any not We share of

pass the that, Murray, to you. you. Thank with conference back I'll So

disclosure. of that update ago Folks fulsome. comments Well, Good have I -- was and typically, some new was I Stephen. much guidance investors. X terms offer weeks Thanks, or last it provided are only in shareholders to that to wouldn't our because

full good-sized its all to well for drive conference the because profitability. I see need and recall, gate right, predictions I be to first example, for tracks our may call course, transactions stopped and as that Well, to sure now And got accurate. You ultimately pretty February, with that future the of right get expect economic returnable for XXXX to the strong finish. will be announced part following. my out we we X the a be growth slow year in COVID completed of growth the seems second that might in I and it results part with

Now in the widely there, words, gets quite Canadian economy will for that there is the the COVID hope happening successful in post on dramatically example, distributed. what vaccination fall In out program cases there rebound opens economy I a and U.S., not watch is we're a I'm up. summary, but other belief yet. COVID.

when. know and will of There ingredients money is with it's pent-up we liquidity. be in-store what's drive demands, only So for Canada, both financial the The system and recovery. economic will loaded these

capabilities. and will networks secret improve the is spend stronger and The just company we operating our apps continue, wider addition is the And as remain robust Canada, have will demand with Now warehousing with for any business. LTL and in of steadiest which of a freight sauce consumer the increase only in recovery profitability. and LTL for additional Masters demand Logistics marginal one best returns. pricing of poised a to leverage, then comes

construction still then even there. advantage the the the unfolds. in But some slower And year We see oilfield shutdowns. opportunity I are positioned to to well when due light Pipeline take is our as COVID remains and than year last segment is presented. industrial work activity

the -- In like into it. pushed the be now will last year, originally to this it's good unfolds. XXXX, fact, of year I at least will narrows better. it Driving planned our we portion it And couldn't going be be? than stronger how suspect looks for out year but drilling a had will work XXXX lag XXXX But levels, still that activity be the difference as

to as Our we we oil increases. commitments. positioned ESG new the industry strategy it relates natural to and we stricter to the where industry capital can gas is demand to as make are sure to see help business invest capture adapt And

digitizing technology to the inventory inventory paper -- future systems is product These inventory the And safer, also be our for warehouse will Every shrinkage, them in -- we investing we it's tank can be we've and the brilliant of We're minimize storage drill for real-time can but use Powell. goes example, importantly, customers will new our with invested are clean handheld in bar hole can adapt digitizing our management Formula devices systems businesses, cleaning. that the of will X already in it our system coded, remote we product ensuring at tank be what easy to now technology inventory efficient. the easy management example, track of required It's time. e-commerce guesswork entry data. people. real art old For down This state tanks. more it's with to by data

a business. the exports to this me, So believe because the share is capture adapt we as big and it you if will only It energy remains industry. best market shareholders it data, gas to don't is And we look my trade message can as at our natural relates rain changing, to large.

companies and Lastly, realized. technology are make businesses approach invest synergies strategic the top this but acquisitions. S long-term that to To teams growth, reiterate our intent attention only revenue of We to or I provide efficient really scale. targets And to more be platform always acquisitions strategic here cash in look to acquisitions to we more And our seasoned then free investing can X deliver can in acquisitions. how means will management generated. will opportunities line continue look create good these announced acquire in to line can and and then headline Canada, for we grabbing always add the drive recently We performance. see value. me, bottom tuck-in right I type be

open up lines today, So and to for it us session. I'll you. Q&A let's thanks now for Operator, with turn the over a joining

Instructions]. [Operator

from Spracklin Markets. The first Walter with RBC comes Capital question

your here So I I'll with guidance. start guess

X/X weeks guidance And might I because if seems closed. a revenue major got know provided your the you of there that from X squares officially color under a us? give bit that You perhaps couple Is little belt be now. there on the if X/X, your in X/X, you guidance and only that it guidance split. it and separation you've your changes, guidance now acquisitions you're up quarter going they're there mentioned few the behind first a is a as any can when you've about for equal -- barring of us reiterating I or But on that guess, bit acquisitions X/X, seems got that X/X, weeks your any ago. where then still that Depending little don't

is probably and the -- warehousing. logistics skewed going come special and Yes. of I'd be in to the growth now the it's because in going most say to that or acquisition both the segment LTL

our is now. quite themselves, because the been focus side at. the for growth primary that some is go which where segments, that's those articulating So down those by We've X time. will just In specialized right

think acquisitions, full the operating in these be we They're at. I of put totality little margins, bit a XXXX. as somewhere quite fiscal standards. And basis where around year a gross below that both think on you total if $XXX million overall, will -- would in them So we're not our

will a going at, below. want little it we them. of -- take substantially us bit where that's where they're But not they're margins little move time to to those So bit but a below we're up to overall, be

going to about. what going So to we're of kind what that's we're target

we've think on for from X.X, I pretty X.X then think I you And your same-store around somewhere -- add shape we're So in acquisitions. good targeted sales. top

then to I'm X.X at what basically and year, this moment. X.X year, above next for be seeing think, we'll the for X.X is I in now So X.X the and

similar, With now. at Okay. to margins being where somewhat right I think, we're

great That's Perfect. color.

risks, Second I question Or environment, enough if solid here nice you supply we at Is I chain above you at bottom something consider? talk you all mean, about way. that be as well. Murray, some the or above economic saying mindful risks mean, the volume All drive that should that -- to even can failing lift partners we congestion, as there's is the really bit as do that demand our And you. control over moving the Is lift on think all something you a if you comes the get coming are have it a should parts the rails are that on said, volume you we what expectations. of? Can line? or it it seems expectations in

honest you, efficient are Walter. bottom line drivers be in Well, the themselves to with I of think not disruptions

don't it's as disruptions, get revenue trucks or et whether cetera. delayed, are much if factory from your I think them, we that our

in So disruptions of seen the economy. in happen parts that chain essence, supply we've the certain

were. shipping very that long as to pay as they're as as somebody's line. quickly, off then Originally, an Port too sitting to starts lines, well, Well, example, it wants higher cost. way ship efficient goes much Now, rates. now. the it They're shipping But they in not got

they're only And and thing the have look take ocean happening what's at You with distribution here. skyrocketing. conversely, think to And freight a I same freight see the rates. you'll in

At to bottlenecks, will kind not really is as talking what We're an have the way, make the of it I part going makes of -- supply. in demand. that's by a Well, it that look, some about. that same in increase time, what stronger you're going and look think contraction there'll demand be be bottlenecks that's to efficient. than I'm of

have to tell of the the And teams price chain. supply appropriately. So aware you, our fully supply job can price we're are control I it chain. paying in of We that the is not inefficiency my don't

our our you spread, we control that We of be right costs capacity. have will business tell managing now. and the And aggressively, very managing we'll very, can and be I that

a that. a about the that consider there? that might quarter really on more buyback was you've and that the present surprised now Mary. put now. little something the seemed we you that's tone call talk here great like And question your on the more Can to of the kind you're and a to to in I'm wanting curious couple certainly, on announced. really any year acquisitions now those last us given here to you we've buyback? in on is opportunities Or perhaps given were answer. your buy this Last see I kind zero Just strategy -- encouraging, It's on doing of acquisitions focused year buyback in the X themselves, pause? surprised of refocus seen see was through that bit early And to you're going

accretion our to blunt our that you, you with can growth. like from and Accretion we company Walter. necessarily. line themselves the making the Well, shareholders acquisitions to bottom signing They and still best by line all giving driving in you profitability acquisitions is things, give then are real investing better. right returns get the Acquisitions said comes don't I probably those not synergies you, top be doing for

below view, our in is. where value price well So our stock its is still

about some stock. that, we we'll The and just is the stock. probably advantage the put I get scale we've panic, year we'll we we But plan plus XX% really year. We to price to back of it were But buy panicked massive lucky, the less higher our going back to And market about our do the took -- but of guess, goes, buying to shareholders to the buy. higher so price doing ago, share goes. happened a continue announced, million of last back, some $XXX continue last we'll year buybacks, that and it into

So it Steph indicated that doesn't...

share buyback at It's... all. acquisitions do Our doesn't to ability our impact

would it to to down Or... undrawn, versus draw that's do buyback you got You've acquisition?

No, we or do funds cash cash generate enough buybacks. free to free got and CapEx used we've dividends that buybacks. is for share The

So...

And then you got the...

got line we Then operating do to growth. our

comes question Scotiabank. from next Konark Gupta with The

So that a for maybe second you kick off announced with acquisition the recent Bandstra.

mentioned Stephen Wondering any you revenue one? as was there, sure I'm a some pronouncing if I it assumption million suggests Bevin Astra. it seems So and not for I'm intercompany paid consideration it then right? there like second, think in between there there's the disclosures, $XX cash if number And that. debt in

Yes.

net do is revenue here? on impact what And you the a think consolidation

No, debt-free well-run you're very company the company. But right. is company. virtually a a very, They're

cash debt-free. So basis, net on they're a

that side. from the on on debt add anything won't -- I So

brand over strong Columbia years, in in really is family British and well-run we typically a managed see it's which well So the conservatively company exceptionally businesses. what

capital of that. of in is the little They some or mid-XXs think, some stuff. network from be consolidate through intercompany they would I perspective, So XXs, low individually, or up maybe that guess. because you But be XXs they facility stuff And maybe step OEM if around high kind of might of I and been, have the assets. dealership their of a equipment kind the this answers that bit bought repair There had intercompany there. the

I the think we that's math here. see

Yes.

is, $X dealership of what as the repair you So $XX around intercompany facility repairs well. third-party guided do revenue $X we've the and million of somewhere out Babin in million. then towards about maintenance But and million essence, it's to truck

not really significant, so that it it's in going one, the bit add a isn't into remind but to segment our operation. I'll go to and everyone, you'll our a the it's specialized trucking material certainly of and -- mall context greater So little because

kind it specialized. fits mixed bag into So that of of

That's good color.

that follow-on I if So can mantra. on

mentioned each segments. returns release for the that press of expecting also individual you're think the I

So were how think SI, returns similar I said the margins differently? referring to the and when you to Or L&W returns? you should about

the -- they're margins we've they've asset On got -- similar lot on that the a there there. transportation basic side, of in an asset-based base got

to as but So to they're going darn not we've pretty similar maybe what high, got, very margins be quite close.

there I the quite good it's typically and is that saw, margin on in some logistics equipment we sales in deterioration specialized have margins So there side, as your of would don't make our percentage as large see and like a warehousing any any the expect aftermarket industrial doesn't because repairs, you segment. sale of you And you of OEM off margin equipment, and maintenance most that of on a sale service. make don't parts not

little brand. an distributor of really there said, truck depending And how the partly depends, that's of BC it brand. Volvo there, had on a pretty strong sales So got and OEM that the cancers up in could many the the are fluctuate Northern great users a is Konark, they Mac business reputation during big they've quarter. good be and Mac happen to Volvo bit, up brand quite a group And as I the a and Bevin model

I why dealerships. know bought the now they you guess, So

good strong a So family to that got credit a integrated -- give whole business they building I really did had a for job. solution. a model. good really They

this -- it Right. Or to ask as just It's that's that from one-off like segue that because an OEM stuff change well. guess is And MRO condition as a in a Babin. some buying into strategy transportation what that's you a came I I your of think? of what kind on you wanted provides Benson?

really disassociated. difficult intertwined. spread It passenger and about. so group integrated It it is out was was basically It's or a one-off the to it condition. as It allocate what of and part to was out just a all it's

get has I to the Bandstra that business. say it's integral operating very, we took targeted and it into Whether stay Smorgasbord, yet whole the we But now, model. not, So the time. in right wouldn't But to we'll then it OEM determined. very total or for be over to figure we out

the on front. That's great. acquisition And one me then for last

I So your or would a you that consider are remarks investments? services commit lot ready invest, decide prepared this capital the business invest not said yet to to oil do to think of and point. you When well you gas organic as as in in you at acquisitions

to -- Now, very is I that to the to on haven't going quite that. I business be would capital intensive. that's oil so and gas interesting. come grips

we'd emerging see don't think with I more be an I capital rather think that trend that -- acquisitions, I to and growth go in as honest for internal new than business. probably that you.

old don't we to whips. gas do way the side. do style for look new think and I value old see we think you'll model we But can service investing at customers. don't and that acquisition see acquisitions We'll in provide us that. a buggy the oil I want So don't in where

not means For the to change adapt companies to example, the like in stuff world. or that, But has that, and investment chance. acquire more new not a drilling we're going that industry And with to capital.

out landscape. And at be bathwater not it It's of once here. be looking baby highlights that's important industry growth throwing quite This so not to I the that already an to we're the couple to still we're going Canadian was, important engine but it's the those you with of gave a And where is be the going still to going to Canada. opportunities.

if is is, our I And internally, it's looking keep adding and at doubt eyes -- capital it our just to be way. so we'll preferred I we're think, going But If open. growing acquisitions. it's

with from Securities. Next question David comes Ocampo Cormark

can strong that Chairman's weeks think, quite down mentioned sense you year offset is a start wind couple of on a from that ago, while I us demand active, expected pipeline message, in has you will given remains you to it off activity give And XXXX in and how Murray, some revenue other the you're in pushed perhaps bigger the your this question that been can seeing is, with fall of businesses? off? much to your

Yes.

then you've time the So said that get drilling articulating the that capacity quite is feed can I the first, pipeline new add build we've activity that capacity, we've think to been demand. and to what takeaway essentially which got when new to takeaway you is some capacity,

and increases, activity we activity to David, drilling and it a happens, got to stream, what, some is which plant going be it activity you've the should and capacity be takeaway pipeline comes LNG So will laggard, that falls is is momentum zero-sum probably that fill drilling finally then the the when a what that as we probably pipeline. net off gain game. XXXX really on thought built, think was And

will But then But next the it's years. but plant. X like think have now over pipeline But increase out off spread pipeline to a So business I XXXX, year year be sharp I you're the by probably pretty pretty whole this built the bunch looks built -- thought in have, a we'll definitely side. -- would be year, before it's be it to start that don't and we drilling be it now would active fall of suspect, a in going going time, by activity. will

it's net-net, So think, I about my industrial at moment. probably is right expectation keeps -- flat, the our specialized

Okay. That's and pretty color. helpful good

we fortunate. -- that's were And -- I mean, Yes. our

not drilling I of fortunate. a drilling Yes, we we It's will It's business suspect down. as division this nature drilling as year. did And but that crushed diversified activity well, division had pipeline It's pipeline was got that then activity come exceptionally down activity came came the our back. well does model. because I and well. -- that last As it's know, doing the

you. So that's what diversification gives

size discussion just seeing. pipeline? we are think to Banter noted you are seeing that they pipeline apps of circling on back they I And are you're When All the then the the And Or several similar in acquisition guys group? more here with guys that in you're you think that opportunities. your those, about right. tuck-ins in

is building, all time. the apps in view companies the Elvis, like come see They are don't name companies. he's around group brand brand very are the but My often. baster Look, name don't you them

And got for opportunity make when trading so And sure go company to around, the you then use company, seize can synergies. name -- I'd when a you've dollars. brand but can you've growth just you're it's or there, them. what got Otherwise, to call then they're and see you or that build platform a

capital long a period slow for comes a in trading over that of You're return really time.

we'll will at just tuck-ins ins, look those XX is every have Canada, do And So spotty. week. tuck companies opportunity what be we've there they're they're that then into we and putting in we XX those but The available more got.

best the Platform acquisitions scale those well So it gives and buying the it's and expansion. and get that around and people, in really say you're I in you why work of the transaction. run. is but and And you a get really from building good take the platform margin gave a It's where companies improvement return around the you Gardewine, it. margin got to tuck-ins you then company. long and example around expansion And your smart get a out scale tuck-ins invest company in team, growth on it. makes you drive new build a with technology and put that you you your management you a technology. that's good size good then Not you platform you've that have heavily and And --

and platform think, we'll I once happen, So in a it lots tuck-ins come while. then ones of, those will look around for

or either And back at can't because continuing for And buyback shareholders. the we're end capital smartly, harvest don't be find -- more it going all I'll right the of dividend. free I'm chase cash, the free We'll to we put give we to think to to I growth. day, just not And shareholders. looking but if and we're to then cash. If it work, will always look those. put for through I opportunity, with share work honest then that's -- I'll just the we'll

companies? see Are Right. And paid pretty for of it's most terms in you a the uptick in active an consolidation. multiples for starting to been truckers year

over different so place, capital. interest home Well, rates, interest home we I obviously, to Yes, is mean, the than no available prices a up, X valuation of prices. all function go acquisition I up? goes rates mean, gone It's all it's Have targets. liquidity have

comes The Securities. Aaron TD with next from MacNeil question

questions on We've couple the follow-up acquisitions. got a of

in revenue? what the specifically, And driven? acquisition, drives exposure? characterize I guess, Transportation capital Bandstra it or it of is you sector terms the how On would Is it driven consumer

on kind of a BC group, I they are That's in of of D.C., be BC, active. in they're which to as with they a stayed based kind honest component -- the And home They're mini-Mullen a you, they've Smithers strong -- said, have business mining model. is a because in diversified. They're if close because very to business very they unique kind you. very

So that's a Rupert. -- in in business. they Terrace a good and facility are and plant in Prince chunk have their Kitimat and a they They have in up of

I with side, -- kind think the could they're manufacturing. on Tinto Rio you and a of hybrid in really aluminum So of is which kind tied of consumer

So the aluminum over place. the just ships all

to now active kind they're a very going core on the be right that's development LNG So carrier of going Kitimat. now They they're Tinto. for with Rio are in

spot that then Northern where Lots great servicing, builds all of model is sweet good the a and And service. communities They they got out. of in LTL, the the started they're business lots timber. the forestry. BC So as with that's with this of all business. they've chunk

of I -- of network. had at think just got got a X/X last bit. and see around they it's to a up I service northern the Columbia. business. British And be somewhere be great over they So go the got and a is going in They a most and probably And brand-new of central to chance look LTL of it part part Vancouver that and just their facility they've

So our really in fits that In side. our LTL overall network.

And that. the see a good some they -- about just synergy. excited the really That's I then stuff, just rest business. I'm they of where So run good

the a and of got to in not in in you capital the lot lot Fort as and And LNG British Northwest same development work the these is BC massive Kitimat, then projects people then there's -- force experience that modern. called Columbia. Alberta facility take challenges Northeast capacity of that that McMurray. And all a going With happen of

used to platform. That's that resources can at a we've we've making those -- capital share so it. they The -- our Alberta. from got Alberta, started is that got, were plan market path from us. and of going capture that more once call draw that better how existing And of is in the have in Alberta experience is got already of -- heavily weighted just And to learn we more weighted oil, a just that on then together share. some do that facilities growth to a kind more great there So our and equipment network capital and heavily how we is help BCs BC have province more with we've can gas. the which than -- And we'll to natural going is businesses can work of in down we DC

then business the I have had know interest you this question, on And but it. the now? historically like in model I side, Got pursuing a think to dealership the answer any dealership

one Banstra north. intertwined. And big mean, the No. they we'll core those It's up to for of They've communities. mullen the up to that remains it's I a No. for lot but got a because of group sure. focus in core network, a high business provide there. service the for make that largest This ones just came of so the the that, perspective, part from Banstra. not And it's group, sure

you a apps the it. on bit timing views the Or... And gears on acquisition. have Got of then close? Do switching updated any

review. a competition competition large-scale That's to acquisition on depends subject is Bureau. it that --

One is it and And so us, City that taking look it. on of to the is acquisitions it's applications just now. and one there them a Southern. hurts Shaw, actually made, us have Rogers all I maybe up at but their called desks or other CP couple CN, the And don't helps and if been a big other know and are right is Kansas

in not I'm fit exactly sure. the we queue? where So

over. me. Understood. it That's all for I'll turn

just with delay That's deal. get Competition the acquisition. have the -- expect of we you. Bureau, to ahead. to But consummate got It's what process. any go with honest flowing that's part the don't I it's through will blessing thing. just to that issue that We're And you only be to the

Michael comes from The with next question Financial. Bank National Robertson

quick I any of a wondering of Like had the perhaps fleet? further progress goals know you give has a us front. kind your to within be looking just what sort an any fleet? on out, vehicles rough And done idea helpful? Gardewine as you extra with one. of of target was could And respect if would that if color have progress I alternative percentage some you're you're at making I

in Stephen answer better said, than this moving real the look, towards vehicles. he's really probably I file, investments, is the where not already started active And one see next period delivery tell we're in Steph Well, right, delivery we migrate can easy this as over hybrid -- that or the I will The to local we're you, ESG denial, vehicles I and wins of forward. on Those time. electric those on full is am. we've vehicles?

call the we've since We've vans. or well -- we last and fall, That's order about Sprinter released ordered just we the news order, time. the what known. EVs on that Absolutely doubled

We are other also partnering on vehicles. with alternative OEMs some

But talking we're confidentiality now. trucks heavy we're So under agreement.

yet. see them. We're So things we still we're cutting electric wait making vehicles, trialing going electricity. to but them, we're certainly, as save have and other on But to be that. that going pure And edge. speak can't ordered that on we really of we're also certainly, not But investments on to

we've got are of then most led we've done a good there. but And those things I So call our sheds. simple. like whether them doing within won't what we're And progress now, lights made we warehouses, it's certainly snow say

cold. So of making sure a keeping freight, cold, different we're way that

investments goods. are transportation and these making of of energy into about ways new we're companies So thinking Canadian that from temperature-controlled

on again, we're all aspects. So working

footprint, just we're think sites. from warehouses, water older trucks So about your recycling it's It's vehicles you now water our like also ESG. to everything when wash not and your your usage,

can in been tell DNA go about ESG, don't a big, in DNA. we long I always our has and it's but on So you, our thing

be making that at, as we we're what so looking and well. trialing vehicles, areas -- in other which is are but a little the strides assured big And you're we get frustrated,

our because around deliver them consumer those to in now. battery in right trucks, a capabilities, that trucks are much fleet be heavy yes, future. our of going regular we're electric we too I summarize, has lane, that the to And or transitioning don't In medium-haul too or the the just Just they're a see trucks But hybrids into that I quite see trucks the of whether going to goods think storefront. the delivery electric communities, having component. become most that all running to

long say, I trucks is then be with doing a the model on be doing of So the just We'll a of trucks. EVs, say of But for better we're would we'll intermodal, opportunities. that's hydrogen. to say as is hydrogen all many more won't the CNG, I future. haul, which is LNG we'll would more But for apps, there. road in X investing there's dedicated with halls then which opportunities energy-efficient -- intermodal, at that's And off. lot new a be fuel these be invested, on of probably we example, doing X a so the moving then looking kind less environment, I final ways efficient. and And the we've and

as appreciate of I helpful if representing was your the over color. ESG fleet portion angle, larger Got but a of That's more there those longer-term. out you of it. just curious more get the sort I

quite wouldn't while. technology, Yes. I on every it for like be that surprised it a I year our would EVs will into investments double all doesn't suspect that

very level. So a we're coming off low

be don't if surprised double don't So it. we

of in will investments will EVs for Our quite some more It time. It and double. sort more. just a get long

-- wired vehicles all all Michael, although ordered new like for new our electrical we yet. up just haven't opened our Yes. facilities, we're up we said I And any facility Regina, that for

infrastructure, that lines prepared the We the that, there. power and eventuality that the going have and such we all are for

at we'll charge night. So the those to grid have

see cost side as a as of do longer-term out? helping the tailwind on sort And well, you that

-- I can't that that's know yet, you see you, think to what, I Michael. honest with be

there's I that I think -- there's perfect a this. win don't on be I to think, think going

required just think it's it's I shifting. and

you fuel, of I to cost considering do offset going And electricity think and set those it that help. are diesel that. something. our and/or the I then but required you're drivers is kinds So to our consume a clearly, to infrastructure have all drivers. economic don't different still And

free the just but -- the can world is Not that you looking all-inclusive the say, net-net cost -- is at the don't there we now. an -- my low, that It's us. look you're of is think stop is I is environment just rise well, or no cost high. with more

I neutral, I I towards you, more to pivoting But and think that's look at think all call it with that. cost we I would to honest society, be be cheaper the of we're to -- expensive. have think operate. they'll

to liter $XXX taxes currently go a fuel. government that to by a is diesel And is by just of tonne the on Trudonor and carbon the $X.XX the decade, Michael, announced end the $XX set

bit a So that will that's of -- inflation. quite

when inflation there So we're and it's to but it's carbon go by tax. going way, the least to replaced level somehow, all built and and whether comes engines going be whatever, it in into at rates it's in into field electricity some to playing freight

next Kevin with from Chiang CIBC. The question comes

you're If appreciate you yield. especially I from wondering could when give of more LTL sounds look really, at it's seeing -- volume pretty in you seeing you optimism industrial customers. any Are to your sense the and if some timing and of reflection like guess the of a south can I ask just a given between LTL pull the push are mix good, volumes rate front. but your the pressure, earlier what question about Murray, and have, But on -- vaccination business comments, you see customers of a just momentum. border today, volumes and maybe change you it yield me more consumer I'm the I in

least -- look pandemic that the through that they players, yields well the LTL have some to your a you're little on I seemed I that. seeing LTL business? weighed Is transition the as think that's early as at U.S. in at when had bit something in

so, think I Kevin. don't

think the you're say, cost for vehicle. I your But seen all able and line that. We in grow amortize your yield to fixed on kind revenue the will haven't the facilities We us management and the and of you line get more upside really is to over kind spend up really consumer yield all that because freight your fill with in GDP top whatever. side, as of think

shipments. cost little very to virtually X X, X, incremental those them. So There's

So get your yield that's where management. you

suspect to then we're our that And in And our some to I in what size. continue we side. for will see going quite and LTL out expansion time do. build continue as We scale

not particularly You're see It we really as LTL, the having much happening take a in squeeze more in it. Kevin, demand. side, facility will

have You has this They full. In are existing gone much old Canada, the and LTL facilities. can't in go in existing they're price of docs are to facilities country, Most to will those and real the only inner you've more. every in estate see handle how of seen city. the facility all you And up. the

so a And management. get dock. And that just of we're space yield pretty then your think you freight across quality the comes of to better good high-grade in I kind

going what that's is squeeze on going you're expansion margin dock, come low-margin So and where to thoughput from, -- the freight. much margin freight the to out

I Murray, And just Kevin. can if that, add to

you these into slightly why and demographic That's made hybrid between we've are van investments the at freight vans, or at they right growth when packages. around X. just X, and investments desk, our sprinter you've relationship So coming a all when LTL because getting they're you Sprinter across into all above but smaller, vehicles GDP, movement look smaller the larger spending, towards accelerated that's consumer and seen take here

We're a You've traditional would we pounds, pilots seen in this turning X%. our that future XXX groups that we us, Well, it. seeing market DWS an and logistics ignoring also share. and because What and LTL and you're with but LTL said trucker are have we're our important that's of work that of we're not freight. lost warehouses. only within not trend were e-commerce were same-store that's we only about packages If and down we we're just that not over up driver the capturing and with company, growth sales our part

well. talked Murray investments so as And about technology into

that the now. puzzle the a Banster Canada, competitive a fact ubiquitous all West great So in I we are accentuate have filled from that's network only density we and Coast Toronto, have that the is other of part now to we advantage piece really most big coast, can't against But the Western in and such of truckers that way it. such that

that in get not key we integrate LTL these core it's only is with irreplaceable. And and so and network but as and customers, e-commerce, and bigger

That's great color.

Gardewine and and Mississauga We'll in with our Canada apps West. Southern cover JAs -- in Gardewine in Banster and Ontario, in and urban Coast in Manitoba, in in from we we virtually Highway And in Alberta have ASTRO, Pacific Ontario, ABS Argus X Northern inter a -- Saskatchewan, Northwest in have Vancouver DC. territories. #X Grimshaw community with every freights in then

Ryland. Like within it's from So we of community Mississauga go right to every is West. our virtually network -- Bank

That's definitely Canada there. a lot of

good a That's master Yes. It's chunk. all puzzle. a

there, communities. passionate it. brand, important. and is management And done at about you, protect And as as so people. and teams They I it one sauce. And brands. work to hard how the just we our brand. I've in their And go to we that's They're you regional it Culture tell -- reason their terminals haven't done just people the is, they our it. and secret the strong very that's see have

you provide I Maybe here. know on a Advanstar, of just lot details

the margin that or terms now this potentially, you Was just Bringing synergies some did deeper opportunities. before. Or partner was it a that wondering, And there? BC up were extend you shipping synergy a that -- asset stuff capture you bit you your little can If of about just of British speak third-party in the you you in or what into could in means you service if provide how me Northern using opportunities of market former, Columbia? get it, with northern all terms base? potential insight are own in-house a remind directly Murray, to terms

that truck and two just in-house just unparalleled again, One the of we BC, up parts going we're and in that out. what the back shippers all the talking Once it's delivery basic business of trucks on clearly, and So in puzzle. going that's Northern of incremental. incremental clients big trade offer, Well, having it's is your the just just and synergies about. is the there's really can LTL

just that manage we'll we'll So -- yield.

it share transition well, there. Alberta. it's On not Columbia need our got workforce that because to British only or they as busier, investments truckload there, have busy a was to or really in group then position. now as we've good is the gets that make the Banksters they could up capital their up secondly, so we we've can help existing we Banksters have under network trucking, that because with specialized they because needs Northern or either can a whatever, capital in got participate much -- we And dominant Where in our

can we on added be put build-out. LNG British of advantage strain Columbia able So workforce Northern the those and to take layer the opportunities, in going growth to That's it that. on as particularly we'll the and to relates communities, in

or you trucks to whatever. got up lay that do interline need a there out. So of for all we or trucks family for the member after to now Well, I clients, that service in our that's you look I can an synergy just over some we -- there. then your mean, see you've if good need you and or have And go issue

before, all now, it's choppy So been as it a of little might have in-house. kind

combination mass, of people. critical about and pricing and consumer see capital So Banster has right be whereas one -- to it's it the business, that not the on a with more product just you. is to consumer is I more and a driven, the equipment since Apps this side honest see product don't of about apps, which properly downside it's I downside don't having

to Those a ton of here. the done deals on are two That my a big makes Congrats getting questions. of sense. year start couple

Foscolos Alliance with from next Industrial Elias The comes Securities. question

about but Mullen a Murray, I've lot we the has X, house are given to where of of got of up. going you think limit I'll them Group over-the-top prices sort questions, hinted estate. a real I hour. number of

give by X-pronged leverage question us monetize to I a it Can -- about years estate? your you that talk don't by So going might necessarily how maybe And selling back, and somehow. And here. it, that that way valued is performing. potentially it I'm could mean to any real few a you there be I you you but think

facilities Greater Canadian the the markets that key at just in numbers. so, for we the the or the way markets, the GTA space, is past flowing moment. get, it's unsolicited offers big this area, we of money continue own But In our even Yes. in key Vancouver week and unsolicited to Toronto, the

is for those right around So in we're land seeing what $X million space now markets is now. industrial of going upwards right an acre

parabolic. give me right a you an Alberta, be In moment, at may a the acre. those XXX Let it's markets, couple. X that In XXX

You can't keep up with it.

do you buildings it? -- at what our good. book okay, then got We've what within fair So say, we value. -- we But stand. freeness said, with sell there. could what get do embedded But you the an we burgers do burger derivative can't market always could It's a that's that's do? We can't land in raise be monetizing not terminals. well, you But without then those. priced I've Like and by without cash

those have to So question -- different is, such into into a real then gone I estate package that and of kind a starting there think that arrangement stratosphere. we then do of these bundle financing way to question type money The high put things. a to now long-term think we're is and about, into numbers that the

X. kind just the we're in pricing rates has explosion happened interest tell to it's gone basically think I has ideas. But over exploring you, as really this of last would I those year

to it's radar look a at done for on So yet, that, we anything haven't but take Elias, certainly our sure.

little just add more I a And bit could if color.

when So one about rates, to thinking that's interest driver you're higher prices.

availability. other the The That's cause inflation. another space is of lack warehouse of

warehouse going in So real are happens move space there's rates Insurance a generally and have just all markets, in rate or tremendous only now bidding, the and increase, XX% not and up our XX% but to estate insurance. two those up because peers essentially, is what they've rates also increase, freight inflation, got rent when with are substantially.

be have or the some superior aren't the advantage, our so by MT So subsidiary those side rate will as a a we much. ultimately, able to safety happens insurance because have capture be as to owned we wholly rents increases investments, competitive programs. rate economic and which increases conversely, on we're captured Again, of those landlord,

goes to that again, So house. the

a say and monetizing, of too. leveraging I'd it's ways way also there's it, So of

bits inflation go to back those us. So

won't sure. out, for that's we So lose

I Okay. clarity under and something appreciate that on. I get color, to just more it's

to the X/X organic I The think I'll The kind back related the question the to and grown it's in last X/X, up well. a logistics there about be building might interested -- out this. 'XX not that and LTL, quite But you built quite is you've not stepping now or held -- at an inorganic, warehousing. something we field this side? Is acquisitions, I'm maybe in occur? through in logistics that Or And that keep would later 'XX? something a X/X think I'm earlier. has that not it's And relationship bit LTL of that I'm not it's question out looking of is X/X. the segment more a in, LTL can interested that one-to-one between expert or those?

we're it's a service we're providing be full to our -- be it's going be to -- going are combination final That's because network a look think stop by LTL eventually. the we've holistic and going just going going wonderful providing to going final extend want communities. at it to the it's to mile. a I'm -- better We're And want just to going got all to a going mile a network, customers got think to these more to our -- service, mile customers service with reach a doing we've going going more I technology to of holistic not solution I two. this that. to We're better to

LTL, with around is smaller and we're in having you each you the improvement. United have the significant combination both additional into then in build you freight adding can of in strong that got secondly, add and big new And happen that it in world. add Elias. to will to regional brands once economic our But of them business The COVID give competitive to And anecdotal quarter-over-quarter have, that and in They're positioning some on hubs to U.S. the those will you of just then and what's tonnage business sizes a that, LTL States, things, some always to be this that pricing ourselves that additional top do carriers LTL and X%. going got. In around to the And are cannot companies. driver tonnage always over evidence of I this increases leverage So regional X% technology in on along gives of double-digit we'll we've margin that. be scale capacity.

industrial our the in side I to more am in an that our platforms of is leverage the time, Delighted it's we've core So and with we've to say largest it networks pricing that of then coming. seen only of happen a specialized of truckload attractive, least be that's I big suspect announced capacity continue country. to one the worried side, tell the in got and going because is a increase tonnage, pricing X follow as delighted our trucking/logistics X I'm transactions. along matter is adding and X freight aggressive. LTL and leverage to It I size market, will sides. looking have service we why need demand hold going the and And COVID. on to have to about post think just X I U.S. side to good-sized not in company. but its going those in a be the parts part at of of I'm very look business and to at I'm not get it own, see going to aggressive. you, that's And we and pretty our cautious. we're be it model I won't company, as

comes Scotia Gupta question Bank. Konark next from with The

follow-up. quick a It's

to point, on about. market day here, So I I that that and GTA, hear wanted a is we been to I I has want to M&A. not the but Obviously, come when housing back there long you pretty about just Murray, your know live quick the into used. call bidding be war there's I the no analogy

these valuation bidding do your in as And war? in discipline. secondly, help bit your against of So M&A trucking for terms How you kind players that? to the And curious capital of What's bidding so? think a What's you understand can a assets? you to for often do war like? Is or about industry. us your there multiple space thoughts approach

going little but mom. of valuation see It's massive think real same I the bump certain markets bump, and nice platform parabolic, not space, the our seeing that key companies on. up it's acquisition same them companies. But a quality market every thing the are warehousing a and the that I Well, are quality companies, in all seeing bit, the real logistics It's as just estate. that's the but the of the kind in markets are seeing a are in side

in XX% and not the in go invested synergies short somewhere are You XX% million. probably XX% a without or got yet, is probably that's are your premium that XX% returns you those from your see to between to a you, driving it's what means cash why synergies -- up with XX% XX% that towards term. to pay I you're don't $XX be you you a those do. And synergy. to can which ones what That's massive tuck-in valuations to important on X% XX% to then return because going say bump And on for, drives to your returns the synergies, so it to have

& with Jeff last Fetterly question Peters Company. The comes from

beginning call. the One of quick the for Murray, at

U.S. strength how market. you You've And back referenced, formulating and today? thinking the process February, U.S. approach the obviously, do the you're What's your in where today? your things in about to the talked of in view stand

market freaking hot is now. That right so

Jeff, of buying your things. of bit get in it. the You've got a those to scared little and kind at top

we're think got it's how but just I'm we'll the you on yet market. is now tell total it market but looking -- you've in be looking market, U.S. the to Jeff, U.S. be what Canadian don't to at I opportunities, looking at really I looking you fire. look. to and haven't if But opportunities, absolutely careful found fit right the We're be at it careful we need So the has

premium I'll be so buying you're premium awfully and careful. multiples, So at earnings

now? say And better full I see now. know Canada still So what Canada than opportunity, the safe better upside it's capacity. at Jeff, gets Yes, that to is any seeing at apples-to-apples, better as in nearly in you're it because laggard how I opportunities right right a don't they're operating U.S.?

K. Murray would I session. to question-and-answer to over conference back closing the the turn Mullen for concludes any remarks. like This

Well, facing. we we looks thanks bit, got we to like know the you. least are know next what I that through for it. folks. and joining challenges that is bright, really, But us, We're get feel at Canada all all future really the this

I go So you from look We leave forward fully at the transaction that. we'll And have we'll our by it time, in with we'll July. done chatting that within company, to and expect apps and there.

for again. stay So us Take and safe, we thanks look care. joining and you, to forward joining

This concludes today's call. conference

and You may disconnect your have participating, lines. a for day. Thank you pleasant